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2022-12-31-accounts

Registered Charity Number 1097842 Company Number 4758640

COUNCIL FOR WORLD MISSION (UK)

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

AMENDED

The following accounts replace the original accounts that were submitted to Companies House.

They are now the statutory accounts and were prepared as they were at the date of the original accounts.

COUNCIL FOR WORLD MISSION (UK) TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2022

Reference and administrative details

Name

Council for World Mission (UK)

Registered Charity Number

1097842

Company Number

4758640

Principal Office

11 St Georges Circus London SE1 8EH

Registered Office

BWB Secretarial Limited 10 Queen Street Place, London EC4R 1BE

Governing Instrument

Council for World Mission was registered as a charity in succession to its unincorporated predecessor on 5 June 2003 and as a company limited by guarantee on 9 May 2003. The governing document is the Articles of Association as amended by special resolutions dated 25 July 2003, June 13, 2012 (which added “(UK)” to its name) and August 24, 2012.

Trustees and Directors

Meetings of the Trustees held during 2022 were on the following dates:

Trustee 2-Mar 22 12 Jun-22 11-Nov-22
Mrs Rose Althea
Wedderburn		 ✓ ✓ ✓
Rev Giron Samely Lyttan
(resigned21 Nov2022)
Rev Kudzani Ndebele ✓ ✓ ✓
Ms Lindsey Brown ✓ ✓ ✓
Ms Sarah Phua Yi Ran ✓
Rev Phillip Leslie King ✓ ✓ ✓

They are also directors of the company during 2022 and did not receive any remuneration for their services as Trustees.

Trustees benefit from indemnity insurance to cover the liability of the Trustees which by virtue of any rule of law would otherwise attach to them in respect of any negligence, default or breach of trust or breach of duty of which they may be guilty in relation to the Charity. The cost of this insurance in the year has been included within total insurance costs.

Senior Management Personnel

The Charity’s Trustees delegate day-to-day management of the Charity to its chief executive officer (General Secretary), Rev Dr Jooseop Keum, and other senior management:

*Rev Dr Jooseop Keum – General Secretary Mr Sudipta Singh – Deputy General Secretary, Programme (appointed 1 Aug 2022)

Mr Sum Soon Yew – Mission Secretary, Finance

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COUNCIL FOR WORLD MISSION (UK) TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 DECEMBER 2022

Rev Dileep Kumar Kandula – Mission Secretary, General Secretariat

Rev Cheong Young Cheol – Mission Secretary, Communications (appointed 15 Aug 2022)

Rev Sindiso Jele – Mission Secretary, Social Justice & Africa region Rev Julie Sim – Mission Secretary, Mission Programme & Partnership

Rev Daimon Mkandawire – Mission Secretary, Ecology & Economy (appointed 1 Sep 2022) Rev Michael Jagessar - Mission Secretary, Europe region Rev Nikometo Sopepa – Mission Secretary, Pacific region

*The individuals noted above are considered to be Key Management Personnel of CWM UK.

*The individuals noted above are considered to be Key Management Personnel of CWM UK.

Auditors MHA (formally MHA Maclntyre Hudson) 6[th] Floor, 2 London Wall Place, London, EC2Y 5AU

Bankers Royal Bank of Scotland Victoria, London SW1E 6RA HSBC The Peak, 333 Vauxhall Bridge Road, Victoria London SW1V 1EJ Investment Advisers Cambridge Associates Limited 80 Victoria Street, Cardinal Place, London SW1E 5JL Fund Managers 1. Aviva Investors 2. CCLA Investment Management Limited 3. First State Investments (UK) Limited 4. Franklin Templeton Investments 5. Fundsmith LLP 6. GMO Climate Change 7. Ownership Capital B.V. 8. Payden & Rygel Investment Management 9. Royal London Asset Management 10. RobecoSAM Sustainable Water Strategy 11. Russell Investments 12 Savills Investment Management 13. TCI Fund Management 14. Trojan Ethical Fund 15. Tybourne Capital Management (HK) Limited 16. Generation Investment Management 17. ROW Asset Management 18. RBC Wealth Management

Solicitors

Bates Wells & Braithwaite LLP 10 Queen Street Place, London EC4R 1BE

Sole Membership

Council for World Mission Ltd. (CWM Ltd) registered address at 143 Cecil Street #03-02 GB Building, Singapore 069542, is the sole Member of Council for World Mission (UK) (CWM UK) and it has the same charitable objectives.

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COUNCIL FOR WORLD MISSION (UK) TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2022

The member churches of CWM Ltd are:

Africa Region

Church of Jesus Christ in Madagascar (FJKM) Churches of Christ in Malawi (CCM) United Church of Zambia (UCZ) United Congregational Church of Southern Africa (UCCSA) Uniting Presbyterian Church in Southern Africa (UPCSA)

Caribbean Region

Guyana Congregational Union (GCU) United Church in Jamaica and the Cayman Islands (UCJCI)

East Asia Region

Gereja Presbyterian Malaysia (GPM) Hong Kong Council of the Church of Christ in China (HKCCCC) Presbyterian Church of Korea (PCK) Presbyterian Church of Myanmar (PCM) Presbyterian Church in Taiwan (PCT) Presbyterian Church in Singapore (PCS)

Europe Region

Congregational Federation (CF) Presbyterian Church of Wales (PCW) Protestant Church in the Netherlands (PCN) Union of Welsh Independents (UWI) United Reformed Church (URC)

Pacific Region

Congregational Christian Church in American Samoa (CCCAS) Congregational Christian Church in Samoa (CCCS) Congregational Union of New Zealand (CUNZ) Ekalesia Kelisiano Tuvalu (EKT) Etaretia Porotetani Maohi (EPM) (Tahiti) Kiribati Uniting Church (KUC) Nauru Congregational Church (NCC) Presbyterian Church of Aotearoa New Zealand (PCANZ) United Church in Papua New Guinea (UCPNG) United Church in Solomon Islands (UCSI)

South Asia Region

Church of Bangladesh (COB) Church of North India (CNI) Church of South India (CSI) Presbyterian Church of India (PCI)

The member churches meet in a full Assembly every four years and work closely together throughout the intervening years in supporting each other to deliver the range of mission-focused activities outlined in the CWM strategic plan within their respective church communities.

The Charity’s Trustees work in close association with CWM Ltd, four of the Trustees listed above are also Directors of CWM Ltd which is a charitable organisation limited by guarantee, registered in Singapore under registration number 201206146Z with its office address at 114 Lavender Street, #12-01 CT Hub 2, Singapore 338729. CWM Ltd is regulated by the Singapore Commissioner of Charities and is the Sole Member of CWM UK.

CWM UK is the sole member and hence has 100% of the members’ voting rights of the London Missionary Society Corporation (company registration number 00063934) and Commonwealth Missionary Society Corporation (company registration number 00054472). These companies are limited by guarantee and registered in England & Wales, and hence are wholly controlled by CWM UK. Both companies were dormant and have not traded for many years.

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COUNCIL FOR WORLD MISSION (UK) TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2022

Audit, Finance and Investment Committees

The charity is served by qualified and experienced members of (a) an Audit Committee (b) a Finance Committee and (c) an Investment Committee. The Board appoints the members to the three committees, which meet regularly and exist to assist the Trustees in discharging their oversight and governance responsibilities.

Audit Committee

The purpose of the Audit Committee is to support the Board of Trustees to ensure the charity is managed efficiently and that the organisation makes full and effective use of its resources in furtherance of its charitable objectives, and to advise the management team on the adequacy of risk management and financial governance processes. The Committee gives particular attention to the annual audit findings, internal controls and legal compliance issues and it highlights material items of concern and monitors the follow-up on recommendations arising from audits, reviews, and risk assessments.

