## Financial Statements For the year ended 31 August 2024 **West London Mission Housing Association Limited** ## **West London Mission Housing Association Limited Year ended 31 August 2024** ## **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 2024** ## **Company information** ## **Directors** Rev P Cornick 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 (acting)** **Registered office** **Registered company number Registered charity number** **Regulator of Social Housing registration number Independent Auditors** Mr M Single 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 2024** ## **Directors’ report** The directors present their report and the consolidated financial statements for the year ended 31 August 2024. ## **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”), formerly known as WLM Services. The services were rebranded in January 2024 under the name Strides. The company is the registered owner of various properties in which the Strides ervices 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:- Strides Wincott Street 25A Wincott Street London SE11 The site has a community hub hosting a mix of community support and outreach partnerships and events. The site also has a residential building with 26 bedrooms and a one bedroom flat, which provides low cost accommodation for keyworkers. Strides Holly Park 280 Holly Park London N4 We are working with DePaul UK, New Horizons and the GLA to deliver the London Youth Hub for homeless young people aged 18 - 25. Strides Burgess Park House (protected address) We provide support and accommodation in a refuge for LGBTQ+ people who are survivors of domestic abuse, in collaboration with STAR Community CIC and MOPAC. Strides Cherry Tree House 343 Clapham Road London SW9 This service was used as supported accommodation for veterans. During the reporting period referrals dried up and the property is now used by people who are homeless and working. 1 **West London Mission Housing Association Limited Year ended 31 August 2024** ## **Directors’ report (continued)** 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: Strides Katherine Price Hughes House 28 Highbury Grove London N5 This 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. ## **Directors** The members set out below have held office during the whole of the period from 1 September 2023 to the date of this report unless otherwise stated: Rev P Cornick Rev N Cowgill (to 2 July 2024) Rev A J Dart (to 16 May 2024) 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 company 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 company is a going concern. The directors are responsible for ensuring that arrangements are made for keeping proper books of account with respect to the company's transactions and its assets and liabilities and for maintaining a satisfactory system of control over the company's books of account and transactions. The directors are also responsible for ensuring that arrangements are made to safeguard the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 2 **West London Mission Housing Association Limited Year ended 31 August 2024** ## **Directors’ report (continued)** ## **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: 0.1% New supply: 0 Gearing: 43.8% EBITDA MRI interest cover: 0% Headline social housing cost: £11,275 per unit Operating margin (social housing lettings); 2.4% Operating margin (overall): 7.1% Return on capital employed: 1.5% 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 adopted, and have regard to, the Charity Governance Code for smaller charities under the Governance and Financial Viability Standard. They have reviewed their compliance with the Standard and believe, after due consideration, that they make reasonable efforts to comply with the Standard. ## **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 do so. During the year, discussions with potential new directors and the West London Mission Circuit, with a view to the company assuming full control of the of the services provided in its properties, were terminated without agreement, consequently, the existing arrangements continue in force, and therefore the company continues to benefit from the Circuit's support. Accordingly, the directors continue to consider that it is reasonable to adopt the going concern basis in preparing these financial statements. 3 **West London Mission Housing Association Limited Year ended 31 August 2024** ## **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 re-appoint Moore Kingston Smith LLP as auditors to the company will be proposed at the Annual General Meeting. Approved by the Board 5 February 2025 and signed on its behalf by Mr M Single Director 4 ## **West London Mission Housing Association Limited Year ended 31 August 2024** ## **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 2024 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: - give a true and fair view of the state of the group and parent charitable company’s affairs as at 31 August 2024 and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended; - 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. ## **Conclusions relating to going concern** In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group’s and parent charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. ## **Other information** The other information comprises the information included in the 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. 