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← West London Mission Methodist Circuit

2023-08-31-accounts

Report & Financial Statements

For the year ended 31 August 2023

West London Mission Circuit - Circuit Fund

1

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 – 34

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West London Mission Circuit – Circuit Fund Year ended 31 August 2023

Officers and advisers

Trustees (members of the Circuit Meeting)

Peter Cornick (Chair) Gabriel Koay Edna Wijeratna
Tessa Bennett Kamuel Leung Gerry Wong
Karen Chiu Emerson Rizzi Rebecca Wong
James Cruddas Martin Single Rayman Wong
Janice Francis Alethea Siow Ruth Yorke
Mary Hicks Cathy Slater Jongikaya Zihle
Kong Ching Hii Gordon Slater
Chief Executive Officer Roger Clark (until 8 March 2023
CEO, WLM Services Jude McKee (from April 2023)
Central office 19 Thayer Street
London
W1U 2QJ
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 Year ended 31 August 2023

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 (now Strides), 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 in February 2022 to create a separate charitable trustee body for the WLM Services. This is to address issues of the governance of risk. The Circuit appointed an Implementation Committee and two prominent co-chairs with Methodist, housing regulation and safeguarding backgrounds to steer the process of separation. As might be expected, the process of separation is complex and time-consuming, but the Circuit is on a trajectory towards a new trustee body for WLM Services.

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 church has continued to develop its online presence through the website and social media, which has brought new people into the church. Hinde Street are actively reviewing their finances and lettings, working towards a balanced budget. Hinde Street also reviewed 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 were put in place in spring 2023.

At King's Cross, both the Mandarin and Cantonese congregations continue to welcome streams of new migrants from mainland China and Hong Kong respectively. In return, they are making a positive contribution to the life of the church. The International Congregation remains a small but active congregation. In line with the goal to open the church premises and to serve as a community centre in the city, the church organized several public events and works in partnership with two Chinese organizations that work among the wider Chinese community. This has enabled the church to establish many connections with the wider community and beyond.

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. 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 exciting 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 was ordained in June 2023. She has responsibility for Methodist Chaplaincy House and other projects

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

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West London Mission Circuit – Circuit Fund Year ended 31 August 2023

Report of the Circuit Meeting (continued)

Chair's Introduction (continued)

August 2023 due to personal circumstances. We are delighted that Deacon Ruth Yorke has been 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 Year ended 31 August 2023

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: a student community at King's Cross; and the professional housing and community services known as WLM Services. 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 oversees the governance of WLM Services which, jointly with WLMHA, employs 45 professional staff delivering projects across 7 sites based in London. The WLM Services Executive manages the services, which have a mission of co-creating safe spaces for people to achieve their potential. 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.

WLM Services has recently adopted a new identity under the name Strides, but the WLM name has been retained in this report as it relates to past events.

The WLM Services are operated by the Circuit either directly or as agent for WLMHA. In the case of those services operated directly by the Circuit, these accounts include all their income, expenditure, assets and liabilities. In the case of services operated 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 operated directly by the Circuit:

WLM Seymour Place

This is situated at 134 – 136 Seymour Place, London W1. Following refurbishment in 2019 the building is a community hub hosting charities that provide community based services.

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 (HCC)

During 2022 counselling services re-located to the newly acquired premises at 12 Woodfall Road, London N4. HCC provides low cost counselling to the local community, hosts partnerships providing therapy services to the community and hosts training seminars for professionals in the sector.

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West London Mission Circuit – Circuit Fund Year ended 31 August 2023

Report of the Circuit Meeting (continued)

Services operated 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 for three years to deliver the London Youth Hub for homeless young people aged 18 - 25.

WLM Burgess Park House

This is situated at 56 Camberwell Road, London SE5. It provided supported housing for ex-service people who have experienced homelessness, offering support in sustaining accommodation, until 8 February 2022 and the residents were relocated due to fire health and safety compliance issues. The site is now compliant and providing support and accommodation for LGBTQ young people aged 18+ who are survivors of domestic abuse, in collaboration with the STAR project and MOPAC.

WLM Cherry Tree House

This is situated at 343 Clapham Road, London SW9. It provides accommodation for veterans needing floating support prior to their move to Veteran Nomination Scheme accommodation.

