Charity registration number 504347
Company registration number 1208214 (England and Wales)
HOWICK TRUSTEES LIMITED
(A CHARITABLE COMPANY LIMITED BY GUARANTEE)
GOVERNORS' ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
HOWICK TRUSTEES LIMITED
LEGAL AND ADMINISTRATIVE INFORMATION
Governors
Dr David E.C. Baring
Mark G.O. Bridgeman
Sir Walter J.B. Riddell Bt
Matthew G. Darby
Victoria J. Baring
David G. Knott
Nick Lane Fox
(Appointed 14 November 2022)
Secretary
Mrs C.B. Coley
Charity number
504347
Company number
1208214
Registered office
Howick Estate Office
Howick
Alnwick
Northumberland
NE66 3LB
Auditor
Greaves West & Ayre
17 Walkergate
Berwick-upon-Tweed
Northumberland
TD15 1DJ
Bankers
Barclays Bank P.L.C.
20 Bondgate Within
Alnwick
Northumberland
NE66 1TD
Land Agents
GSC Grays
5F Linnet Court
Cawledge Business Park
Alnwick
Northumberland
NE66 2GD
Independent Financial Advisors
Charles Stanley & Co. Limited
55 Bishopsgate
London
EC2N 3AS
HOWICK TRUSTEES LIMITED
CONTENTS
Page
Chairman's Report
1
Governors' report
2 - 7
Independent auditor's report
8 - 11
Statement of financial activities
12 - 13
Balance sheet
14
Statement of cash flows
15
Notes to the financial statements
16 - 34
HOWICK TRUSTEES LIMITED
CHAIRMAN'S REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -

 

CHAIRMAN'S REPORT 2022/2023

This has been a busy year negotiating some significant infrastructure issues. Storm Arwen had left a large impact both on the property and buildings and in the gardens and arboretum. Writing in the late summer 2023 we are now finally mopping up the last bits of these. Also we had had to delay the upgrades to the sewage treatment for the Main Hall until the winter 22. This was successfully installed and is running smoothly.

We were able to open normally through 2022 and early 2023. The visitor numbers in 2022 were strong with our highest total being tantalisingly close to 45000 at 44914. 2023 is running lower after a wet snowdrop opening and damp July. Visitors to the area are lower and Northumberland is not unique in this with people returning to holidays overseas. We would still expect 2023 to have 40000 visitors and this is likely to be level we can expect in the current climate. The increase in admissions prices for the season 2023 has meant the visitor income overall is increased.

The clear up from Storm Arwen continued over the winter 2022 with Scottish Woodland coming in with some very impressive machinery and dealing with the conifer shelter belts and the damage in the Pinetum in the lower end of the Long Walk. They were able to preserve the majority of the interspaced young planting of wild origin specimens. Initially, after the clearing, it did look a bit like Mordor but have greened up well. We have removed the bigger stumps at the top of the pond field and are considering options for what to do with them. The rest of the garden around the Hall was also disrupted with the ground works for the new sewage system. The resulting visual effects of these two bits of work were not aesthetic and we attempted to inform and explain — there have been some negative comments from visitors but most have been understanding.

The volunteers remain central to helping keep the visitor experience going and numbers remain good providing a whole range of activities (tours, gardening, visitor centre, photography to name but a few). We are as ever extremely grateful for all their assistance. Work in the arboretum continues and the Garden and Arboretum Committee is now well established, meeting twice a year. We remain closely connected with the team at Royal Botanic Gardens Edinburgh and Kew and will plan with them when trips become a realistic possibility.

The holiday lets remain popular despite the reduction in visitor numbers to the area. The Bathing House being unique is let whenever it is available. The other two holiday let properties are going well. They have been incorporated into Howick Hall Ltd — the trading subsidiary for Howick Trustees which is now running the commercial operations for the Trustees.

 

There have been no major property issues to deal with but we await the government deciding its position regarding rural properties and EPC grading. There seems to be a recognition that not all are going to be able to meet guidelines on a practical basis. We will await guidance as and when it becomes available. The historic property remains a valuable heritage asset but also a liability which needs to be managed.

There have not been any major changes in staffing in the Office. GSC Grays continue to support the team with accounts and advice as required. The team are building on the commercial opportunities through the auspices of Howick Hall Ltd but will provide an additional income stream. There remains a standing order that these activities should be softly applied and complement the charitable activity in the house and gardens. KAM Catering continue to deliver the services in the tea rooms.

It has been a busy year and the various teams have continued to work diligently and I remain immensely grateful for all their efforts. I hope that we can now have a period of stability to allow some to the evolution seen over the last few years bed in effectively.

 

Dr David E C Baring
Chairman
Date: 17 October 2023
HOWICK TRUSTEES LIMITED
GOVERNORS' REPORT (INCLUDING DIRECTORS' REPORT)
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -

The Governors present their annual report and financial statements of Howick Trustees Limited ("HT") for the year ended 31 March 2023.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the HT's Articles of Association, the Companies Act 2006 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)" (effective 1 January 2019).

 

The financial statements record the results of HT having taken advantage of exemptions not to prepare consolidated group accounts.

Objectives and activities

The objectives for which HT is established are:

 

 

 

The principle activity of HT is to maintain and develop the garden and arboretum at Howick, with its surrounding countryside; if there are spare funds available after that, they are spent on other objectives. It also intends to restore the ground floor of Howick Hall and open it to the public in conjunction with the garden.

HOWICK TRUSTEES LIMITED
GOVERNORS' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -

Public Benefit

The Governors have regard to the guidance on public benefit issued by the Charity Commission and consider that HT fulfils its obligations to comply with charitable status by:

 

 

 

 

In the opinion of the Governors, HT contributes to three of the Charity Commission’s tests for public benefit:-

  1. the advancement of the arts, culture, heritage or science.

  2. the advancement of environmental protection or improvement.

  3. the advancement of education.

HT contributes to heritage by protecting the property in its ownership, which has high heritage value and making most of it open to the public.

