THE WILLATS TRUST REPORT AND FINANCIAL STATEMENTS for the year ended 31 December 2024 Charity no: 202269
Governing document and constitution The Charity was sei up under an Indenture dated 13 November1858 by Mr William Willats. Mr Willals. Corporate TrLEStee Lid is the sole Tnjslee of Mr Willats, Charity. The Charily has the working title of 'The Willats Trust,. The individuals that served as Directors lo Ihe Corporate Trustee during ihe year are detailed below: Directors of the Corporate Trustee The Reverend Roger Driver Colin Sheppard Paul Suller Tim Friend Amanda Noyce (Board Chair and Chair of Granls Committee) (Chair of Property Committee) (Chair of Finance and Investmenl Committee) All appointmenls and resignatlons during ihe year or up to ihe lime of the signing of these accounts have been noted. CEO Paul Taylor Interim Director Anne AnkeiL'II {ConlrdCt ended 31 Augusi 2024) Ftnance Manager Michele Tonner Property Manager Erica Palfreyman Granls and Projeet Mangger Kirsly Brown Principal oifice Basemenl 19 Rivers Stre Bath BAI OAQ Website www.willatstrust.org Bankers C Hoare & Co 37 Fleel Street London EC4P 4DQ Solicitors Thrings 2 Queen Square Bath BAI 2HQ National Westminster Bank plc 24125 Stall St Bath BAI IQS Auditors Saffery LLP St Catherine's Court Berkeley Place Bristol BS8 IBQ Investmenl managers Cazenove Capital l London Wall Place London EC2Y SAU
Mr Willats, Charity TRUSTEES: REPORT for the ycar ended 31 December 2024 OBJECTIVES AND ACTIVITIES Mr Willats, Charity was established in 1858 by its Founder, William Willals, to support Christian workers lo share the good news about Jesus Christ in some of Inosl marginalised communities in England, Wales and Ireland. The Charity principally achieves this by contributing towards the salary of lay pastoral workers {'Guides'} in the forni of grants. To fund the objectives of (he Charity, Ihe Founder created a sizable endowment by bequeathing a significant property Portfolio to the Charity. This is managed by the Charity and the surpluses generated Ihrough investment income are used lo fltnd ihe grants giv¢n to Guides. ORGANISATIONAL STRUCTURE The Charity is governed by a sole 'Corporale Trustee, entitled Mr Willals, Corporate Trustee Limited. The Directors of Ihe Corporate Trustee act as the Trusiees of the Charity. The Board of Directors ("Ihe Board") has delegaied the day-10-day rltnning of ihe Charity to its CEO. The Board nieets regularly lo consider the business of the Charity including the consideraiion of application5 for grants and to receive reports from the Guides and the CEO. who replaced the Interim Director with clTect from 2 Sepiember 2024. APPOINTMENT OF DIRECTORS TO THE CORPORA TE TRUSTEE The Directors who have s¢rved during ihe year, and since the year end, are Sel out on page l. Directors are appointed by the exisiing Board. New Directors are given an induction covering governance, the charitable objectives, 51rategy. plans, budgets and activities. The CEO shares ongoing regulatory infonnation with Ihe Board and other governance matters. AC141EVEMFNTS AND PERFORMANCE 2024 was a transforniaiive year for the Charity. In 2023, four key strategic priorities were idenlified, and we are pleased 10 report sig¥nificani progress in each area. Strengthening Organisatlonal Legdership A significant milestone in our organisational developmenl was the transition from an Inl¢rim Director to a new pern)anent CEO. As an interim, we are grateful for the contributions made by Anne Anketell during the interirn p¢riod. Following an extensive search conducted with an external recruitment finn. we welcomed Paul Taylor as our new CEO in Seplember 2024. Paul brings a profound faith background, strong relaiionships across UK and inlernational church and para-church organisalions, as well as over 30 years of senior strategic busine55 leadership experience. The Direclors have collaborated effectively, ensuring the continuity of the previous development efforts of the Charity by renewing and re-envisioning both the organisation and its work. Rev. Roger Driver has transilioned from Interim Chair lo Permanent Chair. In addilion to these leadership appointments, we have implemented new processes and Syslems to enhance property management and ensure compliance with our landlord obligations. Together with the Directors, Paul's vision and leadership is proving instrumental in re-imagining Mr. Willats, original mission from 1858 for Ihe modern era and optimising returns from our endowment lo better fund our chariiable purpose. Financial oversighi now benefits from the recruilmenl of a pernianent experienced finance manager (Michele Tonner) who is revamping our systems and processes and has improved our management infonnalion. Grants are now managed by Kirsty Brown, who is also looking at new processes to systemise our grant evaluation, make
Mr Willats, Charity TRUSTEES. REPORT (conlinued) for the year ended 31 December 2024 applications simpler for Guides, and provide more meaningful impact repons. Erica Palfreyman oversees the operaiion of our property portfolio day-to-day. including ienant management, coiitractor manageinenl, landlord compliance and building works. Enhancing Financial Resilience Oltr mission is lo fund Ihe expansion of the gospel in ihe Inost deprived communities of England, Wales, and Ireland. Historically, our granl-making, has been financed through rental yields on an endowed property portfol io. primarily Georgian buildings in Bath. Flowever, after careful financial analysis in late 2024, the Directors concluded ihal a trdnsilion to financial market investTnents would significantly increase our tulure grani-making capacity. Key Financial Strategy Decisions.. Transiiion from Property io Financial Investments.. The Directors detemiined ihat divesling a significant portion of the property holdings over Ihe Inedium lerni and reinveslin&p in financial markets through professional fund managers could poteniially double graiil-making over the next decade. 2. Future Market Considerations: Georgian properties are costly to maintain. with nel returns diminishing over lime. Addilionally, regulatory changyes such as the anticipated Renier Reforni Bill will further increase landlord obligations and reduce future nel funds available for granl-making. Property Portfolio Valualion.. A fresh valuation of our properties necessilaled an £8 million reduLiion in book value due lo markei Londition5, higher inleresl rales, and incrcased landlord obligaiions reducin& future cashflows. Despite this lower realisable valuaiion, our financial modelling indicates a subslanlial increase in future granl- makinbj compared 10 retaining the property portfolio. Since the year-end, several properties have been listed for sale or sold subject to contract in accordance with this sirategy. The Directors are Confident thal this approach will enhance long-lenn financial sustainability and enable better luifilinent of our charitable m ission by increasin& granl-making over the next Ihree lo five years, Subject to market perfomiance. Refining Grant-making Strategy Our foundational mission, established in 1858, remains unchanged.. funding evangelists or 'Guides' who bring the gospel lo the most deprived coinmunities. In 2024 and early 2025, Ihe Directors engyagied in extensive prayer, research, consultalion5, and visits to like-minded 8ospel partners lo refine our approach and consider how this foundingi mission should be fulfilled in 2025 and beyond. Key Strategic Outcomes.. Renewed focus on local, Jesus-centric churches in the top 200/0 of deprived communities: We reaffirn)ed thai the mosl effeciive means of evangelism is ihrough deeply embedded, incarnaiional churche5, physically located in the top 200/0 mosl deprived commltnilies, ideally led by indigjenous leaders who authentically connecl with their communities. Vision for 2050: We aspire to see these communities transfornied by the love of Jesus. achieved Ihrough local churches making lifelong disciples who multiply within their Communities. To achieve this, we wanl to prioritise
Mr Willats, Charity TRUSTEES, REPORT (conlinued) for the year ended 31 December 2024 funding more churches fitting ihe above criteria so they in turn can multiply and plant new churches in similar cominunilies. 3. Sirategic Partnerships.. We have deepened collaboralions wilh organisaiions thai share our vision for taking the gospel to ihese communities and will partn¢r with Ihein to help fund leadership development, church planting, and evangelism iniliatives to these communities. Expanded Grant Scope- as well as pastoral workers, our funding now includes support for church planters called lo break new ground in these communilies and evangelism ministry workers to expand existingy oulreach with a view to supporting the multiplication of new cl)urches being planled in the lop 200/0 most deprived coinmunilies over Ihe next l O years. Additionally, we have simplified our application process and developed a new application evaluation matrix to help us discem Ihose people, churches and coininunities where God already seems lo be on Ihe move and lo Inake il easier for potenlial applicants to access our support. Subsequent sections provide further details on our 2024 grant-lnaking activilies. The full impact of our refined straiegy is expected lo be seen in 2025 and beyond. Strengthening Governance and Board Oversight 2024 was a pivotal year for our governing board of Directors, marked by significant decisions, including appoinling a new CEO. retining our grani-making Strategy, and transitioning our investment slraiegy. To enhance oversight and governance, we introduced three new Board committees.. Grdni-making Committee.. Evaluates grant applications in alignment with our strategic mission. 2. Property Committee.. Oversees the strategic exit from our property portfolio over the nexl 5-7 years. Investment and Finance Comm ittee.. Manages financial oversight, reinvestment strategies, and financial processes. Each committee is led by Trustee5 Wlth relevant expertise, ensuring strong governance and accounlability. Looking ahead lo 2025, we will conlinue lo assess our governance structure and seek additional Directors for the Corporate Truslee as required who bring strategic kingdom connections, prayerful insights and relevant skills io support our mission of serving the Inost marginalized communities in England, Wales, and Ireland. Through these strategic developments, we remain steadfasl in our commitinent to advancing the gospel and cooperatii)g with the Holy Spirit lo see increasing kingdom impact iE] Ihe cominunilies we serve. We are grateful for Ihe continued guidance of God and how his mercy and love spreads and transfonns communities, the faithful and sacrificial service of so many grantees wc have the privilege of supporting, the dedication of our team, and ihe wisdom, collaboralion and counsel of our partners who share the same vision lo see the most marginalized communities in the UK and Ireland trdnsfornied by ihe love of Jesus.
