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2020-12-31-accounts

Company number: 6942084 Charity Number: 1141797

London Quakers Property Trust

Report and financial statements For the year ended 31 December 2020

London Quakers Property Trust

Contents

For the year ended 31 December 2020

Reference and administrative information .......................................................................................................... 1 Trustees’ annual report ....................................................................................................................................... 3 Independent auditor’s report ............................................................................................................................ 18 Statement of financial activities (incorporating an income and expenditure account) ..................................... 22 Balance sheet .................................................................................................................................................. 23 Statement of cash flows.................................................................................................................................... 24 Notes to the financial statements .................................................................................................................... 25

London Quakers Property Trust

Reference and administrative information

For the year ended 31 December 2020

Company number 6942084 Country of incorporation United Kingdom Charity number 1141797 Country of registration (England & Wales, Scotland or Northern Ireland) Registered office and operational address Friends House Euston Road London NW1 2BJ

Trustees Trustees, who are also directors under company law, who served during the year and up to the date of this report were as follows:

Mary Bernadette O'Shea - Clerk Linda Craig from January 2020 Michael Charles from January 2020 Randal Barker Jenny Moy Jonathan Pettigrew from March 2020 Thomas Rowlands - Assistant Clerk Peter Daniels Christine Downes-Grainger Roger Estop to December 2020 Richard Shepherd to March 2020 David Robson Richard Martin - Treasurer Denise James-Mason from January 2021 Kathryn McVey to September 2020 Sarah Totterdell Clon Ulrick to December 2020 Mark Frankel to December 2020 Oliver Griffiths from January 2021 John Smith from March 2021 Susan Balmer from February 2021 Manager John Dash Finance Officer Shamini Perinparaj Project Manager Kathleen Russell

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London Quakers Property Trust

Reference and administrative information

For the year ended 31 December 2020

Bankers

CAF Bank Limited Virgin Money Kings Hill Jubilee House West Malling Gosforth Kent Newcastle upon Tyne ME19 4TA NE3 4PL Triodos Bank Charity Bank Deanery Road 182 High Street Bristol Tonbridge BS1 SAS TN9 1BE Shawbrook Bank Lutea House, Warley Hill Business Park, The Drive, Great Warley, Brentwood CM13 3BE Solicitors Russell-Cooke LLP 2 Putney Hill Putney London SW15 6AB Investment Managers Rathbone Greenbank Investments 10 Queen Square Bristol BS1 4NT Auditor Sayer Vincent LLP Chartered Accountants and Statutory Auditor Invicta House 108-114 Golden Lane LONDON EC1Y 0TL

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London Quakers Property Trust

Trustees’ annual report

For the year ended 31 December 2020

The trustees present their report and the audited financial statements for the year ended 31 December 2020.

Reference and administrative information set out on page 1 forms part of this report. The financial statements comply with current statutory requirements, the memorandum and articles of association, the requirements of a directors’ report as required under company law, and the Statement of Recommended Practice - Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS 102.

Clerk’s statement

As I reflect back on 2020, I am aware that we started the year with some ambitious targets: we hoped to begin to implement our agreed strategy of ‘few and better Meeting Houses’; we were looking forward to expanding our staff team and we had plans to launch a new website for our members. But all of that was before we had to contend with the significant impact of the Covid-19 pandemic. 2020 has been a challenging year.

But undoubtedly it would have been much harder without the benefit of four key features in our arrangements: first, healthy finances with good reserves so we could be cushioned against the significant loss of income; secondly, the adaptability of our staff, willing and able to work from their homes; thirdly, the steady work of local volunteers managing our buildings and preparing necessary risk assessments to deal with closures and re-opening over the course of the year. And finally, the steady and sure way that trustees maintained governance ‘business as usual’ using the benefits of on-line communications. Some of our plans have slipped into 2021 but overall, we have maintained a steady course.

Alongside the sadness and stress of the pandemic there were also some unexpected benefits, most notably the improvements in how we communicate with our members and volunteers. Pushed, through the need to communicate more quickly and professionally, we have increased our contact points and that is helping Trustees stay more connected to the needs of our volunteers, users and members. We hope that this will carry on into the future.

On a positive note, 2020 was the year that our long-awaited new meeting house at Hammersmith was completed. This project took over ten years to complete as the various local authority schemes fell by the wayside, but I hope that friends in Hammersmith, and across London, will agree that the wait has been worthwhile for we are blessed with the most wonderful eco church building. It is a ‘state of the art’ construction and design. It delivers a beautiful building but also a building fit for the 21st century with a zero carbon footprint. We hope it stands as a testament to our commitment to sustainability. Needless to say, this could only happen with the ongoing support and patience of Hammersmith friends, the contribution of Trustees and Area Meeting nominees to the project group, and the professional team including our own staff and Satellite architects. We are most grateful for all your service over the many years. This meeting house will now stand as the model for other church and community buildings for many years to come.

Finally let me end with my thanks to all the trustees who served over 2020. We ask a great deal in terms of your time and your commitment to the furtherance of our mission; I hope all friends across London will continue to uphold us in this work.

Bernadette O’Shea Clerk

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London Quakers Property Trust

Trustees’ annual report

For the year ended 31 December 2020

Objectives and activities

Purposes and aims

London Quakers Property Trust’s (LQPT) prime objective is to advance the religious purposes of the Religious Society of Friends (Quakers) in Britain. To achieve this, its main activity is to maintain, repair, preserve and insure the Quaker Meeting Houses, and other properties within the London area and to help pay for rented accommodation where appropriate.

The Trustees’ stated vision for London Quakers Property Trust is:

of working supportively with the London Quaker community to create a network of welcoming, well maintained sustainable and appropriate community buildings that lift the spirits.

Some will be beautiful and exciting as buildings; the historic Meeting Houses will root us in our past; some will be simple and ordinary; some will be rented rooms, but all will be friendly and welcoming.

We will achieve this by working constructively and joyfully together with members, attenders, Local and Area Meetings, releasing creativity and reducing the burden of maintenance, and our impact on the environment. Our buildings and structures will, we hope, empower us rather than burden us all, and help us to increase our spiritual reach across all of London's communities. In William Penn’s words, we seek “spiritual utility” so that we embody a glorious future for us and a new generation of Friends.

The prime objective is carried out through a system of pooled funds. LQPT receives all the rents and other income generated by the properties, and its investments, and pays the expenses of maintaining and operating the properties. All these funds and expenses are pooled into the General Fund, supplemented with an annual Quota levied on each Area Meeting according to its numerical membership. Quarterly financial returns are all sent directly from each Meeting House to LQPT with Area Meetings managing the Quota payments.

The trustees review the aims, objectives and activities of the charity each year. This report looks at what the charity has achieved and the outcomes of its work in the reporting period. The trustees report the success of each key activity and the benefits the charity has brought to those groups of people that it is set up to help. The review also helps the trustees ensure the charity's aims, objectives and activities remained focused on its stated purposes.

The trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives and in planning its future activities. In particular, the trustees consider how planned activities will contribute to the aims and objectives that have been set.

Within the Trust are eight properties which are classed ‘specie trusts’ and permanent endowments, and so are treated in our accounts as restricted funds. They are together called the “Six Weeks Meeting Charities”: Bunhill Fields (part) – 1661 endowment, Croydon Meeting House and Adult School Hall, Epping Meeting House and burial ground, Hammersmith Meeting House, Kingston Meeting House, Uxbridge Meeting House, Long Lane Burial Ground, Walthamstow Meeting House (part).

The Charity Commission Scheme of 2016 governing the Six Weeks Meeting Charities and “altering and affecting” London Quakers Property Trust sets out the details.

