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2020-08-31-accounts

Report & Financial Statements

For the year ended 31 August 2020

West London Mission Circuit - Circuit Fund

Contents

Report of the Circuit Meeting 1 – 11
Independent auditors’ report 12-14
Statement of financial activities 15
Balance sheet 16
Statement of Cash Flows 17
Notes to the financial statements 18 – 32

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West London Mission Circuit - Circuit Fund Year ended 31 August 2020

Officers and advisers

Trustees (members of the Circuit Meeting)

Peter Cornick (Chair) Andrew Hoban Pei Ling Chay Belinda Letby Lai Kuin Cheong Nick Novak Sallie Choate Emerson Rizzi Roger Cotterrell Christine Robson James Cruddas Margaret Rudland Linda Gilson Martin Single John Hicks Alethea Siow Mary Hicks Cathy Slater Kong Ching Hii Gordon Slater

Chief Executive Officer

Central office

Auditors

Bankers

Charity number

Amy Tang Rebecca Warren Edna Wijeratna Danny Wong Gerry Wong Rayman Wong Sherene Wong William Wong Jongikaya Zihle

Roger Clark

19 Thayer Street London W1U 2QJ

Moore Kingston Smith LLP Devonshire House 60 Goswell Road London EC1M 7AD

HSBC plc 90 Baker Street London W1U 6AX

1133739

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West London Mission Circuit - Circuit Fund Year ended 31 August 2020

Report of the Circuit Meeting

Chair's Introduction

I am delighted to welcome you to this annual report of the West London Mission Circuit.

A Christian organisation, the West London Mission is rooted in the Methodist tradition and is part of the Methodist Church in Great Britain. It has been transforming lives, both in spiritual terms and in meeting social need, for over 130 years.

With two city centre churches, Hinde Street and King’s Cross, and a student hostel, Methodist Chaplaincy House, the West London Mission worships God and invites its members to live as disciples of Jesus, guided by the Holy Spirit. This year, the COVID-19 pandemic has radically altered the way both churches worship and serve their community.

In March, both churches were in the midst of offering night shelter and day care provision for people sleeping rough. The churches, guided by the Superintendent Minister and the CEO, were swift to curtail these activities, before the wider lock-down, realising that congregant settings would accelerate the virus, particularly among vulnerable client groups. Worship immediately migrated online, and both churches have successfully grown their Sunday attendance and continued with midweek prayer and class meetings. Groups such as ‘anonymous’ meetings had to close, which we are aware has adversely affected many regular users. The churches have now begun to open up for groups supporting homeless people and ‘anonymous’ meetings, having put in place COVID-19 secure measures following thorough risk assessments. Hinde Street briefly opened for worship in the summer before the Tier 2 restrictions of the autumn, but King’s Cross has not reopened yet since March. The return of support groups is slow, and re-opening for worship is being kept constantly under review. The impact of COVID-19 on each church financially has been profound and the Circuit has subsidised much of the losses. The staff and students of Methodist Chaplaincy House have been highly motivated to maintain a safe environment, forming their own ‘bubble’. To date, there have been no COVID cases in the hostel which, given the risk of such an establishment, reflects the rigorous restrictions imposed.

Through the WLM organisation, we offer professional services which empower positive change amongst people who present to our seven diverse services. Our client group is varied, with services catering for people who are homeless, suffering from addictions, who have recently been in prison, and supported accommodation for ex-military personnel. A community hub provides key worker accommodation as well as financial and digital resilience, and an affordable counselling service addresses a multitude of needs including poor mental health.

COVID-19 has profoundly affected the way each service works, with an initial emphasis on protecting the spaces from the virus by restricting access. This has developed into safely managing the inevitability of COVID cases in the services. There has been a heightened awareness of wellbeing amongst the staff and user groups as a result of the pandemic, and smarter ways of working have been developed which will remain. The Circuit has made substantial amounts of money available to WLM Services, to cover the costs associated with COVID. This might well be viewed as an unforeseen draw on resources, but in reality, it represents a significant investment in the wellbeing of both staff and service users.

In what has been an extraordinary year, I commend this report to you, and ask that you would pray for all the work which is carried out across the West London Mission, as we seek to uphold the values of the Methodist Church which combines prayer and worship with social concern and action.

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West London Mission Circuit - Circuit Fund Year ended 31 August 2020

Report of the Circuit Meeting (continued)

Objectives and Activities

The West London Mission Circuit (“the Circuit”) is part of the Methodist Church. It has two city-centre churches, at Hinde Street in Marylebone and at King’s Cross, and two areas of mission which are priorities for the churches and the Circuit. Each of the churches engages in worship, learning and caring, service and evangelism in ways that reflect Methodist tradition and their distinctive identity, history and context.

The activities of the churches are the responsibility of their respective Church Councils, which administer their own funds, which are not accounted for in these statements. However, the Circuit is responsible for providing accommodation and paying the stipends and associated costs of the ministers stationed in the Circuit, and employing the lay workers that work in these churches.

The Circuit runs a wide range of housing and community services under the "WLM Services" label, for people affected by homelessness, poverty and trauma, employing 70 professional staff jointly with WLMHA, in seven different services across London. The Circuit also works with students and young adults, at Methodist Chaplaincy House (a student community at King's Cross) and in both churches. All this work is an expression of our historic roots and our inclusive Christian ethos.

The WLM services are managed by the Circuit either directly or as agent for the West London Mission Housing Association Ltd (WLMHA). In the case of those services managed directly by the Circuit, these accounts include all their income, expenditure, assets and liabilities. In the case of services managed on behalf of WLMHA (which is a separate legal entity), the WLMHA accounts (which are available separately) include full details of their income, expenditure, assets and liabilities. By agreement with the Circuit, the net surplus or deficit of each service, and the expenses of running WLMHA itself, are passed to the Circuit and reflected in these Financial Statements as a net sum. Details of the ongoing services are as follows.

Services managed directly by the Circuit:

WLM Seymour Place

This is situated at 134 – 136 Seymour Place, London W1. Following refurbishment the building is being developed as a community hub focusing on assisting rough sleepers into employment. The upper floors have been converted to offices for the WLM senior team.

WLM Katherine Price Hughes House

This is situated at 28 Highbury Grove, London N5, in premises leased by the Circuit from WLMHA. It is an "approved premise" under the Criminal Justice and Courts Service Act 2000 and provides housing and support services for men released from custody on licence.

WLM Highbury Counselling Centre

This was also based at 28 Highbury Grove and is in the process of relocating to newly acquired premises at 12 Woodfall Road, London N4. It provides low cost counselling to the local community.

Services managed as agent for WLMHA:

WLM The Haven

This is located at 280 Holly Park, London N4. It provides specialist residential care for men with long term alcohol dependency.

