Company registration number: 10527810 Charity registration number: 1175536 Charity OSCR number: SC 0 51058
## Ministry of Building Innovation
(A company limited by guarantee) Annual Report and Financial Statements
for the Year Ended 31 December 2021
CORBETT & CO ACCOUNTANTS LIMITED 555 Smithdown Road Liverpool Merseyside L15 5AF
## **Ministry of Building Innovation**
## **Contents**
|Reference and Administrative Details|1|
|---|---|
|Strategic Report|2|
|Trustees' Report|3 to 9|
|Statement of Trustees' Responsibilities|10|
|Independent Examiner's Report|11|
|Statement of Financial Activities|12|
|Balance Sheet|13|
|Notes to the Financial Statements|14 to 19|
## **Ministry of Building Innovation**
## **Reference and Administrative Details**
**Chairman** John Mathers **Trustees** John Mathers George Anthony Clarke Mary Valerie Linda Parsons Mark Farmer Mr Steve Quartermain **Principal Office** Lyday House Oakridge Lynch Stroud Gloucestershire GL6 7NU **Company Registration Number** 10527810 **Charity Registration Number** 1175536 **Scottish Charity Regulator (OSCR)** SC 0 51058 **Bankers** Metro Bank One Southampton Row London W1CB 5HA **Independent Examiner** CORBETT & CO ACCOUNTANTS LIMITED 555 Smithdown Road Liverpool Merseyside L15 5AF
Page 1
## **Ministry of Building Innovation**
## **Strategic Report for the Year Ended 31 December 2021**
The trustees, who are directors for the purposes of company law, present their strategic report for the year ended 31 December 2021, in compliance with s414C of the Companies Act 2006.
The strategic report was approved by the trustees of the charity on 29 September 2022 and signed on its behalf by:
......................................... John Mathers Chairman and Trustee
Page 2
## **Ministry of Building Innovation**
## **Trustees' Report**
The Trustees, who are Directors for the purposes of Company Law, present the Annual Report together with the financial statements of the Charitable Company for the period ended 31 December 2021.
## **Structure, Governance and Management**
## _Nature of Governing Document_
The Ministry of Building Innovation (MOBI) is a Company Limited by Guarantee (No: 10527810). It is registered as a charity with the Charity Commission in England and Wales (No: 1175536) and the Office of the Scottish Charity Regulator (OSCR No: SCO51058). Its Governing Instruments are its Memorandum of Association and Articles of Association which were approved on 15th December 2016. They were revised on 17th August 2017. The charity operates under the title of the Ministry of Building Innovation and Education (MOBIE) and is registered at Companies House as Ministry of Building Innovation (MOBI).
## _Purpose_
Young people, housing and education are at the heart of MOBIE’s work. The Charity works with a range of **education** and other partners to deliver home design and innovation learning at all age levels; it **engages** young people to inspire them to take an interest in and pursue careers in housing and the built environment and it promotes **innovation** in housing design.
## MOBIE will:
- inspire, train and re-train young people to deliver the homes and places that we want and really need; and
- advance home design and innovative construction thinking, working with industry and government to help providehomes that will genuinely transform the way we live in Britain.
MOBIE has five main priorities that will help it achieve its aims:
- developing a Further and Higher Education offer in advanced home design, manufacture and construction;
- developing a schools’ programme to inspire younger generations to pursue a career in innovative home design and manufacture;
- runninghomes of the future;design challenges to enable young talented designers and thinkers to share their vision and ideas of the
- creatinginnovative home-making and learning in the UK; andan International Centre for Advanced Home Design, Innovation and Manufacturing to be the hub for
- undertaking Research and Development to advance home design and manufacturing knowledge.
## _Organisation Structure_
MOBIE is governed by a Board of Trustees. The Board must have at least three members. The Board usually meets every 6-8 weeks. The composition of the Board is reviewed on a regular basis to ensure that it remains appropriate and has the right composition of skills and expertise to direct the activities of the Charity.
The Charity’s work is guided by the five main priorities and results are monitored throughout the year by the Board.
