RETIRED BAPTIST MINISTERS HOUSING ORGANISATION ANNUAL REPORT 2022 RETIRED BAPTIST MINISTERS HOUSING ORGANISATION YEAR ENDED 31 DECEM8ER 2022 Charity Number: 1177649 R￿IRED BAPTIST MINISTERS HOUSING ORGANISATION CharSty Number: 1177649 REFERENCE AND ADMINISTRATIVE DETAILS The Retired Baptist Ministers HoLtsin8 Or8anisation lalso known as R8MHOI. is a Charitable Incorporated Or8anisation, registered with the Charity Commission. TRUSTEES.. Mr F W Johnston Ichairmanl Mr R Barnett Mrj Fleet Ms H Harris Revd G Hindmarch Rev L G Johnson Revd P Jump Mrs A Kapotyo Mr l Levick Ms I Stewart Rev H Stokley Ms R Tole Mr T Walker Mr R I Wilson Revd P J Wortlev (resigned 31 March 20221 (resigned 3 Feb 20231 Ireslgned 6 July 20221 PRINCIPAL OFFICE.. 8aptist House, 129 Broadway, Oidcot, OXII 8RT REGISTERED NUMBER.. 1177649 PROPERTYTAUSTEE R8MHO Trust Corporatlon Limited, company number 11400081, re8tstered charlty number 1184848, a Company Llmited by Guarantee. AUDITORS.. Moore Kingston Smith LLP, Chartered Accountants, 9 Appold Street, London, EC2A 2AP. SOLICITORS: Shakespeare Martlneau LLP, I Colmore Square, Birmin8ham, B4 6AA Royds Withy King LLP, 5-6 Northumberland 8ulldln85, Queen Square, Bath BAI 2JE BANKERS.. HSBC Plc., 186 Broadway, Didcot, Oxfordshlre, OXII 8RP SURVEYORS.. Berry's Chartered Surveyors, Oak House, 32 Ashby Road, Tove Valley Business Park, Towce5teT, NN12 6PG MANAGER.. Mr Stewart Green Ireslgned 31" December 20221 Revd Andy Hu8he5 (with effect from l November 20221 RETIRED BAPTIST MINISTERS HOUSING ORGANISATION Charlty Number: 1177649 INTRODucfioN AND CONTENTS The Trustees of the Retired Baptist Ministers Housing Or8anisation I'the CharitVI present thelr Annual Report together wlth the audited financial statements for the year ended 31 December 2022 which comply with the Charities Act 2022 and Accounting and ReportinB by Charltles.. Statement of Recommended Practice ISORPI applitable to charities preparing their accounts in accordance w￿h the Flnanclal Reporting Standard applicable In the UK and Republic of Ireland IFRS1021. The Annual Report and Flnanclal Statement5 are structured as follows.. Pa8è Referènce Introduction and Contents Report of the Trustees.. Objectlves and Actlvltles Achievements and Performance Flnanclal Review Plans for Future Periods Structure, Governance and Management Statement of Trustees, Responsibllities Report of the Independent Auditors Statement of Flnanclal Actlvitles Balance Sheet Statement of Cashflows Noies to the Flnanclal Statements io li 12-18 RETIRED BAPTIST MINISTERS HOUSING ORGAN15ATION Charity Number: 1177649 REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022 I. OBJECTIVES AND A￿l￿TIEs The objects of the Retired Baptist Minister5 Housing Organisation IRBMHO, the Charity) are. for the public benefit.. The prevention or relief of poverty of retired Baptist ministers, retired Baptist missionaries and their spouses, who are in necessitous circumstances. as the charity trustee5 shall from time to time determine,. To advance the Christian faith for the public benefit in accordance with the statement of belief of the Baptist denomination: Since 1975, the Charity and its predecessor entity the Retired Baptist Ministers Housin8 Society IR8MHSI has sought to provide good-quality. safe, secure and well-maintained homes to those who reached retirement and who had no mean5 of providin8 a home for themselves and their family. The Charity aims to support all applicants for housing who Meet its normal qualifying criteria Retired Bapt15t ministers who have senrfed as a 8aptist minister accredited by the Baptist Union of Great Britain IBUGBI for at least 15 years Retired Baptist ministers who have served as minister of a church in membership of the Baptist Union of Great Britain for at least 18 years Retired Baptist Missionaries who have served BMS World Mission primarity outside the UK for at least 15 years The suThlving spouses of qualifying retired ministers or those who died in active ministry The Charity also considers applications for support that fall outside of its normal criteria but are deseNln8 of support in the view of the Trustees. The Charity work5 in partnership with the Heart of En8land 8apti5t Association and BMS World Mission all of whom have provided properties which the Charity Is pleased to manage on their behalf. No changes to the activities of Charity are planned in the comin8 year. 2. ACHIEVEMENTSAND PERFORMANCE The Charlty is pleased to record that it was able to provide homes for 8 of the ministers who made applications to RBMHO. The remaining applicants have delayed their retirements to 2023 or later. In addltion, 5 tenants were relocated to properties more suited to their needs. Durin8 the year the Charity acquired 15 properties and disposed of 12. The Charivs stock of properties increased from 261 to 263. At the end of the perlod, the Charity wa5 providing homes for 42312021.. 