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2020-08-31-accounts

Charity Registration No. 1107967

Company Registration No. 5247784 (England and Wales)

THE LEADERS OF WORSHIP AND PREACHERS TRUST ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

THE LEADERS OF WORSHIP AND PREACHERS TRUST

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees John Griffiths
David Latter
Andrew Moreman (resigned 25 March 2020)
Charlie Styles
David Tuckett (appointed 10 December 2019)
Secretary lan Buchanan
Charity number 1107967
Company number 5247784
Registered office Unit 14 Orbital 25 Business Park
Dwight Road
Watford
Hertfordshire
WD18 9DA
Independent examiner Gary Howard FCA
Howard Wilson Chartered Accountants
36 Crown Rise
Watford
Hertfordshire
WD25 ONE
Solicitors Stone King LLP
Boundary House
91 Charterhouse Street
London
EC1M 6HR
Investment advisors Coutts & Co.
440 Strand
London
WC2R0QS

THE LEADERS OF WORSHIP AND PREACHERS TRUST

CONTENTS

Page
Trustees' report 1-6
Statement of trustees’ responsibilities f
Independent examiner's report 8
Statement of financial activities 9-10
Balance sheet 11-12
Statement ofcash flows 13
Notestothefinancialstatements 14-31

THE LEADERS OF WORSHIP AND PREACHERS TRUST

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 AUGUST 2020

The trustees present their report and financial statements for the year ended 31 August 2020.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charitable company's Memorandum and Articles of Association, the Companies Act 2006 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)".

Objectives, aims and activities

Charitable objects

Aims of charity

LWPT is an ecumenical charity which aims to achieve its objectives by providing resources for those involved in preaching, by supporting training opportunities for those involved in preaching and by offering a grant programme of vocational and hardship grants.

Main objectives for the year

Strategies for achieving objectives

LWPT is an organisation that has undergone a significant period of change. Over the last few years it has gradually focused on three areas of work, resources, grants and training and now is in a strong position to work to achieve increased activity within each of these areas. The key strategies for the year will be:

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THE LEADERS OF WORSHIP AND PREACHERS TRUST TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020 ee

How we assess success against our objectives

All the work that we carry out meets our charitable objective and we measure the success by ensuring that our materials are made available to all that need or require them, by publicising our work through adopting a comprehensive marketing strategy and by delivering a comprehensive grants programme to all those that meet the criteria for LVWPT grants. Financial viability is of importance and we aim to achieve a budget that meets future commitments.

Statement on compliance with Charity Commission guidance on public benefit

When deciding on activities and events, LWPT's Trustees pay due regard to the Charity Commission's guidance on public benefit as set out in section 17 of the Charities Act 2011 and the published advice of the Charity Commission.

Strategic report

The description under the headings “Achievements and performance” and "Financial review" meets the company law requirements for the trustees to present a strategic report.

Achievements and performance

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THE LEADERS OF WORSHIP AND PREACHERS TRUST

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

Fundraising achievements

The launch of the Membership Scheme in 2016 is now seeing results as the numbers increase through a mixture of promotion to gain new members and indeed word of mouth due to the growing reputation of Preach magazine. LWPT has raised the importance of appeals for keeping our supporter’s prayers, time and money support up-to-date. The summer of 2020 saw our highest ever income from an appeal with £18k income received,

investment performance

The Trustees appointed Coutts as the charity's investment managers in 2010. The investment policy is normally reviewed on an annual basis, last review June 2020, when the investment manager reports investment performance to the Trustees.

LWPT pursues a policy of ethical investment. The fund managers are instructed to invest in investments that will maximise income returns within the ethical policy. Major changes in financial markets notwithstanding, the investment returns during the year have been satisfactory.

Financial review

The financial performance has been satisfactory in the period being reported and the level of donations from supporters has remained sound, we remain truly grateful to all those that donate to LWPT.

During the year, the charity received legacy income of £369,688 (2019: £300,952), of which £224,178 (2019: £177,104) was for LWPT general funds and £144,805 (2019: £123,848) was in respect of the Methodist Local Preachers Mutual Aid Association (LPMA) restricted fund. We give grateful thanks to those who have remembered LWPT and LPMA in this way.

The Trustees believe that growing revenue more than covers expenditure and that, over and above a contingency buffer, some of these reserves could be used for appropriate activities.

The budget for 2020/21 has been approved by the Trustee Board and is subject to regular monitoring and review.