The day to day control and operation of the Charity is managed by the Chief Executive. MOBIE’s other staff are its Head of Education, who leads on the development of education approaches in advanced home design, manufacture and construction, and Head of Design, who leads on design thinking, undertaking specific pieces of design work including design challenges and managing and developing content for MOBIE’s website, social media and printed materials.
## _Recruitment and appointment of Trustees_
Keeping the Board current and relevant is vital for the good governance of the Charity. Consideration is given to relevance and breadth of knowledge, diversity of personal qualities, skills and experience in considering Board appointments.
Page 3
## **Ministry of Building Innovation**
## **Trustees' Report**
## _Working relationships_
MOBIE achieves its objectives by working in partnership with other stakeholders:
- Higher Education - courses are developed with partner Universities who deliver the course outcomes and content
- • co-created with MOBIE;.MOBIE assists with delivery where appropriate and oversees quality; we have created a Research and Development capability in partnership with Northumbria University – The Homes for the Future Innovation Centre.
- Further Education - we have partnered with Pearson, the world’s leading learning company, to develop MOBIE
- • modules for their Construction and Built Environment BTEC, and MOBIE Future Homes Design and Construction Higher National Certificates (HNC) and Diplomas (HND).
-
- We have joined forces with a variety of partners to deliver Home Design Challenges.
- We continue to explore options for a Centre for Advanced Home Design, Innovation and Manufacturing with partners.
## _Major risks and risk management_
MOBIE maintains a risk register to identify potential risks, gauge the likelihood of the risk occurring, estimate the impact were it to occur and detail the arrangements that have been put in place to reduce the risk. This is reviewed by the Executive on a regular basis and by Board at least annually. 2021 was a challenging year for the country as the last lockdowns, due to the Covid-19 Pandemic, continued to impact normal working and operations and then the country adjusted to life after the pandemic. All businesses and employers were significantly impacted and as a result the charity had to adapt and adjust its activities, programmes, ways of working and expenditure accordingly.
## **Objectives and activities**
## _Objectives and aims_
As detailed in the Memorandum of Association, the Charity’s objectives are _“to advance such charitable purposes as the trustees see fit from time to time but not limited to advancing the education of young people and adults for the public benefit by providing centres of educational excellence, delivering educational programmes, carrying out research and making grants and awards to students_ ”. These activities are delivered with funding from grants, income from design challenges and other contracts, student fees from MOBIE courses and donations.
MOBIE trustees have complied with their duty to have regard to the Charity Commission’s public benefit guidance when exercising any powers or duties to which the guidance is relevant.
## _Financial review_
The Statement of Financial Activities (SOFA) set out on page 11, is designed to reflect all income receivable in the period covered by the report irrespective of when it is spent.
During the year the charity received income of £149k. The charity had total expended resources for the year of £180,984. The accumulated funds at the end of the year were £36k.
These financial statements have been prepared in accordance with the Statement of Recommended Practice – Accounting and Reporting by Charities (SORP) and applicable accounting standards.
## _Policy on reserves_
The charity needs to hold sufficient unrestricted reserves to enable it to deliver projects and outcomes in line with the public benefit it provides. A reserve will be developed and retained to enable this to happen. The Board of Trustees monitor the reserves and cashflow at each Board meeting to ensure the charity remains in a financial position to complete its required activities in both the short- and long-term. In support of our reserves policy, our intention is to hold reserves equivalent to 6 months running costs that will enable the charity to fund any short-term deficits in our cash budget due to, for example, delayed payments for services or award of grants. Due to the impact of the Covid-19 Pandemic it was not possible to build up our reserves in 2020 or 2021.
Page 4
## **Ministry of Building Innovation**
## **Trustees' Report**
## _Investment policy and objectives_
The charity has the power to invest any monies not immediately required for its purposes in or upon such investments, securities or property as is considered fit subject to such conditions and consents as may be imposed or required by law and within the limits of the Ministry of Building Innovation and Education Policy. No monies were invested during the reporting period with all reserves held in the Charity bank account. Due to the prevailing economic conditions in 2021 the Charity did not build up its reserves.
