Methodist Ministers' Housing Society Company No. 11929754 rJsiees Repori and Finbncial Statements 2019120 Contents About us Welcome from our Chair Message from our CEO Strategic Report More on our mission Achievements and performance Plans for the future Risk Management 16 Financial Review 18 Struciure, Governance and Management 20 Statement of Trustees, Responsibilities 23 Auditor's Repori 24 Financial Staiements 27 Admi nistrative Details 45 mmhs.org.uk TruStee5' Rewrt aDd financial Staternents 2019120 About us WHO WE ARE Meihodisi Minisiers, HoLJsing society I'MMHS'I was founded in 1948. OLJr srory from the very beginning has been one of exiraordinary generosity and far-reachins vision. Our purpose Is sel oui in our mission siaiemeni below. OUR VISION There was noi 3 single person in need among them,. (Acts 4..341 OUR MISSION To meei Ihe housir)g and housing-relaled need5 of reiired Meihodisi Ministers of limited means, their spouses, widows and widowers - and 10 offer support for their wellbeing In Ihe key areas ol mobility and independence. OUR CORE VALUES Wle have a Lhrisiian disiinciiveness of which we are proud and it underpins who we are ond what we do. Our concern is io show high siandards of care in all we do and 10 be professional both as individuals and as an organisation. OUR PLAN We have an ambitious five-year plan. From September 2017 to August 2022, we are focusin8 on achieving five main siraiegic objectives thai will enable us 10 deliver our vision and mission. I We wlsh 10 meei the housing and housing-related needs of 5096 of retiring ministers and will do so incrementally over the five years of our plan, How will we do thai? We will coniinLJe ro provide houses and permil equity interests in them, but we will add to our mission by taking equiiy shares ourselves in houses owned by ministers, It may be thai we will a150 offer loan5 in due course. 2 We also plan 10 offer more wellbeing support so the minisiers we serve can keep their mobility and independence for as long as possible. Physical ageing presents considerable challenges, and we aspire 10 be Ihe'go to, place for minisiers for advice and recommendations - as well as provide well thought Ihrou8h assisiance. 3 Recognisirng we cannot do everyrhing ourselves, we will establish collaborative relationships wilh oiher agencies, charitie5 and group5 we know will help u5 achieve our objeciives. Any collaboratlons will have to be a good 'fit' with our vision, mission and core values. 4 We know if we are to succeed, we musr have the righi mix of experience, skills and knowledge. To that end. we will invest in and develop our 8oard and staff team so Ihey are fully equipped 10 deliver whar is required of them. 5 We also know we must continue to be good stewards of our considerable asseis. To that end, we will ensure we have a number of well-m3nased SOLJrces of ir)come and that our capital assets, in partiCLJlar our housing stock, are equally well-managed. mmhs.org.uk i Jstee¥ Repon 3nd FinaDciJl siaiemenis 2019120 WeLcome from the Chair l am writing to you at an unparalleled lime in MMHS'S hisiory. The Covid-19 pandemic has caused havoc. In living memory, I don't think there has been anoiher eveni which has affected the lives of so many people. This includes all Ihe people who are connected ro MMHS - in parricLJlar OLJr ministerial residents - who, because of their age profile, have felt the full force of the virus and all Ihe policy decision5 that have been iaken 10 try to contain it. It wa5 such a shock when we received Ihe tragic new5 thai our friend and fellow Irustee, Revd Glynn Lister, had passed away in hospital on 7 April 2020 from Covid-19. This was early In the pandemic before we all really understood what was happening. While we knew Glynn had succumbed 10 the virus, we had hoped and prayed he would recover. Glynn gave so generously of his time and himself- lo Ihe work of MMHS. As well as making full use of his nurnber-crunching skills as Chair of Finance, in summer 2019 the staff team were delighted to make use of his creaiive skills. They commissioned him 10 write a prayer resource, Ociuve. Liiile did we all realise Ihis would become part of his legacy, mere months lècer, Againsi Ihe backdrop of our difficuliies, l am delighied ro preseni the TrLJsiees' Report and Financial Sialetnenis for Ihe period 5 April 2019 10 31 Augus12020. The Board of Trustees and the Senior Managerneni Team have worked 'hand in glove, 10 achieve much. I hope you enjoy reading our Report which seis out how we are making a reol difference for good. l am immensely 8raleful lo our CEO, Mairi Johnstone, for leading MMHS through such challenging limes. I would also like 10 pay tribute 10 my fellow Trustees for Iheir commirment 10 MMHS, in giving Iheir lime and applying their experiise. In no small measure, l am also really grateful to the many people who support Ihe work ol MMHS whether through church donations, gifts, bequests or legacies. You are the bedrock on which MMHS was built and continues to build. Finally, on behalf of the Board of Trustees, I WOLJld like 10 wish you and your families the very best in these uncertain times. Alexander OBE mmhs.org.uk TTiisiee¥ Repory and Financlal StaTemenis 2019120 Message from the CEO We are living through extraordinary and unforgettable times. Covid-19 has turned the world on ils head. The pandemic has challenged our sense of self, as well as our sense of belonging - lo family, friendship groups, church and local communilies, nations, and the world. We face Immense healch, economic and Social consequences which we can'i yet measure. Yel. in the middle of a11 the mess, we have witnessed humanity at lis besi - in the expressions of kindness all around us, in powerfLJI dernonsiraiions of faith in action, and in the skill of innovaiors breaking through Ljsual boundaries. Everywhere, there 15 need to be met - and it is growing. As you will see from our Vlsion 5iaiement, our vision is to eliminate need. Need arises in so many different ways and, of course, MMHS is focused on meecing housing and housing-relaied needs for all those within our mission reach. Housing is of profoLJnd irnporlance, and it is a privilege io be involved in charilable work Ihai cenires on it. One of our former Board members, Revd Dr john Harrod, wrote the following in our regular news publication Roof 'n' Roors .a house is not just a ulilily object protecting us from the elemenis and giving security and safely. Our house feeds our wellbeing in so many ways. It's a place where friendship, family and love are deepened and enjoyed...our wholeness involves the house - the home,. John capiured so well, the importance of Ihe place we call home. We are reporting on a 17-month period, S April 2019 10 31 Augusi 2020. We elected 10 change the length of OLJr first accouniing period as a newly formed company limiied by guarantee, so we could re-alisn MMHS to the usual Methodist Church year, 1 September 10 31 August. We converied into a company limited by guarantee using Seciions 112-113 of the Co-operative and Communiiy Benefit Socieries Aci 2014 and are now fully regulated by the Charity Commi55ion and the Scoiiish Charily Regulaior. This was a 51gnificant eveni in MMHS'S life. We wish to posirion ourselve5 well for the fuiLJre. I hope you enjoy reading this Repori. We have packed il full of inieresiing facts and figure5, interspersed with inspiring stories. You will see thai, as well as being good stewards of our assets, we are passionate about the people at the heart of our mission. l am hopeful that 2021 will be the year when we emerge fully from the dark shadows of Covid-19.1 sense limes of renewal and reinvigoration ahead, and it s exciting 10 think of the part MMHS will play. Lastly, and on behalf of the staff team,1 would like to say how grateful l arn for the resolute support we receive from so many people - It Is simply wonderful. Malrl Johnstone mmhs.org.uk r￿lee# Repon 3Dd Financial *atements 2019120 Strategic Report MORE ON OUR MISSION Our mission 10 minisieis hos ali all-embrocing reach. As well as providing for ihose who reiire al a usual reiirement age, we also care for those who retire early on healih or compassionaie grounds. We care, 100, for widows, widowers and dependants of ministers who die in aciive service - as well as those who die during retirement. MMHS operaces in the Uniied Kingdorn, the 151e of I￿an and the Channel Islands. We are really pleased to be able to provide housing and associated services across this wide geographical area. Our equity sharing scheme, whereby rninislers can have an equity interesi in the properties we provide, extends our mission very effeciively. Also, in 2018. we were delighied 10 be able 10 establish an equity sharing fund whereby MMHS can lake an equiiy share in a minister's property. This fund can be accessed by retired as well as retiring ministers. Finally, we make sure our properties are suitably adapted for our minisiers and their families, use, and are also fully accessible, so thai all can live independenily for as long as possible. Wellbeing support is very important to us, particularly when if comes 10 aSSiSling wilh mobiliry and independence, ACHIEVEMENTSAND PERFORMANCE: OURWORK We're notjusr about property,, we ore olso very much obout people. We WOLJld like to highlighi Ihe positive impact we have on (he lives of our minisierial residents - as well as report on the sound management of MMHS'S assets. We would also like 10 repori on some of our collaborations. Our property numbers can be summarised as follows.. Number of propertles at the start of the reportlng perlod Transactlons throu8h the reportlng perlod Sold 925 28 Purrha5ed Bequests Number of propertles at the end of the reportlng perlod 14 918 Of thai number of 918, 736 were occupied by our ministerial residents, 145 by market rent tenants and 37 were empiy. Empty properiies are unavoidable due to tran51tioning periods between residents and during tnarketing periods for sale or rent. Empiy properly numbers are alwa￿ kept lo a minimum and the time they are left empty is kept as shori as p055ible. We were pleased ID provide housing for 37 new ministerial residencs, including two medical retirees. We transferred nine ministerial residents. Our equity sharing scheme enables our ministerial residents to acquire a financial interest in their retirement hornes. During the reporring period, 16 new inleresis were acquired and 29 were repaid. mmhs.org.uk ',ru5tee¥ Report ènd Finéftcièl Siaiements 2019120 Best