## Report & Financial Statements
For the year ended 31 August 2022
**West London Mission Circuit - Circuit Fund**
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## **Contents**
|**Report of the Circuit Meeting**|**1 – 13**|
|---|---|
|**Independent auditors’ report**|**14-17**|
|**Statement of financial activities**|**18**|
|**Balance sheet**|**19**|
|**Statement of Cash Flows**|**20**|
|**Notes to the financial statements**|**21 – 36**|
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## **West London Mission Circuit – Circuit Fund Officers and advisers**
## **Trustees (members of the Circuit Meeting)**
Peter Cornick (Chair) Kong Ching Hii Tessa Bennett Belinda Letby Pei Ling Chay Emerson Rizzi Lai Kuin Cheong Margaret Rudland James Cruddas Martin Single Janice Francis Alethea Siow Mary Hicks Cathy Slater
Gordon Slater Amy Tang Edna Wijeratna Gerry Wong Rayman Wong William Wong Jongikaya Zihle
## **Chief Executive Officer**
## **Central office**
Roger Clark (until 8 March 2023) 19 Thayer Street London W1U 2QJ
## **Auditors**
**Auditors** Moore Kingston Smith LLP 9 Appold Street, London, EC2A 2AP **Bankers** HSBC plc 90 Baker Street London W1U 6AX **Charity number** 1133739
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**West London Mission Circuit – Circuit Fund Report of the Circuit Meeting**
## **Chair's Introduction**
May I 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. Through its work, it aims to worship God, serve the community including challenging injustice, learn about Christian faith through meeting in small groups and care for one another through times of joy and sorrow. By sharing life in Christ in daily living, it is hoped that others will come to follow him.
We have two city centre churches, Hinde Street and King’s Cross and a student hostel, Methodist Chaplaincy House. One of the Presbyters, working for the Civil Service, exercises a ministry in their workplace. Together with the professionally run WLM Services, this forms the West London Mission.
Following consultations and advice, the West London Mission Circuit Meeting (currently, the trustee board of WLM Services) took the major decision to create a separate charitable trustee body for the WLM Services. This would mean the trustee board in the future, for WLM Services, will not be the Circuit Meeting. This is to address issues of the governance of risk. This change will not be immediate, as the nature, constitution and start date of this new trustee body needs to be decided upon, guided by an ‘Implementation Committee’. The Circuit appointed a consultant to project manage this institutional change and two prominent co-chairs with Methodist, housing regulation and safeguarding backgrounds to steer the process of separation. The Circuit is on a trajectory towards a new trustee body for WLM Services and it is hoped this will be achieved during 2023.
Hinde Street continues to develop its growth plan, particularly focusing on digital outreach. A new member of staff was employed for this purpose funded largely by a generous London Methodist District grant. The achievements so far have been to manage the launching of a new website and to set up online lettings opportunities with a third party. Hinde Street are actively reviewing their finances and lettings, working towards a balanced budget. Hinde Street are also reviewing security following an incident with a service user, taking advice from a number of sources. They hired security on a temporary basis to provide reassurance. Following a full risk assessment, revised security arrangements will be put in place in spring 2023.
At King’s Cross, the Mandarin congregation has gradually returned post pandemic, whilst also retaining an online presence. The Cantonese congregation has not continued its online presence. The Cantonese congregation continue to welcome British Nationals from Overseas (Hong Kong) (BNOs) who are already making a significant contribution to the church. King’s Cross continue to reassess their vision post pandemic and in the light of new migrations. The promised London Methodist District resource to co-ordinate the response to BNOs across the District has not been forthcoming.
A Circuit redevelopment group are actively working with an architect, to put forward a new proposal to Camden Council for the redevelopment of King’s Cross by the end of 2023. The original proposal which was rejected shortly before the pandemic has been significantly modified to accommodate Camden Council’s requests and to comply with current building regulations. The Circuit sincerely hope we can move forward with this proposal and begin fundraising and building as soon as possible.
Methodist Chaplaincy House continues to thrive with a full complement of students forming a community at the King’s Cross site, overseen by a management committee. Deacon Tessa Bennett has settled into the role of Diaconal Probationer extremely well. She has responsibility for Methodist Chaplaincy House and other projects. We have been unable to secure an ‘intern’ to help her as in previous years which has added to her work.
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## **West London Mission Circuit – Circuit Fund**
The Reverend Peter Cornick, the Presbyter at Hinde Street and Superintendent, was invited to extend his tenure for a further five years until August 2028. The Reverend Kong Ching Hii was invited to extend his tenure for a further two years until August 2025. Deacon Belinda Letby announced the curtailment of her appointment from August 2023 due to personal circumstances. We are delighted that Deacon Ruth Yorke will be stationed in the Circuit from September 2023.
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.
The Reverend Peter Cornick
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**West London Mission Circuit – Circuit Fund 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, which has a mission of co-creating safe spaces for people to achieve their potential, employing 65 professional staff jointly with West London Mission Housing Association Ltd (WLMHA), delivering projects across five sites 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 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. As part of the community hub strategy office space in Seymour Place will be leased out to like-minded charities.
## **WLM Katherine Price Hughes House (KPH)**
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**
During 2022 counselling services re-located to the newly acquired premises at 12 Woodfall Road, London N4. It provides low cost counselling to the local community.
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## **West London Mission Circuit – Circuit Fund Report of the Circuit Meeting (continued)**
## **Services managed as agent for WLMHA:**
## **WLM Holly Park**
Following the closure of the Haven care home in September 2021. WLMHA is working with DePaul UK, New Horizons and the GLA and the building was leased to DePaul UK from November 2022 to deliver a provision for homeless young people aged eighteen to twenty five.