The arboretum has scientific value since it is entirely planted with trees and shrubs grown from seed collected in the wild under duly authorised permits where relevant, fully documented, mapped and with a computerised data base, some of which is now on HT’s website.

HT’s policy is to manage the land it owns to enhance its environmental value for the natural world where possible; of particular interest at the moment is the battle to prevent the encroachment of the grey squirrel in order to preserve the native red squirrel at Howick.

HT wishes to increase its educational role, particularly for children, in all aspects of nature but recognises that it can only do so within the constraints of funds available to it. The licence to the North-East branch of the National Autistic Society to create a Sensory Garden outside of the south wall of the old walled garden has been renewed for a further 12 months.

Fixed Assets

HT owns the freehold of approximately 1,215 acres of land in Northumberland, nearly all of which was received by gift from Lord Howick in 1977 and later years. About 1,182 acres are within an Area of Outstanding Natural Beauty and includes nearly 2 miles of shoreline which is a Site of Special Scientific Interest, and part of the Northumberland Coast Special Protection Area. It has also been designated a Special Area of Conservation by the European Commission.

The main parts of the Estate are three farms tenanted at normal commercial rates with farm buildings and houses amounting to about 820 acres; about 230 acres of mainly broadleaf woodlands; 30 houses either occupied by HT’s employees and pensioners, or let at normal market rents; and the centre part, the east quadrant, and the east wing of Howick Hall, all Grade 2* listed buildings and the historic home of the Earls Grey, with its surrounding gardens and policies. Lord Howick retains the freehold of the west quadrant and west wing with its garden. The land and buildings within the Area of Outstanding Natural Beauty are treated by the Governors as functional property and are held as part of the objects of HT’s charitable objectives. Outside the AONB, on the other side of the boundary road, HT owns the freehold of about 6 acres of broadleaf woodlands.

HT also owns the freehold of a nearby commercial property given to it in 1979 by Lord Howick of about 22 acres let on normal commercial terms to Tarmac Trading Ltd and used by their underlessee to manufacture concrete pipes; the site also contains a mobile telephone mast let on normal commercial terms to EE Ltd. The Governors treat these assets as investment properties.

HOWICK TRUSTEES LIMITED
GOVERNORS' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 4 -

Summary of Policies to Achieve Objectives

Howick Hall was the home of the Earls Grey, the most distinguished of whom was the 2nd Earl who was Prime Minister responsible for the Great Reform Bill of 1832, and for whom Earl Grey tea was created. The centre part of Howick Hall was burnt down in 1926 and lost all of its original Georgian interiors and much of its contents. The house was rebuilt to quite different internal designs by Sir Herbert Baker in 1928, and further alterations were made in 1970.

The Governors have resolved to maintain the overall style of gardening in the natural and informal manner established by 5th Earl and Countess Grey in 1920, and continued by their elder daughter, Lady Mary Howick, for which the gardens are well known. Howick is best known for its collection of inter-war daffodils and other spring bulbs, its woodland garden started in 1930 where many tender shrubs succeed in thriving together with many woodland herbaceous plants, its more formal borders and rockery around the Hall, its arboretum planted solely with trees and shrubs from the temperate world grown from wild seed collected on expeditions, and its bog garden which shows all the wild origin herbaceous plants collected on expeditions for the arboretum. A new Hydrangea Garden was started in the winter of 2015 in the south west corner of the garden and has established well. They have also resolved to continue to concentrate on English hardwoods in the woods at the expense of commercial conifers to improve their amenity value and habitat for wild life.

Because of the 1926 fire, the Governors have always felt that there is greater public benefit in developing and maintaining the gardens, arboretum and surrounding land than there is in the Hall, although the preservation of its exteriors are essential as the centre piece to the garden.

The arboretum was started in 1988 and is based upon trees and shrubs grown from seed collected in the wild in their natural habitats from numerous expeditions, particularly to Sichuan in China and to Japan and more recently to North America and Russia. The Asiatic expeditions were mainly undertaken in co-operation with Quarryhill Botanical Garden in California under the leadership of the Royal Botanic Gardens at Kew while those to Japan, Russia and North America in recent years have been under the leadership of Royal Botanic Garden Edinburgh. Other countries visited include India, New Zealand, Tasmania and a number in Europe. The field data on all collections has been recorded on a Microsoft database, much of which is now accessible on HT’s website. The arboretum has been professionally mapped. There are currently about 12,500 trees and shrubs representing about 1,800 taxa, some of which are classified as endangered in their natural habitats. This represents a considerable resource in North East England, which will offer educational opportunities in the future as well as contributing to ex situ aspects of species conservation.

The garden has an outstanding collection of early 20th century daffodil hybrids, many of which are no longer available. HT’s policy is to conserve this collection and not to introduce more recent hybrids into the garden area.

Summary of Policies to Achieve Objectives continued

As one of the few remaining places in England where the native red squirrel is still to be seen, HT will do it’s best to prevent grey squirrels from establishing themselves and will co-operate with all interested parties to keep them at bay. It has to be said that this will not be easy and the number of grey squirrels controlled is increasing each year.

The garden and arboretum are open daily from early spring to late autumn; all details are shown on HT’s website.

Financial review

The Governors consider that HT has adequate liquidity to meet its liabilities. Its principal sources of income are investments, property rents and garden entrance fees. While investment income and property rents are relatively stable and easy to calculate, the Governors recognise that garden entrance income can be affected by economic conditions and the weather. However, since the actual garden income is known by early November each year, it is possible to adjust expenditure accordingly.

It is certain that substantial funds will have to be raised to fund the sewage treatment works across the Estate as mentioned above and the amount required is still being assessed; the Governors will review the options available to raise these funds from the sale of investments or by borrowing or sale of peripheral property.

Further details of income and expenditure are set out in the Statement of Financial Activities on pages 13 to 14 together with related notes.

