Charity Regl$tr¥tion No. 1112378 Company Reglstrntion No. 05467350 (England and Walo•) THE LEADERS OF WORSHIP AND PREACHERS HOMES ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 THE LEADERS OF WORSHIP AND PREACHERS HOMES LEGAL AND ADMINISTRATIVE INFORMATION Tru$tees J Benfield C Brailhwaite M Amitage J Chapman DJCGreet G Evans J A Close-mitchell {Resigned 20 October 20231 Secretsry SLee Charity number 1112378 Company number 05467350 Regijtered offlce 1 Winlon Avenue Weslcliff on Sea Essex SSO 7QU Auditor Gower5 Limited The Old School House Bridge Road Hunton Bridge King5 Langley Herts WD4 8SZ W•bsits https.11￿￿v.whQrnes.Org.UkI Solicitors MO0￿ 8arlow The Oriel Sydenham Road Guildford GU13SR THE LEADERS OF WORSHIP AND PREACHERS HOMES CONTENTS Page Trustees. report Independent 8uditorfs report Statement of finaricial acb"vib"e8 10 Balance sheet Statement of cash flows 12 Notes to the financial statements 13-27 THE LEADERS OF WORSHIP AND PREACHERS HOMES TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 AUGUST 2024 The trustees present their report and financial statements for the year ended 31 August 2024. The financial statements have been prepared in accordance with the 8c¢ounting policies sel out in note 1 to the financial stslements and comply with the charity's Arbcles ofAssooation. the Companies Act 2006 and"Accounting and Reporting by Charitses.. Stsiement of Recommended Practice applicable to tharilies preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republie of Ireland IFRS 1021" {as amended foraccounting periods commenan9 from 1 January 2019). Objoetives and activitie• Charit8ble objects The objects of LWPHomes. supported by voluntsry contributions, are lo carry on. for the public benefit. the provision of housing and any associated amenities such as treatment. care, advice and advocacy, for those who require such provision on a¢counl of sickness, infimiity, or other charitsbbe need, on tefms appropriate lo their means - Pnority shall be given to those who". lal are involved in leading worship andlor preaching.. Ibl are in training for. or retired from. the activib.es of leading worship andlor preaching.. Icl a￿ the widows. widowers, par$nls. parents in law. chikjren and other dependents of persons described in lal and Ibl. provided that they are or have been part of a ¢hurth organisalion having obje¢b"ves agreed by the trustees as being similar to those held by the Methodist Church 8nd the Wesleyan Reforyn Union and the Local Ecumenical Partnerships that indude Methodists. The charity operates three hornes al Weslcliff-on-sea in Essex, Minehead in Somersel and Woodhall Spa in Lineolnshire. The three homes are registered to provide residential care for a maximum of 84 residents. In addition, the charity operates ten self-contsined flats and Communal facilities providing supported living accornmodalion at Milborne Port, Somersel and hvo self-contsined flats al Minehead. though reslricled MethotJisl Local p￿aCherS Mutual Associab'on {LPMAI funds ¢urrgnUy held and managed by the Leaders of Worship and Preachers Trust can, and have hisloric8lly, been applied lo all aspects of LWPHomes business no grants were applied for during the year in question. Following a request from the trustees of LWPHomes lo LPMA lo give consideration to making a grant towards the acquisibon of a fourth home the trustees of LPMA have pledged £45,000 that can be paid as and when a fimi commitment to new home has been made. 11 is hoped that further grants may be re￿iVed In future. Aims of the charity Providing those who want it with the opportunity to live their retirement in an actively Christian based community. Objectives for the year Following the impact of the global pandemic having become more part of normal lifa th¢ ¢harity's S objeGts"ves for the year we￿". To take all necessary steps to safeguard the residents, staff and (when and where allowed) visitors at our sites from all potential nsks. 2. To contsnue the work 19 reinforce relationships with the Methodist and Wesleyan Reform Union Church or9anisaiions and their individual churches to ensu￿ that the ¢harity's woth can be ¢arried out with a positive Christian Ca￿ dimension. 3. Financial.. Without p￿jUdICe to seNice standards, lo maximise the scope for modest Sufplus from the 3 established homes and the flats on the Minehead and Gainsborough sites. To ensure that there 1$ suffioenl surplus from routine operations to provide for the potential development of the business model and tspital I planned maintenance work. 4. To consider options for development of care Services provided. with the focus on acquiring an additional home ar¥J considering opts'ons for addits'onal independent livin9 attommodation consistent with the objects. 5. Care stsndards.. Ongoing review all aspe¢ts of ¢ompliance with the care stsndards to benefit the residents and to meet the exactsng requirements of Care Quality Commission. THE LEADERS OF WORSHIP AND PREACHERS HOMES TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT AND STRATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Strategies for achiewng objectives The charity operates an LWPHome$ Specific website (v￿.1Wphorne5.0rg.Uk1 which places great emphasis on care matters and allows il lo present itself in a MOE visible manner for potential dienls who seek active Chriskn'an care. In the course of the year, the website was developed further lo support governance and trustee recruitment and lo provide an online portal of infomalion about the (dosed to new membership) MLPMAA pension scheme. The charity is a member of the NCVO lo provide for trustee training and a wide range of other potential benefits. The chanty also maintains enhanced listings on the www.carehome$.