Guy Harlings Estate 2023 Trustees' Report and Financial Statements For the year ended 31st December 2023 ## **GUY HARLINGS ESTATE** Registered Charity 1170653 ## **CONTENTS** |**CONTENTS**|| |---|---| ||Page| |Reference and Administrative Details of the Charity, its Trustees and Advisers|3| |Trustees' Report|4 - 5| |Independent Examiner's Report|6| |Statement of Financial Activities|7| |Balance Sheet|8| |Notes to the Financial Statements|9 - 13| 2 ## **ADMINISTRATIVE DETAILS OF THE CHARITY AND ITS TRUSTEES** ## **Registered Charity Number 1170653** ## **Trustees** The Very Revd J P Kennington - Chair The Bishop of Chelmsford B M Greatrex B Smith P Kemp The Venerable M Power L R Rudd ## **Principal Office** The Cathedral Office, 53 New Street, Chelmsford, Essex CM1 1TY ## **Secretary** A Siddell - Chief Operating Officer Chelmsford Cathedral - resigned February 2024 ## **Independent Examiner** Emma Daniels 3 ## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2023** The Trustees present their annual report together with the financial statements for the period 1 January 2023 to 31 December 2023. The trust was created by a Charity Commission scheme dated 8 September 1977 and amended by subsequent schemes dated 23 October 1981 and 16 July 2001. The Charity was restored to the Charity Commission register on 9 December 2016 with a registration number of 1170653. ## **Objectives and Activities** ## **a. Policies and objectives** The Managing Trustees may appropriate from time to time such part or parts of the land specified in the schedule to the Trust Deed as they think fit as the site for a Diocesan and Cathedral Centre for the training and care of the clergy and laity and such other charitable purposes of the Church of England, primarily but not exclusively in the said Diocese of Chelmsford, as the Managing Trustees with the consent of the Bishop of Chelmsford think fit. The Managing Trustees shall first defray out of the income of the Charity the cost of repairs and insurance and all other charges and outgoings payable in respect of the property of the Charity and all the proper costs, charges and expenses of and incidental to the administration and management of the Charity. The Managing Trustees shall out of the yearly income of the Charity: • Pay the stipends or salaries of any suffragan bishops or assistant bishops of the Diocese of Chelmsford whose stipends or salaries are no longer paid by the Church Commissioners; • Supplement the stipends or salaries of any such bishops or pay the reasonable expenses incurred by them to the extent that such stipends, salaries or expenses have not been paid by the Church Commissioners, provided that the income of the Charity shall not be applied in such a way as to relieve the funds of the Church Commissioners. In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit and in particular to its supplementary public benefit guidance. ## **b. Activities for achieving objectives** The organisation manages the endowment of the estate and uses its income to maintain the accommodation and activities of the Diocese and Cathedral. ## **Achievements and performance** ## **a. Review of activities** The Trust continued to maintain the trees and grounds of the estate which is registered as a Conservation Area. The grounds were once again hired to local educational facilities. Essential work was carried out to the trees following a tree survey. ## **b. Investment policy and performance** The Trustees regularly review the performance of the investments which are currently invested with CCLA Investment Management Ltd. The fall in investment value in 2022 put pressure on potential income but values recovered in 2023 and the Trustees are content that the current investment policy is still supported. 4 TRUSTEE5' REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 (Continued) Finandal revlew a. Go5nE conceTry Atie", maKIng approprlaie enquir(es, the trJstees have 3 reasonable expectatloii that the charlty hBs adequate resources to cc*nUnve in operatlonal existence for rhe foreseeable future. For this reason they CDndnue to 3dopt".