## _Going concern_
The charity operates to an agreed annual budget that is aligned to the Charity’s Business Plan. The long-term operating model of the charity is to keep running costs focussed on core staff and any required services and facilities required to deliver its objectives. We will fund this through a variety of income sources, including from a percentage of student fees on MOBIE courses, contracts for running design challenges and other projects, grants and any in-kind funding through partnerships, to meet the operating costs and project costs of the organisation.
MOBIE received income from the MSc course at Teesside University and a grant from the Wates Giving Fund (and additional income from Wates Residential) to run a primary school design challenge, and a grant from the City Charitable Trust to develop a MOBIE programme in Scotland. MOBIE also received income from contracts from Gravity to run a design challenge for schools in Bridgwater, Somerset, Sunderland City Council to run the Riverside Sunderland University Design Challenge, the Greater London Authority to run the Design Future London young persons’ design challenge and Places for People for design services for the Gilston Park development community barn building.
The charitable activities undertaken may require any unrestricted reserves to be utilised in order to deliver the agreed objectives in the Business Plan. The Directors are satisfied that the Charity is a going concern.
## **Achievements and performance**
MOBIE’s activities were affected by the Covid-19 pandemic including the third national lockdown from January to March 2021 and the subsequent phased exit. We had to continue to adapt the delivery of services to the operating restrictions in place in the early part of the year. Our design challenges for schools and young people had to change to more remote delivery. Participation was affected, with less participants that planned in some challenges as schools focussed on the curriculum and helping pupils catch up with lost and disrupted learning. Finals and presentation events were held virtually. Training events for colleges and industry were delivered through virtual presentation, but this did enable us to attend more events and it reduced our travel (and time) costs. This virtual approach will form a greater part of our delivery post Covid-19.
Highlights of 2021 include the delivery of the Riverside Sunderland University Design Challenge, our first challenge for primary school children and other challenges, the successful Levelling Up Fund bid with Sunderland City Council and Sunderland College to build and create the Housing Innovation and Construction Skills Academy (HICSA) in the city, the publication of the impact report on the Home of 2030 Young Persons’ Design Challenge, the development of teaching resources for primary schools – Building our Future – and the establishment of a colleges and industry training providers’ group/network of training organisations delivering, or planning to deliver, Modern Methods of Construction content.
Through the year we continued to strengthen the MOBIE brand through our website and social media. We restructured our website with the revised design focussed on our users, answering the questions and problems that they need answering. We intend to increasingly open up our website and social media to young people to have their say on what they want to see in the future in housing, design and the built environment. The first two blogs by young people were authored by the winner of our Home of 2030 Design Challenge and a UWE student who participated in one of our other design challenges.
We continue to positively shape the future of home building in the UK by educating young people in a different way of thinking and doing and inspiring more young people to take up careers in the Built Environment through our design challenges
## **MOBIE Courses**
Our courses and young peoples’ design challenges are a key component of delivering our vision of inspiring, training and re-training young people to deliver the homes and places that we want and really need:
Page 5
## **Ministry of Building Innovation**
## **Trustees' Report**
## _MSc Advanced Home Futures, Teesside University_
The MSc in Advanced Home Futures at Teesside University was launched in September 2018. The third cohort of MOBIE students graduated in 2021.
## _BSc Advanced Home Futures, Teesside University_
The BSc degree in Innovative Home Design and Construction at Teesside commenced in September 2019 and students completed their second year in 2021.
## _BA Design for Future Living, Birmingham City University_
The BA degree in Design for Future Living, developed alongside the architecture department at Birmingham City University, commenced in September 2019 and completed its second year in 2021. Post Covid-19 lockdown we have been increasingly involved in projects, brief development, online reviews, student presentations and critiques.
## _MSc in Offsite Housing Construction, University of Wolverhampton_
The MSc in Offsite Housing Construction with the University of Wolverhampton commenced in January 2020. It places emphasis on the process and technical challenges of Modern Methods of Construction and it is attractive to people in industry because of its distance learning method of teaching. The second cohort commenced in 2021.
