RETIRED BAPTIST MINISTERS HOUSING ORGANISATION ANNUAL REPORT 2024 RETIRED BAPTIST MINISTERS HOUSING ORGANISATION YEAR ENDED 31 DECEMBER 2024 Charity Number: 1177649 RETIRED BAPTIST MINISTERS HOUSING ORGANISAnoN Charity Numbei: 1177649 REFERENCE AND ADMINISTRATIVE DETAILS The Retired Baptist Ministers Housing Organisation (also known as RBMHOI. is a Charitable Incorporated Organisation, registered with the Charity Commission. TRUSTEES: Ms H Harris Revd G Hindmarch Rev L G Johnson Mr CJ Jones Revd P Jump Mrs A Kapolyo Mr J Levick Revd A Miles Revd A A Peck Ms J Stewart Ms R Tole (Co-chair) Mr T Walker ICo-Chair} (resigned 7 Feb 20241 (appointed 26 Nov 20241 PRINCIPAL OFFICE: Baptist House. 129 Broadway. Didcot. OXII 8RT REGISTERED NUMBER: 1177649 PROPERTYTRUSTEE RBMHO Trust Corporation Limited, company number 11400081. registered charity number 1184848. a Company Limited by Guarantee. AUDITORS- Moore Kingston Smith LLP, Chartered Accountants, 9 Appold Street. London. EC2A 2AP. SOLICITORS: Shakespeare Martineau LLP. i Colmore Square, Birmingham, B4 6AA Royds Withy King LLP. 5-6 Northumberland Buildings, Queen Square, Bath BAI 2JE Diakoneo Legal Services Limited. Solicitors. 48 Speirs Wharf. Glasgow G4 9TH BANKERS.. HSBC Plc.. 6 High Street, Abingdon. OX14 5AZ MANAGER.. Revd Andy Hughes RETIRED BAPTIST MINISTERS HOUSING ORGANISATION Charlty Number: 1177649 INTRODUCTION AND CONTENTS The Trustees of the Retired Baptist Ministers Housing Organisation I'the Charity") present their Annual Report together with the audited financial statements for the year ended 31 December 2024 which comply with the Charities Act 2011 and Accounting and Reporting by Charities.. Statement of Recommended Practice ISORPI applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS1021. The Annual Report and Financial Statements are structured as follows.. Section Page Reference Introduction and Contents Report of the Trustees.. Objectives and Activities Achievements and Performance Financial Review Plans for Future Periods Structure, Governance and Management Statement of Trustees, Responsibilities Report of the Independent Auditors Statement of Financial Artivities Balance Sheet Statement of Cashflows Notes to the Financial Statements io li 12 13 REfiRED BAPTIST MINISTERS HOUSING ORGANISATION Charity Number: 1177649 REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2024 2. OBJECTIVES AND ACtIVlTIES The objects of the Retired Baptist Ministers Housing Organisation IRBMHO, the Charityl are. for the public benefit-. The prevention or relief of poverty of retired 8aptist ministers, retired Baptist missionarie5 and their spouses. who are in necessitous circumstances, as the charity trustees 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 Housing Society IRBMHSI has sought to provide good-quality, Safe, secure and well-maintained homes to those who reached retirement and who had no means of providing a home for themselves and their familv. The Charity aims to support all applicants for housing who meet its normal qualifying criteria Retired Baptist ministers who have served as a Baptist 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 churth in membership of the Baptist Union of Great 8ritain for at least 18 years Retired Baptist Missionaries who have served BMS World Mission primarily outside the UK for at least 15 years The surviving 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 deserving of support in the view of the Trustees. The Charity works in partnership with the Heart of England Baptist 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 coming year. 3. ACHIEVEMENTS AND PERFORMANCE The Charity is pleased to retord that it was able to provide 6 home5 for ministers and minister's widows who made applications to RBMHO for 2024 and an additional minister was housed in January 2025 following a slight delay in the purchase. The remaining applicant has delayed their retirement. In addition, 2 tenants were relocated to propertie5 more suited to their needs. During the year the Charity acquired 7 properties and disposed of 20. The Charlty's stock of properties decreased to 250 properties12023.. 2631. At the end of the period, the Charity was providing home5 for 24412023.. 