THE LONDON crry MISSION Company Number: 04284615 Charlty Number: 247186 Annual Report Flnanclal Statements for the year ended 31 December 2020 Contents 1. LETTER FROM THE CEO & CHAIRMAN 2. STRATEGIC REPORT 2A. PURPOSE & IMPAcr 2B. STRATEGIC FOCUS 2C. WHAT MArrERS TO US 2D. KEY EVENTS IN 2020 2E MISSIONAL AcfiviTIES 2F. PLANS FOR FUTURE YEARS- MINISTRY li 2G. FINANCIALSUSTAINABILITY 12 3. OPERATIONAL REPORT 14 3A. ENABUNG MISSION 14 38. FINANCIAL REVIEW 15 3C. COMPLIANCE 18 3D. PRINCIPAL RISKS AND UNCERTAINTIES 19 4. GOVERNANCE 21 4A. GOVERNANCE OF THE LONDON CITY MISSION 23 4B. SUBSIDIARY COMPANIES 23 4C. MANAGEMENT STRucfuRE 24 4D. PAY POLICY FOR SENIOR sfAFF 25 4E. DIRECTORS, RESPONS181LITIES 25 4F. AUDITORS 26 4G. DIRECTORS, STATEMENT 26 5. INDEPENDENT AUDITORS, REPORT 27 6. GROUP STATEMENT OF FINANCIAL ACTIVITIES 32 7. GROUP & PARENT BALANCE SHEET 34 . GROUP CASHFLOW STATEMENT 35 9. NOTES TO THE ACCOUNTS 36 REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2020 I. LEThER FROM THE CEO & CHAIRMAN 2020 was a year like no other. We were thrown to our knees as coronavirus Swept the city, the nation and the world. Yet, despite all the change, all the pain, all the difficulties, the Eospel remains the same and The London City Mission ILCMI has kept on serving an(1 sharing the good news of Jesus Wlth the pooresi and neediest in our city. Just as we dld through other pandemics like cholera in the 1840s and Spanish Flu after the First World War. At a time when so many ofus were confined to our homes for much ofthe year, LCM found new and creative ways to share the unchanging gospel message, and to encourage and equip churche5 across our city to reach out to their neighbours and those communitie5 least likety to know of the saving work of Jesus Christ. We have seen Ios5 and grief on a personal level, wlthin our thurches and across our city, and yet we remaln rooted in Christ and committed to Hi5 mi55ion in London. We have been working from home, setting up onllne Bible studies wlth local churches, home schoolin8 our children and competing for Internet bandwidth. Through it all we have remained rooted in Christ and committed to sharing the gospel alon8slde London's churches, so that people who are least likelv to have a Christian friend to tell them the truth about Christ hear the good news. We have experienced changes to the way we work on the field so that we can partner with more churches, equip more Christian5 and reach more people in our city for Christ. We have prayed and 50U8ht the Lord's dlrectlon, and whlle the majority of staff felt called to Stay, others have moved on, leavin8 as firm frlends of the Misslon, and yet In It all, we remaln rooted In Chrlst and steadfast for the gospel. As we are forced to our knees, as we cry out in pain, we come to the Lord and we pray. This is the best place for us to be. Humbled before hlm, recognising our weaknesses and failing5 and acknowled8inB his power and strength. In 2 Corinthlans 12.9, Poul writes: 'But he said to me, "My grace15 5ufficlent for you, for my power is made perfect In weakness.. Too often in modern society there is a deslre to be the greatest and the best, but the Lord says, blessed are the poor in spirit. LCM feels at home amonBSt the weak and the poor in spirSt. We have been very much aware of our dependence on God, and his grace in brin8in8 US through this year. We 8ive the Lord thanks and praise for all he has done and enabled through the Mlssion this year. We also want to Say a deep and heart-felt thank you to everyone who has prayed for us and those we have worked alon8slde this year, who made a generous financial 8ift at a time of great economl uncertalnty, and who gave their tlme to volunteer. GRA AM D MILLER, CHIEF EXECUTIVE 20 September 2021 MARK D HARDING, CHAIRMAN OF THE BOARD OF TRUSTEES 20 September 2021 REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2020 2. STRAIEGIC REPORT 2A. PURPOSE & IMPAcr At the heart of The London City Misslon ILCMI Is a deslre to share our gifts and experience In evangelism to serve a growing and flourishing church that is envisioned, equipped and enabled to share the love of God and good news of Jesus with the least reached communitie5 in London. We work with churches to see people who mi8ht otherwlse never hear the gospel, come to know salvation an fullness of life in Jesus Chrlst. The way we do that, and the people groups we reoch, change5 35 London changes, but sharlng the 80spel in word and deed with people least likely to hear it remains at the core of what we do, as it has done for 186 years. London Clty Mlsslon exlsts t0 Serve the Church In London in sharlng the love of God and the good news oAJe5U5 Chr15t wlth people In London who ure leost Ilkely to hear It. One in three people in London are unlikely to hear the gospel during thelr Ilfetlme unless we reach out to them. They are part of 'least reached, communltles and are unllkely to know a Christian who can share their faith and Invite them to church. Thls Includes those Ilvlng on the margins of soclety, people from other nation5, cultures and faiths, and those people1Sving on some of the poorest and m05t deprlved estates In the city. They are also the people most likely to have been impacted by coronavlrus - more likely to be front line workers, more Ilkely to have been Infected, and more Ilkely to have dled. The poorest in our city now face the economic wave of the pandemlc, If they are not olready In the mldst of It. Worklng as a catalyst alongslde the Church, tO8ether, by God's grace, our vislon is to raise up more workers for the haNest so that many more people from these least reached communltles In London can hear the Ilfe-glvin8 good news of Jesus Christ. This kind of urban ministry involves working in partnership with churches to develop respectful and caring relatlonshlp5 Wlth people from all kinds of back8rounds as good news, hope, and practical love is shared. Followlng Chrlst's example, many of those people we come alongside, may stru88le wlth economic, relationali physical, social, family or personal troubles. During the pandemic of 2020. LCM contlnued to be creative In ministry. Blble studles went onllne, community SUPPOrt was offered through leaflettin8 blocks of flats with phone numbers to call, and emergency food parcels were distributed. On average, we held Blble 5tudles wlth 287 least reached people every week, sharing the hope of the gospel Our missionaries supported an average 135 Isolated people every Tmeek in the hardest hit communities across London We handed out an average of 147 food packages every week to people who were homele55 or who faced financial difficultles. REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2020 ZB. STRATEGIC FOCUS LCM has an Increasingly effectlve strategy to help reach the one in three people In London communities, who are unlikely to hear the good news of Jesus Chrlst. Mlssionaries model relational evangelism, working alongside ordlnary Christians from London's churches, to inspire and equip them for mlsslon. LCM'S strategy Is focused on three core aspects: Sharing the gospel of Jesus Christ Worklng amongst London's least reached communltles, those people who are least likely to hear the 8ood news of Jesus Christ And dolng thls in partnership with local churches du￿￿1?*￿ tho i¢ip•l LONDON REACHED mlnlliry ' p*IMiihlpi,￿1ffhl1 ¢ Ino hth•l LCM seeks to dellver Its strate￿ by: Identifyin8 particular 8eo8raphic districts. and/or partlcular people groups, where the Bospel Is least Ilkely to be shared. Employlng and trainlng Chrlstlan evangellstS Wlth approprlate 8lfts In urban mlsslon and church mobilisation, and deploying them into those people groups or areas Building mobilisin8 relatlonshlps with the local church to Share the gospel wlth the least reached people In thelr communlty, evangelising alongside members of the church this might involve LCM staff working alonBsSde the church in prayer. research, plannln8 and evaluation, envlsionlng and equipping the congregatlon for mlsslon as well as dolng evangelistic activitie5 together. Taking every opportunlty to compasslonatety commend. explain and defend the Christlan messa8e of salvation through Jesus Christ. Encouraging and a551Stin8 those who respond posltively to this me55age to become actlve disciples, members of the caring church family of Jesus Christ You wlll be my wltnesses lft Jeru5olem and in olljudeo ond Samorla, ond to the end of the earth., Arts 1..8 REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2020 2C. WHAT mA￿ER5 TO US London needs Jesus and the ministry of LCM is to share the goo(1 news of lesu5 Christ with those In London unlikely to otherwise hear. We do this by workin8 alongside the Church in London, helping churches build bridges into least reached communitie5 in their local area. We are whole-hearted in this and yearn to see the10st Saved and changed into Christ's Ilkeness. LCM has a set of values which shape the way we work and relate to each other, to the Church and to the people and tommunitie5 we engage with. Our values are: Rooted In Chrlst - We are prayerfully dedicated to dolng God's will and living his way, according to his word. christ.llke love - We look not to our own interests but to the Interests of other5 because we are unlted as brothers and sI5ters in Christ. God-glorlfylng excellence- We pursue the best that we can be to glorify God and serve each other in all we do. Splrlt~Snsplred Courage and perseverance - We stand flrm, push through, and pay the price for the sake of Chrlst and the gospel. 2D. KEY EVENTS IN 2020 Coronavlru5 The coronavirus pandemlc has affected us all. But it's the marglnalised, people experiencing homelessness, older people, and those wlth health issues who were hardest hit in 2020. As the economic Impact of the pandemlc begins to be felt In even greater measure, it's those people in lower paid jobs. with less lob securlty, who will be impacted the hardest. As the coronaviru5 pandemic hit London, LCM continued to work with churches to share the hope that is found in Jesus Christ wlth those least likely to hear it. Our activitles adapted and changed, but the desire and urgency to share the gospel remained as steadfast as ever. During lockdown, mlssionaries continued to serve those in need by adapting food dislrlbutlon services to run In line wlth Government guidelines. Webber Street Day Centre for people who are homeless was able to provlde hot drinks and a meal for around 40-80 people a day. As demand Increased, we worked with some food bank5 to ensure food parcels were (lelivered to those who needed them most, and, thanks to the generosity of supporters, we've been able to provide emergency food vouchers for those who we are comlng alongslde, sharing the gospel in word and deed. People like Morgaret, a single mother who has three children under the uge of 11. Margaret hodn't worked since the flrst lockdown ond hod manoged to keep golng with benefits ond fLiod bank supplement5. However, whilst schoolingfrom home, one of her children accidentolly broke the shored computer they were using. The provision of emergencyfood voucher5 meant that thefomily could Still purchosefood whlle ollowing Morgoret to Spend moneyshe hod topurchose o second-hand computer, so the children were able to complete theirschoolwork. Helping people like Morgoret in practicol woys, provides gospel opportunAties whi15t building coring ond compossionate relotion5hips. REPORT OF THE DIRECTOR5 FOR THE YEAR ENDED 31 DECEMBER 2020 other missionaries set up online Bible studies and followed up with their contacts by phone or video call. Missionary Olly Sherwood shares how God has been at work through his online Bible studv "One man came not knowing Jesus but calling himself spiritual and a believer in God. One week in, I was sharing on Jesus being the way, truth and the life and how you can't truly accept the Father without accepting Jesus. He rang me afterwards and Started to Say to me that he was recognlsing that we don't Just see Jesu5 a5 a teacher but rather we see that he is God in flesh. A few hours later he messaged me again. I was over the moon to read. I have handed my will over to Jesus for the first time rather than a God of my own understanding." Church speaklng engagements have also continued vla Zoom, enabllng mi551onarles to connect with our supporter base, a vital source of prayer and encouragement for ministry. As missionaries worked even more closely with the church in London, they were able to support more and more churches to pray and share the gospel in word and deed with the least reached people In their communlties, at a time when the demands on many church leaders had drastically increased with the realStles of the pandemlc. Where government guidelines allowed, In-person actlvltle5 took place with social distancing, PPE and risk assessments makin8 all our lives more complicated but keeping Vltal gospel ministry living at a time when people desperately needed hope. We were pleased that LCM missionaries were recognised within government guidellnes as key workers and continued to be able to safely help the m05t vulnerable in our communitie5 at a tlme when many people had to stay home. A small number of staff were furloughed, largely for health or childcare reasons while schools were closed, and we appreclated the government furlough grant. Thanks to our faithful 5UPPOrters, we did, and continue to do, all we can to Serve practically and spirltually ot this time. If there was ever a tlme when London needs Jesus, St's now. Mlnlstry revlew and strategv In early 2019, the Board of LCM approved a new flve-year strate8y. Praise God for the 21,OCQ people who heard the gospel, often for the first tlme from a London Clty Missionary In the previous five years, along with the many who, by God's grace, responded. However, that left one in three people In London unllkely to have anyone to tell them the 8ood news- a total of 3 mlllion peoplel In London, that means we estimate one person every 30 minutes passes Into eternity without ever hearlng about the hope found in Jesus Christ- we urgently need to do much more to raise up more workers for the haNest. There are thousands of churches right across London, and hundreds of thousands of Bible-believlng Christians. With the right motivation, training and support. many of them can effectlvely share the 80spel with the least reached people of London. We recognise that to reach the three million people in London who are least likely to hear the good news of Jesu5, we need to be working alongside even more churthes to see everyday Christians evangeli5e the least reached communities in their local area. And so, we sought God about our work, REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2020 looking into scripture that holds particular si8nificante about the role of the evangelist in serving the church. '50 Christ himsellgave the opostle5 theprophets. the evan elists thepastors and teochers, to equip h15 peoplefor works of seNice. so that the ljody olchrist muy be bullt up untll we oll reoch unity in the fvlth and in the knowledge OA the Son OA God ond become mature, ottalnlng to the whole mettsure oAtheAullness oAChrist.' Ephesion$ 4..11-13 Followin8 a year-long ministry review, we made significant changes in 2020, both to the role of our missionaries and to the way we work with churches. For example, missionaries who were working wlthin one church have shifted thelr focus to work wlth a range of churches in their area. LCM recognlse that these changes, whi15t a positive step for seein8 more people In London reached with the gospel, could be difficult for some indivldual missionaries. The Mi551on has been grateful for the grace and perseverance shown by mission Staff through this time. LCM is always committed to supporting the calling of God on any missionary's life and provided a generous redundancy package for those who didn't feel called to 80 forward wlth the changes. A number of missionaries took the opportunity of voluntary redundancy to pursue ministry elsewhere, the overwhelmSng malorlty leaving as firm friend5 of the Mission. LCM has been recrultlng new Missionaries and Team Leaders since the start of 2021. We thank God that nine gifted and experienced gospel workers have already started and eight have been appointed to Start In September. Please pray for them as they seek to ralse the prayer and financial support needed to enable flourishin8 mlnlstries amongst people least likely to have heard of the life-changin8 truth about