¢o.uk and www.carechoices.co.uk websites. Statement on eomplian¢e wilh Charity Commission guidance on public benefit When deciding on adivities and events, LWPHome$' trustees pay due regard to the Charity Commission's guidan￿ on public benefit as sel out In section 17 of the Charities Act 2011 and the published advi￿ of the Chanty Commis&on. Business of the Charity The charity's aim is to provide tho$8 who want it with.. The opportunity lo live their retirement in an actively Christsan based community by the provision of accommodation and subsistence. Physi￿1 and emotional security. A family environment lencourage the presence of relatives and maintain relats"onships with friends alld the wider cctrmmunity. Both ￿Sidents and families have been very $upporb"ve of the actions taken in this respecll. Christian Community. A Christian lifestyle le.g. Daily Devotions} Recreatson- both physical and mental stimulation He8llhcare- preventative. restorative and palliative. The core standards for all aspects of the delivery of care are prescribed by legislatson and regulated by the Care Quality Commission. Significanl acbvilies l of the homes maintain dose contact and partnership with local churches and hold annual 'anniv&rsary open days, and other events that enable visitors into the hornes and also allow the residents to Share in an additsonal area of social activity. Links with the Wesleyan Reform Union remain strong which helps LWPHomes to communicate ils members. Efforts have conknnued lo ensure that LWPHomes is sts"Il seen as very much a part of the Melhodisl family bul progress remains slow. Consultslions with Ihg Methodist Church continue in the hope that the Methodist Calendar will allow for a LWPH Sunday both lo promote the charity's purpose and lo foster the interest of friends and hopeftjlty financial support through donab"ons. Sadly the requests were reje¢led. Us9 of volunteers Ea¢h home arranges social events within the home. oub"ngs. fund raising events. The pastoral supFcrt given to homes has been subject to comprehensive review with trustee$ taking on a closer role lo support the home$, residents and staff. THE LEADERS OF WORSHIP AND PREACHERS HOMES TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT AND STRATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Strategic report Achievomgnts and p•rfomian¢o Chari18ble achi9vemenls LWPHome$ monitors its perfomianc6 by the health and happiness of its residents It is not unusual for residents lo achieve their 100th birthday. Trustees of LWPHomes plan to make a minimum of one pastoral visit per annum to each home, and report5 are made to the InJslee5 for consideratson al Board meetings. In the unlikely event of any concems being raised, they are fully investigated by the Operations Manager, the CEO and the Chaimian of the oard of Trustees. Fundraising achievements Any fundraising activities that tske place locally. $u¢h as the annual anniversary days mentioned above under 'signifieant a¢livites'. provide funds for additional soaal benefits for residents. They do not support mainstream expendilure. Inv8slmenl performance The trustee5 have. as pemiitted under the Articles of Association. appointed professional investsnenl managers lo exercise their powers of Investment. The Iruslees have the power lo invest any sums not irnmedialely needed. The investment policy is reviewed annually when Coutts, the investment manager, reports on investment Ferformance to the trustees. LWPHomes pursues a policy of ethical investment. The fund managers are instructed lo invest in investments that will maximise in¢ome returns wrthin the ethical policy. Major changes in the finan¢i31 markets notsvithslanding, the investment relums during the year have beon satisfactory in the light of financial trends. Financial review During the year under review LWPHomes had an operab'ng surplu¥ of £110, 116. Within this total £178.846 related to depreciab.on of fixed assets. The￿ were then gains on investsnenl assets of £82,394 Increasing the overall surplus to £192.510. Induded within this total is a legacy of £58.179 gratefully ￿te1Ved by the Trustees. The aduarial valuation of the closed defined benefit pension scheme showed a reduction in the deficitdunng the year of £138.000, due lo Changes in assumptions conceming discount 3nd mortality ratos which 1$ t8k¢n into aGcouni within the agreed contributions made by the employers. The charity continues to pay the agreed contributions lo the scheme lo redu￿ the deficit over lime. Prior to 31 March 2024, LWPHomes was responsible fof 90% of the overall employer contribub'ons, as'prinapal employer. with Leaders of Worship and Preachers Trust {LWPTI respon$ibl¢ for the remaining 10% as 'participaling employerf. LWPT withdrew as a partlClP81ing employer as at 31 March 2024, and made an appropriate actuarially calculated one•off eontribul¢on of £234.000 after the year end, in respect of its proporbon of the contributrons. LWPT. therefo￿, has no ongoing commitment lo the pension Scheme. THE LEADERS OF WORSHIP AND PREACHERS HOMES TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT AND STRATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Flnancial reviow l¢ontinuedl Reserves Policy During the period the trustees considered what the reserve requirements were. in line wth the Charity Commission guidelines. This covered setting 4 poliw reflectsng the wish to Safely commit as much as p055ible lo provide suitable support lo beneficiaries. 11 is the poli¢y ofthe tnjstees lo maintain unrestricted funds al a level to enable the charity lo operate effectivety. The trustees ¢onsider that the unrestricted reserves shosjld ideally be maintained at a level equivalent to at least 3 months. njnning costs lo enable an orderfy wind down in the event of the charity'$ closure. This amount would currendy be £706.00012023. £719,000). Our total reseThe$ are £3,656,257 OF which.. Amount reslrided to donor nominated purposes Amount capitalised in tangib￿ f1xed assets Amount required lo fund pension defiot Amount allocated lo capital reseNe Amount available lo meet current operation$ £25.427 £4.208.836 1£1,337.0001 £210.000 £548.994 The current level of reserves 15 $ome £157,00012023' £147,000) below the level that the trustees have Sel as an optimum level for LWPHomes lo hold. Efforts are being rnade lo increase the level ofreserves from operational surpluses without compromising the level of care provided. In line with best practice. the reseNes policy is rewewed annually. P17ncipal SoU￿eS ofincome and how eX￿ndItUre meets obiecfy.ves The principal source of income is ￿Sident fees. mainly