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2024-08-31-accounts

Company Number.. 11929754 iy Trustees, Report and Financial Statements 2023-2024 MM HS

Trustees’ Report and Financial Statements 2023/24

Contents

About us 2
Message from our Chair and CEO 3
Strategic Report 4
More on our mission 4
Achievements and performance 4
1Management of our properties 4
2Wellbeing support and initiatives 5
3Collaborative endeavours and engagement with key stakeholders and supporters5
Plans for the Future 6
Risk Management 7
Financial Review 9
Structure, Governance and Management 10
Statement of Trustees’ Responsibilities 13
Independent Auditors’ Report 14
Financial Statements 18
Notes to the Financial Statements 22
Administrative Details 41

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Trustees’ Report and Financial Statements 2023/24

About us

Who We Are

Methodist Ministers’ Housing Society (‘MMHS’) was founded in 1948. For over seventy-five years, we have been providing quality housing on charitable terms for those who qualify for our help. Our mission statement is set out below.

Our Vision

‘There was not a single person in need among them’. (Acts 4:34)

Our Mission

To meet the housing and housing-related needs of retired Methodist Ministers of limited means, their spouses, widows and widowers – and to offer support for their wellbeing in the key areas of mobility and independence.

Our Core Values

We have a Christian ethos of which we are proud, and it underpins who we are and what we do. Our concern is to show high standards of care in all we do, and to be professional both as individuals and as an organisation.

Our Plans For 2022-2027

In a later section of this report, ‘Plans for the future’, we set out some of the plans arising out of our Strategy for 2022-2027.

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Message from our Chair and CEO

As an organisation committed to reflective learning, we understand the benefit of ‘ looking back’, and the preparation of an Annual Report provides an ideal opportunity to do so. To paraphrase Soren Kierkegaard , ‘life may be lived forward, but it is understood backward’ . This practice, of course, can be applied equally to corporate entities as to individuals. We value looking back at what actually unfolded, but when we do so, it’s always from a position of pressing forward.

Looking back over the year 2023-24, it has been heartening to note the progress we made against our targets, in yet another challenging geo-political and economic environment. We faced many challenges – continued supply chain problems, the effects of inflation, and recruitment struggles to name but three. Each presented opportunities to learn from our experiences, focus on our long-term financial resilience, and upskill and develop our people.

We know life is hard for many of our ministerial residents, not least because of food and fuel inflation, but also because of the difficulties of older age. We were delighted to appoint a Housing and Wellbeing Officer to help us crystallise our ambitions to put wellbeing at the heart of our mission. Our focus is enabling mobility and assisting our ministerial residents keep their independence.

In furtherance of our commitment to look after both our properties and the people living in them, we commissioned a comprehensive Condition and Energy Survey of all our properties, and added an Occupation Survey asking ministerial residents six key questions on their mobility. The answers will really help us get to the nub of need.

We were pleased to introduce a new housing and finance management system, in our pursuit of becoming an organisation that is ‘ agile, mobile and with access to real-time data and information’ . We are embracing technological change in order to drive digital transformation. We know digital transformation will benefit MMHS immensely. We need to adapt continually to the constantly changing environment in which we work. As a digital enterprise – our aspiration – we know our mission will be delivered better and we expect the experience of our beneficiaries to improve.

We hope you enjoy reading the remainder of our Trustees’ Report and Financial Statements. Together, they tell our ongoing story of significant charitable impact.

Alan Taylor, Chair

Mairi Johnstone, CEO

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Trustees’ Report and Financial Statements 2023/24

Strategic Report

More on our mission

MMHS operates in the United Kingdom, the Isle of Man and the Channel Islands. We provide safe, warm and comfortable homes and associated services across this wide geographical area.

As well as providing for those who retire at usual retirement age, we also look after those who retire early on health or compassionate grounds. We care, too, for widows, widowers and dependants of ministers who die in active service.

We have an equity sharing scheme , whereby retiring ministers take an equity interest in the MMHS property in which they live. We also have an equity sharing fund whereby MMHS takes an equity share in a property owned by both retiring and retired ministers.

Wellbeing support is very important to us and has been given a particular strategic focus. We are committed to assisting our ministerial residents with their mobility needs as much as we can and to enabling them to continue living independently in their own home for as long as possible. A key element of this is ensuring that our properties are suitably adapted for use, and are also fully accessible.

In summary, whilst we are a housing provider, we are also focused on the occupants of our houses, our ministerial residents. Our mission is as much people-centred as it is property-centred.

Achievements and performance

1 Management of our properties

We began the year with 894 properties. During the year, we sold 41 properties, purchased 19 and received two as bequests.

At the end of August 2024, we had 874 properties in our portfolio: 672 were occupied by our ministerial residents, 101 by market rent tenants and 101 also were unoccupied. Empty properties are usually always kept to a minimum but during the year, the number of unoccupied properties was unusually high due to implementation of our plan to sell our market-rented portfolio.

We were pleased to provide housing for 18 new ministerial residents. We transferred six ministerial households.

At the end of August 2024, 375 ministerial residents had equity shares with a total fair value of £17,739,000.

Our policy to sell our market-rented portfolio properties together with our policy to sell ministerial properties which are no longer required for ministers, worked alongside our policy to purchase for newlyretired ministers and those we were able to transfer.

We maintain and repair our properties regularly. More than 975 jobs were completed relating to the maintenance and repair of our properties. These included 18 bathrooms, 31 driveway repairs and 90 external decorations. We also refurbished 7 kitchens, and replaced 48 boilers and 16 sets of windows and doors.

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Trustees’ Report and Financial Statements 2023/24

In addition to maintaining and repairing our properties, we routinely inspect them to ensure compliance with

electrical and gas safety standards. Electrical inspections and associated remedial works are administered and undertaken by HES Fire Protection Limited. Gas-Elec Group are our national supplier for annual gas compliance checks. As at the end of August 2024, for our ministerial properties, our CP12 compliance was 98.3% and our EICR compliance was 100%.

We delivered 3 refurbishment projects over the year. This number is significantly less than previous years and reflects our move to selling and buying as mentioned above.

Whether maintaining, repairing, undertaking planned works, or refurbishing, we work hard to ensure valuefor-money (‘VFM’). Traditionally, VFM has been defined around the ‘3Es’, effectiveness, efficiency and economy, in other words, how resources are managed to in order to achieve desired results.

2 Wellbeing support and initiatives

A key part of our strategy is enabling our ministerial residents to remain in their own homes for as long as possible, if this is what they wish to do. We were able to deliver this part of our strategy, in part through the provision of direct grants for building adaptations such as grab handles, hand rails, and external ramps. These items are usually put in a property following a request from a ministerial resident or a member of their family or community.

