rapto Web viewUnder the terms of the Trust Deed one of the Trustees must be a member of the Hope Family, and hold office for his or her lifetime. The Marquess of Linlithgow and the

Charity Number: SC009760

HOPETOUN HOUSE PRESERVATION TRUST

CONSOLIDATED REPORT and ACCOUNTS

For the year ended 31 December 2011

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INDEX to REPORT and ACCOUNTS

Page

Report of the Trustees 2 - 9

Independent Auditors’ Report 10

Statement of Financial Activities 11

Balance Sheet 12-13

Notes to the Accounts 14 - 23


REPORT of the TRUSTEES

Charity NumberSC009760

Principal AddressHopetoun HouseSouth QueensferryEH30 9SL

TrusteesE M P Denny (Chairman) * (Re-appointed November 2008)R Douglas Miller (Re-appointed June 2008)J D K Montgomery * (Re-appointed November 2008)P A T I Burman (Re-appointed November 2010)Mrs K M A Dalyell (Re-appointed November 2010)J E Holloway (Re-appointed November 2010) M Benson (Appointed November 2009)The Marquess of Linlithgow (ex officio) *Earl of Hopetoun (Deputy Chairman) (ex officio) *

* Member of Executive Committee

Senior Staff MembersP de Salis – General Manager

BankersAdam & Company plc22 Charlotte SquareEdinburghEH2 4DF

Investment ManagersAdam & Company Investment Management Limited22 Charlotte SquareEdinburghEH2 4DF

SolicitorsTurcan Connell Princes Exchange1 Earl Grey StreetEdinburghEH3 9EE

Financial AdvisersDBFM3 Walker StreetEdinburghEH3 7JY

AuditorsChiene + TaitChartered Accountants and Statutory Auditor61 Dublin StreetEdinburghEH3 6NL

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REPORT of the TRUSTEESThe Trustees present their report and accounts for the year ended 31 December 2011.

Structure, Governance and ManagementThe Trust was set up by the Earl of Hopetoun (now the fourth Marquess of Linlithgow) as a private Charitable Trust under a Deed of Trust dated 17 July 1974, as amended by a Deed of Amendment dated 1 April 1985.

The Trust is controlled by a Board of Trustees which meets twice a year. The Executive Committee, which meets regularly, is responsible for the day to day running of the Trust. Other sub-committees, including finance, and the conservation advisory panel meet during the year as appropriate.

Under the terms of the Trust Deed one of the Trustees must be a member of the Hope Family, and hold office for his or her lifetime. The Marquess of Linlithgow and the Earl of Hopetoun are ex officio members of the Board of Trustees. Other Trustees are appointed for a period of five years by the Board of Trustees and are eligible for re-election after this period for further periods of five years.

Trustees are chosen to meet the needs of the Trust in terms of conservation, preservation, education, business, human resource, estate and financial skills. New Trustees are provided with a full brief and introduction to the Trust’s assets and activities. Trustees are updated regularly by appropriate professionals on changes to regulatory practices and requirements.

The Trust is run on a day to day basis by a permanent team of staff.

Connected bodiesThe Trust owns 100% of the share capital of Hopetoun House Limited. This company administers the catering and special event functions and operates the gift shop at Hopetoun House. During the year the Trust was due by gift aid £151,924 (2010: £71,360) from the company. This company is managed by a Board of directors made up of members of the Executive Committee.

Michael Denny, the Earl of Hopetoun, and Jamie Montgomery are also Trustees of The Hopetoun Foundation. The Hopetoun Foundation donates the whole of the income generated from its investment portfolio, net of expenses, to Hopetoun House Preservation Trust each year. In the year to 31 December 2011, Hopetoun House Preservation Trust donated £1,450 (2010: £1,260) to The Hopetoun Foundation to cover its legal and other expenses. The Trust is also responsible for the safe keeping and presentation of chattels owned by the Foundation.

Risk ManagementThe Trustees have assessed the major risks to which the charity is exposed, in particular those related to the operation and finances of the Trust, with the production of a formal Risk Register which will be reviewed on a regular basis. The Trustees identified an exposure to risk in the following areas; trading activities, performance of the investment portfolio, the care and condition of Hopetoun House, its contents and surrounding policies and the care and condition of the chattels, including those owned directly as well as those on loan from the Hopetoun Foundation and elsewhere. The day to day business of the trust is controlled by an Executive Committee of Trustees which meets regularly. The investment portfolio is monitored on a quarterly basis through reports received from the fund managers, in addition to formal presentations made twice a year. The care and condition of the house and chattels is monitored by staff on a daily basis, in addition to the house committee and a conservation advisory panel. The Trustees are satisfied that systems are in place to mitigate exposure to these risks.

Objectives and activitiesThe principal objectives of the Trust are:

(a) To preserve as National Monuments buildings of national historic or architectural or artistic interest and importance including in particular Hopetoun House and Grounds, and to protect and improve the amenities of such buildings and their surroundings.

(b) To preserve for the benefit of the nation and in association with any such buildings, the contents of national historic or artistic interest.

(c) To facilitate and encourage access to and the study and appreciation of such buildings and contents.

There have been no changes in the objectives since the last annual report.

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REPORT of the TRUSTEES (Contd.)

Achievements and performanceThe Trust’s aim is to meet its principal objectives of Conservation, Education and Public Access, supported by three key areas of business activity; Being open as a Visitor Attraction; Putting on a varied programme of Public Events; Running a high quality Hospitality Business. A brief description of these activities and business sectors follows.

Visitor Attraction and EducationHopetoun is open to the public on a seasonal basis from Good Friday to the final weekend in September and for booked parties throughout the year by pre-arrangement. Opening hours are 10.30am to 5.00pm daily (last entry 4.00pm) and The Stables Tearoom provides table service from 11am to 4.30pm, managed by the Trust’s contracted caterer, Heritage Portfolio. The House is interpreted for visitors by a small core of paid guides and 50 volunteer guides, overseen by the Head Guide.