from'self-financing, resident5. although some residents are funded. in some cases partly, by local authorities. The local aulhorilie$ visit the hornes annually to ensure that the homes are meetng their temis and conditions in regard to care provi$ion and to ensure our practices are monitored and rgviewed in line with changes in the ￿re sector. Risk Management Review The charity adopts a risk management review strategy that is an integral part of its 8usiness Plan and contributes direclly to the risk management assessment made by the Pension Trustees. Trustees have reviewed the major risks lo which the charity is exposed, which include damage lo reputation. eriminal #cla. dats loss, health ¢nd safety, and hange to funding sources. and have established Systems lo mitigate those risks. Day to day operab.onal risks are minimised by Ihe implementstion of procedures for the aulhorisalion of all Irans8¢tion$ and project management to ensure consistent quality of delivery for all aspects of the chanty. These prO￿dureS are ￿vieWed pen¢￿Ie<y to ensure that they meet the needs of the ¢hanty. The￿ have been no examples of fraud hdentified by the trusiees during the period. Plans for future periods Capital spend over the last few years have maintained the thr8e homes at a high standard of repair and development with a clear planned preventst.ve maintenance strategy. This allows for future plans lo foujs on broadening the charity's care portfolio to include independent living a￿mmOdation. Consistent with its development plans. the charity intends to seek opportunities lo purchase additional homes in areas consistent with the current portfolio. The trustees conb.nue lo look at fundraising opportunities that will also publicise the homes, the excellent Ca￿ that they offer and additional services the chanty provides. THE LEADERS OF WORSHIP AND PREACHERS HOMES TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT AND STRATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Structure> govemance and management The Company was incorporated as a company limited by guarantse on 31 May 2005 and as such h4s no share capital. It is govemed by Articles of Association that were reviewed and updated in 2010 and subjecl to further review and amendment in 2014, 2018 and 2021. The Company was fegistered as a charity on 2 December 2005 by the Charity Commission for England and Wales. The directors of the charitsble company I'the charity'l are Its Iruslees for the purpose gf charity law and throughout this report a￿ referred to as the trustees. A list of the Iruslees is given on the Legal and Administration page to the financial stslemenls. All of the trustees n8med on th81 page served during thè year. Trustees may Serve a maximum of five terms of three years. A trustee who has completed five consecutive temis of office will not be eligible for reappoinlment until one year has elapsed since the end of his Of her last tem of office. The Board of Trustees can consist of at least three and not more than tsvelve persons elected by the Members by ordinary ￿$OlUtion at an AGM. A person may not act as a trustee Un￿55 he or she.. supports the Objects, is a Christian and has a dedication to promote Christian fellow5hip'. agrees to also become a Member, is over the age of 18". and has signed a written dedaratson of willingness to act as a Member and as a trustee of the charity. In October 2017 the hisloricalty dose relationship beffiween the charity and The Leaders of Worship and Preachers Trust came lo an end. A key consequence is that the Board no longer has access lo the rnailing lists associated with the Ichthus magazine which hitherto has been the ¢ore medium for communicats.on wth friends and for the recruitment of new InJ$tee$. New lines of Communication through the Melhodisl and Wesleyan Reform Union church organisalions are being progressed tLI en9￿￿ that the Charity is able to Communicate effectively with rt5 traditional supporters. Another consequence 1$ that the Charity is no lon9er able to enjoy the tradits.onal mutual benefit of *acies and other donations made lo LWPT. New Iruslees are provRled with copies of the Charity Commi$$ion leaflets CC3 & CC3a and are provided with training as required. Policy deo$ions con¢eming the charity are made by the Iruslees as a whole. Specialist areas such as Finance and Investrnenls are delegated to the CEO and an external finanoal adwser appointed by the Board. Day lo day administrative functions, such as resident contracts. local authonty contracts. bookkeeping and payrol, are delegated to the Operations Manager and CEO. The charity enjoys excellent relatsonships with its main stskeholders within the Methcqjist and Wesleyan Reform Churches and meets their officer3 regulady to discuss matters of common inleresL Employee involvement and employment of the disabled The trustees wish to re¢ord thanks lo all the staff who have Contributed to the success of the tharity during the penod under review. The trustee$ a￿ not aware of any staff mem&ers who are registered as disabled bul have the necessary facilities to enable disabled people with the appropriate skills lo wod( for the eharity. Due recognition of the Disabilities Discrimination Act is exercised where staff members need a$$iytsnce and support when reluming from Sick leave or a￿ undergoing treatment whilst wort(ing. THE LEADERS OF WORSHIP AND PREACHERS HOMES TRUSTEES, REPORT (INCLUDING DIRECTORS. REPORT AND STRATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Trustees The trustees, who are also the directors for the purpose of company law, and who served during the year and up lo the date of signature of the financial statements weo.. J Bgnfiekl C Brailhwaile M Amiitage J Chapman DJCGreel G Evans J A CIos8-Milchell {￿SIgned 20 October 20231 Statemant of trustees, re8ponslbilltie$ The Iruslee$, who are also the directors of The Leaders of Worship and Preachers Homes for the p¢Jrpose of company law, are responsible for preparing the Trustees. Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted A¢count1ng Praclicel. Company Law requires the Iruslees to prepa￿ financial statements for each financ¢al year which give a twe and fair view of the stale of affairs of the charity and of the incoming resource$ and application of resources, induding the in¢orne and expenditu￿, of the charitable company forthal year. In preparing these financial ststements, the trustees a￿ Nuiffjd to.. select suitsble accounting policies and then appty them eonsislenty.. observe the methods and principles in the Charities SORP", make judgements and eslimales that are ￿aSonable and prudent.. and p￿pare the financial statements on the going ¢oncem basis unless it is inappropnate lo presume that the charrty will continue in operation. The trustees a￿ ￿SponSible for keepin9 adequate accounts.ng records that disclose with reasonable accuracy at any lime the financial position of the charity and enoble them to ensure that the financial statements comply with the Companies A¢1 2006. They are also responsible for safeguardin9 the assets of the charity and hence for taking feasonable steps for the preventy.on and detection of fraud and other irregularities. Auditor A resolution will be proposed al the forthcoming Annu31 Genaral Mèètin9 that Gowgrs Limited. Chartefe(I A￿o￿ntO￿t¥, who were reappointed during the financial year. be reappointed as auditors for the ensuing yeaf. Disclosure of inforniation to auditor Each of the Iruslees has confimed that there 1$ no information of which they are aware which is relevant lo the audit, bul of which the auditor is unaware. They have further confinned that they have tsken appropriate steps to identify such relevant infomi8tion and lo establish that the auditor is aware of such infotmab"on. The Iruslees. report, including the strategic report, was approved by the 8oard of Tnjstees. C BrJithwaite Trustee Dated 18th March 2025 THE LEADERS OF WORSHIP AND PREACHERS HOMES INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE LEADERS OF WORSHIP AND PREACHERS HOMES Oplnlon We have audited the financial stslements of The Leaders of Worship and Preachers Homes lthe'¢harity'l for the year ended 31 Augu512024 which comprise the stslemenl of financial activities. the tsalan￿ sheet, the ¥tslement of cash flows and the notes lo the financial stslements, including significant accounting policies. The financial reporting fr8mew¢t* that has been applied in their preparation is applicable law and United Kingdom A¢counts"ng Standards. including FRS 102 The Fin8neio1 Reporting Stsndard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accountsng Pra¢ticel. In our opinion. the financial statements.. gtve a true and fair view of the state of the charitable-￿MpanY'S affairn a$ at 31 August 2024 and of ils incoming resources and applicats.on of resources, for the year then ended., have been propedy prepared in accordance with United Kingdom Generally Accepted Accounting Practice,. and have been prepa￿d in aC¢Ordan￿ with the fequirernents of the Companies Act 2006. Baslg for opinion We conducted tsjr aud11 in accordance with Inlemalional Standards on Audits'n9 IUKI IISAS IUKII and applicable law. Our responsibilities under those stsndards are further described in the Auditorfs responsibilities for the audit of the finan¢ial statements section of our reporl. We are independent of the charity in accordance with the ethical requirements that are ￿levant to our audit of the financial slatemenls in the UK. induding the FRC'S Ethical Standard, and we have fulfilled our other elhieal responsibilities in accordance with these requirements. We believe th81 th& audit evidence we have obtained is suffi¢ient and approprtate lo provide a basis for our opinion. Conclusions relating to golng concern In auditing the financial stslements. we have conduded that the trustees. use of the going concem basis of accounting in the preparation of the financial ststements is appropriatè. Based on the work we have perfomed, we have not Kjentified any material uncertaints'es relating to events or conditions that, individually or collectively, MAY cast significant doubl on the ¢harity's ability to continue as a going ncem for a period of al least tsvelve month5 from when the finanaal stslements are authorised for issue. Our responsibilities and the respon$ibilib"es of the trustees with respect lo going concern are described in the ￿levant section$ of this report. Other infonnation The Injstees are responsible for the other information. The other infomation comprises the infomialTr)n included in Ihe 8nnual report. other than the financial stslements and our audilorfs report thereon. Our opinion on the finanaal ststements does not cover the other infomatson and we do not express any fom of assuran￿ condusion thereon. In connecb.on with our 2udil of th• fin#n•¥l $t*t•monts, our ￿ •ponsilJillty Is io read the Oiher Infonnalion and, in doing $0. consider whether the other informab'on is materially inconsistent with the financial statements or our knowledge obtained in the avdil or othewse appear5 to be materially misslaled. If we identify such material Inconsistencies or apparent material misstslements. we are requirgd lo deterynine whether the￿ is a matenal misstslement in the financial statements or a material misslalement of the other infomab'on. If, based on the work we have perfomed. we condude that there is a material misslalement of this other information. we are required to report that fact. We have nothing to ￿port in this regard. THE LEADERS OF WORSHIP AND PREACHERS HOMES INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE LEADERS OF WORSHIP AND PREACHERS HOMES Matters on which we ar• required to report by excgption We have nothing to report In respect of the following matters in relation to which the Charities {Accounls and Reports) Regulations 2008 require us to report to you if. in our opinion.. the infomiation given in the financial statements is inconsistent in any material respect with the trustees, report.. or sufficient a¢¢ounb"ng records have not been kept", or the financial statements are not in agTeemenl with the accountin9 records., or we have not received all the infomiab'on and explanations we require for our audiL Responsibilities of trustees As explained more ￿llY in the ststemenl of trustees. responsibilities. the tNStees, who are also the directors of