## **HYDE PARK PLACE ESTATE CHARITY**
**FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 25TH MARCH 2020**
**Charity Registration Number: 212439**
## **HYDE PARK PLACE ESTATE CHARITY FINANCIAL STATEMENTS FOR THE YEAR ENDED 25TH MARCH 2020**
|**Contents**|**Page**|
|---|---|
|Report of the Trustees|1 - 4|
|Report of the Independent Auditors|5 - 6|
|Statement of Financial Activities|7|
|Balance Sheet|8|
|Statement of Cash Flows|9|
|Notes to the Accounts|10 - 17|
**HYDE PARK PLACE ESTATE CHARITY**
REFERENCE AND ADMINISTRATIVE INFORMATION
## **Charity number**
212439
**Trustees**
_Rector and Churchwardens’ Endowment Fund_ Mr M A Hewitt Revd R N S Leece Mr G Barnes _Ecclesiastical Trustees_ Mr M A Hewitt Revd R N S Leece Mr S Roberts Mr A Jones Mr G Barnes
_Civil Trustees_ Mr M A Hewitt Mrs Lillian Ibbett (Appointed 23 September 2020) Revd R N S Leece Mrs J Prendergast Councillor Mrs H Acton Mrs C Freeman OBE (Resigned 18 September 2019) Mrs A Larkey Mr G Barnes Cllr Mark Shearer (Appointed 18 September 2019)
**Clerk to the Trustees** Ms S Vaughan **Principal office** St George’s Vestry 2A Mill Street London W1S 1FX **Independent Auditor** Mazars LLP 2nd Floor 6 Sutton Plaza Sutton Court Road Sutton Surrey, SM1 4FS
**Bankers** The Royal Bank of Scotland London, Cavendish Square (A) Branch 28 Cavendish Square London W1G 0DB **Investment Managers** Rathbones 8 Finsbury Circus London EC2M 7AZ
CCLA Investment Management Limited Senator House, 85 Queen Victoria Street London EC4V 4ET
(1)
## **HYDE PARK PLACE ESTATE CHARITY**
## REPORT OF THE TRUSTEES
The Trustees have pleasure in presenting their report and the financial statements for the trusts for the year ended 25th March 2020. The financial statements are prepared in accordance with the Charities Act 2011, the Charities Statement of Recommended Practice (Charities SORP (FRS 102)) as amended by Update Bulletin 1) and Financial Reporting Standard 102 (FRS 102) and the accounting policies set out on pages 8 and 9.
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **Governing Document**
The charity was established under a Scheme approved by order of the Chancery Division dated 7[th] May 1914 as varied by Schemes of the Charity Commission dated 4[th] July 1968 and 6[th] July 1989. Charity number: 212439.
## **Recruitment, Appointment and Induction of Trustees**
## _Ecclesiastical Trustees_
These are the Rector and Churchwardens _ex officio_ and two other persons, all appointed by the Parochial Church Council of St George’s, Hanover Square.
## _Civil Trustees_
These are the Rector and Churchwardens _ex officio_ and five other persons, all appointed by Westminster City Council.
New Trustees undergo an induction to brief them on their legal obligations under charity law, the content of the Schemes and the decision-making processes of the Charity. They meet key members of the management and other Trustees.
## **Risk management**
A risk management programme is in place and, where appropriate, systems or procedures are established to mitigate any risks the charity might face. These procedures, along with the Risk Register, are regularly reviewed to ensure that they continue to meet the needs of the charity.
## **Organisational Structure**
The Ecclesiastical Trustees meet twice yearly to discuss income allocations and other requests for financial assistance brought by the clergy of the district churches which were carved out of the original Parish.
The Civil Trustees meet four times a year to discuss grant applications and other requests for financial assistance from residents of the London Borough of the City of Westminster.
In each case, the Clerk to the Trustees has been appointed to manage the day-to-day operations of the Charity, which include finance and other operations in the support of the Charity’s objects.
## **Key Management Personnel**
The key management personnel of the charity are in charge of directing, controlling, running and operating the charity on a day to day basis. As such they are considered to be the following:
- The Trustees
- The Clerk
All Trustees give of their time freely and no Trustee received any remuneration in the year, except as set out in Note 3.
