Charity number: 224098
LADY ELIZABETH HASTINGS' ESTATE CHARITY
TRUSTEE'S REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 24 JUNE 2023
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 - 10 |
| Statement of financial activities | 11 |
| Balance sheet | 12 |
| Statement of cash flows | 13 |
| Notes to the financial statements | 14 - 27 |
LADY ELIZABETH HASTINGS' ESTATE CHARITY
REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 24 JUNE 2023
| 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 Barclays Bank plc Level 27 1 Churchill Place London E14 5HP Solicitors Grays Duncombe Place York YO1 7DY Clerk and agent Mr Andrew Fallows C/o Carter Jonas 82 Micklegate York YO1 6LF Investment manager Waverton Investment Management Limited 16 Babmaes Street London SW1Y 6AH 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 2023
The Trustee presents the annual report together with the audited financial statements of the charity for the 25 June 2022 to 24 June 2023. 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.
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.
In the current year the Lady Elizabeth Hastings Education Foundation received 56% 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.
Page 2
LADY ELIZABETH HASTINGS' ESTATE CHARITY
TRUSTEE'S REPORT (CONTINUED)
FOR THE YEAR ENDED 24 JUNE 2023
Objectives and activities (continued)
In the current year the Lady Elizabeth Hastings Non-Educational Charity received 44% 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.
Whilst the number of grants decreased in the educational and increased in the non-educational charities, with 110 educational applications supported and 172 of non-educational applications, the Charity has increased its grant-making (£460,916) in 2022/23 by £13,132, a increase of 3% (2021/22: £447,784).
Major grants made included Lady E Hastings Primary School, Thorp Arch (£38,824), Lady Hastings' School, Collingham (£28,625) and Lady E Hastings' Primary School, Ledston (£33,428).
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 deal with associated pressures on finances and clergy and pupil wellbeing.
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.
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.
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.
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LADY ELIZABETH HASTINGS' ESTATE CHARITY
TRUSTEE'S REPORT (CONTINUED) FOR THE YEAR ENDED 24 JUNE 2023
Objectives and activities (continued)
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. He oversaw the change of one independent manager following a competitive exercise in conjunction with the Investment Committee.
Achievements and performance
a. Main achievements of the charity
Investment income for the year ended 24 June 2023 was £744,542 compared with £665,326 in the previous year, a increase of 12%.
Within investment income, the total income from investment properties was £333,015 (2022: £344,522), a decrease of £11,507. The investment property yield calculated using the simple average of opening and closing property values was 3.1% (2022: 3.3%). The accounts reflect an additional dilapidations settlement in respect of one property. A proportion of this settlement will be used to fund repairs to the building during the next financial year and £60,000 has been allocated to the extraordinary repairs fund, some to costs directly related to the negotiation of the settlement and the balance contributes to the increase in net income.
Income from listed investments decreased by 7.6% to £296,102 (2022: increase by 3.7% to £320,338). The investment yield on these investments, again calculated using the simple average of opening and closing investment values, was 2.5% (2022: 2.7%). The current year figure for investment income less costs of generating funds and governance costs was £348,555 (2022: £473,521). Calculated as a proportion of the simple average of opening and closing total investment values this gives a return of 1.6% (2022: 2.1%).
The Educational Foundation made 110 individual grants totalling £195,781 in addition to the fixed yearly payments and grants to schools (2022: 119 grants totalling £255,184).
The Non-Educational Charity made individual grants to 172 clergy and their dependents totalling £265,134 in addition to fixed yearly payments, grants to the Churches and grants to the poor (2022: 120 totalling £192,600).
After completion of the charitable activities for the year the Charity showed a surplus of £40,397 (2022: £25,737) before gains/(losses) on investment assets. Gain on investments were £228,425 (2022: Loss of £692,008). After taking account of these the overall surplus for the year is £268,822 (2022: Deficit of £666,271).
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.
