Charity Registration No. SC027242 (Scotland)
DRUMMOND FOUNDATION
ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
DRUMMOND FOUNDATION
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees
Charity number (Scotland) SC027242 Principal address Estate Office Muthill CRIEFF Perthshire PH5 2AA Auditor Findlays Audit Limited 11 Dudhope Terrace Dundee DD3 6TS Bankers Bank of Scotland 1 Galvelmore Street Crieff PH7 4DN Solicitors Turcan Connell WS c/o Turcan Connell Princes Exchange 1 Earl Grey Street Edinburgh United Kingdom EH3 9EE
DRUMMOND FOUNDATION
CONTENTS
| Page | |
|---|---|
| Trustees' report | 1 - 4 |
| Statement of trustees' responsibilities | 5 |
| Independent auditor's report | 6 - 9 |
| Statement of financial activities | 10 |
| Balance sheet | 11 |
| Statement of cash flows | 12 |
| Notes to the financial statements | 13 - 24 |
DRUMMOND FOUNDATION
TRUSTEES' REPORT
FOR THE YEAR ENDED 31 MARCH 2025
The Trustees present their annual report and financial statements for the year ended 31 March 2025.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the Foundation’s trust deed, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A applicable to Small Entities 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 (FRS 102)”
Objectives and activities
The objects of the Foundation are:
To pay or apply the Capital and Income of the Foundation to:
a) encourage education, and in particular education about the heritage of Perthshire, and to that end, to conserve for the national benefit, the man made heritage and the natural heritage lying within what are commonly known as the Drummond Estates, Perthshire owned by the Trust, or elsewhere in Perthshire and in particular to assist with the conservation of buildings, monuments, standing stones, artefacts, flora and fauna, geomorphological features, works of art and objets d'art as may be listed, designated or otherwise identified as of special interest under any legislation, national, European or international, and to facilitate public access to and appreciation of such buildings and other items;
b) or for the benefit of such one or more Charitable Institution or Charitable Institutions as the Trustees in their uncontrolled discretion may from time to time select; or
c) implementing or assisting to implement any charitable purpose or charitable purposes which the Trustees in their uncontrolled discretion may from time to time by Minute resolve upon.
The Trustees have identified projects relating to the objects of the Foundation particularly with regard to the conservation of land, buildings and property within the area commonly known as the Drummond Estates, Perthshire owned by the Trust or elsewhere in Perthshire.
The trustees have paid due regard to guidance issued by the Charity Commission and the Office of the Scottish Charity Regulator in deciding what activities the charity should undertake.
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DRUMMOND FOUNDATION
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025
Achievements and performance
The Foundation continues its programme of restoration and maintenance of traditional buildings, whilst protecting local vernacular architecture. The Foundation aims to maintain income and meet repairing obligations under agricultural and residential tenancies. Particular emphasis is given to listed buildings within and near the Muthill conservation area.
During the year work has continued on St James’ Church, Muthill where repairs were carried out to leadwork and slating. A major programme of upgrading private water supplies serving residential properties is ongoing.
The Foundation continues its programme of repairing dry stone dykes and bridges, along with the maintenance of historic grave yards at Wester Dundurn and Strageath Mill. The Foundation continues to work collaboratively with local organisations to maintain and promote public access, including the Muthill to Crieff cycleway and footpath and the Bennybeg Nature Trail and climbing crag.
The Foundation continues its work to protect the natural environment by its management of woodland and other habitat, with particular emphasis on promoting the recovery of red squirrels, restoring and maintaining oak woodland within the Drummond Wood SSSI and managing both commercial and native woodland, including endangered conifers planted under the iCONic programme. The new oakwood planted on farmland at Concraig is growing well with the expectation that it will acquire the characteristics of the adjoining SSSI oakwood. Work continues to arrest the spread of invasive non-native species, including Himalayan Balsam and Japanese Knotweed.