*É 8clnE coirern b4555 in preparlng the financial statements. Furtheréetalls regardlft.g the adoption of tPte 8oln8 conrern basls cali be found In the Accounting Policies. Structure. goveman¢e and manalement a. Constltutlon The prlnclpal object of the c17arlty is to èpproprlate su¢h parts of the land and property as the site for a Dlocesan and Cathedral Centre for the training and ore of the £ler8y and laity and such other hèritable purposes of the Church of England. b. Method of appointment or Èlectlon of Trustee5 The management of the charity is the responslbllityof t4e Trustees who are elected and cTropted under the terms of the tharity co￿.MiSsIoN Scheme. c, Orlanlsatlortai tate whether appllcable aC¥ounti.n8 Standards ané statem.ents or reccmmended practice Èiave been followed, gJblec( to aèiy departuves disdJse6 and expla￿￿E￿ In the flna,i¢ial >tateme*u.' arid prepsre th* fipènGlal statements -th? goln8 conttrn basis Jp.IASS It':s ¢nappropr+ate tc pre.sume tr,at *he I'.haYitywil!-ontlnLie in operation. The Trustees 8re responslble. fo* keepir,

ensure ttiat the flr4anLidl ststemenf¢ comply with tli* f.'hari:ies ￿. 2011, the trÈ8rilrf lAr.coun°￿ nnd Rèpurt.sl rtegula*ioriS 2008 and the ttrcwlslons of the trust de@d. fhey a,-e a150 r&sponsitsle lor safeguarding the a55ets of the cnarfty and hence for taklhg ieasonable Sieps foi rlie Pi eventlon ail d det4ctloTh or fraufl and other irregularltlè5. This reportwas approved by the TilJStees en-. and sIKned Dn their behalf by.. P frJ(A 014 Report to the Trustee5 of Guy Harlln8s Estate On A¢¢ounts for the Year Ended 315t December 2023 Set out on pages.. 7t013 Responslblhties and Basls of Report I report to the trustees on my examination of the accounts of the above charity 1.the Trusv) for the year ended 3111212023 As the charitys trustees. you ère responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 20111.the Act"). I report in respect of rny examinatiL7n of the Trust's accounts carried out under section 145 of the 2011 Act and in carryin8 Out my examinatlon, I have followed all the applicaole Direc*ion5 given by the Charity Commission undei section 14515llbl of the Act. hidepe4dent Examlrers Statemeni l Fiitvp cGmpleteo mb v ex8iiiin3tioii. i cont.'rm tha, no material iiatt=r5 have corne to my atrentlLII", IP. connection with the examination whi¢lt gives me iause 10 believe tha'l in, any rnoièrial i-espect: the accounting iecords were not kept in actordance with section 130 of the Charities Act; or the accounts did not accord with the accountin8 record5.' or the ac£ount5 did not comply with the applicable requirements conce.'nin8 the form and contenl of accounts set out in the Charities (Accounts and R2porlsl Regulatlons 2008 other than any requirement that the accounts give a 'true and fairf vSew which 15 not a matter considered as part of an independent examination. I have no concerns and have come across no other matters In connertion with thè examination to which attention should be drawn in this report In order to enable a proper understanding ot the aceounts to be reached. ned.. Date: Name: Emma Danle15 Relevant Professlonal Quallfication: ACCA Addre55: Black Swan Cottage Long Lane Hullbrid8e SS5 6BA ## **Statement of Financial Activities** ## **Year Ended 31st December 2023** |**Income From:**
**Charitable Activities**
Facilities Hire
Total Income from Activities
**Investment Income**
Interest
Dividend Income
Total Income from Investments
**Total Income**
**Expenditure on:**
**Charitable Activities**
Garden maintenance
Tree surgeon
Building maintenance
Building insurance
Legal & professional fees
Administration
**Total Exp on Charitable Activities**
**Net Income/(Expenditure) before Investment Gains**
Net Gains/(Losses) on Investments
**Net Income/(Expenditure) before Transfers**
Transfers between funds
Transfer from unapplied total return
**Net Movement in Funds**
**Reconciliation of Funds:**
Total Funds Brought Forward
**Total Funds Carried Forward**|Unrestricted
Funds
Endowment
Funds
Total Funds Prior Year
£
£
£
£
13,400
13,400
6,000
-
-
13,400
-
13,400
6,000
162
162
78
19,420
19,420
19,473
162
19,420
19,582
19,551
13,562
19,420
32,982
25,551
6,793
6,793
22,233
13,224
13,224
5,100
-
-
1,767
1,767
6,505
-
-
-
-
-
-
21,784
-
21,784
33,838
**(8,222)**
**19,420**
**11,198**
**(8,287)**
114,593
114,593
(129,375)
**(8,222)**
**134,013**
**125,791**
**(137,662)**
(1,080)
1,080
-
-
29,548
(29,548)
-
-
**20,246**
**105,545**
**125,791**
**(137,662)**
18,041
1,082,442
1,100,483
1,238,145
