**Charity number: 211454**
## **RETIRED MISSIONARY AID FUND**
## **TRUSTEES' REPORT AND FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 30 JUNE 2022**
## **RETIRED MISSIONARY AID FUND**
## **CONTENTS**
||Page|
|---|---|
|**Reference and administrative details of the charity, its trustees and advisers**|1|
|**Trustees' report**|2 - 6|
|**Independent auditors' report**|7 - 9|
|**Statement of financial activities**|10|
|**Balance sheet**|11|
|**Notes to the financial statements**|12 - 20|
## **RETIRED MISSIONARY AID FUND**
## **REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 30 JUNE 2022**
|**Trustees**|R Bennett, Chair|
|---|---|
||A Jessop, Vice Chair|
||R Herbert, Secretary|
||J Lower, Treasurer|
||A B Griffiths, Assistant Treasurer|
||J Mitchell|
||D Henderson|
||E J Noble|
||S Simmons (resigned 4 November 2021)|
||N Turner|
||W S Downs|
||E Barr|
||P Phillips|
||A Smith|
||L Greig|
|**Charity registered**
**number**
211454
**Principal office**
64 Callow Hill Road
Alvechurch
Birmingham
B48 7LR
**Independent auditors**
Griffin Stone Moscrop & Co
Chartered Accountants
21-27 Lamb's Conduit Street
London
WC1N 3GS
**Bankers**
CAF Bank Limited
25 Kings Hill Avenue
Kings Hill
West Malling
ME19 4JQ
Kingdom Bank Limited
Ruddington Fields Business Park
Mere Way
Ruddington
Nottingham
NG11 6JS
**Stockbrokers**
J M Finn & Co Limited
25 Copthall Avenue
London
EC2R 7AH||
Page 1
## **RETIRED MISSIONARY AID FUND**
## **TRUSTEES' REPORT FOR THE YEAR ENDED 30 JUNE 2022**
The trustees present their annual report together with the audited financial statements of the Retired Missionary Aid Fund (the charity) for the year ended 30 June 2022. The trustees confirm that the annual report and financial statements of the charity comply with the charity's governing document, the Charities Act 2011 and the provisions of the Statement of Recommended Practice (SORP) "Accounting and Reporting by Charities" applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) published on 16 July 2014.
## **Objectives and activities**
## **a. Policies and objectives**
The objects of the charity are to assist retired missionaries from Christian Brethren Assemblies who are in necessitous circumstances. Such missionaries have usually spent all or large proportions of their working lives in serving God overseas without any salary or other fixed means of support. They have looked in faith to God to supply their needs. In furtherance of the objects the trustees seek:
(a) To develop and maintain a family atmosphere among the beneficiaries, who are known as the 'RMAF Family'. (b) To stimulate the interest of UK Christian Brethren Assemblies and individuals in the work of the charity. (c) To make monetary grants and gifts in kind for the assistance of retired missionaries who are within the objects.
(d) To co-operate with other charities, voluntary bodies and statutory authorities operating in furtherance of the objects or of similar charitable purposes and to exchange information and advice with them.
In setting objectives and planning for activities, the trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.
## **b. Activities undertaken to achieve objectives**
The activities of the charity include:
(a) Receiving gifts for the work of the charity from supporters and disbursing them to retired missionaries in the family in accordance with the decisions of the previous annual meeting. At the year-end there were 167 retired missionaries in the family, the majority of whom were in receipt of regular financial support from the charity.
(b) Printing a quarterly Prayer and Newsletter. This is sent to Christian Brethren Assemblies in the United Kingdom and to family members and individual supporters. The last two groups also receive a more detailed quarterly Family News Digest. It is clear from subsequent correspondence that the Digest fulfils its aim in generating a sense of belonging to a family of former missionaries commended to their work from Christian Brethren Assemblies.
(c) Giving to each retired missionary who joins the family an information brochure on the work of the charity and on financial benefits which may be obtainable from other sources, e.g. state benefits such as pension credit.
(d) Giving a food hamper, where acceptable, at Christmas to family members resident in the UK, and marking birthdays by a gift of shopping vouchers or, where appropriate, flowers.
(e) Making regular contact with family members through telephone calls and visits by trustees.
(f) Promoting the work of the charity at missionary conferences and other like events when invited to do so.
Page 2
## **RETIRED MISSIONARY AID FUND**
**TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2022**
## **Objectives and activities (continued)**
## **c. Grant-making policies**
The trustees have established eligibility criteria for recipients of grants, relating to such matters as their length of missionary service, ill health, and age. For those who receive grants, the trustees also have to ascertain that they are “in necessitous circumstances” and this they seek to do in a sensitive manner.
