OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2023-08-31-accounts

Charity registration number 1107967

Company registration number 5247784 (England and Wales)

THE LEADERS OF WORSHIP AND PREACHERS TRUST ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

THE LEADERS OF WORSHIP AND PREACHERS TRUST

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees John Griffiths David Latter David Tuckett Harvey Kwiyani Jane Lloyd Secretary Ian 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 0NE Solicitors Stone King LLP Boundary House 91 Charterhouse Street London EC1M 6HR Investment advisors Coutts & Co. 440 Strand London WC2R 0QS

THE LEADERS OF WORSHIP AND PREACHERS TRUST

CONTENTS

Page
Trustees' report 1 - 6
Statement of trustees' responsibilities 7
Independent examiner's report 8
Statement of financial activities 9 - 10
Balance sheet 11 - 12
Statement of cash flows 13
Notes to the financial statements 14 - 28

THE LEADERS OF WORSHIP AND PREACHERS TRUST

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 AUGUST 2023

The trustees present their annual report and financial statements for the year ended 31 August 2023.

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

The objects of The Leaders of Worship and Preachers Trust (LWPT), as laid out in the Memorandum, are:

Aims of charity

LWPT is an ecumenical charity which aims to achieve its objectives by providing resources for those involved in Bible teaching by supporting training opportunities for those involved in preaching, Bible teaching, house group leadership, counselling & worship leading by offering a grant programme of vocational & 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 we have gradually focused on three areas of work that are designed to develop Christian leaders (lay and clerical) in UK churches via: [1] Better Bible-based communication, [2] Better Bible-based resources and [3] Tuition grants for further Bible-based studies The key strategies for the year will be:

THE LEADERS OF WORSHIP AND PREACHERS TRUST

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

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 LWPT 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

Charitable achievements

THE LEADERS OF WORSHIP AND PREACHERS TRUST

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

Fundraising achievements

LWPT has raised the importance of appeals for keeping our supporter’s prayers, time and money support up-todate. We are also developing a “regular giving programme” that will allow a growing number of new supporters to support LWPT on a monthly basis. This will allow us to grow regular giving and reduce occasional appeals. We have also been successful at raising grants from UK based trusts for the growth of our investment in the scholarship programmes.

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 reviewed December 2022, 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 £253,614 (2022: £524,422), of which £248,966 (2022: £463,841) was for LWPT general funds and £4,648 (2022: £60,581) 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 2023/24 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 2023 to £1,496 per month.

THE LEADERS OF WORSHIP AND PREACHERS TRUST

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

From the middle of August 2019, LWPT were advised that they needed to fund a further liability relating to the MLPMAA Pension Fund, due to the fund not being closed appropriately in 2003. LWPT needed to assign up to £115,000 from its funds. The rectification process was completed in November 2022.

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:

Key performance indicators 2023 2022 2021 Change
2022 to
2023

Change
2021 to
2022
£ £ £ % %
Voluntarydonations received 164,947 165,744 191,394 -0.48 -13.40
Expenditure(runningcosts and overheads) 372,219 334,426 334,856 +11.44 -0.01
Vocationalgrants made 33,070 24,050 21,282 +37.50 +13.00
Hardship grants made 2,000 9,350 1,000 -78.61 +835.00
Grants made to charities from LPMA funds - 650 6,150 -100.00 -89.40
Legacies received byLWPT 248,966 463,841 61,166 -46.33 +658.30
Legacies received byLPMA 4,648 60,581 65,410 -92.33 -0.07

Future Plans for 2023-24

1 To continue producing four editions of Preach across the year engaging a range of writers representing different Christian denominations focusing on a variety of themes guided by the Editorial Board.

THE LEADERS OF WORSHIP AND PREACHERS TRUST

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

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 by a 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.

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 £155,395: current reserves are at the required level.

Our total reserves are: 1,409,293
Of which:
Amount restricted to donor nominated purposes 371,847
Amount available to meet current operations 871,446
Amount required to fund pension deficit 166,000

The level of reserves held at 31 August 2023 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.

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.

THE LEADERS OF WORSHIP AND PREACHERS TRUST

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

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

David Latter Trustee Dated: 20 March 2024

Jane Lloyd

Jane Lloyd Trustee

THE LEADERS OF WORSHIP AND PREACHERS TRUST

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 AUGUST 2023

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 LEADERS OF WORSHIP AND PREACHERS TRUST

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF THE LEADERS OF WORSHIP AND PREACHERS TRUST

I 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 2023.