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West London Mission Circuit - Circuit Fund Year ended 31 August 2020

Report of the Circuit Meeting (continued)

WLM Burgess Park House (WLM Ex-Military Supported Housing)

This is situated at 56 Camberwell Road, London SE5. It provides supported housing for exservice people who have experienced homelessness offering support in sustaining accommodation.

WLM Cherry Tree House (WLM Ex-Military Supported Housing)

This is situated at 343 Clapham Road, London SW9. It provides follow on accommodation for residents of Burgess Park House to move on to their own flat when ready for independent living.

WLM St Luke’s Centre

This property is located at 25A Wincott Street, London, SE11 4NT. It is a service focussing on digital and financial inclusion for residents in Kennington as well as a 26 bedroom residential space developed in partnership with the Pret Foundation Trust for their ‘Rising Stars’ programme and for key workers.

Achievements and Future Plans

The mission of the Circuit’s housing and community services (operating under the WLM Services label) is to empower people affected by homelessness, poverty and trauma to make positive changes in their lives.

The financial year 2019-20 has been two contrasting periods for the Circuit and WLM Services with the time from September 2019 until March 2020 focused on the new annual plan and continued improvement, development and quality of our services, and the time from March to August 2020 responding to the global pandemic.

Prior to March 2020 we had completed the partial refurbishment of the WLM Seymour Place building and were delivering services to people sleeping rough in Westminster. We had developed a comprehensive action plan for our registered care home, WLM the Haven following a Care Quality Commission inspection in August 2019. We had begun the process of searching for a new home for WLM Highbury Counselling Centre (HCC) and had firmly established Pret House at WLM St Luke’s. We had undertaken improvements to the physical environments at both WLM Burgess Park House (BPH) and WLM Cherry Tree House (CTH). WLM Katherine Price Hughes (KPH) was operating at full capacity and planning its expansion with the impending move of HCC.

Since March 2020 our focus has been to keep our spaces, people who use our services and staff safe from COVID19. This required an incredible effort by everyone in WLM. A Business Continuity Plan (BCP) was written in the first weeks of March and launched on 16[th] of the month. The focus was limiting access to our spaces, ensuring staff could travel safely to work and an intensive cleaning regime throughout our sites. As part of the BCP a daily communication approach was developed to ensure that the WLM Services response to the pandemic was clear and centrally led on behalf of the Circuit. Online meetings were established swiftly and management and all staff updates were given daily.

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West London Mission Circuit - Circuit Fund Year ended 31 August 2020

Report of the Circuit Meeting (continued)

The challenge to manage the impact of COVID19 at WLM has been a collective effort with comprehensive support from the Circuit for the services and the churches, however we are also very grateful for the support of funders during the pandemic including:

Barnett & Sylvia Shine Charitable Trust City Bridge Trust Crisis Derwent London Edward Harvist Trust French Huguenot Church of London Charitable Trust Greater London Authority Homeless Link Howard De Walden Estate Hyde Park Place Estates Charity LCP Group Ministry of Housing, Communities and Local Government Paddington Partnership Portman Foundation Rayne Foundation Ropes & Grey Rotary Club of St. Marylebone Royal Lancaster Hotel Tesco Bags of Life Vistex Westminster City Council Zendesk

Without their support we would not have been able to protect our spaces, people who use our services and staff. To the end of August we were able to ensure that no outbreaks of COVID19 occurred within our sites.

Despite all the challenges through the financial year 2019-20 WLM has continued to deliver support through our residential and community settings. In order to ensure momentum has not been lost due to the pandemic we have rolled out new systems including Inform, a cloud based information management system for the front line services, and iCompleat, an invoice management system. Below, we outline the different services and what they achieved in 2019-20.

WLM Services Review

WLM Highbury Counselling Centre (HCC)

HCC worked with an average of 105 people a week in 2019-20. The service moved online in March 2020 with the impact of the pandemic and the volunteer counsellors adapted brilliantly to the new way of working using Zoom to retain patients when face to face meeting no longer became possible. During 2019-20 the focus has also been on finding a new home for the service as it had outgrown the sharing arrangement with KPH. A new building in Finsbury Park was found in the summer of 2020 and a purchase was completed in autumn 2020 with the service looking to open in spring 2021 following the pandemic vaccination programme.

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West London Mission Circuit - Circuit Fund Year ended 31 August 2020

Report of the Circuit Meeting (continued)

WLM Seymour Place (SP)

Following the refurbishment of WLM Seymour Place from September to December 2019, we launched a 15 bed Night Centre from the building in January 2020. The impact of COVID19 meant that communal settings presented too significant a risk. WLM took the decision in March to place those people using the Night Centre into local hotels so that they could have en-suite facilities. Through our membership of the Westminster Homeless Partnership and funding from Westminster City Council, WLM joined the ‘Everyone In’ initiative to support over 300 people in hotel settings. This initiative ran through the summer providing vital safe spaces for people sleeping rough in Westminster.

WLM Asset Coaches

In early 2020 we launched our partnership with May Day Trust to move the organisation towards an ‘asset based’ approach towards the people who use our services. Two new ‘Asset Coaches’ were recruited in March 2020 but due to the impact of COVID19 were not able to start with the organisation until September 2020. This new strengths-based philosophy will be the cornerstone of the WLM approach to service users, including a review of organisational structure and communication over the coming year and embedding the ‘Asset Coach’ offer for our residents and partners. We secured funding from MHCLG to deliver an Asset Based Winter Night Service operating from hotels until March 2021.

WLM St Luke’s

WLM St Luke’s continued in the first half of 2019-20 to offer a range of support in the local area for individuals needing help with financial inclusion and digital access in Lambeth. Training was delivered to 209 different individuals through a range of workshops, one-to-one and group sessions on such themes as Energy Saving, IT for Beginners, Confidence Building, Universal Credit and Budgeting. The Digibuddies programme had 468 attendees in total. A new contract with Lambeth Adult Learning was also secured to deliver online support. Key worker accommodation in St Luke’s has been at almost full occupancy throughout the year and Pret House has retained 6 spaces following the impact of the pandemic on Pret a Manger and the Pret Foundation. We continue to be grateful for their partnership approach.

WLM Ex-Military Supported Housing

Our Ex-Military Supported Housing Projects at WLM Burgess Park House (BPH) in Camberwell and WLM Cherry Tree House (CTH) in Clapham had a busy year supporting people who had left the armed forces. The service offered support through its 11 spaces at BPH and 6 at CTH. The team continue to work closely in partnership with the Royal British Legion, SSAFA and STOLL to provide a package of support to ensure the transition into civilian life can be as successful as possible for those we support.

WLM Katherine Price Hughes House (KPH)

KPH at Highbury delivers an Approved Premises service for the Ministry of Justice in partnership with the National Probation Service. With 20 bedrooms for individuals coming out of prison the service recorded over 90% occupancy until March 2020. The service worked closely with the National Probation Service and the Ministry of Justice to ensure that the space was safe and free from COVID19. Very sadly our much loved life skills sessional worker, Joyce Meggie, succumbed to the virus and will be very much missed by the service and a suitable memorial will be established in 2021. With the move of HCC out of the shared building, plans are now in place to expand KPH occupancy to the ground floor and dialogue is continuing with NPS for work to be undertaken in 2021.