HOWICK TRUSTEES LIMITED
GOVERNORS' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 5 -

Reserves

It is not HT’s normal policy to hold revenue reserves which derive from an excess of normal income over normal expenditure; the Governors intend to spend the income available to them annually on HT’s objectives. The reason for this is that the Governors consider that HT has sufficient liquidity to meet unforeseen liabilities; however, they are conscious that HT’s assets should try to generate sufficient income to meet its day to day liabilities, all of which are vulnerable to inflation. The Governors may also accumulate some revenue reserves if they know that there is major expenditure of either a capital or revenue nature in the foreseeable future or if they wish to repay capital reserves previously drawn down.

The Governors are prepared to draw down on capital reserves to further HT’s objectives if in their opinion, HT’s overall financial position justifies it.

Investments

The Articles of Association confers on HT powers to ‘invest funds of the foundation not immediately required for its purposes in or upon such investments, securities or property as it may think fit.’

The Governors have established a policy to invest for the long term for capital growth on a medium risk basis.

All investments have been acquired in accordance with the powers conferred by the Articles of Association and conform to the policy set by the Governors. The investment portfolio is managed to maintain a balance between capital growth and income, with the risk spread widely and this is achieved by concentrating on Common Investment Funds, Fixed Interest Unit Trusts and one International Investment Trust purchased in consultation with HT’s financial advisors, Charles Stanley & Co. Limited; since these are all mixed funds with a wide range of underlying holdings, the Governors consider that the question of an ethical policy for investments does not arise.

The Governors have delegated the overseeing of the portfolio to an Investment Committee consisting of Dr David E C Baring, Mr Mark Bridgeman and Sir Walter Riddell, all of whom have substantial financial experience, under a written policy.

The Governors collectively review the investment performance of each fund formally against the relevant indices annually and the office monitors performance informally throughout the year. The value of HT’s portfolio decreased from £2,667,568 at 31 March 2022 to £1,859,827 at 31 March 2023.

Risk assessment

The Governors have developed a number of policies on risk management which are reviewed annually.

They consider the major risks facing HT are Public Liability and Employers Liability, Health and Safety, and Financial Management, and the following steps have been taken to mitigate those risks:

 

 

 

 

Financial Risk Management

The Governors have considered the financial risks HT faces. They consider liquidity to be the key risk. This is monitored through the regular review of a range of financial information, including annual budgets of income and expenditure.

HOWICK TRUSTEES LIMITED
GOVERNORS' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 6 -
Plans for future periods

HT’s future plans have been materially affected by the events (political and pandemic related) of the last few years. The Governors consider that a substantial part of HT’s income may be adversely affected due to the disruption. The visitor business and holiday let were affected by lockdowns. The stock portfolio initially saw a substantial reduction in valuation which has now recovered. There remains ongoing uncertainty and as such future planning will have to be contingent on these variables. The internal work on the ground floor is now complete, however the facilities created are now open for visitor use however some development is required to expand the opportunities for income generation to recoup the expenditure on the redevelopment.

For the time being, therefore, the Governors will continue to manage the garden and arboretum as at present.

 

Share Capital

HT is a company limited by guarantee, and therefore does not have share capital. The guarantee is provided by the Governors of HT and in the event of winding up the Governors have each undertaken to contribute to payment of liabilities such amount as may be required not exceeding a total of £1.

Structure, governance and management

HT is governed by its Articles of Association, which were reviewed in 2015 and subsequently altered by written resolution on 23 October 2015. This review takes place every five years, the next being due in 2025.

The Governors are responsible for setting the strategy for HT and establishing and monitoring the methods by which the aims of that strategy are achieved. The Governors are also responsible for all financial matters, including establishing and monitoring internal financial controls, an annual budget including capital transactions, managing HT's investments, health and safety procedures and risk management. All day to day management is delegated by the Governors to Dr David E C Baring under written terms of reference which are reviewed annually. HT works closely with a neighbouring farm owned by Dr David E C Baring, resulting in some shared services. These are disclosed in full in note 10.

HT does not employ a Director or Financial Director; its employees are paid according to national standards in horticulture, woods and estate work.

 

The Governors, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

 

Dr David E.C. Baring
Mark G.O. Bridgeman
Sir Walter J.B. Riddell Bt
Matthew G. Darby
Victoria J. Baring
David G. Knott
Nick Lane Fox
(Appointed 14 November 2022)

Appointment of Governors

The Governors fall within the meaning of Trustees as defined in the Charities Act and within the meaning of Directors as defined in the Companies Act. They are appointed by the board with the consent of the founder, Lord Howick who passed these powers onto Dr David E C Baring. There is no fixed term of appointment and Governors retire and are appointed according to the requirements of HT.

New Governors are given a copy of the Articles of Association, the latest report and accounts, and all of HT’s documents covering policies and governance. Subject to their experience and expertise, they are also given documents issued by the Charity Commission explaining the duties of trustees of charities and offered training in any area of their duties which they think they would like to strengthen.

 

The present Governors have considerable knowledge and expertise in finance, horticultural matters and the management of country estates.

HOWICK TRUSTEES LIMITED
GOVERNORS' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 7 -
Statement of Governors' responsibilities

The Governors, who are also the directors of Howick Trustees Limited for the purpose of company law, are responsible for preparing the Governors' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

 

Company Law requires the Governors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the HT and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

 

In preparing these financial statements, the Governors are required to:

 

- select suitable accounting policies and then apply them consistently;

 

- observe the methods and principles in the Charities SORP;

 

- make judgements and estimates that are reasonable and prudent;

 

- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the HT will continue in operation.

 

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

Auditor

In accordance with the company's articles, a resolution proposing that Greaves West & Ayre be reappointed as auditor of the company will be put at a General Meeting.

Disclosure of information to auditor

Each of the Governors has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

The Governors' report was approved by the Board of Governors.

Dr David E.C. Baring
Governor
17 October 2023
HOWICK TRUSTEES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE GOVERNORS OF HOWICK TRUSTEES LIMITED
- 8 -

Opinion

We have audited the financial statements of Howick Trustees Limited (‘HT’) for the year ended 31 March 2023 which comprise the statement of financial activities, the balance sheet, the statement of cash flows 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:

-

give a true and fair view of the state of the charitable company's affairs as at 31 March 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;

-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-

have been prepared in accordance with the requirements of the Companies Act 2006.