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London Quakers Property Trust

Trustees’ annual report

For the year ended 31 December 2020

Any money generated by these eight properties must, in the first instance, be spent on their maintenance. It has been agreed with the Charity Commission, however, that any surplus income arising may be accumulated and applied by LQPT as sole trustee for the upkeep and maintenance of all its properties. Any deficit arising, on the other hand, would be repaid to the specie trust out of the General Fund.

The General Fund is used for the maintenance and repair of all the property in the care of LQPT including the eight permanent endowment properties. (Ref: Note 20)

The Scheme also vested in the Trust all land which had previously been held by Friends Trusts Limited as nominee.

LQPT receives the net proceeds from the sale of any property, also into the pooled funds being held in trust for the benefit of all the Area Meetings.

Local management and oversight of the individual properties owned by LQPT is entrusted to (voluntary) Premises Committees which are appointed by each Area Meeting for each of the Local Meetings that occupy a Meeting House. Some of the Meeting Houses have paid staff who support the committees. LQPT engages the services of surveyors and other professionals to conduct Quinquennial surveys of the properties and to provide other professional services in connection with their maintenance, refurbishment and alteration.

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London Quakers Property Trust

Trustees’ annual report

For the year ended 31 December 2020

Achievements and performance

The charity's main activities are described below. Its charitable activities are aimed at supporting Quaker worship and witness in the London region, in particular by maintaining Quaker Meeting Houses and paying for rented accommodation for Quaker Meetings. This is undertaken to further London Quakers Property Trust’s charitable purposes for the public benefit.

Clearly a dominant feature of 2020 was the impact of the Covid-19 pandemic which started to impact life in London in March 2020, and which continues as this is being written in mid-2021.

Having built up the charity’s reserves from zero over the last fifteen years, these have proved to be sufficient for LQPT to continue to operate with confidence through these challenging times.

In mid-March the LQPT Office in Friends House was closed along with all our Meeting Houses. The LQPT staff have since then been working on laptops from their respective homes for over 16 months. All meetings of staff and trustees have had to be held online via zoom since March. LQPT’s income has been severely dented.

Despite these restrictions during 2020, LQPT has continued to operate at full capacity:

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London Quakers Property Trust

Trustees’ annual report

For the year ended 31 December 2020

The LQPT staff (Manager, Finance Officer, Project Officer) left the office in March 2020, all taking back up discs home anticipating being out of the office for a few weeks. Sixteen months later, the staff team are yet to return. Not having access to any paperwork has caused some restrictions and made the audits more complicated but with the purchase of some new laptops, the team have been able to work fairly successfully throughout. Having the accounting software and main banking online was a great advantage.

However, the disconnection of staff from each other and trustees has been a real disadvantage. All meetings of staff and trustees have had to be held online via zoom since March 2020. This has worked well in overseeing the general governance of the organisation, but the lack of personal connections and social interactions has been a loss.

The key impact of the pandemic on LQPT has of course been that income has been severely impacted. Around 80% of the annual income is usually generated from hiring out rooms in Meeting Houses to external organisations. This almost dried up during the lockdowns and will be slow to recover. In late March a revised budget was created for the year that anticipated room hire income reduced to 25% and related costs reduced to 75% as most of those are fixed costs. This has proved to be close to the actual outcome.

Later in the year a Six Year rolling financial projection was developed to assist trustees and staff in considering the impacts of decisions regarding spending on the estate. This will be regularly reviewed to take account of the continuing impact of the pandemic on operations.

Support has been provided to local staff and volunteers in managing the changing rules and regulations relating to places of worship and community use of buildings. LQPT committed early on to keeping cleaners, wardens and caretakers engaged throughout and has been providing sufficient funds as floats to cover all the local operating costs of Meeting Houses.

Apart from short periods during the full lockdowns, surveying and construction work has kept going within the relevant restrictions. All the planned quinquennial surveys were completed and all the agreed maintenance work arising from surveys in 2019 was commissioned with most completed.

During 2020 Quinquennial Condition Surveys and Reports were completed at Ealing, Muswell Hill, New Barnet, Bromley and Sutton Meeting Houses. Work arising from these surveys is being caried out during 2021. Cyclical refurbishment works following surveys have been carried out at Harrow, Uxbridge, Leigh-onSea, Streatham & Brixton, Esher, Kingston & Winchmore Hill Meeting Houses. Along with general maintenance these works included measures to reduce the energy consumption of the buildings whilst improving comfort levels and considered issues around accessibility.

Other works were carried out in 2020 at the following Meeting Houses:

The development of three flats over Forest Hill Meeting House has continued with some delay due to Covid19 and is just being completed in mid-2021. The new Hammersmith Meeting House was completed and handed over. Through negotiations with the local authority and their developer, this new building has been procured as a replacement for the previous 1950s building at near zero cost to LQPT. It is certified to the AECB Building Standard of energy efficiency. The new Meeting House in Hammersmith is possibly the most energy efficient British building designed for religious worship.

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London Quakers Property Trust

Trustees’ annual report

For the year ended 31 December 2020

‘ Sustainability’

In 2011 Britain Yearly Meeting (the national body of Quakers) committed to becoming “a low carbon, sustainable community” in its ‘Canterbury Commitment’. In 2012 Six Weeks Meeting (predecessor to London Quakers Property Trust) recognised its role in reducing the energy consumption of the buildings in its care.

In the Meeting Houses in London, as part of the ongoing maintenance work, loft spaces have been insulated and cavity walls have been insulated where appropriate. When boilers are replaced, it is with the most efficient new boilers available with appropriate control systems. Where appropriate, remote control systems are included so that building managers can adjust the heating for changing hiring patterns without having to be present in the building.

Other issues

Policies

An external consultant was commissioned to produce a suite of policies for LQPT taking into account general good practice and guidelines from similar organisations. These draft policies were received towards the end of 2019. The sub-committees of LQPT are now working through them, editing to fit with how LQPT operates.

Website

Work was carried out with an external web site developer to design and construct a web site platform. Work on this was delayed due to illness in 2020. It should be populated and go live during 2021.

Pan London Governance

With demographic and other changes impacting on how Quakers are structured and organised across London meetings have been held to consider how systems could be changed. This is not directly related to the work of LQPT but may well impact the governance structures.

Staffing

During 2020 a group of trustees has been considering future staffing requirements of LQPT. This work continues in 2021, having to take account of the new uncertainties.

Equality, Diversity & Inclusion

LQPT trustees are appointed by the member Area Meetings form their membership. A small number (currently 2) can be co-opted. They must all be members of the Religious Society of Friends (Quakers) in Britain. Trustees are from diverse career paths and backgrounds and from all sections of the community, regardless of age, disability, ethnicity, gender, gender expression, sexual orientation and transgender status. Trustees are actively considering what more could be done to ensure the group is as diverse and inclusive as possible.

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London Quakers Property Trust

Trustees’ annual report

For the year ended 31 December 2020

Financial Review

INCOME

Donations and legacies

During 2020, LQPT received the regular annual grant of £20,000 from North East Thames Quaker Trust. We received a donation of £17,405 from North East Thames Area Meeting towards the building costs at Walthamstow Meeting House. We also received a donation of £20,000 from Uxbridge local meeting towards the cost of quinquennial work carried out to Uxbridge Meeting House.

Charitable activities

Meeting House room hire generated £440k in 2020 – a decrease of £734k (63%) on 2019 (Note3) The income from investment property rents increased by £6k (4%). Bank interest received reduced by £8k (26%) (Note5).

Fundraising

LQPT income is made up of the surplus generated from use of the Meeting Houses, some investment income and an annual ‘quota’ or voluntary contribution levied on the membership via the Area Meetings. It does not therefore carry out any fundraising.

