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2022-12-31-accounts

THE MICKLEGATE ECCLESIASTICAL TRUST

A CHARITABLE INCORPORATED ORGANISATION (CIO)

REGISTERED CHARITY NUMBER 1197460

TRUSTEES’ REPORT AND ACCOUNTS

31 DECEMBER 2022

Document ID: 0213d09cf28902b3c64258efa1f80f7ebac3ceed39504ba790663cf2bd838776

THE MICKLEGATE ECCLESIASTICAL TRUST TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

LEGAL AND ADMINISTRATIVE INFORMATION

TRUSTEES

Apart from the initial trustees appointed at the formation of the CIO, every trustee is appointed by a resolution passed at a properly convened meeting of the trustees.

The Trustees are:

Mrs P R Fleetwood (from registration to 31 May 2023) Mr A J S E Kingaby-Daly Mr M N J Kingaby-Daly (from registration to 31 May 2023) Mr T J C Selman (from 9 March 2023) Mr M O Wharfedale (Chair)

CORRESPONDENCE ADDRESS

Vicarage Chambers, 9 Park Square East, Leeds, LS1 2LH

GOVERNING INSTRUMENT

CIO Foundation Constitution was registered on 12 January 2022 and amended on 2 June 2023.

CHARITY REGISTRATION NUMBER

1197460

BANKERS

NatWest 27 Yorkersgate, Malton, YO17 7AZ

LEGAL ADVISORS

Lee Bolton Monier-Williams LLP 1 The Sanctuary, Westminster, London, SW1P 3JT

Ware & Kay Solicitors (incorporating Pearsons & Ward) 2 Market Street, Malton, YO17 7AS

Knights Victoria, Hudson Quarter, Toft Green, York, YO1 6AB

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Document ID: 0213d09cf28902b3c64258efa1f80f7ebac3ceed39504ba790663cf2bd838776

THE MICKLEGATE ECCLESIASTICAL TRUST TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

INDEPENDENT EXAMINER

Laura Masheder FCA DChA BHP LLP, 2 Rutland Park, Sheffield, S10 2PD

INVESTMENT ADVISOR

E L Watson Financial Planning Ltd Victoria House, Bradford Road, White Cross, Guiseley, Leeds, LS20 8NH

LAND AGENT

Savills (UK) Limited River House, 17 Museum Street, York, YO1 7DJ

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Document ID: 0213d09cf28902b3c64258efa1f80f7ebac3ceed39504ba790663cf2bd838776

THE MICKLEGATE ECCLESIASTICAL TRUST TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2022

The trustees present their report and financial statements for the year ended 31 December 2022.

The trustees have adopted the provision of the Statement of Recommended Practice (SORP) "Accounting and Reporting by Charities" in preparing the charity's annual report and financial statements.

This is the first annual report for The Micklegate Ecclesiastical Trust. The charity was formerly the unincorporated charity known as The Holy Trinity and St Martin’s Ecclesiastical Trust, an amalgamation of the separate Holy Trinity Micklegate Church Close Trust and St Martin with St Gregory Church Estate Trust.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the trust's governing document, the Charities Act 2011 and "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 published in October 2019".

OBJECT

The object of the CIO is to further the religious and other charitable work of the Church of England in the Area of Benefit, including the repair and maintenance of the Churches.

To achieve the above object, the charity holds several assets, split between commercial and residential property, alongside an investment portfolio. The property is leased accordingly, producing rental income.

The Trustees confirm that they have complied with the duty in section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission in determining the activities undertaken by the Charity.

ACHIEVEMENTS AND PERFORMANCE

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Document ID: 0213d09cf28902b3c64258efa1f80f7ebac3ceed39504ba790663cf2bd838776

THE MICKLEGATE ECCLESIASTICAL TRUST TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

FINANCIAL REVIEW

During the year, the charity had a surplus of £85,609, which included a net loss on investment funds of £228,984 and a property revaluation of £352,350. Total income was £199,351 (2021: £193,009), and total expenditure was £372,108 (2021: £215,494).