## **Related Parties**
St George’s Church, Hanover Square with The Grosvenor Chapel, South Audley Street is a charity with the responsibility of co-operating with the incumbent, The Revd. Roderick Leece and the Priest-in-charge of the Grosvenor Chapel, The Revd. Dr Richard Fermer, in promoting within and beyond the ecclesiastical parish the whole mission of the Church: spiritual, pastoral, social and ecumenical. It also has responsibilities for maintaining the Church of St George, Hanover Square and the Grosvenor Chapel, South Audley Street. The Church Rector Revd. Roderick N S Leece, Mr M A Hewitt and Mr G Barnes, members of the Church PCC, are Trustees of this charity. The Church receives grant funding and loans from this charity.
(2)
## **HYDE PARK PLACE ESTATE CHARITY**
## REPORT OF THE TRUSTEES (continued)
St George’s Hanover Square Foundation is a charity set up to support the repair and maintenance of the fabric and facilities of St George’s Church, Hanover Square. The Rector, Revd. Roderick N S Leece and Mr M Hewitt, are Trustees of this charity. The charity makes grants to St George’s Hanover Square Foundation.
Details of transactions taking place with related parties, are shown in notes 3 and 10 to the financial statements.
## **OBJECTIVES AND ACTIVITIES**
## **Objects and Principal Activities**
The purpose of the Charity, as defined in the Schemes described above, is to pay moieties to the Ecclesiastical and Civil Trustees from net income, deriving from the endowment of the charity from land in Paddington which had been bought by the Rectors and Churchwardens of St George’s, Hanover Square in 1769 for laying out as a burial ground. The moiety paid to the Ecclesiastical Trustees is applied, after certain fixed payments to the Rector and Churchwardens of the Parish Church, towards the preservation and maintenance of the district churches which had been carved out of the original parish, in discretionary gifts to the clergy of such churches, or for any ecclesiastical purpose within the said district.
The moiety paid to the Civil Trustees is to be applied for the benefit of persons in the London Borough of The City of Westminster in the relief of need, in relief of sickness or for advancement of life.
The Trustees confirm that they have had due regard to the guidance on public benefit issued by the Charity Commission when planning the charity’s objectives and activities for the year.
## **Grant making policy**
The charity makes grants to individuals and applications are invited and reviewed against specific criteria, as well as the objects of the charity, to determine whether a grant should be made. The use of grants is monitored through reports back from those receiving grants.
The beneficiaries of the Ecclesiastical Charity, namely the district churches, clergy and other ecclesiastical organisations within the old historic parish of St George’s Hanover Square, are kept informed of the grant making facilities available.
The Civil Charity, which exists to support the people and organisations within the City of Westminster, is listed in a number of charity directories, and information is available on our website. The charity has on-going relations with a number of organisations in the City of Westminster, including City of Westminster Social Services, St John’s Hospice, Age UK Westminster, Family Lives, Home-Start Westminster, Octavia Housing and Single Homeless Project. Applications are invited from all these organisations, and grants are made on a regular basis.
## **REVIEW OF OPERATIONS IN THE YEAR**
## **Civil Trustees**
During the year, total grants made of £230,285 were made by Civil Trustees (2019: £232,815) to be applied for the benefit of residents of the London Borough of the City of Westminster. The Charity has enjoyed very positive feedback from the beneficiaries during the year. These grants were paid from receipts which totalled £224,212 in 2020 (2019: £299,883). The fund balance at the end of the year was £121,538 (2019: £143,206).
## **Ecclesiastical Trustees**
During the year, total distributions of £282,510 were made by the Ecclesiastical Trustees (2019: £539,811) to be applied for the benefit of the district churches and their clergy, subsequent to fixed payments to the Rector and Churchwardens of St George’s, Hanover Square, as stipulated under the terms of the Schemes. These were paid from moiety transfers of £218,000 (2019: £294,000) and net income of £108,331 (2019: £113,973). The fund balance at the end of the year was £581,337 for the General fund and £143,427 for the Pension Fund (2019: £588,896 and £148,817 respectively).
## **Rector and Churchwardens’ Endowment Fund**
The excess of income over expenditure for the year was £500,431(2019: £609,171). Moieties totalling £436,000 (2019: £588,000) were paid to Ecclesiastical and Civil Trustees during the year. The balance at the end of the year was £290,923 (2019: £226,496).