EXPENDITURE

Charitable activities (Note 6a)

Expenditure by local meetings amounted to £455k during the year, a decrease of 19% (£107k) on 2019. The decrease in Meeting House room hire income (please see above) resulted in a negative net rent of £15k. The net rent figure for 2019 was £612k.

Major and minor repairs to Meeting Houses totalled £985k during the year, a 41% increase on 2019 (£696k). We spent £115k on Kingston MH, £86k on Walthamstow MH and £118k on Hammersmith MH.

ASSETS

Meeting House insured replacement valuations

The value of the meeting houses transferred from Six Weeks Meeting at the start of 2017 is the deemed cost for LQPT. See note 1 (j).

Investments (Note 16)

LQPT investment portfolio’s value increased by £34k. Investment income (dividends) decreased by £1.5k compared to last year.

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London Quakers Property Trust

Trustees’ annual report

For the year ended 31 December 2020

Investment properties have been shown separately. In 2018 just one property was listed as an investment property. In the 2019 accounts flats that form part of Meeting Houses but are currently let out commercially to generate income for the trust were added to the list of investment properties. The value of the remaining section of the building still being used for the charitable purposes was reduced by a percentage of the deemed cost according to floor area. In 2019 a formula was used to assess the value of these flats. In 2020 local estate agents were asked to provide commercial sale valuations.

Cash at bank

At the end of 2020, LQPT’s cash at bank totalled £3.399M – a decrease of £395K on the year-end total for 2019.

Debtors

Debtors decreased by £189K at the year compared to last year. Net rents receivable decreased by £142K compared to 2019.

Creditors

Creditors increased by £298K at the year compared to 2019. This is mainly due to increase in trade creditors by £261K and an increase in accruals by £37K.

Cash flow

Net income from operational activities amounted to £-566K by the end of the year (2019: £-65K).

Support costs

The above cost decreased by £22K in 2020 compared to 2019. This is due to Legal & Professional fees & Consultancy fees decreasing by £16K and £5K respectively.

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London Quakers Property Trust

Trustees’ annual report

For the year ended 31 December 2020

Principal risks and uncertainties

LQPT has an established Risk Register which is reviewed by Trustees at regular intervals.

The key controls used include:

The most significant ongoing risks identified in 2020 and their management are:

The switch to remote working in 2020-21 has shown that digital backup systems and online working has been found to be effective and robust, enabling the work to continue with little interruption apart from restricted access to paper information for the audit.

The biggest impact has been loss of income from room hire; a drop of around £800,000 compared to a normal year. The risk of a health pandemic was not in trustees’ thinking but building up reserves in preparation for an unknown, uncontrollable event has been. This put LQPT in a strong position to respond to the situation. Serious consideration will need to be given to how reserves are managed over the next few years given the lack of clarity as to how any recovery in the use of public space and community buildings will proceed.

There may also be unforeseen outcomes from the changes in lifestyles that we have all been faced with over the last year.

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London Quakers Property Trust

Trustees’ annual report

For the year ended 31 December 2020

Reserves policy and going concern

Reserves policy and going concern

This is being written in the second half of 2021 having faced 18 months of disruption from the effects of restrictions relating to the spread of Covid-19 through London.

Reserves have been maintained for:

  1. LQPT’s potential contributions to foreseeable major (capital) projects for new meeting houses or for major improvements to them.

  2. Commitments and contingencies not recognised as liabilities in the accounts.

  3. Estimated shortfall in the next five years in the investment income, quota and net rents receivable compared to the expenditure on the quinquennial surveys, other maintenance expenditure on the properties and on LQPT’s central costs.

  4. The uninsured risks arising from the management of the meeting houses, based on past experience with the buildings, contractors’ insolvencies and staff.

  5. Working capital covering five months’ forecast maintenance expenditure.

Trustees estimate that currently £4.0 - 4.5 million is needed to cover the 5 matters listed above. The available reserves are estimated as follows:

£ million
Total fundsper the balance sheet 38.4
Less:
Endowment and restricted funds 11.5
Other meetinghouses 19.0
Investment properties that are part of
meetinghouses		 3.0
= Available reserves 4.9
**Represented by: **
Other investmentproperties 1.2
Investmentportfolio 0.7
Net current assets 3.0
Total 4.9

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London Quakers Property Trust

Trustees’ annual report

For the year ended 31 December 2020

Plans for the future

In January 2020 LQPT Trustees approved a 10 Year Strategy document.

The strategic direction of fewer but better meeting houses has been developed with and accepted by all seven-member Area Meetings.

LQPT's charitable objects are:

"for the public benefit to advance the religious purposes of the Religious Society of Friends (Quakers) Great Britain and in particular (but not exclusively) to maintain, repair, preserve and insure Quaker Meeting Houses and other properties owned or used by Quakers in Great Britain and their contents”.

The Strategy

Aims

How to achieve aims

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London Quakers Property Trust

Trustees’ annual report

For the year ended 31 December 2020

Aspirations by 2030: [These represent a direction of travel- a description of “good” rather than targets]

Fewer

Better

Improving building stock

Increasing Central services

Alignment/communication

Financial

Social benefit

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London Quakers Property Trust

Trustees’ annual report

For the year ended 31 December 2020

Structure, governance and management

London Quakers Property Trust (LQPT) is a registered charity and company limited by guarantee incorporated on 23[rd] June 2009 and registered as a charity on 9[th] May 2011. The company was established under a memorandum of association which established the objects and powers of the charitable company and is governed under its articles of association. It exists to maintain, repair, preserve and insure the Quaker Meeting Houses and their contents within the London area.

On 1[st] January 2017 LQPT took over the assets, liabilities and operations of Six Weeks Meeting. The origins of SWM date back to 1671 when it was established by George Fox, who later clarified its prime responsibility for property in his advice of 1690. Monthly Meetings, both in the City of London and in the county of Middlesex, were asked to choose faithful Friends to attend to SWM’s business. The principles of mutual help and mutual responsibility through a system of pooled funds were to be the basis of SWM’s operation.

The Area Meetings in the London Area which make up London Quakers Property Trust are currently: London West Area Meeting, North West London Area Meeting, North London Area Meeting, North East Thames Area Meeting, South East London Area Meeting, South London Area Meeting, Kingston & Wandsworth Area Meeting. The seven Area Meetings are the members of the company. They each appoint a ‘member’s representative’.

The Trustees of LQPT are appointed by the seven Area Meetings within the London area. All Trustees are members of the Religious Society of Friends (Quakers). Each Area Meeting is asked to appoint two or three Trustees to serve for a period of three years with the possibility of being reappointed twice for a total of up to nine years. Area Meetings use a Quaker Nominations Process to appoint new Trustees.

All new Trustees are provided with a pack of information regarding the role of a Trustee, the activities of LQPT over the last year, recent annual accounts, reports and background information on the history and function of LQPT. Trustees report back to their Area Meetings on the activities of LQPT at least once a year.

The Clerk of LQPT Trustees is appointed by the Trustees as are the Treasurer and Assistant Clerk, to serve for a period of three years (usually). Trustees meet six times a year. There are currently sub-committees considering the following specific areas: Finance, Governance, Staffing, Technical and Nominations. The Officers (Clerk, Assistant Clerk and Treasurer) meet with the Manager midway between the six annual Trustees meetings.

LQPT Trustees make decisions, in meetings held as meetings for worship for business in accordance with Quaker Faith & Practice, on major matters including establishing policies and strategy. Staff have delegated powers to make routine day-to-day decisions.

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London Quakers Property Trust

Trustees’ annual report

For the year ended 31 December 2020

Related parties and relationships with other organisations

Pollard & Dickson Trust

Trustees of LQPT are also managing Trustees of the Pollard & Dickson Trust (PDT). The Staff of LQPT spend a portion of their time on work for PDT, which remits to LQPT a sum equivalent to approximately 3% of the latter’s administrative, financial, office rental and operating expenses.