Jesus Christ. By God's grace, we've always adapted to London's changing landscape through hlslory, and we have done so agaln now. We will alway5 be committed to sharing the gospel, working in partnership with churche5 and going to the least, the last and the lost. We remaln committed to our call to glorify God and by his great mercy, see the salvation of many in London. As part of this refocused strategy, LCM made the declslon to repurpose varlous cafés the Mlssion had run. It Is important for us as a mission, not simply to keep doing what we've always done, but in the context of an ever-changing London, to prayerfully wei8h and evaluate everythlng we ¢Jo as stewards of an effective 8ospel ministry. Our aim 15 now to conlinue workin8 alongside local churche5 to make use of these buildings, which are still owned by LCM, to reach even more people who are marginallsed or living on the deprived estates In Tower Hamletswith the gospel. Our prayer Is that many of the previous ministrie5 will continue, flourish and grow, ond we are already seeing that happen with the EnElish classes we've equipped a local church to run and take the lead on. As a result of these changes to our cafes, and with the closure of the bookshop on Tower Brld8e Road, our trading costs for the year have fallen significantly. We are now able to use the resources we previously invested to resource 80spel minSstry elsewhere, which we believe will have an even greater overall impact. REPORT OF I"HE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2020 2E MISSIONAL AcfiviTIES LCM focuses on the following key missional actlvlties, as we partner with Churches in mission. Sendlng out mlsslonarles We send out missionaries, gifted and trained in urban mission, to work alongside London's churches to share the gospel with least reached communities. The outcome of our ministry results in increased dlverslty of the evangelical Church in London with greater representation from more UK communities either a5 members of churches, or in relationship with churches through community actlvitles that the church has proactively developed to bulld bridges. This intreased representation both strengthens the voice of the Church as she speaks to issues in wider society and helps the Church grow In understanding and love for our neighbour re8ardless of a8e, socio-economic status, religion, ethnicity or country of origln. During 2020. LCM continued to work alon8side local churches to minister in some of the most spiritually and economlcally deprived are35 of London. Within these communities, we seek to serve the Church In reaching out to people who are least Ilkely to have a Christian friend who can tell them about Jesus. For example, we work with.. young people at risk of gan8 culture and violence people who are living Sn poverty, sufferlng from mental Illness or experienclng long-term unemployment people in their later years who are housebound and Isolated, livlng In some of London's most deprlved communltles people on the move from other parts of world who are living in London people who are homeless, involved in sex work, in prlson or have a crlmlnal convlction people who come from different cultural and rellglous backgrounds As part of our 5-year strategy, LCM has identlfied areas of speclallsm wlthln least reached communities. We focus on.. Chlldren, youth and schools Councll estates and seniors Homele55 and marginali5ed Islam and other reli8ions Children outh and schools There are around two mllllon chlldren and young people in London. We estimate around half of them do not have a Christian f riend,. many of them are from Muslim back8rounds. We want to work together with churches to help reach them wlth the gospel, More than a third of London'5 children live in poverty- one 2020 survey of I,OCKI parents in London found 16% of their children had gone for at leasi a day without food . Many live fragmented, chaotic lives. Some are in gang5 or at risk of falling into gangs, and we know teens who carry knives and others who have tragically been stabbed and kllled. We long to see children and young people in London, who are least likely to have Christlan friends, encounter Jesus and live happy, healthy Ilves. iiwwm. aiyj REPORT 01 THE t)IRECTORS FOR THE YEAR ENDED 31 DECEMBER 2020 "Start chlldren off on the woy they should go. and even when they ore old they will not turn from It." Proverbs 22..6 We partner with churches to share the gospèl with London's least reached children and young people. Churches can ofien be Incredibly good at running activities for children of church families but involvin8 troubled thildren or those from other cultures in those activities can be more of a challenge. so church outreach activities may need to be Intentionally adapted. Thanks to the generosity of supporters, we can work in ministry together with local churche5, launching youth groups, golng into schools and startin8 up community activities like foodbanks. Everythin8 from after-school clubs and football tralnlng to toddler groups and summer camps, are In the mix- as long as they build relationships with young people and create relational opportunltles to share the gospel effectively. Durlng 2020 we adapted many of these artivltles to be run online or throu8h Christian activity packs given to young children unable to attend school in person. We 8Sve thanks to God that in one ministry, more teenagers from a local estate en8a8ed with the Bible 5tudie5 on Zoom than had come to them when they ran in person. Council estates and seniors Some of London's's least reached people Ilve on our citls estates. White worklng.class families are among those least likely to have a Christlan frlend as studie5 show churches are disproportionately fllled with unlversity graduates. We know that older people livin8 on estates often feel lonely and forgotten, many feelln8 unsafe when they leave thelr homes and becomlng Increasln8ly isolated as a result. We love reaching people on estates wlth the gospel of Jesus Christ and helplng London's churches to share the good news as they welcome them into fellowship. There is a huge opportunity to befrlend people of all ages on estates and our mlssionarie5 find a great openness to havin8 conversations about God and falth. Churches have a vital role to play In reachin8 communlties on their doorstep. As Christians, we can walk alongside people, share Ilfe tO8ether, and open up the beauty of the gospel message In life chan8ln8 ways. Since it was founded in 1835, LCM has vislted people in the community they are trying to reach, wlth team member5 calling on their neiBhbour5 to introduce themselves, gettlng to know resident5 and V15iting people Sn thelr homes. We have continued thls in Ilne wlth government guideline5 durln8 2020 and have equipped other churches to do the same. It has provided a Ilfeline for many who were shieldlng and an opportunity to connect people with a local 8ible-believing church, providing a phone number they can call If they need help with grocerles, collecting medication or someone to listen and pray with them in a time of 8reat difflculty. "Because we loved you 50 much, we were dellohted to shore wlth you not only the gospel of God but our lives Q5 well." l Thessalonlan$ 2..8 Homeless and mar inalised Thanks to the generosity of ihose who partner with u5 in the gospel, we can minister to people who are homeless, or who are involved in the sex industry, prisoners, former prlsoners, people struggling with addictions and those with mental health challenges. These are often the people with deeplv broken lives, on the margins of society, the most vulnerable and overlooked. They are among the people in London least reached with the gospel. REPORI. OF T'HE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2020 According to the Combined Homelessness and Information Network ICHAINI there were 11,018 people who slept rough in London during April 2020- March 20212 almost twice as many as ten years ago LCM Cares for and loves people who are homeless, sharing the gospel in word and deed. Durin8 2020 we were able to adapt our ministries at our day centre at Waterloo to continue to provide much needed and vital servlces during the coronavirus pandemic, as well as providing opportunities for people to continue to hear of God's grace to them in Jesus Christ. We offer practical and relational carei provide hot food and drink, help to signpost 8ue5ts to other services. Some of our missionarles have been running outdoor Bible studles with local churches for people who are homeless. Often, the lives of people who are homeless and marginalised are chaotic and damaging. But we follow Jesus, example, to engage respectfully, personally and compassionately with people who can so often be overlooked. We provide relief to those in need at Webber Street Day Centre, where people who are homeless receive food, friendship and the good news of Jesus. °For I wos hungry and you gave meAood, I was thlrsty and you gave me drlnl I wos 4 5tranqer and you welcomed me" {Motthew 25.'35J LCM partners with churches to lovingly share the grace of Christ with people who are homeless and marglnalised. It can be dauntlng to know where to even start with this kSnd of gospel ministry. With our experience, we can help churches develop or grow mlnistry with people who are homeless and mar8inallsed, and together take every opportunity to share the life-chan8ln8 8ood news of Jesus. We also work wlth churche5 through Hope Community Homes and The Corner House, The London Clty Mission accommodation pro8rammes for people trylng to Eet off the streets. We want to give those who are ready to move away from rough sleeping more than just a bed- we also want to 8ive them the opportunlty to change thelr Ilfestyle for good and, as Chrlstlans, we belleve that true life can only be found in knowing Jesus. Islam and other reli ions A significant number of LCM team works wlth people from a range of diverse religlons, culiures, ethnlcities, and nationallties. There are more than a million Muslims in London, includln8 many from nations where the Chrlstlan gospel is not officially allowed to be preached. We want to sensitively share the good news of the true Jesus with our Musllm nei8hbours and we praise God for H15 grace in the Ilves of those who flnd Chr15t and for the relationships we help churches build wlth Musllm communities In their area. For decade5, we have crossed divides and reached out irb love to Musllms and those of other faiths. As we continue to do this, we have plenty of experience and wisdom to share. We love looking at ways we can work with local churches to develop and establish such minlstry, so together we can see God's grace make an eternal difference to people's lives. "l am the way and the tmth ond the IIAe. No one comes to the Fatherexcept through me."John 14.,6 We partner with churches to share the gospel with Muslims and people of other religions. We do this by providing resources, training people in local churches to sensitively reach out with respect, care and wisdom. and helping to develop and establish ministry projecls. We can help churches start activities like language classes, Christian-musllm dlscussion evenings an(1 high street book tables, where Christianity can be discussed with Muslims in a spirit of openness and love. REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2020 Partnershlp In m5sslon Thanks to the prayers and backing of supporters, LCM missionaries can build connections with local churches in areas of London where we know the largest communities of people live who are least likely to have heard the gospel. We seek to come alongside thurches, working together to identify ways to reach those people least Ilkely to hear the gospel in their area. The result could be any number of ministries started together- perhaps starting an evangelistic foodbank that seeks to share the good news along with providing much needed food supplles. During lockdown, this could have meant leafleting the local area with an offer of help for those who are shielding, running an online seeker5 course, or it could be hostin8 online after-school youth Broups for young people not Used to church, where they con learn how much Jesus loves them. We glve thanks for the many partnershSps LCM has wlth churche5 and organisations across the citv and beyond. We continue to build relationships and develop partnerships Wlth a variety of churches, networks and gospel organisatlons, as together we seek to reach out wlth the Eood new5 of Jes115 Christ. These include partnershSps in ministry on the ground, partnershlps Wltli churches we are equlpping in other ways, and partnerships with supporting churches. LCM Is working alongside local churches to make use of our operational Chrlstlan Centre bulldlngs, undertoking artive ministry to least reached communities. Repair costs for these Centres wa5 minimal In 2020 because of the Ilmited access and use of the buildlngs due to the pandemic. Dla5pora churches We are determined to see the gospel reach the areas of London where people are least Ilkely to hear it. Churches founded by and primarily made up of Chrlstians from another part of the world are often present In the least reached areas of London. For example, in a deprived area in Elephant and Castle, we flnd a body of Latln Amerlcan belSevers, or In Brixton there are many African churches. God has brought together a 8lobal church to reach a Blobal city. We pray that we would see more and more diaspora churches becomlng citle5 on a h511, equlpped to share the Eospel not only to their own communitie5, but within thelr local neighbourhoods as well, particularly wlth communltles where the gospel is not wldely heard. 'He determined the tlmes 5etfvr them and the exort plo¢es where they should Ilve. God dld thls so thot men would seek hlm and perhops reo¢h outfvr hlm andllnd hlm, Acts 17..26-27 We partner with diaspora churches, emboldening and equipping them to Share the gospel with the people yet to hear the 805pel in their local area. This could involve supporting them to start church services in dlfferent larbguages, connecting them with other local churches from other cultural backgrounds to do mission together, or training church members on outreach mlni5try. Equlpplng workers for the harvest LCM serves and equips the Church in London to reach out Into thelr communitles wlth the gospel. One way we do this is to share our experience and insiBht through our on-the-ground practical equipping sessions, training resources and courses which are desigrbed to equip Christians for evangelisti outreach in an urban context. We provide training to Chrlstians on urban mission, ranging from a one- day course in Practical Evangelism to studying for a two-year Graduate Diploma. Our training pro8rammes also provide education and training to young adults. Urban Pioneers is a specialised programme for people who are from the communities we are seeking to reach with the good new5 of Jesus. Pioneers may not have much formal education, may have En81ish as a second io REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2020 language, have no access to funds, or may even have a criminal record and 50 traditional routes into ministry would not be accessible for them. Thanks to the generosity of our partners, we can support and train Pioneers to develop outreach ministries in their own churches to help share the gospel wlth others. The programme combines classroom learning with practical experience to offer a holistic education in urban ministry. The scheme aims to raise up people from diverse backgrounds to play a valuable mlnistry role In urban churches and communities across London and beyond. Tralnlng our staff In the autumn of 2020, LCM put a comprehensive training programme in place to support field staff as they started thelr new roles mobilisin8 churches to share the Bospel with the least reached In London. LCM continued it5 programmes of training young adults Icity Vision), providin8 year-long opportunitie5 for mSs5ion Icity Challenge) and opportunltles for people experlenced in ministry and mission, who want to help grow and support gospel outreach in London, serying for a period of 1-2 years Iurban Trackl. These programmes finlshed earlier than planned in 2020 due to the pandemic. Wlth the changes lo the field, these pro8rammes have been put on hold for 2020121 while fSeld staff settle into their new roles. 