At 31 December 2022, the charity had total funds of £5,647,777 (2021: £5,697,168 as restated). Of this sum, £1,790,508 relates to investment funds (2021: £3,129,368), £3,210,160 relates to investment property (2021: £2,110,000 as restated), £250,000 to tangible fixed assets (2021: £250,000), £397,109 relates to net current assets (2021: £232,150) and £nil relates to non-current liabilities (2021: £24,350). The income generated from the investments was £199,160 (2021: £193,009). Free reserves are £824,693 (2021: £997,450) including listed investments as these could easily be liquidated if required.

RESERVES POLICY

Based on current and reasonably predictable future requirements for funding, and current and reasonably anticipated income generated from the Charity’s properties and investments, the Charity will keep a minimum of £50,000 in immediately accessible cash balances to act as a general reserve. An additional £50,000 will also be similarly set aside to fund any unexpected requirement, including cover for any significant shortfall, interference in the Charity’s income stream, or financial demand or liability such as emergency repair work to the Charity’s properties. This policy will be reviewed every two years, and the trustees have plans to review this again in 2023.

FUND RAISING

As the charity obtains funding from its property and investment portfolio income, there have been no specific fundraising activities.

GOING CONCERN

As required by the Charities Statement of Recommended Practice (FRS 102), we assess whether any uncertainties may cast doubt over the Charity’s ability to continue as a going concern.

Reference to the economic environment and COVID-19 pandemic is included here to demonstrate the impact on the Charity. Despite the impact of the COVID-19 pandemic and the current economic environment (interest rates and high cost of living), the Charity continues as a going concern. Despite wider economic issues, both dividend and rental income remain within levels where the Trustees are not presently concerned.

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Document ID: 0213d09cf28902b3c64258efa1f80f7ebac3ceed39504ba790663cf2bd838776

THE MICKLEGATE ECCLESIASTICAL TRUST TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

RISK MANAGEMENT

The trustees are aware of the financial risks associated with fund and property investment in relation to capital and income valuations.

FUTURE PLANS

There are no plans to change the way in which the charity operates or the work that it undertakes at this point in time. The Trustees highlight the following aims and activities that are planned to take place in future periods.

STRUCTURE, GOVERNANCE AND MANAGEMENT

The Charity is regulated by a CIO Constitution dated 12 January 2022.

SAFEGUARDING POLICY

The Trustees are of the view that the Charity has no direct involvement with children or vulnerable adults. This policy will be reviewed every three years. Where considered appropriate, the Charity will ask all recipients of grants whether those organisations have a safeguarding policy in place. Where there are cases of safeguarding issues, the Charity will review any grant policy about that organisation.

INVESTMENT POLICY

The Trustees’ investment powers are determined by current legislation, and in consideration of the content of the Charity Commission guidance (CC14 as amended), the trust believes it has no financial investments in conflict with those guidelines or the aims and purposes of the Charity.

The Charity receives all of its income from a portfolio of property and investments predominantly traded on the London Stock Exchange together with open-ended investment funds and unit trusts, which are regulated by the Financial Conduct Authority. It will aim to generate from its investments natural income of at least the equivalent of the Bank of England’s base rate plus inflation. However, it is acknowledged that this may not be achievable during particular economic climates. All investment performances are compared with their benchmarks where applicable. Where appropriate, the Charity will also consider ethical investments within financial investments, programme-related and mixed motive investments and social investments outside financial investments.

To act in the trust's best interests and comply with its charitable responsibilities, the trust will employ professional advisers to manage its commercial and other property interests. Similarly, the Charity will employ a professional adviser to manage its non-property investment portfolio, which will be reviewed at least annually. The trust has adopted an investment strategy to balance potential growth with income through diversification, capital preservation and an appropriate appetite for risk. The trust acknowledges that investments can fluctuate in value, react to market volatility, and cannot guarantee a fixed or increasing level

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Document ID: 0213d09cf28902b3c64258efa1f80f7ebac3ceed39504ba790663cf2bd838776

THE MICKLEGATE ECCLESIASTICAL TRUST TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

of income and that regulation and worldwide political and financial climates can significantly impact investments, values and income. It is considered that the trust investments are appropriate, sufficient and suitable for the Trust’s requirements.