2511 retired ministers and /or their spouses. It seeks to maintain its properties to a good standard and offers pastoral support to its tenants as far as it is able. In doing all this, the Charity recognises that it Is due, ill no Small measure, to those individuals, ministers, organisations and churches who have supported and continue to support its continuing work either by prayers, publicity, visits or donations. During the year, the Charity undertook a significant amount of work improving the properties which had been identified in the condition surveys as requiring the most urgent work. This has resulted in spending on repairs exceeding £1.7million. In November the Trustees agreed that new condition surveys could be undertaken on the remainder of the properties previously surveyed to ascertain the future expenditure likely to be required. A survey of active Baptist Ministers was undertaken to projert demand over the next 20 years or more and has informed cashflow projections for the next 5 years. RETIRED BAPTIST MINISTERS HOUSING ORGANISATION Charlty Number: 1177649 REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2024 The Charity has engaged in discussions with the Baptist Union of Great Britain and the Baptist Union Corporation about the £20 million Family Solution loan which has led to a decrease in the charges required on the Charity's properties. 4. FINANCIAL REVIEW The results of the Charity for the year are set out in the accompanying financial 5taternents. During the reporting period. the minimum monthly rent (July 24-Jun 251 was increased to £224.5012023: £2061, and the maximum purchase value per property remained the same at £240,00012023: £240,0001. As shown on the Statement of Financial Activities the surplus for the year of £1,280,02912023: £1,656.8291 has been transferred to reseryes, giving total funds carried forward of £41,821,66112023- £40,541,632). Excluding the Family Solution Isee belowl, Income in the year decreased to £969,613 12023= £1,073,717), a decrease of 9.7%. This was primarily due to further information coming to light regarding an expected legacy of £IIO,OCKJ, previously recognised in 2023, being debited from legary income in 2024. Icomparing incorne for 2023 and 2024 excluding this legacy, income rose by 12%.) Rent income increased to £719,20612023.. £675,708) an increase of 6.4%. Direct unrestricted costs increased to £1,991,46712023: £1,243,604) an increase of 60.1%, driven by an increase in property repair costs. Support costs decreased to £13,95412023: £20,566). The operating deficit for the year, excluding the gain on sale of fixed assets, was £1,035,807 12023: deficit £190,453), on top of whith the Charity made gains on disP05al of fixed assets of £2.315,83712023- £1,846,538>. The properties have been included in the financial statements at cost. The Trustees consider that the aggregate value of the properties is not below carrying value. Family Solutlon Since 2018, the Charity has supported the Baptist denomination by participating in the Family Solution to the Baptist Pension Scheme. This involved it taking a loan from Baptist Union Corporation IBUCI of £20m secured against a portion of its property a55et5 and then making an unsecured loan to the Baptist Union of Great Britain 18UGBI of £20m. Both loan5 are on an interest-only payment basis and have the same interest rate, meaning that the interest income and expense offset each other. The loan from BUC is classified as non-current liability as the terms of the loan agreement mean payment can only be requested with 13-months' notice. The loan to BUGB is classified as a mixed-motive investment under FRS102 as the Trustees have made the loan as part of its commitment to the Baptist denomination Family Solution to the Baptist Pension Scheme at a rate more favourable than BUGB could have obtained commercially. To avoid distorting the operating accounts of the charity, the Trustees have created a Family Solution designated fund to hold both the assets and liabilities involved. This fund showed both income and expenditure of £1,629,070 in 2024 12023.. £1,452,055), the increase reflecting the change of interest rates by the Baptist Union Corporation Ltd following the Bank of Englarbd base rates changing. Fundralsing The Charity receives donations from organisations Imainly Baptist churches) and donations and legacies from individuals. The charity seeks support from donors via its website and advertising in Baptist publications. The charity does not work with any commercial entities for fundraising purposes and does not undertake any direct marketlng activities for fundraising purposes. No complaints were received relating to fundraising in the year. REfiRED BAPTIST MINISTERS HOUSING ORGANISATION Charity Number: 1177649 REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2024 Principal Risks and uncertainties The Trustees of the Charity have identified the following as the principal risk and uncertainty facing the charity.. The tlnancial failure of the Baptist Union of Great Britain IBUGB). As the Charity's major debtor, the Charity is dependent upon BUGB to continue to pay interest on the outstanding loan. The Trustees believe that the failure of BUGB would not present any risk to current tenants, but the charity might not be able to meet the needs of future applicants. The Trustees believe the financial failure of BUGB to be a remote possibility but will monitor it5 financial position and take any action necessary