## **WLM Burgess Park House (WLM Ex-Military Supported Housing)**
This is situated at 56 Camberwell Road, London SE5. It provides supported housing for ex-service people who have experienced homelessness offering support in sustaining accommodation. Unfortunately this service was suspended on the 8 February 2022 and the residents relocated to St Luke's while various Health and Safety issues are resolved. We are close to completing refurbishment works and hope to let from Summer 2023.
## **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 and St Lukes Residential 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 which provides accommodation for a combination of military veterans and keyworkers.
## **Achievements and Future Plans**
WLM Services is the Housing and Community Services arm of the West London Mission Circuit. Its mission is to co-create safe spaces for people to achieve their potential.
The financial year 2021-2022 saw WLM Services consolidating its position following the impact of the coronavirus pandemic. As part of this process WLM Services devised a new approach to support its future development with a revised vision, mission and values. Following the closure of the Haven care home in September 2021 the organisation was able to focus on its core areas of Community, Counselling and Criminal Justice work under the framework of a new three year strategy. A comprehensive review of policies and procedures under a new quality framework was completed during 2021-2022 alongside a job evaluation and benchmarking process to ensure fair pay for the staff team.
## **Community**
## **St Luke’s**
The St Luke’s site was developed during the year to deliver on the dual aspects of its residential and community hub work. St Lukes residential increased its capacity for keyworker accommodation following the ending of the ‘Pret House’ project which was a partnership with the Pret Foundation. One hundred and one individuals received support through a range of workshops and groups session on budgeting, energy saving and IT at St Luke’s community hub.
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## **Burgess Park House**
The veterans housing service at Burgess Park House was suspended in February 2022 following concerns with Health and Safety issues on the site. Support continues to be provided to veterans moved to St Luke’s or Cherry Tree House. Refurbishment works are close to completion, with a view to let in Summer 2023.
## **Cherry Tree House**
Six veterans were successfully housed in Cherry Tree House during 2021-2022 allowing them to live independently. Improvement works were undertaken on the boilers and internal communal areas.
## **Counselling**
A new site in Islington for the Highbury Counselling Centre (HCC) was acquired in 2021 and refurbished to provide modern facilities for the psychotherapy service which opened in January 2022. The site contains a range of excellent individual and group counselling rooms as well as a large meeting space on the top floor. Four thousand three hundred counselling session were offered with a 95% attendance rate during the reporting period at HCC.
## **Criminal Justice**
During 2021-2022 a significant refurbishment of the ground floor at KPH occurred creating an additional three bedrooms. This space had previously been occupied by HCC. This took the total number of bedrooms to twenty three. The service was able to achieve an 83% occupancy during the reporting period working closely with the national probation service.
## **Chaplaincy**
The Chaplaincy Service continued to deliver its support to the WLM Services through site visits across our services and regular activities particularly at the St Luke’s and KPH sites for new users and residents.
## **Fundraising Report**
Fundraised income supports both new and existing projects that transform people’s lives. Our fundraising is carried out by a team of a fundraisers supported by consultants who between them seek grant funding from charitable trusts and foundations, encourage donations from the Methodist community, corporate partners, community groups, and raise funds through events and from individuals. The team work with the highest level of integrity and value every donation received.
Our donors and the people who use our services are at the heart of everything we do. We ensure that our supporters are treated with the care and attention they deserve, and that every donation or grant is spent on the project it was given for and in accordance with any restrictions placed upon it.
All of our fundraising work is supported by our Marketing and Communications Manager, who oversees messaging on the website, sends out regular donor/supporter updates, designs and creates fundraising promotional materials and updates our social media accounts.
The Data Protection Act 2018 is the UK’s implementation of the General Data Protection Regulation (GDPR). We continue to ensure that we work within these regulations, as well as those within the Privacy and Electronic Communications Regulations (PECR), and those enforced by the Fundraising Regulator.
Fundraising this year continued to be challenging. The team has managed to raise significant income, but at the same time we have struggled to meet the targets in events, corporate and charitable trusts grant
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## **West London Mission Circuit – Circuit Fund**
income. This has largely been due to having fewer events (due to Covid restrictions), not having volunteering opportunities and many funding organisations earmarking their support for emergency responses to the pandemic and the cost-of-living crisis. Again, due to the pandemic we have had less activity running at WLM and this has impacted on our grant income.
Every donation we receive is greatly appreciated and the support we have seen during this past year has been truly exceptional. We wish to say thank you to all of our supporters who made donations of their time and energy or gave financial support to WLM during 2021-2022, including those who left us a special gift in their will.
No complaints were received about fundraising activities.
Without the help of the following amazing organisations WLM would not have been able to continue its work in 2021-2022
- BNP Paribas
- City Bridge Trust
- Clarewood Court, Marylebone
- Forsters Charitable Trust
- Garfield Weston Foundation
- Harrowby & District Residents' Association
- Homeless Link
- Housing Justice
- Hyde Park Place Estate Charity
- ICS London - Primary International School
- Lane Clark & Peacock LLP
- Marylebone Music Festival
- National Lottery Awards for All
- Oliver Stanley Charitable Trust
- St Paul's Church, Bayswater
- St. Francis de Sales Charities Group
- The 29th May 1961 Charity
- The Albert Gubay Charitable Foundation
- The Anderson Trust
- The Charles Plater Trust
- The Rose Foundation
- The Rotary Club of St Marylebone
- The Worshipful Company of Bowyers
- The Wyndham Charitable Trust
- Veterans' Foundation
- Wetherby Senior School
## **Financial Review**
The financial statements for the year ended 31 August 2022 show a deficit of £1,986,000 on general funds before transferring £65,000 to the designated funds. The balance on the general income reserve at 31 August 2022 was £138,000 (after transferring £2,160,000 from the capital reserve, as agreed by the Circuit Meeting, to cover the impact of the pandemic on WLM Services, the cost of maintaining vacant properties, and a shortfall in fundraising and investment income).