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the HT 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 the provisions available for small entities, in the circumstances set out in note 28 to the financial statements, 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 Governors' 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 HT’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 Governors 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 Governors are responsible for the other information contained within the annual report. 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. 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.

HOWICK TRUSTEES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE GOVERNORS OF HOWICK TRUSTEES LIMITED
- 9 -

Opinions on other matters prescribed by the Companies Act 2006

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

-

the information given in the Governors' report for the financial year for which the financial statements are prepared, which includes the Directors' report prepared for the purposes of company law, is consistent with the financial statements; and

-

the Directors' report included within the Governors' report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the HT and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report included within the Governors' report.

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

-

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-

the financial statements are not in agreement with the accounting records and returns; or

-

certain disclosures of Governors' remuneration specified by law are not made; or

-

we have not received all the information and explanations we require for our audit

Responsibilities of Governors

As explained more fully in the statement of Governors' responsibilities, the Governors, who are also the directors of the HT for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Governors 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 Governors are responsible for assessing the HT’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 Governors either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue 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, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

HOWICK TRUSTEES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE GOVERNORS OF HOWICK TRUSTEES LIMITED
- 10 -

The Extent to which the Audit was considered capable of Detecting Irregularities, including Fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, were as follows:

 

 

 

 

 

 

We assessed the susceptibility of the Charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

 

 

 

To address the risk of fraud through management bias and override of controls, including any fraud associated with revenue recognition, we:

 

 

 

 

 

 

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

 

 

 

HOWICK TRUSTEES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE GOVERNORS OF HOWICK TRUSTEES LIMITED
- 11 -

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the Governors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

 

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an 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 charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Stuart Allister CA (Senior Statutory Auditor)
for and on behalf of Greaves West & Ayre
24 November 2023
Chartered Accountants
Statutory Auditor
17 Walkergate
Berwick-upon-Tweed
Northumberland
TD15 1DJ
HOWICK TRUSTEES LIMITED
STATEMENT OF FINANCIAL ACTIVITIES
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2023
- 12 -
Current financial year
Unrestricted
Unrestricted
Total
Total
funds
funds
Revenue

Capital

2023
2023
2023
2022
Notes
£
£
£
£
Income and endowments from:
Donations and legacies
3
71,239
-
71,239
66,182
Charitable activities
4
243,039
-
243,039
272,800
Other trading activities
5
313,216
-
313,216
392,678
Investments
6
73,054
-
73,054
65,201
Other income
7
80,958
4,022
84,980
22,097
Total income
781,506
4,022
785,528
818,958
Expenditure on:
Charitable activities
8
895,111
118,942
1,014,053
929,610
Net gains/(losses) on investments
12
-
(441,875)
(441,875)
130,313
Net (outgoing)/incoming resources before transfers
(113,605)
(556,795)
(670,400)
19,661
Gross transfers between funds
68,501
(68,501)
-
-
Net movement in funds
(45,104)
(625,296)
(670,400)
19,661
Fund balances at 1 April 2022
(23,430)
4,255,457
4,232,027
4,212,366
Fund balances at 31 March 2023
(68,534)
3,630,161
3,561,627
4,232,027

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
HOWICK TRUSTEES LIMITED
STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED)
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2023
- 13 -
Prior financial year
Unrestricted
Unrestricted
Restricted
Total
funds
funds
funds
Revenue

Capital

2022
2022
2022
2022
Notes
£
£
£
£
Income and endowments from:
Donations and legacies
3
66,043
-
139
66,182
Charitable activities
4
272,800
-
-
272,800
Other trading activities
5
392,678
-
-
392,678
Investments
6
65,201
-
-
65,201
Other income
7
18,515
3,582
-
22,097
Total income
815,237
3,582
139
818,958
Expenditure on:
Charitable activities
8
856,109
73,362
139
929,610
Net gains/(losses) on investments
12
-
130,313
-
130,313
Net (outgoing)/incoming resources before transfers
(40,872)
60,533
-
19,661
Gross transfers between funds
32,936
(32,936)
-
-
Net movement in funds
(7,936)
27,597
-
19,661
Fund balances at 1 April 2021
(15,494)
4,227,860
-
4,212,366
Fund balances at 31 March 2022
(23,430)
4,255,457
-
4,232,027
HOWICK TRUSTEES LIMITED
BALANCE SHEET
AS AT 31 MARCH 2023
31 March 2023
- 14 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
14
1,338,135
1,100,690
Heritage assets
15
212,199
212,199
Investment properties
16
220,000
275,000
Investments
17
1,859,827
2,667,568
3,630,161
4,255,457
Current assets
Debtors
19
148,276
113,924
Cash at bank and in hand
28,110
54,072
176,386
167,996
Creditors: amounts falling due within one year
21
(234,892)
(191,426)
Net current liabilities
(58,506)
(23,430)
Total assets less current liabilities
3,571,655
4,232,027
Creditors: amounts falling due after more than one year
23
(10,028)
-
Net assets
3,561,627
4,232,027
Income funds
Unrestricted funds - Capital
3,630,161
4,255,457
Unrestricted funds - Revenue
(68,534)
(23,430)
3,561,627
4,232,027

These financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act relating to small companies and constitute the annual accounts required by the Companies Act 2006 and are for circulation to members of the company.