3)
## **HYDE PARK PLACE ESTATE CHARITY**
## REPORT OF THE TRUSTEES (continued)
## **Land values**
In the opinion of the trustees, the freehold properties, which have been included in the accounts at nil net book value, have a market value which it is considered impracticable to ascertain.
## **FINANCIAL REVIEW**
The charity derives the vast majority of its ongoing income from its listed investments, and also charges ground rent on the properties of 12 and 21 Hyde Park Place.
As at 25 March 2020, the charity held £1,137,225 of restricted funds and £12,822,592 of endowment funds.
## **Investment powers and policy**
The Trustees’ policy is to maintain income whilst preserving the real value of endowment funds. The funds are invested, as permitted by the scheme approved by order of the Chancery Division dated 7th May 1914 as varied by orders of the Charity Commission dated 4th July 1968 and 6th July 1989, as quoted investments managed by Rathbones Investment Managers.
## **Risks**
The major risks facing the charity and mitigating actions are:
- Destruction of premises housing the Charity – risk mitigated by alarm system, off-site data back up and insurance policy.
- Staff safety issues are dealt with by vigilance, CCTV surveillance and access control.
- Remaining lesser risks and remedial steps are detailed in risk register referred to previously.
The Trustees have considered the impact of the withdrawal of the United Kingdom from the European Union (Brexit). The Trustees are monitoring events and their potential impact on the charity, however at this stage Brexit is not expected to have a significant impact on the charity.
The trust gains the majority of its income from investments. The current Coronavirus pandemic has had a direct effect on share performance and dividend policies. The Trustees anticipate that this will have a short term impact on the levels of income received, but expect this to increase once more and become more predictable once again in the short term.
## **Reserves policy**
The charity has no ‘free’ reserves as all the funds are restricted and have to be distributed in accordance with the laid down criteria. A reserves policy as such is therefore inappropriate.
## **PLANS FOR THE FUTURE**
The trustees plan to continue to operate the charity in accordance with the governing documentation, and will look to explore any new investment vehicles that may increase the income available, whilst securing the charity’s capital assets over the medium term. It is not expected that any pension will be payable from the Ecclesiastical Trustees Pension Fund in the foreseeable future. The trustees will therefore seek to invest the income received to date in a long term investment vehicle, offering the potential for greater returns, until the funds are deemed necessary.
## **STATEMENT OF TRUSTEES’ RESPONSIBILITIES**
The Trustees are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Charity law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the trust and of its income and expenditure for that period. In preparing those financial statements, the Trustees are required to:
- select suitable accounting policies and apply them consistently;
- observe the methods and principles in the Charities SORP
- make judgements and estimates that are reasonable and prudent;
- state whether applicable United Kingdom Accounting Standards have been followed, subject to any material
(4)
## **HYDE PARK PLACE ESTATE CHARITY**
## REPORT OF THE TRUSTEES (continued)
- departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Trusts will continue in operation.
The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the trust and which enable them to ascertain the financial position of the trust and which ensure that the financial statements comply with the scheme dated 7th May 1914 as varied by the Orders dated 4th July 1968 and 6[th] July 1989 and the Charities Act 2011. They are also responsible for safeguarding the assets of the trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
FOR AND ON BEHALF OF THE TRUSTEES
The Vestry 2a Mill Street London W1S 1FX 25/01/2021 Dated: …………………….
Mark Hewitt (Jan 25, 2021 13:14 GMT)
Mr M A Hewitt **Trustee**
(5)
## REPORT OF THE INDEPENDENT AUDITORS
## TO THE TRUSTEES OF
## **HYDE PARK PLACE ESTATE CHARITY**
## **Opinion**
We have audited the financial statements of Hyde Park Place Estate Charity (the ‘charity’) for the year ended 25 March 2020 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, 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 FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
- give a true and fair view of the state of the charity’s affairs as at 25 March 2020 and of its income and expenditure 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 requirements of the Charities Act 2011.
## **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 Auditor’s 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 UK, including the FRC’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**
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
- the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
- the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charity’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
## **Other information**
The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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**
In light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.