2F. PLANS FOR FUTURE YEARS- MINISTRY 2020 was a year of global tragedy as the impact of coronavirus was felt right across the world. It was also a year of enforced change as church buildings shut and many of us had to work from home. Thls has resulted in a new paradigm for work, church and mission. London's communities and churches have all been Impacted by loss and change. 2020 was also the year LCM implemented its refreshed approach to ministry to align the way we operate io better support our vision to work alongside churches to reach more of the three milllon people in London who are least likely to know a Chrlstlan to introduce them to the good news of jesus Christ or to invite them to church. The field roles were revised and the ministrie5 we were involved in changed. In all of this, LCM has been able to Bet alongside churche5 and pray with local leaders for their communitie5. Mi55ionarie5 have been able to equip con8regatlons, mlnlsterinE alongslde them a5 they seek to respond to both the health and economic crises of the pandemic and reach out to the people who are lea51 likely to be reached with the gospel in their areas. And, by God's grace, we have seen people come to faith in Jesus Chrlst. In 2021 LCM began a project to review its processes, system5 and structures of office-based teams to better support field staff in their roles, Improve the way we work, and continue to align the Mission with our vislon, goals and value5. We recognise that to reach the three million people in London who are least Ilkely to hear the good news of Jesus, we need to be working alongside even more churches. We want to provide B￿ater opportunities for churches to partner with LCM in this vital task- for example, in establishing ministry on the ground, being equipped for mission, providing financial contributlons or praying alongside us. li REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2020 There are thousands of churches right across London, and hundreds of thousands of Bible-believing Christians. With the right motivation, tralnlng and support, each of them can effectively share the gospel with the least reached people of London. By God's grace, we want to be able to share the insights, experiences and learnlngs we have gained, and continue to 8ain, over decades of ministry in London's lèast reached communities. We are looking forward to developinB our communications to enable better Sharing of resources. equippin8 the church for outreath In London and beyond. We plan to do this by sharing more content wlth the wider evangelical church through Christian media platforms and speaklng at more churches, events and conferences. Sharin8 biblical insi8ht, storie5 of hope and models of effective ministry. inspiring the Church to reach out to those least likely to hear the good news of jesus. We highly value collaboration with others in the body of Christ and seek to share London-centric missiological research with the Church of London. Our approach is alwoys to be workin8 Wlth and learnlng from praciltioners in other organisatlons and churches as we seek to grow together 2G. FINANCIAL SUSTAINABILITY In previous years, Mlssion centres were built by LCM In areas where there was not an evangellcal church. As churches have sprung up across London, the mission now holds a limited number of propertie5 we no longer need for ministry. As a result of this we are either responslbly dlsposlng of those properties commercially or partnerin8 Wlth a church all8ned with our vision and values, which is seekln8 to benefit from the space. Thls Is releasing funds that can be then used to support vital gospel mlnistry, The properties we no lon8er use are generalty recognised as Investment propertles in our accounts. Steadlly disposing of these propertle5 means LCM can spend more than It recelves In donated income for a limited time. This is sustainable only while we invest in engaging with the wider evangelical church In supporting mission to those one lft three people in London otherwise unlikely to hear the good news of Jesus during their IlfetSme. In line wlth thls careful approach to financlal management, the LCM Board agreed a revlsed flnanclal sustainability objective in January 2021 to cover the next 10 years. The Mission Intends to.. "Steadily reduce Exce55 Investments and the Annual Cash Shortfall to approximately Nil by the mid-2030's" Excess investments are reBarded to be the total of all investments, includlng propertie5 no longer needed for ministry, less the reserves needed for the financial stability of the M i55ion. LCM intends to invest these fund5 in direct ministry, leading to an annual cash shortfall, made up of an operatin8 deficit and new ministry assets. The level of operatlng deficit will be finalised through the annual financial planning cycle each year but the long-term plan has been set. Underlying this financial objective is the principle of stewarding God's provision ILCM'S assets) to keep gospel ministry sustainable in the long term. In the medium-term, this means The London City Misson can generate cash from surplu5 investment properties and the development opportunities across its estate whilst in the 5hort-term debt 15 required to provide a liquidity buffer while transactions are in progress. 12 REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2020 The lon8-term flnanclal strategy requires an above inflation growth in donations18eneral or legacies) to reduce the cash shortfall. In the meantime, the cash shortfall wlll be funded from the significant sset values in The London City Misson's property resource5. This will enable operating costs to be maintained at their current level. The partnership of prayer and giving from new and existing supporters Is vltal to the ongoing sustainability of our work In sharing the gospel with those in London yet to hear and is increasingly important. The Benerosity of 5UPPOrters who provide for Bospel mlsslon in so many ways gifts, grants, fundraising and le8acies- are incredlbly Important to LCM This was reflected in the appointment of a Director of FundraSslng & Supporter Partnerships in 2020, who reports Into the Finance sub- committee. The trustees through the Property & Finance sub-committees oversee the dSsposal of propertie5 and assesses the asset values. This assessment is made largely from tenders but also on market feedback, professional advice, formal opinlons received from local authority plannin8 departments through the pre-appllcation proces5 ar)d the potential for urban mlssion led by LCM and its partners in developed sites. LCM'5 clear objective is to Steward the resources provided by God, so that the good news of Jesus can continue to be shared In London for the foreseeable future. In conclusion, we pray that over the next few years, as we continue to faithfully take the good news out onto the streets and into the homes of those people least likely to hear about Jesus Chrlst, the Mission will engage with even more churches across the city, envisionin8 and equlpping them. Together, more workers will be raised up for the haNest and the 8Q5pel can be effectively shared wlth even more people. 13 REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 20ZO 3. OPERATIONAL REPORT 3A. ENABLING MISSION Fundraising and Supporter Partnershlps Sharing our hope in Christ with the estimated one in three people in London least likely to hear the good news would not be possible wlthout faithful gospel partners who generously enable misslon in London throu8h their 8ivin8 and prayers. We are hugely grateful for every supporter who partners wlth us an(J we praise God and thank our supporters for the changed lives we are prlvileged to witness as a result. As our staff directly engage In mission, our sUPPOrters are a vltal part of the team alongside us as they pray, give and volunteer, and we deeply value every partnership we have. We are grateful for God's provision through the faithfulness of those 8ospel partners, who stood with us during a difficult year for many, to share the gospel with those in London yet to hear. Donation income in 2020 totalled £2.36m, a decrease of £0.09m from the year before. Through the great kindness of those speclal supporters who remembered gospel misslon In thelr will, our legacy income was £1.2m (down from £1.6m in 20191. We thank God for provlding for mission in London through a global pandemlc, both from faithful lon8- term supporters and new supporters who partnered wlth u5 in mission last year when they made their first gift. It was a Breat encouragement to have so many supporters joln us for our first online sleepout, where people slept outside near their homes raisin8 funds for people cared for by the LCM homeless mlnlstry, Webber Street. The London Clty Mlssion ILCMI staff were grateful to have the opportunlty to speak onllne In hundreds of churches across the country. We also enjoyed hosting special events online, such as our Thanksgiving SeNice, whlch was a great encouragement as almost two thousand people gathered to pralse God. During 2020 the fundraisinB team wa5 restructured with the purpose of keeping Bospel mlnlstry to the least reached 5UStalnable by seekin8 to develop more gospel partnerships, growin8 donatlon Income by an additional Elm from 2019 levels by 2024. This resulted in a number of new role5 for whlch 5Ultable candidates were all recruited by mid-2021, at which point the new fundrai5in8 Strate8y WIII start to be fully implemented. Communlcatlons In 2020, LCM contlnued to envision and share the need for this Vltal 8ospel ministry with supporters and the wlder Church In London. We did thls by: Producing a quorterly magazine, Chunging london, which highlights the need for ministry and the impact that God is having Ill these spiritually deprived communities. PublishinE various prayer resources, including a quarterly prayer (liary, Together, which enables sUPPOrters to pray specifically for our team, contacts, churche5 and communities. Maintaining an active and engagin8 presence on our digital platforms- mainly on our website Ilcm.org.ukl and our social media channels IFacebook, Twitter, Instagram and YouTubel, where we share opportunlties to get involved, ideas to insplre churches for mission, and resources to equip them. 14 REPORT OF THE DIRECTOR5 FOR THE YEAR ENDED 31 DECEMBER 2020 Implementing changes to the roles within the team to ensure they 5UPPOrt the strategic objectives of the Mission, with a greater focu5 on digital marketing and content creation. Refreshlng LCM'S branding to ensure it supports and reflects the strategy. Developing new digital engagement events, such as a vSdeo¢ast series through the pandemic and online prayer meetings Wlth missionaries 38. FINANCIAL REVIEW Results for the year The total income figure is E5.8m compared wlth £7.4m in 2019. Donation income decreased by le5S than £O.Im to £2.4m In 20201É2.4m in 20191. The legacy income of £1.2m in 20201£1.6m in 20191 was in line with the long-term average and reflerts the reduced capacity of probate offices. Rental, Investment and tradin8 income of £1.4m fell l£1.7m in 20191 largely from the closure of Cafés and as underused propertles were sold. LCM received £0.2m in new government grants from the Furlough scheme ICJRSI for the first time in 2020. Flnally, the 8ain on disposal of operational properties sold during the year was significantly lower at £0.8m (compared with El.5m in 20191. To sustain LCM'S mlnistry in the long run, these gains are largely invested in replacement propertles for staff working in London. Total expenditure of £9.9m in 2020 (compared with £10.5m in 20191 returned to normal levels followlng the costs to identify the potential value in LCM'S properties I£0.2ml in 2020. A5 planned, thls resulted in an operating deficlt of £4.Om in 2020, compared to £3.Im in 2019. LCM has planned for operatlng deflclts and thelr related annual cash shoTtfalls, funded by the reduction In excess Investments mostly properties, to contlnue. During 2020 LCM reached agreement on the development of two other properties, an existlng investment property and an operational property. In addition, LCM received offers on other operational properties. These operational propertles now meet the criteria to be classified as investment properties and therefore have been revalued to market value. The revaluation of properties provided an unrealised gain of £3.7m whilst the value of all investments increased by £3.5m Icompared to £9.8m In 20191. Slmilar investment property gains are expected as further contracts are flnalised and planning permission granted. In 2020, the Deflned Beneflt Pension scheme reported an actuarlal loss of £O.Im compared to a loss of £0.4m in 2019. All these factors combine to a small fall In funds available durlng the year of £0.6m, made up of an operating deficit1£4.Oml and actuarial loss I£O.Iml, offset by property & investment gains1£3.5ml. Meanwhile, LCM'S cash balances have increased to £0,7m. Property Over many decades, through the gener051ty of supporters, the Lord has provided LCM with properties for use in serving the gospel. Some of these are used to house current and retired missionaries, others are used as bases for mi5sional activity, some are venues for churches, and some provide a rental or investment intome which is invested in ministry across London. 15 REPORT OF THE DIREcfoRS FOR THE YEAR ENDED 31 DECEMBER 2020 In 2020, two new propertles were purchased for missionaries. whllst four underused residential properties and two centres no longer directly used for LCM ministry were sold to fund the planned cash shortfall. In 2020, over 20 propertie5 generated a wide range of offers to purchase and / or develop these sites for LCM. Negotiations have continued throu8hout the yèar and where necessary sites have been re- marketed. The overall value of offers has not materially changed since they were first marketed. This programme is part of LCM 5tewardin8 the resources that God has provided as welook to steadilv reduce excess Investments. Starting In late 2021, the Ministry review will require the sale of approximately 20 residential properiles which will be replaced with nearly 20 new properties. This is a significant change for LCM which will take several years to fully Implement. Meanwhile the sale of investment properties and development rights will continue. We expect to retaln new centre space at nearly half of these development5 either rented out as investments or used for direct ministry. LCM'S intentional approach is to operate with a steadlly reduclng deficit, whlch results in an annual cash shortfall. Supported by careful stewardship of our assets, reducinB the emphasis on propertv assels over Ilme. Thls will provide for investment In mlnistry for a finite perlod. The success of thls plan, which will See a gradual reduction in the operatlng deficit, is only possible alongside o consistent level of funding from le8acies and an above inflatlon growth in gerberal donatlons, arisln8 both from LCM'S faithful supporters and an expanslon of the supporter base. Inve5tfflents The value of LCM'S investment portfolio was unchanged in 2020 at £32.4m. The Board agreed to designate £19.5m of investments Into a new Ministry Sustalnabllity fund to better reflect the lon8-term financial sustair)ability objective. The trustees antlcipate using future investment gains in the medlum term to elther fund minlstry In the year they are recognised or to designate them to this fund. Reserves and debt pollcy General reserves at the end of 2020 were £8.3m before provision for the pension deflclt of <£O.Im (compared to £9.8m before provision for the pension deficlt of £0.3m at the end of 20191. Under the rlsk a(ljusted general reSe￿e policy, the Board revlewed the target in 2020 and decided to keep It unchanged at between £4.5m and £5.5m. The trustees expect the 2021 & 2022 cash shortfa115 to reduce general reserves to the target range. They intend to designate any other exces5 to the Mlnlstry Sustainability Fund in line with the long-term financial sustainability objective. The Board ha5 authorised the raising of up to £IOm of debt to secure funding for the planned cash shortfall. It expects any debt to be paid back from planned asset disposals no later than the end of 2028. LCM has arranged a £2m facility of operatlon31 debt secured against 3 properties of which £lm was drawn in 2020 and another £lm in early 2021. Additional facilities will be sought in 2021. Debt facilities have the effect of significantly improving the liquSdity of the asset base and therefore the general reserve. Penslon provlslon The Defined Benefit