Mr Willats, Charity TRUSTEES" REPORT (conlinued) for the year ended 31 December 2024 The day-to-day operations of the Charity The Charity's Grant Making Aetivities In 2024, our grant-making programme provided £469,540 {2023'. £478,000) in funding, supporting 48 Guides across England, Ireland and Wales, as ihey worked to bring the Gospel Inessa&ie of hope and Iransformalion lo soine of the country's mosl margFinalised communilies. This included £141 k awarded in 2024 to14 new Guides, alongside continued support for 34 existing Guides, reinforcing our long-lem) commitment to sustaininby impactful ministries. Our funding reached organisations engaged in prison ministry, community outreach, sports ministy, family support, and debi counsel ling), ensuTingJ a broad yel deeply targyeted approach lo evangelism and social action. True to our mission. w¢ priorilised Ihose working in areas of significant deprivation, with our Lyrants in 2024 directed lo Guides based in coi)Imunilies ranking in the lop 5 % of the Indices of Multiple Deprivation (IMD). Grants were distributed across Bimiingham, Manchester. Norwich, London, Hull, Barnsley, Hartlepool. Liverpool, and Sloke-on-Trent, supporting work in neighbourhoods with Ihc highest levels of poverty. as well as among vulnerable groups such as prisoners, refugees. and asylum seekers. Each grant was awarded for a period of three years, with funding attached to individual salaries with award amounls between £2,000 and £15,000 per year, ensuring thal Guides could reinain embedded in their communities and continue their vital work without the conslani pressure of securing additional fundin8. We remain committed to building and strengythening partnerships with the org)anisalions we support, ensuring our grants create the g7reaiest possible impact and align wilh our long>.lemi funding slratcgy. Working with eslablished organisalions, we endeavour lo ensure thal our funded Guides receive the support, oversight and menloring they need to Ihrive in their roles. In 2024, 640/0 of our grants were awarded to churches, reflecting our core belief that the church is God's primary vehicle to bring Ihe hope of Jesus and his transfonnative power lo their communities. The remaining 36 % supported para church charities and volunlajv groups, often bringing their specialisl skills lo the wider body, broadening our reach ai)d enabling trdnsfonnalive work in diverse cominunity settings. Through these pannerships, we share the hope of Jesu5, Strengthen local leadership, foster suslainable ministry. and ensure thal our funding 15 used effeclively to make a lasiing difference in the cominuniiies Ihey serve. The Charity's Properties The Charity owns a portfolio of Georgian listed residential properties in Bath, a UNESCO World Heritage City, alongy with a small number of commercial properties. The properties continue to provide an income for the Charity to support its Guides. Given the geographical location of Ihe properties, they require considerate, careful and sympathetic planned maintenance and refurbishment. Consequently, for reasons noted above, a strategic decision has been laken to exil a significant part of our residential property portfolio over the coining years as we foresee diminishing future return5, which left unchecked would inhibit our ability to maximize grant-making from the assets under our stewardship. There reinain soine residential propertie5 that need refurbishment and modemisalion before they will be able to be lei ai their full market rent or sold, and a decision will be made on a case-by-case basis on wheiher it is optimum to refurbish or sell. The previously agreed sale of a property in St James Square completed during 2024. £570k was spent on property repairs in 2024 as part of the long temi planned preventative maintenance programme resulting from the commissioned review in 2023. Ensuring Building Safety is a key consideralion for the Charity. The safety of our customer5 in their homes continues lo be of Ihe utmost importance 10 us. We continue to comply with all relevant legislaiion relating to Building Safety. In 2024, new software was installed to better facilitaie our compliance certification and reporting.
Mr Willats, Charity TRUSTEES, REPORT (L'unlinue for the year ended 31 December 2024 FINANCIAL REVIEW The Charity's work is entirely relianl on income and investment relurns froTn ils endowmeni fund. which is predominantly. invested in residential properties in Bath. Only investment income is used to deliver chariiable objectives. No fundraising activilfftes were condu¢led, and no external funds have been received in this accounting period. Before accounting for inler-fund transfers and asset revaluations, the Charity made an unrestricted deficit of £53,029 (2023.. surplus £215,032) in the year. This year-on-year movemeni froin surplus 10 deficil was primarily due to significant roof and window refurbishment works in 2024 on two listed properties which did nol couni as capilal works and consequently charged lo income. No Iransfers were made to Ihe endowment fund (2023.. £26,296). After accouniing for transfers and Ihe revaluation adjustment. an overall unrestricted deficit of £158,031 was recorded in 2024 (2023.. surplus of £188,736). Unrestricled funds are reported as 3 amoun15-. unrestricted, designated.. fixed assets, and designated.. early end grants. Note I gives an analysis ofil)e split across these elements, along with a prior year coinpari50n. With the slraiegic decision to move away from property and towards financial investsnents, an interim property valualion was undertaken al the year-end dale based on the most recenl sale of the Si James Square property which. while meeting the section 119 lest, was sold below caryingy value. The oulcoine of this December 2024 interim valuation identified that Ihe Cuent market value of the portfolio was below the valuation undertaken in 20?3 by £8,014.796. This downward revaluation has thre¢ main causes.. Three of the commercial property valualions undertaken in 2023 were incorrect. resuliing in a prior year downward resiatemenl of £1,473,500 10 reduce tl)e valuaiioii. The valuaiion report of 2023 valued the properties on Iwo scenarios.. one based on value of properties as individual fla(dwelljng7s within a single building, and one based on selling Ihe single building as a whole block coinprising multiple flatdwelllngS ("block value"). Given there was no inlention to sell properties in 2023, Ihe accounts adopted the valuation based on the suin of the individual Ilals. However, now the decision has been taken lo exit, professional advice indicales Ihe optimum exit strategy will be to sell entire blocks as the complications of managing multiple tenancies, Inultiple flat sales with multiple buyers, and the profe55ional fees and resources required lo deliver this will be lime-consuming and expensive. Consequently. adopiiiig this block value meihodology and adjusting the 2023 valuation lo reflect this gFive5 rise lo a further write down of £2,542,500. The final adjuslmenl is due to Inarkel changes, including the slate of the rental markel. poiential forthcoming landlord legislation and higher interest rates, which have depressed current valuations. This has resulted in a further write down of £3.998,796. Note 4 give5 further details, and this is ihe primary cause for the overall reduction in the endowment nd value al the end of 2024. The endowmeni fund brought forward ai the slart of the year, after being restated for the prior year commercial property valuation adjustmenL was £35,451,801 (2023- £36,924,275). During the year the endowmenl fund recognised a deficii of £6,549,699 (2023 reslated.. deficii £1,472.474). The deficit sustained in both year5 was due lo a reduciion in the valuations of the investment properties held by the endowment fund, following an inlerim valuation perfonned by Carter Jonas. This movement for the year was added to the brought forward funds lo give a total Carried forward year end endowmenl fund of £28,902,102 (2023 as restated.. £35,451,801). The total reserves Caled forward at the year-end amounied to £29,584.668 {2023 a5 reslated.. £36.292,398). INVESTMENT POLICY AND PERFORMANCE The investment powers of the Board are governed by the Trust Deed, as amended. The Charity holds a small stock market investment portfolio managed by Cazenove. The Board seeks lo obtain a balance in Income return and capital growth from ihe Charity's quoted stocks and shares.
