**Charity Registration No. 250285**
## **CHURCH ESTATE TRUST**
## **ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 DECEMBER 2020**
**Fawley Judge & Easton Chartered Certified Accountants**
**12 Pavement Pocklington York YO42 2AX**
## **CHURCH ESTATE TRUST**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
**Trustees** Rev Caroline Pinchbeck Mr Andrew J Frankland-Barber - Treasurer Mrs Margaret Oakes Mrs Irene Pittaway Mr David Millican - Lay Chair Mr David Rudd Mr Christopher Clubley **Charity number** 250285 **Independent examiner** Fawley Judge & Easton Chartered Certified Accountants 12 Pavement Pocklington York YO42 2AX
## **CHURCH ESTATE TRUST**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees' report|1 - 2|
|Independent examiner's report|3|
|Statement of financial activities|4|
|Balance sheet|5|
|Notes to the financial statements|6 - 11|
## **CHURCH ESTATE TRUST**
## **TRUSTEES' REPORT**
## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
The trustees present their report and financial statements for the year ended 31 December 2020.
The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the Charities Act 2011 and the Statement of Recommended Practice, "Accounting and Reporting by Charities", issued in March 2005.
## **Objectives and activities**
The charity 's objects are the maintenance and repair of the parish church . The policies adopted in furtherance of these objects are the continuing investment in land and property to maximise the funding available for the maintenance and repair of the parish church, there has been no change in these during the year.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
## **Achievements and performance**
The aim of the Trust is the "maintenance and care of the fabric and ornaments of All Saints Church Market Weighton". In accordance with this aim the Tust made a grant towards the cost of the insurance, gas, churchyard and repairs of £10,250.
## **Financial review**
The charity's restricted income was £41,418 for the period with governance and support costs of £8,177 and a grant made to All Saints Church of £10,250. This resulted in an increase in restricted funds of £22,991 in the year. Given this the trustees are pleased that all other income and expenditure were within budget expectations.
The properties during the year were fully let with the exception of three voids, tow voids relate to the letting of the flat and the other was a minor void in relation to 108 Wictsun Way. The properties continue to be managed day to day by the agents in conjunction with the Secretary and Treasurer.
The Investments have continued to give good returns with an increase in market value of £17,889 during the year.
The review of the reserve structure has been completed and together with the investment review it has enabled a structure to be implemented that meets the requirements of the Trust in future years.
A review of the property valuations was carried out by the Trustees'. It was determined that the value of the properties had not materially changed during this 3 year period.
It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees considers that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.
The trustees has assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
## **Structure, governance and management**
The charity was established by a charitable trust deed on scheme of 19/11/1886 and varying scheme of 27/07/1966 .
The trustees who served during the year and up to the date of signature of the financial statements were: Rev Caroline Pinchbeck
Mr Andrew J Frankland-Barber - Treasurer Mrs Margaret Oakes
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## **CHURCH ESTATE TRUST**
## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
Mrs Irene Pittaway Mr David Millican - Lay Chair Mr David Rudd Mr Christopher Clubley
The latter scheme provided for a body of 9 trustees. As vacancies arise efforts are made to recruit suitable individuals who through residence, occupation or employment or otherwise have special knowledge of the benefit area.
Rev Caroline Pinchbeck was appointed as Chair during the year under review on the 17 November 2019, the Treasurer is Mr Andrew Frankland-Barber and the Secretary is Mr David Millican. The Board met 1 time during the year.
As Mr Andrew Frankland-Barber is Treasurer for All Saints Church Market Weighton he is not a signatory to the Trust bank accounts.
There are no related party transactions to report on in the year.
The trustees' r eport was approved by the Board of Trustees.
## **Mr Andrew J Frankland-Barber - Treasurer**
Trustee Dated: 16 April 2021
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## **CHURCH ESTATE TRUST**
## **INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF CHURCH ESTATE TRUST**
I report to the trustees on my examination of the financial statements of Church Estate Trust (the charity) for the year ended 31 December 2020.
## **Responsibilities and basis of report**
As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).
I report in respect of my examination of the charity’s financial statements carried out under section 145 of the 2011 Act . In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
## **Independent examiner's statement**
Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.
