## **The Hawkes Will Trust**
**Report and Financial Statements**
**Year ended 31 December 2020**
## **Registered charity number 1144972**
St Nicholas Church, Stevenage
St Nicholas Church, Stevenage
The Hawkes Will Trust
## **Report of the Trustees**
## **For the Year Ended 31 December 2020**
The trustees present their report and unaudited financial statements for the year ended 31 December 2020.
The accounts (financial statements) have been prepared in accordance with the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Charities Act 2011 and UK Generally Accepted Practice.
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St Nicholas Church, Stevenage
The Hawkes Will Trust
## **Report of the Trustees For the Year Ended 31 December 2020**
## **Reference and administrative information**
Charity Name Charity Number Principal Address
The Hawkes Will Trust (also known as The Hawkes Bequest) 1144972 St Nicholas Church Rectory Lane Stevenage Hertfordshire SG1 4DA
## **Charity Trustees**
Reverend Dave Brown Stephen Bamford Karen Walker Mike Wilton
Served as a trustee throughout the year Served as a trustee to 20[th] September 2020 Served as a trustee throughout the year Served as a trustee from 20[th] September 2020
## **Financial Trust Officer**
Sandra Taylor
## **Custodian Trustees**
The St Albans Diocesan Board of Finance Holywell Lodge 41 Holywell Hill St Albans Hertfordshire AL1 1HE
## **Independent Examiner**
Colin Wilkinson Barker Wilkinson Ltd 108 High Street Stevenage Hertfordshire SG1 3DW
## **Bankers**
Barclays Bank plc Unit 3 The Forum Centre The Forum Stevenage Hertfordshire SG1 1ES
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St Nicholas Church, Stevenage
The Hawkes Will Trust
## **Report of the Trustees For the Year Ended 31 December 2020**
## **Structure, governance and management**
The Hawkes Will Trust is constituted as a charitable trust and registered with the Charity Commission under charity number 1144972. It is commonly referred to as The Hawkes Bequest. The Trust was established on 12 September 2008 following the death of the late Robert Hawkes who left his entire estate to be used for the maintenance and upkeep of the building of St Nicholas Church, Stevenage. The Trust is governed by the terms of his will.
The will stipulates that the vicar in residence and churchwardens are to be appointed as trustees. Although no specific training is given new trustees are encouraged to familiarise themselves with the conditions of the will (the governing document) and published guidance from the Charity Commission. Advice is also available from the custodian trustees, The St Albans Diocesan Board of Finance.
The trustees are responsible for the general control and management of the charitable trust and aim to meet twice a year with further meetings as necessary. The trustees receive no remuneration for their service.
The Parochial Church Council (PCC) is responsible for the maintenance of the fabric of the building. Funding requests from the PCC are approved only if all trustees are satisfied that the nature of the work is allowed within the terms of the will. Since June 2018, once expenditure has been approved, the bills are paid by the PCC and a grant to cover the expenditure is transferred from the Trust to the PCC and recorded in its books of account.
## **Risk management**
The trustees have considered the major risks to which the charitable trust is exposed and these are kept under constant review.
The church has experienced instances of graffiti, arson, vandalism and metal theft in the past and security of the premises is an ever-present concern. Although the church is fully insured with Ecclesiastical Insurance the cover available for metal theft is strictly limited due to the high incidence of such thefts in recent years. The Trust continues to fund the maintenance of the CCTV system together with the security lighting to vulnerable areas but the churchwardens recognise there will always be a serious risk of metal theft from the building which is not covered by the insurance. They continue to monitor security and keep all potential improvements under consideration.
As part of security measures all lead is indelibly marked with ‘smart water’ and a 'lead watch' scheme has been established with neighbours, local police and members of the congregation to keep a watchful eye on the church. This was reviewed by the local Crime Prevention Officer at the end of 2019.
