**Charity Registration No. 247190**
# **ST PETROCK AND HEAVITREE PARISH LANDS CHARITY ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021**
## **ST PETROCK AND HEAVITREE PARISH LANDS CHARITY**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
|**Current Trustees**|Mr M Henderson (Chairman)||
|---|---|---|
||Ms Charlotte Lambeth ( Vice||
||Chairman)||
||Mr G Murrin||
||Ms G Harflett||
||Rev'd S Swarbrick||
||Mrs J Grainger||
||Ms A Foreman|(Appointed 8 November 2021)|
||Mr P Keeling|(Appointed 21 July 2021)|
||Ms S Johnson|(Appointed 21 July 2021)|
||Ms A Wiseman|(Appointed 18 January 2021)|
||Mrs L Woodward|(Appointed 1 April 2022)|
|**Clerk to the Trustees**|L Woodward|(Resigned 31 March 2022)|
||A Hemmings|(Appointed 1 April 2022)|
||Simpkins Edwards LLP||
||Michael House||
||Castle Street||
||Exeter||
||EX4 3LQ||
|**Charity number**|247190||
|**Auditor**|Bush & Co Limited||
||2 Barnfield Crescent||
||Exeter||
||EX1 1QT||
|**Bankers**|Natwest||
||Exeter Bank Branch||
||59 High Street||
||Exeter||
||Devon||
||EX4 3DL||
|**Investment advisors**|Investec||
||16 Dix's Field||
||Exeter||
||EX1 1QA||
## **ST PETROCK AND HEAVITREE PARISH LANDS CHARITY**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees' report|1 - 4|
|Statement of trustees' responsibilities|5|
|Independent auditor's report|6 - 7|
|Statement of financial activities|8|
|Balance sheet|9|
|Statement of cash flows|10|
|Notes to the financial statements|11 - 24|
## **ST PETROCK AND HEAVITREE PARISH LANDS CHARITY**
## **TRUSTEES' REPORT** _**FOR THE YEAR ENDED 30 JUNE 2021**_
The trustees present their annual report and financial statements for the year ended 30 June 2021.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements 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 (FRS 102)” (as amended for accounting periods commencing from 1 January 2016)
## **Objectives and activities**
The main objective of the Charity is to provide almshouse accommodation for poor people who are inhabitants of the City of Exeter. The Trustees must ensure that adequate funds are available to maintain and improve both the almshouses and the charity's investment properties.
Other objectives of the Charity, set out in their order of priority, are to:
- Provide financial assistance towards the cost of repairs to the Church of St Petrock
- Provide financial assistance towards the cost of maintaining religious services in the Church
- Pay a stipend of £600 per year to the Minister responsible for services in the Church
- Apply funds for the benefit of the residents of the almshouses
- Provide financial assistance towards the cost of repairs to the Parish Church of St Michael and All Angels, Heavitree
- Augment the income of the Serle Charity
The income of the Serle Charity may be applied in relieving conditions of need or hardship generally or individually for persons living in the City of Exeter. ln exceptional circumstances, the Trustees may apply this income to individuals outside the City of Exeter.
The Trustees have reviewed the Charity Commission's guidance on the requirement to report on public benefit. The Board is satisfied that the work of the charity, as described above, accords with its stated objects and provides tangible public benefit to a wide section and to those who live within the charity's area of benefit; the criteria used to assess those who may benefit are not unreasonably restrictive.
The Scheme authorises payment of grants as indicated in the objectives. It is the Trustees' policy to consider applications for assistance towards repairs to the Churches of St Petrock and St Michael and All Angels, Heavitree on the basis of the merits of the application and the funds available in the context of the total funds required. At present no religious services are held in St Petrock's Church and there is no minister responsible for holding such services. Thus payments of grants are not being made in respect of these activities. The policy regarding benefits for residents has been operated for many years and is to give each resident a small monetary gift at Christmas.
## **Achievements and performance**
The principal activities are the management of the charity's properties and investments so as to safeguard the future of the charity. The occupancy of both the investment properties and almshouses continues to be satisfactory.
During the year under review, investment income levels decreased by £9,837 to £ 2 38,976. At the year end the total portfolio valuation was £ 1, 260,741. T he Trustees are satisfied with the investment portfolio manager's report .
- 1 -
## **ST PETROCK AND HEAVITREE PARISH LANDS CHARITY**
## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 30 JUNE 2021**_
## **Financial review**
The statement of financial activities shows that in the period to 30 June 20 2 1 the charity received incoming resources of £ 5 87,652. The resources expended were £113,072 on the costs of raising funds, £299,453 on charitable activities and £ 1 2,456 on other costs.
The incoming resources recorded in the unrestricted funds column of the SOFA represent funds which can be used in the furtherance of any of the charity's objectives.