## **Achievements and performance**
## **a. Review of activities**
The grants which the charity makes to members of the family form an important part of their income in old age, infirmity, and, occasionally at other times of need. The gifts enable them to retain dignity, avoid poverty and provide a modest standard of living. Letters of acknowledgement received from them frequently contain details of how these gifts have been used to meet financial needs e.g. heating bills, medical costs etc.
## Public benefit
The trustees have regard to the Charity Commission's guidance on public benefit and operate the charity accordingly. Those within the family have varying financial needs and therefore some do not receive the usual quarterly grants while others receive reduced amounts. At other times the trustees provide discretionary assistance to some of the family when they are faced with unexpected expenses, e.g. following bereavement or illness. All is greatly appreciated and valued. The trustees consider that the activities undertaken by the charity were in furtherance of its charitable purposes for the public benefit.
## Property
The charity has a leasehold interest in two bungalows at Eckling Grange, Dereham, Norfolk, including the right to nominate two persons, from among the charity’s beneficiaries, as the occupiers of them.
## **b. Investment policy and performance**
All funds are invested in trust for the charity. Surplus funds not required for immediate distribution in grants are invested in bank deposits, or stocks and bonds. The management of this investment portfolio is delegated to a firm of Stockbrokers on the London Stock Exchange.
For responsible and ethical reasons, high risk and unethical investments have never been part of the investment policy of the trustees, although they accept that the more secure investments generally provide a lower return. An investment policy approved by trustees guides the manager of the investment portfolio. It includes a benchmarking mechanism for assessing the broker's performance against agreed criteria.
The investment portfolio has decreased during the year due to losses in revaluation and sale of investments. Whenever possible the Chairman, the Treasurer and the Assistant Treasurer continue the practice of holding an annual meeting with the Stockbrokers as part of the regular review of the charity’s financial position.
## **Financial review**
## **a. Going concern**
After making appropriate enquiries, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements.
Page 3
## **RETIRED MISSIONARY AID FUND**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2022**
## **b. Reserves policy**
The potential increase in the number of beneficiaries and the additional grants needed for family members who receive little or no grant, coupled with fluctuations in income means that the trustees must ensure that the charity maintains sufficient reserves to enable it to continue with its support of family members without interruption. Reserves equivalent to two years' current expenditure is considered ideal, at present the reserve level is 1.7 times (2021 - 2.1 times) current expenditure.
## **c. Financial risk management objectives and policies**
The accounts for the year ended 30 June 2022 accompany this report. The charity’s income included income from gifts of £318,510, similar to the previous year. Legacy receipts totalled £43,306, with an additional provision for £60,000 at the year end, making a total of £103,306, a decrease from the previous year. It is important to recognize that legacy income will fluctuate from year to year. The trustees are indebted to trusts, assemblies and individuals who have again this year given generously in support of our retired missionary family.
The level of interest on gilts and bonds and equity dividend income was higher than in the previous year. Bank interest received was minimal due to low interest rates. The wisdom of a diversified investment portfolio has again been demonstrated during the year.
The charity exists for the long term financial support of retired missionaries. Therefore, and having regard to the nature of its income, and in particular the fluctuating value of legacies over the years, as noted above, a prudent disbursement of financial resources is made in an endeavour to balance income and expenditure. There has been an decrease of approximately £157,000 in the year end reserve balance.
The trustees give no guarantee of continued financial support to the family who, as when on 'active service', follow the principle of 'living by faith'. It is clear from acknowledgements received that the quarterly support provided by the charity is greatly valued and often a significant part of their income.
The trustees have regard to the ever present possibility of further calls on the charity arising from the fact that there are a number of UK Brethren Assembly missionaries who are over the State Retirement age and who remain 'active' overseas, but who are elderly and may at any time retire and be eligible to become part of the RMAF family.
The trustees bear in mind that some of the family members do not receive any grants from the charity and others receive less than the 'standard' sums. They also recognise, however, that if the financial circumstances of these members changed for the worse, then the call on the charity’s resources would increase considerably. It is estimated that if all the 167 members of the Family had been in receipt of grants in 2021/2022 then the amount needed for such grants would have increased from an annualised sum of £420,000 by an additional £138,000; an increase of 33%.
## **d. Principal funding**
The sources of principal funding are trusts, gifts from churches, investment income and legacy receipts.
