Charity number: 224098
LADY ELIZABETH HASTINGS' ESTATE CHARITY
TRUSTEE'S REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 24 JUNE 2021
LADY ELIZABETH HASTINGS' ESTATE CHARITY
CONTENTS
| Page | |
|---|---|
| Reference and administrative details of the charity, its trustee and advisers | 1 |
| Trustee's Report | 2 - 7 |
| Independent Auditor's Report on the Financial Statements | 8 - 11 |
| Statement of Financial Activities | 12 |
| Balance Sheet | 13 |
| Statement of Cash Flows | 14 |
| Notes to the Financial Statements | 15 - 29 |
LADY ELIZABETH HASTINGS' ESTATE CHARITY
REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 24 JUNE 2021
| Trustee | The LadyElizabeth Hastings' Charities Trustee Limited |
|---|---|
| Charity registered number 224098 Principal office C/o Carter Jonas 82 Micklegate York YO1 6LF Independent auditor BHP LLP Statutory Auditor Rievaulx House 1 St Mary's Court Blossom Street York YO24 1AH Bankers NatWest 1 Market Street York YO1 9YH Solicitors Grays Duncombe Place York YO1 7DY Clerk and agent Mr Andrew Fallows C/o Carter Jonas 82 Micklegate York YO1 6LF Investment adviser Smith & Williamson 3rd Floor Colmore Row Birmingham B3 2BJ Investment manager CCLA Senator House 85 Queen Street London EC4V 4ET |
Page 1
LADY ELIZABETH HASTINGS' ESTATE CHARITY
TRUSTEE'S REPORT
FOR THE YEAR ENDED 24 JUNE 2021
The trustee presents the annual report together with the audited financial statements of the charity for the 25 June 2020 to 24 June 2021. The trustee has adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” (FRS 102) in preparing the annual report and financial statements of the charity.
The financial statements have been prepared in accordance with the accounting policies set out in the notes to the accounts and comply with the charity's governing document, the Charities Act 2011 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 published in October 2019.
The Trustee
The Trustee who served the charity during the period was The Lady Elizabeth Hastings' Charities Trustee Limited, whose purpose is to act as a trust corporation, to undertake and perform the office and duties of trustee, and is the sole trustee of the Charity.
The Directors of the Trustee Company were as follows: Rev Canon C Wilton Mr C M P Granger Mr P J Warry Mr J E Sharp Mr S J Hartley Mr S Close Ven P K Townley Ms D Younge
The Directors are each appointed based upon a skills audit specifically knowledge of the community within the areas of benefit, knowledge of the clergy, financial, legal and property experience. A review of the relevant experience is carried out annually. Induction for new Directors is carried out by the Clerk and appropriate Trustee training is provided. Despite the constraints imposed by the Coronavirus restrictions, the Directors continued to meet regularly during the period via the use of technology.
Objectives and activities
a. Policies and objectives
The Lady Elizabeth Hastings Estate Charity holds and manages all the property and Stock Exchange investments, and collects the income and pays the expenses of management, property repairs, maintenance and insurance.
The Trustee has the discretion over the allocation of funds between the Education Foundation and Non-Educational Charity.
Page 2
LADY ELIZABETH HASTINGS' ESTATE CHARITY
TRUSTEE'S REPORT (CONTINUED)
FOR THE YEAR ENDED 24 JUNE 2021
Objectives and activities (continued)
In the current year the Lady Elizabeth Hastings Education Foundation received 55% of the net income distributed by the Estate Charity and allocates this in accordance with the Scheme, mainly by way of:
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specified grants to schools and other recipients; and
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residue grants for promoting the education (including social and physical training) of persons who in the opinion of the Trustee are in need of financial assistance and who are either resident in the area of benefit or have at any time attended schools specified in the Scheme.
In the current year the Lady Elizabeth Hastings Non-Educational Charity received 45% of the net income distributed by the Estate Charity and makes grants in accordance with the Scheme, mainly by way of:
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specified grants to individuals and organisations; and
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residue grants principally for the maintenance of specified churches, the relief of need of clergy and their dependents in the areas of benefit, the maintenance of specified clergy residences or the relief of persons in need, hardship or distress in defined parishes.
The Charity has reduced its grant-making (£304,395) in 2020/21 by £107,776, a decrease of 26% (2019/20: £412,171).
Grants decreased in both the educational and the non-educational charities, with 145 educational applications supported and 132 of non-educational applications.
Major grants made included Bardsey Primary School (£14,801), Lady Hastings' School, Collingham (£4,757) and Lady Hastings' School, Thorpe Arch (£4,811).