(6)
## REPORT OF THE INDEPENDENT AUDITORS
## TO THE TRUSTEES OF
## **HYDE PARK PLACE ESTATE CHARITY**
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports)
Regulations 2008 require us to report to you if, in our opinion:
- the information given in the financial statements is inconsistent in any material respect with the Report of the Trustees; or
- sufficient accounting records have not been kept; or
- the financial statements are not in agreement with the accounting records; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of Trustees**
As explained more fully in the trustees’ responsibilities statement set out on pages 3 and 4, the trustees are responsible for the preparation of the financial statements and for being satisfied that they 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.
## **Auditor’s responsibilities for the audit of the financial statements**
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 auditor’s 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.
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 auditor’s report.
## **Use of the audit report**
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and regulations made or having effect thereunder. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK). Those standards require us to comply with the Financial Reporting Council’s Ethical Standard. 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 auditor’s 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 the charity’ trustees as a body for our audit work, for this report, or for the opinions we have formed.
Signed: Mazars LLP (Jan 25, 2021 13:34 GMT)
Mazars LLP Chartered Accountants and Statutory Auditor 2nd Floor, 6 Sutton Plaza, Sutton Court Road, Sutton, Surrey, SM1 4FS
## 25/01/2021
## Dated: ………………………
Mazars LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.
(7)
## **HYDE PARK PLACE ESTATE CHARITY**
## STATEMENT OF FINANCIAL ACTIVITIES
FOR THE YEAR ENDED 25TH MARCH 2020
|**Note**
**Income and endowments from**
7
Investments
Other income
**Total income**
**Expenditure on**
Raising funds
7
Charitable activities
7
**Total expenditure**
**Net income/(expenditure) before gains**
**on investments**
Net (losses)/gains on investments
7,8
**Net movements in funds**
**Reconciliation of funds**
Fund balances at 26th March 2019
**Fund balances at 25th March 2020**|**Restricted**
**Funds**
**2020**
**£**
522,362
106,212
628,574
-
535,072
535,072
93,502
(63,688)
29,814
**1,107,411**
**1,137,225**|**Endowment**
**Funds**
**2020**
**£**
-
-
-
51,227
-
51,227
(51,227)
(1,684,096)
(1,735,323)
**14,557,915**
**12,822,592**|**Total**
**Funds**
**2020**
**£**
522,362
106,212
628,574
51,227
535,072
586,299
42,275
(1,747,784)
(1,705,509)
**15,665,326**
**13,959,817**|**Restricted**
**Funds**
**2019**
**£**
568,992
172,975
741,967
300
794,298
794,598
(52,631)
56,052
3,421
**1,103,990**
**1,107,411**|**Endowment**
**Funds**
**2019**
**£**
-
-
-
54,540
-
54,540
(54,540)
526,587
472,047
**14,085,868**
**14,557,915**|**Total**
**Funds**
**2019**
**£**
568,992
172,975|
|---|---|---|---|---|---|---|
|||||||741,967|
|||||||54,840
794,298|
|||||||849,138|
|||||||(107,171)
582,639|
|||||||475,468
**15,189,858**|
|||||||**15,665,326**|
(8)
## **HYDE PARK PLACE ESTATE CHARITY**
## BALANCE SHEET
## AS AT 25TH MARCH 2020
|**2020**
**Note**
**£**
**Fixed assets**
Investments
2
**Long term debtors**
Loan
**Current assets**
5
Debtors
5
133,093
Investments
4
65,024
Cash at bank
850,413
1,048,530
**Creditors**: Amounts falling due
within one year
6
(1,923,683)
**Net current (liabilities)**
**Net assets**
9
**Reserves**
Restricted funds
7
Endowment funds
8|
**£**
13,057,766
1,777,204
(875,153)
13,959,817
1,137,225
12,822,592
13,959,817|**2019**
**£**
154,848
78,770
751,032
984,650
(1,981,548))|
**£**
14,858,564
1,803,660
(996,898)|
|---|---|---|---|
||||15,665,326|
||||1,107,411
14,557,915|
||||15,665,326|
Approved by the Board of Trustees on ………………….., and signed on its behalf by: 25/01/2021
Mark Hewitt (Jan 25, 2021 13:14 GMT)
Mr M A Hewitt **Trustee**
(9)
## **HYDE PARK PLACE ESTATE CHARITY**
## STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 25TH MARCH 2020
|
**Cash provided by/(used in)**
**operating activities**(see below)
**Cash flows from investing activities**
Proceeds from the sale of investments
Purchase of investments and reinvestment
**Cash provided by investing activities**
**Net cash inflow/(outflow)**
Cash and cash equivalents at 26 March 2019
**Cash and cash equivalents at 25 March**
**2020**
**Cash flows from operating activities:**
**Net income/(expenditure)**
Decrease(Increase) in debtors
(Decrease)/increase in creditors
**Cash provided by/(used in) operating activities**|**2020**
**£**
1,952,958
(1,899,889)|
**£**
32,566
53,069
85,635
829,802
915,437
42,275
48,156
(57,865)
32,566|**2019**
**£**
**£**
**£**
(136,307)
1,335,250
(1,281,038)
54,212
(82,095)
911,897
829,802
(107,171)
(1,063,549)
1,034,413
(136,307)|
|---|---|---|---|
(10)
## **HYDE PARK PLACE ESTATE CHARITY** NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 25TH MARCH 2020
## **1 ACCOUNTING POLICIES**
## **(a) Legal form**
Hyde Park Place Estate Charity is an unincorporated, registered charity, with its principal office at St George’s Vestry, 2A Mill Street, London W1S 1FX.