## **Structure, governance and management**
## **a. Constitution**
The charity, which has been in existence since 1914, is a trust governed by a Scheme approved by the Charity Commissioners for England and Wales (Registered Number 211454) on 6 November 1998 as amended on 30 October 2002.
Page 4
## **RETIRED MISSIONARY AID FUND**
**TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2022**
## **Structure, governance and management (continued)**
## **b. Methods of appointment or election of trustees**
Trustees were appointed by the Scheme and any new trustees are appointed by resolution of the existing trustees in accordance with the Scheme. New trustees are selected on the basis of their willingness to assist in the affairs of the charity, including visiting retired missionaries in their areas, and their acceptance of the basis of faith set out in the Scheme.
In order to provide a reasonably close contact with the beneficiaries of the charity, the trustees are drawn from a wide area of the United Kingdom.
## **c. Organisational structure and decision-making policies**
The receipt and distribution of the funds together with all necessary correspondence is handled by the Secretary, the Treasurer and the Assistant Treasurer, who together with the Chairman and Vice Chairman, constitute the officers of the charity. Urgent business between meetings is delegated for decision by them and subsequently reported to the full body of the trustees. Occasionally, a sub-committee is set up to investigate and report on complex issues, with all decisions being taken by the full body of trustees. Other work required in order to maintain the work of the charity e.g. distribution of Christmas hampers, the sending of birthday gifts and overseeing the charity’s publications is carried out voluntarily by other trustees and their spouses.
Authority for executing these duties is agreed at the annual meeting of the trustees and in particular the level of disbursement of gifts, in cash or in kind, for the ensuing year is agreed at that meeting.
## **d. Policies adopted for the induction and training of trustees**
New trustees receive initial guidance on their responsibilities from the Chairman. Subsequently, they are kept informed of their duties and responsibilities at the annual trustees’ meetings.
## **e. Financial risk management**
The trustees have assessed the major risks to which the charity is exposed, in particular those related to the operations and finances of the charity, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks and their effects.
## **f. Trustees' indemnities**
An insurance policy is in place providing trustees’ indemnity cover up to £1M. No trustee receives any remuneration, but they are entitled to claim expenses incurred in carrying out their duties. In the year under review these amounted to £1,788 (2021 - £349), while administration costs were 2.7% of total expenditure.
## **Plans for future periods**
Subject to the receipt of commensurate income, the trustees will aim to continue to provide, as in the past, financial support to retired missionaries who come within the objects for which the charity was established. However, they cannot offer any guarantee or commitment to recipients of grants concerning their continuation nor any commitments as to their level or frequency. Financial projections for the next 10 years show that the charity is likely to continue to be viable.
Page 5
## **RETIRED MISSIONARY AID FUND**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2022**
## **Statement of trustees' responsibilities**
The trustees are responsible for preparing the trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England & Wales requires the trustees to prepare financial statements for each financial which give a true and fair view of the state of affairs of the charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles of the Charities SORP (FRS 102);
- make judgments and accounting estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
## **Disclosure of information to auditors**
Each of the persons who are trustees at the time when this trustees' report is approved has confirmed that:
- so far as that trustee is aware, there is no relevant audit information of which the charity's auditors are unaware, and
- that trustee has taken all the steps that ought to have been taken as a trustee in order to be aware of any relevant audit information and to establish that the charity's auditors are aware of that information.
## **Auditors**
The auditors, Griffin Stone Moscrop & Co, have indicated their willingness to continue in office. The designated trustees will propose a motion reappointing the auditors at a meeting of the trustees.
Approved by order of the members of the board of trustees on 3 November 2022 and signed on their behalf by:
................................................
**R Bennett** Chair
Page 6
## **RETIRED MISSIONARY AID FUND**
## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RETIRED MISSIONARY AID FUND**
## **Opinion**
We have audited the financial statements of Retired Missionary Aid Fund (the 'charity') for the year ended 30 June 2022 which comprise the Statement of financial activities, the balance sheet, the statement of cash flows and the related notes, 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 Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
The financial statements have been prepared in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has been withdrawn.
This has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.
In our opinion the financial statements:
- give a true and fair view of the state of the charity's affairs as at 30 June 2022 and of its incoming resources and application of resources for the year 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 Charities Act 2011.
## **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 Auditors' 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 United Kingdom, including the Financial Reporting Council'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.
Page 7
## **RETIRED MISSIONARY AID FUND**
## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RETIRED MISSIONARY AID FUND (CONTINUED)**
## **Other information**
The other information comprises the information included in the annual report other than the financial statements and our auditors' 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.