Grant making has been at a lower level than the prior year for various reasons. Extracurricular activities in the schools did not happen and building projects were put on hold due to the pandemic. The Directors were however pleased to make grants to schools for additional IT equipment in support of home based learning.
On the non-educational side, although we expected to see increased demand for grants relating to reductions in household income, many who would have applied for grants for holidays and other external activities were unable to undertake these. Support for travel costs in relation to medical treatment were also down, possibly with the reduction in levels of routine treatments.
The Directors noted a reduced number of poor of the parish applications, possibly related to clergy vacancies in two of the parishes of benefit. There were also fewer applications from community groups for contributions to capital projects, again due to reduced activity during the pandemic.
The Directors are preparing for an increased demand for grants both educational and non-educational in the coming year as school and churches start to come out of the pandemic, with associated pressures on finances and clergy and pupil wellbeing.
The Directors met with representatives of the Schools within the Area of Benefit at The Mercure Hotel, Wetherby on 30 January 2020. Presentations were given on the life of Lady Elizabeth Hastings, the aims and objectives of the Charity and how the Charity may be able to assist particular projects that individual schools may be considering. The event was well attended and considered to be informative by all attendees.
The Trustee confirms that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit in setting the objectives and planning the activities of the organisation. Further details on how the charity has carried out its activities for public benefit are given in the section on Achievements and Performance below.
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LADY ELIZABETH HASTINGS' ESTATE CHARITY
TRUSTEE'S REPORT (CONTINUED)
FOR THE YEAR ENDED 24 JUNE 2021
Objectives and activities (continued)
b. Restrictions in the way in which the Charities can operate
Areas of benefit are in accordance with the Scheme and grants are allocated at the discretion of the Trustee.
c. Investment policy
Investment in land, property or Stock Exchange securities are subject to the provisions of the Scheme dated 10 April 2012, the Trustees Investment Act 2000 and the relevant provisions of the Charities Act 2011.
d. Investment policy
To take a long term view with regard to investment policies in order to maintain and increase capital values while at the same time increasing the income specifically, and reflecting professional advice on the balance between property and other investments.
1. Property
To obtain appropriate professional advice on property decisions, and to maintain the condition of its property portfolio in a good state of repair and where appropriate to make capital improvements to maintain or increase value and rental income in accordance with professional advice.
2. Other Investments
To obtain appropriate professional advice on investment decisions, in particular, taking advice from the Church of England Ethical Investment Advisory Group (EIAG) to ensure a distinctly Christian approach to investment.
A separate Investment Committee reports to the Board of Directors in respect of the investment policy. The committee has overseen the introduction of two separate investment managers who are both specialists in the field of charity investment and the development of appropriate mandates for the advisors. Whilst committed to its origins as a land based charity, the Board monitor the balance between land and financial instruments with a view to obtaining both sustainable capital growth and keeping pace with inflation in the sums available for distribution. The individual portfolio managers report quarterly to the Board of Directors and personally address the Board once a year. The Directors have appointed an independent advisor with substantial investment experience to review the balance and performance of the investment portfolio over the coming year.
Achievements and performance
a. Main achievements of the charity
Investment income for the year ended 24 June 2021 was £627,582 compared with £629,371 in the previous year, a decrease of 0.3%.
Within investment income, the total income from investment properties was £317,990 (2020: £301,915), an increase of £16,075. The investment property yield calculated using the simple average of opening and closing property values was 3.2% (2020: 3.4%).
Income from listed investments decreased by 4.9% to £308,974 (2020: decrease by 4.4% to £325,017). The investment yield on these investments, again calculated using the simple average of opening and closing investment values, was 2.6% (2020: 2.8%). The current year figure for investment income less costs of generating funds and governance costs was £354,161 (2020: £422,759). Calculated as a proportion of the simple average of opening and closing total investment values this gives a return of 1.6% (2020: 2.0%).
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LADY ELIZABETH HASTINGS' ESTATE CHARITY
TRUSTEE'S REPORT (CONTINUED) FOR THE YEAR ENDED 24 JUNE 2021
Achievements and performance (continued)
The Educational Foundation made 145 individual grants totalling £126,656 in addition to the fixed yearly payments and grants to schools (2020: 147 grants totalling £189,300).
The Non-Educational Charity made individual grants to 132 clergy and their dependents totalling £177,739 in addition to fixed yearly payments, grants to the Churches and grants to the poor (2020: 131 totalling £222,871).
