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2023-12-31-accounts

Docusign Envelope ID: D6D176DE-4FC4-4630-98EE-A8FA5C1022F1

Charity number: 212006

ST PANCRAS CHURCH LANDS TRUST

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

Docusign Envelope ID: D6D176DE-4FC4-4630-98EE-A8FA5C1022F1

ST PANCRAS CHURCH LANDS TRUST

CONTENTS

Page
Reference and Administrative Details of the Charity, its Trustees and Advisers 1
Trustees' Report 2 - 5
Independent Auditors' Report on the Financial Statements 6 - 9
Statement of Financial Activities 10
Balance Sheet 11
Notes to the Financial Statements 12 - 26

Docusign Envelope ID: D6D176DE-4FC4-4630-98EE-A8FA5C1022F1

ST PANCRAS CHURCH LANDS TRUST

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2023

Trustees D Hackman
J Powell
S P Walsh
D Lamont
I H Sedgwick
The Very Rev A Tremlett
Rev L Winkett (appointed 29 November 2023)
Prof D Severin (appointed 5 October 2023)
S Simoni (appointed 5 October 2023)
M Bayley (appointed 4 January 2024)
H Kalmbach (appointed 4 January 2024)
Charity registered
number
212006
Principal office
22 South Road
Baldock
Herts
SG7 6BY
Independent auditors
Peters Elworthy & Moore
Chartered Accountants
Station Road
Cambridge
CB1 2LA
Solicitors
Teacher Stern LLP
37-41 Bedford Row
London
WC1R 4JH
Investment managers
LGT Wealth Management
14 Cornhill
London
EC3V 3NR
Investment managers
Ruffer LLP
80 Victoria Street
London
SW1E 5JL

Page 1

Docusign Envelope ID: D6D176DE-4FC4-4630-98EE-A8FA5C1022F1

ST PANCRAS CHURCH LANDS TRUST

TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2023

The Trustees present their annual report together with the audited financial statements of the charity St Pancras Church Lands Trust for the year 1 January 2023 to 31 December 2023. The Trustees confirm that the Annual Report and financial statements of the Charity comply with the current statutory requirements, the requirements of the Charity's governing statutes and the provisions of the Statement of Recommended Practice (SORP), 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).

Objectives and activities

a. Policies and objectives

The St Pancras Church Lands Trust is an ancient charitable trust, the objects of which include the ownership of St Pancras Church and the raising of income for distribution amongst all the Churches or Chapels from time to time existing within the original limits of the Ancient Parish of St Pancras and having District Parishes assigned to them which are wholly within such original limits. The income is to be distributed in accordance with the apportionment set out in the governing statutes of the Trust to the Churchwardens of the beneficiary parishes, to be applied by them in or towards repairs to the Churches or Chapels and in or towards the expenses of performing divine worship in such Churches or Chapels.

The aim of the Trust is to generate income from its investments in order to meet its objectives.

The Trustees have reviewed the objectives and activities of the Trust and confirm that they have complied with the duty in Section 17 of the Charities Act 2011 to have due regard to the Charity Commission's general guidance on public benefit.

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)'.

Achievements and performance

a. Review of activities

During the year the value of the Trust's net assets decreased by £277,925 to £7,304,788, as shown on the Balance Sheet of the financial statements and the aggregate income of the funds of the Trust was £97,862 (2022: £112,646).

The Trust has this year (2023) been able to distribute £190,010 (2022: £182,427) to its beneficaries, the churches now resident in the Ancient Parish of St Pancras. This expenditure represents 84% (2022: 85%) of the Trust's annual expenditure.

During the year the Trust sought legal advice on its governing statutes which identified that the primary and residue funds of the Trust which had been previously shown as restricted and unrestricted funds respectively, were actually permanent endowments. The Trust has conducted an extensive exercise to access all available prior financial information to establish the split of the capital element of each permanent endowed fund from the unspent income. The Trust has been able to establish this position from 1989 onwards. Adjustment has been made to restate the comparative financial position for the year ended 31 December 2022 to reflect this position and for the year ended 31 December 2023. The impact of this adjustment is explained in note 16 to the financial statements.