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 5 ## **West London Mission Housing Association Limited Year ended 31 August 2024** 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 report for the financial year for which the financial statements are prepared is consistent with the financial statements; and - 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 directors’ annual report. We have nothing to report in respect of the following matters where the Companies Act 2006 and the Charities Act 2011 requires us to report to you if, in our opinion: - 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 - the parent charitable company’s financial statements are not in agreement with the accounting records and returns; or - certain disclosures of trustees’ remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit; or - 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 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** We have been appointed as auditor under the Companies Act 2006 and section 151 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 6 ## **West London Mission Housing Association Limited Year ended 31 August 2024** 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. As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also: - 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. - 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 charitable company’s internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors’ 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 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 charitable company to cease to continue as a going concern. - 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. - 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 7 ## **West London Mission Housing Association Limited Year ended 31 August 2024** of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charitable company. Our approach was as follows: - 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 - We obtained an understanding of how the charitable company complies with these requirements by discussions with management and those charged with governance. - 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. - 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. - 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. 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) Date: 19 February 2025 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. 8 West London Mission Housing Association Limited Consolidated Statement of Comprehensive Income For the year ended 31 August 2024 2024 2023 Notes Turnover Operating costs Operating surpluslldeficit) 872,581 575,616 {848,023} {879,0771 24,558 {303,4611 Other income Grant to West London Mission Circuit Fund Interest payable and similar charges Change in fair value of inveslments 335,401 (223,224) {94,4561 {140,7941 19,869 121,3591 382,003 Surplusl{deficitl on ordinary activities before taxation 62,148 183,6111 Tax on ordinary activities Surplusl(deflcStl for the year 62,148 183,6111 Balance brought forward at 1 September 1,078,286 1,161,897 Balance carried forward at 31 August 1,140,434 1,078,286 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. West London Mission Housing Association Limited Consolidated Statement of Financial Position As at 31 August 2024 2024 2023 Notes Fixed assets Housing properties- at cost Less.. Depreciation Total housing properties 7,550,619 7,544,958 12,659,388} (2,498,187) 4,891,231 5,046,771 Investments 283,508 263,639 Current assets Debtors Cash at bank and in hand 11 292,284 329,828 138,739 27,018 431,023 356,846 11.346,286) (1,375.5261 {915,263} 11,018,680) Creditors: Amounts falling due within one year Net current liabilities 12 Tolal assets less current Ilabllllles 4.259,476 4,291,730 Creditors: Amounts falling due after more than one year 13 (3.119,042) {3,213,4441 Net assets 1.140,434 1,078,286 Reserrfes 14 1.140,434 1,078,286 These financial statements have been prepared in accordan￿ wth the special provisions of S.414131 of the Companies Act 2006 relating to small companies. These financial statements were approved by the Board on 5th February 2025 and signed on its behalf by Mr G T Slater, Director Mr M Single, Director 10 West London Mission Housing Association Limited Association Statement of Financial Position As at 31 August 2024 2024 2023 Notes Fixed assets Housing properties- at cost Less.. Depreciation Total housing properties 7.550,619 7,544,958 (2,659,388) {2,498,1871 4.891,231 5,046,771 Current assets Debtors Cash at bank and in hand 11 290,389 327,933 7,638 7,596 298,027 335,529 11.346,2861 11,375.5261 11,048,259) 11,039,997) Creditors: Amounts falling due within one year Net current liabilities 12 Total assets less current Ilablllties 3.842,972 4,006,774 Credltors: Amounts falling due after more than one year 13 13.119,042} {3,213,4441 Net assels 723,930 793,330 Reserves 14 723,930 793,330 These financial statements have been p￿Pared in accordan￿ ¥Mth the special provisions of S.414131 of the Companies Act 2006 relating to small companies. These financial statements were approved by the Board on 5th February 2025 and signed on its behalf by Mr G T Slater, Director Mr M Single, Director West London Mission Housing Association Limited Consolidated Statement of Cash Flows For the year ended 31 August 2024 2024 2023 Cash generated from operating activities DeficiU(Surplus) for the financial year Interest paid, less received {Gain)ILoss on investments Deprecialion charge Amortj'salion credit Decreaselllncreasel in deblors {Decrease)Ilncrease in creditors 62,148 81.896 (19,869) 161,201 (91,8021 37,544 (29.240) {83,611) 131,356 21,359 156,254 {84,615) {45,768) 220.105 Net cash generated from operating activities 201,878 315,080 Cash flows from investing activities Interest received Purchase of investments Sale of investments Purchase of fixed assets 12.560 (94.6451 94.645 15.6611 