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2020-08-31-accounts

Financial Statements

For the year ended 31 August 2020

West London Mission Housing Association Limited

West London Mission Housing Association Limited

Contents

Page
Directors’ report 1–3
Independent Auditor's report 4-6
Consolidated Statement of Comprehensive Income 7
Consolidated Statement of Financial Position 8
Association Statement of Financial Position 9
Consolidated Statement of Cash Flows 10
Notes to the financial statements 11-25

West London Mission Housing Association Limited

Company information

Directors

Rev P Cornick Rev N Cowgill Rev A J Dart Mr J M Furniss Mr J C Hicks Mr J S Neilson Mr R Ovenden Mr M J Single Ms ACJ Siow Mr G T Slater Rev P Weary

Secretary Ms C Dance Registered office 19 Thayer Street London W1U 2QJ Registered company number 495241 Registered charity number 281929 Regulator of Social Housing registration number LH3373 Auditors Moore Kingston Smith LLP Devonshire House 60 Goswell Road London EC1M 7AD

West London Mission Housing Association Limited

Directors’ report For the year ended 31 August 2020

The directors present their report and the consolidated financial statements for the year ended 31 August 2020.

Principal activities

The company is a charitable housing association limited by guarantee. Its principal activities are:

These financial statements incorporate the financial statements of the individual housing and community services located in the properties mentioned therein.

These financial statements also corporate the incoming resources, resources expended, and the assets and liabilities of the West London Mission Donald Soper Fund. The object of the Fund is to support the charitable housing and community services of the West London Mission Circuit of the Methodist Church (“the Circuit”), commonly known as WLM Services.

The company is the registered owner of various properties in which the housing and community services of the West London Mission are carried on. The staff of all these services are jointly employed by the company and the West London Mission Circuit.

The West London Mission Circuit manages the following properties owned by the company and the resulting surplus or deficit (except for amortisation and depreciation on housing properties, amounts set aside for dilapidations and surplus on disposal of properties) is passed to the West London Mission Circuit.

During the period under review the occupants of each property were as follows:-

WLM St Luke’s Centre It is a service focussing on digital and financial inclusion for 25A Wincott Street residents in Kennington as well as a 26 bedroom London SE11 residential space developed in partnership with the Pret Foundation Trust for their ‘Rising Stars’ programme and for key workers. WLM The Haven It provides specialist residential care for men with long term 280 Holly Park alcohol dependency. London N4 WLM Burgess Park House It provides supported housing for ex-service people who 56 Camberwell Road have experienced homelessness offering support in London SE5 sustaining accommodation.

WLM Cherry Tree House It provides follow on accommodation for residents of 343 Clapham Road Burgess Park House to move on to their own flat when London SW9 ready for independent living.

The company leased the following property to the Trustees for Methodist Church Purposes for a term of ten years from 1 April 2005, and a new lease is to be put in place with effect from 1 April 2015, the West London Mission Circuit Meeting being the managing trustees for that term:

WLM Katherine Price Hughes House It is an "approved premise" under the Criminal Justice and 28 Highbury Grove Courts Service Act 2000 and provides housing and support London N5 services for men released from custody on licence.

1

West London Mission Housing Association Limited

Directors’ report (continued) For the year ended 31 August 2020

Directors

The members set out below have held office during the whole of the period from 1 September 2019 to the date of this report unless otherwise stated:

Rev P Cornick Rev N Cowgill Rev A J Dart Mr J M Furniss Mr J C Hicks Mr J S Neilson Mr R Ovenden Mr M J Single Ms A C J Siow Mr G T Slater Rev P Weary

The amount guaranteed by each director in the event of the winding-up of the company is £1.

Directors’ responsibilities

Registered Providers’ legislation requires the directors to prepare financial statements for each financial period which give a true and fair view of the state of the Association and the group as at the end of the financial period and of the income and expenditure of the group for the period ended on that date. In preparing those financial statements, suitable accounting policies have been used, framed, to the best of the directors’ knowledge and belief, by reference to reasonable and prudent judgements and estimates and applied consistently. Applicable accounting standards have been followed. The directors are also required to indicate where the financial statements are prepared other than on the basis that the Association is a going concern.