Area Meetings

The Trustees of London Quakers Property Trust are appointed by the seven Area Meetings in the LQPT area. London Quakers Property Trust is accountable to the constituent Area Meetings through their appointed Trustees and general meetings of members representatives, for careful stewardship of the pooled funds and assets which London Quakers Property Trust holds on their behalf.

Remuneration policy for key management personnel

All Trustees give of their time freely and no trustee remuneration was made in the year. Details of Trustees’ expenses are disclosed in Note 10 to the accounts.

The day-to-day administration of LQPT is delegated to the LQPT Manager and a Finance Officer. The Project Manager works approximately one week a month on specific projects.

The pay of the charity’s staff is reviewed annually by trustees.

Statement of responsibilities of the trustees

The trustees (who are also directors of London Quakers Property Trust for the purposes of company law) 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).

Company law 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 charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

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London Quakers Property Trust

Trustees’ annual report

For the year ended 31 December 2020

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Auditor

Sayer Vincent LLP was re-appointed as the charitable company's auditor during the year and has expressed its willingness to continue in that capacity.

The trustees’ annual report has been approved by the trustees on 19[th] July 2021, by minute LQPT21/40 and signed on their behalf by

Mary Bernadette O’Shea Trustee – Clerk

Richard Martin Trustee - Treasurer

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Independent auditor’s report

To the members of

London Quakers Property Trust

Opinion

We have audited the financial statements of London Quakers Property Trust (the ‘charitable company’) for the year ended 31 December 2020 which comprise the statement of financial activities, balance sheet, statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on London Quaker Property Trust's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other Information

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

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Independent auditor’s report

To the members of

London Quakers Property Trust

assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the statement of trustees’ responsibilities set out in the trustees’ annual report, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’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 charitable company or to cease operations, or have no realistic alternative but to do so.

19

Independent auditor’s report

To the members of

London Quakers Property Trust

Auditor’s responsibilities for the audit of the financial statements

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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud are set out below.

Capability of the audit in detecting irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This

20

Independent auditor’s report

To the members of

London Quakers Property Trust

risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of noncompliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

Use of our report

This report is made solely to the charitable company's members as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members 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 charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Joanna Pittman (Senior statutory auditor) 13 September 2021

for and on behalf of Sayer Vincent LLP, Statutory Auditor Invicta House, 108-114 Golden Lane, LONDON, EC1Y 0TL

21

London Quakers Property Trust

Statement of financial activities (incorporating an income and expenditure account)

For the year ended 31 December 2020

2020 2019
Restricted &
Restricted & Endowment
Unrestricted Endowments Total Unrestricted s Total
Note £ £ £ £ £ £
Income and endowments from:
Donations and legacies 2 20,000 37,405 57,405 36,820 70,000 106,820
Charitable activities 3 494,062 156,365 650,427 1,013,940 368,520 1,382,461
Other trading activities 4 4,091 2,620 6,711 4,082 26,620 30,702
Other - Hammersmith 4 283,598 2,531,369 2,814,967 - - -
Investments 5 163,224 12,485 175,709 179,590 - 179,590
Total income 964,975 2,740,244 3,705,219 1,234,431 465,140 1,699,572
Expenditure on:
Raising funds 6 22,237 - 22,237 18,717 - 18,717
Charitable activities 6 1,425,708 188,433 1,614,141 1,214,246 248,284 1,462,530
Fixed Asset disposal 6 264,000 - 264,000 - - -
Total expenditure 1,711,945 188,433 1,900,378 1,232,963 248,284 1,481,247
Net Income before net gains on
investments (746,970) 2,551,812 1,804,841 1,469 216,856 218,325
Net gains on investments 16 34,286 - 34,286 81,398 - 81,398
Revaluation of investment properties 15 300,992 (388,266) (87,274) 1,829,869 473,824 2,303,692
Net income for the year (411,692) 2,163,546 1,751,853 1,912,735 690,680 2,603,415
Transfers between funds 20a 18,559 (18,559) - 191,341 (191,341) -
Net movement in funds (393,133) 2,144,987 1,751,854 2,104,076 499,339 2,603,415
Reconciliation of funds:
Total funds brought forward 27,297,645 9,388,922 36,686,567 25,193,570 8,889,582 34,083,152
Total funds carried forward 26,904,511 11,533,910 38,438,421 27,297,645 9,388,922 36,686,567

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in Note 20a to the financial statements.

Income and expenditure on the endowment funds are outlined in note 7.

22

London Quakers Property Trust

Balance sheet

Balance sheet Balance sheet
As at 31 December 2020 Company no. 06942084
Note
£
Fixed assets:
14
15
16
Current assets:
17
132,153
500,000
2,899,384
3,531,537
Liabilities:
18
(388,424)
20a
22,020,945
4,883,566
Total unrestricted funds
General funds
Total charity funds
Investments
Cash at bank and in hand
Tangible assets
Short term deposits
The funds of the charity:
Creditors: amounts falling due within one year
Net current assets
Total net assets
Endowment funds
Unrestricted income funds:
Designated funds
Restricted Funds
Investment properties
Debtors		 2020
£
30,156,880
4,475,068
663,360		 £
321,254
2,252,505
1,541,742		 2019
£
27,888,936
4,147,917
624,605
35,295,307
3,143,113		 32,661,458
4,025,109
3,531,537
(388,424)		 4,115,501
(90,392)
22,020,945
4,883,566		 24,917,121
2,380,524
38,438,421 36,686,567
11,506,509
27,401
26,904,511		 9,363,406
25,516
27,297,645
38,438,421 36,686,567