1281,246) 9,438 Net cash inflowslloutflowsl from investing activities 6,899 1271,808) Cash flows from financing activitie$ Interest paid (Decreaselllncrease in long term borrowings {94.4561 1140,794) 12,600) 106,599 Net Gash outtlows from financing activities {97,0561 (34,195) Net increase in Gash and cash equivalents 111,721 9,077 Cash and cash equivalents at beginning of year 27,018 17,941 Cash and cash equivalents at end of year 138,739 27,018 Cash and cash equivalents comprise: Cash at bank and in hand 138,739 27,018 Analysis of changes in net debt Al 1 Sept 2023 At 31 Aug 2024 Cashflows Cash at bank and in hand Loans due within one year Loans due after one year Net debt 27,018 (212,8421 {1,047,4521 1.233.276 111,721 138,739 1212,842) 2,600 (1,044,852) 114,321 1,118,955 12 ## **West London Mission Housing Association Limited Year ended 31 August 2024** ## **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 do so. During the year, discussions with potential new directors and the West London Mission Circuit, with a view to the company assuming full control of the of the services provided in its properties, were terminated without agreement, consequently, the existing arrangements continue in force, and therefore the company continues to benefit from the Circuit's support. Accordingly, the directors continue to consider that it is reasonable to adopt the going concern basis in preparing these 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 13 ## **West London Mission Housing Association Limited Year ended 31 August 2024** ## **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 14 ## **West London Mission Housing Association Limited Year ended 31 August 2024** ## **Notes to the financial statements (continued)** 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. 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 15 ## **West London Mission Housing Association Limited Year ended 31 August 2024** ## **Notes to the financial statements (continued)** 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. ## **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 16 ## **West London Mission Housing Association Limited Year ended 31 August 2024** ## **Notes to the financial statements (continued)** 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. ## **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 2024 3 Turnover, operating costs and operating surplusl{deficit) Totsl 2024 Totsl 2023 Operating surplus I (deficit Operating surplus I (deficit> Operatlng costs Operatlng costs Turnover Turnover Income and expenditure from lettings Housing accommodation Other income and expenditure Other 820.336 800,505 19.831 491.819 704,809 1212,9901 52,245 872,581 47,518 848,023 4,727 24,558 83,797 575,616 174,268 879,077 (90,471) 1303,4811 18 West London Mission Housing Association Limited Notes to the financial statements {continued) For the year ended 31 August 2024 Income and expenditure from lettings Totsl 2024 Total 2023 Supported Supported housing housing Income Rent and service charges receivable Voids Net rental income 784,327 1168.295 616,032 674,157 {235,870 438,287 Government grants taken to income Turnover from lettings 204,304 820,336 53,532 491,819 Operating costs Services Management Routine maintenance Operating costs on lettings 425.044 206,212 169,249 800,505 310,459 244,588 149,762 704,809 Operating surpluslldeficit} on lettings 19,831 212,990 S Surpluslldeficit) on ordinary activities Surpluslldeficitl on ordinary activities for the year is stated after charging.. 2024 2023 Depreciation on tangible fixed assets Amortisalion of social housing grant Auditors, remuneration - in their capacity as external audrtors Current year Prior year 161,201 156,255 (91,8021 {84,6151 23,550 22,620 23,400 16,622 19 West London Mission Housing Association Limited Notes to the financial statements {continued) For the year ended 31 August 2024 6 Staff costs Totsl 2024 Total 2023 Wages and salaries Social security costs Other pension costs 165,107 17,481 18,483 201,071 200,017 20,714 19,831 240.562 The above includes termination and redundancy payments of £0 {2023'. £01. Average number of full time equivalent persons employed during the year.. Number 2024 Number 2023 Managemenl Services Average number of staff employed during the year.. Number 2024 Number 2023 Managemenl Services No member of slaff received any emoluments in excess of £60,000 in the year12023'. nonel. 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 emolumenls or V￿re reimbursed for any expenses during the year12023'. nonel- Salaries of the senior management team and key management personnel are charged in Ihe 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 2024 Tangible fixed assets - Group and Association Housing properties held for letting Freehold Leasehold Total Cost At 1 September 2023 Additions Disposals and fully depreciated At 31 August 2024 4.113,145 3,431.813 7,544,958 5,661 5,661 4.118,806 3.431.813 7,550,619 Accumulated depreciation At 1 September 2023 Charge for the year Released on disposal and fulty depreciated At 31 August 2024 820,904 1,677,283 2,498,187 75,124 86.077 161,201 896,028 1.763.360 2,659,388 Net book values At 31 August 2024 3,222,778 1.668.453 4.891,231 At 31 August 2023 3,292,241 1.754.530 5,046,771 The leasehold interest in the Sl Luke's Cenlre, 25A Wincott Street, London, SE11 passed lo the Association on 1 September 1995. The lease is for a lerm of 99 years commencing on 27 January 1989. The leasehold inleresl in Burgess Park House, 56 Camberwell Road, London, SES is also for the term of 99 years and commenced on 28 September 2001. Investments - Group Totsl 2024 Total 2023 At 1 September Additions