2020-08-31-accounts - Wesley's Chapel And Leysian Mission

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WESLEY’S CHAPEL AND LEYSIAN MISSION REGISTERED CHARITY NO: 1137321

CITY ROAD CIRCUIT IN THE LONDON DISTRICT OF THE METHODIST CHURCH Circuit No. 35/1

TRUSTEES’ REPORT AND AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

WESLEY’S CHAPEL AND LEYSIAN MISSION

Contents
	Page
Trustees’ Report	2 - 13
Auditors’ Report	14 - 15
Statement of Financial Activities	16
Balance Sheet	17
Statement of Cash Flows	18
Notes to the Accounts	19 – 36
Statement of Income and Expenditure (General)	37

WESLEY’S CHAPEL AND LEYSIAN MISSION

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 AUGUST 2020

The Trustees present their report and audited accounts for the year ended 31 August 2020, which comply with the Charities Act 2011 and have been prepared in accordance with 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).

The name of the Charity is Wesley’s Chapel & Leysian Mission. It is the City Road Circuit in the London District of the Methodist Church; Circuit number 35/1.

Background

Wesley’s Chapel & Leysian Mission is a thriving Methodist congregation and charity in the heart of London with a full programme of services and events throughout the week. The site is a complex of Georgian and Victorian buildings located in a fine Georgian courtyard near the financial district of London. John Wesley’s chapel, his house and the Museum of Methodism are all on site for visitors to see.

The charity was registered as a charity on the 6[th] August 2010; registered charity number 1137321.

Registered address

47,47a & 49 City Road, London EC1Y 1AU

Trustees

The following are the Trustees of the registered charity who served during the year and were the legally named Trustees at the date that this report was approved: -

Ex-officio/Clergy

Jennifer Smith - Chair Steven Cooper (appointed Sept 19) Jongikaya Zihle (appointed Sept 19)

Property Trustees

Cheryl Gurnham - Convenor/Senior Circuit Steward Jerry Abankwah Emma Akazarah (resigned Oct 19) Samuel Appiah-Anderson Kingsley Kissi Louis Colley (appointed Nov 20) Adrian Beviss (appointed Nov 20)

Finance Trustees

Kofi Agbolegbe - Convenor Ebenezer Jojo Annan Peter Forward - Treasurer/Gift Aid Secretary Garrie Naden (resigned Jan 20) Stephen Ludlow Sylvester Mbeah (appointed Nov 20) Welbeck Achiampong (appointed Oct 19)

Mission Trustees

Josh Snape - Convenor Betty Maynard John Offeh Gavin Sutter Sagan Daniels Barnabas Masukume Louise Harding-Murray (appointed Oct 19)

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TRUSTEES’ REPORT FOR THE YEAR ENDED 31 AUGUST 2020 (continued)

Reference and administrative details

District Chair	The Revd Dr Jongikaya Zihle
Ministers	The Revd Canon Dr Jennifer Smith (Superintendent)
	The Revd Steven Cooper
Associate ministers	The Revd John Cooke (Supernumerary)
	The Revd Brian Goss (Supernumerary)
	The Revd Paul Hulme (Supernumerary)
	The Revd Dr John Lampard (Supernumerary)
	The Revd Stephen Penrose (Supernumerary)
	The Revd Ian Yates (Supernumerary)
Presbyter authorised to serve	The Revd Canon Dr Keith Riglin
Lay workers	Judith Bell (Leysian Missioner)
	Sally Rush (Community Worker Emerging Adults)
Museum	Christian Dettlaff (Curator)
	Gemma Smith (Learning & Community Engagement Officer)
Office & administration	Tracey Smith (Administration Manager)
	Ling Arzeian (Finance)
	Beatrice Omane (Administration)
Banking	HSBC Bank
	The Helicon, 1 South Place,
	London EC2M 2UP
	Lloyds Bank
	34 Moorgate
	London EC2R 6PL
Solicitors	Pothecary Witham Weld
	70 St George’s Square
	London SW1V 3RD
Investment management	Epworth Investment Management Limited
	9 Bonhill Street
	London EC2A 4PE
Auditors	Price Bailey LLP
	24 Old Bond Street
	London
	W1S 4AP

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TRUSTEES’ REPORT FOR THE YEAR ENDED 31 AUGUST 2020 (continued)

Structure, governance and management

City Road is a Circuit of the Methodist Church in Great Britain and its constitution and policy are determined by that body’s Model Trust and Standing Orders. The Circuit has only one Church, Wesley’s Chapel, having merged with The Leysian Mission in 1989. As a result, the same Trustees are members of both the Church Council and Circuit Meeting and always meet as one body in their capacity as Managing Trustees. Mission, Finance and Property matters are delegated to separate Committees of Trustees, which each report to the meetings of the Church Council/Circuit for any decision making. All major decisions of the charity are proposed to Trustees for consideration and advice. Responsibility for the day-to-day running of the Charity lies with the Superintendent Minister.

The appointment of Trustees is governed by the Standing Orders of the Methodist Church. New Trustees are appointed by the existing body of Trustees and the Circuit Meeting. Trustees are chosen from the congregation, and other known associates through recommendations. All Trustees perform their roles as volunteers. No Trustees receive any benefits in service to the Charity. All Trustees are inducted and referred to Charity Commission guidance on their roles and responsibilities. It is the policy of the charity to undertake a yearly training session for all Trustees.

Trustees plan to meet six times per year. Agendas and papers are circulated in advance of meetings, with formal minutes being circulated after each meeting.

Key management remuneration

The charity undertakes yearly benchmarking of key management personnel remuneration compared to other circuits, churches and similar roles in the Greater London area. An annual appraisal process is undertaken of each staff member to provide feedback and assess their roles and performance. This is in line with Methodist Church operations, policies and practices, with the Board authorising final pay rates.

Risk management

Although the full Trustee Board is responsible for managing risks they request the Property and Finance Committees, which have the most appropriate skills and experience, and the Superintendent Minister, who is also experienced in this area, to advise them.

We identify the social and economic impact of the Coronavirus as an immediate material risk, still ongoing and unquantifiable. The immediate risk is the infection of members, visitors, and staff through normal operations. The charity follows Methodist Church best practice guidelines, statutory advice and recommendations from Public Health England as a minimum standard to mitigate the risks of infection and pastorally support those infected. This has included enabling staff to work from home, altering liturgical practices, provision of sanitiser and educating the congregation to reduce risk.

A further short to medium risk is the loss or delay in weekly cash income and donations. The charity will keep in touch with members via phone, social media and others means as appropriate, as well as making provisions to maintain smooth cash flow.

A longer term risk identified is the reduced investment income and investment losses suffered as a result of the pandemic and the economy. The charity will work with Epworth Investment Management to minimise the impacts as much as possible.

At present, there are no other risks identified which are considered to be material, based on the combination of likelihood of occurrence and seriousness of impact were they to occur. However, the key risks noted on the current risk register include:

Damage to reputation: Incidents or events may damage or negatively impact the charity's reputation or operations (e.g. fraud, security, major incidents) Mitigation:
Preventative policies and procedures in place —notably safeguarding and supervision policies of the Methodist Church, and risk assessments for church activity.

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Incidents, complaints and trends monitored by Trustees —in line with the complaints process of the Methodist Church.
Support available from Methodist Connexional team —notably the media office for engagement advice with media in a crisis, help in preparing press statements and other comments
Loss of key members of staff or ministers: Failure to recruit and retain required skills and talent to deliver our services and strategy. Mitigation:
Staff strategy and planning
Regular staff and volunteer meetings
Benchmarking of salaries and benefits
Policies and procedures
Specialist support from Methodist Connexional Team.
Reduction in congregation participation and attendance: The charity's income, activities and outreach may be impacted by falling congregational numbers or participation. Mitigation:
Specialist Trustees roles defined to ensure each activity and trends monitored
Financial reserves enable services and outreach to be maintained even if attendance fluctuates.
A full and active focus of every part of the church in evangelism and church growth, numerical and otherwise.
Receiving less funding or fewer public donations and offerings: The charity is reliant on voluntary income to support its activities, a reduction to which may negatively impact its activities.

Mitigation:

Annual budget and five-year financial plan is maintained and regularly reviewed.
Regular reviews of trends in giving are undertaken by Trustees.
Finance Trustees undertake financial awareness campaign to membership.
Financial reserves enable services to be maintained even if donations fluctuate.
Losing money through inappropriate investments: The charity holds various investment assets to ensure the long-term security of the Chapel premises, as well as to provide annual investment income to assist it in meeting its annual outgoings. Losing money through inappropriate investments would both affect its long-term security and the income generated from the assets.

Mitigation:

Trustees have identified and agreed an investment policy which ensures that investment risk is widely spread and investments are readily realisable.
A professional firm of investment managers has been appointed to carry out the policy.
Reviews of investment performance are received and reviewed by the Finance Trustees.
• Annual face to face presentation is made by the Investment Manager.
Variability of income from investments: The charity relies on receiving income from its investment assets to balance its budget. An unexpected variance in the level of this income could impact the charity's finances adversely. Mitigation:
Annual budget and five-year financial plan, including identification of annual investment income targets.
Discussions held with Investment Managers to identify the relevant policy to achieve the required income levels.
Annual budgets are approved by the Board of Trustees.
Major damage to Chapel, Manse, Museum, an investment property or site: The charity's

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TRUSTEES’ REPORT FOR THE YEAR ENDED 31 AUGUST 2020 (continued)

ability to operate effectively adversely and/or its income may be diminished. Mitigation:

Trustees undertake regular review of key risk issues relating to each type of property.
Compulsory independent quinquennial property inspections undertaken
All properties are fully insured and revaluations regularly reviewed.
Financial reserves sufficient to enable services to be maintained even in severe stress situations.
Theft of items or cash: The charity's income may be affected adversely, its assets damaged or its ability to display heritage items diminished. Mitigation:
Unbanked cash is maintained at a minimum and stored securely.
Excess bank balances are banked promptly.
Insurance cover is maintained for both cash and other contents, including heritage assets.
Insurance cover is reviewed annually.
Surplus heritage items available to be displayed in place of lost items.
Financial reserves sufficient to enable services to be maintained despite losses.