## _Homes for the Future Innovation Research Centre, Northumbria University_
The first PhDs under the MOBIE/Northumbria University Homes for the Future Innovation Centre started in October 2019. The intention is to fund up to five PhD research programmes in home design, manufacture and construction each year for three years, with industry providing 30% of the funding and the rest through the University - https://www.northumbria.ac.uk/business-services/engage-with-us/mobie/.
## _Sheffield Hallam University_
MOBIE worked with Sheffield Hallam University to develop a final year project brief for its Architectural Technology students to create a MOBIE HQ/innovation Centre in the city. Two city centre sites on the Sheffield College campuses were selected for the building, each offering different challenges and design opportunities. The completed projects included some very impressive, innovative designs. MOBIE was part of the final assessment grading team. Based on the success of the final year project, we also acted as clients for a 1st year project, Future Dwelling, a modular cooperative housing scheme.
## **Course Development**
## _BTEC Level 3 Construction & Built Environment (partnering with Pearson)_
MOBIE worked with Pearson to rewrite the existing units for this programme to include MMC and specifically to update the content around sustainability, renewables, Building Information Modelling (BIM), Digital Design and Technologies. These revisions will be included in the course criteria for delivery from September 2022. We have also written the content and assignments for new specialist modules including units in housing design, offsite and onsite alternative construction methods, renewable energy for housing and the housing industry. It is intended that these updates and additions will make the course more ‘fit for purpose’ and appeal to employers who want their trainees and apprentices better equipped for industry and employment.
## _Higher National Certificate in MMC_
MOBIE has partnered with Pearson to create a new Level 4 & 5 HNC/D in MMC. This will replace our previous HN in Future Housing Design & Construction. The revised HN in MMC will appeal to a broader set of employers, whilst retaining the option of our original housing-based modules as specialist units. This course is designed as a part time (day release) course for students in employment. Each of the units created for this course have been designed for delivery as ‘standalone’ modules for delivery as Continuing Professional Development (CPD) or short course training for companies, especially SMEs, to help their understanding of and the benefits of adopting modern construction methods and digital technologies.
Page 6
## **Ministry of Building Innovation**
## **Trustees' Report**
## **Design Challenges**
_Home of 2030 Young Persons’ Design Challenge Impact report_
We produced a report of the outcome of the Home of 2030 Young Persons’ Design Challenge that we ran alongside the professional design competition run by the Building Research Establishment (BRE), Royal Institute of British Architects Competitions (RIBA) and the Design Council – www.homeof2030.com. The report showcases the winning and runners’ up designs from the four age groups and summarises the key themes that emerged from their future home designs. This is our first report of a design challenge and we intend to produce similar reports in the future.
_2021 Design Challenges_
We ran five young persons’ design challenges in 2021 aimed at a variety of age groups:
- Riversidegraduates) Sunderland University Design Challenge (Built Environment University undergraduates and 2020
- Made in Sunderland: Future Living Design Challenge (11-24)
- Gravity Smart Campus Design Challenge (9-18)
- Wates Primary School Home Design Challenge (7-11)
- Scotland Resource Efficient House (11-25)
Design Challenges engage young people in home design and the built environment and enable them to express their hopes and ideas for the homes and places of the future.
The Covid-19 pandemic impacted on the challenges with reduced numbers of participants in some challenges and a need to judge and hold finals events remotely. Feedback from schools and colleges indicated that the pandemic and lockdown caused major disruption to the academic year and delivery of the core curriculum. There was widespread enthusiasm for the competitions, but unfortunately in many cases there was little or no time for extra-curricular engagement.
For the Riverside Sunderland University Design Challenge, a series of free expert webinars were organised in February during lockdown which were very well attended and received. Each webinar was recorded. A video library of the content has been created and added to the Inspiration section of the MOBIE website. The quality of the final submissions from the multidisciplinary teams of students was astonishing.
A new challenge format was trialled with the one week-long House iO Design Competition with Totally Modular, Value Shift, Infill Works and Bristol Housing Festival. This challenge was for students in the Department of Architecture and the Built Environment at the University of West England (UWE) Bristol. The competition asked teams of architectural students to design a prefabricated housing scheme for homeless people using a Totally Modular housing system. The teams’ solutions and designs were for actual sites allocated for housing in Bristol. The standard of the designs, which were produced in just 7 days, were amazing.