This policy will be reviewed every three years.

Ethical Investment: describes a way of making financial investments which consider the charity’s values and ethos. Trustees must exercise their investment power in the best interests of the Charity.

Mixed Motive Investment (MMI): one which Trustees can justify making on the basis that it combines a financial return as well as a contribution to furthering their Charity’s aims.

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The Trustees are responsible for preparing the Trustees’ report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England & Wales requires the Trustees to prepare financial statements for each financial which give a true and fair view of the state of affairs of the charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate 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 (Accounting and Reports) Regulations 2008 and the provisions of the Trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by order of the members of the board of Trustees and signed on their behalf by:

Signer ID: WRKPGJKBMT... Mr M O Wharfedale, Chair of Trustees Date: 25/10/2024 GMT

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Document ID: 0213d09cf28902b3c64258efa1f80f7ebac3ceed39504ba790663cf2bd838776

THE MICKLEGATE ECCLESIASTICAL TRUST TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

INDEPENDENT EXAMINERS’ REPORT TO THE TRUSTEES OF THE MICKLEGATE ECCLESIASTICAL TRUST

I report to the trustees on my examination of the financial statements of The Micklegate Ecclesiastical Trust (the trust) for the year ended 31 December 2022.

Responsibilities and basis of report

As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).

I report in respect of my examination of the charity’s financial statements carried out under section 145 of the 2011 Act. In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

I have completed my examination. I confirm that no 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 trust as required by section 130 of the 2011 Act; or

  2. the financial statements do not accord with those records; or

  3. the financial statements 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 of 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 financial statements to be reached.

Signer ID: CRZCVPKXXZ...

Laura Masheder FCA DChA

BHP LLP Chartered Accountants 2 Rutland Park Sheffield S10 2PD

Dated: 25/10/2024 GMT

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Document ID: 0213d09cf28902b3c64258efa1f80f7ebac3ceed39504ba790663cf2bd838776

THE MICKLEGATE ECCLESIASTICAL TRUST TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2022

STATEMENT OF FINANCIAL ACTIVITIES
FOR THE YEAR ENDED 31 DECEMBER 2022		 STATEMENT OF FINANCIAL ACTIVITIES
FOR THE YEAR ENDED 31 DECEMBER 2022
Notes
INCOME AND ENDOWMENTS FROM
Investments
2
Total		 Unrestricted
funds
Endowment
funds
Total Unrestricted
funds as
restated
Endowment
funds
Total
as restated
2022
2022
2022
2021
2021
2021
£
£
£
£
£
£
199,351
-
199,351
193,009
-
193,009
199,351
-
199,351
193,009
-
193,009
EXPENDITURE ON
Charitable Activities
3
Raising Funds
4
Total
Net expenditure for the year before
investment losses
Net (losses)/gains on investments
7, 8
Net Movement in Funds
Total Funds brought forward
Total Funds carried forward		 227,525
-
227,525
153,411
-
153,411
92,083
-
92,083
62,083
-
62,083
319,608
319,608
215,494
-
215,494
(120,257)
-
(120,257)
(22,485)
-
(22,485)
-
-
-
-
-
-
-
70,866
70,866
63,408
273,760
337,168
(120,257)
70,866
(49,391)
40,923
273,760
314,683
1,247,450
4,449,718
5,697,168
1,206,527
4,175,958
5,382,485
1,127,193
4,520,584
5,647,777
1,247,450
4,449,718
5,697,168

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

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Document ID: 0213d09cf28902b3c64258efa1f80f7ebac3ceed39504ba790663cf2bd838776

