Company registration number: 10527810 Charity registration number: 1175536 Charity OSCR number: SCO51058 ## Ministry of Building Innovation (A company limited by guarantee) Annual Report and Financial Statements for the Year Ended 31 December 2022 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 7| |Statement of Trustees' Responsibilities|8| |Independent Examiner's Report|9| |Statement of Financial Activities|10| |Balance Sheet|11| |Notes to the Financial Statements|12 to 16| ## **Ministry of Building Innovation** ## **Reference and Administrative Details** **Chairman** John Mathers **Trustees** John Mathers George Anthony Clarke Mary Valerie Linda Parsons Mark Farmer Nick Riley **Charity Registration Number** 1175536 **Company Registration Number** 10527810 The charity is incorporated in England & Wales. **Registered Office** Lyday House Oakridge Lynch Stroud Gloucestershire GL6 7NU **Scottish Charity Regulator (OSCR)** SCO51058 **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 2022** The trustees, who are directors for the purposes of company law, present their strategic report for the year ended 31 December 2022, in compliance with s414C of the Companies Act 2006. The strategic report was approved by the trustees of the charity on 28 September 2023 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 2022. ## _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). It is registered at Companies House as Ministry of Building Innovation (MOBI). ## _Purpose_ Young people, housing, education and training are at the heart of MOBIE’s work. The Charity works with a range of education and other partners to deliver **education and training** in home design and creation at all age levels; it **inspires** young people 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, green homes and communities that are great places to live in; and • advance home design and innovative construction thinking, working with industry and government to help transform house building into a clean, precision engineered and efficient industry that provide homes that genuinely transform the way we live in Britain. MOBIE has five main priorities that will help it achieve its aims: • devising, developing and delivering a Further and Higher Education offer in advanced home design, manufacture and construction; • developing schools’ programmes and resources to inspire younger generations to pursue a career in innovative home design and manufacture; • running design challenges to inspire young, talented designers and thinkers to share their vision and ideas of the homes of the future; • creating an Centre for Advanced Home Design, Innovation and Manufacturing to be the hub for innovative home-making and learning in the UK; and • 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 its 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. Page 3 ## **Ministry of Building Innovation** ## **Trustees' Report** ## _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. During the reporting period one Board member resigned and a new Board member was appointed. ## _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 is 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). A new Certificate in Modern Methods of Construction has commenced development. • We have joined forces with a variety of partners to deliver Young Persons’ Home Design Challenges across England and Scotland. - We are working with Sunderland City Council and Sunderland College to deliver the Housing Innovation and Construction Skills Academy (HICSA), a centre for advanced home design, innovation and manufacture – part of a successful Levelling Up Fund bid announced in the October 2021 budget ## _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. 2022 was a year of stabilisation for the charity after the previous challenges for the country from the Covid-19 Pandemic, as the built environment, construction and education industries returned to a more usual operating environment. ## _Policy on reserves_ The charity needs to hold sufficient unrestricted reserves to enable it to deliver its education, training and design challenge outcomes, in line with the public benefit it provides. A reserve is to be developed and retained to enable this to happen. The Board of Trustees monitor the charity’s cashflow and reserves 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 by partners or award of grants. Due to the ongoing impact of the Covid-19 Pandemic it has not possible to build up our reserves in 2022. ## _Objectives and activities_ 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, a percentage of student fees from MOBIE courses, charitable donations and funded delivery of services that deliver the charity’s objectives, such as design challenges or the development of educational materials for young people. 