Registered Charity Number 1063148 THE CHURCH STREET CHARITABLE TRUST REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 THE CHURCH STREET CHARITABLE TRUST REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Contents Pag¢ Trustees, Report Report of the Independent Examiner Statement of Financial Activities (including income and expenditure account) Balance Sheet Notes to the Financial Statements 7- 10 THE CHURCH STREET CHARITABLE TRUST TRUSTEES, ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2025 Reference and administrative details The Church Street Charitable Trust Charity Number 1063148 Prineipal office and correspondence address C/0 Sunderlands Offa House St Peters Square Hereford HRI 2PQ Trustees Mr C R Geoioe (Chairnian) Mr R H L Stokes Dr M M Helme Mr A R Thomas Miss M S Davis Mrs F M Hanks Advisors Solicitors A Cunliffe Messrs Lambe Comer & Co 36137 Bridge Street Hereford HR4 9DJ Investment Advisors CAF Bank Ltd 25 King5 Hill Avenue Kings Hill West Malling Kent ME194JQ Pro Advisor Sunderlands Offa House St Peters Square Hereford HRI 2PQ Inde endent Examiner I P Cooke FCA Crowthers Accountants Limited 10 The Southend Ledbury Herefordshire HR8 2EY THE CHURCH STREET CHARITABLE TRUST TRUSTEES, ANNUAL REPORT CONTINUED FOR THE YEAR ENDED 31 MARCH 2025 The Trustees present their annual report and financial statements of the Charity for the year ended i l March 2025. The financial statements have been prepared in accordance with the accounting policies set out in note I to the accounts and comply with the Charity's Trust Deed, the Charities Act 2011 and Accountino and the Charities Statement of Recommended Practice (second edition) and Financial Reporting Standard FRS 102. Structure overnance 2nd mana ement The Church Street Charitable Trust is a registered charity (number 1063148) and was fomied on 5 March 1997 under a Trust Deed set up by Mrs Christine Mary Frederica Bulmer as the founder. Durino the year the Trustees carried out a risk review, which involved idenfifyino the risks the Charity faces, prioritising them in tern)s of potential impact and likelihood of oCcU￿enCe. and identifyincv means of mitigatino the risks. Systems are currently being reviewed and established to reduce the impact of the risks identified. New Trustees are appointed in line with the ternis of the Trust Deed. When selectino persons to appoint as new Trustee5, the Trustees shall take into account the benefits of appointing a person who is able by virtue of his or her personal or professional qualifications to make a contribution to the pursuit of the objects or manatsement of the Charity. The Trustees are considering conversion to a Charitable Incorporated Organisation (CIO) and are takinu advice in this respect. Ob ectives 2nd activities for the ublic benefit The objectives of the Trust Fund and its income is to apply the income for such Charitable purposes as the Trustees at their abSol￿te discretion think fit, and in particular, but not so as to limit the oenerality of the foregoing, for the general benefit and preservation of Church Street properties in the City of Hereford. The Charity is a public benefit entity. In setting our objectives and plannin(T our aciivilies, the Trustees have uiven careful consideration to the Charity Commission's auidance on public benefit. Having budgeted on the 5UITi to be put aside for future repairs and upkeep of the properties in Church Street it wa5 decided, if requested, to rnake further donations a(rain this year in line with earlier years to support The Courtyard for promotion of their Visual Arts for £22,000 (?024'. £12,000 which also included support for the Youth Theatre) and various other donations in the support and advancement of the education of the public in traditional crafts and handicrafts. The Trust would like to See the uniqueness of Church Street maintained as an independent shoppin(F street offerints a wide and interesting variety of individual retail and craft outlets and whenever possible to acquire further properties in Church Street. Achievement5 and erformance- how we delivered ublie benefit The Trustees continue to maintain the buildinos owned by the Trust, in 2025 spending £55,729 on general repairs and maintenance (2024.. £78,964). The Trust continued in its ongoing support of Hereford Cider Museum and in addition various grants were made available throuc¥hout the year in support of education and further training in the arts and craft as shown in the accounts. In addition, a further £1,657 (2024= £3.115) was spent by the Trust in promoting the Old Mayors Parlour, some