to protett the interests of the Charity and its benefitiaries. Reserves Policy The Charity seeks to maintain acce55 to sufficient available c8sh reserves on hand to enable it to sustain its day- to-day running costs and respond to the needs of future tenants. The income from Charitable artivities relates to rent from beneficiaries which is highly reliable. This normally generates a s*Jrplus over the expenditure on charitable activities. However. the current programme of repairs and improvements, which we expect will take about 3 years to complete, will result in expenditure exceeding income over that period. The Trustees expect to fund the shortfall from excess receipts from disposa15 and, to the extent to which that is insufficient, from loans. 2 months operating costs (approximately £300,0001 is required for day-to-day running costs. Reserves are also required is to ensure that properties can be supplied to qualifying applicants to meet their needs in a timely manner. The Charity does not guarantee to all applicants that it will be able to help, but during its history has never failed to do so for those who meet its eligibility criteria. The Trustees believe it prudent to hold reserves for this purpose amounting to four times the maximum purchase price offered to qualifying applicants. This equates to approximately £980k. This gives a free reserves requirement of £1,280,000. As at 31 December 2024, the Charity had free reserves of £1,527.777, a surplus above the minimum requirement of £247,777. Should the Trustees see this excess build up substsntially, the Trustees anticipate using the surplus to pay down the debts of the Charity. 5. PLANS FOR FUTURE PERIODS The maximum purchase price will remain at £240,000 for 2025 and the minimum rent will be reviewed by I July 2025. The Trustees receive applications for housing UP to S years in advance and currently have 29 applications for the period 2025-2029. The Trustees consider that from the anticipated proceeds of sale of properties the Charity should be able to meet all qualifying applications in this period. Additional work will need to be undertaken on a number of the Organisation's properties as a result of the further condition surveys. The government have announced that landlords will be required to improve the energy efficiency of rental properties with a minimum of EPC of C required from 2030. Currently 50% of our properties have an EPC of D or E. The trustees are undertaking a rent review to ensure that the Charity is able to cover the ongoing costs of maintaining all the properties to the standards now required. 6. STRUCTURE GOVERNANCE AND MANAGEMENT The Charity is governed by a constitution based on the Charity Commission's Foundation Model CIO Dd onstitution, which was registered on 22 March 2018. The Charity is managed by a board of up to 15 Trustees. Up to 8 Trustees are appointed by BUGB with up to a further 7 co-opted by the Trustees of the Charity. The Trustees delegate the running of the Charity on a day-to-day basis to the General Manager, Revd Andy Hughes and Property and Operations Manager, Mr Joe Cleavers. Andy Hughes has authority to approve RETIRED BAPTIST MINISTERS HOUSING ORGANISATION Charlty Number: 1177649 REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2024 standard applications for housing, to purchase and sell properties, and to approve routine items of expenditure and property repairs. Non-standard applications for housing are referred to the Trustees for consideration. Indurtion and Trainin8 of Trustee5 When new trustees are appointed they are given a briefing by the General Manager on the workings of the Charity. They are provided with the annual report and paper5 and minutes of recent meetings. Formal training is provided to trustees as appropriate. 7. STATEMENT OF TRUSTEES, RESPONSIBILITIES The Trustees are responsible for preparin8 the Trustees, Rewrt and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). The law applicable to charlties in England and Wale5 requires the Trustees to prepare financial statements for eath financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statement5, the Trustees are required to.. Select suitable accounting pollcles and then apply them consistently: Observe the methods and principles in the Charities SORP IFRS 1021: Make judgements and estimates that are reasonable and prudent,. State whether applicable accounting standards have been followed, subjert to any material departures disclosed and explained in the flnancial statements.. Prepare the financial statements on the going concern basis unless It Is inappropriate to presume that the charity will continue in operation. The Trustees ore responsible for keeping accountin8 records that disclose with reasonable accuracy at any time the f¢nancial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2022. They