Mr Willats, Charity TRUSTEES. REPORT {c'onlinued) for the year ended 31 December 2024 Considering benchmark indicalors, the Board is satisfied with the perforniance of the stock portfolio during the year which resulted in Ihe portfolio achieving realised and unrealised gains of £52,922 {2023.. £29,664}. Dividend income was in line with expectations. See nole 5 for more details. RESERVES POLICY The Board has agreed ihal ihe long-lenn goal is io maintain free unrestricted funds al a level that equates to approximately three lo six monihs of expenditure. This is deemed appropriate given ihe risk of significant unanlicipaled or planned maintenan¢¢ property-related expenditure and landlord compliance obligations. This decision was reached on the basis that this level of reserves will provide sufficient funds tor ihe Charily lo meet ils obligations to staff, contraciors and beneficiaries ai any given point in lime. The Board considers ihat this level of free reserves is generally sufficient given the regular and reliable income receivable from Ihe rental of lei propertie5. However, in the short-lerm as we seek to exii ihe property Portfolio, the Board is aiming to operate at Ihe higher end of Ihis reserves range to Iniligate renlal income uncertainty as we anticipate more tenancy voids beeen lisling the property and eventual completion of sale. as well as increased professional costs as we exit the portfolio. Based on the expenditure in 2024, costs for ihree months amount to £384k. The balance held in unrestricted funds ai the end of the yeiir was £682.566. After deduclinb desigynaled funds of £63,303 in relation lo the fixed assels and designated fund £108,664 in relation 10 early end granls (see nole I i } the Charity holds free reserves of £510,599 whicli meets Ihe targel set out in lis reserves policy (£384k lo £768k). PUBLIC BENEFIT Under the iernis of tlie governing document the ¢harilable objectives of the Willats Trust are 10 support Christian Workers to share the good news aboul Jesus Christ in some of the mosl marginalised communities in England, Wales and Scotland. The Board Directors confinn they have referred to the Charity Cominissions guidance on public benefit when reviewing the Charity's aiins and objectives, in setting grdnt making policy and in planning how future activities will contribute lo the delivery of the aim5 and objectives. The funding of Ihe work of the Guides enables people living in areas of deprivation lo live out their faith. sharing the gospel with those in tlieir cominunity, and helping oihers come lo know Jesus. The Guides do thi5 by spending a proportion of their time directly undertaking evangelism, missionary and outreach work in the context of safe and respecttul relationships and being embedded in the communities they serve. As well as this work Guides use their activity lo gjive Ineaning and purpose to the lives of people in underserved areas by providing pastoral care, comforting those in need and, through their employing churches or charities, providing practical support and care to meet the immediate needs of people living in those communities. GRANT MAKING POLICY All grants are reviewed by the Board annually lo monitor whether each Guide continues to fulfil the requirements of the Charity. Applications for granls will only be considered by the Truslees if they are in receipt of correctly completed applicalion forms. Applications are evaluated using a range of criteria which ensure we are meeting our charilable objectives. including measures of deprivation for the community under consideration, type of work being undertaken, previous track record of siinilar work, expected impact and scrutiny of plans and budgets. All grants are awarded subject to finances perniitting and the Board reserves the right lo withdrdw a grdnt al any lime without notice. All new grants are awarded for a maximum period of three years. At the expiry of the three years, the organisation who has sponsored the application may not make a further application in respect of the same person, within 12 months of the previous grant expiring. There has been a continued ernphasis on making grants to organisations (who are registered charities) who minisier to the "lowesl undpooresl members ofsociety" The Board continue5 to keep the Charity's grant making activities. how we achieve
Mr Willats, Charity TRUSTEES: REPORT (conlinue for the year ended 31 December 2024 our overall charitable objeclive, under review to ensure ihai our grdnt making strategy 15 current lo the needs of these communilies in 2025. RISK MANAGEMENT The Board manages risk faced by The Willats Trust through our risk manageinenl framework, which is continually being reviewed and adapled io remain effective in the increasingly uncertain world around us. The Board reviews principal risks to ensure they continue lo represenl the most significani risks to the Charity and ensure Ihey are managed effectively. Principal Risks Risk Miti%#ting Actions Investment policy developed. Investinenl policy defines the right blend of investinenl. Reserves policy developed. Targels set for rent collection, voids and arrears. Revised financial strategy lo build a more balanced and diversified portfolio of investmenls. l O year planned prevenlative mainienance pro&yramme (PPM) in place. Year l of PPM delivered in 2024. Properties requiring niajor repairs/ refurbishinenl identified and options appraisals caTried out. Contractors in place for compliance work. Source and implement digital plaiforni as compliance managemeni tool. Monitoring regime in place. Insufficient income and reserves for the Charity lo achieve its slrategic objeclives Over relianc¢ on a single asset class lo generdle income. The quality of the Charity's property ponfolio declines because of the increasing costs of mainlaining it. Failure to ¢lTeclively manage the risks associaied willi ensurinLF the Charity's properties are compliant wilh Buildinb, Safety ReLFulalions. PAY POLICY FOR KEY MANAGEMENT STAFF The Board considers that the operational leads - Ihe CEO, the Property Manager, the Grants and Projects Manager and Ihe Finance Manager are the Key Per.i'()nnvl of ihe Charity in chargFe of directinb> and controlling, running and operating the Charity on a day-to-day basis. Supplementary professional support is provided when required by contractors. The Board Director5 give their time freely and no Board Direcior received remuneration in Ihe year. The pay for all staff is reviewed by the Board annually. The salaries of the employees may be increased in accordance with averag¥e salary increases nationally and those within the charity sector. RELA TED PARTIES None of the Board Direclors receive remuneration from their work with the Charity. The Charity does repay expenses inCued by the Direciors during the fulfilment of their role as Directors. Further details of transaclions with related parties can be found in note 12.