possible management of our Property portfolio is at the heart of our mission. We strive lo get things right. In making the besr use of all our resources, we priorilise using our exisiing portfolio when offering accommodaiion 10 new minisierial residenis. Occasionally. however, we will PLJrchase properties for those who have medical or other valid reasons for requiring a partlCLJlar iype of properry in a particular area. Our purchasing budget 15 allocaied mainly to transferees. We find life can be very Oifficulr for our older ministerial residents, especially if Ihey are advancin8 significantly in age they want 10 be near to their close farnily members. We have a rolling programme for maintaining our properties, inclLJding kitchen and bathroom refits. We also lake Ihe opporiuniiy when properries are empry 10 undertake major refurbishmenis 10 avoid disturbance 10 our residenis. These refurbishments comprise the replacement of kiichens and bathrooms wilh upgrades 10 joinery, heating, plumbing and electrical Installatioris together wilh building fabric repairs, complete redecoration and replacement of finishes. This 15 a comprehensive specification. It prevents projects drifting beyond refLJrbishment into remodelling exrensions and struciural alieraiions requiring external consultants to design and manage. Alihough Ihis may be a consideraiion in highly exceptional circumsiances, Ihis is not the norm. 5 Aprll 2019 to to 31 August 2019 10 1 September 2019 to 31 August 2020 23 Over the whole 17-month pèrlod 33 Number of home5 refurblshed Avera8e spend per property £38.850 £33.580 £35.180 We also made great strides in the tighter control of refurbishmeni contracts by ensuring our documentation of works included all Ihai they should, ai the lime of lender. We are a150 pleased thai most of our refurbishmeni projects are now delivered on lime - or even ahead of time. Almost 2.800 jobs were recorded relating to (he repair and maintenance of our properties. These jobs ranged from £10,OOQ roof replacements down to fixing a leaking tap. In addition to repair and maintenance, all our properties are routinely inspected lo ensure compliance with respecr 10 electrical and ga5 safety standards. Elecirical inspections and associated remedial works are adminisiered and undertaken by HES Fire Protection Limited. Boiler Plan UK Limited took over our gas compliance checks from Brilish Gas at rhe beginning of 2020. Boiler Plan make Ljse of the management software lob Logic which is available to us, loo, and provides us with real-time information on compliance and appointmenis. The pandemic has inevitably had an effect both on access lo propertie5 and the availability of engineers. We are consiantly working with our partners 10 ensLJre as many properiies as possible are fully compliant. mmhs.org.uk 'rL6iees' Report and Fin3nco1 stsremenis 2019120 CASE STUDY Pictured is one of our ministerial residents, Margaret Parkes. who was overjoyed with her kitchen refurbishment. 'My grateful thanks for the hard work and attention given to my kitchen,, said Margaret, who lives in the West Midland5. 'Ifs beautiful., She said it made her want to dance! Due 10 Ihe exiensive geographic coverage of our property portfolio and rhe relaiively small scale of individual projecis, larger coniraciors are noi always inieresied in pricing OLJr work or are Ljnable to compete. We therefore concentrate on smaller coniractors who are also willing 10 travel. We will lypically use five coniraciors for every refurbishmeni render - with ai least one selected from the locality of the property project. We have resolved noi to form a partnership with any one contractor, preferring 10 slay wiih compeiilive render for each proieci. To dale, this has worked very well, delivering exceptional value for money. CASE STUDY Our MMHS'S Residents'Hondbook used to be heavy, plastlc manual weighed down by laminated pages and complex graphlcs. Thls publlcatlon ha5 now been totally revised and reflned and Is avallable as a free download from our website. Ministerlal residents without online acce55 can request a paper copy. The new Handbook remains essential reference material for ministerial residents. Our responsibilities as landlord do not normally cover internal decoration. We have become aware, however, that some of OLJr ministerial residents Struggle with thi5 matter both physically and financially. So, we have been developing plans lo launch a new granr scheme in 2021 to help residents with internal redecoration. Access to the scheme will be subject to means and other le5ting. The new grani scheme will be separate from the external decoraring programme 10 maintain the exiernal fabric of our properiies, which is OLJr responsibility as landlord. Over our reporting period, 874 satisfaction questionnaires were received from Ministerial Re5ident5 Stating their overall response to the quality of contractors, work. Levels of salisfociion can be indicated on a five- point scale ranging from Excellent to Poor.. 71 per cent rated their satisfaction as Excellent., a further 22 per ceni rated their satisfaction a5 Very Good. mmhs.org.uk Trusieeg Reporr and Fin3ncial Statefnenis 2019120 Overall Quality of Service Excellent No. of Responses 623 Percentage 71% Very Good Good 196 22% 34 Sat15factory Poor 12 2* 1% Total Questlonnalres Recelved 874 100% Jobs are prioriiised on a scale froffl Rouiine lo Emergency Call OLJI and each classificacion Is assigned a targei number of days to completion. Priority classification Target Idaysl Number of jobs Number within target 594 Percentage within target 79% Planned 751 Urgent Emergency Routlne 155 125 81% 19 17 89% 21 1013 958 95% Em.ICall Out Total 10086 1939 1695 We remain very commitied to greening OLJr properly portfolio. Energy efficiency and insulaiion levels are consianily being upgraded whenever works are undertaken. We are pleased to confirm the following.. we have a rolling programme of boiler replacement, taking out old inefficient boilers and replacing with modern combinaiion boilers and we are also eliminating cold water storage tanks which can harbour diseases such as legionella., heating systems are being upgraded 10 provide better controls including Iherm051atic radiator valve5 throu8houi 10 allow our residents lo minimi5e their use of fuel while still remainin8 comforcable., insianianeous low flow shower fillings are being providecl., loft insulation is being installed when missing, and also increased where appropriate., our window and external door replacemeni programme provide5 modern double-glazed units Ihat improve insularion levels and eliminaie drau8his,' all lighi fitling replacements 10 kitchens and baihrooms are safe, compliani, low energy in type. We are also closely monitoring the availability of government grants in connection with 'the 8reen agenda, and will Ucilise Ihem if we can. Engaging effectively with OLJr stakeholders is important 10 us. We war)1 as Many people as possible within the Methodi51 family to know about our work - what we are doing now and what we are planning for the fulure. 2020, of COLJf5e, presented unique challenges on how best 10 engage. mmhs.org.uk 14Nees'Report and Finan¢k)I Si*iemefits 2019QO CASE STUDY The pandemic meant the Methodist Conference 2020 had to be held vlrtually. Thls meant no physical exhibition stand for MMHS or any other exhibitor. That presented us with a challenge. We heard vla colleagues in the Methodlst Church there would be a need to playvldeos between the onllne Conference sessions. We had a short film about the presentation ofthe MMHS grandfather clock to Wesleys Chapel - a stlll from the video shoot shows our Revd Neville Pugh CEO Mairijohnstone with Museum Curator Chrlstian Dettlaff. MMHS was also Ilsted on the offlclal Conference webslte. We booked advertisement space In and around Conference Ilterature and beyond. For the flrst tlme. we took out an interactive advert on the Methodist Publishing website where delegates would be downloading related resources. I In addltlon. we sent every delegate a copy of special MMHS edltion of a new colouring and actlvity book. The Flowing Tide, whlch carried our1080 and background story. Thls new resource from Lindisfarne Scriptorlum went out wlth each copy of the Conference Agenda. K.1useum Curator Christ1an Dettlaff with our C LO Mairi lohnstone Our fllm was screened onllne as part of the first ever vlrtual Methodlst Conference. The cameras w￿re rollln8 when one of our mlnlsterlal residents Revd Neville Pugh Ipltturedl set up the MMHSclock atwesleys Chapel in London. A special edit of the movie was screened online as part of Conference. Hundreds- maybe We also sent a card to every ordlnand. together with a copy of The Flowing Tlde. Every year at Conference we make contact with new ministers in this way, by sending them a small thousand5- of viewer5 Saw it. gift and card. OOFY ROOIS We use our regular publication Roo['n'Rools to cofflmunicate our rne￿ and views dnd pass on the many inspiring Stories that our mini51erial residen15 share with us. We never cease 10 be amazed ai Ihe lives our ministerial residents have lived and how, well into reiirement, Ihey continue to make significani coniributions to churches, local communiiies and sociery in general. 10 mmhs.or8.uk IILJStee¥ Repory and Financial Stsiemenrs 2019120 CASE STUDY Making masks from knicker elastic. telling Groucho Marx jokes, sharing'worship workouv YouTube clips, cooking Bali.style on Zoom, trampollnlng for charlty and recordlng a song a day are among the ways people have been coping with the Covid-19 crisis. Such pandemlc adventures are revealed In new A-Z called Lockdown.. Lexicon & Legacy. More than 400 copies have already been sold by publisher Revd Robert Davles, an MMHS resident. He shared his story in the Winter 2020 edition of Rool'n, Roots. 