WLM The Haven

WLM The Haven continues to offer accommodation as a specialist care home for men with alcohol dependency. A comprehensive review of the service was undertaken in 2019-20 following the CQC visit in August 2019, with new management and new protocols in place. The impact of the pandemic meant that in order to protect the space occupancy was reduced to 20 residents and a comprehensive system of control was

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West London Mission Circuit - Circuit Fund Year ended 31 August 2020

Report of the Circuit Meeting (continued)

introduced to align with the initial lockdown in March-June 2020 as part of the BCP. Changes were also made to the physical environment with a separate medication room refurbished and individual offices created on the upper floor to enable COVID safe working within the space.

WLM Fundraising

The management of WLM Fundraising was outsourced to The Fundraising Studio in 2019-20 and a new Fundraising Administrator and Fundraising Community & Events Coordinator were recruited. The corporate fundraising engagement has also been delivered by an external consultant. The team delivered on the fundraising target for the year of over £600,000 and have recruited a new Trust & Foundations Manager for the new financial year.

WLM Communications

In order to raise the profile of WLM and reach a wider audience, a collaboration with the advertising agency AMVBBDO was developed which included the development of WLM's first strategic brand awareness campaign ‘Not Who They Are’ which highlights that people affected by homelessness remain individuals - homeless is what they are, not who they are. The campaign was launched on 25[th] November 2019 and finished on 31[st] January 2020. The online and local press promotion was combined with a poster campaign targeting the Marylebone area within the Marylebone Underground Station, where it was visible to approximately 400,000 passengers. Social media and website use has increased significantly in the period with more than 1,300 website visits and around 900,000 social media views in total on all three main WLM social media accounts (Facebook, Twitter, Instagram) . Following the impact of the pandemic, WLM has expanded its communication strategy to the Methodist press (Methodist Recorder newspaper and the Methodist Church’s newsletters and website) and podcast to continue to raise the profile of WLM’s work with people who use our services.

WLM Faith and Spirituality

The WLM Faith and Spirituality provision continued to focus during the first half of 2019-20 on offering appropriate chaplaincy and pastoral support through a regular programme of visiting and engagement with the frontline services by the Chaplain and chaplaincy volunteers. With the onset of the pandemic, this was adapted and moved online. In addition, a programme of wellbeing support for staff was initiated and delivered in partnership with the Human Resources department. This well-being approach has been invaluable to help with the psychological impact of COVID19.

Other Circuit activities

Methodist Chaplaincy House (MCH) continued to deliver a thriving student community during 2019-20 but as with all areas of the Circuit faced the challenge of the pandemic from March 2020 and formed a single household to manage the impact of lockdown.

Both Hinde Street Methodist Church and Kings Cross Church successfully moved to online worship during the pandemic and have been able to deliver limited COVID19 community focused programmes for local groups and through their food provision for people who are homeless.

Financial Review

The financial statements for the year ended 31 August 2020 show a deficit of £570,000 on general funds before transferring £78,000 to the designated funds. The balance on the general income reserve at 31 August 2020 was £132,000 (after transferring £723,000 from the capital reserve, as agreed by the Circuit Meeting, to cover Covid-related losses in WLM services, the local churches and a shortfall in investment income) which the Circuit considers to be satisfactory and in line with its reserves policy.

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West London Mission Circuit - Circuit Fund Year ended 31 August 2020

Report of the Circuit Meeting (continued)

The WLM services are funded largely by accommodation charges, grants from statutory and other bodies, and fundraising for specific projects. Details can be found within the WLM Services accounts which are available separately. The Circuit made a specific contribution of £134,000 to this work from its investment income.

Ministerial and other costs relating to the local churches are funded by an assessment on the local congregations; these were partially waived in 2020 to support the churches in view of the loss of income caused by closure during the pandemic. The Circuit received grants from the Sarawak Chinese Annual Conference and the Pret Foundation Trust in respect of our Chinese presbyter, lay workers and the Hinde Street community worker. We also receive assistance from the Methodist Church in Hong Kong for our work with the Chinese congregation. The running costs of Methodist Chaplaincy House are met fully from accommodation charges.

Structure, Governance and Management

The following financial statements are those of the Circuit Fund of the Circuit. They are made by the Circuit Meeting which is, by the Standing Orders of the Methodist Church, “the principal meeting responsible for the affairs of the Circuit”, and the members of which are also, so far as of full age, the managing trustees of all the Model Trust property of the Circuit. Throughout the year under review all members of the meeting were of full age.

A Circuit is the unit of one or more local churches (in this case two) within the Methodist Church of Great Britain in which one or more ministers and probationers are stationed. Its operations are governed by the Methodist Church Act of 1976 (including the Model Trusts forming a schedule to it), the Deed of Union referred to in that Act and the Standing Orders of the Methodist Church (“Standing Orders”). The objects of any such Circuit are to further the purposes of the Methodist Church, and as part of the Methodist Church it is a charity. Under the Charities Act 2006, the Circuit, which like other Methodist trust bodies had been exempt from registration, was required to register with the Charity Commission, and was registered with effect from 25 January 2010.

The capital money and other capital assets of the Circuit Fund, described in these financial statements, form a trust fund held in accordance with the Model Trusts of the Methodist Church (“the Model Trusts”). The assets, such as property and investments, are therefore held by the Trustees for Methodist Church Purposes (“TMCP”) as custodian trustee. The members of the Circuit Meeting, as managing trustees, exercise all the other powers of trustees, but subject to the terms of the Model Trusts and Standing Orders, which require the consent of district and connexional bodies for certain categories of transaction. The income of the fund, in addition to that arising from the capital assets, includes assessments on the local churches and grants from other Methodist bodies. The first charge on this income is the payment of ministerial stipends and the upkeep of manses.

The Circuit Meeting has appointed committees with delegated functions, including the WLM Services Committee, the Property & Finance Committee, the Human Resources Committee and the Methodist Chaplaincy House Committee. All of these bodies report regularly to the Circuit Meeting.

Managing trustees and their appointment

The Circuit Treasurers and Treasurers of the Fund under Standing Orders are the Circuit Stewards who during the period from 1 September 2019 to the date of this report were as stated below:-

William Wong Rayman Wong Alethea Siow Amy Tang Nick Novak

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Report of the Circuit Meeting (continued)

The managing trustees of the Fund are all those members of the Circuit Meeting who are of full age. The membership of the Circuit Meeting comprises presbyters and deacons in the Circuit, representatives of the two local churches, and other persons appointed by the Meeting, all of whom must be members of the Methodist Church of Great Britain or another Methodist church. New trustees receive an induction when they join the board; trustee training is arranged for all trustees as and when required.

