Guy Harlings Estate Trustees, Report and Financial Statements For the year ended 31st December 2024 GUY HARLINGS ESTATE Registered Charity 1170653
Guy Harlings Estate CONTENTS Page Reference and Administrative Details of the Charity, its Trustees and Advisers Trustees, Report Independent Examiner's Report Statement of Financial Activities Balance Sheet Notes to the Financial Statements 10-14
Guy Harlings Estate ADMINISTRATIVE DETAILS OF THE CHARITY AND ITS TRUSTEES Guy Harllngs Estate Reglstered Charlty Number 1170653 Trustees The Bishop of Chelmsford The Very Revd Dr J Martin (appointed 07.03.2025) B Smith The Venerable J Croucher (appointed 13.05.2025) Canon M Southworth lappointed 13.05.2025) J Horseman-sewell (appointed 20.05.2025) D Edgar (appointed 20.05.20251 The Very Revd J P Kennington (resigned 18.12.20241 B M Greatrex (resigned 20.05.2025) P Kemp (resigned 20.05.20251 The Venerable M Power (resigned 13.05.2025) L R Rudd (resigned 13.05.2025) Prlnclpal Office The Cathedral Office, 53 New Street. Chelmsford, Essex CMI ITY Secretary J Horseman Sewell - Chief Operating Officer Chelmsford Cathedral Independent Examlner Emma Danlels Banking Services Barclays Bank CCLA Investment Management Ltd
Guy Harlings Estate TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 The Trustees present their annual report together wTrth the financial statements for the period l January 2024 to 31 December 2024. Structure and Governance The unlncorporated assoclatlon 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 wa5 restored to the Charity Commission register on 9 December 2016 with a registratlon number of 1170653. The Chelrnsford Diocesan Board of Finance acts as custodian trustee forthe land, buildings and investments. Objectlves and Actlvltles a. Pollcles and objertlves 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 51te for a Diocesan and Cathedral Centre for the training and care of the clergy and laity and such other charltable purposes of the Church of England, prlmarily but not exclusively in the said Diocese of Chelmsford, as the Managing Trustees with the consent of the Blshop of Chelmsford. The Managlng Trustees shall first defray out of the income of the Charity the cost of repairs and insurance and all other charges and OLStgoings 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 asslstant bishops of the Diocese of Chelmsford whose stlpends or salaries are no longer paid by the Church Commlssloners. Supplement the Stipends or salaries of any such blshops or pay the reasonable expenses incurred bythem 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 fund5 of the Church Commissioners. In setting objectives and plannlng for actlvities, the Trustees have given due consideratlon to Eeneral guidance published by the Charlty Commlsslon relating to public benefit and in partlcular to its supplementary publlc beneflt guldance. b. Actlvltles for achlevlng objertlves The organisation manages the endowment of the estate and uses Its income to maintain the accommodation and activities of the Diocese and Cathedral. It does not pay stipends or expenses of any bishops as these are paid by the Church Commlssloners. Achlevements and performance a. Revlew of artlvltles The Trust continued to maintain the trees and grounds of the estate which 15 registered as a ConseNatlon Area. The buildings had essential repairs completed but a full survey has been completed in March 2025. Essential work wa5 carried out to the trees following a tree survey. The grounds were once again hired to a local educational institution. b. Investment pollcy and performance The Trustees regularly review the performance of the investments which are currently invested with CCLA Investment Management Ltd. The objective is to create sufflcient income and capital growth to meet the purposes of the charity in maintainin8 the Diocesan and Cathedral Offices. The trust invests in Ilne wlth the Church of England ethical guidelines. It has a minimum target total return of CPI + 4% long term and in 2024 the total return in the year was 5.1% (2023: 12.3%)
Guy Harlings Estate TRUSTEES. REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 Icontlnued) Flnancial revlew . Going concern After making appropriate enquiries, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Forthis reason they continue to adopt the going concern basis in preparing the financial statements. The Trustees have made this assessment in speCt of a period of at least 12 months from the date of approval of these financial statements. Factors considered include: - Investment returns are kept under review to ensure that, over time, they outperform the consumer prices index to maintain a positive balance in the unapplied total return account {see note 10). Inflation has fallen significantly since 2022-23 and the markets are improving following an unsteady start to 2025. - Costs of building and garden Maintenan are reviewed along with prioritisation of work to ensure safe working