6ob Iplctured wlth hls granddaughter Emily) had already wrltten an A-Z of football as fanzlne artlcles for hls favourlte club Wrexham.'l always thought I'd love to do an A-Z of something else,, he said, '18Ot thls In5piratlon- why not about lockdownf IOD Davies ano granooau8ni&r trnily He knew many people wlth stories.'It came together in a haphazard way,, Bob confessed. .1 didn't make a Ilst. I kept thlnking of people - and pesterlng them wlth emallsl. slmply told frlends, colleagues and churches. North Wales born and bred, Bob felt drawn to Methodlst mlnlstry at an early age: .1 was Influenced by parents, Sunday school teachers. Some folk wrote prayers, others stories- such youth leaders and ministers,. He attended as church bells sllenced for the flrst tlme slnce Hartley Victoria College, Manchester, at a8e 20 World War11. There were ripping yarn5. like in the early 605. a father creating'cuddlesticks, with gloves mounted on long poles. There was a slmple glft of flowers for a couple who felt alone. Bob's granddaughter Emily created the cover. son Peter wrote the foreword, son Martin and grandson Leo both contributed to the book. Although Bob saw it as an A-Z of lockdown, a frlend told him he had made a document of our time. Ordained at 26. Bob engaged in mainly circult ministry for 17 years in Buxton, where the publishing started under the name of the maln church in the Market Place. He was a prison chaplaln for many years. On retlrement, he sought MMHS'S asslstance for a home, and was shown a property in Oldham in 2009. The house needed a lot done to it,. Bob Feedback has been overwhelming.'I'm getting laughed.'I made a list. Straight away MMHS letters. cards and emails,, he said. Success said, We re going to do o lot more than thar... has come without any major advertisSng. Bob MMHS were excellent.. mmhs.org.uk -rJStee¥ Report an¢ financial SraiemenE$ 2019120 CASE STUDY Part of Glynn Listers legacy to us is Octave- a little prayer book that became a big story for MMHS. OCTAVE,,,, [￿.￿lT r)4Ys rx PR4YFR ITII TI• ￿ IIKIX41 %1MIIII% I¥XW.VKI IY Glynn produced material for el8ht days of prayer, to encourage people to reflect on MMHS'S work and the housing needs of others. The book encouraged prayer not only for MMHS resldents, staff and trustees- but also for carers. homeless people. refugees and housing policy maker5. Lindisfarne Scriptorium designed and packaged Glynn's notes and prayers Into a beautlfully crafted 12.pa8e book. GLYNN LIS I EII We launched It as a Ilmited print edition at the Methodist Conference In Birmingham - at the same time making Octave available as a free download from the MMHS website. Stories about Glynn's prayer resource were shared by congregatlons up and down the UK. We held a second launch at the Christian Resources Exhibition in Esher, Surrey. distributing postcards that carried a QR code for people to download Octave. MpthDdi¥i KliniSt*rS HS and an extract from a hymn. Glynn sald the Idea Is that If the prayer pattern Is the same. you can 'wearf it like a c05y Sult or outflt. 'Octave should be comfortable clothln8, not a 5traitjacket,' he explained. 'One person might find the readlng enough to '1 chose an "octave" as Irs been a ChrlstSan open up the way of prayer for them. Another tradition since earliest tlmes,. sald Glynn at the person might want to look up a whole hymn time.'From the Latin octava leighthl. "octave" and that will expand the prayer topic for them. is the eighth day after a feast. The word is also Start somewhere and finish somewhere. If you applied to the elght-day perlod of the feast. get lost in the mlddle, thats fine, too., 'In those pioneering centuries of the Church, octaves were created for Easter, Pentecost, Epiphany, Christmas, saints. days - and in modern times, the Octave Of Prayer For Christian Unity. Even The Beatles sang Eight Duy5 A Weekl, That was very much part of Glynn's character and part of hi5 legacy to Us - making a deeper spiritual life accessible for everyone. You might have a favourite spot where you feel you can pray - perhaps a fireside armchalr, a kitchen bench or, on nice mornings, a corner of the garden., he said. 'Prayer is all about letting your mind wander in the presence of God., Octave offers the same template for each of any chosen eight days - a reading, a prayer 12 mmhs.org.uk Trusiees. ReporT and Financial STèiemenis 2019120 CASE STUDY Gwenda grew up on Ynys Enlll. the 'lsland In the Currents., better known as Bardsey. This legendary'lsland of 20.000 Saints, is situated two miles off the Llgn Peninsula. Whlle the name sounds magical, Bardsey was without running water. gas or electricity. here were ten houses, a chapel, a school and a lighthouse,, Gwenda smiled as she remembered a special childhood, but wondered how her mother coped. especially when her father dled of tuberculosls. She now realises that taxing existence prepared her for mission and church work. Gwenda went on to Study social Science at Leeds Unlversity. There she met Vic, who was training to be a Methodist mlnlster at nearby Wesley College. Headingley. They married in 1956. Later that year. Vic was appointed as a mlsslonary to Panama. %Ve had three ba8S- Gwenda and Vlc worked hard to reconnect my clothes. hls clothes and the thlrd contalned wlth the multicultural community, who started Vl¢s books,, said Gwenda. to form a congregation. In time, Walworth became one of the UK'S fastest growing Methodlst churches.'It grew and grew and grew,, said Gwenda. Vic was just blessed with a 8ift.' It was a proud moment when Vic received the MBE in 1993. The following year, the Watsons retired to an MMHS property in the north of England. Calne. a former member, and Bob Hope. a generous benefactor. Followlng varlous mlnlstry appolntments, Vic's next major mission was to Walworth Methodist Church, London. It was known as Clubland because of its pioneering youth work. In its early days, Clubland had become associated with showbiz figures like Michael Offering pasioral supporr is a key part of our relaiionship with our ministerial residents- as we said earlier In this repom our mission lo mini51er5 has an all-embracing reach. Anoiher way of putting il is, we deal with the whole breadth of life's experiences,. many ministers and their households are with us for a third of their lives. Someiimes the need ro offer suppori crops up in the most unexpected contexts - in the rniddle of a refurbishmenr project, for example. Ministers, on reachins retirement, experience all kinds of emoiions and we are right there ai the cenire of all rhe changes thai are raking place, with role, home, and location, to name bui three. It can be overwhelming for some. We help with loneliness and isolation, often a debilitating consequence of older age. There can be a stigma with loneliness. Research shows Ihai half of all people over 75 live alone and one in l O people over 65 feel lonely. Technology. although life-enhancin8 when considered 'in rhe round,, cèn mean less time spent speaking to someone on the phone or in person. It's easier to email and message our friends and farnily. The various lockdown rule5 during Ihe pandemic have impacted older people terribly, often exacerbating mmhs.org.uk 'fJsrees' Report antt Financial Stbiemeni$ 2019120 their loneline55 and i501ation. Our 51aff are skilled In listening. We know a call about a repair might be the only conversaiion Ihe caller will have with another person Ihai day. We a150 help wilh disability linked to older age, moving into care, and deaih and bereavement - all are enormous life evenis. One of the core values of MMHS really comes Into ils own when we are being pasiorally supportive,. Showing a high standard of care. We believe we do. Collaborations are really important to us. The primary reason is our own small resource base, We have bi8 ambition5 in terms of the quality and quantity of our outPLJt and we know we have lo rely on others to achieve OLJr obieciiveg. There are secondary reasons too - one is the huge benefii of learnin8 from the knowledge and experiences of oihers and another Is benefitting from rhe creaiivily and skill of oihers. We would like 10 share a few examples.. working with Ihe Methodist Church rnedia team - as a result of doing so, a number ol our scories have appeared in The Methodist News,, an electronic news service Ihat reaches about 5,500 subscribers across the Methodist Church., meeting regularly wilh ihe housing teams in Ihe Church of England and Ihe United Reformed Church ro exchange ideas and resources, and offer muiual support,. working wilh Lindisfarne Scripiorium who have provided us wilh conlemplalive artwork, lifting the qualiiy of our publicaiions., allending the Meihodi5t Church retirement courses where we have a wide audience,. as well as talk aboLJI OLJr seNices lo Ihose who need Ihem, we can a150 'markel' 10 those who don'i need us bul can spread the news of what vve offer. We are exploring collaboraiions around procurement of seNices. PLANS FOR THE FUTURE We are now in Year 4 of our five-year Strategic Plan. Even though we are Slill in (he middle of the pandernic, we are opiimistic aboui delivering effectively and efficienily. We have a 16-point plan for Year 4 and we will highlight the key poin15 in summary form, as follows.. as in all previous years, we will ensure we meei the housing needs of all those who are eligible for and seek our assistance. We will also continue 10 operate our Equity Sharing Scheme whereby qualifying ministers have an equiry interesr in their IJMHS hoLJse and our Equity Sharing Fund, whereby MMHS takes a share in a hoLJse owned by a reiired or retiring minister who meets our criteria,. we will seek lo meet the ongoing housing-related needs of the c730 ministerial households in our care. We will continue to offer pasroral support where we can, as a contlnLJin8 expre5510n of our values. We often have lo handle complex situations that call for bespoke arrangements, for example, the provision of a specially adapied home", we have a Wellbeing Fund Icappedl available to support our Wellbeing Programme. Our focus this year will be.. partnering wilh and launching a 5uppori service with AbilityNet and encouraging lis use., commissioning services for our ministerial residents on best use of space, the benefits of decluitering, and safety in the home., 14 mmhs.org.uk Trustees. Report and Flnancial siatemeni$ 2019120 the continued use of the Fund to alleviate poverty. we are also cornmiiied 10 providing a good signposting service mainly IhroLJgh our PLJblicaiion Roof n, Roots and our websiie. We aim to highlight the services of other organisaiions thai may be able lo help our ministerial residenis keep mobile and live independenily. in ways that are over and above what we can do. We recosnise we can only meer needs Ihac are within Ihe parameters of our mission., with re8ard to makirTrg best Use of our housing and document management systems, we will do the following.. continLJe to develop our housing man3gemen( software by adding module5, re-introducing the use of the Executive Oashboard and revising coding., continue 10 research possible replacemeni housing management systems,, reform the coding of our documenc managemeni system, integrate