An increasing dependence on aids and adaptations is a sensitive matter. Most people are proud and do not like to admit that they need help. There can also be a stigma in having adaptations fitted. People do not like to admit they are losing their independence, and patience and understanding are often required to encourage ministerial residents to apply for grants.

During the year, a total of 13 mobility improvements were carried out at a cost of just over £66k. The new post of Housing and Wellbeing Officer (‘HWO’) has transformed what MMHS is able to offer by way of wellbeing support. We are already evidencing benefits, not only in terms of emotional and practical outcomes for applicants, ministerial residents and their families, but in terms of greater efficiencies and effectiveness. We are also focused on the new opportunities we have, to strategically – and practically – link our wellbeing initiatives to our safeguarding responsibilities.

The priorities for the HWO are delivery of MMHS’s housing services (which in themselves enhance wellbeing) and enabling residents to live in their MMHS homes independently for as long as possible.

We developed our Wellbeing Fund under five categories of support – general expenditure, IT, maintenance and repair, rent subsidising and mobility. This demonstrates the width of coverage and, in time, the fund will grow to enable yet more support.

3 Collaborative endeavours and engagement with key stakeholders and supporters

There is much we could say under this heading, but we will focus on a few key points.

We are in regular contact with fellow charities in the Methodist family in order to offer mutual support. We also collaborate with other faith-linked housing providers, primarily to share experiences, but also to share knowledge.

Our main stakeholder group, our ministerial residents, are the subject of most of our objectives, as is to be expected. Commissioning our Condition, Energy and Occupation Survey (‘CEO Survey’) was a significant investment. It will enable us to implement quite a number of the strategic objectives in our Strategy for 2022-2027 – and beyond.

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One such objective is caring for and improving our housing stock to the best of our ability. We wish to ensure that all our houses are warm and comfortable, wind and watertight, and suitably adapted for use in later years. We are also mindful of what lies ahead for MMHS with regard to expected changes to EPC requirements and the decarbonisation agenda. Our CEO Survey will provide data which will inform present and future compliance requirements, budgets, investment plans, maintenance and repair requirements, and wellbeing plans.

We are enormously grateful for the generosity shown to us by our supporters – also a key stakeholder group – through gifts, donations, bequests or legacies. We endeavour to express our heartfelt thanks at all times.

It is also important for us to have trust-embedded relationships with our service-providers. In our business dealings, we aspire, at all times, to abide by our core values – being professional as individuals and as an organisation and showing high standards of care, with everything underpinned by our Christian ethos.

Plans for the future

In 2023, we celebrated our 75th anniversary. This was a remarkable achievement of which we were proud. In no small measure, the success of MMHS can be attributed to the farsightedness of mission-hearted people who since 1948, either through their service or financial giving, have made it possible for MMHS to meet its mission.

The need for housing has been a constant since 1948. MMHS has met – and will continue to meet – the housing and housing-related needs of retiring ministers of the Methodist Church who would otherwise find it difficult, if not impossible, to purchase a property for their retirement. It is our privilege to serve those who have served so many in their ministries, and continue to do so as supernumeraries. Their ministries have farreaching impact on lives and communities.

In recent years we have expanded our present mission to include wellbeing and as we have been pleased to report, our intention is to develop wellbeing further.

However, despite all our efforts to widen and deepen our present mission, MMHS is acutely aware of the impact of the declining number of Methodist Ministers in active service. We expect the need for our services to decline markedly from the late 2020s onwards. Accordingly, we are pushing ahead with our plans to establish a new mission for MMHS, to run in parallel with our present mission.

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Trustees’ Report and Financial Statements 2023/24

Risk Management

Risk is an everyday element of charitable activity. Managing it optimally is essential to MMHS if we are to achieve our strategic objectives and safeguard our funds and assets.

Our risk management framework has been designed to support informed decision making. We are cognisant of the fact that risk is a strategic asset which we should use to unlock new opportunities. We wish to both minimise threats and maximise opportunities.

We manage risks in five distinct areas:

• Governance; • Strategic; • Financial; • Property; and • ICT and Facilities.

In each of these areas of risk, we identify our top risks.

Our Risk Register is reviewed regularly by the CEO’s Office, with a particular focus on new and emerging risks as well as new opportunities.

Individual risks are identified, assessed and managed by the owners identified in our Risk Register.

Our trustees have ultimate responsibility for statutory and governance oversight of the risks faced by MMHS. Accordingly, risk is a standing item at all Board meetings.

Here are examples of some key risks that we have identified in each of the five areas referred to above, and details of the mitigation we have in place.

Governance

Failure of our trustees to handle conflicts of interest correctly.

Conflicts of interest need to be handled carefully by all trustees. In the case of MMHS, ministerial residents can be trustees, and it is a requirement of our Articles that at least one ministerial resident is so. This places extra responsibility on the board to ensure it is acting in the best interests of MMHS.

Examples of mitigation:

Strategic

Inadequate investment strategic planning with adverse consequences for mission delivery.

Generating income in a sustainable way is of immense importance to MMHS. Our low charitable rents present operating income challenges.

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Examples of mitigation:

Financial

Failure of financial systems and processes.

It is crucial for MMHS to prioritise financial management and implement robust systems and processes to prevent and address financial mismanagement.

Examples of mitigation:

Property

Failure to understand and/or meet regulatory or statutory compliance requirements.

Non-compliance could have severe consequences and affect every aspect of MMHS’s operations - its property, people, finances – and generally, its reputation and legal liabilities.

Examples of mitigation:

ICT and Facilities

Failure to manage data properly .

It is vital for MMHS not to lose, or compromise, its data, nor violate regulations and laws, knowingly and unknowingly.

Examples of mitigation:

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Trustees’ Report and Financial Statements 2023/24

Financial Review

Overview

Income for the year ended 31 August 2024 totalled £7.9m (2023: £5.7m). Of this amount, revenues generated from the rental income stream amounted to £4.9m (2023: £4.7m).

Donations amounting to £45k (2023: £66k) were received from individual supporters, churches and circuits within the Methodist family. Legacies and grants amounted to £713k (2023: £312k). We remain extremely grateful for the continued generosity of those who value our mission.

The net surplus derived from the sale of surplus properties amounted to £1,655k (2023: £281k). Investment income from cash deposits amounted to £513k (2023: £336k); and dividends from funds invested in Epworth Investment Management Limited (EIM) long term investments yielded £61k (2023: £36k). These EIM investments are held in a combination of equities, fixed interest securities and cash. Over the 12-month reporting year, an unrealised revaluation gain of £218k (2023: loss £13k) was calculated on the EIM investments.