## **(b) Accounting convention**
The financial statements are prepared in accordance with the Charities Act 2011, the Charities Statement of Recommended Practice (Charities SORP (FRS 102)) as amended by Update Bulletin 1) and Financial Reporting Standard 102 (FRS 102).
The financial statements are drawn up on the historical cost basis of accounting, as modified by the revaluation of investment properties and other investments.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The charity meets the definition of a public benefit entity under FRS102.
## **(c) Going concern**
The financial statements for the year ended 25 March 2020 show net current liabilities of £875,153 (2019: net current liabilities £996,898). The reason for the net current liabilities is due to a loan drawdown from Rathbones, which the charity have subsequently loaned to St George’s Church, Hanover Square. The loan to St George’s Church Hanover Square is a long term loan, whereas the loan from Rathbones is repayable on demand, therefore treated as a current liability.
The loan from Rathbones is secured against the investment portfolio, as explained in note 6 of the financial statements. The trustees consider that there are no material uncertainties about the charity’s ability to continue as a going concern.
## **(d) Income**
Income is accounted for when receivable.
## **(e) Expenditure**
_Raising funds_
This relates to commission to Estate Agents for collection of rent.
_Charitable activities_
Charitable expenditure is expenditure of the charity to fulfil its objects.
Grants and moiety payments are accounted for when paid or awarded, if that award creates a binding obligation on the charity.
It also includes the grants paid to cover the cost of repairs to properties and other sundry expenses.
(11)
## **HYDE PARK PLACE ESTATE CHARITY**
## NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 25TH MARCH 2020 (continued)
## **(f) Investments**
Investments are shown in the balance sheet at value based the fair value at that date.
Realised gains or losses on disposal of investments are calculated by reference to the last year end market value or acquisition cost if later. Realised and unrealised gains or losses are accounted for through the Statement of Financial Activities for the year.
The trustees consider that it is impracticable to ascertain the market values of its freehold properties, as they are held on long leaseholds and are therefore shown at nil value. Occasionally properties are sold and therefore market value can be ascertained for that particular property. Once this is available the property is recognised at market value.
## **(g) Debtors**
Grants receivable and other debtors are included at the settlement amount due. Prepayments are valued at the amount prepaid.
## **(h) 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 opening of the deposit.
## **(i) Creditors and provisions**
Creditors and provisions are recognised where the charity has a present obligation arising from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are recognised at their settlement amount.
## **(j) Financial instruments**
The charity only has financial assets and 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.
## **(k) Funds**
The endowment of the charity represents those investments which must be held permanently by the charity. The distribution of the income from these investments is restricted by way of one moiety of half of the income to be paid to the Ecclesiastical Trustees of the Charity and the other moiety paid to the Civil Trustees.
The fund transfer is in accordance with the scheme regulated by order of the Chancery Division dated 7[th] May 1914 as varied by the Charity Commission Orders dated 4[th] July 1968 and 6[th] July 1989.
