The Lakeland Horticultural Society€¦ · offer their grateful thanks for this most generous...

Registered Charity No. 259847

The

Lakeland Horticultural Society

ANNUAL REPORT AND FINANCIAL STATEMENTS for the year ended 31st August 2018

THE LAKELAND HORTICULTURAL SOCIETY Annual Report and Financial Statements for the year ended 31st August 2018

Registered Charity No. 259847

CONTENTS Page Trustees’ Annual Report:

Officers and Trustees of the Society 3

Report from the Chairman of Trustees 4

Financial Report 5

Structure, Governance and Management 6

Activities 7 Achievements and Performance 8

Independent Examiner’s Report 9 Statement of Financial Activities 10 Balance Sheet 11 Notes to the Financial Statements 12 - 17 Address: Holehird Gardens Patterdale Road Windermere LA23 1NP


3 Registered Charity No. 259847

President

Shelagh Todd

Vice-Presidents

Christopher Brickell CBE VMH Lord Cavendish of Furness DL

Lady Cressida Inglewood, Countess of Lonsdale John D Main NDH DHE FIHort

Shelagh Newman Ian Sandwell M Hort NDH (Hons) FIHort

Margaret Thomas

Council of Trustees

Officers:

Chairman: Alan Oatway Vice-Chairman: Maggie Mees

Garden Co-ordinator: Graeme Johnson Secretary: David Mason

Hon. Treasurer: vacant

Elected members: John Ashley

Sue Buckingham

Diane Fisher Peter Hoggarth David Jackson Jane Lees CBE

Tina McIntosh

Sybil Maden Amanda Mason

Pat Murphy Susan Quayle

Mary Stebbings



Report from the Chairman of Trustees

The last AGM saw a significant number of trustees step down from their roles, each having served for at least 6 years. Individually and collectively, they achieved a great deal, and on behalf of the Society I begin by recording our sincere thanks to all of them. The cohort of 2011 were John Ashley, Chair; Norma Bates, Vice Chair; Peter Davies, Estates Chair; Rosemary Horwood, Garden Chair; Maggie Mees and Jennifer Moffett. With the Treasurer also standing down, there was clearly going to be a big hole to fill. Happily, I can report that the new Council was almost complete following the AGM, demonstrating again the willingness of our volunteers to accept responsibility. I am also delighted to say that our new trustees have worked with energy and enthusiasm to ensure a smooth transition.

The one vacancy we failed to fill was that of Treasurer. In this we have, for the time being, been rescued by the support of Philip Morris and David Mason. Philip, who stood down as Treasurer, has stayed on and undertaken all our bookkeeping requirements for us, while David, as a trustee, has added to his considerable workload as our Secretary by providing Council with the financial expertise to fulfil its duties. I am very grateful to both, for without their support, the year would have been very difficult and we would have had to “buy in” the necessary assistance; this would have been both costly and less efficient. We may still have to consider this option, as the current solution is unsustainable. The alternative is that there is still a member out there who has the right skill-set to become involved: your Society needs you! In addition to overseeing the work of our various committees, Council has work to do which can mainly be described as “administration”. In the autumn of 2017, Council took the decision to close the Tours Account, which had not been used for some time. Currently, all our Educational Tours operate under the auspices of a commercial travel company, which takes away the need for the LHS to manage the monies involved. If at some stage we wish to run “in-house” tours again, then we will have to think through how to manage them effectively. In the New Year, the imminent arrival of new regulations about data privacy added to the workload. The copious on-line guidance failed to provide advice for organisations such as ours, but we persevered and aimed for as simple a response as possible. We duly reviewed our practice, which was a useful exercise, and we believe we have covered things adequately. Council is aware of its obligation to be pro-active in improving access to the Gardens, and we commissioned advice from a specialist consultant. A detailed report resulted, including many constructive suggestions that were sympathetic to our situation. In particular, it was suggested how relatively small changes to the parking provision could provide considerable access improvements without major disruption to the Gardens. Council is busy reviewing the full report and prioritising the recommendations, in order to plan what to do and when. However, major changes in this and all other areas will now await the confirmation of our renewed Leases. Council has, properly, undertaken a valuation of the land we lease, and has subsequently instructed solicitors to notify the landlord that we wish to exercise our right to extend the lease, according to the terms set out in the existing lease.