Page 2

Docusign Envelope ID: D6D176DE-4FC4-4630-98EE-A8FA5C1022F1

ST PANCRAS CHURCH LANDS TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

Achievements and performance (CONTINUED)

b. Investment policy and performance

The day-to-day management of the Trust's investments is delegated to its Investment Committee, who take advice from the investment managers in relation to Gilts and Equities and from the Trust's chartered surveyor in relation to property investments. The guidelines that have been set down are to maintain income at a sufficient level to avoid any diminution in the quarterly distribution to beneficiary parishes and, subject to this, to achieve capital growth, but with no more than a medium risk.

For accounting purposes the Trust applies the total return basis of accounting for investment returns which applies a spending rule, currently calculated at 5.75% of the investment value held at the start of the financial year, to smooth expendable income across years for the beneficiaries of the Trust. The difference between the spending rule and the actual investment income earned is allocated to the expendable income funds in the transfers between funds line of the Statement of Financial Activities.

The Trustees will continue to monitor the appropriateness of the spending rule level in light of actual investment returns, the position of the markets and the economic climate generally.

Financial review

a. Going concern

After making appropriate enquiries, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.

b. Reserves policy

At 31 December 2023 the Trust does not hold any free reserves because all funds are either permanent endowments or the income generated by these funds which is restricted in nature. However, the restriction placed on this unspent income allows it to be used to cover as a first allocation, the running costs of the Trust. Therefore, the Trust is holding £162,788 as at 31 December 2023 which it considers to be an adequate reserve to meet the administrative expenditure of the Trust should further investment returns be diminished. The level of unspent income held is approximately equivalent to one year's expenditure on administrative fees and charitable activities.

c. Principal funding

The Trust's main funding source is its investment income, both income from listed investments and income from investment properties. The investment properties are managed to produce the best rental income for the Trust and the Trustees receive professional advice in order to do so. The listed investments are managed on a day-today basis on behalf of the Trustees by professional investment managers.

d. Risk management

The Trustees have assessed the major risks to which the Trust is exposed, in particular those related to the operations and finances of the Trust, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks. One of the key risks for the Trust is the performance of the investments. This risk is managed by taking advice from investment managers, as set out in the Trust's Investment policy.

Page 3

Docusign Envelope ID: D6D176DE-4FC4-4630-98EE-A8FA5C1022F1

ST PANCRAS CHURCH LANDS TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

e. St Pancras Church

The Trust owns the freehold of St Pancras Church on the Euston Road and the adjoining church grounds (together the Church Property). The Parochial Church Council (PCC) of St Pancras Church manages the maintenance, repair, upkeep and insurance of the Church Property and it undertakes various income-generating activities on the Church Property. The income and costs of these activities are reflected in the PCC's financial statements and not in the financial statements of the Trust. As part of the legal review of the governing statutes described above the Trustees have included the Church Property on the Trust's Balance Sheet at its original acquisition value. See narrative included in note 16 to the financial statements.

Structure, governance and management

a. Constitution

The Trust is regulated by the Saint Pancras Ecclesiastical Regulation Act 1868 (as amended by The Charities (Church Lands Charity, in the Ancient Parish of St Pancras, London) Order 1965) and certain unrepealed sections of earlier local Acts of 1816 and 1821.

The Trustees who served during the year were:-

Dr D Brown (resigned 29 November 2023) Ms D Hackman J Powell Mr S P Walsh D Lamont I H Sedgwick Rev A Tremlett Rev L Winkett (appointed 29 November 2023) Prof D Severin (appointed 05 October 2023) S Simoni (appointed 05 October 2023)

b. Methods of appointment or election of Trustees

The Dean of St Paul's, the Vicar of St Pancras and the Church wardens of St Pancras are ex officio Trustees.

Other Trustees are appointed by the Trustees at the general meetings.

c. Organisational structure and decision-making policies

The Trustees are responsible for establishing the overall policy of the Trust and meet periodically to review progress in meeting the Trust's objectives. The day-to-day execution of that policy is delegated to the Standing and Investment Committees, subject to overriding control by the trustees.

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Docusign Envelope ID: D6D176DE-4FC4-4630-98EE-A8FA5C1022F1

ST PANCRAS CHURCH LANDS TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

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 (Accounts 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.

