Financial Statements
For the year ended 31 August 2023
West London Mission Housing Association Limited
West London Mission Housing Association Limited Year ended 31 August 2023
Contents
| Page | |
|---|---|
| Directors’ report | 1–4 |
| Independent Auditor's report | 5-8 |
| Consolidated Statement of Comprehensive Income | 9 |
| Consolidated Statement of Financial Position | 10 |
| Association Statement of Financial Position | 11 |
| Consolidated Statement of Cash Flows | 12 |
| Notes to the financial statements | 13-26 |
West London Mission Housing Association Limited Year ended 31 August 2023
Company information
Directors
Rev P Cornick Rev N Cowgill Rev A J Dart Mr J M Furniss Rev P Hill Rev A Lawrence Mr J S Neilson Mr M J Single Ms ACJ Siow Mr G T Slater
Secretary
Registered office
Registered company number Registered charity number
Regulator of Social Housing registration number Independent Auditors
Ms C Dance
19 Thayer Street London W1U 2QJ 00495241 281929 LH3373 Moore Kingston Smith LLP 9 Appold Street London EC2A 2AP
West London Mission Housing Association Limited Year ended 31 August 2023
Directors’ report
The directors present their report and the consolidated financial statements for the year ended 31 August 2023.
Principal activities
The company is a charitable housing association limited by guarantee. Its principal activities are:
-
Those of a housing association whose properties are used in connection with housing people who require assistance, and
-
Those of trustee of the West London Mission Donald Soper Fund.
These financial statements incorporate the financial statements of the individual housing and community services located in the properties mentioned therein.
These financial statements also incorporate 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 WLM Services 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 This site has a community Hub hosting a mix of
25A Wincott Street community support and outreach partnerships London SE11 and events. The site also has a residential building with 26 bedrooms and a one bedroom flat which provides low cost accommodation for veterans (formerly accommodated at Burgess Park House) and keyworkers.
WLM Holly Park Following the closure of the Haven care home in
280 Holly Park September 2021. WLMHA is working with DePaul London N4 UK, New Horizons and the GLA , and the building was leased to DePaul UK from November 2022 for three years to deliver the London Youth Hub for homeless young people aged 18 - 25.
WLM Burgess Park House Following the work required to deal with fire, 56 Camberwell Road health and safety risks identified in 2022, this site London SE5 provides support and accommodation for LGBTQ young people aged 18+ who are survivors of domestic abuse, in collaboration with the STAR project and MOPAC.
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West London Mission Housing Association Limited Year ended 31 August 2023
Directors’ report (continued)
_
WLM Cherry Tree House 343 Clapham Road London SW9
This site provides accommodation for veterans needing floating support prior to their move to Veteran Nomination Scheme accommodation.
The company leased the following property to the Trustees for Methodist Church Purposes for a term of ten years from 1 April 2005, and subsequently the lease has been renewed to 2025, the West London Mission Circuit Meeting being the managing trustees for that term:
WLM Katherine Price Hughes House 28 Highbury Grove London N5
It is an "approved premise" under the Criminal Justice and Courts Service Act 2000 and provides housing and support services for men released from custody on licence.
The directors are in discussions with the West London Mission Circuit which may lead to the company assuming full control of the services provided in its properties, under a new board of directors. At the time of issuing this report no agreement has been reached about the terms of any such transfer.
In January 2024 the WLM Services adopted a new identity under the name Strides
Directors
The members set out below have held office during the whole of the period from 1 September 2022 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 S Neilson Mr R Ovenden (to 4 September 2023) Mr M J Single Ms A C J Siow Mr G T Slater Rev P Hill (appointed 20 November 2023) Rev A Lawrence (appointed 20 November 2023)
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.
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West London Mission Housing Association Limited Year ended 31 August 2023
Directors’ report (continued)
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 undertake competitive tendering for major works to properties. As far as feasible we focus on energy efficiency.
The directors have regard to the VFM Standard. The VFM metrics derived from these financial statements in accordance with the Technical Note are as follows:
Reinvestment: 5.6% New supply: 0 Gearing: 43.9% EBITDA MRI interest cover: 0 Headline social housing cost: £9,927 per unit Operating margin (social housing lettings); 0 Operating margin (overall): 0 Return on capital employed: 0
However, these ratios may have limited value due to the financial support provided by the West London Mission Circuit.