are also responsible for safe8uardin8 the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In 50 far a5 the Trustees are aware: There is no relevant audit information of which the Charit¢s auditor is unaware,. The Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor 15 aware of that information. The report of the Trustees was approved on 29 April 2025 and signed on Its behalf by- Revd Andy Hughes INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF RETIRED BAPTIST MINISTERS HOUSING ORGANISATION Oplnlon We have audited the financial statement5 of Retired 8apt15t Ministers Housing Organisation for the year ended 31 December 2024 which comprise the Statement of Financial Activities. the Balance Sheet, the Statement of Cash Flows and notes to the financial ststements. including significant accounting pollcies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, inclvdin8 FRS 102 The Financial Reporting Standard Applicable in the UK and Republic of Ireland, (United Kingdom Generally Accepted Accounting Practicel. In our opinion the financial statements- give a true and fair view of the state of the charitVs affairs as at 31 December 2024, and of its incoming resources and application of resources. for the year then ended.. have been properly prepared in accordance with United Kingdom Generally Attepted Accounting Practice,. and have been prepared in accordance with the requirements of the Charities Act 2011. Basls for oplnlon We condutted our audit In accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Auditorfs Responsibilities for the audit of the financial statements section of our report. We are Independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basls for our opinion. Concluslons relatlng to golng concern In auditin8 the financial statements, we have concluded that the tru5tees' use of the goin8 concern basis of accountin8 in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material Un￿rtaIntleS relating to events or conditlons that, individually or collectively. may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for Issue. Our responsibilities and the responsibilities of the trustees Wlth respect to going concern are described in the relevant sections of this report. INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF RETIRED BAPTIST MINISTERS HOUSING ORGANISATION Other Information The other information comprises the information included in the annual report, other than the financial statements and our auditorfs report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report. we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and. in doing so. consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatement5, we are required to determine whether there is a material mi55tatement in the financial statements themselves. If, based on the work we have performed. we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Matters on which we are required to report by exceptlon We have nothing to report in respect of the following matters where the Charitie5 Act 2011 require5 US to report to you if. in our opinion= the information given in the Trustees, Annual Report is inconsistent in arry material respect with the financial statements,. or the charity has not kept adequate accounting records- or the financial statements are not in agreement with the actounting records and returns- or we have not received all the information and explanations we required for our audit. Responsibilltles of trustees As explained more fully in the trustees. responsibilities statement set out on page 5, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. and for Such internal control a5 the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are reswnsible for assessing the charitVs ability to continue as a going concern. disclosing, as applicable. matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so. Auditorfs Responslblllties for the audlt of the financial statements We have been appointed a5 auditor under section 1442 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Art. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to Issue an auditorfs report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS IUKI will always detect a material misstatement when it exists. Misstatements can arise from fraud or error arbd are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF RETIRED BAPTIST MINISTERS HOUSING ORGANISATION As part of an audit in accordance with ISAS IUKI we exercise professional judgement and maintain professional scepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error. design and perform audit procedures responsive to those risks, and obtain audit evidence that IS sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resultin8 from fraud is higher than for one resulting from error. as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. but