I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
- 1 accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or
- 2 the financial statements do not accord with those records; or
- 3 the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
## **Jonathan Leathley Fawley Judge & Easton Chartered Certified Accountants**
12 Pavement Pocklington York YO42 2AX
Dated: 16 April 2021
- 3 -
## **CHURCH ESTATE TRUST**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
|**Restricted**
**funds**
**2020**
**Notes**
**£**
**Income from:**
Investments
**3**
41,418
**Expenditure on:**
Charitable activities
**4**
23,118
Net gains/(losses) on investments
**9**
17,869
**Net movement in funds**
36,169
Fund balances at 1 January 2020
1,631,429
**Fund balances at 31 December 2020**
1,667,598|Restricted
funds
2019
**£**
41,077
30,232
28,419
39,264
1,592,165
1,631,429|
|---|---|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
- 4 -
## **CHURCH ESTATE TRUST**
## **BALANCE SHEET**
## _**AS AT 31 DECEMBER 2020**_
|**2020**
**Notes**
**£**
**£**
**Fixed assets**
Tangible assets
**10**
1,384,600
Investments
**11**
223,498
1,608,098
**Current assets**
Cash at bank and in hand
64,191
Net current assets
64,191
**Total assets less current liabilities**
1,672,289
**Income funds**
Restricted funds
1,667,598
Unrestricted funds
-
1,667,598
**_Warning: Support and governance cost to reallocate (5000_**
**_codes must balance to nil to balance BS)_**
(4,691)
**_Warning: Balance sheet net assets do not equal equity, or_**
**_there is a suspense balance._**
(4,691)
The financial statements were approved by the Trustees on 16 April 2021
Mr Andrew J Frankland-Barber - Treasurer
Mr David Millican - Lay Chair
**Trustee**
**Trustee**|**2019**
**£**
**£**
1,384,600
205,580
1,590,180
41,249
41,249
1,631,429
1,631,429
-
1,631,429
-
-|
|---|---|
- 5 -
## **CHURCH ESTATE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **1 Accounting policies**
## **Charity information**
Church Estate Trust is a Charity.
## **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) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements 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 Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.
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.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.
## **1.4 Income**
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
- 6 -
## **CHURCH ESTATE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **1 Accounting policies**
**(Continued)**
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
## **1.5 Expenditure**
## **1.6 Tangible fixed assets**
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
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:
Land and buildings
Impairment review is carried out by the trustees
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.
## **1.7 Fixed asset investments**
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year . Transaction costs are expensed as incurred.
## **1.8 Impairment of fixed assets**
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) .
## **1.9 Cash and cash equivalents**
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
## _**Basic financial assets**_
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
## _**Basic financial liabilities**_
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
- 7 -
## **CHURCH ESTATE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **1 Accounting policies**
## **(Continued)**
## _**Derecognition of financial liabilities**_
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
## **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 Investments**
||**Restricted**|Restricted|
|---|---|---|
||**funds**|funds|
||**2020**|2019|
||**£**|£|
|Rental income|41,368|41,077|
|Interest receivable|50|-|
||41,418|41,077|
## **4 Charitable activities**
||**All Saints**|**All Saints**|
|---|---|---|
||**Church,**|**Church,**|
||**Market**|**Market**|
||**Weighton**|**Weighton**|
||**2020**|**2019**|
||**£**|**£**|
|Grant funding of activities (see note 5)|10,250|17,128|
|Share of support costs (see note 6)|7,883|7,263|
|Share of governance costs (see note 6)|4,985|5,841|
||23,118|30,232|
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## **CHURCH ESTATE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **5 Grants payable**
|Grants to institutions:
All Saints Church, Market Weighton
-
**6**
**Support costs**
**Support**
**costs**
**Governance**
**costs**
**£**
**£**
Rates
-
-
Insurance
2,334
-
Repairs and
maintenance
858
-
Accountancy
-
270
Legal and professional
-
4,715
3,192
4,985
Analysed between
Charitable activities
7,883
4,985
**_WARNING - DOES NOT_**
**_AGREE_**
4,691
-|**All Saints**
**Church,**
**Market**
**Weighton**
All Saints
Church,
Market
Weighton
**2020**
2019
**£**
£
10,250
17,128
**2020**
Support
costs
Governance
costs
2019
**£**
£
£
£
-
537
-
537
2,334
2,250
-
2,250
858
4,476
-
4,476
270
-
270
270
4,715
-
5,571
5,571
8,177
7,263
5,841
13,104
12,868
7,263
5,841
13,104
4,691
-|
|---|---|
Governance costs includes payments to the auditors of £ 270 (2019- £ 270 ) for audit fees.
## **7 Trustees**
None of the trustees (or any persons connected with them) received any remuneration during the year .
## **8 Employees**
The average monthly number of employees during the year was:
**2020 2019 Number Number** Total - -
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## **CHURCH ESTATE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **9 Net gains/(losses) on investments**
|||**Restricted**|
Restricted|
|---|---|---|---|
|||**funds**|
funds|
|||**2020**|
2019|
|||**£**|
£|
||Revaluation of investments|17,869|
28,419|
|**10**|**Tangible fixed assets**|||
|||**Land and buildings**||
||||**£**|
||**Cost**|||
||At 1 January 2020||1,384,600|
||At 31 December 2020||1,384,600|
||**Carrying amount**|||
||At 31 December 2020||1,384,600|
||At 31 December 2019||1,384,600|
|**11**|**Fixed asset investments**|||
||||**Unlisted**|
||||**investments**|
||||**£**|
||**Cost or valuation**|||
||At 1 January 2020 & 31 December 2020||205,580|
||**Carrying amount**|||
||At 31 December 2020||205,580|
||At 31 December 2019||205,580|
|**12**|**Analysis of net assets between funds**|||
|||**Restricted**|
Restricted|
|||**funds**|
funds|
|||**2020**|
2019|
|||**£**|
£|
||Fund balances at 31 December 2020 are represented by:|||
|||-|
-|
- 10 -
## **CHURCH ESTATE TRUST**
# **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **13 Related party transactions**
There were no disclosable related party transactions during the year (2019 - none).
- 11 -