The incoming resources shown in the restricted funds column of the SOFA can only be used for the purposes specified by the Scheme for each of the four individual restricted funds. ln some cases the Scheme also specifies that a minimum annual transfer be made to the fund. All of these Scheme requirements have been complied with during the year under review.
Net current assets amounted to £161,466.
The balance sheet shows the sound financial stewardship that the charity has shown to date.
The restricted funds may only be used for the purposes specified by the Scheme. They are essential reserves which enable the charity to pay for expenditure which occurs at irregular or infrequent intervals. The year end balances on the restricted funds were:
|•|Property Extraordinary Repair Fund:|£344,065|
|---|---|---|
|•|Church of St Petrock ERIF:|£77,797|
|•|Cyclical Maintenance Fund:|£338,409|
|•|Reserve Fund:|£99,897|
The charity's policy is to maintain sufficient general funds to enable the trustees to maintain the charity's day to day activities, whilst being in a position to react to any unexpected non-repair expenditure. The trustees consider it appropriate to hold unrestricted funds equal to at least six months operations (£1 84,452 based on the 20 2 1 financial statements). Over the last few years the charity has also been managing unrestricted funds to enable it to fund the redevelopment of Elizabeth Gardens, Whipton Barton Road.
At 30 June 20 2 1, the free reserves of the charity totalled £562,039 , as against a reserves policy requirement (see above) of £ 184,452 . The charity is taking a prudent approach until it has substantially reduced the long-term loan that was taken out to fund the development of Elizabeth Gardens. Beyond that the trustees have expressed an aim of establishing a ‘Way Forward’ committee to consider utilisation of the surplus should it be maintained in the future. This aspiration has been curtailed to some extent by the pandemic which has impacted mainly on the investment property rental income.
## **Risk Management**
The Trustees have reviewed the major risks to which the charity is exposed. They are satisfied that the Charity's procedures adequately address the risk and mitigate the potential effects.
Clearly, during the current year the Coronavirus pandemic has had an impact. This has mainly been to threaten the rental income of the investment properties due to the impact on some of the tenants. The charity has been able to maintain cash flow at reasonable levels despite this issue. A Bounce Back Loan of £50,000 was secured to ensure that the activities of the charity could be protected in the event that this situation worsened.
The Trustees' investment policy aims to safeguard the capital value of the Trust's investments whilst also generating income. ln this way the Trustees are able to keep charges made to almshouse residents to levels below those charged by non-charitable landlords. The contributions made by the almshouse residents are intended to cover the basic costs of maintaining and servicing the almshouses. Thus the investment portfolio managers have been instructed to invest on a long term basis with a view to capital appreciation.
- 2 -
## **ST PETROCK AND HEAVITREE PARISH LANDS CHARITY**
## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 30 JUNE 2021**_
## **Structure, governance and management**
The Charity is a Trust established by a scheme dated 7 April 1994 ("The Scheme") which the Charity Commissioners agreed be deemed to have commenced on 25 June 1993. The Charity is a Registered Charity (number 247190). The Scheme and any subsequent amending Schemes are the governing documents of the Charity.
The trustees who served during the year and up to the date of signature of the financial statements were: Mr M Henderson (Chairman)
Ms Charlotte Lambeth ( Vice Chairman) Mrs B Pillidge (Resigned 19 July 2021) Mr G Murrin Ms G Harflett Mrs G Lucking (Resigned 11 July 2020) Rev'd S Swarbrick Mrs S Mutton (Resigned 19 October 2020) Mrs J Grainger Ms A Foreman (Appointed 8 November 2021) Mr P Keeling (Appointed 21 July 2021) Ms S Johnson (Appointed 21 July 2021) Ms A Wiseman (Appointed 18 January 2021) Mrs L Woodward (Appointed 1 April 2022)
The body of Trustees, when complete, comprises eleven co-opted Trustees, two Trustees nominated by the PCC of Central Exeter and one Trustee nominated by the PCC of St Michael & All Angels, Heavitree. The first eleven co-opted Trustees can hold office for life. Future co-opted Trustees are appointed by resolution of the Trustees and hold office for five years. Nominated Trustees are also appointed by resolution of the Trustees and hold office for four years.
The Trustees meet on a regular quarterly basis, but special meetings can be called if necessary. Since the start of the pandemic all meetings have been held virtually.
Sub-committees of Trustees have been set up to deal with financial matters, building maintenance and admission of new residents. These sub-committees have been delegated specific responsibilities but always report to meetings of the full Board of Trustees.
The Clerk is responsible for the day to day running of the Charity and deals with such matters as collection of almshouses contributions and investment property rents, arranging essential works and payments of bills, producing management accounts, etc. However, their authority to incur expenditure is strictly limited to £1,000, with requirements to seek estimates and further authorisation for higher levels of expenditure.