## **Matters on which we are required to report by exception**
We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:
- the information given in the trustees' report is inconsistent in any material respect with the financial statements; or
- sufficient accounting records have not been kept; or
- the financial statements are not in agreement with the accounting records and returns; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of trustees**
As explained more fully in the trustees' responsibilities statement, the trustees are responsible for the preparation of the financial statements which 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.
Page 8
## **RETIRED MISSIONARY AID FUND**
**INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RETIRED MISSIONARY AID FUND (CONTINUED)**
## **Auditors' responsibilities for the audit of the financial statements**
We have been appointed as auditor under section 145 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
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 auditors' 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 these financial statements.
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. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
- carrying out substantive checking to supporting documents on a sample basis of individual transactions within income and expenditure to give comfort that on a sample basis the SOFA does not contain any irregular items; - carrying out walk-through testing to verify that the charity’s accounting systems and controls are being implemented as designed; and
- verifying that material balances within the Balance Sheet are supported by third party evidence to confirm the existence and valuation of these balances at the balance sheet date.
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 auditors' report.
## **Use of our report**
This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' 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 its trustees, as a body, for our audit work, for this report, or for the opinions we have formed.
## **Griffin Stone Moscrop & Co**
Chartered Accountants Statutory Auditors 21-27 Lamb's Conduit Street London WC1N 3GS
Date:
Griffin Stone Moscrop & Co are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.
Page 9
## **RETIRED MISSIONARY AID FUND**
## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30 JUNE 2022**
|**Note**
**Income from:**
Donations and legacies
3
Investments
4
Other income
5
**Total income**
**Expenditure on:**
Raising funds
6
Charitable activities
**Total expenditure**
**Net expenditure before net (losses)/gains on**
**investments**
Net (losses)/gains on investments
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
Net movement in funds
**Total funds carried forward**|**Unrestricted**
**funds**
**2022**
**£**
**421,816**
**28,027**
**5,290**
**455,133**
**7,352**
**489,549**
**496,901**
**(41,768)**
**(115,124)**
**(156,892)**
**1,013,180**
**(156,892)**
**856,288**|**Total**
**funds**
**2022**
**£**
**421,816**
**28,027**
**5,290**
**455,133**
**7,352**
**489,549**
**496,901**
**(41,768)**
**(115,124)**
**(156,892)**
**1,013,180**
**(156,892)**
**856,288**|Total
funds
2021
£
430,150
23,022
5,230
458,402
7,459
491,092
498,551
(40,149)
145,768
105,619
907,561
105,619
1,013,180|
|---|---|---|---|
The Statement of financial activities includes all gains and losses recognised in the year.
The notes on pages 12 to 20 form part of these financial statements.
Page 10
## **RETIRED MISSIONARY AID FUND**
## **BALANCE SHEET AS AT 30 JUNE 2022**
|**Note**
**Fixed assets**
Tangible assets
10
Investments
11
**Current assets**
Debtors
12
Cash at bank and in hand
14
Creditors: amounts falling due within one
year
13
**Net current assets**
**Total assets less current liabilities**
**Net assets excluding pension asset**
**Total net assets**
**Charity funds**
Restricted funds
15
Unrestricted funds
15
**Total funds**|**61,893**
**100,232**
**162,125**
**(3,989)**|**2022**
**£**
**3**
**698,150**
**698,153**
**158,136**
**856,289**
**856,289**
**856,289**
**-**
**856,289**
**856,289**|1,625
154,285
155,910
(3,789)|2021
£
3
861,056|
|---|---|---|---|---|
|||||861,059
152,121|
|||||1,013,180|
|||||1,013,180|
||||||
|||||1,013,180|
|||||-
1,013,180|
||||||
|||||1,013,180|
The financial statements were approved and authorised for issue by the trustees on 03 November 2022 and signed on their behalf by:
................................................ ................................................ **R Bennett J Lower** Chair Treasurer
The notes on pages 12 to 20 form part of these financial statements.
Page 11
## **RETIRED MISSIONARY AID FUND**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022**
## **1. General information**
Retired Missionary Aid Fund is a registered charity with the Charity Commission for England & Wales (charity number: 211454). The principal place of operation can be found on the reference and administrative details page.
## **2. Accounting policies**
## **2.1 Basis of preparation of financial statements**
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.
The financial statements have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair' view. This departure has involved following the Charities SORP (FRS 102) published in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.