The Foundation funds research and conservation on the Drummond Archive including the commissioning of publications on the Drummond family over past centuries. The Foundation retains a detailed register of listed buildings and Ancient Monuments within its ownership and the wider Drummond Estate as a record of its achievements and as a tool in planning conservation work in the future.
Additional Public Benefit
In support of its ethos of providing public benefit, the Foundation supports and encourages a number of local community projects and bodies by way of donations and provision of facilities. Included within these groups are Glenartney Church, St James’ Church, Muthill Primary School, Muthill Parish Church, Muthill Village Trust, Muthill and Tullibardine Community Council, Crieff Primary School, Crieff in Leaf, the Lillias Graham Trust, Strathearn Rifle Club and the Scout and Girl Guide Associations. Five-year funding commitments are in place for Crieff High School, Innerpeffray Library, McLaren High School, Morrisons Academy, Perth College and the Royal Zoological Society of Scotland.
Financial review
Income for the year totalled £939,009 (2024 - £745,250). Rents receivable increased by £20,319.
Expenditure totalled £478,878 (2024 - £590,842). Expenditure relating to charitable activities has decreased from £579,111 in 2024 to £436,845 and expenditure relating to raising funds has increased from £11,731 in 2024 to £42,033. Expenditure relating to charitable activities includes governance costs totalling £68,385 (2024 - £38,148) and are included within this heading on the Statement of Financial Activities.
Overall there was a net increase in funds of £460,131 for the year (2024 - £154,408), resulting in a closing Endowment fund at 31 March 2025 of £13,700,978 (2024 - £13,240,847).
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DRUMMOND FOUNDATION
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025
Risk management
The Trustees consider that the major risks comprise:
Financial Risk
The risk here is the loss of rental income which is the Foundation’s main income stream. The trustees mitigate this risk by ensuring that repairs are carried out and the properties are maintained regularly to a suitable standard to allow these to be rented out on the open market. The Trustees review the level of rents on a regular basis.
The Trustees have continued the process of identifying any major risks to which the Foundation may be exposed and the establishing of systems and safeguards to mitigate the effect of these risks if appropriate. An annual risk management report is prepared and presented to the Trustees.
Reserves policy
The policy of the Trustees continues to be to ensure that any shortfall in income that may result from fluctuating economic factors can be met from available resources. With the whole of the Foundation's capital and income being available to meet such contingencies, no separate reserve fund has been established. It is the Foundation's policy to meet all expenditure and major project and improvement costs from current income and where appropriate capital realisations. At the balance sheet date total reserves of £13,700,978 (2024 - £13,240,847) were held as endowment funds. After deduction of the £13,283,476 of tangible fixed assets held by the Foundation (2024 - £13,048,819), the Foundation has assets of £417,502 (2024 - £192,028).
Plans for the Future
The Foundation will continue its policy of prudent maintenance and management of the man-made and natural heritage, and in particular buildings which have been listed of historical importance, all in accordance with the fiveyear plan. Estimated costs of £500,000 in re-planting woodland felled as a result of Storm Arwen are likely to be incurred during the next five years. The Foundation will continue its support of local and particularly educational projects.
Principal funding sources & significant events
The Foundation’s principal sources of income continue to be rental income from its agricultural, residential and commercial properties, supplemented by wayleaves, sporting rights, and occasional grants and donations supporting conservation activities. During the year, performance benefited from stronger rental activity and one-off filming income, while expenditure reflected planned conservation and maintenance works. No unusual items materially affected the year-end position. Future performance is expected to remain stable, with replanting costs phased over several seasons.
Investment policy & objectives
While the Foundation holds certain properties that are classified as investment properties for accounting purposes, these are managed in the same manner as the original endowed estate properties and form an integral part of the Foundation’s charitable activities. Income from these assets is recognised within trading income rather than as investment income. Accordingly, the Trustees have not adopted a separate investment policy or maintained a distinct investment portfolio. Any surplus cash balances are held on deposit within the general charitable funds and applied in furtherance of the Foundation’s charitable purposes
Structure, governance and management
The Foundation was created by a Deed and registered on 1st December 1997 as a Charitable Trust. The original Trustees were appointed by the Settlor,
under the Deed.