Total expenditure in the year was £7.6m (2023: £7.5m). The main components of the cost base were property maintenance, refurbishment, office-based operating costs, depreciation and salaries. The year finished with a surplus of £1.47m (2023: deficit of £670k).

MMHS has a strong balance sheet. The closing year balance sheet net assets were £190.2m (2023: £187.8m) – with £35.2m (2023: £28.1m) of this being represented by its unrestricted income funds at year end. We aim to maintain a stable financial position for the coming years with the aid of strengthened financial processes, reallocation of resources, and service reviews, to ensure MMHS is well positioned to serve present and future generations of beneficiaries.

Reserves Policy

MMHS’s reserves policy for the year was to hold free reserves sufficient to absorb variations in its operating surplus/deficit. Under its operating model, any such variations were likely to have arisen from unexpected expenditure demands. In the future, negative shocks to the valuation of MMHS’s investment funds are likely to the biggest drivers of variability. MMHS therefore targets holding free reserves in excess of the higher of six months’ worth of expenditure and a 20% fall in the value of its investment funds, noting this was £521k as at 31 August 2024, based on investment funds of £2.6m.

As at 31 August 2024, MMHS’s total free reserves were £15.3m (2023: £11.2m) of which the total cash balance was £13.2m (2023: £8.7m). The free reserves are equivalent to 29 months’ (2023: 21 months’) worth of expenditure. The Trustees are satisfied that the free reserves, held with the Central Finance Board on an interest bearing deposit account, will fall towards the above policy target level as MMHS’s policies and plans are implemented.

Investment Policy

The Articles of MMHS do not restrict the classes of assets that it can invest in; accordingly, it can invest in equity shares, fixed interest bonds & debt securities, commodities & precious metals, investment properties (retail and commercial), derivatives (including futures), cash and funds (of some/all of the foregoing assets).

MMHS’s investment aims are set out in its policy; it seeks to fund certain of its charitable activities, whilst also covering inflation and changes in funding mixes, at an acceptable level of risk and variability in returns. It also seeks a real return of c2.50% per annum over the long term.

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Structure, Governance and Management

MMHS is a charitable company limited by guarantee: Company Number 11929754 Charity Number 1186758 (England and Wales) Charity Number SC050661 (Scotland).

The Board of Trustees is the body responsible for the management of MMHS and the number is required to consist of:

Trustees are appointed for a fixed term not exceeding three years and are eligible for reappointment for up to a further two consecutive terms each of three years. They are not eligible for reappointment after the end of their third consecutive term until after an interval of at least three years has elapsed.

If trustees consider it would be in the best interests of MMHS for a particular trustee to continue to serve beyond nine consecutive years, the trustees may resolve to reappoint that particular trustee for a further fixed term of one year.

MMHS had ten trustees during the year. One resigned during the year. The Senior Management Team comprised the CEO and three executive directors, two for part only of the year. All details are set out at the end of this document.

The trustees may delegate, on such terms as they think fit, any of their powers or functions to any committee as the trustees may appoint. The trustees may delegate the implementation of their decisions or day-to-day management of the affairs of MMHS to any person or committee.

The Board of Trustees had one committee during the year – the Audit Committee – which acts in accordance with the terms of reference by which powers or functions are delegated. The Board met regularly during the year and this included a day conference to consider strategic matters.

The CEO is responsible for the implementation of the decisions of the trustees and the day-to-day management of the affairs of MMHS. The CEO is also the Company Secretary. Together with the Chair, the CEO works to enable the Board to fulfil its functions. The CEO is responsible for effective management systems to ensure all staff have clarity about their roles and objectives, and have the appropriate appraisals and training to enable them to fulfil their roles and contribute to MMHS’s strategic objectives.

The requirement for trustees to demonstrate effective governance of charities increases year on year. Our trustees give priority to good governance and some of the issues they have considered are detailed below.

Public Benefit

MMHS’s purpose, as set out in its Articles, is to provide housing or financial assistance towards the housing needs of Methodist Presbyters and Deacons (‘ministers’) of limited means who are in receipt of their full Methodist Church pension, and also to various categories of persons connected to the ministers. In this report, we have been pleased to provide full details of all those who have benefitted from the charitable activities and objectives of MMHS during the year, 1 September 2023 to 31 August 2024.

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We are always mindful of the Charity Commission’s general guidance on public benefit whenever we review both what we are doing at present and what we hope to do in the future.

Safeguarding

We know we have a responsibility to ensure that we don’t cause harm to anyone who has contact with us. We promote a strong safeguarding culture. We make sure that our trustees and staff are suitable persons for their roles and to that end we have robust recruitment processes, obtain references and carry out Disclosure and Barring Service (DBS) checks. We have policies in place covering bullying, harassment and whistleblowing. We have procedures in place to ensure safe handling of incidents or allegations of abuse. One of our trustees, in addition to their wider responsibilities as a trustee, is the Lead Trustee for Safeguarding and champions safeguarding accordingly.

Environmental Responsibilities / ESG

We are pleased to report we have initiatives in place which are improving our environmental impact significantly.

These include:

Equality, Diversity and Inclusion in the workforce

We are an equal opportunities employer and employ staff from a wide variety of backgrounds, origins, and cultures. We respect and value people’s differences in terms of skills, experiences, ethnicity, and gender.

We believe in treating each other fairly, creating a workplace where every person has access to opportunities to develop their potential fully.

We also adhere to the following practices:

Staff Remuneration Policy and Performance Management

MMHS’s Remuneration Policy is designed to support the achievement of MMHS’s objectives and to be consistent with our purpose and values. It provides a vehicle to articulate pay in a transparent manner and to provide equity across all roles.

We are committed to attracting and retaining the best people and as such, we aspire to pay market rates for jobs and to pay an annual cost of living award. Some posts require skills that relate specifically to the housing sector and some are more generic. Data from individual markets provides us with the ranges within which we remunerate staff at different levels.

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A comprehensive package of benefits is also offered to staff including a generous contributory pension scheme, life and critical illness insurance, annual leave and flexible working options.

We support staff and trustees’ development through learning and development programmes for each. For staff, their performance is evaluated through a comprehensive appraisal system and includes capturing qualitative and quantitative feedback. Targets are set in line with strategic objectives. For trustees, we follow the recommendations of the Charity Governance Code and seek to review board and trustee performance in a three-year cycle incorporating an external evaluation of governance.