VisitScotland this year re-awarded Hopetoun Five Star status under its Quality Assurance Scheme – an achievement that the Hopetoun staff continues to work hard for and one of which everyone is rightly extremely proud. This reflects the quality of Hopetoun’s existing operation and activities, and a continued programme of enhancements and improvements implemented throughout the year. In particular, however, it reflects the excellence and positive attitude of the Hopetoun staff, both paid and volunteer.

Visitors with mobility problems are able to access the main floor of the house, and to view images of rooms on the upper floor and of the view from the roof, on the touch screen computer installed in the main hall. This computer also gives information on silver commissioned for the Hope family. The development of this facility is popular with all visitors, allowing further access to behind the scenes collections and subjects.

The programme of special interest tours of the House led by Head Guide continued to develop this year covering topics such as 18th Century dining, the development of Hopetoun told through the portrait collection, and tapestry tours. The free introductory tours, offered on a daily basis and aiming to give visitors a greater understanding and appreciation of Hopetoun continued this year after last year’s trialling of the initiative. They were offered as an addition, rather than a substitute to un-guided access and greatly enhanced the visit quality and length of visit for many visitors. This programme will continue to develop in 2012. Costumed guides also continued on holiday Mondays representing Housekeeper Jean Young and Footman James Harper (both employed at Hopetoun in the 1740s). They gave information on the working of Hopetoun, dining and servants’ life in the eighteenth century, adding an additional layer of interest to our visitors.

Last year’s Drop-In sessions offered by the Ranger and Education team developed this year into a more focussed ‘Activity Week’ in the Summer Holidays. This format proved very popular and was enjoyed by a greater number than those who had enjoyed the periodic Drop-In sessions in 2010. Following the success of this trial it will be developed further in 2012.

The Education team offers a series of curriculum-linked, hands-on workshops for primary schools throughout the academic year. Visits last a full day, during which pupils are provided with period costume and led through the House to discover life “below stairs”, under the ‘strict supervision’ of the Housekeeper, a member of the Education team. Pupils are also given the opportunity to carry out hands on chores such as butter making and writing with quill pens. Tours of the grounds are also offered in conjunction with the Ranger Service and may involve pond dipping or exploring for signs of animal habitat. School visits have again been very popular with bookings being at full capacity throughout term-time; with over 3,300 children enjoyed and learned from the programme this year.

Following last year’s award from the Heritage Education Trust, acknowledging the quality and depth of experience given to schools by the Education Team, continued improvements have been made to the offering to schools, further enhancing the educational value of their visits.

The Ranger and Education Team also worked with our local primary school on an education initiative with a different focus - using Hopetoun as the Basis for a ‘World At Work’ Programme. Through visits to Hopetoun the children gained an in-depth understanding of the considerable range of jobs and people

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required for the Trust to fulfil its Conservation and Education Activities, as well as for it supporting business streams. Following an initial visit the school-children were given two tasks; one to design and plan a wedding; the other to design and plan a large-scale outdoor event. The children planned all elements, from costing to staffing, menus and entertainment, design, marketing and delivery, following which they returned to Hopetoun with their school and parents to present their ideas. The engagement, enthusiasm and educational impact of this project was of an extremely high standard and rewarding for us to deliver, and we will continue to support this joint education initiative in the future.

Education: Conference and Seminar SeriesFollowing the success of the inaugural Hopetoun Conference & Seminar Series this year’s seminar was on a smaller and much more directed, focussed level, with the intention of publishing a ‘Hopetoun Book’, with the key contributors all being academics of high standing in their areas. Such a publication will significantly add to the understanding of the history and significance of Hopetoun’s family, buildings, collections and designed landscape, which is a core objective of the Trust.

Public Events Throughout the year there are a number of events organised in-house for the benefit of the public, which also raise awareness of Hopetoun in the local community. They are advertised by way of local area posters and press; through the Hopetoun Web-site and electronically circulated directly to over 1,500 people on Hopetoun’s database, as well as through increasingly effective use of social media (eg Facebook and Twitter).

This year these included the following:

Ranger EventsThe Ranger programme of walks and workshops took place throughout the year, helping visitors appreciate and enjoy the 150 acres of grounds surrounding the House. Popular events such as the Deer Walk, Night Hunters, Fungal Foray and Easter children’s event returned. For the second year the Grounds were also opened out of season as part of the Scottish Snowdrop Festival, which was further enhanced this year with the introduction of a Walker’s Tea-Room. The popular triangular walk between The House of the Binns, Hopetoun and Blackness Castle was well attended. In addition to working with Historic Scotland and the National Trust for Scotland, the Ranger Service has also worked closely with the RSPB and Craigie Farm at the Craigie's Nature Weekend. For the third year Hopetoun participated in ‘West Lothian Walking Week’ in conjunction with West Lothian Council, broadening the trust’s reach and expanding its participation in the local community.

The Present Event – Hopetoun’s Christmas Shopping Fair‘The Present Event’, which is now in its 14 th year, provides Christmas shoppers with an array of interesting and unusual gift ideas under one roof. This year over 60 stands were present, sited in the Ballroom, Tapestry Room, Garden Parlour, Front Hall and Red Drawing Room. The State Dining Room was decorated with a Christmas theme.

Following last year’s early closure due to the snow storms, this year’s event ran at full capacity and was enjoyed by over 4000 people, being a mix of repeat and new visitors to Hopetoun House. This year the partner-charity was the Make a Wish Foundation, which was successful in raising both awareness and funds as well as making Hopetoun’s activities known to members of its organisation.

This event attracts people from a broad area for a specific purpose – to shop, but to do so in this stunning location which makes it unique. This event is both fundraising and profile raising, and the exhibitors reflect the quality image that the Trust is always trying to present and protect. This largely successful formula will be repeated in 2012.

Antiques Fair – This year Hopetoun again hosted Galloway Antiques who provided a very high quality fair and attracted additional visitors to all that Hopetoun has to offer.