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LADY ELIZABETH HASTINGS' ESTATE CHARITY
TRUSTEE'S REPORT (CONTINUED)
FOR THE YEAR ENDED 24 JUNE 2023
Achievements and performance (continued)
c. Commitments
At 24 June 2023 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 (2022: £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 (2022: £6,600).
d. Information on fundraising practices
The Charity does not carry out any direct fundraising activity.
Financial review
a. Going concern
The Trustee continues to review the asset base with regard to the wider economy with a view to achieving a balanced portfolio.
The Trustee has reviewed the performance of their asset base against their obligations and do not believe there are any concerns in adopting the going concern basis.
b. Reserves policy
Funds carried forward at 24 June 2023 are £23,088,461 (2022: £22,819,639) of which £1,122,900 (2022: £1,063,239) are restricted funds and £21,965,561 (2022: £21,756,400) 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 2023 these funds together with the Extraordinary Repair fund amounted to £1,122,900 (2022: £1,063,239). 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 NonEducational 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 2023 the Educational Foundation's reserves were £219,265 (2022: £145,117). The Non-Educational Charity reserves were £150,029 (2022: £207,742).
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.
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LADY ELIZABETH HASTINGS' ESTATE CHARITY
TRUSTEE'S REPORT (CONTINUED)
FOR THE YEAR ENDED 24 JUNE 2023
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.
Page 6
LADY ELIZABETH HASTINGS' ESTATE CHARITY
TRUSTEE'S REPORT (CONTINUED)
FOR THE YEAR ENDED 24 JUNE 2023
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. This is subject to the charity undergoing a retender process for the supply of audit services at the end of 2023.
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: 19 October 2023
Page 7
LADY ELIZABETH HASTINGS' ESTATE CHARITY
INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEE OF LADY ELIZABETH HASTINGS' ESTATE CHARITY
We have audited the financial statements of Lady Elizabeth Hastings' Estate Charity (the ‘charity’) for the year ended 24 June 2023, which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including 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 2023, 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 responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
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 other information comprises the information included in the Trustee's report, other than the financial statements and our auditor’s report thereon. The Trustee is responsible for the other information contained within the Trustee's report. 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.
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 course of 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.
Page 8
LADY ELIZABETH HASTINGS' ESTATE CHARITY
INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEE OF LADY ELIZABETH HASTINGS' ESTATE CHARITY (CONTINUED)
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters in relation to which 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 financial statements is inconsistent in any material respect with the Trustee's report; or
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sufficient accounting records have not been kept; or
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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 trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the 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 trustees either intends to liquidate the group or parent charity or to cease operations, or have no realistic alternative but to do so.
Auditor 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:
· the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
· we identified the laws and regulations applicable to the charity through discussions with management and directors, and from our knowledge and experience of this charity;
· we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the charity, including Charities Act 2011, GDPR, health and safety and landlord/tenancy reviews;
· we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and directors; and
· identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
Page 9
LADY ELIZABETH HASTINGS' ESTATE CHARITY
INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEE OF LADY ELIZABETH HASTINGS' ESTATE CHARITY (CONTINUED)
We assessed the susceptibility of the charity's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by;
· making enquiries of management and directors as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
· considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risks of fraud through management override controls, we:
· performed analytical procedures to identify any unusual or unexpected variances;
· tested journal entries to identify unusual transactions; and
· investigated the rationale behind significant or unusual transaction
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
· agreeing financial statement disclosures to underlying supporting documentation;
· reading the minutes of meetings of those charged with governance; and
· enquiring of management as to actual and potential litigation and claims.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the FRC's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of our report
This report is made solely to the charity’s trustees, 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 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.
BHP LLP
Statutory Auditor Rievaulx House 1 St Mary's Court Blossom Street York YO24 1AH
24 October 2023
BHP LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.