After completion of the charitable activities for the year the Charity showed a surplus on restricted funds of £49,766 (2020: surplus of £10,588) before gains/(losses) on investment assets. Gains on investments were £1,776,001 (2020: £423,571). After taking account of these the overall surplus for the year is £1,825,767 (2020: £434,159).
The Charity maintains sufficient cash resources to enable its obligations to be met as needed. The use of a second investment manager provides a visible measure of performance providing benchmarking against industry standards and agreed policies on revenue and capital growth as agreed by the Investment Committee.
b. Fixed assets
The Charity's freehold and leasehold investment properties were revalued on 24 June 2020 on an open market basis by Strutt & Parker LLP. The next quinquennial valuation is due on 24 June 2025.
The Charity purchased 119 acres of agricultural land at Bardsey and subsequently let the land at a market rent, maintaining the balance in the portfolio and offsetting previous disposals. The investment also strengthens the connection with the community at Bardsey.
c. Commitments
At 24 June 2021 under the Scheme of the Charity, the Educational Foundation and Non-Educational Charity make yearly payments to specified recipients out of the income for each year.
The yearly payments of the Educational Foundation are detailed in Clause 11(1)(b/c/d/e) of the Scheme; subject to the availability of funds the amount due for payment next year is £17,250 (2020: £17,250).
The yearly payments of the Non-Educational Charity are detailed in Clause 13(1)(c/d/e) of the Scheme; subject to the availability of funds the amount due for payment next year is £6,600 (2020: £6,600).
d. Information on fundraising practices
The Charity does not carry out any direct fundraising activity.
Financial review
a. Going concern
Covid-19 has impacted upon the commercial rents received and the investment income received. The Directors anticipate greater pressure on their retail commercial investments although their exposure to food retail is not considered to be under pressure. Dividend income will also be under pressure however the nature of the CCLA investment makes this income stream less vulnerable. The Directors continue to review the asset base with regard to the wider economy with a view to achieving a balanced portfolio.
The Directors have reviewed the performance of their asset base against their obligations and do not believe there are any concerns in adopting the going concern basis.
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LADY ELIZABETH HASTINGS' ESTATE CHARITY
TRUSTEE'S REPORT (CONTINUED)
FOR THE YEAR ENDED 24 JUNE 2021
b. Reserves policy
Funds carried forward at 24 June 2021 are £23,485,910 (2020: £21,660,143) of which £1,062,896 (2020: £970,947) are restricted funds and £22,423,014 (2020: £20,689,196) are endowment funds. The charity does not have any unrestricted funds. Restricted funds represent funds generated by the Estate Charity, from rentals and investments, for distribution to the Educational Foundation and the Non-Educational Charity. At 24 June 2021 these funds together with the Extraordinary Repair fund amounted to £1,062,896 (2020: £970,947). This provides sufficient funds to cover management and administration and support costs and to fund the Educational Foundation and the Non-Educational Charity. The trustee is satisfied that these levels can be sustained for the future. The Educational Foundation and the Non-Educational Charity retain a minimum level of reserves only, as the Scheme states that all of their income should be distributed by way of grants as applications arise. At 24 June 2021 the Educational Foundation's reserves were £243,263 (2020: £183,240). The Non-Educational Charity reserves were £194,266 (2020: £150,113).
c. Grant making policy
The Charity invites applications for funding. The applications are reviewed against the criteria as set out in the Deed in quarterly meetings. In the current year the Trustee has awarded grants in exercise of their discretion.
d. Risk management
The trustee has assessed the major risks to which the charity is exposed, in particular those related to the operations and finances of the charity, and are satisfied that systems and procedures are in place to mitigate our exposure to the major risks. The major risk is the management of the charities' investment portfolios. The trustee manages this risk by the appointment of a professional clerk and agent and experienced investment advisors. The trustee has taken the positive step of splitting the investment portfolio between two investment managers in order to manage and mitigate risk to the Charity.
Structure, governance and management
a. Constitution
The Charity was founded by a Deed on 14 December 1738 and comprises three distinct charities, The Lady Elizabeth Hastings Estate Charity, The Lady Elizabeth Hastings Education Foundation, and The Lady Elizabeth Hastings NonEducational Charity.
The Charities are now governed by a Scheme dated 10 April 2012.
b. Methods of appointment or election of trustee
The management of the charity is the responsibility of the directors of the trustee company, who are appointed under the terms of the articles of association of the company.
Plans for future periods
The Trustee plans to continue to review the balance between the property and investment portfolios in order to ensure the income potential is maximised to enable them to meet their future charitable obligations.