WLM St Luke’s

This property is located at 25A Wincott Street, London, SE11 4NT. This site has a community Hub hosting a mix of community support and outreach partnerships and events. The site also has a residential building with 26 bedrooms and a one bedroom flat, which provides low cost accommodation for veterans (relocated from BPH) and keyworkers.

Achievements and Future Plans

The financial year 2022-2023 focused on the consolidation of the strategy of further professionalisation of the WLM Services. The WLM Services central office moved to The Foundry at Vauxhall in December 2022 and the central office team was restructured leading to the appointment of a new CEO with a focus on the WLM Services rather than the entire Circuit. This restructure encompassed the HR and finance functions that previously bridged both Circuit and WLM Services. Wren Environmental were appointed to address the facilities management of WLM Services buildings and the buildings were reopened after the necessary works, to enable their use to address homelessness.

Following a governance review undertaken by the Circuit in 2022 the decision was made to separate the WLM Services from the governance of the Circuit. An Implementation Committee was appointed to oversee the separation and they concluded and made their recommendations in September 2023. The intention has been to consolidate the WLM Services under a reconstituted WLMHA with a new Board of Directors and a new identity. The new Board of Directors were recruited in June 2023 and are awaiting appointment and providing an advisory function as directors in waiting from September 2023. It is hoped to conclude the legal separation process in the near future. Future plans centre on the sustainability reports produced by each service area and the centre to ensure a viable and growing business model for the new organisation. WLM Services was rebranded in early 2024 under the Strides name.

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West London Mission Circuit – Circuit Fund Year ended 31 August 2023

Report of the Circuit Meeting (continued)

Community

St Luke’s

The St Luke’s site continued to develop to deliver on the dual aspects of its residential and community hub work. St Luke’s residential provided low cost accommodation for key workers and hosted some of the veterans relocated from Burgess Park House.

Burgess Park House

The veterans housing service at Burgess Park House was closed in February 2022 following concerns with Health and Safety issues on the site. The site re-opened after compliance works were completed in September 2023 and now hosts a service in collaboration with the STAR project housing LGBTQ young people aged 18+ who are survivors of domestic abuse.

Cherry Tree House

Veterans were housed in Cherry Tree House during 2022-2023. Capital works to replace the windows will be undertaken in 2023-2024.

Counselling

HCC's objective is to continue our professional work effectively with people seeking psychodynamic counselling from across London, and further develop the service by working with other community projects. To that end, in the summer of 2022 the service recruited a new Clinical Manager, and the previous one progressed to the Head of Counselling role, thus adding more capacity for the HCC team, and for the Senior Leadership team of WLM Services. In terms of the HCC clinic, between September 2022 and August 2023, we offered approximately 2,821 counselling and psychotherapy sessions, holding an average caseload of 80 clients seen by 40 counsellors, with attendance rate above 93%, and an average fee of £21 per session.

Criminal Justice

KPH housed 140 residents and consistently maintained a high occupancy rate throughout the year. KPH reinstated face to face drug support services, which had been suspended following the pandemic. A leaving pack is now being offered to all residents, supporting move on to settled accommodation.

Fundraising Report

In September 2022 a new Head of Fundraising was appointed, and has changed the way we fundraise. Whilst a strategy for fundraising is still in development, the principles of being needs and priority-led, not funder-led, are being put into place, meaning fundraising activity is being focused on areas of the organisation where the fundraising need is highest. This has taken most of the year to change, and is an organisational shift in the way we work. The fundraising team is being restructured and the approach focused on the areas of greatest need and opportunity.

‘Normal’ fundraising activity continued with individual fundraisers taking part in the Royal Parks Half Marathon and the London Homeless Collective’s London Walk, and a Christmas campaign focusing on each of our services. Grant applications were written for the majority of our services.

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West London Mission Circuit – Circuit Fund Year ended 31 August 2023

Report of the Circuit Meeting (continued)

The change to ensure that we are fundraising where there is greatest need has proved successful, and services which have never before received funding (KPH, HCC) are now receiving moderate grant funding, with a view for more significant grants in 23/24.

Against an ambitious target of £650,000, these accounts include £325,000 of fundraising income from a variety of sources including trusts, statutory sources, individuals, events, community and others.

Additionally, the Circuit received £84,000 from a legacy.

No complaints were received about fundraising activities.

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.

Every donation we receive is greatly appreciated. We thank all of our supporters who made donations during 2022-23, especially those who left us a special gift in their will. We’re grateful to each of our donors, especially the 61 regular donors who give on a monthly, quarterly or annual basis.

