2021-03-31-accounts

Charitable Incorporated Organisation registered number: 1151999

THE BROOKHOUSE HILL TRUST

Report and Financial Statements

Year ended 31 March 2021

THE BROOKHOUSE HILL TRUST

REPORT AND FINANCIAL STATEMENTS 2021
CONTENTS	Page
Trustees' report	1
Statement of financial activities	4
Balance sheet	5
Statement of financial activities	6
Notes to the accounts	7
Independent Examiner's report	11

THE BROOKHOUSE HILL TRUST

REPORT AND FINANCIAL STATEMENTS 2021

TRUSTEES’ REPORT

The Trustees present their annual report and the financial statements for the year ended 31 March 2021, with the comparative year ended 31 March 2020. The report and financial statements comply with the requirements of the Trust’s governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

LEGAL AND ADMINISTRATIVE DETAILS

Trustees

Mrs Rachel Field Mr Paul Houghton Rev'd Paul Williams

Registered Office

Chantrey House 67 Brookhouse Hill Fulwood Sheffield S10 3TB

Bankers

Handelsbanken CAF Bank Ruskin Buildings 25 Kings Hill Avenue Tudor Square Kings Hill Sheffield West Malling, Kent S1 2LA ME19 4JQ

Independent Examiner

Eric Paul German ACA 546 Fulwood Road Sheffield S10 3QD

STRUCTURE, GOVERNANCE AND MANAGEMENT

The Trust was registered as a Charitable Incorporated Organisation (registration number 1151999) with the Charity Commission on 13 May 2013. The Trust is required to have a minimum of three Trustees. Three Trustees served through the year.

The Trustees are non-executive. They meet as necessary to review all aspects of the Trust’s activities, including its finances, and to make planning decisions for its ongoing work.

Management of risk

The Trustees have considered the major risks to which the Trust is exposed, and are satisfied that systems are in place to mitigate the Trust's exposure to the major risks.

The Trust’s activities have been and will continue to include the provision of property in the support of the Trust's objects, part funded by commercial debt. The most significant risks to the Trust will therefore be the Trust being unable to meet its financial obligations in relation to debt interest payments and major unplanned capital expenditure. These risks will be managed by the Trust only investing in property for which there is a strong resale market, appropriately limiting any loan-to-value ratios, and adequately insuring the Trust's property.

More broadly, the Trustees' system of financial risk management involves maintaining the Trust's reserves at a level appropriate for its future plans.

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THE BROOKHOUSE HILL TRUST

TRUSTEES' REPORT (continued)

OBJECTIVES AND ACTIVITIES

The Trust’s objects are:

• to advance the Christian religion for the benefit of the public; and

• to advance Christian education and learning for the benefit of the public.

In fulfilment of the Trust's objects and in close adherence to evangelical Christian doctrine as set out in the Trust's Doctrinal Basis, the Trustees plan and deliver the Trust's activities. The activities of the Trust, as defined at the Trust's formation and during the year ended 31 March 2021, were to raise funds from private individuals and charitable trusts for:

• (i) the purchase of capital assets to be used in the support of the objects - specifically, for example, making available housing to Christian ministers engaged in the proclamation of the Christian faith; and

• (ii) the financial support of Christian ministry through local churches and other charitable organisations.

These activities may be altered from time to time by a resolution agreed in writing by all Trustees, or a resolution passed by 75% of Trustees at a general meeting. The Trustees are fully aware of the requirements for the Trust, as a registered Charitable Incorporated Organisation, to be acting in the public benefit, and the Trustees are of the view that all the Trust's past, present and future planned activities are in the public benefit as defined by the Charity Commission.

ACHIEVEMENTS AND PERFORMANCE

During the year ended 31 March 2021, the Trust has continued to pursue its objects primarily through the rental of two residential properties, 7 Whitfield Road Sheffield S10 4GJ and 50 Brooklands Crescent Sheffield S10 4GG, to the Parochial Church Council of Christ Church Fulwood Sheffield to provide accommodation for some of that church’s ministers. These houses are held for the long term, financed primarily by a mortgage from CAF Bank, with the additional support of an unsecured loan of £80,000 from a private individual.

FINANCIAL REVIEW

The Trust’s Statement of Financial Activities is set out on page 4 and shows a net increase in funds of £17,262 in the year ended 31 March 2021 (2020: Increase of £16,626). Total funds at the end of the year were £364,921 (2020: £347,659).

Investments and reserves

Under the Trust deed, the Trustees have the power to invest funds that are not immediately required for the working purposes of the Trust as they think fit. For the immediate future it is envisaged that cash resources will be limited to those sufficient to be the working capital for day-to-day management of the Trust’s activities as defined above, however, over the next few years the Trustees will be seeking to build up capital reserves with a view to funding the bullet repayments due on the property loan.