Mr Willats, Charity STATEMENT OF THE CORPORATE TRUSTEE'S RESPONSIBILITIES The Board is responsible for preparing the Truslees, Report and the financial statemenis in accordance with applicable law and Uniled Kingdom Accounting Standards (United Kingdom Generally Accepted Accounling Practic¢}. The law applicable lo charities in England and Wales requires the Board io prepare financial stalemenis for each financial year which give a true and fair view of the state of affairs of the Cliarily and of Ihe incoming resourLes and application or resources of the Charity for Ihat period. In preparing these financial stateinenls, the Board is required io.. select suitable accounting policies and Ihen apply them consistenily. observe ihe meihods and principles in the Charilies SORP; make judgments and eslimate5 thal are reasonable and prudent; stale wheiher applicable accounting standards have been followed. subject io any malerial departures disclosed and explained in the financial slaleinents, and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity wtll continue in business. The Board is responsible for keeping sufficient accounting records thai disclose with reasonable accuracy at any lime the rinancial position of Il)e charity and enable it to ensure that the financial statements comply wilh the Charities Act 2011, Ihe applicable Charity (Accounls and Reports) Regulations and the provisions of the Trust Deed. li is also responsible for safeguardingy the assets of ihe Charity and, hence, for laking reasonable Steps for Ihe prevenlion and deieciion of fraud and other irre&7ularilies. The Board is respoi)sible for the mainienance and integrity of the Charity and financial infomiation included on the Charity's website. Legislation in the United Kingdom goveming the preparation and dissemination of financial statements may differ froiii le&)islaiion in other jurisdiciions. Approved by the Board on IOJL1 2015 Sigyned by order of the Board: v'dRD Iver Chair of the Board
INDEPENDENT AUDITOR:S REPORT TO THE MEMBERS OF MR WILLATS: CHARITY OPINION We have audited Ihe financial slatem¢nls of Mr Willals, Charity for the year ended 31 December 2024 which comprise Sialement of Financial Aciivities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements. including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and Uniled Kingdom Accounting Standards, including Financial Reporting Standard 102, the Financial Reporting Siandard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial slaleinents- give a tnJ¢ and fair view of lh¢ stale ofihe Charity's affairs as at 31 December 2024 and of ils incoming resources and application of resources for the year then ended; have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and have been prepared in accordance with the requiremenls of the Charities Acl 2011. BASIS OF OPINION We conducted our audil in accordance wilh International Siandards on Auditing (UK) (ISAS (UK)) and applicable law. Our responsibi lilies under those standards are funher described in the Auditor's responsibilities for the audit of the financial statements seclion of our report. We are independeni of ihe charity in accordance with ihe ethical requirernenls Ihal are relevanl lo our audit of the financial siaieinents in the UK. including the FRC'S Ethical Standard, and we have fulfilled our other ethical re5ponsibililies in accordanLe with these requireinenis. We believe that the audil evidence we have obiained is sufficienl and appropriate to provide a basis for our opinion. CONCLUSIONS RELATING TO GOING CONCERN In auditing the financial slalements, we l)ave concluded that th¢ Trustees. use of the going concern basis of accounting in the preparaiion of lh¢ financial sialeinents is appropriate. Based on the work we have perfornied, we have not idcntified any material uncertainties relaiing lo events or conditions Ihal, individually or collectively, may casi significant doubt on the charity's abilily lo continue as a going concern for a period of al least twelve monihs from when the financial statements are auihorised for issue. Our responsibilities and the responsibilities of the Trustees with respecl to going concern are described in the relevant sections of this report. OTHER INFORMATION The other informalion comprises the inforniation included in the annual report, other than the financial slatemenls and our auditor's report ihereon. The Trustees are responstble for Ihe other information. Our opinion on the financial statements does not cover the other information and, excepl to the extent otherwise explicitly staled in our report, we do not express any forni of assurance conclusion thereon. Our responsibility is to read the other infonnaiion and, in doing so, consider whether the other infornialion is maierially inconsislent with the financial staleinents or our knowledge obtained in the course of the audit or oiherwise appears lo be materially misstated. If we identify such material incon515tencies or apparent maierial misstatemen15, we are required 10 deterniine wheiher Ihis gives rise to a material misslaleinent in the financial slalements Ihem5elves. If, based on the work we have perfornled. we conclude Ihal there is a material misstatement of thT5 Other information- we are required to report Ihal faci. We have noihing to report in this regard. 10
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MR WILLATS, CHARITY (CONTINUFD) MA TTERS ON WHICH WE ARE REQUIRED TO REPORT B Y EXCEPTION We have nothing lo report in respect of the following rllarters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to repon lo you if, in our opinion.. the infornialion given in the Trustees, Annual Report is inconsistent in any material respect with the financial stalemenls,. or the charity has not kept sufficieni accounting records; or the financial slalements are not in agreeinenl with Ihe accounting records and returns. or we have nol received all the infonnation and explanations we require for our audit. RESPONSIBILITIES OF THE TRUSTEES As explained more fully in the Trustees. Responsibilities Sialeinenl sel out on page 9, Ihe Trusiees are responsible for the preparation of the financial slaleinenls and for beingF saiisfied that they give a true and fair view, and for such internal control a5 the trustees detennine is necessary to enable the preparation of financial statements that are free from material misslatemenl. whether due to fraud or error. In preparing the financial slatemenls, the Trustees are responsible for a.%sessing the Charity's ability lo Continue as a going concern. disc105ing, as applicable, mallers related to goingi concern ai)d usinLF the goin&) concern basis of accout7tinL) unless the Trustees either intend lo liquidate the charity or lo cease operations. or have no realistic allernalive bul lo do so. AUDITOR'S RESPONSIBILITY FOR THE AUDIT OF THE FINANCIAL STA TEMENTS We have been appointed as audiiors under the Charities Aci 201 l and report in accordance with regulations made under that Act. Our objeclives are lo obtain reasonable assurance about whether the financial statements as a whole are free from material misstateinenl, whether due lo fraud or error, and to issue an auditors, report that includes our opinion. Reasoiiable assurance is a high level of assurance bui is not a guarantee that an audit Conducted in accordance with ISAS (UK) will always delect a maierial misslatemeni when il exisis. Misslaiements can arise from fraud or error and are considered maierial if. individually or in the aggregate, they could reasonably be expected lo influence lh¢ economic decisions of users taken on the basis of these financial siatemenls. Irregularities, including fraud, are inslances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to delect material mi.8slalements in respect of irregularities, including fraud. The specific procedures for this engagement and the exienl to which Ihese are capable of detecting irregularilie5, including fraud are delailed below. Identifying and assessing risks relaied to irregularities.. We assessed the susceptibility of the charity's financial slalemenis to material misslatemenl and how fraud might occur, including through discussions with the trustees, discussions within our aLtdil learn planning meeting, updating our record of intemal controls and ensuring these contro15 operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial staiements. We identified laws and reg?ulations thai are of significance in the context of the charity by discussions with trustees and updating our understanding of the sector in which Ihe charity operates. Laws and regulations of direct significance in the context of the Charity include the Charities Act 2011, the Charilies (Accounts and Reports) Regulations 2008 and guidance issued by the Charity Commission for England and Wales.