the functions of our systems as much as possible,. make use of an online ponal for reporting repairs. MMHS has adopted an updared asset management siraiegy I'AMS'I which was written to support our main Siralegic Plan, 2017-2022. The following will be implemenied this year., new style ienani satisfacrion qLJesiionnaire will be devised. Further que51ionnaires will be devised lo measure 5a115faclion with all work undertaken at our properties for our minisierial residents, including refurbi5hments,' a digital library of our properties - we will continue to work on this with a focus on our market rented and empty properties,. achieving the strategic target of marker renting 175 properties will be pursued. The income from this is a vital cross-subsidy lo our ministerial rents,. our exisiing suite of KPIS - we will add 10 Ihem in order to provide a more complete analysis of the management of our properries,. two new Ir)itiatives will be pul in place, or)e with a distinctly green, flavour and one for decorating. we will continue with the review and reformation of our processes. In particular, we will continue lo work on sireamlinins processes around eqLJiry, surveys and our market rented porifolio and enhance audit trails. This is all wiih a view 10 making MMHS, operaiionally, the be51 il can be noiwithsranding our limited human and other resources., fifteen properties will be selected from our market rented propertie5 and put Into a ring-fenced portfolio. They will be managed as investment propertie5 and will provide a vital income stream 10 be used for our charitable purposes,. we will continue to Invest in learning and development for both our trustee5 and staff. The programme for siaff is tailored 10 suppori Ihe Year 4 Plan. The Trusiees, pro8ramme has rhree caiegories of learning and development.. generallpoliticalleconornic matters,. mailers specific to MMHS.. personal skills and competencies. mmhs.org.uk 'Jstee¥ Fleport ano Financial Slatemenis 2019120 Risk Management Risk is an everyday pari of charitable aciivily. Managing il effeciively is essential If MMH5 is 10 achieve its key objeciives and safeguard ils funds and Jssets. Our risk managemeni framework has been designed to suppori inforffled decision makin8. 11 is reviewed regularly. Risks are identified, assessed and managed by the Senior Managerllenl Team and discussed and reviewed with our TrLJsrees who have ultimare responsibility for approval. We are committed 10 managing risks in five distinct areas.. siraiegic governance finance property operational In each area, we identify our top five risks. A comprehensive review of our Combined Risk Register was undertaken in response ID the pandemic. Adjusrmenis were made 10 the register5 to reflect risks associaied wich Ihe pandemic. Our siaff ream discuss the known risks facing MMHS regularly. The Senior Managemeni Team sel aside lime 10 focus on new and developing risks They also use scenario planning 10 ideniify extreme yet possible risks and opportunities Ihat are not usually considered in regular risk management. We are very aware of the risks that will need to be managed in the post-pandemic era, as Ihe UK eniers what we anticipate will be a very difficult recovery phase. Here are Ihe lop risks in each of (he five areas referred to above, and details of (he miligarion we have in place.. STRATEGIC Declinii?g i?umber of Mini5rerial Residents (including pondemic effects on numbers). There has been a steady decline since 2008 from a peak of 923 hoLJseholds 10 c735 now. Given the Church's Irajeclory for Presbyters and Deacons in seNice, Ir is reasonable to plan for a coniinued steady decline and even a marked drop off. Miiigaiion Ihe CEO is in regular conversation with the Church,. 5irategic Plan for 2017-2022 addresses this drop in numbers., numbers are being monitored for any acceleration of decline. GOVERNANCE Foilure to ensure the Boord hus the correct bolance of skills. It may becoffle difficLJlr 10 recruit Iruslees for o voluntary position where a high level of ski115 and experience are reqLJired ro oversee a complex housing charity. There Is a need to ensure existing Irustees underiake learning and developmeni. mmhs.org.uk Trustees, Rewrt and Financial Statemenis 2019120 Miligaiion Vice Chair has primary responsibility for skill sel analysis and training, working with the CEO and Chair 10 devise and implement a programme of trainin& undertake carefully crafted recruitmeni proce55es and appointmenrs targeting skills needed. FINANCE L(Fck of budgetary control &financiol reportingfoilure. MMHS loses control of the budget and accounting process, leading 10 over/under spend resulting in inaccurate andlor insufficient information produced lo manage Ihe business appropriately. Miiigation formalised annual and monthly accounring process followed,. financial monitoring monthly accounis and wriiien reports 10 explain figures., regular Finance Deparimenl team and Senior Management Team meeiings. PROPERTY Properly repair. Propenies not kepi in a good srare of repair, causing resident and repLJtarional risk. Lack of knowledge of properry condition dLJe 10 insufficieni inspeclior). Pandemic impact on abilily to repair and maintain. Miligaiion mainienance of accuralÈ properly records., robust repairs and mainrenance policies,, Property Team KPI targeis,. periodic inspeciion of properties lif delayed, visit as soon as possible),. a comprehensive Asset Management Strategy IAMSI. OPERATIONAL CyDcr ond SOCiOi crime. Criminal acliviiy that involves access lo our network and Systems, either internal or exiernal in origin generated by tech, social engineering andlor physical presence meihods of initiation is an ever-present risk to MMHS. The pandem￿( has elevated this risk as staff have changing work patterns. Mi118ation patching and update policy,. security sy51ems installed and tesied regularly", adhererlce to our Accepiable Use Policy and other policies, for example home working policie5,' co-operative and collaborative relationship with our IT services provider,. regular awarene55 ra15ing activity at team meeiings., physical building security. mmhs.org.uk rJ5teeg' Report and FinancialStaiemeni$ 2019120 Financial Review OVERVIEW The opening financial staiements of MMHS are reporied for the 17-month period from S April 2019 to 31 Augusi 2020. Total income for the period was £7.9m. Of this amount, revenues generai&d froffl renial income 51ream amounted to £5.1 m. Donation5 amouniing 10 £234k were received from Individuals, churches and circuits wiihin the Meihodist family. Legacies, bequesis and gran15 amounted to £2.274m. The net surplus derived from the sale of surplus properiies amounted lo £233k. Interest income recewed from cash deposits amounted 10 £57k. Despiie Ihe unceriainry in the markeis during 2020, dividends from funds invesied wilh Epworih Invesimeni Management Lid (wholly owned by the Central Finance Board ol rhe MeLhodist Church ICFBII were received, amouniin8 to £58k. A further unrealised gain of £40k was calculated on the invesimenis. Overall expenditure In Ihe period was £9.3m. This expenditure exceeded income by £1.3m, largely as a result of the higher depreciaiion charges of MMHS'S properiies Ihal were charged (fair value) following ils conversion 10 a company limited by guaraniee. Spend on properly maintenance and refLJrbishmeni is a substaniial investment lo keep MMHS'S properties well mainiained to a good Standard. This spend was not adversely impacted by the lockdown. The closing period balance sheet was £182m of nel assets - with £14.2m of this being represented by its unrestricted Income funds at period end. MMHS'S financial position remains strong and will provide a strong underpinning for its ongoing aciivitie5. RESERVES POLICY MMHSS reserves policy is 10 mainiain an appropriate level of reserves 10 support the operational activities of MMH5, raking into consideration the risks to which MMHS is exposed, as well as existing and projecied future levels of Income and experldiiure. The policy and Ihe fixing of Ihe required level of reserves are sel In accordance with Charity Commission guideline5 and are reviewed annually by our Tru51ee5. Our Trustees consider that operational reserves should be maintained ai six months, worth of expenditure. at 31 AugLJ512020, MMH5's ioial free reser¢es was £7.748m of which rhe ioial cash balance was £6.378m. The free reserves are equwaleni 10 14 monchs, worth of operational expenditure. INVESTMENT POLICY MMHS has the power to inves1 in such investments. securities or property a5 the TrLJ5tees may deterThine. MMH£'s investment policy stales that its objective is to produce the besi financial return within an acceptable level of risk. C3Plt31 prosèrvation is of paramount importance. 18 mmhs.org.uk Tfu*ee5'Rery)n 3no Financial St8iemenis 2019120 As al 31 Au8USt 2020, we held £2.091 m with Epworth Investment Management Ltd in a managed invesimenl porifolio, These investmenrs ère held In a combination of equiiies, fixed inierest securilies and cash. We also held jus1 over £500k with each of Virgin Money & Clydesdale and Close Brothers in dep051ts. SurplLJS cash is held in Ihe deposit fund of CFB which meets the ethical standards of the Methodist Church. During the reporting period, Inieresi rates averaged 0.70% p.a. We also hold investmeni properties. As at 31 Augusi 2020, our invesimenl properties were valued at £17.4m. 11 Is the policy and practice of the Trustees 10 use the renial income from those properties for the furtherance of the objectives of MMHS. GOING CONCERN In order to assess the appropriateness of the going concern assumption basis, the Trustees have considered MMHS'S financial posiiion, liquidiiy, unresiricied reserves, and forecasis for the foreseeable fuiure, taking into account Ihe risks to which MMHS is exposed including rhe potencial impacts of the Pandemic and Brexit, There is great uncertainly on the economic impaci of rhe pandemic. Our Trustees have concluded that the risk of MMHS being unable to continue is remote. Accordingly, the Trusiees have a reasonable expectation that MMHS will be able to continue in operation and meet its liabiliiies as they fall due for at lea5112 tnonihs from the date of signing of this report. They coniinue 10 adopt Ihe going concern basis in preparirlg the financial sialements. mmhs.org.uk 19 Ti dsieeg Report and Financial SiaiFmenis 2019120 Structure, Governance and Management The Meihodisi Minisiers, Housing Society is a charitable company limited by guarantee. Company Number