LWPT is responsible for 10% of the deficit owned by the LPMA Pension scheme which is a closed defined benefit pension scheme. The Trustees of the pension scheme have agreed with the employers a plan to remove the pension deficit from the companies operating surpluses. The pension deficit is carefully monitored by Broadstone who as well as administering the pension, provide investment advice for the Trustees. The recovery plan is reviewed formally by the Trustees at each pension valuation and takes regard of the need for an expeditious recovery whilst not damaging the viability of the charitable companies. In line with the actuarial review during 2017, the Trustees agreed to increase monthly contributions towards the deficit payments from 1 April 2020 to £1,282 per month.

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THE LEADERS OF WORSHIP AND PREACHERS TRUST TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

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||||||||||||||||||| |---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---| |In|order|to|present|a|clear|picture|as|to|the|financial|development|of|LWPT,|some|metrics|have|been| |introduced|for key|areas|and|these|will|be|reviewed|throughout|the|year:| |2019|to}|2018|to| |2020|2019| |PCCtC|CCOSC*| |[Grants|made|tocharities from|LPMAfunds|[||8,000||200,000]|-100.0||87.5| |Pension rectification|costs fromLPMAfunds|||70,000,|=||=||toot|SC|

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From the middle of August 2019, LWPT were advised that they needed to fund a further deficit in the MLPMAA Pension Fund, due to the fund not being closed appropriately in 2004. LWPT need to assign up to £115,000 from its funds.

Bible Month project. 12 To have a staff and Trustee away day so that a long-term strategic plan can be produced.

LPMA Funds

The LWPT Trustees are de facto the Trustees of LPMA. LPMA is a shell charity, being the original charity, which agreed the formation of LWPT. Funds that come to LPMA are held by LWPT as restricted funds and are only spent according to the original objectives of LPMA. These funds mainly comprise of legacies made by longstanding supporters. All requests for funding are considered by the Trustees and must be made bya letter of application and due to LWPT’s past relationship with LWPHomes, applications for funding of their eligible projects are encouraged. During 2018-19 a new grant scheme was launched to distribute the funds in a more efficient manner.

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THE LEADERS OF WORSHIP AND PREACHERS TRUST TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

Reserves Policy

The Trustees consider that the unrestricted reserves should be maintained at a level equivalent to at least 3 month's running costs to enable an orderly wind down in the event of the charity's closure. This amount would currently be £84,250 (2019: £84,000): current reserves are at the required level.

Our total reserves are: 852 871
Of which:
Amount restricted to donor nominated purposes 239,541
Amount available to meet current operations 261,330
Amountrequiredtofundpensiondeficit 352,000

The level of reserves held at 31 August 2020 is shown on the Balance Sheet.

Risk management

The Trustees have agreed procedures which address internal risks that the charity may face. These include processes for the authorisation of financial transactions and record keeping which are carried out by the staff on a day to day basis. In addition, the Trustees have considered other risks where the charity may be exposed and have taken steps to mitigate these risks. These risks include damage to reputation, criminal acts, data loss, health and safety, investment performance, changes in personnel and funding sources. All staff receive training in GDPR procedures and are aware of the importance of keeping personal data safely and they understand the steps that must be taken should there be a breach of data protection.

COVID-19

Before the end of the accounting year the COVID-19 pandemic spread throughout the World affecting all aspects of daily life. Although this had less effect on the results of this period the Trustees considered the impact this may have on the affairs of the charitable company, revising operational and financial plans for the year ahead accordingly.

The Trustees will seek to regularly review the impact of the pandemic on the charity and its finances. It is too early to quantify the impact of the pandemic on the next accounting period, but the Trustees have agreed regular reforecasting of the 2020/21 budget, alongside an updated income strategy which shall be monitored regularly, with the flexibility necessary to manage the charitable company through this period. The Trustees remain confident that the charitable company will be able to deliver significantly against our aims and objects within the resources that will be available.

Structure, governance and management

The Company was incorporated as a company limited by guarantee on 1 October 2004 and as such has no share capital. It is governed by a Memorandum and Articles of Association which was reviewed and updated in August 2014.

The Company was registered as a charity on 4 February 2006 by the Charity Commission for England and Wales.