Page 10
LADY ELIZABETH HASTINGS' ESTATE CHARITY
STATEMENT OF FINANCIAL ACTIVITIES
FOR THE YEAR ENDED 24 JUNE 2023
| Note Income and endowments from: Investments 2 Other income 3 Total income and endowments Expenditure on: Raising funds 4 Charitable activities 5 Total expenditure Net income/(expenditure) before net gains/(losses) on investments Net gains/(losses) on investments Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward |
Restricted funds 2023 £ 637,042 107,500 744,542 220,849 482,084 702,933 41,609 18,052 59,661 1,063,239 59,661 1,122,900 |
Endowment funds 2023 £ - - - 1,212 - 1,212 (1,212) 210,373 209,161 21,756,400 209,161 21,965,561 |
Total funds 2023 £ 637,042 107,500 744,542 222,061 482,084 704,145 40,397 228,425 268,822 22,819,639 268,822 23,088,461 |
Total funds 2022 £ 665,326 - 665,326 173,012 466,577 639,589 25,737 (692,008) (666,271) 23,485,910 (666,271) 22,819,639 |
|---|---|---|---|---|
The Statement of Financial Activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The notes on pages 14 to 27 form part of these financial statements.
Page 11
LADY ELIZABETH HASTINGS' ESTATE CHARITY
BALANCE SHEET
AS AT 24 JUNE 2023
| Note Fixed assets Intangible assets 9 Investments 11 Investment property 10 Current assets Debtors 12 Cash at bank and in hand Creditors: amounts falling due within one year 13 Net current assets Total net assets Charity funds Endowment funds 14 Restricted funds 14 Total funds |
28,298 568,682 596,980 (103,720) |
2023 £ 5,655 11,946,094 10,643,452 22,595,201 493,260 23,088,461 21,965,561 1,122,900 23,088,461 |
27,554 549,569 577,123 (98,273) |
2022 £ 6,867 11,760,836 10,573,086 |
|---|---|---|---|---|
| 22,340,789 478,850 |
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| 22,819,639 | ||||
| 21,756,400 1,063,239 |
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| 22,819,639 |
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: 19 October 2023
The notes on pages 14 to 27 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 2023
| Note Cash flows from operating activities Net cash used in operating activities 16 Cash flows from investing activities Dividends, interests and rents from investments 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 |
2023 £ (698,230) 744,542 1,710,732 (1,737,931) 717,343 19,113 549,569 568,682 |
2022 £ (586,007) 665,326 5,307,651 (5,376,896) 596,081 10,074 539,495 549,569 |
|---|---|---|
The notes on pages 14 to 27 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 2023
1. Accounting policies
1.1 General information and basis of preparation of financial statements
Lady Elizabeth Hastings' Estate Charity is an unincorporated charity in England and Wales. The address of the principal office is given in the charity infomation on page 1 of these financial statements. The nature of the charity's operations and principal activities are on page 2 and 3.
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 £. The financial statements are prepared under the historical cost convenetion modified to include certain items at fair value.
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 they 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.
Investment income is earned through holding assets for investment purposes such as shares and property. It includes dividends, interest and rent. Where it is not practicable to identify investment management costs incurred within a scheme with reasonable accruacy the investment income is reported net of these costs. It is included when the amount can be measured reliably.
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.
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LADY ELIZABETH HASTINGS' ESTATE CHARITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 24 JUNE 2023
1. Accounting policies (continued)
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.
All expenditure is inclusive of irrecoverable VAT.
1.5 Foreign currencies
Foreign currency transactions are initially recognised by applying to the foreign currency amount the spot exchange rate between the functional currency and the foreign currency at the date of the transaction.
Monetary assets and liabilities denominated in a foreign currency at the balance sheet date are translated using the closing rate. Exchange gains and losses are recognised in the Statement of Financial Activities.
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.
Amortisation is provided on the following basis:
Land Entitlements - 7 years
Page 15
LADY ELIZABETH HASTINGS' ESTATE CHARITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 24 JUNE 2023
1. Accounting policies (continued)
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.
