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2025-03-31-accounts

HACKNEY JOINT ESTATE CHARITY

Charity Registration No. 219875

HACKNEY JOINT ESTATE CHARITY

REPORT AND FINANCIAL STATEMENTS

31 MARCH 2025

HACKNEY JOINT ESTATE CHARITY

Page
Legal and administrative information 1
Report of the Trustee 2
Independent auditor’s report 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 (Retired 19/05/2025) South Hackney Parochial Charity Mr D Paul-Worika Mrs J Andrews (Retired 04/02/2025) Cllr. J Ogunndemuren (Retired 04/02/2025) Ms K Hanson (from 05/05/2025) Ms Beverly Piper Harris (from 15/10/25) West Hackney Parochial Charities Mr I Malik (Chair) Ms K Johnson Reverend Justin Gau (Retired 05/08/2025) Mr L Logan (from 05/06/2025) Father Brandon Fletcher-James (from 15/10/25) Charity registered number 219875 Clerk to the Trustee Benjamin Janes The Trust Partnership 6 Trull Farm Buildings Tetbury Gloucestershire GL8 8SQ Auditor Dunkley’s 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 of the attached accounts and comply with the charity’s trust deed, the Charities Act 2011, regulations 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 419th 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 Trustee’s 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. 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. An increase in the Contract Sum for the works to 204-210 Well Street as a result of essential unforeseen works.

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 refurbishment.

Page 2

HACKNEY JOINT ESTATE CHARITY

REPORT OF THE TRUSTEE

Statement of Trustee’s responsibilities

The Trustee is responsible for preparing the Trustees’ report and accounts in 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 Reports) Regulations and the provisions of the charity’s 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 its mission statement to achieve the Charity’s objective whilst to contributing to the local community in 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

In carrying out the Charity’s objectives, the Trustee has had regard to the Charity Commission’s guidance on 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. (2024 - £nil).

Achievements, performance and financial review

During the year gross property revenues increased by 5.35% from £1,745,485 for the year ended 31 March 2024 to £1,838,877 for the year ended 31 March 2025. Expenditure for the year increased by 2.58% from £1,141,034 for the year ended 31 March 2024 to £1,170,526 for the year ended 31 March 2025. There was an increase in mortgage costs, rates, and governance costs. In the prior year, the Charity distributed £nil to the three parochial charities.

The Charity’s objective is to continue to provide residential and commercial lettings to generate income to 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.

Page 3

HACKNEY JOINT ESTATE CHARITY

REPORT OF THE TRUSTEE

The valuation of investment properties in the accounts at 31 March 2025 has been determined by the directors using a return on investment (ROI) basis to identify the most appropriate fair value at the year end. In previous years, the valuation was calculated by reference to a desktop valuation performed by Strettons Ltd on behalf of the charity and estimates of movements in property values since that date. The valuation at 31 March 2025 resulted in an overall gain on revaluation of £7,575,192 for the year ended 31 March 2025 (2024: loss of £402,554).

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 in late 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 £347,937 at 31 March 2025. The Trustee believes that the anticipated income for the year ending 31 March 2025, together with the cash balance of £396,237 as at 31 March 2025 is sufficient to cover these commitments and liabilities. At 31 March 2025 the Charity had Endowment funds of £30,930,027 (2024 - £21,752,704), and designated funds of £400,000 (2024 - £400,000). This left the Charity with general unrestricted funds of £493,476 (2024 - £1,416,207).

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 known as “The Triangle” adjacent to Well Street market. In the previous financial reporting period, Directors had reassessed the financial commitment required and had decided not to proceed. In the current year, ‘The Triangle Working Party’ has reconvened and following a tender process commissioned a local Architect firm, to 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 AUDITOR’S REPORT

Opinion

We have audited the financial statements of Hackney Joint Estate Charity for the year ended 31st March 2025 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:

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.

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.

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.

