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2024-03-31-accounts

CHARITY NUMBER 1159795

THE HARROW MISSION

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2024

Haines Watts Old Station House Newport Street Swindon SN1 3DU

Tel 01793 533838

3744588_1

THE HARROW MISSION

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2024

CONTENTS Page
Officers and Financial Advisers 1
Report of the Charity Trustees 2-4
Independent Auditors’ Report 5-7
Statement of Financial Activities 8
Balance Sheet 9
Notes to the Financial Statements 10-15

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THE HARROW MISSION

PAGE 1

OFFICERS AND FINANCIAL ADVISERS

EXECUTIVE COMMITTEE:

Trustees: Andrew Wauchope Chairman Edward Buxton Kevin Gilbert Nick Moss Alastair Land Alexander Trotter Honorary Secretary: Rosalind Oxley ADMINISTRATIVE OFFICE: Old Station House Station Approach Newport Street Swindon, Wilts SN1 3DU BANKERS: CAF Bank Limited 25 Kings Hill West Malling Kent ME19 4JQ INVESTMENT MANAGERS: CCLA Investment Management Limited Senator House 85 Queen Victoria Street London EC4V 4ET AUDITORS: Haines Watts Old Station House Station Approach Newport Street Swindon, Wilts SN1 3DU CHARITY REGISTRATION NUMBER: 1159795

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THE HARROW MISSION

REPORT OF THE CHARITY TRUSTEES

FOR THE YEAR ENDED 31 MARCH 2024

Introduction

The Trustees present their report and financial statements for the year ended 31 March 2024. The financial statements comply with the Charities Act 2011, Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015).

The Charity is a Charitable Incorporated Organisation (CIO) in the name of the Harrow Mission (Registered Charity No. 1159795) having assumed all of the assets and liabilities of the predecessor charity (registered charity no. 264219) (the “Original Charity”) with effect from 1 April 2015.

Trustees, Officers and Advisers

These are set out on page 1. The Trustees received no remuneration for their services.

Objects

The objects of the Original Charity as originally constituted were the advancement of religion and other charitable purposes for the benefit of the Parish of Holy Trinity, Latimer Road, established by an Order of Her Majesty in Council dated 12 August 1885. The Mission’s direct association with the Parish of Holy Trinity ended on 1 January 1940.

The objects of the CIO are the promotion of any charitable purpose for the benefit of the inhabitants of Greater London (“the area of benefit”) and in particular the advancement of education, the protection of health and the relief of poverty, distress and sickness, the promotion of racial harmony and the provision of recreation and leisure time occupations for the purpose of promoting social welfare, the spiritual, social, moral and physical well-being of the youth of the area of benefit.

In the Trustees’ opinion the Charity’s objectives and grant making policies are demonstrably for the public benefit and the Trustees have regard to the Charity Commission guidance in making their decisions.

Organisation

The day-to-day affairs of the Charity are under the control of the Trustees. The Secretary is responsible for the day-to-day administration of the Charity and its assets and the organisation of the Trustees’ meetings.

The Trustees have long experience of being a charity trustee and of the voluntary sector. New trustees are appointed by the Trustees, who select candidates with the relevant skills and experience to compliment those of the continuing Trustees. When new Trustees are selected, they are given an introduction to the work of the Charity, its strategy and operational policies and provided with the information they need to fulfil their roles, including information about the role of a charity trustee and charity law.

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THE HARROW MISSION

REPORT OF THE CHARITY TRUSTEES

FOR THE YEAR ENDED 31 MARCH 2024 (continued)

Policy

The Original Charity was established, by subscriptions given by old boys of Harrow School, as a Christian mission. Over the subsequent years the Original Charity, and now its successor the CIO, has sponsored, and will continue to sponsor, a number of different activities based on the premises that it owns in Freston Road W10 for the benefit of the local community. These premises are occupied under formal leases by The Harrow Club, the Octavia Foundation and Catch 22.

The Charity seeks to make grants which are of direct benefit to the local community through the support of these, and other voluntary organisations, which provide services and opportunities to the members of the local community that are consistent with the principles of the Charity’s objects and compliment the activities of the organisations occupying the Charity’s buildings.

The Financial Results and Resources

The Charity’s investments produced a positive total return, after fees and including new invested monies, of £588,772 in the year. The increase in value of the investment funds, including the Charities Deposit Fund, was £572,068 from £5,483,710 to £6,055,778.

The value of the Capital Fund increased from £6,814,561 to £7,241,833 as a result of the net profit of £427,272 which reflected a gain on investments, after revaluation of investments to market value, less an unrealised loss on the investment property valuation of £60,000 and property repairs.