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DRUMMOND FOUNDATION
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025
The trustees who served during the year and up to the date of signature of the financial statements were:
Trustees are appointed in accordance with the provisions of the Trust Deed. Should a vacancy arise, the existing Trustees would identify any need for additional expertise and seek individuals with appropriate skills and experience to support the Foundation’s objectives. Any proposed appointment would be considered and approved by minute of the Trustees.
Newly appointed Trustees would be provided with relevant background information on the Foundation’s operations, governing document, and charitable obligations to ensure they are appropriately informed of their responsibilities.
The day-to-day management and administration of the Foundation are undertaken by Drummond Estates, which is owned by Management services are charged on a commercial basis to reflect the time and resources involved in managing the Foundation’s properties and activities. The Trustees, retain overall responsibility for governance, oversight and strategic direction.
The Trustees meet at least once a year to consider the activities of the Foundation during the past year and to review the current year and future policy. Prior to meetings, Trustees receive annual management reports.
Regular management meetings are held between one or more of the Trustees and the Drummond Foundation Factor to address day to day matters.
Related parties
The Foundation operates independently and does not collaborate to a significant degree with other charities or bodies.
The administration of the Foundation is carried out at the Drummond Estate Office and certain buildings are let to Drummond Estates in which , the Settlor, and a trustee has a total interest. All rents and costs incurred are determined on a commercial level and on an arm’s length basis and reflect the level which would be agreed between unrelated parties. Rents are kept constantly under review. Two farms are let to the Drummond Trust of which are Trustees. is also a retired solicitor and as permitted under the Trust Deed is entitled to charge for any services provided on a normal commercial basis. Ancaster Estates, an unlimited company of which is a Director and Shareholder, is an agricultural tenant of the Foundation.
The trustees' report was approved by the Board of Trustees.
Date: 12 December 2025
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DRUMMOND FOUNDATION
STATEMENT OF TRUSTEES' RESPONSIBILITIES
FOR THE YEAR ENDED 31 MARCH 2025
The trustees are responsible for preparing the Trustees' Report 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 Scotland 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 of the charity for that period.
In preparing these financial statements, the trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP (FRS 102);
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make judgements and estimates that are reasonable and prudent;
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state whether applicable Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 and the provisions of the charity's Constitution. 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.
The trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
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DRUMMOND FOUNDATION
INDEPENDENT AUDITOR'S REPORT
TO THE TRUSTEES OF DRUMMOND FOUNDATION
Opinion
We have audited the financial statements of Drummond Foundation (the ‘charity’) for the year ended 31 March 2025 which comprise the statement of financial activities, the balance sheet and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
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give a true and fair view of the state of the charity’s affairs as at 31 March 2025 and of its incoming resources and application of resources, including its income and expenditure for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended).
Basis of 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 Auditor's 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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DRUMMOND FOUNDATION
INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF DRUMMOND FOUNDATION
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters in relation to which the Charities Accounts (Scotland) Regulations 2006 (as amended) require us to report to you if, in our opinion:
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the information given in the financial statements is inconsistent in any material respect with the Trustees' report; or
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proper accounting records have not been kept; or
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the financial statements are not in agreement with the accounting records; or
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we have not received all the information and explanations we require for our audit.
Responsibilities of trustees
As explained more fully in the statement of Trustees' responsibilities, the Trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the 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 cease operations, or have no realistic alternative but to do so.
Auditor responsibilities for the audit of the financial statements
We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and report in accordance with the Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, as outlined above, to detect material misstatements in respect of irregularities, including fraud and non-compliance with laws and regulations as detailed below.