Fundraising

Although we do not raise funds from the public, we are registered with the Fundraising Regulator. Accordingly, we are aware of the Regulator’s Code of Practice and its core values.

Our fundraising expenditure is incurred in raising funds through our investment portfolio and our investment properties, and in the management of bequests and legacies.

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Statement of Trustees’

Responsibilities

In accordance with applicable law and United Kingdom Accounting Standards, the trustees are required to prepare the trustees’ report and financial statements for each financial year which give a true and fair view of the state of affairs of MMHS and of the income and expenditure of MMHS for that period.

In preparing these financial statements, the trustees have:

The trustees are responsible for keeping proper accounting records which disclose, with reasonable accuracy at any time, the financial position of MMHS, and enable them to ensure the financial statements comply with applicable law.

The trustees are also responsible for safeguarding the assets of MMHS and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees’ report on pages 1 to 13 was approved by the Board of Trustees on 13 February 2025 and signed on their behalf by:

13 April 2025 ___________ _____ Date

Alan Taylor, Revd. Chair of Trustees

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Independent Auditors’ Report

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF METHODIST MINISTERS’ HOUSING SOCIETY

Opinion

We have audited the financial statements of Methodist Ministers’ Housing Society (the ‘charity) for the year ended 31 August 2024 which comprise the Income and Expenditure Account, the Statement of Financial Activities, the Balance Sheet, the Statement of Cash flows, and notes to the financial statements, including a summary of significant accounting policies.

The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the “Auditor’s 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 basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions 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 with respect to going concern are described in the relevant sections of this report.

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Other information

The other information comprises the information included in the Report of the trustees, other than the financial statements and our auditor’s 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 misstatements, we are required to determine whether this gives rise to a material misstatement 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the report of the trustees.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of Trustees

As explained more fully in the trustees’ responsibilities statement set out on page 13, 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 as 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 responsible for assessing the charity’s 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.

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Auditor’s responsibilities for the audit of the financial statements

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 auditor’s 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 (UK) will always detect a material misstatement when it 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 the basis of the financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.

Based on our understanding of the charity and its environment, we considered that non-compliance with the following laws and regulations might have a material effect on the financial statements: employment regulation, health and safety regulation and anti-money laundering regulations.

To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to:

We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as tax legislation, pension legislation, the Companies Act 2006, the Charities Act 2011 and the Charities Statement of Recommended Practice.

In addition, we evaluated the trustees’ and management’s incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of management override of controls, and determined that the principal risks related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, income recognition (which we pinpointed to the cut-off assertion), and significant one-off or unusual transactions.

Our audit procedures in relation to fraud included but were not limited to:

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There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of the audit report

This report is made solely to the charity’s members as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charity’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s members as a body for our audit work, for this report, or for the opinions we have formed.

Nicola Wakefield (Apr 24, 2025 15:20 GMT+1)

Nicola Wakefield (Senior Statutory Auditor) for and on behalf of Forvis Mazars LLP Chartered Accountants and Statutory Auditor 6 Sutton Plaza, Sutton Court Road, Sutton, Surrey, SM1 4FS

Date 04/24/2025

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Financial Statements

Income and Expenditure Account for the year ended 31 August 2024

Note
Income
Voluntary income
Investment income
Income from charitable activities
Realised net gain on sale of properties
2
Expenditure
Raising funds
Housing maintenance & repair
Buying & selling properties
Ministerial resident support
Equity
3
Operating Surplus/(Deficit) for the year
Statement of Total Recognised Gains and Losses
Surplus/(Deficit) for the year
Unrecognised gain on fixed asset
Investments		 2024
2023
£000
£000
1,319
742
2,339
2,018
2,555
2,665
1,655
281
7,868
5,706
151
134
6,331
6,426
398
349
413
276
310
287
7,603
7,472
265
(1,766)
265
(1,766)
1,210
1,096
1,475
(670)

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Statement of Financial Activities for the year ended 31 August 2024

Statement of Financial Activities for the year ended 31 August 2024
Note
Income from:
Donations, legacies and grants
2.1
Charitable activities
2.3
Investments
2.2
Gain on disposal of properties
2.4
Total
2
Expenditure on:
Raising funds
3.1
Charitable activities
Housing maintenance & repair
3.1
Buying & selling properties
3.1
Ministerial resident support
3.1
Equity
3.1
Total
3
Net income/(expenditure) before
revaluation and investment gains
Unrealised gains/(losses) on long
term investment
4
Tangible Fixed asset adjustment
Unrealised gain on valuation of
functional properties
7.2
Unrealised gains on valuation of
investment properties
7.2
Depreciation adjustment re
investment properties
7.1
Increase in equity share investment
revaluation reserve
Net movement in funds
Funds
Total funds brought forward
11/12
Total Funds carried forward
11/12		 Unrestricted
Restricted
Total
Total
funds
funds
funds
funds
2024
2024
2024
2023
£000
£000
£000
£000
1,319
-
1,319
742
2,555
-
2,555
2,665
2,339
-
2,339
2,018
1,655
-
1,655
281
7,868
-
7,868
5,706
151
-
151
134
6,331
-
6,331
6,426
398
-
398
349
413
-
413
276
310
-
310
287
7,603
-
7,603
7,472
265
-
265
(1,766)
218
-
218
(13)
-
-
-
(175)
929
-
929
1,239
856
-
856
1,031
78
-
78
102
46
-
46
4
2,392
-
2,392
422
187,814
9
187,823
187,401
190,206
9
190,215
187,823

All activities relate to continuing activities. There are no other recognised gains and losses. The notes on pages 23 to 41 form part of these financial statements.

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Trustees’ Report and Financial Statements 2023/24