A full list of members of the Circuit Meeting can be obtained from the Circuit offices at 19 Thayer Street, London W1U 2QJ.

Key management personnel and basis of remuneration

Key management personnel comprises the Superintendent Minister, Chief Executive Officer, Deputy CEO, Head of Central Services and Head of Finance. The stipend of the Superintendent Minister is fixed annually by the Methodist Conference; in addition, the Circuit pays a local allowance, contributes to the Methodist Ministers' Pension Fund and provides a manse. Other staff salaries are fixed by reference to the NJC local government scale for comparable posts, and benchmarked from time to time against market comparables. The Circuit also contributes to a group personal pension scheme and provides life assurance cover.

Risk management

The trustees have identified the following as the most significant risks and uncertainties facing the Circuit as a whole (not including Covid-19 which is referred to below):

1 Personnel

The Circuit relies heavily on the knowledge and expertise of lay volunteers, particularly in the areas of finance, property and the governance of the WLM services. This risk has been managed by appointing qualified professionals to assume more of the responsibilities of management, enabling the lay members to exercise a governance role. The membership of the WLM Services Committee has been broadened to include new members from outside the Circuit, to the extent permitted by Methodist Church regulations. The trustees will continue to look carefully at succession planning, and the use of professional staff.

2 Finance

The Circuit depends on its investments and rental income to sustain its work. This risk is managed by an investment sub-committee which receives guidance from the officers of the Central Finance Board, and which sets policy and monitors investment performance. Investments are readily marketable, and a minimum of £400,000 is held in cash to meet short term cash flow requirements.

The Circuit also depends critically on fundraising income to sustain the WLM services. This risk has been managed by strengthening the capacity of the successful fundraising team.

3 Reputation

The WLM Services Committee identified adverse publicity as a reputational risk which could arise through the failure of a project, and observed that any related legal action could be damaging to the Circuit as well as costly. This risk is managed through regular reporting by senior management, and a clear framework of accountability including regular supervisions. External consultants are used where appropriate for legal, human resource and strategic advice. Safeguarding policies and practices are embedded across the Circuit, and health and safety compliance processes are in place.

The Circuit Meeting has resolved that all committees will review their risks and their management annually and report to the Circuit Stewards, by September 30 each year, for consideration at the next Circuit Meeting.

Reserves policy

The policy of the Circuit is that there should be neither a surplus nor a deficit on the Circuit Fund’s income reserve, taking one year with another. Its current practice is to place all income remaining after the payment

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West London Mission Circuit - Circuit Fund Year ended 31 August 2020

Report of the Circuit Meeting (continued)

of ministerial expenses, manses, the student work and other specific projects, at the disposal of the WLM services.

The Donald Soper Fund is an independent fund whose sole objective is to support the WLM services. Any unbudgeted deficits on the services are funded by grants from the Donald Soper Fund, which are expected to be made good in later years. In the same way, any savings against budget are passed on to the Donald Soper Fund. The balance on the Circuit's income reserve (£132,000 at the balance sheet date) is maintained at the minimum level (£100,000 to £150,000) consistent with retaining the ability to absorb temporary deficits. The capital reserves of £16,005,000 represent properties in use for the purposes of the Circuit, and investments (including investment properties let for market rent) generating income upon which the Circuit depends to sustain its core activities.

Investment policy and performance against policy

The investments of the Circuit Fund are managed with the objective of maximising real, sustainable income over the long term. The funds are currently invested in a mixture of direct property investments, and equity, property and fixed income pooled funds which are all managed by the Central Finance Board of the Methodist Church, and regular guidance is received from the Board’s Investment Manager. In pursuance of the above objective, part of the income of the Fund, other than from property-based and equity investments, is set aside and capitalised each year in an inflation reserve in order to preserve the real earning power of the Fund. The trustees monitor investment performance on an ongoing basis and although both income and capital values have been adversely affected by the pandemic, they are satisfied with the performance of the investment portfolio during 2020.

Grant making policy

The Circuit does not normally make grants to non-Methodist bodies.

Public Benefit

The charity's trustees have complied with the duty in the Charities Act 2011 to have due regard to Public Benefit guidance published by the Charities Commission. All trustees give their time voluntarily and receive no benefit from the charity.

Brexit

The trustees believe that the Circuit will not be affected by the UK's departure from the European Union, because all of its activities are within the UK, and any staff who are EU citizens will be able to continue working in the UK.

Coronavirus (COVID-19)

The trustees have considered the impact on the Circuit of the COVID-19 coronavirus pandemic. A Business Continuity Plan was put into effect on 16 March 2020, with the objectives of focusing resources on the most vulnerable users of WLM services, and ensuring safe working for staff. As the situation continues to develop it is not possible to quantify the ongoing financial impact, but the trustees believe the Circuit's cash and investments reserves will be sufficient to absorb the impact for at least twelve months from the date of the approval of these financial statements.

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West London Mission Circuit - Circuit Fund Year ended 31 August 2020

Report of the Circuit Meeting (continued)

The Circuit Meeting’s responsibilities

The Circuit Meeting is required to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Circuit as at the balance sheet date and of its income and expenditure, for the financial year. In preparing those financial statements, the Circuit Meeting is required to:

The Circuit Meeting is responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Circuit. It is also responsible for safeguarding the assets of the Circuit and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by the Circuit Meeting on 23 February 2021 and signed on its behalf by

……………………. ) Alethea Siow ) ) ) Members of the Circuit Meeting

………………………...)

Gordon Slater

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West London Mission Circuit - Circuit Fund Year ended 31 August 2020

Independent auditor's report to the members of West London Mission Circuit Fund

Opinion

We have audited the financial statements of West London Mission Circuit Fund for the year ended 31 August 2020 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 ‘The Financial Reporting Standard Applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs(UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

Other information

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

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

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on the work we have performed, we conclude that there is a material misstatement of this other information,

Independent auditor's report to the members of West London Mission Circuit Fund (continued)

we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Circuit Meeting’s responsibilities statement set out on page 11], the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

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Independent auditor's report to the members of West London Mission Circuit Fund (continued)

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Use of our report

This report is made solely to the charity's trustees, as a body, in accordance with Chapter 3 of Part 8 of the Charities Act 2011. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to any party other than the charity and charity's trustees as a body, for our audit work, for this report, or for the opinion we have formed.

Moore Kingston Smith LLP Date: 9 April 2021
Statutory auditor Devonshire House
60 Goswell Road
London
EC1M 7AD

Moore Kingston Smith LLP is eligible to act as auditor in terms of Section 1212 of the Companies Act 2006.