Finance Committee

The purpose of the Finance Committee is to assist the Trustees to oversee the charity's financial risk management strategy, accounting policies, treasury, and budgeting matters and to provide guidance in respect of all major financial matters including the ongoing monitoring of the organisations financial performance.

Investment Committee

The Investment Committee is responsible for assisting the Trustees in providing the oversight and ongoing review of the organisation’s investment portfolio and monitoring of the fund managers' performance.

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COUNCIL FOR WORLD MISSION (UK) TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2022

1. Objectives of the Charitable Company

CWM UK is a charity registered in England and Wales which acts to fulfil the commitment of a partnership of 32 protestant churches worldwide known as Council for World Mission (CWM).

The object of the Charity for public benefit is “to spread the knowledge of Christ throughout the world”, that is to say, “to further the work of Christian mission throughout the world”. To this end, the charitable Company has the power to:

The member churches share in world mission, both local and global, by sharing people, ideas, and other resources, recognising that every church has gifts to offer and all have need to receive.

The objects of the Charity are further clarified by its vision and mission statements as follows:

2. Historical Background

The charitable Company traces its origin to CWM which grew out of the London Missionary Society (founded 1795), the Commonwealth (Colonial) Missionary Society (founded 1832), and the (English) Presbyterian Board of Missions (founded 1847). The property and assets of the two first-named societies were held by the London Missionary Society Corporation and Colonial Missionary Society Corporation which remain as dormant companies controlled by the Charity.

With the birth of CWM, a new ideology and understanding of doing God's mission was embraced, which saw a movement from the donor-recipient model of mission, embedded in the colonial approach, to a joint ownership and mutual sharing of resources of people, ideas and money; grounded in the biblical principle of giving and receiving. Accordingly, the Charity was set up as a worldwide community of Christian denominations working as equal partners with a common commitment to the Gospel of the Lord Jesus Christ. There are currently thirty-two (32) member churches.

The Charity’s philosophy is based upon the principle that the local church has the primary responsibility for carrying forward God’s mission. As a global body, the charitable Company exists to facilitate resource-sharing for mission by the partnership. Amongst other things, it facilitates the exchange of Partners-in-mission (missionaries) between churches; shares ideas and best practices for mission strategies of member churches; strengthens leadership of churches through theological and mission training; and builds up communication networks between and among the members, regions and global offices. Particular emphasis is placed upon helping men, women and young people to make their full contribution to church life, and upon helping member churches, in each of its six regions, to act in a united way, looking at issues they have in common. The impact of engaging with these activities is wide-ranging, across the world.

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COUNCIL FOR WORLD MISSION (UK) TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2022

3. Membership

CWM is founded upon constituent bodies, or member churches, being the churches (or associations of churches) that participate in its work. Each member church must declare by resolution its willingness to:

Most of the current 32 member churches ( listed above) have backgrounds in the Reformed tradition. Many are united churches, combining several church traditions. Member churches are all independent and autonomous organisations that do not have any formal links to CWM in their constitutional documents. The financial records of the member churches are therefore not subject to consolidation within the CWM group accounts. However, through the submission of their annual accounts, the members must demonstrate their ability to receive, monitor, and use the shared resources distributed through the worldwide partnership for the stated and agreed objectives.

4. Governance and Role of CWM UK

CWM UK discharges the responsibilities of the Charity in accordance with its Objects, through CWM Ltd, which operates from the global office in Singapore with subsidiary offices in London and South Africa and two representative offices in the Caribbean and the Pacific.

The Trustees usually meet three times a year to translate the Charity’s vision into achievable aims, designating those activities to the responsible parties and deciding upon the desired timeframe. Before each meeting, the Trustees join in the meeting of the Board of Directors of CWM Ltd where they participate in the discussion of all matters on CWM Ltd’s agenda including but not limited to programme planning and delivery, financial management, governance, and overall accountability. In this way, the Trustees are privy to the operations of CWM Ltd which has the responsibility of carrying out the charitable objects of the Charity, with the Charity providing funding for all the activities of CWM Ltd.

The Trustees are appointed by the Assembly (representatives from the 32 member churches) held quadrennially to serve a four year term.

5. Grants

Grants are the instrument through which the activities described above have been carried out through CWM Ltd. Details of the grants given during the period are set out in note 2.4.1 of the accounts, and information about designated funds is given in note 11.1 of the accounts. Annual budgets and grant commitments are planned to ensure that the Charity’s spending is in line with its policy and that there is full and proper accountability for the project expenditure.

6. Financial Review

6.1. Financial Performance Overview

The financial results for the year reflect total income of £3.6m.

The primary source of income is from interest and dividends earned on the investment portfolio. Our investment portfolio suffered mark to market valuation loss of £21.0m, of which £19.6m is unrealised loss. The investment portfolio was negatively affected by the worldwide decline in assets value from the investment market turmoil resulting from geopolitical tension, record high inflation rate and central banks’ steep and rapid increases in interest rate. As a result, major market indices were down by about 20%.

The Charity’s expenditure increased by 4% to £6.7m, which therefore produced a negative contribution of £24.1m (2021: £17.9m) for the year. The total fund balance stands at £171.5m

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COUNCIL FOR WORLD MISSION (UK) TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2022

CWM UK object is to further the work of christian mission and our investment return enables us to serve this mission. As such, our investment investment horizon is long term, our capital base remains strong and is able to weather short-term market decline.

6.2. Unrestricted Funds

The Charity’s main source of income is investment income, which represented more than 99% of the total unrestricted income during this financial year. Other sources of income include contributions from member churches and individuals as well as legacy income.

The stability of the income and capital base of the investment portfolio is paramount in creating a financially sound and sustainable operating model, allowing CWM to continue to sustain the ongoing expenditure required to deliver its mission and purpose. The Charity has a strong capital base, and this makes the Charity’s immediate activities less vulnerable to large variations in total returns from its investments.

The invested fund largely originated from a gift from the sale of a Hong Kong hospital site in 1994. The investment committee monitors the performance of these funds on a quarterly basis.

6.3. Restricted Funds

The Charity has been given custody of a large number of legacies and gifts for specific worldwide mission purposes and these are treated as restricted or endowment funds in the financial statements. These funds are summarised in Note 10 to the financial statements. Ongoing distribution and consolidation is taking place to release these funds for the purposes for which they were given, by following the Charity Commission’s guidelines.

In 2021, CWM continued to use the power, granted by the Charity Commission in an order of 2007, to deplete the unapplied total return (interest, dividends and realised capital gain) of the Retired Missionary Fund in paying pensions to retired missionaries who had served before the inception of a pension scheme or were in service before July 1977. The book value in December 1992 of the assets which subsequently composed the Fund is deemed to be the permanent capital held on trust for investment (£684,010). All subsequent increases in the value of the permanent capital, whether arising from interest or dividends or realised capital gain on disposal are held as unapplied total return until formally transferred in trust for application. Upon review of and recommendation by the Finance Committee, regarding expected future payments vis-à-vis returns on investment on this Fund, the Trustees were satisfied that there will be sufficient unapplied returns to service future payments.

7. Investment and Reserve Policies and Fundraising

The Charity does not undertake any public fundraising activities; and, as such, it is not bound by any fundraising standards or voluntary scheme for regulating fund-raising. Its principal source of income is from its investments. The current fund balance stood at £171.5m as at 31 December 2022, comprising £161.9m of unrestricted funds; £0.9m of restricted funds; and £8.8m of endowment funds.