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MR WILLATS, CHARITY (CONTINUED) AUDITOR'S RF.SPON.SIBILITY FOR TIII-' AUDII. OF THE FINANCIAI. STATEMb.NTS (Lontinued) Audii rLsponse lo risk.s ideniified.. We consid¢red lh¢ exten( of compli4inLL with these laws Étnd regulations as part of our 4udil pruccduTcs on the related IiTTrancial.%lat¢ment it¢ms inLluding d rcvicw iTrf Iinancidl slaicmenl disLlo¥ures. WL rcviewcd thc chdfiiy s records ofhredche. ol. law's and rcgulations, minuiLS ol- mceling5 Kind LorrespundenLf with rLlev¢Lllt duthoriiics to ideniilv p()tLlllial maierial mi5StaiLmenis arising. We disLU.%SLd ihc chariiy'b policies and proLLdures for LomplianLe with laws and rLgulJiions wilh mlmhers ofman41gcmeni rL'sponsihl¢ for complian¢¢. Duriny ihe planning rnectin '1th Ihc audii tcam, Ihc L'ngag¢mLrii partner drew Jiieniion to (he key arcas which mighi involve non-compliance with laws Jnd rLgulation.% or Irdud. WL ¢nquirLd i)I' manageinLnt whLthcr they iVLri aware af dlly in.%lances I'non-Lumpliancc with lam's and rLguldliun.s or knawlLdg)c ol'any actual. SUSPCCled (Ir all¥ged frdud. II'L addr¢ssLd ihL risk of fraud Lhrough man&igLment OV¥rridc of eonirols by ILsiing thL llpprupriatL'ncss Dr journdl ¢nlri¢s Jnd iden¢ifying an}, sig>niftcani Iran.saciii)ns thdl wlrc unusual or outstde ihL normal course ol. husin¢ss. WL a5SLsscd M,hcthLr judgcmLnts made in making aLLOUllting Lslimdies gav¢ risc iu a p.Sible indicaiion ol'm4nd¥¢mLnt bids. Ai the ¢umplL(inn %lagL nf thL 4iudii. thL en¥a&)LmLnl partncr's rL'viLw tncludLd Lnsuring Ihai IhL tL'dm h(Id dpproachLd ihL'ir work '1th dppropriulL profe.%si(?nal sccptiLi5m and thu.s ihe LapiLCIIy lo idLniily nnn-ci)niplianL¢ Ivlth and rLgulatiJn& and fraud. I'here arc inhercnt limitations in th¢ audit proecdure.s dc.SLrih¥d aknvc and th¢ furthLr rLmiTrved non-L(Implidnce %%'iih laiv5 nd rcgul(Itii)ns is from the events and Iru115UCii()ns refl¢LtLd in thi linanLial SluiLments. thc Ic%.% likL,l)' M'c wuuld bLL()m¢ awdrc ()r ii. Al%(). Ihe ri&k- ol. n()t dLILLling a mulLrial mik%taiLmenl duL (11 fraud 1.4 higlier Ihdj? IhL ri.%k ofniii dLlcLtin&y ()nc rvsLil1in from Lrry)r. Iraud mily invi)Ive d¥libLfdlc coniL'iilmcni by, lor example. fiJr8cry or inicnliunal mi5rL'preK'nldtions, or through collusion. A furthcr dcscriplion 4)I'our resp(Jn4ibilitlL.S is availabl¢ ilic FinanLial RLPlTrrtiiig C'oui)Lil's ive&sii¢ ai.. kl es 11.%ihililiL.%. 'I'his dc.SLfipiiiTrn l()mJ4 P¢in (?l-iiiir dudiiiir'.% rcp(prt. li%e ofour report Thi5 rcpiirt ib madc wlely (o IhL C"hJriiy'.% Tru51LLs. a b(?d}'. in u¢L()rd(C iviih l>art 4 uf Ihe LhariiiLs IALLoun¢b #nd Rcp(TrrL%l RLbJulaiion% 2008. ()ur audrl Ork lia4 k.Ln undLrtakLn %() that mighi siatL lo IhL -I'ru.%lLLS 111(IsL' nidllLr.s w¢ ar rL'4uif¥d io.stdlL (o thLm in an audil(Ir'% rn'p(irt dnd l()r no Iithir purposL. 'I"() IhL lullesi ¥x(Lnt P¥nnitied by luNN. WL di) noi dCCLPi or &%.sumL rc%piinsihilit}' lo anyoriL OtIILr tl)an the Lhari(y and thL l-nJslLLS &% a bod).. Inr our audii ifvork, f()r thr.% rL'pofi. or for thc upiniun% ivL havi r()m)Ld. S&& LL 4ffer)' l.l.P 141uivri Audilors St Caiherine .8 Coun IILrkLILV PIucL B.S8 114Q Dale.. Z4 Jknl l(JL5 Saffcry LLP is eligtble ¢0 ac( as dn audiior under thc tcrnis ol'seclion 1212 of the Compantes Acl 2006. 13
Mr Willats, Charity STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 December 2024 Total Total (as reslaled) 2024 ?023 Note Unrestricted Endowmeni Funds Funds Income and endowments from: Investmeni property income Other inveshneni income 1,365,468 118,453 1,365,468 118,453 1,364,651 40,888 Total income 1.483,921 1,483,921 1.405,539 Expenditure on: '()s'1 ofi'uiJ'inxf14nd.s.' Lei property expenditure Investinent management fees 1.050,355 1.050,355 5,216 680,360 4,934 5.216 Eypendilurg Lhai'iiahlc acliviliej.. Granls for parish Guides 486,595 486.595 510,147 Total expendilure 1,536,950 5,216 1,542,166 1.195,441 Loss on disposal of fixed assets Unrealised s>ainsl{losse5) on revaluation of fixed assets Unrealised giainsl(losses) on revalualion of investinvni Properties Realised loss on sale of investment properties Nei gainsl(1055es) on stock market investments {2) (105,000) (2) (105,000) (6,541,296) (6,541,296) (1,523,500) (56,109) (56,109) 52,922 52,922 29,664 Net income/(loss) on ordin8ry activlties before transfers Transfer of funds 10 (158.031) (6,549.699) (6,707,730) (1.283,738) Nel ineomel(loss) on ordinary activities (158,031) (6,549,699) {6,707,730) (1,283,738) Rec'oncilialion offund.s Funds brought fonvard 840,597 35,451,801 36,292,398 37,576,136 Funds carried forward 682,566 28.902,102 29,584,668 36,292,398 The Charity has no recogni5ed gains or losses other than the results for ihe year as set out above. All of the aclivilies of the Charity are classed as continuing. See note 15 for fund accounting comparative figures. The noles on pages 16 to 30 forn) part of these financial statements. 13
Mr Willats, Charity BALANCE SHEET as at 31 December 2024 20?3 (as resthted) Notes 2024 Fixed assets Tangible assets Investment property Oiher investmenis 63,303 25,715,000 643,211 160.455 34,856,296 595,505 26.421.514 35,612,256 Current 8ssets Debiors Cash ai bank 123,105 4,047,182 141.571 1,510,948 4,170,287 1.652,519 Creditors: omounls falling due Ivithin one year (740.790) (668,335) Net current assets 3,429,497 984,184 Credltors: amounts falling due after more than one ye8r (266.343) (304,042) Total nel assets 29.584,668 36,292,398 Funds: Endowment funds 28,902,102 35,451,801 Unrestricted funds General Designated.. fixed assets Designated: early-end grdnls 510,599 63,303 108,664 644,226 160.455 35,916 29,584,668 36,292.398 The notes on pages 16 to 30 forni part of these financial statemenls. The financial statements on pages 13 to 30 were approved and authorised for issue by the Board of Trustees on lo JL I 1015 and signed on its behalf by: Rev'd R Driver Chair of the Board 14
Mr Willats, Charity CASH FLOW as at 31 December 2024 2023 2024 (as restated) Notes Nel cash inflow from operating activities 16 (115,942) 290,221 Cash llows from investing aetivities: Inveslmenl income received 118,453 40,888 Cash flows from financing aetivities: Expenditure on invesinieni properties Expenditure on tangible fixed assels Proceeds from the sale on investment propety (26,296) {3.522} (10.168) 2.543,891 Change in cash and eash equivalents in Ihe year 2,536.234 301,291 Cash and eash equivalents brought forward ,510,948 1,209,657 Cash and Cash equivalents carried forward 4,047.182 1.510.948 The notes on pages 16 10 30 forni part of these financial statements 15
Mr Willats, Charity ACCOUNTING POLICIES for the year ended 31 December 2024 Basis of aceounling The financial slatemenls have been prepared under the historical cost convenlion as modified for inve5tm¢nt assets (see below) and in accordance with the Charities Act 201 I, the Financial Reporting Standard 102 (FRS102) and ihe requiremenis of the Charilies Statement of Recoinmended Praclice (FRSI 02) based thereon. The accounts have been prepared under the historical cost convention wilh items recognised al cost or transaclion value unless othenvise stated in the relevant notes to these accounts. The financial slatements are prepared in sterling. which is the functional cUencY of Ihe charity. Monetary amounts in these financial statein¢nls are rounded lo the nearest £ l. The Charity is a public benefit entity as defined under FRS102. There are no material uncertainlies affeciing the ability of the Charity to continue as a going concem. Please refer lo the Reserves Policy section of ihe Truslees Report. the charity is deemed to have sufficienl reserves to meel ils obligations as they fall due. Fund stryclure The Charity has a pemianenl endowinent Ihat was eslablished by Mr Willals when he created Ihe Charily through the gifting of a si&?niticanl number of properties to the C harity. The endownienl funds are invesied in perpetuity and the majority of those fund5 remain invested in propenies thal fomied part of the original portfolio gifted by Mr Willais. The income arising on the endowment fund can be used for the generdl aclivities of the Charity and are, therefore. unrestricted tunds. Unrestricted