The WLM Services are funded largely by accommodation charges, grants from statutory and other bodies, and fundraising for specific projects.
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## **West London Mission Circuit – Circuit Fund**
Ministerial and other costs relating to the local churches are funded by an assessment on the local congregations, though the Circuit bears a significant proportion of these costs. The Circuit received grants from the Sarawak Chinese Annual Conference in respect of our Chinese presbyter and lay workers. 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 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 previously appointed committees with delegated functions, including the WLM Services Committee, the Property & Finance Committee, the Human Resources Committee and the Methodist Chaplaincy House Committee. Except for the last-named, the functions of these committees were transferred to the Circuit Meeting from September 2022, and the Circuit Meeting has met more frequently to discharge these responsibilities.
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## **West London Mission Circuit – Circuit Fund 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 2021 to the date of this report were as stated below:-
William Wong (retired 31 August 2022) Rayman Wong Alethea Siow Amy Tang Nick Novak (to 28 February 2022)
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.
In addition to the current trustees listed on page 1, the following also served as trustees for all or part of the year under review:
Sallie Choate, Roger Cotterrell, Linda Gilson, John Hicks, Andrew Hoban, Nick Novak, Christine Robson, Martin Single, Rebecca Warren, Danny Wong, Sherene Wong.
## **Key management personnel and basis of remuneration**
Key management personnel comprises the Superintendent Minister, Chief Executive Officer (CEO) and Deputy CEO. 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 :
## **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 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. 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 fundraising team.
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## **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 regularly reviews its risk register.
## **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 any income remaining after the payment of ministerial expenses, manses, the student work and other specific projects, at the disposal of the WLM Services.
The balance on the Circuit's income reserve (£138,000 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 £12,972,000 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.
The Donald Soper Fund is an independent fund, controlled by WLMHA, whose sole objective is to support the WLM Services.
## **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. The trustees monitor investment performance on an ongoing basis and are satisfied with the performance of the investment portfolio during 2021-2022.
## **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.
## **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 have considered the lasting impact of the Covid-19 pandemic and the current cost of living crisis. In particular the Trustees have taken account of pressures on donations and investment income and the possible impact on investment values and 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.
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## **West London Mission Circuit – Circuit Fund 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:
- select suitable accounting policies and then apply them consistently;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards and Statements of Recommended Practice have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Circuit will continue in operation.
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 ……….. and signed on its behalf by **1** 7 8 **April 2** 023 and signed on its behalf by
……………………. ) Alethea Siow ) ) ) Members of the Circuit Meeting
………………………...) Peter Cornick
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## **West London Mission Circuit – Circuit Fund 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 2022 which comprise the Statement of Financial Activities, the Summary Income and Expenditure Account, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including 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:
- give a true and fair view of the state of the charity’s affairs as at 31 August 2022, and of its incoming resources and application of resources, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Charities Act 2011.
## **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**
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## **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 contained within the annual report. 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.
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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 course of 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 themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, 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:
- the information given in the Trustees’ Annual Report is inconsistent in any material respect with the financial statements; or
- the charity has not kept adequate accounting records; or
- the financial statements are not in agreement with the accounting records and returns; or
- we have not received all the information and explanations we required for our audit.
## **Responsibilities of trustees**
As explained more fully in the trustees’ responsibilities statement set out on page 13 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:
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
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detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the charity’s internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.
- Conclude on the appropriateness of the trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the charity to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
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.
## **Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud**
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charity.
Our approach was as follows:
- We obtained an understanding of the legal and regulatory requirements applicable to the charity and considered that the most significant are [the Charities Act 2011, the Charity SORP, and UK financial reporting standards as issued by the Financial Reporting Council]
- We obtained an understanding of how the charity complies with these requirements by discussions with management and those charged with governance.
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- We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.
- We inquired of management and those charged with governance as to any known instances of noncompliance or suspected non-compliance with laws and regulations.
- Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
## **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.
Date 19 April 2023 Moore Kingston Smith LLP Statutory auditor Devonshire House 9 Appold Street London EC2A 2AP
Moore Kingston Smith LLP is eligible to act as auditor in terms of Section 1212 of the Companies Act 2006.