Charity Number Charily Number 11929754 1186758 (England and Wales) SC050661 (Scoilandl The Board of Tru51ee5 is the body responsible for the managernenl of MMHS and the number is required to con51510f'. not less than seven but not more than fifteen,. and at any one lime no less Ihan two and no more Ihan five shall be ienanis of MMH5, Trustees are appointed for a fixed term not exceeding three years and are eligible for reappoinimeni for up to a furiher two consecutive term5 each of Ihree years. They are noi eligible for reappoir)Iment after the end of iheir third conseculive term uniil after an interval of ai leasi three years has elapsed. If Trustees consider it would be in the best interests of MMHS for a particular Trusree to continue lo seNe beyond nine consecutive years, rhe Trusrees may resolve ro reappoinr that particular Trusree for a further fixed ierm of a year. MMHS has eighi Trustees ai preseni. The Senior Management Team comprises the CEO and three Directors (Finance, Operations & Property). All of their details are set OLJt ai the end of this document. The Trustees may delegate, on such terms as Ihey Ihink fil, any of their powers or functions to any committee comprising three or more Trusiees as Ihe Trustees may appoini. The Trusiees may delegate the implemeniaiion of Iheir decisions or day.10-day management of the affairs of MMHS 10 any person or commitiee. The Board of Trustees ha5 three cornmiitees - Property, Finance & ResoLJrces, and ALJdit & Risk. They act in accordance with the term5 of reference by which powers or functions are delegated. The Board and its committees meei regularly during the year, as follow5.. The Board Properry Committee Finance & ResoLJrces Committee ALJdil & Risk Cofflmiitee March, lune, Sepiember, December March,lune, November March, ILJIY, September, December March, December ** ** The annual jolnt meeting Extra meetings are organised, if needed. 20 mmhs.org.uk Trustee¥ Reporr ènd Finarfiol siaiemernc5 2019120 The CEO is responsible for Ihe implementation of the decisions of the Trustees and the day-to-day managemeni of Ihe affairs of MMHS. She is also (he Company Secretary. Together wilh the Chair, she works to enable Ihe Board to fLJlfil its funciions. She is responsible for effective managemeni systems 10 ensure all staff have clarity about Iheir roles and objectives and have the appropriate appraisals and training to enable chem to fulfil their roles and contribute to MMHS'S strategic objectives. The requirement for Trustees 10 demonstrate effeciive governance of charities increases year on year. Our Trusiees give prioriry 10 good governance and some of the issue5 they have considered are detailed below. PUBLIC BENEFIT MMHS'S purpose, as sel OLJf in irs Articles, is to provide housing or financial assistance iowards che housing needs of Method151 Presbyters and Deacon51'minisiers'l of limited means who are in receipi of their ful Meihodisi Church pension, and also 10 various categories of persons connected to Ihe ministers. In this report, we have been pleased 10 provide full details of all Ihose who have benefitied from the charitable aciivities and objeciives of MMHS during the period for which we are reporting, 5 April 2019 to 31 Augusi 2020. We are always mindful of che Charity Commission's general guidance on public benefit whenever we review both what we are doing ai present and what we hope to do in the fuiure. ENVIRONMENTAL RESPONSIBILITIES YOLJ will have read earlier in Ihis docLJment about our commiimeni 10 greening our property portfolio. We are pleased 10 report we have even more iniliatives up and running which are improvin8 our environmental impact significantly. These include.. participating in a recycling scheme,. emailing letters and materials if at all possible rather than using the postal $5Etem', reviewing the operaiion of our offices heating and cooling system,. pursuing becoming a paperless office (insomuch as Ihat is possible in practical termsl., encouraging full use of our Board Management Software,. being careful with our travel footprint. The pandemic has led to a much-increased use of video- conferencing and we have every expectaiion Ihis will continue in Ljse, indefinitely, once the pandemic has ended. EQUALITY AND DIVERSITY We are an equal opportunities employer and employ staff from a wide variety of backgrounds, origins, experiences and cultures, We respect and valLJe people's differences in ierms of skills, experience, background, eihniciiy and gender. We believe in treating each other fairly, creating a workplace where every person has acce55 to opporiunilies 10 fully develop their potential. We also adhere to the following practices.. we are transparent., we do not tolerate any form of intimidation, bullying or h3rassment,' mmhs.org.uk 21 Tra5tees' Report and Financial siatemenis 2019120 we listen to and respect one anoiher's opinions,. we promote an inclusive CLJIILJre. STAFF REMUNERATION POLICY AND PERFORMANCE MANAGEMENT We seek to sec pay in line with the market and co this end, in 2018, we used the services of external consLJlt3nis to benchfflark to markei. Thi5 exercise will be repeated every three years and il follows Ihal rhe next review is due lo lake place Ihi5 year. In iniervening years, we give due regard 10 Ihe remuneraiion ranges recommended in the benchmarking daia, markei pressures for pariicular roles and inflationary pressures. A comprehensive package of benefits is a150 offered 10 staff Including a contribulory pension scheme, life and criiical illness insurance, generous annual leave and flexible working opiions. We suppori staff developmeni IhroLJgh a learning and developmeni programme. Performance is evaluated through a comprehensive appraisal system and includes capiuring qualiraiive and quancitaiive feedback. Targets are sel in line with siraiegic objeciives. FUNDRAISING We do noi carry out chariiable fundraising, expend resources on fundraising aciivities or engage the services of ihird parties io do so on OLJr behalf. Ai any time in the future, were we 10 undertake fundraising activiiies, we would comply with the Fundraising Standards Board regulations. DLJring the time covered by this repori, we were not registered wilh the Fundraising Regulaiof bul we review the need to do so, regularly. We are aware of Ihe Re8ulaiorfs Code of Practice and its core values. 22 mmhs.or8.uk Tru5tee5' Report and Financial Statements 2019120 Statement of Trustees, ResponsibiLities In accordance with applicable law and United Kingdom Accouniing Srandards, Ihe Trustee5 are required 10 prepare Ihe Tru51ees' Report and financial siaiemenis for each financial year which give a true and fair view of Ihe siaie of affairs of MMHS and of the income and expendilure of MMHS for that period. This is MMHS'S firsi financial year post lis conversion using Sections 112-113 of the Co-operative and Communiry Benefit 5ocieiies Aci 2014, and il runs from 5 April 2019 10 31 Augusi 2020. In preparing these financial siatemenis, the Truscees have.. selected suitable 3ccouniing policies and applied (hem consisiently., made judgemenis and esiimates that are reasonable and prudent,. followed applicable United Kingdom accouniing siandards and Charities SORP IFRS 1021,. prepared rhe financial statements on the goin8 concern basis. The Trusiees are responsible for keeping proper accounting records which disclose wilh reasonable accuracy ai any lime, the financial position of MMHS, and enable ihem 10 ensure the financial siaiemencs comply wilh applicable law. The Trustees are also responsible for 5afeguardir)g the a5se15 of MMHS and hence for takin8 reasonable sieps for Ihe preveniion and deiection of fraud and other irregularities. The Trusiees, Report on pages 3 to 23 was approved by the Board of Trustees on 11 February 2021 and signed on their behalf. Alexander Ca Qhair ol Trusiees mmhs.org.uk 23 Tr￿slee¢ Report and Financial siatemenLS 2019120 Independent Auditor's Report OPINION We have audited the financial scacements of Meihodisl Minisiers, Housing Society (the 'chari(￿ for the period ended 31 Augusi 2020 which comprise the Staiement of Financial Aciivilies, rhe Balance Sheet, the Stalemeni of Cashflows and notes 10 Ihe financial 51aiemenls, ir)cluding a SLJmmary of significani accounting policies. The financial reporting framework thai has been applied in Iheir preparaiion is applicable law and Uniied Kingdom Accouniing Siandard5. inclLJding FRS 102 'The Financial Reporting Siandard applicable in the UK and RepLJblic of Ireland" (Uniied Kingdom Generally Accepied Accounting Praclicel. In our opinion, the financial siaiements.. give a true and fair view of Ihe stale of the charitls affairs as ai 31 ALJgusl 2020 and of lis income and expenditure for (he period then ended,. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice., and have been prepared in accordance with the requirements of the Companies Act 2006. BASIS FOR OPINION We conducted our audii in accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those srandards are further described in the ALJditorfs re5ponsibililies for the audit of the financial sialemenls seciion of OLJr report. We are independent of the charily in accordance with the eihical requiremenis that are relevani io our audit of Ihe financial siaiements in the UK, ￿nCludIng the FRC'5 Ethical Standard and we have fulfilled our other ethical responsibilities in accordance wirh these requiremenis. We believe Ihat the audit evidence we have obtained is sufficient and appropriaie 10 provide a basis for OLJr opinion. CONCLUSIONS RELATING TO GOING CONCERN We have nothing 10 report in respect of the following rnatlers in relation to which the ISAS IUKI require us to report to you wheie.. the trustees, use of the going concern basis of accounting in the preparation of the financial statements Is not appropriate,. or rhe Iruslees have not disclosed in the financial siaiements any identified material uncertaintie5 that may casi significant doubt about the chariiis ability to continue to adopt the going concern basis of accounting for a period of al least Iwelve monihs from the date when the financial statements are auihorised for issue. 