OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2024-03-31-accounts

HACKNEY JOINT ESTATE CHARITY

Charity Registration No. 219875

HACKNEY JOINT ESTATE CHARITY

REPORT AND FINANCIAL STATEMENTS

31 MARCH 2024

HACKNEY JOINT ESTATE CHARITY

Page
Legal and administrative information 1
Report of the Trustee 2
5
Statement of financial activities 8
Balance sheet 10
Statement of cashflows 11
Notes to the financial statements 12

HACKNEY JOINT ESTATE CHARITY

LEGAL AND ADMINISTRATIVE INFORMATION

Governing Instrument Charity Commission Scheme dated 1 March 1898 as amended by Scheme dated 24 August 2004 and Scheme dated 23 July 2010. Trustee Hackney Endowed Trustee Limited. The Trustee is the o owner of the assets and liabilities of the Charity. Directors of the Trustee Hackney Parochial Charities Ms M Cannon Councillor C Kennedy Mr A Hilton Cllr. R Chapman Cllr. S Patrick South Hackney Parochial Charity Mr D Paul-Worika Mrs J Andrews Cllr. J Ogunndemuren West Hackney Parochial Charities Mr I Malik (Chair) Ms K Johnson Reverend Justin Gau Charity registered number 219875 Clerk to the Trustee Kellie Carson resigned 5 July 2024 then Benjamin Janes The Trust Partnership 6 Trull Farm Buildings Tetbury Gloucestershire GL8 8SQ Auditor Woodlands Grange Woodlands Bradley Stoke Bristol BS32 4JY Property Agents Strettons Ltd Central House 189 - 203 Hoe Street London E17 3SZ Legal advisors Charles Russell Speechly LLP 5 Fleet Place London EC4M 7RD Bankers CAF Bank 30 Old Broad St, London EC2N 1HT The Charity Bank Limited Fosse House, 182 High St Tonbridge TN9 1BE

Page 1

HACKNEY JOINT ESTATE CHARITY

REPORT OF THE TRUSTEE

The financial statements have been prepared in accordance with the accounting policies set out on pages 12 to 14 applicable to that Act, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

The year

These accounts record the 418th year of our stewardship of the gifts of Hackney people to their fellow parishioners. In 1898 the management of these assets was united in this single body. In line with the 1898 Scheme, the income from these assets is used to repair and insure the property with the remaining income being distributed to three parochial charities in the Borough of Hackney. These bodies appoint the Directors of the Corporate Trustee known as Hackney Endowed Trustee Ltd.

Structure, governance and management

Role

The role, as defined by section 17 of the 1898 Scheme, is to manage the endowed Estate. This consists of historic properties in Hackney comprising long and short residential leaseholds, shops, and office/commercial units. The Trustee regards itself as accountable to the three beneficiary grant-making charities: Hackney Parochial Charity, West Hackney Parochial Charity, and South Hackney Parochial Charity. In turn, the Parochial Charities, who are individually registered with the Charity Commission, make grants to local causes in need, such as youth groups, parenting groups and individuals in need, as well as providing social housing through almshouses.

Director appointment

There were no new Directors appointed during the year. The constitution and governance is kept under review and no major change has been seen, as necessary. Directors are appointed to the Corporate Trustee, Hackney Endowed Trustee Limited and are put forward by Hackney Parochial Charities, South Hackney Parochial Charity and West Hackney Parochial Charities, in accordance with the governing documents.

Operations

The Directors of the Trustee meet quarterly with standing arrangements and delegations permitting effective decision making between meetings. Sub-committees and Working Parties are established as required. The Clerk does not have direct operational control of the Estate, but instead facilitates the decision making of the directors and executes those decisions. The committee consists of three or more board Directors, each also representing their constituent charity (West Hackney Parochial Charity, Hackney Parochial Charities, and the South Hackney Parochial Charity), to facilitate broad consent and decision making.

Key management personnel

The Directors of the Trustee consider that they comprise the key management of the charity in charge of directing and controlling, running, and operating the charity on a day to day basis. The Directors receive no remuneration.