the charity for the purpose of company law. are responsible for the preparation of the financial ststements and for being satisfied Ihol they give a true and fair view, and for such internal control as the trustees determine is ne￿sSary to enable the preparation of financial slatements that are f￿e from material misststement. whether due to fraud or error. In preparing the financsal slalement$, the twstses are responsible fof assessing the charity's ability to continue as a going concern, disdosing, as applicable, matters related lo going cOn￿M and using the going ¢oncem basis of a¢￿untIng unless the trustees eithei intend to liquidate the charitable company or to ¢ea¥e operabon5, or have no realistic allemats've bul to do so. Auditofs responsibilttles for th• audit of the financial statsmonts We have been 8ppoinled as auditor under seelion 144 of Ihe Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect Ihereunder. OLtr obje¢tives are to obtsin ￿asOnable assurance about whether the financial statements as a whole are free from material misststemenl. whether due to fraud or error. and lo issue an auditorfs report that includes our opinion. Reasonable assurance is a high level of assuran￿ but 1$ not a guarantee that an audit conducted in accordan￿ with ISAS IUKI will aK¥ays detect a material misstatement when il exists. Misslalernenls can arise from fraud or error and are considered material if. individualty or in the aggregate. they could reasonably be expected t¢ influence t economic decisions of users taken on the basis of these financial slatemenls. Irregularities. induding fraud, are instance5 of non)sl convention. The principal accountir¥J poliaes adopted are sel out bel¢)W. 1.2 Golng concern The trustees assess whether the use of going concem is appropriate i.e. whether there are any matenal uncÈrtainties related to events or conditions that may east significant doubt on the ability of the charitable company lo continue as a going concem. The trustees make this assessment in respect of 8 period of at least one year from the dale of authoris81ion for issue ol the finan￿81 stslements and h8ve eonduded that the charitable company has adequate resources to continue in operatsonal existence for the foreseeable future. The charitablg company does have a pension fund defi¢it of £1,337.000 al the year end. This is covered by the charitable company's fixed assets Inel book value £4.208,836 at 31 August 20241. In addition, the charitsble company has an agreed plan to pay off the deficit out of its annual income over a period approved by the pension scheme's trustees and actuary. Thus, the InJstee$ continue to adopt the going concem basi$ of accounting in pr8parin9 the accounls. 1.3 Charitable funds Unrestricted funds are available for use at the discretion of the tNstees in furtherance of th8ir charitable objectives. Designated funds comprise funds which have been sel aside al the discrgtion of the trustees for Specific purposes. The purpo¥e¥ and uses ol the designated funds are sel out in the notes to the financial ststemenls. The pension fund relates lo a defined benefit pension Scheme which ceased on 31 March 2003. This is fully disdosed due to its significance. Restn'cted funds are subjed lo speufic conditions by donors as to how they may be used. The purposes and uses of the reslricled funds are sel out in the notes to the finanaal stslernenls. 1.4 Income Inc¢me 1$ recognised when the charity is legally entiled to il after any Performan￿ conditions have been met, the amounts can be measured reliably, 8nd il is probable that Income will be received. 13- THE LEADERS OF WORSHIP AND PREACHERS HOMES NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Accountlng poli¢ig8 Cash donations are recoonised on re¢eipt. Other donations are ￿e0gnised once the charity has been notified of the donation. unless perfomance conditions require deferral of the amount. Income tax recoverable in relation to donations recetved under Gift ￿"d or deeds of covenant is recognised al the time of the donation. Legacies are re¢ognised on receipt or otherwise rf the eharity has been notified of an impending distribution, the amount is known, and receipt is expected. If Ihe amount is not known, the legacy is treatsd as a contingent asset. 1.5 Expenditure Resources expended are induded in the Statement of Financial Activits'es on an accruals basis indusive of VAT. 1.6 Tangiblg fixgd assets Tangible fixed assets are initialty rneasu￿d at ¢osl and subsequenuy measured at cost or valuation. net of dep￿ciatIon and any impairment losses. Depreciation 1$ Trcognised so as to write off the cost or valuation of assets less their ￿s*dual values over their useful lives on the following bases.. F￿ehOld land Freehold bthildings Fixtures aThJ Fittings ovgr 10. 20 or 25 years as appropriate over 5 years The gain or loss arising on the disposal of an a5sel is deteThnined as the differen￿ between the sale proceed5 and the ¢arying valLte of the asset and is recognised in nel in¢omellexpenditurel for the year. 1.7 Fixod as•et investrnents Fixed asset investments are initialty measured at transaction price exduding Iransaction costs and are subsequendy measured at fair value at each reporting dale. Changes in fair value are rewJnised in net incomellexpenditurel for the year. Transaction costs are expensed a5 incyrred. 1.8 Impaimient of fixed assets At each reportin9 end dale. the Charity ￿￿ewS the carying amounts of its tsngible assets lo delemine whether there is any indication that those assets have suffered an impaiment ltsss. If any such indicatron exists, the recoverable amount of the asset is estsmaled in offler to detemine the exienl of the impaimenl loss (if any). 1.9 Cash and cash equivalents Cash and cash equivalents inelude cash in hand. deposits held 81 call with banks, other short-lerm liquid investments with original maluribes of three months or less. and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. 