In light of this, for the current time the Trustees have continued with the same reserves policy as the prior year, to ensure the Trust is able to meet all its commitments and obligations as they fall due. This policy sets a cash reserves threshold of the greater of half the prior year's total resources expended and £5,000, rounded up to the nearest thousand pounds. At 31 March 2021 this threshold was £8,000 (2020: £8,000), and cash reserves exceeded this by £5,992 (2020: £2,855). The Trustees will continue to monitor levels of cash and reserves over the next year, including giving consideration to whether the reserves policy is appropriate.

FUTURE PLANS

The Trustees intend that the Trust should continue with similar activities in the coming year and beyond.

TRUSTEES’ RESPONSIBILITIES STATEMENT

The Trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and regulations.

The Charities Act 2011 requires the Trustees to prepare financial statements for each financial year. The Trustees have to prepare the financial statements in accordance with the United Kingdom Generally

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THE BROOKHOUSE HILL TRUST TRUSTEES. REPORT (continued) Accepted Accounting Practice (United Kingdom Accounting Standards and applicable lawl, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic or Ireland. The Trustees musl not approve the financial statements unless they are satisfied that they give a true and fair view of the stale 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 lo.. select suitable accounting policies and then apply them consislentiy., observe the methods and principles in the Charities SORP IFRS 1021., make judgements and accounting eslimales that are reasonable and prudent-, slate whether applicable UK Accounting Standards have been followed, subject lo any material departures disclosed and explained in the financial slalemenls., prepare the financial 51alemenls on the going concern basis unless il is inappropriate lo presume that the charity will continue in operation. The Trustees are responsible for keeping adequate records that are sufficient lo show and explain the charity's transactions and disclose with reasonable accuracy al any lime the financial position of the charity and enable them lo ensure that the financial slalements comply with the Charities Act 2011, the Charity (Accounts and Reports} Regulations 2008 and the provisions of the Trust deed. They are responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. This report was approved by the Trustees on 13 April 2021 and signed on their behalf by. Paul Houghton Trustee

THE BROOKHOUSE HILL TRUST

STATEMENT OF FINANCIAL ACTIVITIES Year ended 31 March 2021

Note INCOME AND EXPENDITURE Incoming resources 1 Incoming resources from generated funds: −Donations on which tax reclaimable −Tax reclaimable on donations received net of tax −Other donations received in cash −Other donations received in kind −Rental income on property provided in support of charitable activities −Bank interest received Total incoming resources Resources expended 1 Charitable activities expenses: −Expenses relating to property provided in support of charitable activities Total charitable activities expenses Other operating and administration expenses −Legal and professional fees −Governance costs Total operating and administration expenses Total resources expended NET INCOMING RESOURCES FOR THE YEAR AND NET MOVEMENT IN FUNDS Total funds brought forward at the start of the year Total funds brought forward at the start of the year Total funds carried forward at the end of the year	Year ended 31 March 2021 £ - - - - 31,800 - 31,800 14,538 14,538 - - - 14,538 17,262 347,659 364,921	Year ended 31 March 2020 £ - - - - 31,800 - 31,800 15,174 15,174 - - - 15,174 16,626 331,033 347,659

Total recognised gains and losses

There were no recognised gains and losses, except as shown above.

Continuing operations

All amounts shown above relate to continuing activities.

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THE BROOKHOUSE HILL TRUST BALANCE SHEET 31 March 2021 Note 31 March 2021 31 March 2020 FIXED ASs￿s Land and buildings - long leasehold 797,700 797.700 797,700 797.700 CURRENT ASSETS Cash at bank 13,992 10,855 13.992 10,855 CREDITORS- amounts falling due within one year 113,9501 113,9231 NET CURRENT ASSETSIILIABILITIESI 42 {3.0681 TOTAL ASSETS LESS CURRENT LIABILITIES 797,742 794,632 CREDITORS: amounts falling due after more than one year 1432,8211 1446,9731 NET ASSETS 364,921 347,659 FUNDS General Fund lunreslricledl 364,921 347,659 These financial slalements were approved by the Trustees on 13 April 2021. Signed on behalf of the Trustees Paul Houghton Trustee

THE BROOKHOUSE HILL TRUST

STATEMENT OF CASH FLOWS

(including reconciliation of net movement in funds to net cash flow from operating activities) Year ended 31 March 2021

Cash flows from operating activities Net movement in funds for the year Decrease in accruals Net cash inflow from operating activities Cash flows from financing activities Mortgage capital repaid Net cash used in financing activities Increase in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year Total funds brought forward at the start of the year Cash and cash equivalents at the end of the year	Year ended 31 March 2021 £ 17,262 - 17,262 (14,125) (14,125) 3,137 10,855 13,992	Year ended 31 March 2020 £ 16,626 - 16,626 (12,617) (12,617) 4,009 6,846 10,855

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THE BROOKHOUSE HILL TRUST

REPORT AND FINANCIAL STATEMENTS 2021

NOTES TO THE ACCOUNTS

1. ACCOUNTING POLICIES

Basis of preparation

These financial statements have been prepared in accordance with ‘ 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 2015) ’ (the ‘SORP’), The Financial Reporting Standard applicable in the UK and Republic of Ireland (‘FRS 102’) and the Charities Act 2011. They have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes to these accounts. Where appropriate, the headings laid down in the SORP have been adapted to meet the particular circumstances of the Trust.

