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← The Leaders Of Worship And Preachers Trust

2024-08-31-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 2024

THE LEADERS OF WORSHIP AND PREACHERS TRUST

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Jane Lloyd
David Latter
David Tuckett
Harvey Kwiyani
Ian Coffey
Ashley Cooper
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 - 29

THE LEADERS OF WORSHIP AND PREACHERS TRUST

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 AUGUST 2024

The trustees present their annual report and financial statements for the year ended 31 August 2024.

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 2024

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 2024

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 2023, 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 £350,042 (2023: £253,614), of which £349,972 (2023: £248,966) was for LWPT general funds and £70 (2023: £4,648) 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 2024/25 has been approved by the Trustee Board and is subject to regular monitoring and review.

THE LEADERS OF WORSHIP AND PREACHERS TRUST

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024

LWPT bought out of the LPMA Pension scheme in April 2024. We left in a way that ensured that the scheme received the funds they requested as well as reducing LWPT’s ongoing monthly costs. The savings from leaving the scheme will allow LWPT to pay off the cost of leaving in less than 5 years as well as reduce our annual expenses for all future immediately.

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 2024 2023 2022 Change
2023 to
2024

Change
2022 to
2023
£ £ £ % %
Voluntarydonations received 159,268 164,947 165,744 -0.03 -0.48
Expenditure(runningcosts and overheads) 448,829 372,218 334,006 +20.58 +11.44
Vocationalgrants made 46,486 33,070 24,050 +40.57 +37.50
Hardship grants made 5,500 2,000 9,350 +175.00 -78.61
Grants made to charities from LPMA funds 5,000 - 650 +100.00 -100.00
Legacies received byLWPT 349,972 248,966 463,841 +40.57 -46.33
Legacies received byLPMA 70 4,648 60,581 -98.49 -92.33

Future Plans for 2024-25

THE LEADERS OF WORSHIP AND PREACHERS TRUST

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024

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 £155,000: current reserves are at the required level.

Our total reserves are: 1,245,841
Of which:
Amount restricted to donor nominated purposes 276,383
Amount available to meet current operations 969,458

The level of reserves held at 31 August 2024 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 2024

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.

Jane Lloyd

Jane Lloyd Chair of Trustees Dated: 19 March 2025

David Latter Trustee

THE LEADERS OF WORSHIP AND PREACHERS TRUST

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 AUGUST 2024

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 2024.

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: 20 March 2025

THE LEADERS OF WORSHIP AND PREACHERS TRUST

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 AUGUST 2024

Current financial year
Unrestricted
Restricted
funds
funds
2024
2024
Notes
£
£
Income from:
Donations and legacies
3
502,507
6,803
Charitable activities
4
25,135
5,000
Other trading activities
5
21,146
-
Investments
6
25,216
6,014
Total income
574,004
17,817
Expenditure on:
Raising funds
7
36,915
-
Charitable activities
8
392,469
113,346
Total expenditure
429,384
113,346
Net gains/(losses) on investments
11
31,929
-
Net income / (expenditure) for the year
176,549
(95,529)
Other recognised gains and losses
Actuarial loss on defined benefit pension schemes
-
-
Deficit on settlement of defined benefit pension
liability
(78,472)
-
Net movement in funds
98,077
(95,529)
Fund balances at 1 September 2023
871,446
371,847
Fund balances at 31 August 2024
969,523
276,318		 Total
2024
£
509,310
30,135
21,146
31,230
591,821
36,915
505,815
542,730
31,929
81,020
-
(78,472)
2,548
1,243,293
1,245,841		 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

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 2024

Prior 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 on defined benefit pension schemes
(35,636)
-
Net movement in funds
(19,971)
21,783
Fund balances at 1 September 2023
891,417
350,064
Fund balances at 31 August 2024
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

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 2024

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		 2024
£
£
342,860
12,559
921,423
933,982
(31,001)
902,981
1,245,841
-
1,245,841
276,318
969,523
-
969,523
1,245,841		 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

THE LEADERS OF WORSHIP AND PREACHERS TRUST

BALANCE SHEET (CONTINUED)

AS AT 31 AUGUST 2024

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 2024.

