Charity number: 209148
THE CHURCH AND TOWN ESTATE PROPERTY CHARITY
UNAUDITED
TRUSTEES' REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
THE CHURCH AND TOWN ESTATE PROPERTY CHARITY
| CONTENTS | |
|---|---|
| Page | |
| Reference and administrative details of the charity, its Trustees and advisers | 1 |
| Trustees' report | 2 - 4 |
| Independent examiner's report | 5 |
| Statement of financial activities | 6 |
| Balance sheet | 7 |
| Notes to the financial statements | 8 - 15 |
THE CHURCH AND TOWN ESTATE PROPERTY CHARITY
REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2022
Trustees
B Masterson, Hempnall Trust (Chairman) C Barnes, Hempnall Trust P Brookes, Educational Foundation R Eagle, Educational Foundation D Hook, Educational Foundation G Munson, Hempnall Trust J Kelly, Hempnall Trust (resigned 21 July 2022) P Workman, Hempnall Trust (resigned 20 May 2022) D Scott, Hempnall Trust D Key, Educational Foundation & Church Warden C Key, Church Warden P Stone, Hempnall Trust (until 1 September 2022) C Rodger, Hempnall Trust D Trevanion, Educational Foundation M Williams, Hempnall Trust P Bates, Hempnall Trust H Gray, Hempnall Trust (appointed 17 November 2022) J Gray, Hempnall Trust (appointed 17 November 2022) H Groom, Hempnall Trust (appointed 17 November 2022)
Charity registered number
209148
Principal office
Karinya, Bungay Road, Hempnall, Norwich, NR15 2NG
Independent examiner
Larking Gowen LLP, 1st Floor Prospect House, Rouen Road, Norwich, NR1 1RE
Page 1
THE CHURCH AND TOWN ESTATE PROPERTY CHARITY
TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2022
The Trustees present their annual report together with the financial statements of the charity for the 1 January 2022 to 31 December 2022.
Objectives and activities
a. Objectives and activities
The main objects of the charity are to divide the clear income of the charity into four equal parts and to pay one of such parts to the trustees of the Town Estate Educational Foundation as the endowment of that foundation, another of such parts to the Trustees of the Church Estate Charity as the endowment of that charity and the remaining two of such parts to the Trustees of the Hempnall Trust as the endowment of that charity.
Income is received as dividends and interest from the charity's investment portfolio. Bank interest and rents from the charity's property are also received.
In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.
b. Activities undertaken to achieve objectives
The income for the year is £40,127 (2021: £42,452), and after property maintenance and administrative expenses there was a distributable income available to the related charities of £33,565 (2021: £37,155).
c. Grant-making policies
Except for the costs of managing the charity, its property and listed investments, all income is dispersed to the dependent charities.
Achievements and performance
a. Investment policy
The trustees aim through the charity's investment policy is to balance capital growth with income returns in order for the charity to generate funds to meet the current and future needs of the beneficiaries of the associated charities. The trustees hold listed investments in Sarasins Endowment Class A Income Fund.
Financial review
a. Reserves policy
The Trustees have followed the advice given by the Charity Commission, and investments provide both capital growth and income sufficient to meet the needs of the dependent charities.
All funds are endowed funds, and all net income is distributed to the dependent charities as it is received. Hence no free reserves arise. Endowment funds at 31 December 2022 were £1,723,891 (2021: £1,666,566).
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THE CHURCH AND TOWN ESTATE PROPERTY CHARITY
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
Structure, governance and management
a. Constitution
The company is registered as a charity and was constituted by a Charity Commission Scheme on 23 February 1917 varied by an order dated 16 February 1978.
b. Related party relationships
The charity shares common control with the following charities:
The Hempnall Trust - (50%) The Town Estate Educational Foundation - (25%) The Church Estate Charity (Hempnall) - (25%)
The Church and Town Estate Property Charity (Hempnall) provides funding for the above charities and the percentages represent the proportion of net income they each receive from the distribution. The Trustees of each of the related charities also serve as trustees for this charity. Transactions between the related parties are set out in notes 5 and 12. The methods adopted for the recruitment and appointment of new Trustees therefore follow the policies adopted by the dependent charities, as disclosed in their financial statements.
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:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles of the Charities SORP (FRS 102);
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make judgments and accounting estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
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 (Accounts and Reports) Regulations 2008 and the provisions of the Charity Commission Scheme. 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.
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THE CHURCH AND TOWN ESTATE PROPERTY CHARITY
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
Approved by order of the members of the board of Trustees and signed on their behalf by:
................................................ B Masterson Chair of Trustees Date: 29 March 2023
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THE CHURCH AND TOWN ESTATE PROPERTY CHARITY
INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 31 DECEMBER 2022
Independent examiner's report to the Trustees of The Church and Town Estate Property Charity ('the charity')
I report to the charity Trustees on my examination of the accounts of the charity 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 accounts in accordance with the requirements of the Charities Act 2011 ('the 2011 Act').