Balance Sheet as at 31 August 2024
2024
Note
£000
Fixed Assets
Tangible assets
6
10
Programme related investments
7
140,913
Investment properties
7
33,864
Long term investment
4
2,605
MMHS equity share investment
127
Total fixed assets
Current assets:
Debtors
8
433
Investments
9
12,686
Cash at bank and in hand
535
Total current assets
13,654
Liabilities
Creditors: Amounts falling due within
one year
10
(957)
Net current assets
Net Assets
The funds of MMHS
Restricted income funds
11
Unrestricted income funds
Income funds
Designated fixed asset reserves
12
Designated rent reserves
12
Revaluation reserve
12
Designated equity share fund
12
Equity share investment revaluation
reserve
12
Total MMHS funds		 Balance Sheet as at 31 August 2024
2024
Note
£000
Fixed Assets
Tangible assets
6
10
Programme related investments
7
140,913
Investment properties
7
33,864
Long term investment
4
2,605
MMHS equity share investment
127
Total fixed assets
Current assets:
Debtors
8
433
Investments
9
12,686
Cash at bank and in hand
535
Total current assets
13,654
Liabilities
Creditors: Amounts falling due within
one year
10
(957)
Net current assets
Net Assets
The funds of MMHS
Restricted income funds
11
Unrestricted income funds
Income funds
Designated fixed asset reserves
12
Designated rent reserves
12
Revaluation reserve
12
Designated equity share fund
12
Equity share investment revaluation
reserve
12
Total MMHS funds		 Company Number: 11929754
2024
2023
2023
£000
£000
£000
24
144,973
31,504
2,341
81
177,518
178,923
795
8,570
132
9,497
(597)
12,697
8,900
190,215
187,823
9
9
35,278
28,082
35,287
28,091
140,923
144,997
-
600
13,844
13,970
34
84
127
81		 Company Number: 11929754
2024
2023
2023
£000
£000
£000
24
144,973
31,504
2,341
81
177,518
178,923
795
8,570
132
9,497
(597)
12,697
8,900
190,215
187,823
9
9
35,278
28,082
35,287
28,091
140,923
144,997
-
600
13,844
13,970
34
84
127
81		 Company Number: 11929754
2024
2023
2023
£000
£000
£000
24
144,973
31,504
2,341
81
177,518
178,923
795
8,570
132
9,497
(597)
12,697
8,900
190,215
187,823
9
9
35,278
28,082
35,287
28,091
140,923
144,997
-
600
13,844
13,970
34
84
127
81
433
12,686
535		 795
8,570
132
13,654
(957)		 9,497
(597)
190,215 187,823
9
35,278		 9
28,082
35,287
140,923
-
13,844
34
127		 28,091
144,997
600
13,970
84
81
190,215 187,823

Balance Sheet as at 31 August 2024

The financial statements were approved by the Board of Trustees and signed on its behalf by:

13 April 2025 ___________ _____ Date

Alan Taylor, Revd. Chair of Trustees

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Trustees’ Report and Financial Statements 2023/24

Statement of Cash flows for the year ended 31 August 2024

Note
Net cash (used in) operating activities
16
Cashflows from investing activities:
Investment income
Purchase of MMHS Equity investments
Purchase of COIF investments
Purchase of long-term investments
Purchase of properties
Purchase of tangible fixed assets
Proceeds from sale of properties
Residents’ equity contributions received
Residents’ equity contributions repaid
Net cash provided by investing activities
Change in cash in the year
Cash brought forward at 1 September 2023
Cash at 31 August 2024
Reconciliation of cash balances:
Cash at bank
Investment cash
9
Cash at 31 August 2024		 2024
2024
2023
2023
£000
£000
£000
£000
(1,137)
(1,235)
2,339
2,019
(46)
(4)
(1)
-
(46)
(92)
(6,084)
(4,543)
(5)
-
10,131
3,600
248
226
(882)
(539)
5,654
667
4,517
(568)
8,689
9,257
13,206
8,689
535
132
12,671
8,557
13,206
8,689

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Trustees’ Report and Financial Statements 2023/24

Notes to the Financial Statements for the year ended 31 August 2024

The Financial Statements have been prepared in accordance with applicable accounting standards. The particular accounting policies adopted are described below.

1 Accounting Policies

a) Basis of preparation

The trustees have assessed whether the use of the going concern assumption is appropriate in preparing these financial statements. The trustees consider that it is appropriate for these accounts to be prepared on the going concern basis given the level of properties and reserves held. The charity has adequate financial resources and is able to manage the business risks. The planning processes, including financial forecasts and projections, take into consideration the prevailing economic climate and its potential impact on the various sources of income and planned expenditure. The trustees have looked at least twelve months ahead and are satisfied that the charity has adequate resources to continue in operational existence for the near future and there are no material uncertainties that call into doubt the charity’s ability to continue in operation.

b) Accounting Convention

The financial statements have been prepared under the historic cost convention, as modified by the revaluation of land and buildings, and in accordance with the Statement of Recommended Practice, (SORP), “Accounting and Reporting by Charities: Statement of Recommended Practice”, applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) – Charities SORP (FRS 102)) and Companies Act 2006.

The principal accounting policies adopted in the preparation of the financial statements are set out below.

c) Accounting for Fixed Assets

Land and buildings are shown at cost less depreciation of the buildings. Where there is evidence of impairment fixed assets are written down to their recoverable amount. No depreciation is provided for on freehold land. The principal annual rates used for assets are:

Properties: 2% straight line Office equipment: 25% straight line

d) Valuation of Properties

At the date of incorporation properties were included in the accounts at fair value and treated as deemed cost. A ratio of 1/3 land and 2/3 building costs was taken as the split between the two components. The building costs were depreciated at 2% annually from the date of incorporation.

The equity share of the properties held by tenants is valued as a percentage of the valuation of the properties. An adjustment is made to adjust the acquisition cost of the equity to equal the percentage of the valuation of the properties. The amount of the adjustment is offset against the depreciation charge set against the total values of the properties.

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Trustees’ Report and Financial Statements 2023/24

e) Valuation of Investment Properties

Properties held for the purpose of generating income are considered to be investment properties and are held at fair value. External valuations are conducted at regular intervals with an internal review in intermediate years. These properties are let on short term arrangements so that they are available for future retiring ministers. The value of the properties will be regularly reviewed in order to identify any permanent impairment.

f) Value Added Tax

As the work of MMHS is classified as exempt or non-business activities for the 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.

g) Income

Income is recognised in the period in which MMHS is entitled to receipt and the amount can be measured with reasonable certainty. Income is deferred only when the charity has to fulfil conditions before becoming entitled to it or where the donor has specified that the income is to be expended in a future period. In accordance with this policy, legacies are included when MMHS is advised by the personal representative of an estate that payment will be made or property transferred and the amount involved can be quantified.

The treatment of void properties has been changed so that the void adjustment is calculated on the basis of lost market rent rather than calculating the loss of income based on the rent paid by ministers. This does not affect the overall result but increases income and void losses.

h) Expenditure and basis of allocation of costs

Expenditure is included when incurred.

The majority of costs are directly attributable to specific activities. Certain shared costs are apportioned to activities in furtherance of the objects of the charity. Staff costs and office costs are allocated in the same proportion as directly attributed staff costs.

i) Fund Accounting

Funds held by MMHS are either:

Unrestricted general funds - these are funds, which can be used in accordance with the charitable objects at the discretion of the trustees.

Designated funds - these are funds set aside by the trustees out of unrestricted general funds for specific future purposes or projects.