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 19 March 2025

Jane Lloyd 0) Lit Jane Lloyd David Latter Trustee Trustee

Company Registration No. 5247784

THE LEADERS OF WORSHIP AND PREACHERS TRUST

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2024

Notes
Cash flows from operating activities
Cash absorbed by operations
24
Investing activities
Purchase of investments
Proceeds on disposal of investments
Investment income received
Net cash generated from investing
activities
Net cash used in financing activities
Net decrease in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2024
£
£
(222,342)
(252,581)
244,726
31,230
23,375
-
(198,967)
1,120,390
921,423		 2023
£
£
(49,209)
(94,068)
87,519
23,154
16,605
-
(32,604)
1,152,994
1,120,390

THE LEADERS OF WORSHIP AND PREACHERS TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

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 or grantors 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 2024

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 2024

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 2024

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
2024
2024
£
£
Donations and gifts
152,535
6,733
Legacies receivable
349,972
70
502,507
6,803		 Total
Unrestricted
Restricted
funds
funds
2024
2023
2023
£
£
£
159,268
158,430
6,517
350,042
248,966
4,648
509,310
407,396
11,165		 Total
2023
£
164,947
253,614
418,561

4 Income from charitable activities

Unrestricted
Restricted
funds
funds
2024
2024
£
£
Performance related
grants
11,600
5,000
Ancillary trading income
13,535
-
25,135
5,000
Income from other trading activities
Non-charitable trading activities		 Total
Unrestricted
Restricted
Total
funds
funds
2024
2023
2023
2023
£
£
£
£
16,600
-
9,500
9,500
13,535
3,916
5,376
9,292
30,135
3,916
14,876
18,792
Unrestricted
Unrestricted
funds
funds
2024
2023
£
£
21,146
22,304		 Total
2023
£
9,500
9,292
18,792

5 Income from other trading activities

THE LEADERS OF WORSHIP AND PREACHERS TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024

6 Investments

Unrestricted
Restricted
funds
funds
2024
2024
£
£
Dividends and fixed
interest
8,743
673
Interest receivable
16,473
5,341
25,216
6,014
Raising funds
Fundraising and publicity
New website
Advertising
Other fundraising costs
Fundraising and publicity
Trading costs
Other trading activities
Investment management fees		 Total
Unrestricted
Restricted
Total
funds
funds
2024
2023
2023
2023
£
£
£
£
9,416
7,562
660
8,222
21,814
10,739
4,193
14,932
31,230
18,301
4,853
23,154
Unrestricted
Unrestricted
funds
funds
2024
2023
£
£
8,000
-
13,238
11,190
9,002
16,138
30,240
27,328
4,944
4,504
1,731
1,637
36,915
33,469		 Total
2023
£
8,222
14,932
23,154
27,328
4,504
1,637
33,469

7 Raising funds

THE LEADERS OF WORSHIP AND PREACHERS TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024

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		 2024
£
179,643
20,547
56,986
20,882
3,694
7,919
13,180
59,663
3,297
4,901
124,311
4,379
6,413
505,815
392,469
113,346
505,815		 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

Governance costs comprise independent examiners fees £1,800 (2023: £1,800), trustee meeting costs £1,801 (2023: £648). In addition the independent examiners charged £3,420 (2023: £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 2024

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		 2024
Number
6
2024
£
154,223
9,537
15,883
179,643		 2023
Number
6
2023
£
153,712
9,517
16,547
179,776

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

11 Net gains/(losses) on investments

Unrestricted Unrestricted
funds funds
2024 2023
£ £
Revaluation of investments 20,581 (2,165)
Gain/(loss) on sale of investments 11,348 (2,441)
31,929 (4,606)

12 Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

THE LEADERS OF WORSHIP AND PREACHERS TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024