Risk management

The Charity regularly reviews its risk policies and procedures. Directors maintain a risk register which is regularly updated and considered at quarterly meetings by the Board of Directors. The impact of the Covid19 pandemic on operations, activities and future plans is considered below. In terms of the impact of the pandemic on risk, Directors consider the main impact to be a reduced rental income particularly from commercial units and the potential for a loss of fixed asset value. In summary, the main risks to the Charity are considered to be:

Financial Risk - Properties remaining vacant awaiting redevelopment. Reduction in income from rents from market fluctuations especially during and after the Covid pandemic. Reduced asset valuation in real terms. Additional cost to the current refurbishment programme from shutdown during the pandemic when building supplies were unavailable and an increase in the Contract Sum for the works to 204-210 Well Street as a result of essential unforeseen works.

Page 2

HACKNEY JOINT ESTATE CHARITY

REPORT OF THE TRUSTEE

Risk management (continued)

Mitigation - Regular Board meetings with commercial agents, Strettons, to review empty properties and ensure rent reviews and collections are conducted on time. Strategic review of asset management planned. Additional Director meetings with project managers and advisors during the pandemic and the refurbishment.

Statement of Trustee s responsibilities

The Trustee is responsible for preparing the T accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the Trustee to prepare accounts for each financial year which give a true and fair view of the state of affairs of the charity and of the income and expenditure of the charity for that period. In preparing these accounts, the trustees are required to:

The Trustee is responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the accounts comply with the Charities Act 2011, applicable Charity (Accounts and Rep

constitution. 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.

Objectives and activities

The object of the Charity is to manage its endowed property portfolio to maximise the net rental income (after costs) for distribution to three beneficiaries: Hackney Parochial Charities, South Hackney Parochial Charities and West Hackney Parochial Charities. The Trustee continues to implement its ten-year strategy and to reaffirm Hackney. The main activity throughout the year has been to maintain the property portfolio in order to protect its value for the long term. Individual vacant properties are refurbished as necessary and re-let as soon as possible to minimise loss of income through voids.

Public benefit

public benefit. The purpose of the Charity is to distribute surplus income to three individual parochial charities each charity with separate identifiable objectives to relieve hardship and need to the public within the local community. A distribution of £nil was made in the year. (2023 - £300,000).

Page 3

HACKNEY JOINT ESTATE CHARITY

REPORT OF THE TRUSTEE

Achievements, performance and financial review

During the year gross property revenues increased by 10.8% from £1,575,597 for the year ended 31 March 2023 to £1,745,485 for the year ended 31 March 2024. Expenditure for the year decreased by 3.4% from £1,181,166 for the year ended 31 March 2023 to £1,141,034 for the year ended 31 March 2024. This is primarily due to the decision to suspend charitable distributions for the year as the Directors sought to reserve cash for further maintenance and development work. There was an increase in mortgage costs, rates, and provision for bad debts and rent arrears. Rent arrears have been brought back under control after the year end. In the prior year, the Charity distributed £300,000 to the three parochial charities.

maintain the estate, principally in order that it may provide for the annual distribution to the parochial charities. The Directors of the Trustee have reviewed the performance of the Charity during the year against objectives set and are satisfied that the objectives have been met.

The valuation of investment properties in the accounts at 31 March 2024 has been calculated by the directors by reference to a desktop valuation performed by Strettons Ltd on behalf of the charity at 31 March 2022, and estimates of movements in property valuations since that date. This resulted in an overall loss on revaluation of £402,554 for the year ended 31 March 2024 (2023: loss of £1,040,616).

The Trustee continues to invest into the modernisation of the property portfolio and commissioned an asset management plan to determine the levels of investment required to ensure the portfolio has longevity and attracts full marketing rent to maximise income. The asset management programme will enable the Trustee to ensure sufficient income is ringfenced for the future investment in the portfolio.