4251 retired minister5 and family member5. It seeks to maintain its properties to a high standard and offers pastoral support to it5 tenants as far as it is able. In doinB all this, the Charity recognises that it is due, in no small measure, to those individuals, ministers, organisations and Churches who have supported and continue to SUPPOrt its continuing work either by prayer5, publicity, visits or donations. Durln8 the year, the Charity completed a pro8ramme of tondition surveys of the Charity's properties with Berrys Chartered Surveyors to ensure that they are in good repair and provide good44uality accommodation for beneficiaries. The surveys were undertaken on the properties the Organisation has owned for more than 5 years. 3. FINANCIAL REVIEW The results of the Charity for the year are Set out in the accompanying finantial Statements. RETIRED BAPTIST MINISTERS HOUSING ORGAN￿4￿oN Chartty Number: 1177649 REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022 Durlng the repK)rting perK)d, the minimurn monthly rent (Juty 22-Jun 231 was increased to £192.50 12021: £187.50), and the maximum purchase value per property increased to £22S.c￿l202l.. £215,(n)i. As shown on the Statement of Financial Activities the surplus for ihe year of £1,695,84412021-. £2,693.2611 has been transferred to reserves, giving total fund5 carr￿d forward of £38.884.80312021.. £37,188.9591. Excludlng the Family Solution lsee bebwl, Income in the year decreased to £1.180.46412021.. £1,519,281), a decrease of 22.3%. This was primari￿ due to a signiricant decrease in Le83ry income to £96,608 12021: £784,351). Rent income increased to £667.93512021: £658,042) an increase of 1.5%. Donations included an eX￿ptIOnal donation of a property from Maybee Tnjst. Direct unrestricted costs increased to £715.69312021- £624,289) an increase of 15%. drNen by an In¢￿aSe in electrical inspections and property repair ¢o#s. Support costs increased to £15,58012021: £12.0301 following a decrease in audit fees but an increase in legal and professional fees. The operating surplus for the year was £449,18312021'. £882.9631. on top of which the Charty made gains on disposal of fixed assets of £1.249.97812021= £1.807,5(YJI. The properties have been included in the financial statements at cost. The Trustees consider thatthe aggregate value of the properties is not below carrying value. Famlfy SolutSon Since 2018. the Charity has supported the Baptist denomination by participating in the Famlly Solution to the Baptist Pension Scheme. This involved it taking a loan from 8apti5t Union Corporation IBUCI of £20m secured against a portbon of its property assets and then making an unsecured loan to the Baptist Union of Great Britain IBUGBI of £20m. Both loans are on an interest-onty payment basis and have the same interest rate. meaning that the interest income and eypense offset each othef. The loan from BUC is classrfied as non-cufrent liability a5 the terms of the loan agreement mean payment tan onty be requested with 13-months' notice. The loan to BUGB is classified as a mixed-motive investment under FR5102 as the Trustees have made the loan as part of its commitment to the Baptist denomination Famity Solution to the Baptist Pension Scheme at a rate more favourable than BUG8 could have obtained commercialW. To avoid distortin8 the operating accounts of the charity. the Trustees have created a Family Solution designated fund to hold both the a$5ets and liabilitie5 InvO￿ed. This fund showed both income and expenditure of £893,151 in 202212021-. £621.3971. the increase reflecting the change of interest rate5 by the Baptist Union Corwration Ltd following 8ank of England base rates changing. Fundralslng The Charity receives donètK)ns from organi5ations (mainly Baptist churchesl and donations and legacies from individuals. The charity seek5 SUPPOrt from dor￿TS via tts website and advertising in Baptist publications. The Charity does not work with any commercial entities forfundraising purposes and does not undertake any direct marketing activities for fundraising purposes. No complaints were ￿e1ved relating to fundraising in the year. REnRED BAPTisf MINISTERS HOUSING ORGANISATION Charlty Number: 1177649 REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022 Prln¢lpal Rlsks and uncertalntles The Trustees of the Charity have identlfled the followin8 as the