Total incoming resources increased by £30,237 to £326,296 (2022-23: £296,059). The surplus in the Income Fund in the year was £102,200 resulting in an increase in the income fund from £397,130 at 31 March 2023 to £499,330 at 31 March 2024.

There is no change in value of the designated fund which remains at £50,000 (2022-23: £50,000).

All funds are unrestricted at the year end including the Designated Fund.

The investment policy is to manage the assets in the Capital Fund on a total return basis to produce a return of CPI+4% on a rolling four-year average basis.

In the year the Charity made grants of £200,302 (2023: £165,000).

Reserves policy

The Capital Fund derives from the subscriptions raised in 1885 to establish the Original Charity to acquire land to enable the Original Charity to conduct its activities. The land acquired whether by purchase or donation was not permanent endowment but expendable endowment for the long-term benefit of the beneficiaries. Where such properties have been sold, the proceeds are held for investment in the Capital Fund. The Trustees seek to preserve the real value of the Capital Fund by limiting expenditure on grants, including provision for the maintenance of the Charity's properties, to the net incoming resources.

In the year ended 31 March 2021 the trustees agreed to establish a designated fund of £50,000 for the maintenance and improvement of the 19[th] century listed buildings which it owns. There is no change in value of the designated fund which remained at £50,000 (2023-24: £50,000)

Risk Identification

The Trustees have considered the risks the Charity faces and believe these to be the risks of fraud, poor investment performance and significant damage to or failure of the Charity’s buildings to meet the standards required for their use.

The Trustees consider variability of investment returns on the Capital Fund constitute the Charity’s major financial risk. This is mitigated by retaining expert investment managers and having a diversified investment portfolio with performance monitored on a regular basis.

Risk of fraud is mitigated by ensuring that donations are made only to registered charities.

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THE HARROW MISSION

REPORT OF THE CHARITY TRUSTEES

FOR THE YEAR ENDED 31 MARCH 2024 (continued)

The property risk is mitigated by appropriate insurance and making proper provision for the maintenance and preservation of the buildings to ensure that they are fit for purpose for which the Designated Fund has been established.

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).

Law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of the CIO’s affairs and of the incoming resources and application of resources of the charity for the year. In preparing these financial statements, the trustees are required to:

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 Financial Reporting Standard (FRS 102) and the provisions of the trust deed. They are also responsible for safeguarding the assets of the CIO and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

Approved by the Trustees on

and signed on their behalf by: Andrew Wauchope

Chairman Date

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THE HARROW MISSION

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INDEPENDENT AUDITORS’ REPORT

TO THE TRUSTEES OF THE HARROW MISSION

Opinion

We have audited the financial statements of The Harrow Mission (the ‘charity’) for the year ended 31 March 2024 which comprise The Statement of Financial Activities, Balance Sheet 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 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the trustees annual report[2] , other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report[2] . 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.

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

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INDEPENDENT AUDITORS’ REPORT

TO THE TRUSTEES OF THE HARROW MISSION

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:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 4, 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. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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

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THE HARROW MISSION INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF THE HARROW MISSION

PAGE 7

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 non-compliance. 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: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards-andguidance-for-auditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-for-audit.aspx. This description forms part of our auditor’s report.

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.

Haines Watts Chartered Accountants and Statutory Auditor Old Station House Station Approach Newport Street SWINDON Wilts SN1 3DU

19 November Date…………………………………2024

Haines Watts is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

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THE HARROW MISSION

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 MARCH 2024

Note
Incoming Resources
Net investment income
Property Investments
Other Income
Total
Resources Expended
Raising funds
3
Charitable activities
4
Total expenditure
Net Income/(Expenditure)
Net gain / (loss) onn
investments
Property valuation Loss
Transfer between funds
Net movements in funds
Balance brought forward
Balance at 31 March 2024

Capital
Fund
£
Designated
Fund
£
Income
Fund
£
Total
2023-24
£
Total
2022-23
£
-
-
165,578
165,578
156,736
-
-
159,221
159,221
138,989
-
-
1,497
1,497
334
-
-
326,296
326,296
296,059
1,500
-
21,344
22,844
22,167
-
-
202,752
202,752
172,570
1,500
-
224,096
225,596
194,737
(1,500)
-
102,200
100,700
101,322
488,772
-
-
488,772
(208,457)
(60,000)
-
-
(60,000)
(130,000)
-
-
-
-
-
427,272
-
102,200
529,472
(237,135)
6,814,561
50,000
397,130
7,261,691
7,498,826
7,241,833
50,000
499,330
7,791,163
7,261,691

There are no recognised gains and losses other than those passing through the Statement of Financial Activities. The accounting policies and notes on pages 10 to 15 form part of the Financial Statements.