Disposals Realised and unrealised gainslllosses) At 31 August 263,639 94,645 194,645} 19,869 283,508 284,998 21,359 263,639 The above tot81 comprises.. CFB UK Equity Fund unrts CFB Corporate Bond Fund units CFB Property Investment Fund untts CFB Managed Fixed Interest Fund units 137.219 119,133 90,506 54,000 50,995 95,294 283,508 263,639 Cost at 31 August 254.764 245,112 21 West London Mission Housing Association Limited Notes to the financial statements {continued) For the year ended 31 August 2024 10 Subsidiary Undertakings The results and financial wsition of the West London Mission Donald Soper Fund are as follows.. Statement of financial activities 2024 2023 Income from Donations and legacies Investments 100,000 12,483 112,483 10,281 10,281 Expenditure on Raising funds Charitable aclivrties 18041 {8931 804 893 Realised and unrealised gainlllossl on investments 19,869 {21,3591 Net incomel{expendrture) 131,548 11,971 Balance sheet 2024 2023 Fixed assets Investments 283,508 263,639 Current assots Debtors Cash al bank and in hand 1,895 131,101 132,996 1,895 19,422 21,317 Net assets 416,504 284,956 Funds 416,504 284,956 22 West London Mission Housing Association Limited Notes to the financial statements {continued) For the year ended 31 August 2024 11 Debtors Group A550ciation Total 2024 Total 2023 Total 2024 Total 2023 Trade debtors Prepaymenls Accrued income West London Mission Circuil Fund 92,564 8,471 126,839 9.740 2.000 191,249 329,828 92,564 8,471 126,839 9,740 2,000 189,355 327,934 191.249 292.284 189,355 290.390 12 Creditors: Amounts falling due within one year Group Association Total 2024 Total 2023 Total 2024 Total 2023 Trade creditors Other creditors Other taxes and social security Accruals Deferred income Housing loans (see note 131 West London Mission - WLM Strides 29.522 19,034 6.014 53,944 1.066 212.842 84,991 19,806 29.522 19,034 6,014 53,944 1,066 212,842 84,991 19,806 27,070 50,888 212.842 27,070 50,888 212,842 766,551 839,313 766,551 839,313 Hinde Street Methodist Church 13 13 13 13 West London Mission- Circurt Fund 257,300 140,603 257.300 140,603 1.346,286 1,375,526 1.346,286 1,375,526 23 West London Mission Housing Association Limited Notes to the financial statements {continued) For the year ended 31 August 2024 13 Creditors: Amounts falling due after more than one year Group A550ciation Total 2024 Total 2023 Total 2024 Total 2023 Housing loans Government grants 1,044,852 1.047,452 1,044,852 1,047,452 2,074,190 2,165,992 2,074,190 2,165,992 3,119,042 3,213,444 3,119,042 3,213,444 In respecl of the housing loans £1.024,85212023'. £1,027,452) rep￿SentS Ihe balance outstanding under a loan from the Wesl 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 instalmenls commencing at £20,000 per annum, both principal and repayments being index linked. Interest is payable al 4.5Vo. None (2023.. £nil) of this liability is included in credrtors falling due within one year. The remaining £20,00012023'. £20.000) consists of an interest-free loan or repayable granl 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. Governm&nt grants Total 2024 Total 2023 At 1 September Amortisalion lo Statement of Comprehensive Income At 31 August 2,165,992 2,250,607 91.802 84,615 2.074.190 2,165,992 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 altemalive social housing properties within three years. The total accumulated amount of capital grant received or receivable al the Slalement of Financial Position date is £3,921,446 {2023.' £3,921,446>. 24 West London Mlsslon Houslng Assoclatlon Llmlted Notes to the financial statements Icontinuedl For the year ended 31 August 2024 14 Reserves Restrlcted Deslgnated Property Cycllcal equity maintenance reserve reserve Donald Soper Fund WLM Strldes Income & expenditure Total At 1 September 2023 Surpluslldeficill for the year Transfers between reserves.. Deprecialion l amortisation Addition to maintenance reserve Charged to maintenance reserve At 31 August 2024 284.956 131,548 25.150 (25.150) 603,975 189.355 {25,150) {44,250) 1,078,286 62,148 (69,400) 69,400 416,504 534,575 189.355 1,140,434 15 Analysls of Net Assets Restrlcted Deslgnated Unrestrlcled Funds Funds Funds Total Fixed assets Investmenls Current assets Creditors due wthin one year Creditors due after more than one year 4,891,231 4,891,231 283,508 431,023 11,346,286) 13,119,042) 1,140,434 283,508 132,996 298,027 {1,346,286) {3,119,042) 723,930 416,504 25 West London Mission Housing Association Limited Notes to the financial statements {continued) For the year ended 31 August 2024 16 Units in management Number 2024 Number 2023 Under management atthe end of the year: Housing accommodation - tjed spaces 71 71 17 Related party transactlons 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 lo be a related party. The Circuit is not considered to be under common conlrol with Ihe Association as normally a minorty of the Association's board members are trustees of the Circuit, though ai present there is parity between Circuit trustees and other directors. Dunng the year, the Association undertook the following iransaclions with relaled parties.. Value of transactlons durlng the year 2024 2023 Amount owed tol{byl WLM Houslng Assoclatlon 2024 2023 Wesl London Mission Circult Housing loans Indexation on housing loans Interest on housing loans Settlement account Debtor (dilapidations balances) 2.600 1106,599) 38,285 88,798 57,367 51,996 (116,697) (56,563) 11,237,694) 11,240,294) 1257,3001 {140,6031 189,355 189,355 WLM Strides Proiect1surplus)Ideficit grant Administration charges Rental income received from KPH House Settlement account (223,224) 149,685 86.207 131,040 131,040 72.762 (158.397) (766,5511 (839,3131 26