of which ha5 been set aside to award prize5 to participating students through various education establishments. Financi21 review The Trustees are confident that the finances are strong and will be sufficient to allow for any reduction in rental income next year. The policy agreed by the Trustees is to preserve and maintain the buildings, to take steps whenever possible to maintain maximum occupancy of the buildings and if considered appropriate to make donations or grants to other charities and individuals in support of education and promotion in arts and crafts. The Trustees have reviewed the reserves of the Charity. The review concluded that the reserves were mainly the properties owned by the Trust in Church Street which should continue to produce a steady income, althou￿} suitable allowance is to be made to reflect possible reduction in rental income where properties have become vacant pending re- lettin(y The Trustees consider sufficient funds will be available to conttnue support of local charitie5 and education in arts and crafts as permitted in the Trust's 'Declaration of Trust,. THE CHURCH STREET CHARITABLE TRUST TRUSTEES, ANNUAL REPORT CONTINUED FOR THE YEAR ENDED 31 MARCH 2025 Plans for Future Periods The plan is to effectively discharge the Charity's objectives of preserving and rnaintainino its buildincrs and to this end in 2016 the Trustees commissioned a building survey report on all their properties and consider that based on that Report and the cost of repairs and general expenses for the past five years, it is reasonable to assume an annual need to allow for a sum of £75,000. It is the intention of the Trust to commission further reports once every l O years to ensure the buildings are maintained to a high level, especially where the buildings are listed as being of historical and architectural importance. The current overall income gives a surplus of approximately £50,000 that might be available to use for other pennitted purposes in keeping with the Trust's objectives as pemiitted under the deed of the Charity. The success of an exhibition gallery in Church Street is considered important and the management agreement previously entered into by the Trustees is proving successful and is brinoing the gallery into greater use. whilst maintaining to provide facilities to enable local arts and craftsmen to promote and market their work, and its use in an educational role in providing facilities and sUPPOrt for local pupils and young artistslcrafts. In addition to also continue making grants and donations available in support of the Trust's objectives. The Trust has sufficient funds in hand to purchase additional properties in Church Street should any become available. The Trustees are mindful that small independent traders, along with many high street traders, are continutng to f￿d trading difficult and are therefore mindful that rental values remain weak and may do so for some time. Trustees, res onsibilities in relation to th¢ fJnaTrcial statements The Trustees are responsible for preparing the Trustees, Annual Report and the financial statements in accordance with applicable law and United Kingdom AccountKng Standards (United Kingdom Generally Accepted Accounting Practice). The law applicable to charities in England & Wales 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 f￿ancIal statements, the Trustees 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- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continu¢ in operdtion. 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 fmancial statements comply with the Charities Act 2011, the applicable Charity (Accounts and Reports) Regulation5 and the provisions of the Trust Deed. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of frdud and other I￿egular1t1es. Inde endent Examiner The Trustees intend to ask lan P Cooke FCA of Crowthers Accountants Limited to undertake the independent examination of the Trust for the following year. Signed on behalf of the Trustees on 29 May 2025 THE CHURCH STREET CHARITABLE TRUST REPORT OF THE INDEPENDENT EXAMINER TO THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025 I report on the accounts of the Trust for the year ended 31 March 2025, which are Set out on pages 5 to l O. Respective responsibilities of Trustees and examiner The Charity's Trustees are responsible for the preparation of the accounts. The Charity's Trustees consider that an audit is not required for this year under section 144{2) of the Charities Act 2011 (the 201 l Act) and that an independent examination is needed. It is my responsibility