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Outdoor TheatreOpen air theatre brings Hopetoun to the attention of a wider audience. Following last years popular performance of Pride and Prejudice, this year The Chapterhouse Theatre Company continued their involvement at Hopetoun, performing Jane Austen’s Cranford. Unfortunately December’s scheduled indoor performance of A Christmas Carol was snowed off, though in its place the Theatre group returned in early 2012 to perform Sense and Sensibility.

Italian Car ClubThe Italian Car and Bike Club event has now grown into an established public event in its own right, building on the past two years experience, attracting a greater number of participants, exhibitors and members of the public, many of whom being introduced to Hopetoun for the first time. Planning for the 2012 event is already well underway.

The Cancer Research 5k RaceThis event was hosted at Hopetoun again, bringing many new and repeat visitors to Hopetoun, with the entrants raising considerable funds for Cancer Research. With the majority of the entrants being from the local area, involvement in this event consolidates our involvement and profile within our local community.

Bonfire NightBonfire Night was staged for the third year, with a great deal learned from the previous two year’s events. Close collaboration with Hopetoun Estates and with the Event, Police and Licensing teams from Edinburgh and West Lothian resulted in a very successfully run event, attracting a capacity audience – demonstrating the capability of Hopetoun and its team to successfully deliver larger-scale public events to raise both profile and income for the Trust.

Event Development – Concert and Horse TrialsFurther to this, and to plans made in the previous year with Hopetoun Estates, Hopetoun as a whole collaboratively hosted a third-party managed Pop Concert, through which 6,000 attendees came to a Boyzone Concert held in front of the House. Through working with Hopetoun Estates, the Concert Promoter (CK Events) and the local authorities the delivery of this concert was extremely smooth and again demonstrated to third party/commercial organizations that Hopetoun has the capability to host such events. We have already had commercial enquiries for 2012 for this scale of events. The potential conservation impact of these events was carefully considered and managed with no detriment to the grounds. Also in collaboration with Hopetoun Estates, Hopetoun put on its own new event in the way of a British Eventing accredited International Horse Trials, which was also supported by West Lothian Council, Event Scotland and a series of sponsors. The event combined both equestrian spectacle and elements of the Summer Fair, though on a grander scale. This event showcased Hopetoun at its best, both in the grounds and in the House, welcoming over 6,000 visitors over one weekend. The event came in on budget and is projected to develop in future years as well as increasing in income.

This year, Hopetoun’s share of the bonfire night, concert and horse trials have been accounted for through Hopetoun House Limited, however a new limited liability partnership between Hopetoun House Limited and Hopetoun Estates has been formed to develop this collaboration further.

Conservation, Maintenance and Collections CareThe severity of the ice and snow over the winter lead to notable, though not catastrophic tree and roof damage, the reparation of which became the focus of the maintenance team and contractors at the start of the year. Beyond that, works to the North End Caterers office were completed. In addition to this, hidden decay above the plasterwork ceiling of the South Colonnade became apparent and works to restore this are scheduled for the spring of 2012. The Quinquennial survey was near completion at the end of 2011 and is expected to be finalised in early 2012 allowing an informed programme of buildings maintenance to be formulated.

Conservation and collections care continues under the co-ordination of the Trust’s in-house team, with the Conservators of the resident Scottish Conservation Studio (SCS) carrying out work on the collections. With generous funding of up-to-date recording equipment from our Volunteer organisation improvements to the Environmental Monitoring Programme continued to develop in 2011, informing current and future Conservation Care at Hopetoun.

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Beyond the standing collections care and housekeeping programmes, winter cleaning of the library books was undertaken by volunteers, as was continued volunteer work on the Tapestry Collections. Research and discussion on treatment options for moth outbreaks in the 18 th Century furniture in the Red Drawing Room have been ongoing with the Scottish Conservation Studio and the Conservation Advisory Panel. It is expected that a favoured option will be selected and acted on in early 2012.

Likewise much analysis on current conservation cleaning of the Tapestry Collection has been undertaken, comparing it to services on offer from third party specialists (as used by some major conservation organizations). Both the coordinator of the Trust’s work on tapestries and one of the Trustees have independently visited the National Trust’s Textile Conservation Unit in Blickling for advice, and also the de Witt Studio who are the leading conservation cleaning organization for such historic collections. This comparative research will inform the Trust’s conservation approach in 2012.

The Trust greatly benefited from a volunteer assistant from the National Archive who completed the assessment of the archives, giving good recommendations on their future access and care, as well as cementing a forward-looking working relationship with the National Archives Scotland. To take these measures forward the Trust aims to identify a part-time volunteer archivist to continue this work in 2012.

Maintenance and conservation were further enhanced in the grounds by the continued development of volunteer projects and the further development of Hopetoun’s own ‘Green Team’ Volunteers, all led and co-ordinated by the Ranger Service. The Team now numbers over 30 volunteers which enables Hopetoun to achieve additional valuable conservation work and further supports the development of Hopetoun’s community links.

Corporate Events and WeddingsHopetoun is a leading venue in central Scotland for a wide variety of corporate and private entertainment. Events include gala dinners, marquee events, corporate & incentive entertaining, drinks receptions, conferences, bespoke and themed events, team building events, seminars, VIP meetings, product launches, car launches, outdoor activities, fashion shows, exhibitions and fairs, concerts, location filming, wedding ceremonies and receptions. Bookings are taken for these activities throughout the year.

The range of facilities offered is incredibly versatile, from small dinners or meetings for up to 20 to prestigious gala dinners for 300 using the House and Ballroom. Large-scale marquee events can be held using the lawns in front of the House.

This area of business is the most significant area of income for the Trust. After two challenging years, 2011 saw the team significantly win more business for the Trust enabling increased expenditure on conservation projects in 2011.