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. Page 4 ## **Ministry of Building Innovation** ## **Trustees' Report** ## _Achievements and performance_ Highlights of 2022 included the delivery of the first Design Future London Young Persons’ Design Challenge in partnership with the Mayor of London, the development of teaching resources for primary schools with Twinkl – _Building our Future_ , the delivery of training in modern construction methods and approaches to Small and Medium Sized Enterprises (SMEs), the development of a building fabric module for new learners and the convening of a colleges and industry training providers’ group/network of organisations delivering, or planning to deliver, training in Modern Methods of Construction (MMC) content. Through the year we continued to strengthen the MOBIE brand through our website and social media. We plan to open-up our website and social media to young people, so they can have their say on issues that matter to them about the future of housing, design and the built environment. ## _MOBIE Courses_ Our courses, development of course content, together with our 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 need. We are increasingly involved in the development of projects, assignment briefs, student presentations and reviews and critiques of student work: _MSc Advanced Home Futures, Teesside University_ - The MSc in Advanced Home Futures at Teesside University was launched in September 2018. The fourth cohort of MOBIE students graduated in 2022. _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 degrees and graduated in 2022. _BA Design for Future Living, Birmingham City University_ - The BA degree in Design for Future Living, has been developed alongside the architecture department at Birmingham City University, it commenced in September 2019 and the first students graduated in 2022. With Torsion, a privately owned independent company developing, constructing, and operating large accommodation schemes, we ran a 1-week design challenge for students on this degree, and the architecture foundation degree, based on creating designs and providing their insights on their needs for student living accommodation. _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 is attractive to people in industry because of its distance learning method of teaching. _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. ## _Course Development_ _BTEC Level 3 Construction & Built Environment_ - MOBIE worked with Pearson to rewrite the existing units for the BTEC including MMC, digital technologies, sustainability, and energy efficiency. These revisions were included in the course criteria for delivery from September 2022. The content and assignments for the specialist modules developed by MOBIE in housing design, offsite and onsite alternative construction methods, renewable energy for housing and the housing industry continue to be available to teach. _Higher National Certificate in Modern Methods of Construction (MMC) -_ MOBIE has partnered with Pearson to create a new Level 4 & 5 HNC/D in MMC. This replaces the previous co-developed 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. The HNC has been approved by the Institute for Apprenticeships and Technical Education (IFATE) as the occupational standard for Construction Design and Build Technicians. This means that companies paying into the apprenticeship levy scheme will be able to use the levy funding to pay for course fees. Each of the units created for this course have been designed for delivery as ‘standalone’ modules that can be delivered as Continuing Professional Development (CPD) or short course training for industry to help develop their understanding of and the benefits of adopting modern construction methods and digital technologies. Page 5 ## **Ministry of Building Innovation** ## **Trustees' Report** _Colleges and industry training providers working group_ - in partnership with the Offsite Alliance, MOBIE has established a colleges and industry training centres group comprising colleges that are delivering or intending to deliver MMC content, with the objective that they learn from and support each other in the promotion of MMC as part of construction learning. ## _2022 Design Challenges_ Design Challenges engage and inspire young people about home design and the built environment and enable them to express their hopes and ideas for the homes and places of the future. _Design Future London Young Persons’ Design Challenge_ - the Design Future London challenge commenced in November 2021, in collaboration with the Mayor of London. The challenge for young students in London’s schools and colleges surrounding London was to design a masterplan for a new ‘village’ development on one of two sites in East London’s Royal Docks, close to the new