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DRUMMOND FOUNDATION
INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF DRUMMOND FOUNDATION
The audit team has appropriate skills and expertise required and through discussions with management and Trustees, knowledge of the sector to ensure any non-compliance is recognised and all necessary disclosures are made. The controls in place help the Charity mitigate the risk of fraud and also aids them in highlighting any instances of fraud that might have occurred.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below:
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Making enquiries of management about any known or suspected instances of non-compliance with laws and regulations including GDPR and health and safety
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Review of correspondence with regulators including OSCR and HMRC
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Review of legal expenditure and board minutes
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Challenging assumptions and judgements made by management in their significant accounting estimates including the application of judgement-based accounting policies and the valuation of investment properties
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Auditing the risk of management override controls, including through testing of journal entries and other adjustments for appropriateness
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Performing analytical procedures to identify any unusual transactions.
Because of the field in which the client operates we identified the following areas as those most likely to have a material impact on the financial statements;
Direct Impact on Financial Statements:
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The Charities Accounts (Scotland) regulations 2006
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SORP - FRS 102
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Charities & Trustee Investment (Scotland) Act 2005
Indirect Impact on Financial Statements:
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GDPR
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Health & safety regulations
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Trust Deed
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Landlord and leasing regulations
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Forestry replanting obligations
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
We communicate with those charged with governance, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
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DRUMMOND FOUNDATION
INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF DRUMMOND FOUNDATION
Use of our report
This report is made solely to the charity’s trustees, as a body, in accordance with regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditor's 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.
findlays
findlays (Dec 12, 2025 11:44:32 GMT)
Findlays Audit Limited
12 December 2025
Chartered Accountants Statutory Auditor
11 Dudhope Terrace Dundee DD3 6TS
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DRUMMOND FOUNDATION
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2025
| Notes Income and endowments from: Donations and legacies 3 Other trading activities 4 Investments 5 Other 6 Total income and endowments Expenditure on: Raising funds 7 Charitable activities 8 Total expenditure Net movement in funds Reconciliation of Funds Fund balances at 1 April 2024 Fund balances at 31 March 2025 |
2025 £ 125,570 763,942 39 49,458 939,009 42,033 436,845 478,878 460,131 13,240,847 13,700,978 |
2024 £ - 742,555 37 2,658 |
|---|---|---|
| 745,250 | ||
| 11,731 579,111 |
||
| 590,842 | ||
| 154,408 13,086,439 |
||
| 13,240,847 |
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DRUMMOND FOUNDATION
BALANCE SHEET
AS AT 31 MARCH 2025
| Notes Fixed assets Tangible assets 12 Investment properties 13 Current assets Debtors 14 Cash at bank and in hand Creditors: amounts falling due within one year 15 Net current assets Total assets less current liabilities Creditors: amounts falling due after more than one year 16 Net assets The funds of the charity: Endowment funds 18 |
2025 £ £ 12,383,476 900,000 13,283,476 91,308 426,497 517,805 (100,303) 417,502 13,700,978 - 13,700,978 13,700,978 13,700,978 |
2024 £ £ 12,148,819 900,000 13,048,819 105,678 240,787 346,465 (124,437) 222,028 13,270,847 (30,000) 13,240,847 13,240,847 13,240,847 |
|---|---|---|
The financial statements were approved by the Trustees on 12 December 2025
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DRUMMOND FOUNDATION
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2025
| 2025 Notes £ Cash flows from operating activities Cash generated from operations 23 Investing activities Purchase of tangible fixed assets (234,657) Investment income received 39 Net cash (used in)/generated from investing activities Net cash used in financing activities Net increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year Relating to: Cash at bank and in hand |
£ 420,328 (234,618) - 185,710 240,787 426,497 426,497 |
2024 £ - 37 |
£ 205,672 37 - |
|---|---|---|---|
| 205,709 35,078 |
|||
| 240,787 | |||
| 240,787 |
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DRUMMOND FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
1 Accounting policies
Charity information
Drummond Foundation is a charity registered in Scotland and its registered office is Estate Office, Muthill, Crieff, Perthshire, PH5 2AA.