scheme closed to all new and existing employees in 2006. In 2020, LCM provided funds of £0.6m to the scheme to meet long-term liabilities. There is a potential cost of extinguishing the pension deficit and the Board has designated £3.5m1£5.Im in 20191 to cover this risk. In 2021, 16 REPORT OF THE DIRECTOR5 FOR THE YEAR ENDED 31 DECEMBER 2020 the trustees are seeking advisers to obtain quotations from the market for a bulk annuity purchase. No quotations have been received or purchase contracts entered Into at this time. Cash and Golng Concern LCM continue5 to hold enough cash to cover month-to-month expenses for the foreseeable future. From time to time LCM can use funds held as equities and has a debt facility in place. In 2021, LCM expects to extend this facilityand seek mortgage offers on new property purchases to provide liquidity. In addition, the sales of underused properties and development rights are expected to provide more than £2m in 2021 and up to £20m over the next couple of years to fund the planned operating deficit. At the end of 2020, £3m of these receipts were under contracts that are subject to receiving planning permission. The emer8ence of coronavlrus in early 2020 had a slgnlflcant impact on the UK and LCM. Financiallv, the most significant impact was the delay to the legal process of selling properties. Equity investments, which are held wlth the expectation of longer-term growth, fell significantly but have since recovered. We are maklng use of government support Includlng the Job protection scheme where it has not been possible to continue existin8 mlnSstries. In additlon, we have released funds for the relief of the needy. LCM received significant gifts in Immediate response to the coronavlrus pandemlc from our supporters with a limited fall In total donation income durlng 2020 compared to 2019. Once the full economic Impact of the pandemic is reallsed, the need for the Mlsslon to work amongst the least reached of London is expected to increase. We expect to be able to partner with the church In London, our existlng and new supporters in thls growln8 mlnistry need. The Board of trustee5 confirms that, In its view, there are sufficient liquid assets wlthin LCM for it to be consldered a goln8 concern desplte the impact of the coronavirus pandemic. Retlrement houslng LCM contlnues to provide retirement hou51ng for those missionaries who, by 2012, had achSeved 20 year5, service with the Mission. Whlle we no longer offer this to more recently employed m1555onaries, the support of current retirees remalns an Important functlon of our property team'5 workload. Chrlstlan Cenlre developments and dlsposals Following the marketing of over 20 properties in 2020 and the Identlflcatlon of potential development partners- two properties have been sold, three are under contract , six are under offer, a further ten have attracted offers in line with expectations and two more are being actively considered for development. We are committed to realising the value in these sites for missional purposes In the medium to long-term. Each project will fall into one of the followlng groups: Disposal to reallse value Dispose to a church or church partner Develop for a church partner Development for LCM ministry Thi5 gain is a result of God's provision over decades and will take several years to be converted into cash. The contlnued and growing financial support from our existin8 and new supporters will ensure 17 REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2020 that these gains support the work of the Mission into the middle of the 2030's and not just for a few vears. 3C. COMPLIANCE Statement on Fundralslng The London City Mission greatly values the support it receives in so many ways from so many different people and organisations- we could not fulfil our objectives without the financial and prayer support that we receive from you each year. Supporters are vital partners in this ministry, so we seek to be grateful, respectful, and relatitsnal in all our interactions. Durlng 2020 the fundraising team was restructured wlth the purpose of keeping gospel mlnislry to the least reached sustainable by seeking to develop more Bospel partnerships, growing donation income by an additional £lm from 2019 levels by 2024. Thls resulted In several new role5 whlch were all recruited to by mid-2021 at whlch point the new fundralsing strategy will start to be fullv implemented. We prioritise thanklng donors as soon as posslble and seek to communlcole the Impact of donations to supporter5 through our letters, magazines, e-new51etters, and bespoke publications. We build trust with supporters by being honest and transparent in our communications. Indivlduals must opt in to receive communlcatlons from LCM unless they reasonably meet the crlterla of legltimate inteTest, where there 15 clear evidence of their recent interest in our work. We provide opportunities for individuals to opt out from any of our communlcations in clear and easy ways. Our records show that we received no complalnts about our fundraising from supporters or members of ihe public in 2020. We did not use commerclal fundraisers in 2020- all our fundraising was carrled out by LCM employees who sign up to our Statement of Faith and Conduct and seek to adhere to the Fundralsing Promise. We occaslonally use the seNice5 of trusted external consultants who align with our charitable purposes and values. LCM Ss reglstered with the Fundrai5in8 Regulator and we pay the fundraising levy. Statement on Dats Protectlon LCM 15 committed to ensuring that all personal data is kept safe and used in a way that Indlvlduals are aware of and would reasonably expect. We aim to be clear about how we use all personal data and to glve Indlviduals a cholce of what they would like to receive from us, whlch channels they receive this through and how often. We always seek to provide clear and easy ways for people to stop recelvlng communications from us. We have a Privacy and Fair Use Polity Ihtt www.lcm.or .uk rivac and Continue to upgrade our IT network and practltes to ensure all personal dala is secure, in line with industry Standards and regulations. Publlc Beneflt The Trustees of LCM confirm that they have had regard to the guldance contained In the Charity Commission's General Guidance orb Public Benefit when reviewing LCM'5 aims ond objectives and in planning future activlties. 18 REPORT OF THE DIRECTOR5 FOR THE YEAR ENDED 31 DECEMBER 2020 3D. PRINCIPAL RISKS AND UNCERTAINTIES Durin8 2020, the Board gave attention to multiple risks related to all operations, and in particular those with a high level of risk or related to the pandemic. This risk register is regularly reviewed and updated. Below are the key risk5 identified in 2020 and how LCM Is managing them. Flnancial rlsks Growlng funding and income Our heart is to work alon851de the local church to see everyone in London given the opportunity to respond to the gospel during their lifetime. To begin to achieve this, we need people who will stand with us in prayer and giving to keep this vital minlstry 5UStalnable. For our current plans to succeed, we require investment In identifying and welcoming new sUPPOrters, Increased generosity from existing supporters and the successful sale of investment propertles no longer required for operational mlnistry. Clear communication of the need for increased financial support is crucial. A new fundraising strategy was set out In 2020, wlth new roles establlshed and filled in early 202 1 to support this strategy and Identlfy growth opportunitie5. In particular, thSs strate8y Is focused on developing new gospel partnership5 Wlth evangelical Christians. There15 a risk that If there was a long-term downturn In the London property market, the recelpts from sales of our properties would be adversely affected, as would the tlming of those sales. The spread of the disposal programme and the use of agents to monltor the market and adjust priorities accordingly reduces the r15k of material changes to the overall income. Flnanclal controls around the use of LCM'S assets Various measures are in place to mitigale the rlsk of accidental mSsuse of LCM assets, such as the use of phased budgets, segregation of duties, dual authorisation for cheque and BACS payments, receipts policy for 85ft5, daily banking and reconciliations. Controls are re8ularly revlewed wlth additional controls belng consldered a5 required or advised. Peo le-rel ted rlsks Collaborat5ve & effectlve workln8 The leadershlp team of LCM is seekinB to encourage greater cross-functional and collaborative working both from within the leadership team and throughout the or8anisatlon. We are working on establishing multi-disciplinary forums to share informatlon, develop mode15 of ministry to least reached communities, and ideas to improve the way we engage with churches. In 2021 we started projects to fully Integrate our databases and to review our support processes, SyStem5 and structures to better Support field staff as they engage with and mobillse churches for mi55ion to the least reached communities. In addition, there are occasiona5 leadership team review sesslons, away days and opportunities for the Board of Trustees to ask questions and challenge the leadership team. To encourage more effectwe working, we are providing greater role clarity across the organlsation ar)d greater line of Sight through the appraisal proce55 between individual goals and organisational 19 REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2020 objectives. There is 3150 an agreed Decision Matrix in place re8ardin8 key decisions rese￿ed for the Board, Sub Committee5 and Leadership Team. Health & wellbeing of staff Therels a risk that staff rely too much on their own strength rather than on God. To help avold this, there are lots of opportunities to pray as part of LCM, whether in project or functional team5, weekly whole-organisation prayer times, weekly leadership team prayer meetlngs, monthly whole- organisation team days and the annual week of prayer at the start of the year. As an orBanisation driven by a passion for reaching the lost, there is a risk of burnout of staff if LCM takes on more actlvlty than It has capacity for. Thls could lead to an increase in staff sickness and turnover, a reduction in stoff engagement, wellbeing and organisational performance. A worklng group was established in 2021 to assess employee wellbeing and consider how this can be protected and developed. Safety of staff, bulldln8s & contacts One of our values Is chrlst.like love. Accordln8ly, we want to make sure that our staff, buildinES and contacts are all safe. Risk assessments for ministry activities are in place and a￿ reviewed ahead of In-person activlties re-startlng following the coronavirus pondemic. Personal safety and safeguarding policles and training ore in place. Guidelines are set for mlnlmum staffinB levels, and staff rotatlons re in operation to minimlse risk of stress. An emergency response policy is also in place. Values embedded wlthln the organlsatlon. To ensure that the culture of LCM Is well aligned with its values, they are incorporated into Job Descriptlon5, the onboarding process of new staff, and feature In the sermons In regular oll staff meetings. A prayerful culture of humlllty underpins the effective Smplementation of the strategy and Impacts on the performance of individuols and the whole organisation. Prayer is prioritised throughout the mis51on with the first week of every year devoted to prayer and blblical reflection. 20 REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2020 4, GOVERNANCE REGISTERED OFFICE: The London City Mission 175 Tower Bridge Road London SEI 2AH REGISTERED CHARiff NUMBER: 247186 REGISTERED COMPANY NUMBER: 4284615 ststus: The London City Mission is a charity registered in England and Wale5 and a company Ilmlted bv guarantee registered In England and Wales. The London City Mlssion is 8overned by its Memorandum and Articles of Association. Incorporated on 10 September 2QK)I, the company took on the charitable activities, assets and liabilities of The London City Mission, an unincorporated association and re8lstered charity Icharity Number 2471861, on l January 2003. The Company operales undef the working name 'London Clty Mlssion,. Oblects: The objects of the Charity are for the public benefit to further such exclusively charitable purposes accordin8 to the law of En8land and Wales as the Trustee5 in iheir absolute discretlon from time to tlme determlne, and in particular (but without prejudice to the generality of the fore8olngl, to advance nd extend the knowledge of the Gospel amon8 the inhabltants of London and Its vicinity lespecially amon8St those living in poverty) without any reference to denomlnatlonal d15tlnctions or the pecullarities of Church Government. Dlrectors and profe551onal advlsors: All Trustee5 acted as Directors of The London Clty Mission and were also the member5 of The London City Mission. The Directors who served during the year were as follows'.- Director a ointment dates.. Carolyn Louise Ash- May 2007 John Rlchard Bulmer- March 2015 Andrew Burkinshaw- March 2015 Mosun Dorgu- December 2008 Bryan Gordon Duncan - March 2018 Richard Westacott Godden- September 2001 Roger Evans- September 2013 Mark Dominlc Harding (Chairman) - November 2002 Anne Katharine Hudson -july 2018 Graham David Miller ICEOI- January 2014 Richard Matthew Montgomery- March 2018 lan Eric Nash- November 2002 Nigel Graham Parrington- May 2016 Marcia Shields- March 2015 21 REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2020 Advisors and others actin for The London Cl Mission durin the ear.. Sollcltors: Wedlake Bell LLP 71 Queen Victoria Street London EC4V 4AY Anthony Colllns Sollcltors LLP 134 Edmund Street Birmingham 83 2ES Stockbrokers: Investec Wealth and Investment LimSted 30 Gresham st￿et London EC2V 7QN Bankers: Barclays Bank plc 100 Fenchurch Street London EC3M 5JD Insurance advlsors: Arthur J Galla8her Insurance Broker5 Limlted Spectrum Building 7th Floor, 55 81ythswood Street Glasgow G2 7AT PensSon ?dvlsor5: Mercer Limited l Tower Place West Tower Place London EC3R 5BU Punter Southall Deflned Contributlons Consultlng Llmlted 11 Strand London WC2N SHR Re81stered auditors: Moore Kingston Smith LLP Devonshire House 60 Goswell Road London ECIM 7AD 22 REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2020 4A. GOVERNANCE OF THE LONDON CITY MISSION The Board of The London City Mission ILCMI met on nine occasions (lurirTrg the year, among other things to establish overall strategy and policy, to determine matters of principle, deal with financial planning and other financial matters, Including the oversight of the properties, and revlew progress towards achleving the plans and goa15 It has set. As permitted by the Articles of Associatior), the Chief Executive Officer, who is also a member of the Board of Directors, is the only paid member of the Board. The Chief Executive Officer Is appointed by the Board and, together wlth hls senior management team, manages the day-to-day operations of LCM. Management decisions are relayed to field staff through Field Directors, with support from Team Leaders. Communications with all employees are maintained through regular meetings, monthly Team Days, staff newsletters, annual appralsals and mid-year reviews, email and written documentation. LCM'S Board completed Its comprehen51ve revlew of the Charlty Governance Code in early 2021. Whilst recognising that the requirements of the code are not mandatory, It believes they are largely applSed by the Mlssion and has agreed an actlon plan to reflect recommended practice from the Charity Commission. 