The Design Future London challenge (11-15) commenced in November in collaboration with the Mayor of London. The challenge for young students in London’s schools and colleges surrounding London is to design a masterplan for a new ‘village’ development on two sites in East London’s Royal Docks, close to the new City Hall. The brief is focussed on four key themes: Affordable Housing, Green Energy, Sustainable Transport and Improving Air Quality. The closing date for the challenge is in 2022.
## **Projects**
_Housing Innovation and Construction Skills Academy (HICSA)_
In partnership with Sunderland City Council and Sunderland College we submitted a bid to the Government’s Levelling Up Fund to deliver the Housing Innovation and Construction Skills Academy (HICSA). The bid was successful. We are now in discussion with the City Council and College about the vision for the Centre and MOBIE’s involvement in developing teaching and course content, teaching and training, engaging local young people, etc.
Page 7
## **Ministry of Building Innovation**
## **Trustees' Report**
## _Building our Future_
MOBIE has partnered with Twinkl, the schools teaching resource provider, to develop STEAM teaching material for primary schools based on home and sustainability - Building our Future. Eight ‘Question Sparks’ are being developed into classroom exercises with ‘expert’ input from MOBIE to support these. MOBIE’s experts are drawn from three of our previous young persons’ design challenge winners who will each present short videos on the exercises that will be included in the learning materials. This is a great way to engage young learners through members of our MOBIE community. The resources will be launched in 2022.
## _Modern Methods of Construction for SMEs_
MOBIE was part of a successful consortium bid to support Small and Medium Size Enterprises (SMEs) in the West of England engage in Modern Methods of Construction. MOBIE will develop and test training materials and resources through three skills delivery pilots. These pilots will help to test and refine materials and seek to embed training within existing trade pathways (NVQs, apprenticeships and professional CPD) so that existing learners, and new entrants, can become competent in offsite skills and methods.
## _Offsite Alliance - Skills and Competencies working group_
Working in partnership with the Offsite Alliance we have established a skills working group, chaired by MOBIE’s CEO. The industry group will review the skills required for a modern housebuilding industry and future workforce, to include digital design and new technologies, alternative construction methods, techniques and materials, sustainable design, low carbon, renewable energy for housing, and the changing housing industry. The group has identified 5 priorities:
- Establishing competencies for MMC
- EstablishingMMC content so they can learn from and support each other to promote MMC as part of construction learninga colleges and industry training centres group – comprising colleges that are intending to deliver
- Schools engagement
- Apprenticeships and T levels
- Industryteach current industry MMC practice.teaching network - linking training centres with industry by creating a network of specialists who can
In partnership with BACH (British Association of Construction Heads) MOBIE and the Offsite Alliance ran a number of webinars for College construction schools. The objective of the webinars was to drive up interest in the delivery of MMC content by construction colleges and to launch the group of colleges planning to deliver MMC content or establishing new construction centres. The webinars introduced MMC, existing course units, content, industry requirements and learning from construction colleges already delivering MMC content. The webinars were well received and attended. The webinar drew on content from the Offsite Ready programme and college webinars in 2020.
MOBIE was part of the successful Optimised Retrofit project consortium in Wales and will focus with other partners on assessing and developing the skills required for successful retrofit.
## **Governance**
MOBIE successfully applied to the Office of the Scottish Charity Regulator (OSCR) to become a charity in Scotland. MOBIE was entered onto the Scottish Charity Register on 17th June 2021. As a charity already registered in England and Wales, we are classed as a ‘cross border’ charity, with the Charity Commission taking the lead in governance matters, but the Scottish Registration allowing us to operate in Scotland. We have started to deliver design challenges in Scotland and develop training materials for Scottish Primary Schools with Twinkl Scotland.
## **Plans for future periods**
## _Aims and key objectives for future periods_
The primary services delivered by the Ministry of Building Innovation and Education during the reporting period were course development, course content, design challenges and events for academia and industry.