13 Fixed asset investments

Listed
investments
£
Cost or valuation
At 1 September 2023
194,635
Additions
222,636
Valuation changes
18,848
Net movement in cash
(620)
Disposals
(180,696)
At 31 August 2024
254,803
Carrying amount
At 31 August 2024
254,803
At 31 August 2023
194,635
Investments at fair value comprise:
Government bonds
Equity shares
Investment trusts and unit trusts
Cash on deposit
14
Debtors
Amounts falling due within one year:
Trade debtors
Other debtors
Prepayments and accrued income		 Bonds
Cash in
portfolio
Total
£
£
94,427
14,014
303,076
29,945
-
252,581
1,733
-
20,581
-
1,030
410
(53,092)
-
(233,788)
73,013
15,044
342,860
73,013
15,044
342,860
94,427
14,014
303,076
2024
2023
£
£
73,013
94,427
209,780
162,377
45,023
32,258
15,044
14,014
342,860
303,076
2024
2023
£
£
1,194
3,148
6,865
2,043
4,500
7,448
12,559
12,639

THE LEADERS OF WORSHIP AND PREACHERS TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024

15
Creditors: amounts falling due within one year
Trade creditors
Other creditors
Accruals and deferred income
16
Provisions for liabilities
Retirement benefit obligations
17		 2024
£
11,035
659
19,307
31,001
2024
£
-		 2023
£
5,540
766
20,506
26,812
2023
£
166,000

THE LEADERS OF WORSHIP AND PREACHERS TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024

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.

The average duration of the past service liabilities was estimated 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.

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.

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

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

Special Events

During the accounting year the Employer ceased to participate in the Scheme. This has been shown in the disclosures as a settlement cost calculated as at 31 March 2024.

LWPT paid a final contribution of £234,000 in April 2024 to settle its debt to the Scheme in accordance with regulations. This has been included in the disclosures as an Employer contribution.

THE LEADERS OF WORSHIP AND PREACHERS TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024

17 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.

Defined benefit obligation
Fair value of scheme assets
Net defined benefit liability
Unrecognised surplus
Net defined benefit liability after allowance for surplus restriction
Analysis of Statement of Financial Activities charge
Past service cost
Loss/(gain) on settlements
Interest expense on effect of (asset ceiling) / onerous liability
Total pension expense / (credit) recognised in Statement of Financial Activities
Principal actuarial assumptions at the balance sheet date:
Discount rate
RPI inflation rate
Pension increases in payment - RPI max 5%
Pension increases in deferment - 5% fixed
Post-retirement mortality
Reconciliation of defined benefit obligation over the year
Defined benefit obligation at the start of the year
Interest expenses on defined benefit obligation
Remeasurement - effect of experience adjustments (gain) / loss
Remeasurement - effect of changes in assumptions (gain) / loss
Benefits paid
Past service cost
Liabilities extinguished on settlements
Defined benefit obligation at the end of the year		 2024
2023
£'000
£'000
-
439
-
(273)
-
166
-
-
-
166
2024
2023
£'000
£'000
-
10
71
-
1
-
72
10
2024
2023
n/a
5.13%
n/a
3.28%
n/a
3.13%
n/a
5.00%
n/a
S3PA
n/a
CMI 2022
n/a
[1%]
2024
2023
439
458
13
18
18
(34)
-
1
(12)
(14)
-
10
(458)
-
-
439

THE LEADERS OF WORSHIP AND PREACHERS TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024