The directors are responsible for ensuring that arrangements are made for keeping proper books of account with respect to the Association's transactions and its assets and liabilities and for maintaining a satisfactory system of control over the Association's books of account and transactions. The directors are also responsible for ensuring that arrangements are made to safeguard the assets of the Association and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Value for Money statement

We are committed to providing excellent services that offer real value to our service users at a reasonable cost to funders. Our policy is to cover the full cost of services including proper provision for cyclical repairs. We benchmark our staff costs against comparable roles in the public and voluntary sector, and aim to develop the talents of all staff by a disciplined performance management process. We employ a Head of Central Services to ensure value for money in contracting for purchases of goods and services, and undertake competitive tendering for major works to properties. As far as feasible we focus on energy efficiency.

2

West London Mission Housing Association Limited

Directors’ report (continued) For the year ended 31 August 2020

Statement as to disclosure of information to auditors

We have taken all the necessary steps to make ourselves aware, as directors, of any relevant audit information and to establish that the auditors are aware of that information. As far as the directors are aware, there is no relevant audit information of which the company’s auditors are unaware.

This report has been prepared in accordance with the special provisions of S414 (3) of the Companies Act 2006 relating to small companies.

Brexit

The directors believe that the Association will not be affected by the UK’s departure from the European Union, because all of its activities are within the UK, and any staff who are EU citizens will continue working in the UK.

Auditors

Moore Kingston Smith LLP were appointed as auditors in September 2020 following a competitive tender process. They have signified their willingness to continue in office and a resolution to re-appoint Moore Kingston Smith LLP as auditors to the company will be proposed at the Annual General Meeting.

Approved by the Board on 15 February 2021 and signed on its behalf by

Mr M Single

Director

3

West London Mission Housing Association Limited

Independent auditor’s report to the members of West London Mission Housing Association Limited

Opinion

We have audited the financial statements of West London Mission Housing Association Limited (‘the company’) for the year ended 31 August 2020 which comprise the Consolidated Statement of Comprehensive Income, the Consolidated and Association Statements of Financial Position, the Consolidated Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 ‘The Financial Reporting Standard Applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

Other information

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

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are

4

West London Mission Housing Association Limited

required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors’ responsibilities statement set out on page 2, the directors 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 directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

5

West London Mission Housing Association Limited

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

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

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to any party other than the charitable company and charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Andrew Stickland (Senior Statutory Auditor) for and on behalf of Moore Kingston Smith LLP, Statutory Auditor

Date: 9 April 2021 Devonshire House 60 Goswell Road London EC1M 7AD

6

West London Mission Housing Association Limited

Consolidated Statement of Comprehensive Income For the year ended 31 August 2020

Notes
Turnover
3
Operating costs
3
Operating (deficit)
3
Other income
Interest payable and similar charges
Change in fair value of investments
(Deficit) on ordinary activities before
taxation
5
Tax on ordinary activities
(Deficit) for the year
Transfer from designated reserves
(Deficit) for the year carried forward
Balance brought forward at 1 September
2019
Balance carried forward at 31 August
2020		 2020
£
1,521,734
(1,751,885)
(230,151)
234,922
(45,386)
(15,254)
(55,869)
-
(55,869)
39,580
(16,289)
283,942
267,653		 2019
£
1,339,299
(1,513,082)
(173,783)
206,932
(64,228)
3,025
(28,054)
-
(28,054)
39,534
11,480
272,462
283,942

The Association’s results all relate to continuing activities. The Association has no recognised surpluses or deficits other than the deficit for the current or prior year.

7

West London Mission Housing Association Limited

Consolidated Statement of Financial Position as at 31 August 2020

Notes
Fixed assets
Housing properties – at cost
8
Less: Depreciation
8
Total Housing properties
Investments
Current assets
9
Debtors
11
Cash at bank and in hand
Creditors: Amounts falling due within
one year
12
Net current (liabilities)
Total assets less current liabilities
Creditors – amounts falling due after
more than one year
Loans and mortgages
13
Government grants
Net assets
Reserves
14		 2020
£
7,060,941
(2,331,479)
4,729,462
257,926
291,299
16,876
308,175
(738,122)
(429,947)
4,557,441
(872,077)
(2,468,709)
1,216,655
1,216,655		 2019
£
7,006,061
(2,206,700)
4,799,361
263,171
390,245
20,434
410,679
(724,908)
(314,229)
4,748,303
(897,919)
(2,577,760)
1,272,624
1,272,624

These financial statements have been prepared in accordance with the special provisions of S.414 (3) of the Companies Act 2006 relating to small companies.