1.1 Accounting convention
The financial statements have been prepared in accordance with the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) including the provisions of Section 1A applicable to Small Entities and the Charities SORP "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)".
The charity is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention modified to include certain assets at fair value. The principal accounting policies adopted are set out below.
1.2 Going concern
The Trustees consider that there are no material uncertainties about the Foundation's ability to continue as a going concern. The Foundation is able to meet its liabilities as they fall due.
The Trustees of the Foundation have prepared forecasts through to March 2027 which take into consideration the anticipated replanting costs and future expected revenues. The Trustees are satisfied that the Foundation will have sufficient funds to meet liabilities as they fall due for a period of at least 12 months from the date of approval of the financial statements. Thus, the Trustees have determined that it is appropriate to continue to prepare these financial statements on a going concern basis.
1.3 Charitable funds
Endowment funds comprise the original endowed assets together with all subsequent capital additions and accumulated income. Under the Deed of Trust, the Trustees may accumulate income into capital, and all income and capital receipts are therefore credited to the endowment. Income generated by the endowment assets is used to meet management costs and support the Foundation’s charitable activities.
1.4 Income
Income is recognised once the Foundation is entitled to the resources, it is probable that the resources will be received and the monetary value can be measured with sufficient reliability. Where donor imposed restrictions apply to the timing of the related expenditure as a pre-condition for its use, the grant or other income resource is released to income as and when these restrictions are met. The following specific policies are applied to categories of income:
Income comprising rents, shooting and fishing rights, forestry and sundry income is included on a receivable basis.
Investment income is recognised when receivable.
Gifts in kind are included at market value.
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DRUMMOND FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025
1 Accounting policies
(Continued)
1.5 Expenditure
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the Foundation to the expenditure. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the Charity.
Governance costs comprise all costs involving public accountability of the charity and its compliance with regulation and good practice. These costs include the expenses of Trustees meetings, the statutory audit, legal and professional fees - all costs effectively involved in meeting the constitutional and statutory requirements of the Foundation. These costs are included under charitable activities.
The Foundation’s principal objective is the conservation, protection and long-term stewardship of land, buildings and woodland entrusted to it under the Trust Deed. Expenditure incurred in maintaining, conserving, repairing or managing these assets is therefore considered to relate primarily to the charity’s charitable purposes and is classified as charitable activities expenditure, unless it is incurred specifically for the purpose of generating rental or other trading income.
Some estate-related expenditure supports both conservation activities and income-generating activities (e.g. property repairs, insurance and general estate maintenance) and are treated as mixed-purpose costs. The Foundation allocates mixed-purpose expenditure using an income-based apportionment, as the level of rental income generated from the estate is considered to be the most reliable and measurable proxy for the proportion of resources applied to income-generating activities. Under this method the proportion of total income arising from rental activities is applied to mixed-purpose costs and classified as expenditure on raising funds; and the remaining proportion is classified as charitable activities expenditure. Conservation-only expenditure, including all woodland management costs, is recognised entirely as charitable activities expenditure.
1.6 Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Land and buildings nil
The land and buildings donated by are shown at the valuation adopted on transfer of these assets to the Trust increased by the costs of subsequent additions and expenditure incurred on major restorations and improvements to these properties.
No depreciation has been provided in respect of the buildings on the grounds that it would be immaterial because of their long estimated useful economic life and the estimated residual value is not materially different from the carrying value.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
1.7 Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in the Statement of Financial Activities.
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DRUMMOND FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025
1 Accounting policies
(Continued)
1.8 Impairment of fixed assets
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
1.9 Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include deposits held at call with banks.