Approved by the trustees on 19 July 2021 and signed on their behalf by

Bernadette O'Shea Chair

Richard Martin Treasurer

23

London Quakers Property Trust

Statement of cash flows

For the year ended 31 December 2020

Note
£
£
Cash flows from operating activities
Net income for the reporting period
1,751,853
(as per the statement of financial activities)
52,988
264,000
(2,531,369)
(415,000)
(9,529)
(23,701)
(142,479)
189,100
298,032
Net cash provided by operating activities
(566,104)
(78,651)
-
51,841
1,752,505
23,701
9,529
142,479
Movement in cash investment balances
22,342
1,923,747
1,357,642
1,541,742
2,899,384
Payments to acquire investments (short term
deposits)
Rents from investment properties
Rents from investment properties
2020
Receipts from sale of investments (short term
Disposal of fixed assets
Dividends received
Interest received
Loss on investment
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Interest received
Dividends received
Gain on new Hammersmith MH
Assets in construction
Cash and cash equivalents at the end of the year
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the
year
Net cash provided by investing activities
Cash flows from investing activities:
Payments to acquire investments
Receipts from sale of investments		 Note
£
£
Cash flows from operating activities
Net income for the reporting period
1,751,853
(as per the statement of financial activities)
52,988
264,000
(2,531,369)
(415,000)
(9,529)
(23,701)
(142,479)
189,100
298,032
Net cash provided by operating activities
(566,104)
(78,651)
-
51,841
1,752,505
23,701
9,529
142,479
Movement in cash investment balances
22,342
1,923,747
1,357,642
1,541,742
2,899,384
Payments to acquire investments (short term
deposits)
Rents from investment properties
Rents from investment properties
2020
Receipts from sale of investments (short term
Disposal of fixed assets
Dividends received
Interest received
Loss on investment
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Interest received
Dividends received
Gain on new Hammersmith MH
Assets in construction
Cash and cash equivalents at the end of the year
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the
year
Net cash provided by investing activities
Cash flows from investing activities:
Payments to acquire investments
Receipts from sale of investments		 Note
£
£
Cash flows from operating activities
Net income for the reporting period
1,751,853
(as per the statement of financial activities)
52,988
264,000
(2,531,369)
(415,000)
(9,529)
(23,701)
(142,479)
189,100
298,032
Net cash provided by operating activities
(566,104)
(78,651)
-
51,841
1,752,505
23,701
9,529
142,479
Movement in cash investment balances
22,342
1,923,747
1,357,642
1,541,742
2,899,384
Payments to acquire investments (short term
deposits)
Rents from investment properties
Rents from investment properties
2020
Receipts from sale of investments (short term
Disposal of fixed assets
Dividends received
Interest received
Loss on investment
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Interest received
Dividends received
Gain on new Hammersmith MH
Assets in construction
Cash and cash equivalents at the end of the year
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the
year
Net cash provided by investing activities
Cash flows from investing activities:
Payments to acquire investments
Receipts from sale of investments		 £
£
2,603,415
(2,385,090)
-
-
-
(11,053)
(31,836)
(136,701)
(116,126)
12,265
(65,125)
(68,440)
(2,252,505)
95,530
-
31,836
11,053
136,701
(33,255)
(2,079,080)
(2,144,205)
3,685,948
1,541,742
2019		 £
£
2,603,415
(2,385,090)
-
-
-
(11,053)
(31,836)
(136,701)
(116,126)
12,265
(65,125)
(68,440)
(2,252,505)
95,530
-
31,836
11,053
136,701
(33,255)
(2,079,080)
(2,144,205)
3,685,948
1,541,742
2019
(566,104)
1,923,747		 (65,125)
(2,079,080)
1,357,642
1,541,742		 (2,144,205)
3,685,948
2,899,384 1,541,742

24

London Quakers Property Trust

Notes to the financial statements

For the year ended 31 December 2020

1 Accounting policies

a) Statutory information

London Quakers Property Trust is a charitable company limited by guarantee and is incorporated in England and Wales.

The registered office address and principal place of business, is Friends House 173, Euston Road, London, NW1 2BJ.

b) Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Charities SORP FRS 102), The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.

In applying the financial reporting framework, the trustees have made a number of subjective judgements, for example in respect of significant accounting estimates. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The nature of the estimation means the actual outcomes could differ from those estimates. Any significant estimates and judgements affecting these financial statements are detailed within the relevant accounting policy below.

c) Public benefit entity

The charity meets the definition of a public benefit entity under FRS 102.

d) Going concern

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.

The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period that would affect the going concern assumption.

25

London Quakers Property Trust

Notes to the financial statements

For the year ended 31 December 2020

1 Accounting policies (continued)

e) Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.

Income from grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the charity that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is a treated as a contingent asset and disclosed if material.

Income received in advance of the provision of a specified service is deferred until the criteria for income recognition are met.

Income from lettings is recognised on a quarterly as reported and remitted by each meeting house administrator.

Income from quotas is recognised when agreed with the area meetings at the commencement of each financial year.

f) Interest receivable

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 or payable by the bank.

g) Fund accounting

Endowment funds are restricted funds in which the capital must be preserved, these are to be used for specific purposes as laid down by the donor. Income from these is permitted to be transferred to unrestricted funds on a quarterly basis. Expenditure which meets the criteria laid down by the donor is charged to the fund.

Unrestricted funds are donations and other incoming resources received or generated for the charitable purposes.

Restricted funds are donations and other incoming resources received to be spent on a particular meeting house. It also includes funds received from Area Meetings to be spent on the Pan London Project.

Designated funds are unrestricted funds earmarked by the trustees for particular purposes.

26

London Quakers Property Trust

Notes to the financial statements

For the year ended 31 December 2020

h) Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

i) Allocation of support costs

Resources expended are allocated to the particular activity where the cost relates directly to that activity. However, the cost of overall direction and administration of each activity, comprising the salary and overhead costs of the central function, is apportioned on the following basis which are an estimate, based on expenditure, of the amount attributable to each activity.

Where information about the aims, objectives and projects of the charity is provided to potential beneficiaries, the costs associated with this publicity are allocated to charitable expenditure.

Support and governance costs are re-allocated to each of the activities on the following basis which is an estimate, based on staff time, of the amount attributable to each activity:  Charitable activities 100%

Governance costs are the costs associated with the governance arrangements of the charity. These costs are associated with constitutional and statutory requirements and include any costs associated with the strategic management of the charity’s activities.

j) Tangible fixed assets

The land and buildings of the meeting houses are included at cost subject to depreciation. The value of the meeting houses transferred from Six Weeks Meeting at the start of 2017 is the deemed cost for LQPT. Given the value of the land element in the carrying value and the programme of maintenance of the buildings, any depreciation in relation to the meeting houses is considered immaterial. Works to the properties are not capitalised, as they are maintaining the property to a reasonable standard, so no depreciation is charged against MH's value, further to this a significant value of each property is in land, which has infinite useful economic life. Major additions to those meeting houses will be included at their cost and depreciated over their expected life.

Items of equipment are capitalised where the purchase price exceeds £5,000. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use. Major components are treated as a separate asset where they have significantly different patterns of consumption of economic benefits and are depreciated separately over its useful life.

Where fixed assets have been revalued, any excess between the revalued amount and the historic cost of the asset will be shown as a revaluation reserve in the balance sheet.

Following the change in accounting standards mixed use properties (held for charitable purposes and investment) must now be split and the two components presented separately. For LQPT this has applied to the flats attached to meeting houses that are rented out externally. Amounts representing the flats have been transferred from tangible fixed assets to investment properties and they have been revalued from deemed cost to fair value.

27

London Quakers Property Trust

Notes to the financial statements

For the year ended 31 December 2020

k) Investment properties

l) Listed 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. Any change in fair value will be recognised in the statement of financial activities. Investment gains and losses, whether realised or unrealised, are combined and shown in the heading “Net gains/(losses) on investments” in the statement of financial activities. The charity does not acquire put options, derivatives or other complex financial instruments.

m) 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.

n) Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. Short terms deposits are cash investments with a maturity of more than 3 months and up to 1 year.

o) Creditors and provisions

Creditors and provisions 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 and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

p) Pensions

Employer contribution (8%) is made into a defined contribution pension scheme operated by NEST.

28

London Quakers Property Trust

Notes to the financial statements

For the year ended 31 December 2020

2 Income from donations and legacies

Donations and legacies
Grants from Trusts		 Unrestricted
£
-
20,000		 £
37,405
-
Restricted		 2020
Total
£
37,405
20,000		 Unrestricted
£
16,820
20,000		 £
70,000
-
Restricted		 2019
Total
£
86,820
20,000
20,000 37,405 57,405 36,820 70,000 106,820

3 Income from charitable activities

Meeting House lettings
Quota
Total income from
charitable activities		 Unrestricted
£
283,964
210,098		 £
156,365
-
Endowments		 2020
Total
£
440,329
210,098		 Unrestricted
£
805,911
208,029		 £
368,520
-
Endowments		 2019
Total
£
1,174,432
208,029
494,062 156,365 650,427 1,013,940 368,520 1,382,461

4 Income from other trading activities

fee
Hammersmith
Residential rents
Other income		 Unrestricted
£
2,211
1,880
-
283,598		 £
-
120
2,500
2,531,369
Endowments		 2020
Total
£
2,211
2,000
2,500
2,814,967		 Unrestricted
£
2,071
1,945
66
-		 £
-
120
26,500
-
Endowments		 2019
Total
£
2,071
2,065
26,566
-
287,689 2,533,989 2,821,678 4,082 26,620 30,702

The deemed cost of the old Hammersmith meeting house was £458,631. The value of the new meeting house is £2,990,000. This resulted in a gain of £2,531,369.