A programme of capital works continues to improve the quality of the portfolio and increase the annual passing rent that can be achieved for both residential and commercial properties. Directors have commissioned the final stages of the 204-210 Well Street project, which will provide an additional four residential units. The project is anticipated to be completed early in 2025. The refurbishment of 192a, 194a, 200a and 234a Well Street (all residential units) has been completed and all units have been let to a total value of £94,800 passing rent per annum. No fundraising activities were undertaken during the year.

Reserves policy

The adopted approach to reserves is explained in notes 14 and 15 to these accounts. Commitments and liabilities due within one year total £307,939 at 31 March 2024. The Trustee believes that the anticipated income for the year ending 31 March 2024, together with the cash balance of £834,780 as at 31 March 2024 is sufficient to cover these commitments and liabilities. At 31 March 2024 the Charity had Endowment funds of £21,752,704 (2023 - £21,261,013), and designated funds of £400,000 (2023 - £400,000). This left the Charity with general unrestricted funds of £1,416,207 (2023 - £1,704,931).

The Trustee is of the opinion that the Charity has made a good recovery from the additional challenges of the pandemic in 2023, and that it will continue to have sufficient resources to meet its liabilities as they fall due.

Future plans

In 2021, the Trustee established a Working Party to consider the options for redeveloping a block of properties had reassessed the financial comm review the previous options for the redevelopment of the site. The proposal is to refurbish the existing site, rather than redevelop it. The Working Party will further consider in conjunction with various professional advisors the future possibilities for this site.

Approved by the Trustee and signed on its behalf on:

Director of the Trustee

Page 4

HACKNEY JOINT ESTATE CHARITY

INDEPENDENT AUDITO S REPORT TO THE TRUSTEE OF HACKNEY JOINT ESTATE CHARITY

Opinion

We have audited the financial statements of Hackney Joint Estate Charity for the year ended 31st March 2024 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement 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 (United Kingdom Generally Accepted Accounting Practice).

In our opinion, except for the possible effects of the matter described in the basis for qualified opinion section of our report, the financial statements:

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 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 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.

Limitation of scope regarding Fixed Asset Investments

We were unable to obtain sufficient appropriate audit evidence regarding the valuation and impairment assessment of fixed asset investments. As a result, we are unable to determine whether any adjustments to the carrying value of fixed asset investments are necessary. Accordingly, our audit opinion is qualified due to this limitation of scope.

Limitation of scope regarding Related Parties

We were unable to obtain sufficient appropriate audit evidence to confirm related party transactions in accordance with the Statement of Recommended Practice (SORP). As a result, we are unable to determine whether any adjustments or disclosures related to related party transactions are necessary. Accordingly, our audit opinion is qualified due to this limitation of scope.

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.

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 Report of the Independent Auditors thereon. 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. 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.

Page 5

HACKNEY JOINT ESTATE CHARITY

INDEPENDENT AUDITO S REPORT TO THE TRUSTEE OF HACKNEY JOINT ESTATE CHARITY

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:

the information given in the Report of the Trustees is inconsistent in any material respect with the financial statements; or

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, 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.

Our responsibilities for the audit of the financial statements

We have been appointed as auditors 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 a Report of the Independent Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

Page 6

HACKNEY JOINT ESTATE CHARITY

INDEPENDENT AUDITO S REPORT TO THE TRUSTEE OF HACKNEY JOINT ESTATE CHARITY

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the areas of management override of controls, and revenue recognition.

We also obtained an understanding of the legal and regulatory framework that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements.

Audit response to risks identified

Our procedures to respond to risks identified included the following:

enquiring of management, concerning actual and potential litigation and claims;

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. 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 Report of the Independent Auditors.

Use of our report

with regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent body, for our audit work, for this report, or for the opinions we have formed.

Dunkley's Chartered Accountants Registered Statutory Auditors Eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006 Woodlands Grange, Woodlands Lane Bradley Stoke Bristol BS32 4JY

08/01/2025

Date: .............................................