The Directors of the charitable company (‘the charity’) are its Trustees for the purpose of charity law and throughout this report are referred to as the Trustees. A list of the Trustees is given on the Legal and Administration page 1 of the financial statements. Trustees may hold office for a term of up to three years from the date of his or her appointment. One third (or the number nearest to one third) of the Trustees must retire at each AGM with those longest in office retiring first. Eligible Trustees may be reappointed for a maximum of three, three year terms after which there must be a one year break before reappointment.

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THE LEADERS OF WORSHIP AND PREACHERS TRUST TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020 Se a

Trustees, when complete, shall consist of at least three and not more than eight persons appointed as follows: - one person appointed by the Methodist Council: - one person appointed by the Wesleyan Reform Union: - up to three persons elected by the Members by ordinary resolution at an AGM, or by postal or electronic ballot in accordance with Article 12: and - up to three persons appointed by other Local Ecumenical Partnerships invited by the Trustees to make appointments.

To ensure that Trustees from a wide range of backgrounds are recruited, vacant positions are advertised on free volunteer recruitment sources such as Do-it.org and the NVCO Trustee bank. Potential Trustees first meet with senior LWPT staff and then are invited to meet with Trustees.

New Trustees are provided with copies of the Charity Commission leaflets CC3 & CC3a and key LWPT documents including the Memorandum and Articles of Association. All Trustees are advised of free training opportunities through companies such as Stone King.

All LWPT Trustees are volunteers and the only payment they receive is for “out of pocket” expenses such as travel expenses.

Policy decisions concerning the charity are made by the Trustees as a whole and they delegate the day to day running of the charity to the Chief Executive.

Statement of trustees' responsibilities

The trustees, who are also the directors of The Leaders of Worship and Preachers Trust for the purpose of company law, are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial Statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees’ report was approved by the Board of Trustees.

David Latter Trustee Dated: 23 March 2021

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THE LEADERS OF WORSHIP AND PREACHERS TRUST

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

FOR THE YEAR ENDED 31 AUGUST 2020

The trustees, who are also the directors of The Leaders of Worship and Preachers Trust for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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THE LEADERS OF WORSHIP AND PREACHERS TRUST

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF THE LEADERS OF WORSHIP AND PREACHERS TRUST

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| report to the trustees on my examination of the financial statements of The Leaders of Worship and Preachers Trust (the charitable company) for the year ended 31 August 2020.

Responsibilities and basis of report

As the trustees of the charitable company (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).

Having satisfied myself that the financial statements of the charitable company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, | report in respect of my examination of the charitable company's financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination | have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

Since the charitable company’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. | confirm that | am qualified to undertake the examination because | am a member of The Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.

| have completed my examination. | confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

| 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.

“Gary Howard FCA

Howard Wilson Chartered Accountants 36 Crown Rise Watford Hertfordshire WD25 ONE

Dated: 26 March 2021

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THE LEADERS OF WORSHIP AND PREACHERS TRUST

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 AUGUST 2020

Current financial year

Current financial year
Unrestricted Restricted Total Total
funds funds
2020 2020 2020 2019
Notes £ £ £ £
Income and endowments from:
Donations and legacies 3 431,981 145,028 577,009 512,689
Charitable activities 4 14,280 - 14,280 6,648
Other trading activities 5 12,135 - 12,135 7,667
Investments 6 26,919 796 21,715 29,055
Other income 7 3,000 - 3,000 -
Total income 488,315 145,824 634,139 556,059
Expenditure on:
Raising funds 8 15,148 - 15,148 18,317
Charitable activities 9 322 466 74,370 396,836 322,787
Total expenditure 337,614 74,370 411,984 341,104
Net gains/(losses) on investments 12 (4,272) - (4,272) 2,781
Net income / (expenditure) forthe year 146,429 71,454 217,883 217,736
Other recognised gains and losses
Actuarial loss on defined benefit pension schemes (75,122) - (75,122) (74,681)
Net movement in funds 71,307 71,454 142,761 143,055
Fund balances at 1 September 2019 542 023 168,087 710,110 567,055
Fundbalancesat31August2020 613,330 239,541 852,871 710,110