The reimbursement of expenses incurred by LQPT for the new MH was £283,598.

5 Income from investments

Bank interest
Dividends
Income from investment
property		 Unrestricted
£
23,701
129,994
9,529		 £
-
12,485
-
Endowments		 2020
Total
£
23,701
142,479
9,529		 Unrestricted
£
31,836
136,701
11,053		 1,524
£
-
-
-
Endowments		 2019
Total
£
31,836
136,701
11,053
163,224 12,485 175,709 179,590 - 179,590

29

London Quakers Property Trust

Notes to the financial statements

For the year ended 31 December 2020

6a Analysis of expenditure (current year)

Raising
funds
£
-
5,110
17,127
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 Charitable
activities
£
-
-
455,484
985,024
32,984
8,184
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 Fixed
asset
Disposal
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
264,000		 Governance
costs
£
4,320
-
-
-
-
-
-
-
-
-
-
-
-
-
-
8,700
23
-
-
-		 Support
costs
£
82,088
-
-
-
-
-
-
6,100
1,458
2,329
9,963
7,919
963
1,649
-
-
-
6,336
615
-		 2020 Total
£
86,409
5,110
472,611
985,024
32,984
8,184
-
6,100
1,458
2,329
9,963
7,919
963
1,649
-
8,700
23
6,336
615
264,000		 2019
Total
£
85,358
4,888
576,485
695,922
30,642
19,381
144
6,063
1,132
-
15,348
24,363
2,433
2,279
799
8,580
109
6,336
984
-
22,237
-
-		 1,481,676
13,044
119,421		 264,000
-
-		 13,044
(13,044)
-		 119,421
-
(119,421)		 1,900,378
-
-		 1,481,247
-
-
22,237 1,614,141 264,000 - - 1,900,378 -

The deemed cost of Forest Hill meeting house is £800,000. The floor area of the original flat was about 33% of the total MH. Therefore the fixed asset disposal is shown as £264,000 (33% of £800,000)

30

London Quakers Property Trust

Notes to the financial statements

For the year ended 31 December 2020

6b Analysis of expenditure (prior year)

Staff costs (Note 10)
Investment management
Direct costs
Local MH expenditure
Major repairs, minor
improvements
Insurance
Surveyor's fees &
expenses
Support costs
Bank charges
Office costs
Printing, stationery &
consumables
Consultancy
Legal & professional fees
Meeting costs
Sundry
Staff Recruitment &
Training
Auditors Remuneration
Trustees expenses
New Website
London Quakers Project
Bad debts write off
Governance costs
Support costs
Total expenditure 2019		 Raising
funds
£
-
4,888
13,829
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 Charitable
activities
£
-
-
562,656
695,922
30,642
19,381
-
-
-
-
-
-
-
-
-
-
-
-
-		 Governance
costs
£
4,268
-
-
-
-
-
-
-
-
-
-
-
-
-
8,580
109
-
-
-		 Support
costs
£
81,090
-
-
-
-
-
144
6,063
1,132
15,348
24,363
2,433
2,279
799
-
-
6,336
984
-		 2019 Total
£
85,358
4,888
576,485
695,922
30,642
19,381
144
6,063
1,132
15,348
24,363
2,433
2,279
799
8,580
109
6,336
984
-
18,717
-
-		 1,308,601
12,957
140,971		 12,957
(12,957)		 140,971
-
(140,971)		 1,481,247
-
-
18,717 1,462,529 - - 1,481,247

31

London Quakers Property Trust

Notes to the financial statements

For the year ended 31 December 2020

Croydon
Epping
Hammersmith
Kingston
Uxbridge
Walthamstow
Long Lane BG
Bunhill Fields		 Gross rent
£
4,967
58,673
7,041
2,437
44,585
5,398
33,265
120		 £
3,997
51,858
4,447
7,582
31,637
6,185
44,706
-
Local running
cost		 2020
Net rent
£
970
6,815
2,595
(5,145)
12,947
(787)
(11,441)
120		 2019
Net rent
£
16,431
32,588
9,076
10,936
63,913
8,546
49,731
120
156,485 150,412 6,073 191,341

7b Endowment fund income & expenditure by Meeting House (prior year)

Bunhill Fields
Croydon
Epping
Hammersmith
Kingston
Uxbridge
Walthamstow
Long Lane BG		 Gross rent
£
33,960
82,505
13,193
18,958
109,218
17,357
93,330
120		 £
17,529
49,917
4,117
8,022
45,304
8,812
43,599
-
Local running
cost		 2019
Net rent
£
16,431
32,588
9,076
10,936
63,913
8,546
49,731
120
368,640 177,300 191,341

32

London Quakers Property Trust

Notes to the financial statements

For the year ended 31 December 2020

Income & expenditure by Meeting House
Bethnal Green
Blackheath
Brentfd&Islwth
Bromley
Ealing
Epsom
Esher
Finchley
Forest Hill
Golders Green
Hampstead
Harlow
Harrow
Leigh on Sea
Muswell Hill
New Barnet
Purley
Richmond
Romford
`
Staines&Egham
Stoke Newington
Streatham
Sutton
Tottenham
Wandsworth
Wanstead
Westminster
Wimbledon
Winchmore Hill		 Gross rent
£
-
19,446
19,141
17,785
13,505
-
2,757
9,330
2,357
4,769
15,433
11,422
6,998
3,475
11,884
15,194
2,575
220
11,565
859
-
6,189
10,268
3,003
6,012
20,497
50,950
3,724
14,606		 £
357
21,383
16,095
9,200
12,438
1,416
7,433
7,827
9,983
8,660
12,732
10,444
11,176
3,525
16,441
8,052
1,000
2,169
5,484
3,497
4,221
5,286
10,288
3,143
13,260
27,731
47,551
3,530
20,427
Local running
cost		 2020
Net rent
£
(357)
(1,937)
3,046
8,585
1,067
(1,416)
(4,676)
1,503
(7,626)
(3,891)
2,701
978
(4,178)
(50)
(4,557)
7,142
1,575
(1,949)
6,081
(2,638)
(4,221)
903
(20)
(140)
(7,248)
(7,234)
3,399
194
(5,821)		 2019
Net rent
£
(950)
20,078
7,888
16,452
38,282
(1,530)
2,098
18,103
1,438
9,568
36,944
4,166
23,885
9,166
20,386
25,198
(11,133)
(2,061)
19,234
3,493
(16,608)
9,388
1,551
1,952
7,759
22,772
135,414
4,715
12,905
283,966 304,749 (20,783) 420,555

33

London Quakers Property Trust

Notes to the financial statements

For the year ended 31 December 2020

8b Income & expenditure by Meeting House (prior year)

Income & expenditure by Meeting House (prior year)
Bethnal Green
Blackheath
Brentfd&Islwth
Bromley
Ealing
Edgware
Epsom
Esher
Finchley
Forest Hill
Golders Green
Hampstead
Harlow
Harrow
Leigh on Sea
Muswell Hill
New Barnet
Purley
Richmond
Romford
Staines&Egham
Stoke Newington
Streatham
Sutton
Tottenham
Wandsworth
Wanstead
Westminster
Wimbledon
Winchmore Hill		 Gross rent
£
-
44,931
25,038
25,010
53,703
-
-
8,553
24,347
19,750
20,827
49,371
12,601
36,350
13,053
42,372
32,953
3,393
1,035
29,260
9,538
-
18,018
16,194
5,331
19,008
54,468
196,391
9,420
34,998		 £
950
24,853
17,150
8,557
15,421
-
1,530
6,454
6,244
18,311
11,259
12,427
8,434
12,465
3,887
21,986
7,755
14,525
3,096
10,026
6,045
16,608
8,630
14,643
3,380
11,250
31,696
60,977
4,704
22,093
Local running		 2019
Net rent
£
(950)
20,078
7,888
16,452
38,282
-
(1,530)
2,098
18,103
1,438
9,568
36,944
4,166
23,885
9,166
20,386
25,198
(11,133)
(2,061)
19,234
3,493
(16,608)
9,388
1,551
1,952
7,759
22,772
135,414
4,715
12,905
805,911 385,356 420,555

This is stated after charging / (crediting):

Auditor's remuneration (excluding VAT): Audit

2020 2019
£ £
7,250 7,150

34

London Quakers Property Trust

Notes to the financial statements

For the year ended 31 December 2020

10 Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel

Staff costs were as follows:

Staff costs were as follows:
Salaries and wages
Employer's national insurance contributions
Employer’s contribution to defined contribution pension schemes		 2020
£
76,025
5,215
5,169		 2019
£
75,803
5,094
4,461
86,409 85,358

No employee earned more than £60,000 during the year (2019: nil).