7.1. Investment Policy

The Charity seeks to generate income and capital growth from its investments to finance its missionary activities, mindful of the need and desire to invest ethically and with regard to socially responsible criteria.

The Charity adopts a total return policy approach in managing the portfolio. The Charity seeks to generate income and capital growth from its investments to finance its mission activities, mindful of the need and desire to invest ethically and with regard to socially responsible criteria. The long-term target remains to achieve a 5% real return on the investment portfolio but, recognising actual performance in the recent past, operational budgets in recent years have assumed a conservative 3% real return in an average year.

The Charity’s Ethical Investment Policy that was approved by the Board in May 2019, on the advice of the Investment and Finance Committees, broadened the scope and tightened the criteria of its previous policy.

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COUNCIL FOR WORLD MISSION (UK) TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2022

The core of this policy is as follows:

7.1 Investment Policy (continued)

The main investment portfolio, managed by the Investment Committee and coordinated by professional fund managers, is centered around four major investment themes that are deemed suitable for CWM: the growth engine (developed market and emerging market equities), diversifiers, inflation-sensitive (commodities, property, inflation-linked bonds) and deflation hedging (government bonds). The monitoring of target allocations of the portfolio was performed quarterly and adjustments to the allocation were made, on the advice of investment managers, where necessary.

Reviews of the fund managers’ performance were undertaken by the Investment Committee quarterly, measured against target returns as well as agreed market benchmarks such as the FTSE indexes and the MSCI World Index.

7.2 Reserves Policy

The unrestricted funds of CWM UK are predominantly made up of its invested capital base from which the mission activities of the Group are funded. CWM intends to use this invested capital base to secure the longterm future of CWM’s activities around the world. Its Reserves Policy is, therefore, to maintain, when measured on average over a period of years in real terms, at least the base level of the unrestricted reserves in perpetuity. This would imply reserves target at the end of 2022 of around £140m, using the average UK Consumer Price Index as a measure of inflation. The unrestricted funds balance at the close of the financial year was £161.9m.

8.

Risk Review

The Board of Trustees has a formal risk management process through which it assesses the risks facing the Charity and implements appropriate risk management strategies, through CWM Ltd. The process involves the identification of the types of risks; assessment of those risks with regard to their potential impact and probability of occurrence; and proposed risk treatment and actions taken to date and those to be taken to mitigate the identified risks. Two principal risks identified are (1) IT security; and (2) Investment Returns. Measures are in place to ensure that all IT systems are protected and regular and closer monitoring of investments is carried out by the Investment Committee to ensure that the long-term investment returns are achieved and sustained. The investment strategy is constantly under review; the Investment Committee meets regularly to ensure that the strategy is still relevant and appropriate to generate the income required to sustain CWM’s ongoing activities and operations. The Audit Committee monitors the risks faced by CWM in its meetings with updates from management vis-à-vis the risk registers of both CWM UK and CWM Ltd. Internal audits carried out in Singapore on different aspects of CWM Ltd’s operations are done annually and findings reported to Trustees of CWM UK and Board of CWM Ltd.

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COUNCIL FOR WORLD MISSION (UK) TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2022

9. Recent Developments

CWM continued working in accordance with the 2020 - 2029 strategic framework. It was informed by input from CWM’s diverse communities as well as the reading of the signs of the time. A theology statement - Rising to Life: Breaking out from Babylon, a faith stance on commitment to mission - Missio Confessionis, a financial mission framework - Theological and Missiological Commitments to Life-Flourishing Economy and Finance for All and the Onesimus Project report and recommendations are provided as accompanying resources. This new framework will further develop and/or reshape the partnership in mission model that has guided CWM since 1977, in recognition that global Christian witness is changing, and the voices of persons in risky and vulnerable places need to be heard.

10. Public Benefit Statement

The Trustees confirmed that they have complied with the duty to have due regard to the Charity Commission’s general guidance on public benefit, “Charities and Public Benefit”. The public benefit requirements have been met by the activities described in Section 5 which include, but are not limited to the development of capacities and capabilities to achieve the fullness of life for all creation.

11. Auditors

The auditors, MHA (formally MHA MacIntyre Hudson) (UK member of Baker Tilly International) have indicated their willingness to continue in office.

Following a rebranding exercise on 15 May 2023 the trading name of the company’s independent auditor changed from MHA MacIntyre Hudson to MHA. A resolution to reappoint MHA as independent auditor will be proposed at the next Annual General Meeting.

12. Statement as to Disclosure of Information to Auditors

Insofar as each of the Trustees of the Charity, at the date of the approval of this report, are aware, there is no relevant audit information (information needed by the Company’s auditor in connection with preparing the audit report) of which the Charity’s auditor is unaware. Each Trustee has taken all of the steps he/she should have taken as a Trustee in order to make himself/herself aware of any relevant audit information and to establish that the Charity’s auditor is aware of that information.

13. Statement of Trustees’ Responsibilities

The Trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and regulations.

Company Law requires the Trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards) and applicable law.

Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Charity and of its net incoming/outgoing resources for that period. In preparing these financial statements, the Trustees are required to:

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COUNCIL FOR WORLD MISSION (UK) TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2022

The Trustees are 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 Companies Act 2006 and the

provisions of the Charity’s constitution. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

This report has been prepared under the special provisions of the Companies Act 2006 available to small companies.

Approved by the Trustees on 9 June 2023 and signed as authorised for issue on their behalf by:

Rose Althea Wedderburn Sarah Phua Yiran Trustee Trustee

Council for World Mission (UK) Company Number: 4758640 England & Wales Charity Number: 1097842

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COUNCIL FOR WORLD MISSION (UK) INDEPENDENT AUDITOR’S REPORT FOR THE YEAR ENDED 31 DECEMBER 2022

Opinion

We have audited the financial statements of Council for World Mission (UK) (the ‘charitable company’) for the year ended 31 December 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flow and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, 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:

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 charitable company 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. Our evaluation of the Trustees’ assessment of the entity’s ability to continue to adopt the going concern basis of accounting included critical reviews of budgets and forecasts provided.

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 Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

Other information

The Trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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COUNCIL FOR WORLD MISSION (UK) INDEPENDENT AUDITOR’S REPORT FOR THE YEAR ENDED 31 DECEMBER 2022

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of Trustees

As explained more fully in the Trustees’ responsibilities statement included in the Trustees’ Annual Report, the Trustees (who are also the Directors of the charitable company for the purposes of company law) 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 charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

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COUNCIL FOR WORLD MISSION (UK) INDEPENDENT AUDITOR’S REPORT FOR THE YEAR ENDED 31 DECEMBER 2022

Auditor’s responsibilities for the audit of the financial statements

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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below:

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 for the audit of the financial statements is located on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standardsand-guidance/Standards-and-guidance-for-auditors/Auditors-responsibilities-for-audit/Description-ofauditors-responsibilities-for-audit.aspx. This description forms part of our auditor’s report.