Restricted funds - these are funds that can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor when funds are raised for particular restricted purposes.

Revaluation reserve – these funds represent the revaluation gains on the properties transferred to investment properties from functional fixed assets.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

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Trustees’ Report and Financial Statements 2023/24

j) Planned Maintenance Expenditure

To show the full costs incurred on maintaining properties, planned maintenance costs are included in the Statement of Financial Activities and are not capitalised to the balance sheet.

k) Capitalisation

MMHS has capitalised part of the cost of refurbishments. The basis of the amount capitalised is the lower of costs incurred and the difference between the market value before and after refurbishment.

l) Pension Costs

MMHS operated a defined benefit pension scheme with the Methodist Church up to May 2019. The assets of the scheme are invested and managed independently of the finances of MMHS. Pension costs are assessed in accordance with the advice of an independent qualified actuary. Variations from the regular pension costs are spread evenly through the statement of financial activities over the average remaining service lives of current employees.

MMHS also operates a defined contribution workplace pension plan with Scottish Widows. Pension contributions payable for the year in respect of the pension plan are recognised as an expense and as a liability, after deducting any amounts already paid.

m) Liquid Resources

MMHS’s liquid resources consist of cash invested in deposit accounts with the Central Finance Board of the Methodist Church, which can be accessed on demand. During the year cash was also held in its HSBC current account.

n) Allocation of salary and support costs

Salary and support costs are allocated between expenditure headings on the basis of staff time and the number of staff working on departmental activities. Governance costs are allocated in line with the support costs.

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Trustees’ Report and Financial Statements 2023/24

2 Total income

2.1 Voluntary income

2.2 Investment income
Interest receivable on deposits
Market rents receivable
Dividends
Grants
Fund for Support for Presbyters and Deacons
Legacies
Legacies received in the year
Donations
District contributions
General donations
Bequests/Gifted Properties
Bequests received in the year		 2024
2023
£000
£000
513
336
1,765
1,646
61
36
2,339
2,018
2024
2023
£000
£000
66
74
713
312
42
38
3
28
495
290
1,319
742

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Trustees’ Report and Financial Statements 2023/24

2.3 Income from charitable activities

Charitable rents receivable
Rental analysis
Charitable Ministerial Rents
Market rent tenants
Vacant units
2.4 Gain on disposal of properties
Gains on sale of properties
(Loss) on reimbursement of equity		 2024
2023
£000
£000
2,555
2,665
No.
No.
672
685
101
162
101
47
874
894
2024
2023
£000
£000
2,107
509
(452)
(228)
1,655
281

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Trustees’ Report and Financial Statements 2023/24

3 Total Expenditure

3.1 Analysis of expenditure

Summary
Raising funds
Housing maintenance & repair
Buying & selling properties
Ministerial resident support
Equity		 2024
Staff
costs
Support
costs
Direct
costs
2023
£000
£000
£000
£000
£000
151
70
54
27
134
6,331
574
440
5,317
6,426
398
221
171
6
349
413
186
144
83
276
310
163
126
21
287
7,603
1,214
935
5,454
7,472

3.2 Analysis of salary costs

Salaries
Employers national insurance contributions
Employers pension & phi contributions		 2024
£000
955
92
167
1,214		 2023
£000
809
79
147
1,035

The full-time equivalent number of employees in 2024 was 19.2 (2023: 20.6). The head count in 2024 was 21 (2023: 22)

Employees receiving remuneration excluding pension contributions in excess of £60,000: 2024 2023

excess of £60,000: 2024 2023
£60,001 - £70,000
£70,001 - £80,000
£80,001 - £90,000
£110,001 - £120,000
£130,001 - £140,000		 No.
1
1
1
-
1
4		 No.
1
-
2
1
-
4

The key management personnel of MMHS comprised the CEO, Finance Director, Operations Director and Property and People Services Director. Total benefits paid were £307,933 (2023: £266,623). The total employer’s pension contribution of the key management personnel was £46,032 (2023: £49,787).

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Trustees’ Report and Financial Statements 2023/24

3.3 Analysis of support costs

Staff training
Staff recruitment
Temporary staff
Travel & subsistence
Office rent, rates &
services
Office administration
costs
Professional charges
Depreciation
Wellbeing costs
Support costs		 2024
Raising Funds
Housing
maintenance &
repair
Buying & selling
properties
Ministerial
resident support
Equity
2023
£000
£000
£000
£000
£000
£000
£000
5
1
1
1
1
1
9
60
3
29
11
9
8
3
23
1
11
4
4
3
74
25
1
12
5
4
3
25
81
5
38
15
12
11
67
221
13
104
40
34
30
212
496
29
234
91
76
66
190
20
1
9
4
3
3
27
4
-
2
-
1
1
-
935
54
440
171
144
126
607

3.4 Analysis of direct costs

3.4.1 Costs of raising voluntary income

Publicity & advertising
Direct costs		 2024
£000
27
27		 2023
£000
22
22

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Trustees’ Report and Financial Statements 2023/24

3.4.2 Charitable activities – housing maintenance and repair

Refurbishment
Refurbishments capitalised
Planned work
Repairs & maintenance
Gas & Electrical Contract
Electrical Remedial Work
Electrical Testing
Programme
External painting
Primary
Property depreciation
Property insurance
Leasehold charges
Empty property costs
Management fees
Other including
governance
Secondary
haritable activities – buying and selling of properties
Governance costs
Direct costs		 2024
£000
1
-
1,226
241
276
134
36
251
2,165
2,302
100
98
282
351
23
3,156
5,321
2024
£000
6
6		 2023
£000
608
(386)
1,369
177
210
126
38
202
2,344
2,336
83
61
95
447
147
3,169
5,513
2023
£000
14
14

3.4.3 Charitable activities – buying and selling of properties

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Trustees’ Report and Financial Statements 2023/24

3.4.4 Governance costs allocated to charitable activities

Auditors remuneration – audit
Board expenses
Direct costs		 2024
£000
26
5
31		 2023
£000
25
36
61

The Board expenses of £5,334 (2023: £36,331) is made up of travel and subsistence expenses amounting to £2,844 (2023: £2,878) which were reimbursed to 6 board members (2023: 8); and board expenses of £2,489 (2023: £6,054) and trustee search and appointment costs of £nil (2023: £27,339). No member of the Board received any remuneration in the current year or prior year.