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, I 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 I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

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. I confirm that I am qualified to undertake the examination because I am a member of The Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.

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

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.

Gary Howard FCA

Howard Wilson Chartered Accountants 36 Crown Rise Watford Hertfordshire WD25 0NE

Dated: 26 March 2024

THE LEADERS OF WORSHIP AND PREACHERS TRUST

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 AUGUST 2023

Current financial year
Unrestricted
Restricted
funds
funds
2023
2023
Notes
£
£
Income from:
Donations and legacies
3
407,396
11,165
Charitable activities
4
3,916
14,876
Other trading activities
5
22,304
-
Investments
6
18,301
4,853
Total income
451,917
30,894
Expenditure on:
Raising funds
7
33,469
-
Charitable activities
8
398,177
9,111
Total expenditure
431,646
9,111
Net gains/(losses) on investments
11
(4,606)
-
Net income / (expenditure) for the year
15,665
21,783
Other recognised gains and losses
Actuarial (loss)/gain on defined benefit pension
schemes
(35,636)
-
Net movement in funds
(19,971)
21,783
Fund balances at 1 September 2022
891,417
350,064
Fund balances at 31 August 2023
871,446
371,847		 Total
2023
£
418,561
18,792
22,304
23,154
482,811
33,469
407,288
440,757
(4,606)
37,448
(35,636)
1,812
1,241,481
1,243,293		 Total
2022
£
690,166
23,533
19,475
13,876
747,050
38,136
368,476
406,612
(27,576)
312,862
46,867
359,729
881,752
1,241,481

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.

THE LEADERS OF WORSHIP AND PREACHERS TRUST

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

FOR THE YEAR ENDED 31 AUGUST 2023

Prior financial year
Unrestricted
Restricted
funds
funds
2022
2022
Notes
£
£
Income from:
Donations and legacies
3
629,359
60,807
Charitable activities
4
23,533
-
Other trading activities
5
19,475
-
Investments
6
13,104
772
Total income
685,471
61,579
Expenditure on:
Raising funds
7
38,136
-
Charitable activities
8
359,781
8,695
Total expenditure
397,917
8,695
Net gains/(losses) on investments
11
(27,576)
-
Net income / (expenditure) for the year
259,978
52,884
Other recognised gains and losses
Actuarial (loss)/gain on defined benefit pension schemes
46,867
-
Net movement in funds
306,845
52,884
Fund balances at 1 September 2022
584,572
297,180
Fund balances at 31 August 2023
891,417
350,064		 Total
2022
£
690,166
23,533
19,475
13,876
747,050
38,136
368,476
406,612
(27,576)
312,862
46,867
359,729
881,752
1,241,481

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.

THE LEADERS OF WORSHIP AND PREACHERS TRUST

BALANCE SHEET

AS AT 31 AUGUST 2023

Notes
Fixed assets
Investments
13
Current assets
Debtors
14
Cash at bank and in hand
Creditors: amounts falling due within
one year
15
Net current assets
Total assets less current liabilities
Provisions for liabilities
Net assets
Income funds
Restricted funds
18
Unrestricted funds
General unrestricted funds
Pension reserve		 2023
£
£
303,076
12,639
1,120,390
1,133,029
(26,812)
1,106,217
1,409,293
(166,000)
1,243,293
371,847
1,037,446
(166,000)
871,446
1,243,293		 2022
£
£
301,133
12,246
1,152,994
1,165,240
(38,726)
1,126,514
1,427,647
(186,166)
1,241,481
350,064
1,077,583
(186,166)
891,417
1,241,481

THE LEADERS OF WORSHIP AND PREACHERS TRUST

BALANCE SHEET (CONTINUED)

AS AT 31 AUGUST 2023

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 2023.

The directors/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.