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 16
LADY ELIZABETH HASTINGS' ESTATE CHARITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 24 JUNE 2023
2. Investment income
| Income from UK investment properties Income from listed investments Bank interest receivable Total 2022 Other income Dilapidations settlement in respect of Old Star Inn |
Restricted funds 2023 £ 333,015 296,102 7,925 637,042 665,326 Restricted funds 2023 £ 107,500 |
Total funds 2023 £ 333,015 296,102 7,925 637,042 665,326 Total funds 2023 £ 107,500 |
Total funds 2022 £ 344,522 320,338 466 |
|---|---|---|---|
| 665,326 | |||
| Total funds 2022 £ - |
3. Other income
Page 17
LADY ELIZABETH HASTINGS' ESTATE CHARITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 24 JUNE 2023
4. 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 2022 |
Restricted funds 2023 £ 33,406 58,724 18,504 18,504 27,845 24,103 13,752 - 26,011 - 220,849 171,800 |
Endowment funds 2023 £ - - - - - - - - - 1,212 1,212 1,212 |
Total funds 2023 £ 33,406 58,724 18,504 18,504 27,845 24,103 13,752 - 26,011 1,212 222,061 173,012 |
Total funds 2022 £ 29,433 41,184 18,504 18,504 33,097 31,395 6,576 (32,469) 25,576 1,212 |
|---|---|---|---|---|
| 173,012 | ||||
5. Expenditure on charitable activities
| Grants (non-educational charity) (note 6) Grants (educational foundation) (note 6) Expenditure on governance (note 7) |
Restricted funds 2023 £ 265,134 195,781 460,915 21,169 482,084 |
Total funds 2023 £ 265,134 195,781 460,915 21,169 482,084 |
Total funds 2022 £ 192,600 255,184 |
|---|---|---|---|
| 447,784 18,793 |
|||
| 466,577 |
All grants and governance costs incurred in the prior year are restricted.
Page 18
LADY ELIZABETH HASTINGS' ESTATE CHARITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 24 JUNE 2023
6. Grants expenditure
| Individuals | Institutions | Institutions | 2023 | 2022 | |
|---|---|---|---|---|---|
| £ | £ | £ | £ | ||
| Grants(non-educational charity) | |||||
| Yearly payments(clause 13(1)(c,d,e)) | - | 11,430 | 11,430 | 10,425 | |
| Grants(clause 13(1)(a)) | - | 19,800 | 19,800 | 21,500 | |
| Grants(clause 13(1)(b)(i to iv) | 225,648 | 6,156 | 231,804 | 158,785 | |
| Grants (clause 13(b)(v)) | 1,000 | 1,100 | 2,100 | 1,890 | |
| 226,648 | 38,486 | 265,134 | 192,600 | ||
| Grants(educationalfoundation) | |||||
| Yearly payments(clause 11(1)(b,c,e)) | 1,100 | 12,100 | 13,200 | 12,000 | |
| Special benefits(clause 11(1)(d)) | - | 16,500 | 16,500 | 15,000 | |
| Scholarships andgrants(clause 11(1)(a)) | 57,000 | 107,445 | 164,445 | 226,227 | |
| School leavers bibles | 1,636 | - | 1,636 | 1,957 | |
| 59,736 | 136,045 | 195,781 | 255,184 | ||
| Total | 286,384 | 174,531 | 460,915 | 447,784 | |
| Total 2022 | 218,262 | 229,522 | 447,784 | ||
| Governance costs Audit fees (note 8) Accountancy fees (note 8) Office costs Website and domain charges Costs of trustee's meetings and rent days Total 2022 |
Restricted funds 2023 £ 9,120 6,120 2,895 108 2,926 21,169 18,793 |
Total funds 2023 £ 9,120 6,120 2,895 108 2,926 21,169 18,793 |
Total funds 2022 £ 7,800 5,640 2,961 108 2,284 18,793 |
7. Governance costs
Page 19
LADY ELIZABETH HASTINGS' ESTATE CHARITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 24 JUNE 2023
8. Net income/(expenditure)
This is stated after charging:
| 2023 | 2022 | |
|---|---|---|
| £ | £ | |
| Auditor's remuneration - audit | 9,120 | 7,800 |
| Auditor's remuneration - accountancy | 6,120 | 5,640 |
| 15,240 | 13,440 |
During the year, no Trustee received any remuneration or other benefits (2022 - £nil). During the year, no Trustee received any reimbursement of expenses (2022 - £nil).