1.10 Financial instruments The charity has elected lo apply the provisions of Section 11 'Basic Finanaal Instruments, and Section 12 'Other Financial Instruments Issues, of FRS 102 to all of its financial instruments. Financial instruments a￿ recognised in the chanty's balance sheet when the tharity becomes party to the contractual provisions of the instnJmenL Financial assets and liabilities are offset. with the nel amounts presented in the financial statements. when there 15 a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or lo realise the asset and settle the liability simultaneously. 14- THE LEADERS OF WORSHIP AND PREACHERS HOMES NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Accounting policies Baslc flnanclal a$$ets Basic financial assets, which indude debtors and cash and bank balances, are initsally measured at transaction price induding transaction o)sts and a￿ subsequenuy carried al amortised cost usin9 the effects've interest method unless the arrangement consbtutes a finanang transacts"on. where Ihe transaction is measured at the present value of the future receipts discounted al a market rats of inlere$l. Financial as$8ts da5srfied as reeeivable within one year are not 8morti$ed. Baslc flnanclal Ilabllities asi¢ finanoal liabilities. including creditors and bank loans are initially recognised al Iransaetign price unless the arrangemenl consb'lutes a financing Iransacts'on. Whe￿ the debt instrument is measured at the present value of the future payments discounted at a market rate of Interest. Financial liabilits.es classified as payable within one year are not amortised. Debt instruments are subsequently carried al amortised cost, using the effective interest rale method. Trade creditors are obligaty'ons lo pay for goods or services that have been acquired in the ordinary ¢ourse of operations from suppliers. Amounts payable are dassified as current liabilities if payment is due within one year or less. If not, they are presented a$ non-currenl liabilities. Trade creditors are reeognised initially at transaction price and subsequently measured al amortised eosl using the effeth've interest method. Derecognitlon of flnanclal liabilltles Financial liabilities are dere¢ognised when the chanty'$ tX•ntractual obligations expl￿ or are discharged or cancelled. 1.11 Employee benefits The cosl of any unused holiday entiuemenl is recognised in the period in which the employee's servi¢8s are received. Temination benefits are recognised immediately as an expense when the Charity is dernonstrabty ￿mmItted to temiinate the employment of an employee or lo provide temination benefits. 15- THE LEADERS OF WORSHIP AND PREACHERS HOMES NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGusf 2024 Accounting policies 1.12 Rètlrement b8neffts The charitable company operates a defined Contribution pension sc*eme for employees. The assets of the scheme 8re held separately from those of the charitab￿ company. The annual contributions payable are charged lo the Statement of Financial Activities. Until 31 March 2003 Methodist Local Preachers Mutual Aid Assoaalion IMLPMAAI operated a Fension scheme providing benefits based on final pensionable pay as principal employer. with LWPHomes {formerly Mutual Aid Homes) as a participating employer. The entire scheme was made paid up on 31 March 2003. The employers ar8 committed to paying monthly contribub.ons to fund the deficiL From 1 April 2022 10 31 March 2023 the ¢ommitment was £178,288 per annum and from 1 April 2023 this increased to £179.520 per anvum, increasing by 5.80h pa on 1 April every year Ltnlil 1 June 2032. LWPHomes are committed to fund thi$ payment (previously 90% of the lotsll. The current setvice cost of providing defined pension benefits in schemes operated by the charitable company is charged lo salaries in the Statement of Financial Activities over the antiapaled period of employment in accordance with recommendations made by independent qualified actuaries. The interest ¢ost and th8 expe¢led retum on assets are shown as a net amount and reflected in the Statement of Financial Activities in a similar fashion. Actuarial gains and losses are re¢ognised irnmedialely within 'net actuarial gain$ and lo$se$' on the face of the Statement of Finanaal Aclivilie5. A provision for the current defined benefit scheme pension fund deficit 1$ made on the lace of the balance sheet and the corresponding figure is shown as 8 separate e£Jmponent of the charitsble company's restricted funds. The amounts charged lo the Statement of Financial Activities for defined contnbution schemes rep￿Sent the conlributs"on$ payable to the schemes in resFect of the period. 1.13 Govemment grants Government grants are re¢ognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be mel and the grants wll be received. A grant that specifies perfomiance conditions is re¢ognised in income when the pertornan￿ conditions are mel. Where a grant does not specify performance eondilions it is recognised in income when the protteds a ceived or receivable, A grant ￿Ceived before the re¢ogn11ion criteria are satisfied is recognised as a liability. Critical accounting estimatsi and Judgements In the application of the charity'5 accountsng policies, the trustees afÈ rèquirod to make judg¢ment•, eatimaies •r*d 0g$umption3 atsoul the carrying amount of assets and Iiabililies that are not rgadily apparent from other sourtss. The estimates and assoaated assumpts.ons are based on historical experience and other factors that are consider&d lo be relevant. Actual results may diff8r from these esb'males. The eslimale$ and undedying assumptsons are reviewed on an ongoing basis. Revisions lo accounting estimate$ are recognised in the period in which the esbmate is tsvised where the revision affects only that penod, or in the period of the revision and future periods where the revision affects both cur￿n1 and future peritrJs. 