THE MICKLEGATE ECCLESIASTICAL TRUST TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2022

STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2022		 STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2022		 STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2022		 STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2022		 STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2022
Notes
Fixed assets
Tangible assets
6
Investment properties
7
Investments
8
Current assets
Debtors
9
Cash at bank and in hand
Creditors: amounts falling due
within one year
10
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more
than one year
11
Net assets
Capital funds
Endowment funds - general
13
Income funds
Unrestricted funds - general
14		 2022
£
270
400,542		 2021
as restated
£
£
250,000
3,210,160
1,790,508
5,250,668
15,368
225,755
241,123

(8,973)
397,109
5,647,777
-
5,647,777
4,520,584
1,127,193
5,647,777		 £
250,000
2,110,000
3,129,368
5,250,668

397,109		 5,489,368

232,150
400,812
(3,703)		 241,123
(8,973)
5,647,777
-		 5,721,518
(24,350)
5,647,777 5,697,168
4,520,584 4,449,718
1,127,193 1,247,450
5,647,777 5,697,168

The Trustees approved the financial statements on 23 October 2024.

Signer ID: OVVN0ZGRTE... Mr A J S E Kingaby-Daly (Treasurer) Trustee Date: 24/10/2024 GMT

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Document ID: 0213d09cf28902b3c64258efa1f80f7ebac3ceed39504ba790663cf2bd838776

THE MICKLEGATE ECCLESIASTICAL TRUST TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

NOTES TO THE FINANCIAL STATEMENTS

1. Accounting policies

Charity information

The Micklegate Ecclesiastical Trust is a charity registered with the Charity Commission for England and Wales.

1.1. Accounting convention

The financial statements have been prepared in accordance with the trust's governing document, the Charities Act 2011, "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) (issued in October 2019)" and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102).

The Charity is a Public Benefit Entity as defined by FRS 102.

The trust has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.

The financial statements are prepared in sterling, which is the functional currency of the Charity and rounded to the nearest £1.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes. The principal accounting policies adopted are set out below.

1.2. Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the trust has adequate resources to continue in operational existence for the foreseeable future although the assets and liabilities will be transferring to the Micklegate Ecclesiastical Trust CIO, the activities will continue through the new entity . Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3. Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Endowment funds are funds which are held for the permanent benefit of the trust. There is no power to convert capital into income. All income generated can be used in accordance with its objects of the charity and is included as unrestricted income. Any capital gains or losses arising from the investments form part of the fund.

1.4. Income

All income is included in the statement of financial activities when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy.

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THE MICKLEGATE ECCLESIASTICAL TRUST TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

1. Accounting policies continued

1.5. Expenditure

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category.

Raising funds comprise the costs associated with managing investment funds and investment properties.

Charitable expenditure comprises those costs incurred by the trust in the delivery of its activities and services for its beneficiaries.

1.6. Tangible fixed assets

Expenditure on fixed assets costing more than £2,000 is capitalised.

Freehold property Freehold land is not depreciated Land Freehold land is not depreciated

1.7. Investment properties

Investment properties (including land) for which fair value can be measured reliably without undue cost or effort are measured at fair value at each reporting date with changes in fair value recognised in ‘net gains/(losses) on revaluation of investments’ in the statement of financial activities. Fair value is deemed to be the market value as valued by property consultants in accordance with guidelines issued by The Royal Institute of Chartered Surveyors.

1.8. Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

1.9. Impairment of fixed assets

At each reporting end date, the trust reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.10. Cash and cash equivalents

Cash and cash equivalents include cash in hand and deposits held at call with banks.

1.11. Financial instruments

The trust has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the trust's balance sheet when the trust becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

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THE MICKLEGATE ECCLESIASTICAL TRUST TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

1. Accounting policies continued

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are measured at transaction price.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are recognised at transaction price.

Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised at transaction price.