Each of the risks are assessed on an annual basis by the Trustees, and are regularly monitored to ensure controls are in place and an effective risk plan is up-to-date. Policies and procedures are implemented and monitored against each risk. Any financial risks are reduced by regular review of the charity’s financial position and performance by the Trustees, monthly cash flow review, and by appointing designated Trustees with finance experience or interests to ensure the most efficient use of resources.

The Trustees have assessed the major risks to which the charity is exposed, in particular those related to the land, buildings, theft and investments, and are satisfied that systems are in place to control and mitigate their exposure to these risks.

Objectives and activities

The calling of the Methodist Church is to respond to the Gospel of God’s love in Christ and to live out its discipleship in worship and mission. Inspired by the calling, the aims are:

To increase awareness of God’s presence and to celebrate God’s love (worship)
To help people to grow and learn as Christians through mutual support and care (learning and care)
To be a good neighbour to people in need and to challenge injustice (service)
To make more followers of Jesus Christ (evangelism)

The Trustees have considered the Charity Commission’s general guidance on public benefit and have taken it into account when reviewing the Charity’s aims and objectives and in planning for its future activities. In this respect, their objective is to advance the Christian religion in the City Road Circuit of the London District of the Methodist Church and in the wider world for the benefit of the public. The Trustees are satisfied that the aims of the Charity are carried out wholly in pursuit of its charitable aims for the public benefit.

The Circuit’s more particular (and local) objectives are to promote and preserve Wesley’s Chapel as well as to develop and support ministry among those experiencing deprivation in Inner London and elsewhere.

In pursuit of these aims and objectives, the Circuit’s weekly programme is given on page 7. In addition, the Chapel and other buildings on the 49 City Road campus are an historic heritage site and the Circuit maintains a registered museum, consisting of the Museum of Methodism in the Crypt and John Wesley’s House, both of which are open daily. Note 11b to the accounts gives details of the contribution made to

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TRUSTEES’ REPORT FOR THE YEAR ENDED 31 AUGUST 2020 (continued)

these activities by volunteers. The Museum has secured full accreditation through the Arts Council England.

Wesley's Chapel serves its near neighbourhood in a large variety of ways. The Stay and Play group serves young families, child minders and carers in the immediate neighbourhood, as do our uniformed organisation - Boys' Brigade and Girls' Association.

Wesley's Chapel is situated in an area with a huge number of voluntary sector organisations and many of them use our facilities. We also host a Carol Service for these organisations at Christmas and keep them in touch with activities at the Chapel through a regular email update. Wesley’s Chapel also serves as the 'sanctuary' for a number of the local offices, when they have their fire evacuation alerts.

The charity relies on the generosity of local volunteers in order to carry out its mission and contribute to the running of activities, including providing tours, working in the museum or by devoting time to weekly services.

Weekly Programme

Sunday	9:45am	Holy Communion (except first Sunday in the month)
	11:00am	Morning Service
	12:00pm	Zoom Coffee (following Morning Service)
	5:00pm	Zoom Fellowship
	5:15pm	Zoom Bible Study
	6:00pm	Zoom Evening Prayer
	7:00pm	Taizé Style Service (second and last Sunday in the month)
Monday	10:00am	Morning Prayer (livestreamed)
Tuesday	10:00am	Morning Prayer (livestreamed)
	6:30pm	Boys’ Brigade & Girls’ Association (online currently)
Wednesday	10:00am	Morning Prayer (livestreamed)
	10:40am	Zoom Prayer Walk
	12:45pm	Service of Holy Communion (30 mins)
	7:00pm	Junior Church via Zoom (Every two weeks)
	8:00pm	Youth Group via Zoom (Every two weeks)
Thursday	10:00am	Morning Prayer (livestreamed)
	12:45pm	Service of the Word (30 mins)
		(followed by lunch & fellowship)
Friday	10:00am	Morning Prayer (livestreamed)
	5:17pm	Fridays@5.17 (online only)
Saturday	10:00am	Morning Prayer (livestreamed)
	11:00am	Discipleship Bible Study Course via Zoom
	4:30pm	Young Adults Fellowship Group Social via Zoom
		(First Saturday in the month – times vary according to activity)
	4:30pm	Young Adults Lunch & Bible Study via Zoom
		(third Saturday in the month)

All services are currently livestreamed only and all groups that continue to meet do so virtually due to the current pandemic.

It should be noted that Sunday school would usually form part of Sunday worship but is currently held online as per the above programme.

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TRUSTEES’ REPORT FOR THE YEAR ENDED 31 AUGUST 2020 (continued)

Groups/activities/events currently paused due to the pandemic:

Methodist Women in Britain (first Sunday in the month 12.30pm)
Wesley’s Chapel Ghana Fellowship (last Sunday in the month 12.30pm)
Wesley’s Chapel Methodist Men’s Fellowship (first Sunday in Month 12.30pm)
Sisterhood (Mondays at 2.00pm)
Stay and Play (Wednesdays at 10.00am – term time only)
Lunchtime Recital (Tuesdays at 1.05pm except July, August & December)
Thursday Lunchtime Service of the Word (except during Lent 2021)
Wednesday Lunchtime Service of Holy Communion
Teddy Bear Service (last Tuesday in the month at 10.30am)

Achievements and performance	2020	2019
	No.	No.
Church membership – in October falling within the accounting year	450	464
Museum visitors – total during the accounting year	8,807	18,547

Connexional year September 2019-2020 had both extraordinary challenges, and extraordinary strong and faithful response from the Trustees, staff, and members of this Church. In September 2019 we received a new ‘Minister of the Chapel,’ in the Revd Steven Cooper. All of the normal operation of the Circuit continued, including Sunday and mid-week worship, chaplaincy to the Central Finance Board of the Methodist Church, outreach in schools, pastoral care, learning and faith development, pastoral services and heritage activities.

In the first six months of the year our visitor numbers grew substantially, with the expansion of heritage learning, social media presence, and language resources. As of February 2020, we expected to have the highest number of recorded overseas visitors ever, and the largest engagement with our schools and other programmes. On the first Sunday in March, 2020, we had over 400 in the congregation; the second Sunday in March we had 46 adults on site and over 3,500 online; we closed from then and continued to have very high levels of viewing online as other churches began to make provision locally. We had no cessation of worship, but continued and expanded our livestream provision, as well as hosting the BBC Radio 4 Sunday Service commemorating 40 years since the martyrdom of Oscar Romero, on 29 March 2020. Because of the lockdown and our pre-existing livestream, these events put the Chapel in a prominent position nationally and within Methodism. We added a Monday to Friday daily service of morning prayer to our offer: this has continued since mid-March without break, and we expect will continue – its congregation is growing, but steady at 130-150 views per day. Our subscriber numbers to various social media platforms have increased to well over 2,500, with similar expansion in both Heritage and Church platforms. Our regular viewership is approximately 2,500 per week across our offer of services, with the 11am worship continuing to draw the largest congregation of 650-1,000 per week.

Fellowship, discipleship, training, and volunteer support have all also moved online - Sunday School numbers for active engagement are well down as we moved to zoom and other media, but we maintain contact with up to 50 children of church members and adherents. Our youth leaders record a deeper engagement with individuals, and an increasing constancy of attendance as we move forward. Similarly we have ceased all other events and activities on site, but kept contact where we can with previous participants. We were able to complete the refurbishment of the organ, a project lasting 18 months. We used the pause in regular operation during lockdown to entirely reform our internal record keeping and pastoral contact process and data management, allowing us to make much more regular weekly contact with members of the congregation and providing us with immediate access to contact details while complying with all relevant GDPR legislation. This infrastructure reform has been a major piece of work which is largely invisible to the congregation, but increases our productivity immeasurably and allows much more fluid response to need.

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TRUSTEES’ REPORT FOR THE YEAR ENDED 31 AUGUST 2020 (continued)

The work of the Community Worker with younger adults continued to build and thrive: by year end 2020 over 20 young adults (18-30) had attended fellowship social groups and/or discussion groups studying the book ‘Holy Habits.’ In a new partnership, the Community Worker for Emerging Adults undertook a weekly chaplaincy drop in on site at Soap Box, a local youth centre. This work has continued in an online capacity, drawing much greater engagement than it had before, partly driven by the renewed need for employment support. Our links with the chaplaincy of City University grew, as we added the lead Chaplain to our rota for presiding at Wednesday Communion services.

The on-site voluntary community, comprised initially of 3 single adults and rising to 6 in September 2018 with the renovation of 47a City Road, the Chapel Keeper’s House had remained at full capacity – lockdown saw changes, and the community is now only 3 members with the absence of the Global Mission Fellow and the Kwanglim intern who would usually be part of our onsite life. We also carry one vacant room aside from those absences, presently, and have been happy to welcome a new resident for the first time who is supported by a local authority. A successful application to Methodist Council allowed us to charge a less than market rate of rent for each of the 6 bedsits, let on Assured Shorthold tenancies, and leased with the expectation of a 6-8 hour/month voluntary commitment of each resident. This reduction in rent reflects the charitable aims of our society, and has been undertaken in full compliance with Methodist process and Standing Orders. Links with the Old Leysian Organisation and partnership with the Leys School, Cambridge, continue and develop, with strong pattern of fund raising supporting the Charity’s objectives and operation. Congregational and other fund raising supports local activity of the Charity and allows it to meet its charitable objectives.

The Trustees have prepared a 5-year financial and mission plan, but in response to the lockdown have also substantially revised our budgets. As with the whole charitable and heritage sector, our income has been substantially reduced, and we carried large operating deficit for the financial year, and expect to in the 2-3 years to come. Trustees have exercised strong oversight of the budgets, with furlough of 4 staff members and cuts in any non-essential spending, as well as reductions in fixed costs including utilities and site management. The Trustees are committed to review, protecting the charitable aims and the long-term sustainability of the charity while adopting a realistic and flexible response in uncertain times ahead. This year we also expanded our ecumenical engagement, signing a further covenant of mutual working with St Gile’s Cripplegate Church of England, St Joseph’s Roman Catholic parish, and Jewin Welsh Chapel.

We look to continue to increase our congregation and visitor numbers, as well as to develop our donor and grant network through 2021 and beyond. This year we brought in cashless giving for regular congregation members and visitors, with a combination of phone text giving, online, and tap debit/credit giving. The Charity is fully compliant, if working for a culture change among our membership, in relation to GDPR.

Investment policy, objectives and performance

The objective is to support the mission of the Methodist Church in the City Road Circuit London and to achieve that by producing real growth of income and preserving real value of capital.