Governance and Financial Viability
The directors have not yet adopted a formal code of governance under the Governance and Financial Viability Standard, as it has only recently been drawn to their attention, but they believe that their reliance upon the reporting arrangements and financial support under the management agreement with the West London Mission Circuit provides sufficient assurance in this regard.
Going Concern
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 company 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. West London Mission Circuit continues to provide support to the Company and have confirmed that they will continue to support the Company whilst the existing management agreement is in force between West London Mission Circuit and the Company. The directors have, for some time, been in discussions with West London Mission Circuit with a view to the Company assuming full control of the of the services provided in its properties, under a new board of directors, which would lead to a termination of the current management agreement. At the time of this report no agreement has been reached on the terms of any such transfer of control including the financial arrangements. Whilst the directors consider that these conditions indicate that there is a material uncertainty that may cast significant doubt on the company’s ability to continue as a going concern, the directors believe that these will be resolved and therefore concern, the directors believe that the current uncertainties will be resolved and therefore continue to continue to adopt the going concern basis in preparing its financial statements. adopt the going concern basis in preparing its financial statements.
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West London Mission Housing Association Limited Year ended 31 August 2023
Directors’ report (continued)
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.
Auditors
Moore Kingston Smith LLP have signified their willingness to continue in office and a resolution to reappoint Moore Kingston Smith LLP as auditors to the company will be proposed at the Annual General Meeting.
22 March
Approved by the Board on ……………….. 2024 and signed on its behalf by
Mr M Single
Director
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West London Mission Housing Association Limited Year ended 31 August 2023
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 ’parent charitable company’) and its subsidiaries (the ‘group’) for the year ended 31 August 2023 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 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:
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give a true and fair view of the state of the group’s and the parent charitable company’s affairs as at 31 August 2023 and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including FRS102 the Financial Reporting Standard applicable to the UK and Republic of Ireland, the Housing and Regeneration Act 2008 and the Accounting Direction for Private Registered Providers of Social Housing 2022; and
-
have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities Act 2011.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the audit of the financial statements section of our report. We are independent of the 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.
Material uncertainty related to going concern
We draw attention to note 1 in the financial statements, which indicates the current state of discussions between West London Mission Circuit and the Company that may result in the termination of the current management agreement and the transfer of full control of the services provided in the Company’s properties with an, as yet unagreed, accompanying financial settlement. As stated in note 1 these conditions indicate that a material uncertainty exists that may cast significant doubt on the company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form
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West London Mission Housing Association Limited Year ended 31 August 2023
of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
-
the information given in the trustees’ annual report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
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the trustees’ annual report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report.
We have nothing to report in respect of the following matters where the Companies Act 2006 and the Charities Act 2011 require us to report to you if, in our opinion:
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the parent charitable company has not kept adequate and sufficient accounting records, or returns adequate for our audit have not been received from branches not visited by us; or
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the parent charitable company’s financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of trustees’ remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit; or
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the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies exemption in preparing the Trustees’ Annual Report and from preparing a strategic report.
Responsibilities of trustees
As explained more fully in the trustees’ responsibilities statement set out on page 2-3, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the group 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 alternative but to do so.
Auditor’s Responsibilities for the audit of the financial statements
We have been appointed as auditor under the Companies Act 2006 and section 151[1] of the Charities Act 2011 and report in accordance with those Acts.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
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West London Mission Housing Association Limited Year ended 31 August 2023
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.
As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
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Identify and assess the risks of material misstatement 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 material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the group and parent charitable company’s internal control.
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Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.
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Conclude on the appropriateness of the trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group and parent charitable company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the group or parent charitable company to cease to continue as a going concern.
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Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
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Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit report.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and
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West London Mission Housing Association Limited Year ended 31 August 2023
detection of fraud rests with both management and those charged with governance of the charitable company.
Our approach was as follows:
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We obtained an understanding of the legal and regulatory requirements applicable to the charitable company and considered that the most significant are the Companies Act 2006, the Charities Act 2011, the Charity SORP, and UK financial reporting standards as issued by the Financial Reporting Council
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We obtained an understanding of how the charitable company complies with these requirements by discussions with management and those charged with governance.
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We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.
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We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations.
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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 governance and obtaining additional corroborative evidence as required.