The Trustee will continue to try raise awareness of the availability of support to qualifying potential beneficiaries via the Educational Foundation and the Non-Educational Charity.
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LADY ELIZABETH HASTINGS' ESTATE CHARITY
TRUSTEE'S REPORT (CONTINUED)
FOR THE YEAR ENDED 24 JUNE 2021
Statement of trustee's responsibilities
The trustee is responsible for preparing the Trustee's Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England & Wales requires the trustee to prepare financial statements for each financial which give a true and fair view of the state of affairs of the charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the trustee is required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles of the Charities SORP (FRS 102);
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make judgments and accounting estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The trustee is responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Disclosure of information to auditor
The trustee at the time when this Trustee's Report is approved has confirmed that:
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so far as that trustee is aware, there is no relevant audit information of which the charity's auditor is unaware, and
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that trustee has taken all the steps that ought to have been taken as a trustee in order to be aware of any relevant audit information and to establish that the charity's auditor is aware of that information.
Auditor
The auditor, BHP LLP, has indicated their willingness to continue in office. The designated trustee will propose a motion reappointing the auditor at a meeting of the trustee.
Approved by order of the members of the board of trustee and signed on their behalf by:
The Reverend Canon Christopher Wilton
Signed on behalf of The Lady Elizabeth Hastings' Charities Trustee Limited
Date: 8 October 2021
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LADY ELIZABETH HASTINGS' ESTATE CHARITY
INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEE OF LADY ELIZABETH HASTINGS' ESTATE CHARITY
Opinion
We have audited the financial statements of Lady Elizabeth Hastings' Estate Charity (the 'charity') for the year ended 24 June 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
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give a true and fair view of the state of the charity's affairs as at 24 June 2021 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Charities Act 2011.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the trustee's 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 trustee with respect to going concern are described in the relevant sections of this report.
Page 8
LADY ELIZABETH HASTINGS' ESTATE CHARITY
INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEE OF LADY ELIZABETH HASTINGS' ESTATE CHARITY (CONTINUED)
Other information
The trustee is responsible for the other information. The other information comprises the information included in the Trustee's Report, other than the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Matters on which we are required to report by exception
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:
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the information given in the Trustee's Report is inconsistent in any material respect with the financial statements; or
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the charity has not kept adequate accounting records
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the financial statements are not in agreement with the accounting records and returns; or
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we have not received all the information and explanations we require for our audit.
Responsibilities of trustee
As explained more fully in the trustee's responsibilities statement, the trustee is responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the trustee determines 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 trustee is 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 trustee either intends to liquidate the charity or to cease operations, or has no realistic alternative but to do so.
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LADY ELIZABETH HASTINGS' ESTATE CHARITY
INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEE OF LADY ELIZABETH HASTINGS' ESTATE CHARITY (CONTINUED)
Auditor's responsibilities for the audit of the financial statements
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We gained an understanding of the legal and regulatory framework applicable to the charity and the sector in which it operates and considered the risk of acts by the charity that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
We focussed on laws and regulations, relevant to the charity, which could give rise to a material misstatement in the financial statements. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries of management, review of minutes and both legal and consultancy expenses. There are inherent limitations in the audit procedures described and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.
As part of our audit, we addressed the risk of management override of internal controls, including testing of journals and review of the nominal ledger. We evaluated whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.
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/auditors/audit-assurance/auditor-s-responsibilities-for-the-audit-of-thefi/description-of-the-auditor’s-responsibilities-for. This description forms part of our auditor's report.
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LADY ELIZABETH HASTINGS' ESTATE CHARITY
INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEE OF LADY ELIZABETH HASTINGS' ESTATE CHARITY (CONTINUED)
Use of our report
This report is made solely to the charity's trustee, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustee 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 its trustee, as a body, for our audit work, for this report, or for the opinions we have formed.
BHP LLP
Statutory Auditor Rievaulx House 1 St Mary's Court Blossom Street York YO24 1AH
Date: 18 October 2021
BHP LLP are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.
Page 11
LADY ELIZABETH HASTINGS' ESTATE CHARITY
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 24 JUNE 2021
| Note Income and endowments from: Investments 2 Total income and endowments Expenditure on: Raising funds 3 Charitable activities 4 Total expenditure Net income/(expenditure) before net gains on investments Net gains on investments Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward |
Restricted funds 2021 £ 627,582 627,582 256,491 320,921 577,412 50,170 41,779 91,949 970,947 91,949 1,062,896 |
Endowment funds 2021 £ - - 404 - 404 (404) 1,734,222 1,733,818 20,689,196 1,733,818 22,423,014 |
Total funds 2021 £ 627,582 627,582 256,895 320,921 577,816 49,766 1,776,001 1,825,767 21,660,143 1,825,767 23,485,910 |
Total funds 2020 £ 629,371 629,371 |
|---|---|---|---|---|
| 189,359 429,424 618,783 |
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| 10,588 423,571 434,159 |
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| 21,225,984 434,159 21,660,143 |
The Statement of Financial Activities includes all gains and losses recognised in the year.