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THE HARROW MISSION

BALANCE SHEET

AS AT 31 MARCH 2024

Note 2024 2023
£ £
Fixed assets
Tangible Fixed Assets 6 1,627,814 1,687,814
Investments 7 6,055,778 5,483,710
7,683,592 7,171,524
Current assets
Cash at bank 109,976 65,285
Debtors 8 74,710 71,712
184,686 136,997
Current Liabilities
Creditors falling due within 9 (70,223) (39,077)
one year
Net Current Assets 114,463 97,920
7,798,055 7,269,444
Creditors
Amounts falling due after onee
10
10 6,892 6,892 7,753
year
Total Net Assets 7,791,163 7,261,691
Capital Fund 7,241,833 6,814,561
Designated Fund 50,000 50,000
Income Fund 499,330 397,130
Total Funds 7,791,163 7,261,691

The financial statements were approved by the Trustees on and signed on their behalf by Andrew Wauchope

Date

The accounting policies and notes on pages 10 to 15 form part of the Financial Statements.

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THE HARROW MISSION

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2024

1. ACCOUNTING POLICIES

1.1 Accounting Convention

These financial statements have been prepared in compliance with FRS 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland, the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Charities SORP (FRS 102)) and the Charities Act 2011.

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.

The accounts are drawn up on the historical cost accounting basis except for investments held as fixed assets and Investment properties. The financial statements are prepared in sterling, which is the functional currency of the Charity and is rounded to the nearest £.

1.2 Tangible Fixed Assets and Depreciation

Tangible fixed assets are stated at cost or valuation less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, except that no depreciation is provided on freehold land and buildings. It is the Charity’s policy to maintain freehold buildings in such condition that their value is not impaired by the passage of time. As a consequence any element of depreciation would, in the opinion of the Trustees, be immaterial and no provision has been made. Investment properties, which are revalued annually, are shown at their open market value on the last valuation date.

1.3 Investments

Investments held as fixed assets are stated at market value at the Balance Sheet date. Changes in market value are reflected in the Statement of Financial Activities.

1.4 Accounting for Separate Funds

The financial statements of a charity must differentiate between restricted and unrestricted funds. All the funds of the Charity are unrestricted.

1.5 Income

Investment income is accounted for when due for payment or in the case of the COIF Charities Funds in the period to which it relates. Grants and donations are accounted for when received. Rent is accounted for when receivable.

1.6 Debtors and creditors

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.

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1.7 Expenditure

Expenditure is accounted for on the accruals basis.

1.8 Taxation

As a registered charity the Charity is not liable to taxation on its investment income and gains or income and gains arising from activities in furtherance of its charitable objectives and charitable donations. Recovery of income tax is made on tax credits arising from investments income, from receipts under deeds of covenant and gift aid payments.

1.9 True and Fair View

By the nature of its principle activities, the Charity is a non-profit making organisation and therefore a Profit and Loss Account is not included in these financial statements, being replaced by a Statement of Financial Activities.

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THE HARROW MISSION

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2024 (continued)

2. ANALYSIS OF THE STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2023

Note
Incoming Resources
Net investment income
Property Investments
Other Income
Total
Resources Expended
Raising funds
3
Charitable activities
4
Total expenditure
Net Income/(Expenditure)
Net
gain
/
(loss)
onn
investments
Property valuation Gains
Transfer between funds
Net movements in funds
Balance brought forward
Balance at 31 March 2023
Year ended 31 March 2023
`
Capital
Fund
£
Designated
Fund
£
Income
Fund
£
Total
2022-23
£
-
-
156,736
156,736
-
-
138,989
138,989
-
-
334
334
-
-
296,059
296,059
3,120
-
19,047
22,167
-
-
172,570
172,570
3,120
-
191,617
194,737
(3,120)
-
104,442
101,322
(208,457)
-
-
(208,457)
(130,000)
-
-
(130,000)
-
-
-
-
(341,577)
-
104,442
(237,135)
7,156,138
50,000
292,688
7,498,826
6,814,561
50,000
397,130
7,261,691

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THE HARROW MISSION

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2024 (continued)

3.
COST OF GENERATING FUNDS
Capital Income 2023/24
Fund Fund Total
£ £ £
Property maintenance and repair 1,500 -
1,500
Buildings insurance - 21,344
21,344
__ _ _ _
1,500 21,344
22,844

4.
ANALYSIS OF CHARITABLE ACTIVITIES & SUPPORT COSTS
2023/24
Total
£
Grants payable
200,302
Support Costs (note 5)
2,450
_
Total
202,752
2022/2023
Total
£
3,120
19,047

22,167

2022/23
Total
£
165,000
7,570

172,570

5. SUPPORT COSTS & GOVERNANCE COSTS

A breakdown of support costs is shown in the table below. The allocation to Charitable Activities is shown in note 4.