Page 8
## **Ministry of Building Innovation**
## **Trustees' Report**
The Charity has developed a unique education pathway in home design, manufacture and construction from BTEC to PhD. We aim to grow the number of students on existing courses, and the number of institutions offering these courses so that many more students can learn about a new way of creating homes and move onto careers in the built environment, home design and manufacture.
The charity will continue to run young peoples’ Home Design Challenges for school and college students with our partners. We intend to grow the number of young people taking part in such challenges and the number of challenges themselves. The charity will seek income, including grants, to deliver our education programme for students and our design challenges to inspire the next generation of home creators. We will seek partners with allied interests to help fund our activities and bid for contracts to deliver services that are core to our charitable objectives.
The Trustees, as part of their duties, review the Charity’s objectives alongside the latest strategies and priorities. They remain satisfied that the objectives are capable of being delivered for the public benefit. The activities undertaken during the reporting period, and planned for the future, are considered to be sufficiently broad and open to fall within the statutory definition of public benefit.
The annual report was approved by the trustees of the charity on 29 September 2022 and signed on its behalf by:
......................................... John Mathers Chairman and Trustee
Page 9
## **Ministry of Building Innovation**
## **Statement of Trustees' Responsibilities**
The trustees (who are also the directors of Ministry of Building Innovation for the purposes of company law) are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.
Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by the trustees of the charity on 29 September 2022 and signed on its behalf by:
......................................... John Mathers Chairman and Trustee
Page 10
Ministry ofBuilding Innovation
Independenl Examiner's Rert to the tnttts of Ministry of Building Innovation
l Ttport to the charity trustees on my examinatioD of thE a(c(NJnts of the ¢tlty for the y&2r ended 31 Decemkr 2(r21 which
are set out on pages 12 to 19.
Respective rtjponssbilitits of trnstees *Dd examiDer
As the ¢haTity'S tsustees of Mi]Jistry of Building Innovation {and also itsdirector5 for th¢ pury05es of ¢omp8ny ]awl you are
re5PQTlSiblt for thE preprtiDn of thc acwjnts ITh accorthnce with the requiremctts of the Companies Aa 2006 ('the 2006
Act'l.
Having satisfied myself that the A¢eounts of Mirtisty of Building Ir10 art not requir to b¢ audttcd under Part 16 of
the 20¢)6 Act and 8ff tliEiblt for ind]1£1 examin1( I tCP)rt iti re4XCt of My £¥arnon of your ¢hwyty's accou015
as wried out undET 5ectioR 145 of the Charitits Act 2011 {'thc 2011 Ad'l. lu carying out tDy exatnination I h&ve followe41
the Directions giv¢n by th¥ Ctwity Commission under s¢¢tiort 145(5Xbl of the 2011 ACL
IndepelldeDt examiRer's stateme
I have completed my examiwioJL I c¢)Dfirn no matters bave cotne to my attention in ¢fjnn¢rtion with the examinatio
giving ]nc ¢&use to bcli¢ve'.
accountillg records WeT¢ ELOt kept in T¢5Ff£t Df Ministy of Building Innovati1 as requ¢ by section 386 of the 26
.' or
2. the rOUts do Jjot aw)rdwith rr¢0. or
3. the accounts do rtoi comply tlK accollntiog requwerncnts of %aioll 396 of th¢ 2006 Act other thats any
Trquirctncnt thxt th¢ accounts ve a 'tr aj fair view. which is not a ¢onsidered as part of an independcnt
exatnination., or
4. th¢ a¢c¢)unts have not been prq>artd in a¢¢ordance with the JJ]ethods and wintiples of the Statement of Re£orntnend¢d
PctiCe for aceountang and rwrting by charities lapplicable to rhaTttie5 PtcS>8Tl their accounts in accothce with
(he Financial Reporting Stsndard applithlc in th¢ UK 3nd R¢public of l]Yland {FRS 10211.
I have no concerns and havc comc xtoss olhermatrers in conDection with the eKamitthi)o to which attentioll sbould b¢
thawn in thi5 report in ord¢r to enable a proper uftdtT5tandJngof tk 8ccwTrlsto be T¢ach.