**38,287**
**1,187,987**
**1,226,274**
**1,100,483**| |---|---| 7 Balance Sheet Year Ended 31st December 2023 Unrestricted Endowment Funds Funds Total Funds Prior Yelr Note Flxed assets Tangible Fixed AssyJtc Investments Total fixed assets 130 130 1,187,987 1.188,117 1,187.987 1.188,117 1,085,104 1,085,104 Current assets Debtors Cash at bank and ill hand Total current assets 18,544 18,544 21,052 39.596 6,718 10,102 16,820 Y9,596 Credltors: amounts falllng due wlthln one year 11,4391 11,439) 11.4411 Net Asset5 38,287 1,187,987 1,226.274 1.100.483 Charity Funds Endowment funds Unrestrirted funds Total funds 1,187,987 1,187,987 1,082.442 38,287 18,041 1,187,987 1,226,274 1,100.483 38.28-, The financial statements were approved by the Trustees on and signed on their behalf, by., ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023** ## **Note 1 ACCOUNTING POLICIES** ## **1.1 Basis of preparation of financial statements** The financial statements 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. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 and Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and Charities Act 2011. Guy Harlings Estate constitutes a public benefit entity as defined by FRS 102. ## **1.2 Fund accounting** General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes. Endowment funds are funds for which the capital must be retained either permanently or at the Trustees' discretion; the income derived from the endowment is to be used in accordance with the conditions attached to the endowment. ## **1.3 Income** 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. For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor's intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material. Donated services or facilities are recognised when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use of the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), the receipt of volunteer time is not recognised in the accounts but the nature of their contribution would be referred to in the Trustees' Report and notes if applicable. On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation. 9 **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023** (continued) ## **1.4 Expenditure** Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Governance costs are those incurred in connection with administration of the charity and compliance with constitutional and statutory requirements. Charitable activities and governance costs are costs incurred on the charity's educational operations, including support costs and costs relating to the governance of the charity apportioned to charitable activities. ## **1.5 Investments** Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance Sheet date, unless fair value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and shown in the heading ‘Gains/(losses) on investments’ in the Statement of Financial Activities. ## **1.6 Interest receivable** Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the Bank. ## **1.7 Debtors** Trade and other debtors are recognised at the settlement amount. Prepayments are valued at the amount prepaid. ## **1.8 Cash at Bank and in hand** Cash at bank and in hand 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. ## **1.9 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 charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation. 10 ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023** (continued) ## **Note 2 NET INCOMING RESOURCES/(RESOURCES EXPENDED)** This is stated after charging: |Fees for examination of the accounts|This year|Last year|| |---|---|---|---| ||£|£|| |Independent examiner’s fees|-|-|| |**Note 3 STAFF COSTS**|This year|Last year|| ||£|£|| |Amounts paid to Chelmsford Cathedral for secretarial work|-||-| |During the year, no Trustees received any remuneration, benefits-in-kind or reimbursement|||| |of expenses (2022 - £Nil)|||| ## **Note 4 TANGIBLE FIXED ASSETS** The Trustees are effectively caretakers for the land and buildings at 53 New Street, Chelmsford which are to be used for the purposes described in the Charity’s objectives. The value of this Asset is not recognised in the Balance Sheet as the covenants and agreements attaching to the land make its valuation impracticable to determine. ## **Note 5 FIXED ASSET INVESTMENTS** |**Market value**
At 1 January 2023
Additions
Sales
Revaluations
At 31 December 2023
**Investments held by fund**
General
Fund
Endowment
Fund
At 31st December 2023