9. Intangible assets
| Cost At 25 June 2022 At 24 June 2023 Amortisation At 25 June 2022 Charge for the year At 24 June 2023 Net book value At 24 June 2023 At 24 June 2022 |
Land entitlements £ 8,483 |
|---|---|
| 8,483 | |
| 1,616 1,212 |
|
| 2,828 | |
| 5,655 | |
| 6,867 |
Page 20
LADY ELIZABETH HASTINGS' ESTATE CHARITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 24 JUNE 2023
10. Investment property
| Valuation At 25 June 2022 Additions At 24 June 2023 |
Freehold investment property £ 10,573,086 70,366 |
|---|---|
| 10,643,452 |
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 £3,789,100 (2022: £3,718,734).
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 |
2023 £ 1,731,600 1,091,124 1,220,000 4,042,724 |
2022 £ 1,731,600 1,091,124 1,220,000 4,042,724 |
|---|---|---|
11. Fixed asset investments
| Cost or valuation At 25 June 2022 Additions Disposals Revaluations At 24 June 2023 |
Listed investments £ 11,343,230 1,664,192 (1,651,525) 228,425 11,584,322 |
Cash held in investment portfolio £ 413,476 3,373 (59,207) - 357,642 |
Other fixed asset investments £ 4,130 - - - 4,130 |
Total £ 11,760,836 1,667,565 (1,710,732) 228,425 |
|---|---|---|---|---|
| 11,946,094 |
Page 21
LADY ELIZABETH HASTINGS' ESTATE CHARITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 24 JUNE 2023
11. Fixed asset investments (continued)
The historic cost of listed investments as at the balance sheet date is £10,569,624 (2022: £9,915,540), cash held in the investment portfolio is £357,642 (2022: £413,476) and other investments are £4,130 (2022: £4,130).
The only non-UK investment assets are non-UK equities with a market value at the Balance Sheet date of £3,893,521 (2022: £3,767,223).
There are no listed investments that account for more than 5% of the total portfolio value at 24 June 2023.
12. Debtors
| Due within one year Trade debtors Other debtors Prepayments and accrued income |
2023 £ 815 4,501 22,982 28,298 |
2022 £ - 3,630 23,924 |
|---|---|---|
| 27,554 |
13. Creditors: Amounts falling due within one year
| Trade creditors Rents in advance Accruals and deferred income Grants accrued - institutional |
2023 £ 30,028 2,690 53,780 17,222 103,720 |
2022 £ 29,125 8,657 45,185 15,306 |
|---|---|---|
| 98,273 |
Page 22
LADY ELIZABETH HASTINGS' ESTATE CHARITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 24 JUNE 2023
14. Statement of funds
| Statement of funds | |||||
|---|---|---|---|---|---|
| Statement of funds - current year Balance at 25 June 2022 £ Endowment funds Endowment Fund 21,756,400 Restricted funds Estate Charity 519,934 Educational Foundation 145,117 Non-Educational Charity 207,742 Extraordinary Repair Fund 190,446 1,063,239 Total of funds 22,819,639 |
Income £ - 744,542 - - - 744,542 744,542 |
Expenditure £ (1,212) (203,064) (215,317) (284,552) - (702,933) (704,145) |
Transfers in/out £ - (576,304) 289,465 226,839 60,000 - - |
Gains/ (Losses) £ 210,373 - - - 18,052 18,052 228,425 |
Balance at 24 June 2023 £ 21,965,561 |
| Endowment funds Endowment Fund Restricted funds Estate Charity Educational Foundation Non-Educational Charity Extraordinary Repair Fund Total of funds |
|||||
| 485,108 219,265 150,029 268,498 |
|||||
| 1,122,900 | |||||
| 23,088,461 |
Page 23
LADY ELIZABETH HASTINGS' ESTATE CHARITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 24 JUNE 2023
14. Statement of funds (continued)
| Statement of funds - prior year Balance at 25 June 2021 £ Endowment funds Endowment Fund 22,423,014 Restricted funds Estate Charity 408,315 Educational Foundation 243,263 Non-Educational Charity 194,266 Extraordinary Repair Fund 217,052 1,062,896 Total of funds 23,485,910 |
Income £ - 665,326 - - - 665,326 665,326 |
Expenditure £ (1,212) (151,426) (274,788) (212,163) - (638,377) (639,589) |
Transfers in/out £ - (402,281) 176,642 225,639 - - - |
Gains/ (Losses) £ (665,402) - - - (26,606) (26,606) (692,008) |
Balance at 24 June 2022 £ 21,756,400 |
|---|---|---|---|---|---|
| Endowment funds Endowment Fund Restricted funds Estate Charity Educational Foundation Non-Educational Charity Extraordinary Repair Fund Total of funds |
|||||
| 519,934 145,117 207,742 190,446 |
|||||
| 1,063,239 | |||||
| 22,819,639 |
Page 24
LADY ELIZABETH HASTINGS' ESTATE CHARITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 24 JUNE 2023
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. A transfer of £60,000 has been made into this fund which represents a specific delapidations settlement, where £60,000 will be needed to fund repairs in the next financial year.