Nicky Corbett
ACCA
555 Smithdown R(Ydd
Liven)ool
Meis¢yside
LI5 SAF
29 SepiemtrKr 2022
Page li
## **Ministry of Building Innovation**
## **Statement of Financial Activities for the Year Ended 31 December 2021 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)**
|**Note**
**Income and Endowments from:**
Other trading activities
3
Investment income
4
Total income
**Expenditure on:**
Raising funds
Charitable activities
5
Total expenditure
Net expenditure
Net movement in funds
**Reconciliation of funds**
Total funds brought forward
Total funds carried forward
10
**Note**
**Income and Endowments from:**
Other trading activities
3
Total income
**Expenditure on:**
Charitable activities
5
Total expenditure
Net expenditure
Net movement in funds
**Reconciliation of funds**
Total funds brought forward
Total funds carried forward
10|**Unrestricted**
**funds**
**£**
149,332
6
149,338
(9,000)
(180,984)
(189,984)
(40,646)
(40,646)
24,968
(15,678)
**Unrestricted**
**funds**
**£**
156,752
156,752
(180,264)
(180,264)
(23,512)
(23,512)
48,480
24,968|**Total**
**2021**
**£**
149,332
6|
|---|---|---|
|||149,338|
|||(9,000)
(180,984)|
|||(189,984)|
|||(40,646)|
|||(40,646)
24,968|
|||(15,678)|
|||**Total**
**2020**
**£**
156,752|
|||156,752|
|||(180,264)|
|||(180,264)|
|||(23,512)|
|||(23,512)
48,480|
|||24,968|
All of the charity's activities derive from continuing operations during the above two periods.
The funds breakdown for 2020 is shown in note 10.
Page 12
## **Ministry of Building Innovation**
## **(Registration number: 10527810) Balance Sheet as at 31 December 2021**
|**Note**
**Current assets**
Debtors
8
Cash at bank and in hand
**Creditors: Amounts falling due within one year**
9
**Net (liabilities)/assets**
**Funds of the charity:**
**Unrestricted income funds**
Unrestricted funds
**Total funds**
10|**2021**
**£**
30,170
6,003
36,173
(51,851)
(15,678)
(15,678)
(15,678)|**2020**
**£**
-
39,417|
|---|---|---|
|||39,417
(14,449)|
|||24,968|
|||24,968|
|||24,968|
For the financial year ending 31 December 2021 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
- The members have not required the charity to obtain an audit of its accounts for the year in question in accordance with section 476; and
- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements on pages 12 to 19 were approved by the trustees, and authorised for issue on 29 September 2022 and signed on their behalf by:
......................................... John Mathers Chairman and Trustee
Page 13
## **Ministry of Building Innovation**
## **Notes to the Financial Statements for the Year Ended 31 December 2021**
## **1 Charity status**
The charity is limited by guarantee, incorporated in , and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exceeding £1 towards the assets of the charity in the event of liquidation.
The address of its registered office is:
Lyday House Oakridge Lynch Stroud Gloucestershire GL6 7NU
These financial statements were authorised for issue by the trustees on 29 September 2022.
## **2 Accounting policies**
## **Summary of significant accounting policies and key accounting estimates**
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
## **Statement of compliance**
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). They also comply with the Companies Act 2006 and Charities Act 2011.
## **Basis of preparation**
Ministry of Building Innovation meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
## **Going concern**
The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern nor any significant areas of uncertainty that affect the carrying value of assets held by the charity.
## **Exemption from preparing a cash flow statement**
The charity opted to early adopt Bulletin 1 published on 2 February 2016 and have therefore not included a cash flow statement in these financial statements.
## **Income and endowments**
## _**Investment income**_
Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.
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## **Ministry of Building Innovation**
## **Notes to the Financial Statements for the Year Ended 31 December 2021**
## **Expenditure**
All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.
## _**Raising funds**_
These are costs incurred in attracting voluntary income, the management of investments and those incurred in trading activities that raise funds.
## _**Charitable activities**_
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
## **Support costs**
Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage.
## **Governance costs**
These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees’s meetings and reimbursed expenses.