The notes on pages 15 to 29 form part of these financial statements.
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LADY ELIZABETH HASTINGS' ESTATE CHARITY
BALANCE SHEET
AS AT 24 JUNE 2021
| Note Fixed assets Intangible assets 8 Investments 10 Investment property 9 Current assets Debtors 11 Cash at bank and in hand Creditors: amounts falling due within one year 12 Net current assets Total net assets Charity funds Endowment funds 13 Restricted funds 13 Total funds |
44,555 539,495 584,050 (62,903) |
2021 £ 8,079 12,399,978 10,556,706 22,964,763 521,147 23,485,910 22,423,014 1,062,896 23,485,910 |
28,288 748,892 777,180 (54,904) |
2020 £ - 11,695,208 9,242,659 |
|---|---|---|---|---|
| 20,937,867 722,276 |
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| 21,660,143 | ||||
| 20,689,196 970,947 |
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| 21,660,143 |
The financial statements were approved and authorised for issue by the trustee and signed on their behalf by:
The Reverend Canon Christopher Wilton
Signed on behalf of The Lady Elizabeth Hastings' Charities Trustee Limited
Date: 8 October 2021
The notes on pages 15 to 29 form part of these financial statements.
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LADY ELIZABETH HASTINGS' ESTATE CHARITY
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 24 JUNE 2021
| Note Cash flows from operating activities Net cash used in operating activities 16 Cash flows from investing activities Dividends, interests and rents from investments Purchase of investment property Purchase of intangible assets Proceeds from sale of investments Purchase of investments Net cash provided by investing activities Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year 17 |
2021 £ (585,680) 627,582 (1,242,047) (8,483) 2,411,847 (1,412,616) 376,283 (209,397) 748,892 539,495 |
2020 £ (614,949) 629,371 (20,872) - 730,889 (684,942) 654,446 39,497 709,395 748,892 |
|---|---|---|
The notes on pages 15 to 29 form part of these financial statements
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LADY ELIZABETH HASTINGS' ESTATE CHARITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 24 JUNE 2021
1. Accounting policies
1.1 Basis of preparation of financial statements
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (issued in October 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.
The financial statements have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following the 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 issued in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.
Lady Elizabeth Hastings' Estate Charity meets the definition of a public benefit entity under FRS 102. The financial statements are presented in sterling which is the functional currency of the charity, and rounded to the nearest £.
1.2 Going concern
The financial statements are prepared on the going concern basis. The trustee has reasonable expectation based on income forcasts, that the charity can continue to meet its liabilities as the fall due and will continue in operational existence for the forseeable future.
1.3 Income
All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.
1.4 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.
Costs of raising funds are costs incurred in attracting investment income.
Charitable activities and governance costs are costs incurred on the charity's operations, including support costs and costs relating to the governance of the charity apportioned to charitable activities.
Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.
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LADY ELIZABETH HASTINGS' ESTATE CHARITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 24 JUNE 2021
1. Accounting policies (continued)
1.4 Expenditure (continued)
All expenditure is inclusive of irrecoverable VAT.
1.5 Interest receivable
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 institution with whom the funds are deposited.
1.6 Taxation
The charity is considered to pass the tests set out in Sch. 6, para. 1 of the Finance Act 2010 and therefore it meets the definition of a charity for UK income tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Income Tax Act 2007, Part 10 s521 – s537 or s. 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
1.7 Intangible assets and amortisation
Intangible assets are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
Amortisation is provided on intangible assets at rates calculated to write off the cost of each asset on a straight-line basis over its expected useful life.
The estimated useful lives are as follows:
Amortisation is provided on the following basis:
Land entitlements - 7 years
1.8 Investments
Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance Sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Statement of Financial Activities.
1.9 Debtors
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
Page 16
LADY ELIZABETH HASTINGS' ESTATE CHARITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 24 JUNE 2021
1. Accounting policies (continued)
1.10 Cash at bank and in hand
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
1.11 Liabilities and provisions
Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
1.12 Financial instruments
The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.