Disclosure of information to auditors

Each of the persons who are Trustees at the time when this Trustees' Report is approved has confirmed that:

Auditors

The auditors, Peters Elworthy & Moore, have indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees.

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

................................................ L Winkett Trustee Date: 24 October 2024

Page 5

Docusign Envelope ID: D6D176DE-4FC4-4630-98EE-A8FA5C1022F1

ST PANCRAS CHURCH LANDS TRUST

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ST PANCRAS CHURCH LANDS TRUST

Opinion

We have audited the financial statements of St Pancras Church Lands Trust (the 'charity') for the year ended 31 December 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

The financial statements have been prepared in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standards 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.

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.

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

Page 6

Docusign Envelope ID: D6D176DE-4FC4-4630-98EE-A8FA5C1022F1

ST PANCRAS CHURCH LANDS TRUST

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ST PANCRAS CHURCH LANDS TRUST (CONTINUED)

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The Trustees are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Trustees' Responsibilities Statement, the Trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

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Docusign Envelope ID: D6D176DE-4FC4-4630-98EE-A8FA5C1022F1

ST PANCRAS CHURCH LANDS TRUST

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ST PANCRAS CHURCH LANDS TRUST (CONTINUED)

Auditors' responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by;

To address the risk of fraud through management bias and override of controls, we;

Page 8

Docusign Envelope ID: D6D176DE-4FC4-4630-98EE-A8FA5C1022F1

ST PANCRAS CHURCH LANDS TRUST

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ST PANCRAS CHURCH LANDS TRUST (CONTINUED)

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.

Use of our report

This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and its trustees, as a body, for our audit work, for this report, or for the opinions we have formed.

Peters Elworthy & Moore

Chartered Accountants Statutory Auditors Station Road Cambridge CB1 2LA Date: 24 October 2024

Peters Elworthy & Moore are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.

Page 9

Docusign Envelope ID: D6D176DE-4FC4-4630-98EE-A8FA5C1022F1

ST PANCRAS CHURCH LANDS TRUST

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2023

Note
INCOME AND ENDOWMENTS FROM:
Investments
3
TOTAL INCOME AND ENDOWMENTS
EXPENDITURE ON:
Raising funds
4
Charitable activities
5,6
TOTAL EXPENDITURE
NET EXPENDITURE BEFORE NET
(LOSSES)/GAINS ON INVESTMENTS
Net (losses)/gains on investments
NET (EXPENDITURE)/INCOME
Transfers between funds
13
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS:
Total funds brought forward
Net movement in funds
TOTAL FUNDS CARRIED FORWARD		 Restricted
funds
2023
£
97,862
97,862
21,133
203,813
224,946
(127,084)
-
(127,084)
337,012
209,928
(47,140)
209,928
162,788		 Endowment
funds
2023
£
-
-
-
-
-
-
(150,841)
(150,841)
(337,012)
(487,853)
7,629,853
(487,853)
7,142,000		 Total
funds
2023
£
97,862
97,862
21,133
203,813
224,946
(127,084)
(150,841)
(277,925)
-
(277,925)
7,582,713
(277,925)
7,304,788		 As restated
Total
funds
2022
£
112,646
112,646
13,271
200,297
213,568
(100,922)
535,982
435,060
-
435,060
7,147,653
435,060
7,582,713

The Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 12 to 26 form part of these financial statements.

Page 10

Docusign Envelope ID: D6D176DE-4FC4-4630-98EE-A8FA5C1022F1

ST PANCRAS CHURCH LANDS TRUST

BALANCE SHEET AS AT 31 DECEMBER 2023

Note
FIXED ASSETS
Tangible assets
9
Investments
11
Investment property
10
CURRENT ASSETS
Cash at bank and in hand
Creditors: amounts falling due within one
year
12
NET CURRENT ASSETS
TOTAL NET ASSETS
CHARITY FUNDS
Endowment funds
13
Restricted funds
13
TOTAL FUNDS		 71,761
71,761
(68,077)		 2023
£
6,160
5,057,444
2,237,500
7,301,104
3,684
7,304,788
7,142,000
162,788
7,304,788		 79,802
79,802
(66,278)		 As restated
2022
£
6,160
5,325,529
2,237,500
7,569,189
13,524
7,582,713
7,629,853
(47,140)
7,582,713

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

................................................