Report from the Chairman of Trustees (cont) Amidst all the rather dry work so far described, it has been a pleasant diversion to think ahead to next year, when we celebrate 50 years of fantastic work by so many volunteers. Our plans for celebrating this milestone are progressing well, and will be widely disseminated. We hope there will be something to appeal to everybody, and that the Society will enjoy getting together to reflect on the achievement. Of course, the finest testament to that achievement is visible on a daily basis: the wonderful, much-admired and dearly-loved Gardens at Holehird. Much credit is due to the extended team-work over the full 50 years, but that the Gardens look so good right now, as I write towards the end of a very difficult season for many plants, speaks volumes for the work of the current volunteers.

Financial Report

As the post of Treasurer is vacant, a Financial Report has been prepared instead of a Treasurer’s Report. The Trustees’ aim is to fund day-to-day expenses from day-to-day income, leaving more major works (“projects”) to be funded from reserves. In the year to 31st August 2018 income amounted to £170,000 and expenditure to £111,000; the cost of Projects was £52,000. After the charge for Depreciation of Fixed Assets of £31,000 the net deficit on all activities was £24,000. Included in Income is a bequest from the estate of Bill Revell, of £25,000. The Trustees would like to offer their grateful thanks for this most generous donation. In addition, following the winding up of the Lakeland Rose Show the former directors and committee members agreed to donate their residual funds of £7,350 towards a new path intended to improve access to the upper gardens. The most significant Project expense was the cost (nearly £34,000) of the Borehole. It seems entirely fitting that watering a Lakeland garden should be derived from its own supply. Overall, the Society’s finances are in a very healthy position, and it faces the future with confidence.



Structure, Governance and Management

The Society is a registered charity governed by a constitution approved by the membership, and last modified on 23rd January 2016. Its objects are to promote and develop the science, practice and art of horticulture, with special reference to the conditions prevailing in the Lake District, and within that area to promote and facilitate cooperation between all horticultural organisations and to serve the interests of all horticulturalists. The management and administration of the Society is conducted by its Council, whose members are Trustees of the Charity. The Council comprises five Honorary Officers of the Society, and up to twelve elected Members. The Officers consist of the Chairman, the Vice-Chairman, the Garden Co-ordinator, the Secretary and the Treasurer. The members of the Council are set out on page 3. Day-to-day management is devolved to five sub-committees: Garden, Estates, Education, Publications, and Public Relations. These are governed by Standing Orders which are reviewed annually, and were last approved on 5th June 2018. Officers are elected at each Annual General Meeting (AGM) having, with their consent, been nominated and seconded in writing by members of the Society. They hold office until the end of the next AGM. They may be nominated for re-election but may not serve for more than six consecutive years in any one office. Elected Members having, with their consent, been nominated and seconded in writing by members, are elected at an AGM to serve a three year term. They may be nominated for re-election, but may not serve for more than two consecutive terms. Members of Council do not receive any payment in connection with their position. The Society operates an informal system of Trustee induction, tailored to fit the experience of the trustee. All new trustees are given a copy of all the relevant Charity Commission documents, as well as the names and contact details of their fellow trustees. All the work of the Society is carried out by volunteers and is funded through members’ subscriptions, legacies, donations, the sale of plants and seeds from the garden, and the sale of publications written and designed by members. Financial Review

On the basis of their review of future years’ activities, and a detailed budget for the following year, Council are satisfied with the financial position at 31st August 2018. The policy on Reserves, the reason why they are held and their intended use, is set out in Note 10 to the Accounts.