These financial statements were approved by the Board on 15 February 2021 and signed on its behalf by

Mr G T Slater, Director

Mr M Single, Director

8

West London Mission Housing Association Limited

Association Statement of Financial Position as at 31 August 2020

Notes
Fixed assets
Housing properties – at cost
8
Less: Depreciation
8
Total Housing properties
Current assets
Debtors
11
Cash at bank and in hand
Creditors: Amounts falling due within one
year
12
Net current (liabilities)
Total assets less current liabilities
Creditors – amounts falling due after more
than one year
Loans and mortgages
13
Government grants
Net assets
Reserves
14		 2020
£
7,060,941
(2,331,479)
4,729,462
289,504
9,044
298,548
(738,122)
(439,574)
4,289,888
(872,077)
(2,468,709)
949,102
949,102		 Restated
2019
£
7,006,061
(2,206,700)

4,799,361

380,350
9,558

389,908
(724,908)

(335,000)

4,464,361
(897,919)
(2,577,760)

988,681

988,681

These financial statements have been prepared in accordance with the special provisions of S.414 (3) of the Companies Act 2006 relating to small companies.

These financial statements were approved by the Board on 15 February 2021 and signed on its behalf by

Mr G T Slater, Director

Mr M Single, Director

9

West London Mission Housing Association Limited

Consolidated Statement of Cash Flows for the year ended 31 August 2020

Cash outflows from operating activities
Deficit for the financial year
Depreciation charge
Amortisation credit
Decrease / (increase) in debtors
Increase in creditors
Net cash generated from operating activities
Cash flows from investing activities
Interest and rent received
Purchase of investments
Purchase of fixed assets
Disposal of fixed assets
Net cash inflows from investing activities
Cash flows from financing activities
Interest paid
Loan repaid
Net cash (outflows) from financing activities
Net (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
Cash and cash equivalents comprise:
Cash at bank and in hand
Analysis of changes in net (debt)
Cash at bank and in hand
Loans due within one year
Loans due after one year
Net debt

At 1.09.19
£

20,434
(212,842)
(897,919)		 2020
£
(183,639)
124,779
(109,051)
98,844
13,216
(55,851)
188,410
(10,009)
(87,750)
32,870
123,521
(45,386)
(25,842)
(71,228)
(3,558)
20,434

16,876


16,876
Cashflows
£

(3,558)

-

25,842

22,284
2019
£
(209,999)
106,167
(109,049)
(20,530)
122,088

(111,323)


197,952
(10,014)
(45,196)
37,663
180,405

(64,228)
(6,855)
(71,083)
(2,001)
22,435

20,434
20,434
At 31.08.20

£
16,876
(212,842)
(872,077)
(1,068,043)
(1090,327

10

Notes to the financial statements For the year ended 31 August 2020

West London Mission Housing Association Limited

1. Status of the company

The company is incorporated under the Companies Act 2006 and is a company limited by guarantee, without a share capital. It is also a registered charity, registration number 281929, and as such is exempt from corporation tax.

It is also registered with the Regulator of Social Housing, registration number LH3373, in accordance with section 5 of the Housing Association Act 1996, as it is engaged in housing activities as defined in that Act.

The Directors have assessed whether the use of the going concern basis is appropriate and considered possible events or conditions that might cast significant doubt on the ability of the charity to continue as a going concern. The Directors have made this assessment for a period of at least one year from the date of approval of the financial statements and have considered the potential impact of the Covid-19 pandemic. In particular, the Directors have taken account of pressures on income and the likely impact of the pandemic on expenditure. West London Mission Circuit continues to provide support to the Company and have confirmed that they will continue to support the Company for the foreseeable future and at least for 12 months from approval of these financial statements. On this basis the Directors have concluded that there is a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

2a. Accounting policies

a) General information and basis of accounting

The financial statements have been prepared under the historical cost convention, modified to include certain items at fair value, in accordance with Financial Reporting Standard 102 (FRS 102) issued by the Financial Reporting Council, the Housing SORP 2018 or where silent, the Charities SORP 2018, and comply with the Housing and Regeneration Act 2008 and the Accounting Direction for Private Registered Providers of Social Housing 2019.

In accordance with the small companies regime, the company has taken advantage of the exemption available, by virtue of its size, from the requirement to prepare a Strategic Report.

These financial statements incorporate the financial statements of the individual housing and community services located in the properties mentioned therein.