not for the purposes of expressing an opinion on the effectiveness of the charitvs internal control. Evaluate the appropriateness of accountin8 policies used and the reasonableness of accounting estimate5 and related disclosures made by the trustees. Conclude on the appropriateness of the trustees. use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charitvs ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditorfs report to the related disclosures in the financial statement5 or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtsined up to the date of our auditor's report. However. future events or conditions may cause the charity to cease to continue as a going concern. Evaluate the overall presentation. structure and content of the flnancial Statements, including the disclosures, and whether the financial statements represent the underlying transactlons and events In a manner that achieves fair pre5entstion. We communicate with those charged with governance regarding, among Other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies In Internal control that we identify during our audit. Explanatlon as to what extent the audlt was consldered ayble of detectlng Irre¢ularltles, Includln8 fraud Irre8ularitie5, includin8 fraud, are instances of nonnie there t5 a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required. and the arnount of the obligation can be Mea￿￿d reliabtyf. The principal accounting polKies adopted, judgements and key sources of e5tirnation uncertainty in the p￿paratIon of the financial ststernents are as follows.. lal Basls of knountlnK The financial Statements have been prepared in accordance with the c￿ritieS siatÈment Re£ommÈnded Prartice ICharitY&s SORP IFRS 10211. Flnancial ReportinE Standard 102 and the Charitte5 Art 2011. The Retired 8apti5t min￿terS Housingorganisation is a registered charity. no. 1177649. and meets the definition ol a public benefit entity under FR5102. Assets and liabilities are Initialty recognised at historKal CO￿ or tran￿ctIon value unless otherwise stated in the relevant accounting poliry notes. Accounts are shown in Brttish pounds and rounded to the nearest whole pouThJ. ITrecoverableVAT ischarged asa cost against the attivity for which the expenditure was incurred. lfj T*￿Ible fwl a55ets Tangib￿ fixed asset5 are initi•lty measured at C05t, or in respect of assets donated. at valuation at the date of the donaiion. The¥ are subsequently measured at cost or valuation net of deprec￿E10n and any impairment losses. Depreci￿￿1￿ is re(ognised 50 as to write off the rost or valuation of assets kss their resKI￿1 values over their U5efttl econornic Iwes. Ibl Preparatlon 01thefi￿nrIal staternentsona golr¥ concern basls Thefinancial statemeffls are prepared onagoingconcern basis which assumes that the Charity will continue in operational existence for the foreseeable luture. The Director5 are aware of the coTrtinuin8 cost ol living crisls facing the UK population atthis time but based on robust income and the reserves held by the charty, the trustees have concluded that there 15 no material urKertainty as to the Charrt¥ls 3bilrty to meet tts liabilities as they fall due. Accordin8lythetrustees continueto adopi ihegoifvd concern basis in the preparation ol the finarKial Statements. DepreciatK)n 15 provided on lonB leasehold properties 4werthe remaining lrfe of the lease. Freehold pror*rties aregeneral￿ held tythe Charity for an average 0130 years. During the period of ownership. they are maintsined by the Charity such that thevolue of the property 15 rnaintained at the value presented in the financial statements. Motor Vehicles have a stra4ht-line depreciation rate of 25%. 1¢) Fund$ Attourrtlr Unrestricted Funds-. General ursrestrKted fiJnds represent funds which are eX￿endab￿ at the discretvjn of the Trustees in the fvrtherarKe of the object5 of the charity and which have been deS￿n￿1edfQrother purp05e5. ￿1£hfund$m)Y ￿held to finance both workiw and capital investment. Designated Funds." These represent amounts set as•Je by the Trustees for specffK purp)ses. may be returned to General Funds ai the d￿retKIn of the Tru5tee5. Computets havea stra￿ht-IIne depfeciation rateof 33%. 