conditions forthe Cathedral and Diocese. - Use of profe55i0nal surveyors to advise on building and tree maintenance. - Insuran cover is sufficient for Unpdictable hazards. b. Flnanaal review of 2024 Guy Harlings Estate recorded a deficit of £8k on its general fund and a £40k surplu5 on its endowment fund for the year. The budgeted income of about £IOk for facilities hire and £20k for investment income was on target, whilst expenditure was £3k more than budget mainly due to extra expenditure on tree surgery. £23k was spent on essential building maintenance. The care of the buildings and grounds is essential to the charitable provision of facilities and more will be expended in the coming years followinE a buildlng survey in March 2025. The general fund closed the year with £30k in reserves which is about the level required to cover a year of expenditure and give time to make any changes required. There are two separate investments in the permanent endowment fund. Both maintained their value in 2024, producing a 5.1% return before the total return calculation. One investment is under a Charity Commission recoupment order and cannot be drawn upon until 2041. Its value at end 2024 was £515k. The other investment is being used in a Total Return Account with a 3% share of investment growth being allocated to income. see note 10. Its value at end 2024 was £715k. The total endowment fund is £1,228k and a totsl of all funds of £1,258k. The Trustees are limited by the Charity Commission recoupment order and the Charity Commission endowment fund rules on the amount that can be drawn from the investments which makes any substantial improvements or repalrs to the facilities difficult to finance. The Trustees are seeking advice on best use of funds in order to carry out the 5 year building maintenance plan supplied in March 2025. c. Investment Policv The Trustees use the CCLA Investment Management Ltd to hold its investments as it requires them to be managed using ethical, social, environmental and sustainable considerations when selecting companies for investment. d. Prlncipal Risks and Uncertainties Flnancial: The risk posed by lack of available finance to payfor essential work on the buildings and land. The trustees review the investment returns and use the option of Total Return Accounting which incorporates a six-year funding plan for the building maintenance. Building Failure: The risk of major structural failure in the buildings. The trustees have commissioned a survey of the various building5 on site which shows that maintenance work on roots and wa115 15 required but has not uncovered anything unexpected. Health and Safety on slte: The risk of accident or injury on site caused by falling trees or masonary and uneven surfaces. The trustees have the trees surveyed regularly and the building has a maintenance plan. The work Is prioritised according to risk. Public liability insurance Is reviewed each year.
Guy Harlings Estate 5tructure• governance and management . Constitution The principal object of the charity is to appropriate such parts of the land and property 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. b. Method of appolntment or elertion of Trustees The management of the charity is the responsibility of the Trustees who are elected and co-opted under the terms of the Charity Cornmi55ion Scheme. c. Organisatlonal structure and decFsion maklng The Trustees include the Bishop of Chelmsford, and the Dean of Chelmsford Cathedral. There are a furtherthree trustees appointed by the Diocese and two trustees appointed by the Cathedral Chapter. The Trustees meet at least twice a year and their decisions are actioned by staff within the Cathedral or Diocese as the trust has no employees. Trustees. responsibilities statement The Trustee5 are responsible for preparing the Trustees, Report and the flnancial statements in accordance with appllcable law and United Kingdom Accounting Standards (United Kingdom Generalty Accepted Accounting Pratticel. The law applicable to charities in England & Wales requires the Trustees to prepare f inancial statements for each financial year which give a true and falr view of the state of affairs of the charlty 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 accountlng policies and then apply them consistentlvi • observe the methods and principles in the Charities SORP; • make judgments and accounting estimates that are reasonable and prudent; • state whether applicable accounting standards and statements of recommended practice 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 are sufficient to show and explain the charity's transactions and 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 Act 2011, the Charity (Account5 and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence fortaking reasonable steps for the preventlon and detectlon of fraud and other irregularltles. This report was approved by the Trustees on: a02g and signed on their behalf by: Jkl (VLi{J.