income funds Comprise those funds which the Charity is free 10 use for any purpose in turtherance of ils charitable objecis. In 2023 the Board Direclors created Iwo new desi&ynal¢d funds- one which represents ihe value of the fixed asset funds as these funds do not form part of the free reserves of the Charity and one which represents the value of grnnls previously awarded bul ended early 10 enable these funds lo be eamiarked and added as addiiional grant fundingy available for distribulion in subsequent years, over and above budgeted grant expenditure. Income All income is recobinised once the Charity has enliilement to the income. there is sutyicient certainty of receipt and so il is probable that the income will be received, and the ainount of the incoine receivable can be measured reliably. Rental incoine is recognised in the month thal il falls due. Unpaid rent is accounted for in debtors and any rents received in advance are accounied for as defeed income. Dividend income is recognised when it has been received by the Charity's fund manager. Expenditure Liabilities are recognised a5 expenditure as soon as there is a legal or constructive obligation committing the Charity to that expenditure. it is probable that settlement will be required, and the amount of the obligation can be Ineasured reliably. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cosls relating to the category. All expenses are either apportioned or directly allocated to the applicable expendtture headings. For more inforniation on this allocation refer to 'allocation of support costs, within the accounting policies. Grdnts for parish Guides are payments made to third parties in the furtherance of the charilable objects of the Charity. The majority of the grants awarded are mulii-year grants and these are recognised in full when the commitment is iniiially Inade. Although there are certain conditions ihal could arise which would forfeil a beneficiary's right to future grants, habitually, mosl beneficiaries meet all required Criteria. For this reason, it was agreed thai Ihe Charity would recognise future granl commitments. 16
Mr Willats, Charity ACCOUNTING POLICIES (conlinue(4 for ihe year ended 31 December 2024 Fingncial instruments Debtors and creditors receivable or payable within one year of the reporting date are carried at iheir trdnsaclional pric¢. Debtors and creditors that are receivable or payable in more than one year and not subjecl to a markel rdle of interesl are measured ai ihe present value of the expected future receipis or payments, discounted ai a market rate of interest if the impact is material. Cash and cash equivalents Cash and cash equivalenls include cash ai bank and in hand and short-tem deposits wilh a maturity date of l 00 days or less. Allocation of support eosls Expenditure caiegorised as support costs are those costs thal are noi directly attributable to the applicable expenditure headings. They include the following cosis: Audit and accounlancy Slafr costs CEOllnterim Director All of these costs have been apportioned to the applicable expenditure headings based on an analysis of iiine spent by the individuals and the professional advisors in relalion lo those areas of work during the year. Other costs relating 10 the Thnning of the office and governance are calegorised as adminisiration costs and these are also apportioned lo Ihe applicable expendilure headings based on an overall assessmeni of the lolal lime spenl in relalion to those areas of work by the key managFement personnel. Full details of the allocation of cosls can be found in Note 2. Costs of r¥ising funds The costs of raising funds consist of let property repairs and maintenance and professional fees in respect of ihe properties. li also includes investment management fees in respecl of ihe investments held. Pension costs The Charity complies with the Government's requirements in relation lo auto-enrolmenl and contributes to a fund thai Ineets all necessary criieria. Duringy the year ihe Charity made conlribulions to Ihis defined contribution money purchase scheme. The assets of the scheme were held separately from Ih05e of the Charity in independently administered funds. The pension charge in the accounts represents employer's contribulions payable by the Charity lo this pension fund arnounting lo £4,280 (2023: £2,537). There was no oulstanding contribution due at the year-end (2023.. nil) in relalion to Ihis pension fund. The Charity also makes contributions to private pension funds for certain employees. The pension charge within the accounts represents employer's contributions payable to these pension funds amounting lo £2,731 (2023.. £928). The total of the employee's and employer's pension liability in relation to this pension fund amounted to £1,413 (2023: £3,557) at the year end.
Mr Willats, Charity ACCOUNTING POLICIES (Cnnlinued) for the year ended 31 December 2024 Tangible fixed assets Freehold property is recorded al market value and regularly revalued for thal purpose. Other fixed assets are initially recorded al cost and written off over their esliinated useful life. Purchases of items relating for niilure & fiiiings of rental properties are generally of an immaierial value and are expensed when purchased. A separate inventory of these items is maintained and checked regularly. The deprecialion rates applied were as follow5.' ol¢e equipinenl - 200/ts Straight line Website- 250/0 Straight line Capiial purchases in excess of £ 1,000 are treated as fixed assets. Critlcal accounling judgements and key sour¢¢s of estimation uneerlainty In preparing financial staiement5 It is necessary lo make certain judgements, estimates and assumptions that affect the amounts recognised in the financial slateinenls. The following judg?emenls and estimates are considered by the Board 10 have most significant efTecl on amounts r¢¢ognised in (he financial siatemenls.. Investmeni property valuations The Charity has a large property portfolio whicli is held for the purposes of rental incoine and. as such. is classified as investinenl properties. The fair value is as5e55ed annually by the Board, further details on how the fair valuc is assessed is noted in note 4 of these accounis, ' Inveslineni Properties.. Investment property is noi depreciated because the Board have adopted a revaluation policy in relation to Ihis assei. The property will be professionally revalued every 5 years, and the value of the property will be adju51ed as necessary following this revaluation. A full professional revaluation of the properties held by the Charity was conducted in July 2023. This was conducted by Csquared, Baih in accordance with RICS Valuaiion - Global Standards, effective 31 January 2022. The Trustees have agreed that belween professional revaluaiions. interim desktop revaluation5 would be undertaken either in-house or Ihrough consulialion with an appropriaiely qualified professional individual. If Ihere is soine indication that revalualion has Occued. the carying value of the property would be updated in accordance with that review. Note 4 gives more infom)aiion about the impact of an interim deskiop revaluation iinpaciing on the 2024 financial slatemenls, detailing the basis of the cu]Tent year revaluation and prior year reslatement that arose from this. Investment assets Prnperiies.. The Charity's investment properties are carried forward al market value, as noted in the previous section. Any cost of work carried out on improvemenls which give rise lo future economic benefit5 15 capitalised at cost. Oiher iwe.slingnis.' These are shown in ihe balance sheel at middle market value. Realised and unrealised gains and losses Gains and losses on the sale of property and inveslments in excess of the brought fonvard valuation are treated as realised gain5 or losses and are credited or debited to the Stalemenl of Financial Activities. Unrealised gains or losses arising on the revaluatTon of properties and investment5 are Credited or debited to the Statement of Financial Activities. 18