Audit Fees
Professional Fees
Other expenses
Capital
Income
2023/24
2022/23
Fund
Fund
Total
Total
£
£
£
£
-
2,000
2,000
2,000
-
40
40
4,788
-
410
410
782
-
2,450
2,450
7,570

The trustees, who are also considered to be the Key Management Personnel, received no remuneration or any individual expenses incurred in providing services to the charity.

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THE HARROW MISSION

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2024 (continued)

6. TANGIBLE FIXED ASSETS (All used for Direct Charitable Purposes)

Freehold Land & Buildings

Brought forward 1 April 2023
Additions
Disposal at valuation
Unrealised loss on revaluation

Carried forward 31 March 2024

Historical book cost
At 31 March 2024
2023/24
£
1,687,814
-
-
(60,000)

1,627,814

345,686
2022/23
£
1,817,814
-
-
(130,000)
1,687,814

345,686

The tangible fixed assets represent the following freehold land and buildings owned by the charity:

The Properties at 187 and 189 Freston Road are leased on concessionary terms to Harrow Club and the Octavia Foundation respectively. The premium for the lease on 189 Freston Road is specified in note 10. Both properties are regarded as functional and are included at nominal value in the overall property valuation.

The property at 191 Freston Road is treated as an investment property, is leased at full market rate and was revalued as at 31 March 2024 at £1,560,000 by BNP Paribas Real Estate, Chartered Surveyors, in accordance with the valuation standards of the Royal Institute of Chartered Surveyors. The Trustees' policy is to revalue the property at sufficient regularity to ensure that the carrying value does not differ materially from the fair value at the reporting date.

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THE HARROW MISSION

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2024 (continued)

7. FIXED ASSET INVESTMENTS

The investment portfolio Is managed by CCLA Investments Management Limited.

Quoted Investments (all held in UK)

Quoted Investments (all held in UK)
2023/24 2022/23
£ £
Brought forward 1 April 2023 5,300,282 5,508,739
Additions at cost 100,000 -
Disposal proceeds - -
Realised gain/ (loss) on disposals - -
Unrealised (loss)/ gain on revaluation 488,772 (208,457)
_ _
Carried forward 31 March 2024
5,889,054

5,300,282
31 March 2024 31 March 2023
Historic Market Historic Market
Cost Value Cost Value
£ £ £ £
COIF Charities investment Fund (97.25%) 4,334,437 5,889,054
4,234,437
5,300,282
COIF Charities Deposit Fund ( 2.75%). 166,724 166,724 183,428 183,428
__ _ _ _
4,501,161 6,055,778 4,417,865 5,483,710

Investment management fees are charged within the COIF Funds and CCLA provide a statement of the costs and charges on a quarterly basis calculated in accordance with the Markets in Financial Instruments Directive (MiFID II). The total of such charges in the COIF Charities Funds in the year to March 2024 was £60,011 (2022-23 £61,195).

8. DEBTORS 2023/24 2022/23
£ £
Rent 35,810 33,466
Dividend receivable
38,900
38,246
74,710
71,712

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THE HARROW MISSION

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2024 (continued)

9. CREDITORS

9. CREDITORS
Amounts falling due within one year
2023/24 2022/23
£ £
Professional fee creditors & accruals 3,250 4,750
Premium on 189 Freston Road 861 861
Grants payable 30,302 -
Rent (deferred income)
35,810
33,466
70,223 39,077
The deferred income above will all be released in 24/25.
10. CREDITORS
Amounts falling due after one year
2023-24 2022-23
£ £
Deferred income – Premium on 189 Freston Road
6,892

7,753

On the grant of the 36-year lease of 189 Freston Road in 1997 a premium of £31,000 was received which is being released in equal instalments over the period of the lease at £861 per annum.

11. RELATED PARTIES

Kevin Gilbert, Alexander Trotter and Rosalind Oxley are trustees of the Harrow Club, to which the Mission leases 187 Freston Road. Rent charged for the year to the Club was £15,000 (2023: £10,000).

In addition, grants totally £200,302 (2023 £165,000) were given to the Harrow Club.

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