Trustees are either co-opted or nominated. ln either case they are invited to attend a meeting to meet the existing Trustees and to discuss their appointment. The following documents are provided to assist in their new role as Trustees:
1. The Almshouse Association publication called Standards of Almshouse Management.
2. Charity Commission publications providing information with respect to Trustees responsibilities
3. A copy of the last financial statements.
4. A copy of the Charity's scheme.
5. A copy of the last set of minutes.
- 3 -
## **ST PETROCK AND HEAVITREE PARISH LANDS CHARITY**
## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 30 JUNE 2021**_
The trustees' r eport was approved by the Board of Trustees.
Mr M Henderson (Chairman) **Trustee**
27 May 2022
- 4 -
## **ST PETROCK AND HEAVITREE PARISH LANDS CHARITY**
## **STATEMENT OF TRUSTEES' RESPONSIBILITIES**
## _**FOR THE YEAR ENDED 30 JUNE 2021**_
The trustees are responsible for preparing the Trustees' 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 and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that year.
In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping sufficient accounting records that 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.
- 5 -
## **ST PETROCK AND HEAVITREE PARISH LANDS CHARITY**
## **INDEPENDENT AUDITOR'S REPORT**
## **TO THE TRUSTEES OF ST PETROCK AND HEAVITREE PARISH LANDS CHARITY**
## **Opinion**
We have audited the financial statements of St Petrock and Heavitree Parish Lands Charity (the ‘charity’) for the year ended 30 June 2021 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the 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 FRS 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:
- give a true and fair view of the state of the charity’s affairs as at 30 June 2021 and of its incoming resources and application of resources, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Charities Act 2011.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the _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 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 annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and 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.
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## **ST PETROCK AND HEAVITREE PARISH LANDS CHARITY**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED)**
## **TO THE TRUSTEES OF ST PETROCK AND HEAVITREE PARISH LANDS CHARITY**
## **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 require us to report to you if, in our opinion:
- the information given in the financial statements is inconsistent in any material respect with the trustees' r eport; or
- sufficient accounting records have not been kept; or
- the financial statements are not in agreement with the accounting records; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of trustees**
As explained more fully in the s tatement of trustees' r esponsibilities, 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 trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to cease operations, or have no realistic alternative but to do so.
## **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 the Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue 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.
A further description of our responsibilities for the audit of the financial statements is located on the FInancial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities.
## **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 auditors' 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.
Bush & Co Limited, Statutory Auditors 2 Barnfield Crescent Exeter EX1 1QT
27 May 2022
- 7 -
## **ST PETROCK AND HEAVITREE PARISH LANDS CHARITY**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 30 JUNE 2021**_
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2021**
**2021**
**Notes**
**£**
**£**
**Income from:**
Charitable activities
**3**
339,736
-
Other trading activities
**4**
8,940
-
Investments
**5**
233,685
5,291
**Total income**
582,361
5,291
**Expenditure on:**
Raising funds
**6**
102,669
10,403
Charitable activities
**7**
253,778
45,675
Other costs
**9**
12,456
-
**Total resources expended**
368,903
56,078
Net gains/(losses) on
investments
**12**
91,158
75,004
**Net incoming/(outgoing)**
**resources before transfers**
304,616
24,217
Gross transfers
between funds
(132,902)
132,902
**Net movement in funds**
171,714
157,119
Fund balances at 1 July 2020
6,014,823
703,049
**Fund balances at 30 June**
**2021**
6,186,537
860,168|**Total Unrestricted**
**Restricted**
**funds**
**funds**
**2021**
**2020**
**2020**
**£**
**£**
**£**
339,736
326,868
-
8,940
8,452
-
238,976
237,988
10,825
587,652
573,308
10,825
113,072
69,371
287,916
299,453
239,356
83,824
12,456
10,701
-
424,981
319,428
371,740
166,162
(23,013)
(19,204)
328,833
230,867
(380,119)
-
(205,408)
205,408
328,833
25,459
(174,711)
6,717,872
5,989,364
877,760
7,046,705
6,014,823
703,049|**Total**
**2020**
**£**
326,868
8,452
248,813
584,133
357,287
323,180
10,701
691,168
(42,217)
(149,252)
-
(149,252)
6,867,124
6,717,872|
|---|---|---|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
- 8 -
## **ST PETROCK AND HEAVITREE PARISH LANDS CHARITY**
## **BALANCE SHEET**
## _**AS AT 30 JUNE 2021**_
|**Notes**
**Fixed assets**
Tangible assets
**13**
Investment properties
**14**
Investments
**15**
**Current assets**
Debtors
**16**
Cash at bank and in hand