The Association is the sole Trustee of The Donald Soper Fund and so as required by the Charities SORP, these financial statements incorporate the income, expenditure, assets and liabilities of the West London Mission Donald Soper Fund, on a line by line basis. This is the first year that the West London Mission Donald Soper Fund has been consolidated following a review of accounting policies. The prior year figures have been restated to incorporate the result of the West London Mission Donald Soper Fund for the prior year.

The West London Mission Circuit manages the properties owned by the company and the resulting surplus or deficit (except for amortisation and depreciation on housing properties, amounts set aside for dilapidations and surplus on property disposals) is passed to or financed by the West London Mission Circuit.

b) Property, plant and equipment - housing properties

Housing properties are shown at cost, including associated legal fees and charges and other expenses of a capital nature. Component accounting has been adopted as recommended by the Statement of Recommended Practice (SORP) relating to housing properties and properties have been split into land, structure, roof, electrics, central heating and kitchen.

11

West London Mission Housing Association Limited

Notes to the financial statements For the year ended 31 August 2020

The components of the properties are shown at cost. Cost includes the cost of acquiring land and buildings, development costs, interest charges incurred during the development period and expenditure incurred on improvements, which comprise the modernisation and extension of existing properties. Interest on mortgage loans financing development is capitalised up to the date of practical completion of each scheme.

Each identified component is depreciated over its useful economic life as follows:

Land Not depreciated
Structure 50 Years
Roof 30 Years
Electrics 25 Years
Central heating 15 Years
Kitchens 10 Years

Any permanent diminution in the value of such properties is charged to the Statement of Comprehensive Income as appropriate.

c) Social Housing Grant and other government grants

Where grants are received from government agencies such as the Homes and Communities Agency, local authorities, devolved government agencies, health authorities and the European Commission which meet the definition of government grants they are recognised when there is reasonable assurance that the conditions attached to them will be complied with and that the grant will be received.

Government grants are recognised using the accrual model and are classified either as a grant relating to revenue or a grant relating to assets. Grants relating to revenue are recognised in income on a systematic basis over the period in which related costs for which the grant is intended to compensate are recognised. Where a grant is receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support with no future related costs, it is recognised as revenue in the period in which it becomes receivable.

Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Grants received for housing properties are recognised in income over the expected useful life of the housing property structure. Where a grant is received specifically for components of a housing property, the grant is recognised in income over the expected useful life of the component.

Government grants are recognised as revenue when the grant proceeds are received or receivable. Where a grant imposes specified future performance-related conditions it is recognised as revenue when the performance-related conditions are met. A grant received before the revenue recognition criteria are satisfied is recognised as a liability. Where government grant is provided for the construction of housing properties within a specific scheme, then the performance related condition is met when the construction of the housing properties is complete.

d) Recycling of grants

Where there is a requirement to either repay or recycle a grant received for an asset that has been disposed of, a provision is included in the Statement of Financial Position to recognise this obligation as a liability. When approval is received from the funding body to use the grant for a specific development, the amount previously recognised as a provision for the recycling of the grant is reclassified as a creditor in the Statement of Financial Position.

12

West London Mission Housing Association Limited

Notes to the financial statements For the year ended 31 August 2020

On disposal of an asset for which government grant was received, if there is no obligation to repay the grant, any unamortised grant remaining within liabilities in the Statement of Financial Position related to this asset is derecognised as a liability and recognised as revenue in surplus or deficit in the Statement of Comprehensive Income.

e) Furnishing, fittings and equipment

All small additions and replacements for all projects are written off in the period of purchase, with the exception of major items which are written off over 3 to 5 years.

f) Reserves

The property equity reserve is to record realised gains on the disposal of properties and absorbs the depreciation charge.

The cyclical maintenance reserve is based on the association’s obligation to provide on a continuing basis for the repairs and maintenance of its properties, based on a planned programme of works.

g) Taxation

The company has been granted charitable status and is not liable to corporation tax on its activities for the year.

h) Turnover

Turnover represents room fees and service charges receivable net of voids, revenue grants and other income. The other income relates primarily to other grants. Service charge income is recognised when expenditure is incurred as this is considered to be the point at which the service has been performed and the revenue recognition criteria met. Turnover arises solely within the United Kingdom.

i) Financial instruments

Financial assets and financial liabilities are recognised when the company becomes a party to the contractual provisions of the instrument.