## **Investment Policy and performance**
Since its inception the Trust has derived most of its income from bank deposits and rental income from a freehold property which was sold in 2014. Historically the investment strategy was dictated by the need to maintain sufficient cash reserves to fund the extensive backlog of maintenance work required at the church. That work being largely complete, the trustees actively reviewed their investment strategy to meet their likely long- term commitments. With the approval of the custodian trustees the Hawkes trustees invested their cash reserves in a range of maturities to provide income and capital growth over the long term.
In March 2015 £200,000 was invested with CCLA in the Church of England Investment Fund Income Shares which provides a quarterly income. In September 2015 £400,000 was invested in a portfolio with Trinity Wealth Management, divided into three funds designed to meet the liquidity requirements of the Trust over 5 - 10 years and more than 10 years with income being reinvested in the portfolio. Sufficient cash reserves were retained to fund projected maintenance expenditure over the next five years.
As part of an overall financial review the trustees put aside the sum of £25,000 on deposit against the possibility of a serious metal theft from the church.
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St Nicholas Church, Stevenage
The Hawkes Will Trust
## **Report of the Trustees For the Year Ended 31 December 2020**
## **Investment Policy and performance (Cont’d)**
Funds were withdrawn from both investments during 2019 to fund the major repair project and in 2020 the Trinity Wealth Management investment was closed with the remaining funds invested in the CCLA Church of England Investment Fund Income Shares **.**
## **Objectives and activities**
The primary objective of the Trust is to fund the repair of the church building for the benefit of all those that use it. Under the terms of the will, the trustees have the power to apply the capital of the Trust for this purpose as well as income. The trustees confirm that they have considered the provisions of Section 17(5) of the Charities Act 2011 and consider that the trusts aims and objectives are for the public benefit.
## **Review of achievements**
Responsibility for the maintenance of the church rests with the PCC on the advice of an architect appointed to undertake a quinquennial inspection. The PCC has concentrated on undertaking work identified in earlier quinquennial inspections.
The stone flooring in the church was badly decayed in many areas and in need of repair or renewal. As this would involve removing all the contents of the building for the duration of the work, the PCC appointed an architect to undertake a feasibility study of the opportunities for reordering and the report was received in February 2018. The work would disturb the services within the building (heating, lighting, power supplies and audio-visual facilities). The necessity of refurbishing/replacing these with up to current standard services would have the added benefit of reduced maintenance costs in the future. The PCC appointed specialist advisors to prepare proposals. A petition for a faculty for these works was deposited in November 2018 and one for the construction of a mezzanine floor in the parish room (outside of the scope of the Hawkes Trust) was deposited in December 2018. Both were granted in 2019.
The trustees agreed to contribute to the cost of these appointments to the extent that the work related to short- and long-term maintenance of the building. Expenditure on professional fees was incurred during 2018 in preparing the petition for a faculty and contractual preparations, and a contractor appointed in May 2019 with work commencing in June 2019. The Diocesan Advisory Committee asked that both elements of the work were undertaken concurrently by a single main contractor. Mindful of the need to plan for the longer- term care of the building, the Trustees agreed to fund a substantial majority of the items identified as maintenance of the building, with the PCC funding the development portion. Grants and donations from the wider community were sought by the PCC to cover the shortfall.
## **Plans for Future Periods**
The floor replacement and services renewal project was due to be completed in Spring 2020. Due to the Covid 19 pandemic, although practical completion was achieved in March 2020 there were still a number of items needing finalising resulting in the final account from the contractor not being received during 2020. A review is being undertaken by the Trustees of future funding of maintenance and repair of the church following a quinquennial inspection in November2020.
## **Financial review**
During the period under review the trust generated income of £5,074 (2019 £9,185) from investments, a rate of return of approximately 2.1% (2019 1.2%). The Trust’s main expenditure was on the floor and subsequent services repairs as outlined in the Review of Achievements above. The trust currently has free reserves of £262,955 (2019 £528,841) these are available for expenditure on the Trusts objectives and aims.