City Hall. The brief focussed on four key themes: Affordable Housing, Green Energy, Sustainable Transport and Improving Air Quality. The finals were held in July 2022 and hosted by the Mayor of London, Sadiq Khan, and MOBIE founder and Trustee, George Clarke. An audience of two hundred watched twenty finalists (teams and individuals) present their designs, shortlisted from the best entries from the four age categories. The quality of the work and the presentations from the young entrants were outstanding. The winners included the winner of a Peoples’ Vote open to all Londoners – a new feature for one of our challenges. Engagement workshops and events for young people were held throughout the challenge at London Build, Clarkenwell Design Week and UK Construction Week at ExCel London. _Residential Inclusive Development Challenge, Bertha Park, Perth, Scotland_ – Preparation commenced for this challenge in 2022. A series of ‘live’ face to face and interactive workshops are planned in the build up to the launch in 2023, with design sessions and webinars to be held during the competition. A pilot workshop was held at the Bertha Park High School in June. Students from the High School, local primary schools and some residents from the Capability Scotland community day centre and residential care home brainstormed and presented their ideas on technology, the environment and creating a community from the new housing development, schools and care home planned for the development site. The workshop was filmed by STV (Scottish Television) who are interested in following the development and the student participation in the design challenge. _Wates Primary School Competition_ **-** this challenge concluded on 20th July when George Clarke announced the winners. The challenge was impacted by Covid-19, however the quality and creativity demonstrated by the submissions from the primary schools that took part was amazing and it is proof that MOBIE and industry can meaningfully engage with this youngest of student groups on housing design. ## _Projects_ _Housing Innovation and Construction Skills Academy (HICSA)_ - in partnership with Sunderland City Council and Sunderland College a bid was submitted to the Government’s Levelling Up Fund to deliver the Housing Innovation and Construction Skills Academy. The bid was successful and work has commenced with the City Council and College to turn the vision for the Centre into course content, teaching and training materials, engaging local young people, etc. _Building our Future_ - MOBIE 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’ were developed into classroom exercises with ‘expert’ input from MOBIE to support these. MOBIE’s experts were drawn from three of our previous young persons’ design challenge winners who each presented short videos on the exercises in the learning materials. _Modern Methods of Construction for SMEs_ - MOBIE was part of a successful bid to support Small and Medium Size Enterprises (SMEs) in the West of England Combined Authority (WECA) area engage in Modern Methods of Construction. MOBIE developed and tested training materials and resources through skills delivery pilots, so existing learners and new entrants could become competent in offsite skills and methods. The 12-hour training programme focused on ‘modern construction’ which consists of three elements – digital design and BIM, sustainable construction and retrofit and MMC/Offsite construction. MOBIE delivered the introduction and MMC/offsite parts of the programme with other partners delivering the digital and sustainable construction elements. Page 6 ## **Ministry of Building Innovation** ## **Trustees' Report** _Level 2 building fabric training material_ – MOBIE developed teaching materials for the Mid Wales Manufacturing Group for Level 2 learners - school leavers and those new to the industry – in house and building fundamentals, based on the fabric of a building. An introductory module and slides was created for learners. There is potential for this material to be expanded and made available to a wider audience of schools and colleges. ## _Plans for the future_ The primary services delivered by the Ministry of Building Innovation and Education during the reporting period were course programme development, course content, industry training, design challenges and events for academia and industry. The Charity has developed a unique education pathway in home design, manufacture and construction from BTEC to PhD. We want 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 fulfilling 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 as a way of exciting and inspiring young people about home and the built environment. We will grow the number of challenges so more young people can engage in design challenges and are introduced to potential careers in home building. The charity will seek a variety of income, including grants, to deliver our education programme for students and our design challenges to inspire the next generation of home creators. We will continue to develop relationships with partners who share our desire to engage and inspire young people about home, the built environment and construction and who want to ensure young people have the skills required to transform the way we design and build homes. 