I report in respect of my examination of the charity's accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
Your attention is drawn to the fact that the charity has prepared the accounts in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has been withdrawn.
I understand that this has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.
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:
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accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or
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the accounts do not accord with those records; or
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the accounts 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 accounts to be reached.
Signed:
Dated: 5/4/2023
Giles Kerkham FCA DChA
Larking Gowen LLP Chartered Accountants Norwich
Page 5
THE CHURCH AND TOWN ESTATE PROPERTY CHARITY
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2022
| Note Income and endowments from: Investments 2 Property income 3 Total income and endowments Expenditure on: Other costs 4 Payments to related charities Total expenditure Net expenditure before net gains on investments Net gains on investments Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward |
Endowment funds 2022 £ 36,617 3,510 40,127 6,566 33,565 40,131 (4) 57,329 57,325 1,666,566 57,325 1,723,891 |
Total funds 2022 £ 36,617 3,510 40,127 6,566 33,565 40,131 (4) 57,329 57,325 1,666,566 57,325 1,723,891 |
Total funds 2021 £ 37,685 4,767 |
|---|---|---|---|
| 42,452 | |||
| 5,297 37,155 |
|||
| 42,452 | |||
| - 93,604 |
|||
| 93,604 | |||
| 1,572,962 93,604 |
|||
| 1,666,566 |
The Statement of financial activities includes all gains and losses recognised in the year.
The notes on pages 8 to 15 form part of these financial statements.
Page 6
THE CHURCH AND TOWN ESTATE PROPERTY CHARITY
BALANCE SHEET AS AT 31 DECEMBER 2022
| 2022 | 2022 | 2021 | ||||
|---|---|---|---|---|---|---|
| Note | £ | £ | ||||
| Fixed assets | ||||||
| Investments | 1,723,891 | 1,666,562 | ||||
| 1,723,891 | 1,666,562 | |||||
| Current assets | ||||||
| Debtors | 10 | 70 | 564 | |||
| Cash at bank and in hand | 3,882 | 2,310 | ||||
| 3,952 | 2,874 | |||||
| Creditors: amounts falling due within one | ||||||
| year | 11 | (3,952) | (2,870) | |||
| Net current assets | - | 4 | ||||
| Total net assets | 1,723,891 | 1,666,566 | ||||
| Charity funds | ||||||
| Endowment funds | 1,723,891 | 1,666,566 | ||||
| Total funds | 1,723,891 | 1,666,566 |
The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:
................................................ B Masterson Chair of Trustees Date: 29 March 2023
The notes on pages 8 to 15 form part of these financial statements.
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THE CHURCH AND TOWN ESTATE PROPERTY CHARITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
1. Accounting policies
1.1 Basis of preparation of financial statements
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.
The financial statements have been prepared to give a 'true and fair' view and 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 Charities SORP (FRS 102) published in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.
The Church and Town Estate Property Charity meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
1.2 Income
All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Grants are included in the Statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.
Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.
1.3 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity.
All expenditure is inclusive of irrecoverable VAT.
1.4 Investments
Investments are stated at market value at the balance sheet date. The Statement of Financial Activities includes net gains and losses arising on revaluations and disposals throughout the year.
1.5 Debtors
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
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THE CHURCH AND TOWN ESTATE PROPERTY CHARITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
1. Accounting policies (continued)
1.6 Cash at bank and in hand
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
1.7 Liabilities and provisions
Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
1.8 Financial instruments
The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
1.9 Fund accounting
The endowment fund represents capital of the charity, which is invested in perpetuity. Gains and losses on endowment fund investments accrue to the fund. Investment income net of administration costs is divided between dependent charities as described in the Trustees Report.