Special thanks also to the following whose donations and grants have helped us continue our work this year:

City Bridge Trust Aziz Foundation Westminster City Council Incredible Edible Lambeth Armed Forces Covenant Wetherby Senior School Hyde Park Place Estate Charity Charles Plater Trust Lane Clark & Peacock LLP (LCP) Morgan Sindall Wilde, Mr Steve BNP Paribas St Giles-in-the-Fields HFW St Matthew's Bayswater Wyndham Charitable Trust Barnett and Sylvia Shine Charitable Trust Rotary Club of St. Marylebone 29th May 1961 Charitable Trust National Lottery Community Fund Austin and Hope Pilkington Trust Benefact Trust

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West London Mission Circuit – Circuit Fund Year ended 31 August 2023

Report of the Circuit Meeting (continued)

Marylebone Music Festival Albert Gubay Foundation Royal Lancaster London French Huguenot Church of London Trust Hinde Street Methodist Church

Financial Review

The financial statements for the year ended 31 August 2023 show a deficit of £973,000 on general funds before transferring £51,000 to the designated funds. The balance on the general income reserve at 31 August 2023 was £141,000 (after transferring £1,200,000 from the capital reserve, as agreed by the Circuit Meeting, to cover the cost of maintaining vacant properties, a shortfall in fundraising and investment income, and the cost of the project to separate WLM Services from the Circuit.

The WLM Services are funded largely by accommodation charges, grants from statutory and other bodies, and fundraising for specific projects.

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.

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West London Mission Circuit – Circuit Fund Year ended 31 August 2023

Report of the Circuit Meeting (continued)

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.

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 2022 to the date of this report were as stated below:-

Rayman Wong Alethea Siow Amy Tang (to 31 August 2023) Gabriel Koay (from 28 March 2023) Kamuel Leung (from 25 April 2023)

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:

Pei-Ling Chay, Jenny Cheong, Belinda Letby, Margaret Rudland, Amy Tang.

Key management personnel and basis of remuneration

Key management personnel comprises the Chief Executive Officer (CEO) and Deputy CEO. 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.

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West London Mission Circuit – Circuit Fund Year ended 31 August 2023

Report of the Circuit Meeting (continued)

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 restructuring and refocusing the fundraising team.

3 Reputation

The Circuit 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 risks which are drawn to its attention.

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 (£141,000 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 £11,685,000 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 2022-2023.

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.

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West London Mission Circuit – Circuit Fund Year ended 31 August 2023

Report of the Circuit Meeting (continued)

Going Concern

The Trustees have made an assessment for a period of at least one year from the date of approval of the financial statements. 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.

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 ……….......................... 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 Year ended 31 August 2023

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 2023 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:

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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West London Mission Circuit – Circuit Fund Year ended 31 August 2023

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

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:

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.

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West London Mission Circuit – Circuit Fund Year ended 31 August 2023

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

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

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

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West London Mission Circuit – Circuit Fund Year ended 31 August 2023

those charged with governance of the charity.

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

Our approach was as follows:

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 Moore Kingston Smith LLP Statutory auditor

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 2023

Notes
Income
Donations and Legacies
3
Income from Investments
Investment income
4
Investment property 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
7
WLM fundraising
7
Expenditure on charitable activities
Local ministry
7
WLM Services
7
King's Cross Chaplaincy House
7
Other expenditure
7
Total expenditure
Transfers between funds
17,18,
19
Net income for the year
Other recognised gains and losses
Realised and unrealised loss on
investment assets
14
Revaluation of investment
properties
11
Net movement in funds
Fund balances at 1 September 2022
17,18,
19
Fund balances at 31 August 2023
17, 18,
19, 20
Net income/(expenditure) before
transfers		 General
funds
Designated
funds
Restricted
funds
Total
2023
Total
2022
£'000
£'000
£'000
£'000
£'000
(see note 24)
86
-
-
86
4
254
-
-
254
323
202
-
-
202
148
86
-
1,910
1,996
1,509
161
-
70
231
220
185
-
-
185
147
974
-
1,980
2,954
2,351
11
-
-
11
22
203
-
-
203
196
332
18
70
420
402
1,044
-
1,772
2,816
3,262
137
-
-
137
129
220
-
-
220
382
1,947
18
1,842
3,807
4,393
(973)
(18)
138
(853)
(2,042)
(51)
51
-
-
-
(1,024)
33
138
(853)
(2,042)
(135)
-
-
(135)
(558)
(125)
-
-
(125)
(220)
(1,284)
33
138
(1,113)
(2,820)
13,110
578
-
13,688
16,508