24 mmhs.org.uk Trustees, ReEK)rt and Finarhcial Staiements 2019120 OTHER INFORMATION The trustees are responsible for the other information. The other information comprises the information included in the Tru51ees' Report, other than rhe financial siatemenis and our audiiorfs report Ihereon. Our opinion on rhe financial staiements does not cover Ihe other Information and, excepi io the extent otherwise expliciily siaied in our report, we do noi express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is co read the other information and, in doing 50, consider whether the oiher informaiion is materially inconsisient wilh the financial sraiements or our knowledge obtained in the audil or otherwise appears to be tnaterially misstaied. If we identify stjch maierial inconsistencies or appareni maierial misstatemenis, we are reqLJired 10 deiermine wheiher Ihere is a material misslalemenr in the financial srarements or a maierial m1551alement of the other Information. If, based on the work we have performed, we conclude thai there is a maierial misslaiemerli of Ihis oiher information, we are required 10 repori Ihai fact. We have nothing to report in chis regard. OPINIONS ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006 In our opinion, based on Ihe work underiaken in the course of Ihe audit.. the information given in the Directors, Report which includes the Trustees, Report prepared for rhe purposes of company law, lor the financial period lor which che financial siaiements are prepared is consisienl with Ihe financial statements,. ènd the Direciors, Report included within the Trustees, Report has been prepared in accordance with applicable legal requirements, MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION In lighi of the knowledge and undersianding of rhe charity and ils environmeni obtained in the course of the audii, we have not Identified material misstaiemenis in the Directors, Repori included within the Trustees, Repori. We have nothing lo repori in respect of the following mailers in relation to which the Companies Act 2006 requires us io report 10 you if, in our opinion.. adequate and proper accounting record5 have not been kept, or return5 adequate for our audit have not been received from branches not visiied by us., or Ihe financial siatemenis are not in agreement with the accounting records and returns., or certain disclosures of Irusiees, remuneration specific by law are not made. or we have noi received all the informaiion and explanations we require for our audit. RESPONSIBILITIES OF TRUSTEES explained more fully in Ihe trustees, responsibilities staiernent set out on page 23, the trusiees (who are also the director5 of the charitable company for Ihe purposes of company lawl are responsible for the preparation of the financial siaiemenis and for being satlsfied thai they give a true and fair view, and mmhs.org.uk 25 IU51ees' Report and Financial s￿leMenTs 2019120 for such internal control as the trustees determine is necessary to enable rhe preparation of financial siaiements Ihar are free from material misstatemeni, whether due 10 fraud or error. n preparing Ihe financial siaiemenls, the trustees are responsible for assessing Ihe charills ability to coniinLJe as a going concern, disclosing, as applicable, mailers related 10 goin8 concern and using Ihe going concern basis ol accouniing Ljnless Ihe Irusiees eiiher intend lo liquidate the charily or to cease operations, or have no realistic alternative but 10 do so. AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS Our objeciives are 10 obtain reasonable assurance about whether the financial slaletnenis as a whole are free from material misstatemeni, whether dLJe 10 fraud or error, and 10 issue an aLJdiior's report that includes our opirnion. Reasonable assurance is a high level of assurance, but is noi a guaraniee that an audit conducted in accordance with ISA5 IUKI will always detect a marerial missrarement when li exists. Misstatements can arise from fraud or error and are considered material If, Individually or In the aggregate, they could reasonably be expected to influence the economic decisions of users taken on ihe basis of Ihese financial siatements. A further description of our respon5ibiliiies for the audit of the financial 51aiementS 15 located on the Financial Reporting Council's websiie al ww.frc.org.Lsklaudiiorsresponsibiliiies. This description forms part of our auditols report. USE OF THE AUDIT REPORT This report is made solely to rhe ch3ritsls members as a body in accordance with Chapier 3 of Parl 16 of the Companies Aci 2006. Our audil work has been underiaken so thai we rnighi slate lo Ihe charilsls members those mailers we are required 10 state 10 Ihem in an auditor's reporr and lor no oiher purpose. To the fullest extent permiiied by law, we do noi accept or assume responsibilily to anyone other than the chariiy and the charills members as a body for our aLJdil work, for this report, or for Ihe opinions we have formed. Nlcola Wakefleld Isenlor Statutory Audltor) for and on behalf of Mazars LLP Charlered Accounian15 and Siaiulory Auditor 2nd Floor, 6 Suiion Plaza, Sutton Court Road, Sutton, SM14FS Date.. 31 March 2020 26 mmhs.org.uk Irusreeg Repffi and Finaniial 5taiernent5 2019120 Financial Statements INCOME AND EXPENDITURE ACCOUNT FOR THE PERIOD ENDED 31 AUGUST 2020 17 month perlod ended 31 August 2020 £000 Note Income Voluniary income Invesimenr income Income from chariiable acliviiies Realised nei gain on sale of propercies 2.508 1.803 3.412 233 7,956 Expendlture Raising fLJnds Wellbeing Maintenance of exisiing properries Purchase and sale of properries 133 128 8,546 519 9,326 Operaring (Deficit) for the year 11,3701 Statement of Total Recognlsed Galns and Losses (Deliciil for rhe yeai 11,3701 Statement of Total Unrecognised Galns and Losses Ui Irecobiiiiseo gain on fixed a55et InvesLITien 40 11,3301 mmhs.org.uk 27 'ru51e￿, ReptyT ènd Financial StaterFEnt5 2019120 STATEMENT OF FINANCIAL ACTIVITIES FOR THE PERIOD ENDED 31 AUGUST 2020 Unresiricied funds Restricted fund5 Total funds 17 month period ended 31 August 2020 2020 2020 Noie £000 £000 £000 Income from: Donations, legacies and grancs Charitable activiiies Investments Gain on disposal of properties 2,508 3,412 1,803 233 2,508 3,412 1,803 233 Total 7,956 7,956 Expenditure on: Raising funds 4.1 133 133 Charitable activities Wellbeing Maintenance of existing properiies Purchase and sale ol properiies 128 8,546 519 128 8,546 519 Total 9.326 9,326 Net Income before revaluatlon and Investmentgalns 11.3701 11,370) Unrealised gainlllossl on fixed asset inve51meni 40 40 Net movement In funds 11.3301 {1.3301 Reconcillation of funds General ILJnds Revaluaiion reserve Equity share Investment revaluation reseNe Designatèd funds Designated fixed asset resetves Fair value adjuslmeni on transfer 10,892 11,719 10,901 11,719 1,000 64,134 96,097 1,000 64,134 96,097 Total Funds transferred from MfvTHS (Co-operative & Community Benefit Socieiyl on 5 April 2019 183,842 183,851 Total Fund5 carrled forward 182.512 182,521 28 mmhs.org.uk TrJsiees' Report and Financial SlatemenT5 2019120 BALANCE SHEET AS AT 31 AUGUST 2020 17 month5 ended 31 August 2020 £000 2020 £000 Note Fixed Assets T8iigil)le assets Programme related invesimenis Investment properties Fixed ierrn investment MMH5 equily share investment 106 157,116 17,492 2,091 50 Totalfixed (Jssets 176,855 Current assets Debiors Investments Cash ai bank and in hand 219 6,299 91 10 Toiol currenr osseis 6,609 Llabllltles Crediiors.. Amoun15 falling due within one year Nei curreni assets 19431 5,666 Nef Asse£s 182,521 The funds of MMHS Restricted income funds Unresiricted income fLJnds Unrestricted Income funds 14,246 Incomefund5 14,255 Designated fixed asset reserves Designated rent reserves Revaluarion reserve Designated equ11y share fund Equity share invesiment revalLJalion reserve 157,222 800 10,094 100 50 Totol MMHS[unds 182,521 Fthe notes on pages 3110 44 form part of these accountsl Appro d bythe Boar of Trusrees and signed on their behalf by Chair Date mmhs.org.uk 29 Iusiees, Repl￿ and Finèncièl STètemeni$ 2019120 STATEMENT OF CASH FLOWS FOR THE PERIOD ENDED 31 AUGUST 2020 17 month5 ended 31 August 2020 £000 2020 £000 Noie Net cash provided by operating activities 956 Cashflows from investin8 activities.. Invesrmeni income Purchase of MMHS EqLJily investments Purchase of COIF investments Purchase of properiies Purchase ol rangible fixed assets Proceeds from sale of properiies Residents, equily contributions received Residenis, equily contribuiions repaid 1,803 1501 15,4201 1321 4,902 587 11,0021 Nel cash provided by investing aciivitles 787 Change in cash in the reporting period 1,743 Cash transferred from MMHS (Co-operative & Community Benefit Socieiyl on S April 2019 4,635 Cash ai 31 Augusi 2020 6,378 30 mmhs.org.uk Trustees, Report and Finonckil siaiemenis 2019120 NOTES TO THE ACCOUNTS FOR THE PERIOD ENDED 31 AUGUST 2020 The Financial 5tacements have been prepared in accordance wiih applicable accounting standards. The particular accounting policies adopted are described below.. 1 ACCOUNTING POLICIES al Bosis of preporotion On 5 April 2019 the Irade and asseis of Ihe Merhodisi Ministers, Housing Society (Co-operative & Communiiy Benefii Socieiyl were Iransferred ro tho Methodis1 Minis(ers' Housing Society Iincorporatedl. As a resuli of Ihis Iransaciion Ihe opening financial statemen15 of MN4HS are reporied from 5 April 2019 10 31 Augusi 2020. The crustees consider that it 15 appropriate for these accounts 10 be prepared on rhe going concern basis given the level Df properties and reserves held. bl Accotjniing Convenrion The financial staiefflents have been prepared Ljnder the historic cosi convention, as modified by the revaluarion of land and buildin8s, and in accordance wilh Ihe Siaiement of Recommended Practice, ISORPI, 'Accounring and Reporting by Charities.. Statement of Recommended Practice" applicable in the UK and ftepublic of Ireland IFRS 1021 leffeclive 1 January 20151 Charities SORP IFRS 10211 and Companie5 Aci 2006. The principal accountin8 policies adopted Ir) the preparation of Ihe financial siaiemenis are sei out below. cl Accouniingfor Fixed Assefs Land and buildings are shown al cost less depreciation of rhe buildings, Where there is evidence of Impairment fixed assets are wriiien down 10 Iheir recoverable amount. No depreciation is provided for on freehold land. The principal annLJal rares used for assets are.. Properties.. Office equipment '. 