Quarterly reports are received from the appointed Investment Managers, Epworth Investment Management Limited, giving assessments of the investment performance of the Charity's investment assets. Epworth are restricted into investing solely in the various investment funds of the Central Finance Board of the Methodist Church (CFB). These reports are made available to all the Finance Trustees which report in turn to the Church Council/Circuit Meeting. In addition, the Investment Managers meet with the Finance Trustees at least once annually.

The Charity operates an ethical investment policy in line with that of the Methodist Church nationally. The Investment Manager provides regular reports as to its voting record at company meetings, and also as to how it adheres to the stated ethical investment policy.

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TRUSTEES’ REPORT FOR THE YEAR ENDED 31 AUGUST 2020 (continued)

Finance review

Wesley’s Chapel and Leysian Mission has two distinct activities, the day to day running of the chapel and its wider Christian ministry and the operation of the Museum. In addition it maintains a number of restricted and endowed funds to support specific parts of its ministry and works.

The accounts for the year ended 31 August 2020 show a deficit of £167,762 (2019: £105,278 surplus) before investment losses of £222,618 (2019: £76,730), giving a net deficit for the year of £390,380 (2019: £28,548 surplus). Total funds at 31 August 2020 were £10,396,450 (2019: £10,786,830). Unrestricted income was £533,084 (2019: £595,170).

Trustees have been a stable working group during the year ensuring that the charity’s finances operate to best-practice standards, and ensuring that the processes and controls are in place to ensure all aspects of our finance is managed and undertaken well, especially during the continuing COVID crisis.

To ensure we are able to manage our current risks, including the major impacts of COVID, and any that may be encountered in the future, the Trustees meet regularly and review monthly accounts of the charity. This ensures that the charity is in the best possible financial position it can be, and our funds can be used to achieve our mission and goals in the most efficient manner financially.

The Trustees would like to thank all of the supporters of the charity, especially during this very difficult year. Regular donors, the church congregation, the Old Leysians, alumni of the Leys School, and supporters of the museum are all part of our wider family, and we thank them for enabling the charity to fulfil its mission and remain financially stable to continue its works. The support of members and friends continues to be highly appreciated by all involved. We only hope to continue to increase our services and support in the coming year.

Statement of Trustees’ responsibilities

The Trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England & Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the Trustees are required to:

select suitable accounting policies and then apply them consistently;
observe the methods and principles in the applicable Charities SORP 2019;
make judgements and estimates that are reasonable and prudent;
state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity’s website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements.

Reserves policy

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TRUSTEES’ REPORT FOR THE YEAR ENDED 31 AUGUST 2020 (continued)

Reserves are held to ensure that the Charity can continue to meet its commitments, mission and objectives in the event of short-term income shortfalls or unforeseen expenditure requirements.

(a) The Circuit has three categories of reserves (funds):

1.General and Designated Funds 2.Restricted Funds 3.Endowment Funds	2020 2019 £ £ 9,414,654 9,696,565 461,196 500,346 520,600 589,919
	10,396,450 10,786,830

(b) Reserves policy for General Funds

These are available for any purpose of the Methodist Church and comprise:

	2020 £	2019 £
Those representing the carrying value of land and buildings	4,579,901	4,225,000
Those designated for Property Endowment, House & Museum, Leysian Mission purposes (as laid down by Conference)	4,087,860	4,524,445
Those invested, mainly unconditional legacies, to provide ongoing income, thereby perpetuating the effect of the benefactors’generosity	586,328	867,718
Liquid funds, readily available for day-to-day expenditure. The Trustees’ policy is to build these funds until they reach approximately six months’ expenditure, or currently about £350,000.	160,565	79,402
	9,414,654	9,696,565

(c) Policy for Restricted Funds

These funds must be used only for special purposes of the Circuit or for specific purposes for which money was donated or bequeathed. They include Circuit Advance Fund (CAF) (Trust 18787) which is restricted by standing orders of the Methodist Church.

	2020 £	2019 £
CAF	2	6,779
Gibbs Fund–a donation from the Gibbs Trust to the House & Museum	111,430	129,776
Resthaven Trust– Proceeds ofsale ofaLeysian Mission holidayhome	167,759	186,250
Various other funds including clubs & societies	119,887	114,540
Kinnear Education Funds	62,118	63,001
	461,196	500,346

(d) Terms relating to Endowment Funds held

Most of the permanent endowment funds are invested and managed by the Trustees for Methodist Church Purposes. The capital cannot be spent, but the income is available for the following purposes:

Capital	2020 £	2019 £
Youth Council-Trust 22317-Gabriel, Grosvenor & Cooper	8,999	9,161
General Fund– VariousTrusts	511,601	580,758
	520,600	589,919
Income
YouthCouncil - Trust22317 -Gabriel, Grosvenor& Cooper	181	273
General Fund–Various Trusts	16,777	23,348
	16,958	23,621

Fundraising

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TRUSTEES’ REPORT FOR THE YEAR ENDED 31 AUGUST 2020 (continued)

Wesley’s Chapel & Leysian Mission understands its duty to protect the public, including vulnerable people, from unreasonably intrusive or persistent fundraising approaches and undue pressure to donate. The charity only received donations in the form of service offerings and legacies, and does not otherwise fundraise from the public or use any internal fundraisers or external agencies for any campaigns. The charity received no fundraising complaints during the year.

Plans for the future

In this twelve months, with pandemic response dominating our life as a charity, we have continued to build an integrated mission strategy between Church, Museum, and community: this will continue. We plan to raise the profile of the Chapel in the public eye, and have begun this process by greater media exposure and strategic use of social media and other platforms. Not least we have expanded our community outreach through Citizens UK, leading the successful campaign to provide laptops and data to local households in the ‘Shoreditch 300’ initiative. This has raised money for 46 laptops so far and continues.

Responding the themes of the Black Lives Matter movement in summer 2020, we have planned a major staged exhibition ‘Leadership on a Journey’ for autumn 2021, in which we will showcase stories, photos, artefacts, and video relating to Methodist leaders and communities from Black British, British Asian, British African, and others from overseas who have been part of social action and church leadership in and out of faith settings. This is undertaken by the Museum of Methodism, but has as partners the Methodist Connexion, the London District, and others.

We have future plans to expand the offer to younger adults in our church and in the community: already we have seen an expansion in engagement with the formal programmes on offer as they have moved online, and had 11 youth attend the national 3Generate Conference and engage in the 3Generate programme during the year. In the next year we hope to expand this group and support their transitions and growth in faith – and to reflect that growth in the main acts of worship in the life of the Chapel – all of this will be built into our strategy for phased return to in-person worship, and re-building the physically present congregation. Toward this end we plan to revitalise the current Boys’ Brigade and Girls’ Association (presently meeting online), and to expand the work of the Global Mission Fellow in 202123 to include direct support for this uniformed organisation and other youth activities.

We plan to continue to grow our congregation, and to focus on increasing worship attendance. We plan to deepen the intentional faith development opportunities for the congregation, using the draft connexional Methodist evangelism strategy ‘God for all’ as our template. Toward that end we plan to revise and expand our internal communications structures, to better promote events and chances for prayer and other faith development. We plan to make our employability work more visible in the local community, and to engage greater numbers of young adults and others at career transitions.

Our values, or the way in which we seek to act out our charitable purposes, continue to be kindness, wisdom, excellence, and integrity. Our future plans could be expressed as: seek, grow, learn, serve.

Seek : relationship with God and neighbour, understanding of self and history, connection with community, authentic prayer and worship.

Grow : in faith, in knowledge and skills, in confidence, in resilience, in accountability, inclusion, and safeguarding culture, in health and well-being as individuals and community.

Learn : from our diversity, from conflict and unity, from the situations of poverty and chances for mission around us, from our Scripture and tradition, from our cultures and media.

Serve : God, each other, our neighbours of all kinds, our partner local churches and our wider Methodist family.

For the future, we do not know what will happen. We will continue to invest in a community worker with younger adults, and to employ a full time Leysian Missioner who coordinates pastoral life and children

WESLEY’S CHAPEL AND LEYSIAN MISSION

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 AUGUST 2020 (continued)

and young people’s ministry. We will undertake a full review of staffing and resources, both to invest where necessary, and make recommendations for changes to the Trustees.

We will continue with strong financial planning and accountability, to resource ongoing projects:

Maintenance and improvement of property portfolio including manses, in a major ‘refresh’ programme improving mission opportunities and financed by strategic fund raising and release of reserves;
Further developing the Wesley Chapel intentional community (up to 6 bedsits, subsidised rent for community benefit);
Develop administrative team and lay leadership, recruitment of new Trustees and leaders;
Nurture and pastoral care of our congregation and continued congregational growth, including increased giving and vocations for service;
Continued evolution of social media and virtual presence of the Chapel and its mission;
Enhanced heritage and museum programme and collection, alongside appropriate chances for international academic engagement;
Planned strategic employed and lay staff development, and investment in our people
Development of space across our site for improved welcome, worship, learning and gallery areas (longer term); and
To seek outside funding and service partners, for income and discipline of purpose.

This future we commit to the creativity of the people in this place, inspired by the grace of God.

Approval

This report was approved by the Trustees on 30 March 2021 and signed on their behalf by:

Jennifer Smith Chair

Peter Forward Trustee

Independent Auditor’s Report to the Trustees of Wesley’s Chapel and Leysian Mission

Opinion

We have audited the financial statements of Wesley’s Chapel & Leysian Mission (the ‘charity’) for the year ended 31 August 2020 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 (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 2020 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

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

the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charity’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

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

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based 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 in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

the information given in the financial statements is inconsistent in any material respect with the trustees’ report; or
sufficient accounting records have not been kept; or
the financial statements are not in agreement with the accounting records; or
we have not received all the information and explanations we require for our audit.