principal r￿kS and uncertainties facln8 the charity.. A $18nlfiont and sustalned decre￿ In le8acy Income. The Charity and its predecessor, RBMHS, have bullt p the asset base of the Charity largety on the basis of the generou5 gifts left through le8acbes averaBing more than £5¢J).WO per annum in the last decade. Legacies are by their nature erratic but a sustained reduction in legacy income would present a risk tothe ability of the Chartty ful￿t0 meet the need5 of future appllconis in the lonB-term. The trustees alw believe the Charity could obtain additional borrowing facilrties In the short-term to acquire additional properties. The trustees monitor legacy income carefvlly and would consider taking steps to bring in increased income from other sources rf necessary to sustaln the ability of the Charity to meet demand. The flnandal fallure ￿ the Baptlst Unlon ot Great Brftaln IBUGBI. As the CharW5 malor debtor. the Charity is dependeni upon BUGB to continue to Pay interest on the outstanding loan. The Trustees belbeve that the failufe ol BUG8 would noi p￿ent any risk to curreni tenant5, but the charlty mlght not be able to meet the need5 of future applicants. The Trustee5 believe the financlal failure of BUGB to be a remote possibility but wlll monltor 115 financial posrtbon and take any aCt￿n necessary to protett the interests of the CharTty and Its beneficlarbes. Reserves Pollcy The Charlty seeks io malntaln access to sufflclent avallable cash reseThes on hand to enable It to 5UStain bts day" to-day running costs and respond to the needs of future tenants. The Income from Charita￿e actfvltles relaies to rent from beneficiarles which is h*hly reliable and generaies Surplus over the expendilure on charitable actlvltles. whlch Ls abo hlghly predlctabk In nature. The Trustees are therefo￿ satisfied that On￿ a modest level of reserves of 2 months oper*ln8 costs is requlred for day-tQ- day Tunning costs. This equates to approxlmatety £I￿k. The more slgnlflcant area of reserves required is io ensure that properties can be supplied to quallfyin8 appllcants to meet thelr needs in a timety manner. The Charity doe5 not 8uarantee to all applicant5 that it will be able io help, but durin8 Its hlstory has never failed to do $0 for ihose who meet r¢s eliBlbllity crlterlg. The Trustees believe it prudent to hold reserves for ihis wrpose amountlng to four tlme5 the maxlmum purchase Price offered to qualifyln8 applicants. This equates to approximately £900k. Thi5 8ive5 a free reserves requirement of £lm. As at 31 December 2022, the Chartty had free reseThes of £1,728k, a surplus above the minimum requirement of £728k. Should the Tnjstees see this excess build up substantlally, Ihe Trustees anticipate using the surplus to pay down the debts of the ChJrFty. 4. PLANS FOR FUTURE PERIODS The maximum purchase price hès been increased to £240,Cthl from l January 2023 and the minimum rent will be reviewed by l July 2023. The Trustees receive applications for houslng UP to 5 years in advance and currently have 32 applications for the perh)d 2023-2028. The Trustees are confident of resources being able to meet all quallfying applications in this period. Additional work will need to be undertaken on a number of the Organisation's propertles as a result of the condition surveys. Changes in legislation wlll requlre the energy efficiency levels of a large proportion of the properties io be raised to ach￿Ve an EPC of D or even C. In the medium tem) the Trustees need to consldef how our propert*s will be heated as gas boilers may be phased out. RETIRED BAPTIST MINISTERS HOUSING ORGANISATION Charlty Number: 1177649 REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022 5. STRUCTURE GOVERNANCE AND MANAGEMENT The Charity is governed by a constitution based on the Charrty Commission's Foundation Model CIO constitution, which was registered on 22. March 2018. The Charity 15 managed by a board of up to 15 Trustees. Up to 8 Trustees are appolnted by BUGB wlth up to a further 7 co-opted by the Trustees of the Charitv. The Trustees dele83te the runnln8 of the Charity on a day-to-day basls to the Manager, Mr Stewart Green, (Retired on 310ecmber 20221 and Secretary antl Tenant Relations Manager, the Revd Andy Hughes lappolnteil l November 20221 who had authority to approve standard applications for housin8 and to approve routine Item5 of expendlture and property repalrs. Non-standard applications for housin8 a￿ referred to the Trustees for consideratH)n. Indurtlon and Tralnln8 01 Trustees When new trustees are appointed they are given a briefin8 by the Manager I Secretary and Tenant Relatlons Manager and the Chair of Trustees on the workings of the Charlty. They are provided with the annual report and papers and mlnutes of recent meetlng5. Formal trainlng is provlded to trustees as appropriate. 