11,826
611
138
12,575
13,688

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

18

West London Mission Circuit - Circuit Fund Balance sheet

As at 31 August 2023

Notes
Fixed assets
Trust properties
10
Investment properties
11
Concessionary loans to West London Mission
Housing Association Limited
12
Tangible fixed assets
13
Intangible fixed assets
13
Investments
14
Current assets
Debtors
15
Cash at bank and in hand
Cash on deposit
16
Net current assets
Net assets
Funds
General funds
Capital reserve
17
Income
17
Designated funds
18
Restricted funds
19
Total funds
Creditors: Amounts falling due after more than one
year
Creditors: Amounts falling due within one year		 2023
2022
£'000
£'000
4,398
4,271
3,140
3,265
1,240
1,189
80
36
4
10
2,108
3,835
10,970
12,606
1,195
1,065
646
611
345
274
2,186
1,950
(581)
(868)
1,605
1,082
-
-
12,575
13,688
11,685
12,972
141
138
11,826
13,110
611
578
138
-
12,575
13,688

Approved by the Circuit Meeting on 19 March 2024 and signed on its behalf by Members of the Circuit Meeting:

Alethea Slow

Peter Cornick

19

West London Mission Circuit - Circuit Fund Statement of Cash Flows For the year ended 31 August 2023

Cash flows from operating activities
Net shortfall
Adjustments for:
Depreciation
Amortisation
Loss on investments
Revaluation of investment properties
Investment income
Increase in trade and other debtors
Decrease in 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 of concessionary loans
Proceeds on disposal of investments
Investment income
Rental income
Cash flows generated from investing activities
Net increase/(decrease) in cash
Cash balance at 1 September 2022
Cash balance at 31 August 2023		 2023
£'000
(1,113)
31
6
135
125
(254)
(130)
(287)
(202)		 2023
£'000
(1,689)
1,795		 2022
£'000
(2,820)
34
9
558
220
(323)
(120)
(106)
(148)		 2022
£'000
(2,696)
2,853
(75)
(127)
-
(51)
1,592
254
202		 (8)
(343)
(1)
(76)
2,810
323
148
106
885		 157
728
991 885

20

West London Mission Circuit – Circuit Fund Year ended 31 August 2023

Notes to the Financial Statements

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 four 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 Year ended 31 August 2023

Notes to the Financial Statements

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 Year ended 31 August 2023

Notes to the Financial Statements

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.

23

West London Mission Circuit - Circuit Fund Notes to the financial statements (continued) For the year ended 31 August 2023

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
Available for Circuit activities
5
Investment property accounts
Rental income
Expenses
Surplus for the year		 Total
Total
2023
2022
£'000
£'000
2
2
84
2
86
4
Total
Total
2023
2022
£'000
£'000
12
1
61
122
23
30
17
18
89
111
52
41
254
323
89
111
165
212
254
323
Total
Total
2023
2022
£'000
£'000
212
162
(10)
(14)
202
148

24

West London Mission Circuit - Circuit Fund Notes to the financial statements (continued) For the year ended 31 August 2023

6 Income from charitable activities

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 Church contribution to dilapidations fund
King's Cross Chaplaincy House		 Total
Total
2023
2022
£'000
£'000
1,910
1,437
86
72
1,996
1,509
220
204
11
7
-
9
231
220
185
147
2,412
1,876

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.

25

West London Mission Circuit - Circuit Fund Notes to the financial statements (continued) For the year ended 31 August 2023