The financial statements were approved by the Trustees on 20 March 2024

David Latter Jane Lloyd
David Latter Jane Lloyd
Trustee Trustee

Company Registration No. 5247784

THE LEADERS OF WORSHIP AND PREACHERS TRUST

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2023

Notes
Cash flows from operating activities
Cash (absorbed by)/generated from
operations
22
Investing activities
Proceeds on disposal of investment property
Purchase of other investments
Proceeds on disposal of other investments
Investment income received
Net cash generated from investing
activities
Net cash used in financing activities
Net (decrease)/increase in cash and cash
equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2023
£
£
(49,209)
-
(94,068)
87,519
23,154
16,605
-
(32,604)
1,152,994
1,120,390		 2022
£
£
284,511
200,000
(250,284)
314,576
13,876
278,168
-
562,679
590,315
1,152,994		 2022
£
£
284,511
200,000
(250,284)
314,576
13,876
278,168
-
562,679
590,315
1,152,994
562,679
590,315
1,152,994

THE LEADERS OF WORSHIP AND PREACHERS TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

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.

1.2 Going concern

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.

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.

1.4 Income

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.

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.

THE LEADERS OF WORSHIP AND PREACHERS TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

1 Accounting policies

(Continued)

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

1.5 Expenditure

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 the statement of financial activities.

1.7 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

1.8 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.

1.9 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.

THE LEADERS OF WORSHIP AND PREACHERS TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

1 Accounting policies

(Continued)

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.

1.10 Provisions

Provisions are recognised when the charitable company has a legal or constructive present obligation as a result of a past event, it is probable that the charitable company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in net income/(expenditure) in the period in which it arises.

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.

1.12 Retirement benefits

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

THE LEADERS OF WORSHIP AND PREACHERS TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

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.

3 Donations and legacies

Unrestricted
Restricted
funds
funds
2023
2023
£
£
Donations and gifts
158,430
6,517
Legacies receivable
248,966
4,648
407,396
11,165		 Total
Unrestricted
Restricted
funds
funds
2023
2022
2022
£
£
£
164,947
165,518
226
253,614
463,841
60,581
418,561
629,359
60,807		 Total
2022
£
165,744
524,422
690,166

4 Charitable activities

Ancillary trading income
Analysis by fund
Unrestricted funds
Restricted funds		 2023
£
18,792
3,916
14,876
18,792		 2022
£
23,533
23,533
-
23,533

THE LEADERS OF WORSHIP AND PREACHERS TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

5 Other trading activities

**Unrestricted ** Unrestricted
funds funds
2023 2022
£ £
Merchandising income 22,304 19,475

6 Investments

Unrestricted
Restricted
funds
funds
2023
2023
£
£
Rental income
-
-
Dividends and fixed
interest
7,562
660
Interest receivable
10,739
4,193
18,301
4,853		 Total
Unrestricted
Restricted
funds
funds
2023
2022
2022
£
£
£
-
6,329
-
8,222
5,047
645
14,932
1,728
127
23,154
13,104
772		 Total
2022
£
6,329
5,692
1,855
13,876

7 Raising funds

Unrestricted Unrestricted
funds funds
2023 2022
£ £
Fundraising and publicity
Advertising 11,190 3,817
Other fundraising costs 16,138 28,715
Fundraising and publicity 27,328 32,532
Trading costs
Other trading activities 4,504 4,309
Investment management fees 1,637 1,295
33,469 38,136

THE LEADERS OF WORSHIP AND PREACHERS TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

8 Charitable activities

Staff costs
Other staff costs
Grants and financial assistance
Premises costs
Repairs and maintenance costs
Office costs
Computer costs
Printing resources
Travel and subsistence costs
General expenses
Legal and professional costs
Bank charges and other finance costs
Governance costs
Analysis by fund
Unrestricted funds
Restricted funds		 2023
£
179,776
5,010
35,070
20,858
6,450
10,272
10,710
75,539
1,871
4,385
47,567
3,912
5,868
407,288
398,177
9,111
407,288		 2022
£
162,540
7,046
34,050
20,046
4,925
8,726
13,679
62,184
2,924
2,720
43,027
4,100
2,509
368,476
359,781
8,695
368,476

Governance costs comprise independent examiners fees £1,800 (2022: £1,800), trustee meeting costs £648 (2022: £709). In addition the independent examiners charged £3,420 (2022: £3,420) for accountancy and advisory services.