Guy Harlings Estate Report to the Trustees of Guy Harllng5 Estate On Accounts for the Year Ended 31st December 2024 Set out on pages: 8t014 Responsibilities and Basis of Report I report to the trustees on my examination of the accounts of the above charity {"the Trust") for the year ended 31112/2024 As the charity's trustees, you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 20111.the Act"). I report in respect of my examination of the Trust's accounts carried out under section 145 of the 2011 Act and in carrying out my examination, I have followed all the applicable Dlrertions gwen bythe Charity Commission under section 145{5){bl of the Act. Independent Examiners Statement I have completed my examination. I confirm that no material matters have come to my attentlon In connection with the examination which gives me cause to believe that in, any material respect: the accounting records were not kept in accordance with sertlon 130 of the Charities Act. or the account5 did not accord with the accounting records. or the accounts did 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 fairf view which Is not a matter considered as part of an independent examinatlon. 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 orderto enable a proper understanding of the accounts to be reached. Slgned: Date: Name: Emma Daniels Relevant Professlonal Quallftcatlon: ACCA Address: Black Swan Cottage Long Lane Hullbridge 555 6BA
Guy Harlings Estate Statement of Financial Activities Year Ended 31st December 2024 Unrestricted Endowment Funds Funds Total Funds Prior Year Income From: Charltable Artlvltles Facilities Hire 10,925 10,925 13,400 Total Income from Activlties 10,925 10,925 13,400 Investment Income Interest Dividend Income Total Income from Investments 809 809 19,397 20,206 162 19,420 19.582 19,397 19,397 809 Total Income 11,734 19,397 31,131 32,982 Expendlture on: Charitable Activities Garden Maintenance Tree surgeon Building maintenance Building insurance Legal & professional fees Administration Total Exp on Charltable Artivities 5,845 8,016 23,220 2,358 5,845 8,016 23,220 2,358 6,793 13,224 1,767 553 39,992 553 39,992 21,784 Net Incomel(Expenditurel before Investment Galns Net G3insllLossesl on Investments 128.258) 19,397 40,882 (8.861) 40,882 11,198 114.593 Net Incomel(Expenditure) before Transfers Transfers between funds Transfer from unapplied total return (28,2581 11,080} 20,959 60,279 1,080 {20,9591 32.021 125,791 Net Movement in Funds 18,379) 32,021 125,791 Reconclllatlon of Funds: Total Funds Brought Forward Total Funds Carrled Forward 38,287 29,908 1,187,987 1,226,274 1,100,483 1,228,387 1,258,295 1,226,274
Guy Harlings Estate Balance Sheet Year Ended 31st December 2024 Unrestrlcted Endowment Funds Funds Total Funds Prior Year Note Flxed assets Tangible Fixed Assets Investments Total flxed assets 1,692 1,692 1,228,387 1,230,079 1,188,117 1,228,387 1,230,079 1,188,117 Current assets Debtors Cash at bank and in hand Total current assets 20,971 29.536 50,507 20,971 29,536 50,507 18.544 21,052 39,596 Credltors: amounts falllng due w6thln one year 122,2911 {22.291) 11,439} Net Assets 29,908 1.228,387 1,258,295 1,226,274 Charlty Funds Endowmentfunds Unrestricted funds Total funds 1,228,387 1.228.387 1,187,987 29,908 38,287 1,228,387 1.258,295 1,226,274 29,908 29,908 The financial Statements were approved by the Trustees on a8 aoa£ and signed on thelr behalf, by:
Guy Harlings Estate NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2024 Note l ACCOUNTING POLICIES 1.1 Basls of preparatlon of flnanclal statements The financial statements have been prepared under the historlcal cost convention with items recognised at cost or transaction value unless othenvise stated in the relevant notes to these accounts. The financial statements have been prepared in accordance with the 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 1021 ( effective l January 20191, and with the requirements of the 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 15 probable that the income will be received and the amount of income recefvable can be measured reliably. For legacies, entitlement is taken as the earller of the date on which elther: the charity is aware that probate has been granted, the estate has been finalised and notification has been made bythe executorlsl 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, orthe 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 IFRS 1021, the receipt of volunteertime 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 facllities are recognised on the basls of the value of the gift to the charity which is the amount the charity would have been wllling 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 lo donations received under Gift Aid or deeds of covenant is recognised at the tlme of the donation. io