HACKNEY JOINT ESTATE CHARITY

INDEPENDENT AUDITOR’S REPORT

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 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:

HACKNEY JOINT ESTATE CHARITY

INDEPENDENT AUDITOR’S REPORT

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:

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

This report is made solely to the charity’s trustees, as a body, in accordance with section 144 of the Charities Act 2011 and with regulations made under section 154 of that Act. 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’s trustees as a 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

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

HACKNEY JOINT ESTATE CHARITY

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2025

----- Start of picture text -----
Future
Estate Total Total
General Developm Endowme
Notes Repairs Funds Funds
Funds ent nt Funds
Reserve 2025 2024
Reserve
Income from:
Rent receivable 3 1,838,877 - - - 1,838,877 1,745,485
Interest receivable 11,049 - - - 11,049 1,070
Total income 1,849,926 - - - 1,849,926 1,746,555
Expenditure on:
Cost of raising funds 4 961,749 208,777 - - 1,170,526 1,141,034
Charitable Activities
Distributions 17 - - - - - -
Total expenditure 961,749 208,777 - - 1,170,526 1,141,034
Net income/(expenditure) 888,177 (208,777) - - 679,400 605,521
Transfer between funds 14/15 (1,810,908) 208,777 - 1,602,131 - -
Gain/(loss) on investment
properties 7 - - - 7,575,192 7,575,192 (402,554)
Net movement in funds (922,731) - - 9,177,323 8,254,592 202,967
Funds brought forward 1,416,207 100,000 300,000 21,752,703 23,568,911 23,365,944
Funds carried forward 493,476 100,000 300,000 30,930,027 31,823,503 23,568,911
----- End of picture text -----

The notes on pages 12 to 23 form part of these accounts. All of the charity’s activities derived from continuing operations during the above two financial periods.

Page 8

HACKNEY JOINT ESTATE CHARITY COMPARATIVE INFORMATION

Analysis of income and expenditure in the year ended 31 March 2024 between general, designated and endowment funds.

General
Funds		 Estate Repairs
Reserve		 Future Development
Reserve		 Endowment
Funds		 Total
Funds
2024
Income from:
Rent receivable 1,745,485 - - - 1,745,485
Interest receivable 1,070 - - - 1,070
Total income 1,746,555 - - - 1,746,555
Expenditure on:
Cost of raising funds 939,969 201,065 - - 1,141,034
Distributions - - - - -
Total expenditure 939,969 201,065 - - 1,141,034
Net income/(expenditure) 806,586 (201,065) - - 605,521
Transfer between funds (1,095,310) 201,065 - 894,245 -
(loss) on investment properties - - - (402,554) (402,554)
Net movement in funds (288,723) - - 491,690 202,967
Funds brought forward 1,704,931 100,000 300,000 21,261,013 23,365,944
Funds carried forward 1,416,208 100,000 300,000 21,752,703 23,568,911
_______Page 9____________

HACKNEY JOINT ESTATE CHARITY

BALANCE SHEET AS ON 31[ST] MARCH 2025

Notes
FIXED ASSETS
Investment property
7
CURRENT ASSETS
Debtors
8
Cash at bank and in hand
CURRENT LIABILITIES
Creditors: due within 1 year
9
NET CURRENT ASSETS
Creditors: due greater than 1 year
10
NET ASSETS
REPRESENTED BY:
Endowment funds
14
Unrestricted funds
15
Designated funds
General funds
Approved by the Trustee on
Councillor R Chapman )
Mr I Malik ) Directors		 2025
2024
£
£
£
£
34,860,924
26,120,227
292,087
342,848
396,237
834,780
688,324
1,177,628
(347,937)
(307,939)
340,387
869,690
(3,377,808)
(3,421,006)
31,823,503
23,568,911
30,930,027
21,752,704
400,000
400,000
493,476
1,416,207
31,823,503
23,568,911
2025 signed on its behalf by:		 2024 2024
£
342,848
834,780		 £
26,120,227
869,690
(3,421,006)
1,177,628
(307,939)
23,568,911
21,752,704
400,000
1,416,207
23,568,911

The notes on pages 12 to 23 form part of these accounts.

Page 10

HACKNEY JOINT ESTATE CHARITY

~~STATEMENT OF CASHFLOWS FOR THE YEAR~~ ENDED 31 MARCH 2025

----- Start of picture text -----
2025 2024
Note £ £
Cash flows from operating activities:
Net cash provided by operating activities 12 (449,591) 593,496
Cash flows from investing activities:
Interest received 11,049 1,070
Net cash provided by investing activities: 11,049 1,070
Change in cash and cash equivalents in the year (438,542) 594,566
Cash equivalents at the beginning of the year 834,780 240,214
Cash and cash equivalents at the end of the year 396,237 834,780
The notes on pages 12 to 23 form part of these accounts.
----- End of picture text -----

Page 11

HACKNEY JOINT ESTATE CHARITY

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 2025.

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 2024, and that it will continue to have sufficient resources to meet its liabilities as they fall due.

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 operating leases is recognised on a straight-line basis over the period of the lease, unless another systematic basis is more representative of the pattern in which the benefits derived from the leased assets are consumed.