2% strai8hi line 25% straight line dl VGluation of Properties At Ihe dare of incorporaiion, properties were included in the accounts ai fair value and Ireated as deemed cost. A ratio of 113 land and 213 building cosis was taken as itte splil between the tWD component5. The building costs were depreciated ai 2% annually from the dale of incorporaiion. The equity share of the properties held by tenant5 15 valued a5 a percentage of the valualion of the properties. An adjustment Is made lo adjust the acquisiiion cosi of rhe equity 10 equal the percentage of Ihe valuaiion of ihe properties. The amouni Df Ihe adjustment is offset against the depreciation charge sei againsi Ihe total values of Ihe properiies. el Vuluation of Inve5¢ment Propertie5 Properiies held lor the purpose of generating income are considered to be invesiment properties and are held at fair value. External valuation5 are conducted al regular intervals with an inrernal review in intermediate years. These properries are let on short rerm arrangements so thai they are available for fLJILJre reiiring rnini5ters. The value of the properties will be regularly reviewed In order to ideniify any permanent Impairment. fl VolueAdded Tax rhe work of MMHS is classified a5 exempt or non-business aclivilies for rhe purpose of Value Added Tax MMHS is unable to reclaim the Value Added Tax, which it suffers on purchases. Expenditure in these financial statements is shown inclusive of Value Added Tax paid. mmhs.org.uk 31 Iru5tee5' RepDrt and Financ￿1 St8ierDent52019120 gl Income Income is recognised in the period in which MMHS is enticled to receipt and Ihe amoLJnl can be measured wich reasonable ceriainiy. Income is deferred only when the charity has to fulfil conditions before becoming enliiled lo it or where Ihe donor has specified that the Income is to be expended in a fLJture period. In accordance with this policy, legacies are included when MMHS is advised by Ihe personal represeniaiwe of an eslale that payment will be made or property transferred and rhe amount involved can be qLJaniified. h) Expendiiure and ba515 of ollocation of costs Expendiiure is included when incurred. The majority of costs are direccly aiiributable ro specific activities. Certain shared cosis are apportioned to activiiies in furtherance of Ihe objec15 of the charity. Staff costs and office costs are allocated in the same proporiion as directly aiiribuied siaff cosrs. il Fund Accounting Funds held by MMHS are either,. Unrestricted general funds - these are funds, which can be used in accordance wilh the chariiable objects al the discretion ol the trustees. Designated funds - these are funds set aside by the Irusiees our of Ljnreslricied general furids for specific fuiure purposes or projects. Reslricied fLJnds - Ihese are funds rhar can only be used for particular restricted purposes within Ihe objects of the charity. Resirictions arise when specified by the donor when funds are raised for particular restricted purposes. Revaluation resepie - these funds represent ihe revaluation gains on che properries Iransferred to invesimeni properties from functional fixed assei5. Further explanaiion of Ihe nature and purpose of each fund is included in the notes lo the financial slalemenis. il Planned rt40intenance Expenditure To show the full costs incurred on maintainin8 properties, planned maintenance cost5 are included Ihe Statement of Financial Activities and are not capitalised to the balance sheet. kl Copiiolisarion MMHS ha5 capilalised parl of the c05t of refurbishments. The basis of the amounr capilalised is the lower of costs incurred and Ihe difference between Ihe fflarkel value before and after refurbishment. 11 Pension scheme MMHS operated a defined benefit pen510n schetne with the Meihodisc Church up to May 2019. A defined contribution scheme and an auto enrolfflenl Scheme are a150 operated with Scottish Widows. The assets of the schemes are invested and managed independentw of the finances of MMHS. Pension costs are assessed in accordance with the advice of an Independent qualified actuary Costs inclLJde the regular cost of providing benefits, which It is Intended should remain a SLJbsianiiolly level perceniage of curreni and expected future earnings of the employee5 covered. Variaiions from rhe regular pension costs are spread evenly Ihrough the 5taiement of financial activities over Ihe average remainirlg serlqce live5 of current efflployees. ml Liquid Resource5 The liquid resources of MMHS consist of cash invested in deposit accounts with the Central Finance Board of the Methodist Church, which can be accessed on demand. During Ihe period cash is also held on f1xed term deposits with Close Broihers Limited and Virgin Money plc and cash In Its H58C curreni account. n) Allocotion of salory ond sUPPOrt Costs Salary and SLJppori cosis are allocated between expenditure headings on the basis of staff time and 32 mmhs.org.uk TfU$lÈ￿, Report and Financ￿1 statements 2019120 the number of staff working on departmenial aciivities. Governance cosis are allocated in line with the support costs. 2 TRANSFER OF ASSETS On 5 April 2019, all asseis and activiiies of the Melhodisi Ministers, Housing Society Ico-operaiive & Community Benefit Society) were transferred 10 the Meihodisi Ministers, Housing Socieiy lincorporatedl. At incorporaiion Ihe funciional properties were included In the accounis at fair valuo usin8 a desktop meihod of valu31ion approved by the auditor of MMHS. Investment properties were included in the accounts at value5 Using the Land Registry Index. Book value £000 Revaluatlon £000 Falr Value 1000 Tangible fixed assets Programme relaied Invescmenis Invesimeni properiies Investments (fixed & current assets) Debtors Cash Creditors 123 64,011 16,892 6,589 1,188 94 11,1431 123 160,108 16,892 6,589 1,188 94 11,1431 96,097 Total 87,754 96,097 183.851 3 TOTAL INCOME 3.1 Voluntary Income 17 month period ended 31 August 2020 £000 Grants Fund lor support for PreSb￿er5 and Deacons 35 35 Le8acle$ Legacies received in the year Legacies regarded as receivable 1,259 1,259 Donatlons Disirict conlributions General donations Donated facilities 116 118 234 BequeSt￿GIfted Properties Bequests received In Ihe year Gifted properly regarded as receivable 980 980 Voluntary Income 2,508 mmhs.org.uk 33 Tiustee5' keport and FIDancièl StatemeDt5 2019120 3.2 Investment income 17 month period ended 31 August 2020 £000 Unrestrlcted funds Inierosi receivable on deposits Market rents receivable Dividends 57 1,688 58 1,803 3.3 Income from charltable actlvltles 17 month period ended 31 August 2020 £uuu Charitable renis receivable 3,412 Rental analy51s No Charitable ministerial residents Market rent ienanis Vacant units 736 145 37 918 3.4 GaSn on dlsposal of propertles 17 month perlod ended 31 August 2020 £000 Gain5 on sale of properties IL05sIIGain on reimbLJrsemenl of equity 391 11581 233 4 TOTAL EXPENDITURE 4.1 Analysis of expendlture Summary 17 month perlod ended 31 August 2020 £000 Staff costs Support costs Direct costs £000 £000 £000 Ra151ng fund5 Wellbeing Mainienance of existing properties Purchase and sale of properiies 133 128 8,546 519 9,326 74 38 31 445 174 688 21 40 7,255 14 7,330 57 846 331 1,308 34 mmhs.org.uk Tru5tees' Report and Financ&4 *atemefits 2019120 4.2 Analysls of salary costs 17 month perlod ended 31 August 2020 £000 Salaries Employers naiional insurance coniribuiions Employers pension & phi contributions 1,047 106 155 1,308 The full-time equivalent number of employee5 in 2020 was 16. The head count in 2020 was 17. One employee's remuneration was in Ihe range £80,000 ro £89,999 for the 17 month period. One employee's remuneraiion was in the range £100,000 10 £109,999 for the 17 monih period. One employee's remuneraiion was in the range £140,000 to £149,999 for Ihe 17 monih period, The key tnanagement personnel of MMHS comprise of the CEO. Finance Direcior, Operaiions Director and Properly Oirecior. The former Properly Seréices Director lefi on 51712019. Toial benefits paid including thai of the former Properry Services Direcror was £421,923. The total employerfs pension conlribui￿0n of rhe key management personnel including thar of former Property Service5 Director wa5 £45,170. 4.3 Analysls of support costs 17 month perlod Raislng ended 31 August Funds 2020 £000 Wellbeing Maintenance Purchase and of exlstln8 sale of properties properties LUUU LOOO £000 £000 Siaff training Sialf recruitment Temporary staff Travel & subsistence Office renr, rares & services Office adminisiraiion costs Professional charges Depreciaiion io 32 85 457 69 25 20 55 295 45 21 116 26 20 Support Costs 688 39 30 174 mmhs.or8.uk 35 ILtsiees' REp)rl and Financ￿1 Scalements 2019120 4.4 Analysls of dlrect costs 4.4,1 C05t5 of raising voluntary income 17 month period ended 31 August 2020 £oJJ Publicity & advertising Direct costs 21 21 4.4.2 Charltable actlvltSes . malntenance of exlstlng propertles 17 month period ended 31 August 2020 Refurbishmeni Refurbishments capitalised Planned work Repairs & rnainienance Bril Gas & Electrical Coniraci Electrical Remedial Work Electrical Testing Programme External painting Primary 1,338 15401 1,429 137 288 198 41 226 3,117 Properly depreciation Property insurance Leasehold charges Empiy property costs Management fees Grants to lenan15 Other Governance Secondary 3,123 97 100 165 581 42 24 4,138 7,255 36 mmhs.org.uk S Tru5tees' ReFKlrt and financial S13tements 2019120 4.4.3 Charltable actlvltles- purchase and sale of propertles 17 month perlod ended 31 August 2020 £000 Loan interest Professional charges Applicants, interview costs Governance costs Direci costs 4.4.4 Governance costs allocated to charitable activities 17 month perlod ended 31 August 2020 LOUO 19 Auditor's remunerarion - audit Board & trustees, expenses Direci cosis 27 The Board and tru51ee5' expenses of £8,498 is made up of travel and subsistence expenses amouncing 10 £4,304 which were reimbursed 10 11 of MMHS Irusiees,, board expenses of £4,194. No trustee of che Board received any remuneration in the period. 4.4.5 Charltable actlvltles- wellbelng 17 month perlod ended 31 Au8USt 2020 LUOO Wellbeing - general expenditure Wellbeing - repairs and mainienance Direct cosis 29 40 5 FIXED ASSET INVESTMENTS 17 month perlod ended 31 Au8USt 2020 Looo 2,037 318 13041 40 2,091 Fair value ai 05 April 2019 Purihase of invesiments Sale of Investments Gain on revaluation Fair value at 31 Aug 2020 Represented by.. CFB UK equity fund CFB overseas fund CF8 corporate bond fLJnd CFB shori fixed interest fund 716 747 334 294 Toial investments 2,091 Investments are held in accordance with the MMHS'S investrnent policy detailed in the Trusiees, Report. mmhs.org.uk 37 Iru51eLs' Repixt and Financial StateThEfits 2019QO 6 PENSION COSTS MMHS is a pariicipaiing employer of the Pension and Assurance Scheme for Lay Employees of Ihe Meihodisi Church I'ihe Scheme"), a defined benefil scheme, FRS102 Dlsclosures A valuation of che Scheme for the purposes of these disclosures was carried our at 31 August 2020 by an independent acruary. The major assumptions used by the actuary, together wilh Ihose used in the previous year, were.. 31 August 2020 %pa 31 Au8USt 2019 %pa Discount rate RPI inflation rate CPI inflation rate Rale of Increase in pensionable earnings Rare of increase in pension payments 2.113.015.0 2.2/3.1 IS.0 The Major caregories of the Scheme's assets as a percentage of the ioial Scheme assets, were as follows'.