4B. SUBSIDIARY COMPANIES The London City Mlsslon group is made up of a collection of companles whlch are wholely owned by LCM. These companles enter into transactions wlth the charity and each other. The board of the London Clty Mlssion has approved these transactlons on behalf of the charlty. The London City Mis51on Trust exists solely to hold properties and securitles as nominee on behalf of The London City Mlssion. It has an issued share capSial of 181 £4 shares, 50p partly paid, of whlch The London City Misslon has 170 share5 and London City Misslon Services Llmited has the remaining 11 shares. London Clty Mission Services Limited, a fully owned subsldiary of The London Clty Mission, has no trading activity and solely exlsts to be one of the two corporate shareholders In the London City Mission Trust. In November 2015, London Clty Mission Property ServSces Ltd ILCMPSI, a company limited by guarantee, was set up as a subsidiary of the London Clty Mlssion, At 31 December 2017, an asset purchased from The London Clty Mlsslon had Subsequently been impaired to £nil and, as a result, an intercompany loan from The London City Mission to LCMPS, whlch had been drawn to pay for the said asset, had been deemed to be unlikely to be repald, and had also been written down to £nil. In November 2019, London City Mission Property Holdin85 Ltd ILCMPHI, a company limited by shares was set up as a subsidiary of The London City Mission. LCM PH will act as a wholly owned trading Subsidiary of the charliy to provide segregation of tradin& or potential tradlng actlvltyi from charitable activity a5 recommended by the Charity Commission. LCMPH commenced trading from the 1st July 2021. The directors of LCMPH agreed to novate certain existing London City Mission Property Services Ltd contracts to the company. Similarly, the directors confirmed LCMPH would enter into a contract to purchase 27 properties, including the Bem)ondsey Christlan Centre, from the London City Mission. In addition, the dlrectors approved to lease bock these propertie5 to the parent company in line with the scheme authori5ed by the Charity Commission dated 30, June 2021. 23 REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2020 4C. MANAGEMENT STRucfuRE LCM'S Leadership Team are accountable to the Board of Directors to collectively lead and serve LCM. They have responsibility to recommend and Implement the strategy of the overall organisation. During the course of 2020 LCM was dellghted to announce that a number of internal staff were promoted onto the leadership team, as God called others to setve In new ways. After 15 years as Deputy Chief Executive Officer, Alan Black is now able to focus his time on his passlon of teachin8 the Bible as he equips field staff for evangelism and moblllsatlon as Director of Studies. We are hugely appreciative and thankful for all Alan contributed as a faithful and godly Deputy CEO. Efrem Buckle, a local p35tor in Lewisham and a founder of LCM'S Pioneer pro8ramme, was promoted to Deputy CEO and Director of Trainin8 & Mentoring. Efrem's appolntment was crucial to the creation of a new tralnln8 course for fleld staff. Chrlstlan Flelder has been a passionate supporter of LCM for a number of years and has a wealth of experSence in people, change and organisational development. He played a key role In dellverlng the changes in 2020 to the way we operate on the fleld. He was subsequently promoted Into the role of Dlrector of People & Organisatlonal Development. LCM is also delighted to have created a new role on the leadershlp team of Dlrector of Fundraislng & Supporter Partnershlps. Rachel Wagstaff was appointed to this new role just before the first lockdown in early 2020. Carollne Mlllar made a si8nificant contrlbution to shaping our partner5hlps with different churches, networks and organlsations across London. She remains a firm friend as she uses her strategic and project management stills to help a variety of dlfferent or8anisations acros5 London to serve the Church from a misslonal perspectlve. Slnce the end of 2020. Tayo Arikawe and Jo Sutton have also moved into new roles Outside of the Mi5510n. Tayo Is a vlsionary and led the field ministry team through a major ￿VIeW and re5trvcture, 50 that In God's grace we mS8ht mobilise and serve even more churches across Lon(lon to reach the least reached communities with the gospel. As Tayo moved Into his new role with Langham Partnershlps International, we are 8rateful that we will be able to continue working together with the same vlslon of bold proclamaiion and practical action. After more than 8 years with the Mi55ion, initially as a volunteer and for the past 5 years as Director of Communications & Programme, Jo has relocated to the North-East of England. She is passionate about seeing people on the margins come to know Jesus, and continue5 to serve the Lord through a local charity that works with ex-offenders. We are thankful for all Jo has contributed to the Mission durlng her tlme with us. 24 REPORT OF THE DIRECTORS FOR THE YEAR ENDED 310ECEMBER 2020 fvlembers of The London City Mi5sion'5 Leader5hlp Team are as follows: Chief Executive Officer.. Graham Miller (appointed October 20131 Director of Finance-. Nicholas Allenson (appointed March 20161 Deputy CEO and D1￿ctOr of Training & Mentoring: Efrem Buckle (promoted May 20201 Director of People & Organi5ational Development.. Chr15tian Fielder Ipromoted September 20201 Interim Director of Ministrles: Terry Puttick (promoted March 20211 Director of Minlstrles= Jason Roach ljoining September 20211 Director of Fundraising & Supporter Partnerships- Rachel Wagstaff lappolnted February 20201 Company Secretary.- Chesman 151e The followlng people left the LT in 2020.. Director of Training & Mentoring: Helen Thorne (resigned January 20201 Director of Church Development & Partnershlps.. Caroline Millar (resigned September 20201 Director of Studies and Deputy CEO- Alan Black (stood down September 20201 Actlng Head of Human Resource5: Shirley Cox Ireplaced September 20201 Resignations In 2021: Director of Ministrles.. Ibltayo Arikawe (resigned March 20211 Director of Communications & Pro8rammes.' Johanna Sutton Ireslgned May 20211 Board members There were no new appointments to the Board of Directors in 2020. When new member5 loln the Board, they are provided with key Board document5 such as annual report5, Articles of A550ciation, and strateglc future plans. 4D. PAY POLICY FOR SENIOR STAFF The Board of Directors and the Leadership Team comprise the key management personnel of LCM in charge of dlrectlng and controllln8, running and operating LCM on a day-to-day basis. All Trustees, with the exception of the Chief Executive Offlcer, give of thelr time freely and recelved no remuneration in the year. Details of Trustees, expenses are disclosed in Note 4 to the Accounts, and related party transactions In Note 21. The salaries and benefit5 of the senior staff on the Leadership Team are set by the Chief Executive Officer and Dlrector of People & Organlsational Development and approved by the HR sub-commlttee of the Board, with reference to levels of responslblllty and rate5 of remuneratlon Sn charitie5 of Similar slze and objects. The Chief Executive Officer's salary and beneflts are set by the Board of LCM. Rates of pay are reviewed annually and normally increased in line with inflation. Details are disc105ed in Note 4 to the Account5. 4E. DIRECTORS, RESPONSIBIIITIES The Directors are responsible for preparing the Directors, annual report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards Iunited Kingdom Generally Accepted Attounting Practlcel. Company law requires the Directors to prepare financial statements for each financlal year. Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of afFairs of the charity and of the incoming resources and 25 REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2020 application of resource5, including its income and expenditure, of the charlty for the year. In preparing those financial statements the Directors are required to.. Select suitable accounting policies and then apply them consistently Observe the methods and principle5 in the Charities Statement of Recommended Practice ISORPI Make judgments and accounting estimates that are reasonable and prudent Prepare the financial statements on the going concern basls unle55 It is inappropriate to presume that the charity will continue in business The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and 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 requlrements of the Companies Att 2006. They are also responsSble for safeguarding the assets of the charity and hence for taklng reasonable steps for the prevention and detection of fraud and other irregularities. 4F. AUDITORS A resolutlon to re-appoint Moore Klngston Smlth a5 audltors to LCM wlll be proposed to the members. 4G. DIRECTORS, STATEMENT Each of the Dlrectors has Confirmed that, so far as they are aware, there Is no relevant audit information of which the charitable company's audltors are unaware, and that they have taken all the steps that they ought to have taken as a dlrector to make themselves aware of any relevant audit information and to establlsh that the charitable company's auditors are aware of that information. REPORT OFTrIE DIRECTORS SIGNED ON BEHALF OFTHE DIRECTORS M D MILLER, CHIEF EXECUTIVE AND DIREcfoR tember 2021 20S 26 INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF THE LONDON CITY MISSION 5. INDEPENDENT AUDITORS, REPORT Opinion We have audited the financial statements of London City Mi55ion for the year ended 31 December 2020 which comprise the Group Statement of Financial Activities, the Group and Parent Charitable Company Balance Sheet5, the Group Cash Flow Statement and notes to the financial statements, includlng a summary of significant accountin8 policies. The financial reporting framework that has been applied in thelr preparation is appllcable law and United Kingdom Accounting Standard5, includin8 Financial Reporting Standard 102 The Financial Reportlng Standard applicable In the UK and Republic of Ireland (United Kin8dom Generally Accepted Accounting Practice). In our oplnlon the financial statements.. give a true and fair view of the state of the group's and the parent charltable comp3ny'5 affairs as at 31 December 2020 and of the 8roup's incomlrb8 re50urces and application of resources, including Its income and expendituie, for the year then ended,. have been properly prepared in accordance with Unlted Klngdom Generally Accepted Accounting Practlce,. and have been prepared In accordance wlth the requlrements of the Companies Act 2006. Ba$ls for oplnlon We conducted our audlt In accordance with Internatlonal Standards on Auditin8 IUKI IISA5IUKII and applicable law. Our responslbllltles under those standards are further de5crlbed in the Audltor's Responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethlcal requlrements that are relevant to our audlt of the financlal Statements In the UK, includlng the FRC'S Ethlcal Standard, and we have fulfilled our other ethical responsibilities in a¢cord3nte with these requirements. We believe that the audit evidence we have obtained 15 sufficient and approprlate to provide a basis for our opinion. Concluslons relatln8 to going contern In auditing the financial statement5. we have concluded that the trustees, use of the golng concern basls of accounting in the preparatlon of the financlal statements is appropriate. Based on the work we have performed, we have not Identlfied any material uncertainties relating to events or conditions that, Individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the flnancial statement5 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 Inform3tlon The other information comprises the information include(l in the annual report, other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information. Our opinlon on the finantial statements doe5 not cover the other information and, except 27 INDEPENDENT AUDrroRS' REPORT TO THE MEMBERS OF THE LONDON CITY MISSION to the extent otherwise explicitly stated In our report, we do not express any form of assurance conclusion thereon. In connection wilh our audit of the financial statements, our responsibility 15 to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materiallv mlsstated. If we identify such material inconsistenc5es or apparent material misstatements, we are required to determine whether there 15 a material misstatement in the financial statements or a material mlsstatement of the other information. If, based on the work we have performed, we conclude ihat there Is a material misstatement of this other informatlon, we are required to report thai fact. We have nothing to report in this regard. Oplnlons on other matter5 prescribed by the Companles Act 2006 In our opinion, based on the work undertaken in the course of the audlt.. the Snformatlon given in the strateglc report and the trustees, annual report for the financial vear for which the financial statements are prepared is consistent wlth the financlal statements,. and the Strategic report and the trustees, annual report have been prepared in accordance with appllcable le8al requirements. Matters on whlch we are requlred to report by ex¢eptlon In the light of the knowledge and understandln8 of the group and parent charitable company and Its environment obtalned In the course of the aud5t, we have not identified material misstatements In the strategic report or the trustees, annual report. We have nothing to report in respect of the followlng matters whère the Companles Act 2006 requires US to report to you if, in our opinion.. the parent charitable company has not kept adequate and sufficient accountlng records, or returns adequate for OLJr audit have not been recelved from branche5 not v151ted by us,. or the parent charitable company's financial statements are not Sn agreement wlth the accountin8 records and returns,. or certain disclosures of irustees, remuneration specified by law are not made; or we have not recelved all the information and explanations we require for our audit. Responsibilitles of trustees As explained more fully in the trustees, responslbllliies statement, the trustees Iwho are also the directors of the charitable company for the purposes of company lawl 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 rbecessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. 28 INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF THE LONDON CITY MISSION In preparing the financial statements, the trustees are responsible for assessing the Broup and parent 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 group or parent charitable company or to cease operations, or have no realistic alternatlve but to do 50. Audltor's responslbllltles 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 m155tatement, whether due to fraud or error, and to Issue an auditor's report that Includes our oplnlon. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS IUKI will always detect a material m5sstatement when it exists. Misstatements can ar15e from fraud or error and are considered materi31 if, individually or in aggregate, they could reasonably be expected to Influence the economic decisions of users taken on the basis of these financial statements, Irregularlties, Including fraud, are Instances of non-compliance wlth laws and regulations. We desl8n procedures in line with our responsibilitie5, Outllned above, to detect material m155tatements In respect of irregularities, including fraud. The extent to which our procedures are capable of detectin8 irregularities, Including fraud is detailed below. Explanatlon as to what extent the audlt was consldered capable of detectln8 irregularltles, Includln8 fraud The oblectlves of our audlt In respect of fraud, are- to identify and as5es5 the rlsks of material mlsstatement of the financiol statements due to fraud,. to obtaln sufficient approprlate audit evldence regarding the assessed risks of material misstatement due to fraud, through designing and implementin8 approprlate responses to those assessed risks,. and to respond appropriately to instances of fraud or Suspected fraud Identlfled during the audlt. However, the primary responsibllltv for the prevention and detection of fraud rests with both mana8ement and those charged wlth governance of the charltable company, Our approach was as follows: We obtalned an understandln8 of the legal and regulatory requirements applicable to the charitable company and considered that the most significant are the Companies Act 2006, the Charlties Act 2011, the Charity SORP, and UK flnancial reporting Standards as issued by the Financial Reporting Councll We obtained an understanding of how the charltable company complles with these requirements by discussions with management and those charged with governance. We a55es5ed the risk of materlal mlsstaiement of the financial statements, Including the risk of material mi55tatement due to fraud and how it mlght occur, by holdir)g discussions with management and those char8ed with Eovernance. We inqulred of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations. 