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

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

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THE LEADERS OF WORSHIP AND PREACHERS TRUST

STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 AUGUST 2020

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Prior financial year
Unrestricted Restricted Total
funds funds
2019 2019 2019
Notes £ £ £
Income and endowments from:
Donations and legacies 3 388,355 124,334 512,689
Charitable activities 4 6,648 - 6,648
Other trading activities 5 7,667 - 7,667
Investments 6 28,657 398 29,055
Total income 431,327 124,732 556,059
Expenditure on:
Raising funds 8 18,317 = 18,317
Charitable activities 9 314,911 7,876 322,787
Total expenditure 333,228 7,876 341,104
Net gains/(losses) on investments 12 2,781 - 2,781
Net income / (expenditure) forthe year 100,880 116,856 217,736
Other recognised gains and losses
Actuarial loss on defined benefit pension schemes (74,681) - (74,681)
Netmovement in funds 26,199 116,856 143,055
Fund balances at
1 September2019		 515,824 51,231 567,055
Fundbalancesat31August2020 542,023 168,087 710,110

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

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

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THE LEADERS OF WORSHIP AND PREACHERS TRUST

BALANCE SHEET

AS AT 31 AUGUST 2020

2020 2019
Notes £ a £ £
Fixed assets
Investment properties 13 225,000 225,000
Investments 14 347,158 337,351
572,158 562,351
Current assets
Debtors 15 29,485 79,636
Cash at bank and in hand 632,510 390,848
661,995 470,484
Creditors: amounts falling due within
one year 16 (29,282) (30,725)
Net current assets 632,713 439,759
Total assets less current liabilities 1,204,871 1,002,110
Provisions for liabilities (352,000) (292,000)
Net assets 852,871 710,110
Income funds
Restricted funds 19 239,541 168,087
Unrestricted funds
General unrestricted funds 929,654 794,862
Revaluation reserve 35,676 39,161
Pension reserve (352,000) (292,000)
613,330 542 023
852,871 710,110

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THE LEADERS OF WORSHIP AND PREACHERS TRUST

BALANCE SHEET (CONTINUED) AS AT 31 AUGUST 2020 a i A I Se es

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 August 2020.

The trustees acknowledge their responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company. The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

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The financial statements were approved by the Trustees on 23 March 2021
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David Latter “/ John Griffiths .
Trustee = Trustee
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Company Registration No. 5247784

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THE LEADERS OF WORSHIP AND PREACHERS TRUST

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 AUGUST 2020

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|||||||||| |---|---|---|---|---|---|---|---|---| |2020|2019| |Notes|£|£|£|5| |Cash|flows|from|operating|activities| |Cash|generated|from|operations|23|228,026|114,442| |Investing|activities| |Purchase|of|investments|(155,377)|(95,296)| |Proceeds|on|disposal|of|investments|129,735|88,149| |Net|movement|on|cash|balance|in| |investment|portfolio|11,563|57| |Investment|income|27,7158|29,055| |Net|cash|generated|from|investing| |activities|13,636|21,965| |Net|cash|used|in|financing|activities|-|-| |Net|increase|in|cash|and|cash|equivalents|241,662|136,407| |Cash|and|cash|equivalents|at|beginning|of year|390,848|254,441| |Cash|and|cash|equivalents|at|end|of year|632,510|390,848|

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THE LEADERS OF WORSHIP AND PREACHERS TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 teeth a Nn 1 Accounting policies

Charity information

The Leaders of Worship and Preachers Trust is a private company limited by guarantee incorporated in England and Wales. The registered office is Unit 14 Orbital 25 Business Park, Dwight Road, Watford, Hertfordshire, WD18 9DA.

1.1. Accounting convention The financial statements have been prepared in accordance with the charitable company's Memorandum and Articles of Association, the Companies Act 2006 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 charitable company is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the charitable company. Monetary amounts 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.

At the time of approving the financial statements, the trustees have a reasonable expectation that the charitable company 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.

As at 31 December 2019 China had alerted the World Health Organisation (WHO) of several cases of an unusual form of pneumonia in Wuhan. Substantive information about what has now been identified as Coronavirus (or COVID-19) came to light in early 2020.

In the opinion of the Trustees, despite the potential effects of the COVID-19 outbreak, it is nonetheless considered that the Going Concern basis of the preparation of the financial statements remains appropriate. Similarly, in the opinion of the Trustees, no adjustments are required to the results or carrying values of assets or liabilities declared in these financial statements, and none have been made.

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 charitable company.

The charity's policy is to recognise all income on a receivable basis.

Donations are recognised in the financial statements when the charity becomes beneficially entitled to the income. Where claimable, this also includes Gift Aid reclaimed.

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THE LEADERS OF WORSHIP AND PREACHERS TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

(Continued)

Legacies are included in the financial statements when receivable, when there is notification from the personal representatives of the amount, or when there is sufficient documentation to allow a reasonable estimate of the amount to be received.