6. sfATEMENT OF TRUSTEES, RESPONS181LrriES The Trustees are responslble for preparlng the TTU5tees' Report and the flnanclal statements In accordance wlth appllcable law and Unlted Klngdom Accounllng Stan(iards Iunlted Klngdom Generalty Accepteil Accountln8 Praclicel. The law applicable to charllles In England an(J Wales requlres the Trustees to prepare flnanclal statements for each financial year which give a true and fair vlew of the state of affalrs of the charity and of the Incomlng resources and appllcation of resources of the charity for that period. In preparing these financial statements, the Trustees are requlreil to.. Seled sultable accountlng policies and then apply them consistently; Observe the methods and prlnclples in the Charities SORP 2015 IFRS 1021: Make jud8ements and estimates that are reasonable and prudent,. State whether applitable accounting standards have been followed, Subject to any materlal departures dlsclosed and explained in the financial statements; Prepare the financlal statements on the goln8 concern b35is unles5 It is Inappropriate to presume that the charity will continue in operation. The Trustees are responslble for keeplng accountlng record5 that dlsclose wlth ￿aSOnable accuracy at any tlme the flnancial position of the charity and enable them to ensure that the flnancial statements comply wlth the Charlties Act 2022. They are also responsible for safeguardln8 the assets of the charity and hence for taking reasonable steps for the prevention and detectlon of fraud and other irregularltles. In so far as the Trustees are aware.. There Is no relevant audit information of whlch the Charlvs auditor is unaware,. The Trustees have taken all step5 that they ought to have taken to make themselves aware of anv relevant audit information and to establish that the auditor is aware of that informatlon. The re rt of the Trustee5 was approved on 29 Mar¢h 2023 and 51gned on its behalf by: Qlh-4S-L INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF RETIRED BAPTIST MINISTERS HOUSING ORGANISATION Oplnlon We have audited the flnancial statements of Retired Baptist Minlsters Housing Or8anisation for the year ended 31 December 2022 which comprise the Statement of Flnancial Activitles, the Balance Sheet, the Staiement of Cash Flows and notes to the financial statements, includin8 significant accounting pollcies. The financlal reporting framework that has been applled in thei¥ preparation is appllcable law and United Kingdom Accounting Standards, including FRS 102 Yhe Financial Reporting Standard Applicable in the UK and Republlc of Ireland, (United Kin8dorn Generally Accepted Accountlng Practice). In our opinion the financial statements.. glve a true and fair vlew of the state of the charltvs affairs as at 31 December 2022, and of Incomln8 resources and application of resource5, for the year then ended; have been properly prepared in accordance with United Kin8dom Generalty Accepted Accountlng Practice,. and have been prepared In accordance with the requirements of the Charltles Act 2011. Basls l*x oplnlon We conducted our audlt in accordance wlth Internallonal Standards on Audltlng IUKI IISAS IUKII and appllcable law. Our responsibllltles under those standards are further described in the Auditorfs Responsibilltles for the audit of the flnanclal statements sectlon of our report. We are Independent of the charity in accordance wlth the ethlcal requirements thai are relevant to our audlt of the financlal statements In the UK, including the FRC'S Ethlcal Standard, and we have fulfilled our other ethical responslbllltles In accordance with these requlrements. We believe that the audlt evldence we have obtalned Is sufflclent and appropriate to provlde a basls for our opinlon. Concluslons relatln8 to 8oln8 concern In auditlng the flnanclal statements, we have concluded that the trustees, use of the Boln8 concern ba51s of ccountin8 in the prepaiation of the financlal statements Is appropriate. 