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement [set out on page 10], the trustees are responsible for the preparation of financial statements which 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 the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

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

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. 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 anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Price Bailey LLP Chartered Accountants Statutory Auditor 3[rd] Floor, 24 Old Bond Street London W1S 4AP

Date:

Price Bailey LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

WESLEY’S CHAPEL AND LEYSIAN MISSION

STATEMENT OF FINANCIAL ACTIVITIES AT 31 AUGUST 2020

					Permanent
		Unrestricted Funds		Restricted	Endowment
		General	Designated	Funds	Funds	2020	2019
	Notes	£	£	£	£	£	£
Income and endowments
Donations and legacies	2	177,457	-	29,329	-	206,786	238,632
Investments	3	308,640	9,049	1,159	1,180	320,028	711,584
Charitable activities	4	30,629	-	-	-	30,629	45,747
Other		16,358	-	-	-	16,358	1.522
		─────	─────	─────	─────	─────	─────
Total income and endowments		533,084	9,049	30,488	1,180	573,801	997,485
Expenditure
Raising funds	5	25,457	9,049	924	1,180	36,610	83,781
Charitable activities	6	632,002	-	72,951	-	704,953	808,426
		─────	─────	─────	─────	─────	─────
Total expenditure	7	657,459	9,049	73,875	1,180	741,563	892,207
		─────	─────	─────	─────	─────	─────
Net income/(expenditure) before
gains and losses on investments		(124,375)	-	(43,387)	-	(167,762)	105,278
Net losses on investments	20	(59,921)	(436,585)	(32,449)	(54,364)	(583,319)	(76,730)
		─────	─────	─────	─────	─────	─────
Net (expenditure)/income for the year		(184,296)	(436,585)	(75,836)	(54,364)	(751,081)	28,548
Transfers between funds	20	(21,731)	-	36,686	(14,955)	-	-
Net gains on revaluation of fixed assets		360,701	-	-	-	360,701	-
		─────	─────	─────	─────	─────	─────
Net movement in funds		154,674	(436,585)	(39,150)	(69,319)	(390,380)	28,548
Total funds brought forward		5,172,120	4,524,445	500,346	589,919	10,786,830	10,758,282
		─────	─────	─────	─────	─────	─────
Fund balances carried forward	20	5,326,794	4,087,860	461,196	520,600	10,396,450	10,786,830
		═════	═════	═════	═════	═════	═════

The notes on pages 19 to 36 form part of these financial statements.

All of the above results are derived from continuing activities. There are no other recognised gains and losses other than those stated above. Movements in funds are disclosed above and in notes to the financial statements.

WESLEY’S CHAPEL AND LEYSIAN MISSION

BALANCE SHEET AT 31 AUGUST 2020

Notes Fixed Assets Tangible assets 12 Investment properties 13 Investments 14 Current Assets Debtors 16 Cash at bank and in hand Stock 17 Creditors: Amounts falling due within one year 18 Net Current Assets Total Net Assets Funds Unrestricted - General 19 - Designated Restricted 20 Permanent endowment 20 Total Charity Funds	2020 £ 1,458,528 3,160,701 5,454,085 10,073,314 44,260 319,650 13,745 377,655 54,519 323,136 10,396,450 5,326,794 4,087,860 9,414,654 461,196 520,600 10,396,450	2019 £ 1,499,752 2,800,000 5,928,963
		10,228,71 5
		80,875 594,781 14,128
		689,784
		131,669
		558,115
		10,786,830
		5,172,120 4,524,445
		9,696,565 500,346 589,919
		10,786,83 0

Approved by the Trustees and signed on their behalf on 30 March 2021:

Jennifer Smith Trustee

Peter Forward Trustee

Registered Charity No. 1137321

WESLEY’S CHAPEL AND LEYSIAN MISSION

BALANCE SHEET AT 31 AUGUST 2020

The notes on pages 19 to 36 form part of these financial statements.

WESLEY’S CHAPEL AND LEYSIAN MISSION STATEMENT OF CASH FLOWS AT 31 AUGUST 2020

Cash Flows from Operating Activities Net cash used by Operating Activities Cash Flows from Investing Activities Dividends, interest and rent from investments Purchase of property, plant and equipment Proceeds from sale of investments Purchase of investments Net cash provided by Investing Activities Change in cash and cash equivalents in the reporting period Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period Reconciliation of net expenditure to net cash flow from Operating Activities Net (expenditure)/income for the reporting period (as per the Statement of financial activities) Adjustments for: Depreciation and amortisation charges Losses on investments Dividends, interest and rents from investments Decrease in stock Decrease in debtors (Decrease)/increase in creditors Net cash used in operating activities Analysis of changes in net debt At start of year £ Cash flows £ At 31 August 2020 Cash at bank and in hand 594,781 (275,131) At 31 August 2019 Cash at bank and in hand 1,614,336 (1,019,555)	Cash Flows from Operating Activities Net cash used by Operating Activities Cash Flows from Investing Activities Dividends, interest and rent from investments Purchase of property, plant and equipment Proceeds from sale of investments Purchase of investments Net cash provided by Investing Activities Change in cash and cash equivalents in the reporting period Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period Reconciliation of net expenditure to net cash flow from Operating Activities Net (expenditure)/income for the reporting period (as per the Statement of financial activities) Adjustments for: Depreciation and amortisation charges Losses on investments Dividends, interest and rents from investments Decrease in stock Decrease in debtors (Decrease)/increase in creditors Net cash used in operating activities Analysis of changes in net debt At start of year £ Cash flows £ At 31 August 2020 Cash at bank and in hand 594,781 (275,131) At 31 August 2019 Cash at bank and in hand 1,614,336 (1,019,555)	Cash Flows from Operating Activities Net cash used by Operating Activities Cash Flows from Investing Activities Dividends, interest and rent from investments Purchase of property, plant and equipment Proceeds from sale of investments Purchase of investments Net cash provided by Investing Activities Change in cash and cash equivalents in the reporting period Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period Reconciliation of net expenditure to net cash flow from Operating Activities Net (expenditure)/income for the reporting period (as per the Statement of financial activities) Adjustments for: Depreciation and amortisation charges Losses on investments Dividends, interest and rents from investments Decrease in stock Decrease in debtors (Decrease)/increase in creditors Net cash used in operating activities Analysis of changes in net debt At start of year £ Cash flows £ At 31 August 2020 Cash at bank and in hand 594,781 (275,131) At 31 August 2019 Cash at bank and in hand 1,614,336 (1,019,555)	2020 £ (455,909)	2019 £ (473,642)
			293,157 (3,937) 293,576 (402,018)	680,722 (1,440,150) 955,869 (742,354)
			180,778	(545,913)
			(275,131) 594,781	(1,019,555) 1,614,336
			319,650	594,781
			2020 £ (390,380)	2019 £ 28,548
			45,162 222,618 (293,157) 383 36,615 (77,150)	62,080 76,730 (680,722) 89 27,224 12,407
			(455,909)	(473,642)
				At year end £ 319,650 594,781
	At start of year £	Cash flows £	Other non-cash changes £	At year end £
At 31 August 2020
Cash at bank and in hand	594,781	(275,131)	-	319,650

At 31 August 2019
Cash at bank and in hand	1,614,336	(1,019,555)	-	594,781

The notes on pages 19 to 36 form part of these financial statements.

WESLEY’S CHAPEL AND LEYSIAN MISSION

NOTES TO ACCOUNTS YEAR ENDED 31 AUGUST 2019

1. Accounting Policies

The Trust was registered as a charity in England, United Kingdom, on the 6[th] August 2010 and is governed by a Deed of Union under the Methodist Church Act 1976. The address of the charity is 47, 47a & 49 City Road, London, EC1Y 1AU.

1.1 Basis of preparation and assessment of going concern

The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011. The financial statements are presented in and are rounded to the nearest £.

The financial statements have been prepared to give a ‘true and fair view’ and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 14 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

The charity constitutes a public benefit entity as defined by FRS 102.

The Trustees consider that there are no material uncertainties about the charity’s ability to continue as a going concern. With respect to the next reporting period, 2020-21, the most significant areas of uncertainty that affect the carrying value of assets held by the charity are the level of investment return, impacts of COVID, and the performance of investment markets.

1.2 Tangible fixed assets for use by the charity and depreciation

Tangible fixed assets for use by the charity are stated at cost less depreciation. All assets costing more than £1,000 are capitalised and valued at historical cost.

Depreciation is provided at rates calculated to write-off the cost or valuation of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Fixtures, furniture & fittings - 5 to 10 years Freehold property - 50 years

Investment properties

1.3 Investment properties Investment properties are stated at fair value. Any realised and unrealised gains are shown in the Statement of Financial Activities.
1.4 Income and endowments
All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Donations, are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that those conditions will be fulfilled in the reporting period.

WESLEY’S CHAPEL AND LEYSIAN MISSION NOTES TO ACCOUNTS (CONTINUED) YEAR ENDED 31 AUGUST 2020

1.4 Income and endowments (continued)

Legacy gifts are recognised following the granting of probate when the administrator/executor for the estate has communicated in writing both the amount and settlement date. These are only to be accounted for if received by the date of the accounts being approved. In the event that the gift is in the form of an asset other than cash or a financial asset traded on a recognised stock exchange, recognition is subject to the value of the gift being reliably measurable with a degree of reasonable accuracy and the title to the asset having been transferred to the charity prior to the approval of the accounts.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid payable by the bank.

Dividends are recognised once the dividend has been declared and notification has been received of the dividend due. This is normally upon notification by our investment advisor of the dividend yield of the investment portfolio.

1.5 Heritage assets

The heritage assets represent the Grade 1 and Grade 2 listed church, stained glass, organ, and the Museum containing various artefacts, manuscripts and papers of John Wesley. The Museum consists of the Museum of Methodism, tracing the history of worldwide Methodism, in the Crypt of the Chapel and John Wesley’s House, which contains many original items of furniture.

The house was refurbished in 1992 and restored to a condition as much like the original as possible. The permanent collections contain manuscripts, photographs, letters and mementoes from his eventful life together and other objects totalling over 15,964 in number. The permanent collections are included in the balance sheet at market £nil valuation as they are historic in nature and have been fully written-off in previous accounts.

The Trustees believe that the costs to continually update the market value of the heritage assets would be onerous compared with the additional benefits derived by the Chapel and the users of the accounts. The latest estimated value of the building and organ is reported in Note 12b. The Trustees believe the benefits of obtaining valuations for the remaining items would not justify the cost as these items are estimated to be of little monetary value and are not insured as are irreplaceable originals, although the collections include duplicate and facsimile items held for educational and research purposes. Therefore, these items are not recognised in the balance sheet as reliable cost information is not available.

Expenditure which is required to preserve or prevent further deterioration of the buildings and individual items within the archive is recognised in the Statement of Financial Activities when it is incurred. The Chapel’s management policy in respect of its heritage assets is summarised in Note 12b.