17
## **West London Mission Circuit – Circuit Fund**
## **Statement of financial activities For the year ended 31 August 2022**
|**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
**7**
WLM Services
**7**
King’s Cross Chaplaincy House
**7**
Other expenditure
**7**
**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 2021
**17,18**
**19**
Fund balances at 31 August 2022
**17,18**
**19,20**||**General**
**funds**
**Designated**
**funds**
**Restricted**
**funds**
**£’000**
**£’000**
**£’000**
4
-
-
323
-
-
148
-
-
72
-
1,437
149
9
62
147
-
-
843
9
1,499
22
-
-
196
318
22
62
1,782
14
1,466
129
-
382
-
2,829
36
1,528
(1,986)
(27)
(29)
(65)
65
-
(2,051)
38
(29)
(558)
-
-
(220)
-
-
(2,829)
38
(29)
15,939
540
29
13,110
578
-|**Total**
**2022**
**Total**
**2021**
**£’000**
**£’000**
**(Note 23)**
4
38
323
262
148
135
1,509
1,977
220
216
147
111
2,351
2,739
22
19
196
247
402
320
3,262
3,645
129
148
382
120
4,393
4,499
(2,042)
(1,760)
-
-
(2,042)
(1,760)
(558)
1,259
(220)
145
(2,820)
(356)
16,508
16,864
13,688
16,508|**Total**
**2022**
**Total**
**2021**
**£’000**
**£’000**
**(Note 23)**
4
38
323
262
148
135
1,509
1,977
220
216
147
111
2,351
2,739
22
19
196
247
402
320
3,262
3,645
129
148
382
120
4,393
4,499
(2,042)
(1,760)
-
-
(2,042)
(1,760)
(558)
1,259
(220)
145
(2,820)
(356)
16,508
16,864
13,688
16,508|
|---|---|---|---|---|
|||||2,739|
|||||19
247
320
3,645
148
120|
|||||4,499|
|||||(1,760)
-|
|||||(1,760)
1,259
145|
|||||(356)
16,864|
|||||16,508|
All the above amounts relate to continuing activities. There are no recognised gains or losses other than those included above.
18
## **West London Mission Circuit – Circuit Fund Balance sheet as at 31 August 2022**
||**Notes**|**2022**|**2021**|
|---|---|---|---|
|||**£’000**|**£’000**|
|**Fixed assets**||||
|Trust properties|**10**|4,271|3,928|
|Investment properties|**11**|3,265|3,485|
|Concessionary loans to West London.||||
|Mission Housing Association Limited|**12**|1,189|1,113|
|Tangible fixed assets|**13**|36|64|
|Intangible fixed assets|**13**|10|18|
|Investments|**14**|3,835|7,203|
|||──────|──────|
|||12,606|15,811|
|||──────|──────|
|**Current assets**||||
|Debtors|**15**|1,065|945|
|Cash at bank and in hand||611|105|
|Cash on deposit||274|623|
|||──────|──────|
|||1,950|1,673|
|**Creditors: Amounts falling due within one**||||
|**year**|**16**|(868)|(974)|
|||──────|──────|
|**Net current assets**||1,082|698|
|**Creditors: Amounts falling due after more**||||
|**than one year**||-|-|
|||──────|──────|
|**Net assets**||13,688|16,509|
|||══════|══════|
|**Funds**||||
|General funds – capital|**17**|12,972|15,800|
|– income|**17**|138|140|
|||──────|──────|
|||13,110|15,940|
|Designated funds|**18**|578|540|
|Restricted funds|**19**|-|29|
|||──────|──────|
|||13,688|16,509|
|||══════|══════|
|Approved by the Circuit Meeting on …….. 2023 and signed on its behalf by
18 April 2023 and signed on its behalf by||||
……………………. ) Alethea Siow ) ) Members of the Circuit Meeting
………………………...) Peter Cornick
19
## **West London Mission Circuit – Circuit Fund Statement of Cash Flows for the year ended 31 August 2022**
|**Cash flows from operating activities**
**Net (shortfall) / surplus**
Adjustments for:
Depreciation
Amortisation
(Gain)/Loss on investments
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 freehold property
Purchase of tangible and intangible fixed assets
(Increase)/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 2021**
**Cash balance at 31 August 2022**|**2022**
**£’000**
**(2,820)**
34
9
558
220
(323)
(120)
(106)
(148)
(8)
(343)
(1)
(76)
2,810
323
148|**2022**
**£’000**
**(2,696)**
2,853
**157**
**728**
**885**|**2021**
**£’000**
**(356)**
29
8
(1,259)
(145)
(262)
(118)
270
(135)
(10)
(1,557)
-
(48)
3,300
262
135|**2021**
**£’000**
**(1,968)**
2082|
|---|---|---|---|---|
|||||**114**
**613**|
|||||**728**|
20
**West London Mission Circuit – Circuit Fund**
## **Notes to the financial statements For the year ended 31 August 2022**
## **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), (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 three continuing services, as set out in the Report of the Circuit Meeting on pages 6 and 7 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 have considered the lasting impact of the Covid-19 pandemic and the current cost of living crisis. In particular the Trustees have taken account of pressures on donations and investment income and the possible impact on investment values and 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.
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 and compliance with constitutional and statutory requirements.
21
**West London Mission Circuit – Circuit Fund**
## **Notes to the financial statements For the year ended 31 August 2022**
## **Accounting policies** (continued)
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.
22
**West London Mission Circuit – Circuit Fund**
**Notes to the financial statements For the year ended 31 August 2022**
23
**West London Mission Circuit – Circuit Fund**
## **Notes to the financial statements For the year ended 31 August 2022**
## **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.
## **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.
## **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.
## **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.
24
**West London Mission Circuit – Circuit Fund**
## **Notes to the financial statements For the year ended 31 August 2022**
## **3 Donations and legacies**
|General donations and covenants
Legacies
**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**
**2022**
**£'000**
2
2
4
════
**Total**
**2022**
**£’000**
1
122
30
18
111
41
323
111
-
212
323|**Total**
**2021**
**£’000**
4
34|
|---|---|---|
||══
|38
════
**Total**
**2021**
**£’000**
1
131
30
20
41
39
262
41
17
204
262|
25
**West London Mission Circuit – Circuit Fund**
## **Notes to the financial statements For the year ended 31 August 2022**
|**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
**Local ministry**
Assessments on local churches
Chinese Presbyter support
King’s Cross Chinese-speaking lay workers grants
King’s Cross Church contribution to dilapidations fund
**King’s Cross Chaplaincy House**|**2022**
**£’000**
162
(14)
─────
148
═════
**Total**
**2022**
**£'000**
1,437
72
1,509
204
7
-
9
220
147
1,876|**2021**
**£’000**
143
(8)
─────
135
═════
**Total**
**2021**
**£’000**
1,572
405
1,977
196
6
14
-
216
111
2,304|
|---|---|---|
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.