8a5ed on the work we have performed. we have not Identlfled any materlal uncertalntles relatlng to events or condltions that, indlvidually or collectlvely, may cast slgnificant doubt on the charlty's ablllty to Continue as a 8oln8 concern for a perlod of at least fvlelve months from when the flnanclal Statements are authorbsed for Issue, Our responslbilhie5 and the responslbllltles of the trustees wlth respect to goln8 Concern are descrlbed In the felevant sectlons of thls report. Other Informatlon The other Information comprlses the Informatlon Included In the annual report, other than the financlal statements and our auditorfs report thereon. The trustees are responsible for the other informatSon Contained withln the annual report. Our oplnlon on the flnanclal statements does not cover the other information and. except to the extent oihernise expllcitty stated in our report, we do not express any form of assurance concluslon thereon. Our responslbillty is to read the other informatlon and. in doing so, conslder whether the other informatlon Is materially inconsistent with the financlal siatements or our knowledge obtained In the course of the audlt or othefwise appears to be materially misstated. If we identify such material inconsistencies or apparent material mlsstatements, 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 materlal rnisstatement of this other informatlon, we are required to report that fact. INDEPENDEKf AUDITOR'S REPORT TO THE TRUSTEES OF REfiRED BAPTIST MINISTERS HOUSING ORGANISATION We have nothing to rew)rt in this regard. Matters on whlch we *e requlred to rel￿ by except We have nothin8 to rew)rt in respect of the followin8 matters where the Charities Art 2011 ￿qUireS us to report to you rf, in our opinion= the infomiation gv4en in the Trustees, Annual Report is inconsistent in any material respect wrth the financial staiement5; or the charity has not kept adequate accounting ￿COrdS. or the financial statements are not in agreement with the attounting records and returns,. or we have not recerved all the InfOrrnat￿n and explanations we required for our audit. Responslbllltles of trustee5 As explained more fulty in the trustees. responsibilitie5 Statement set out on pa8e 5, the trustees are responsible forthe preparation of the financial statements and for being sat￿r￿d that they give a true and fair view. and for such internal control a5 the trustees detemiine is nece55ary to enable the p￿paratIOn of financial statements that are free from material misstatement, whether due to fraud or error. In preparlng the financial statements. the trustee5 are responsible for assessing the chariWs ability to continue as a goin8 concern, disclosin& as appI￿able, rnatters related to going concern and usin8 the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operation5, or have no reallstlc atternative but to do so. Audltorfs Responslbllltles for the audlt of the financial statements We have been appointed as audr Net current Il•bllltles 1499,484) 1455,7851 Creditors.. Amount5 falllng after one year 15 120,IXKI.O(W)I 120,OCO,0001 Net Ass•ts 38M4.803 37,188,959 THE FUNDS OF THE CHARITY General Reserve Deslgnated Funds 38,884,803 37,188,959 Total Charlty Funds 37,188,959 The finandal statemenis were approved by the Trustees on 29 March 2023 and were signed on Its behaff ty= MT èill Joh The notes on pages 13 to 19 form an integral part of these financral statements. li REnRED 8APTisf MINISTERS HOUSING ORGAN1&4TION Charlty Number: 1177649 STATEMENTS OF CASH FLOWS FOR PERIOD ENDED 31 DECEMBER 2019 2022 2021 Net income for the rep(xling perlod 1,695,844 1693.261 Adjustments for: Net Ig3inllloss on investments Net income bef￿e loss on in¥eSth￿Tht io 3.318 1.699,162 12,7891 2.￿30.472 Adjustments for: Depreciation Dividends and interest from investments Net gain on sale of fixed assets Ilncrea5ellDecrease in debtors IncreasellDecreasel in creditors 6.807 11.((15.9911 11.249.9781 1364,9061 110,345 6,384 1671,4111 {1,807,5091 206.795 14.998 Nel cash provlded by owatln8 acll¥ltles IW4S61) 439,729 Cash flovts fr(%￿ Investin8 •rti¥i DNidends and interest from investments Proceeds from sale of fixed assets Purchase of tsngible fixed a55ets I.￿5.991 2.596.284 13.(P35,9741 671,411 3,216,955 11,735,474) Net cash generated In Imiesdn8 artlvllles 506.301 2,152Tr2 Changes In cash and equl¥alents In the year 1298260) 2.592.621 Cash and cash equNalent5 brou8ht for¥vard Cash and cash equivalents carried forward 3,618,431 3.320.171 1.025.810 3,618,431 13 12 RETIRED BAPTIST MINisfERS HOUSING ORGANISATION Charlty Number: 1177649 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2022 I. ACCOUNTING POUCIES lel Expendltuie Expendlture Is recognised in the StatÈmÈnt of linanciil tivities once there is a leRal er constructive obli8ation to makÈ a payrnent to a third party, it is probable that settlement will be required. and the amount of the obligatlen cèn be measured relK4bly. The principal accountin¥ policie5 adopted. I￿gements and key sources of estimation uncertainty in the preparation of the financial ststements are a5folbw5'. (al B•51s of kcoyntl The