Financial assets carried at amortised cost

Financial assets carried at amortised cost comprise rent arrears, trade and other receivables and cash and cash equivalents. Financial assets are initially recognised at fair value plus directly attributable transaction costs. After initial recognition, they are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

If there is objective evidence that there is an impairment loss, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the financial asset’s original effective interest rate. The carrying amount of the asset is reduced accordingly.

A financial asset is derecognised when the contractual rights to the cash flows expire, or when the financial asset and all substantial risks and reward are transferred. If an arrangement constitutes a financing transaction, the financial asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

13

West London Mission Housing Association Limited

Notes to the financial statements For the year ended 31 August 2020

Financial liabilities carried at amortised cost

These financial liabilities include trade and other payables and interest bearing loans and borrowings.

Non-current debt instruments which meet the necessary conditions in FRS 102, are initially recognised at fair value adjusted for any directly attributable transaction cost and subsequently measured at amortised cost using the effective interest method, with interestrelated charges recognised as an expense in finance costs in the Statement of Comprehensive Income. Discounting is omitted where the effect of discounting is immaterial. A financial liability is derecognised only when the contractual obligation is extinguished, that is, when the obligation is discharged, cancelled or expires.

Financing transactions – rent arrears

For rent arrears where the arrangement constitutes, in effect, a financing transaction because of extended credit arrangements the arrears are derecognised as a financial asset and a new financial asset measured at the present value of the future payments discounted at an appropriate market rate of interest. The present value adjustment is recognised in surplus or deficit in the Statement of Comprehensive Income.

A review has been undertaken on all residents who currently have a payment plan in place for rent arrears. Following assessment, it has been confirmed that the payment plan totals are not material, and therefore no adjustment has been necessary in the financial statements.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and demand deposits.

j) Investments

Investments are included in the balance sheet at market value.

All movements in value arising from investment changes or revaluation are shown in the Statement of Financial Activities.

Realised gains or losses on investments are calculated as the difference between the disposal proceeds and market value at the beginning of the year. Unrealised gains or losses are derived from the movement in market values during the year.

2b. Significant management judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected.

14

Notes to the financial statements For the year ended 31 August 2020

West London Mission Housing Association Limited

Significant management judgements

The following are management judgements in applying the accounting policies of the Association that have the most significant effect on the amounts recognised in the financial statements.

Estimation uncertainty

The Association makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

Fair value measurement

Management uses valuation techniques to determine the fair value of assets. This involves developing estimates and assumptions consistent with how market participants would price the instrument. Management base the assumptions on observable data as far as possible but this is not always available. In that case, management uses the best information available. Estimated fair values may vary from the actual process that would be achievable in an arm’s length transaction at the reporting date.

15

West London Mission Housing Association Limited

Notes to the financial statements For the year ended 31 August 2020

3. Turnover, operating costs and operating surplus /(deficit)

Income and expenditure from lettings
Housing accommodation
Other income and expenditure
Other		 Turnover
£
1,143,440
378,294
1,521,734		 2020
Operating
costs
£
1,643,810
108,075

1,751,885		 Operating
surplus/
(deficit)
£
(500,370)
270,219
(230,151)		 Turnover
£
1,261,092
78,207

1,339,299		 2019
Operating
costs
£
1,467,570
45,512
1,513,082		 Operating
surplus/
(deficit)
£
(206,478)
32,695
(173,783)

16

West London Mission Housing Association Limited

Notes to the financial statements For the year ended 31 August 2020

4. Income and expenditure from lettings

Income
Rent and service charges receivable
Voids
Net rental income
Government grants taken to income
Turnover from lettings
Operating expenditure
Services
Management
Routine maintenance
Operating costs on lettings
Operating (deficit) on lettings
5.
(Deficit) on ordinary activities
(Deficit) on ordinary activities for the year is
stated after charging:
Depreciation on tangible fixed assets
Amortisation of social housing grant
Auditors’ remuneration:-
In their capacity as external auditors		 2020
Supported
housing
£
1,055,885
(115,935)

939,950
203,490

1,143,440

1,169,741
395,136
78,933

1,643,810

(500,370)

2020
£
149,999
(109,051)
11,340		 2019
Supported
housing
£
1,034,995
(28,138)
1,006,857
254,235
1,261,092
1,011,023
310,379
146,168
1,467,570
(206,478)
2019
£
106,167
(109,049)
9,765

17

West London Mission Housing Association Limited

Notes to the financial statements For the year ended 31 August 2020

6. Staff costs

Wages and salaries
Social security costs
Other pension costs
The above includes termination and redundancy
payments of £29,367.
Average number of full time equivalent persons
employed during the year:
Management
Services
Total FTE employees
Average number of staff employed during the year:
Management
Services
Total employees		 2020
2019
£
£
774,363
738,015
65,752
65,189
56,940
60,063

897,055
863,267

Number
Number
2
3
21
21

23
24

Number
Number
3
3
25
24

28
27

No member of staff received any emoluments in excess of £60,000 in the current or prior year.