This includes pecuniary legacies with a life interest held by another party. In some cases this may result in the income being accrued for many years before actual receipt of the cash. In the case of residual legacies, income is not accounted for until the estate’s accounts are finalised or the income has been received by The Leaders of Worship and Preachers Trust as it is only then that the amount can be reliably ascertained.

Investment income is accounted for on an accruals basis.

A monetary value of services provided by the volunteers is not included in the Statement of Financial Activities.

The charitable company also makes vocational grants which support the training and education costs of those leading worship and preaching. These grants are made in response to applications for support which are assessed and awarded. Payment is made after taking up references. The grants are made in support of the primary objects of the charitable company.

The charitable company makes hardship grants to individuals in response to certified applications. The grants are also made in support of the primary objects of the charitable company.

Grants are made from LPMA restricted funds to organisations and individuals who meet the objects as set out in the LPMA rule book on an application and assessment basis.

Expenditure is included in the Statement of Financial Activities on an accruals basis inclusive of VAT.

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:

Fixtures and fittings over 5 years Computers over 3 years

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 Investment properties Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.

{Property rented to a group entity is accounted for as tangible fixed assets.]

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THE LEADERS OF WORSHIP AND PREACHERS TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020 aeeeen ee ee

(Continued)

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.

1.9 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.

1.10 Financial instruments The charitable company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charitable company's balance sheet when the charitable company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

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 payments 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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charitable company's contractual obligations expire or are discharged or cancelled.

1.11 Employee benefits The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received, Termination benefits are recognised immediately as an expense when the charitable company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

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THE LEADERS OF WORSHIP AND PREACHERS TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

1 Accounting policies

(Continued)

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

The cost of providing benefits under defined benefit plans is determined separately for each plan using the projected unit credit method, and is based on actuarial advice.

The change in the net defined benefit liability arising from employee service during the year is recognised as an employee cost. The cost of plan introductions, benefit changes, settlements and curtailments are recognised as incurred.

The net interest element is determined by multiplying the net defined benefit liability by the discount rate, taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. The net interest is recognised in income/(expenditure) for the year.

Remeasurement changes comprise actuarial gains and losses, the effect of the asset ceiling and the return on the net defined benefit liability excluding amounts included in net interest. These are recognised immediately in other recognised gains and losses in the period in which they occur and are not reclassified to income/(expenditure) in subsequent periods.

The net defined benefit pension asset or liability in the balance sheet comprises the total for each plan of the present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds), less the fair value of plan assets out of which the obligations are to be settled directly. Fair value is based on market price information, and in the case of quoted securities is the published bid price. The value of a net pension benefit asset is limited to the amount that may be recovered either through reduced contributions or agreed refunds from the scheme.

2 Critical accounting estimates and judgements

In the application of the charitable company’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.

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THE LEADERS OF WORSHIP AND PREACHERS TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

3 Donations and legacies

----- Start of picture text -----
|||||||||| |---|---|---|---|---|---|---|---|---| |Unrestricted|Restricted|Total|Unrestricted|Restricted|Total| |funds|funds|funds|funds| |2020|2020|2020|2019|2019|2019| |£|£|£|£|£|£| |Donations|and|gifts|207,098|223|207,321|211,251|486|211,737| |Legacies|receivable|224,883|144,805|369,688|177,104|123,848|300,952| |431,981|145,028|577,009|388,355|124,334|512,689| |Charitable|activities| |2020|2019| |£|£| |Ancillary|trading|income|14,280|6,648|

----- End of picture text -----

4 Charitable activities

For the year ended 31 August 2019

Ancillary trading income

Analysis by fund Unrestricted funds

2019 £ 6,648 6,648

----- Start of picture text -----
||||| |---|---|---|---| |Unrestricted|Unrestricted| |funds|funds| |2020|2019| |£|F| |Merchandising|income|12,135|7,667|

----- End of picture text -----

-18-

THE LEADERS OF WORSHIP AND PREACHERS TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

6 Investments

Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds
2020 2020 2020 2019 2019 2019
£ £ £ £ £ £
Rental income 19,423 - 19,423 19,793 - 19,793
Dividends and fixed
interest 6,745 613 7,358 7,427 398 7,825
Interest receivable 751 183 934 1,437 - 1,437
26,919 796 STTIS 28,657 398 29,055