Mr Willats, Charity NOTES TO THE ACCOUNTS for the year ended 31 December 2024 Grants for parish Guides 2024 2023 Nei grant cosl of grants awarded in the year 377,252 442.084 Cost allocation Salary cosls= CEOllnterim Director Salary costs.. other staff Audit, Accountancy & valuation fees Administration costs 30,090 38,142 9,324 31.787 8,714 25,355 10,998 22,996 Toltil cosls as stated in the SOFA (see note 2) 486.595 510,147 Reconellia¢ion of gr8nt commitments New grants awarded for parish Guides in the year Re-distribution of early-¢nd grants Repaymeni of previously awarded grants lo Guides (see noie I l ) 450.000 19,540 (92.288) 478,000 (35,916) 377,252 442,084 Commilmeni brought forward al the start of the year Paymen15 made lo Guides during the year 597,709 (395,442) 457,792 (302,167) Coinmitmenls caled forward al the end of the year 579,519 597,709 Split of commitments carried fonvard.. Grants for parish Guides due within one year (see note 7) Grants for parish Guides due in greater than one year (see note 8) 313.176 266,343 293.667 304.042 579,519 597,709 All grants were paid to institutions who act as interniediary grant recipients on the basis thai the granls paid were lo support ihe employmenl costs ofspecific individuals acting as Guides whilst fulfilling their ministy. 19
Mr Willats, Charity NOI'ES TO TIIE ACCOUNTS (conlinued) for the year ended 31 December 2024 Tolal expenditure 2024 Salary Salary Audit & Costs.. Costs-. Accounts CEOllnlerim Director Other Stsff Services Other Direct Costs Admin Costs Total Let property expenditure Investment mana&Jeineni fees Grdnls for parish guides (see note l ) 30,090 71,200 17,316 58.999 872,750 1,050,355 5,216 5,216 377,252 486,595 30,090 38,142 9.324 31.787 60,180 109.342 26,640 90,786 1.255.218 1,542,166 2023 Salary Cosls.. Interim Director Salary Audit & Costs.. Accounts other Staff Services Oiher Direct Costs Admin Cosls Toial Lei property expendilure Investment management fees Grai)Is for parish guides (see nole l ) 8.714 47,089 20,424 42,708 561,425 4,934 442.084 680,360 4.934 510,147 8,714 25,355 10,998 22,996 17,428 72,444 31.422 65,704 1.008,443 1,195,441 In analysing ihe lotal expenditure by the Charity some costs have been apportioned. The apportionments used are detailed below: CEO/lnterim Director Staff Costs Audii & Accountancy Admin Costs 2024 Let property Grants for parish Guides 50 50 100 65 35 100 65 35 100 65 35 100 2023 Let property Gran15 for parish Guides 50 50 100 65 35 100 65 35 100 60 40 100 20
Mr Willats, Charity NOTES TO THE ACCOUNTS (conlinued) for the year ended 31 December 2024 Total expenditure (eontinued) All remaining costs are sliown under tlie heading 'other direa costs, and are charged directly to ihe ihree cosi headinbys as appropriate. Included within the nei grant expenditure of £377,252 (2023.. £442.084) are individual grants payable 10 Guides. All grants are given for the same charitable purpose whiLh is to assist parishes in the churches of England, Wales and Ireland by contributing iowards the salarieslexpenses of la}, pastoral workers. Total governance costs wcre £99,497 {2023'. £55,622). These cos15 have been split proportionaiely between I property costs and granls for parish Guides. Auditor's remuneration Included within audit and accountancy services expenditure above, amounts payable lo the Charity's audilor detailed as follows.. audii fees for the curr¢nl year of £20,440 (2023- £15,060); no other fees (2023.. £nil} were paid to the auditors during the year. Tangible fixed assets 2024 Freehold Property 01CC Equipinent Furniture & Fittings Websiie To1 Cost Ai the start of the year Additions Disposals Revaluation 155,000 42,443 10,168 (26,760) 277,352 22.948 497,743 10,168 (304.112) (105,000) (277,352) (105,000) As the end of ihe year 50,(K)O 25,851 22,948 98,799 Depreciation At the start of the year Charge for the year Write back on disposal 37,528 1,778 (26,758) 276,812 540 (277,352) 22,948 337.288 2,318 (304,110) As the end of the year 12.548 22,948 35.496 Nei book value As the end of ihe year 50,000 13,303 63,303 OlCe equipmenl items no longer in use were removed from the fixed asset register. Whilst most items were al nil book value, a charge of £2 (2023.. nil) arose from the disposal. The furniture and fittings disposal relates to minor items on properry inventories. These are below the fixed assets threshold of £ 1.000 and so have en disposed. These items are checked annually on a separnte propety inventory. 21
Mr Willats, Charity NOTES TO T14E ACCOUNTS (conlinued) for ihe year ended 31 December 2024 Tangible fixed assets (continued) 2023 Freehold Property 0ce Equipmenl Fumiture & Fitlings Website Total Cost Ai the start of the year Additions Disposals 155,000 43,902 2,983 (4,442) 276,813 539 22,948 498,663 3,522 (4.442) As the end of the year 155.000 42,443 277,352 22,948 497,743 Depreciation At Ihe slart of the year Charge for ihe year Write bdck on disposal 39,567 2.403 (4,442) 266.702 10.110 22.948 329,217 12.513 (4.442) As the end of the year 37,528 276,812 22,948 337,288 Nel book volue As Ihe end of Ihe year 155.000 4,915 540 160.455 22
Mr Willats, Charity NOTES TO THE ACCOUNTS (conlinued) for the year ended 31 Dec¢mbeT 2024 Investment properties 2024 Commercial Residential Total Valuation at the start of the year ImprovemLnis ai Cosl during year Property disposal during the year Revaluation of property during year 3,130.000 31.726,296 34,856,296 (2.600.000) (6,541,296) {2,600,000) (6,541.296) Valuation ai ihe end of the year 3,130,000 22,585,000 25,715,000 2023 (as reststed) Coinmercial Resideniial Total Valuaiion al the start of ihe year Improvements at cost during year Revalualion of property during year 4,603,500 31,750,000 26,296 (50.000) 36,353,500 26,296 (1,523,500) (1.473,500) Valuation at the end of the year 3.130,000 31,726,296 34,856,296 During 2024, a decision was made lo change the way the pemianent endowment is invested, resulting in a strategic plan 10 minimise invesunenl property aiid increase investinenls in slock5, share5, gJilts, eic. This is explained more fully in the Truslees report. The plans include selling properties as a whole unli to minimise loss of rental incoine and reduce fees of selling compared lo individual flals. The previous full valuation in July 2023 conlained 2 valuaiion meihods,. a lower value for properties valued as a whole, and a Iiigher valuation for the properties valued as individual flats. Ai Ihe lime there was no plan lo exil the property market. Revenue returns are generaled on an individual flat basis, and so the higher value was agreed to be Ihe best reflection of property value al Ihal lime. With Ihe 2024 decision to Ininimise property investmenls and maxiinise other investments by selling the property as a whole, the 2023 valuation Inethod was no lonbier appropriate for the 2024 financial statements. An elemenl of this would be to adopt the lower whole property valualion from the original July 2023 full valuation report. Current properties identified for sale were consislenily showing Inarket values below the 2023 valuation, and so an interim desk-top valuation was conducled by Carter Jonas, with each residential property being inspected. The infomiation received indicated the curyent market value per whole property was collectively below the July 2023 valuation, resuliing in a downward property revaluation during the year. Further issues were uncovered for 3 of the commercial properties due to either error or inaccurate assumptions, leaving the 2023 valuation overstated and requiring a prior year re-statement to reflect this. The full adjusthlenl is summarised in the table below. The Board estimates ihat the market value of the freehold investment properties at 31 December 2024 is £25,715.000 {2023.. £34,456,296), plus leasehold properties of £50.000 (2023: £400.000). If revalued assets were stated on an historical cost basis rather than a fair value basis. the canying amounts would have been approximately £365.000 (2023 £395,000). 23