3.4.5 Charitable activities – ministerial resident support

Wellbeing – general expenditure
Wellbeing – repairs and maintenance
Wellbeing – mobility
Wellbeing – rent
Governance costs
Direct costs
activities – equity
Professional charges
Governance costs
Direct costs		 2024
£000
5
15
51
7
5
83
2024
£000
16
5
21		 2023
£000
6
14
-
3
10
33
2023
£000
16
10
26

3.4.6 Charitable activities – equity

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Trustees’ Report and Financial Statements 2023/24

4 Long Term Investments

Fair value at 1 September 2023
Purchase and sale of investments
Gain/(Loss) on revaluation
Fair value at 31 Aug 2024
Represented by:
Equity fund
Overseas fund
Government bond funds
Corporate bond fund
Climate Stewardship fund
UK Property fund
Other
Short term fund
Cash
Total investments		 2024
£000
2,341
46
218
2,605
1,365
208
260
287
198
77
129
65
14
2,605		 2023
£000
2,262
92
(13)
2,341
1093
791
350
330
314
70
-
36
16
2,341

Investments are held in accordance with MMHS’s Investment Policy referred to in the Trustees’ Report.

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Trustees’ Report and Financial Statements 2023/24

5 Pension Costs

5.1 MMHS operates a defined contribution workplace pension plan with Scottish Widows for all qualifying employees. The contribution rate for the year varied between 10% and 16% depending on the employee’s contribution, which is a minimum of 5%.

5.2 MMHS is also a participating employer of the Pension and Assurance Scheme for Lay Employees of the Methodist Church (‘the Scheme’), a defined benefit scheme.

FRS102 Disclosures

A valuation of the Scheme for the purposes of these disclosures was carried out at 31 August 2024 by an independent actuary. The major assumptions used by the actuary, together with those used in the previous year, were:

31 August 2024 31 August 2023
% pa % pa
Discount rate 5.0 5.2
RPI inflation rate 3.3 3.4
CPI inflation rate 2.7 2.8
Rate of increase in pensionable earnings 2.7 2.8
Rate of increase in pension payments 2.2 / 3.2 / 5.0 2.2 / 3.3 / 5.0

The major categories of the Scheme’s assets (excluding money purchase AVCs) as a percentage of the total Scheme assets, were as follows:

ets, were as follows:
31 August 2024 31 August 2023
% %
Equities - -
Corporate bonds - 45.6
Property - -
Cash 0.4 19.3
Liability Driven Investment - 30.7
L&G Annuities 4.6 4.4
Aviva Annuities 95.0 -

The following amounts at 31 August 2024 were measured in accordance with the requirements of FRS102.

Total market value of assets
Present value of scheme liabilities
Net overfunding in Scheme		 £
million
54.2
55.1
(0.9)

MMHS is not the only participating employer in the Scheme and it is unable to determine its share of the underlying assets and liabilities on a consistent and reasonable basis. This is because contributions paid into the Scheme have not been invested separately to those paid by other employers participating in the Scheme. As such no separate fund is identifiable in respect of MMHS. In order to determine a current fund for each participating employer it would be necessary to separately account for contributions, benefit payments and investment returns for each participating employer.

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Trustees’ Report and Financial Statements 2023/24

Under the terms of the Scheme, the assets and liabilities are pooled amongst the participating employers. If a participating employer were to cease to participate then that employer would be required to pay a debt to fully fund their share of the Scheme’s liabilities. MMHS would not be liable for another employer’s debt but has an option to assume responsibility under an apportionment arrangement.

The Scheme closed to new entrants and the future accrual of pensionable service with effect from 31 May 2019 and therefore regular employer contributions ceased on this date.

A full actuarial valuation of the Scheme was carried out at 1 September 2023 by the Scheme Actuary. The valuation disclosed a past service deficit of £676,000. The shortfall revealed at 1 September 2023 was eliminated by contributions paid from the Pension Reserve Fund of the Methodist Church to the Scheme as follows:

The next full actuarial valuation is due to be carried out as at 1 September 2026.

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Trustees’ Report and Financial Statements 2023/24

6 Tangible assets

Office equipment
Cost at 1 September 2023
Addition in the year
Disposal in the year
Cost at 31 August 2024
Depreciation at 1 September 2023
Depreciation in the year
Depreciation at 31 August 2024
Net book value at 31 August 2024		 2024
2023
£000
£000
316
319
5
-
-
(3)
321
316
292
232
20
60
312
292
10
24

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Trustees’ Report and Financial Statements 2023/24

7 Programme related investments

7.1 Land and buildings

Cost
Balance at 1 September 2023
Additions in year
Capitalisation of refurbishments
Disposals in year
Transfer to investment properties
Transfer from investment properties
Balance at 31 August 2024
less
Depreciation
Depreciation at 1 September 2023
Depreciation for disposals
Depreciation re investments
Depreciation for the year
Depreciation at 31 August 2024
Balance at 31 August 2024
Balance at 31 August 2023
No of units at 1 September 2023
No of acquisitions
No of disposals
No of units at 31 August 2024		 Freehold
Leasehold
2024
2023
£000
£000
£000
£000
161,489
11,248
172,737
174,782
6,084
-
6,084
4,157
-
-
-
386
(7,156)
(1,256)
(8,412)
(3,348)
(2,639)
(190)
(2,829)
(3,840)
2,043
275
2,318
600
159,821
10,077
169,898
172,737
8,818
617
9,435
7,335
(329)
(84)
(413)
(135)
(73)
(5)
(78)
(102)
2,157
145
2,302
2,336
10,573
673
11,246
9,434
149,248
9,404
158,652
163,303
152,671
10,632
163,303
167,447
815
79
894
896
21
-
21
13
(34)
(7)
(41)
(15)
802
72
874
894

The assets under this heading comprise 874 (2023: 894) units of accommodation which include 101 (2023: 162) units which are occupied by market rent tenants who have security of tenure as at the 31 August 2024. Note 1d describes how the properties are valued. The revaluation reserve is included within General Reserves, in accordance with the Charities SORP.

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Trustees’ Report and Financial Statements 2023/24

7.2 Equity sharing scheme

The equity sharing scheme enables ministerial residents to acquire a financial interest in their retirement homes. This interest is determined by the amount contributed by a ministerial resident in proportion to the value of the property at the relevant date. At the year-end, 375 ministerial residents had an equity share. (2023: 394).