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
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 and, in respect of the consolidated financial statements, to the charity’s trustees, as a body, in accordance with Chapter 3 of Part 8 of the Charities Act 2011. Our audit work has been undertaken so that we might state to the charitable company’s members and trustees those matters which 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, the charitable company’s members, as a body, and the charity’s trustees, as a body, for our audit work, for this report, or for the opinion we have formed.
Date 26 March 2024 Andrew Stickland (Senior Statutory Auditor) for and on behalf of Moore Kingston Smith LLP, Statutory Auditor 9 Appold Street London EC2A 2AP
Moore Kingston Smith LLP is eligible to act as auditor in terms of Section 1212 of the Companies Act 2006.
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West London Mission Housing Association Limited Consolidated Statement of Comprehensive Income For the year ended 31 August 2023
| West London Mission Housing Association Limited Consolidated Statement of Comprehensive Income For the year ended 31 August 2023 |
|
|---|---|
| Notes Turnover 3 Operating costs 3 Operating surplus/(deficit) 3 Other income Interest payable and similar charges Change in fair value of investments 9 Surplus/(deficit) on ordinary activities before taxatio 5 Tax on ordinary activities Surplus/(deficit) for the year Balance brought forward at 1 September Balance carried forward at 31 August |
2023 2022 £ £ 575,616 498,930 (879,077) (1,337,100) |
| (303,461) (838,170) 382,003 927,810 (140,794) (151,043) (21,359) (25,603) |
|
| (83,611) (87,006) - - |
|
| (83,611) (87,006) 1,161,897 1,248,903 |
|
| 1,078,286 1,161,897 |
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.
9
West London Mission Housing Association Limited Consolidated Statement of Financial Position As at 31 August 2023
| Notes Fixed assets Housing properties - at cost 8 Less: Depreciation 8 Total housing properties Investments 9 Current assets Debtors 11 Cash at bank and in hand 12 Net current liabilities Total assets less current liabilities 13 Net assets Reserves 14 Creditors: Amounts falling due after more than one year Creditors: Amounts falling due within one year |
2023 2022 £ £ 7,544,958 7,558,605 (2,498,187) (2,636,826) |
|---|---|
| 5,046,771 4,921,779 |
|
| 263,639 284,998 329,828 284,060 27,018 17,941 |
|
| 356,846 302,001 (1,375,526) (1,155,421) |
|
| (1,018,680) (853,420) |
|
| 4,291,730 4,353,357 (3,213,444) (3,191,460) |
|
| 1,078,286 1,161,897 |
|
| 1,078,286 1,161,897 |
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 22 March 2024 and signed on its behalf by
Mr G T Slater, Director
Mr M Single, Direector
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West London Mission Housing Association Limited Association Statement of Financial Position As at 31 August 2023
| 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 13 Net assets Reserves 14 Creditors: Amounts falling due after more than one year |
2023 2022 £ £ 7,544,958 7,558,605 (2,498,187) (2,636,826) |
|---|---|
| 5,046,771 4,921,779 |
|
| 327,933 282,165 7,596 7,907 |
|
| 335,529 290,072 (1,375,526) (1,155,421) |
|
| (1,039,997) (865,349) |
|
| 4,006,774 4,056,430 (3,213,444) (3,191,460) |
|
| 793,330 864,970 |
|
| 793,330 864,970 |
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 22 March 2024 and signed on its behalf by
Mr G T Slater, Director
Mr M Single, Direector
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West London Mission Housing Association Limited Consolidated Statement of Cash Flows For the year ended 31 August 2023
| Consolidated Statement of Cash Flows For the year ended 31 August 2023 |
|||
|---|---|---|---|
| 2023 | 2022 | ||
| £ | £ | ||
| Cash outflows from operating activities | |||
| Deficit for the financial year | (83,611) | (87,006) | |
| Interest paid, less received | 131,356 | 143,634 | |
| Loss on investments | 21,359 | 25,603 | |
| Depreciation charge | 156,254 | 157,859 | |
| Amortisation credit | (84,615) | (109,051) | |
| (Increase) / decrease in debtors | (45,768) | 65,694 | |
| Increase in creditors | 220,105 | 430,134 | |
| Net cash generated from operating activities | 315,080 | 626,867 | |
| Cash flows from investing activities | |||
| Interest received | 9,438 | 7,409 | |
| Purchase of investments | - | (15,005) | |
| Purchase of fixed assets | (281,246) | (497,663) | |