7
Expenditure
Ministers and manses
King's Cross community interns
District assessment
Central office costs
Hinde Street community work
Chaplaincy House costs
WLM Services
Audit and accountancy
Total
Cost of raising funds
Total expenditure
Donations and legacies (see note 3)
Investment income (see note 4)
Net surplus/(deficit) by activity
King's Cross Chinese-speaking lay
workers
Net deficit/(surplus) of WLMHA Services
Income from charitable activities (see
note 6)
Investment property surplus (see note 5)		 Hinde
Street
Church
King's
Cross
Church
Community
work
£'000
£'000
£'000
79
93
-
-
47
-
-
-
-
31
20
-
106
15
-
-
-
29
-
-
-
-
-
-
-
-
-
-
-
-
Local
Ministry
Total
WLM Services
Chaplaincy
House
Governance
Costs
Other
costs and
income
Total 2023 Total 2022
£'000
£'000
£'000
£'000
£'000
£'000
£'000
172
15
15
-
27
229
218
47
-
-
-
-
47
27
-
-
-
-
-
-
1
51
-
-
-
-
51
43
121
101
-
-
140
362
422
29
-
-
-
-
29
41
-
-
122
-
-
122
116
-
2,550
-
-
-
2,550
2,671
-
-
-
53
-
53
74
-
150
-
-
-
150
562
216
175
29		 420
2,816
137
53
167
3,593
4,175
-
203
-
-
11
214
218
(420)
(3,019)
(137)
(53)
(178)
(3,807)
(4,393)
-
-
-
-
86
86
4
189
-
-
-
65
254
323
- - -
-
202202148
231
1,996
185
-
-
2,412
1,876
-
(1,023)
48
(53)
175
(853)
(2,042)

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.

26

West London Mission Circuit - Circuit Fund Notes to the financial statements (continued) For the year ended 31 August 2023

8 Net surplus/(deficit) of WLM Services

Services incorporated on a gross basis

Katherine

Income - external
Expenditure - external
Net surplus/(deficit) of services
controlled by Circuiit		 Price
Hughes
House
Highbury
Counselling
Centre
Seymour
Place
Fundraising
Central
costs
Total
2023
Total
2022
£'000
£'000
£'000
£'000
£'000
£'000
£'000
1,399
145
284
82
86
1,996
1,509
(989)
(271)
(244)
(203)
(1,162)
(2,869)
(2,896)
410
(126)
40
(121)
(1,076)
(873)
(1,387)

Services incorporated on a net basis

St Luke's
The Haven
Ex-Military Supported Housing
Housing Association central net income
Net surplus/(deficit)		 Total
2023
Total
2022
£'000
£'000
(58)
(80)
(21)
(522)
(155)
(30)
84
70
(150)
(562)

27

West London Mission Circuit - Circuit Fund Notes to the financial statements (continued) For the year ended 31 August 2023

9 Emoluments

9.1 Staff

Staff
Staff costs (excluding agency costs)
National insurance
Pension contributions
The above includes termination and redundancy payments of £49,015 (2022: £0)
Average number of permanent staff during the year
Full time equivalent number of permanent staff during the year		 Total
Total
2023
2022
£'000
£'000
1,499
1,316
141
133
122
119
1,762
1,568
43
48
41
41

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 (2022: nil). One staff members earned more than £70,000 but less than £79,999 during the year (2022: two). One staff member earned more than £80,000 but less than £89,999 during the year (2022: nil).

Key management personnel comprises the Chief Executive Officer and the Deputy Chief Executive Officer. The total employee benefits of the key management personnel of the charity were £219,928 (2022: £184,864).

9.2 Trustees

The Circuit paid stipends and pensions contributions for the following trustees who are Methodist ministers appointed to the Circuit: £39,464 (2022: £37,853) to Peter Cornick and £36,772 (2022: £35,271) to each of Belinda Letby, Kong Ching Hii and Tessa Bennett.

The Circuit also provides a manse to each of the Ministers and meets the running costs.

Apart from the above, none of the Treasurers of the Fund or other trustees received any remuneration, nor reimbursement of expenses, directly from the Circuit during the year (2022: none).

9.3 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.

28

West London Mission Circuit - Circuit Fund Notes to the financial statements (continued) For the year ended 31 August 2023

10 Trust properties

At 1 September
Additions during the year
Revaluations
At 31 August
Represented by (all amounts relate to charitable activities):
Circuit offices
Manses
WLM Services property
King's Cross
11
Investment properties
At 1 September
Revaluations
At 31 August		 Total
Total
2023
2022
£'000
£'000
4,271
3,928
127
343
-
-
4,398
4,271
394
394
1,452
1,452
2,438
2,381
114
44
4,398
4,271
Total
Total
2023
2022
£'000
£'000
3,265
3,485
(125)
(220)
3,140
3,265

The valuation of investment properties was reviewed as at 31 August 2023 by a church member who is RICS qualified.

12 Concessionary loans

£1,027,452 (2022: £974,079) represents the balance outstanding under a loan to West London Mission Housing Association Limited in 2001 for the purchase of The Haven. 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%.