The financial statements were approved by the Governors on
17 October 2023
17 October 2023
and were signed on their behalf by:
Dr David E.C. Baring
Mark G.O. Bridgeman
Governor
Governor
Company registration number 1208214
HOWICK TRUSTEES LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 15 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
26
(231,443)
(129,516)
Investing activities
Purchase of tangible fixed assets
(360,615)
(20,751)
Proceeds from disposal of tangible fixed assets
8,250
4,000
Purchase of heritage assets
-
(368)
Purchase of subsidiaries
-
(1)
Proceeds from disposal of other investments
420,866
50,055
Investment income received
73,054
65,201
Net cash generated from investing activities
141,555
98,136
Financing activities
Proceeds from borrowings
49,526
50,000
Payment of obligations under finance leases
14,400
-
Net cash generated from financing activities
63,926
50,000
Net (decrease)/increase in cash and cash equivalents
(25,962)
18,620
Cash and cash equivalents at beginning of year
54,072
35,452
Cash and cash equivalents at end of year
28,110
54,072
Relating to:
Cash at bank and in hand
28,110
54,072
HOWICK TRUSTEES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 16 -
1
Accounting policies
Charity information

Howick Trustees Limited ("HT") is a private company limited by guarantee, incorporated in England and Wales and is registered with the Charity Commission under number 504347. The registered office is Howick Estate Office, Alnwick, Northumberland, NE66 3LB.

1.1
Accounting convention

The financial statements have been prepared in accordance with HT's Articles of Association, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) 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)" (effective 1 January 2019). The HT is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of HT. 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 investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Going concern

At the time of approving the financial statements, the Governors have a reasonable expectation that HT has adequate resources to continue in operational existence for the foreseeable future. Thus the Governors continue to adopt the going concern basis of accounting in preparing the financial statements. HT has substantial net assets and continually manages cash reserves. Despite the uncertain economic outlook and the financial uncertainty around the willingness of the public to purchase admission tickets, visitor numbers continue to be strong and the Governors consider the going concern basis is appropriate.

1.3
Charitable funds

The revenue fund represents the income and expenditure incurred in the day to day running of HT.

 

The capital fund represents the value of the estate and investments held by HT which are separately identified in the accounts. Both of these funds are considered by the Governors to be unrestricted.

The restricted fund represents funds received which are to be used in accordance with specific restrictions imposed by the donors. The purpose and uses of the restricted funds are set out in the notes to the accounts.

1.4
Income

Income is recognised and included in the accounts when all of the following criteria are met:

 

 

Cash donations are recognised on receipt. Other donations are recognised once HT has been notified of the donation, unless performance conditions require deferral of the amount.

All grants are used for charitable expenditure and capital items and are recognised in full in the year in which they are receivable, or when the conditions for receipt have been met.

 

Investment income comprises dividends receivable during the year on listed investments held within the investment portfolio as well as interest receivable.

HOWICK TRUSTEES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 17 -
1.5
Expenditure

Expenditure is recognised when there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

 

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure includes any VAT which cannot be recovered and it reported as part of the expenditure to which it relates. Where costs are attributable to more than one activity, they are allocated on a reasonable and consistent basis, based on usage. Governance costs are those incurred in the governance of the charity and are primarily associated with constitutional and statutory requirements.

1.6
Tangible fixed assets

Tangible fixed assets are capitalised and included at cost where the purchase price generally exceeds £500.

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
Nil
Buildings
2% of original cost
Car Park and Biomass
4% of original cost
Plant and machinery
15% reducing balance
Visitor Centre and Artwork
3.33% of original cost and 10% of original cost
Hall
20% straight line
Tractors
25% reducing balance

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.

 

All assets are reviewed for impairment and written down to their recoverable amount, where necessary.

 

The land and buildings let under tenancy are treated by the governors as functional property and are held as part of the objects of HT’s charitable objectives and therefore, in line with FRS102, these land and buildings are held at cost less any depreciation and impairment rather than market value.

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 statement of financial activities. Depreciation is not charged on investment properties.

1.8
Heritage assets

Heritage assets consist of a number of paintings, prints, sculptures and other pieces which the Governors have deemed to be of historical and artistic importance that are held and maintained principally for their contribution to knowledge and culture.

 

Purchased heritage assets are valued at cost. Donated heritage assets are valued by the Governors based on their knowledge and experience and treated as deemed cost.

 

The heritage assets held are considered to have indefinite lives and are therefore not depreciated; as such their value is reviewed on an annual basis at the balance sheet date for impairment.

 

Expenditure which, in the Governors view, is required to preserve or clearly prevent further deterioration of individual collection items is recognised in the income and expenditure account when it is incurred.

HOWICK TRUSTEES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 18 -
1.9
Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

A subsidiary is an entity controlled by HT. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.10
Impairment of fixed assets

At each reporting end date, HT 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).

1.11
Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.12
Financial instruments

HT 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 HT's balance sheet when HT becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Impairment of financial assets

Financial assets, other than those held at fair value through income and expenditure, are assessed for indicators of impairment at each reporting date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.

 

If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in net income/(expenditure) for the year.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in net income/(expenditure) for the year.

HOWICK TRUSTEES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 19 -
Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the HT transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when HT’s contractual obligations expire or are discharged or cancelled.

1.13
Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when HT is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.14
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.15
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to net income/(expenditure) for the year so as to produce a constant periodic rate of interest on the remaining balance of the liability.

2
Critical accounting estimates and judgements

In the application of HT’s accounting policies, the Governors 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 may 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.

HOWICK TRUSTEES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
2
Critical accounting estimates and judgements
(Continued)
- 20 -
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Investment Property Valuation

Investment property is measured at fair value at each reporting date with changes in fair value recognised in Statement of Financial Activities. The Board of Governors determine the fair value of investment property using the assistance of an independent expert, Wardell Armstrong. Wardell Armstrong is an independent consultancy firm of registered valuers and property experts. Their valuation is prepared in accordance with RICS Global Valuations Standards. The valuation methodology considers the property lease terms and conditions, cash inflow stream and discount rate in order to derive the Fair Value of the subject property. The governors have considered the market valuations of the property at 30 March 2023 and have deemed there to be no material changes to the property's fair value of £275,000 at the year end.