‘cE Other income

Other income

Unrestricted Total funds 2020 2019 £ £ 3,000 -

-19-

THE LEADERS OF WORSHIP AND PREACHERS TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

8 Raising funds

Unrestricted Unrestricted
funds funds
2020 2019
£ £
Fundraising and publicity
Advertising 10 959
Other fundraising costs 9,605 11,858
Fundraising and publicity 9,615 12,817
Trading costs
Other trading activities 4,455 4,264
Investment management 1,078 1,236
15,148 18,317

296

THE LEADERS OF WORSHIP AND PREACHERS TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

9 Charitable activities

2020 2019
£ £
Staff costs 135,366 132,683
Depreciation - 1,021
Other staff costs 4,249 3,495
Grants and financial assistance 25,246 26,200
Premises costs 20,135 18,589
Repairs and maintenance costs 4,591 3,745
Office costs 8,287 6,575
Computer costs 21,190 10,261
Printing resources 44,459 51,450
Travel and subsistence costs 3,884 4,723
General expenses 930 1,051
Legal and professional costs 51,514 51,394
Pension scheme rectification costs 70,000 -
Bank charges and other finance costs 4,687 3,980
Governance costs 2,298 2,620
396,836 317,787
Capital Grants to Institutions - 5,000
396,836 322,787
Analysis by fund
Unrestricted funds 322,466
Restricted funds 74,370
396,836
Unrestricted funds 314,911
Restricted funds 7,876
322,787

Governance costs comprise independent examiners fees £1,800 (2019: £1,800), trustee meeting costs £498 (2019: £820). In addition the independent examiners charged £3,000 (2019: £3,000) for accountancy services.

10 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charitable company during the year.

ee

THE LEADERS OF WORSHIP AND PREACHERS TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020 aeeec 11. Employees

Number of employees

The average monthly number of employees during the year was:

2020 2019
Number Number
Administrative 6 6
Employment costs 2020 2019
£ £
Wages and salaries 122,164 119,648
Social security costs 6,701 7,350
Other pension costs 6,501 5,685
135,366 132,683

There were no employees whose annual remuneration was £60,000 or more.

  1. Net gains/(losses) on investments
Unrestricted Unrestricted
funds funds
2020 2019
£ £
Revaluation ofinvestments 362 5,674
Gain/(loss) on sale of investments (4,634) (2,893)
(4,272) 2,781
13 Investment property
2020
4
Fair value
At1September2019and31August2020 225,000

The investment property is Flats 20 to 24 Southcroft, Psalter Lane, Sheffield. The property is held on a 999 year lease expiring July 2988 at an annual rent of a peppercorn. The Trustees are of the opinion that the current market value at 31 August 2020 is not materially different from the valuation when the property was transferred in.

Ge a ge

ey ae

THE LEADERS OF WORSHIP AND PREACHERS TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

13 Investment property (Continued)
2020 2019
£: £
Long leasehold 225,000 225,000
14 Fixed asset investments
Listed
investments
£
Cost or valuation
At 1 September 2019 337,351
Additions 185377
Valuation changes 362
Net movement in cash (11,563)
Disposals (134,369)
At 31 August 2020 347,158
Carrying amount
At 31 August 2020 347,158
At 31 August 2019 337,351
2020 2019
£ £
Investments at fair value comprise:
Fixed interest securities - 10,656
Equity shares 153,083 147,021
Hedge funds - 7,606
Investment trusts and unit trusts 164,545 136,665
Cash on deposit 29,530 35,403
347,158 S37,001

2932

THE LEADERS OF WORSHIP AND PREACHERS TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

15 Debtors
2020 2019
Amounts falling due within one year: £ £
Trade debtors 2,435 334
Other debtors 26,375 76,786
Prepayments and accrued income 675 2,516
29,485 79,636
16 Creditors: amounts falling due within one year
2020 2019
£ £
Other taxation and social security 3,201 2,612
Trade creditors 11,911 19,829
Other creditors 659 -
Accruals and deferred income 13,511 8,284
29,282 30,725
17 ‘Provisions for liabilities 2020 2019
Notes £ £
Retirement benefit obligations 18 352,000 292,000
352,000 292,000

18 Retirement benefit schemes

Scheme characteristics and nature of the benefits provided The Principal Employer (The Leaders of Worship and Preachers Homes) operatesa final salary defined benefit scheme for its employees.

The Scheme commenced on 1 January 1975 and is now closed to future accrual.