At Cost
Balance at 1 September 2023
Additions in year
Disposals in year
Balance at 31 August 2024
less
Depreciation adjustment
Balance at 1 September 2023
Annual adjustment
Balance at 31 August 2024
Combined
Total Programme related investments
Land and Buildings
Equity Sharing Scheme
Investment Properties
Balance brought forward
Transfer from tangible fixed assets
Transfer to tangible fixed assets
Revaluation of properties
Balance carried forward		 No.
394
2
(21)


2024
£000
18,230
248
(882)		 2023
No.
£000
402
18,543
3
226
(11)
(539)		 2023
No.
£000
402
18,543
3
226
(11)
(539)
375 17,596
100
44
144
17,740
2024
£000
158,653
(17,740)
140,913
2024
£000
31,504
2,829
(2,318)
1,849
33,864		 394
18,230
42
58
100
18,330
2023
£000
163,303
(18,330)
144,973
2023
£000
25,994
3,840
(600)
2,270
31,504
100
18,330
2023
£000
163,303
(18,330)
144,973
2023
£000
25,994
3,840
(600)
2,270
31,504

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Trustees’ Report and Financial Statements 2023/24

8 Debtors

9 Investments

Sundry debtors
Prepayments & accrued income
Bequests receivable
Restricted Funds
COIF Inc Shares
Deposits with Central Finance Board
Unrestricted Funds
Deposits with Central Finance Board
Total investments		 2024
£000
18
39
375
433
2024
£000
14
1
15
12,671
12,686		 2023
£000
72
390
332
795
2023
£000
13
1
14
8,556
8,570

10 Creditors: amounts falling due within one year

Creditors
Accruals
Loans – interest free		 2024
£000
591
364
2
957		 2023
£000
53
541
3
597

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Trustees’ Report and Financial Statements 2023/24

11 Restricted funds

The Pigott Trust

Charities Official Investment Fund income shares 2024
£000
9
9		 2023
£000
9
9

In September 1960, the Charity Commissioners approved and established a Scheme whereby the Charity of Mary Pigott and the specified endowment thereof could be administered and managed under the title of the Pigott Trust by MMHS.

The capital sum is invested with the Central Finance Board of the Methodist Church and the Charities Official Investment Fund and in accordance with the Scheme the income is applied to defray the cost of repair and upkeep of the property belonging to MMHS and situated at 47 Gainsford Road, Clacton, Essex.

12 Unrestricted funds

Revaluation reserve
Fixed asset reserve
Rent reserve
Equity share reserve
Equity share
revaluation reserve
Total designated
funds
General funds
Total		 At
1 September
2023
Revaluation
/ Other
Movements
in the year
Transfers
between
funds
At 31
August
2024
£000
£000
£000
£000
£000
13,970
(126)
-
-
13,844
144,997
-
-
(4,074)
140,923
600
-
-
(600)
-
84
-
(50)
-
34
81
46
-
-
127
159,732
(80)
(50)
(4,674)
154,928
28,082
998
1,524
4,674
35,278
187,814
918
1,474
-
190,206

Designated funds are those earmarked by the trustees for specific purposes or projects as noted in the above designations.

13 Capital commitments

At the year-end MMHS had no commitments to purchase properties.

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Trustees’ Report and Financial Statements 2023/24

14 Operating lease commitments

Commitments under operating leases are as follows:

Commitments under operating leases are as follows:
Payments within one year
Expiring between two–five years
More than five years		 2024
2023
£000
£000
139
50
450
640
-
38
589
728

15 Related parties

There were two trustees, Revd A M Taylor and Revd Dr M Cole (until 6 December 2023), who were ministerial residents of MMHS. Their tenancies were on normal terms.

16 Cash flow information

Reconciliations of net income/(expenditure) to net cash flow from operating activities

Net income/(expenditure)
Adjustments for:
Decrease in debtors
Increase/(decrease) in creditors
Net realised (gain) on sale of assets
Unrecognised (gain) on investments and fixed assets
Depreciation
Investment income
Net cash (used in) operating activities		 2024
£000
1,475
362
360
(2,107)
(1,210)
2,322
(2,339)
(1,137)		 2023
£000
(670)
1,204
(552)
(499)
(1,096)
2,396
(2,018)
(1,235)

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Trustees’ Report and Financial Statements 2023/24

17 Comparative Statement of Financial Activities for the year ended 31 August 2023

Income from:
Donations, legacies and grants
Charitable activities
Investments
Gain on disposal of properties
Total
Expenditure on:
Raising funds
Charitable activities
Housing maintenance & repair
Buying & selling properties
Ministerial resident support
Equity
Total
Net (expenditure)/income/before
revaluation and investment gains
Unrealised (loss) on long term
investment
Tangible fixed asset adjustment
Unrealised gain on valuation of
functional properties
Unrealised gain on valuation of
investment properties
Depreciation adjustment re
investment properties
Increase in equity share
investment revaluation reserve
Net movement in funds
Funds
Total funds brought forward
Total Funds carried forward		 Unrestricted
Restricted
Total
funds
funds
funds
2023
2023
2023
£000
£000
£000
742
-
742
2,665
-
2,665
2,018
-
2,018
281
-
281
5,706
-
5,706
134
-
134
6,426
-
6,426
349
-
349
276
-
276
287
-
287
7,472
-
7,472
(1,766)
-
(1,766)
(13)
-
(13)
(175)
-
-
1,239
-
1,239
1,031
-
1,031
102
-
102
4
-
4
422
-
422
187,392
9
187,401
187,814
9
187,823

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Trustees’ Report and Financial Statements 2023/24

Administrative Details

Trustees, officers and professional advisers

Trustees Mrs Kate Andrews ** (appointed 19.10.23) Mr Chris Appleton (appointed 19.10.23) Revd Alan Taylor (CHAIR) * Mr Alexander Campbell OBE Revd Dr Marion Cole Revd Jacqueline Evans (resigned 19.10.23) Mrs Sharon Green Mrs Abigail Labbett (appointed 19.10.23) Revd Paul Martin * Mr Richard Myers (appointed 19.10.23)

** Chair of the Audit Committee

Senior Management Team Mrs Mairi Johnstone CEO Mr Richard Hawkins Operations Director Mrs Atawa Aryee Finance Director (until 09.10.23) Mr Aiden Johnson-Hugill Property and People Services Director (until 30.06.24) Mrs Rachel Dawson Director of Strategy and Planning (from 01.01.25)

Principal Bankers HSBC

The Peak, 333 Vauxhall Bridge Road, Victoria, London SW1V 1EJ

Auditor

Forvis Mazars LLP

6 Sutton Plaza, Sutton Court Road, Sutton, Surrey SM1 4FS

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Trustees’ Report and Financial Statements 2023/24

Contact Details

Registered Office and Place of Business: 109 Baker Street, London W1U 6RP

Email and switchboard admin@mmhs.org.uk 0203 848 6020

Company Number 11929754 Charity Numbers 1186758 (England and Wales), SC050661 (Scotland)

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