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 |
Restricted funds 2023 £ - 328,873 - 897,747 (103,720) 1,122,900 |
Endowment funds 2023 £ 5,655 11,617,221 10,643,452 (300,767) - 21,965,561 |
Total funds 2023 £ 5,655 11,946,094 10,643,452 596,980 (103,720) 23,088,461 |
|---|---|---|---|
Page 25
LADY ELIZABETH HASTINGS' ESTATE CHARITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 24 JUNE 2023
15. Analysis of net assets between funds (continued)
Analysis of net assets between funds - prior year
| Intangible fixed assets Fixed asset investments Investment property Current assets Creditors due within one year Total |
Restricted funds 2022 £ - 310,821 - 850,691 (98,273) 1,063,239 |
Endowment funds 2022 £ 6,867 11,450,015 10,573,086 (273,568) - 21,756,400 |
Total funds 2022 £ 6,867 11,760,836 10,573,086 577,123 (98,273) 22,819,639 |
|---|---|---|---|
16. Reconciliation of net movement in funds to net cash flow from operating activities
| Net income/expenditure for the year (as per Statement of Financial Activities) Adjustments for: Amortisation charges (Gains)/losses on investments Dividends, interests and rents from investments (Increase)/decrease in debtors Increase in creditors Net cash used in operating activities |
2023 £ 268,822 1,212 (228,425) (744,542) (744) 5,447 (698,230) |
2022 £ (666,271) |
|---|---|---|
| 1,212 692,008 (665,326) 17,001 35,369 |
||
| (586,007) |
17. Analysis of cash and cash equivalents
| Cash in hand Total cash and cash equivalents |
2023 £ 568,682 568,682 |
2022 £ 549,569 |
|---|---|---|
| 549,569 |
Page 26
LADY ELIZABETH HASTINGS' ESTATE CHARITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 24 JUNE 2023
18. Analysis of changes in net debt
| Cash at bank and in hand | At 25 June 2022 £ 549,569 549,569 |
Cash flows £ 19,113 19,113 |
At 24 June 2023 £ 568,682 |
|---|---|---|---|
| 568,682 |
19. Related party transactions
Mr CMP Granger is a Director of the charity and is Chief Executive of Carter Jonas being based in London. He is a Director 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 in his role as a Director.
£127,935 was paid to Carter Jonas during the year (2022: £90,604) in respect of clerks, estate management and planning fees, of which £23,248 (2022: £8,045) are planning fees which have been capitalised. At the year end, fees of £3,084 were due to Carter Jonas (2022: £23,262).
In February 2022, Revd Canon Chris Wilton became the Vicar of All Saints Church, Ledsham and the parish received grants totalling £23,015. (2022: £11,680).
Mr CMP Granger is a Trustee of The Wheler Foundation. During the year, the charity made a grant of £nil (2022: £50,000) to the Foundation.
Page 27