1.10 Financial instruments
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Basic financial assets
Basic financial assets, which include debtors and bank balances, are measured at transaction price including transaction costs.
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less.
Derecognition of financial liabilities
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
1.11 Taxation
The charity is a registered charity exempt from U.K. taxation.
2 Critical accounting estimates and judgements
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The following judgements or estimation uncertainties have a significant effect on amounts recognised in the financial statements:
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DRUMMOND FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025
2 Critical accounting estimates and judgements
(Continued)
Depreciation
No depreciation has been provided in respect of the buildings on the grounds that it would be immaterial because of their long estimated useful economic life and the estimated residual value is not materially different from the carrying value. The carrying amount at 31 March 2025 was £12,383,476
Investment properties
Investment property is carried at fair value, which is estimated at £900,000 by those charged with governance based on rental return.
3 Donations and legacies
| Endowment | Endowment | |
|---|---|---|
| funds | funds | |
| general | general | |
| 2025 | 2024 | |
| £ | £ | |
| Donations and gifts | 125,570 | - |
4 Other trading activities
| Endowment | Endowment | |
|---|---|---|
| funds | funds | |
| general | general | |
| 2025 | 2024 | |
| £ | £ | |
| Forestry grant | 8,118 | 11,990 |
| House rent | 304,206 | 296,755 |
| Farm and grazing rent | 181,562 | 178,507 |
| Commercial rent | 230,546 | 217,310 |
| Acreland rent | 242 | 128 |
| Shooting and fishing rent | 22,731 | 26,268 |
| Other income | 16,537 | 11,597 |
| Other trading activities | 763,942 | 742,555 |
- 16 -
DRUMMOND FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
5 Investments
| Endowment | Endowment | ||
|---|---|---|---|
| funds | funds | ||
| general | general | ||
| 2025 | 2024 | ||
| £ | £ | ||
| Interest | 39 | 37 | |
| 6 | Other | ||
| Endowment | Endowment | ||
| funds | funds | ||
| general | general | ||
| 2025 | 2024 | ||
| £ | £ | ||
| Cherryfield Settlement | - | 2,658 | |
| Other Income | 49,458 | - | |
| 49,458 | 2,658 |
Other income represents income received from the use of the Foundation’s premises for filming purposes.
7 Raising funds
| Endowment | Endowment | |
|---|---|---|
| funds | funds | |
| general | general | |
| 2025 | 2024 | |
| £ | £ | |
| Let property upkeep | 42,033 | 11,731 |
| 42,033 | 11,731 |
- 17 -
DRUMMOND FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025
8 Charitable activities
| Endowment | Endowment | |
|---|---|---|
| funds | funds | |
| general | general | |
| 2025 | 2024 | |
| Management charges and expenses | 78,080 | 90,339 |
| Archive research and public benefit | 16,680 | 71,655 |
| Let property expenses | 271,406 | 377,593 |
| Legal and professional fees | 68,385 | 38,148 |
| Insurance | 1,638 | 730 |
| Financing costs | 656 | 646 |
| 436,845 | 579,111 |
Legal and professional fees include both governance costs - comprising the audit fee, trustee meeting expenses and other costs associated with regulatory compliance - and professional fees incurred in the course of the Foundation’s operational and property management activities.
9 Auditor's remuneration
The analysis of auditor's remuneration is as follows:
| Audit of the charity's annual accounts Non-audit services Audit-related assurance services |
2025 2024 £ £ 8,000 8,000 8,000 8,000 |
|---|---|
10 Trustees
None of the Trustees (or any persons connected with them) received any remuneration during the year, other than who received fees totalling £6,288 (2024 - £4,716) for consultancy services and mileage costs provided to the Foundation. The payment is permitted under Clause 11 of the Deed of Trust. One Trustee, , was reimbursed £307 (2024 - £nil) for meeting expenses incurred personally on behalf of the Foundation. No other Trustees received any payment or reimbursement of expenses during the year.