Approved by the trustees on 23[rd] April 2021 and signed on their behalf by:
**Rev Dave Brown**
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St Nicholas Church, Stevenage
The Hawkes Will Trust
## **Statement of financial activities**
**for the year ended 31 December 2020**
|**Note**
**Income and Endowments**
Income from investments
3
Other income
4
**_Total incoming resources_**
**Expenditure**
**_Expenditure on Charitable_**
**_Activities_**
Church buildings insurance
PCC Grants
5
Other costs
5
**_Total resources expended_**
**Net gains/(losses) on**
**investments**
6
**_Net Income/(Expenditure)_**
_Transfers between funds_
**_Net movement in funds_**
_Total funds brought forward_
**_Total funds carried forward_**
7|**Restricted**
**income**
**fund**
**£**
**Expendable**
**endowment**
**fund**
**£**
**Total**
**funds**
**2020**
**£**
**Total**
**funds**
**2019**
**£**
5,073
-
5,073
9,185
58,724
-
58,724
74,053|
|---|---|
||**63,797**
**-**
**63,797**
**83,238**|
||-
-
-
1,738
357,788
-
357,788
406,255
540
-
540
510
**358,328**
**-**
**358,328**
**408,503**
**-**
**28,645**
**28,645**
**74,777**|
||**(294,531)**
**28,645**
**(265,886)**
**(250,488)**
294,531
(294,531)
-
-|
||**-**
**(265,886)**
**(265,886)**
**(250,488)**
-
528,841
528,841
779,329|
||**-**
**262,955**
**262,955**
**528,841**|
The notes on pages 7 to 11 form part of these accounts.
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St Nicholas Church, Stevenage
The Hawkes Will Trust
## **Balance sheet**
## **at 31 December 2020**
|**Note**
**Fixed assets**
Investment assets
8
**_Total fixed assets_**
**Current assets**
Debtors and prepayments
Cash at bank
Cash held by custodian trustees
9
**_Total current assets_**
**Current liabilities**
Creditors: amounts falling due within one year
10
**_Net current assets_**
**_Total assets less current liabilities_**
**Funds of the Trust**
Expendable endowment
7
**_Total Trust funds_**|**2020**
**£**
207,382
**207,382**
-
47,214
8,779
**55,993**
(420)
**55,573**
**262,955**
262,955
**262,955**|**2019**
**£**
238,737|
|---|---|---|
|||**238,737**|
|||-
293,712
3,953|
|||**297,665**|
|||(7,561)|
|||**290,104**|
||||
|||**528,841**|
|||528,841|
|||**528,841**|
The notes on pages 7 to 11 form part of these accounts.
The financial statements were approved by the trustees on 23[rd] April 2021 and were signed on their behalf by:
## **Rev Dave Brown**
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St Nicholas Church, Stevenage
The Hawkes Will Trust
## **Notes to the financial statements**
**for the year ended 31 December 2020**
## **1. Accounting policies**
## **(a) Basis of preparation and assessment of going concern**
The financial statements have been prepared under the historic cost convention and in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011
The trustees are not aware of any material uncertainties about the charity’s ability to continue and therefore the Charity’s financial statements have been prepared on a going concern basis.
## **(b) Funds structure**
The Trust has a single expendable endowment which can only be used for the maintenance and repair of St Nicholas Church building. It is not a permanent endowment and the trustees may utilise the capital as well as the income for the designated purpose.
Income from the endowment is taken to a restricted income fund which is subject to the same restrictions as the endowment. Expenditure is taken initially from the restricted income fund and then from the expendable endowment.
## **(c) Income recognition**
All incoming resources are recognised once the charity has entitlement to the resources, there is sufficient certainty that it is probable that the resources will be received and the monetary value of income can be measured with sufficient reliability. Investment income is included when receivable.
## **(d) Expenditure recognition**
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably.
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category.
All expenditure is for the Charitable Activities of the Charity.