Use of this report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members 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 charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Sudhir Singh FCA (Senior Statutory Auditor) For and behalf of MHA, Statutory Auditors London, United Kingdom

Date: 20 June 2023

MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313)

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COUNCIL FOR WORLD MISSION (UK) STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2022

Note
Income and endowments from:
Donation and legacies
2.1
Investment income
2.2
Total Income
Expenditure on:
Raising Funds
2.3
Charitable activities
2.4
Total Expenditure
Operating (Deficit)/Surplus
Net gains/(losses) on investments
Net Income/(Expenditure)
Net Movement In Funds
Reconciliation of funds:
Total Funds At 1 January 2022
Total Funds At 31 December 2022		 Unrestricted

Funds
£
76,571
3,493,060		 Restricted
Funds
£
-
67,132		 Endowment

Funds

£

-

6,476
Total 2022

Funds

£

76,571

3,566,668		 Total 2021
Funds
£

98,609

3,992,169
3,569,631 67,132
6,476
3,643,239		 4,090,778
1,516,018
5,058,482		 32,886
19,404		 3,172

58,270		 1,552,076

5,136,156		 1,938,132
4,471,044
6,574,500 52,290
61,442
6,688,232		 6,409,176
(3,004,869)
(21,017,518)		 14,842
(2,581)
(54,966)

(41,101)		 (3,044,993)
(21,061,200)		 (2,318,398)
20,177,988
(24,022,387) 12,261
(96,067)		 (24,106,193) 17,859,590
(24,022,387)
185,890,399		 12,261
870,404
(96,067)

8,886,674		 (24,106,193)

195,647,477		 17,859,590
177,787,887
161,868,012 882,665
8,790,607
171,541,284		 195,647,477

All income and expenditure were derived from continuing activities. The statement of financial activities includes all gains or losses recognised in the year.

The annexed notes form part of these financial statements.

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COUNCIL FOR WORLD MISSION (UK) BALANCE SHEET AS AT 31 DECEMBER 2022

Note
Fixed assets
Tangible fixed assets
4
Investments
5
Current assets
Investments
6
Debtors
7
Cash at bank and in hand
Liabilities
Creditors: Amounts falling due within one year
8
Net current assets
Total assets less current liabilities
Total net assets
The funds of the charity:
Endowed funds
10
Restricted funds
10
Unrestricted funds
- Designated funds
11
- General fund
11
Total unrestricted funds
11
Total charity funds
12		 2022
£
2,427,706
167,298,921
169,726,627
436,256
577,220
4,396,108
5,409,584
(3,594,927)
1,814,657
171,541,284
171,541,284
8,790,607
882,665
13,520,885
148,347,127
161,868,012
171,541,284		 2021
£
2,574,689
191,847,303
194,421,992
118,304
625,886
4,657,189
5,401,379
(4,175,894)
1,225,485
195,647,477
195,647,477
8,886,674
870,404
13,822,051
172,068,348
185,890,399
195,647,477

Included in total funds above are cumulative unrealised gains on listed investments, current investments and investment properties of £25,053,160 (2021: £50,083,582)

The financial statements have been prepared in accordance with sections 415A of the Companies Act 2006.

These financial statements are prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

The financial statements were approved and authorised for issue by the Trustees on 9 June 2023 and signed on their behalf by:

Rose Althea Wedderburn Trustee Trustee

Company Number: 4758640

The annexed notes form part of these financial statements.

15

COUNCIL FOR WORLD MISSION (UK) STATEMENT OF CASH FLOW FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2022

Cash flows from operating activities
Note
Net Cash flow from operating activities
17
Cash flow from investing activities
Investment income – Dividends and Interest
2.2
Investment income – Rent
2.2
Purchase of tangible fixed assets
Purchase of current asset investments
6
Proceeds from sale of current investments
6
Payments to acquire managed investments
5.1
Proceeds from sale of managed investments
5.1
Reclassification of fixed assets
6
Net cash flow from investing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Cash and cash equivalents at the end of the period		 2022
£
(7,096,450)
3,455,724
110,944
(1,381)
-
-
(31,823,234)
35,011,878
81,438		 2021
£
(6,382,177)
3,879,320
112,849
(706)
-
2,310,331
(28,912,655)
32,082,916
-
6,835,369 9,472,055
(261,081)
4,657,189		 3,089,878
1,567,311
4,396,108 4,657,189

There is no net debt during the current or prior year

16

COUNCIL FOR WORLD MISSION (UK) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

1. PRINCIPAL ACCOUNTING POLICIES

a) Accounting convention

Council for World Mission (UK) is a company limited by guarantee and is registered with the Charity Commission (Charity Registered Number 1097842) and Registrar of Companies (Company Registration Number 4758640) in England and Wales. In the event of the Charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the Charity. The address of the registered office is given in the Charity information on page 1 of these financial statements. The nature of the Charity’s operations and principal activities are to spread the knowledge of the Christ throughout the world, that is, further the work of Christian mission throughout the world.

The Charity constitutes a public benefit entity as defined by FRS 102 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), the Financial Reporting Standard applicable in the UK and

Republic of Ireland (FRS 102) and the Companies Act 2006, the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2019.

The Charity has applied all amendments to FRS 102, as set out in the Financial Reporting Council's triennial review published in December 2017, and included in Update Bulletin 2 to the Charities SORP (FRS 102).

The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are presented in sterling which is the functional currency because that is the currency of the primary economic environment in which the charity operates and rounded to the nearest pound.

CWM UK is the sole member and hence has 100% of the members’ voting rights of London Missionary Society Corporation (company registration number 00063934) and Commonwealth Missionary Society Corporation (company registration number 00054472). These companies are limited by guarantee and registered in England & Wales, and hence are wholly controlled by CWM UK. Both companies were dormant throughout the current and previous financial year. The companies have nil net assets and have not traded for many years; hence they are not consolidated in CWM UK accounts as they are not considered to be material to CWM UK’s financial statements.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

b) Going Concern

Having reviewed the charity’s financial position (considering its current liquidity level, performance of the investment portfolio and investment reserves held) and future (including a budget for the year ahead) plans for the charity, the Trustees have a reasonable expectation that the charity has adequate resources to continue its activities for the foreseeable future and have not identified any material uncertainties which could affect going concern. Accordingly, they continue to adopt a going concern basis in preparing the financial statements.

17

COUNCIL FOR WORLD MISSION (UK) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

1. PRINCIPAL ACCOUNTING POLICIES (continued)

c) Recognition of income

Income is recognised in the year in which the charity is legally entitled to receipt, the receipt is probable, and the amount can be measured reliably. Donations represent amounts receivable in the accounting year. Receipt of a legacy is recognised when it is probable that it will be received. Receipt is normally probable when there has been grant of probate; the executors have established that there are sufficient assets in the estate, after settling any liabilities, to pay the legacy; and any conditions attached to the legacy are either within the control of the charity or have been met. Investment income is recognised in the period when the Charity has earned unconditional entitlement to monies. Donations and grants received for specific purposes are treated as restricted funds.

Donated services (gifts in kind) are recorded at the market value that CWM UK would normally pay for such services and gifts, when the risks or rewards of the service or item are transferred to CWM UK. Donated services are recognised in the accounts when they are of material value to the charity.

d) Property income

Property income represents rent receivable in respect of properties owned during the year and is accounted for during the period to which it relates. It is then allocated to the appropriate fund.

e) Expenditure

Expenditure on raising funds comprises investment management costs and expenditure in relation to the generation of donations and legacy income. Charitable activities include grants payable in furtherance of the charitable objects and related support costs.

Expenditure is recognised in the year in which it is incurred under the accrual basis. Grants and allocations payable to CWM Ltd are included in the SOFA when approved by the Trustees and agreed with the recipient organisation. The value of such grants unpaid at the year-end is accrued. Grants, where the beneficiary has not been informed or has to meet certain conditions before the grant is released, are not accrued however funds may be designated to the value of any conditional commitment. CWM UK is not registered for Value Added Tax and any irrecoverable VAT is charged to the appropriate heading.