3
Donations and legacies
Unrestricted
Total
Unrestricted
Restricted
Total
funds
funds
funds
Revenue
Revenue
2023
2023
2022
2022
2022
£
£
£
£
£
Donations and gifts
63,776
63,776
37,610
-
37,610

Grants

7,463
7,463
28,433
139
28,572
71,239
71,239
66,043
139
66,182
Grants receivable for core activities
Other
7,463
7,463
28,433
139
28,572
7,463
7,463
28,433
139
28,572
4
Charitable activities

Garden and arboretum

Woods

Total

Garden and arboretum

Woods

Total
2022
2023
2023
2023
2022
2022
£
£
£
£
£
£

Income within charitable activities

233,938
9,101
243,039
272,116
684
272,800
HOWICK TRUSTEES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 21 -
5
Other trading activities
Unrestricted
Unrestricted
funds
funds
Revenue
Revenue
2023
2022
£
£

Rents from houses and land

274,141
360,690

Biomass income

39,075
31,988
Other trading activities
313,216
392,678
6
Investments
Unrestricted
Unrestricted
funds
funds
Revenue
Revenue
2023
2022
£
£
Income from listed investments
72,998
65,198
Interest receivable
56
3
73,054
65,201
7
Other income
Unrestricted
Unrestricted
Total
Unrestricted
Unrestricted
Total
funds
funds
funds
funds
Revenue

Capital

Revenue

Capital

2023
2023
2023
2022
2022
2022
£
£
£
£
£
£
Net gain on disposal of tangible fixed assets
-
4,022
4,022
-
3,582
3,582
Other income
80,958
-
80,958
18,515
-
18,515
80,958
4,022
84,980
18,515
3,582
22,097
HOWICK TRUSTEES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 22 -
8
Charitable activities

Direct Charitable Expenditure

Property Repairs and Renewals

Overhead Expenses

Total
2023

Direct Charitable Expenditure

Property Repairs and Renewals

Overhead Expenses

Total
2022
2023
2023
2023
2022
2022
2022
£
£
£
£
£
£
£
£
Staff costs
354,323
-
-
354,323
311,678
-
-
311,678
Depreciation and impairment
118,942
-
-
118,942
73,362
-
-
73,362

Woodlands and sawmill

25,341
-
-
25,341
30,150
-
-
30,150

Garden and arboretum

116,347
-
-
116,347
79,603
-
-
79,603

Rates and insurances

-
-
42,544
42,544
-
-
31,609
31,609

Property repairs and renewals: Howick Hall

-
18,910
-
18,910
-
17,036
-
17,036

Property repairs and renewals: Bathing House, Old School House and Red Steads Cottage

-
14,299
-
14,299
-
28,120
-
28,120

Property repairs and renewals: Others

-
188,684
-
188,684
-
156,567
-
156,567

Vehicles and equipment expenses

8,969
-
-
8,969
7,208
-
-
7,208

Sundry and office expenses

-
-
9,757
9,757
-
-
48,168
48,168

Non-recoverable VAT

-
-
40,288
40,288
-
-
35,837
35,837
623,922
221,893
92,589
938,404
502,001
201,723
115,614
819,338
Share of governance costs (see note 9)
-
-
75,649
75,649
-
-
110,272
110,272
623,922
221,893
168,238
1,014,053
502,001
201,723
225,886
929,610
Analysis by fund
Unrestricted funds - Revenue
504,980
221,893
168,238
895,111
428,500
201,723
225,886
856,109
Unrestricted funds - Capital
118,942
-
-
118,942
73,362
-
-
73,362
Restricted funds
-
-
-
-
139
-
-
139
623,922
221,893
168,238
1,014,053
502,001
201,723
225,886
929,610
HOWICK TRUSTEES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 23 -
9
Governance costs
2023
2022
£
£

Audit and accountancy

21,610
14,000

Professional fees

54,039
96,272
75,649
110,272
Analysed between
Charitable activities
75,649
110,272

Governance costs includes payments to the auditors of £9,500 (2022: £8,500) for audit fees.

HOWICK TRUSTEES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 24 -
10
Transactions with Governors and Related Parties

No Governors (or any persons connected with them) received or were entitled to receive any remuneration or benefits for their services to the Charitable Company during the year (2022: None).

HT rents 3 houses (2022: 3) from Lord Howick and 1 from Hon. David E.C. Baring (2022: 1) for employees and pensioners. Rent paid totals £20,196 (2022: £20,196) and £4,266 (2022: £4,266) respectively, which is materially lower than the rents advised as reasonable by HT's estate agents.

 

During the year, Hon. David E.C. Baring's employees performed work at cost on behalf of HT of £Nil (2022: £Nil).

 

Lord Howick contributed £144 (2022: £Nil) towards the cost of maintaining the party yew hedge between HT's garden and the West Wing garden. During the year, Lord Howick made a donation payment to HT in order to cover the purchase cost of Heritage Asset purchased by HT of £Nil (2022: £368). In addition to this, Lord Howick made an ad-hoc purchase from HT of £Nil (2022: £343) for a number of bags of logs from fallen trees at a fair open market value.

 

HT employs two office staff and two woodmen part-time; they also work part-time for Howick Estate on separate contracts.

 

As at 31 March 2023, £692 (2022: £7,579) remained due to HT from transactions with the Governors.

 

During the year, HT obtained an unsecured loan of £90,000 from Howick Farm Estate which is repayable on demand. The full amount of the loan £90,000 (2022: £50,000) was due to Howick Farm Estate by HT as at 31 March 2023.

 

During the year, Howick Farm Estate paid the remaining £9,526 (2022: £Nil) finance relating to a capital asset acquired within HT. At the year end this balance remained due to Howick Farm Estate by HT as at 31 March 2023.

 

Lord Howick is deemed to be a related party, due to him being a former Governor (until his retirement in 2019) and father of current Chair of Governors Hon. David E.C. Baring.

 

Office Expenses

HT shares the estate office with Howick Estate and Howick Farm Estate and therefore shares the associated costs. During the year 31 March 2023, Howick Estate paid £2,781 (2022: £3,914) in office expenses, Howick Farm and Estate paid £2,781 (2022: £3,914), a division to HT's advantage.

 

Electricity Expenses

In order to maximise better electricity tariffs with its suppliers, HT moved to the direct debit method of payment in order to settle its outstanding liabilities. In doing so, Lord Howick reimbursed HT £5,053 (2022: £5,288) for his related electricity expense for the year ended 31 March 2023. On the other hand, Lord Howick received his share from a compensation payment made to HT by the electricity provider following Storm Arwen of £Nil (2022: £342) during the year.