## **(e) Irrecoverable VAT and Income Tax**
Irrecoverable VAT is aggregated with and charged to the expenditure heading for which it was incurred. The Listed Places of Worship Grant Scheme makes grants towards the VAT incurred in making repairs to listed buildings mainly used for public worship. Any grants received under this scheme as well as recoverable income tax are included within the Statement of financial activities as part of ‘Other income’.
## **(f) Tangible fixed assets**
Assets acquired for the maintenance of the church building and surrounding area are capitalised at historic cost where that cost is more than £1,500. Depreciation is provided over the expected useful life of the asset. During the period under review no assets were acquired that cost more than £1,500.
## **(g) Investment Assets**
Investment assets are classified as a separate category within fixed assets. These are shown in the balance sheet at their transaction value and subsequently measured at market value. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year.
## **(h) Cash at Bank and in Hand**
Cash held in short term bank balances and readily convertible short-term cash deposits are accounted for as Cash at Bank and in Hand
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St Nicholas Church, Stevenage
The Hawkes Will Trust
## **Notes to the financial statements**
**for the year ended 31 December 2020**
## **1.Accounting policies (Continued)**
## **(i) Financial Instruments**
The charity only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at settlement value.
## **2. Related party transactions and trustees’ remuneration**
The trustees received no remuneration for acting in that capacity during the year and there were no trustee expenses.
The Trust made grants of £357,788 to the St Nicholas Church PCC. All of the Trustees are also trustees of the St Nicholas Church PCC.
## **3. Investment income**
|Investment Fund Income
Dividends – UK equities
Interest on cash deposits
**. Other income**
Listed Places of Worship Grant 2020
Listed Places of Worship Grant due to PCC from 2019|**2020**
**£**
4,826
-
247
**5,073**
**2020**
**£**
51,583
7,141
**58,724**|**2019**
**£**
6,372
1,309
1,504|
|---|---|---|
|||**9,185**|
|||**2019**
**£**
74,053
-|
|||**74,053**|
## **4. Other income**
## **5. Expenditure on charitable activities**
The following notes provide further analysis for expenditure on charitable activities:
|**(a) PCC Grants**
Floor repairs project - Architect Fees
Floor repairs project - Other Professional Fees
Floor repairs project - Contractor
Floor repairs project - Insurance
CCTV – maintenance & support
CCTV - Broadband Access
Septic tank emptying
Lightning conductor maintenance
Heating maintenance
Organ maintenance
General maintenance
Insurance
Architect Fees – Quinquennial Inspection|**2020**
**£**
9,466
18,112
324,031
127
594
351
250
143
-
-
-
3,514
1,200
**357,788**|**2019**
**£**
37,910
34,405
323,701
1,269
1,011
299
250
143
114
425
2,497
3,671
560|
|---|---|---|
|||**406,255**|
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St Nicholas Church, Stevenage
The Hawkes Will Trust
## **Notes to the financial statements**
**for the year ended 31 December 2020**
|**(b) Other costs**
Independent examiners fees
**6. Net gains/(losses) on investment**
Revaluation of income fund
Revaluation of investment fund
Revaluation of other investments (equities)
**7. Expendable endowment**
The movement on the expendable endowment during the year and
previous year was as follows:
Value of fund at beginning of the year
Income
Expenditure
Gains on investment assets
Fund value at the end of year
**8. Fixed asset investments**|**2020**
**£**
540
**540**
**2020**
**£**
43,015
(12,099)
(2,271)
**28,645**
**2020**
**£**
528,841
63,797
(358,328)
28,645
**262,955**|**2019**
**£**
510|
|---|---|---|
|||**510**|
|||**2019**
**£**
37,323
33,914
3,540|
|||**74,777**|
|||**2019**
**£**
779,329
83,238
(408,503)
74,777|
|||**528,841**|
||||
Movement in fixed asset investments:
|Market value at beginning of the year
Gain on revaluation of investment assets
Sale and transfer of investment assets to cash
Market value at the end of the year