- 31 August 2020 pa 31 August 2019 %pa Equiiies Corporaie bonds Properly Cash Liabilily Driven Invescment Annuilies 20 20 The following amounts ai 31 Augusi 2020 were measured in accordance with the requirements of FR5102. £ million 81.5 95.4 113,91 Total marker value of assets Present value of scheme liabilities Nei Defined Ber)efil AssetllLiabilityl The Scheme operated by the Meihodisl Church is a defined benefit scheme. However, MMHS is not the only participating employer ir) the Scheme and it is unable to determine It5 Share of the underlying asseis nd liabilities on a consisieni and reasonable basis. This is becaLJse contribuiions paid inio the Scherne are not invesied separaiely 10 rhose paid by other employers pariicipating In the Scheme. As such no separate fund is identifiable in respect of MMHS. In order 10 determine a curreni fund for each pariicipating employer, it would be necessary 10 separaiely accouni lor coniribulions, benefil payments and investment returns for each participating employer. Under the ierms of Ihe Scheme, the asset5 and liabilitie5 are pooled amor)g51 the participating ernployer5. If a pariicipaiing Èmployer were lo cease 10 participate rhen th31 employer would be required to pay a debt lo fully fund Iheir share of Ihe Scheme's liabilities MMHS would not be liable for anoiher employer's debi bul has an Oplion to assume responsibility under an apportionrneni arrangemeni. 38 mmhs.org.uk Tr￿ee5. Rewrt and financ￿1 Statements 2019120 The Scheme closed to new enrranis and ihe fuiure accrual of pensionable service wilh effect from 31 May 2019 and iherefore regular employer contributions ceased on this dale, A full aciuarial valuation of the scheme was carried out at 1 5eplernber 2017 by Ihe Scheme AciLJary. The valuation disclosed a past service deficit of £3.5m. It was agreed Ihai Ihe shorifall revealed ai 1 September 2017 should be eliminated by contributions to be paid from the Pension Reserve Fund of the Meihodisl Church lo Ihe Scheme as follows.. £650,000 per annum each August, siariing August 2018 up to and including ALJ8USt 2022., and Between £0 and £447,000 each Decefflber, siariing December 2018 up 10 and including December 2022. The precise amount payable will be determined by the Scheme Actuary having regard 10 Scheme experience, The èmployers, share of the cosi of providing future service benefits on 1 September 2017 amounted to 34.6% of Pensionable Earnings. This was higher than Ihe employers, contribution rate of 24.196 of Pensionable Earnings thai was paid up to 31 May 2019. However, this shortfall was incorporated into the Pension ReseNe Fund core coniributions and therefore employer coniribuiions remained ai 24.1 % of Pensionable Earnings uniil 31 May 2019, when Ihe Scheme closed 10 fulure accrual. An update of Ihe funding position as at I September 2019 was carried our by the Scheme ActLJary. Thi5 showed that rhe pasi service deficil had increased from £3,5m to £8,8m. The nexi full actuarial valuarion is currenily being carrled oul as at 1 September 2020. 7 TANG18LE ASSETS 31 August 2020 £000 Office equipment Cost ar 5 April 2019 Addition in period Cost at 31 AugLJSt 2020 213 32 245 Depreciation 31 5 April 2019 Depreciation in rhe period 90 49 139 Net book value at 31 Au8usI 2020 106 mmhs.or8.uk 39 'rusie￿, RÈptyT ènd Fin3nci31 s￿lemen￿$ 2019120 8 PROGRAMME RELATED INVESTMENTS 8.1 Land and buildings Freehold £000 Leasehold 31 August 2020 £000 £000 Cost Balance at 5 April 2019 Revaluaiion at incorporaiion Addiiions in period Capiralisarion of refurbishments Disposals In period Transfer co Invesimenc properties Transfer from inve51meni propertie5 Balance at 31 August 2020 83,037 83,032 4,420 534 14,4511 13,6221 2,743 165,693 9,879 3,497 462 92,916 86,529 4,882 539 15,1351 13,6221 3,022 179,131 16841 279 13,438 less Depreciotion Depreciation at S April 2019 Oepreciaiion removed al incorporation Depreciation for disposals Depreciation re invesiments Depreciaiion for period Depreciation at 31 August 2020 16,848 116,8481 1251 1661 2,950 2,859 1,516 11,5161 161 18,364 118,3641 1311 1661 3,188 3,091 238 232 Balance ai 31 August 2020 162,834 13,206 176,040 No of units ai 5 April 2019 No of acquisiiions No of disposals No of units at 31 August 2020 840 19 1231 836 85 925 21 1281 918 Isi 82 The assets under this heading comprise 918 units of accommodation which include 145 units which are occupied by market rent lenanis who have securily of tenure as ai che 31 Augusi 2020. Note 1 c describes how the properiies are valued. The revaluation reserve is included within General Resepies, in accordance with the Charities SORP, 40 mmhs.org.uk Irusiees. fteporE and Finèncial Sratemenis 2019120 8.2 Equity sharing scheme The equity share scheme enablès charitable ministerial residents to acquire a financial interest in their reiiremeni homes. Th15 inierest is determined by rhe amount contribuied by a minisierial residerit in proporiion 10 Ihe value of Ihe property at acouisilion. At the period-end 425 MMHS minisierial residents had an equity share. 31 August 2020 £000 No Al Cost Balance ai S April 2019 Revaluarion at incorporaiion Additions in period Deletions in period Balance ar 31 August 2020 438 14,687 4,650 S87 11,0021 18,922 1291 425 Less Depreciaiion adjuslmenl Balance ai 5 April 2019 Revaluation ai incorporatlon Arnnual adiusimeni 8alance ai 31 August 2020 4,146 14,1461 121 121 Combined 18,924 Total Pro8ramme related Investments 31 August 2020 £uou Land and Buildin85 Equity Sharing Scheme 176,040 118,9241 157,116 Investment Propertles 2020 £000 Ai 5 April 2019 Transfer from tangible fixed assets Tran51er to tangible fixed assets Balance carried forward 16,892 3,622 13,0221 17,492 mmhs.org.uk 41 iustees, Reptrt ano Financial Statements 2019r20 9 DEBTORS 31 August 2020 £000 SLJndry debiors Prepaymenis & accrued Income Legacies Gifted & bequeathed properties Equity 23 124 72 219 10 INVESTMENTS 31 August 2020 £000 Resrricred Funds COIF Inc Shares Deposits with Ceniral Finance Board 12 Llnrestricied Funds Deposits wirh Central Finance Board Other invesimenis Toial Invesiments 5,235 1,051 6,299 11 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 31 Au8USt 2030 £000 Creditors Accruals Loarls . Interest free Deferred income Total creditors 287 654 943 42 mmhs.org.uk 7rustee< Report and Financial Statefflenis 2019120 12 RESTRICTED FUNDS 12.1 The Piggott Trust 31August 2020 Loou Charities Official Investmeni Fund income shares In September 1960 the Charity Comrllissioner5 approved and established a Scheme whereby the Charity of Mary Piggoll and the specified endowmeni rhereof could be adtninisiered and managed under Ihe iiile of the Piggoii Trust by the Mechodisi Min151ers' Housing Society. The capital sum 15 invested wilh Ihe Central Finance Board of the Methodisi Church and the Charitie5 Official Inveslmeni FLJnd and in accordance wilh rhe Scheme the income is applied ro defray Ihe cost of repair and upkeep of (he property belonging to MMHS and siluaied ai 47 Gainsford Road, Clacton, Essex. 13 UNRESTRICTED FUNDS Transfer Falr value Movements from adjustment In the perlod MMHS £'ooo Transfers between funds f'cicio At 31 August 2020 £'ooo £'ooo £000 Revaluation reserve Fixed asset reserve Rent reserve Equiiy share reserve Equity share revaluation reserve 11,719 64,134 1,000 11,6251 130091 12001 100 50 10,094 157,222 800 100 50 96,097 Total deslgnated funds 76.853 96.097 (4.6841 168.266 General funds 10,892 11.3301 4.684 14,246 Total 87.745 96.097 11.330) 182.512 Designated funds are those earmarked by the trustees for specific purposes or projects as noted in the above designaiions. 14 CAPITAL COMMITMENTS At the year end MMHS had no commitment5 to purchase properties. mmhs.or8.uk 43 Tiusie¥' Report FinarKial 5181emenr$ 2019120 15 OPERATING LEASE COMMITMENTS ComfflilrNen15 under operaling leases are as follow5.. 31 August 2020 £000 Payments within one year Expiring between two five years 152 342 494 16 RELATED PARTIES There are Iwo Board members, Revd C New and Revd A Taylor who are ministerial residents of Mf4hHS. Their tenancies are on normal ierms. 17 CASH FLOW INFORMATION 17.1 Reconclllatlons of net Income to net cash flow from operatlng actlvitles 17 month perlod ended 31 August 2020 Lll(10 Net Income Adjustmenis for., Ilncreasel In debiors Increase in creditors Nei realised loss on sale of properties Nei realised Igainl on reimbursemeni of equity Depreciation Investment income 11,3311 12191 938 391 11581 3,138 1,8031 Net cash provided by operating activities 956 mmhs.or8.uk I rusiee¥ Report and Fin3ncièl SI￿@ments 2019120 Administrative DetaiLs TRUSTEES. OFFICERS AND PROFESSIONAL ADVISERS Trustees Mr Alexander Campbell OBE (Choir) ' Revd Alan Taylor (Vice Chc7irJ121131 Revd Jacquie Evans (Choir of Audit Jnd Risk Committee)131 Mr Chris Firth fchoir of FinJnce Committee) 121 Mr Paul Reynolds (Choir of Propety Commirree) 111 Mrs Sharon Green (oppoinfed 18 June 2020)111 M5 Catherine Hasiings (resigned 6 March 2020) Revd Glynn Lisier (died 7April 2020) Revd PaLJI Marlin (oppointed 4 December 2019) 131 Revd Charles New 111 Mfs R05 Peedle fresigned 17 5eprember 2019) Revd Richard Teal (resigned 2 October 2020) 11 l Member of the Property Commlttee 121 Member of rhe Finance & Resources Commitiee 131 Member of the Audii & Risk Committee EK.officio member of all Committees Sensor Management Team CEO Mrs Atawa Aryee Mr Richard Hawkins Finance Director Operations Director Property Director Mr Paul Gillam Prlnclpal Bankers HSBC The Peak, 333 Vauxhall Bridge Road, Vicioria, London SW1 V I EJ Audltor Mazars LLP Times House, Throwley Way, Sution, SLJrrey SM14IQ mmhs.org.uk 45 r￿tee< Retx>rt and FinaTrcial Siateménis 2019120 HS Methodisi ty1inisier5' Housing Society Contart Detalls Place of Business and noimal mailing address Methodisi Ministers, Housing Socieiy 109 Baker Streei, London W1 U 6RP admin@mmhs.org.uk Re8lStered Off1ce Meihodist Minisiers, Housing Society Methodist Church House, 25 M3rylebone Road, London NW1 5JR mmhs.org.uk