The Association makes payments to a group personal pension scheme for staff. The assets are held in an independently administered fund.

7. Directors’ emoluments

None of the directors received any emoluments or were reimbursed for any expenses during the current year or prior year.

Salaries of the senior management team and key management personnel are charged in the financial statements of West London Mission Circuit.

18

West London Mission Housing Association Limited

Notes to the financial statements For the year ended 31 August 2020

8. Tangible fixed assets – Group and Association

Cost
At 31 August 2019
Additions
Disposals
At 31 August 2020
Accumulated depreciation
At 31 August 2019
Charge for the year
Released on disposals
At 31 August 2020
Net book value
At 31 August 2020
At 31 August 2019		 Housing properties held
for letting

Freehold
Leasehold
£
£
£
3,718,829
3,287,232
87,750
-
(32,870)
-

3,773,709
3,287,232

716,054
1,490,646
76,449
73,550
(25,220)
-

767,283
1,564,196

3,006,426
1,723,036

3,002,775
1,796,586		 Housing properties held
for letting

Freehold
Leasehold
£
£
£
3,718,829
3,287,232
87,750
-
(32,870)
-

3,773,709
3,287,232

716,054
1,490,646
76,449
73,550
(25,220)
-

767,283
1,564,196

3,006,426
1,723,036

3,002,775
1,796,586		 Total
7,006,061
87,750
(32,870)
7,060,941
2,206,700
149,999
(25,220)
2,331,479
4,729,462
4,799,361

The leasehold interest in the St Luke’s Centre, 25A Wincott Street, London SE11 passed to the Association on 1 September 1995. The lease is for a term of 99 years commencing on 27 January 1989. The leasehold interest in Burgess Park House, 56 Camberwell Road, London SE5 is also for the term of 99 years and commenced on 28 September 2001.

9. Investments - Group

At 1 September 2019
Additions
Disposals
Movement in market values
At 31 August 2020		 2020
£
263,171
10,009
-
(15,254)
257,926
======

19

West London Mission Housing Association Limited

Notes to the financial statements For the year ended 31 August 2020

The above total comprised:
CFB units:
UK Equity Fund
Corporate Bond Fund
Property Investment Fund
Cost at 31 August 2020		 94,370
105,884
57,672
257,926
220,098

10. Subsidiary Undertakings

The results and financial position of the West London Mission Donald Soper Fund are as follows:

Statement of financial activities
Income from
Donations and legacies
Investments
Expenditure on
Raising Funds
Charitable activities
Net gains/(losses) on investments
Net income/(expenditure)		 2020
£
39,100
7,412
46,512
(547)
(47,000)
(47,547)
(15,254)
(16,289)		 2019
£
150
8,830
8,980
(525)
-
(525)
3,025
11,480

20

West London Mission Housing Association Limited

Notes to the financial statements For the year ended 31 August 2020

10. Subsidiary Undertakings (continued) Balance Sheet

10. Subsidiary Undertakings
(continued)
Balance Sheet
2020 2019
Fixed assets £ £
Investments 257,926 263,171
Current assets
Debtors 1,795 9,895
Cash at bank and in hand 7,832 10,876
9,627 20,771
Net assets 267,553 283,942
Funds 267,553 283,942
11.Debtors Association Group
2020 2019 2020 2019
£ £ £ £
Trade debtors 123,267 223,132 123,267 223,132
West London Mission 166,238 157,218 168,032 167,113
Circuit Fund