Re-Branding, Web-Site and Collaborative WorkThe Scottish Enterprise supported collaborative marketing initiative with Hopetoun Estates continues to develop – notably with web-site development and also with the design development and marketing of joint products. Examples of this are Estate Holiday Cottages that can be used as Bridal Accommodation for the Trust’s Wedding Business, and Clay Pigeon Shooting that can be added to the Trust’s offering to corporate and private clients, in addition to the Joint Events Programme already mentioned. Further steps were taken in 2011 with the introduction by Hopetoun Estates of the nearby Hopetoun Farm Shop, and the relocation of Blue Sky Events to Hopetoun, providing Hopetoun with a partner to provide corporate and public outdoor activities; both adding to the broader offer and appeal of Hopetoun.

Volunteer SupportAs in previous years, the Trust has relied on the services of a large number of volunteers who give their services largely for the public operation of the House as guides and special events staff, and also in the areas of Grounds and Tapestry Conservation. These volunteers complement the permanent staff of the Trust, and their contribution is very much appreciated.

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Review of financial positionThe surplus for the year of general funds amounted to £40,488 (2010: £106,649 surplus) on the income and expenditure account. The balance on the general fund was £2,400,035 (2010: £2,360,947), and the balance of the designated revaluation reserve is £10,891,754 (2010: £10,891,754).

The turnover of the subsidiary Hopetoun House Limited in the year to 31 December 2011 was £598,900 (2010: £496,137). The profit before the transfer by gift aid to Hopetoun House Preservation Trust for the year to 31 December 2011 was £151,924 (2010: £71,360).

The Trustees carried out an impairment review of the Trust’s assets. It was agreed that no further adjustment be made to the value of assets at this point in time.

Financial Reporting Standard 30 (FRS 30) – Heritage Assets

During the previous year the Trust adopted Financial Reporting Standard 30 – Heritage Assets. A heritage asset is defined as “a tangible asset with historical, artistic, scientific, technological, geophysical or environmental qualities that is held and maintained principally for its contribution to knowledge and culture”. The objective of the standard is to ensure enhanced disclosure of all such assets, and where information is available, to report the cost or value of these assets on the balance sheet.

Clearly the house, grounds, outlying properties and chattels owned by the Trust fall into this category of heritage asset. As a result of the adoption of this standard, certain buildings and the chattels have been revalued on the face of the balance sheet giving rise to an increase of £10,891,754. The chattels value is based on the insurance valuation initiated by Sothebys in 2009 and completed in 2010. The valuations of property that could be assessed reliably were carried out in 2010 by Retties Estate Agents.

Reserves PolicyThe purpose of the Endowment Fund is to ensure a suitable income stream is generated to finance the Trust’s objectives. It is represented by a portfolio of investments, which are managed by Adam & Company Investment Management Limited who operate within guidelines set out by the Trustees.

The Property Improvements Grant is a restricted fund and is utilised as and when expenditure is incurred on the improvement of Hopetoun House and its grounds.

Unrestricted general funds represent funds arising from past operations, on whose use no restrictions are placed. These include operating surpluses, unrestricted grants, donations and total £2,400,035. Re-valued heritage assets are included in the revaluation reserve and total £10,891,754. Therefore the total balance of unrestricted funds is £13,291,789.

Investment PolicyThe day to day management of the investments of Hopetoun House Preservation Trust has been delegated by the Trustees to Adam & Company Investment Management Limited. The investment policy is based on a balance between income and capital growth. The Trustees monitor both income generation and capital growth against recognised benchmarks and are satisfied with the performance of the portfolio of investments in light of market conditions during the year.

Plans for future periodsIt is the Trust’s intention to meet its principal objectives and to run an increasing operating surplus, thus allowing greater levels of conservation and maintenance. In doing so, the Trust will continue to attract a significant number of visitors to the house. Future plans include the sensitive and appropriate development of the Corporate Entertainment Business, the continuation of the conservation-maintenance programme, the continued upgrading of the fire-detection system and a staged re-display of the central core of the House.

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Statement of Trustees responsibilitiesThe Trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in Scotland requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to:

select suitable accounting policies and apply them consistently; observe the methods and principles in the Charities Statement of Recommended Practice; make judgements and estimates that are reasonable and prudent; state whether applicable accounting standards have been followed, subject to any 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 charity will continue in operation.

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements, comply with the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 and the provisions of the charity’s constitution. The applicable law also sets out the trustees’ responsibilities for the preparation and content of the Report of the Trustees.

The Trustees are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

ON BEHALF OF THE BOARD

E M P DENNYChairman

26 April 2012

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INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF


We have audited the financial statements of Hopetoun House Preservation Trust for the year ended 31 December 2011 set out on pages 11 to 23. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

This report is made solely to the charity’s trustees, as a body, in accordance with section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditors’ report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of trustees and auditorAs explained more fully in the Trustees’ Responsibilities Statement set out on page 7, the trustees are responsible for the preparation of financial statements which give a true and fair view.

We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and report in accordance with regulations made under that Act. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s (APB’s) Ethical Standards for Auditors.

Scope of the audit of the financial statementsAn audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the charity’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the trustees; and the overall presentation of the financial statements.

Opinion on financial statementsIn our opinion the financial statements:

give a true and fair view of the state of the charity’s affairs as at 31 December 2011 and of its incoming resources and application of resources, 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 Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006.

Matters on which we are required to report by exceptionWe have nothing to report in respect of the following matters where the Charity Accounts (Scotland) Regulations 2006 (as amended) requires us to report to you if, in our opinion:

the information given in the Trustees’ Annual Report is inconsistent in any material respect with the financial statements; or

proper accounting records have not been kept; or the financial statements are not in agreement with the accounting records and returns; or we have not received all the information and explanations we require for our audit.