29 INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF THE LONDON CITY MISSION Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with sovernance and obtaining additional corroborative evldence as requlred. As part of an audit in accordance with ISAS IUKI we exercise professional judgement and maintain professlonal scepticism throughout ihe audit. We also.. Identify and assess the risks of material mi55tatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a materlal misstatement resulting from fraud is higher than for one res¢Jlting from error, as fraud may involve collusion, forgery* iritentional omlssions, misrepresentations, or the override of internal control. Obtaln an understanding of internal control relevant to the audlt in order to deslgn audit procedures that are appropriate in the clrcumstances, but not for the purposes of expressing an opinlon on the effectivene55 of the group and parent charitable company's internal control. Evaluate the appropriateness of accounting policies used and the reasonablene55 of accountlng estlmates and related d15closures made by the trustees. Conclude on the approprlateness of the tru5tees' use of the going concern basis of accounting and, based on the audlt evldence obtained, whether a material uncertainty exlsts related to events or conditions that may cast Sl8nificant doubt on the group and parent charitable company's ability to continue as a 8olng concern, If we conclude that a materlal uncertainty exists, we are required to draw attentlon in our auditor'5 report to the related dlsclosures In the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evldence obtained up to the date of our auditorfs report. However, future events or condltions may cause the 8roup or parent charltable company to cease to continue as a going concern. Evaluate the overall presentation, structure and content of the financlal statement5, Including the disclosures, and whether the flnancial statements represent the underlyin8 transactions and events In a manner that achleves falr presentation. Obtain sufficient approprlate audlt evidence reBardin8 the financlal Information of the entitles or bu5ine55 activities within the group to express an opinion on the consolidated financial Statements. We are responslble for the direction, 5uperv15i0n and performance of the group audit. We remain solely re5pon5ible for our audit report. We communicate with those charged with governance re8ardinB, among other matters, the planned scope and timing of the audit and significant audlt flndlngs, including any significant deficiencies in internal control that we identify during our audit. 30 INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF THE LONDON CITY MISSION Use of our report This report is made 501ely to the charitable company's members, as a body, in atcordance with Chapter 3 of Part 16 of the Companies Act 2CQ6. Our audit work has been undertaken so that we might state to the charitable company's members those matters whlch we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to any party other than the charitable company and char51able company's member5 as a body, for our audit work, for this report, or for the opinions we have formed. Date 19 Odober 2021 Andrew Stlckland Isenior Statutory Auditor) for and on behalf of Moore Kin8Ston Smith LLP, Statutory Audltor Devonshire House 60 Goswell Road London ECIM 7AD 31 GROUP STATEMENT OF FINANCIAL ACTIVITIES IINCLUDING INCOME AND EXPENDITURE) FOR THE YEAR ENDED 31 DECEMBER 2020 6. GROUP STATEMENT OF FINANCIALACTIVITIES Unre5trlctÈd fund5 R•stricted fuThds Endowment funds 2020 Total 2019 Total Note5 Volurntwy Income Donations Legacie5 Giants Income from Investments Income from tharltable actlvltles Guaranteed payment5 and trading recelpts at café5, HQ Bookroom and at Chrlstian Centres In¢ome from othertradlng artlvltle5 Rents Fees and other char8e5 Othèr Income Nel g31n on sale ol t4n8ible Ilxed 1.597,505 1,151,032 764,439 2,361,944 1,151.032 177,ia4 677,546 2,449,770 1,649,359 177.104 14,266 663.280 772,697 101,969 59.839 161,808 415.781 461,248 56,004 461,24B 56,004 509,760 46,363 791,143 4,822,181 791,143 5837 829 1,537,711 7 381.441 TOTAL INCOME Expèndlture on ralsln8 lunds Mana8ernent of rented properties Fundrèiging and supporrer relations Investment Tnanagement fees 1015,648 337,445 525,001 13,921 876367 337,445 525,001 356,945 474,858 876 367 851400 NET INCOME AVAILABLE FOR CHARITABLE OWECTIVES 3,945 814 1015,648 4 961,462 6 530,041 EXPENDITURE ON CHARITABLE AcfiviTIES 4,918.341 177,981 296,63S 937,820 72,611 5,856,161 250.592 296,635 5,823,633 222.259 234,795 LCM Ploneer5 Training and church development City Vi5i0n, city Challen8e and Urban Track Christian Centres Retlrement houslng and other costs Relief to the needy Hope Cornmunlty Homes Tradlng costs at cafés, HQ Bookroom and at ChrSstian Centres Chrlsilan Centre developments TOTAL CHARITABLE EXPENDITURE TOTAL EXPENDITURE NET INCOMEIIEXPENDITUREI BEFORE INVESTMENT GAINSILOSSES Realised net galns on Inve5tmenis Unrealised Eain51llossesl on investments 115,516 1,561,012 236,033 405,288 83,059 115.516 1,561,012 239,853 408,288 83,059 118,781 1.595,214 333,782 298,236 84,190 3,820 3,000 38,600 151 774 7 984,239 8,860,606 38,600 151774 9,001.490 9,877.857 143,883 792 358 9,647 131 10,498 531 1017 251 1.017,251 14,038,42SI 350.276 11,6031 14.040.028) 13.117,0901 350,276 155,1331 3 171142 2,915 3 135 491 9 891642 NET INCOMEIIEXPENDITUREI BEFORE TIIANSFERS S17.007 34,339 554 261 6 719.419 32 GROUP STATEMENTOF FINANCIALACTIVITIES IINCLUDING INCOME AND EXPENDITURE) FOR THE YEAR ENDED 31 DECEMBER 2020 Unrestricted fund5 Re#ricted lunds Endowment funds 2020 Total 2019 Total Not•s NEr INCOMEIIEXPENDITVREI BEFORE TRANSFER5 Tr&n5fer between funds 1517.0071 134,3391 12.9151 1554.2611 6.719.419 13 INCOMVIEXPENDITLIREI AFTER TrANSFERS Actuarial IlossesllgaiDS on defined benefit pension scheme MOVEMENT IN FUNDS RECONCILIAIION OF FUNDS Toral fund5 brought forward FUND BALANCES CARRIED FORWARD 517,007 34,339 2,915 554,261 6,719,419 99.000 430 000 615,007 653 261 6 289419 63,126.354 1 $75 679 1,244,998 65,947,D31 59,657,611 62 510,347 1541 340 1242 083 65 293,770 65,947.030 33 THE LONDON CITY MISSION GROUP & PARENT BALANCE SHEET AS AT 31 DECEMBER 2020 7. GROUP & PARENT BALANCE SHEEI. Group 2020 Group 2019 Charltv 2020 Charlty 2019 NoQe5 FIXED ASSETS Tanelble flxed assets Intangible fixed assets Investments 5a 5b 32,833,001 32,274,695 227.822 271,217 32,021,451 32,355,861 65,082,274 64,901,773 31.438,743 31,256,945 227,822 271.217 32,021,451 32,355,861 63.688,016 63,884,023 CURRENT ASSETS Stocks 3,811 1,614,122 745,841 2,363,774 3,158 2,179.821 368,913 2,551,892 3,811 3,158 3,465,819 3,525,757 724,182 356,396 4,193,812 3,885,311 Debiors Cash at bank and in hand LIABILITIES Amounts f3llln8 due wSthln one year 11,130,970 11,244,341) 697,748 1897,7771 NET CURRENT ASSErs 1,232,804 1,307,551 3,496,064 2,987,S34 Amounts falllng due It) more than one year PENSION LIABILITY 11,oJo,oooi 121,3081 1262,2941 li.000.0001 121.3081 1262,2941 NET ASSETS 65,293.770 65,947,030 66,162,772 66,609,263 FUNDS Deslgnaled lunds General reserve Pen51on deflclt li 54,198,747 54,128.744 8,332,908 9,259,9D3 21,308 1262,294 62,510,347 63,126,353 54,198,747 54,128,744 9,201,912 9,922,136 121,308 262,294 63,379,351 63,788,586 12 UNRESTRICTED FUNDS RESTRICTED FUNDS 13 1,541,340 1,575,679 1,541,340 1,575,679 ENDOWMENT FUNDS 14 1,242,083 1,244,998 1,242,083 1,244.998 TOTAL FUNDS 65,293,770 65.947.030 66,162,772 66,609,263 Approved and author15ed by the Board on 20 September 2021 and 518ned on Its behalf bv.. Mark D Harding, Chalrman of thè Board The London Clty Mission ompany number- 04284615 Rithard Godden, Chair of the Finance Subcommiltee 34 THE LONDON CITY MIS510N GROUP CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2020 . GROUP CASHFLOW STATEMENT Cash flows from opeiatln8 actlvltles: 2020 2019 Net cash US￿ In 0￿ratIn6 attivities 14,740,199) 16,495,498) Cash flows from Investlnl attlvltlts: Dividends. interest and rents from invèstments Proceeds from salè of tangible lixÈd assets Pur¢hasÈ ol tangible fixed assets Pur¢hase ol intangiblÈ fixed assets Proceeds from sale ol current assei Proceeds from sale of asset Investments Purchase ol flxed asset Investments N•t cash provlded by Snvestln8 artlvltles 677,546 1,145,000 12,868,362) 772,697 2,395,904 11,920,047) 167,5981 8,304,483 13,146,540) 4,117,127 9.547,197 14,143.4061 6,584,747 Cash flows from finan¢ln8 a¢tlvltles.' Loan Recelved Net cash provlded by fina￿Ing acllvltles 1,000,000 1,000,000 Increa5• In cash and cash equlvalentS 376,928 89,249 NOTES TO CASH FLOW STATEMEP4T 2020 2019 ReconclllatSon of net Income for the year to net cash oufflow from contlnuSng operatlng artl¥ltles Net income Investment income Gain on dlsposal of tangible fixed assets 1653,2611 1677,5461 6,289,419 1772,6971 1791,1431 1350,2761 13,135,4911 613,434 43,395 11,537,7111 55,133 19,891,6421 564,947 32,546 Realised18alns111055es on Investrnents Unrealised Igalnsll1055es on Investment5 Depreciatlon on tangible flxed assets Amortisatlon of Intangible assets Impairment of property Decrease/lincrea5el In Stocks Decrease/lincrea5el in debtors IDecrea5el/increase in creditors Net cash outflow from oper*lne actlvltSes 16S31 577,955 1366,6131 14,740,199) 2,825 11,377,424) 139,106 16,495,498) Analysls ol ¢han8es In cash and Cash equivalents durlng the year Change In year l Jan 2020 31 Dec 2020 Increase In cash and cash equivalents 368,913 376,928 745,841 35 THE LONDON CITY MISSION NOTESTO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020 9. NOTES TO THE ACCOUNTS Accountin Pollcies lal Basis of accountin The financial statements have been prepared in accordance with Accounting and Reportin8 by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reportin8 Standard appllcable in the UK and Republic of Ireland IFRS 1021 leffective l January 20191- (Charlties SORP IFRS 10211, the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 and the Companies Act 2006. The presentational currency used is Brltlsh pound sterling. 8alances are rounded to the nearest £. The London Clty Mlsslon meets the definition of a publlc benefit entity under FRS 102. Assets and liabilltie5 are Initially recognised at hlstorical cost or transactlon value unless otherwlse stated In the relevant accountin8 policy notelsl. The London Clty Mlsslon Is the only member of two subsidiary companies. London City Mlssion Property SeNlces Ltd Ilmlted (Company no. 098815331, a company Ilmlted by guarantee, London Clty Mlsslon Property Holdings limlted Icompany no. I232￿181, a companv established in November 2019. Group accounts have therefore been prepared. (See Note 61. The Dlrectors conslder that there are no material uncertainties about the charity's ablllty to contlnue as a golng concern for the foreseeable future. In response to the coronoviru5 pandemlc the charity has received Significant gifts from Its supporters enabllng It to release funds for the relief of the needy. Under its financial sU5talnability plan, the Mission is planning operating deficits in the medium term, financed by the sales of property and in the short term, debt. The disposal of investment properties 15 expected to provide more than £20m to fund the planned operational deficit5 and a sustainable level of w0￿1n8 capital. Financially, the most significant risk 15 delays to the legal process of selling properties. However, a mortgage facility for E2m is in place and asset5 are available to secure additional facilities In the medium term if needed. Having made enquiries. the Directors believe that the planned programme of property disposals is achievable without recourse to additional borrowing facilities and do not 36 THE LONDON CITY MISSION NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020 consider there are any materlal uncertainties about the charity's ability to continue as a 80in8 concern for the foreseeable future. Accordlngly the financial statements continue to be prepared on a golng concern basis. Ibl Tan ible fixed asset5 and de reciotion Freehold and long leasehold buildlngs are capitalised at historical cost or probate value if donated to the charity. For each freehold property, we assume o cost ratio of 50'.50 divlded between land and building5. Freehold land is not depreclated, Freehold buildings are depreclated over thelr expected useful Ilves, taken to be 50 years lat 2% per year}. Leasehold property is depreclated over the shorter of the remainin8 useful Ilfe or the remainln8 perlod of the lease. Motor Vehicles and Furnlture, Fittin85 and Office Equlpment are depreclated at 25% and 20% on a reducin8 balance basls respectively. Icl Intan Ible fixed assets and amortisatlon Software Is amortlsed over a useful economic Ilfe of 7 years, once it has entered into use. Idl Pro airs ond Im rovement Costs Repalrs to properties are accounted for under charltable expendlture except where the floor area of a property is extended, OT the improvement is consldered to be to the fabric of the bulldlng and Its flxtures and fittings, in which case the cost Is capitallsed. lel Investment Investments (including investment properties) are stated at Market value. Realised and unreallsed gains and losses on investments are included In the Statement of Financial Activltles. Investment income is credited to Income on an accruals basis. The portfolio management fee5 are included in the Statement of Flnancial Activities. 37 THE LONDON CITY MISSION NOTESTO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020 Investment property is property deemed to be held for the sole purpose of financial gain to LCM, is held at the Trustees, best estimate of valuatlon and is not depretiated, which is permitted ur)der the Charlty SORP 2019. The Trustees perform a review of the valuation annually. All changes In value in the year are reported in the Statement of Financlal Actlvltles. Debtor Trade and other debtor5 are recognised at the settlemer)t amount due ofter any trade discount offered. Prepayments are valued at the amount p￿paid net of any trade discounts due. Igl Creditors and rovlslons Creditors and provisions are recognlsed where the charlty has a present obligation resultlng from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obllgatlon can be measured or estimated reliably. Creditors and provlslons are normally recognlsed at their settlement amount after allowin8 for any trade dlscounts due. ert awaitin sale Propertles a￿ held at book value where they have been given to LCM as 8Sfts, and are awaltlng sale, belng either on the market, or earmarked for sale but not yet marketed. They are not depreclated slnce they fall under Current Assets. Where propertles that have been held for charitable purposes, or for investment purposes, are not deemed to be awaitlng sale, they are kept in Tangible Fixed Assets or Investment Propertles, respectlvely. Flnancial Instruments The London City Misslon onty has flnanclal assets and financial liabillties of a klnd that quallfy as basic financial Instruments (for example cashl. Basic financlal instruments are initially recognised at transactlon value and subsequently mÈasured at thelr settlement value. Fun Unrestricted Funds- Designated Funds are funds set aslde at the dlscretion of directors. 21 Other Charitable Funds are available for use In the furtherance of LCM'S charitable objective5. 