Retired Missionary Aid Fund meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
## **2.2 Income**
All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
The recognition of income from legacies is dependent on establishing entitlement, the probability of receipt and the ability to estimate with sufficient accuracy the amount receivable. Evidence of entitlement to a legacy exists when the charity has sufficient evidence that a gift has been left to them (through knowledge of the existence of a valid will and the death of the benefactor) and the executor is satisfied that the property in question will not be required to satisfy claims in the estate. Receipt of a legacy must be recognised when it is probable that it will be received and the fair value of the amount receivable, which will generally be the expected cash amount to be distributed to the charity, can be reliably measured.
Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.
Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.
Page 12
## **RETIRED MISSIONARY AID FUND**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022**
## **2. Accounting policies (continued)**
## **2.3 Expenditure**
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.
Expenditure on raising funds includes all expenditure incurred by the charity to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the charity's objectives, as well as any associated support costs.
All expenditure is inclusive of irrecoverable VAT.
## **2.4 Interest receivable**
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.
## **2.5 Tangible fixed assets and depreciation**
Tangible fixed assets costing £NIL or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.
Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.
Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, .
Depreciation is provided on the following bases:
Long-term leasehold property - Over the term of the lease Fixtures and fittings - 25% on written down value
## **2.6 Investments**
Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the statement of financial activities.
Page 13
**RETIRED MISSIONARY AID FUND**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022**
## **2. Accounting policies (continued)**
## **2.7 Debtors**
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
## **2.8 Cash at bank and in hand**
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
## **2.9 Liabilities and provisions**
Liabilities are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the statement of financial activities as a finance cost.
## **2.10 Financial instruments**
The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
## **2.11 Fund accounting**
General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.
Investment income, gains and losses are allocated to the appropriate fund.
Page 14
## **RETIRED MISSIONARY AID FUND**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022**
## **3. Income from donations and legacies**
|**Unrestricted**
**funds**
**2022**
**£**
Donations
318,510
Legacies
103,306
**Total 2022**
421,816
Total 2021
430,150|**Total**
**funds**
**2022**
**£**
**318,510**
**103,306**
**421,816**
430,150|Total
funds
2021
£
314,885
115,265|
|---|---|---|
|||430,150|
||||
## **4. Investment income**
|**Unrestricted**
**funds**
**2022**
**£**
Investments - Equity Dividends
27,934
Deposit Account - Gross Interest
-
Investments - Interest
93
**Total 2022**
28,027
Total 2021
23,022|**Total**
**funds**
**2022**
**£**
**27,934**
**-**
**93**
**28,027**
23,022|Total
funds
2021
£
22,988
22
12|
|---|---|---|
|||23,022|
||||
Page 15
## **RETIRED MISSIONARY AID FUND**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022**
## **5. Other incoming resources**
|Bungalows at Eckling Grange, Dereham, Norfolk - Income
less Expenditure
**Total 2022**
Total 2021|**Unrestricted**
**funds**
**2022**
**£**
5,290
5,290
5,230|**Total**
**funds**
**2022**
**£**
**5,290**
**5,290**
5,230|Total
funds
2021
£
5,230|
|---|---|---|---|
||||5,230|
|||||
## **6. Investment management costs**
|**Unrestricted**
**funds**
**2022**
**£**
Investment management fees
7,352
**Total 2022**
7,352
Total 2021
7,459|**Total**
**funds**
**2022**
**£**
**7,352**
**7,352**
7,459|Total
funds
2021
£
7,459|
|---|---|---|
|||7,459|
||||
## **7. Analysis of expenditure by activities**
|Charitable activities
Support costs
**Total 2022**
Total 2021|**Activities**
**undertaken**
**directly**
**2022**
**£**
476,456
-
476,456
479,250|**Support**
**costs**
**2022**
**£**
-
13,093
13,093
11,842|**Total**
**funds**
**2022**
**£**
**476,456**
**13,093**
**489,549**
491,092|Total
funds
2021
£
479,250
11,842|
|---|---|---|---|---|
|||||491,092|
||||||
Page 16
**RETIRED MISSIONARY AID FUND**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022**
## **7. Analysis of expenditure by activities (continued)**
## **Analysis of direct costs**
|Gifts to retired missionaries
Gift vouchers and Christmas food hampers
Earmarked gifts paid to retired missionaries
Funeral grants
**Total 2022**|**Activities**
**2022**
**£**
445,544
8,537
17,375
5,000
476,456|**Total**
**funds**
**2022**
**£**
**445,544**
**8,537**
**17,375**
**5,000**
**476,456**|Total
funds
2021
£
455,298
8,486
15,466
-|
|---|---|---|---|
||||479,250|
## **Analysis of support costs**
|Printing, postage, stationary and telephone
Sundry expenses
Trustees Insurance
Meetings and exhibitions
Audit and accountancy
IT expenses
**Total 2022**|**Activities**
**2022**
**£**
5,430
1,893
768
1,470
3,240
292
13,093|**Total**
**funds**
**2022**
**£**
**5,430**
**1,893**
**768**
**1,470**
**3,240**
**292**
**13,093**|Total
funds
2021
£
6,126
364
767
980
3,240
365|
|---|---|---|---|
||||11,842|
## **8. Auditors' remuneration**
The auditors' remuneration amounts to an auditor fee of £3,360 (2021 - £3,240).