financial statements have been prepared In ccordante wlth the ststement Recommended Prartice (Charitie5 SORP IFRS 10211. FSnènclal Reportln8 StandaTd 102 and the Charitie5 Act 2022 The Retired Baptist Ministers Housing Organisation is a re8lStered charity, no. 1177649, and meets the deff nltion of a wbllc benefit entity under FRS102. A5set5 ard liabilities are InStially reco8nised at historical c05t or transattion value unle55 othe￿Se ststed Inthe relevant ccountin8 poliry notes. IrrecoveraNe VATischarged as a tost a8ain5tthe artivity for whlch the expendkure wès inturred. lfj Tanzlble fixed assets Tan8ible fixed assets are initSally measured at C05L or in respect of a55ets donated. atvaluation at the date of the donauon. They are subsequently measured at cost or vèluètion net of depreciation and any Impairment losse5. Depreciation is rècognised 50 as to wrlte off the cost or valuation ef assets le55 th2ir residual values over their V5elul economlc Ilves. Ibl Prep•r•tlonof thtllnandal statsmentsona golr¢ concern b•sls Theflnancial statements areprepared ona 8oin8concern ba515 which assumes that the Charity will continue in oper*ional existence for the foreseeèble future. The DirÈ£tors are aware of the c05t cf Ilvlng crisis facln8 the UK powlation at thi5 time, but based on robust I￿ome and the reserves held by the chbrity. the trustees have concluded that thÈrÈ is no material unttrtainty as to the CharlV5 abillty to meet its liabilitie5 a5 they tsll due. Accordingly the trustees continue to adopt the going concern basis in the preparation of the financial statements. Depreciation 15 provided on long leasehold propprties over the rem3ininR life of the lease. Freehold properties are generally held bytheChartyfr>r an avera8e of 30 years. During the peried of ownership, they are mèintained bythe Charity such that the overall dwference between residual values and carTrln8 value are not materhl and as a result nD depreciation Is provided on freehold property. Flxed asset In¥e5tmems Quoted inve5tment5 are held forthelrlncome8eneradon and Investment FK>tential and are valued at marketvèlue at the reporting date. Any surplus or defSclt arSslng is Included in the Statement of Financial Activities. Investments In subsidièriÈs are rnea5ured at cost less irnpalrment. Icl Fundskt¢)umtl Unrestrftted Funds.. General unrestricted funds represent funds which are eXpellda￿e ar the discretien of the Trustee5 in the fijrtherance of the abjert5 of the charlty ènd whith have not been de5i8riated forother purposes. Suchfund5may beheld to finance both workingand capital investment. De￿￿nated Fvnds.. These represent arnounts set agde the Trustees lor specific purposes. They may be returr*d to General Funds at the discretion of the Trustees. RÈstricted Funds.. These represent amounts whKh VÈ been re5trkted by the donors for use for Spec￿ purw)se$45 5etout in note 16. Mixed motive investments Snclude conce55K)nary loan5. Loans are considered concessionary loan5 a5 they are made by the charity at below prevallSn8 market intÈrest rates and to further its purpD5e> Loans are initiallv rnea5ured èt the amount paid, with the carrying amount adjusted Subsequently to reflect repayments and anv interest receivable. Where any loan made 15 conydered to be irretoverable an irnpalrff￿nt loss Is fecognised. Idl Income Income is reco8niswI in the Statement of Financial ArtS¥Sties whÈn the charity has entitlement to thÈ fund5. any performance condition5 attached to the itemlsl of I￿Ome have been rnet, it 15 probable thèt Incomewill be received, and the amount can be measured reliaN¥. DDnation5 are accounteo for8rosswhen received. Legacies are accounted for at the earlier of the Estate accounts beinB finalised and notified, and cash recelwed. Rentsl Income isaccounted for on an accruèls basis. Investment irtome 15 accounted for on an accruals basls. Debt Prepayment5 and other debtors are recoanlsed at thè settlement amount due. Debtors are measured * their recoverable amount. Cash * bank ind ITr hand Cash at bank ènd in hand include5 notlce deposlts and ghort-term dew>sits. 13 REfiRED BAPTIST MINISTERS HOUSING ORGANISATION Charlty Number: 1177649 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2022 ui Crtdltor5 Creditors ère reco8nis*d wherethe charity has a present obligatSon resultin8 from è past event that wlll prOba￿Y result in the transfer of funds to a third party and the amount due to settle the ebliEatlon can be measured or estimated reliably Accruals and other creditors are recegnised at their settlement amount due. The contributions are retwised a5 an expense when they are due. Amounts not pèid are