Page 7

Endowment
Total Funds
Total Funds		 Funds
2024
2023		 £
£
£		 -
1,745,485
1,575,597		 -1,070
824		 -1,070
824		 -1,746,555 1,576,421 - 1,141,034
881,166		 - -
300,000
 - -
300,000
 - 1,141,034
1,181,166		 -605,521395,254 894,245 - - (402,554) (402,554)
(1,040,616)		 (402,554) (402,554)
(1,040,616)		 491,691202,967
(645,361)		 21,261,01323,365,944
24,011,305		 21,752,70423,568,911 23,365,944
Future Estate Repairs
Development		 Reserve
Reserve		 £
£		 -
-		 -
-		 -
-		 201,065
-		 -
-		 201,065
-		 (201,065)
-		 201,065
-		 -
-		 -
-		 100,000
300,000		 100,000 300,000
General Notes
Funds		 £ Income from: Rent receivable 3
1,745,485		 Interest receivable
1,070		 Total income
1,746,555		 Expenditure on: Cost of raising funds
4
939,969		 Charitable activities Distributions
17		 - Total expenditure
939,969		 Net income/(expenditure)
806,586		 Transfer between funds
14/15 (1,095,310)		 Gain/(loss) on investment properties
7
-		 Net movement in funds
(288,724)		 Reconciliation of funds Total funds brought forward
1,704,931		 Total funds carried forward
1,416,207		 The notes on pages 12 to 22 form part of these accounts.
Analysis of income and expenditure in the year
ended 31 March 2023 between general, designated
and endowment funds.		 Future
General
Estate Repairs
Development
Endowment
Total Funds
Notes
Funds
Reserve
Reserve
Funds
2023
£
£
£
£
£
Income from:
Rent receivable 3
1,575,597
-
-
-
1,575,597
Interest receivable
824
-
-
- 824

Total income
1,576,421
-
-
- 1,576,421

Expenditure on:
Cost of raising funds
4
671,487
209,679
-
- 881,166

Charitable activities
Distributions
17
300,000
-

-
- 300,000



Total expenditure
971,487
209,679 -
- 1,181,166

Gain on revaluation of investment
properties


Net income/(expenditure)
604,933
(209,679)
-
- 395,254
Transfer between funds
14/15
(289,614)
209,679
-
79,935 -

Loss on investment properties

(1,040,616) (1,040,616)

Net movement in funds
315,319
-
-
(960,680) (645,361)

HACKNEY JOINT ESTATE CHARITY

LANCE SHEET
MARCH 2024
Notes
£
xed assets
estment property
7
rrent assets
btors
8
342,848
sh at bank and in hand
834,780
1,177,628
rrent liabilities
editors: amounts falling due
within one year
9
(307,939)
t current assets
editors: amounts falling due
fter more than one year
10
t assets
presented by:
dowment funds
14
restricted funds
15
signated funds
15
neral funds
15
proved by the Trustee on
uncillor R Chapman )
I Malik ) Directors
3rd December		 2024
£
26,120,227

869,690
(3,421,006)
23,568,911
21,752,704
400,000
1,416,207
23,568,911
2024 signed on its		 £
217,051
240,214
457,265
(313,791)
behalf by:		 2023
£
26,000,000
143,474
(2,777,530)

23,365,944
21,261,013
400,000
1,704,931
23,365,944

The notes on pages 12 to 22 form part of these accounts.

Page 10

HACKNEY JOINT ESTATE CHARITY

STATEMENT OF CASHFLOWS FOR THE YEAR ENDED 31 MARCH 2024

Note
Cash flows from operating activities:
Net cash provided by operating activities
12
Cash flows from investing activities:
Interest received
Net cash provided by investing activities:
Change in cash and cash equivalents in the year
Cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
The notes on pages 12 to 22 form part of these accounts.		 2024
£
593,496
1,070
1,070
594,566
240,214
834,780		 2023
£
(135,406)
824
824
(134,583)
374,797
240,214

Page 11

HACKNEY JOINT ESTATE CHARITY

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2024

1. Accounting policies

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are laid out below.

1.1. Basis of accounting

The financial statements have been prepared for the year to 31 March 2024.

The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policies below or the notes to these financial statements.

The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 1 January 2019 and Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and Charities Act 2011.