 

Biomass Expenses

Following completion and commissioning of the Biomass Boiler System, HT is able to recharge Lord Howick his proportion of metered KW heat usage. During the year, Lord Howick reimbursed HT £5,392 (2022: £5,983) for biomass energy.

 

Governors Expenses

During the year, no expenses were reimbursed to Governors (2022: £Nil).

 

HOWICK TRUSTEES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 25 -
11
Employees

The average monthly number of employees during the year was:

2023
2022
Number
Number
Restated
24
23
Employment costs
2023
2022
£
£
Wages and salaries
314,782
276,562
Social security costs
16,037
12,840
Other pension costs
23,504
22,276
354,323
311,678

Remuneration of Key Management Personnel

Key management has been determined to be the Governors and the 3 members (2022: 3) of the senior management team. Governors receive no remuneration or benefits. The total remuneration of the senior management team excluding employers National Insurance costs £79,190 (2022: £71,162).

There were no employees whose annual remuneration was more than £60,000 (2022: None).
12
Net gains/(losses) on investments
Unrestricted
Unrestricted
funds
funds

Capital

Capital

2023
2022
£
£
Revaluation of investments
(565,537)
128,858
Gain/(loss) on sale of investments
178,662
1,455
Revaluation of investment properties
(55,000)
-
(441,875)
130,313
13
Taxation

HT, being a registered charity, is not liable to UK income tax, coporation tax or capital gains tax as long as the income it receives is applied to charitable purposes. There are therefore no tax charges in the accounts.

HOWICK TRUSTEES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 26 -
14
Tangible fixed assets
Land
Plant and machinery
Tractors
Total
£
£
£
£
Cost
At 1 April 2022
929,029
805,245
179,596
1,913,870
Additions
42,510
289,605
28,500
360,615
Disposals
-
-
(20,650)
(20,650)
At 31 March 2023
971,539
1,094,850
187,446
2,253,835
Depreciation and impairment
At 1 April 2022
300,440
374,546
138,194
813,180
Depreciation charged in the year
17,758
83,708
17,476
118,942
Eliminated in respect of disposals
-
-
(16,422)
(16,422)
At 31 March 2023
318,198
458,254
139,248
915,700
Carrying amount
At 31 March 2023
653,341
636,596
48,198
1,338,135
At 31 March 2022
628,589
430,699
41,402
1,100,690

The Governors consider that current open market value of freehold land and buildings to be £16,095,167, all of which is treated as functional property.

HOWICK TRUSTEES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 27 -
15
Heritage assets
Total
£
At 1 April 2022 and at 31 March 2023
212,199

HT has been left a legacy of historical papers known as the Grey Archive, currently on permanent loan to the University of Durham. The Governors have brought these into the accounts at a nominal valuation of £1 since no purpose would be served by incurring the expense of getting a professional valuation as the papers are unique and irreplaceable and are held as part of HT's objects.

 

The Governors have not insured the Grey Archive since no purpose would be served by incurring the cost of the premium for these papers. the Governors have been informed that the Grey Archive is partly covered by Durham University's insurance policy.

Summary Analysis of Heritage Asset Transactions
2023
2022
2021
2020
2019
£
£
£
£
£
Purchases and additions
-
368
-
-
3,600
Donations
-
-
-
-
-
Total additions
-
368
-
-
3,600
Charge for impairment
-
-
-
-
-
Total charge for impairment
-
-
-
-
-
Disposals
-
-
-
-
-
Total disposals
-
-
-
-
-
Proceeds from disposals
-
-
-
-
-
Total sales proceeds
-
-
-
-
-
16
Investment property
2023
£
Fair value
At 1 April 2022
275,000
Net gains or losses through fair value adjustments
(55,000)
At 31 March 2023
220,000
HOWICK TRUSTEES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
16
Investment property
(Continued)
- 28 -

The investment property relates to Howick Pipeworks. This commercial property was given to HT in 1979 by Lord Howick and was independently valued on an open market basis by Wardell Armstrong who have considerable experience in this area, on 13 September 2023. The area of about 22 acres is let on normal commercial rates to Tarmac; the site also contains a mobile telephone mast let on normal commercial terms to EE Ltd with T-Mobile and Vodafone as subtenants.

 

The governors have considered the market valuations of the property at 31 March 2023 and have deemed that the valuation of the property on 13 September 2023 is the property's fair value at the year end.

 

All real estate is held in the United Kingdom.

If investment properties were stated on an historical cost basis rather than a fair value basis, the amounts would have been included as follows:
2023
2022
£
£
Cost
29,600
29,600
17
Fixed asset investments
Listed investments
Cash in portfolio
Other investments
Total
£
£
Cost or valuation
At 1 April 2022
2,667,567
-
1
2,667,568
Additions
-
1,476
-
1,476
Valuation changes
(386,874)
-
-
(386,874)
Disposals
(422,343)
-
-
(422,343)
At 31 March 2023
1,858,350
1,476
1
1,859,827
Carrying amount
At 31 March 2023
1,858,350
1,476
1
1,859,827
At 31 March 2022
2,667,567
-
1
2,667,568
2023
2022
Other investments comprise:
Notes
£
£
Investments in subsidiaries
25
1
1
HT has a wholly owned trading subsidiary, Howick Hall Ltd (Company number 13733845), a company incorporated in England and Wales.
HOWICK TRUSTEES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
17
Fixed asset investments
(Continued)
- 29 -
The principal activity of the company is the operation of holiday let accommodation, functions and events within the Howick Hall Estate. The results can be summarised as follows:
Period ended
31 March
2023
£
Turnover
119,699
Other income
6,045
Staff costs
(20,221)
Other costs
(78,744)
Depreciation
(3,999)
Surplus for the period
22,780
Donation to parent
(22,780)
Retained surplus
-
The governors recognise the importance of its wholly owned trading subsidiary and are satisfied with its performance and the fact that the £22,780 surplus for the period was able to be donated to HT in support of its charitable activities.
2023
2022
£
£
Investments at fair value comprise:
Blackrock Fund Managers Ltd BLK Charities UK Equity A
528,404
534,040
RIT Capital Partners Ordinary £1
741,120
1,417,163
M&G Charifund Income Units
341,884
364,137
Legg Mason Investment Funds - Global Multi Strategy Bond
113,168
129,079
Schroder Oriental Income Fund Ordinary £0.01
133,774
140,242
Aviva Investors UK SCVS Ltd Strategic Bond
-
82,906
1,858,350
2,667,567
Fixed asset investments revalued

The quoted investments, which are listed above, are held through authorised Common Investment Funds, Unit Trusts and Investment Trusts.

