**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. 

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**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: 

- select suitable accounting policies and then apply them consistently; 

- observe the methods and principles in 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); 

- make judgements and estimates that are reasonable and prudent; 

- state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the accounts; and 

- prepare the accounts on the going concern basis unless it is inappropriate to presume that the charity will continue in operation. 

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. 

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**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: 

- give a true and fair view of the state of the charity’s affairs as at 31 March 2025 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 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: 

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

- sufficient accounting records have not been kept; or 

- the accounts are not in agreement with the accounting records and returns; or 

- we have not received all the information and explanations we require for our audit. 

## **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: 

- the nature of the industry and sector, control environment and business performance including the design of the company's remuneration policies, bonus levels and performance targets; 

- any matters we identified, having obtained and reviewed the company's documentation of their policies and procedures relating to: 

   - identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance; 

   - detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; 

   - the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; 

- the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. 



## **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: 

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

- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; 

- in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. 

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


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**<br>**Funds**|**Estate Repairs**<br>**Reserve**|**Future Development**<br>**Reserve**|**Endowment**<br>**Funds**|**Total**<br>**Funds**<br>**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**<br>**FIXED ASSETS**<br>Investment property<br>7<br>**CURRENT ASSETS**<br>Debtors<br>8<br>Cash at bank and in hand<br>**CURRENT LIABILITIES**<br>Creditors: due within 1 year<br>9<br>**NET CURRENT ASSETS**<br>Creditors: due greater than 1 year<br>10<br>**NET ASSETS**<br>**REPRESENTED BY:**<br>Endowment funds<br>14<br>**Unrestricted funds**<br>15<br>Designated funds<br>General funds<br>Approved by the Trustee on<br>Councillor R Chapman         )<br>Mr I Malik                            )  Directors|**2025**<br>**2024**<br>**£**<br>**£**<br>**£**<br>**£**<br>34,860,924<br>26,120,227<br>292,087<br>342,848<br>396,237<br>834,780<br>688,324<br>1,177,628<br>(347,937)<br>(307,939)<br>340,387<br>869,690<br>(3,377,808)<br>(3,421,006)<br>**31,823,503**<br>**23,568,911**<br>30,930,027<br>21,752,704<br>400,000<br>400,000<br>493,476<br>1,416,207<br>**31,823,503**<br>**23,568,911**<br>2025 signed on its behalf by:|**2024**|**2024**|
|---|---|---|---|
|||**£**<br>342,848<br>834,780|**£**<br>26,120,227<br>869,690<br>(3,421,006)|
|||1,177,628<br>(307,939)||
|||||
||||**23,568,911**|
||||21,752,704<br>400,000<br>1,416,207<br>**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 -----**<br>
2025  2024<br>Note  £  £<br>Cash flows from operating activities:<br>Net cash provided by operating activities  12  (449,591) 593,496<br>Cash flows from investing activities:<br>Interest received  11,049 1,070<br>Net cash provided by investing activities:  11,049 1,070<br>Change in cash and cash equivalents in the year  (438,542) 594,566<br>Cash equivalents at the beginning of the year  834,780 240,214<br>Cash and cash equivalents at the end of the year  396,237 834,780<br>The notes on pages 12 to 23 form part of these accounts.<br>**----- End of picture text -----**<br>


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: 

- assessing the appropriateness of the assumptions and methodology used in determining the fair value of investment properties; and 

- estimating future income and expenditure flows for the purpose of assessing going concern. 

## **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: 

- Expenditure on raising funds comprises expenditure incurred on investment properties. 

- Expenditure on charitable activities comprises grants payable in the form of distributions to connected charities. 

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<br>Commercial<br>Total|**2025**<br>**2024**<br>1,121,207<br>1,000,306<br>717,669<br>745,179|
|---|---|
||**1,838,877**<br>**1,745,485**|