The charity constitutes a public benefit entity as defined by FRS 102.

The financial statements are presented in sterling and are rounded to the nearest pound.

1.2. Critical accounting estimates and areas of judgement

Preparation of the financial statements requires the Trustee and management to make significant judgements and estimates.

The items in the accounts where these judgements and estimates have been made include:

1.3. Assessment of going concern

The Trustee has assessed whether the use of the going concern assumption is appropriate in preparing these financial statements. The Trustee has made this assessment in respect to a period of one year from the date of approval of these financial statements.

The Trustee of the Charity has concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the Charity to continue as a going concern. The Trustee is of the opinion that the Charity has made a good recovery from the additional challenges of the pandemic in 2023, and that it will continue to have sufficient resources to meet its liabilities as they fall due.

Page 12

HACKNEY JOINT ESTATE CHARITY

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2024

1.4. Income recognition

Income is recognised in the period in which the charity has entitlement to the income, the amount of income can be measured reliably and it is probable that the income will be received.

Income is deferred only when the charity has to fulfil conditions before becoming entitled to it or where the donor has specified that the income is to be expended in a future accounting period. Income comprises rental income from investment property and interest receivable. Rental income from investment property is recognised when it becomes contractually due under the relevant lease or tenancy agreement and receipt is considered probable. Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

1.5. Expenditure recognition

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to make a payment 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.

All expenditure is accounted for on an accruals basis and includes attributable VAT which cannot be recovered. Expenditure comprises direct costs and support costs. All expenses, including support costs, are allocated to the applicable expenditure heading.

Expenditure comprises the following:

Grants payable are included in the statement of financial activities when approved and when the intended recipient has either received the funds or been informed of the decision to make the grant and has satisfied all related conditions.

1.6. Allocation of support and governance costs

Support costs represent indirect charitable expenditure. In order to carry out the primary purposes of the charity it is necessary to provide support in the form of financial and governance procedures, provision of office services and equipment and a suitable working environment.

Governance costs comprise the costs involving the public accountability of the charity (including audit costs) and costs in respect to its compliance with regulation and good practice.

Support costs and governance costs are allocated directly to expenditure on raising funds.

~~Page 13~~

HACKNEY JOINT ESTATE CHARITY

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2024

1.7. Investment properties

Investment properties are included in the accounts at market value at the year end. Their valuation at 31 March 2024 has been calculated by the directors by reference to a desktop valuation performed by Strettons Ltd on behalf of the charity at 31 March 2022, and estimates of movements in property valuations since that date. At 31 March 2022 and 31 March 2021, investment properties were included in the accounts based on desktop valuation performed by Strettons Ltd as at the year-end dates. Prior to that the property valuation had been informed by a desktop valuation performed by Strettons Ltd, on behalf of the charity in 2019 and historic valuations undertaken in 2009 and 2010 and internal valuations as at 31[st] March 2015.

Development costs are written off as expenditure in the year in which they are incurred. Trustees also consider the impact of capital works performed within the properties since the last full revaluation when determining the year end valuation. Gains and losses on the revaluation of investment properties are included in the statement of financial activities.

1.8. Debtors

Debtors are recognised at the settlement amount, less any provision for non-recoverability. They have been discounted to the present value of the future cash receipt where such discounting is material.

1.9. Cash at bank and in hand

Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition.

1.10. Creditors and provisions

Creditors and provisions 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. Creditors and provisions are recognised at the amount the charity anticipates it will pay to settle the debt. They have been discounted to the present value of the future cash payment where such discounting is material.

1.11. Fund accounting

Endowment funds comprise the value of the freehold property settled on the Charity at market valuation. The Charity does not apply the total return basis in relation to its Endowment funds.

Designated funds are monies set aside of unrestricted general funds and designated for specific purposes by the trustee.

General funds represent those monies that are freely available for application towards achieving any charitable purpose that fall within the charity's charitable objects.

Further details on the nature and purpose of each fund is set out in notes 14 and 15 to the financial statements.

2 Taxation

The Charity is exempt from taxation on its income and gains where they are applied for charitable purposes.