| Net cash outflows from investing activities | (271,808) | (505,259) | |
| Cash flows from financing activities | |||
| Interest paid | (140,794) | (151,043) | |
| Increase in long term borrowings | 106,599 | 21,480 | |
| Net cash outflows from financing activities | (34,195) | (129,563) | |
| Net increase / (decrease) in cash and cash equivalents | 9,077 | (7,956) | |
| Cash and cash equivalents at beginning of year | 17,941 | 25,897 | |
| Cash and cash equivalents at end of year | 27,018 | 17,941 | |
| Cash and cash equivalents comprise: | |||
| Cash at bank and in hand | 27,018 | 17,941 | |
| Analysis of changes in net (debt) | |||
| At 1 Sept | At 31 Aug | ||
| 2022 | Cashflows | 2023 | |
| £ | £ | £ | |
| Cash at bank and in hand | 17,941 | 9,077 | 27,018 |
| Loans due within one year | (212,842) | (212,842) | |
| Loans due after one year | (940,853) | (106,599) | (1,047,452) |
| Net debt | (1,135,754) | (97,522) | (1,233,276) |
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West London Mission Housing Association Limited Year ended 31 August 2023
Notes to the financial statements
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 company 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. West London Mission Circuit continues to provide support to the Company and have confirmed that they will continue to support the Company whilst the existing management agreement is in force between West London Mission Circuit and the Company. The directors have, for some time, been in discussions with West London Mission Circuit with a view to the Company assuming full control of the of the services provided in its properties, under a new board of directors, which would lead to a termination of the current management agreement. At the time of this report no agreement has been reached on the terms of any such transfer of control including the financial arrangements. Whilst the directors consider that these conditions indicate that there is a material uncertainty that may cast significant doubt on the company's ability to continue as a going concern, the directors believe that the current uncertainties will be company’s ability to continue as a going concern, the directors believe that these will be resolved and resolved and therefore continue to adopt the going concern basis in preparing its financial statements. therefore continue 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 2019, and comply with the Housing and Regeneration Act 2008 and the Accounting Direction for Private Registered Providers of Social Housing 2022.
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.
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
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West London Mission Housing Association Limited Year ended 31 August 2023
Notes to the financial statements (continued)
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.
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.
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West London Mission Housing Association Limited Year ended 31 August 2023
Notes to the financial statements (continued)
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.
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.
15
West London Mission Housing Association Limited Year ended 31 August 2023
Notes to the financial statements (continued)
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.
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 interest-related 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 Comprehensive Income.
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
16
West London Mission Housing Association Limited Year ended 31 August 2023
Notes to the financial statements (continued)
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.
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.
17
West London Mission Housing Association Limited Notes to the financial statements (continued) For the year ended 31 August 2023
3 Turnover, operating costs and operating surplus/(deficit)
| Income and expenditure from lettings Housing accommodation Other income and expenditure Other |
Turnover Operating costs Operating surplus / (deficit) £ £ £ 491,819 704,809 (212,990) 83,797 174,268 (90,471) 575,616 879,077 (303,461) Total 2023 |
Turnover Operating costs Operating surplus / (deficit) £ £ £ 366,620 1,001,255 (634,635) 132,310 335,845 (203,535) Total 2022 |
|---|---|---|
| 498,930 1,337,100 (838,170) |
18