Pension benefits are based on length of pensionable service and final salary.

The Scheme is managed by a board of trustees.

We have estimated the average duration of the past service liabilities to be approximately 20 years.

Funding arrangements

The Scheme operates within the standard UK regulatory framework for employer-sponsored pension schemes. Funding rates are agreed between the pension trustees and the Principal Employer, based on a prudent assessment of the Scheme's liabilities.

“94

THE LEADERS OF WORSHIP AND PREACHERS TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

18 Retirement benefit schemes

(Continued)

Under the regulations, a funding valuation is required to take place every three years. If the valuation shows that the pension schemeis in deficit, contributions to eliminate the deficit will be payable over an agreed period.

Under the Schedule of Contributions agreed as part of the actuarial valuation as at 1 April 2014, it was agreed that the Principal Employers will pay deficit contributions of £11,000 per month until 1 December 2022, of which LWPT as the Secondary Employer agreed to pay 10%.

Following the triennial valuation as of 1 April 2017, the Scheme remained in deficit and it was proposed by the Pension Trustees that total monthly contributions needed to increase to £12,083. LWPT, as the Secondary Employer agreed to their responsibility of contributing 10% of this new monthly deficit repayment. Based on the current Schedule of Contributions dated 12 March 2018, the employer expects to pay contributions in the region of £15,600 to the scheme during the next accounting period.

Risk exposure

Since the Scheme is a defined benefit arrangement, the benefits payable to Scheme members are not directly related to the amount of the assets.

The Employer is exposed to the risk of the Scheme's assets being insufficient to meet the benefits payable. Risks arise due to uncertain future investment returns, future levels of inflation, and future changes to life expectancy.

There is significant uncertainty that has arisen as to the closure of the Scheme to accrual in 2003. It is possible this closure was not completed correctly, which would potentially lead to significantly higher liabilities if continued accrual has to be awarded to members who continued in employment after 2003. These disclosures do include any allowance for this potential liability. If it is established that closure ooccured at 13 June 2003 rather than 31 March 2003, this would add around £72,000 to the liabilities.

Sensitivity Information

A 0.1% decrease in the discount rate assumption would increase obligations by around £119,000.

A0.1% increase in the assumed rates of inflation would increase obligations by around £16,000.

A 0.5% increase in the assumed long term rate of future mortality improvements would increase obligations by around £171,000.

These sensitivity figures ignore the effect on the annuities, as any change in the liability value would be matched by a change in the asset value and the net effect would be zero.

The pension deficit is split between LWPHomes (90%) and LWPT (10%) and the annual payments to the pension scheme are paid using the same apportionment.

Under the definitions set out in Financial Standards (FRS 102), the Methodist Local Preachers Mutual Aid Association Pension Scheme is a multi-employer pension scheme.

= BB.

THE LEADERS OF WORSHIP AND PREACHERS TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

18 Retirement benefit schemes

(Continued)

The following FRS102 calculations have been carried out by an independent qualified actuary and relate to LWPT's share of the Methodist Local Preachers Mutual Aid Association Pension Scheme.

2020 2019
£'000 £'000
Defined benefit obligation (666) (666)
Fair value of scheme assets 429 424
Netdefined benefit liability (237) (242)
Unrecognised surplus - -
Net defined benefit liability after allowance forsurplus restriction (237) (242)
Analysis of Statement of Financial Activities charge
2020 2019
£'000 £°000
Current service cost - -
Net interest expense on net defined benefit liability 4 6
Pension Scheme expenses (excluding investment related expenses) - -
Past service cost - ;
Curtailments - -
Settlements =
Interest expense on effect of (asset ceiling) / onerous liability - -
Total pension expense/ (credit) recognised in Statement of Financial
Activities		 4 6
Principal actuarial assumptions at the balance sheet date:
2020 2019
Discount rate 1.57% 1.80%
RPI inflation rate 2.95% 3.30%
Pension increases in payment - RP max 5% 2.87%
Pension increases in deferment - 5% fixed 5.00% 5.00%
Commutation (% of pension) - -
Post-retirement mortality S2PA S2PA
CMI 2019 CMI 2018
[1%] [1%]
Life expectancies:
Male currently aged 60 87.2 years 86.4 years
Female currently aged 60 89.4years 88.4 years
Male currently aged 40 86.0 years 87.6 years
Femalecurrentlyaged40 88.1years 89.7years

26%

THE LEADERS OF WORSHIP AND PREACHERS TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

18 Retirement benefit schemes

(Continued)

Other demographic assumptions are consistent with the formal funding valuation as at 1 April 2017.