181 Flxed asset In¥e￿ments Quoied investmentsare heldfortheir 1ncomege￿rati0n and investment t￿tentIal and are valued at market value at the reporting date. Any 5urplu5 01 deficit arigng is I￿luded in the Statèment of Financial Artivities. Investments in gjbsidiarles are measured at cost less impairment. Mrrted rnot￿e investrnents inclvde roncessionary loans. LoaTr5 are considered conce55ionary loans as they are made by the charity al bebw pfevailinB market interest rate5 and to fvrther it5 purw)ses. Loans are initiallv measuied at the amoynt paid, with the carrwng amount adjusted Subse4uent￿ io reflect rep3ymer*ts and any interest recer¥able. Whefe any loan rnade 15 considered to be irrecoverawe an impairment Ios5 is reco8nised. Restricted Fund5.' These represent arMrts whKh have been restrKted by the do￿r$ for use for 5FeC purpose5 as setout in note 16. Idl In¢omp Income is recognised in the Statement of Finar*ial Activities when the charity has entitlement to the fund5. any perforMa￿e £onditK)ns attached to the ttemlsl of income have beers met, r( is probable that Income will be received, and the arnount can be measured reliabty- t)onatK)nsareacCountedforgrosswl￿n receNed. Legacies are accounted for at the ead￿r of the E5fate atcounts beinK finali5ed and rKrtthed. ar￿ tash recewed. RÈntal intomÈ is knttount￿ foron an acuuals basis. Investment in¢ome is accourrted for on an xuua15 basis. Ihl Debtor5 Prepayments and otheT debtt>rs are re(ognised at the settlernent amount due. Debtors are measured at thesr recoverable amount. Cash It b*nk and In hand Cash at bank and in hand includes notKe deposits and short-term dep)sits with a maximum maturrty of le5$ thar¢ 3 month 13 RETIRED BAPTIST MINISTERS HOUSING ORGANISATION Charity Number: 1177649 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2024 ui Credltors Creditor5 are reco8nised where the charity has a present Obl￿atIon resutting from a past event that will probablv result In the trbnsfer of funds to a third party and the amount due to settle the obll8ation can be measured or estimated reliably. Accrua15 and other creditors are recogni5ed at their 5ettlernent arnount due. Judgement and Key Sources of Ertlmatlons Uncertalnty Estlmates and judgements are continu4lly evoluated and are based on historicèl experience and other factors, including expectatlOn5 of future events that are belleved to be reasoriable under the circumstances. lal Judgements In applyln8 the entity'5 accounting Loans are consldered concesslonary loans received as they are made to the charity to further its purposes and any interestcharged is below the prevailing market rares. The trustees estlmate the re5idu?I value of freehold property at the ènd of it5 expected useful Ilfe In order to deterrnine the depreclatlon charge. 845ed on these estimates no depreclation is charged on freehold property as any charge would be mmaterial. Interest free loans represent ¢ontributlons received towards the cost of properties which are to be repaid when the tenancy is terminated. These are reco8nised as ¢ontrlbutlons received and a liability for repayment from the date at which the tenancy commence5. They are shown ascurrent Ilabllitles as dates of repayment cannot be determined. Ibl Accountln8 estlmates and assumption5 Useful economlc Ilves of iangible a55et5.' The annual depreclation chorge of tangible assets Is sensitlve to Changes in the estimated useftsl economic live5 ond residual values of the a55et5. The useful econom Ilves and residual values are re-assessed annuallv, They are amended when nete5sary to reflect current estimOle5. based on technolo8i¢1l dvancement, futvre investments, economlc utilisètlon and the physlcal condltlon of the a55ets. See note 9 for the Carrylng amount ol the flxed assets and note Ilfl for the useful economlc Ilves for ea¢h flass of asset5. Fk)•nclal Instrum•nts The Charity only ha5 Anancial assets and Ilabllltles of kind that qualify ès bès1£ fin¥ncial in5trurnents, easic flnanclal instruments are Inltl?Ily recogni5ed at tran5ac¢lon value and 5ub5equently measured at thelr settlement value. Employ•e benelbts Short term beneflts.. The Chèrlty re¢ognlse5 an o¢rrual for accurnulated annual leave accrued by employee5 a5 a result of serwices rendered in the Ur￿￿1 period which ernployees can carry forward and use withln the next year. Th¢ ccrual 15 measured at the salary c05t of the respective employee in relation to the period of absence. D¢flned ¢ontrlbutbn pension plan5.. The Charity Is not a dlrert member of a deflned contrlbutlon pension plèn. as Its staff are employee5 of the Baptist Union of Great Brltaln IBUGBI and it relmburses BVGB for their costs of employment, In£ludln8 their pension costs. BUGB Is a participating employer in the 8apt15t Penslon Scheme whl£h is a multi*mployer defined contributlon scheme. A def￿ned contribution plan is a pension plan under which the ernployer Pav5 fixed contrlbutlons Into a separète entitv. Once the rontributions have been paid the ernployer has no further payment obligations. The contrlbutlons are recognised as an expense when they are due. Amount5 not paid 3re shown in accrua15 in the balance sheet. The a55et5 Qf the plan ère held separately from the employer in an independentty admlnlstered fund. Taxatlon The Charity is not assessab￿ lo taxation. 14 REnRED BAPTIST MINISTERS HOUSING ORGANISATION Charlty Number: 1177649 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2024 2. DONATIONS AND LEGACIES Unrestrirted Funds Deslgnated Funds 2024 2023 Donations Legacies Total 31,403 36,696 68.099 31,403 36,696 68,099 31,281 172,851 204,132 In 2023, all income from donations and legacies was attributable to unrestricted funds. 