L Winkett

Trustee Date: 24 October 2024

The notes on pages 12 to 26 form part of these financial statements.

Page 11

Docusign Envelope ID: D6D176DE-4FC4-4630-98EE-A8FA5C1022F1

ST PANCRAS CHURCH LANDS TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

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.

St Pancras Church Lands Trust 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 FUND ACCOUNTING

Endowed funds are funds required to be invested and held into perpetuity.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund.

1.3 GOING CONCERN

The Trustees have reviewed the financial position of the charity and have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the financial statements continue to be prepared on the going concern basis. The turbulent macroeconomy has continued to impact global stock markets and operations globally. The Trustees have considered the impact and are satisfied that it has no impact on the Charity's ability to continue on the going concern basis.

1.4 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.

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

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Docusign Envelope ID: D6D176DE-4FC4-4630-98EE-A8FA5C1022F1

ST PANCRAS CHURCH LANDS TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

1. ACCOUNTING POLICIES (CONTINUED)

1.5 EXPENDITURE

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Expenditure on raising funds includes all expenditure incurred by the Charity to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charity's objectives, as well as any associated support costs.

Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.

All expenditure is inclusive of irrecoverable VAT.

1.6 INVESTMENT PROPERTY

Investment properties are included in the Balance Sheet at fair value determined by the trustees and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in the Statement of Financial Activities.

A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the Statement of Financial Activities.

1.7 TANGIBLE FIXED ASSETS AND DEPRECIATION

Tangible fixed assets costing £100 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Land is not depreciated.

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Docusign Envelope ID: D6D176DE-4FC4-4630-98EE-A8FA5C1022F1

ST PANCRAS CHURCH LANDS TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

1. ACCOUNTING POLICIES (CONTINUED)

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 INVESTMENTS

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance Sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Statement of Financial Activities.

1.10 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.

1.11 LIABILITIES AND PROVISIONS

Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of Financial Activities as a finance cost.

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Docusign Envelope ID: D6D176DE-4FC4-4630-98EE-A8FA5C1022F1

ST PANCRAS CHURCH LANDS TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

2. CRITICAL ACCOUNTING ESTIMATES AND AREAS OF JUDGMENT

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions:

The Charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

Critical accounting estimates and assumptions

Investment properties

Investment properties are included in the Balance Sheet at fair value determined by the trustees' and reflects the latest valuation adjusted for the housing price indicies in the respective boroughs. A professional valuation of properties was obtained for the year ended 31 December 2022.

Listed investments

Listed investments are included in the Balance Sheet at fair value determined by the Investment managers. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Statement of Financial Activities.

3. INVESTMENT INCOME

Property income
Dividends and interest from investments
TOTAL 2022		 Restricted
funds
2023
£
15,750
82,112
97,862
112,646		 Total
funds
2023
£
15,750
82,112
97,862
112,646		 Total
funds
2022
£
15,750
96,896
112,646

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

4. COST OF RAISING FUNDS

Investment management fees
Legal costs
Professional costs
TOTAL 2022		 Restricted
funds
2023
£
16,308
1,525
3,300
21,133
13,271		 Total
funds
2023
£
16,308
1,525
3,300
21,133
13,271		 Total
funds
2022
£
13,271
-
-
13,271

5. ANALYSIS OF EXPENDITURE BY ACTIVITIES

Charitable activities
TOTAL 2022		 Grant
funding of
activities
(Note 6)
2023
£
190,010
182,427		 Support
costs
2023
£
13,803
17,870		 Total
funds
2023
£
203,813
200,297		 Total
funds
2022
£
200,297

In 2023, £203,813 (2022 - £200,297) of expenditure was restricted.