CHIENE + TAIT Chartered Accountants and Statutory Auditor61 Dublin StreetEdinburgh EH3 6NL

26 April 2012

HOPETOUN HOUSE PRESERVATION TRUSTCONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIESFor the year ended 31 December 2011

Total TotalEndowment Restricted Unrestricted 2011 2010

£ £ £ £ £Incoming resourcesIncoming resources from generated funds

Voluntary incomeDonations - Hopetoun Foundation - - 50,644 50,644 41,707Donations – other - - 2,746 2,746 115,175Grants received - other - - 11,025 11,025 17,200Miscellaneous income - - 2,100 2,100 -Activities for generating fundsRental and licensing income - - 65,070 65,070 62,845Trading income – Hopetoun House Limited - - 598,900 598,900 496,137Investment incomeInvestment income - Endowment 22,917 - - 22,917 19,850Interest received - Bank deposits - - 185 185 73

Incoming resources from charitable activitiesAdmission receipts - 85,159 85,159 83,883

Special event income - - 37,812 37,812 84,808Guide book sales - - 3,267 3,267 3,704

Other Incoming ResourcesGain on sale of assets - - - - -

-------------- ------------- -------------- -------------- ---------------Total Incoming Resources 22,917 - 856,908 879,825 925,382

-------------- ------------- -------------- -------------- ---------------Resources expendedCosts of generating funds

Fundraising trading: cost of goods soldAnd other costs – Hopetoun House Limited - - 244,101 244,101 220,349Investment management costs 3,204 - 7,881 11,085 11,082

Charitable activities (notes 2 – 4)Preservation of Hopetoun House and grounds - - 176,478 176,478 157,780Facilitation of access, study and appreciationof Hopetoun House and grounds - - 396,142 396,142 426,149

Governance costsLegal and professional fees - - 1,335 1,335 1,835Audit and accountancy fees 8,555 8,555 8,085Hopetoun House Limited - - 3,041 3,041 4,501

-------------- --------------- --------------- --------------- ---------------Total resources expended 3,204 - 837,533 840,737 829,781

-------------- --------------- --------------- --------------- ---------------Net incoming resources before transfers 19,713 - 19,375 39,088 95,601Transfers between funds (19,713) - 19,713 - -

--------------- -------------- -------------- --------------- ---------------Net incoming resourcesbefore other gains and losses - - 39,088 39,088 95,601Realised gain on investments (note 9) 1,400 - - 1,400 11,048

--------------- -------------- -------------- --------------- ---------------Surplus for year 1,400 - 39,088 40,488 106,649Unrealised loss/gain on investments (19,613) - - (19,613) 36,633Revaluation of fixed assets - - - - 10,891,754

--------------- --------------- --------------- --------------- ---------------Net movement in funds (18,213) - 39,088 20,875 11,035,036Total funds at 31 December 2010 545,237 1,582,350 13,252,701 15,380,288 4,345,252

-------------- --------------- ------------- -------------- ---------------Total funds at 31 December 2011 527,024 1,582,350 13,291,789 15,401,163 15,380,288

========= ======== ======== ======== ========

All activities related to continuing operations. The notes on pages 14 to 23 form part of these accounts.

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CONSOLIDATED BALANCE SHEET

As at 31 December 2011

Notes 2011 2010£ £ £ £

Fixed assetsHeritage assets 5 14,818,637 14,793,777Other fixed assets 6 6,310 7,339

-------------- --------------14,824,947 14,801,116

InvestmentsListed 9 488,474 506,687

------------ ------------488,474 506,687

-------------- ------------15,313,421 15,307,803

Current assetsStocks 4,161 6,747Debtors 10 146,887 157,412Cash at bank and in hand 224,458 195,465

------------ ------------375,506 359,624

------------ ------------

Creditors: amounts due within one yearCreditors 11 273,295 277,545

------------ ------------Net current assets 102,211 82,079

------------- --------------15,415,632 15,389,882

Creditors: amounts due in more than one yearDeferred income 14,469 9,594

-------------- --------------Net assets 15,401,163 15,380,288

======== ========

FundsEndowment Fund 12 527,024 545,237Restricted Funds 13 1,582,350 1,582,350Unrestricted Funds – General reserves 14 2,400,035 2,360,947Unrestricted Funds - Designated revaluation reserve 14 10,891,754 10,891,754

--------------- ---------------13,291,789 13,252,701-------------- --------------

15,401,163 15,380,288======== ========

Approved by,

................................................................ ChairmanE M P Denny

26 April 2012

The notes on pages 14 to 23 form part of these accounts.

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BALANCE SHEET

As at 31 December 2011

Notes 2011 2010£ £ £ £

Fixed assetsHeritage assets 5 14,818,637 14,793,777Other fixed assets 6 6,310 7,339

-------------- --------------14,824,947 14,801,116

InvestmentsListed 9 488,474 506,687Unlisted 9 1,000 1,000

------------ ------------489,474 507,687

-------------- ------------15,314,421 15,308,803

Current assetsStocks 1,342 2,887Debtors 10 191,508 101,979Cash at bank and in hand 56,398 110,530

------------ ------------249,248 215,396

------------ ------------

Creditors: amounts due within one yearCreditors 11 162,677 144,082

------------ ------------Net current assets 86,571 71,314

-------------- --------------Net assets 15,400,992 15,380,117

======== ========

FundsEndowment Fund 12 527,024 545,237Restricted Funds 13 1,582,350 1,582,350Unrestricted Funds – General reserves 14 2,399,864 2,360,776Unrestricted Funds - Designated revaluation reserve 14 10,891,754 10,891,754

--------------- ---------------13,291,618 13,252,530-------------- --------------

15,400,992 15,380,117======== ========

Approved by,

................................................................ ChairmanE M P Denny

26 April 2012

The notes on pages 14 to 23 form part of these accounts.

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NOTES to the ACCOUNTS


1. Accounting policies

Accounting conventionThe accounts have been prepared under the historical cost convention, with the exception of amounts stated for Landed Assets and Chattels (see below) and modified to include the revaluation of investments. The accounts are prepared in accordance with the Statement of Recommended Practice – Accounting and Reporting by Charities (SORP) 2005 and the Charities Accounts (Scotland) Regulations 2006.

Basis of preparationThe consolidated accounts herein include the accounts of Hopetoun House Preservation Trust (a separate charity) and Hopetoun House Limited (the trading subsidiary of Hopetoun House Preservation Trust).