Governance costs are the expenses incurred by the Charity in meeting their statutory and constitutional requirements and include Trustees’ expenses and external audit fees.

f) Allocation of costs

Costs are allocated within charitable activities according to the nature of the cost. Wherever possible costs are attributed directly to specific activities. Certain shared costs including support costs are apportioned to activities using a variety of bases including estimated time spent and the number of employees.

g) Tangible fixed assets and depreciation

Fixed assets for use by the charity are capitalised at cost, where acquired, or market value as determined by the Trustees where donated. They are stated in the financial statements at cost or original value less depreciation.

Individual fixed assets costing £500 or more are capitalised at cost and depreciated over their estimated useful lives.

Depreciation is calculated to write off the cost of tangible fixed assets at the following annual rates:

Freehold buildings - 50 years – straight line basis
Leasehold property - over the life of the lease
Fixtures and fittings - between 3 and 5 years.
Computer Equipment - 3 years

Freehold land held as part of a freehold property is depreciated over 50 years alongside the property where the cost has not been separated.

18

COUNCIL FOR WORLD MISSION (UK) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

1. PRINCIPAL ACCOUNTING POLICIES (continued)

h) Unlisted investments

All social investments are included in the financial statements at cost less impairment subject to being converted into the presentational currency at the balance sheet date where the investments are held in another currency. All social investments are reviewed for any evidence of impairment at the end of each reporting period.

i)

Current asset investments

Current asset investments represent those investments held in cash or low risk investments equivalent to cash to enable the company to meet its commitments in respect of grants approved not yet paid.

j)

Debtors and creditors

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.

k)

Funds accounting

Funds held by the company are:

Unrestricted general funds – these are funds which can be used in accordance with the charitable objects at the discretion of the Trustees. The element of unrestricted funds represented by unrealised gains on investments is separately disclosed as a revaluation reserve being the difference between the current market value of these investments and historic cost.

Designated funds – these are funds set aside by the Trustees out of unrestricted funds for specific future purposes or projects.

Restricted funds – these are funds that can only be used for particular restricted purposes within the objects of the Charity. Restrictions arise when specified by the donor or when funds have been raised for a particular restricted purpose within the objects of the Charity. Restricted funds in respect of the Retired Missionary fund is detailed in Note 10.4, where permanent capital is held in trust.

Permanent Endowment funds – these are a type of restricted fund where the capital must be held permanently by the Charity. Income arising from such endowed funds is applied in accordance with the terms of the fund.

Further explanation of certain funds is included in the notes to the accounts.

l) Valuation of investments

Listed investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value (mid-market value) at the Balance Sheet date. Investment gains and losses, whether realised or unrealised, are combined and shown in the heading ‘Net Gains/(losses) on investments’ in the Statement of Financial Activities.

Investment properties are measured at fair value at the Balance Sheet date. Investment properties are recorded at the Trustees’ estimate of market value at the year-end by reference to changes in house price indices, sale prices recently achieved in the same location, and periodic professional valuations. Changes in fair value are recognised in ‘Net Gains/(losses) on investments’ in the Statement of Financial Activities.

19

COUNCIL FOR WORLD MISSION (UK) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

1. PRINCIPAL ACCOUNTING POLICIES (continued)

m) Pensions

CWM makes discretionary payments to retired missionaries who served prior to the inception of a pension scheme or where service prior to July 1977 was not otherwise pensionable. These payments are funded from an endowment fund entitled CWM Fund for Retired Missionaries.

The Charity operates a defined contribution plan for the benefit of its employees. Contributions are expensed as they become payable. The liability and expenses are allocated as part of expenditure on charitable activities to the unrestricted funds.

n) Foreign currencies

Assets, liabilities, and results of overseas investments are translated at the rate ruling at the Balance Sheet date. Exchange differences arising are taken to the SOFA. Transactions in foreign currencies are translated at the rate ruling on date of the transaction.

o) Financial instruments

The Charity only holds basic Financial Instruments. The financial assets and financial liabilities of the Charity and their measurement basis are as follows:

Financial Assets – Other debtors, accrued income and the intercompany loan are basic financial instruments and are debt instruments measured at amortised cost as detailed in note 7. Prepayments are not financial instruments.

Investments – Managed investments and investment properties are classified as basic financial instruments and held at their fair value as detailed in note 5.1 and 5.3 respectively. Unlisted investments (social investments) as detailed in note 5.2 are basic financial instruments and are measured at cost less impairment. Current asset investments are measured at amortised cost as detailed in note 6.

Cash at bank – is classified as a basic financial instrument and is measured at face value.

Financial Liabilities – Grants payable, other creditors, accruals and balances owing to CWM Ltd are classified as basic financial instruments and are measured at amortised cost as detailed in note 8. Taxation and social security are not included in financial instruments disclosure.

p) Critical accounting judgements and key sources of estimation uncertainty

The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described in the accounting policies and are summarised below:

Valuation of investment properties – The Charity’s land and buildings are stated at their estimated fair value based on professional valuations or management estimates as disclosed in note 5.3.

Depreciation of freehold property includes depreciation of land as this is not considered to be material.

q) Operating leases

Rentals payable and receivable under operating leases are charged to the Statement of Financial Activities on a straight-line basis over the period of the lease.

20

COUNCIL FOR WORLD MISSION (UK) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

2.1
DONATIONS AND LEGACIES
2022
2021
£
£
Donations
75,471
92,788
Legacies
1,100
5,821
76,571
98,609
2.2
INVESTMENT INCOME
2022
2021
£
£
Rental income
110,944
112,849
Dividends from listed investments
3,387,816
3,856,198
Income from social investments
19,414
0
Income from bank interest
2,437
119
Other operational income
46,057
23,003
3,566,668
3,992,169
2.3
EXPENDITURE ON RAISING FUNDS
2022
2021
£
£
Investment manager fees
1,552,076
1,938,132
Included in investment managers’ fees is £421,994 paid to CWM’s investment advisors (2021:
£259,160).
2.4
EXPENDITURE ON CHARITABLE ACTIVITIES
2022
2021
£
£
Activities Undertaken Directly
58,270
62,546
Grant Funding of Activities (Note 2.4.1)
4,806,844
3,896,916
Support Costs (Note 2.4.2)
271,042
511,582
5,136,156
4,471,044		 2022
£
75,471
1,100		 2022
£
75,471
1,100		 2021
£
92,788
5,821
76,571 98,609
2022
£
110,944
3,387,816
19,414
2,437
46,057		 2021
£
112,849
3,856,198
0
119
23,003
3,566,668 3,992,169
2022
£
1,552,076		 2021
£
1,938,132
5,136,156 4,471,044

2.4.1 GRANTS FUNDING OF ACTIVITIES

During the year the Charity made grants to the programmes run by CWM Ltd. A description of some of these programmes are given in note 11.1 to the financial statements:

CWM Ltd - Mission Support Programme 2
CWM Ltd - Mission Support Programme 3
CWM Ltd - The Onesimus Project
CWM Ltd - Covid-19 Solidarity Fund
CWM Ltd - Unrestricted funds grants
CWM Ltd - Restricted funds grants		 2022
£
-
-
174,593
126,573
4,486,274
19,404		 2021
£
-
249,888
118,610
682,100
2,834,791
11,527
4,806,844 3,896,916

21

COUNCIL FOR WORLD MISSION (UK) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

2.4.2 SUPPORT COSTS
Finance, office administration & maintenance costs
Governance costs
Meeting costs
Auditors’ remuneration
(Over)/Under provision of prior year audit fees
2.5
STAFF COSTS
Analysis of staff costs included in support costs:
Staff costs comprise:
Salaries and wages
Social security costs
Pension costs
The average number of employees analysed by function was:
Support, finance and administration of the Charity		 2022
£
241,882
-
29,160
-		 2021
£
488,230
-
27,060
(3,708)
271,042 511,582
2022
£
84,150
9,522
9,761
2021

£

76,059

7,903

8,771
103,433
92,733
2022
Number
2
2021

Number

2

No employee earned over £60,000 during the year (2021: nil). The key management personnel of the Charity comprised management staff from the CWM Ltd Secretariat in Singapore and the Trustees. No Trustee received any remuneration during the year (2021: nil). Expenses related to Trustee meetings were met by CWM Ltd. Cost of time spent by the CWM Ltd Secretariat in overseeing and supporting CWM UK is borne by CWM Ltd and was not apportioned to the accounts of CWM UK as it was considered immaterial.