Activities

Garden

The Society manages the renowned Lakeland garden at Holehird which is open to the public every day of the year from dawn till dusk. This is a 12 acre garden on a hillside site near Windermere, 600 feet above sea level. The garden regularly receives up to 30,000 visitors each year, and although no formal charge is made for access, visitors are invited to make a donation. The gardens are developed and maintained to the highest standards, providing the public with practical examples of design, propagation, plant maintenance and horticultural practice in relation to specific Lake District location and climatic conditions. In various parts of the garden trees, shrubs, herbaceous perennials, bulbs and alpines are grown. The Society also acts as the International Registration Authority for Astilbe on behalf of the International Society for Horticultural Science, and hosts the National plant collections of Astilbe, Daboecia (heathers), Meconopsis (the blue poppy) and Polystichum (the holly fern).

Education

Gardening courses and lectures are held throughout the year, given by both in-house and outside experts. Volunteers act as garden guides for the many tour groups that visit Holehird, and a number of bursaries are granted each year to support horticultural students. A well-stocked library and reading room, equipped with PCs and several microscopes, including a new high-powered model, is also available to all members, and a series of horticultural leaflets is available to the public on particular species that are grown in the garden, including the National Collections. We also have our own weather station, which was completely upgraded last year and this helps understand the effect of varying climate on the performance of the plants in the garden. The weather records are available online to individuals and other organisations.

Media

The web site: www.holehirdgardens.org.uk shares the Society’s knowledge and activities online, as does “The Lakeland Gardener” – the Journal of the Lakeland Horticultural Society. The Society also publishes a regular Newsletter for its members, and hosts social media such as Facebook and Twitter.

Access for all

Within the inevitable constraints imposed by a Lakeland garden, the Society aims to ensure that anyone with an interest in horticulture and gardening can benefit from its work, whatever their means and limitations. Wardens are on duty daily from early April to the end of October in the Visitor Information area to welcome members of the public and answer questions regarding the gardens, either directly or by introducing visitors to other members of the Society. The Trustees confirm that they have complied with the duty in s17 of the Charities Act 2011 to have regards to the Charity Commission’s guidance on public benefit.



STATEMENT OF FINANCIAL ACTIVITIES

Incoming Resources Note Unrestricted Restricted 2018 2017 Funds Funds Total Total (Note 2) £ £ £ £ Voluntary income 3 110,598 25,200 135,798 107,198 Other charitable income 4 28,904 28,904 26,022 Investment income 5 5,284 5,284 6,411

Total incoming resources 169,986 139,631

Resources Expended Garden and Estate maintenance 6 106,086 17,850 123,936 62,585 Other charitable expenditure 7 12,685 12,685 9,555 Administration costs 8 24,426 24,426 29,931 Depreciation 11 30,761 30,761 31,378 Governance costs 9 2,266 2,266 2,136

Total resources expended 194,074 135,585

Net resources (expended) received (24,088) 4,046 Gain on investments 12 5,352 6,801 Accumulated Funds B/Fwd 599,186 588,339

Accumulated Funds C/Fwd 10 580,450 599,186

at 31st August 2018

There are no other gains & losses other than those disclosed above. All transactions are derived from continuing activities. The Notes on pages 12 to 17 form part of these financial statements



NOTES TO THE FINANCIAL STATEMENTS 1. Accounting Policies i) Basis of preparation The financial statements of the Charity are prepared under the historical cost convention with the exception of investments, which are included at market value. They have been prepared in accordance with the Charities Act 2011, the Financial Reporting Standard applicable in the UK (FRS 102), and the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities (Charities SORP (FRS 102)). The Charity is a public benefit entity under FRS 102, its presentation currency is Sterling (rounded to the nearest £1). The Trustees believe the Society is a going-concern, and have prepared the financial statements on that basis. ii) Incoming resources Incoming resources represent total income receivable during the year, and comprise membership subscriptions, donations, legacies, income from educational activities, investment income and sundry other income. iii) Resources expended All expenditure is accounted for on an accruals basis. Charitable expenditure represents the cost of maintaining the estate and garden, scientific, education and editorial activities. Support services represent membership costs, and costs relating to the general running of the Society. Governance costs include those incurred in meeting constitutional and statutory requirements, and the preparation of the financial statements. iv) Tangible fixed assets and depreciation Tangible fixed assets are stated at cost. Depreciation is calculated to write off that cost over the expected useful life of each asset, as follows: Leasehold land and buildings are depreciated on a linear basis over the period remaining on the