Investments and investment incomeInvestments are included in the Balance Sheet at market value at the year end date, the unrealised gain or loss being applied to the Endowment Fund. Income from investments is accounted for on a receivable basis. Unrealised and realised gains or losses on the sale of investments are credited or charged to the Endowment Fund.

Grants receivableGrants in respect of capital and revenue expenditure are credited to the relevant account when the grants are expected to be received. DonationsDonations received are credited to Endowment, Restricted or Unrestricted funds and are applied in accordance with the wishes of the donor.

Resources expendedCosts of generating funds are those associated with generating incoming resources and charitable activities costs are those expended on meeting the charity’s objectives. Governance costs are those of a constitutional, strategic, or statutory nature with respect to the general running of the charity, rather than day to day management. Costs directly attributable to Charitable activities and Governance, are allocated to the appropriate activity. Support costs, including staff costs, which cannot be directly attributed to an activity are allocated on the basis of an estimate of the time or resource expended on each activity. Resources expended are recognised on an accruals basis when a legal or constructive obligation to pay arises and are shown under the appropriate category.

StocksStocks are stated at the lower of cost and net realisable value.

Capital expenditure and depreciationExpenditure on the house and the grounds is written off on the face of the Statement of Financial Activities when incurred, whilst the expenditure regarded as property improvements is capitalised in the balance sheet. Expenditure on motor vehicles, equipment and fixtures and fittings in excess of £500 is capitalised in the balance sheet and depreciated.

Depreciation is charged on the following bases:

Computer equipment - 20% straight lineFixtures and fittings - 20% straight line

Whilst Financial Reporting Standard 15 requires all tangible fixed assets to be depreciated over their useful economic life, taking account of any residual value of the assets, Financial Reporting Standard 30 states that no depreciation should be charged on heritage assets where they have indefinite lives. Consequently the Trustees consider the House, grounds and outlying properties to be interdependent on each other, and therefore make up the whole heritage asset, no further depreciation has been provided on buildings or property improvements as they are now considered to have indefinite lives.

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NOTES to the ACCOUNTS (Contd.)


1. Accounting policies (Contd.)

Where no charge for depreciation is made, an impairment review is carried out.

ChattelsOn 12 March 1981 the Earl of Hopetoun (now the fourth Marquess of Linlithgow) executed a Deed of Transfer of certain chattels which he had agreed, on the formation of the Trust, to transfer to the Trustees on demand. The chattels were included in the balance sheet at two thirds of the valuation made for insurance purposes during 1982, however they have now been restated at the full valuation made for insurance purposes in 2010.

Hopetoun House and GroundsUnder a Deed of Trust dated 17 July 1974, as amended by a Deed of Amendment dated 1 April 1985, the Earl of Hopetoun (now the fourth Marquess of Linlithgow) donated Hopetoun House to the Trust. The house is included in the balance sheet at the cost to the Trust, being £Nil. The Trustees consider that whilst the house and grounds are Heritage Assets, it is not realistic to produce reliable cost information, nor do they consider conventional valuation approaches to hold sufficient reliability. However, outlying buildings within the grounds have been restated to current market value.

The Trustees further consider the House, grounds and outlying properties to be inter-dependent on each other in the overall preservation of this historic estate, and accordingly have not been recorded separately, with the exception of those held at market value. Subsequent purchases and capital works regarded as improvements have been capitalised in the balance sheet at cost in order to reflect the level of work carried out on Hopetoun House.

Hopetoun House is an inalienable asset in that the Deed of Trust of 1974 does not permit its disposal by the Trustees.

PensionsThe Trust operates a group personal pension arrangement. Contributions payable to the scheme are charged to the statement of financial activities in the year in which they relate.

Endowment FundThis fund is invested in investments, the income from which is used for the normal operation of the Trust.

Restricted FundsProperty improvements grantThis fund is for grants received towards property improvements on the house and grounds.

Unrestricted FundsThe unrestricted funds are split into the general funds and a designated revaluation reserve. The general funds represent the original capital of the Trust plus accumulated revenue results to date. The revaluation reserve represents the revaluation surplus created on the revaluation a number of buildings and the chattels following the adoption of FRS 30 – Heritage Assets.

Operating LeaseOperating lease rentals are charged to the statement of financial activities on a straight line basis over the term of the lease.

Joint arrangementsHopetoun House Limited entered into a joint arrangement to run certain events during the year. The company’s actual income and expenditure for this arrangement is included in the turnover and cost of sales respectively of the company. The company’s share of any assets and liabilities of these events are included in the relevant balance sheet categories.

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2. Charitable activities - Preservation 2011 2010£ £

Preservation of Hopetoun House and GroundsRepairs 31,802 24,742Depreciation 2,798 2,254Support Costs 141,878 130,784

------------ ------------176,478 157,780

======= =======

3. Charitable activities - Access 2011 2010 £ £

Facilitation of access, study, and appreciation of HopetounHouse and groundsExpenses of display 179,003 156,736Special events expenditure 17,291 65,297Support Costs 199,848 204,116

------------ ------------396,142 426,149

======= =======

2011 20104. Support Costs Preservation Access Total Total

£ £ £ £

Administrative salaries (Note 16) 95,773 118,751 214,524 202,934Insurance of house, farm buildings and grounds 24,769 24,769 49,538 49,179Advertising and publicity expenses - 34,993 34,993 33,845Update to website and rebranding - - - 10,922Miscellaneous expenditure 4,990 4,990 9,980 6,801Bank charges and interest 1,363 1,363 2,726 7,812Legal and professional fees 14,983 14,982 29,965 23,407

------------- ------------ ------------- -------------141,878 199,848 341,726 334,900

======== ======= ======= =======

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House, Grounds Property 5. Heritage assets Buildings Improvements Chattels Total

£ £ £ £Cost or valuation At 1 January 2011 400,000 4,069,224 10,962,450 15,431,674Additions - 24,860 - 24,860

------------- -------------- -------------- --------------At 31 December 2011 400,000 4,094,084 10,962,450 15,456,534

------------- -------------- -------------- --------------DepreciationAt 1 January 2011 and 31 December 2011 - 637,897 - 637,897

------------ -------------- -------------- --------------Net book valueAt 31 December 2011 400,000 3,456,187 10,962,450 14,818,637

======== ======== ======== ========At 31 December 2010 400,000 3,431,327 10,962,450 14,793,777

======== ======== ======== ========

The Trust has adopted Financial Reporting Standard 30 – Heritage Assets. As a result, where assets can be separately identified and valued in a practical manner they should be shown at current value. Accordingly the Chattels have been re-valued to the full value as stated in the valuation initiated by Sothebys in 2009 and completed in 2010 for insurance purposes.