to: examine the accounts under section 145 of the 201 l Act. follow the procedures laid down in the general Directions given by the Charity Commission under section 145(5)(b) of the ?0 I l Act. and state whether particular matters have come to my attention. Basis of independent examiner's statement My examination was carried out in accordance with the general directions given by the Charity Commission. An examination includes a review of the accounting records kept by the Charity and a comparison of the accounts presented with those records. It also includes coiisideration of any unusual items or disclosures in the account5. and seekin(r explanations from the Trustees concerninu any such matters. The procedures undertaken do not provide all the evidence that would be required ID an audit, and consequently no opinion is given as to whether the accounts present a 'true and fair" view and the report is limited to those matters set out in the staternent below. Independent examiner's report In the course of my examination, no matter has come to my attention.. which gives me reasonable cause to believe that in, any material respect, the Trustees have not met the requirements to ensure that-. proper accounting records are kept (in accordance with section 130 of the 201 l Act). and accounts are prepared which agree with the accounting records and comply with the accounting requirements of the 2011 Act- or 2. to which. in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached. P Cooke FCA Crowthers Accountants Limited l O The Southend Ledbury Herefordshire HR8 2EY 29 May 2025 THE CHURCH STREET CHARITABLE TRUST STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2025 Unrestricted Funds Notes 2025 2024 INCOME AND ENDOWMENTS FROM: Investments 265,722 244,519 Totsl income and endowments 265,722 244,519 EXPENDITURE ON: Expenditure on raising funds Expenditure on charitable activities (90,283) (48,035) (112,163) (50,342) Total expenditure 138,318 Net income 127,404 82,014 (Loss)Igain on revaluation of investment assets NET MOVEMENT IN FUNDS 127,404 82,014 Reconeiliation of funds: Total funds brought forward 2.977,029 2,895,015 Total funds carried forward 3,104,433 2,977,029 All income and expendithre derive from continuing activities. The statement of fmancial activities includes all gains and losses recognised during the year. THE CHURCH STREET CHARITABLE TRUST BALANCE SHEET AS AT 31 MARCH 2025 Notes 2025 2024 FIXED ASSETS Investments 2,552,625 2,552,625 CURRENT ASSETS Debtors Cash at bank in hand 70,?81 372,917 558,76J 558,763 443,198 Creditors.. amounts falling due within one year 18,794} Net current assets 551.808 424.404 NET ASSETS 3,104,43) 2,977,029 TOTAL CHARITY FUNDS- Unrestricted funds 3,104,433 2,977,029 The financial statements on pages 5 to 10 were approved by the Trustees on 29 May 2025 and si(Fned on behalf by.. OR Trust THE CHURCH STREET CHARITABLE TRUST NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2025 ACCOUNTING POLICIES (a) BASIS OF PREPARATION AND ASSESSMENT OF GOING CONCERN The accounts (fmancial statements) have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts. The financial statements have been prepared in accordance with the second edition of the Charities Statement of Recommended Practice issued in October 2019, the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 102) and with the Charities Act 2011. The functional currency of The Church Street Charitable Trust is considered to be pounds sterling {£) because that is the currency of the primary economic environment in which the Charity operates. The Trust constitutes a public benefit entity as defined by FRS 102. The Trustees consider that there are no material uncertainties about the Trust's ability to continue as a going concern. The most siunificant area of adjustment and key assumptions that affect Items in the accounts are to do with the valuation of investments. (b) INCOME RECOGNITION All income is recognised once the Charity has entitlement to the income. it is probable that the income will be received and the amount of income receivable can be measured reliably. Legacy gifts are recognised on a case by case basis following the grdnting of probate when the administrdtor/executor for the estate has communicated in writing both the amount and settlement date. In the event the (Fift is in the forn) of an asset other than cash or a financial asset traded on a recognised stock exchange, recognition is subject to the value of the gift being reliably measurable with a degree of reasonable accuracy and the title to the asset havints