16- THE LEADERS OF WORSHIP AND PREACHERS HOMES NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 3 Donations and legacies Unr•$tricted funds ggneral 2024 Restrieted fund8 Total Unre$lri¢ted funds general Reslricted funds Total 2024 2024 2023 2023 2023 Donation5 4rKI gifts Legacy 14.423 58.179 3.194 17.617 58,179 26,082 160,000 2,119 28.201 160,000 72.602 3,194 75.796 186,082 2,119 188.201 4 Charltabl• activiti8$ Provlsion of care Provision of home¥ eare homes 2024 2023 Resident Fee$- Local Authority funding Resident Fees- Private funding Respite Care Ancillary trading income 520.862 493.641 2.424.445 2,554.176 39.248 44.554 1.C68 2,985,623 3,092.467 S Investments Unr•8trlct•d Unrestricted funds gen•ral funds general 2023 2024 Investment income 11,558 17- THE LEADERS OF WORSHIP AND PREACHERS HOMES NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Raising lund$ Unre¥tri¢tsd Unrestricted fund• fvnds general general 2024 2023 Fundraisin PUblI￿tY Pres$ advertising Website costs 3DJ 5.476 428 2,340 2,437 425 Fundraising and publicity 6.204 5.202 nve 8.157 2,681 14,361 7,863 Charitsble activities Charitsblo Charitsble Expenditur• Expenditure 2024 2023 Staff costs Depre¢iab"on and impainnent Operational costs Pension re¢tificatson costs Staff welfare Recruiknent eo$ts Staff training 2.025,CE6 1,824,200 178.846 164,145 195,880 213,719 130,189 9,853 14.575 9.120 11,430 5,780 L il Premises costs Insuran Repairs Telephone Board and committee expenses Communication 8nd computgr ¢osts Maintenance cgnlracls Other ¢haritable expenditure 125,497 47,576 52,849 13,313 5,294 43,444 58,228 57.065 100,262 41.709 65,294 13,619 2.719 37,283 56,533 60,024 2.824,214 2,743.244 Share of govemance costs (see note 8) 124.285 107,106 2,948,499 2,8SO,350 18- THE LEADERS OF WORSHIP AND PREACHERS HOMES NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGusf2024 Charitsble a¢livitioS Analyslg by fund Unrestncled funds - general Unrestncted funds - designated Restricted funds 2,937.642 2,839,407 10,857 10.943 2,948,499 2.850.350 Support costs Support Governance ¢￿ts ¢osts 2024 Support osts Govemanee sts 2023 Audit and accountancy fees Legal and professional fees 10,124 10,124 9,716 9,716 114,161 114,161 97,390 97,390 124,285 124,285 107,1L 107.106 Analysed as Charilable activities 124,28S 124,185 107.106 107,106 Governan￿ costs indudes payments to the auditors of £10,124 VAT included12023 - £9,716 VAT induded) for audit fees. Trustee8 None of the trustees lor any persons connected with them) received any remuneration or benefits from the chanty during the year. Out of pocket expenses totalling £4,98712023- £2,719) were reimbufsed to 4 truslee$12023- 3 trustees) in relatson to travel costs. 10 Employees The average monthly number of employees during the year wa$= 2023 Number 2023 Number Direct charitsble work 80 19- THE LEADERS OF WORSHIP AND PREACHERS HOMES NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Employment colts 2024 2023 Wages and salaries Social secwrity costs Other pension costs 1.840,944 135.914 39.620 1,651,520 127.754 36.845 2.016.478 1,816,119 There was 1 employee12023.. 1 employee) whose annual ￿MUn￿ratIOn was £60,OIXJ or more. falling in the r8nge £75,000- £80.00012023'. £65,000- £70.0001. 11 Net galnsl{losses) on investmefits Unrestricted Un￿striCted fund$ funds general general 2024 2023 Revaluation of investments 82,394 (18.1281 12 Tangib￿ fixed assets Freehold Land •nd 8ulldln9S FIx￿￿4￿d FItUn Total Costor valuation Al 1 September 2023 Additsons 4,849,335 265,058 718,426 5,567,761 59,059 324,117 Al 31 August 2024 5,114.393 777,485 5,891,878 Depreciation and Impairment Al 1 September 2023 Depreciation ehargod in Ih? y•ar 870,231 146,620 633.965 1.504.198 32.226 178.846 At 31 August 2024 1,016,851 666,191 1,683.042 Carrylng amount Al 31 August 2024 4.097,542 111.294 4,208.836 At 31 August 2023 3,979,104 84,461 4.063,565 Land and buildings with a carrying amount of £4,432,488 were revalued at 31 August 2016 by Roger Milllhrop Consulting Limited, Chartered Surveyors not conneded with the charity on the basis of maT*et value. The valuatson conforms lo Intemation81 Valuat'on Stsndard$ and was based on recent market transactions on ami's length lems for similar properties. The management believe the carrying value of today's dale to be a fair refledion of the value as revalued by Rogef Millthrop o)nsidering the addits'ons and improvements made since that dale. -20- THE LEADERS OF WORSHIP AND PREACHERS HOMES NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 12 Tangiblfr fixed assets Al 31 August 2024, had the revalued assets been Carried at historic Cost less accumulated depreciation and accumulated impairynenl losses, their carryin9 amount would have been approximately £3.546.628 12023 £3,290,237). 13 Flxed asset invgstments Listod in¥estrnents Cogt or valuation At 1 September 2023 Additions Valuation ¢hange$ Fees 604, 160 85,910 {3,516) At 31 August 2024 686,554 Carying amount Al 31 Augu5l 2024 686,554 Al 31 August 2023 604,160 14 Stocks 2024 2023 Consumable$ 6,735 6,455 15 Debtor8 2Q24 2023 Amounts talling due wlthin one yoar: Trade debtors Prepayments and accrued income 9.478 289 14.014 273 9,767 14,287 21 THE LEADERS OF WORSHIP AND PREACHERS HOMES NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 16 Loans and overdrafts 2024 2023 Bank loans 383.766 411.724 Payable wlhin one year Payable alter one year 30.564 353,202 27,990 383,734 Amounts induded above which fall due after five years." Payable by instalments 200,050 246,461 17 Crgditors.. arnounts falling duo within ong ygar 2024 2023 Note8 Bank loans Other tsxalion and social security Government grants Trade creditors A¢¢rual$ deferred income 16 30,564 34,513 27,990 28,733 55,078 1 C(),821 27,556 68,129 22,111 155,317 185.100 18 Creditors: amounts falling due after more than one year 2024 2023 Notes Bank loans 16 353,202 383.734 The remaining long-lemi loan is secured by a fixed 14al charge over Wesler1ey Christian ca￿ Home, The Broadway, Woodhall Spa. Lincolnshife. 19 Retirement benefit schom•g Defined contribution ¥¢hemes The charity operates a defined contribution pension scheme for all qualfying employees. The assets of the scheme ate held separately from those of the charity in an Independenuy administered fvnd. The charge lo profit or loss in respect of defined contributs'on schemes was £39.62012023- £36,845). Dofin•d benofit 8ch•m•s {se• below) 22- THE LEADERS OF WORSHIP AND PREACHERS HOMES NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 19 Rètir•mgnt bonefrt scheme8 (continu•dl Key assumptions 2024 2023 Discount rnte Expected wte of increase of pensions in payment RPI inftabon rale Pension increase in defeffnent 4.89% 3.16% 3.04% 5.00% 5.13% 3.13° 5.00% Mort81ity assumptions The assumed life expectab.ons on retirement at age 60 are." 2024 Year• 2023 Y•ars Retiring loday Males Females 85.8 88.6 85.8 88.5 Retiring in 20 years Males Females 87.0 89.8 89.6 Amounts recognised in the profil and loss account. 