~~Page 14~~

HACKNEY JOINT ESTATE CHARITY

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2024

3 Rental income

Source of rental income:
Residential
Commercial		 General funds
2024
2023
£
£
1,000,306
903,980
745,179
671,617
1,745,485
1,575,597

Page 15

Property expenses
General
Funds
Estate Repairs
Reserves
Future
Development
Reserve
Endowment
Funds
Total Funds
2024
Total Funds
2023		 £
£
£
£
£
£		 Rates and water rates
103,686
-
-
-
103,686
60,668		 Lighting and caretaking
153,413
-
-
-
153,413 91,998		 Repairs
-
201,065
-
-
201,065 209,679		 Miscellaneous
4,921
-
-
-
4,921 4,698		 Commission on collection of rents
120,649
-
-
-
120,649
98,261		 Property insurance
50,270
-
-
-
50,270
48,098		 Legal and professional - enforcement and collection
17,759
- - - 17,759
10,137		 - rent review and new leases
81,565
- - - 81,565
80,719		 - other
13,190
- - - 13,190
34,452		 Estate agen
s fees
5,270
- - - 5,270
885		 Bad debts and rent arrears provision
75,159
- - - 75,159
23,319		 Mortgage legal & arrangement fee
7,227
- - - 7,227
14,000		 Mortgage interest
250,303
- - - 250,303
150,049		 Governance costs (see note 5)
56,557
- - -56,557
54,203		 939,969
201,065 - - 1,141,034
881,166		 All expenditure in the year ended 31 March 2024 was made from General Funds except for repairs and maintenance where £201,065 was expended from the Estate Repairs Reserves and £nil from the Future Development Reserve. Development expenditure totalling £522,781 was capitalised as at 31 March 2024 (2023 £510,616) (see note 7). General Funds Total Funds Governance costs
Funds 2024 2023		 £ £ £ Administration fees
32,379 35,121		 Accountancy fees
17,578 12,014		 6,600 7,068 audit 56,557 54,203

HACKNEY JOINT ESTATE CHARITY

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2024 (continued)

6 Net income for the year

This is stated after charging:

(prior year)

(current year)
7 Investment property
Balance Property
1 April 2023 Additions
£ £
26,000,000 522,781		 2024
£
-
6,600
Revaluation

£
(402,554)		 2023
£
468
6,600
Balance
31 March 2024
£
26,120,227

All freehold investment properties are vested in Hackney Endowed Trustee Limited, the trust corporation that is now the Trustee. The valuation of investment properties in the accounts at 31 March 2024 has been calculated by the directors by reference to a desktop valuation performed by Strettons Ltd on behalf of the charity at 31 March 2022, and estimates of movements in property valuations since that date. Certain properties have been used as security for bank loans and further details are provided in note 10 to these accounts.

8 Debtors and prepayments
Due from agent
Rent receivable, less specific provision
Prepayments
Other debtors
9 Creditors: amounts falling due within one year
Bank loan (note 10)
Deferred income
Other creditors
Deferred income comprises rents, service charges and
insurance refunds received in advance.
Balance as at 1 April
Amounted released to income
Amount deferred in year
Balance as at 31 March


2024
£
255,304
57,222
30,322
-











342,848
2024
£
82,029
142,476
83,433
307,939
2024
£
127,835
(127,835)
142,476
142,476

~~Page 17~~

HACKNEY JOINT ESTATE CHARITY

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2024 (continued)

10 Creditors: amounts falling due after more than one

year

Bank loans
The above liability is payable as follows:
Within one year (note 9)
Between one and two years
Between two and five years
After more than five years		 2024
£
3,421,006
82,029
89,112
307,690
3,024,204
3,503,035		 2023
£
2,777,530
93,891
97,672
316,478
2,363,380
2,871,421

A loan with CAF Bank was entered into by the end of March 2014 and the first draw down of funds was made in August 2014. The CAF Bank loan totalling £700,000 will be repaid over the next 15 years, with interest being payable monthly at a rate of 4.5% over the Bank of England Base Rate. The loan is secured on properties at 184-186 Well Street and Celia Fiennes House.