38 THE LONDON CITY MISSION NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020 Restricted Funds- are restricted income funds, which are expendable at the discretion of the trustees in furtherance of particular aspects of the objects of LCM and assets subject to speclflc purposes and conditions imposed by the donors. Endowment Funds - are funds held in trust by LCM and only the income arising can be expended. Ikl Donations and le acles Donatlons, and Income under gift aid, are accounted for when receivable. Le8acies are recognlsed as recelvable when there is an entltlement to the funds, It is considered probable that they wlll be received and can be measured reliably. Donations of investments are accounted for at market value at date of transfer and properties at probate value or valuation. Rent receivable Rents receivable are accounted for on an accruals basls. Im) Valve Added Tax Value Added Tax, whlch cannot be recovered in respect of most of the costs of the charity, Is Included in those costs In the Statement of Financial Activities, en The pension scheme is a defined benefit Iflnal salary) funded scheme now closed to new entrants. For deflned beneflt schemes, the amounts charged in resources expended are the current servlce costs and gains and105ses on settlements and curtallments. They are Included as part of staff costs. Past service costs are reco8nlsed immediately In the Statemenl of Financial Activities if the beneflts have vested, l.e. entitlement to beneflts has become unconditional. If the benefits have not vested immediately, the costs are recognised over the period until vesting occurs. Net Inte￿St cost Is charged to expenditure and is calculated by multiplying the net scheme liablllty by the discount rate used to determine the defined benefit obligation. Actuarial Bains and losses are rec.ngnised immpdiatp.ly. The defined benefit scheme is funded, with the assets of the scheme held separotely from those of LCM. in a separate trustee administered fund. Pension scheme a55ets are measured 39 THE LONDON CITY MISSION NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020 at falr value and liabilities are measured on an actuarial basis using the projected unit method and dlscounted at a rate equivalent to the current rate of return on a high quality corporate bond of equivalent currency and term to the scheme liabilities. The actuarial valuations are obtained at least trlennially and are updated at each balance sheet date. The defined contribution scheme costs are included as part of staff Costs and included in the Statement of Financial Activities. lol Resources ex ended Dlrect CQSt5 are allocated to the particular artivity where the cost relates directly to that activlty when Involced. Salaries of staff, natlonal insurance and pension contributions pald are allocated on a proportioned basis relatlng to the time spent. Payments made under operating leases are charged to the statement of financial actlvities on a straight-llne basis over the lease term. ortc Overhead costs Include property costs, HR, finance, IT, fundralsln8 and other administrative Costs associated with sUPPOrting the charitable activitie5. They also incorporate governonce costs associated with the mana8emenl of the Mission's assets and with constitutional and statutory requirements including advisory and audit expendlture. Support costs have been allocated to the cost of charltable activities on a headcount basls. Thls allocation is set out In Note 20. nificant estimates and ud ements The group's investment properties are valued by the trustees at their estimated market value at the balance sheet date. This represents a sl8nlficant judgement however the trustees believe that the market values of the Investment properties are not materially dlfferent from their carryinE value5 at the balance sheet date. The tru5tee5 acknowledge that there has been considerable uncertainty in the property market as a result of the impact of the coronavirus pandemic although any consequent dimlnution in value of the properties Is expected to be temporary. 40 THE LONDON CITY MIS510N NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020 vestment Income 2020 2019 Income from listed Investments Income from other Investments Income from deposltS Income from investment properties 106,374 186.809 4,093 567,079 677,546 5.387 580,501 772,697 Anal sis of resources ex nded Staff Costs Total 2020 Group Other Dep'n Expenditure on raSsln8 funds Charltable expenditure 456,592 5,805,364 6.261,956 387,415 32.361 2,615.052 581,073 3,002,467 613,434 876,368 9,001,489 9,877,857 Staff Costs Total 2020 Charbtv Other Dep'n Expendlture on ralslng funds Charltable expendlture 456,S92 5,805,364 6,261,956 387,41S 32.361 2,411,279 581,073 2,798,694 613,434 876,368 8,797,716 9,674,084 2020 Included In both 8roup and charlty above: Audlt fees net of VAT Prlor year under accrubl Support costs (Note 201 25,5CN) 11,120 3.563,564 Anal sl fR St•ff co￿$ Total 2019 Group Oth•r Dep'n Expenditure on raising funds Charltable expendlture 436,749 5,776,032 6,212 781 379,517 35,134 3,341,286 529.813 3,720,803 564,947 851,400 9,647,131 10,498,531 Staff Costs Total 2019 Charltv other Dep'n Expenditure on rai5in8 funds Chariiable expenditure 436,749 5,776,032 6,212,7BI 379,517 35.134 2,682,428 529,813 3,061,945 564,947 851,400 8,988,273 9,839,673 2019 Included in both 8roup and charity above: Audlt fees net of VAT Prior year under accrual Support costs INote 201 22,50D 3,ISI,919 41 THE LONDON CITY MISSION NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020 Staff costs 2020 2019 Salarles Social Securlty Settlement Costs Pension and Life Insurance 4,597,076 377,841 502,134 784,904 6,261,956 4,750.102 413,445 165.656 883,577 6,212,780 The only member of the Board who 15 remunerated is Graham Mlller. the Chlef Executlve, and hSs total emolument5 for 2020 were £50,62512019 £SO,8141. Penslon contrlbutlons of £9.90712019 £8,410) were also pald on his behalf. He also recelves renl-free accommodation In hls role as Chief EKe¢ulive. Expense5 relmbur5ed amounted to £8512019 £4111. One Board member reclairned travel expenses of £55.6512019 £2291. Durln8 2020 LCM completed a revlew of mlsslon 5trate8y and mSnlstry operatlons and reached settlement wlth several employees who subsequently left the organisatlon. 2020 2019 Th• number of •mploy•es at 3111 De¢embef 2020 byfunrtlon was.. Fleld staff - evan8elists Other mlnlstry staff Maintenance staff Support and admln15tratlon staff Employed staff 85 26 113 45 43 157 40 zoi Clty V151on team Urban Track Employees & formal volunteer pro8r*mmes 159 208 The nurnber of employee5 recelvlng emoluments for the year greater than £60,000 fallln8 wlthln the followln6 band wa5.. 2020 2019 £60,000 to £69,999 Emolument5 for the Leadershlp Team In 2020 were as shown below. The composltlon of the Leadershlp Team Is Set out In the Dire¢tor5' Report on Page 25. The figure5 below are the total cost to LCM. Including gross salaries. benefit5 in kind, employer's national insurance contributSon5 and employer's penslon contrSbutions. 2020 2019 Key mana8ement emoluments 599.670 SS9.192 42 THE LONDON CITY MISSION NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020 5a. Tan ibl fixed assets Long Freehold Leasehold land & Land & Flxtures Motor IT Property Bulldln8S Bulldlngs & Flttln85 Vehicles Capitalisaiion Development Group Total Cost or valuation at l January 2020 Transfers at C05t Addltions DSsposals al 31 December 2020 27,713,914 4,056,595 1,634,037 314,423 11.414,9691 1,999,OCK) 1379,5291 27,918,416 4,056,595 1,951,952 314,423 1,089,823 34,808.792 11,414,9691 2,868.362 1379,5291 1,539,086 35,882,656 317,915 102,184 449,263 102.184 DepreclatSon at l January 2020 Dep'n ellmlnated on dSsposal Dep'n ellminated on transfer Charge lor period at 31 December 2020 1.269.662 120,6721 177.2021 279.190 1,450,978 258,220 703.163 303,052 2,534,097 120,6721 177,2021 613,432 3,049,655 47,584 305,804 249.758 2.842 952.921 305,894 34,058 34,058 Net book values at 31 Oecember 2020 at 31 Decernber 2019 26,467,438 3,750,791 26,444,252 3.798,375 999.031 930,874 8.529 11,371 68,126 1,539.086 32,833,001 1,089.823 32,274,695 The net book value at 31 December 2020 represents flxed assets used for the followln8.' Long Freehold Leasehold Land & Land & Flxtures Motor Property Bulldln85 Bulldln85 & Flttlngs Vehlcles Capltallsatlon Development Total Headquarters, Nasmlth Court, Retllement, Hollday Homes & other properties & vehlcles Misslonary and Staff Housin8 Hope Community Homes Tenanted Properties Chrlstlan Centre5 6,315,466 478,843 15,854,327 2,734,637 1,391,652 813,544 430.634 2,092,449 106,677 26.467,438 3,750.791 205,512 244,525 8,529 68,126 1,539,086 8,615,562 18,833,489 1,391,6S2 1,385,934 2,606.364 1,539,086 32,833,001 141,756 407,238 999,031 8,529 68,126 43 THE LONDON CITY M15510N NOTESTO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020 Long Freehold Leasehold Land & Land & Fixtures Motor Property Bulldln8S Buildin8s & FlttlnBS Vehlcles Capltallsatlon Development Charlty Total Cost or valuatlon at l January 2020 Transfers Additions Dlsposals at 31 December 2020 27,713,914 4,056,595 1,634,037 314,423 11,414,969) 1,999.1)00 1379,5291 27,918,416 4,056,595 1.951,952 314,423 72,073 33,791,042 11,414,969) 2,491,856 1379,529 144,830 34,488,400 317,915 102,184 72.757 102.184 OeprÈ¢iation at l January 2020 Oep'n ellmlnated on dlsposal Dep'n eliminated on transfer Chèr8e for period at 31 December 2020 1,269,662 120.6721 177.2021 279,192 1,450,980 258,220 703,163 303,052 2,534,097 120,6721 177,2021 613,434 3,049,657 47,584 305,804 249,758 2,842 952,921 305,894 34,058 34,058 Net book value5 at 31 December 2020 at 31 December 2019 26,467,436 3,750,791 26,444,252 3,798,375 999,031 930,874 8,529 11,371 68,126 144,830 31,438,743 72,073 31,256,945 The net book value at 31 December 2020 represents flxed assets used lor the followlng.. Lon8 Freehold L•asehold Land & Land & Flxtures Motor Property Bulldlngs Bulldlngs & Flttlngs Vehl¢les Capltallsatlon Oevelopment Total Headquarters, Nasmith Court. Retirement, Holldav Homes & other propertles & vehicle5 Misslonary and Staff Houslng Hope Comrnunlty Homes Tenanted Propertles Chrlstlan Centre5 6,315.464 478,843 205,512 8,529 68,126 144,830 7,221,304 15,854,327 2,734,637 1,391,652 813.544 430,634 2,092,449 106,677 26,467,436 3,750.791 244,525 18,833,489 1,391,652 1,385,934 2,606,364 144,830 31,438,743 141,756 407,238 999,031 8,529 68,126 44 THE LONDON CITY M15510N NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020 5b. In ible fixed assets Group and charity Software Cost or valuation at l January 2020 Additions Disposals at 31 December 2020 303,763 303,763 Amortisatlon at l January 2020 Amortisatlon elimlnated on dlsposal CharBe for perlod at 31 Decembei 2020 32,546 43,395 75,941 Net book values at 31 December 2020 227,822 at 31 December 2019 271,217 asset inv Group and charltv Inve$lfj¢ Cash and COIF Property Total Valuatlon at l January 2020 5,250,289 245,443 26,860,129 32,355,861 Additlons Disposals Transfers at book value Net reallsed Iltssses118ains Net unreallsed Ilossesllgalns Valuation at 31 December 2020 Cost at 31 December 2020 601,280 12,570,509) 2,545,260 11,818,974) 13.915.000> 1,337,766 110,5001 3,695,S99 27.967,994 6,983,584 3,146,540 18,304,4831 1,337,766 350,276 3,135,491 32,021.451 10,292,920 360,776 1555,4301 3.086,406 2,340,883 14.6781 967,051 968,453 LCM hold5 a wlde range of Snvestments managed by Investec and with COIF. At year end 45%12019 33%) are overseas Investments. Unreali5ed 8ains on property represent gains on revaluatlons of Investment properties to market value on the basls of Trustees, estimates. In the case of propertles that have been transferred from Tangible Flxed Assets this year, thls is a revaluation to market value from depreciated historic cost. 45 THE LONDON CITY MISSION NOTESTO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020 london City Mission Property Services Ltd rs a private company Ilmlted by guarantee wlthout share capital (company Ng. 098815331 which Is controlled by LCM. 2020 2019 Turnover Expenditure Defi¢lt for the year 658,004 1212.7731 445,231 46,363 1667.8601 1621.497 Total Assets Total Llabllltles Net Funds 1,519,541 12,404,543) 1885,0021 1,117.608 12,447,841> 11.330.233) Debtor5 2020 Group 2019 Group 2020 Charlty 2019 Charlty Cash due from le8acles Cash due from stockbroker5 Staff loans and season tlckets GSft Ald tax recoverable Insurance premlums prepald Penslon ¢ost5 prepaid Minlstry prepayment Other prepayments Intercompany balances Other debtor5 999,333 1,264,000 999,333 1,264,000 7,755 43,841 42,961 10,768 3,826 40,926 5,535 459,177 1,614,122 32,273 19,947 42,871 10,714 7,755 43,841 42,961 10,768 3,826 40,926 1,976,857 339,552 3,465,819 32,273 19,947 42,871 10,714 60,523 60,524 1,449,277 646.151 3,S25,757 749,493 2.179,821 8a. Creditor5 Amounts falllng due within one year.. 2020 Group 2019 Group 2020 Charlty 2019 Charlty Accruals Trade ¢redilOTS Rent deposits & deferred rent receivable Llfe assurance Scheme Property development 848,276 202,496 76.IS4 1,017,276 128,841 94,180 434.855 182,696 76.153 689,729 109,824 94,180 4,044 4,044 4,044 1,130.970 1,244,341 697.748 897,777 46 THE LONDON CITY MISSSON NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020 8b. Amounts fallin due in more than One Year During the year the London City Mi55ion arranged a £2,LX)O,000 debt fa¢lllty. In November 2020 It drew down a £1,000.0￿ loan repayèble by monthly instalments Over 9 years, wlth a floating Interest rate. The tapltal repayments are scheduled to commence in November 2021 and the loans are securèd by way of char8e5 over the freehold1and and buildin8S. Pen55on c ment LCM operates a closed funded penslon scheme. The scheme Is a defined benefit scheme for all qualifying employees who elected to loln the Scheme. The assets of the scheme are hèld separately from the assets of LCM. Contrlbutlons and cost5 of the scheme are charged to the Statement of Flnanclal Actlvitie5 $0 a5 to spread the cost of penslons over employees, working Ilve5 Wlth LCM. A formal trlennial valuatiob) of the scheme was completed as at 31 May 2017 by the actuary and the valuation method used was the Projected Unlt Method. The May 2017 valuatlon showed that the market value of the scheme's assets was £4,598,00012014- £3.341,0001 excludln8 Insured pensioners, asseis and that the actuarial value ol those total assets represented 63%12014- 52%) of the beneflts that had accrued to members, after allowlng for expected future Sncrease5 In earnlngs. The deflclt on the scheme lundSn8 basls wa5 £2,655,00012014- £3,141,000). The trlennial review a5 at 31 May 2020 has been drafted and shows a reduced deficit. A revlew and fundln8 agreement between LCM and Pension scheme trustees Is required before the end of 2021. Followln8 the 2017 trlennlal valuatlon the board authorised contributlon5 of £459,000 per annum whlch commented I September 2018, Increasln8 at 3% per annum for a perlod of flve years and 4 months. LCM cornpleted an enhanced transfer exercise In 2020 and are seeking advlsors to obtain quotatlons from the market for a bulk annulty purchase. The actuary has carrled out a further full valuatlon of the scheme as at 31 December 2020 to produce the information required under FRS 102- Section 28 Disclosure Report. 47 THE LONDON CITY MISSION NOTESTO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020 The assets in the scheme were.. 2020 2019 rooo 731 3,517 681 287 6,676 11,892 2018 2017 2016 £'ooo 686 3,931 641 142 6,888 12,288 £'ooo 587 3,092 616 204 6,270 10,769 £'ooo 519 3,145 518 356 6.676 11,214 £'ooo 2,942 1,327 Equltles Bonds and gilts Diversified 8rowth funds Cash Insured pensioners Total market value of assets Present value of scheme 92 6,760 11,121 112,3091 1211 112,1541 111,0851 111,9831 112.4061 12621 13161 17691 11,2851 Deficlt at 31 December Analysis of the amounts char8ed to resources expended would be.. 2020 £'ooo 2019 Expenses Analysls of the amount credited to penslon finance Income would be.. Interest on pension scheme liabllllles Expected return on penslon scheme assets Losses on settlements 12441 242 2211 13141 312 Analys15 of actuarial loss.. Difference between actual and assumed return on sset Experience Ilossl on obllgatlons Change of basis 83in/llossl on obli8ations Actuarlal galn/llossI on obligations 876 93 11,0681 99 832 39 1,3011 1430 Movement In deflclt durln8 the year.. 2020 £'ooo 12621 2019 Deflcit at l January 2020 Expenses Contributlon5 Pen51on finance income Actuarial 8ain/llossl Deficit at 31 December 2020 13161 563 12231 1991 486 4301 IstOT Ins an 10$5e 2020 £'ooo 2019 2018 £'ooo 2017 £'ooo 2016 £'ooo Dlfference between the expetted and actual return on scheme asseis amount percentage of scheme assets 876 7.1% 832 7.0% 17511 17.0%) 140 1.2% 1,809 16.3% 48 THE LONDON CITY MISSION NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020 2020 £'ooo 2019 2018 £'ooo 2017 2016 £'ooo ExperSence 8alnll1055l on obllEatk*ns amount percèntage of scheme Ilabilitie5 93 0.8% 39 0.3% 462 3.9% 123 10.2%1 Total actuarSal 8aln/llossl arnO￿nt percentage of scheme liablllties 1991 10.8%) 14301 13.5%) 99 0.9% 550 4.6% 16091 14.9%) LCM established a Broup personal pension plan from Aprll 2006 with an employer's contribution currently of between 11.5% and 13.8%. sln nt value of the tion and Sn the lalr v s of a55ets 31 D•¢ember 2020 31 Dec•mber 2019 £'ooo 11,085 314 15071 Present value of obllgatlon ai be8lnnln8 of yeai Interest C05t Beneflts pald Charges paid Actuarial18ainl/loss Llabllllles extln8ulshed on settlements Present value of obll8atlon at end of year 12,154 244 14211 975 1643 12.309 1,262 12.154 31 D8cemb•r 2020 31 December 2019 £'ooo £'ooo 11,892 10,769 242 312 563 486 14211 15071 876 832 18641 12,288 Falr value of scheme a55ets at beglnnln8 of year Expected return on scheme a55ets Contrlbutions Benefit5 paid Attuarlal 8ain/llossl on scheme assets Assets dlstrlbuted on settlements Falr value of scheme asset5 at end of year 11,892 io. As a re8i5tered chailty, LCM 15 not liable to laxatlon on it5 income from charitable actlvltle5. Income tax 15 recovered on 8lfts donated by supporters under ihe Gift Ald Scheme. 