lease ( ie to 31st May 2020); Fixtures and fittings are written down to a nominal value in the year of acquisition; Glasshouses are depreciated on a linear basis over ten years; and Machinery, vehicles and equipment are depreciated on a linear basis over five years.

v) Investments Investments are stated at market value, and revaluation gains and losses are included in the Statement of Financial Activities. vi) Stock Stock is valued at the lower of cost and net realisable value. It relates to books and publications held for sale to members and visitors. It does not include plants or any work in progress. vii) Creditors Short-term creditors are valued at their transaction price.



NOTES TO THE FINANCIAL STATEMENTS (cont) 1. Accounting Policies (cont) viii) Taxation The Society is exempt from corporation tax. ix) Reserves The policy on Accumulated Funds held as Reserves is set out in Note 10 to the Financial Statements. 2. Restricted and Unrestricted Funds The Society has entered into an agreement with the Holehird Trust for the upkeep of those parts of the gardens outside its lease. This income of £17,850 can only be spent on these activities. A donation from the Lakeland Rose Society of £7,350 is to be used to fund a new path designed to improve access. There are no restrictions on any other income. Included in the Society’s total funds is an amount of £4,000 (the Mary Miles endowment) which can be spent only in extremis. It is therefore disclosed separately on the Balance Sheet. 3. Voluntary income

2018 2017 £ £ Restricted donation ( the Holehird Trust - Note 2) 17,850 17,850 Restricted donation (other) 7,350 - Other donations 83,657 61,577 Membership subscriptions 20,217 20,677 Gift aid reclaimed 6,724 7,094

135,798 107,198

4. Other charitable income

2018 2017 £ £ £ Plant sales 17,536 17,635

Vending machine sales 4,183 4,225 Less: Cost of vending machine supplies 1,120 1,309

3,063 2,916 Sales of stationery, guides and books 4,138 3,544 Advertising sales in Society Journal 2,115 1,630 Income from educational courses 2,052 297

28,904 26,022



NOTES TO THE FINANCIAL STATEMENTS (cont) 5. Investment income

2018 2017 £ £ Interest on bank deposits 5,284 6,411

6. Garden and Estate maintenance

2018 2017 £ £ Garden maintenance 73,140 28,122 Plants purchased 8,568 6,064 Estate maintenance 42,228 28,399

123,936 62,585

Included in Garden Maintenance is £33,767 (2017: nil) in respect of the costs incurred thus far in drilling a borehole to provide a water supply to the gardens and farm buildings. 7. Other charitable expenditure

2018 2017 £ £ Costs of publishing Journal and Newsletters 5,576 6,031 Cost of guides and books 732 46 Courses, bursaries and lectures 6,377 3,478

12,685 9,555

8. Administration costs

2018 2017 £ £ Membership administration 5,381 4,190 Insurance 6,084 6,876 Publicity and Open Day 5,617 6,193 Website and IT costs 1,725 6,643 Other 5,619 6,029