11 Employees
There were no employees during the year.
- 18 -
DRUMMOND FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025
12 Tangible fixed assets
| Tangible fixed assets | |
|---|---|
| Land and buildings | |
| £ | |
| Cost | |
| At 1 April 2024 | 12,148,819 |
| Additions | 234,657 |
| At 31 March 2025 | 12,383,476 |
| Carrying amount | |
| At 31 March 2025 | 12,383,476 |
| At 31 March 2024 | 12,148,819 |
Tangible fixed assets comprise of land and buildings donated by Baroness Willoughby de Eresby.
Although these assets attract rental income, they are not considered to be investments, as the purpose of the Foundation is to conserve them.
They are located largely within the Designed Landscape with its layout of small farms, trees, hedgerows and cottages and form the man-made and natural heritage.
The properties within Muthill are predominantly listed and lie within the Conservation area.
On this basis, the Foundation do not consider income generated from the rental of donated land and buildings to be investment income.
13 Investment property
| Investment property | |
|---|---|
| 2025 | |
| £ | |
| Fair value | |
| At 1 April 2024 and 31 March 2025 | 900,000 |
Investment property comprises all units held at Bridgend Industrial Estate. The fair value has been determined by the Trustees based on rental returns and prevailing yields for comparable local commercial properties. The valuation represents an internal assessment; no independent professionally qualified valuer was engaged during the current or prior year. The Trustees consider that this basis remains representative of market value as at 31 March 2025. There were no movements in the carrying amount of investment property during the year. The historical cost of the investment property is £773,138 (2024: £773,138).
14 Debtors
| Amounts falling due within one year: Trade debtors Other debtors Prepayments and accrued income |
2025 £ 10,692 2,189 78,427 91,308 |
2024 £ 28,829 518 76,331 105,678 |
|---|---|---|
- 19 -
DRUMMOND FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025
15 Creditors: amounts falling due within one year
| Notes Other taxation and social security Deferred income 17 Trade creditors Other creditors Accruals |
2025 £ - 17,193 27,822 34,552 20,736 100,303 |
2024 £ 1,550 10,035 19,624 63,474 29,754 124,437 |
|---|---|---|
Other creditors include a loan from the related party Drummond Estate £2,802 (2024 - £31,724). This temporary funding, is interest free and repayable on demand.
16 Creditors: amounts falling due after more than one year
| 16 Creditors: amounts falling due after more than one year |
||
|---|---|---|
| Other creditors 17 Deferred income Total deferred income at 1 April 2024 Amounts credited to statement of financial activities Amounts deferred in the year Total deferred income at 31 March 2025 |
2025 £ - 2025 £ 10,035 (10,035 ) 17,193 17,193 |
2024 £ 30,000 |
| 2024 £ 16,046 (16,046) 10,035 |
||
| 10,035 |
Deferred income represents rent received in the current and previous years for which entitlement to the income arises in future accounting periods.
- 20 -
DRUMMOND FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025
18 Endowment funds
| Endowment funds | ||||||
|---|---|---|---|---|---|---|
| Balance at 1 April 2023 £ Expendable endowments Endowment fund 13,086,439 13,086,439 |
Income £ 745,250 745,250 |
Movement in funds Expenditure Transfers Revaluations gains £ £ £ (590,842) - - (590,842) - - |
Balance at 1 April 2024 £ 13,240,847 13,240,847 |
Income £ 939,009 939,009 |
Movement in funds Expenditure Transfers Revaluations Balance at gains 31 March 2025 £ £ £ £ (478,878) - - 13,700,978 (478,878) - - 13,700,978 |
|
| 13,700,978 |
The Foundation’s funds comprise an expendable endowment established under the Deed of Trust. These funds represent the original endowment of land and property, together with subsequent additions and accumulated income, all of which are applied in furtherance of the Foundation’s charitable objectives.