49 THE LONDON CITY MI5510N NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020 ii. Des nated funds Group and charity Balante Balance 31 Dec 2020 l Jan 2020 Dlsposals Transfers AddltSons Oep'o) Mlssionary and siaff houslng Headquarters, retirement, other properties and vehicles Housin8 for the Marginallsed Tenanted propertles Chrlstlan Centres De518nated Assets (Flxed Assets less Debt) New Misslonary Housln8 Market Value Investment Property Ministry sustalnabllSty Penslon deflclt 15,902,760 11,614,0001 8,526,704 1105,0001 1,795,053 2.055,138 1305,4621 17,833,489 1716,9471 638,381 182,8321 8,260,306 1,602,544 2,480,956 3,120,649 31,633.613 11.909.5291 1196,2021 114,6901 1,391,652 1959,6051 83,323 128,2101 1,385,935 1807,2691 91,521 177,5361 2,327,365 884,9701 2,868,363 1508,7301 31,198,747 1190,5291 530,OOQI 16,865,131 1530,0001 116,865,131) 13,998,4971 5,100,ocKJ 11,600,0001 54,128,744 17.508,0261 18.280,101 5,218,396 19,500,000 3,500,WO ,086,759 1508,7301 54,198,747 The remaining value of Flxed A55ets totallin8 £634,260 as detalled in Note S are assets held In Restrlcted Funds. Transfers represent the reallocation of propertles, at book value, between funds. ement Hollda nd ertie5 Used for Desl Pur Thls fund represents the carrylng value of propertles and other tanglble fixed assets whlch are used for charltable purposes, includln8 LCM'S largest asset Nasmlth House, and Is not avallable to spend on the general runnln8 of LCM. Some Nasmlth Courl flats remain withln this fund but the majority are now held a5 Inveslment propertles. Mlsslonarie aff Hovsin Thls fund represents the value of resldentlal properties used to house LCM staff. Property whlch Is not currently needed to house staff and Is belng rented out lo partner organlsatlons wlth similar aims or to private tenants is included in the Tenanted Propertie5 Fund. Housin for the Mar alised This fund include5 the cost of slx propertles In Brixton which are used to provide housing and support to the vulnerèbly housed under the banner of Hope Community Homes and a single property in Kin8'5 Cross, known a5 Banquet House. 50 THE LONDON CITY MISSION NOTESTO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER ZOZO New MSssionar Housin At 31 December 2020, there were no propertiès intended for missionary housin8 that were under offer. The trustees expect to desi8nate funds for new misslonaiy housin8 from tlme to tlme. Tenanted Pro rties Thls fund Includes houses and Christlan Centres not needed at the present time fcsr houslng or mlnlstry needs. and are belnÈ rented out until such time that they can be used directly by LCM. Rented out properties that are ¢onsldered to be held solely for the purpose of financlal 8aln are held as Investment Propertles. tian entr Thls fund represents the value of the Cenlres used In the actlvitles of LCM as well as the resldentlal accommodatlon on the 51te and other tanglble flxed assets. Christian Centres currently not beln8 used by LCM for mlnlslry purposes and which are fented out are generallyclasslfled a5 Investment properlles because they are held solely for flnanclal galn whilst one Is classlned as a Tenanted Property. Market V l e Inv Pr MVIP Inv Pr nFun The Investrnent Property and Revaluallon funds were closed at the end of 2019. The balance on the Market Value Investment Property IMVIPI fund was transferred to the new deslgnated Mlnlstry sustalnablllly fund al the end of 2020. Minls Was created at the end of 2020 to fund nel expenditure before Investments whlch makes up most of the projected annual cash shortfall. In Ilne wlth the Lon6-term Flnanclal Susiainabi1Sty Obiectlve the fund Is expected to steadily reduce over many years. As thi5 func5 reduces the planned needs of LCM wlll be met by steadily increasin8 donalSon income. Itls expected that the mlnlstry 5U5talnability fund will be adlusted each year in increments of £O.Sm. LCM Board havin8 revSewed the trlennlal actuarial valuation of the closed DB pension s¢heffle and the FRS 102- Section 28 Dlsclosure Report for 31 December 2020 have designated £3.5m I£S.Im in 20191 to eliminate the deficit at a time in the futuie dependent on the consideratlons of the Board, includin8, but not limlted to, prevailing market conditions. 51 THE LONDON CITY M15510N NOTES TO THE ACCOU￿5 FOR THE YEAR ENDED 31 DECEMBER 2020 12. General fun Balance l Jan 2020 Net movement Balan¢¢ 31 Dec 2020 Group General reserve less penslon defl¢it 8,997,609 1686.0091 8,311,600 Balancè l Jan 2020 Net movement Balance 31 Dec 2020 Charitv General reserve les5 pension deflclt 9,659,842 1479,2381 9,180,604 13. rl¢ted fund Group and eharltv Trffrom General B•lan¢e r•s•rv• 31 Dec 2020 Balanc• l Jan 2020 Galns oh In¢ome Investments Expenses Guaranteed payment5 Grants LCM Ploneers Retired fund. Propertv Hollday homes fund Rellel fund - Property Relief fund General Re5trlcted Chrlstian Centre fund Restricted ministry fund 59,839 177.104 72.611 159,8391 1177,1041 172,6111 13,8201 359,080 729,849 282.OCQ 30.ICQ 355,260 711,379 279,000 40.630 4.000 151,071 1,541,340 14,266 132,7351 13,tsX)I 1185.8371 18,4781 1506,5621 11,017,251> 196,367 8,478 170,650 486,983 1,575,679 1,OIS.647 132,735 men Income recelved from churches where there Is a dedlcated church.altached rnlsslonary were treated as Guaranteed Payments and are contrlbutlons towards the costs of provSdlng the mlsslonary. LCM Pioneer5 Donallon5 recelved speclflcally as 8 contrbbutlon towards the employment and tralnin8 of the LCM Pioneers are treated as restricted and are offset a8ain5t such costs. Retlre Fun lonarles Wldows and Or Set up as a separate fund in 1846 to help ffli55ionarie5 who could no longerwork. the fund toda¥ enables allowances lo be paid to retlred staff who retbred belore the establlshment of LCM'S pension scheme In 1993, Thi5 fund also covers the running cost of properties used to house retifed stafl. The value of this fund 15 represented by the book value of the two properties contained within this fund. 52 THE LONDON CITY MISSION NOTES TO THE AccouKfs FOR THE YEAR ENDED 31 DECEMBER 2020 Holida Home5 Fund The first holiday home in Ventnor, 151e of Wi8ht, was donated to LCM In 1869 and the fund'5 purpose was to ensure misslonaTies and their famllles could enjoy a break from the pressure of urban mission work. The Board declded in 2012 that the properties used for holiday homes should be 501d and the one Property belon8ing to the Fund was sold in 2013 wlth the proceeds transferred to a new Reslrl¢ted Fund to set a8aln5t the Penslon Deficlt. The balance of the fund Is represented by investments and It Is Intended to transfer the balance to the Retired Fund lor the benefit of retlred missionaries and staff. Relief Fund From the early days of LCM, the desperate need ofthe people amon8St whom the mlsslonarles worked became apparent. Supporters of LCM specifically sent donatlons to help the needy that they read or heard about from m1551onarles' reports and a relief fund wa5 eslabllshed. The Fund now Is represented by the Webber Street Centre. Restricte Christian nd and Restricted Mlnl These funds represent a88re8ated Smaller donatlons that are restrlcted for LCM'S work throu8h Chr15tian Centre5 or other mlnlstrles. 14. Endowment fund Balance l Jan 2020 8alance 31 Dec 2020 Group and charltv Net movement Perpetual trusts 1,244,998 12,9161 1,242,082 Pei et al trus These con515t of a number of separate funds establlshed durln8the hlstory of LCM to provlde an Income towards the on-golng costs ol particular aspects of the Mlssion's work. The donors have Insisted that the capltal cannot be spent. The Income generated has been used against the salary costs of the designated mlnlstrle5. The net movement solely relates to the movernent In the value of the Inve5tment5. 53 THE LONDON CITY MISSION NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020 15. An Sis of net as5 ts between und Fund balances at the Ènd of year are represented by.. Group Unrestrl¢ted funds Restrlcted Endowment funds funds 2020 Z019 Tangible fixed assets Intanglble flxed assets Investments Current assets Current 32,303,005 529,996 32,833,001 31,975,788 227,822 227.822 236,165 29,235,543 2,879,406 1,543,826 1532,4821 1,242,082 32.021,451 2,346.924 27,438,042 1,375,145 11,114.1201 II,000,DOOI 121.3081 62,510,348 11,114.1201 11,000,000) 121,3081 65,293,770 11,051,112) Lon8-terrn debt Pension liability Total net assets 1316,4171 59,657,611 1,541,340 1,242.082 Restrlrted fund5 Charlty Unrestfl¢ted fund5 Endowment lunds 2020 2019 TongSble fSxed assets Intan8lble flxed assets Investments Current assets Current 30,908,748 529,996 31,438,743 31.621,166 227,822 29,768,024 1,011,344 4,176,962 227,822 236,165 27,438,042 1,690,174 1,242,082 32,021,451 4,176,962 1680,8991 11,000,000> 121,308 63,379.350 1.541,340 1680,8991 1970,7831 Lon8-term debt Penslon Ilablllly Total net assets 11,wo,0001 121,3081 66,162.772 1316,4171 59,698.347 1.242.082 54 THE LONDON CITY MISSION NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020 16. Prior ear com aratlve funds- incomin and out oln resour¢es- rou and charit Unrestrlrted Restrlcted Endowment funds funds funds 2019 Total INCOME Voluntary Income Donations Le8acies Income from Investments Income from charltable artlvltles Guaranteed payrnent5 and trading receipts at café5, HQ Bookroom and at Christian Centres Income from other tradlng actlvitlès Rents Fees & other charges Other Income Net 8ain on Sale of tangible fixed assets TOTAL INCOME Expend5ture on raSsln8 funds Management of rented properties Fundraising and supporter relations Investment mana8ement fees 1,895,580 1,647.359 758,622 554,190 2,000 4.927 2,449.770 1,649,359 772,697 9,148 313,370 102,411 415,781 509.760 46,363 509.760 46,363 1,537.711 6.708,765 1,537,711 7,381,441 663.528 9,148 356,945 474,858 19,597 8SI,400 356,945 474,858 19,597 851,400 NET INCOME AVAILABLE FOR CHARITABLE 08JECTIVES 5,857,365 663,528 9,148 6,530,041 EXPENDITURE ON CHARITABLE AcfiviTIES Mission activitie5 LCM Pioneers TraSnSn8 and church development City Vlslon, Clty Challenge and Urban Track Chrlstian Centres Rètiremènt housinB and other costs Relief to the needv Hope Communlty Homes Tradlng costs at cafés, HQ Bookroom and at Chrlstl8n Centres Christian Centre developments TOTAL CHARITABLE EXPENDtruRE TOTAL EXPENDITURE 5,335,139 118.819 234,795 118.781 1,595,214 329,962 295.236 84,190 479,346 103,440 9,148 5,823,633 222,259 234,795 118,781 1,595,214 333,782 298,236 84,190 3.820 3.000 143,883 792,358 9.048,377 9,899,777 143,883 792,358 9,148 9,647,131 9,148 10,498,531 589.606 589,606 NET INCOMEIIEXPENDITUREI BEFORE INVESTMENT GAINSILOSSES Realised net Eains on Investments Unrealised 8ains/l105se51 on investments 13,191,012 178,7911 9,670,954 73,922 13,117,090 155,1321 9,891,641 23,659 139 S90 81,097 NET INCOMEIIEXPENDITUREI BEFORE TRANSFERS Transfer between fund5 NET INCOMEIIEXPENDITUREI A￿ER TRANSFERS Actuarial110ssèsllgains on defined benefit pension scheme NET MOVEMENT IN FUNDS RECONCILIATION OF FUNDS Total funds brought forward FUND BALANCES CARRIED FORWARD 6,401,151 155.019 163,249 6,719,419 6.401,151 155,019 163,249 6,719,419 430.000 5.971 ISI 430,000 6,289 419 155.019 163,249 57,155,202 1,420,660 63.126.353 1.575,679 1,081,749 59,657,611 1,244,998 65,947,030 55 THE LONDON CITY MISSION NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020 17. Ca Ital and other com itments There are no capital commltments as at 31 December 2020. 18. Post balance sh et eve nt ro elt As at 31 December 2020. LCM was In dlscussions wlth a number of developers to purchase orenter into development a8reements for a number of propertles. No material change from these ne8Otiatitsn5 need to be reflected in the fe-valuation of properties. 19. erati le mml Total commitment5 under nonrfancellable operatln8 leases for photocoplers, and offlce equlpment computers whSch explre.. 2020 2019 Wlthln one year Between two and Nve years In more than flve years 17,783 21,189 12.882 4,019 38,972 16.901 56 THE LONDON CITY MISSION NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020 20. Su ort costs Group and tharlty HQ staff IT, and Penslon and Iwe premlses Insurance Total Management of rented propertles Fundraisin8 and supportèr relatlons Mission activltles Chrlstlan Centres Retlrement housing City Vlsion and City Challenge Relief to the needy Developmènt of Chrlstlan Centres LCM Ploneer5 Tralnin8 and church development Hope Community Homes Total 91,780 176,942 914,359 95,894 74,704 72,799 162,466 28,535 151,947 165,990 53,166 1,988,582 6,249 23,069 704,122 70,871 5,087 45.620 118,449 7,825 105,854 31,554 231.566 256,905 1.875.386 27,404 194,169 6,369 86,160 182 118,600 44,092 325.007 28,535 26,759 250,592 26,759 264,635 8,109 83,059 435.958 3,563,564 71,887 71,887 21.784 1,139,024 Allocable Costs Head office staff IT, HR, offlce supplles Departmental costs Insurance Premlses 1,988,582 215,090 410,046 103.643 410,246 1,139,024 435,958 3,563,564 Pen51on and Ilfe Insurance 21. ate There were no related party transactions In the year In respect of Board members and members of the Leadership Team. 22. Donations from Tr 5t Twelve trustees donated In the year totalled £103,70512019 £86.3801. 57 THE LONDON CITY MISSION NOTESTO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020 23. Charit Statement of Flnancl l A lvl I The below Charity Statement of Financial Activities relates to the Charlty only, and so excludes the activities of the subsidiary undertaking. Unre5trScted Restrlcted Endowmènt funds funds funds 2020 Total 2019 Total INCOME Voluntary Income Donatlons Legacles Grant5 Ir*come from Investm•nts Income from charltable actlvltles Guaranteed payments and trading receipt5 at cafés, HQ Bookroom and al Christian Centres Income from oth•r Iradln8 actlvltles Rents Other Income Fee5 and other char8es Management fees Net 8aln on sale of tanglble flxed assets TOTAL INCOME Expendlture on ralslni funds Man38ement of rented properties Fundraisin8 and supporter relations Investment management lees 1,597,505 1,151,032 764,439 2,361.943 I,ISl,032 177,104 677.546 2.449,770 1,649,359 177,104 14,266 663,281 772,697 101,969 59,839 161,808 415,781 461,248 461,248 509,760 50,000 9,000 791,143 4,825,178 1,015,647 50,000 9,000 791,143 5,840,825 9,0 1.537,711 7,344,078 337,445 525,001 13,921 876,367 337,445 525,001 13,921 876,367 356,945 474,858 19,597 8SI,4 NET INCOME AVAILABLE FOR CHARITABLE OBJEcfivES 3,948,810 1,015,647 4,964,457 6,492,678 EXPENDITURE ON CHARITABLE ACTIVITIES Mi55lon activlties LCM Pioneers Trainlng and church development Clty Vlslon, Clty Challenge and Urban Track Chrlstian Centres Retlremenl housin8 and other cos15 Rellef to the needy Hope Communlty Homes Trading costs at cafés, HQ Bookroorn and at Christian Centres Christian Centre developments TOTAL CHARITABLE EXPENDITURE TOTAL EXPENDITURE NET INCOMEIIEXPENDITUREI BEFORE INVESTMENT GAINsIL055ES Reallsed net gains on investments Unrealised gains/l1055esl on investment5 NET INCOMEIIEXPENDITURE} BEFORE TRANSFERS 4,816.524 177,981 296,635 937,820 72,611 5,754,344 250,592 296.635 5,783,509 222,259 234,797 115,516 1,561,012 236,033 405,288 83,059 115,516 I,S61,012 239,853 408,288 83,059 118,781 1,595,214 333,782 298,236 84,190 3,820 3.000 38,60) 49,817 7.780,465 1.017,251 8.656,832 1,017,251 38,600 49,817 ,797,716 9,674,083 143,883 173,622 8,988.273 9,839,673 13,831.6541 350.276 3,171.142 11,6041 3,833.2581 12,495,595 350,276 155,133.001 3,135,491 9,891,642 132.735 12.915 1310,2371 134.3391 12,915 347,4921 7,340,914 58 THE LONDON CITY MISSION NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020 23. Charit Statement of FSnancial ActlvStles Icontinuedl Unrèstrlctèd Restrlcted ErKlowment funds funds fund5 2020 Total 2019 Total NET INCOMEIIEXPENDITUREI BEFORE TRANSFERS Transfer between fund5 NET INCOMEIIEXPENDITUREI AFTER TRANSFERS Actuarial Ilossesllgalns on defined benefit pension scheme NET MOVEMENT IN FUNDS RECONCILIATION OF FUNDS Total funds broughi fO￿ard FUND BALANCES CARRIED FORWARD 1310,2371 134,3391 12,9151 1347,4921 7,340,914 1310,2371 134.3391 2,915 347,492 7,340,914 199,0001 1409,237 199,OC)01 12,9151 1446,492 1430,0001 6,910,914 134,3391 63.788.586 1.575,679 63,379,350 1,541,340 1,244,998 66,609,264 1,242.082 66,162,772 59,698,347 66,609,263 59