## **Taxation**
The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
## **Trade debtors**
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables.
## **Cash and cash equivalents**
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Page 15
## **Ministry of Building Innovation**
## **Notes to the Financial Statements for the Year Ended 31 December 2021**
## **Trade creditors**
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the charity does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
## **Fund structure**
Unrestricted income funds are general funds that are available for use at the trustees's discretion in furtherance of the objectives of the charity.
Page 16
## **Ministry of Building Innovation**
## **Notes to the Financial Statements for the Year Ended 31 December 2021**
## **3 Income from other trading activities**
|Other income from other trading activities|**Unrestricted**
**funds**
**General**
**£**
149,332
149,332|**Total**
**2021**
**£**
149,332
149,332|**Total**
**2020**
**£**
156,752|
|---|---|---|---|
||||156,752|
## **4 Investment income**
|Interest receivable and similar income;
Interest receivable on bank deposits|**Unrestricted**
**funds**
**General**
**£**
6|**Total**
**2021**
**£**
6|
|---|---|---|
## **5 Expenditure on charitable activities**
|**Note**
Allocated support costs
6
Governance costs
6|**Unrestricted**
**funds**
**General**
**£**
180,204
780
180,984|**Total**
**2021**
**£**
180,204
780
180,984|**Total**
**2020**
**£**
179,484
780|
|---|---|---|---|
||||180,264|
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## **Ministry of Building Innovation**
## **Notes to the Financial Statements for the Year Ended 31 December 2021**
## **6 Analysis of governance and support costs**
**Support costs allocated to charitable activities**
|Salaries
Consultancy fees
Travel expenses
Insurance
IT
Sundry
Accountancy
**Governance costs**
Allocated support costs|**Information**
**technology**
**£**
-
-
-
-
947
-
-
947|**Administration**
**costs**
**£**
147,212
28,290
1,585
353
-
400
1,667
179,507
**Unrestricted**
**funds**
**General**
**£**
780
780|**Total**
**2021**
**£**
147,212
28,290
1,585
353
947
400
1,667
180,454
**Total**
**2021**
**£**
780
780|**Total**
**2020**
**£**
128,501
44,814
5,361
353
455
-
-|
|---|---|---|---|---|
|||||179,484|
|||||**Total**
**2020**
**£**
780|
|||||780|
## **7 Taxation**
The charity is a registered charity and is therefore exempt from taxation.
## **8 Debtors**
Trade debtors
**2021 £** 30,170
## **9 Creditors: amounts falling due within one year**
|Trade creditors
Other loans
Other taxation and social security
Other creditors
Accruals|**2021**
**£**
3,853
20,000
9,446
17,772
780
51,851|**2020**
**£**
-
-
4,465
8,136
1,848|
|---|---|---|
|||14,449|
Page 18
## **Ministry of Building Innovation**
## **Notes to the Financial Statements for the Year Ended 31 December 2021**
## **10 Funds**
|**10 Funds**|||||
|---|---|---|---|---|
|**Unrestricted funds**
General
**Unrestricted funds**
General|**Balance at 1**
**January 2021**
**£**
(24,968)
**Balance at 1**
**January 2020**
**£**
(48,480)|**Incoming**
**resources**
**£**
(149,338)
**Incoming**
**resources**
**£**
(156,752)|**Resources**
**expended**
**£**
189,984
**Resources**
**expended**
**£**
180,264|**Balance at 31**
**December 2021**
**£**
15,678|
|||||**Balance at 31**
**December 2020**
**£**
(24,968)|
## **11 Analysis of net assets between funds**
|Current assets
Current liabilities
Total net assets
Current assets
Current liabilities
Total net assets|**Unrestricted**
**funds**
**General**
**£**
36,173
(51,851)
(15,678)
**Unrestricted**
**funds**
**General**
**£**
39,417
(14,449)
24,968|**31 December**
**2021**
**Total funds**
**£**
36,173
(51,851)|
|---|---|---|
|||(15,678)|
|||**31 December**
**2020**
**Total funds**
**£**
39,417
(14,449)|
|||24,968|
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