2.6 NET (INCOME)/EXPENDITURE

This is stated after charging
Depreciation
Auditors’ remuneration – external audit services
Auditors’ remuneration – (over)/under provision for prior year
external audit services
Losses/(Gain) on foreign currency exchange
Operating leases		 2022
£
66,926
29,160

-
413,239
9,036		 2021
£
68,913
27,060
(3,708)
(30,311)
9,221

3. TAXATION

The Charity is exempt from corporation tax on its charitable activities. The Charity is considered to have passed the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. As such, surpluses and gains are exempt from Corporation Tax provided they are applied for charitable purposes.

22

COUNCIL FOR WORLD MISSION (UK) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

4. TANGIBLE FIXED ASSETS
Freehold Leasehold
Land & Land & Fixtures &
Building Building Fittings Total
£ £ £ £
Cost
At 1 January 2022
 2,426,679
 315,596
 70,423
 2,812,698
Addition - - 1,381 1,381
Reclassification (89,838) - - (89,838)
Depreciation
At 1 January 2022 128,526 69,410 40,073 238,009
Charge for year 46,545 6,310 14,071 66,926
Reclassification (8,400) - - (8,400)
At 31 December 2022 166,671 75,720 54,144 296,535
Net book value 31 December 2022 2,170,170 239,876 17,660 2,427,706
Net book value 31 December 2021 2,298,153 246,186 30,350 2,574,689
Where the property was purchased and the land and buildings not separately identified, there is no
accurate way of measuring the cost of the land and building separately, therefore the separate value
of land and building has not been split out.
5.
FIXED ASSET INVESTMENTS
Summary
Managed investments (note 5.1)
Social investments (note 5.2)
Investment properties (note 5.3)
5.1
MANAGED INVESTMENTS
Market value as at 1 January
Additions at cost
Disposals
(Loss)/Gains on investments
Market value as at 31 December		 2022
£
160,448,665
3,907,356
2,942,900
167,298,921
2022
£
185,371,600
31,823,234
(35,011,878)
182,182,956
(21,734,291)
160,448,665		 2021
£
185,371,600
3,474,703
3,001,000
191,847,303
2021
£
168,560,607
28,912,655
(32,082,916)
165,390,346
19,981,254
185,371,600

Managed investments are held with 18 investment managers in a mixture of funds as detailed below. The historical cost of quoted investments was £141,256,889 (2021: £136,691,706). Cambridge Associate has been engaged by CWM UK since 2002 as an investment fund advisor and had become a fund manager with a discretionary mandate with effect from 2 Aug 2021.

Investments at the market value comprise:
Quoted equity shares
Bonds in governments/corporations
Global funds
Property Trust
Total		 2022
£
10,293,775
17,149,750
127,775,709
5,229,431
160,448,665		 2021
£
10,247,895
16,620,679
152,826,755
5,676,271
185,371,600

23

COUNCIL FOR WORLD MISSION (UK) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

5.2 SOCIAL INVESTMENTS

As at 1 January
Dividends re-invested
Unrealised gains/(loss) in exchange
As at 31 December		 2022
£
3,474,703
19,414
3,494,117
413,239
3,907,356		 2021
£
3,444,366
26
3,444,392
30,311
3,474,703

Included in social investments is an investment of £3,896,991 (2021: £3,464,365) in the share capital of Oikocredit, a worldwide co-operative society. Oikocredit was entered into in 2000 as a programmerelated investment. The value of this investment at 31 December 2022 represented the historical cost of share capital purchased (including reinvested dividends less any material impairment). Share capital is held in US dollars and Euro and translated into sterling at year end. There is also investment of £10,365 (2021 £10,338) in the Shared Interest Society.

5.3
INVESTMENT PROPERTIES
As at 1 January
Reclassification
Revaluation
As at 31 December		 2022
£
3,001,000
(320,600)
262,500		 2021
£
2,830,500
-
170,500
2,942,900 3,001,000

Investment properties consist of 5 properties (2021:6) throughout England. All are valued every 5 years and the 6 properties were valued at the market value during 2020, by Avison Young (Chartered Surveyors). At year end, the value of the investment properties were updated by referencing to changes in UK house price indices and sale prices recently achieved in the same location. The historic cost was £1,313,033 (2021: £1,563,33)

6.

CURRENT ASSET INVESTMENTS
Royal London Cash Plus Fund Y
Investment property held for sale
As at 1 January
Reclassification
Disposal
Net fair value (loss)/gain on current investments
As at 31 December		 2022
£
115,656
320,600		 2021
£
118,304
-
436,256 118,304
2022
£
118,304
320,600
-		 2021
£
2,432,712
-
(2,310,331)
438,904
(2,648)		 122,381
(4,077)
436,256 118,304

The historic cost of current asset investments was £152,583 (2021: £152,583)

24

COUNCIL FOR WORLD MISSION (UK) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

7.
DEBTORS
Intercompany balance
Other debtors
Prepayments
Accrued income
Property held for sale
8.
CREDITORS
Amounts falling due within one year
Other taxation and social security
Balances owing to CWM Ltd
Grants payable
Other creditors
Accruals		 2022
£
-
43,330
8,052
444,400
81,438		 2021

£

164,482

38,356

6,234

416,814

-
577,220
625,886
2022
£
10,743
3,350,204
145,153
29,283
59,544
2021

£

14,624

3,768,372

165,153

29,974

197,771
3,594,927
4,175,894

9. RELATED PARTY TRANSACTIONS

Of the six Trustees for the CWM UK, four are Trustees for CWM Ltd, and two are independent Trustees. Trustees may also sit on governing boards or make up the senior management of member churches that receive grants from CWM Ltd and they will declare an interest and abstain from voting and decision-making when applications and matters relating to related member churches are being discussed at Trustees meetings and meetings of the CWM Ltd Board. The grants payable to CWM Ltd are also shown in the note 2.4.1 and the amount outstanding as at year-end reporting date are shown in note 8 above.

CWM UK is the sole member and hence wholly controls the London Missionary Society Corporation (company registration number 00063934) and Commonwealth Missionary Society Corporation (company registration number 00054472). These companies are limited by guarantee and registered in England & Wales. They were both dormant throughout the current and previous financial year. The companies had nil net assets as at 31 December 2022, and there have been no transactions with CWM UK for a number of years. The registered office for both entities is 11 St. George’s Circus, London SE1 8EH.