2. Investments

2022
£
2021
£
Rental income 102,518
99,609
Dividends 96,642
93,388
Interest receivable 191
12
199,351
193,009

All investment properties are let on either a residential or commercial tenancy with an appropriate rent linked to the market rate for the property. All investment properties have an insurance premium appropriate to the building.

3. Charitable activities

3. Charitable activities
2022
£
2021
£
Grants 178,535
133,432
Other expenditure and support costs 48,990
19,979
227,525
153,411
4. Raising funds
2022
£
2021
£
Investment funds charges 19,273
21,366
Investment property fees 29,393
7,894
Investmentpropertyrepairs and maintenance 43,417
32,823
92,083
62,083

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Document ID: 0213d09cf28902b3c64258efa1f80f7ebac3ceed39504ba790663cf2bd838776

THE MICKLEGATE ECCLESIASTICAL TRUST TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

5. Support costs

5. Support costs
2022
£
2021
£
Bank charges 177
-
Professional fees 40,185
14,959
Independent examiner’s fee 2,598
5,020
Administration 6,030
-
48,990
19,979
6. Tangible fixed assets
Freehold
property
£
Total
£
Valuation
Brought forward at 1 January 250,000
250,000
Revaluations -
-
Carrying amount
At 31 December 2021 250,000
250,000
At 31 December 2022 250,000
250,000

1 Crambeck Court has been included as a tangible fixed asset as it is currently not generating rental income and will not for the short term. At the date of transfer, the value of the property was £250,000. This valuation was provided by Lawrence Hannah Ltd under guidelines issued by The Royal Institute of Chartered Surveyors. The historical use of 1 Crambeck Court by the predecessor charity will be addressed by the trustees in due course following legal advice.

Historical cost

The CIO was formed in January 2022, and the property was transferred over from a predecessor charity (The Holy Trinity and St Martins Ecclesiastical Trust). The historical costs of most properties are unknown, and the CIO and trustees do not hold records relating to their donation, gift or purchase. Most of the property was donated or purchased before 1950. According to the records available to the trustees, the historical cost of some of the property is £195,000.

7. Investment property

7. Investment property
2022
£
2021
as restated
£
Market value
At 1 January 2,110,000
1,960,000
Revaluations 299,850
-
Reclassification of freehold property -
(225,000)
Additions 800,310
375,000
At 31 December 3,210,160
2,110,000

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Document ID: 0213d09cf28902b3c64258efa1f80f7ebac3ceed39504ba790663cf2bd838776

THE MICKLEGATE ECCLESIASTICAL TRUST TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

7. Investment property continued

Valuation

All freehold investment properties were revalued in 2019 by Lawrence Hannah Ltd and some were revalued by Savills (UK) Limited, on the market value basis in accordance with guidelines issued by The Royal Institute of Chartered Surveyors. The revaluation above reflects the increase in the fair value estimate. All investment properties will be revalued by an RICS surveyor during 2024.

Historical cost

The CIO was formed in January 2022, and the property was transferred over from a predecessor charity (The Holy Trinity and St Martins Ecclesiastical Trust). The historical costs of most properties are unknown, and the CIO and trustees do not hold records relating to their donation, gift or purchase. Most of the property was donated or purchased before 1950. According to the records available to the trustees, the historical cost of some of the property is £377,125.

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Document ID: 0213d09cf28902b3c64258efa1f80f7ebac3ceed39504ba790663cf2bd838776

THE MICKLEGATE ECCLESIASTICAL TRUST TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

8. Fixed asset investments

8. Fixed asset investments
2022
£
2021
£
Market value
At 1 January 3,121,139
3,184,458
Additions -
744,588
Gain/(loss) on investment funds (228,984)
337,168
Disposals (1,110,197)
(1,145,075)
At 31 December 1,781,958
3,121,139
Cash held 8,550
8,229
Total investments 1,790,508
3,129,368
2022
£
2021
£
Investments at fair value comprise:
UK Equity 293,547
555,636
Global Equity 655,213
935,315
Private Equity 61,700
67,859
European Equity 109,124
115,581
Fixed Interest 94,918
211,470
Cautious Managed 216,541
570,978
Absolute Return -
157,706
Gold & Resources 49,412
51,409
Life Settlement 6,888
7,292
Infrastructure & Property 245,102
405,734
Specialist 49,513
50,388
Cash 8,550
-
1,790,508
3,129,368