1.6 Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably. All expenditure is accounted for on an accruals basis. All expenses including support costs and governance costs are allocated or apportioned to the applicable expenditure headings.

Volunteers act as Church and Circuit Stewards and the Chapel also benefits from the time dedicated by its Treasurers, Trustees, Committee members and other helpers. This cost has not been included in the accounts [see note 11b].

The costs of generating funds consist of investment management costs and certain legal fees.
1.7 Support costs

WESLEY’S CHAPEL AND LEYSIAN MISSION

NOTES TO ACCOUNTS (CONTINUED) YEAR ENDED 31 AUGUST 2020

Support costs have been allocated between governance costs and other support costs. Governance costs comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice. These costs include costs related to statutory audit and legal fees together with an apportionment of overhead and support costs. Governance costs and support costs relating to charitable activities have been apportioned based on income. The allocation of support costs is analysed in note 8.

1.8 Irrecoverable VAT

Irrecoverable VAT is charged against the expenditure heading for which it was incurred.

1.9 Fixed asset investments Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year.
1.10 Realised and unrealised gains and losses All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year.

Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.

1.11 Operating leases
Operating leases are recognised over the period of which the lease falls due. Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the period of the lease.
1.12 Cash at bank and in hand Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition, opening of the deposit or similar account.
1.13 Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. Accrued income and tax recoverable is included at the best estimate of the amounts receivable at the balance sheet date.

Stock

1.14 Stock Stock is stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchases on a first in, first out basis.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the Statement of Financial Activities.

1.15 Creditors

Creditors are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are normally recognised at their settlement amount after allowing for any trade discounts due.

1.16 Fund accounting

WESLEY’S CHAPEL AND LEYSIAN MISSION

NOTES TO ACCOUNTS (CONTINUED) YEAR ENDED 31 AUGUST 2020

Unrestricted funds are available to spend on activities that further any of the purposes of the charity. Designated funds are unrestricted funds of the charity which the Trustees have decided at their discretion to set aside to use for a specific purpose. The aim and purpose of each designated fund is set out in the notes to the financial statements. Restricted funds are community and other projects being undertaken by the charity. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each material designated and restricted fund is set out in the notes to the financial statements.

1.17 Taxation

The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

1.18 Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. Fixed assets are recorded at depreciated historical cost and investments are recorded at fair value, being the closing market value rate, with unrealised gains in the SOFA. All other assets and liabilities are recorded at cost which is their fair value.

1.19 Pension costs
The charity contributes a proportion of the standard stipend to the Methodist Ministers Pension Scheme. The pension scheme trustees have advised that it is not possible to currently identify Wesley’s Chapel & Leysian Mission’s share of the underlying assets and liabilities of the scheme. The charity have therefore accounted for the pension scheme as if it was a defined contribution scheme. The total pension expense recognised in the Statement of Financial Activities in 2020 totalled £13,401 (2019: £7,074). At the period end, Nil was included as owed to the scheme (2019: Nil).

An Actuarial Valuation of the Scheme is carried out every three years. The Scheme’s last full actuarial valuation occurred as at 1 September 2017. The valuation results were produced using a set of actuarial assumptions which were agreed by the MMPS Trustee Board, including updated discount rates to current market conditions and pensionable earnings increases of 3.25% pa. The assets of the Scheme had a market value of £469.3m as at 31 August 2017. The valuation results showed a surplus of assets relative to the Scheme’s liabilities for the past service benefits to around £19.6m.

Future contributions will amount 26.9% of Stipends (4.7% to eliminate future shortfalls and 22.2% towards future service benefits). In addition Ministers pay a Members voluntary contribution of 9.3% by deduction from their Stipends. The next valuation is expected to be agreed as at 1 September 2020, with a target date set for November 2021.

1.20 Judgments and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. There are no material judgments or key sources of estimation uncertainty in these financial accounts.

2. Donations & legacies

WESLEY’S CHAPEL AND LEYSIAN MISSION NOTES TO ACCOUNTS (CONTINUED) YEAR ENDED 31 AUGUST 2020

Current year Ministry and Mission Offerings and donations Grants Legacies Heritage Donations Grants Prior year Ministry and Mission Offerings and donations Grants Legacies Heritage Donations Grants 3. Investment income Current year Ministry and Mission Rents Bank interest Dividends Heritage Dividends Prior year Ministry and Mission Rents Bank interest Dividends Lease extension proceeds Heritage Dividends		Permanent Unrestricted Funds Restricted Endowment General Designated Funds Funds £ £ £ £ 94,017 - 10,028 - 8,000 - 19,301 - 23 - - - 6,666 - - - 68,751 - - - 177,457 - 29,329 - Permanent Unrestricted Funds Restricted Endowment General Designated Funds Funds £ £ £ £ 115,901 - 11,403 - 15,000 - 15,296 - 10,313 - - - 12,913 - - - 57,806 - - - 211,933 - 26,699 - Permanent Unrestricted Funds Restricted Endowment General Designated Funds Funds £ £ £ £ 148,045 - - - 639 - 534 - 159,956 9,049 338 1,180 - - 287 - 308,640 9,049 1,159 1,180 Permanent Unrestricted Funds Restricted Endowment General Designated Funds Funds £ £ £ £ 115,211 - - - 482 - 8,664 - 220,275 10,493 5,026 1,195 - - 350,000 - - - 238 - 335,968 10,493 363,928 1,195	2020 £ 104,045 27,301 23 6,666 68,751
			206,786
			2019 £ 127,304 30,296 10,313 12,913 57,806
			238,632
			2020 £ 148,045 1,173 170,523 287
			320,028
			2019 £ 115,211 9,146 236,989 350,000 238
			711,584

4. Charitable activities

WESLEY’S CHAPEL AND LEYSIAN MISSION NOTES TO ACCOUNTS (CONTINUED) YEAR ENDED 31 AUGUST 2020

Current year Ministry and Mission Insurance recovered Heritage Museum and book sales Prior year Ministry and Mission Insurance recovered Heritage Museum and book sales 5. Expenditure on raising funds Current year Donations and legacies Other trading activities Connexional Priority Levy Investment costs Prior year Raising donations and legacies Other trading activities Connexional Priority Levy Investment costs		Permanent Unrestricted Funds Restricted Endowment General Designated Funds Funds £ £ £ £ 14,999 - - - 15,630 - - - 30,629 - - - Permanent Unrestricted Funds Restricted Endowment General Designated Funds Funds £ £ £ £ 15,167 - - - 30,580 - - - 45,747 - - - Permanent Unrestricted Funds Restricted Endowment General Designated Funds Funds £ £ £ £ 240 - - - 9,330 - - - - - 169 - 15,887 9,049 755 1,180 25,457 9,049 924 1,180 Permanent Unrestricted Funds Restricted Endowment General Designated Funds Funds £ £ £ £ 480 - - - 15,180 - - - - - 37,259 - 18,488 9,178 2,001 1,195 34,148 9,178 39,260 1,195	2020 £ 14,999 15,630
			30,629
			2019 £ 15,167 30,580
			45,747
			2020 £ 240 9,330 169 26,871
			36,610
			2019 £ 480 15,180 37,259 30,862
			83,781

6. Expenditure on charitable activities

WESLEY’S CHAPEL AND LEYSIAN MISSION NOTES TO ACCOUNTS (CONTINUED) YEAR ENDED 31 AUGUST 2020

Current year Ministry and Mission Heritage Prior year Ministry and Mission Heritage 7. Analysis of expenditure Current year Ministry and Mission Heritage Prior year Ministry and Mission Heritage 8. Analysis of support costs Current year Staff Related £ Ministry & Mission 126,786 Heritage 24,001 150,787 Prior year Staff Related £ Ministry & 129,874	Permanent Unrestricted Funds Restricted Endowment General Designated Funds Funds £ £ £ £ 485,080 - 72,881 - 146,922 - 70 - 632,002 - 72,951 - Permanent Unrestricted Funds Restricted Endowment General Designated Funds Funds £ £ £ £ 513,892 - 169,756 - 124,625 - 153 - 638,517 - 169,909 - Direct Support Costs Costs £ £ 309,472 275,76 9 112,123 44,199 421,595 319,96 8 Direct Support Costs Costs £ £ 429,486 288,43 3 145,776 28,512 575,262 316,94 5 Consulting Fees £ District Levy £ Governance £ Office, IT & Other £ 3,372 42,284 45,542 57,785 638 - 8,621 10,939	Permanent Unrestricted Funds Restricted Endowment General Designated Funds Funds £ £ £ £ 485,080 - 72,881 - 146,922 - 70 - 632,002 - 72,951 - Permanent Unrestricted Funds Restricted Endowment General Designated Funds Funds £ £ £ £ 513,892 - 169,756 - 124,625 - 153 - 638,517 - 169,909 - Direct Support Costs Costs £ £ 309,472 275,76 9 112,123 44,199 421,595 319,96 8 Direct Support Costs Costs £ £ 429,486 288,43 3 145,776 28,512 575,262 316,94 5 Consulting Fees £ District Levy £ Governance £ Office, IT & Other £ 3,372 42,284 45,542 57,785 638 - 8,621 10,939	Permanent Unrestricted Funds Restricted Endowment General Designated Funds Funds £ £ £ £ 485,080 - 72,881 - 146,922 - 70 - 632,002 - 72,951 - Permanent Unrestricted Funds Restricted Endowment General Designated Funds Funds £ £ £ £ 513,892 - 169,756 - 124,625 - 153 - 638,517 - 169,909 - Direct Support Costs Costs £ £ 309,472 275,76 9 112,123 44,199 421,595 319,96 8 Direct Support Costs Costs £ £ 429,486 288,43 3 145,776 28,512 575,262 316,94 5 Consulting Fees £ District Levy £ Governance £ Office, IT & Other £ 3,372 42,284 45,542 57,785 638 - 8,621 10,939	Permanent Unrestricted Funds Restricted Endowment General Designated Funds Funds £ £ £ £ 485,080 - 72,881 - 146,922 - 70 - 632,002 - 72,951 - Permanent Unrestricted Funds Restricted Endowment General Designated Funds Funds £ £ £ £ 513,892 - 169,756 - 124,625 - 153 - 638,517 - 169,909 - Direct Support Costs Costs £ £ 309,472 275,76 9 112,123 44,199 421,595 319,96 8 Direct Support Costs Costs £ £ 429,486 288,43 3 145,776 28,512 575,262 316,94 5 Consulting Fees £ District Levy £ Governance £ Office, IT & Other £ 3,372 42,284 45,542 57,785 638 - 8,621 10,939	2020 £ 557,961 146,992 704,953 2019 £ 683,648 124,778 808,426 2020 £ 585,24 1 155,32 2 741,56 3




					2019 £ 717,91 9 174,28 8 892,20 7
					2020 £ 275,769 44,199
150,787	4,010	42,284	54,163	68,724	319,968
Staff Related £ 129,874	Consulting Fees £ 12,621	26 District Levy £ 39,746	Governance £ 46,713	Office, IT & Other £ 59,479	2019 £ 288,433

WESLEY’S CHAPEL AND LEYSIAN MISSION NOTES TO ACCOUNTS (CONTINUED) YEAR ENDED 31 AUGUST 2020

Mission Heritage	14,890 1,447 - 5,356 6,819 28,512
	144,764 14,068 39,746 52,068 66,298 316,945

9. Grants payable

Grant making activities in total are not material in the context of the Charity’s overall charitable activities.