1.13 Fund accounting
Endowment funds represent those assets which must be held permanently by the charity, principally the property and investments allotted to the charity on it's foundation, adjusted to reflect additions, disposals and changes in market value. Income arising on the endowment funds can be used in accordance with the objects of the estate charity fund and is included as restricted income.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
Investment income, gains and losses are allocated to the appropriate fund.
Page 17
LADY ELIZABETH HASTINGS' ESTATE CHARITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 24 JUNE 2021
2. Investment income
| Income from UK investment properties Income from listed investments Bank interest receivable Total 2020 |
Restricted funds 2021 £ 317,990 308,974 618 627,582 629,371 |
Total funds 2021 £ 317,990 308,974 618 627,582 629,371 |
Total funds 2020 £ 301,915 325,017 2,439 629,371 |
|---|---|---|---|
3. Investment management costs
| Investment portfolio management fees Investment property management fees Educational Foundation clerical fees Non-Educational Charity clerical fees Repairs Insurance Rates, light and heat Bad debt provision Legal and professional Amortisation Total 2020 |
Restricted funds 2021 £ 31,553 35,876 18,504 18,504 64,396 28,715 3,492 32,469 22,982 - 256,491 189,359 |
Endowment funds 2021 £ - - - - - - - - - 404 404 - |
Total funds 2021 £ 31,553 35,876 18,504 18,504 64,396 28,715 3,492 32,469 22,982 404 256,895 189,359 |
Total funds 2020 £ 32,555 35,586 18,360 18,360 35,181 28,398 84 - 20,835 - 189,359 |
|---|---|---|---|---|
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LADY ELIZABETH HASTINGS' ESTATE CHARITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 24 JUNE 2021
4. Expenditure on charitable activities
| Grants (non-educational charity) (note 5) Grants (educational foundation) (note 5) Expenditure on governance (note 6) |
Restricted funds 2021 £ 177,739 126,656 304,395 16,526 320,921 |
Total funds 2021 £ 177,739 126,656 304,395 16,526 320,921 |
Total funds 2020 £ 222,871 189,300 |
|---|---|---|---|
| 412,171 17,253 429,424 |
All grants and governance costs incurred in the prior year are restricted.
5. Grants expenditure
| 2021 2020 |
|
|---|---|
| £ £ |
|
| Grants(non-educational charity) | |
| Yearly payments(clause 13(1)(c,d,e)) | 9,224 9,073 |
| Grants(clause 13(1)(a)) | 16,352 25,110 |
| Grants(clause 13(1)(b)(i to iv) | 151,263 176,873 |
| Grants (clause 13(b)(v)) | 900 11,815 |
| 177,739 222,871 |
|
| Grants(educationalfoundation) | |
| Yearly payments(clause 11(1)(b,c,e)) | 8,571 8,430 |
| Special benefits(clause 11(1)(d)) | 14,433 14,205 |
| Scholarships andgrants(clause 11(1)(a)) | 101,542 164,219 |
| School leavers bibles | 2,110 2,446 |
| 126,656 189,300 |
Page 19
LADY ELIZABETH HASTINGS' ESTATE CHARITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 24 JUNE 2021
6. Governance costs
| Audit fees (note 7) Accountancy fees (note 7) Office costs Website and domain charges Costs of trustee's meetings and rent days Total 2020 |
Restricted funds 2021 £ 7,320 5,280 2,710 108 1,108 16,526 17,253 |
Total funds 2021 £ 7,320 5,280 2,710 108 1,108 16,526 17,253 |
Total funds 2020 £ 7,200 5,160 3,131 108 1,654 17,253 |
|---|---|---|---|
7. Net income/(expenditure)
This is stated after charging:
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Auditor's remuneration - audit | 7,320 | 7,020 |
| Auditor's remuneration - accountancy | 5,280 | 5,160 |
During the year, no Trustee received any remuneration or other benefits (2020 - £nil). During the year, no Trustee received any reimbursement of expenses (2020 - £nil).
Page 20
LADY ELIZABETH HASTINGS' ESTATE CHARITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 24 JUNE 2021
| 8. Intangible assets Cost Additions At 24 June 2021 Amortisation Charge for the year At 24 June 2021 Net book value At 24 June 2021 At 24 June 2020 |
Land entitlements £ 8,483 |
|---|---|
| 8,483 | |
| 404 | |
| 404 | |
| 8,079 | |
| - |
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LADY ELIZABETH HASTINGS' ESTATE CHARITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 24 JUNE 2021
9. Investment property
| Valuation At 25 June 2020 Additions Surplus on revaluation At 24 June 2021 |
Freehold investment property £ 9,242,659 1,242,047 72,000 |
|---|---|
| 10,556,706 |
The valuations were made by Strutt & Parker on 24 June 2020, on an open market value for existing use basis. The historic cost of investment property held as at the year end is £3,702,354 (2020: £2,460,307).