The Deed of Trust grants the Trustees the power to accumulate income within the capital of the fund and the discretion to apply both income and capital for charitable purposes as they consider appropriate. Accordingly, all income and expenditure are accounted for within the endowment fund, and no separate restricted or unrestricted income funds are maintained. The income generated by the endowment fund assets is used to meet the costs of managing and administering those assets and to support the Foundation’s charitable activities.
- 21 -
DRUMMOND FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025
19 Financial commitments, guarantees and contingent liabilities
The Foundation is legally and contractually obliged under the terms of its forestry management and felling licences to replant woodland areas following felling activity. Replanting expenditure is expected to be incurred over several planting seasons, with costs estimated at approximately £500,000. As the replanting is carried out purely for charitable and environmental purposes and does not create a capital asset or generate future economic benefit, related costs will be expensed as incurred.
20 Operating lease commitments
Lessor
The operating leases represent lets of commercial property to third parties. The leases are negotiated over terms of 1 to 25 years.
The Foundation acts as lessor in respect of various agricultural, residential, and commercial tenancies. The following amounts represent the future minimum lease payments receivable under non-cancellable operating leases existing at the year end:
| Within one year Between two and five years In over five years |
2025 £ 105,560 272,040 501,602 879,202 |
2024 £ 105,560 326,835 552,368 |
|---|---|---|
| 984,763 |
21 Events after the reporting date
After the year end, the Trustees completed the sale of land at Crieff Primary School for £125,000 on 15 October 2025. The proceeds are currently held by the charity’s solicitors, Turcan Connell.
- 22 -
DRUMMOND FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025
22 Related party transactions
During the year the charity entered into the following transactions with related parties:
As set out in the Trustees’ Report under Structure Management and Governance, transactions take place between the Foundation and certain trustees and connected entities. These are all carried out on a commercial basis and settled within normal commercial terms.
| 2025 | 2024 | |
|---|---|---|
| Amount due(to)/from: | ||
| Drummond Estate | 1,466 | (28,501) |
| Drummond Trust | 2,504 | 2,807 |
| Ancaster Estates | 5,030 | 5,030 |
The Drummond Estate was paid £157,462 (2024 - £177,934) by the Foundation during the period in respect of management, archive research, estate maintenance and property repairs.
The Drummond Estate paid house and commercial rents of £6,897 (2024 - £6,814) and other income totalling £9,610 (2024 - £3,225) to The Drummond Foundation during the year.
Ancaster Estates paid £15,891 (2024 - £15,491) in respect of farm rentals, other income totalling £18 (2024 - £8,464)
Ancaster Estates was paid £nil (2024 - £11) in respect of property repairs.
The Drummond Trust paid farm rentals totalling £11,690 (2024 - £11,690), and other income totalling £216 (2024 - £518) to The Drummond Foundation during the year.
The Drummond Trust was paid £2,376 (2024 - £2,376) in respect of farm rentals.
Transactions with related parties considered not at arm's length
Name of related party: Drummond Estate
Nature of relationship: Common Management
Nature of transaction: Pitkellony Nursery is leased from Drummond Estate at an annual rent of £10 per annum.
- 23 -
DRUMMOND FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025
| 23 Cash generated from operating activities Net income for the year Adjustments for: Investment income recognised in statement of financial activities Movements in working capital: Decrease in debtors (Decrease) in creditors Increase/(decrease) in deferred income Cash generated from operating activities |
2025 £ 2024 £ 460,131 154,408 (39) (37) 14,370 507,660 (61,292) (450,348) 7,158 (6,011) 420,328 205,672 |
|---|---|
24 Prior period adjustment
During the year the Foundation reviewed its method of allocating mixed-purpose estate costs. The trustees concluded that an income-based apportionment provides a more appropriate and supportable basis than the previous 50% allocation. The policy has been applied retrospectively and comparative figures have been restated accordingly. The change has no impact on total funds.
- 24 -
I