(12)
## **HYDE PARK PLACE ESTATE CHARITY**
## NOTES TO THE ACCOUNTS
## FOR THE YEAR ENDED 25TH MARCH 2020
(continued)
## **2 FIXED ASSET INVESTMENTS**
|**Charities Central Board of**
**Official Finance of Church**
**Investment Fund of England**
**Income**
**Investment**
**Freehold**
**Listed**
**Shares**
**Shares**
**Properties**
**Investments**
**£**
**£**
**£**
**£**
Market value at 26th March 2019
1,468,186
2,777,112
-
10,613,266
Less: Disposals at opening market
value
-
-
(1,909,065)
Add: Acquisitions at cost
-
-
-
1,899,889
Unrealised (losses) on revaluation
(81,054)
(184,607)
-
(1,525,962)
Market value at 25th March 2020
1,387,132
2,592,505
-
9,078,129
Historical cost at 25th March 2020
946,394
235,987
-
8,699,664|**Total**
**2020**
**£**
14,858,564
(1,909,065)
1,899,889
(1,791,622)|
|---|---|
||13,057,766|
||9,852,045|
Hyde Park Place Estate Charity has 2 loans totalling £1,837,204 (2019: 2 loans totalling £1,863,660) outstanding with Rathbones Investment, secured against their listed investment portfolio.
Included in Listed Investments are cash deposits under the management of the Investment Managers totalling £198,142 (2019: £336,591).
The investments are split between direct and indirect investments as follows:
|he investments are split between direct and indirect investments as follows:||
|---|---|
|Direct
Indirect|**£**
6,271,604
6,786,162|
||13,057,766|
## **3 TRUSTEES’ TRANSACTIONS**
As the incumbent of St George’s Church, Hanover Square, Revd R N S Leece received moieties of £38,676.12 (2019: £40,782) and grants of £7,300 (2019: £7,800) as stipulated under the terms of the Schemes. During the year social security costs of £6,074 (2019: £12,417) were paid. He is also owed £43,000 (2019: £58,359) from the sale of leases at the year end.
During the year, no income was received from trustees and no reimbursed expenses were paid to trustees.
(13)
## **HYDE PARK PLACE ESTATE CHARITY**
## NOTES TO THE ACCOUNTS
## FOR THE YEAR ENDED 25TH MARCH 2020
## (continued)
## **4 CURRENT ASSET INVESTMENTS**
Current asset investments represents funds held on deposit in the UK.
## **5 DEBTORS**
|**DEBTORS**|||
|---|---|---|
|Debtors due after more than one year:
Loan to St George’s Church, Hanover Square
Accrued interest and dividends
Other debtors
Loan to St George’s Church, Hanover Square|**2020**
**£**
1,777,204
24,735
48,358
60,000
133,093|**2019**
**£**
1,803,660
30,510
64,338
60,000|
|||154,848|
## **6 CREDITORS**
|Sundry creditors
Accruals
Grants payable
Loan from Rathbones
Social Security|**2020**
**£**
10,884
73,318
-
1,837,204
2,277
1,923,683|**2019**
**£**
13,126
89,862
14,900
1,863,660
-|
|---|---|---|
|||1,981,548|
The loan from Rathbones is secured on the charity’s investment portfolio.