10. ENDOWMENT AND RESTRICTED FUNDS

Permanent Endowment
Funds
Capital Only
(Notes 10.1 and 10.4)
Restricted Funds
Permanent Endowment
Funds – Income Only
(Note 10.2)
Income Only
(Note 10.3)
TOTAL		 Balance
1 January
2022
£
8,886,674		 Gross
Incoming
Resources
£
6,476		 Costs of
Generating
Income
£
(3,172)



Expenditure
and
Allocations
£
(58,270)



Investment
(Losses)
£
(41,101)		 Balance
31 December
2022
£
8,790,607
298,510
571,894		 62,783
4,349		 (30,756)
(2,130)
(19,404)
-
-

(2,581)		 311,133
571,532
870,404 67,132 (32,886) (19,404) (2,581) 882,665
9,757,078 73,608 (36,058) (77,674) (43,682) 9,673,272

25

COUNCIL FOR WORLD MISSION (UK) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

10. ENDOWMENT AND RESTRICTED FUNDS (continued)

PRIOR YEAR
Permanent Endowment
Funds
Capital Only
(Notes 10.1 and 10.4)
Restricted Funds
Permanent Endowment
Funds – Income Only
(Note 10.2)
Income Only (Note 10.3)
TOTAL		 Balance
1 January
2021
£
7,489,576		 Gross
Incoming
Resources
£
6,206		 Costs of
Generating
Income
£
(2,983)



Expenditure
and
Allocations
£
(62,546)



Investment
Gains
£
1,456,421
Balance
31 December
2021
£
8,886,674
280,731
479,188		 56,445
3,901		 (27,139)
(1,876)
(11,527)
-
-

90,681		 298,510
571,894
759,919 60,346 (29,015) (11,527) 90,681 870,404
8,249,495 66,552 (31,998) (74,073) 1,547,102 9,757,078

Income / investment gains include investment income together with realised and unrealised gains and losses on investment assets held directly by the funds, or on pooled assets allocated to the funds.

The Permanent Endowment comprised of the following at the beginning of the year (see Note 10.1 and 10.2 and 10.4):

The Restricted Funds comprised of the following at the beginning of the year (see Note 10.3):

26

COUNCIL FOR WORLD MISSION (UK) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

10.1 PERMANENT ENDOWMENT FUNDS – CAPITAL ONLY

Miss M L Barrett – pref.
Kavutalam, etc, South India
Harold Granger- Education
of Missionaries children etc.
CWM Missionaries Support
Fund
Sir James Tyler – conditional
Funds with balances less
than £10,000
Sub-total
Retired missionaries
(note 10.4)
Total
PRIOR YEAR
Miss M L Barrett – pref.
Kavutalam, etc, South India
Harold Granger- Education
of Missionaries children etc.
CWM Missionaries Support
Fund
Sir James Tyler – conditional
Funds with balances less
than £10,000
Sub-total
Retired missionaries
(note 10.4)
Total		 Balance
1 January
2022
£
181,050
4,426,136
3,237,035
118,858
20,750		 Income
£
-
-
-
-
-		 Raising
funds
£
-
-
-
-
-		 Expenditure
£
-
-
-
-
-





Investment
(Losses)
£
(839)
(20,984)
(14,609)
(763)
(63)		 Balance
31 December
2022
£
180,211
4,405,152
3,222,426
118,095
20,687
7,983,829 - - - (37,258) 7,946,571
902,845 6,476 (3,172) (58,270) (3,843) 844,036
8,886,674 6,476 (3,172) (58,270) (41,101) 8,790,607
Balance
1 January
2021
£
151,540
3,687,615
2,721,932
92,047
18,534


Income

£

-

-

-

-

-		 Raising
funds
£
-
-
-
-
-		 Expenditure
£
-
-
-
-
-
Investment
Gains

£

29,510

738,521

515,103

26,811

2,216		 Balance
31 December
2021
£
181,050
4,426,136
3,237,035
118,858
20,750
6,671,668
-		 - -
1,312,161		 7,983,829
817,908
6,206		 (2,983) (62,546) 144,260 902,845
7,489,576
6,206		 (2,983) (62,546) 1,456,421 8,886,674

27

COUNCIL FOR WORLD MISSION (UK) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

10.2 PERMANENT ENDOWMENT FUNDS – INCOME ONLY (RESTRICTED FUNDS)

Miss M L Barrett – pref.
Kavutalam, etc, Sth India
Harold Granger- Education of
Missionaries children etc.
CWM Missionaries Support Fund
Sir James Tyler – conditional
Funds with balances less than
£10,000
PRIOR YEAR
Miss M L Barrett – pref.
Kavutalam, etc, Sth India
Harold Granger- Education of
Missionaries children etc.
CWM Missionaries Support Fund
Sir James Tyler – conditional
Funds with balances less than
£10,000		 Balance
1 January
2022
£
5,054
231,524
11,506
50,227
199


Income

£

1,416

35,359

24,617

1,285

106
Raising
funds

£

(695)

(17,321)

(12,059)

(629)

(52)		 Expenditure
£
-
(7,899)
(11,505)
-
-		 Balance
31 December
2022
£
5,775
241,663
12,559
50,883
253
298,510
62,783
(30,756)		 (19,404) 311,133
Balance
1 January
2021
£
4,393
215,240
11,319
49,629
150


Income

£

1,270

31,769

22,158

1,153

95
Raising
funds

£

(609)

(15,275)

(10,654)

(555)

(46)		 Expenditure
£
-
(210)
(11,317)
-		 Balance
31 December
2021
£
5,054
231,524
11,506
50,227
199
280,731
56,445
(27,139)		 (11,527) 298,510

28

COUNCIL FOR WORLD MISSION (UK) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

10.3 RESTRICTED FUNDS

Ivy Phyllis Read-
Scholarship fund
Robert Cochrane-work in
India
Widows and orphans
Candidate training
-Funds with balances less
than £10,000		 Balance
1 January
2022
£
32,483
135,101
353,926
28,228
22,156		 Income
£
247
1,027
2,691
215
169		 Raising
funds
£
(121)
(503)
(1,318)
(105)
(83)
Expenditure

£

-

-

-
-
-		 Investment
(Losses)
£
(146)
(609)
(1,597)
(127)
(102)
Balance
31 December
2022
£
32,463
135,016
353,702
28,211
22,140
571,894 4,349 (2,130) - (2,581) 571,532
PRIOR YEAR
Ivy Phyllis Read-
Scholarship fund
Robert Cochrane-work in
India
Widows and orphans
Candidate training
Funds with balances less
than £10,000		 Balance
1 January
2021
£
27,218
113,200
296,553
23,644
18,573		 Income
£
222
922
2,414
193
150		 Raising
funds
£
(107)
(443)
(1,161)
(93)
(72)

Expenditure

£

-

-

-

-
-		 Investment
Gains
£
5,150
21,422
56,120
4,484
3,505
Balance
31 December
2021
£
32,483
135,101
353,926
28,228
22,156
479,188 3,901 (1,876) - 90,681 571,894

10.4 CWM FUND FOR RETIRED MISSIONARIES

CWM has continued to use the power, granted by the Charity Commission in an order of 2007, to deplete the unapplied total return (interest, dividends and realised capital gain) of this fund in paying pensions to retired missionaries who had served prior to the inception of a pension scheme or where service prior to July 1977 was not otherwise pensionable. The book value in December 1992 of the assets which subsequently composed the Fund is deemed to be the permanent capital held on trust for investment (£684,010). All subsequent increases in the value of the permanent capital, whether arising from interest or dividends or realised capital gain on disposal are held as unapplied total return until formally transferred to the trust for application. For 2022, the amount approved for application was at £58,270) for 14 retired missionaries. After this application, the balance of total unapplied returns stood at £160,026 as at 31 Dec 2022. The Finance Committee has reviewed this balance visà-vis future returns and expected payments and was satisfied that there will be sufficient unapplied returns to service future payments.