Shown in accrua15in the balance sheet.The assetsofthe plan are held separately from the em ￿0Ver in an independently administered fuTrd. Taxatlon The Charity is notassessable to taxatlon. Loans are considered conces5ionary loans received a5 they arè made to the charity to fvrther it5 purposes and anyintere5t charged i5belowthepre¥allinRmJrket rates. Juthemert and Key Sourtes ol Estlmitlon5 Uncertalnty Estimates and judgements are continually evaluated and are based on historical experience and other factors. Sncluding expectations of future events that are bdieved to be reasonable underthe circumstsntes. Interest free loans represent contributi¢nS received tow3rds the c05t of properties which are to be repaid when the tenanry Is termlnated. T￿se are shown 35 current liabilitie5 a5 date5 01 repayment cannot be determined. lal Judgements In ap￿VIng the entlvs accountlng policies The trustees estimatethe resldual Value of freehold property at the end of Its experted useful life in orderto determine the dÈpreciatlon thargÈ. BasÈd on these estimate5 no depreckition 15 charged on freehold property as any char8e would be immaterial. FIMnd•l Instrumehts The Charity onty has financièl assets and Ilèbilkies of a kind that qualify as basic financial Instruments. 8aslc financial instruments are Inltlally recognlsed at transaction value and subsequentty measured at their settlement Value. Employee benefft5 Short term benefits.. The Charity reco8nisÈ5 an accrual for accumulated annual leave accrued bv eM￿0Vee5 as a result of services rendered in the current period which employee5 can carry forword and use withln the next year. The accrual 15 measured at the salary cost of the respettive employee in relation to the peTiod ol Ibl Acc(xJnting estimate5 and 355vmptions Useful economic lives of tsnglNe 355ets.' The annual depreclatlon charge of tanglble assetsls sensltSve to changes in the estSmated useful economSc Ilves and residual values of the assets. The useful economic live5 and Te5idual values are rtra5sessed annu3llv They are amended when necessary to refie£t current estlmates, based on technolo￿¢¥1 ad¥ancÈmÈnL future investments, Èconomic uti115atlon and the physical condition of the 355ets. See note 9 for the carryin8 amount of the fixed assetsand note Iln forthe useful economic lives for each class 013$5ets. Defined benefit pension plan.. The Charity is not a dlrert member of a deflned beneflt penslon plan. as Its Stafl are employees of the Baptist Union of Great Britain IBUGBI and rt reimburses BUGB for their costs of employment, includin8 their pension cost5. BUGB 15 a participati *))ployer in the 8aptist Union Staff Pension Scheme IBUSPSI whSch is a multi*mpkyer defined benefit scheme. BUGB pays deficlt contribution5 in respect of the Recovery P￿n of the deficit in the BU5PS and the Charity makes 3 contribution to¥vards these cost5 in respect of the 5harerelatingtothe 5tsff ¥vhoworked fof the Charity. A5 this arran8ement 15 informal, no liabilityhasbeen recordpd within the accountsof the Charlty but the ptyrnents ère reco8nised as expenses when paid. Defined contributlon penslon plans.. The Charlty is Mt a direct member ef a defined contrlbution pension plan. as Its stsff are employees of the 8apt15t Union of Great Britain IBUGBI and it reimbur5e5 8UGB for theirc05ts of e[￿￿0V￿e￿t I￿lUdIng their pension costs. BUG8 is panicipating employer In the Baptist Pension SthemÈ which is a multi-employer definwl contribution scheme. A defined contribution p￿n is a pension plan under which the employer pays fixed contrlbutlons Into a separate entity. on￿ the contribution5 have been paid the employer has no further payment obli8ations. 14 RETIRED BAPTIST MINISTERS HOUSING ORGANISAnoN awrlty Number: 1177649 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2022 2. DONATIONS AND LEGACIES Unrestrktthl Des18nated Funds Funds 2022 2021 Donations Legacies Total 301.271 96,608 397.879 301.271 96.608 397,879 24.267 784.351 808,618 In 2021. all income from donatiorts and It8atiÈ5 was attrikwjtzbleto unre5trirted fvnd5. 3. CHARITA8LE A￿1VITIEs Unrestrlrted Desl8nated Fund5 Funds 2022 2021 Rent Received Propeny Management Totsl 667,935 1.802 669,737 667,935 1,802 669.737 658,042 2,607 660,649 In 2021, all Income from charitable actfvitles was attrfbutabk to unrestrl¢t¢d funds. 4. INVESfMENT INCOME 2022 2021 Funds Funds UK Llsted equlties Interest recelved Total 1,296 111.544 112040 1,296 I,(IM,695 I,(￿,991 1.677 669.734 671.411 893.151 893,151 In 2021, £621,397 of Interesi receSved was In designated lunds and £48.337 of Interest received was In unrestricted lunds. Income from UK Llsted Equrtles was all attributable io unrestricted funds. 