26
**West London Mission Circuit – Circuit Fund**
## **Notes to the financial statements For the year ended 31 August 2022**
## **7 Expenditure**
|**7**
**Expenditure**||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
||**Hinde**|**Kings**|**Community**|**Local**||||||||||
||**Street**
**Church**|**Cross**
**Church**|**work**|**Ministry**
**Total**|**WLM Services**||**Chaplaincy**
**House**||**Governance**
**Costs**||**Other costs and**
**income**|**Total**
**2022**|**Total**
**2021**|
||**£’000**|**£’000**|**£’000**|**£’000**|**£’000**||**£’000**||**£’000**||**£’000**|**£'000**|**£’000**|
|Ministers and manses|78|85|-|**163**||15||13||-|27|**218**|**243**|
|Kings Cross Chinese speaking lay workers|-|27|-|**27**||-||-||-|-|**27**|**-**|
|Kings Cross community interns|-|1|-|**1**||-||-||-|-|**1**|**7**|
|District assessment|25|18|-|**43**||-||-||-|-|**43**|**43**|
|Grant to London District for Covid support|-|-|-|**-**||-||-||-|-|**-**|**-**|
|Central office costs|122|5|-|**127**||14||0||-|281|**422**|**336**|
|Hinde Street community work|-|-|41|**41**||-||-||-|-|**41**|**11**|
|Chaplaincy House costs|-|-|-|**-**||-|116|||-|-|**116**|**111**|
|WLM Services|-|-|-|**-**|2,671|||-||-|-|**2,671**|**2,532**|
|Audit and accountancy|-|-|-|**-**||-||-||74|-|**74**|**11**|
|Net deficit/(surplus) of WLMHA Services|-|-|-|**-**||562||-||-|-|**562**|**939**|
|**Total**|**225**|**136**|**41**|**402**|**3,262**||**129**|||**74**|**308**|**4,175**|**4,233**|
|Costs of raising funds||||~~-~~||196||~~-~~||~~-~~|22|218|266|
|**Total expenditure**||||**(402)**|**(3,458)**||**(129)**||**(74)**||**(330)**|**(4,393)**|**(4,499)**|
|Voluntary income||||-||-||~~-~~||~~-~~|4|4|38|
|Investment income (see note 4)||||182|||||||141|323|262|
|Rental income (see note 5)||||-||~~-~~||~~-~~||~~-~~|148|148|135|
|Income from charitable activities (see note 6)||||220|1,509||147|||-|-|1,876|2,304|
|**Net surplus by activity**||||**-**|**(1,949)**|||**18**|**(74)**||**(37)**|**(2,042)**|**(1,760)**|
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.
27
**West London Mission Circuit – Circuit Fund**
## **Notes to the financial statements For the year ended 31 August 2022**
## **8 Net income/(costs) of WLM Services**
|||**Katherine**
**Price**|**Highbury**
**Counselling**||||**Central**|
**Total**|
|---|---|---|---|---|---|---|---|---|
||**Services incorporated**|**Hughes**|**Centre**|**Seymour**||
**Fund-**|**costs**||
||**on a gross basis**|**House**||**Place**||**raising**|||
|||**£’000**|**£’000**|**£’000**||**£’000**|**£’000**|**£’000**|
||Income - external|1,003|108|286||0|112|
1,509|
||Expenditure - external|(1,028)|(222)|(137)||(196)|(1,313)|
(2,896)|
||Net surplus/(deficit) of|─────|─────|─────||─────|─────|
─────|
||services controlled by|(25)|(114)|149||(196)|(1,201)|
(1,387)|
||Circuit|═════|═════|═════||═════|═════|═════|
||**Services incorporated on a net basis**||||**2022**||**2021**||
||||||**£’000**||**£’000**||
||St Luke’s|||||(80)|(110)||
||The Haven|||||(522)|(821)||
||Ex-military Supported Housing|||||(30)|(48)||
||Housing Association central net income|||||70||40|
||||||─────||─────||
||Net (deficit)/surplus|||||(562)|(939)||
|||||═════|||═════||
|**9**|**Emoluments**||||||||
|**9.1**|**Staff**||||||||
|||||||**2022**||**2021**|
|||||||**£’000**||**£’000**|
||Staff costs (excluding agency costs)|||||1,316||1,348|
||National insurance|||||133||137|
||Pension contributions|||||119||130|
|||||||─────||─────|
|||||||1,568||1,615|
|||||||═════||═════|
||The above includes termination and redundancy||||||||
||payments of 2022: £0 (2021: £48,545).||||||||
||Average number of permanent staff during the year|||||48||50|
|||||||══||══|
||Full time equivalent number of permanent staff||||||||
||during the year|||||41||45|
|||||||══||══|
28
**West London Mission Circuit – Circuit Fund**
## **Notes to the financial statements For the year ended 31 August 2022**
## **9 Emoluments (continued)**
Details of staff working in services managed on behalf of WLMHA are disclosed separately in the financial statements of WLMHA.
No staff member earned between £60,000 and £69,999 during the year. Two staff members earned more than £70,000 but less than £79,999 during the year.