(14)
## **HYDE PARK PLACE ESTATE CHARITY**
## NOTES TO THE ACCOUNTS
## FOR THE YEAR ENDED 25TH MARCH 2020
(continued)
## **7 RESTRICTED FUNDS**
|**Rector & Churchwardens**
**Ecclesiastical**
**Endowment**
**Trustees**
**Income**
**General**
**Pension Fund**
**Fund**
**Fund**
**Income**
**Income and endowments**
**from**
**_£_**
**_£_**
**_£_**
Rents receivable
1,000
-
-
UK listed investment income
408,031
112,386
-
Interest receivable
-
945
-
Other Income – lease
extension
100,000
-
-
**Total income and**
**endowments**
509,031
113,331
-
**Expenditure on**
_Raising funds: _
Rent collection commission
-
-
-
_Charitable activities: _
Grants made (Note 11)
-
42,850
-
Payments to Incumbents
-
53,240
-
Payments to Assistant
Clergy
-
17,750
-
Moieties to Rector and
Churchwardens of
St George’s Church
-
119,538
-
Payments for maintenance
of St George’s Church
-
48,772
-
Secretarial expenses
-
5,000
-
Bank charges and interest
9
-
-
Trustees’ liability insurance
486
-
-
Other expenditure
Governance: Audit and
Accountancy
- Current year
8,105
-
-
**Total expenditure**
8,600
287,150
-
Net (losses) on investments
-
(51,740)
(5,390)
**Net income / (expenditure)**
500,431
(225,559)
(5,390)
**Transfer between funds**
(436,000)
218,000
-
**Net movement in funds**
64,431
(7,559)
(5,390)
Fund balances at 26thMarch
226,492
588,896
148,817
2019
**Fund balances at 25th March**
**2020**
290,923
581,337
143,427|**Civil**
**Trustees**
**_£_**
-
-
-
6,212
6,212
-
230,285
-
-
-
-
9,000
37
-
-
239,322
(6,558)
(239,668)
218,000
(21,668)
143,206
121,538|**Total**
**2020**
**_£_**
1,000
520,417
945
106,212
628,574
-
273,135
53,240
17,750
119,538
48,772
14,000
46
486
8,105
535,072
(63,688)
29,814
-
29,814
1,107,411
1,137,225|**Total**
**2019**
**_£_**
1,400
560,970
6,622
172,975|
|---|---|---|---|
||||741,967|
||||300|
||||469,225
60,840
21,200
157,491
63,870
13,995
(66)
1,628
6,115|
||||794,598|
||||56,052|
||||3,421
-
3,421
1,103,990|
||||1,107,411|
(15)
## **HYDE PARK PLACE ESTATE CHARITY**
## NOTES TO THE ACCOUNTS
## FOR THE YEAR ENDED 25TH MARCH 2020
(continued)
## **7 RESTRICTED FUNDS (continued)**
The endowment of the charity represents those investments which must be held permanently by the charity. It is the net income received by the Rector and Churchwardens of St George’s, Hanover Square, from land in Paddington which had been bought by them in 1769 for laying out as a burial ground. It is regulated by order of the Chancery Division dated 7[th] May 1914 as varied by the Charity Commission Orders dated 4[th] July 1968 and 6[th] July 1989. Any capital gains and losses arising on the investments form part of the fund. Investment management charges and legal advice relating to the fund are charged against the fund.
The scheme requires the distribution of the income which is restricted by way of one moiety or half of the income to be paid to the Ecclesiastical Trustees of the Charity and the other moiety to the Civil Trustees.
The moiety paid to the Ecclesiastical Trustees is restricted to certain fixed payments to the Rector and Churchwardens of the Parish Church, towards the preservation and maintenance of the district churches which had been carved out of the original parish, in discretionary gifts to the clergy of such churches, or for any ecclesiastical purpose within the said district.
The moiety paid to the Civil Trustees is to be applied for the benefit of persons in the London Borough of The City of Westminster in the relief of need, in relief of sickness or for advancement of life.
## **8 ENDOWMENT FUNDS**
|**Rector and**
**Churchwardens**
**Endowment**
**Capital**
**Fund**
**_£_**
Fund balances at 26thMarch 2019
11,354,081
Investment managers’ fees
(51,227)
Gains on realisations of investments
43,838
Unrealised (losses) on investments
(1,525,961)
Fund balances at 25thMarch 2020
9,820,731|**Ecclesiastical**
**Trustees**
**Burial Pension Fund -**
**Fund**
**Capital**
**_£_**
**_£_**
2,736,591
467,243
-
-
-
-
(184,607)
(17,366)
2,551,984
449,877|**Total**
**Funds**
**2020**
**_£_**
14,557,915
(51,227)
43,838
(1,727,934)|
|---|---|---|
|||12,822,592|
The endowment funds are described in note 7 above.