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

5. ANALYSIS OF EXPENDITURE BY ACTIVITIES (CONTINUED)

ANALYSIS OF SUPPORT COSTS

Other - general expenses
Other - consultancy fees & expenses
Governance - audit fees
Governance - accountancy fees
Reversal of provision
ANALYSIS OF GRANTS
Distributions to Churches in the Ancient Parish of St Pancras
TOTAL 2022		 Activities
2023
£
486
7,400
10,980
1,500
(6,563)
13,803
Grants to
Institutions
2023
£
190,010
182,427		 Total
funds
2023
£
486
7,400
10,980
1,500
(6,563)
13,803
Total
funds
2023
£
190,010
182,427		 Total
funds
2022
£
54
7,400
8,916
1,500
-
17,870
Total
funds
2022
£
182,427

6. ANALYSIS OF GRANTS

The Charity has made the following material grants to institutions during the year:

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

6. ANALYSIS OF GRANTS (CONTINUED)

St Pancras Parish Church - primary fund
St Pancras Parish Church - first allocation of residue fund
St Pancras Old Church - first allocation of residue fund
St Pancras Parish Church
St Pancras Old Church
St Mark's Church, Regents Park
Holy Trinity Church, Kentish Town
St Anne's Church, Highgate
St Mary's Church, Brookfield
St Silas the Martyr, Kentish Town
St Michael's Church, Camden Town
St Benet’s and All Saints Church
St Paul’s Church, Camden Square
St Mary the Virgin Church, Eversholt Street
Holy Cross Church, Cromer Street
St Martin’s Church, Gospel Oak
Christ Church, Hampstead
St Luke’s Church, Kentish Town		 2023
£
2,133
255
122
12,500
12,500
12,500
12,500
12,500
12,500
12,500
12,500
12,500
12,500
12,500
12,500
12,500
12,500
12,500
190,010		 As restated
2022
£
2,049
256
122
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
182,427

7. AUDITORS' REMUNERATION

The auditors' remuneration amounts to an audit fee of £7,236 (2022 - £6,700), and other services of £1,944 (2022 - £1,800).

8. TRUSTEES' REMUNERATION AND EXPENSES

During the year, no Trustees received any remuneration or other benefits (2022 - £NIL).

During the year ended 31 December 2023, no Trustee expenses have been incurred (2022 - £NIL).

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

9. TANGIBLE FIXED ASSETS

COST OR VALUATION
At 1 January 2023 (as restated)
At 31 December 2023
NET BOOK VALUE
At 31 December 2023
At 31 December 2022		 Freehold
property
£
6,160
6,160
6,160
6,160

The Trust holds the freehold of St Pancras Church on the Euston Road and the adjoining church grounds. The land was purchased by the Trust in 1820 for £6,160. The Parochial Church Council of St Pancras Church (PCC) occupies and controls the land. The PCC retains all income generated from the land and has accepted responsibility for repair, maintenance, insurance etc. The land is not depreciated and is held at its purchase value. As the Trust has an object to own the Church Property and only transfer the freehold with the consent of the Charity Commission and likely only to a related party, the value is included as an Endowment Reserve within Note 13 and as an endowment asset within Note 14.

A small strip of Church Property land was sold to Camden Council in 1981 as part of a scheme relating to the Euston Road for which the acquiring party had compulsory purchase powers. No adjustment has been made to the carrying value of the Church Property in the financial statements since it would be immaterial.

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Docusign Envelope ID: D6D176DE-4FC4-4630-98EE-A8FA5C1022F1

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

10. INVESTMENT PROPERTY

VALUATION
At 1 January 2023
At 31 December 2023		 Freehold
investment
property
£
2,237,500
2,237,500

The valuations have been reconsidered by the trustees as at 31 December 2023 based on valuations provided for the financial year up to 31 December 2022. Valuations have been obtained in 2023 by Andrew Carrick Bsc (Hons) MRICS, of Fifield Glyn Limited, Chartered Surveyors, on an open market value for existing use basis.

11. FIXED ASSET INVESTMENTS

COST OR VALUATION
At 1 January 2023
Additions
Disposals
Revaluations
Movement in cash
AT 31 DECEMBER 2023
NET BOOK VALUE
AT 31 DECEMBER 2023
AT 31 DECEMBER 2022		 Listed
investments
£
5,310,326
648,799
(771,150)
(150,841)
-
5,037,134
5,037,134
5,310,326		 Cash held at
brokers
£
15,203
-
-
-
5,107
20,310
20,310
15,203		 Total
£
5,325,529
648,799
(771,150)
(150,841)
5,107
5,057,444
5,057,444
5,325,529

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Docusign Envelope ID: D6D176DE-4FC4-4630-98EE-A8FA5C1022F1

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

11. FIXED ASSET INVESTMENTS (CONTINUED)

All the fixed asset investments are held in the UK.