## **4 Property expenses** 

|Rates and water rates<br>Lighting and caretaking<br>Repairs<br>Miscellaneous<br>Commission on collection of rents<br>Property insurance<br>Legal and professional<br>- enforcement and collection<br>- rent review and new leases<br>- other<br>Estate agent’s fees<br>Bad debts and rent arrears provision<br>Mortgage legal & arrangement fee<br>Mortgage interest<br>Governance costs (see note 5)|**General**<br>**Estate repairs Total 2025**<br>**2024**<br>124,386<br>-<br>124,386<br>103,686<br>156,243<br>-<br>156,243<br>153,413<br> -<br>208,777<br>208,777<br>201,065<br>5,084<br>-<br>5,084<br>4,921<br>146,647<br>-<br>146,647<br>120,649<br>53,844<br>-<br>53,844<br>50,270<br>18,338<br>-<br>18,338<br>17,759<br>60,672<br>-<br>60,672<br>81,565<br>58,928<br>-<br>58,928<br>13,190<br>2,286<br>-<br>2,286<br>5,270<br>(19,774)<br>-<br>(19,774)<br>75,159<br>-<br>-<br>-<br>7,227<br>275,137<br>-<br>275,137<br>250,303<br>79,959<br>-<br>79,959<br>56,557|
|---|---|
||**961,749**<br>**208,777**<br>**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<br>Accountancy fees<br>Auditor's remuneration<br>Total<br>**6**<br>**Net income for the year**<br>This is state after charging:<br>Auditor's remuneration (prior year)<br>Auditor's remuneration (current year)<br>**7   Investment Property**<br>**01 April 2024**<br>**Additions**<br>Investment Property<br>26,120,227<br>1,165,504|**2025**<br>**2024**<br>46,703<br>32,379<br>27,256<br>17,578<br>6,000<br>6,600<br>**79,959**<br>**56,557**<br>**2025**<br>**2024**<br>(600)<br>-<br>6,600<br>6,600<br>**6,000**<br>**6,600**<br>**Revaluation**<br>**31 March 2025**<br>7,575,192<br>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**<br>Due from agent<br>201,592<br>Rent receivable, less specific provision<br>41,645<br>Prepayments<br>48,851<br>292,087<br>**9 - Creditors due within 1 year**<br>**2025**<br>Bank loan<br>48,953<br>Deferred income<br>150,679<br>Other creditors<br>148,305<br>347,937<br>**10           Creditors: amounts falling due after more than one year**<br>**2025**<br>**£**<br>Bank loans                                                                                                    3,377,808<br>Between one and two years                                                                               52,163<br>Between two and five years<br>179,244<br>After more than five years                                                                             3,146,401<br>3,377,808  <br>Deferred income comprises rents, service charges and<br>insurance refunds received in advance.<br>**2025**<br>£<br>Balance as at 1 April<br>142,476<br>Amounted released to income<br>(142,476)<br>Amount deferred in year<br>150,679<br>Balance as at 31 March<br>150,679|**2025**<br>201,592<br>41,645<br>48,851|**2025**<br>201,592<br>41,645<br>48,851|**2025**<br>201,592<br>41,645<br>48,851||**2024**<br>255,304<br>57,222<br>30,322|
|---|---|---|---|---|---|
||292,087||||342,848|
||**2025**<br>48,953<br>150,679<br>148,305||||**2024**<br>82,029<br>142,476<br>83,433|
||347,937||||307,939|
|||<br> <br> <br>|**2025**<br>**£**<br>3,377,808<br>52,163<br>179,244<br>3,146,401<br>3,377,808  <br>**2025**<br>£<br>142,476<br>(142,476)<br>150,679<br>150,679|<br> <br>|**2024**<br>**£**<br>3,421,006<br>89,112<br>307,690<br>3,024,204<br>3,421,006<br>**2024**<br>£<br>127,835<br>(127,835)<br>142,476<br>142,476|
|||||<br> <br>||
|||||||



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**<br>**per the statement of financial activities**<br>Adjustments for:<br>Additions to property portfolio<br>Revaluation of property portfolio<br>Interest receivable<br>Increase in debtors<br>(Decrease)/Increase in creditors<br>**Net cash used in operating activities**|**2025**<br>**£**<br>8,254,592<br>(1,165,504)<br>(7,575,192)<br>(11,049)<br>50,761<br>(3,198)<br>(449,591)|**2024**<br>**£**<br>202,967<br>(522,781)<br>402,554<br>(1,070)<br>(125,797)<br>637,623<br>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<br>Total|<br>**Balance as on**<br>**01st April 2024**<br>**Net income /**<br>**(expenditure)**<br>**Transfer**<br>**Balance as on**<br>**31st March 2025**<br>21,752,704<br>7,575,192<br>1,602,131<br>30,930,027|
|---|---|
||21,752,704<br>7,575,192<br>1,602,131<br>30,930,027|



Page 18 



## **HACKNEY JOINT ESTATE CHARITY** 

|Total funds<br>Total|**Balance as on**<br>**01st April 2023**<br>**Net income /**<br>**(expenditure)**<br>**Transfer**<br>**Balance as on**<br>**31st March 2024**<br>21,261,013<br>(402,554)<br>894,245<br>21,752,704|
|---|---|
||21,261,013<br>(402,554)<br>894,245<br>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<br>Estate Repairs Reserve<br>Future Developments Fund<br>Total|**Balance as on**<br>**01st April 2024**<br>**Net income /**<br>**(expenditure)**<br>**Transfer**<br>**Balance as on**<br>**31st March**<br>**2025**<br>1,416,207<br>888,177<br>(1,810,908)<br>493,476<br>100,000<br>(208,777)<br>208,777<br>100,000<br>300,000<br>-<br>-<br>300,000|
|---|---|
||1,816,207<br>679,400<br>(1,602,131)<br>893,476|



## **Unrestricted funds – prior year 2023/24** 

|General fund<br>Estate Repairs Reserve<br>Future Developments Fund<br>Total|**Balance as on**<br>**01st April 2023**<br>**Net income /**<br>**(expenditure)**<br>**Transfer**<br>**Balance as on**<br>**31st March**<br>**2024**<br>1,704,931<br>806,586<br>(1,095,310)<br>1,416,207<br>100,000<br>(201,065)<br>201,065<br>100,000<br>300,000<br>-<br>-<br>300,000|
|---|---|
||2,104,931<br>605,521<br>(894,245)<br>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<br>Current assets<br>Current liabilities<br>Long term liabilities<br>**Total**<br>**Analysis of net assets between funds – prior**<br>**year 2023/24**<br>Investments<br>Current assets<br>Current liabilities<br>Long term liabilities<br>**Total**|**Endowment**<br>**Funds**<br>**£**<br>34,356,787||**General**<br>**Funds**<br>**£**|**Designated**<br>**Funds**<br>**£**|**Total**<br>**Funds**<br>**£**|
|---|---|---|---|---|---|
||||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)**<br>**Endowment**<br>**Funds**<br>**£**<br>25,255,738<br>-<br>(82,029)<br>(3,421,006)<br>21,752,704||**463,362**<br>**General**<br>**Funds**<br>**£**<br>864,489<br>777,628<br>(225,910)<br>-<br>1,416,207|**-**<br>**Designated**<br>**Funds**<br>**£**<br>-<br>400,000<br>-<br>-<br>400,000|470,674<br>Total<br>Funds<br>£<br>26,120,227<br>1,177,628<br>(307,939)<br>(3,421,006)<br>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~~