5. CHARITABLE A￿1VITIEs 2022 2021 (Note 61 IP4ote 7) Charitable expendrture l.fA)8.844 1,608,844 15.580 15,580 1,624,424 1.624,424 1,257.715 1,257,715 15 RETIRED BAPTIST MINISTERS HOUSING ORGANISATION Charfty Numbw: 1177649 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2022 6. DIRE￿CoSTs Note Ufirestrlrted Deslgnated Funds Fund5 2022 2021 Repalrs Rate5 Insurance Ground rents Salaries Legal & professklnal fees Loan Interest Loan fees Office expenses Depreciation Other eypenditure Total 431.790 15,762 50,611 2,767 66,469 5,415 88,281 431.PJO 15,762 50.611 2,767 66,469 5,415 981,432 398.338 6,482 45,071 471 63,289 1,395 683,016 893,151 39.246 6.807 2,545 715,693 39.246 6,807 2.545 1,608.844 33,499 6,384 1,741 1,245,686 893.151 In 2021. £621.397 01 loan interest wa5 attflbutable to deS￿nated lund5 and all other expenditure was in unrestricted funds. 7. SUPPORT cosrs Unrestrlcted Ile$l￿ated Funds Funds 2022 2021 Audlt Legal & prOfeSs￿nal fees Total 6,882 8,698 15.580 6,882 8,698 15.580 9,121 2,909 12.030 In 2021 all sUPPOrt costs were attrlbutaWe io unfestrKted funds. EMPLOYEES AND TRusfEES 2022 2021 Staff ¢orts: Salafies Social securhy costs Pension ¢ost5 Yotal 56,616 5,640 4.213 66.469 53,090 4.890 5.309 63,289 The average number of employees during the period was: Employees are employed by the Baptist Unlon of Great Brttaln and thelr assoclated costs are then recharged to the Charity- No empknyee received emoluments in excess of £60,OtKJ during the period 12021.. £nill. No tnjstee receTried emoluments from the Charity during the period 12021.. £nlll. Expenses toialling £8212021.. £241 were reimbursed to trustees from the Charity durin8 the period. 16 RETIRED BAPTIST MINISTERS HOUSING ORGANISATION Charity Number: 1177649 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2022 9. TANGIBLE FIXED Number of Propertles Freehold Leasehold Total B¢ok Value Leasehold Freehold Totsl C05t Brou8ht forward Additions Disposals Carried Forward 251 13 1121 252 io 261 36.342.694 15 2,760,423 1131 {1,300,678} 263 37,802.439 1.325.705 37,668.399 335,550 3.095.973 146,7221 I1,347,4￿) 1.614,533 39.416.972 li Depreclatlon Brouiht forward CharRe for the period Disposals Carried Forward 56,173 6.807 11,(YJ51 61N5 56,173 6.807 11,0951 61,885 Net Book Value Brought Forward Carried Forwafd 36.342.694 37,802,439 1,269,532 1,552,648 37,612,226 39,355,087 The insured value of the al)ove properties is In excess of the t￿k valuè. 10. QUOTED INVESTMENTS 2022 2021 Listed Investments BrouRht Forward Realised and Unrealised GainllLoss) Carried Forward 32.518 13.3181 29.21X) 29.729 2.789 32,518 11. MIXED MOTIVE INVESTMENTS 2022 2021 Family Solution Fund= Loan to Baptist Union of Great Britain Total 20,LM)J,C(O 20,(#)O,I)00 20.(IJ).( 20,(K)O,000 12. DEBTORS 2022 2021 Accrued Income Rents Due Amounts due from other Bapt￿t OrRanisatfions Prepayments Total Debtors 77.617 56.568 2.683 6,658 145.843 3,594 65337 17 RETIRED BAPTIST MINisfERS HOUSING ORGAN1&4TION Charlty Number: 1177649 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2022 13. CASH AT 8ANKAND IN HAND 2022 2021 Short Temi Dèposlts DeDosit- Baptist Union Corporation Cash at Bank and in hand Total Cash in Short Term Oeposlts 2,666.663 653.508 3.320.171 3.340.751 277,680 3.618,431 Cash has been invested wth the Baptlst Unv)n Cwporation In a deK*xit Kcount. It bears imerest at their standard VarIa￿e rate. 14. CREDffORS DUE WtTHIN ONE YEAR 2022 2021 Accrua15 Interest free loans Amounts due to 8aptist Union of Great Britaln BUC WorkinR Capital Loan Other credrtors Totsl Credltors Due WhNn Year 16.344 2.146.593 2,227.313 20.107 1.991.778 2,3 4,250.498 1,976,969 247 4,140,153 Imerest free loan5 represent contributions rec•ved t¢)ward5 thecost of propertles which ar*to be repald when the tenanty is terminated. These are s￿)Wn •$ current liabilities a5 date5 of repèymeni cannot be determlned. Thè BUC loan is a workin8 capltal loan facil¢ty. Interést is payable at their standard varièblt rate. There are no set rèpayments. the Charlty can make lump s￿1 repayments tkni cash flow permits. 15. CREDrroAS DUE AFfÉR MORE THAN ONE YEAR 2021 2020 BUC Famlfy Solutlon Loan 20,OLK),OCK1 20,000,(MXJ Total Pro¥islons for Llabllltles 20,CM)0,000 20.th)O.OLKI The 8UC Farni￿ Solution Loan wa5 pr¢)vided to RBMHO as part of the Baptisi FamSly Solution to ihe deficSt In the Baptist Pension Scheme. Interest is payableai rhe BUC standard variable rate. There are no set repayments, but the Charity can make lump sum repayment5 when cash flow pefmits. The loan 15 only repayable with at least 13 months, notice, so isdassified a5 a [￿n