## **9 NET ASSETS BY FUND**
|Fixed asset investments
Long term debtors
Net current liabilities
Total net assets|**Restricted**
**Funds**
**£**
235,174
1,777,204
(875,153)
1,137,225|**Endowment**
**Funds**
**£**
12,822,592
-
-
12,822,592|**Total**
**Funds**
**£**
13,057,766
1,777,204
(875,153)|
|---|---|---|---|
||||13,959,817|
(16)
## **HYDE PARK PLACE ESTATE CHARITY**
## NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 25TH MARCH 2020 (continued)
## **10 RELATED PARTY TRANSACTIONS**
_St George’s Church, Hanover Square with The Grosvenor Chapel, South Audley Street_
The charity had the following transactions with St George’s Church:
- paid general moieties in the year of £81,228 (2019: £73,286);
- paid leases moieties in the year of £nil (2019: £33,000);
- made payments and grants in the year totalling £19,234 (2019: £235,510) for the maintenance of St George’s Church;
- paid £14,000 during the year (2019: £14,000) for secretarial assistance. Secretarial assistance is provided by the Clerk, S Vaughan, who is considered Key Management Personnel;
- provided a loan of £650,000 in 2011 which has been extended so that repayment that was originally due by December 2017, has been reviewed and extended annually. After accumulated interest, the total outstanding loan is £212,241 (2019: £266,782) at the year end; and
- provided loans to the value of £1,585,000 in 2018 and 2019. After accumulated interest, the total outstanding loan is £1,623,373 (2019: £1,596,878) at the year end.
_St Georges Hanover Square Foundation_
The charity had the following transactions with St George’s Hanover Square Foundation:
- paid general moieties in the year of £28,972 (2019: £44,070);
- paid leases moieties in the year of £19,800 (2019: £19,800).
## **11 GRANTS MADE**
Grants payable for the relief of hardship, the relief of sickness and the advancement of education comprise of the following:
|**Institutional**
Age UK Westminster
Asthma Relief
Cardboard Citizens
Cardinal Hume Centre
Central London Samaritans
Church Homeless Trust
Create (Arts) Ltd
Crisis UK
Depaul UK
DreamArts
Encouragement Through the Arts and Talking
FareShare
Foundations for Young Musicians
Future Frontiers
Groundswell
Inter Act Stroke Support
Carried forward|**Civil**
**Ecclesiastical**
**2020**
**Total**
**£**
**£**
**£**
5,000
5,000
5,000
5,000
2,000
2,000
5,000
5,000
5,000
5,000
5,000
5,000
4,848
4,848
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
3,000
3,000
4,746
4,746
5,000
5,000
1,609
1,609|
|---|---|
||71,203
-
71,203|
(17)
## **HYDE PARK PLACE ESTATE CHARITY**
## NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 25TH MARCH 2020 (continued)
## **11 GRANTS MADE (continued)**
|Brought forward
Iris Theatre
Listening Books
London Firebird Orchestra
London Music Masters
Mayfair Community Choir
Motor Neurone Disease Association
Mousetrap Theatre Projects
North Paddington Youth Club
Octavia Foundation
Orpheus Sinfonia Foundation
Pimlico Toy Library
Police Community Clubs of Great Britain
Shakespeare Schools Foundation
Shelter
Soho Parish Primary School
South Westminster Community Festival
St Augustine’s CE Primary School
St Barnabas, Pimlico
St Gabriel’s, Pimlico
St George’s Hanover Square
St George’s School
St John’s Hospice
St Vincent’s Family Project
The Avenues Youth Project
The Children’s Literacy Charity
The Food Chain
The Grosvenor Chapel
The Marylebone Project
The Passage
The Royal National College for the Blind
Westbourne Park Family Centre
Westminster Boating Base
Whizz Kidz
Woman’s Trust
Other grants
Write back of individual grant from prior year|**Civil**
**Ecclesiastical**
**2020**
**Total**
**£**
**£**
**£**
71,203
-
71,203
2,000
-
2,000
3,000
-
3,000
2,000
-
2,000
5,000
-
5,000
2,000
-
2,000
5,000
-
5,000
5,000
-
5,000
5,000
-
5,000
5,000
-
5,000
2,500
-
2,500
5,000
-
5,000
2,800
-
2,800
2,000
-
2,000
5,000
-
5,000
5,000
-
5,000
1,500
-
1,500
3,090
-
3,090
-
17,500
17,500
-
20,000
20,000
17,984
1,250
19,234
5,000
4,000
9,000
5,000
-
5,000
5,000
-
5,000
5,000
-
5,000
5,000
-
5,000
3,641
-
3,641
15,000
15,000
5,000
-
5,000
5,000
-
5,000
4,795
-
4,795
5,000
-
5,000
5,000
-
5,000
5,000
-
5,000
5,000
-
5,000
16,772
-
16,722
-
(14,900)
(14,900)|
|---|---|
||230,285
42,850
273,135|