**Creditors: amounts falling due within**
**one year**
**18**
Net current assets
**Total assets less current liabilities**
**Creditors: amounts falling due after**
**more than one year**
**19**
**Net assets**
**Income funds**
Restricted funds
**21**
Unrestricted funds|**2021**
**£**
**£**
3,383,989
2,750,297
1,260,741
7,395,027
67,432
234,977
302,409
(140,943)
161,466
7,556,493
(509,788)
7,046,705
860,168
6,186,537
7,046,705|**2020**
**£**
**£**
3,400,156
2,750,298
1,100,268
7,250,722
102,138
117,610
219,748
(186,268)
33,480
7,284,202
(566,330)
6,717,872
703,049
6,014,823
6,717,872|
|---|---|---|
The financial statements were approved by the Trustees on 27 May 2022
Mr M Henderson (Chairman) **Trustee**
Ms Charlotte Lambeth ( Vice Chairman) **Trustee**
- 9 -
## **ST PETROCK AND HEAVITREE PARISH LANDS CHARITY**
## **STATEMENT OF CASH FLOWS** _**FOR THE YEAR ENDED 30 JUNE 2021**_
|**2021**
**Notes**
**£**
**Cash flows from operating activities**
Cash absorbed by operations
**24**
**Investing activities**
Purchase of tangible fixed assets
-
Purchase of investments
(395,597)
Proceeds on disposal of investments
401,286
Investment income received
238,976
**Net cash generated from investing**
**activities**
**Financing activities**
Repayment of borrowings
-
Repayment of bank loans
(45,343)
**Net cash (used in)/generated from**
**financing activities**
**Net increase/(decrease) in cash and cash**
**equivalents**
Cash and cash equivalents at beginning of year
**Cash and cash equivalents at end of year**|**2020**
**£**
**£**
**£**
(81,955)
(358,750)
(42,698)
(336,692)
419,208
248,813
244,665
288,631
50,000
(43,729)
(45,343)
6,271
117,367
(63,848)
117,610
181,458
234,977
117,610|
|---|---|
- 10 -
**ST PETROCK AND HEAVITREE PARISH LANDS CHARITY**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 30 JUNE 2021**_
## **1 Accounting policies**
## **Charity information**
St Petrock and Heavitree Parish Lands Charity is an unincorporated charity (charity number 247190) governed by trust deed. It's principal place of business is Michael House, Castle Street, Exeter EX4 3LQ.
## **1.1 Accounting convention**
The financial statements have been prepared in accordance 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 (FRS 102)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling , which is the functional currency of the charity . Monetary a mounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
## **1.2 Going concern**
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
## **1.3 Charitable funds**
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
The Scheme gives details of four restricted funds as follows:
## **Property Extraordinary Repair Fund**
The establishment and operation of this fund is required by and specified in the Scheme.
The fund represents amounts set aside to provide for the extraordinary repair, improvement or rebuilding of the buildings, other than the almshouses, owned by the charity.
An annual transfer is made to the fund, from the general income and expenditure account, of not less than 15% of the gross rents of the properties belonging to the Charity and known as 44 to 53 Queen Street, Exeter and 53/54 Richmond Road, Exeter. ln addition any income attributable to the fund is retained as part of the fund balance. In th e prior year, the trustees transferred an extra £80,000 to the Property ERF in view of the substantial expenditure on the Queen Street repair work.
## **Church of St Petrock Extraordinary Repair and Improvement Fund**
The establishment and operation of this fund is required by and specified in the Scheme.
The fund represents amounts set aside to provide for the extraordinary repair, improvement or rebuilding of the Church of St Petrock.
An annual transfer is made to the fund, from the general income and expenditure account, of £150 or such other sum as is deemed sufficient for the purposes of the fund. ln addition any income attributable to the fund is retained as part of the fund balance.
- 11 -
**ST PETROCK AND HEAVITREE PARISH LANDS CHARITY**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 JUNE 2021**_
## **1 Accounting policies**
## **(Continued)**
## **Cyclical Maintenance Fund**
The establishment and operation of this fund is authorised by the Scheme. It is treated as a restricted fund as it was established by funds identified within the predecessor charities.
The fund represents amounts set aside to provide for those items of ordinary maintenance and repair, of the almshouses belonging to the Charity, which recur at infrequent intervals.
An annual transfer is made to the fund, from the general income and expenditure account, of such a sum as is deemed sufficient for the purposes of the fund. ln addition any income attributable to the fund is retained as part of the fund balance.
## **Reserve Fund**
The establishment and operation of this fund is required by and specified in the Scheme.
The fund represents amounts set as i de to provide for the extraordinary repair, improvement or rebuilding of the Almshouses of the Charity.
Following agreement with the Charity Commission the trustees now have the power to transfer surplus balances from the above funds to the general fund.
An annual transfer is made to the fund, from the general income and expenditure account, of such a sum as is deemed sufficient for the purposes of the fund. ln addition any income attributable to the fund is retained as part of the fund balance.