~~Page 12~~

HACKNEY JOINT ESTATE CHARITY

Where the lease agreement includes lease incentives, including rent-free periods or stepped rental increases, these are recognised as an adjustment to rental income and are allocated over the term of the lease on a straight-line basis. 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.

1.7. Investment properties

Investment properties are included in the accounts at market value at the year end. The valuation of investment properties in the accounts at 31 March 2025 has been determined by the directors using a return on investment (ROI) basis to identify the most appropriate fair value at the year end.. 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.

Trustees 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.

~~Page 13~~

HACKNEY JOINT ESTATE CHARITY

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. Impairment

At each reporting date, the Charity assesses whether there is objective evidence of impairment of a financial asset measured at amortised cost. Impairment losses are recognised in the statement of financial activities.

1.10. 1.10 Derecognition

A financial asset is derecognised only when the contractual rights to the cash flows expire or are transferred, and substantially all the risks and rewards of ownership have passed to another party.

1.11. 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.

1.12. 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.

1.13 Derecognition

A financial liability is derecognized when it is extinguished—i.e., when the obligation is discharged, cancelled or expires.

1.14 Loans Payable

Loans receivable and payable are recognized at amortized cost using the effective interest method. Where loans are provided or received at below-market interest rates, they are initially measured at the present value of future cash flows, discounted at a market rate of interest.

1.13. Interest Recognition

Interest income and interest expense are recognised using the effective interest method, reflecting the unwinding of the discount over the life of the loan.

1.14. 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.

Page 14

HACKNEY JOINT ESTATE CHARITY

2 Taxation

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

3 Source of rental income

Residential
Commercial
Total		 2025
2024
1,121,207
1,000,306
717,669
745,179
1,838,877
1,745,485

4 Property expenses

Rates and water rates
Lighting and caretaking
Repairs
Miscellaneous
Commission on collection of rents
Property insurance
Legal and professional
- enforcement and collection
- rent review and new leases
- other
Estate agent’s fees
Bad debts and rent arrears provision
Mortgage legal & arrangement fee
Mortgage interest
Governance costs (see note 5)		 General
Estate repairs Total 2025
2024
124,386
-
124,386
103,686
156,243
-
156,243
153,413
-
208,777
208,777
201,065
5,084
-
5,084
4,921
146,647
-
146,647
120,649
53,844
-
53,844
50,270
18,338
-
18,338
17,759
60,672
-
60,672
81,565
58,928
-
58,928
13,190
2,286
-
2,286
5,270
(19,774)
-
(19,774)
75,159
-
-
-
7,227
275,137
-
275,137
250,303
79,959
-
79,959
56,557
961,749
208,777
1,170,526 1,141,034

All expenditure in the year ended 31 March 2025 was made from General Funds except for repairs and maintenance where £208,777 was expended from the Estate Repairs Reserves and £nil from the Future Development Reserve. Development expenditure totalling £1,165,504 was capitalised as at 31 March 2025 (2024 £522,781) (see note 7).

~~Page 15~~

HACKNEY JOINT ESTATE CHARITY

5 Governance costs

Administration fees
Accountancy fees
Auditor's remuneration
Total
6
Net income for the year
This is state after charging:
Auditor's remuneration (prior year)
Auditor's remuneration (current year)
7 Investment Property
01 April 2024
Additions
Investment Property
26,120,227
1,165,504		 2025
2024
46,703
32,379
27,256
17,578
6,000
6,600
79,959
56,557
2025
2024
(600)
-
6,600
6,600
6,000
6,600
Revaluation
31 March 2025
7,575,192
34,860,924

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 2025 has been determined by the directors using a return on investment (ROI) basis to identify the most appropriate fair value at the year end. Certain properties have been used as security for bank loans and further details are provided in note 10 to these accounts.

~~Page 16~~

HACKNEY JOINT ESTATE CHARITY

8 - Debtors and Prepayments

2025
Due from agent
201,592
Rent receivable, less specific provision
41,645
Prepayments
48,851
292,087
9 - Creditors due within 1 year
2025
Bank loan
48,953
Deferred income
150,679
Other creditors
148,305
347,937
10 Creditors: amounts falling due after more than one year
2025
£
Bank loans 3,377,808
Between one and two years 52,163
Between two and five years
179,244
After more than five years 3,146,401
3,377,808
Deferred income comprises rents, service charges and
insurance refunds received in advance.
2025
£
Balance as at 1 April
142,476
Amounted released to income
(142,476)
Amount deferred in year
150,679
Balance as at 31 March
150,679		 2025
201,592
41,645
48,851		 2025
201,592
41,645
48,851		 2025
201,592
41,645
48,851		 2024
255,304
57,222
30,322
292,087 342,848
2025
48,953
150,679
148,305		 2024
82,029
142,476
83,433
347,937 307,939



2025
£
3,377,808
52,163
179,244
3,146,401
3,377,808
2025
£
142,476
(142,476)
150,679
150,679

2024
£
3,421,006
89,112
307,690
3,024,204
3,421,006
2024
£
127,835
(127,835)
142,476
142,476


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.