Key management personnel comprises the Superintendent Minister, Chief Executive Officer, and the Deputy Chief Executive Officer. The total employee benefits of the key management personnel of the charity were £184,864 (2021: £168,852).
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**
||**2022**|**2021**|
|---|---|---|
||**£’000**|**£’000**|
|At 1 September 2021|3,928|2,371|
|Additions during the year|343|1,557|
|Revaluations|-|-|
||──────|──────|
|At 31 August 2022|4,271|3,928|
||══════|══════|
|**Represented by (all amounts relate to charitable activities):**|||
||**2022**|**2021**|
||**£’000**|**£’000**|
|Circuit offices|394|394|
|Manses|1,452|1,452|
|WLM Services property|2,381|2040|
|King’s Cross|44|42|
||──────|──────|
||4,271|3,928|
||══════|══════|
29
**West London Mission Circuit – Circuit Fund**
## **Notes to the financial statements For the year ended 31 August 2022**
## **11 Investment property**
|**nvestment property**||
|---|---|
||**Total**|
||**2022**|
||**£’000**|
|At 1 September 2021|3,485|
|Revaluation|(220)|
||───────|
|At 31 August 2022|3,265|
||═══════|
The valuation of investment properties was reviewed as at 31 August 2022 by a church member who is RICS qualified.
## **12 Concessionary loans**
£974,079 (2021: £899,251) 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%.
£214,976 (2021: £213,906) 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**|||**tangible fixed**||**Intangible**|
||**fittings**|**IT Equipment**||**assets**||**fixed assets**|
||**£'000**|**£'000**||**£'000**||**£'000**|
|**Cost**|||||||
|At 1 September 2021|90|153||243||62|
|Additions|4||3||7|1|
|At 31 August 2022|94|156||250||63|
|**Depreciation/amortisation**|||||||
|At 1 September 2021|87||94|181||44|
|Charge for the year|1||32||33|9|
|At 31 August 2022|88|126||214||53|
|**Net book values**|||||||
|31 August 2022|6||30||36|10|
|31 August 2021|2||62||64|18|
30
**West London Mission Circuit – Circuit Fund**
## **Notes to the financial statements For the year ended 31 August 2022**
|**14**|**Investments**|||
|---|---|---|---|
|||**2022**|**2021**|
|||**£'000**|**£'000**|
||**Market value**|||
||At 1 September 2021|7,203|9,244|
||Additions|-|-|
||Disposals|(2,810)|(3,300)|
||Realised and unrealised losses|(558)|1,259|
|||──────|──────|
||At 31 August 2022|3,835|7,203|
|||══════|══════|
||The above total comprises:|||
||Units in CFB UK Equity Fund|2,461|5,085|
||Units in CFB Corporate Bond Fund|727|1,502|
||Units in CFB Property Fund|647|616|
|||──────|──────|
||**Market value at 31 August 2022**|3,835|7,203|
|||══════|══════|
||Cost at 31 August 2022|1,184|3,993|
|||══════|══════|
|**15**|**Debtors**|||
|||**2022**|**2021**|
|||**£'000**|**£'000**|
||Balances due from associated bodies (see note|||
||below)|706|647|
||Trade debtors|221|210|
||Other debtors|6|2|
||Prepayments|29|45|
||Accrued income|103|41|
|||──────|──────|
|||1,065|945|
|||══════|══════|
“Associated bodies” are Hinde Street Methodist Church, King’s Cross Methodist Church, West London Mission Housing Association Limited, Donald Soper Fund and WLM Services controlled by WLMHA. See note 22 for more details of related party transactions.
31
**West London Mission Circuit – Circuit Fund**
## **Notes to the financial statements For the year ended 31 August 2022**
## **16 Creditors: Amounts falling due within one year**
|**2022**
**£'000**
Balances due to associated bodies (see note 15
above)
387
Trade creditors
266
Other creditors
33
Other taxes and social security
28
Accruals
67
Deferred income
87
──────
868
══════
**17**
**General funds**
**Capital**
**reserve fund**
**Income**
**funds**
**£’000**
**£’000**
Balance at 1 September 2021
15,799
140
Net surplus/(deficit) for the year
111
(2,097)
Unrealised (losses) on investment assets
(558)
-
Revaluation of investment properties
(220)
-
Transfer between funds
(2,160)
2,160
Transfer to dilapidations reserve
-
(65)
Balance at 31 August 2022
12,972
138|**2021**
**£'000**
509
128
114
39
79
105
──────
974
══════
**Total**
**£’000**
15,939
(1,986)
(558)
(220)
-
(65)
13,110|
|---|---|
The transfer between funds was made to cover Covid-related losses and the costs associated with closing services in WLM Services and a shortfall in investment income.
32
**West London Mission Circuit – Circuit Fund**
## **Notes to the financial statements For the year ended 31 August 2022**
|**18**|**Designated funds**||||
|---|---|---|---|---|
|||**Dilapidations**|**Development**||
|||**fund**|**fund**|**Total**|
|||**£’000**|**£’000**|**£’000**|
||Balance at 1 September 2021|522|18|540|
||Income|9|-|9|
||Expenditure|(36)|-|(36)|
||Transfer from general funds|65|-|65|
|||─────|─────|─────|
||Balance at 31 August 2022|560|18|578|
|||═════|═════|═════|
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.