All investments are carried at their fair value. Investment in equities and fixed interest securities are all traded in quoted public markets, primarily the London Stock Exchange. Holdings in common investment funds, unit trusts and open-ended investment companies are at the bid price. The basis of fair value for quoted investments is equivalent to the market value, using the bid price. Asset sales and purchases are recognised at the date of trade at cost (that is their transaction value).

The main risk to the Trust from financial instruments lies in the combination of uncertain investment markets and volatility in yield. Liquidity risk is anticipated to be low as all assets are traded and the commitment to intervention by central banks and market regulators has continued to provide for orderly trading in the markets and so their ability to buy and sell quoted equities and stock is anticipated to continue. The Trust’s investments are mainly traded in markets with good liquidity and high trading volumes. The Trust has no material investment holdings in markets subject to exchange controls or trading restrictions.

The Trust manages these investment risks by retaining expert advisors and operating an investment policy that provides a medium degree of diversification of holdings and within investment asset classes that are quoted on recognised stock exchanges.

The Trust does not make use of derivatives or similar complex financial instruments as it takes the view that investments are held for their longer term yield total return and historic studies.

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Amounts payable to beneficiaries of the Trust
Other creditors
Accruals		 2023
£
53,460
3,937
10,680
68,077		 2022
£
45,877
10,501
9,900
66,278

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Docusign Envelope ID: D6D176DE-4FC4-4630-98EE-A8FA5C1022F1

ST PANCRAS CHURCH LANDS TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

13. STATEMENT OF FUNDS

STATEMENT OF FUNDS - CURRENT YEAR

ENDOWMENT
FUNDS
Church property
Primary fund -
capital
Residue fund -
capital
RESTRICTED
FUNDS
Residue fund -
income
Primary fund -
income
TOTAL OF
FUNDS		 Balance at 1
January
2023
£
6,160
46,872
7,576,821
7,629,853
(57,627)
10,487
(47,140)
7,582,713		 Income
£
-
-
-
-
95,729
2,133
97,862
97,862		 Expenditure
£
-
-
-
-
(222,813)
(2,133)
(224,946)
(224,946)		 Transfers
in/out
£
-
(1,165)
(335,847)
(337,012)
335,847
1,165
337,012
-		 Gains/
(Losses)
£
-
(2,526)
(148,315)
(150,841)
-
-
-
(150,841)		 Balance at
31
December
2023
£
6,160
43,181
7,092,659
7,142,000
151,136
11,652
162,788
7,304,788

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

13. STATEMENT OF FUNDS (CONTINUED)

Endowment Funds

The Church property fund comprises the freehold of St Pancras Church on the Euston Road and the adjoining church grounds. The Parochial Church Council of St Pancras Church (PCC) occupies and controls the land. The PCC is entitled to retain income generated from the land and has accepted responsibility for repair, maintenance, insurance etc. The carrying value of the fund represents the original purchase price of the land and is included as an Endowment Fund on the basis that the Trust has an object to own the Church Property and could only transfer the freehold with the consent of the Charity Commission.

The Primary fund - capital, represents the permanent endowment held where the income generated is restricted to a first allocation of £150 of management costs and the balance in grants to the St Pancras Old Church for repair, insurance and maintenance.

The Residue fund - capital, represents the permanent endowment held where the income generated is restricted to a first allocation against management expenses not covered by the primary fund, a second allocation of up to £1,200 to four specific churches and then the balance to be shared by all of the churches or chapels existing within the original limits of the parish of St Pancras, from time to time. The timing of payments to these churches or chapels is at the discretion and management of the Trustees.

Restricted Funds

The Primary Fund - income, records funds generated by the Primary Fund -capital, and their expenditure. It is distributable in line with the restrictions on the fund above.

The Residue Fund - income, records funds generated by the Residue Fund - capital, and their expenditure. It is distributable in line with the restrictions on the fund above.