£
£
Listed investments
130
1,187,987|This Year
Last Year
**£**
**£**
**1,085,104**
**1,219,249**
**1,080**
**1,080**
**(12,660)**
**(5,850)**
**114,593**
**(129,375)**
**1,188,117**
**1,085,104**
**Total Funds**
**Total Funds**
**1,188,117**
**1,085,104**| |---|---| Investments at market value comprise of units or shares purchased in common investment funds administered by CCLA Investment Management Limited in the UK. The Funds are actively managed, diversified portfolios of assets with an emphasis on equities but will also include property, bonds and other asset classes, which may be either liquid or illiquid in nature. Exposure to these assets may be via direct holdings or through investment funds, including those managed by the Manager. The Funds are managed in accordance with the policies of the Church of England’s Ethical Investment Advisory Group. 11 ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023** (continued) **----- Start of picture text -----**
Note 6 DEBTORS This year Last year
£ £
Debtor 10,000 -
Prepayments 8,544 6,718
18,544 6,718
Note 7 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR This year Last year
£ £
Accruals 1,439 1,441
**----- End of picture text -----**
## **Note 8 STATEMENT OF FUNDS** |Unrestricted Funds:
General Fund
Endowment Funds:|Brought
Gains/
Carried
Forward
Income
Expenditure
Transfers
(Losses)
Forward
18,041
13,562
(21,784)
28,468
**38,287**
1,082,442
19,420
-
(28,468)
114,593
**1,187,987**
1,100,483
32,982
(21,784)
-
114,593
**1,226,274**| |---|---| ## **Note 9 RELATED PARTY TRANSACTIONS** As described in the Trustees Report, the Charity makes available office space to both Chelmsford Cathedral (the Cathedral) and the Chelmsford Diocesan Board of Finance (CDBF). Day to day maintenance expenditure is the responsibility of the Cathedral and the CDBF. The Very Revd J P Kennington is a member of the Cathedral Chapter and a trustee of the CDBF. The Bishop of Chelmsford, The Venerable M Power and Mr B Smith are Trustees of the CDBF. Mr L Rudd is an employee of the CDBF. 12 ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023** (continued) ## **Note 10 TOTAL RETURN ACCOUNTING** From 1 January 2021 the trustees of Guy Harlings Estate adopted a total return approach to one of its investments in its Endowment Funds. This change treats fund growth as part of the overall income of the investment along with the dividends. The income stays within the fund in the 'Unapplied Total Return' (UTR) until it is transferred to the General Fund in accordance with agreed principles. The original investment value will be protected by allocating cpi indexation from the UTR. The balance of the UTR will remain with the investment until a share sale is required to release the income to the General Fund. The difference in practice is that the dividends are already being transferred to the General Fund and shares will be sold to top up this amount to match 'the amount allocated to income'. The initial base value for implementing total return was determined at 1 January 2021. This value being £538,948. The unapplied total return at the time was calculated to be £111,669. The principles were resolved for application in 2021. The annual percentage to transfer to the General Fund to supplement revenue was agreed at 3.8% for 2021 and 3.0% for future years, unless a particular project requires more funding. In 2023 it was agreed that an extra £10k of funding was required for a repair to the main building, which translated into an annual percentage of 4.56% of the total endowment. The indexation of the base values is calculated using the National CPI index. |**Investment name: GUYHA01**
**As at 1 January**
Base Value of the permanent endowment
Unapplied total return
**Movements in the year:**
Investment income: dividends & interest
Investment return: realised and unrealised gains
Management fees
Add indexation to original endowment
Unapplied total return allocated to income
Net movements in the year
**As at 31 December**
Base Value of the permanent endowment
Unapplied total return
Valuation as at 31 December|Trust for
investment
Unapplied
Total Return
Total endowment
627,785
627,785
20,201
20,201
627,785
20,201
647,986
19,420
19,420
60,767
60,767
0
0
24,677
(24,677)
0
(29,548)
(29,548)
0
24,677
25,962
50,639
652,462
652,462
46,163
46,163
652,462
46,163
698,625
2023| |---|---| 13