CWM Fund for Retired Missionaries (Total Return)

CWM Fund for Retired Missionaries (Total Return)
Value of unapplied total return at 1 January 2022
Total return for the year
Value applied during 2022
Value unapplied total return at 31 December 2022
Permanent capital
Total fund		 £
218,835
(539)
(58,270)
160,026
684,010
844,036

29

COUNCIL FOR WORLD MISSION (UK) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

10.4 CWM FUND FOR RETIRED MISSIONARIES (continued)

Prior Year

Prior Year
Value of unapplied total return at 1 January 2021
Total return for the year
Value applied during 2021
Value unapplied total return at 31 December 2021
Permanent capital
Total		 £
133,898
147,483
(62,546)
218,835
684,010
902,845

11. UNRESTRICTED FUNDS

General Fund
Designated Fund
Total unrestricted
PRIOR YEAR
General Fund
Designated Fund
Total unrestricted		 Balance at
1 January
2022
£
172,068,348
13,822,051
Income
£
3,569,631
-
Income
£
3,569,631
-		 Expenditure
£
(6,273,334)
(301,166)		 Expenditure
£
(6,273,334)
(301,166)
Investment
(Loss)

£

(21,017,518)
-
Investment
(Loss)

£

(21,017,518)
-		 Balance at
31 December
2022
£
148,347,127
13,520,885
161,868,012
Balance at
31 December
2021
£
160,512,842
25,377,557
185,890,399 3,569,631 (6,574,500) (21,017,518)
Balance at
1 January
2021
£
148,887,990
20,650,402
Income
£
4,024,226
-		 Expenditure
£
(5,252,507)
(1,050,598)
Transfers

£

(5,777,753)
5,777,753		 Investment
Gain
£
18,630,886
-
169,538,392 4,024,226 (6,303,105) 0 18,630,886 185,890,399

11.1 DESIGNATED FUNDS

Mission Support Programme 2
Mission Support Programme 3
The Onesimus Project
Covid-19 Solidarity Fund
PRIOR YEAR
Mission Support Programme 2
Mission Support Programme 3
Legacies of Slavery Programme
Covid-19 Solidarity Fund		 Balance at
1 January
2022
£
79,710
1,874,735
11,468,057
399,549
New
Designation/
Transfers
£
-
-
-
-


Utilised

£

-

-

(174,593)

(126,573)
Balance at 31
December
2022

£

79,710

1,874,735

11,293,464
272,976
13,822,051 -
(301,166)		 13,520,885
Balance at
1 January
2021
£
79,710
2,124,623
17,364,420
281,649
New
Designation/
Transfers
£
-
-
(5,777,753)
800,000


Utilised

£

-

(249,888)

(118,610)

(682,100)
Balance at 31
December
2021

£

79,710

1,874,735

11,468,057
399,549
19,850,402 (4,977,753) (1,050,598) 13,822,051

30

COUNCIL FOR WORLD MISSION (UK) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

12. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Fund balances at 31
December 2022 are
represented by:
Tangible fixed assets
Investments
Current assets
Current liabilities
Total Net Assets
Prior Year
Fund balances at 31
December 2021 are
represented by:
Tangible fixed assets
Investments
Current assets
Current liabilities
Total Net Assets		 Unrestricted
Funds
£
2,427,706
144,104,764
5,409,584
(3,594,927)		 Designated
Funds
£
-
13,520,885
-
-
Endowment and
Restricted
Funds

£

-

9,673,272

-

-		 Total Funds
£
2,427,706
167,298,921
5,409,584
(3,594,927)
148,347,127 13,520,885
9,673,272		 171,541,284
Unrestricted
Funds
£
2,574,689
168,268,174
5,401,379
(4,175,894)		 Designated
Funds
£
-
13,822,051
-
-

Endowment and
Restricted
Funds

£

-

9,757,078

-

-		 Total Funds
£
2,574,689
191,847,303
5,401,379
(4,175,894)
172,068,348 13,822,051
9,757,078		 195,647,477

31

COUNCIL FOR WORLD MISSION (UK) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

13. PENSION SCHEMES

Unfunded scheme

Discretionary pensions amounting to £58,270 in 2022 (2021: £62,546) were paid from the Retired Missionaries Fund to missionaries previously employed by CWM UK and not part of the defined benefit scheme described in Note 10.4. The Retired Missionaries Fund is expected to have sufficient funds to meet any commitments made to these individuals.

14. ULTIMATE PARENT ENTITY

The Charity’s ultimate parent entity is CWM Ltd, with business address at 114 Lavender Street, #12-01 CT Hub 2, Singapore 338729, Singapore. CWM Ltd is a registered charity [UEN 201206146Z] limited by guarantee in Singapore. CWM Ltd carries out all of the direct charitable activities previously undertaken by CWM UK, supporting the worldwide partnership of churches to carry out God’s mission locally. CWM Ltd is the sole member of CWM UK and has 100% control over CWM UK. Consolidated accounts can be obtained from Accounting and Corporate Regulatory Authority or ACRA (www.acra.gov.sg).

15. PRIOR PERIOD STATEMENT OF FINANCIAL ACTIVITIES

Note
Income and endowments from:
Donation and legacies
2.1
Investment income
2.2
Expenditure on:
Raising funds
2.3
Charitable activities
2.4
Operating Surplus/(Deficit)
Net gains/(losses) on investments
Net Income
Net Movement in Funds
Reconciliation of funds:
Total Funds At 1 January 2021
Total Funds At 31 December 2021		 Unrestricted
Funds
£
98,609
3,925,617
4,024,226
1,906,134
4,396,971
6,303,105
(2,278,879)
18,630,886
16,352,007
169,538,392
185,890,399		 Restricted
Funds
£
-
60,346
60,346
29,015
11,527
40,542
19,804
90,681
110,485
759,919
870,404		 Endowment
Funds
£
-
6,206		 Total 2021
Funds
£
98,609
3,992,169
6,206 4,090,778
2,983
62,546		 1,938,132
4,471,044
65,529 6,409,176
(59,323) (2,318,398)
1,456,421 20,177,988
1,397,098
7,489,576		 17,859,590
177,787,887
8,886,674 195,647,477

All income and expenditure were derived from continuing activities.

The statement of financial activities includes all gains or losses recognised in the year.

32

COUNCIL FOR WORLD MISSION (UK) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

16. LEASING COMMITMENTS

CWM UK had the following future minimum lease payments under non-cancellable operating leases for the Equipment as follows:

Less than one year
Between one and five years		 Equipment
2022
2021
£
£
3,031
8,041
3,771
5,650		 Equipment
2022
2021
£
£
3,031
8,041
3,771
5,650
6,802 13,691

17. CASH FLOWS FROM OPERATING ACTIVITIES

CASH FLOWS FROM OPERATING ACTIVITIES
Note
Profit/(Loss) before tax
Write-off of tangible fixed assets
Depreciation
4
(Gains)/losses on managed investments
5.1
(Gains)/losses on property investments
5.3
(Gains)/losses on current assets investments
6
(Gains)/losses on foreign exchange
Investment income – Dividends and Interest
2.2
Investment income – Rent
2.2
Investment income – Non-cash dividends reinvested
2.2
(Increase)/decrease in debtors
7
Increase/(decrease) in creditors/provisions
8
Net cash from operating activities
2022
£
(24,106,193)
-
66,926
21,734,291
(262,500)
2,648
(413,239)
(3,455,724)
(110,944)
(19,414)
48,666
(580,967)		 2021
£
17,859,592
-
68,913
(19,981,254)
(170,500)
4,077
(30,311)
(3,879,320)
(112,849)
(26)
407,199
(547,698)
(7,096,450) (6,382,177)

18. COMPANY INFORMATION

The Charity is a private limited company (registered number 4758640), which is incorporated and domiciled in the UK and is a public benefit entity. The address of the registered office is 10 Queen Street Place, London EC4R 1BE.

33