3. CHARITABLE ACTIVITIES Unrestrlcted Funds Des58nated Funds 2024 2023 Rent Received Property Management Total 719,206 719,206 675,708 1,794 721,000 1,794 721,000 1,877 677,585 In 2023, all income from charitable activitie5 was attributable to unrestricted funds. 4. INVESTMENT INCOME Unrestrlcted Deslgnated Funds Funds 2024 2023 UK Listed equities Interest received Total 1,125 79,389 80,514 1,125 1,708,459 1,709,584 1,200 1,642,854 1,644,054 1,629,070 1,629.070 In 2023, £1,452,055 of interest received wa5 in designated funds and £190,800 of interest received was in unrestrlcted funds. Income from UK Listed Equities was all attributable to unrestricted funds. 5. CHARITABLE AcfiviTIES Direct Costs Support Costs (Note 7} 2024 2023 (Note 61 Charitable expendlture 3,620,537 3.620,537 13,954 13,954 3,634,491 3.634.491 2,716,225 2,716,225 15 RETIRED BAPTIST MINISTERS HOUSING ORGANISATION Charity Number: 1177649 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2024 6. DIRECT COSTS Note Unrestricted Funds Designated Funds 2024 2023 Repairs 1,717,384 29,248 74,626 738 106,593 1,717,384 29,248 74.626 738 106,593 819,085 37,646 79,643 578 101,036 2,143 Vacant Property costs Insurance Ground rents Salaries Legal & professional fees Loan interest 1,629,070 1.629,070 Loan fees 6,000 6,000 Office expenses 36,254 36,254 36,629 Depreciation 16,102 16,102 12,323 Other expenditure 4,522 4,522 3,332 Total 1,991,467 1.629.070 3,620,537 2,695,659 In 2023, £1,452,055 of loan interest was attributable to designated funds and all other expenditure Was in unrestricted funds. 1,597.244 7. SUPPORT COSTS Unrestrirted Designated Funds Funds 2024 2023 Audit 10,868 Legal & Professional fees 3.086 Total 13,954 In 2023 all support costs were attributable to unrestricted funds. 10,868 3,086 13,9S4 12,714 7,852 20.566 8. EMPLOYEES AND TRUSTEES Note 2024 2023 Staff costs: Salaries Social security costs Pension costs 88,000 9,793 8,800 106.593 85,656 9,083 6,297 101,036 18 Total The average number ofemployees: Employees are employed by the Baptlst Union of Great Britain and their associated costs are then recharged to the Charity. No employee received emoluments in excess of £60,000 during the period 12023.. £nill. No trustee received emoluments from the Charity during the period 12023.. £nill. Expenses totalling £66212023.. £2201 were reimbursed to trustees from the Charity during the period. 16 RETIRED BAPTIST MINISTERS HOUSING ORGANISATION Charity Number: 1177649 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2024 9. TANGIBLE FIXED ASSETS Number of Properties Lea5ehoSd Freehold Totsl Brought forward Additions Transfers Disposals Carried Forward 252 li 263 121 121 1181 242 1201 250 Book Values Motor Vehicles Freehold Leasehold Computer Total Cost Brought forward Additions Transfers Disposals Carried Forward 39.307,802 1,385,223 285,292 11,905,7121 39.072.605 1,700,136 25.000 1285,2921 1199,3731 1.240.471 30,383 41,038.321 1,411,389 1,166 12,105,08SI 1.166 40.344.625 30.383 Depreclatlon Brought forward Charge for the period Disposals Carried Forward 67,310 8,344 136,4691 39,185 3,798 7,596 71,108 16,102 136,4691 50.741 162 11,394 162 Net Book Value Brought Forward Carried Forward 39,307,802 39.072,605 1,632,826 1.201,286 26,585 18,989 40,967,213 1,004 40,293,884 The insured value of the above properties is in excess of the book value. During the year it was identified that certain propertie5 were misclassified as leasehold rather than freehold. A transfer has been made to correct this in the current year. 10. QUOTED INVESTMENTS 2024 2023 Listed Investrnents Brought Forward Realised and Unrealised Gain/lLossl Total 29,944 29,201 19701 28,974 743 29.944 17 RETIRED BAPTIST MINISTERS HOUSING ORGANISATION Charity Number: 1177649 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2024 11. MIXED MOTIVE INVESTMENTS 2024 2023 Family Solution Fund.. Loan to Baptist Union of Great Britain Total 20,000,0(XJ 20,000,OCKJ 20.000.000 20,000.000 12. DEBTORS 2024 2023 Accrued Income Rents Due Amounts due from other Baptist Organisations Prepayments Total Debtors 27,631 65,473 5,000 3,130 101.234 158,404 401 5,0 86.768 250,573 13. ANALYSIS OF CASH AND SHORT-TERM INVESTMENTS 2024 Cash Flow 2023 Short Term Deposits Deposit- Bapt15t Union Corporation Cash at Bank and in hand Total 3,503,218 251,836 3,755,OS4 356,514 1273,7111 82,803 3,146,704 525,547 3.672,251 Cash has been invested with the Baptist Union Corporation in a deposit account. It bears interest at their standard variable rate. 14. CREDITORS DUE WITHIN ONE YEAR 2024 2023 Accruals 5,517 2,329.493 123,445 34,033 2,290,293 28,496 2.022,200 3,327 4.378,349 Interest free loans Amounts due to Baptist Union of Great Britain BUC Working Capital Loan Other treditors Total Credltors Due Within Year 2,458,455 Interest free loans represent contributions received towards the cost of properties which are to be repaid when the tenancy is terminated. These are shown as current liabilities as dates of repayment cannot be determined. The BUC loan is a working capital loan facility. Interest is payable at their standard variable rate. There are no set repayments, but the Charity can make lump sum repayments when cash flow permits. The loan was repaid during this financial year. but the facility remains in place. 