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ST PANCRAS CHURCH LANDS TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

13. STATEMENT OF FUNDS (CONTINUED)

STATEMENT OF FUNDS - PRIOR YEAR

ENDOWMENT
FUNDS
Church property
Primary fund -
capital
Residue fund -
capital
RESTRICTED
FUNDS
Residue fund -
income
Primary fund -
income
TOTAL OF
FUNDS		 As restated
Balance at
1 January
2022
£
6,160
46,781
7,338,390
7,391,331
As restated
Balance at
1 January
2022
£
(252,989)
9,311
(243,678)
7,147,653		 Income
£
-
-
-
-
Income
£
110,597
2,049
112,646
112,646		 Expenditure
£
-
-
-
-
Expenditure
£
(211,519)
(2,049)
(213,568)
(213,568)		 As restated
Transfers
in/out
£
-
(1,176)
(296,284)
(297,460)
As restated
Transfers
in/out
£
296,284
1,176
297,460
-		 As restated
Gains/
(Losses)
£
-
1,267
534,715
535,982
As restated
Gains/
(Losses)
£
-
-
-
535,982		 As restated
Balance at
31
December
2022
£
6,160
46,872
7,576,821
7,629,853
As restated
Balance at
31
December
2022
£
(57,627)
10,487
(47,140)
7,582,713

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ST PANCRAS CHURCH LANDS TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

14. ANALYSIS OF NET ASSETS BETWEEN FUNDS

ANALYSIS OF NET ASSETS BETWEEN FUNDS - CURRENT YEAR

Tangible fixed assets
Fixed asset investments
Investment property
Current assets
Creditors due within one year
TOTAL		 Restricted
funds
2023
£
-
159,104
-
71,761
(68,077)
162,788		 Endowment
funds
2023
£
6,160
4,898,340
2,237,500
-
-
7,142,000		 Total
funds
2023
£
6,160
5,057,444
2,237,500
71,761
(68,077)
7,304,788

ANALYSIS OF NET ASSETS BETWEEN FUNDS - PRIOR YEAR

Tangible fixed assets
Fixed asset investments
Investment property
Current assets
Creditors due within one year
TOTAL		 Restricted
funds (as
restated)
2022
£
-
-
-
19,138
(66,278)
(47,140)		 Endowment
funds (as
restated)
2022



£
6,160
5,325,529
2,237,500
60,664
-
7,629,853		 Total
funds
(as restated)
2022
£
6,160
5,325,529
2,237,500
79,802
(66,278)
7,582,713

15. RELATED PARTY TRANSACTIONS

Dorothea Hackman and Duncan Lamont trustees of the charity, were also Churchwardens of St Pancras Church, St Pancras Church received a distribution of £14,889 (2022: £14,305) during the year. Judy Powell, a trustee of the charity was also a Churchwarden of St Pauls, Camden Square. During the year St Paul's received a distribution of £12,500 (2022: £12,000).

Sandra Simoni, a trustee of the charity, was also a Churchwarden of St Pancras Old Church. During the year St Pancras Old Church received a distribution of £12,622 (2022: £12,122).

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

16. PRIOR YEAR ADJUSTMENTS

The prior year results have been adjusted to reflect the inclusion of the freehold value of St Pancras Church on the Euston Road and the adjoining church grounds, within fixed assets (see note 9) and endowment funds (see note 13), at its original acquistion value. The impact of this adjustment is to increase endowment reserves by £6,160.

The prior year results have been adjusted to reflect the legal advice received by the Trust that funds previously shown as unrestricted or restricted were endowed funds. As a result of this amendment the Trust no longer holds any unrestricted funds. The Trust has conducted an extensive exercise to access all available prior financial information to establish the split of the capital element of each permanent endowed fund from the unspent income. The Trust has been able to establish this position from 1989 onwards. This position is disclosed in note 13. The impact of this adjustment has been to restate closing funds included in the prior year as Unrestricted £7,519,194 and Restricted £57,359, as Endowed £7,623,693 and Restricted £(47,140).

17. MEMORANDUM OF UNAPPLIED TOTAL RETURN

2023 2022
£ £
Primary fund
Unapplied total return brought forward 5,473,084 5,234,653
Increase in value in year (52,586) 645,312
Application of unapplied total return (431,576) (406,881)
Residue fund 4,988,922 5,473,084
Unapplied total return brought forward 18,509 18,418
Increase in value in year (393) 3,316
Application of unapplied total return (3,298) (3,225)
14,818
18,509

Page 26