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West London Mission Circuit – Circuit Fund Statement of financial activities For the year ended 31 August 2020

Notes
Income
Donations and legacies
3
Income from investments
Investment income
4
Rental income
5
Income from charitable activities
WLM services
6
Local ministry
6
King’s Cross Chaplaincy House
6
Total income
Expenditure
Expenditure on raising funds
Investment management costs
WLM fundraising
Expenditure on charitable activities
Local ministry
WLM services
King’s Cross Chaplaincy House
Other expenditure
Kings Cross Redevelopment Write off
Total expenditure
7
Net income/(expenditure) before transfers
17,18
19
Transfers between funds
Net income for the year
Other recognised gains and losses
Realised / unrealised (loss)/gain on
investment assets
14
Revaluation of investment properties
11
Net movements in funds
Fund balances at 1 September 2019
17,18
19
Fund balances at 31 August 2020
17,18
19,20		 General
funds
Designated
funds

£’000
£’000
50
20
295
-
81
(4)
374
-
69
-
118
-
987
16
22
-
229
249
35
728
59
155
9
174
-
-
-
1,557
103
(570)
(87)
(78)
78
(648)
(9)
(880)
-
(145)
-
(1,673)
(9)
17,810
707
16,137
698		 Restricted
funds
£’000
-
-
-
1,657
56
-
1,713
-
56
1,637
-
-
-
1,693
20
-
20
-
-

20
9
29		 Total
2020
Total
2019
£’000
£’000
(Note 22)
70
24
295
411
77
93
2,031
1,792
125
224
118
129

2,716
2,673

22
23
229
211
340
395
2,424
1,808
164
140
174
139
-
514

3,353
3,230

(637)
(557)
-
-

(637)
(557)
(880)
(84)
(145)
200

(1,662)
(441)
18,526
18,967

16,864
18,526

All the above amounts relate to continuing activities. There are no recognised gains or losses other than those included above.

15

West London Mission Circuit – Circuit Fund

Balance sheet as at 31 August 2020

Notes 2020 2019
£’000 £’000
Fixed assets
Trust properties 10 2,371 2,367
Investment properties 11 3,340 3,485
Concessionary loans to West London
.Mission Housing Association Limited 12 1,065 1,091
Tangible fixed assets 13 82 92
Intangible fixed assets 13 26 19
Investments 14 9,244 10,224
────── ──────
16,128 17,278
────── ──────
Current assets
Debtors 15 827 742
Cash at bank and in hand 59 389
Cash on deposit 554 818
────── ──────
1,440 1,949
Creditors: Amounts falling due
within one year 16 (704) (701)
────── ──────
Net current assets 736 1,248
Creditors: Amounts falling due after
more than one year - -
────── ──────
Net assets 16,864 18,526
══════ ══════
Funds
General funds – capital 17 16,005 17,717
– income 17 132 93
────── ──────
16,137 17,810
Designated funds 18 698 707
Restricted funds 19 29 9
────── ──────
16,864 18,526
══════ ══════

Approved by the Circuit Meeting on 23 February 2021 and signed on its behalf by

……………………. ) Alethea Siow ) ) ) Members of the Circuit Meeting Gordon Slater )

16

West London Mission Circuit – Circuit Fund

Statement of Cash Flows for the year ended 31 August 2020

Cash flows from operating activities
Net (shortfall) / surplus
Adjustments for:
Depreciation
Amortisation
Loss on investments
King's Cross write off
Revaluation of investment properties
Investment income
Trade and other debtors
Trade and other creditors
Rental income
Cash flows used in operating activities
Purchase of property plant and equipment
Purchase of tangible and intangible fixed assets
Repayment of concessionary loans
Proceeds on disposal of investments
Investment income
Rental income
Cash flows generated from investing activities
Net (decrease)/increase in cash
Cash balance at 1 September 2019
Cash balance at 31 August 2020		 2020
£’000
(1,662)
29
8
880
-
145
(295)
159
(239)
(77)
(4)
(36)
26
100
295
77

 2020
£’000
(1,052)
458
(594)
1,207

613		 2019
£’000
(441)
27
5
84
514
(200)
(411)
180
(163)
(93)

(62)
(86)
7
751
411
93


 2019
£’000
(498)
1,114
616
591

1,207

17

West London Mission Circuit – Circuit Fund

Notes to the financial statements For the year ended 31 August 2020

1 Accounting policies

1.1 Accounting convention

The financial statements have been prepared in accordance with 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 2015) - (Charities SORP (FRS 102)) and the Charities Act 2011.

West London Mission Circuit Fund meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

1.2 Basis of preparation

The financial statements include the income and expenditure of the West London Mission’s housing and community services which include four continuing services, as set out in the Report of the Circuit Meeting on pages 2 and 3, for which the legal ownership rests with West London Mission Housing Association Limited (WLMHA). In respect of these services the Circuit acts as agent for WLMHA and assumes financial responsibility for any deficit incurred.

The Trustees have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the charity to continue as a going concern. The Trustees have made this assessment for a period of at least one year from the date of approval of the financial statements and has considered the potential impact of the Covid-19 pandemic. In particular the Trustees have taken account of pressures on donations and investment income and the likely impact of the pandemic on investment values, as well as expenditure. The Circuit has significant investments that can be drawn on if necessary to support expenditure.. After making enquiries the Trustees have concluded that there is a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. The charity therefore continues to adopt the going concern basis in preparing its financial statements.

In respect of services directly under the Circuit’s control the income, expenditure, assets and liabilities of these services have been incorporated in these financial statements on a gross basis.

In respect of services under the control of WLMHA, only the net cost of these services to the Circuit is included in these financial statements. These services are incorporated into the financial statements of WLMHA on a gross basis.

In order to comply with the requirements of statutory and grant giving bodies all the WLM services, whether controlled by the Circuit or the Housing Association, draw up a non statutory operating financial statement to 31 August annually, which gives a detailed analysis of income and expenditure and which are available from the Circuit office.

The Circuit is responsible for the management of King's Cross Methodist Chaplaincy House. This project is under the control of the Circuit and is incorporated into these financial statements.

1.3 Investment income

This comprises gross interest and distributions from CFB Funds receivable by the Trustees for Methodist Church Purposes, Manchester, who act as custodian trustees. Income tax deductions and credits are recoverable by those Trustees by virtue of the Fund’s charitable status. It also includes bank deposit interest.

1.4 Expenditure

Costs of charitable activities comprises services supplied and activities undertaken which are identifiable as wholly or mainly in support of the Circuit’s objectives.

Those costs shown as Governance costs relate to the management of the Circuit’s assets, organisational administration

18

West London Mission Circuit – Circuit Fund

Notes to the financial statements For the year ended 31 August 2020

Accounting policies (continued)

and compliance with constitutional and statutory requirements.

Where possible costs have been allocated directly to activities. Where costs relate to more than one activity these costs have been allocated across activities based on use of resources by each activity.

1.5

Depreciation and amortisation

Individual items of office furniture and equipment (other than computer and telephone equipment – see below) costing less than £1,000 are charged to revenue. Depreciation/amortisation is provided on items costing more than £1,000 at rates calculated to write off their cost evenly over their expected useful lives.