289,505 380,350 291,299 390,245

21

West London Mission Housing Association Limited

Notes to the financial statements For the year ended 31 August 2020

12.
Creditors: Amounts falling
Trade creditors
Accruals
Housing loans (see
note 13)
West London Mission
- WLM Services
Hinde Street
Methodist Church
West London Mission
Circuit Fund		 due within one year
2020
Restate
d
2019
£
£
114,946
59,602
11,340
9,765
212,842
212,842-
197,164
121,345
13
13
201,817
321,342
738,122
724,908		 2020
£
114,946
11,340
212,842
197,164
13
201,817
738,122		 Restate
d
2019
£
59,602
9,765
212,842-
121,345
13
321,342

724,908

13. Creditors: Amounts falling due after more than one year

Housing loans
Government grants		 2020
£
872,077
2,468,709
3,340,786		 Restated
2019
£
897,919
2,577,760
3,475,679		 2020
£
872,077
2,468,709

3,340,786		 Restated
2019
£
897,919
2,577,760
3,475,679

In respect of the housing loans £852,077 (2019: £877,919) represents the balance outstanding under a loan from the West London Mission Circuit in 2001 for the purchase of The Haven. The loan is secured by a charge over the property and is repayable in instalments commencing at £20,000 per annum, both principal and repayments being index linked. Interest is payable at 4.5%. None (2019: £nil) of this liability is included in creditors due within one year.

The remaining £20,000 consists of an interest-free loan or repayable grant from the Home Office on the erection of Katherine Price Hughes House in 1974. It is not repayable while the building continues to be used as an approved premise.

22

West London Mission Housing Association Limited

Notes to the financial statements For the year ended 31 August 2020

Government grants
At 1 September 2019
Amortisation to Statement of Comprehensive
Income
At 31 August 2020		 2020
£’000
2,577,760
(109,051)
2,468,709		 2019
£’000
2,686,809
(109,049)
2,577,760

Government grants may become payable, if a Registered Provider sells an asset, to which a grant was attached, and then fails to recycle it with alternative social housing properties within three years.

The total accumulated amount of capital grant received or receivable at the Statement of Financial Position date is £3,921,446.

14. Reserves

At 1 September 2019
Prior year adjustment
As re-presented
(Deficit) for the year
Transfers between reserves
-
Depreciation /
amortisation
-
Provision for
maintenance
-
Charged to maintenance
reserve
At 31 August 2020		 Designated reserves
Restricted
Donald
Soper
Fund
Property
equity
reserve
Cyclical
maintenance
reserve
Income &
expenditure
£
£
£
£
£
283,943
831,463
112,022
-
-
45,196
-

283,943
831,463
157,218
(16,289)
-
-
(39,580)
(48,598)
-
48,598
-
31,000
(31,000)
(21,982)
21,982


267,654
782,865
166,236
-		 Total

1,227,428
45,196
1,272,624
(55,869)
-
-
-
1,216,755

The prior year adjustment reflects repairs expenditure capitalised in 2019.

23

West London Mission Housing Association Limited

Notes to the financial statements For the year ended 31 August 2020

15. Analysis of Net Assets

Fixed assets
Investments
Current assets
Creditors due within one year
Creditors due after one year		 Restricted
Funds
£
257,926
9,627
~~----~~
267,553		 Designated
Funds
£
4,729,462
298,548
(738,122)
(3,340,786)
949,102		 Total
£
4,729,462
257,926
308,175
(738,122)
(3,340,786)
1,216,655

16. Units in management

s in management
2020 2019
Number Number
Under management at end of year:
Housing accommodation – bed spaces 44 44

24

Notes to the financial statements For the year ended 31 August 2020

West London Mission Housing Association Limited

17. Related party transactions

The West London Mission Circuit (including housing and community services controlled by the Circuit) has trustees in common with the Association and is therefore considered to be a related party. The Circuit is not considered to be under common control with the Association as a minority of the Association’s board members are trustees of the Circuit.

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

Amount owed to/(by) Amount owed to/(by)
Value of transactions WLM Housing
Details during year Association
2020
2019		 2020
2019
£
£		 £
£
West London Mission Circuit
(1,064,919)
(1,090,761)
Housing loans (25,842) (6,855)
Indexation on housing loans 4,815 23,349 - -
Interest on housing loans 39,506 40,879 - -
Administration charges - 11,852 - -
Project deficit / (surplus) grant
213,175 (37,525) - -
Settlement account - - (201,817) (321,342)
Debtor (dilapidations balances)
9,018 (4,754) 166,236 157,218
WLM Services
Rental income received from
KPH House 131,040 131,040
Settlement account - - (197,167) (121,345)

25