~~Page 17~~

HACKNEY JOINT ESTATE CHARITY

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. The loan, of which £2,995,680 was utilised, as at 31 March 2025 will be repaid over the next 20 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 2025, the Trustee had entered into capital commitments totalling £598,666 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 2025, the total available: £2,200,000 had been drawn down.

12 Reconciliation of net movement in funds to net cash flow from operating activities

Net movement in funds as
per the statement of financial activities
Adjustments for:
Additions to property portfolio
Revaluation of property portfolio
Interest receivable
Increase in debtors
(Decrease)/Increase in creditors
Net cash used in operating activities		 2025
£
8,254,592
(1,165,504)
(7,575,192)
(11,049)
50,761
(3,198)
(449,591)		 2024
£
202,967
(522,781)
402,554
(1,070)
(125,797)
637,623
593,496

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 (2024 - £nil). There were no employees in this charity in 2025 (2024 - nil)

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.

Total funds
Total
Balance as on
01st April 2024
Net income /
(expenditure)
Transfer
Balance as on
31st March 2025
21,752,704
7,575,192
1,602,131
30,930,027
21,752,704
7,575,192
1,602,131
30,930,027

Page 18

HACKNEY JOINT ESTATE CHARITY

Total funds
Total		 Balance as on
01st April 2023
Net income /
(expenditure)
Transfer
Balance as on
31st March 2024
21,261,013
(402,554)
894,245
21,752,704
21,261,013
(402,554)
894,245
21,752,704

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 2024/25

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.

The Trustee acknowledges that it is prudent to set aside part of the Charity’s unrestricted funds 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:

General fund
Estate Repairs Reserve
Future Developments Fund
Total		 Balance as on
01st April 2024
Net income /
(expenditure)
Transfer
Balance as on
31st March
2025
1,416,207
888,177
(1,810,908)
493,476
100,000
(208,777)
208,777
100,000
300,000
-
-
300,000
1,816,207
679,400
(1,602,131)
893,476

Unrestricted funds – prior year 2023/24

General fund
Estate Repairs Reserve
Future Developments Fund
Total		 Balance as on
01st April 2023
Net income /
(expenditure)
Transfer
Balance as on
31st March
2024
1,704,931
806,586
(1,095,310)
1,416,207
100,000
(201,065)
201,065
100,000
300,000
-
-
300,000
2,104,931
605,521
(894,245)
1,816,207

Page 19

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2025 (continued)

HACKNEY JOINT ESTATE CHARITY

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 2024/25

Investments
Current assets
Current liabilities
Long term liabilities
Total
Analysis of net assets between funds – prior
year 2023/24
Investments
Current assets
Current liabilities
Long term liabilities
Total		 Endowment
Funds
£
34,356,787		 General
Funds
£		 Designated
Funds
£		 Total
Funds
£
504,136 - 34,860,924
- 288,325 400,000 688,325
(48,953) (298,985) - (347,937)
(3,377,808) - - (3,377,808)
493,476 400,000
30,930,027 31,823,503
(463,362)
Endowment
Funds
£
25,255,738
-
(82,029)
(3,421,006)
21,752,704		 463,362
General
Funds
£
864,489
777,628
(225,910)
-
1,416,207		 -
Designated
Funds
£
-
400,000
-
-
400,000		 470,674
Total
Funds
£
26,120,227
1,177,628
(307,939)
(3,421,006)
23,568,911

Page 20

HACKNEY JOINT ESTATE CHARITY

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2025 (continued)

17 Connected charities

During the year ended 31 March 2025 Hackney Joint Estates Charity made distributions to the connected charities of £nil (2024: £nil). Addresses, purposes and charitable data of the connected parochial charities are as follows:

The Hackney Parochial Charities £nil (Grants Awarded by the Charity - £291,737) 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 - £136,119) 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 - £171,170) 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 21~~