The trustees consider that the following minimum balances need to be maintained in order to meet the trustees responsibilities with respect to the maintenance of the almshouse and St Petrock's Church:
Property Extraordinary repair fund: £200,000 Church at St Petrock ERIF: £50,000 Reserve fund: £65,000 Cyclical maintenance fund: £73,000
## **1.4 Incoming resources**
Almshouse contributions and investment property rents are recognised in the period in which they accrue.
Income from listed investments is accounted for when the net income is receivable.
Interest receivable is recognised in the period to which it relates.
All other income is recognised upon receipt.
Capital grants are deferred and the income recognised in line with the depreciation policy of the asset to which they relate.
Deferred income relates to capital grants that are deferred and recognised in line with the income policy.
- 12 -
## **ST PETROCK AND HEAVITREE PARISH LANDS CHARITY**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 JUNE 2021**_
## **1 Accounting policies**
## **(Continued)**
## **1.5 Resources expended**
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.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
The Scheme requires that the income of the charity is applied in the following ways and in the following order of priority:
- ln meeting the cost of maintaining the property of the Charity and all other charges and outgoings payable in respect thereof and all proper costs, charges and expenses of and incidental to the administration and management of the charity
- In maintaining the Property Extraordinary Repair Fund
- In or towards the cost of repairs to the fabric of the Church of St Petrock
- In maintaining the Church of St Petrock Extraordinary Repair and Improvement Fund
- In or towards the cost of maintaining religious services in the Church of St Petrock
- In paying a stipend of £600 to the officiating minister
- In maintaining the Cyclical Maintenance Fund and the Reserve Fund
- For the benefit of the residents in the charity's almshouses
- Subject to the foregoing the yearly income is applied in either or both of the following ways: i) In or towards the cost of repairs to the fabric of the Parish Church of St Michael and All Angels, Heavitree
ii) In augmentation of the income of the Serle Charity
All such expenditure is recognised in the statement of financial activities as soon as it is incurred and is analysed under the following headings:
Raising funds Charitable activities Other costs
Costs of raising funds are sub-divided into expenditure on maintenance and other costs of the investment properties and investment portfolio management fees.
Charitable activities is sub-divided into grants payable and almshouse expenses. Grants comprise payments made to, or for the benefit of, persons or entities authorised under the Scheme. Almshouse expenses comprise maintenance and other costs incurred in respect of the almshouses.
- 13 -
**ST PETROCK AND HEAVITREE PARISH LANDS CHARITY**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 JUNE 2021**_
## **1 Accounting policies**
## **(Continued)**
## **1.6 Tangible fixed assets**
Tangible fixed assets are initially and then subsequently measured at cost , net of depreciation .
All assets costing more than £500 are capitalised.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings Buildings at straight line over 50 years Leasehold land and buildings Buildings at straight line over 50 years Fixtures and fittings straight line over 5 years Solar panels straight line over 20 years
Depreciation is only provided on tangible fixed assets with an expected useful life of less than 50 years.
Depreciation of freehold and leasehold buildings is calculated as 2% per annum on the difference between the cost or valuation less the expected residual value in 50 years time. As the charity operates a continuing programme of refurbishment and maintenance of its buildings, the expected residual value is not expected to be less than cost and hence any depreciation charge will be immaterial.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.
## **Housing Properties**
The housing properties consist of:
- 48 almshouses together with the landlords' fixtures, fittings and equipment installed therein which are stated at cost.
- The Whipton Barton Road redevelopment (Elizabeth Gardens) which consist s of 22 almshouses.
The initial costs of the original almshouses to the Charity were the values at which the properties had been included on the 24 June 1993 balance sheets of the five Charities which were amalgamated to form the St Petrock and Heavitree Parish Lands Charity effectively on 25 June 1993. At that date the records of the Charities no longer included any information relating to the apportionment of the costs of the almshouses between land and buildings. Improvements to the properties carried out since that date are stated at cost .
The cost of developing the new almshouses consists of the cost of original acquisition of the property together with the costs of redevelopment .
Expenditure on replacement fixtures, fittings and equipment in the original 48 almshouses is regarded as part of the routine maintenance of the properties and as such is not capitalised. The charity operates a continuing programme of refurbishment and maintenance and consequently the lives of the properties and their residual values are such that any depreciation charge would be immaterial. Initial expenditure on fixtures, fittings and equipment intended to fit out the completed Elizabeth Gardens development has been capitalised and will be depreciated over five years.
The finance committee carry out an annual review of the almshouses for any indication of impairment.