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 those planned, 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 28 September 2023 and signed on its behalf by: ......................................... John Mathers Chairman and trustee Page 7 ## **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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland". 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 the incoming resources and application of resources, including its income and expenditure, of the charitable company 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 accounting standards, comprising FRS 102 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 proper accounting records that can 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. The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. Approved by the trustees of the charity on 28 September 2023 and signed on its behalf by: ......................................... John Mathers Chairman and trustee Page 8 Ministry ofBuilding Innovation Independent Examiner's Report to the trustees of Mintstry of Building Innovation ('the Company,) l to the ¢t￿rity trn5kfs on tny examilla￿ ofiJJ¢ ￿{￿)ullts 0fthccoo￿Y forth¢y¢Jr ¢nd¢d 31 D¢¢¢mb¢r 2022. RespollsibiJitiES and b¥is uf report As the Ch￿ity'S tsustres of the Company land ai%) its d$￿￿[S forthe purp)sesof o)¢nwy lawl you art T¢Sp)￿Tri 1¢ for the preparatioti of the occouttts in ￿￿rdante the requ1￿ments of Compl￿S AL% 20061.the 2(M)6 Act'}. Having satisf￿4 myself that the 8ceounts of Companv ate t￿t required w t¢ audited UDder Part 16 of the 2(K)6 Act and ore eligible for inde￿ndellt ex8Ellitiaiioty T rewt iti ￿S￿￿tI of Jtsy of your cknity's accounts 8s carried out ullder seclion 145 Dlthe Cbaritie5 Ad 2011 ('the 2011 Acl'l. In carrying out ttLy cxatDuJaliott I havt followed th£ DiK£tioiis given by the ChBrity Com[Di￿￿ll 14515Kbl of the 2011 Act IndepelldeRt st*tement I have complered my examinatioTh l (xbnfwm Do have come kn my aii¢ntN)n in wnnection the examin￿10 8iVitiB tlle cause to believe: ccounting ￿orth WBTE ￿>tkept JD TW of MiDiStry of BulldiThg a5 [Equi￿l by 386 of the 20(X6 ACL or 2. tke accou[￿ do not aLtord with tIM￿ rEu)td4" or 3. th¢ accounts do noi wmply with th¢ a¢¢0￿11￿ r¢quxrcm¢nts of 396 of 2006 Act IAh¢r th8J) any requiretJxeLt that the ae¢outsts gi¥e * 'tr￿ aod fair view. which is ]Jot a ]Datw ¢ons(deTed as tArt of art ind￿nde0t 4. the accounts have rtoi been prepyed in Metho￿ aNJ ]xinrripl¢sof the StatrTll¢nt of RwJmm¢nded Practice for acc4)￿11￿8 and Tewrting b). cLw¢ties [applicable w ehariiies preparing th¢ir ￿0Vn￿ in a¢¢ordance wth th¢ Fin￿¢1￿ Ryrtingstsndwdgpplithk uj tF¢ UK lad R**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
11
**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
11|**Unrestricted**
**funds**
**£**
170,147
5
170,152
(175)
(170,027)
(170,202)
(50)
(50)
(15,678)
(15,728)
**Unrestricted**
**funds**
**£**
149,332
6
149,338
(9,000)
(180,984)
(189,984)
(40,646)
(40,646)
24,968
(15,678)|**Total**
**2022**
**£**
170,147
5| |---|---|---| |||170,152| |||(175)
(170,027)| |||(170,202)| |||(50)| |||(50)
(15,678)| |||(15,728)| |||**Total**
**2021**
**£**
149,332
6| |||149,338| |||(9,000)
(180,984)| |||(189,984)| |||(40,646)| |||(40,646)
24,968| |||(15,678)| All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2021 is shown in note 11. The notes on pages 12 to 16 form an integral part of these financial statements. Page 10 ## **Ministry of Building Innovation** ## **(Registration number: 10527810) Balance Sheet as at 31 December 2022** |**Note**
**Current assets**
Debtors
8
Cash at bank and in hand
9
**Creditors: Amounts falling due within one year**
10
**Net liabilities**
**Funds of the charity:**
**Unrestricted income funds**
Unrestricted funds
**Total funds**
11|**2022**
**£**
37,302
503
37,805
(53,533)
(15,728)
(15,728)
(15,728)|**2021**
**£**
30,170
6,003| |---|---|---| |||36,173