24,426 29,931



NOTES TO THE FINANCIAL STATEMENTS (cont) 9. Governance costs

2018 2017 £ £ Independent Examination costs 1,800 1,700 AGM costs 466 436

2,266 2,136

10. Accumulated Funds In accordance with guidance issued by the Charities Commission, the Trustees have considered whether it is appropriate for the Society to retain funds for future charitable activities. The Trustees take the view that the operation and maintenance of a Lakeland garden is a long term project, and accordingly have entered into a long term lease with the Holehird Trust. Further, its income is highly seasonal, whereas its pattern of expenditure is not. It is therefore appropriate for the Society to accumulate some of its funds. One unavoidable factor in planning the Society’s operations is the weather. Twice in the last decade Cumbria has suffered appalling flood damage, which in the future could have two main consequences for the Society: severe damage to the gardens themselves, and a curtailment of visitor numbers. In addition, an outbreak of foot and mouth disease, or a similar hazard, could restrict the number of tourists and visitor numbers generally. Consequently, the Trustees have decided that the Society’s Reserves should be sufficient to cover both the rebuilding of the gardens, and to cover two years’ expenditure whilst the gardens were out of operation, and to allow visitor numbers, and income, to recover. At their meeting in August the Trustees agreed a budget for the year 2018-19 in which expenditure on ordinary activities would roughly equate to income. In addition, and as disclosed in Note 15, commitments (in the nature of ongoing capital projects) were agreed at a total cost of £30,000. Total accumulated funds at 31st August 2018 can therefore be considered as follows:

£ Invested in tangible fixed assets (Note 11) 92,000 Invested in stock 5,400 Capital commitments (Note 15) 30,000 Two years’ budgeted expenditure 269,000 Rebuilding costs 184,050

580,450



NOTES TO THE FINANCIAL STATEMENTS (cont) 11. Tangible fixed assets

Leasehold Fixtures & Machinery, Glasshouses Total Land & Fittings Vehicles & Buildings Equipment £ £ £ £ £ Cost At 31 August 2017 366,464 20,539 92,608 175,556 655,167 Additions - - - - - At 31 August 2018 366,464 20,539 92,608 175,556 655,167

Depreciation At 31 August 2017 335,902 20,529 73,691 102,224 532,346 Charge for the year 10,209 - 2,220 18,332 30,761 At 31 August 2018 346,111 20,529 75,911 120,556 563,107

Net Book Value At 31 August 2018 20,353 10 16,697 55,000 92,060

At 31 August 2017 30,562 10 18,917 73,332 122,821

12. Fixed asset investments

2018 2017 £ £ Balance at 31 August 2017 61,525 54,724 Revaluation gain 5,352 6,801

Balance at 31 August 2018 66,877 61,525

The Trustees’ investment policy allows an investment of up to 15% of the total available cash in the Charities Investment Fund (COIF) split equally between accumulation and income units. These investments are stated at market value, and the resulting gain of £5,352 (2017: gain of £6,801) is included in the Statement of Financial Activities.



NOTES TO THE FINANCIAL STATEMENTS (cont) 13. Cash at bank The Trustees’ investment policy is, as far as possible, to maximise the return on the Society’s investments. Within this, the Government guarantee of £85,000 acts as a ceiling for funds invested in any one financial institution. This policy, and the actual investments with each institution is reviewed every twelve months. Cash at bank includes deposits with Building Societies regulated under the Prudential Regulation Authority (part of the Bank of England) and the Financial Conduct Authority. Certain deposits are available without notice, and the others have been placed with a maturity of no more than one year. 14. Creditors

2018 2017 £ £ Subscriptions for 2017/18 received in advance - 464 Examiner’s Fee 1,800 1,700 Trade creditors 32,987 4,287

34,787 6,451

Included in Trade Creditors is one amount of £23,140 accrued in respect of work on the borehole project referred to in Note 6. All amounts are payable within one year. 15. Commitments

The Trustees have agreed the following capital expenditures: 2018 2017 £ £ Paddock frame repairs 9,000 10,000 Repair to walls of walled garden 4,000 9,000 Water supply improvements 2,500 25,000 Repairs to pathways - 20,000 Repairs (concreting) to compost area - 2,000 Minor works – dependent on lease negotiations 14,500 - 30,000 66,000

16. Trustee Remuneration No remuneration was paid to Trustees (2017: nil) and there were no expenses incurred in their roles as trustees (2017: nil) 17. Related Party Transactions There were no transactions with related parties (2017: none).

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