2024 2023 Past service cost Net Inte￿¥t on defined benefit liabilityllasseti 87.000 55.000 73,000 Remeasuremenls reeognised in other comprehensive income.. 2024 2023 R8lum on $ch•me 0$8et8 excludin9 interest income Effect of chan9es in assumptions gainlllossl Effect of experience adjustments gainlllos$l 63.000 193.000) 13.000) 1788.0001 769.000 116,0001 Total remeasurement gainlllossl (33.000) 135.0001 The amounts included in the balance sheet arising from the charity's obligatsons in respect ol defined benefit plans ao as follows.. 2024 2023 P￿sent value of defined benefit obligations Fair value of plan assets 4.496.000 3,916,000 13,159,000) 12.441,0001 Deficit in scheme 1.337.000 1.475,000 -23- THE LEADERS OF WORSHIP AND PREACHERS HOMES NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 19 Retirement benefit Schemes Movements in the present value of defined benefit obligations.. 2024 Liabilities al 1 September 2023 Benefits paid Effed of changes in assumptions Igainlnoss Effect of experi$n¢e adjustments Igain)lloss Interest cost Past service cost Liabilities assumed in b(tsiness combination 3.916,0 (180.0001 93,000 3.000 206,CpJO 458,COJ Al 31 August 2024 4,496.(JJ) The defined benefit obligations arisa from plans which are wholly or partly funded. Movements in the fair v8lue of plan assets.. 2024 Fair value of assets at 1 September 2023 Interest income Retum on plan assets (exduding amounts induded in net inleresll Benefits paid Contributsons by the employer Assets acquired in business combinatson 2,441,￿0 133,000 63,000 (180,000 173.000 529,IMI At 31 August 2023 3.159,CiJO Reconciliation of funded position.. 2024 2023 Nel defined benefit liability al start of persod Expgnse recogni$ed in profil and Ios5 Gainlllossl recognised in other comprehensive income Contributions made by the tharity 11.475.000} {1,496.0001 12,000} 1142,00a1 133,000) 135,000} 173.000 158,000 Net defined benefit liability at the end of the period., (1,337,000) 11,475,oc>o) The fair value of plan assets al the reporting period erKI wa$ a$ follow5.' 2024 2023 Equity instruments Corporate bonds Liability Driven Invèstrnents Cash InSU￿d pensioners 372,000 285.000 1,630.000 425,000 447,000 124,000 243,000 1,605,000 49,000 420,000 3,159,000 2,441,0Tr) -24- THE LEADERS OF WORSHIP AND PREACHERS HOMES NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 20 Restricted funds The In￿Me funds of the charity ifidude restricted funds comprising the following unexpended balances of donations and grants hekd on trust for spe¢ffic purposes.. Movement in funds Resource8 èxponded BalarK• at 1 S•Krtomber 2023 Ineomlng our¢•a Transfern Balan￿ at 31 August 2024 Amenities~ Minehead Amenities- Westdiff Amenities- Wo(xJhall Sp8 14,078 5,414 9,023 2,473 1,017 492 {5,172) {3,140) (2.5461 1,408 1,000 1,380 12.787 4,291 8,349 28,515 3,982 {10.858} 3,788 25,427 The amenities relate to balances available to use for each indiwdual care home. 21 Analysi8 of net assets bet4v•en funds Unrestrlctsd funds Designated fundg Regtrictsd funds Total 2024 2024 2024 2024 Fund balances al 31 August 2024 are reptesented by.. Tangible assets Investrnenls Current assel$llliabilitie$l Long te￿ liabilib.es Provisions and Pensions 4.208,836 686,554 215,642 (353,2021 4,208.836 686.554 451,069 1353,2021 {1.337.000) 210,000 25,427 {1.337.CKJOI 4.757,830 11,127,CKJOI 25,427 3,656,257 Unrestricted funds Designated fvnds Restricted funds Totsl 2023 2023 2023 2023 Fund balances a131 August 2023 are represented by". Tangible assets Investments Current assetsllliabilitiesl Long term liabilib.es Provisions and Pensions 4.1x3.565 604.160 351,627 1383,7341 4,CE3.565 604.160 690,142 {383.734) (1.475,IJ)01 310,000 28,515 11,475,C(iOI 4,635,618 {1.165,CQO) 28,515 3,499,133 -25- THE LEADERS OF WORSHIP AND PREACHERS HOMES NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 22 Designated funds The income fund$ of the charity include the following designated fvnds which have been sel as¢de out of unrestricted funds by the trustees for speufic purposes.. ovement In funds Balane• at Incomln9 ro•ou￿•S Rèsource8 9xpende(I I S•pt•mber 2023 Tran•fer¥ 31 Augu￿ 2024 Capital reserves Pension reserve 310,OIXI (1,475.000) (100,OCOI 210,000 11,337,CKJOI 173,386 (35.386) {1,165.CQO) 173,386 1100,OOJ} {35.386) 11, 127,CxJO) The capital reseNe fund was created to fund future capitsl worts al the homes. 23 Operating lfjase commitments At the reportj'ng date the charity had outstsnding commiknents for future minimum lease payments Ltnder non- cancellable operats'ng leases. which fall due as follows.. 2024 2023 Within one year Between and five years Over five years 8.685 29.398 1,295 7.190 22,220 2,438 39.378 31.848 24 Cash g•neratsd from operations 2024 2023 Surplus for the year 192,510 413.373 Adjustments for.. Investment income recognised in statement of finanaal aetivilies Fair value gains and lo$ses on investments Oepreaation and Impaimient of tangible fixed assets Pension recovery cash contributions {11.558) {82,394) 178.846 {173,3861 19,048) 12,570) 164,145 1158,822} Movements in working capital. Decreasellincreasel in $tocks Ilncreaselldecrease in debtors Increaselldecreasel in creditors {2801 4,520 132,3571 1,470 167.588 16.2051 Cash genernted from opgrntions 75,901 468,893 THE LEADERS OF WORSHIP AND PREACHERS HOMES NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 25 Analysls of chang8• in net fund81{d•btl At 1 S•ptthnbèr 2023 Cash flo￿ At 31 Aug￿1 2024 Cash al bank and in hand 854,5CQ (264,616) 589.884 Loans falling due within one year Loans falling due after more than one year {27.9901 1383,734) {2,5741 30,532 130.564) {353.2021 442,776 {238,658} 206.118 26 Relatsd party transactiong There were no disclosable related party transactions during the year. Remunerntlon of key management pgrsonnel The ￿muneration of key management personnel is as follows. 2024 2023 Aggregate compensation 77,862 114,696 27-