Included in the above are the following investment properties which account for more than 5% of the total portfolio value:
| Moor End Farm, Boston Spa Lilac Farm, Collingham Land at Bardsey |
2021 £ 1,731,600 1,091,124 1,220,000 4,042,724 |
2020 £ 1,731,600 1,091,124 - 2,822,724 |
|---|---|---|
10. Fixed asset investments
| Cost or valuation At 25 June 2020 Additions Disposals Revaluations At 24 June 2021 |
Listed investments £ 11,691,078 812,641 (2,411,847) 1,704,001 11,795,873 |
Cash held in investment portfolio £ - 599,975 - - 599,975 |
Other fixed asset investments £ 4,130 - - - 4,130 |
Total £ 11,695,208 1,412,616 (2,411,847) 1,704,001 12,399,978 |
|---|---|---|---|---|
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LADY ELIZABETH HASTINGS' ESTATE CHARITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 24 JUNE 2021
10. Fixed asset investments (continued)
The historic cost of listed investments as at the balance sheet date is £7,324,068 (2020: £7,959,009), cash held in investment portfolio is £599,975 (2020: £nil) and other investments is £4,130 (2020: £4,130).
The only non-UK investment assets are non-UK equities with a market value at the Balance Sheet date of £2,321,208 (2020: £2,307,439).
There are no listed investments that account for more than 5% of the total portfolio value at 24 June 2021.
11. Debtors
| Due within one year Other debtors Prepayments and accrued income |
2021 £ 6,034 38,521 44,555 |
2020 £ 16,486 11,802 |
|---|---|---|
| 28,288 |
12. Creditors: Amounts falling due within one year
| Trade creditors Rents in advance Accruals and deferred income |
2021 £ 23,788 2,125 36,990 62,903 |
2020 £ 14,478 6,475 33,951 |
|---|---|---|
| 54,904 |
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LADY ELIZABETH HASTINGS' ESTATE CHARITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 24 JUNE 2021
13. Statement of funds
| Statement of funds | |||||
|---|---|---|---|---|---|
| Statement of funds - current year Balance at 25 June 2020 £ Endowment funds Endowment Fund 20,689,196 Restricted funds Estate Charity 462,321 Educational Foundation 183,240 Non-Educational Charity 150,113 Extraordinary Repair Fund 175,273 970,947 Total of funds 21,660,143 |
Income £ - 627,582 - - - 627,582 627,582 |
Expenditure £ (404) (235,753) (146,038) (195,621) - (577,412) (577,816) |
Transfers in/out £ - (445,835) 206,061 239,774 - - - |
Gains/ (Losses) £ 1,734,222 - - - 41,779 41,779 1,776,001 |
Balance at 24 June 2021 £ 22,423,014 |
| Endowment funds Endowment Fund Restricted funds Estate Charity Educational Foundation Non-Educational Charity Extraordinary Repair Fund Total of funds |
|||||
| 408,315 243,263 194,266 217,052 1,062,896 |
|||||
| 23,485,910 |
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LADY ELIZABETH HASTINGS' ESTATE CHARITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 24 JUNE 2021
13. Statement of funds (continued)
| Statement of funds - prior year Balance at 25 June 2019 £ Endowment funds Endowment Fund 20,270,663 Restricted funds Estate Charity 521,437 Educational Foundation 141,751 Non-Educational Charity 121,898 Extraordinary Repair Fund 170,235 955,321 Total of funds 21,225,984 |
Income £ - 629,371 - - - 629,371 629,371 |
Expenditure £ - (167,777) (208,866) (242,140) - (618,783) (618,783) |
Transfers in/out £ - (520,710) 250,355 270,355 - - - |
Gains/ (Losses) £ 418,533 - - - 5,038 5,038 423,571 |
Balance at 24 June 2020 £ 20,689,196 |
|---|---|---|---|---|---|
| Endowment funds Endowment Fund Restricted funds Estate Charity Educational Foundation Non-Educational Charity Extraordinary Repair Fund Total of funds |
|||||
| 462,321 183,240 150,113 175,273 970,947 |
|||||
| 21,660,143 |
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LADY ELIZABETH HASTINGS' ESTATE CHARITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 24 JUNE 2021
Description of funds
The Endowment Fund represents the UK investment properties and a large proportion of the listed investments for the purpose of generating sufficient income for the continuing of the charity's objects.