10. Net movement in funds for the year

10. Net movement in funds for the year
The net movement in funds for the year is stated after charging: Auditors’ remuneration - audit work 11. (a) Staff costs and emoluments Salaries Minister stipends Social security costs Pension costs Training & recruitment costs The average weekly number of staff employed by the Charity during the year was as follows: Ministerial and administrative Establishment	2020 £ 6,800 2020 £ 239,088 70,499 20,447 13,626 719 344,379 2020 Number 11 2	2019 £ 6,553
		2019 £ 220,057 37,840 19,907 13,045 941
		291,790
		2019 Number 10 2

The charity considers its key management personnel comprise the Trustees and the ministers. The ministers are employed by the Connexion. Their stipend and pension costs are paid direct to the London District of the Methodist Church.

The total employment benefits including employer pension contributions of the key management personnel were £70,499 – 2 persons (2019: £31,840 – 1 person). No employees had employee benefits in excess of £60,000 (2019: none).

The charity contributed £13,401 during the year (2019: £7,074), representing 26.9% (2019: 26.9%) of the standard stipend as pension contributions for its ministers. This is paid to the London District of the Methodist Church for the Methodist Ministers’ Pension Scheme, which is

WESLEY’S CHAPEL AND LEYSIAN MISSION

NOTES TO ACCOUNTS (CONTINUED) YEAR ENDED 31 AUGUST 2020

a final salary defined benefit scheme ( Note 1.19 ). The Ministers occupy housing owned by the Charity.

In addition, the charity offers lay staff the opportunity to contribute to a stakeholder pension scheme and the Charity matches any employee contribution up to a maximum of 7%. The charity contributed £13,626 during 2020 (2019: £5,971) to the stakeholder pension scheme.

11. (b) Volunteers

It has not been possible to calculate the number of hours contributed by volunteers, but they are estimated to be at least 1,500 hours during the year (2019: 3,000), a significant decrease due to the impacts of COVID. If valued at the London Living Wage of £10.75 per hour, in line with policy, this would amount to a gift of £16,125 (2019: £31,650).

In addition, there are currently 51 volunteers who act as Heritage Stewards and work part time at the Chapel, covering John Wesley’s House and The Museum of Methodism and the visitor services aspect of the Chapel’s mission. There are normally three volunteers on duty Monday to Saturday, working from 10 a.m. to 4 p.m. On that basis, and taking into account the closure period during the year due to the COVID pandemic, the total hours estimated to have been worked in the current year is 2,916 (2019: 5,744). If valued at the London Living Wage of £10.75 per hour, this would amount to a gift of £31,347 (2019: £65,080).

Neither of these gifts has been included in the statutory accounts.

12.

Tangible assets Cost At 1 September 2019 Additions At 31 August 2020 Depreciation At 1 September 2019 Charge for the year At 31 August 2020 Net book value At 31 August 2020 At 31 August 2019	Furniture & Fittings Freehold Property Total £ £ £ 390,928 1,425,000 1,815,928 3,937 - 3,937 394,865 1,425,000 1,819,865 316,175 - 316,175 39,362 5,800 45,162 355,537 5,800 361,337 39,328 1,419,200 1,458,528 74,752 1,425,000 1,499,752

(a) Organ

WESLEY’S CHAPEL AND LEYSIAN MISSION

NOTES TO ACCOUNTS (CONTINUED) YEAR ENDED 31 AUGUST 2020

The organ is an integral part of the Chapel Building and has been treated in the same way as the Chapel and shown at insurance value, but fully depreciated.

12. Tangible assets (continued)

(b) Heritage assets

Although it is known that the Chapel cost £7,000 to build in 1778, the cost of subsequent additions and improvements to the campus buildings is not ascertainable. The original cost of these assets have previously been written off completely and, while they continue to be used for the purposes of the Charity, are not realisable, therefore the Trustees have decided to continue to show them as fully depreciated.

Any valuation of buildings such as those on the 49 City Road campus is bound to be arbitrary and the Trustees believe that the costs to continually update the market value of the heritage asset would be onerous compared with the additional benefits derived by the Chapel and the users of the accounts. The Trustees have therefore decided that the most sensible figures to show as an estimate for the value of these assets for information purposes is the estimated rebuilding or reinstatement costs for which they are insured as follows:

	2020	2019
	£	£
Buildings and fixtures (including organ)	16,174,169
		14,957,217
Glass	884,041	815,518

These figures, representing an increase based on the prior year, are based on the most recent survey undertaken in 2019. The Trustees regularly undertake a Quinquennial survey of the property and assets which identifies the required maintenance requirements in order to be able to manage and plan the continual upkeep of these assets and to ensure they are insured at their rebuild costs. This also allows for the Chapel to plan and fundraise for any significant refurbishments that may be required and to effectively maintain the assets at their required condition.

The heritage assets are deemed inalienable as they are not able to be disposed of by the Chapel. The remaining artefacts are also maintained and their upkeep planned and scheduled. The Museum exhibits part of the collection of artefacts and they are accessible to the majority of users through education work, research into Methodism and displays in the Museum.

Researchers have access by appointment to items held in storage subject to the access and privacy policy of the Museum. The archive and storage area are maintained in the appropriate condition for the artefacts and in a secure environment. The Museum also occasionally receives items on loan, subject to the Museum's loans policy.

(c) Freehold property

Freehold property at Linton Street, an offsite manse, was purchased on 2 August 2019 for £1,425,000. Furthermore, the property was valued by Sanderson Weatherall in a report dated 18 July 2019, with a replacement building cost determined of £290,000. The Trustees have deemed this to be the cost of the building at the date of the purchase, excluding any land cost, and are depreciating this cost over 50 years in line with the accounting policy.

WESLEY’S CHAPEL AND LEYSIAN MISSION NOTES TO ACCOUNTS (CONTINUED) YEAR ENDED 31 AUGUST 2020

The property is recorded at historical cost less depreciation.

13. Investment properties

Valuation At 1 September 2019 Flat, 17 Farriers House Trinity House (formerly Noble House), Tabernacle Street Fair value movements At 31 August 2020 At end of the year At 31 August 2020 At 31 August 2019	Land and Freehold £ - 2,200,000 360,701 2,560,701 2,560,701 2,200,000	Buildings Leasehold £ 600,000 - - 600,000 600,000 600,000	Total £ 600,000 2,200,000 360,701
			3,160,701
			3,160,701
			2,800,000

(a) There is another building on the campus at 49 City Road that is not used for Church purposes. This is the office building at the rear of the graveyard, currently known as Trinity House. The Charity owns the freehold and in 1982 the site was let on a lease for a period of 125 years. In 2017 the terms of the lease were renegotiated, and the term extended to 155 years from completion to 2172. As part of the agreement, a lease extension premium was received by the charity of £925,000. The Methodist Connexion withheld £350,000 of the proceeds received by the Charity in accordance with Methodist Church Standing Orders, calculated as to £100,000 at 20% and £825,000 at 40%. 100% of this levy was recovered in the previous year contributing to the purchase of the new offsite manse at Linton St.

Under the terms of the lease, ground rent of £17,500 per annum or 9% of the passing rent, whichever is the greater, is received by the Charity.

The freehold interest in the property was subsequently revalued in March 2021 by Boultbee LDN Limited, who despite being the leaseholders are responsible for the recent renovation and have used separate in-house expertise to undertake the valuation. Their valuation of £2,560,701 is considered by the Trustees to represent the best current estimate of the current market value.

Leasehold property at 17 Farriers House, a flat which is let commercially, is currently valued at £600,000 (2019: £600,000). This represents the Trustees’ best estimate of the market value, on a conservative basis, given the most recent sales in the building, the condition of the flat and advice received from the letting agents, Cluttons LLP.

The Trustees consider that these two properties held should be treated as investment assets and the provisions of Section 16 of FRS102 apply.