£212,842 (2022: £214,976) 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.

29

West London Mission Circuit - Circuit Fund Notes to the financial statements (continued) For the year ended 31 August 2023

13 Tangible & Intangible fixed assets

13
Tangible & Intangible fixed assets
Leasehold
Improvements
Fixtures and
fittings
IT equipment
Total tangible
fixed assets
Total
Intangible
fixed assets
£'000
£'000
£'000
£'000
£'000
Cost
At 1 September 2022
-
94
156
250
63
Additions
68
-
7
75
-
Disposals and fully depreciated
-
(90)
(53)
(143)
(46)
At 31 August 2023
68
4
110
182
17
Depreciation / Amortisation
At 1 September 2022
-
88
126
214
53
Charge for the year
17
3
11
31
6
Released on disposal and fully
depreciated
-
(90)
(53)
(143)
(46)
At 31 August 2023
17
1
84
102
13
Net book values
At 31 August 2023
51
3
26
80
4
At 31 August 2022
-
6
30
36
10
14
Investments
Total
Total
2023
2022
£'000
£'000
Market value
At 1 September
3,835
7,203
Additions
-
-
Disposals
(1,592)
(2,810)
Realised and unrealised gains/(losses)
(135)
(558)
At 31 August
2,108
3,835
The above total comprises:
CFB UK Equity Fund units
1,571
2,461
CFB Property Fund units
131
647
CFB Corporate Bond Fund units
405
727
CFB Mixed Managed Fund
1
-
2,108
3,835
Cost value at 31 August
1,862
1,184
15
Debtors
Total
Total
2023
2022
£'000
£'000
1,040
706
Trade debtors
74
221
Other debtors
2
6
Prepayments
60
29
Accrued income
19
103
1,195
1,065
Balances due from associated bodies (see note below)		 Leasehold
Improvements
Fixtures and
fittings
IT equipment
Total tangible
fixed assets
Total
Intangible
fixed assets
£'000
£'000
£'000
£'000
£'000
-
94
156
250
63
68
-
7
75
-
-
(90)
(53)
(143)
(46)
68
4
110
182
17
-
88
126
214
53
17
3
11
31
6
-
(90)
(53)
(143)
(46)
17
1
84		 102
13
51
3
26		 80
4
-
6
30		 36
10
Total
Total
2023
2022
£'000
£'000
3,835
7,203
-
-
(1,592)
(2,810)
(135)
(558)
2,108
3,835
1,571
2,461
131
647
405
727
1
-
2,108
3,835
1,862
1,184
Total
Total
2023
2022
£'000
£'000
1,040
706
74
221
2
6
60
29
19
103
1,195
1,065

"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.

30

West London Mission Circuit - Circuit Fund Notes to the financial statements (continued) For the year ended 31 August 2023

16 Creditors: Amounts falling due within one year

Trade creditors
Other creditors
Other taxes and social security
Accruals
Deferred income
Balances due to associated bodies (see note 15 above)		 Total
Total
2023
2022
£'000
£'000
196
387
132
266
36
33
48
28
38
67
131
87
581
868

17 General funds

General funds
At 1 September 2022
Net surplus/(deficit) for the year
Revaluation of investment properties
Transfer between funds
Transfer to dilapidations reserve
At 31 August 2023
Realised and unrealised gains/(losses) on investment assets		 Capital
reserve fund Income funds
Total
£'000
£'000
£'000
12,972
138
13,110
173
(1,146)
(973)
(135)
-
(135)
(125)
-
(125)
(1,200)
1,200
-
-
(51)
(51)
11,685
141
11,826

18 Designated funds

Designated funds
At 1 September 2022
Income
Expenditure
Transfer from general funds
At 31 August 2023		 Dilapidations
fund
Development
fund
Total
£'000
£'000
£'000
560
18
578
-
-
-
(18)
-
(18)
51
-
51
593
18
611

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

At 1 September 2022
Income
Expenditure
At 31 August 2023		 WLM
Services
Chinese
Work
Total
£'000
£'000
£'000
-
-
-
1,910
70
1,980
(1,772)
(70)
(1,842)
138
-
138

31

West London Mission Circuit - Circuit Fund Notes to the financial statements (continued) For the year ended 31 August 2023