18 RETIRED BAPTIST MINISTERS HOUSING ORGANISATION Charity Number: 1177649 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2024 15. CREDITORS DUE AFTER MORE THAN ONE YEAR 2024 2023 BUC Family Solution Loan 20,000,000 20,000,000 Total Provisions for Liabilitles 20.000,000 20,000.000 The BUC Family Solution Loan was provided to RBMHO as part of the Baptist Family Solution to the deficit in the Baptist Pension Scheme. Interest is payable at the BUC standard variable rate. There are no set repayments, but the Charity can make lump sum repayments when cash flow permits. The loan is only repayable with at least 13 months, notice, so is classified as a non-current liabilitv. 16. OTHER RESERVES 31-Oec-23 Income Expenditure Galn and (Lossl 31-Dec-24 Family Solution IDesignatedl 1,629,070 11,629.0701 The Family Solution fund was designated by the trustees to hold the assets and liabilities relatin8 to RBMHO'S participation in the Family Solution for the Baptist Pension Scheme. 17. ANALY51S OF NET ASSETS Tanglble Flxed Asset Mlxed Net Current LongTerm Totsl Fixed Assets Investments Motive Assets Liabllities Investments Designated Unrestricted Total 20,000,000 120,000,000) 40,967,213 40,967,213 28,974 28.974 1,397,833 1,397,833 120,000,000) 42,394,020 42.394.020 20,000,000 19 RETIRED BAPTIST MINISTERS HOUSING ORGANISATION Charlty Number: 1177649 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2024 18. PENSIONS As per note 8, the Charity's employees are employed by the Baptist Union of Great Britain IBUGBI and their associated costs are then recharged to the Charity. The Charity is therefore not a direct participating employer within any pension scheme. The staff are eligible to join the Baptist Pension Scheme 1.the Scheme"), which 15 a separate legal entity administered by the Pension Trustee18aptist Pension Trust Limited). The Scheme, previously known as the Baptist Ministers Pension Fund. started in 1925. At the beginning of the financial year, the scheme comprised of a defined benefits scheme which was closed to future accrual on 31 December 2011 and a defined contribution plan which was opened in January 2012. The assets of the Scheme are held separately from those of the participating employers. In October 2024, the insurance company Just Group completed a buy out of the liabilities of the closed defined benefit scheme. Administration of the closed defined benefit scheme transferred from the pension trustees to Just Group from that date. For the current financial year, the pension provision for members of staff is being made by BUGB through the Defined Contribution (DCI Plan within the BPS. In general, members pay 8% of their Pensionable Income and employers pay 6% of members, Pensionable Income into individual pension accounts, which are operated and managed on behalf of the Pension Trustee by Broadstone Corporate Benefits Ltd. In addition, the employer pays a further 4% of Pensionable Income to cover Death in SeNice Benefits, administration costs, and an associated insurance polity which provides income protection for scheme members if they are unable to work due to long-term incapacity. This income protection polity has been insured by the Baptist Union of Great Britain with Aviva Limited. Furthermore, members of the Basic Section of BPS pay reduced contributions of 5% of Pensionable Income, and their employers also pay a total of 5%. These costs are paid by BUGB as the employer and the costs are re-charged to the Charity. The total pension costs for the Charity for 2024 were £8,81XI12023'. £6,297). 19. RELATED PARTY TRANSACTIONS The Baptist Union of Great Britain is considered to be the ultimate controlling party of the Charity. During the year ended 31 December 2024, three Trustees, Mrs A Kapolyo Itrustee until 7 February 20241, the Revd A Miles and the Revd A A Peck occupied, on the same terms and conditions as the other tenants of the Charity, a property owned by the Charity. During the year ended 31 December 2024, the three trustees each pald rent at the average rate for all tenants amounting to £5,71212023.. £2,985) and there were no arrears of rent at that date. A total of £662 was paid to 4 Trustees in reimbursement of travelling and subsistence expense5 as Trustees12023.. £220 to 3 Trustees). 20