## **19 Restricted funds**
||**WLM**|**Chinese**||
|---|---|---|---|
||**Services**|**Work**|**Total**|
||**£’000**|**£’000**|**£’000**|
|Balance at 1 September 2021|29|-|29|
|Restricted income in year|1,437|62|1,499|
|Restricted expenditure in year|(1,466)|(62)|(1,528)|
|Balance at 31 August 2022|-|-|-|
33
## **West London Mission Circuit – Circuit Fund**
## **Notes to the financial statements For the year ended 31 August 2022**
## **20 Analysis of net assets**
||**General**|**Designated**|**Designated**|**Restricted**|**Restricted**|||
|---|---|---|---|---|---|---|---|
||**funds**|**funds**||**funds**||**2022**|**2021**|
||**£’000**|**£’000**||**£’000**||**£’000**|**£’000**|
|Fixed assets|4,317||-||-|4,317|4,010|
|Investment properties|3,265||-||-|3,265|3,485|
|Investments|3,257|578|||-|3,835|7,203|
|Cash|611||-||-|611|105|
|Cash on deposit|274||-||-|274|623|
|Capital Loans to WLMHA|1,189|||||1,189|1,113|
|Debtors|1,065||-||-|1,065|945|
|Current liabilities|(868)||-||-|(868)|(974)|
||13,110|578|||-|13,688|16,509|
|**Unrealised gain included**||||||||
|**above**||||||||
|On investment properties|2,792||-||-|2,792|3,012|
|On investments|2,735||-||-|2,735|3,293|
||5,527||-||-|5,527|6,305|
|Reconciliation of movements in unrealised gains on investment assets||||||||
|Balance at 1 September 2021||||||6,305|4,901|
|Gain/(loss) arising on revaluations in the year||||||(778)|1,404|
|Balance at 31 August 2022||||||5,527|6,305|
## **21 Contingent liabilities**
There are no identified contingent liabilities.
34
**West London Mission Circuit – Circuit Fund**
## **Notes to the financial statements For the year ended 31 August 2022**
## **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**||
||**2022**|**2021**|**2022**|**2021**|
||**£’000**|**£’000**|**£’000**|**£’000**|
|**WLMHA**|||||
|Housing Loans|78|48|1,189|1,113|
|Interest on Housing Loans|42|39|-|-|
|Indexation on Housing Loans|111|41|-|-|
|Administration charges|72|-|-|-|
|Project deficit/(surplus) grant|562|939|-|-|
|Creditor (dilapidations balances)|-|(23)|(189)|(189)|
|Settlement accounts|(189)|-|161|350|
|**King's Cross Methodist Church**|||||
|Assessment|78|74|1|2|
|Contributions to Dilapidations Fund|10|-|-|-|
|**Hinde Street Methodist Church**|||||
|Assessment|126|122|31|23|
|**Donald Soper Fund**|||||
|Grant to Circuit Fund|-|-|(2)|(2)|
35
**West London Mission Circuit – Circuit Fund**
## **Notes to the financial statements For the year ended 31 August 2022**
|**Notes**
**General**
**funds**
**Designated**
**funds**
**Restricted**
**funds**
**£’000**
**£’000**
**£’000**
**Income**
**Donations and legacies**
**3**
38
-
-
**Income from investments**
Investment income
**4**
262
-
-
Rental income
**5**
143
(8)
-
**Income from charitable activities**
WLM Services
**6**
405
-
1,572
Local ministry
**6**
146
-
70
King’s Cross Chaplaincy House
**6**
111
-
-
**Total income**
1,105
(8)
1,642
**Expenditure**
**Expenditure on raising funds**
Investment management costs
19
-
-
WLM fundraising
247
**Expenditure on charitable activities**
Local ministry
**7**
201
49
70
WLM Services
**7**
1,917
156
1,572
King’s Cross Chaplaincy House
**7**
133
15
-
Other expenditure
**7**
98
22
-
**Total Expenditure**
**7**
2,615
242
1,642
**Net income/(expenditure) before transfers**
**17,18**
**19**
(1,510)
(250)
-
Transfers between funds
(92)
92
-
**Net income for the year**
(1,602)
(158)
-
**Other recognised gains and losses**
Realised / unrealised (loss)/gain on
investment assets
**14**
1,259
-
-
Revaluation of investment properties
**11**
145
-
-
**Net movements in funds**
(198)
(158)
-
Fund balances at 1 September 2020
**17,18**
**19**
16,137
698
29
Fund balances at 31 August 2021
**17,18**
**19,20**
15,939
540
29
**23**
**Comparative Statement of Financial Activities**|**Notes**
**General**
**funds**
**Designated**
**funds**
**Restricted**
**funds**
**£’000**
**£’000**
**£’000**
**Income**
**Donations and legacies**
**3**
38
-
-
**Income from investments**
Investment income
**4**
262
-
-
Rental income
**5**
143
(8)
-
**Income from charitable activities**
WLM Services
**6**
405
-
1,572
Local ministry
**6**
146
-
70
King’s Cross Chaplaincy House
**6**
111
-
-
**Total income**
1,105
(8)
1,642
**Expenditure**
**Expenditure on raising funds**
Investment management costs
19
-
-
WLM fundraising
247
**Expenditure on charitable activities**
Local ministry
**7**
201
49
70
WLM Services
**7**
1,917
156
1,572
King’s Cross Chaplaincy House
**7**
133
15
-
Other expenditure
**7**
98
22
-
**Total Expenditure**
**7**
2,615
242
1,642
**Net income/(expenditure) before transfers**
**17,18**
**19**
(1,510)
(250)
-
Transfers between funds
(92)
92
-
**Net income for the year**
(1,602)
(158)
-