Historical cost

The CIO was formed in January 2022, and the investments were transferred over from a predecessor charity (The Holy Trinity and St Martins Ecclesiastical Trust). The historical costs of investments are unknown, and the CIO and trustees do not hold records relating to their donation, gift or purchase.

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Document ID: 0213d09cf28902b3c64258efa1f80f7ebac3ceed39504ba790663cf2bd838776

THE MICKLEGATE ECCLESIASTICAL TRUST

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

9. Debtors

9. Debtors
2022
2021
Amounts falling due within one year: £
£
Other debtors -
8,977
Prepayments and accrued income 270
1,933
270
10,910
2022
2021
Amounts falling due after more than one year: £
£
Other debtors -
4,458
-
4,458
Total debtors 270
15,368

10. Creditors: amounts falling due within one year

10. Creditors: amounts falling due within one year
2022
2021
£
£
Accruals 3,378
5,550
Deferred income
12		 325
3,423
3,703
8,973

11. Creditors: amounts falling due after more than one year

11. Creditors: amounts falling due after more than one year
2022
2021
£
£
Deferred income
12		 -
24,350
12. Deferred income
2022
2021
£
£
Arisingfrom rental income 325
27,773
Movements in the year:
Deferred income at 1 January 27,773
-
Income released in the year (27,448)
-
Resources deferred in theyear -
27,773
Deferred income at 31 December 325
27,773

Deferred income relates to rental and lease premium income received in advance.

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Document ID: 0213d09cf28902b3c64258efa1f80f7ebac3ceed39504ba790663cf2bd838776

THE MICKLEGATE ECCLESIASTICAL TRUST TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

13. Endowment funds

Endowment funds represent assets which must be held permanently by the trust. Income arising on the endowment funds can be used in accordance with the objects of the trust and is included as unrestricted income. Any capital gains or losses arising on the assets form part of the fund.

income. Any capital gains or losses arising on the assets form part of the fund. income. Any capital gains or losses arising on the assets form part of the fund.
Permanent endowments
Freehold property
Investment property
Investment funds
Permanent endowments
Freehold property
Investment property
Investment funds		 Balance at
01/01/2022
as restated
Investment
gains/(losses)
Transfers Revaluations &
reclassiciation
Balance at
31/12/2022
as restated
£
£
£
£
£
-
-
-
-
-
2,110,000
-
800,310
299,850
3,210,160
2,339,718
(228,984)
(800,310)
-
1,310,424
4,449,718
(228,984)
-
299,850
4,520,584
-
-
Balance
01/01/2021
as restated
Investment
gains/(losses)
Transfers Revaluations &
reclassiciation
Balance at
31/12/2021
as restated
£
£
£
£
£
25,000
-
-
(25,000)
-
2,085,000
-
-
25,000
2,110,000
2,065,958
273,760
-
-
2,339,718
4,175,958
273,760
-
-
4,449,718

14. Prior year adjustment

There has been a prior year adjustment to include land and garages at Trinity Lane totalling £135,000 in the value of investment properties which had been omitted from the balance sheet. The effect of this was to increase total funds at 31 December 2020 and 31 December 2021 by £135,000 and increase investment property value by £135,000 at 31 December 2021. There was no impact to the statement of financial activities for the year to 31 December 2021.