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THE CHURCH AND TOWN ESTATE PROPERTY CHARITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
2. Investment income
| Dividends and interest Total 2021 |
Endowment funds 2022 £ 36,617 37,685 |
Total funds 2022 £ 36,617 37,685 |
Total funds 2021 £ 37,685 |
|---|---|---|---|
3. Property income
| Rentals Rural Payments Agency Total 2021 |
Endowment funds 2022 £ 2,289 1,221 3,510 4,767 |
Total funds 2022 £ 2,289 1,221 3,510 4,767 |
Total funds 2021 £ 2,734 2,033 |
|---|---|---|---|
| 4,767 | |||
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THE CHURCH AND TOWN ESTATE PROPERTY CHARITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
4. Analysis of other costs
Summary by fund type
| Secretary's salary and expenses Independent Examination and Accountancy Insurance Property Management Fees Krons Meadow Project Meetings (note 12) Total 2021 |
Endowment funds 2022 £ 517 1,200 1,901 1,588 360 1,000 6,566 5,297 |
Total 2022 £ 517 1,200 1,901 1,588 360 1,000 6,566 5,297 |
Total 2021 £ 546 1,109 1,043 488 1,111 1,000 |
|---|---|---|---|
| 5,297 | |||
5. Related parties current year
| Balance at 1 January 2022 Allocation of income for the year Amounts already paid Balance at 31 December 2022 (Debtor)/Creditor |
Hempnall Trust 2022 £ (564) 16,783 (16,289) (70) |
Church Estate Charity 2022 £ 880 8,391 (7,895) 1,376 |
Town Estate Educational Foundation 2022 £ 880 8,391 (7,895) 1,376 |
Total funds 2022 £ 1,196 33,565 (32,079) 2,682 |
Total funds 2021 £ 4,786 37,155 (40,745) |
|---|---|---|---|---|---|
| 1,196 |
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THE CHURCH AND TOWN ESTATE PROPERTY CHARITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
6. Related parties prior year
| Town | |||||
|---|---|---|---|---|---|
| Church | Estate | ||||
| Hempnall | Estate | Educational | Total | Total | |
| Trust | Charity | Foundation | funds | funds | |
| 2021 | 2021 | 2021 | 2021 | 2020 | |
| £ | £ | £ | £ | £ | |
| Balance at 1 January 2021 | 1,264 | 1,761 | 1,761 | 4,786 | 3,984 |
| Allocation of income for the | |||||
| year | 18,577 | 9,289 | 9,289 | 37,155 | 61,875 |
| Amounts already paid | (20,405) | (10,170) | (10,170) | (40,745) | (61,073) |
| Balance at 31 December 2021 | |||||
| (Debtor)/Creditor | (564) | 880 | 880 | 1,196 | 4,786 |
| Independent examiner's remuneration | |||||
| 2022 | 2021 | ||||
| £ | £ | ||||
| Fees payable for the independent examination of the charity's | annual | ||||
| accounts | 1,200 | 1,109 |
7. Independent examiner's remuneration
8. Trustees' remuneration and expenses
During the year, no Trustees received any remuneration or other benefits (2021 - £NIL) .
During the year ended 31 December 2022, no Trustee expenses have been incurred (2021 - £NIL) .
Page 12
THE CHURCH AND TOWN ESTATE PROPERTY CHARITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
9. Fixed asset investments
| Listed Investments 2022 £ Market Value At 1 January 2021 1,421,562 Additions - Investment management fees (9,990) Gain/(Loss) (166,681) Total 2022 1,244,891 Total 2021 1,421,562 |
Freehold Land 2022 £ 245,000 - - 234,000 479,000 245,000 |
Total funds 2022 £ 1,666,562 - (9,990) 67,319 1,723,891 1,666,562 |
Total funds 2021 £ 1,556,527 16,431 (5,364) 98,968 1,666,562 |
|---|---|---|---|
In the Statement of Financial Activity the gain/(loss) and investment management fees are presented on a net basis.
The freehold land was valued by Durrants Chartered Surveyors in June 2022. The trustees considered there have been no material changes to the fair values between then and 31 December 2022.
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THE CHURCH AND TOWN ESTATE PROPERTY CHARITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
. Investments (at market value)
| UK Investments Endowed fund Sarasins Class A Income Units 1,112,124.34 (2021: 1,112,124.34 ) Total investments Freehold Land (at market value) Pasture Land 7.32 Acres - Great Town Carr 2.85 Acres - Little Town Carr 1.90 Acres - West Town Tindales 2.40 Acres - East Town Tindales 2.76 Acres - Town Meadow 0.25 Acres - East Town Tindales Allotments Arable Land 5.98 Acres - Bressingham 8.47 Acres - Town Piece 4.29 Acres - Middle Town Piece Allotments 1.72 Acres - Mill Close |
2022 £ 1,244,891 - 1,244,891 189,000 - - - - - - 115,000 - - - 175,000 - 479,000 1,723,891 |
2021 £ 1,421,562 - |
|---|---|---|
| 1,421,562 70,000 - - - - - - 125,000 - - - 50,000 - |
||
| 245,000 | ||
| 1,666,562 |
10. Debtors
| Due within one year Hempnall Trust |
2022 £ 70 70 |
2021 £ 564 |
|---|---|---|
| 564 |
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THE CHURCH AND TOWN ESTATE PROPERTY CHARITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
11. Creditors: Amounts falling due within one year
| Accruals Related charities |
2022 £ 1,200 2,752 3,952 |
2021 £ 1,110 1,760 |
|---|---|---|
| 2,870 |
12. Related party transactions
Room rental for trustee meetings amounting to £1,000 (2021: £1,000) was paid to the Mill Bar Company Ltd, a subsidiary of The Hempnall Trust (note 4).
Page 15