West London Mission Housing Association Limited Notes to the financial statements (continued) For the year ended 31 August 2023
4 Income and expenditure from lettings
| 4 | Income and expenditure from lettings | ||
|---|---|---|---|
| **Total 2023 ** | Total 2022 | ||
| Supported | Supported | ||
| housing | housing | ||
| £ | £ | ||
| Income | |||
| Rent and service charges receivable | 674,157 | 282,457 | |
| Voids | (235,870) | (78,821) | |
| Net rental income | 438,287 | 203,636 | |
| Government grants taken to income | 53,532 | 162,984 | |
| Turnover from lettings | 491,819 | 366,620 | |
| Operating costs | |||
| Services | 310,459 | 526,538 | |
| Management | 244,588 | 382,345 | |
| Routine maintenance | 149,762 | 92,372 | |
| Operating costs on lettings | 704,809 | 1,001,255 | |
| Operating surplus/(deficit) on lettings | (212,990) | (634,635) | |
| 5 | Surplus/(deficit) on ordinary activities | ||
| Surplus/(deficit) on ordinary activities for the year is stated after charging: | |||
| 2023 | 2022 | ||
| £ | £ | ||
| Depreciation on tangible fixed assets | 156,255 | 157,859 | |
| Amortisation of social housing grant | (84,615) | (109,051) | |
| Auditors' remuneration - in their capacity as external auditors | |||
| Current year | 23,400 | 10,000 | |
| Prior year | 16,622 |
19
West London Mission Housing Association Limited Notes to the financial statements (continued) For the year ended 31 August 2023
6 Staff costs
| Staff costs | ||
|---|---|---|
| **Total 2023 ** | Total 2022 | |
| £ | £ | |
| Wages and salaries | 200,017 | 288,093 |
| Social security costs | 20,714 | 30,371 |
| Other pension costs | 19,831 | 16,698 |
| 240,562 | 335,162 | |
| The above includes termination and redundancy payments of £0 (2022: £14,385). | ||
| Average number of full time equivalent persons employed during the year: | ||
| Number | Number | |
| 2023 | 2022 | |
| Management | - | 1 |
| Services | 7 | 13 |
| 7 | 14 | |
| Average number of staff employed during the year: | ||
| Number | Number | |
| 2023 | 2022 | |
| Management | - | 1 |
| Services | 8 | 16 |
| 8 | 17 |
No member of staff received any emoluments in excess of £60,000 in the year (2022: none).
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 year (2022: none).
Salaries of the senior management team and key management personnel are charged in the financial statements of West London Mission Circuit.
20
West London Mission Housing Association Limited Notes to the financial statements (continued) For the year ended 31 August 2023
8 Tangible fixed assets - Group and Association
| Cost At 1 September 2022 Additions Disposals and fully depreciated At 31 August 2023 Accumulated depreciation At 1 September 2022 Charge for the year Released on disposal and fully depreciated At 31 August 2023 Net book values At 31 August 2023 At 31 August 2022 |
Freehold Leasehold Total £ £ £ 4,112,828 3,445,777 7,558,605 169,067 112,179 281,246 (168,750) (126,143) (294,893) Housing properties held for letting |
|---|---|
| 4,113,145 3,431,813 7,544,958 |
|
| 922,676 1,714,150 2,636,826 66,978 89,276 156,254 (168,750) (126,143) (294,893) |
|
| 820,904 1,677,283 2,498,187 |
|
| 3,292,241 1,754,530 5,046,771 |
|
| 3,190,152 1,731,627 4,921,779 |
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 Additions Disposals Movement in market values At 31 August The above total comprises: CFB UK Equity Fund units CFB Corporate Bond Fund units CFB Property Investment Fund units Cost at 31 August |
Total 2023 Total 2022 £ £ 284,998 295,596 - 15,005 - - (21,359) (25,603) |
|---|---|
| 263,639 284,998 |
|
| 119,133 119,976 90,506 95,582 54,000 69,440 |
|
| 263,639 284,998 |
|
| 245,112 245,112 |
Cost at 31 August
21
West London Mission Housing Association Limited Notes to the financial statements (continued) For the year ended 31 August 2023
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 income/(expenditure) Balance sheet Fixed assets Investments Current assets Debtors Cash at bank and in hand Net assets Funds 11 Debtors Total 2023 Total 2022 £ £ Trade debtors 126,839 92,811 Prepayments 9,740 - Accrued income 2,000 - West London Mission Circuit Fund 191,249 191,249 329,828 284,060 Realised and unrealised gain/(loss) on investments Group |
Statement of financial activities Income from Donations and legacies Investments Expenditure on Raising funds Charitable activities Net income/(expenditure) Balance sheet Fixed assets Investments Current assets Debtors Cash at bank and in hand Net assets Funds 11 Debtors Total 2023 Total 2022 £ £ Trade debtors 126,839 92,811 Prepayments 9,740 - Accrued income 2,000 - West London Mission Circuit Fund 191,249 191,249 329,828 284,060 Realised and unrealised gain/(loss) on investments Group |