The total employee benefits (including pension contributions and employer's national insurance) of the key management personnel were £86,409 (2019: £85,358).

The charity trustees were neither paid nor received any other benefits from employment with the charity in the year (2019: £nil). No charity trustee received payment for professional or other services supplied to the charity (2019: £nil).

Trustees' expenses represents the payment or reimbursement of travel and subsistence costs totalling £0 (2019: £109) incurred by one (2019: 1) members relating to attendance at meetings of the trustees.

11 Staff numbers

The average number of employees (head count based on number of staff employed) during the year was 2 (2019: 2).

Staff are split across the activities of the charity as follows (full time equivalent basis):

Staff are split across the activities of the charity as follows (full time equivalent basis):
Management and Administration 2020
No.
2.0		 2019
No.
2.0
2.0 2.0

12 Related party transactions

The Pollard and Dickson Trust and London Quakers Property Trust are connected charities, in that the charities are controlled by the same trustees. A management charge of £2,211 has been made by London Quakers Property Trust, in respect of the year ended 31 December 2020 (2019: £2,071). There balance outstanding at the year end £4,282 (2019: £2,071).

Total quota received in 2020 from Area Meetings was £210,098 (2019: £208,029) and amount outstanding was nil (2019: £1,087).

There are no other related party transactions to disclose for 2020 (2019: none).

There are no donations from related parties which are outside the normal course of business and no restricted donations from related parties.

13 Taxation

The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.

35

London Quakers Property Trust

Notes to the financial statements

For the year ended 31 December 2020

14
Transfers to investment properties (Edgware MH)
At the start of the year
At the end of the year
Net book value
At the start of the year
At the start of the year
Additions in year
Disposals in year
Tangible fixed assets
Deemed cost
Depreciation
At the end of the year
Charge for the year
Eliminated on disposal
At the end of the year		 Assets in
construction
£
-
415,000
-
-		 Endowment
Properties
£
8,624,634
2,990,000
-
(458,631)		 Freehold
Property
£
19,264,302
-
(414,425)
(264,000)		 Total
£
27,888,936
3,405,000
(414,425)
(722,631)
415,000 11,156,003 18,585,877 30,156,880
-
-
-		 -
-
-		 -
-
-		 -
-
-
- - - -
415,000 11,156,003 18,585,877 30,156,880
- 8,624,634 19,264,302 27,888,936

All of the above assets are used for charitable purposes.

No depreciation is charged on properties due to the high residual value of the land and the programme of regular maintenance carried out.

Additions in the year: The value of new Hammersmith meeting house is £2,990,000. Disposals in the year: The deemed cost of old Hammersmith meeting house is £458,631. The deemed cost of the original Forest Hill flat is £264,000 (33% of £800,000).

15 Investment properties

Investment properties
Disposals
Revaluation during the year
Additions
Fair value at the end of the year
Fair value at the start of the year
Transfers from fixed assets		 2020
£
4,147,917
-
414,425
-
(87,274)		 2019
£
670,068
-
1,174,156
-
2,303,693
4,475,068 4,147,917

The historical cost of the investment properties is £1,813,138 (2019: £1,398,713).

The valuation of investment properties last year used the rental yield from a specific property which was then applied to the mixed use investment properties to arrive the fair value of the investment element. In the current year valuations were obtained from estate agents, overall this resulted a loss of £87,274.

36

London Quakers Property Trust

Notes to the financial statements

For the year ended 31 December 2020

Listed investments
British government stocks
UK Gilts UCITS EFT
2.5% IL Treasury Stock 2024
0.125% IL Treasury Stock 2029
Non-government bonds
EIB 2.5% bond
Lion Trust Investment
Royal London Unit Trusts
British government stocks
Non-government bonds
Cash balances
Global investments
Equities
Listed investments (individual detail)
Listed investments comprise:
Movement in cash balance
Net gain on change in fair value
Historical cost of listed investments
Fair value at the end of the year
Disposal proceeds
Additions at cost
Fair value at the start of the year
Rathbone Unit Trust Management
Collective & unit trusts
Aberdeen Std Fund - Global IL Bond
Kreditanst Fur Wie		 Cost
£
12,385
18,774
33,895		 2020
£
624,605
78,651
(51,841)
34,286		 2019
£
537,042
68,440
(95,530)
81,398
685,702
(22,342)		 591,350
33,255
663,360 624,605
514,369
2020
£
57,326
117,416
183,418
90,914
168,285
46,001		 510,075
2019
£
56,392
87,790
171,204
66,498
174,378
68,343
663,360 624,605
2020
Market
Value
£
14,770
19,827
22,729		 2019
Market
Value
£
13,797
20,038
22,557
65,054 57,326 56,392
17,835
12,429
6,198.73
24,426
24,998.76
24,923		 18,699
12,608
6,261
26,826
26,006
27,016		 17,373
12,598
6,079
25,912
25,828
92,975 117,416 87,790

37

London Quakers Property Trust

Notes to the financial statements

For the year ended 31 December 2020

16 Listed investments (continued)

Global investments
Edentree Amity
F & C Funds Management
Fund Partners Ltd (IM WHEB)
Henderson Global
Impax Environmental
Menhaden Capital
Stewart Investors
Collective & unit trusts
Brown Advisory Fund
Foresight solar
Greencoat UK Wind plc
Renewables Infrastructure
Octopus Renew Infra Trust
Liontrust Investments Ltd
Equities
Bellway PLC
Clinigen Group
Civitas Social Housing
GlaxoSmithKline
Hikma Pharmaceuticals
Home Reit plc
Johnson Matthey Plc
Keller Group plc
Land Securities
Legal & General
Lloyds TSB
Londonmetric Property Plc
Marshalls Group
Marks & Spencer
National Grid
Prudential plc
Relx Plc
Sage Group
Smith (D.S)
Smith & Nephew
SSE
Spirax - Sarco Engineering plc
St. Mowden Properties
Unilever
Victrex Plc
Vodaphone
Schroder Investment Management
Ecofins Renew
Coats plc
Experian plc		 -
21,980
22,226
18,604
6,536
8,300
6,710
13,422		 -
48,373
43,617
17,745
8,217
36,645
9,792
19,030		 29,070
40,038
36,162
27,669
13,986
8,010
-
16,269
97,778 183,418 171,204
23,066
5,017
7,070
7,205
6,184
9,255
8,214		 39,030
5,138
7,175
7,381
6,426
10,351
15,413		 28,537
-
8,820
-
6,959
9,783
12,399
66,012 90,914 66,498
4,744
5,947
3,982
4,345
6,179
12,759
4,838
6,200
-
5,701
-
2,869
-
5,118
5,840
13,759
3,546
5,958
1,947
6,396
5,567
5,772
2,324
6,237
2,324
6,405
3,720
4,454
-		 5,910
3,038
4,173
6,192
6,109
13,420
5,791
6,696
-
6,352
-
5,324
-
7,710
7,027
5,111
5,623
6,668
7,349
5,820
7,151
8,154
4,875
12,425
4,400
15,372
4,692
2,903
-		 7,614
4,160
3,636
-
-
17,790
4,579
-
5,093
6,825
7,296
6,060
7,498
7,966
8,006
6,138
-
13,339
7,490
7,334
9,896
4,675
9,779
5,467
15,227
4,988
3,522
-
136,931 168,285 174,378