The Estate Charity fund manages all the property and investments, and collects the income and pays the expenses of management, property repairs, maintenance and insurance. The Estate Charity also makes equal payments to the Educational Foundation and the Non-Educational Charity for application in accordance with those funds.
The Educational Foundation receives income from the Estate Charity to be applied in accordance with the Scheme, mainly by way of grants to specific schools and to residents in the areas of benefit.
The Non-Educational Charity receives income from the Estate Charity to be applied in accordance with the Scheme, mainly by way of grants to specific churches and to clergy and their dependents in the areas of benefit and to the poor in defined parishes.
The Extraordinary Repair Fund is used for the extraordinary repair, improvement or rebuilding of the property of the charity. The trustees keep the size of the fund under review in the light of the demands which may be made upon it.
14. Summary of funds
Summary of funds - current year
| Endowment funds Restricted funds |
Balance at 25 June 2020 £ 20,689,196 970,947 21,660,143 - prior year Balance at 25 June 2019 £ 20,270,663 955,321 21,225,984 |
Income £ - 627,582 627,582 Income £ - 629,371 629,371 |
Expenditure £ (404) (577,412) (577,816) Expenditure £ - (618,783) (618,783) |
Transfers in/out £ - - - Transfers in/out £ - - - |
Gains/ (Losses) £ 1,734,222 41,779 1,776,001 Gains/ (Losses) £ 418,533 5,038 423,571 |
Balance at 24 June 2021 £ 22,423,014 1,062,896 23,485,910 |
|---|---|---|---|---|---|---|
| Balance at 24 June 2020 £ 20,689,196 970,947 21,660,143 |
||||||
| Summary of funds | ||||||
| Endowment funds Restricted funds |
Page 26
LADY ELIZABETH HASTINGS' ESTATE CHARITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 24 JUNE 2021
15. Analysis of net assets between funds
Analysis of net assets between funds - current year
| Intangible fixed assets Fixed asset investments Investment property Current assets Creditors due within one year Total Analysis of net assets between funds - prior year Fixed asset investments Investment property Current assets Creditors due within one year Total |
Restricted funds 2021 £ - 337,426 - 788,373 (62,903) 1,062,896 Restricted funds 2020 £ 295,647 - 730,204 (54,904) 970,947 |
Endowment funds 2021 £ 8,079 12,062,552 10,556,706 (204,323) - 22,423,014 Endowment funds 2020 £ 11,399,561 9,242,659 46,976 - 20,689,196 |
Total funds 2021 £ 8,079 12,399,978 10,556,706 584,050 (62,903) 23,485,910 Total funds 2020 £ 11,695,208 9,242,659 777,180 (54,904) 21,660,143 |
|---|---|---|---|
Page 27
LADY ELIZABETH HASTINGS' ESTATE CHARITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 24 JUNE 2021
16. Reconciliation of net movement in funds to net cash flow from operating activities
| Net income for the year (as per Statement of Financial Activities) Adjustments for: Amortisation charges Gains on investments Dividends, interests and rents from investments Increase in debtors Increase in creditors Net cash used in operating activities |
2021 £ 1,825,767 404 (1,776,001) (627,582) (16,267) 7,999 (585,680) |
2020 £ 434,159 |
|---|---|---|
| - (423,571 (629,371 (3,913) 7,747 |
||
| (614,949 |
17. Analysis of cash and cash equivalents
| Cash in hand Total cash and cash equivalents 18. Analysis of changes in net debt |
2021 £ 539,495 539,495 |
2020 £ 748,892 |
|---|---|---|
| 748,892 | ||
| Cash at bank and in hand | At 25 June 2020 £ 748,892 748,892 |
Cash flows £ (209,397) (209,397) |
At 24 June 2021 £ 539,495 539,495 |
|---|---|---|---|
Page 28
LADY ELIZABETH HASTINGS' ESTATE CHARITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 24 JUNE 2021
19. Related party transactions
Mr CMP Granger is a Director of the charity Trustee and is Chief Executive of Carter Jonas, being based in London. He is a Director of the charity Trustee in an individual capacity due to his significant local knowledge of the history of the charity and his agricultural and property expertise and derives no financial benefit from the charity Trustee in his role as a Director. £102,669 (2020: £97,442) was paid to Carter Jonas during the year in resepct of clerks, estate management and planning fees, of which £9,382 (2020: £15,184) are planning fees which have been capitalised. At the year-end, fees of £16,208 (2020: £15,747) were due to Carter Jonas.
Page 29