 

All quoted investments are held in the United Kingdom. They are included above at market value. The historic cost of the investment portfolio is £937,243 (2022: £1,180,924).

HOWICK TRUSTEES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 30 -
18
Financial instruments
2023
2022
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
102,574
98,051
Instruments measured at fair value through profit or loss
1,858,350
2,667,567
Carrying amount of financial liabilities
Measured at amortised cost
244,920
191,426
19
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
93,347
61,797
Other debtors
44,735
46,395
Prepayments and accrued income
10,194
5,732
148,276
113,924
20
Finance lease commitments
Future minimum lease payments due under finance leases:
2023
2022
£
£
Within one year
4,372
-
Within two and five years
10,028
-
14,400
-

Finance lease payments represent rentals payable by the HT's for certain items of plant and machinery. Leases include purchase options at the end of the lease period, with no restrictions placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

 

Obligations due under finance leases are secured on the assets to which they relate.

HOWICK TRUSTEES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 31 -
21
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Obligations under finance leases
20
4,372
-
Loans and overdrafts
99,526
50,000
Payments received on account
3,610
54,590
Trade creditors
74,042
51,171
Amounts owed to subsidiary undertakings
25,716
-
Other creditors
475
559
Accruals and deferred income
27,151
35,106
234,892
191,426
22
Loans and overdrafts
2023
2022
£
£
Loans from related parties
99,526
50,000
Payable within one year
99,526
50,000

Loan from related parties is an interest free unsecured loan which is repayable in demand as noted in Note 10.

23
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Obligations under finance leases
20
10,028
-
HOWICK TRUSTEES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 32 -
24
Analysis of net assets between funds

Unrestricted funds - Revenue

Unrestricted funds - Capital

Total

Unrestricted funds - Revenue

Unrestricted funds - Capital

Restricted funds
Total
2023
2023
2023
2022
2022
2022
2022
£
£
£
£
£
£
£
Fund balances at 31 March 2023 are represented by:
Tangible assets
-
1,338,135
1,338,135
-
1,100,690
-
1,100,690
Heritage assets
-
212,199
212,199
-
212,199
-
212,199
Investment properties
(55,000)
275,000
220,000
-
275,000
-
275,000
Investments
-
1,859,827
1,859,827
-
2,667,568
-
2,667,568
Current assets/(liabilities)
(58,506)
-
(58,506)
(23,430)
-
-
(23,430)
Long term liabilities
(10,028)
-
(10,028)
-
-
-
-
(123,534)
3,685,161
3,561,627
(23,430)
4,255,457
-
4,232,027

Unrestricted Revenue Fund

The Unrestricted Revenue Fund represents the free funds which are available for use at the discretion of the Governors in furtherance of the general objectives of HT.

 

Unrestricted Capital Fund

The Unrestricted Capital Fund represents the value of the estate and investments held by HT which are separately identified in the accounts.

 

Restricted Fund

The restricted fund is used by the Governors to classify correctly and record those funds subject to specific restricted conditions imposed by the donor.

 

Transfers between Funds

Transfers between funds are discussed and approved by the Governors. A full description of the purposes of each fund held is given above.

 

A transfer of £68,501 (2022: £32,936) from the Unrestricted Capital Fund to the Unrestricted Revenue Fund has been carried out in order to realign the Capital Fund with the actual present value of the fixed assets that it represents as shown in the current year Statement of Financial Activities.

HOWICK TRUSTEES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 33 -
25
Subsidiaries
Name of undertaking
Registered
Nature of business
Class of
% Held
office
shares held
Direct
Indirect
Howick Hall Ltd
Howick Estate Office, Howick, Alnwick, Northumberland, United Kingdom, NE66 3LB
Operation of holiday let accommodation, functions and events
Ordinary
100.00
The aggregate capital and reserves and the result for the year of subsidiaries excluded from consolidation was as follows:
Name of undertaking
Profit/(Loss)
Capital and Reserves
£
£
Howick Hall Ltd
22,780
1

The investment in subsidiaries are all stated at cost.

26
Cash generated from operations
2023
2022
£
£
(Deficit)/surpus for the year
(670,400)
19,661
Adjustments for:
Investment income recognised in statement of financial activities
(73,054)
(65,201)
Gain on disposal of tangible fixed assets
(4,022)
(3,582)
Gain on disposal of investments
(178,662)
(1,455)
Fair value gains and losses on investment properties
55,000
-
Fair value gains and losses on investments
565,537
(128,858)
Depreciation and impairment of tangible fixed assets
118,942
73,362
Movements in working capital:
(Increase) in debtors
(34,352)
(37,940)
(Decrease)/increase in creditors
(10,432)
14,497
Cash absorbed by operations
(231,443)
(129,516)
27
Analysis of changes in net debt
At 1 April 2022
Cash flows
At 31 March 2023
£
£
£
Cash at bank and in hand
54,072
(25,962)
28,110
Loans falling due within one year
(50,000)
(49,526)
(99,526)
Obligations under finance leases
-
(14,400)
(14,400)
4,072
(89,888)
(85,816)
HOWICK TRUSTEES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 34 -
28
Non-audit services provided by auditor

In common with many businesses of our size and nature we use our auditor to assist with the preparation of the charitable company financial statements.

 

In common with many other businesses of our size and nature we use our auditor to obtain payroll services and ad-hoc business advice.

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