The principal rates used are as follows:

Photocopiers - 25% pa straight line Computers & software - 20% pa straight line Telephones - 25% pa reducing balance Manse equipment - 10-20% pa straight line

No depreciation is provided on freehold properties as the Circuit believes that both the depreciation charge for the year and the accumulated depreciation charge on these properties would be immaterial. The Circuit also ensures that the properties are kept in a good state of repair. Impairment reviews are undertaken on the properties and the Circuit believes that due to the high replacement cost and therefore value in use of the properties they should not be considered as impaired. Past experience shows that properties are disposed of at above book value.

Capital expenditure on leasehold properties is written off over the life of the lease.

1.6 Pension costs

Ordinary contributions payable are charged to the Statement of Financial Activities in the period to which they relate.

1.7 Profits/(losses) on sales of properties and investments

These are credited or charged to the capital reserve fund of the Circuit in the year in which they are realised.

1.8 Investments

Investments are included in the Balance Sheet at market value which gives rise to unrealised gains and losses which are included in the Statement of Financial Activities. Realised gains and losses arising on disposals of investments are separately identified in the Statement of Financial Activities.

1.9 Investment properties

Properties held for the purpose of generating income are considered to be investment properties; these are held at fair value. The value of the properties are regularly reviewed in order to identify any permanent impairment.

1.10 Concessionary loans

Loans made in pursuit of the Fund’s charitable purposes are held within fixed assets and are stated at original cost and subsequently adjusted for any subsequent repayment or impairment.

19

West London Mission Circuit – Circuit Fund

Notes to the financial statements For the year ended 31 August 2020

1 Accounting policies (continued)

1.11 General funds – capital

Capital reserve fund

This represents monies set aside for capital projects allowed by the Methodist Church Act of 1976.

Inflation reserve

The Inflation reserve was established to preserve the real earning power of the Circuit’s investments.

The income allocated to this reserve represents that part of the yield from the Circuit’s investments which in the light of the movement in the official Retail Prices Index during the year, it is considered necessary to set aside, in order, as nearly as may be, to make good the capital value (in real terms) otherwise lost by inflation. The reserve is to be treated for all purposes as capital within the meaning and rules of the Model Trusts of the Methodist Church and subject to the consent of the Methodist Council, but retaining separate identity in the financial statements.

With effect from 1 September 2017, distributable investment income is calculated as 3.75% of the average closing market value of investments over the preceding seven years. The difference between this figure and the nominal income (after adjusting for inflation in accordance with the preceding paragraph) is met by a transfer from the capital reserve fund.

1.12 Designated funds

Designated funds are amounts set aside by the Circuit out of unrestricted funds for a particular purpose or project.

The Circuit has created the following designated funds:-

Dilapidations fund

The dilapidations fund represents amounts set aside in the WLM services, Methodist Chaplaincy House and the Ministers’ account for the future repair of buildings.

Development fund

The Development fund was established by the Circuit to allow for the future development of the work of the Circuit. The Circuit Meeting decided in January 2010 that legacies between £3,000 and £20,000, and the first £20,000 of larger legacies, would be credited to this fund.

1.13 Restricted funds

Restricted funds are those subject to external specific conditions. Restricted funds in the year comprised:

Chinese Work

Contributions are received from the Chinese congregation at King’s Cross and from other Methodist sources to support this ministry, and are used to meet the costs of the presbyter and his manse and part of the costs of the Chinese-speaking lay workers.

Hinde Street community work

A grant of £5,000 was received and has been used to cover part of the cost of this post.

WLM services

Grants and fees received for specific services or projects are treated as restricted income and used to cover all or part of the relevant costs.

20

West London Mission Circuit – Circuit Fund

Notes to the financial statements For the year ended 31 August 2020

2 Constitution

The terms on which the Circuit Fund assets are held are set out in the Report of the Circuit Meeting.

The managing trusteeship of 19 Thayer Street, 16 Hinde Street and 39 Marylebone Lane London W1, is shared between the Circuit and Hinde Street Methodist Church, according to the respective parts of the building occupied by them, and the management of the property is also shared by agreement between the two bodies. The same applies to the King’s Cross Methodist Chapel and Methodist Chaplaincy House, Birkenhead Street, London WC1, which is shared between the Circuit and King’s Cross Methodist Church.

3 Donations and legacies

General donations and covenants
Legacies		 Total
2020
£'000
7
63

70
════		 Total
2019
£’000
1
23
24
════

4 Investment income

This comprises dividends and interest received gross on:
Cash on deposit
CFB UK Equity Fund units
CFB Property Fund units
CFB Corporate Bond Fund units
WLMHA Loan indexation
WLMHA Loan interest
Allocated as follows:
Capital reserve
Inflation reserve
Available for Circuit activities		 Total
2020
£’000
5
178
39
27
5
41

295

5
13
277

295		 Total
2019
£’000
2
248
52
44
23
41
411
(22)
32
401
411

21

West London Mission Circuit – Circuit Fund

Notes to the financial statements For the year ended 31 August 2020

5
Investment property accounts
Rental income
Expenses
Surplus for the year
6
Income from charitable activities
WLM services
Grant income of consolidated services
Charges to WLMHA for unconsolidated services
Grant from Donald Soper fund
Local ministry
Assessments on local churches
Chinese Presbyter support
Student and young adult work
King’s Cross Chinese-speaking lay workers grants
King’s Cross Church contribution to dilapidations fund
King’s Cross Chaplaincy House		 2020
£’000
111
(34)
─────
77
═════
Total
2020
£'000
1,658
327
47

2,031
107
6
5
7
-

125
118

2,274

The assessments on local churches were applied in meeting part of the cost of ministers and lay workers, part of the cost of the offices at Thayer Street, and the cost of the District assessment.

22

West London Mission Circuit – Circuit Fund

Notes to the financial statements For the year ended 31 August 2020

7 Expenditure

7
Expenditure
Ministers and manses
Kings Cross Chinese speaking lay workers
Kings Cross community interns
District assessment
Grant to London District for Covid support
Central office costs
Hinde Street community work
Chaplaincy House costs
WLM services
Audit and accountancy
Net deficit/(surplus) of WLMHA services
King’s Cross redevelopment write off
Total
Costs of raising funds
Total expenditure
Voluntary income
Investment income (see note 4)
Rental income (see note 5)
Income from charitable activities (see note 6)
Net surplus by activity		 Hinde
Street
Church
£’000
88
-
-
24
-
84
-
-
-
-
-
~~-~~
196		 Kings
Cross
Church
Community
work
Local
Ministry
Total
WLM Services
Chaplaincy
House
Governance
Costs
Other costs and
income
£’000
£’000
£’000
£’000
£’000
£’000
£’000
74
-
162
17
12
-
30
19
-
19
-
-
-
-
5
-
5
-
-
-
-
15
-
39
-
-
-
-
-
-
-
-
-
-
25
-
-
84
78
30
-
101
-
31
31
-
-
-
-
-
-
-
-
122
-
-
-
-
-
2,247
-
-
-
-
-
-
-
-
18
-
-
-
-
82
-
-
-
~~-~~
~~-~~
~~-~~
~~-~~
~~-~~
~~-~~
~~-~~