- 14 -
## **ST PETROCK AND HEAVITREE PARISH LANDS CHARITY**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 JUNE 2021**_
## **1 Accounting policies**
## **(Continued)**
## **1.7 Investment properties**
The investment properties consist of freehold commercial properties situated in Queen Street, Exeter. The properties are included in the financial statements at fair (market) value. The properties were externally valued as a t 24 June 2016 on the basis of the capitalised value of the annual income and the revaluation has been incorporated into the 2017 financial statements. The Board of Trustees have considered the current valuation of the investment properties at 30 June 202 1 , and do not consider that there have been any material changes in their valuation since the revaluation.
## **1.8 Fixed asset investments**
Fixed asset investments are a form of basic financial instrument and are included in the financial statements at fair value using the quoted market price. All changes in value, whether arising upon disposal or upon revaluation, are reported in the statement of financial activities for the year in which the change occurs.
## **1.9 Financial instruments**
The charity only has financial assets and 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.
## _**Basic financial assets**_
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
## _**Basic financial liabilities**_
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
## **2 Critical accounting estimates and judgements**
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
## **3 Charitable activities**
||**Unrestricted**|
**Unrestricted**|
|---|---|---|
||**funds**|
**funds**|
||**2021**|
**2020**|
||**£**|
**£**|
|Contributions from Almshouse residents|339,736|
326,868|
- 15 -
## **ST PETROCK AND HEAVITREE PARISH LANDS CHARITY**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 JUNE 2021**_
## **4 Other trading activities**
|Solar panel income
**Investments**
**Unrestricted**
**Restricted**
**funds**
**funds**
**2021**
**2021**
**£**
**£**
Rental income
225,718
-
Interest and dividends
7,967
5,291
233,685
5,291
**Raising funds**
**Unrestricted**
**Restricted**
**funds**
**funds**
**2021**
**2021**
**£**
**£**
Service costs
13,845
-
Insurance
12,134
-
Legal and professional
fees
-
-
Clerk's fees
18,181
-
Depreciation and
impairment
3,975
-
48,135
-|**Unrestricted**Unrestricted
**funds**
funds
**2021**
2020
**£**
£
8,940
8,452
**Total**Unrestricted
Restricted
Total
funds
funds
**2021**
2020
2020
2020
**£**
£
£
£
225,718
224,680
-
224,680
13,258
13,308
10,825
24,133
238,976
237,988
10,825
248,813
**Total**Unrestricted
Restricted
Total
funds
funds
**2021**
2020
2020
2020
**£**
£
£
£
13,845
9,949
-
9,949
12,134
3,654
-
3,654
-
20,814
-
20,814
18,181
11,960
-
11,960
3,975
2,140
-
2,140
48,135
48,517
-
48,517|
|---|---|
## **5 Investments**
## **6 Raising funds**
- 16 -
## **ST PETROCK AND HEAVITREE PARISH LANDS CHARITY**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 JUNE 2021**_
## **6 Raising funds**
|**Raising funds**
Property repairs
37,255
6,180
Queen Street
management fee
12,000
-
49,255
6,180
Investment management
fees
5,279
4,223
102,669
10,403
**Charitable activities**
**Unrestricted**
**funds**
**Restricted**
**funds**
**2021**
**2021**
**£**
**£**
Depreciation and
impairment
12,192
-
Service costs
106,197
-
Insurance
8,191
-
Property repairs
45,182
45,675
Legal and professional
891
-
Clerk's fees
49,998
-
Other expenses
3,509
-
Loan interest
19,218
-
245,378
45,675
Grant funding of activities
(see note 8)
8,400
-
253,778
45,675
**Analysis by fund**
Unrestricted funds
253,778
-
Restricted funds
-
45,675
253,778
45,675|**(Continued)**
43,435
3,749
284,960
288,709
12,000
12,000
-
12,000
55,435
15,749
284,960
300,709
9,502
5,105
2,956
8,061
113,072
69,371
287,916
357,287
**Total**
**2021**
**Unrestricted**
**funds**
**Restricted**
**funds**
**Total**
**2020**
**2020**
**2020**
**£**
**£**
**£**
**£**
12,192
12,192
-
12,192
106,197
95,835
-
95,835
8,191
5,821
-
5,821
90,857
39,705
83,824
123,529
891
6,851
-
6,851
49,998
32,893
-
32,893
3,509
2,743
-
2,743
19,218
20,832
-
20,832
291,053
216,872
83,824
300,696
8,400
22,484
-
22,484
299,453
239,356
83,824
323,180
253,778
239,356
-
239,356
45,675
-
83,824
83,824
299,453
239,356
83,824
323,180|
|---|---|
|||
## **7 Charitable activities**
- 17 -
## **ST PETROCK AND HEAVITREE PARISH LANDS CHARITY**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 JUNE 2021**_
## **8 Grants payable**
||**Unrestricted**|
Unrestricted|
|---|---|---|
||**funds**|
funds|
||**2021**|
2020|
||**£**|
£|
|Grants to institutions:|||
|St Petrock's Centre|5,000|
-|
|St Michael & All Angels (Heavitree)|-|
20,000|
|Grants payable to residents|3,400|
2,484|
||8,400|
22,484|
|**Other costs**|||
||**Unrestricted**|Unrestricted|
||**funds**|funds|
||**2021**|2020|
||**£**||
|Clerk's fees|7,575|4,984|
|Audit|3,900|4,824|
|Legal, professional and bank fees|981|893|
||12,456|10,701|
## **9 Other costs**
## **10 Trustees**
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.