Assets 2020 2020 2019
£'000 % weight £'000 % weight
Equities 56 12 - -
Corporate Bonds 54 12 - -
Equity - like Target Return Funds 72 15 181 40
Bond - based Target Return Funds - - . -
Liability Driven Investments (LDI) 203 44 190 43
Cash 4 1 5 4
Insured pensioners 73 16 te 16
462 100 448 100
Reconciliation of defined benefit obligation overthe year 2020 2019
£°000 £'000
Defined benefit obligation at the start ofthe the year 705 616
Current service cost - -
Contributions by the members - -
Interest expenses on defined benefit obligation 12 17
Remeasurement - effect of experience adjustments (gain) / loss 27 89
Remeasurement - effect of changes in assumptions (gain) / loss (3) 2
Benefits paid (22) (19)
Past service cost - -
Disposals and acquisitions - -
Curtailments - -
Settlements - ss
Defined benefit obligation at the end ofthe year 719 705
Changes in the fairvalue ofscheme assets are as follows: 2020 2019
£'000 £'000
Fair value ofscheme assets as at the start ofthe year 448 385
Interest income on scheme assets 8 11
Remeasurement
-
return
on scheme		 assets excluding interest income
(gain) / loss 13 of
Contributions by the Employer 15 15
Contributions by the Members - -
Benefits paid (22) (20)
Pension Scheme expenses (excluding investment-related expenses) - -
Disposals and acquisitions - -
Settlements - -
Defined benefit obligation at the end ofthe year 462 448
Returnonschemeassets 21 68

page Se a

THE LEADERS OF WORSHIP AND PREACHERS TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020 eA ee 8 a Fa A

18 Retirement benefit schemes schemes

----- Start of picture text -----
|||||||||||||| |---|---|---|---|---|---|---|---|---|---|---|---|---| |Retirement|benefit schemes schemes|(Continued)| |Remeasurements|recognised|in|Other|Comprehensive|Income|(OCI)|2020|2019| |£'000|£'000| |Remeasurement|-|effect|of experience|adjustments|(gain)|/|loss|4|33| |Remeasurement|-|effect|of|changes|in|assumptions|(gain)|/|loss|(10)|(50)| |Remeasurement|-|return|on|plan|assets|excluding|interest|income|(gain)|/| |loss|1|(1)| |Limit|on|asset|that|can|be|recognised|(change|in|unrecoverable|surplus)|-|-| |Total|remeasurement|gain /(loss)|recognised|in|OCI|(5)|(18)| |Reconciliation|of funded|position|2020|2019| |£'000|£'000| |Net|defined|benefit|liability|at|start|of year|242|232| |Expense|recognised|in|Statement|of|Financial|Activities|4|6| |(Gain)/|loss|recognised|in|OCI|5|18| |Contributions|by|the|Employer|(14)|(14)| |Net|defined|benefit|liability|at|end|of year|237|242| |Closure|rectification|costs|115|50| |Total|defined|benefit|liability|at|end|of year|352|292|

----- End of picture text -----

During the period the charitable company made contributions to the fund of £15,122.

The charitable company operates a defined contribution pension scheme for the benefit of the employees. The scheme and its assets are held by and administered by independent managers.

The total contributions charged to the Statement of Financial Activities during the period are £6,501 (2019: £5,685).

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THE LEADERS OF WORSHIP AND PREACHERS TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

21 Operating lease commitments

At the reporting end date the charitable company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2020 2019
£ £
Between two and five years - 17,550
22 Related party transactions
There were no disclosable related party transactions during the year.
23 Cash generated from operations 2020 2019
£ £
Surplus for the year 217883 217,736
Adjustments for:
Investment income recognised in statement of financial activities (27,715) (29,055)
Gain on disposal of investments 4,634 2,893
Fair value gains and losses on investments (362) (5,674)
Depreciation and impairment of tangible fixed assets - 1,021
Difference between pension charge and cash contributions (15,122) (13,999)
Movements in working capital:
Decrease/(increase) in debtors 50,151 (71,804)
(Decrease)/increase in creditors (1,443) 13,324
Cashgeneratedfromoperations 228,026 114,442

22 Related party transactions

24 Analysis ofchanges in net funds
Thecharitablecompanyhadnodebtduringtheyear.

Proc tes