(51,851)| |||(15,678)| |||(15,678)| |||(15,678)| For the financial year ending 31 December 2022 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. The financial statements on pages 10 to 16 were approved by the trustees, and authorised for issue on 28 September 2023 and signed on their behalf by: ......................................... John Mathers Chairman and trustee The notes on pages 12 to 16 form an integral part of these financial statements. Page 11 ## **Ministry of Building Innovation** ## **Notes to the Financial Statements for the Year Ended 31 December 2022** ## **1 Charity status** The charity is limited by guarantee, incorporated in England & Wales, 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 28 September 2023. ## **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)) (issued in October 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. ## **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. ## **Income and endowments** ## _**Investment income**_ Dividends are recognised once the dividend has been declared and notification has been received of the dividend due. ## **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. Page 12 ## **Ministry of Building Innovation** ## **Notes to the Financial Statements for the Year Ended 31 December 2022** ## _**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 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. ## **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 discretion in furtherance of the objectives of the charity. Page 13 ## **Ministry of Building Innovation** ## **Notes to the Financial Statements for the Year Ended 31 December 2022** ## **3 Income from other trading activities** |Other income from other trading activities
**Total for 2022**
**Total for 2021**
**4**
**Investment income**
Interest receivable and similar income;
Interest receivable on bank deposits
**Total for 2022**
**Total for 2021**
**5**
**Expenditure on charitable activities**
**Note**
Allocated support costs
6
Governance costs
6
**Total for 2022**
**Total for 2021**|**Unrestricted**
**funds**
**General**
**£**
170,147
170,147
149,332
**Unrestricted**
**funds**
**General**
**£**
5
5
6
**Unrestricted**
**funds**
**General**
**£**
169,247
780
170,027
180,984|**Total**
**funds**
**£**
170,147| |---|---|---| |||170,147| |||149,332| |||**Total**
**funds**
**£**
5| |||5| |||6| |||**Total**
**funds**
**£**
169,247
780| |||170,027| |||180,984| |||**Total**
**expenditure**
**£**| In addition to the expenditure analysed above, there are also governance costs of £780 (2021 - £780) which relate directly to charitable activities. See note 6 for further details. Page 14 ## **Ministry of Building Innovation** ## **Notes to the Financial Statements for the Year Ended 31 December 2022** ## **6 Analysis of governance and support costs** ## **Support costs allocated to charitable activities** |Salaries
Consultancy fees
Travel expenses
Insurance
IT
Sundry
Accountancy
**Total for 2022**
**Total for 2021**
**Governance costs**
Allocated support costs
Allocated support costs
**Total for 2022**
**Total for 2021**||**Information**
**technology**
**£**
-
-
-
-
184
-
-
184
947
**Unrestricted**
**funds**
**General**
**£**
780
780||**Administration**
**costs**
**£**
146,989
18,331
1,577
353
-
13
1,800
169,063
179,507
**Total**
**2022**
**£**
780
780
**Unrestricted**
**funds**
**General**
**£**
780
780
780|**Total**
**funds**
**£**
146,989
18,331
1,577
353
184
13
1,800
169,247
180,454
**Total**
**2021**
**£**
780| |---|---|---|---|---|---| ||||||780| ||||||**Total**
**funds**
**£**
780| ||||||780| ||||||780| ## **7 Taxation** The charity is a registered charity and is therefore exempt from taxation. ## **8 Debtors** |Trade debtors
Accrued income|**2022**
**£**
7,375
29,927
37,302|**2021**
**£**
30,170
-| |---|---|---| |||30,170| Page 15 ## **Ministry of Building Innovation** ## **Notes to the Financial Statements for the Year Ended 31 December 2022** ## **9 Cash and cash equivalents** |**9**
**Cash and cash equivalents**|||| |---|---|---|---| |Cash at bank
**10 Creditors: amounts falling due within one year**
Trade creditors
Other loans
Other taxation and social security
Other creditors
Accruals
**11 Funds**
**Balance at 1**
**January 2022**
**£**
**Unrestricted funds**
General
(15,678)
**Balance at 1**
**January 2021**
**£**
**Unrestricted funds**
General
24,968|**Incoming**
**resources**
**£**
170,152
**Incoming**
**resources**
**£**
149,338|**2022**
**£**
503
**2022**
**£**
3,538
20,000
13,535
15,680
780
53,533
**Resources**
**expended**
**£**
(170,202)
**Resources**
**expended**
**£**
(189,984)|**2021**
**£**
6,003| ||||**2021**
**£**
3,853
20,000
9,446
17,772
780| ||||51,851| ||||**Balance at 31**
**December 2022**
**£**
(15,728)| ||||**Balance at 31**
**December 2021**
**£**
(15,678)| ## **12 Analysis of net assets between funds** |Current assets
Current liabilities
Total net assets
Current assets
Current liabilities
Total net assets|**Unrestricted**
**General**
**£**
37,805
(53,533)
(15,728)
**Unrestricted**
**General**
**£**
36,173
(51,851)
(15,678)|**31 December**
**2022**
**Total funds**
**£**
37,805
(53,533)| |---|---|---| |||(15,728)| |||**31 December**
**2021**
**Total funds**
**£**
36,173
(51,851)| |||(15,678)| Page 16