The key management personnel of the charity comprise the trustees and the Clerk to the Trustees. The Clerk to the Trustees is a partner of Simpkins Edwards LLP, which provides bookkeeping and administrative services to the charity.
The fees of the Clerk to the Trustees during the year were £75,754 (2020: £ 4 9,837).
## **11 Employees**
There were no employees during the year.
- 18 -
## **ST PETROCK AND HEAVITREE PARISH LANDS CHARITY**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 JUNE 2021**_
## **12 Net gains/(losses) on investments**
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2021**
**2021**
**£**
**£**
Revaluation of
investments
90,231
75,088
Gain/(loss) on sale of
investments
927
(84)
91,158
75,004
**13**
**Tangible fixed assets**
**Freehold land**
**and buildings**
**£**
**Cost**
At 1 July 2020
2,971,436
At 30 June 2021
2,971,436
**Depreciation and impairment**
At 1 July 2020
-
Depreciation charged in the year
-
At 30 June 2021
-
**Carrying amount**
At 30 June 2021
2,971,436
At 30 June 2020
2,971,436
**14**
**Investment property**
**Fair value**
At 1 July 2020 and 30 June 2021||**Total**Unrestricted
Restricted
funds
funds
**2021**
2020
2020
**£**
£
£
165,319
(28,580)
(24,764)
843
5,567
5,560
166,162
(23,013)
(19,204)
**Leasehold**
**land and**
**buildings**
**Fixtures and**
**fittings**
**Solar panels**
**£**
**£**
**£**
338,207
60,945
76,585
338,207
60,945
76,585
-
18,074
28,943
-
12,192
3,975
-
30,266
32,918
338,207
30,679
43,667
338,207
42,871
47,642|Total
2020
£
(53,344)
11,127
(42,217)
**Total**
**£**
3,447,173
3,447,173
47,017
16,167
63,184
3,383,989
3,400,156
**2021**
**£**
2,750,297|
|---|---|---|---|
|||||
|||||
|||||
|||||
|||||
|||||
The investment properties were revalued on 11 January 2017 by Haarer Goss, commercial property consultants. The trustees do not believe that the value has changed materially since that date.
- 19 -
## **ST PETROCK AND HEAVITREE PARISH LANDS CHARITY**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 30 JUNE 2021**_
## **15 Fixed asset investments**
|At 1 July 2020
Additions
Valuation changes
Changes in bank cash holdings
Disposals
At 30 June 2021
**Carrying amount**
At 30 June 2021
At 30 June 2020
**16**
**Debtors**
**Amounts falling due within one year:**
Other debtors
Prepayments and accrued income
**17**
**Loans and overdrafts**
Bank loans
Other loans
Payable within one year
Payable after one year
Amounts included above which fall due after five years:
Payable by instalments|**Listed**
**investments**
**£**
1,100,268
395,597
166,162
(26,522)
(374,764)
1,260,741
1,260,741
1,100,268
**2021**
**2020**
**£**
**£**
53,450
87,469
13,982
14,669
67,432
102,138
**2021**
**2020**
**£**
**£**
398,784
444,127
50,000
50,000
448,784
494,127
60,281
49,082
388,503
445,045
125,242
190,209|
|---|---|
The long-term loans are secured by fixed charges over the charity's investment properties.
- 20 -
## **ST PETROCK AND HEAVITREE PARISH LANDS CHARITY**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 JUNE 2021**_
|**18**
**Creditors: amounts falling due within one year**
**Notes**
Bank loans
**17**
Trade creditors
Other creditors
Accruals and deferred income
**19**
**Creditors: amounts falling due after more than one year**
**Notes**
Bank loans
**17**
Other borrowings
Deferred income
**20**
**20**
**Deferred income**
Arising from deferred grant income|**2021**
**£**
60,281
13,167
27,875
39,620
140,943
**2021**
**£**
338,503
50,000
121,285
509,788
**2021**
**£**
121,285|**2020**
**£**
49,082
25,516
36,375
75,295
186,268
**2020**
**£**
395,045
50,000
121,285
566,330
**2020**
**£**
121,285|
|---|---|---|
Deferred income is composed of Social Housing (£115,185) and Conservation Grants (£6,100), received in respect of the charity's Almshouses. The grant income is recognised in line with the charity's depreciation policy for the properties to which they relate .