20 Analysis of net assets

Analysis of net assets
£'000
£'000
£'000
Fixed assets
4,482
-
-
Investment properties
3,140
-
-
Investments
1,359
611
138
Cash
646
-
-
Cash on deposit
345
-
-
Capital Loans to WLMHA
1,240
-
-
Debtors
1,195
-
-
Current liabilities
(581)
-
-
11,826
611
138
Unrealised gain included above
On investment properties
2,667
-
-
On investments
2,600
-
-
5,267
-
-
Reconciliation of movements in unrealised gains on investment assets
Balance at 1 September 2022
General funds
Restricted
funds
Designated
funds		 £'000
£'000
£'000
4,482
-
-
3,140
-
-
1,359
611
138
646
-
-
345
-
-
1,240
-
-
1,195
-
-
(581)
-
-
General funds
Restricted
funds
Designated
funds		 2023
2022
£'000
£'000
4,482
4,317
3,140
3,265
2,108
3,835
646
611
345
274
1,240
1,189
1,195
1,065
(581)
(868)
11,826
611
138		 12,575
13,688
2,667
-
-
2,600
-
-		 2,667
2,792
2,600
2,735
5,267
-
-		 5,267
5,527
5,527
6,305
(260)
(778)
5,267
5,527

21 Contingent liabilities

A supplier has claimed £60,000 in respect of a disputed invoice for work which was unsatisfactory. The Circuit is resisting the claim in the courts and has counter-claimed for £21,000 for rectification costs.

32

West London Mission Circuit - Circuit Fund Notes to the financial statements (continued) For the year ended 31 August 2023

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 off any of these entities, and vice versa.

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

Details

Details
Value off transactions Amount owed to / (by) WLM
during year Circuit Fund
2023 2022 2023 2022
£'000 £'000 £'000 £'000
WLMHA
Housing Loans 51 78 1,240 1,189
Interest on Housing Loans 52 42 - -
Indexation on Housing Loans 89 111 - -
Administration charges 86 72 - -
Project deficit / (surplus) grant 150 562 - -
Creditor (dilapidations balances) - - (189) (189)
Settlement accounts
Circuit (20) (189) 141 161
WLM Services 205 499 839 634
King's Cross Methodist Church
Assessment 87 78 1 1
Contributions to Dilapidations Fund - 10 - -
Hinde Street Methodist Church
Assessment 133 126 54 31
Donald Soper Fund
Grant to Circuit Fund - - (2) (2)

23 Operating lease commitments The total minimum lease payments under non-cancellable operating leases are as follows:

Total Total
2023 2022
£'000 £'000
Expiring within 1 year 33 -
Expiring between 2 and 5 years 41 -

33

West London Mission Circuit - Circuit Fund Notes to the financial statements (continued) For the year ended 31 August 2023

24
Comparative Statement of Financial Activities		 24
Comparative Statement of Financial Activities		 24
Comparative Statement of Financial Activities
General Designated Restricted Total Total
funds funds funds 2022 2021
Notes £'000 £'000 £'000 £'000 £'000
Income
Donations and Legacies 3 4 - - 4 38
Income from Investments
Investment income 4 323 - - 323 262
Investment property income 5 148 - - 148 135
Income from charitable activities
WLM Services 6 72 - 1,437 1,509 1,977
Local ministry 6 149 9 62 220 216
King's Cross Chaplaincy House 6 147 - - 147 111
Total income 843 9 1,499 2,351 2,739
Expenditure
Expenditure on raising funds
Investment management costs 7 22 - - 22 19
WLM fundraising 7 196 - - 196 247
Expenditure on charitable activities
Local ministry 7 318 22 62 402 320
WLM Services 7 1,782 14 1,466 3,262 3,645
King's Cross Chaplaincy House 7 129 - - 129 148
Other expenditure 7 382 - - 382 120
Total expenditure 2,829 36 1,528 4,393 4,499
Net income/(expenditure) before transfers (1,986) (27) (29) (2,042) (1,760)
Transfers between funds 17,18,
19		 (65) 65 - - -
Net income for the year (2,051) 38 (29) (2,042) (1,760)
Other recognised gains and losses
Realised and unrealised
(loss)/gain on investment assets		 14 (558) - - (558) 1,259
Revaluation of investment
properties		 11 (220) - - (220) 145
Net movement in funds (2,829) 38 (29) (2,820) (356)
Fund balances at 1 September 2021 17,18,
19		 15,939 540 29 16,508 16,864
17,
Fund balances at 31 August 2022 18, 13,110 578 - 13,688 16,508
19, 20

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