38

London Quakers Property Trust

Notes to the financial statements

For the year ended 31 December 2020

Debtors
Accruals
Trade creditors
Other Debtors
Prepayments
Taxation and social security
Creditors: amounts falling due within one year
Trade debtors		 2020
£
115,161
-
16,992		 2019
£
207,819
98,081
15,354
132,153 321,254
2020
£
333,514
2,187
52,723		 2019
£
72,594
2,157
15,641
388,424 90,392

18 Creditors: amounts falling due within one year

19a Analysis of net assets between funds (current year)

Analysis of net assets between funds (current year)
Net assets at 31 December 2020
Tangible fixed assets
Investment properties
Investments
Net current assets		 General
unrestricted
£
-
1,180,000
663,360
3,040,206		 Designated
£
19,000,877
3,020,068
-
-		 Restricted &
Endowment
£
11,156,003
275,000
-
102,907		 Total funds
£
30,156,880
4,475,068
663,360
3,143,113
4,883,566 22,020,945 11,533,910 38,438,421

19b Analysis of net assets between funds (prior year)

Analysis of net assets between funds (prior year)
Investment properties
Investments
Net current assets
Net assets at 31 December 2019
Tangible fixed assets		 General
unrestricted
£
-
-
-
2,380,524		 Designated
£
19,264,302
3,484,651
624,605
1,543,563		 Endowment
£
8,624,634
663,266
-
101,022		 Total funds
£
27,888,936
4,147,917
624,605
4,025,109
2,380,524 24,917,121 9,388,922 36,686,567

39

London Quakers Property Trust

Notes to the financial statements

For the year ended 31 December 2020

Movements in funds (current year)
Total endowment funds
General funds
Investments
Capital Funds
Restricted Funds
Pan London Quakers Project
Uxbridge
Walthamstow MH
Epping
Hammersmith
Total unrestricted funds
Non-endowment fund trust properties
Total funds
Kingston
Unrestricted funds:
Designated funds
Total Designated funds
Investment property
Croydon
Endowment funds:
Bunhill Fields
Uxbridge
Walthamstow
Long Lane BG		 At 1st January
2020
£
326,015
4,729,555
508,363
458,631
1,971,880
619,157
749,805
-		 Income & gains
£
4,967
71,158
7,041
2,533,806
44,585
5,398
33,265
120		 Expenditure &
losses
£
3,997
440,124
4,447
7,582
31,637
6,185
44,706
-		 Transfers
£
(970)
(19,300)
(2,595)
5,145
(12,948)
787
11,441
(120)		 At 31
December
2020
£
326,015
4,341,289
508,363
2,990,000
1,971,880
619,157
749,805
-
9,363,406 2,700,339 538,677 (18,559) 11,506,509
25,516
-
-		 2,500
17,405
20,000		 615
17,405
20,000		 -
-
-		 27,401

-

-
25,516 39,905 38,020 - 27,401
19,264,301
3,484,652
624,606
1,543,562		 -
300,992
34,286
-		 264,000
-
-
-		 575
(765,575)
(658,892)
(1,543,562)		 19,000,876
3,020,069
-
-
24,917,122
2,380,524		 335,278
964,975		 264,000
1,447,945		 (2,967,454)
2,986,013		 22,020,945
4,883,566
27,297,645 1,300,253 1,711,945 18,559 26,904,511
36,686,567 4,040,497 2,288,644 - 38,438,421

The narrative to explain the purpose of each fund is given at the foot of the note below.

The designated funds represent the fixed assets of the charities (being the Meeting Houses in its care) together with those investment properties that are integral to the buildings of the Meeting Houses. As at the end of 2021 the trustees have decided that all the remaining unrestricted funds should be merged together as the general pooled funds which form the available reserves of LQPT (see page12 of the Trustees’ Report).

40

London Quakers Property Trust

Notes to the financial statements

For the year ended 31 December 2020

Movements in funds (prior year)
Total restricted funds
Total designated funds
General funds
Croydon
Endowment funds
Total funds
Bunhill Fields
Unrestricted funds:
Non-endowment fund trust properties
Investment property
Hammersmith
Kingston
Uxbridge
Walthamstow
Long Lane BG
Epping
Brentford & Isleworth MH
Investments
Capital Funds
Restricted Funds
Pan London Quakers Project
Total unrestricted funds
Designated funds
Winchmore Hill MH		 At 1 January
2019
£
326,015
4,255,731
508,363
458,631
1,971,880
619,157
749,805
-		 Income & gains
£
33,960
556,329
13,193
18,958
109,218
17,357
93,330
120		 Expenditure &
losses
£
17,529
49,917
4,117
8,022
45,304
8,812
43,599
-		 Transfers
£
(16,431)
(32,588)
(9,076)
(10,936)
(63,913)
(8,546)
(49,731)
(120)		 At 31
December
2019
£
326,015
4,729,555
508,363
458,631
1,971,880
619,157
749,805
-
8,889,582 842,464 177,300 (191,341) 9,363,406
-
-
-		 26,500
45,000
25,000		 984
45,000
25,000		 -
-
-		 25,516

-

-
- 96,500 70,984 - 25,516
20,249,016
670,068
537,042
1,543,562		 -
1,829,869
87,564
-		 -
-
-
-		 (984,714)
984,714
-
-		 19,264,302
3,484,651
624,606
1,543,562
22,999,688
2,193,882		 1,917,433
1,228,265		 -
1,232,963		 -
191,341		 24,917,121
2,380,524
25,193,570 3,145,698 1,232,963 191,341 27,297,645
34,083,152 4,084,663 1,481,247 - 36,686,567

Purposes of endowment funds

The Kingston Meeting House Charity (KMHC) was a sub-charity of Six Weeks Meeting with its finances recorded in their accounts as a restricted fund. Scheme dated 18 June 2010.

In the formation of LQPT, KMHC became a restricted fund within the LQPT along with 7 other properties that form the "Six Weeks Meeting Charities". Schemes dated 16 November 2016. Running costs and everyday maintenance are paid out of the individual income of each building before any surplus is transferred to the general fund each quarter.

Purposes of designated funds

The designated funds represent the fixed assets of the charity and other cash funds held for capital improvement.

Purpose of the restricted funds

Restricted funds represent donations and other incoming resources received to be spent on a particular meeting house. It also includes funds received from Area Meetings to be spent on the Pan London Project.

41

London Quakers Property Trust

Notes to the financial statements

For the year ended 31 December 2020

The charity is a company limited by guarantee and has no share capital.

22 Capital commitments

Forest Hill Meeting House - flats development

In March 2020 a letter of intent was issued to contractors to carry out a refurbishment project at Forest Hill Meeting House which includes creating three flats in the upper stories. This project has been in development for a number of years. The main contract is let for £766,453 and will be on site for ten months. There was some delay to the works during the Covid lockdowns. Completion expected in April 2021.

Other capital commitments relating to ongoing quinquennial maintenance work amounted to £97,835.

42