WESLEY’S CHAPEL AND LEYSIAN MISSION NOTES TO ACCOUNTS (CONTINUED) YEAR ENDED 31 AUGUST 2020

14. Fixed asset investments

a) PERMANENT ENDOWMENT

Trust name Units Fund Mrs M A Grayson Bequest (11211) 13,806 CFB UK Equity Fund 52,755 CFB Property Investment 17,563 CFB Corporate Bond Sir J Lowry's Memorial 665 CFB Managed Mixed Fund Andrus Trust_(i) - CFB Managed Mixed Fund Engleburtt Trust(i)_ - CFB Managed Mixed Fund Other bequests (564) 8,324 CFB UK Equity Fund 10,461 CFB Corporate Bond 31,824 CFB Property Investment Gabriel, Grosvenor & Cooper Trust (Youth Council) 1,901 CFB Managed Mixed Fund	Market Value 2020 2019 £ £ 249,737 268,583 36,454 38,459 26,151 33,651 3,148 3,205 - 14,438 - 386 150,573 161,669 15,576 20,256 21,991 23,200 8,999 9,161
	512,629 573,008

Trust name
Units
Fund
Mrs M A Grayson Bequest (11211)
13,806
CFB UK Equity Fund
52,755
CFB Property Investment
17,563
CFB Corporate Bond
Sir J Lowry's Memorial
665
CFB Managed Mixed Fund
Andrus Trust_(i)
-
CFB Managed Mixed Fund
Engleburtt Trust(i)_
-
CFB Managed Mixed Fund
Other bequests (564)
8,324
CFB UK Equity Fund
10,461
CFB Corporate Bond
31,824
CFB Property Investment
Gabriel, Grosvenor & Cooper Trust
(Youth Council)
1,901
CFB Managed Mixed Fund

Market Value
2020
2019
£
£
249,737
268,583
36,454
38,459
26,151
33,651
3,148
3,205
-
14,438
-
386
150,573
161,669
15,576
20,256
21,991
23,200
8,999
9,161

512,629
573,008

i. Both Andrus Trust & Engleburtt Trust assets were sold during the period to be used for upkeep of the chapel. This is in line with the terms of the endowment and approved by the Trustees in September 2019.

b) RESTRICTED FUNDS

Wesley Chapel Crypt & Museum (Gibbs Fund) 5,655 CFB UK Equity Fund 7,104 CFB Corporate Bond 22,367 CFB Property Investment Robert Davies Bequest 1,393 CFB Managed Mixed Fund Local Youth Club 7,340 CFB Managed Mixed Fund Resthaven Trust 7,260 CFB UK Equity Fund 9,127 CFB Corporate Bond 27,792 CFB Property Investment c) DESIGNATED FUNDS Sale Proceeds - Property Endowment 37,802 CFB UK Equity Fund 47,610 CFB Corporate Bond 144,125 CFB Property Investment Leysian Mission Fund (15005A) 118,318 CFB UK Equity Fund 149,888 CFB Corporate Bond 451,467 CFB Property Investment Museum of Methodism Fund 17,446 CFB UK Equity Fund 21,978 CFB Corporate Bond 67,210 CFB Property Investment Beatrice Cannon 4,289 CFB UK Equity Fund 5,363 CFB Corporate Bond	102,293 109,798 10,578 13,299 15,455 16,305 6,594 6,713 34,748 35,371 131,326 141,069 13,590 17,681 19,205 20,261
	333,789 360,497
	683,800 734,575 70,891 92,330 99,591 105,067 2,140,254 2,302,462 223,183 289,418 311,964 329,119 315,581 339,076 32,725 41,988 46,442 48,996 77,584 83,327 7,986 10,472

Wesley Chapel Crypt & Museum (Gibbs
Fund)
5,655
CFB UK Equity Fund
7,104
CFB Corporate Bond
22,367
CFB Property Investment
Robert Davies Bequest
1,393
CFB Managed Mixed Fund
Local Youth Club
7,340
CFB Managed Mixed Fund
Resthaven Trust
7,260
CFB UK Equity Fund
9,127
CFB Corporate Bond
27,792
CFB Property Investment
c) DESIGNATED FUNDS
Sale Proceeds - Property Endowment
37,802
CFB UK Equity Fund
47,610
CFB Corporate Bond
144,125
CFB Property Investment
Leysian Mission Fund (15005A)
118,318
CFB UK Equity Fund
149,888
CFB Corporate Bond
451,467
CFB Property Investment
Museum of Methodism Fund
17,446
CFB UK Equity Fund
21,978
CFB Corporate Bond
67,210
CFB Property Investment
Beatrice Cannon
4,289
CFB UK Equity Fund
5,363
CFB Corporate Bond

102,293
109,798
10,578
13,299
15,455
16,305
6,594
6,713
34,748
35,371
131,326
141,069
13,590
17,681
19,205
20,261

333,789
360,497

683,800
734,575
70,891
92,330
99,591
105,067
2,140,254
2,302,462
223,183
289,418
311,964
329,119
315,581
339,076
32,725
41,988
46,442
48,996
77,584
83,327
7,986
10,472

WESLEY’S CHAPEL AND LEYSIAN MISSION NOTES TO ACCOUNTS (CONTINUED) YEAR ENDED 31 AUGUST 2020

16,408 CFB Property Investment	11,338 11,961
	4,021,339 4,388,791

WESLEY’S CHAPEL AND LEYSIAN MISSION

NOTES TO ACCOUNTS (CONTINUED) YEAR ENDED 31 AUGUST 2020

14. Fixed asset investments (continued)

d) GENERAL FUNDS Trust name Units Fund Various Bequests (13777) 75,323 CFB Property Investment 19,806 CFB UK Equity Fund 29,596 CFB Corporate Bond Jean Rosina White 8,991 CFB Managed Mixed Fund Local Mission Fund 3,953 CFB UK Equity Fund 4,973 CFB Corporate Bond 15,147 CFB Property Investment	Market Value 2020 £ 2019 £ 52,048 17,526 358,271 388,083 44,068 60,193 42,563 43,328 71,506 76,900 7,405 9,595 10,467 11,042
	586,328 606,667
	5,454,085 5,928,963

Total investments

The value of the investments fell significantly during the year. The reduction in value can be attributed to the economic effects of COVID-19.

15. Analysis of movement in fixed asset investments

Carrying value (market value) at beginning of year Total additions to investment at cost Total disposal proceeds Net loss on revaluation Carrying value (market value) at end of year 16. Debtors Prepayments and sundry debtors Legacy gifts receivable 17. Stock This has been valued at the lower of cost and net realisable value Museum shop stock		2020 £ 5,928,963 402,018 (293,576) (583,320) 5,454,085 2020 £ 44,260 - 44,260 2020 £ 13,745		2019 £ 6,219,209 955,869 (742,354) (76,730)
				5,928,963
				2019 £ 70,562 10,313
				80,875
				2019 £ 14,128

WESLEY’S CHAPEL AND LEYSIAN MISSION NOTES TO ACCOUNTS (CONTINUED) YEAR ENDED 31 AUGUST 2020

18. Creditors

Amounts falling due within one year: Trade creditors Accruals & income in advance Rental guarantee deposit held (a) Other creditors	2020 £ 35,253 17,308 - 1,958 54,519	2019 £ 9,313 17,930 100,000 4,496
		131,669

a) The £100,000 rental guarantee deposit was received during the 2017 financial year from Boultbee LDN (Tabernacle Street) Ltd, the tenant of the Charity’s investment property, Trinity House. The guarantee deposit was held as security against the lease. During the current year, Boultbee requested the deposit to be returned. It was agreed that the Chapel would return £42,000 of deposit and retain £58,000 in respect of the outstanding rent due.

19. Unrestricted General Fund (a) Capital account Balance at 1 September 2019 Add/(Deduct): Ministry & Mission deficit Heritage deficit (Loss)/gain on revaluation of investments Gain on revaluation of fixed assets Funds reclassification Transfer to replenish funds Balance at 31 August 2020 Capital account Jean White fund	2020 £ 5,128,79 0 (59,387) (64,988) (59,157) 360,701 (21,731) - 5,284,22 8 5,284,22 8 42,566 5,326,79 4	2019 £ 4,432,64 3 (4,744) (72,751) 40,434 - 746,926 (13,718)
		5,128,79 0
		5,128,79 0 43,330
		5,172,12 0

The Jean White fund is an unrestricted fund received by the charity from the Estate of Jean White, which has been invested. The dividends are used by the charity for charitable activities. The movement during the year represents the movement in the value of the investment at balance sheet date.

WESLEY’S CHAPEL AND LEYSIAN MISSION NOTES TO ACCOUNTS (CONTINUED) YEAR ENDED 31 AUGUST 2020

20. Statement of Funds Trust Name: Tst No: Unrestricted - Designated Property Proceeds 15005 Leysian Mission 15005A House & Museum 15005B Beatrice Cannon 20026 Total Unrestricted-Designated	At 31 Aug 2019 £ 960,761 3,011,296 443,401 108,987 4,524,445	Gain/(Loss) in At 31 Aug Income Expenditure Valuation Transfers 2020 £ £ £ £ £ 1,922 (1,922) (92,698) - 868,063 6,022 (6,022) (290,626) - 2,720,670 887 (887) (42,737) - 400,664 218 (218) (10,524) - 98,463 9,049 (9,049) (436,585) - 4,087,860	Gain/(Loss) in At 31 Aug Income Expenditure Valuation Transfers 2020 £ £ £ £ £ 1,922 (1,922) (92,698) - 868,063 6,022 (6,022) (290,626) - 2,720,670 887 (887) (42,737) - 400,664 218 (218) (10,524) - 98,463 9,049 (9,049) (436,585) - 4,087,860
			4,087,860

The Property Proceeds Fund, Leysian Mission Fund and House & Museum Fund were established with the proceeds from the sale of the previous site held by the Leysian Mission at 112 City Road. These funds are to be used at the discretion of the Trustees for upkeep and improvements to the property at 49 City Road, including the Chapel & Museum and also to continue the work of the Leysian Missioner’s. The capital has been invested with TMCP and the income has been used during the current year to fund repairs and maintenance of the Charity site and deliver programmes in line with Leysian Mission values.
The Beatrice Cannon Fund was established in respect of a share of her residue estate to be utilised for any purpose of the local Church.

Permanent Endowment

Mrs M A Grayson 11211 Other combined bequests 564 Other trust funds Total Permanent Endowment	351,270 211,458 27,191 589,919	703 423 54 1,180	(703) (423) (54) (1,180)	(33,875) (20,397) (92) (54,364)	- - (14,955) (14,955)	317,395 191,061 12,144
						520,600

The permanent endowment funds are invested by TMCP. The capital cannot be spent, however the income is available to assist the Charity carry out its mission and for local purposes as defined in the Methodist Church Act 1976.

Restricted Funds

Circuit Advance Fund 18787 Gibbs Fund 18281 Resthaven Kinnear Education Fund Junior Church/Youth Develop Organ Fund Global Mission Fellow Fund Other Funds Total Restricted Funds	6,779 129,776 186,250 63,001 63,943 - - 50,597 500,346	473 287 369 1,313 25 4,000 19,301 4,720 30,488	(183) (809) (1,039) (2,197) (71) (48,690) (19,301) (1,585) (73,875)	- (13,887) (17,820) - (624) - - (118) (32,449)	(7,067) (3,937) - - - 44,690 - 3,000 36,686	2 111,430 167,760 62,117 63,273 - - 56,614
						461,196

The Circuit Advance Fund relates to sale proceeds from Circuit assets, majority of which is to be spent in line with standing orders. Funds were transferred during the year for the restoration of the organ.
The Kinnear Education Fund was setup to support full bursaries to the Leys School, support students whilst at the school, and to support students in higher education who are connected to the Chapel.
The Gibbs Fund was created by the donation from the Gibbs Trust to be spent on the House & Museum. Funds were transferred during the year for a new Museum display case.
The Organ Fund was established to contribute to the planned restoration and works required for the Chapel’s organ. Works were completed during the reporting period.
Global Mission Fellow Fund is used to pay the stipend and living expenses of the Global Mission Fellow, undertaking works for the Charity. This role and project has been finalised during the financial year.