Hopetoun House and its surrounding policies, as originally gifted to the Trust, continue to be included in the accounts at £Nil, being the cost to the Trust. The Trustees consider that there is no reliable cost information, and that conventional valuation approaches would lack sufficient reliability to do otherwise.

Two buildings within the surrounding policies, Main Lodge and East Gardens Cottage, have however been able to be reliably valued at £225,000 and £175,000 respectively in 2010. These properties are integral to the overall integrity of the house and grounds and are therefore considered to be heritage assets. Consequently these values are reflected in the accounts under House, Grounds and Buildings.

As a condition of grant funding provided by Historic Scotland culminating in 2004, a standard security over Hopetoun House has been granted to them by the Trustees.

Fixtures Computer6. Other Fixed Assets & Fittings Equipment Total

£ £ £Cost or valuationAt 1 January 2011 11,768 8,416 20,184Additions 1,769 - 1,769

------------ ------------- ------------At 31 December 2011 13,537 8,416 21,953

------------ ------------- ------------DepreciationAt 1 January 2011 6,749 6,096 12,845Charge for year 2,027 771 2,798

------------ ------------ ------------At 31 December 2011 8,776 6,867 15,643

------------ ------------ ------------Net book valueAt 31 December 2011 4,761 1,549 6,310

======= ======= =======At 31 December 2010 5,019 2,320 7,339

======= ======= =======

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7. Five year financial summary of heritage asset transactions

2011 2010 2009 2008 2007£ £ £ £ £

PurchasesHouse, grounds, buildings - - - - -Property improvements 24,860 43,706 108,585 184,200 5,153Chattels - - - - -

---------- ---------- ---------- ---------- -----------Total 24,860 43,706 108,585 184,200 5,153

====== ====== ====== ====== ======

DisposalsCarrying amount - - - 500,000 -Sale proceeds - - - 500,485 -

8. Further information on the Trust’s heritage assets

Hopetoun House and surrounding policies

Hopetoun is Scotland’s Finest Stately Home and has been home to the Hope family since 1699. The Hopes commissioned the distinguished architect William Bruce to build Hopetoun House, following which the House was enlarged and improved upon by two generations of the Architects Adam, and furnished as one by James Cullen, making it a truly remarkable example of 18th century design and architecture.

The House, key contents and Formal Grounds are owned and managed by The Hopetoun House Preservation Trust (the HHPT), an independent charitable trust formed in 1974.

Chattels

The collection of furniture and paintings consists of around 350 items, as well as over three thousand books, of which the overwhelming majority/almost all are on display at any given time. Some of the contents of the House are owned by the Hopetoun Foundation, and the Archives are owned by the Hopetoun Papers Trust. The Hopetoun House Preservation Trust stewards these collections on their behalf. A full inventory is maintained of all items held.

Those items owned by HHPT, which cannot be sold by the Trustees, have been valued for insurance purposes in 2010 by Sotheby’s at a total value of £10,962,450 and are recognised in fixed assets.

Heritage assets of particular importance

As a single coherent design it is the architecture, contents and designed landscape together that are of particular significance.

Conservation and management

The Trust has identified a rolling programme of major restoration which was developed from a conservation plan prepared in 2002, and lead to significant improvement and conservation work from 2002-2005. These works are capitalised as property improvements.

Conservation is largely carried out by an internal Housekeeping and Maintenance team, under the guidance of external bodies such as the resident Scottish Conservation Studio. Significant assistance is also provided by Volunteers working on the Tapestries, Library and Archives, and also a growing number of ‘Green Volunteers’ working with the Hopetoun Ranger in the Grounds.

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In addition to the conservation plan, a Quinquennial Survey was carried out towards the end of 2011 which will inform the next five-year programme of larger Conservation and Maintenance issues. This survey is a requirement set by Historic Scotland following receipt of grant-aid from 2002-2005 for major restoration works. In tandem with this the Trust will also review its Collections Care Policy and update its Housekeeping procedures to ensure that it continues to provide the appropriate level of care to the Heritage in its care.

9. Investments 2011 2010£ £

Listed investmentsMarket value at 1 January 506,687 459,006Investments purchased 13,527 106,845Investments sold (10,765) (104,273)Cash movement (2,762) (2,572)Net realised gains 1,400 11,048Unrealised gains and losses (19,613) 36,633

------------ ------------Market value at 31 December 488,474 506,687

======= ========Cost 439,166 437,729

======= =======Gross income 22,917 19,580

======= =======

All investments held are listed on the UK Stock Exchange. The investments are managed by Adam & Company which are operated under a discretionary agreement.

Investments comprising 5% or greater of the market value of the portfolio are:

£Sarasin Inv Funds Intl Equity Income Fund B Inc 28,725Templeton Global Bond I H1 Inc GBP 29,736

Other listed investments < 5% 430,013-------------

488,474=======

£Movement of cash held on deposit for investments:Cash at 1 January 2011 9,438Decrease (2,762)

-------------Cash held and due at 31 December 2011 6,676

=======Total listed investments at 31 December 2011 481,798

=======

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The Trust owns 100% of the ordinary share capital of Hopetoun House Limited, a company registered in Scotland. The company's principal activity is the administration and organisation of special events and functions at Hopetoun House, together with running the gift shop.