The Trust meets the definition of a public benefit entity as defined by FRS 102. Assets and liabilities are initially recognised as historical cost or transaction value unless otherwise stated in the relevant accounting policy.

Going concern

The Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future, which they consider to be period of 12 months from the date of signing of these financial statements. For this reason they continue to adopt the going concern basis in preparing the financial statements.

Fund accounting

The General Fund is an unrestricted fund which is available for use at the discretion of the Trustees in furtherance of the general objectives of the Trust, and which has not been designated for other purposes.

Incoming resources

Income primarily represents the receipt of rent on residential properties provided for the use of Christian ministers in accordance with the Trust's activities, and gift income.

Income is recognised once the Trust has entitlement to the income, it is probable that the income will be received, and the amount of income receivable can be measured reliably.

Gift income is credited to incoming resources upon receipt. In accordance with the accruals basis of accounts preparation, tax recoverable on gifts is credited to incoming resources upon receipt of the gift, recoverable amounts being held within debtors until received from Her Majesty’s Revenue & Customs.

Resources expended

Expenditure on charitable activities primarily comprises the expenses relating to property provided in support of the Trust's charitable activities, including mortgage interest, repairs, maintenance and insurance. Other operating and administration expenses are those incurred in the running of the Trust, including legal and governance expenses.

Expenditure is recognised once the Trust has a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the obligation can be measured reliably.

Expenditure is included in the statement of financial activities on the accruals basis and includes irrecoverable VAT.

Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Trust. This is normally upon notification of the interest paid or payable by the bank.

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THE BROOKHOUSE HILL TRUST

REPORT AND FINANCIAL STATEMENTS 2021

NOTES TO THE ACCOUNTS

Tangible fixed assets and depreciation

The Trust holds residential property to be used in the support of its objects, in particular to provide housing for Christian ministers, and any rent paid for these properties is agreed on a case by case and not an arm's length basis. Consequently these properties fail the definition of investment properties, instead being held at historical cost less provision for depreciation within either the long leasehold or freehold categories of land and buildings within fixed assets.

Expenditure which enhances the usefulness of a property and increases the property value by at least the amount of the expenditure is capitalised within tangible fixed asset additions.

The Trust's policy is that depreciation would be provided at the following rates in order to write costs of tangible fixed assets down to their expected residual values over their expected useful lives:

Land and buildings - long leasehold

2% on cost, or evenly over the lease term if less than 50 years

However, in the view of the Trustees and based on local market information, the residual value of each property in the current property portfolio is greater than its historical cost carrying value. Consequently no depreciation is currently being charged on the residential property portfolio.

Cash at bank

Cash at bank includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

Liabilities and provisions

Liabilities are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the Trust anticipates it will pay to settle the obligation.

2. EMPLOYEES

The Trust had no employees during the current and prior financial years.

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THE BROOKHOUSE HILL TRUST

REPORT AND FINANCIAL STATEMENTS 2021

NOTES TO THE ACCOUNTS

3. TANGIBLE FIXED ASSETS

Land & buildings - long leasehold Cost Accumulated depreciation Net book value	31 March 2021 £ 797,700 - 797,700	31 March 2020 £ 797,700 - 797,700

On 31 December 2013, the Trust received a gift of the residential property, 50 Brooklands Crescent Sheffield S10 4GG, subsequently valued by Mark Jenkinson & Son surveyors at a value of £260,000, which was used as the base cost. This property is on a long lease which runs until 2724. During the year ended 31 March 2018, £105,700 was spent on an extension to 50 Brooklands Crescent, significantly modernising and enhancing the property’s usefulness. The Trustees are of the view that the open market value of the property exceeds its total carrying value (£365,700).

On 4 February 2015 the Trust purchased the residential property 7 Whitfield Road Sheffield S10 4GJ at an open market value of £432,000. This property is on a long lease which runs until 2738. The Trustees are of the view that the open market value of the property exceeds its carrying value.

4. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Bank loans (see note 5) Accruals	31 March 2021 £ 13,950 - 13,950	31 March 2020 £ 13,923 - 13,923

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THE BROOKHOUSE HILL TRUST

REPORT AND FINANCIAL STATEMENTS 2021

NOTES TO THE ACCOUNTS

5. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Loans from private individuals Bank loans	31 March 2021 £ 80,000 352,821 432,821	31 March 2020 £ 80,000 366,973 446,973

The Trust took out a mortgage with CAF Bank for £442,000 in two tranches: £50,000 drawn down on 27 January 2015 and £392,000 drawn down on 4 February 2015. Interest is charged at a variable annual rate of 3.0% above the Bank of England Base Rate. The loan is secured against the Trust's two residential properties. The loan period is 15 years, expiring in January 2030, but the loan repayments are calculated on the basis of amortisation over a 25 year term. Consequently the capital outstanding in 2030 will either be repaid at that point or new terms negotiated. The capital outstanding at the year end of £366,771 (2020: £380,896) is shown split between creditors falling due within one year (note 4) and creditors falling due after more than one year (above).

The Trust signed an agreement with a third party private benefactor on 15 March 2017 to borrow £80,000 to assist in funding the capital works to be carried out on 50 Brooklands Crescent. The loan is unsecured and carries no interest. The loan is due to be repaid in three elements: £23,500 on 11 September 2022, £26,500 on 11 September 2027 and £30,000 on 11 September 2032.

6. RELATED PARTY TRANSACTIONS

Throughout the year the Trust received monthly rental income for 7 Whitfield Road Sheffield S10 7GJ and 50 Brooklands Crescent Sheffield S10 4GG. The rent for 7 Whitfield Road amounted to a total of £16,200 during the year and the rent for 50 Brooklands Crescent amounted to a total of £15,600. The tenant for both properties was Parochial Church Council of Christ Church Fulwood Sheffield (“Fulwood PCC”), both properties being provided for the use of Christian ministers employed by Fulwood PCC and both rental amounts considered to be at discount to market rent. Mr Paul Houghton and Rev'd Paul Williams (both Trustees during the year), were members of Fulwood PCC during the year.

During the year the Trust reviewed the provider of its insurance services. It made use of Kingdom Bank Insurance Brokers for advice and took out its insurance with Ansvar using Kingdom Bank as brokers. Paul Houghton, a trustee, is a director of Kingdom Bank Limited. The decision to use Kingdom Bank was taken by an independent trustee.

The Trust reimburses the Trustees for any expenditure incurred on its behalf. However, no payments were made to Trustees in the year.

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THE BROOKHOUSE HILL TRUST INDEPENDENT EXAMINER'S REPORT for the year ended 31 March 2021 Independent Examlnetrs Report to the Trustees of the Brookhouse Hlll Trust (Charltable Incorporated Organlsation rogistrat¥on number 11519991 I reF)Ort on the financial stalements of The Brookhouse Hill Tnjst (the 'Charity'l for the year ended 31 March 2021 (with comparative year ended 31 March 20201 set out on pages 4 to 10 above. This report is made solely to the Charity's tnjstees, as a body, in accordance with the regulations made under section 154 of the Charities Act 2011. My work has been undertaken so that I might stste lo the Charity's tnjstees those matters l am required lo slate to them in an independent examiner's report and for no other purpose. To the fullest extent permstted by law, I do not a￿pt or assume responsibilty to anyone other than the Charity and its trustees, as a body, for my work. for this report or for the opinions have formed. Respectlve responslbllltles of trustees and examlner The Charity's trustees are responsible for the preparation of the financial statements. The Charity's Iruslees Consider that an audFt is not required for this year under section 144{2} of the Charities Act 2011 {Ihe Charities Act) and that an independent examination is needed. 11 is my responsibility to.. examine the financial statements under section 145 of the Charities Act 2011., follow the procedures laid down in the General Directions given by the Chartiy Commission (under section 145151{b} of the Chartties Act 2011- and state whether particular matters have come lo my attention. Basls of Independent Examlner's ststement My examination was carried out in accordance with General Directions given by the Charty Commission. An examination includes a comparison of the financial statements with the accounting records kept by the Charity. It also includes consideration of any unusual items or disclosures in the financial statements. and seeking explanations from you as Iruslees 1X)n￿mIng any such matters. The procedures undertaken do not provide all the evidence Ihal would be required in an audit, and consequently no opinion is given as to whether the accounts present a 'true and fair. view and the report is limited lo those matters set out in the statement below. Independent Examlnerfs statement In connection with my examination. no matter has come to my attention {*} which gives me reasonable cause lo believe that in. any material respect, the requirements= lo keep accounting records in accordance with section 130 of the Charities Act 2011; and to prepare financial statements which accord with the accounting records and comply with the accounting requirements of the Charities Act 2011 have not been met- or {ii) lo which. in my opinion, attention should be drawn in order to enable a proper understanding of Ihe accounts to be reached. rnian ACA 546 Futwood Road Sheffield S10 3QD 13 April 2021