9 Trustees

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

THE LEADERS OF WORSHIP AND PREACHERS TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

10 Employees

Number of employees

The average monthly number of employees during the year was:

Administrative
Employment costs
Wages and salaries
Social security costs
Other pension costs		 2023
Number
6
2023
£
153,712
9,517
16,547
179,776		 2022
Number
6
2022
£
141,391
9,173
11,976
162,540

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

11 Net gains/(losses) on investments

Unrestricted Unrestricted
funds funds
2023 2022
£ £
Revaluation of investments (2,165) (14,112)
Gain/(loss) on sale of investments (2,441) (13,464)
(4,606) (27,576)

12 Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

THE LEADERS OF WORSHIP AND PREACHERS TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

13 Fixed asset investments

Listed
investments
Government
Bonds
Cash in
portfolio
£
£
Cost or valuation
At 1 September 2022
201,704
78,923
20,506
Additions
54,594
39,474
-
Valuation changes
2,935
(5,100)
-
Net movement in cash
-
-
(6,492)
Disposals
(64,598)
(18,870)
-
At 31 August 2023
194,635
94,427
14,014
Carrying amount
At 31 August 2023
194,635
94,427
14,014
At 31 August 2022
201,704
78,923
20,506
2023
£
Investments at fair value comprise:
Government bonds
94,427
Equity shares
162,377
Investment trusts and unit trusts
32,258
Cash on deposit
14,014
303,076
14
Debtors
2023
Amounts falling due within one year:
£
Trade debtors
3,148
Other debtors
2,043
Prepayments and accrued income
7,448
12,639		 Total
£
301,133
94,068
(2,165)
(6,492)
(83,468)
303,076
303,076
301,133
2022
£
78,923
166,375
35,329
20,506
301,133
2022
£
6,285
3,527
2,434
12,246

THE LEADERS OF WORSHIP AND PREACHERS TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2023

15
Creditors: amounts falling due within one year
Trade creditors
Other creditors
Accruals and deferred income
16
Provisions for liabilities
Retirement benefit obligations
17
Movements on retirement benefit obligations:
At 1 September 2022
Contributions paid in year
Actuarial (gains)/losses in year
At 31 August 2023		 2023
£
5,540
766
20,506
26,812
2023
£
166,000		 2022
£
24,355
659
13,712
38,726
2022
£
186,166
£
186,166
(55,802)
35,636
166,000

THE LEADERS OF WORSHIP AND PREACHERS TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

17 Retirement benefit schemes

Scheme characteristics and nature of the benefits provided

The Principal Employer (The Leaders of Worship and Preachers Homes) operates a 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.

Under the regulations, a funding valuation is required to take place every three years. If the valuation shows that the pension scheme is 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 2020, 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, the employer expects to pay contributions in the region of £17,952 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.

Sensitivity Information

A 0.5% per annum decrease in the discount rate assumption would increase obligations by around £265,000.

A 0.5% per annum increase in the assumed rates of inflation would increase obligations by around £45,000.

A 0.5% increase in the assumed long term rate of future mortality improvements would increase obligations by around £60,000.

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.

THE LEADERS OF WORSHIP AND PREACHERS TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

17 Retirement benefit schemes

(Continued)

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.

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.

2023 2022
£'000 £'000
Defined benefit obligation 439 458
Fair value of scheme assets (273) (310)
Net defined benefit liability 166 148
Unrecognised surplus - -
Net defined benefit liability after allowance for surplus restriction 166 148
Analysis of Statement of Financial Activities charge
2023 2022
£'000 £'000
Net interest expense on net defined benefit liability - 3
Past service cost 10 -
Total pension expense / (credit) recognised in Statement of Financial Activities 10 3
Principal actuarial assumptions at the balance sheet date:
2023 2022
Discount rate 5.13% 3.97%
RPI inflation rate 3.28% 3.35%
Pension increases in payment - RPI max 5% 3.13% 3.19%
Pension increases in deferment - 5% fixed 5.00% 5.00%
Commutation (% of pension) - -
Post-retirement mortality S3PA S3PA
CMI 2022 CMI 2021
[1%] [1%]
Reconciliation of defined benefit obligation over the year 2023 2022
Defined benefit obligation at the start of the year 458 655
Interest expenses on defined benefit obligation 18 11
Remeasurement - effect of experience adjustments (gain) / loss (34) (197)
Remeasurement - effect of changes in assumptions (gain) / loss 1 4
Benefits paid (14) (15)
Past service cost 10 -
Settlements - -
Defined benefit obligation at the end of the year 439 458

THE LEADERS OF WORSHIP AND PREACHERS TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2023