Mr Willats, Charity NOTES TO THE ACCOUNTS (¢c)F71iiitsed) for ihe year ended 31 December 2024 Investment properties (continued) Breakdown of Investment Pro er Valuation Movement Breakdown Commercial Residential Tolal Valualion per 2023 published account5 4,603,500 31,726296 36J29,796 Prior Year ad'ustmenl Inade u Leasehold rent based on inco]Tect lease value Assumed upper floors refurbished and let - Assumed change of use with planning pemiission (550,000) (650,000} 273 500 1473 500 1473 500 Re-stated Investmeni property value prior year 3,130,000 31,726,296 34,856,296 Revaluation resulting from interim desktop valuhlion Adjuslment for whole property valuaiion Further overall reduciion based on market value assessment (2,542.500) 3 998 796 {6.541,296) (6,541,296) Property sale completed in the year 2 600 000 2 600 000 Inveslment property valuation 2024 24
Mr Willats, Charity NOTES TO THE ACCOUNTS (conlinued) for the year ended 31 December 2024 Other investments 2024 2023 Market value at the start of the year Portfolio fees Nel gFainl(Ios5) 595,505 (5,216) 52,922 570,775 (4,934) 29,664 Market value at the end of the year 643,211 595,505 Historical cost al the end of Ihe year 566,984 532.592 The inveslmenls are held as follows.. 2024 2023 Equities and convertible stocks Gilts and oiher fixed interest slocks Cash and cash equivalents 331,144 292.225 19,842 420,225 151,235 24,045 643.211 595.505 Analysis by geographical sector 2024 2023 Invesimenl assets in the UK Inveslmenl assets oulside of the UK 101,45? 541,759 103,701 491,804 643.211 595,505 Debtors 2024 2023 Rents receivable Oihcr deor5 Prepayments 20,368 10 102,727 30,916 1,273 109.382 123,105 141,571 25
Mr Willats, Charity NOI"ES TO'FHE ACCOUNTS (conlinued) for ihe year ended 31 December 2024 Creditors: amounts falling due within one year 2024 2023 Rents invoiced in advance Renis received in advance Trade creditors Tax and s(Kial security Accruals other creditors Grants due to Parish Guides 61,950 14,035 113,993 4,653 86,802 146.181 313.176 76,985 4,160 134,210 2,313 17,261 139,739 293,667 740,790 668,335 Creditors: amounts falling due after more than one year 2024 2023 Grants due io Parish Guides 266,343 304,042 Staff eosls 2024 2023 Salaries Employer's Nl Pension contributions 142,547 79,783 2,325 3.464 7,010 159,113 85,572 Averdge weekly number of employees during the year, calculated on an average headcount basis No individual employed by the charity received remuneration in excess of £60,000 during the current or previous year. The Key Management personnel of the Charity, as previously stated in the Trustees, Report, comprise of ihe Directors of the Corporate Trnslee, Ihe CEO (appointed September 2024), Ihe Property Manager, the Finance Manager (appointed April 2024) and the Grants and Project Manager. The total remuneration paid by the Charily to the Key Management personnel was £147,330 (2023- £73,750). 26
Mr Willats, Charity NOTES TO THE ACCOUNTS (L'onlinued) for ihe year ended 31 December 2024 io Transfe The Charity holds significant endowmeni funds, the majority of which are invesled in property. The Board believes thal in order lo safeguard the assel value and future incoine streams of the prope]ty Portfolio it is necessary lo maintain and improve Ihe endowment properties. All endowment property improvements are added to the brought forward value of the property portfolio. The endowmeni funds do nol receive any income and, therefore, only hold cash reserves if endowmenl assets have beeii sold. Unlike previous years. the endowment has £?,543.891 from the sale of a property during 2024. Historically, where the endO'1nenI funds have not been able to finance the full Lost of property improvements, the shortfall is mel by a fund transfer from the unrestricted funds. Tliis has the iininediale effecl of reducingy the unrestricted funds, reserves but ihe Board believes that the preservation of the property portfolio has resulted in higher fulure income generalion for that fund. In 2024, there was no capital expenditure for property enhancements (2023.. £26,296). The movements relating to the inler-fund loan are detailed below: 2024 2023 Transfer of unre5tricied funds to endowment lunds in relation to improveinents to properties held by the endowrnent funds 26,296 27
Mr Willats, Charity NOTES TO THE ACCOUNTS (conlinued) for the year ended 31 December 2024 Anal)'sis of Nel assets between funds 2024 Nel Assels/ (Liabililies) Invesmienl Property Other Investments Fixed Assets Total Endowment funds Unrestricted funds General Designated.. fixed asseis Designated.. early-end grants 25,715,000 643,211 2.543.891 28,902,102 510.599 510,599 63,303 108,664 63.303 108,664 25,715.000 643.211 63,303 3.163,154 29,584,668 2023 (as reststed) Nel Asselsl (Liabilities) Investmenl Propeny Oiher Investments Fixed Assets Total Endowment funds Unresiricted funds General Designated.. fixed assets Designated.. early-end granis 34,856,296 595,505 35.451.801 644.226 644,226 160,455 35,916 160,455 35,916 34.856,296 595,505 160,455 680,142 36,292,398 Dethils of the prior year restalement can be found in the inveslmenl properties note (note 4). 12 Related party Iransaelions and Board Directors, expen5e5 xnd remuneration One Board member is also a Trustee of St John's Charity and during the year the Charity paid £2,444 (2023: £1,444) to St John's Charity for room hire and refreshments. No other relaled party iransaclions were eniered into during the cuent or previous year. During the year, no Board Director received any remuneration (2023.. £nil) bul expenses amouniing io £1,900 (2023.. £3.285) were claimed by the Trustees in relation lo Iravel and accommodation costs. 13 Capital Commitments At the year end the Charity had committed to spending in relation to the refurbishment us the upper floors at 20 High Street lo creale a 6-bedroom HMO, with the expectation works will be completed and the new floors let from September 2025. The estimated value of this commilment as at the year end was £210,000 (2023.. £nil previously reported expenditure was a repair not a capilal commitment). 28
Mr Willats, Charity NOTES TO THE ACCOUNTS (conlinued) for the year ended 31 December 2024 14 Posl balance sheet events As part of the transition from propety to financial investments, besi-and-final open market offers have been received for 2 properties. The Sltrveys are Slill pending and so a final selling price is not yet known. The curr¢nt investmeni property value is indicative of the final amount realisable after the sale negotiations have been concluded. 15 Fund accounting comparative figures 2023 (as restated) Unreslricted Endowmenl Funds Funds Total 2023 Income and endowments from: Investment property incoine Oiher invesmient income 1,364,651 40,888 1.364,651 40,888 Total income 1,405,539 1.405,539 Expenditure on: Lojl c!frai3inR.funds.' Let property expenditure Inveslmenl Inanageinenl fees 680,360 680,360 4,934 4,934 ErpedI1Ure on churiiable aclivilies.. Grants for parish Guides 510,147 510.147 Total exp¢nditurt 1,190.507 4,934 1,195,441 Unrealised gains on revaluation of fixed assets Unrealised gains on revaluation of investmeni properties Nel gains on slock market investments (1,523,500) (1,523,500) 29.664 29,664 N¢t income on ordinary activities 215,032 (1.498,770) (1,283,738) Transfer of funds (26.296) 26,296 Net income/(1055) on ordinary gctivities 188,736 (1.472,474) (1,283,738) Recoiiciliaiion offiinds Funds brought forward 651,861 36,924,275 37,576.136 Funds c8rried forward 840,597 35,451.801 36,292,398 Details of ihe prior y&gr restatement can be found in the investment properties note (note 4). 29
Mr Willats, Charity NO'fES TO THE ACCOUNTS (conlinued) for the year ended 31 December 2024 16 Reconeilialion of net movements in funds to net cash generated from operaling activities 2023 (as restated) 2024 Continuing activities Nel movement in funds Dcducl investment income Add back depreciation of tangible fixed assets Deduct gains on investments Add back losses on fixed asset disposals Add back inveslmenl managyemeni fees Add decrease I deduct increase in debtors Add back increase in creditors Add back loss on sale of investmenl property Unrealised loss/(gain) on revaluations of investment properties Unrealised lossl(gain) on revaluations or rixed assets (6,707,730) (1,283,738} (118,453) (40.888) 2,318 12,513 (52,922) (29,664) 5,216 18,466 34,756 56,109 6,541,296 105,000 4,934 {19,598) 123,162 ,523.500 Nei cash inflow from operdling activiiies (115,942) 290,221 30