been transferred to the Charity. Interest on funds held on dep051t is included when receivable and the amount can be measured reliably by the Charity. this is nomially upon notification of the interest paid or payable by the bank. (c) EXPENDITURE RECOGNITION Liabilities are recognised as expenditure as soon a5 there is a legal or constructive obligation cornmitting the Charity to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably. All expendiwre is accounted for on an accruals basis. All expense5 including support costs and governance costs are allocated or apportioned to the applicable expenditure headings. For more inforniation on this attribution please refer to note (e) below. (d) IRRECOVERABLE VAT Irrecoverable VAT is charged against the expenditure heading for which it was incurred. (e) ALLOCATION OF SUPPORT AND GOVERNANCE COSTS Support C05t5 have been allocated between governance costs and other support costs. Governance costs comprise all costs involving the public accountability of the Charity and its compliance with regulation and good practice. These costs include costs related to the statutory independent examination and legal fees together with an apportionment of overhead and support costs. THE CHURCH STREET CHARITABLE TRUST NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2025 (O CHARITABLE ACTIVITIES Costs of charitable activities include grants made, governance costs and an apportionment of support costs as shown in note 5. (g) FIXED ASSET INVESTMENTS Investments are a forni of basic financial instrument. Fixed asset investments are iniiially recognised at their transaction value and are subsequently measured at their fair value (market value) as at the balance sheet date. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year. Quoted stocks and shares are included in the balance Sheet at their current market value quoted by the investment analyst, excluding dividend. Other investments are included at the Trustee's best estimate of market value. The Trust does not acquire put options. derivatives or other cornplex financial instrumen¢s. The main fom of financial risk faced by the Charity is that of volatility in equity markets and investment markets due lo wider econoinic conditions, the attitude of investors to investment risk, and chan(Fes in sentiment concerning equities within particular sectors or sub sectors. (h) REALISED GAINS AND LOSSES All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and Ios5e5 on investments are calculated as the difference between sale5 proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised oains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and Ios5e5 are combined in the Statement of Financial Activities. RELATED PARTY TRANSACTIONS AND TRUSTEES, EXPENSES AND REMUNERATION The Trustees all uive freely their time and expertise without any fonn of remuneration or other benefit in cash or kind (2024- £nil). Expens¢s paid to the Trust¢¢s in the year totalled £Nil {2024= £Nil). 3. INCOME FROM INVESTMENTS 2025 2024 Rental incorne Interest receivable Loss on sale of investments 254.980 10.742 237.132 7,994 607 265.722 THE CHURCH STREET CHARITABLE TRUST NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2025 CONTINUED 4. EXPENDITURE ON RAISING FUNDS 2025 2024 Expenses and repairs to rental properties Agent's fees 55.729 34.554 78,964 90,283 112,163 S. EXPENDITURE ON CHARITABLE ACTIVITIES Governance costs.. Independent examiners fees Accountancy services Legal and professional fees Bank charges 3,300 1,080 17,638 60 3,000 834 1.320 60 Donations: Hereford Cider Museum CIO Donations to individuals and Hereford College of Arts Hereford Make CIC The Coutyard Alloy Workshop Gallery - Old Mayor's Parlour running costs 10,000 7,400 2,250 12,000 2.300 22,000 3,115 48,035 50,342 6. FIXED ASSET INVESTMENTS Market Value Freehold Investment Pro Total As at l April 2024 Additions Disposals Revaluations 2.552.625 2,552,625 As at 31 March 2025 2.552.625 2.552.625 The freehold propety was donated to the Trust and was valued at 30 September 2000 by Carter Jonas, Chartered Sutveyors, on an open market value basi5, subject to the existing tenancies. The Trustees are of the opinion that the fair value is now not significantly different to that detailed above (valuation as at 31 March 2016 from Sunderlands & Thompsons LLP). THE CHURCH STREET CHARITABLE TRUST NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2025 CONTINUED 7. DEBTORS 20?5 20?4 Rents receivable from agents 70,281 8. CREDITORS: Amounts falling due within one year Accruals and deferred income 6,955 18,794 10