- 21 -
## **ST PETROCK AND HEAVITREE PARISH LANDS CHARITY**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 30 JUNE 2021**_
## **21 Restricted funds**
The income funds of the charity include restricted funds comprising the following balances held on trust for specific purposes:
|**Balance at**
**1 July 2019**
**£**
Property ERF
448,763
St Petrock's
Church ERF
68,471
Cyclical
Maintenance
Fund
253,163
Reserve Fund
107,363
877,760|**Movement in funds**
**Incoming**
**resources**
**Resources**
**expended**
**Transfers Revaluations,**
**gains and**
**losses**
**Balance at**
**1 July 2020**
**£**
**£**
**£**
**£**
**£**
5,800
(286,728)
113,702
(4,186)
277,351
665
(188)
-
(4,890)
64,058
2,634
(31,264)
52,648
(6,290)
270,891
1,726
(53,560)
39,058
(3,838)
90,749
10,825
(371,740)
205,408
(19,204)
703,049|**Movement in funds**
**Incoming**
**resources**
**Resources**
**expended**
**Transfers Revaluations,**
**gains and**
**losses**
**Balance at**
**30 June 2021**
**£**
**£**
**£**
**£**
**£**
2,252
(8,639)
33,858
39,243
344,065
485
(406)
-
13,660
77,797
1,495
(3,679)
56,876
12,826
338,409
1,059
(43,354)
42,168
9,275
99,897
5,291
(56,078)
132,902
75,004
860,168|
|---|---|---|
Details of the four restricted funds may be found in the Accounting Policies note.
- 22 -
## **ST PETROCK AND HEAVITREE PARISH LANDS CHARITY**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 JUNE 2021**_
|**22**
**Analysis of net assets between funds**
**Unrestricted**
**funds**
**Restricted**
**funds**
**2021**
**2021**
**£**
**£**
Fund balances at 30
June 2021 are
represented by:
Tangible assets
3,383,989
-
Investment properties
2,750,297
-
Investments
712,496
548,245
Current assets/
(liabilities)
(150,457)
311,923
Long term liabilities
(509,788)
-
6,186,537
860,168|**Total**Unrestricted
funds
**2021**
2020
**£**
£
3,383,989
3,400,156
2,750,297
2,750,297
1,260,741
622,804
161,466
(192,104)
(509,788)
(566,330)
7,046,705
6,014,823|Restricted
funds
2020
£
-
-
477,464
225,585
-
703,049|Total
2020
£
3,400,156
2,750,297
1,100,268
33,481
(566,330)
6,717,872|
|---|---|---|---|
## **23 Related party transactions**
## **Transactions with related parties**
In the year under review, Reverend S Swarbrick was trustee of both the Parish Land Charity and of the Ecclesiastical Parish of Central Exeter which includes St Petrock's Church.
In the accounting period under review, Mrs S Mutton and Ms A Foreman were trustees of both the Parish Land Charity and members of the Parochial Church Council of the Ecclesiastical Parish of the Heavitree Team Ministry.
In 2020, the charity granted a donation to St Michael & All Angels (Heavitree) totalling £20,000, £10,000 of which was paid in the current year.
In the accounting period under review, Mr M Henderson was a trustee of the Parish Land Charity, and a director at Drew Pearce. The charity was charged £NIL (2020: £16,800) in respect of work undertaken on their behalf by Drew Pearce.
In the accounting period under review, Ms G Harflett was a trustee of the Parish Land Charity and of The Parochial Church Council of the Ecclesiastical Parish of St David with St Michael and All Angels Exeter.
- 23 -
## **ST PETROCK AND HEAVITREE PARISH LANDS CHARITY**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 JUNE 2021**_
|**24**|**Cash generated from operations**||**2021**|**2020**|
|---|---|---|---|---|
||||**£**|**£**|
||Surplus/(deficit) for the year||328,833|(149,252)|
||Adjustments for:||||
||Investment income recognised in statement of financial activities||(238,976)|(248,813)|
||Gain on disposal of investments||(843)|(11,127)|
||Fair value gains and losses on investments||(165,319)|53,344|
||Depreciation and impairment of tangible fixed assets||16,167|14,332|
||Movements in working capital:||||
||Decrease/(increase) in debtors||34,707|(39,591)|
||(Decrease)/increase in creditors||(56,524)|22,357|
||**Cash absorbed by operations**||(81,955)|(358,750)|
|**25**|**Analysis of changes in net (debt)/funds**||||
|||**At 1 July 2020**|**Cash flows At**|**30 June 2021**|
|||**£**|**£**|**£**|
||Cash at bank and in hand|117,610|117,367|234,977|
||Loans falling due within one year|(49,082)|(11,199)|(60,281)|
||Loans falling due after more than one year|(445,045)|56,542|(388,503)|
|||(376,517)|162,710|(213,807)|
- 24 -