During 2019/20 the two loans from Charity Bank £700,000 and £338,005 which were in place as at 31 March 2019 were consolidated into a new loan with a facility totalling £3,165,467, which provides an additional £2,200,000 funding for projects in Well Street. During the year ended 31[st] March 2024, additional draw downs were made totalling £700,000. The loan, of which £2,995,680 was utilised, as at 31 March 2024 will be repaid over the next 21 years, with interest being payable monthly at a rate of 2.65% over the Bank of England Base Rate. The loan is secured on properties at 184-186 Well Street, Celia Fiennes House and 204, 206, 208, 210 and 226 Well Street.

11 Capital Commitments

As at 31 March 2024, the Trustee had entered into capital commitments totalling £618,554 subject to planning permission, in respect of the redevelopment of the freehold investment properties at 204-210 Well Street Hackney. The funding for this project was secured via bank a loan from Charity Bank. As at 31 March 2024, the total available: £2,200,000 had been drawn down.

Page 18

HACKNEY JOINT ESTATE CHARITY

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2024 (continued)

12
Reconciliation of net movement in funds to net cash
Net movement in funds as
per the statement of financial activities
Adjustments for:
Additions to property portfolio
Revaluation of property portfolio
Interest receivable
(Increase)/Decrease in debtors
Increase/(Decrease) in creditors
Net cash used in operating activities		 flow from operating activities
2024
2023
£
£
202,967
(645,361)
(522,781)
(510,616)
402,554
1,040,616
(1,070)
(824)
(125,797)
44,751
637,623
(63,973)
593,496
(135,406)

13 Key management personnel

The Charity considers its key management personnel comprise the Directors of the Trustee. The total employment benefits, including employer pension costs of key management personnel were £nil (2023 - £nil). There were no employees in this charity in 2024 (2023 - nil).

Page 19

HACKNEY JOINT ESTATE CHARITY

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2024 (continued)

14 Endowment funds

The endowment funds comprise the freehold property settled on the Charity at market valuation. Net movement in funds reflects any change in the market value of the properties and the value of the loans secured against them in the year. General expenditure related to the properties is treated as an expense of the general unrestricted fund which has the benefit of the related rental income.

Balance Net movement Balance 31 March 2023 Revaluation in fund 31 March 2024 £ £ £ £ 21,261,013 894,245 (402,554) 21,752,704 Balance Net movement Balance 31 March 2022 Revaluation in fund 31 March 2023 £ £ £ £ 22,221,693 79,935 (1,040,616) 21,261,013

The transfer to endowment funds is to bring the value of the fund in line with the market value of the endowed property, less the loans secured against them.

15 Unrestricted funds current year 2023/24

The General Fund has accumulated over a number of years, due to the Parochial Charities waiving their right to a full distribution. This ensures that the Charity can meet its financial commitments into the future.

for the

purpose of maintaining the freehold properties and distribution to its constituent charities. As such, these are included in the accounts as designated funds as follows:

Balance
1 April
2023
£
General fund
1,704,931
Estate Repairs Reserve
100,000
Future Developments Fund
300,000
2,104,931
restricted funds
prior year 2022/23
Balance
1 April
2022
£
General fund
1,389,612
Estate Repairs Reserve
100,000
Future Developments Fund
300,000
1,789,612		 Net income/
(expenditure)
£
806,586
(201,065)
-
605,521		 Net income/
(expenditure)
£
806,586
(201,065)
-
605,521
Revaluation
£
(1,095,310)
201,065
-
(894,245)
Revaluation
£
(1,095,310)
201,065
-
(894,245)		 Balance
31 March
2024
£
1,416,207
100,000
300,000
1,816,207
(894,245)
Net income/
(expenditure)
£
604,933
(209,394)
-
395,254
Revaluation
£
(289,614)
209,394
-
(79,935)		 Balance
31 March
2023
£
1,704,931
100,000
300,000
2,104,931
395,254 (79,935)

Unrestricted funds prior year 2022/23

Page 20

HACKNEY JOINT ESTATE CHARITY

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2024 (continued)

Designated funds

The Estate Repairs Reserve is dedicated for repairs of the properties. £100,000 is maintained in reserve to meet the immediate requirements of the Estate during the new financial year.