nvestments at market value comprise:
Income fund
Investment fund
Other investments (equities)|**2020**
**£**
238,737
28,645
(60,000)
**207,382**
**2020**
**£**
205,198
-
2,184
**207,382**|**2019**
**£**
722,399
74,777
(558,439)|
|---|---|---|
|||**238,737**|
|||**2019**
**£**
63,276
171,006
4,455|
|||**238,737**|
Investments at market value comprise:
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St Nicholas Church, Stevenage
The Hawkes Will Trust
## **Notes to the financial statements**
## **for the year ended 31 December 2020**
## **9. Assets held by custodian trustees**
The St Albans Diocesan Board of Finance acts as custodian trustees for the Trust, holding the following assets:
|Income fund
Investment fund
Other investments (equities)
Bank deposit|**2020**
**£**
205,198
-
2,184
8,779
**216,161**|**2019**
**£**
63,276
171,006
4,455
3,953|
|---|---|---|
|||**242,690**|
## **10. Creditors: amounts falling due within one year**
The following amounts are due for payment in 2021:
|Other accruals
Monies due to St Nicholas PCC|**2020**
**£**
420
-
**420**|**2019**
**£**
420
7,141|
|---|---|---|
|||**7,561**|
## **11. Commitments**
At a meeting of the trustees held on 16[th] May 2019 the Trustees committed to support the St Nicholas PCC with the costs of repair and replacement of the floor in St Nicholas Church and various other repairs, replacements and improvements.
The total value of works approved by the Trustees was £637,870 and an extra £63,000 was approved on 7[th] February 2020. At the balance sheet date, the total grants paid to St Nicholas PCC for this project, net of VAT reclaimed, was £657,907, the balance of £42,963 is committed to be granted to the St Nicholas PCC in 2021.
## **12. Legal Status**
The Charity is a trust registered at the Charity Commission at St Nicholas Church, Rectory Lane, Stevenage, Herts, SG1 4DA. The charity is a public benefit entity.
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St Nicholas Church, Stevenage
The Hawkes Will Trust
## **Notes to the financial statements**
**for the year ended 31 December 2020**
## **13. Comparatives for Statement of Financial Activities**
|**Note**
**Income and Endowments**
Income from investments
Other income
**_Total incoming resources_**
**Expenditure**
**_Expenditure on Charitable Activities_**
Church buildings insurance
PCC Grants
Other costs
**_Total resources expended_**
**Net gains/(losses) on investments**
**_Net Income/(Expenditure)_**
_Transfers between funds_
**_Net movement in funds_**
_Total funds brought forward_
**_Total funds carried forward_**|**Restricted**
**income fund**
**£**
**Expendable**
**endowment**
**fund**
**£**
**Total**
**funds**
**2019**
**£**
9,185
-
9,185
74,053
-
74,053|
|---|---|
||**83,238**
**-**
**83,238**|
||1,738
-
1,738
406,255
-
406,255
510
-
510
**408,503**
**-**
**408,503**
**-**
**74,777**
**74,777**|
||**(325,265)**
**74,777**
**(250,488)**
325,265
(325,265)
-|
||**-**
**(250,488)**
**(250,488)**
-
779,329
779,329|
||**-**
**528,841**
**528,841**|
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St Nicholas Church, Stevenage
The Hawkes Will Trust
## _**Independent examiner’s report**_
## **to the trustees of The Hawkes Will Trust**
I report to the trustees on my examination of the accounts of The Hawkes Will Trust, for the year ended 31 December 2020 which are set out on pages 5-11.
## **Responsibilities and basis of report**
As the charity trustees of The Hawkes Will Trust, you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of The Hawkes Will Trust’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
## **Independent examiner’s statement**
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
1. accounting records were not kept in respect of The Hawkes Will Trust as required by section 130 of the Act; or
2. the accounts do not accord with those records; or
3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view which is not a matter considered as part on an independent examination
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached
C Wilkinson FCCA Barker Wilkinson Ltd 108 High Street Stevenage Hertfordshire SG1 3DW
2021
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