17 Retirement benefit schemes (Continued)
Changes in the fair value of scheme assets are as follows: 2024 2023
Fair value of scheme assets as at the start of the year 273 310
Interest income on scheme assets 12 13
Remeasurement - return on scheme assets excluding interest income (gain) /
loss 11 (54)
Contributions by the Employer 245 18
Benefits paid (12) (14)
Assets distributed on settlements (529) -
Defined benefit obligation at the end of the year - 273
Remeasurements recognised in Other Comprehensive Income (OCI) 2024 2023
£'000 £'000
Remeasurement - effect of experience adjustments (gain) / loss 11 (54)
Remeasurement - effect of changes in assumptions (gain) / loss (18) 34
Remeasurement - return on plan assets excluding interest income (gain) / loss - (1)
Total remeasurement gain / (loss) recognised in OCI (7) (21)
Reconciliation of funded position 2024 2023
£'000 £'000
Net defined benefit liability at start of year (166) (148)
Expense recognised in Statement of Financial Activities (72) (15)
(Gain) / loss recognised in OCI (7) (21)
Contributions by the Employer 245 18
Net defined benefit liability at end of year - (166)
Closure rectification costs - -
Total defined benefit liability at end of year - (166)

During the period the charitable company made contributions to the fund of £10,472 and a final contribution of £234,000 in April 2024 to settle the debt in accordance with regulations.

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 £14,390 (2023: £14,408).

THE LEADERS OF WORSHIP AND PREACHERS TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024

18 Restricted funds

The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.

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
2022 2023 2024
£ £ £ £ £ £ £
MLPMAA - General Purposes Fund 338,954 9,765 (3,811) 344,908 6,157 (97,860) 253,205
Owen Fund 11,110 - - 11,110 - - 11,110
John Wesley Training Fund (VGP) - 6,253 (1,800) 4,453 10,800 (3,250) 12,003
Cranmer Training Fund (VGP) - 14,876 (3,500) 11,376 860 (12,236) -
350,064 30,894 (9,111) 371,847 17,817 (113,346) 276,318

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 2024

19 Unrestricted funds

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

At 1
September
2023
Incoming
resources
Resources
expended
£
£
£
General funds
1,037,446
574,004
(429,384)
Pension fund
(166,000)
-
-
871,446
574,004
(429,384)
Previous year:
At 1
September
2022
Incoming
resources
Resources
expended
£
£
£
General funds
1,077,583
451,917
(431,646)
Pension fund
(186,166)
-
-
891,417
451,917
(431,646)		 Transfers
Gains and
losses
At 31 August
2024
£
£
£
(166,000)
(46,543)
969,523
166,000
-
-
-
(46,543)
969,523
Transfers
Gains and
losses
At 31 August
2023
£
£
£
(20,166)
(40,242)
1,037,446
20,166
-
(166,000)
-
(40,242)
871,446

THE LEADERS OF WORSHIP AND PREACHERS TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024

20 Analysis of net assets between funds

Unrestricted
Funds
Restricted
Funds
2024
2024
£
£
Fund balances at 31 August 2024 are represented by:
Investments
331,750
11,110
Current assets/(liabilities)
637,773
265,208
Provisions
-
-
969,523
276,318		 Total
Unrestricted
Funds
2024
2023
£
£
342,860
291,966
902,981
745,066
-
(166,000)
1,245,841
871,032		 Restricted
Funds
2023
£
11,110
361,151
-
372,261		 Total
2023
£
303,076
1,106,217
(166,000)
1,243,293

THE LEADERS OF WORSHIP AND PREACHERS TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024

21 Operating lease commitments

Lessee

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
22
Related party transactions		 2024
£
18,000
1,500
19,500		 2023
£
18,000
19,500
37,500

There were no disclosable related party transactions during the year.

23 Analysis of changes in net funds

The charitable company had no material debt during the year.

24
Cash generated from operations
2024
£
Surplus for the year
81,020
Adjustments for:
Investment income recognised in statement of financial activities
(31,230)
(Gain)/loss on disposal of investments
(11,348)
Fair value gains and losses on investments
(20,581)
Difference between pension charge and cash contributions
(78,472)
Movements in working capital:
Decrease/(increase) in debtors
80
Increase/(decrease) in creditors
4,189
Decrease in provisions
(166,000)
Cash absorbed by operations
(222,342)		 2023
£
37,448
(23,154)
2,441
2,165
(35,636)
(393)
(11,914)
(20,166)
(49,209)