The Future Developments Fund is dedicated to meet extraordinary and planned future repairs on properties. The balance of net current assets (after transfer to the Estate Repairs Reserve of £100,000) is held in reserve at the year end. The Trustees maintained this reserve at £300,000 at the year-end to allow for planned repairs in 2024/25.

The Directors of the Trustee agreed to consider these funds and take stock of their requirements in future years.

16 Analysis of net assets between funds current year 2023/24

Page 21

HACKNEY JOINT ESTATE CHARITY NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2024 (continued)

17 Connected charities

During the year ended 31 March 2024 Hackney Joint Estates Charity made distributions to the connected charities of £nil (2023: £300,000). Addresses, purposes and charitable data of the connected parochial charities are as follows:

The Hackney Parochial Charities £nil (Grants Awarded by the Charity - £347,495) Charity No.: 219876 Address: 6 Trull Farm Buildings Tetbury Gloucestershire GL8 8SQ Area of benefit: Former ecclesiastical parish of St John Hackney Purpose: Relief of poverty Distribution received: one half South Hackney Parochial Charity £nil (Grants Awarded by the Charity - £159,121) Charity No.: 212336 Address: 6 Trull Farm Buildings Tetbury Gloucestershire GL8 8SQ Area of benefit: Ecclesiastical parish of South Hackney Purposes: Almshouses, education, relief of need Distribution received: one quarter West Hackney Parochial Charities £nil (Grants Awarded by the Charity - £197,291) Charity No.: 208941 Address: 6 Trull Farm Buildings Tetbury Gloucestershire GL8 8SQ Area of benefit: Ecclesiastical parish of West Hackney Purposes: Education and youth advancement, relief of need, local benefit Distribution received: one quarter

Page 22

HACKNEY JOINT ESTATE CHARITY

The following pages are for MANAGEMENT PURPOSES ONLY; the information does not form part of the Financial Statements on which the Independent Auditor has reported.

HACKNEY JOINT ESTATE CHARITY

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2024 (continued)

Net income from properties
Rent and service charges receivable
Deduct direct expenditure
General rates
Repairs
Vyner Court
lighting and caretaking
Kenton Road
lighting and caretaking
Terrace Road
lighting and caretaking
Valentine Road
lighting and caretaking
Well Street
lighting and
Caretaking
Commission on collection of rents
Insurance premiums
Estate agen
s fees
Bad debts and provision for rent
in arrears
Miscellaneous revenue
Other income
Deposit and bank interest
Gross surplus
Indirect expenditure
Remuneration of the Clerk
The Trust
Partnership
Trust administration
The Trust
Partnership

Legal and professional charges

Bookkeeping and accountancy

Audit and accountancy

Miscellaneous

Mortgage interest

Mortgage legal and arrangement fee
Net income for the year
Distributions
The Hackney Parochial Charities
South Hackney Parochial Charities
West Hackney Parochial Charities
Net surplus for the year








103,668
201,065
6,369
1,281
10,105
2,667
132,991
120,649
50,270
5,270
75,159
16,659
15,720
108,763
21,328
6,600
4,921
250,303
7,227
-
-
-
 31 March 2024
£
1,745,485








709,513		 31 March 2024
£
1,745,485








709,513







60,668
209,679
6,271
1,088
16
843
83,781
98,261
48,098
885
23,319
23,072
12,049
125,308
12,014
7,068
4,698
150,049
14,000
150,000
75,000
75,000		 31 March 2023
£
1,575,597
532,908
1,042,689
-
824
1,043,513
348,259
695,254
300,000
395,254		 31 March 2023
£
1,575,597
532,908
1,042,689
-
824
1,043,513
348,259
695,254
300,000
395,254




























1,035,972
-
1,070
1,037,042

431,521
605,521



-
605,521










Page 23