113
31
340
2,424
164
18
156

~~-~~
229
~~-~~
~~-~~
22
(340)
(2,653)
(164)
(18)
(178)
~~-~~
-
~~-~~
~~-~~
70
113
182
-
-
-
~~-~~
~~-~~
~~-~~
~~-~~
77
125
2,031
118
-
-
(102)
(440)
(46)
(18)
(31)		 Total
2020
£'000
221
19
5
39
25
293
31
122
2,247
18
82
-

3,102
251
(3,353)
70
295
77
2,274
(637)		 Total
2019
£’000
219
47
12
34
-
296
38
111
1,877
17
(169)
514
2,996
234
(3,230)
24
411
93
2,145
(557)

Net surplus by activity

Where possible costs have been allocated directly to activities. Where costs relate to more than one activity these costs have been allocated across activities based on use of resources by each activity.

23

West London Mission Circuit – Circuit Fund

Notes to the financial statements For the year ended 31 August 2020

8 Net income/(costs) of WLM services

Services incorporated Katherine
Price
Hughes		 Highbury
Counselling
Centre		 Seymour
Fund-		 Central
costs
Total
on a gross basis House Place raising
£’000 £’000 £’000 £’000 £’000 £’000
Income - external 991 125 322 - 220
1,658
Expenditure - external (828) (120) (277) (229) (1,022)
(2,476)
Net surplus/(deficit) of ───── ───── ───── ───── ─────
─────
services controlled by 163 5 45 (229) (802)
(818)
Circuit ═════ ═════ ═════ ═════ ═════ ═════
Services incorporated on a net basis 2020 2019
£’000 £’000
St Luke’s (9) (12)
The Haven (146) 52
Ex-military Supported Housing (45) 8
Housing Association central net income 118 121
───── ─────
Net (deficit)/surplus (82) 169
═════ ═════
9 Emoluments
9.1 Staff
2020 2019
£’000 £’000
Staff costs (including agency costs) 1,366 1,413
National insurance 120 128
Pension contributions 119 134
───── ─────
1,605 1,675
═════ ═════
The above includes termination and redundancy
payments of £44,607.
Average number of permanent staff during the year 42 43
══ ══
Full time equivalent number of permanent staff
during the year 42 42
══ ══

24

West London Mission Circuit – Circuit Fund

Notes to the financial statements For the year ended 31 August 2020

9 Emoluments (continued)

Details of staff working in services managed on behalf of WLMHA are disclosed separately in the financial statements of WLMHA.

Two individual staff members earned more than £60,000 during this year.

Key management personnel comprises the Superintendent Minister, Chief Executive Officer, Deputy Chief Executive Officer, Head of Central Services and Head of Finance. The total employee benefits of the key management personnel of the charity were £291,687 (2019: £276,537).

None of the Treasurers of the Fund or other trustees received any remuneration, nor reimbursement of expenses, directly from the Circuit during the year.

9a Pension costs

The Circuit makes payments to a group personal pension scheme for staff other than Presbyters and Deacons, of which the assets are held in an independently administered fund. Presbyters and Deacons are covered by the Methodist Ministers’ Pension Scheme.

10 Freehold properties

2020 2019
£’000 £’000
At 1 September 2019 2,367 2,820
Additions during the year 4 61
Property write off (abortive planning application) - (514)
────── ──────
At 31 August 2020 2,371 2,367
══════ ══════
Represented by (all amounts relate to charitable activities) :
2020 2019
£’000 £’000
Circuit offices 394 394
Manses 1,452 1,452
WLM Services property 483 481
King’s Cross 42 40
────── ──────
2,371 2,367
══════ ══════

From 2012 to 2019 the Circuit appointed architects and other professionals to develop a scheme for the demolition and complete redevelopment of the King's Cross site. These costs amounting in total to £514,000 were capitalised as work in progress on the new building. Regrettably, planning consent for the scheme was refused in June 2019 by the London Borough of Camden, and the Circuit decided not to appeal against this decision. Consequently, these costs were written off in 2019 against the capital reserve fund.

25

West London Mission Circuit – Circuit Fund

Notes to the financial statements For the year ended 31 August 2020

The Circuit is considering alternative proposals for the future of the site

11 Investment property

nvestment property
Total
2020
£’000
At 1 September 2019 3,485
Revaluation (145)
───────
At 31 August 2020 3,340
═══════

The valuation of investment properties was reviewed as at 31 August 2020 by one of the trustees who is RICS qualified.

12 Concessionary loans

£852,076 (2019: £877,919) represents the balance outstanding under a loan to West London Mission Housing Association Limited for the purchase of The Haven in 2001. The loan is repayable in instalments commencing at £20,000 per annum, both principal and repayments being index linked. Interest is payable at 4.5%. £0 (2019: £0) of this loan is included within debtors as falling due for repayment within 12 months.

£212,842 (2019: £212,842) represents an advance to West London Mission Housing Association Limited for the shortfall in funding of Burgess Park House in 2004. The Circuit has agreed not to demand repayment except to the extent of WLMHA’s available cash. Interest is payable at the prevailing HSBC Bank rate.

13 Tangible & intangible fixed assets

Total
Fixtures and Manse tangible Intangible
fittings contents fixed assets fixed assets
£'000 £'000 £'000 £'000
Cost
At 1 September 2019 212 50 262 46
Additions 20 - 20 16
At 31 August 2020 232 50
282		 62
Depreciation/amortisation
At 1 September 2019 120 50 170 28
Charge for the year 29 - 29 8
At 31 August 2020 149 50
199		 36

26

West London Mission Circuit – Circuit Fund

Notes to the financial statements For the year ended 31 August 2020

Net book values
31 August 2020
31 August 2019
14
Investments
Market value
At 1 September 2019
Additions
Disposals
Realised and unrealised losses
At 31 August 2020
The above total comprises:
Units in CFB UK Equity Fund
Units in CFB Corporate Bond Fund
Units in CFB Property Fund
Units in CFB Mixed Managed Fund
Market value at 31 August 2020
Cost at 31 August 2020
15
Debtors
Balances due from associated bodies (see note
below)
Trade debtors
Other debtors
Prepayments
Accrued income		 83
92
─
═
─
═
═
─
═		 -
-
2020
£'000
10,224
-
(100)
(880)
─────
9,244
═════
6,222
2,189
832
1
─────
9,244
═════
6,393
═════
2020
£'000
432
246
29
42
78
─────
827
═════		 83
26

92
19

2019
£'000
11,059
-
(751)
(84)
──────
10,224
══════
7,182
2163
878
1
──────
10,224
══════
7,393
══════
2019
£'000
491
38
25
33
155
──────
742
══════

“Associated bodies” are Hinde Street Methodist Church, King’s Cross Methodist Church, West London Mission

27

West London Mission Circuit – Circuit Fund

Notes to the financial statements For the year ended 31 August 2020

Housing Association Limited, Donald Soper Fund and WLM services controlled by WLMHA. See note 22 for more details of related party transactions.