Guy Harlings Estate NOTES TO THE FINANCIAL STATEMENT5 FOR THE YEAR ENDED 31ST DECEMBER 2024 (continued) 1.4 Expenditure Expenditure is recognised once there is a legal or constructlve obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be qUIred 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 charlty apportioned to charitable actSVitie5. 1.5 Investments Fixed asset investments are a form of flnancial instrument and are initlally 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 comblned and shown in the heading 'Gainsl{lossesl on investments, in the Statement of Financial Activities. 1.6 Interest receivable Interest on funds held on deposlt 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 terrn highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or sirnilar account. 1.9 LlabS1ities 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 arnount that the charity anticipates it will pay to settle the debt or the amount It has received as advanced payments for the goods or servlces it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation. li
Guy Harling5 Estate NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2024 (continued) Note 2 NET INCOMING RESOURCESIIRESOURCES EXPENDED) This is stated after charging: Fees for examination of the accounts This year Last year Independent examinerfs fees Note 3 STAFF COSTS This year Last year Arnounts paid to Chelmsford Cathedral for secretarial work Durlng the year, no Trustees received any remuneration, benefits-ln-kind or reimbursement of expenses (2023 - £Nill Note 4 TANGIBLE FIXED ASSErs The Trustees are effectively caretakers forthe land and buildings at 53 New Street, Chelmsford which are to be Used for the purpose5 described in the ChariWs 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 ASSEf INVESTMENTS This Year Last Year Market value At l January 2024 Additions Sales Revaluations At 31 December 2024 1,188,117 1,080 1,085,104 1,080 {12,660 114,593 1,188,117 40,882 1,230,079 Endowment Fund Investments held by fund At 31st December 2024 Listed Investments General Fund Total Funds Total Funds 1,692 1,228,387 1,230,079 1,188,117 Investments at market value comprlse of unlts or shares purchased in common Investment funds administered by CCLA Investment Management Limited in the UK. The Funds are actively managed, diversrfied portfolios of assets with an emphasis on equities but will also Include propety, bonds and other asset classes, which may be elther 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. 12
Guy Harlings Estate NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2024 (continuedl Note 6 DEBTORS This year Last year Debtors Prepayments 10,000 8,544 18,544 20,971 20,971 Note 7 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR This year Last year Accruals 22,291 1,439 Nots 8 STATEMENT OF FUNDS Brought Forward Gains/ (Losses) Carried Forward Income Expenditure Transfers Unrestrlcted Funds: General Fund 38,287 11,734 (39,9921 19,879 29,908 Endowment Funds: 1,187,987 19,397 (19,879) 40,882 1,228,387 1,226,274 31,131 (39,9921 40,882 1,258,295 Note 9 RELATED PARTY TRANSAcfioNS As described in the Trustees Report, the Charity makes available office space to both Chelmsford Cathedral {the Cathedral) and the Chelmsford Dlocesan Board of Finance (CDBF}. Day to day maintenance expendlture ts the responsibility of the Cathedral and the CDBF. Members of the Cathedral Chapter: The Very Revd J P Kennington {resigned) The Very Revd Dr J Martin. D Edgar B Greatrex {resigned 20.05.20251 Trustees of the CDBF The Bishop of Chelmsford The Venerable M Power (resigned 13.05.20251 The Venerable J Croucher 13
Guy Harlings Estate NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2024 {continued} Note 10 TOTAL RETURN ACCOUNTING From l January 2021 the trustees of Guy Harlings Estate adopted a total return approach to one of its investments in its Endowment Fund5. 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 15 transferred to the General Fund in accordance with agreed principle5. The original investrnent 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 bs 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 implementlng total return was determined at l January 2021, using the value known at 1999. This value belng £538,948. The unapplied total return was calculated to be £111,669. The principles were resolved for application in 2021. The annual percentage to transferto the General Fund to supplement revenue was agreed at 3.8% for 2021 and 3.0% for future year5, unless a particular project requires rnore funding. The indexation of the base values is calculated using the National CPI index. 2024 Unapplied Total Return Trust for investment Total endowment Investment narne: GUYHAOI As at l January Base Value of the permanent endowment Unapplied total return 652,462 652,462 46,163 698,625 46,163 46,163 652,462 Movements In the year: Investment income.. dividends & interest Investment return: realised and unrealised gains Management fees Add indexation to original endowment Unapplied total tUrn allocated to income 19,397 15,993 19,397 15,993 16,780 (16,780) {20,959) {20,9591 Net movements in the year 16,780 12,349) 14,431 As at 31 December Base Value of the permanent endowment Unapplied total return Valuation as at 31 December 669,242 669,242 43,814 713,056 43,814 43,814 669,242 14