WESLEY’S CHAPEL AND LEYSIAN MISSION

NOTES TO ACCOUNTS (CONTINUED) YEAR ENDED 31 AUGUST 2020

General Funds Total Funds Statement of Funds (continued) Trust Name: Tst No: Unrestricted - Designated Property Proceed 15005 Leysian Mission 15005A House & Museum 15005B Beatrice Cannon 20026 Total Unrestricted-Designated	5,172,120 10,786,830 At 31 Aug 2018 £ 976,083 3,052,708 449,667 110,573 4,589,031	533,084 (657,459) 573,801 (741,563) Income Expenditure £ £ 3,268 (1,953) 6,105 (6,105) 899 (899) 221 (221) 10,493 (9,178)	300,780 (21,731) 5,326,794 (222,618) - 10,396,450 Gain/ (Loss) in At 31 Aug Valuation Transfers 2019 £ £ £ (16,637) - 960,761 (41,412) - 3,011,296 (6,266) - 443,401 (1,586) - 108,987 (65,901) - 4,524,445	300,780 (21,731) 5,326,794 (222,618) - 10,396,450 Gain/ (Loss) in At 31 Aug Valuation Transfers 2019 £ £ £ (16,637) - 960,761 (41,412) - 3,011,296 (6,266) - 443,401 (1,586) - 108,987 (65,901) - 4,524,445
				4,524,445

The Property Proceeds Fund, Leysian Mission Fund and House & Museum Fund were established with the proceeds from the sale of the previous site held by the Leysian Mission at 112 City Road. These funds are to be used at the discretion of the Trustees for upkeep and improvements to the property at 49 City Road, including the Chapel & Museum and also to continue the work of the Leysian Missioners. The capital has been invested with TMCP and the income has been used during the current year to fund repairs and maintenance of the Charity site and deliver programmes in line with Leysian Mission values.
The Beatrice Cannon Fund was established in 2003 in respect of the gift of a share of her residue estate to be utilised any purpose of the local Church.

Permanent Endowment Mrs M A Grayson 11211 Other combined bequests 564 Other trust funds Total Permanent Endowment	356,244 214,455 26,859 597,558	712 429 54 1,195	(712) (429) (54) (1,195)	(4,974) (2,997) 332 (7,639)	- - - -	351,270 211,458 27,191
						589,919

The permanent endowment funds are invested by TMCP. The capital cannot be spent, however the income is available to assist the Charity carry out its mission and for local purposes as defined in the Methodist Church Act 1976.

Restricted Funds Circuit Advance Fund 18787 Gibbs Fund 18281 Resthaven Kinnear Education Fund Junior Church/Youth Develop Organ Fund Global Mission Fellow Fund Other Funds Total Restricted Funds	555,694 147,014 188,539 53,565 63,834 9,210 - 78,395 1,096,251	363,041 238 573 1,250 34 7,200 15,296 2,995 390,627	(126,508) (2,275) (374) (1,814) (358) (60,192) (16,837) (811) (209,169)	(40,185) (1,997) (2,488) - 433 - - 82 (44,155)	(745,263 ) (13,204) - 10,000 - 43,782 1,541 (30,064) (733,208 )	6,779 129,776 186,250 63,001 63,943 - - 50,597
						500,346

The Circuit Advance Fund relates to sale proceeds from Circuit assets, majority of which is to be spent in line with standing orders.
- The Kinnear Education Fund was setup to support full bursaries to the Leys School, support students whilst at the school and to support students in higher education who were connected to the Chapel. Any balance of the fund is used to support the remaining Wesley Scholars pastorally whilst they attend the Ley’s School.
The Gibbs Fund was created by the donation from the Gibbs Trust to be spent on the House & Museum.
The Organ Fund was established to contribute to the planned restoration and works required for the Chapel’s organ.

WESLEY’S CHAPEL AND LEYSIAN MISSION

NOTES TO ACCOUNTS (CONTINUED) YEAR ENDED 31 AUGUST 2020

Global Mission Fellow Fund is used to pay the stipend and living expenses of the Global Mission Fellow, undertaking works for the Charity. This role and project is ongoing and further funds will be received in the next financial year to cover the deficit.

General Funds Total Funds 21. Analysis of net assets Current year Tangible fixed assets Investment properties Investments Current assets Current liabilities Total net assets Prior year Tangible fixed assets Investment properties Investments Current assets Current liabilities Total net assets	4,475,442 10,758,282 Endowment Funds £ - - 512,629 7,971 - 520,600 Endowment Funds £ - - 573,005 16,914 - 589,919	4,475,442 10,758,282 Endowment Funds £ - - 512,629 7,971 - 520,600 Endowment Funds £ - - 573,005 16,914 - 589,919	595,170 (672,665) 40,965 733,208 997,485 (892,207) (76,730) - Restricted Designated General Funds Funds Funds £ £ £ - - 1,458,52 8 - 333,789 - 4,021,339 3,160,70 1 586,328 127,407 66,521 175,756 - - (54,519) 461,196 4,087,860 5,326,79 4 Restricted Designated General Funds Funds Funds £ £ £ - - 1,499,752 - 360,498 - 4,388,793 2,800,000 606,667 139,848 135,652 397,370 - - (131,669) 500,346 4,524,445 5,172,120	733,208	5,172,120 10,786,830 2020 Total £ 1,458,528 3,160,701 5,454,085 377,655 (54,519) 10,396,450 2019 Total £ 1,499,752 2,800,000 5,928,963 689,784 (131,669) 10,786,830
				-

		589,919

22. Operating leases

Operating leases - lessee

As at 31 August 2020 the charity was committed under non-cancellable operating leases to make the following annual minimum payments (at present value):

	2020	2019
	£	£
Printing Equipment
Less than 1 year	8,364	15,346
2 to 5 years	25,092	31,282
Greater than 5 years	-	-

The operating lease is in respect of printing equipment taken out with Siemens Financial Services for a new period of 5 years. Total lease payments expensed during the year was £8,364 (2019: £6,844).

Operating leases – lessor

As at 31 August 2020 the charity had agreed commitments as a lessor under non-cancellable operating leases to receive the following minimum receipts:

2020	2019
£	£

WESLEY’S CHAPEL AND LEYSIAN MISSION NOTES TO ACCOUNTS (CONTINUED) YEAR ENDED 31 AUGUST 2020

Investment properties
Less than 1 year	17,500	17,500
2 to 5 years	70,000	70,000
Greater than 5 years	2,572,500	2,590,000

The above lease is for the Trinity House investment property behind the Chapel where the freehold is held by the Trustees for Methodist Church Purposes as custodian Trustees. The minimum base rent is £17,500 per annum. The lease was extended during the 2017 financial year to 155 years.

23. Related party transactions

The Charity considers its key management personnel comprise the Trustees and the ministers. No Trustee received any remuneration of benefits in their capacity as Trustee during the year. The Ministers are Managing Trustees of the Circuit. In this capacity they are related persons receiving benefit. Their total employment benefits including employer pension contributions was £70,499 (2019: £35,059). This is paid direct to the London District of the Methodist Church as the ministers are employed by the Connexion.

The Charity contributed £13,401 during the year (2019: £7,074), representing 26.9% (2019: 26.9%) of the standard stipend as pension contributions for its ministers. This is paid to the London District of the Methodist Church for the Methodist Ministers’ Pension Scheme, which is a final salary defined benefit scheme. The Ministers occupy housing owned by the Charity.

In addition, three Trustees were reimbursed for travel, entertainment and other out of pocket charity expenses amounting to £4,124 (2019: 3, £6,199).

WESLEY’S CHAPEL AND LEYSIAN MISSION NOTES TO ACCOUNTS (CONTINUED) YEAR ENDED 31 AUGUST 2020

FOR TRUSTEES’ INFORMATION ONLY

WESLEY’S CHAPEL AND LEYSIAN MISSION SUMMARY OF INCOME & EXPENDITURE (GENERAL) FOR THE YEAR ENDED 31 AUGUST 2020

	2020	2019
	£	£
Income
Dividends & Distributions	159,956	220,275
Donations & Giving	94,026	115,901
Grant Income	76,751	72,806
InsuranceRecovered	14,999	15,167
Interest Income	639	482
Museum Net Income	12,957	28,314
Rent Received	120,900	79,869
Room HireIncome	27,145	35,342
Total Income	507,373	568,156
Operating Costs
Advertising &Marketing	271	892
Assets <£1,000	3,057	2,551
Audit & Accountancy Fees	9,206	8,376
Bank Fees	2,024	1,870
Benevolence & CommunityWork	8,367	21,329
Church Supplies & Activities	2,364	3,138
Consulting Fees	4,010	14,068
District & Apprenticeship Levies	43,750	41,237
Hospitality & Catering	3,420	8,179
Insurance	44,957	43,692
Investment & Property Management Fees	15,887	18,488
IT & Software Costs	10,471	5,008
Learning &Development	2,466	7,111
Legal Expenses	-	7,773
Museum Supplies	398	959
Printing, Postage & Stationery	13,987	13,110
Rates & Council Tax	13,240	8,719
Recital Costs	240	480
Repairs, Maintenance & Cleaning	39,306	54,089
Security & Fire	11,020	9,939
Staff Recruitment	719	941
Subscriptions & Licences	3,393	2,652
Travel & Accommodation	956	1,731
Utilities	25,798	28,225
Wages & Stipends	343,661	290,849
Total Operating Costs	602,968	595,406
Operating Deficit	(95,595)	(27,250)
Non-operating Income
LegaciesReceived	23	10,313
Sundry Income	16,359	1,522
Total Non-operating Income	16,382	11,835
Non-operating Expenses
Depreciation & Amortisation Expense	(45,162)	(62,080)
Total Non-operating Expenses	(45,162)	(62,080)
Net Deficit	(124,375)	(77,495)

This page does not form part of the statutory information on which the auditors have reported