16 Creditors: Amounts falling due within one year

reditors: Amounts falling due within one year
2020 2019
£'000 £'000
Balances due to associated bodies (see note 15 185 63
above)
Trade creditors 101 90
Other creditors 220 277
Accruals 46 90
Deferred income 152 181
────── ──────
704 701
══════ ══════

17 General funds

re
Balance at 1 September 2019
Net surplus for the year
Unrealised gains on investment assets
Revaluation of investment properties
Transfer between funds
Transfer to dilapidations reserve
Balance at 31 August 2020		 Capital
serve fund
Inflation
reserve
Income
funds
£’000
£’000
£’000
16,736
981
93
23
13
(606)
(880)
-
-
(145)
-
-
(723)
-
723
-
-
(78)

15,011
994
132		 Total
£’000
17,810
(570)
(880)
(145)
-
(78)
16,137

The transfer between funds was made to cover Covid-related losses in WLM services, the local churches and a shortfall in investment income

18 Designated funds

esignated funds
Dilapidations Development
fund fund Total
£’000 £’000 £’000
Balance at 1 September 2019 687 20 707
Income (4) 20 16
Expenditure (103) - (103)
Transfer from general funds 78 - 78
───── ───── ─────
Balance at 31 August 2020 658 40 698
═════ ═════ ═════

28

West London Mission Circuit – Circuit Fund

Notes to the financial statements For the year ended 31 August 2020

The dilapidations fund represents amounts set aside in the WLM services, Methodist Chaplaincy House and the Ministers’ account for the future repair of buildings.

The Development fund was established to allow for the future development of the work of the Circuit. The Circuit Meeting decided in January 2010 that legacies between £3,000 and £20,000, and the first £20,000 of larger legacies, would be credited to this fund. £10,000 has been committed for preliminary work on a new scheme for King's Cross; other uses of the Fund will depend on suitable opportunities but it is expected to be used within 5 years.

19 Restricted funds

WLM
services
Chinese
Work
Hinde Street
community
work
£’000
£’000
£’000
Balance at 1 September 2019
9
-
-
Restricted income in year
1,657
51
5
Restricted expenditure in year
(1,637)
(51)
(5)


Balance at 31 August 2020
29
-
-		 Total
£’000
9
1,713
(1,693)
29

29

West London Mission Circuit – Circuit Fund

Notes to the financial statements For the year ended 31 August 2020

20 Analysis of net assets

General
funds
Designated
funds
Restricted
funds
£’000
£’000
£’000
Fixed assets
3,544
-
-
Investment properties
3,340
-
-
Investments
8,517
698
29
Cash
59
-
-
Cash on deposit
554
-
-
Debtors
1,065
-
-
Current liabilities
(942)
-
-
16,137
698
29
Unrealised gain included
above
On investment properties
2,867
-
-
On investments
2,034
-
-
4,901
-
-
Reconciliation of movements in unrealised gains on investment assets
Balance at 1 September 2019
Gain/(loss) arising on revaluations in the year
Balance at 31 August 2020		 2020
£’000
3,544
3,340
9,244
59
554
1,065
(942)

16,864

2,867
2,034

4,901

5,926
(1,025)

4,901		 2019
£’000
3,568
3,485
10,224
390
818
742
(701)
18,526
3,012
2,830
5,842
4,514
1,412
5,926

21 Contingent liabilities

There are no identified contingent liabilities.

30

West London Mission Circuit – Circuit Fund

Notes to the financial statements For the year ended 31 August 2020

22 Related party transactions

West London Mission Housing Association (WLMHA) (including WLM services controlled by WLMHA), King's Cross Methodist Church, Hinde Street Methodist Church and the Donald Soper Fund all have trustees in common with the Circuit Meeting and are therefore considered to be related parties. None of these organisations are considered to be under common control with the Circuit Fund as a minority of the Circuit Meeting members are trustees of any of these entities, and vice versa.

During the year, the Circuit undertook the following transactions with related parties:

Value of transactions Value of transactions Amount owed to/(by) Amount owed to/(by)
Details during year WLM Circuit Fund
2020 2019 2020 2019
£’000 £’000 £’000 £’000
WLMHA
Housing Loans (26) (7) 1,065 1,091
Interest on Housing Loans 41 41 - -
Indexation on Housing Loans 5 23 - -
Administration charges - 12 - -
Project deficit/(surplus) grant 82 (169) - -
Creditor (dilapidations balances) (9) 5 (166) (157)
Settlement accounts ~~(4~~4) 399 443
King's Cross Methodist Church
Assessment 42 76 2 5
Contributions to Dilapidations Fund - 8 - -
Hinde Street Methodist Church
Assessment 65 128 14 36
Donald Soper Fund
Grant to Circuit Fund 47 - (2) (10)

31

West London Mission Circuit – Circuit Fund

Notes to the financial statements For the year ended 31 August 2020

23
Comparative Statement of Financial Activities
Notes
General
funds
Designated
funds
Restricted
funds
£’000
£’000
£’000
Income
Donations and legacies
3
4
20
-
Income from investments
Investment income
4
411
-
-
Rental income
5
93
-
-
Income from charitable activities
Housing and community services
6
166
-
1,626
Local ministry
6
150
8
66
King’s Cross Chaplaincy House
6
129
-
-
Total income
953
28
1,692
Expenditure
Expenditure on raising funds
Investment management costs
23
-
-
Expenditure on charitable activities
Local ministry
296
33
66
Housing and community services
386
16
1,617
King’s Cross Chaplaincy House
135
5
-
Other expenditure
139
-
-
Kings Cross Redevelopment Write off
514
-
-
Total expenditure
7
1,493
54
1,683
Net income/(expenditure) before transfers
17,18
19
(540)
(26)
9
Transfers between funds
(82)
82
-
Net income for the year
(622)
56
9
Other recognised gains and losses
Realised / unrealised (loss)/gain on
investment assets
14
(84)
~~-~~
~~-~~
Revaluation of investment properties
11
200
-
-
Reduction in pension liability
9a
-
-
-
Net movements in funds
(506)
56
9
Fund balances at 1 September 2018
17,18
19
18,316
651
-
Fund balances at 31 August 2019
17,18
19,20
17,810
707
9		 Total
2019
£’000
24
411
93
1,792
224
129
2,673
23
395
2,019
140
139
514
3,230
(557)
-
(557)
(84)
200
-
(441)
18,967
18,526

32

West London Mission Circuit – Circuit Fund

Notes to the financial statements For the year ended 31 August 2020

33