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Document ID: 0213d09cf28902b3c64258efa1f80f7ebac3ceed39504ba790663cf2bd838776

THE MICKLEGATE ECCLESIASTICAL TRUST TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

15. Analysis of net assets between funds

Fund balances at 31 December 2022 are represented by:
Tangible assets
Investment properties
Investments
Current assets/ (liabilities)
Fund balances at 31 December 2021 are represented by:
Tangible assets
Investment properties
Investments
Current assets/ (liabilities)
Long term liabilities		 Unrestricted
funds
2022
£
Endowment
funds
2022
£
Total
2022
£
250,000
-
250,000
-
3,210,160 3,210,160
480,084
1,310,424 1,790,508
397,109
-
397,109
1,127,193
4,520,584 5,647,777
Unrestricted
funds
2021
£
Endowment
funds
2021
£
Total
2021
£

250,000
-
250,000
-
1,600,000
1,975,000
789,650
2,849,718
3,129,368
232,150
-
232,150
(24,350)
-
(24,350)
1,247,450
4,449,718
5,697,168

16. Grant commitments

Grant expenditure committed at 31 December 2022 was £56,390 within 1 year, (2021: £31,250 within 1 year and £20,000 within 3 years).

17. Related party transactions

No trustees were reimbursed for expenses in the year (2021: £nil). No trustee nor any persons connected with them received any remuneration or benefits during the year (2021: £nil).

During the year, grants were made to Holy Trinity Micklegate PCC (three trustees are also trustees of this charity) of £87,804 (2021: £124,000). No grants were made to Isabel Ward (one trustee is also a trustee of the charity) during the year (2021: £1,000).

The Charity Commission is aware of the following related party transactions following correspondence from the trustees. £57,545 were made to Hardwicke Estates (2021: £10,161) and TCS Enterprises (2021: £600) during the year, of which a director is a trustee of the charity. Service charge costs amounting to £1,080 paid to Crambeck Court Management Ltd (2021: £1,470) and £1,238 to Trinity Court (York) Management Co Ltd (2021: £0) of which one trustee is also a director of both Management Companies on behalf of the CIO.

Page 19 of 20

Document ID: 0213d09cf28902b3c64258efa1f80f7ebac3ceed39504ba790663cf2bd838776

THE MICKLEGATE ECCLESIASTICAL TRUST TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

18. Merger accounting

The Micklegate Ecclesiastical Trust was registered as a charitable incorporated organisation (‘CIO’) with registration number 1197460 on 12 January 2022.

The Holy Trinity and St Martin’s Ecclesiastical Trust unincorporated charity with registration number 1094335 merged with the new CIO on 12 January 2022 and as such merger accounting has been used in these financial statements. The assets, liabilities and funds of the combining charities are presented as though they had always been part of the same reporting charity.

The results of the combining charities pre and post merger have been disclosed in the notes below in line with SORP (FRS 102) requirements.

Analysis of principal SOFA components for current year

Unincorporated
charity
(pre-merger)		 CIO
(pre-merger)		 CIO
(post-merger)
Combined
total
Total income 126,148 - 73,203 199,351
Total expenditure 218,365 - 153,743 372,108
Net income/(expenditure) (92,217) - 54,460 (37,757)
Othergains/(losses) - - 123,366 123,366
Net movement in funds (92,217) - 42,826 (49,391)

Analysis of principal SOFA components for the previous reporting period

Unincorporated
charity
as restated		 CIO Combined
total
Total income 193,009 - 193,009
Total expenditure 215,494 - 215,494
Net income/(expenditure) (22,485) - (22,485)
Othergains/(losses) 337,168 - 337,168
Net movement in funds 314,683 - 314,683
Total funds brought forward 5,382,485 - 5,382,485
Total funds carried forward 5,697,168 - 5,697,168

Analysis of net assets at the date of merger

Unincorporated
charity		 CIO Combined
total
Net assets 5,604,951 - 5,604,951
Represented by:
Unrestricted funds 1,428,993 - 1,428,993
Restricted income funds - - -
Endowment funds 4,449,718 - 4,449,718
Total funds 5,604,951 - 5,604,951

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Document ID: 0213d09cf28902b3c64258efa1f80f7ebac3ceed39504ba790663cf2bd838776