17 Retirement benefit schemes (Continued)
Changes in the fair value of scheme assets are as follows: 2023 2022
Fair value of scheme assets as at the start of the year 310 443
Interest income on scheme assets 13 8
Remeasurement - return on scheme assets excluding interest income (gain) /
loss (54) (142)
Contributions by the Employer 18 16
Benefits paid (14) (15)
Defined benefit obligation at the end of the year 273 310
Remeasurements recognised in Other Comprehensive Income (OCI) 2023 2022
£'000 £'000
Remeasurement - effect of experience adjustments (gain) / loss (54) (142)
Remeasurement - effect of changes in assumptions (gain) / loss 34 197
Remeasurement - return on plan assets excluding interest income (gain) / loss (1) (4)
Total remeasurement gain / (loss) recognised in OCI (21) 51
Reconciliation of funded position 2023 2022
£'000 £'000
Net defined benefit liability at start of year (148) (212)
Expense recognised in Statement of Financial Activities (15) (3)
(Gain) / loss recognised in OCI (21) 51
Contributions by the Employer 18 16
Net defined benefit liability at end of year (166) (148)
Closure rectification costs - (38)
Total defined benefit liability at end of year (166) (186)

During the period the charitable company made contributions to the fund of £17,647.

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 £14,408 (2022: £8,994).

THE LEADERS OF WORSHIP AND PREACHERS TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

18 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Movement in funds Movement in funds Movement in funds Movement in funds
Balance at Incoming Resources Balance at Incoming Resources Balance at
1 September resources expended 1 September resources expended 31 August
2021 2022 2023
£ £ £ £ £ £ £
MLPMAA - General Purposes Fund 286,070 61,579 (8,695) 338,954 9,765 (3,811) 344,908
Owen Fund 11,110 - - 11,110 - - 11,110
John Wesley Training Fund (VGP) - - - - 6,253 (1,800) 4,453
Cranmer Training Fund (VGP) - - - - 14,876 (3,500) 11,376
297,180 61,579 (8,695) 350,064 30,894 (9,111) 371,847

The MLPMAA General Purposes Fund is funds given to be spent on the objects of the former Methodist Local Preachers Mutual Aid Association as defined in its rule book.

The Owen Fund represents a legacy which is restricted to the use of the income arising on the capital.

John Wesley Training Fund (VGP) and Cranmer Training Fund (VGP) are Vocational Grants Programme (VGP) funds to support training for Methodist and Anglican preachers.

THE LEADERS OF WORSHIP AND PREACHERS TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

19 Analysis of net assets between funds

Unrestricted
Funds
Restricted
Funds
2023
2023
£
£
Fund balances at 31 August 2023 are represented by:
Investments
291,966
11,110
Current assets/(liabilities)
745,066
361,151
Provisions
(166,000)
-
871,032
372,261		 Total
Unrestricted
Funds
2023
2022
£
£
303,076
290,023
1,106,217
787,560
(166,000)
(186,166)
1,243,293
891,417		 Restricted
Funds
2022
£
11,110
338,954
-
350,064		 Total
2022
£
301,133
1,126,514
(186,166)
1,241,481

THE LEADERS OF WORSHIP AND PREACHERS TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2023

20 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:

Within one year
Between two and five years		 2023
£
18,000
1,500
19,500		 2022
£
-
-
-

21 Related party transactions

There were no disclosable related party transactions during the year.

22
Cash generated from operations
Surplus for the year
Adjustments for:
Investment income recognised in statement of financial activities
Loss on disposal of investments
Fair value gains and losses on investments
Difference between pension charge and cash contributions
Movements in working capital:
(Increase)/decrease in debtors
(Decrease)/increase in creditors
Decrease in provisions
Cash (absorbed by)/generated from operations
23
Analysis of changes in net funds
The charitable company had no debt during the year.		 2023
2022
£
£
37,448
312,862
(23,154)
(13,876)
2,441
13,464
2,165
14,112
(35,636)
46,867
(393)
31,534
(11,914)
20,382
(20,166)
(140,834)
(49,209)
284,511		 2023
2022
£
£
37,448
312,862
(23,154)
(13,876)
2,441
13,464
2,165
14,112
(35,636)
46,867
(393)
31,534
(11,914)
20,382
(20,166)
(140,834)
(49,209)
284,511
284,511