2023 2022 £ £ - - 10,281 8,306 |
|---|---|---|
| 10,281 8,306 |
||
| (893) (897) - - |
||
| (893) (897) |
||
| (21,359) (25,603) |
||
| (11,971) (18,194) |
||
| 2023 2022 £ £ 263,639 284,998 |
||
| 1,895 1,895 19,422 10,034 |
||
| 21,317 11,929 |
||
| 284,956 296,927 |
||
| 284,956 296,927 |
||
| Total 2023 Total 2022 £ £ 126,839 92,811 9,740 - 2,000 - 189,355 189,356 Association |
||
| 329,828 284,060 |
327,934 282,166 |
22
West London Mission Housing Association Limited Notes to the financial statements (continued) For the year ended 31 August 2023
12 Creditors: Amounts falling due within one year
| Trade creditors Other creditors Accruals Deferred income Housing loans (see note 13) Hinde Street Methodist Church West London Mission - WLM Services West London Mission - Circuit Fund |
Total 2023 Total 2022 Total 2023 Total 2022 £ £ £ £ 84,991 167,610 84,991 167,610 19,806 - 19,806 - 27,070 10,000 27,070 10,000 50,888 - 50,888 - 212,842 212,842 212,842 212,842 839,313 680,916 839,313 680,916 13 13 13 13 140,603 84,040 140,603 84,040 Group Association |
|---|---|
| 1,375,526 1,155,421 1,375,526 1,155,421 |
13 Creditors: Amounts falling due after more than one year
| Housing loans Government grants |
Total 2023 Total 2022 Total 2023 Total 2022 1,047,452 940,853 1,047,452 940,853 2,165,992 2,250,607 2,165,992 2,250,607 Group Association |
|---|---|
| 3,213,444 3,191,460 3,213,444 3,191,460 |
In respect of the housing loans £1,027,452 (2022: £920,853) 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 (2022: £nil) of this liability is included in creditors falling due within one year.
The remaining £20,000 (2022: £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 premises.
23
West London Mission Housing Association Limited Notes to the financial statements (continued) For the year ended 31 August 2023
Government grants
| Government grants | |
|---|---|
| At 1 September At 31 August Amortisation to Statement of Comprehensive Income |
Total 2023 Total 2022 £ £ 2,250,607 2,359,658 (84,615) (109,051) |
| 2,165,992 2,250,607 |
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 (2022: £3,921,446).
24
West London Mission Housing Association Limited Notes to the financial statements (continued) For the year ended 31 August 2023
14 Reserves
| Depreciation / amortisation Addition to maintenance reserve Charged to maintenance reserve Surplus/(deficit) for the year Transfers between reserves: At 31 August 2023 At 1 September 2022 |
Donald Soper Fund WLM Services Property equity reserve Cyclical maintenance reserve Income & expenditure Total £ £ £ £ £ £ 296,927 - 675,617 189,353 - 1,161,897 (11,971) 25,150 - - (96,790) (83,611) - - - (71,640) - 71,640 - - - (2) 2 - - - - - - - - Designated Restricted |
|---|---|
| 284,956 25,150 603,975 189,355 (25,150) 1,078,286 |
15 Analysis of Net Assets
| Fixed assets Investments Current assets Creditors due within one year Creditors due after more than one year |
Restricted Funds Designated Funds Unrestricted Funds Total £ £ £ £ - 5,046,771 - 5,046,771 263,639 - - 263,639 46,467 310,379 - 356,846 - (1,350,376) (25,150) (1,375,526) - (3,213,444) - (3,213,444) |
|---|---|
| 310,106 793,330 (25,150) 1,078,286 |
25
West London Mission Housing Association Limited Notes to the financial statements (continued) For the year ended 31 August 2023
16 Units in management
| Under management at the end of the year: Housing accommodation - bed spaces |
Number 2023 Number 2022 71 71 |
|---|---|
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 | |||
| during the | year | Association | ||
| 2023 | 2022 | 2023 | 2022 | |
| £ | £ | £ | £ | |
| West London Mission Circuit | ||||
| Housing loans | (106,599) | (20,416) | (1,240,294) | (1,133,695) |
| Indexation on housing loans | 88,798 | 110,578 | - | - |
| Interest on housing loans | 51,996 | 40,466 | - | - |
| Settlement account | (56,563) | - | (140,603) | (84,040) |
| Debtor (dilapidations balances) |
2 | - | 189,355 | 189,353 |
| WLM Services | ||||
| Project deficit grant | 149,685 | 548,373 | - | - |
| Administration charges | 86,207 | 71,951 | - | - |
| Rental income received from KPH House |
131,040 | 131,040 | - | - |
| Settlement account | (158,397) | (546,067) | (839,313) | (680,916) |
26