**Other recognised gains and losses**
Realised / unrealised (loss)/gain on
investment assets
**14**
1,259
-
-
Revaluation of investment properties
**11**
145
-
-
**Net movements in funds**
(198)
(158)
-
Fund balances at 1 September 2020
**17,18**
**19**
16,137
698
29
Fund balances at 31 August 2021
**17,18**
**19,20**
15,939
540
29
**23**
**Comparative Statement of Financial Activities**|**Notes**
**General**
**funds**
**Designated**
**funds**
**Restricted**
**funds**
**£’000**
**£’000**
**£’000**
**Income**
**Donations and legacies**
**3**
38
-
-
**Income from investments**
Investment income
**4**
262
-
-
Rental income
**5**
143
(8)
-
**Income from charitable activities**
WLM Services
**6**
405
-
1,572
Local ministry
**6**
146
-
70
King’s Cross Chaplaincy House
**6**
111
-
-
**Total income**
1,105
(8)
1,642
**Expenditure**
**Expenditure on raising funds**
Investment management costs
19
-
-
WLM fundraising
247
**Expenditure on charitable activities**
Local ministry
**7**
201
49
70
WLM Services
**7**
1,917
156
1,572
King’s Cross Chaplaincy House
**7**
133
15
-
Other expenditure
**7**
98
22
-
**Total Expenditure**
**7**
2,615
242
1,642
**Net income/(expenditure) before transfers**
**17,18**
**19**
(1,510)
(250)
-
Transfers between funds
(92)
92
-
**Net income for the year**
(1,602)
(158)
-
**Other recognised gains and losses**
Realised / unrealised (loss)/gain on
investment assets
**14**
1,259
-
-
Revaluation of investment properties
**11**
145
-
-
**Net movements in funds**
(198)
(158)
-
Fund balances at 1 September 2020
**17,18**
**19**
16,137
698
29
Fund balances at 31 August 2021
**17,18**
**19,20**
15,939
540
29
**23**
**Comparative Statement of Financial Activities**|**Notes**
**General**
**funds**
**Designated**
**funds**
**Restricted**
**funds**
**£’000**
**£’000**
**£’000**
**Income**
**Donations and legacies**
**3**
38
-
-
**Income from investments**
Investment income
**4**
262
-
-
Rental income
**5**
143
(8)
-
**Income from charitable activities**
WLM Services
**6**
405
-
1,572
Local ministry
**6**
146
-
70
King’s Cross Chaplaincy House
**6**
111
-
-
**Total income**
1,105
(8)
1,642
**Expenditure**
**Expenditure on raising funds**
Investment management costs
19
-
-
WLM fundraising
247
**Expenditure on charitable activities**
Local ministry
**7**
201
49
70
WLM Services
**7**
1,917
156
1,572
King’s Cross Chaplaincy House
**7**
133
15
-
Other expenditure
**7**
98
22
-
**Total Expenditure**
**7**
2,615
242
1,642
**Net income/(expenditure) before transfers**
**17,18**
**19**
(1,510)
(250)
-
Transfers between funds
(92)
92
-
**Net income for the year**
(1,602)
(158)
-
**Other recognised gains and losses**
Realised / unrealised (loss)/gain on
investment assets
**14**
1,259
-
-
Revaluation of investment properties
**11**
145
-
-
**Net movements in funds**
(198)
(158)
-
Fund balances at 1 September 2020
**17,18**
**19**
16,137
698
29
Fund balances at 31 August 2021
**17,18**
**19,20**
15,939
540
29
**23**
**Comparative Statement of Financial Activities**|**Notes**
**General**
**funds**
**Designated**
**funds**
**Restricted**
**funds**
**£’000**
**£’000**
**£’000**
**Income**
**Donations and legacies**
**3**
38
-
-
**Income from investments**
Investment income
**4**
262
-
-
Rental income
**5**
143
(8)
-
**Income from charitable activities**
WLM Services
**6**
405
-
1,572
Local ministry
**6**
146
-
70
King’s Cross Chaplaincy House
**6**
111
-
-
**Total income**
1,105
(8)
1,642
**Expenditure**
**Expenditure on raising funds**
Investment management costs
19
-
-
WLM fundraising
247
**Expenditure on charitable activities**
Local ministry
**7**
201
49
70
WLM Services
**7**
1,917
156
1,572
King’s Cross Chaplaincy House
**7**
133
15
-
Other expenditure
**7**
98
22
-
**Total Expenditure**
**7**
2,615
242
1,642
**Net income/(expenditure) before transfers**
**17,18**
**19**
(1,510)
(250)
-
Transfers between funds
(92)
92
-
**Net income for the year**
(1,602)
(158)
-
**Other recognised gains and losses**
Realised / unrealised (loss)/gain on
investment assets
**14**
1,259
-
-
Revaluation of investment properties
**11**
145
-
-
**Net movements in funds**
(198)
(158)
-
Fund balances at 1 September 2020
**17,18**
**19**
16,137
698
29
Fund balances at 31 August 2021
**17,18**
**19,20**
15,939
540
29
**23**
**Comparative Statement of Financial Activities**|**Total**
**2021**
**£’000**
38
262
135
1,977
216
111
2,739
19
247
320
3,645
148
120|**Total**
**2020**
**£’000**
70
295
77
2,031
125
118
2,716
22
229
340
2,424
164
174|
|---|---|---|---|---|---|---|
|||2,615
(1,510)
(92)|242
(250)
92|1,642
-
-|4,499
(1,760)
-|3,353
(637)
-|
|||(1,602)
1,259
145|(158)
-
-|-
-
-|(1,760)
1,259
145|(637)
(880)
(145)|
|||(198)
16,137|(158)
698|-
29|(356)
16,864|(1,662)
18,526|
|||15,939|540|29|16,508|16,864|
36