## **9. Trustees' remuneration and expenses**
During the year, no trustees received any remuneration or other benefits (2021 - £NIL).
7 trustees received reimbursement of expenses amounting to £1,788 in the current year, (2021 - 1 trustee - £349).
Page 17
## **RETIRED MISSIONARY AID FUND**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022**
## **10. Tangible fixed assets**
|**Cost or valuation**
At 1 July 2021
At 30 June 2022
**Net book value**
At 30 June 2022
At 30 June 2021
**11.**
**Fixed asset investments**
**Cost or valuation**
At 1 July 2021
Additions
Disposals
Unrealised gains
Realised gains
At 30 June 2022
**12.**
**Debtors**
**Due within one year**
Other debtors|**Long-term**
**leasehold**
**property**
**£**
**2**
**2**
**2**
2|**Fixtures and**
**fittings**
**£**
**1**
**1**
**1**
1
**2022**
**£**
**61,893**
**61,893**|**Total**
**£**
**3**
**3**
**3**
3
**Listed**
**investments**
**£**
**861,056**
**30,431**
**(78,213)**
**(115,617)**
**492**
**698,150**
2021
£
1,625
1,625|
|---|---|---|---|
|||||
|||||
|||||
|||||
Page 18
## **RETIRED MISSIONARY AID FUND**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022**
## **13. Creditors: Amounts falling due within one year**
||**2022**|2021|
|---|---|---|
||**£**|£|
|Other creditors|**3,989**|3,789|
## **14. Financial instruments**
||**2022**|2021|
|---|---|---|
||**£**|£|
|**Financial assets**|||
|Financial assets measured at fair value through income and expenditure|**100,232**|154,285|
Financial assets measured at fair value through income and expenditure comprises cash at bank.
## **15. Statement of funds**
## **Statement of funds - current year**
||||||**Balance at**|
|---|---|---|---|---|---|
||**Balance at 1**|||**Gains/**|**30 June**|
||**July 2021**|**Income**|**Expenditure**|**(Losses)**|**2022**|
||**£**|**£**|**£**|**£**|**£**|
|**Unrestricted funds**||||||
|General Funds|**1,013,180**|**455,133**|**(496,900)**|**(115,124)**|**856,289**|
|**Statement of funds - prior year**||||||
||||||Balance at|
||Balance at|||Gains/|30 June|
||1 July 2020|Income|Expenditure|(Losses)|2021|
||£|£|£|£|£|
|**Unrestricted funds**||||||
||907,561|458,402|(498,551)|145,768|1,013,180|
Page 19
## **RETIRED MISSIONARY AID FUND**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022**
## **16. Analysis of net assets between funds**
## **Analysis of net assets between funds - current year**
|**Unrestricted**
**funds**
**2022**
**£**
Tangible fixed assets
3
Fixed asset investments
698,150
Current assets
162,125
Creditors due within one year
(3,989)
**Total**
856,289|**Total**
**funds**
**2022**
**£**
**3**
**698,150**
**162,125**
**(3,989)**
**856,289**|
|---|---|
## **Analysis of net assets between funds - prior year**
|Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
**Total**|Unrestricted
funds
2021
£
3
861,056
155,910
(3,789)
1,013,180|Total
funds
2021
£
3
861,056
155,910
(3,789)
1,013,180|
|---|---|---|
## **17. Related party transactions**
Donations received from the charity's trustees amounted to £nil (2021 - £nil) during the year.
Key management personnel, consisting of the charity's trustees, received no remuneration during the year (2021 - the same).
During the year gifts as agreed by the trustees were granted to those close family members of the trustees as follows:
Mrs. Sadie Noble (mother of Eric Noble) received £4,134 (2021 - £4,092)
Page 20