During the year the Trust was due from Hopetoun House Limited £151,924 (2010: £71,360) by gift aid.

2011 201010. Debtors Group Trust Group Trust

£ £ £ £

Trade debtors 81,450 20,422 87,385 24,360Other debtors 6,469 3,312 3,067 3,067Prepayments 58,968 58,968 66,960 56,028Due from Hopetoun House Limited - 108,806 - 18,524

------------ ------------ ------------ ----------146,887 191,508 157,412 101,979

======= ======= ======= =======

2011 201011. Creditors Group Trust Group Trust

£ £ £ £

Trade creditors 98,226 93,690 94,075 81,669Other taxes and social security costs 13,522 20,849 13,487 12,383Other creditors and accruals 161,547 48,138 169,983 50,030

------------ ------------ ------------ ------------273,295 162,677 277,545 144,082

======= ======= ======= =======

12. Endowment Fund 2011 2010£ £

Balance at 1 January 545,237 497,556Net movement in funds for the year (18,213) 47,681

------------ ------------Balance at 31 December 527,024 545,237

======= =======

Balance Balanceat 1 Net at 31

January incoming December13. Restricted Funds 2011 resources 2011

£ £ £

Property improvements grant 1,582,350 - 1,582,350======== ======= =======

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Balance Balanceat 1 Net at 31

January incoming December14. Unrestricted Funds 2011 resources 2011

£ £ £

General funds 2,360,947 39,088 2,400,035Revaluation reserve 10,891,754 - 10,891,754

--------------- --------------- ---------------13,252,701 39,088 13,291,789======== ========= =========

The revaluation reserve has been created as a result of the revaluation of certain buildings and the chattels following the adoption of Financial Reporting Standard 30 – Heritage Assets referred to in Note 5 above.

NetCurrent

Fixed Assets/15. Analysis of net assets between funds Assets Investments Liabilities Total

£ £ £ £

Endowment fund - 488,474 38,550 527,024Restricted funds 1,582,350 - - 1,582,350Unrestricted funds 13,242,597 - 49,192 13,291,789

--------------- ------------ ------------ ---------------14,824,947 488,474 87,742 15,401,163========= ======= ======= =========

16. Staff costs 2011 2010£ £

Wages and salaries 293,280 265,706Social security costs 26,472 24,056Other pension costs 8,905 9,172

------------ ------------328,657 298,934

Less: Recharged to Hopetoun House Limited (114,133) (96,000)------------ -----------

Administrative salaries (Note 4) 214,524 202,934======= =======

No. No.

The average number of employees during the year was as follows 18 18======= =======

Staff costs are included in the accounts under "Administrative Salaries".

Guides work on a voluntary basis, receiving no remuneration other than the reimbursement of travel expenses.

No employee of the Trust receives emoluments in excess of £60,000 per annum (2010: Nil).

No Trustee received emoluments or reimbursement of expenses during the current and previous year.

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17. Audit and Accountancy

Audit and accountancy fees are included within Governance costs. The analysis is shown below:

2011 2010£ £

Auditors remuneration - Audit 7,750 7,110- Other services 805 975

------------ ------------8,555 8,085

======= =======

18. Other financial commitments

At 31 December 2011 the trust had annual commitments under non-cancellable operating leases expiring as set out below:

Other2011 2010

£ £Between one and two years 2,986 -Within two to five years - 2,986

------------ ---------2,986 2,986

======= =====

19. Pension scheme

During the year the Trust operated a group defined contribution personal pension arrangement for seven employees to which the Trust is contributing varying rates of salary, the maximum being 10%. The pension charge for the year was £8,905 (2010: £9,172).

20. Related party transactions

During the year to 31 December 2011 rents, and a share of premises costs, of £2,099 (2010: £3,277) were received from Hopetoun Estates. Hopetoun Estates is owned and managed by the Hope family which includes the Marquess of Linlithgow and the Earl of Hopetoun.

Hopetoun Estates charged the Trust £9,150 (2010: £9,550) in respect of a let of a cottage for the use of the General Manager to allow him to fulfil his duties. Nothing was due at the year end. The estate also makes a number of contributions in kind to the Trust. These include elements of maintenance and access rights. The Trustees are of the opinion that it is not practical to place a value on these contributions.

During the year the Trust charged £314,133 (2010: £296,000) to Hopetoun House Limited in respect of the licensing of the Trust’s premises and the use of its staff.

During the year the Trust also let the private apartments at Hopetoun House for £21,100 (2010: £21,100) to Lord Hopetoun. The amount outstanding at the year end in respect of rent was £Nil (2010: £Nil).

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During the year the Trust received net donations of £42,338 (2010: £33,826) from The Hopetoun Foundation. This was in respect of £50,644 (2010: £41,707) from its investment income, less £8,306(2010: £7,881) in investment management fees. In addition, the Trust paid legal and audit fees on behalf of The Hopetoun Foundation totalling £1,450.

21. Joint arrangement

During the year it was agreed that Hopetoun House Limited, the subsidiary trading company of Hopetoun House Preservation Trust would work more closely with Hopetoun Estates on a number of mutually beneficial events. To this end, a new limited liability partnership was formed – Hopetoun Events LLP. There were no transactions in the new LLP during the year. However, prior to the formation of the LLP a number of events were undertaken jointly to explore the feasibility of working together. These events comprised a horse trials event, a fireworks event and a pop concert. Should these events be repeated it is anticipated they will be run through the LLP.

The company’s actual income and expenditure for this arrangement is included in the turnover and cost of sales respectively of the company. The overall income and expenditure for these events, together with the company’s share of the overall loss is noted below.

2011 2010£ £

Income 230,483 -Expenditure (251,002) -

------------ ------------(20,519) -

======= =======

Company’s share of the loss (8,261) -======= =======

Documents

rapto Web viewUnder the terms of the Trust Deed one of the Trustees must be a member of the Hope Family, and hold office for his or her lifetime. The Marquess of Linlithgow and the