THE BRITISH PROVINCE OF THE UNITAS FRATRUM operating as THE MORAVIAN CHURCH Charity Number: 251211 FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGusf 2022 Page I RAVIAN REPORT OF THE TRusfEES R THE YEAR ENDED 31 AUGusf 20 trustees of the Moravian Church present their report and the con9)lidated finanoal ststements for the year ended 31 August 2022 of the charity, the Morawan Church (The Brtiish PrOwn￿ of the Unitas Fratruml, which consolidate the re5uILs and net assets of the Church. tts Congregats"ons, its subsidiary charitable companies (The Moravian Union (Incorporated) and Fulneck School. and Fulneck aK>ir House. These have ￿en prepared in the format required by the Statement of Recommended Pracbce. 'Accounting and Retx)rbng by Charities. appIl￿ble to charities preparing their accounts in accordan￿ with the ￿nanCIal Repx)rts"ng Standard applicable in the UK and Republic of Ireland (FRS 102). Tr reiN)rt and ststements a￿0 compty with the Charities Art 2011 and regulations made thereunder. LEGAL AND ADMINisfRATIVE DEfAILS . The British Province of the Unitss Fratrum, generalty known as the'morawan Church., which was established by ALt of Parliament in 1749, is a registered charity, ￿). 251211. The Church is governed by a B(x)k of Order as approved by Provincial which consists of a biennial gathering of the provincial board, the clergyi one representative from each congregation per one hundred and fifty members and ex-officio as per the Book of Order. The Committee of Management, who are the trustees of the charity (aThJ directors in company law of the subsidiary charitable companies), are elected by S￿￿1. The PA)ok of Order (constitution) requires the Committee to act in accordance with resolutions of Synod. The Provincial Px)ard (Committee of Marogement) for the year ended 31 August 2022 and subsequentty comprised: Rev Prof P Gu￿. Miss R. M. A. Hce Rev. P. M. Hoktsworth (Resigned 25 January 2023) Rev. D. R. Howarth* Rev M ￿yman Rev. Dr. L. Th(thpg)n Rev. E Quildan (AppK)int￿l 25 SeptemLEr 2022) * Restxmsible for the day to day management of the Charity's affairs. (Resigned 25 September 2022) The Registered Office: Moravian Churth House 5-7 Muswell Hill London NIO 3TJ Investment Advlsors: Vestra Wealth LLP 14 Cornhill London EC3V 3NR I Cunon Street. London WIJ SUB Bankers: CAF Bank Limited PO Box 289 Kings Hill Kent ME19 qtA Each subsidiary and branch have the px)wer to appx)int their own bank Onfy the main banker is discl(Ised aLK)ve. Sollcltots: Cripps Harries Hall Wallside House 12 Mt. Ephraim R(N3d Tunbridge Wells, Kent TNI IEG Auditots: Knox Cropper LLP Chartered Accountsnts 65 Leadenhall Street London EC3A 2AD Page 2 RAVIAN RE RT F THE TRu￿EEs ntin FOR THE YEAR ENDED 31 AUGUST 2022 STRUCTURE, GOVERNANCE AND MANAGEMENT Governing D0￿ment The Charity's constitution is defined by the Book of Order which is approved by SynTrJ and can only be amended by Syr￿. Group Structure The Moravian Church controls a numtEr of related organisations induding: the Moravian Union (company number 00133708). a company limited by guarantee, which holds the assets and administers the affai￿ of the Church. Fulneck School (company number 05086581), an ir￿er￿ndent schcM)l ar￿ company limited by guarantee. thirty congwations {reduced to 28 after the Baknce Sheet date), tr40 $c￿e￿"e5 and one felk)wship, atk1,' One choir IM)use. Further details of The Moravian Union and Fulneck kh￿1 are available in their statutory accounts on request. accounts consolidate the results and net assets of all organisatior6. Procedures for the Rerruitment and Appointment of Trnstees The Book of Order, Section 3.1 states that the PEC consists of six memters of the Moravian Church in the British Province, two seNing in a full-time stipendiary capacity and four setviThJ in a non-stipendiary capacity, Part time. As part of tts brief the PEC acts as the Board of Trustees (arKI P4)ard of Directors) of the Moraman Union. Sync¥J is the body with the power to appoint and remove ￿eM￿r$ of the Board. Provincial Elders serve for a term of four years ané may be appointed to serve a further temis. Appointrnent is by elertion at the biennial Moravian Church Synod. Vacancies during an inter syn(xJ periixj shall be filled by a rxistal ballot elecbon. Chair and Officers are appointed by the n￿ltE￿Ip of the PEC from among their number. The Board convenes at least ￿efve times each year. Synrxj aLso el￿ts members to the various Standing and sub-committees which offer advi￿ and SUPPKWt to the PEC. Eath c￿MILtee ifKludes at least one Provinual Elder: Finance and Property Committee Mission and knety Committ Fa￿h and Order and Ecumenical Relations Commit Church servi￿ C(4nmtiee Youth and Children's Committee World Mission Commit Church Pkn)k Committee Arthives and Heritsge Procedures forthe Induction and Training of Trustees On appointment, each Provincial Elder signs a cc*Je of condurt and completes a register of Inte￿ts. The latter is renewed biennially following each Syn(Ml. They are gwen a Trust￿ HandtNM)k that include5 the Bwk of Order, the Memorandum and Articles of Association of each subsidiary ccrfnpany, the risk register, policies and procedures on issues such a5 delegation of authority. reouitment, equal op[￿rtUnity.e5, investments, reseNes, conflirts of interest and other guidance. It contains job desuipbons for Trustees. officers and staff and a copy of Charity Commission leaflet CC3, 'The essential trustee, what you need to know, what you need to do,. All Trustees are provided with trainiThJ OPkK)rtunities through extemal ￿1n1￿j courses to keep abreast of changes and of their restK>nsibilitie5. Volunteers The Moravian Church has many committees covering ts tdKy. education. congregational work etc. Without the many volunteers that seNe on these Committ￿ we would not te able to carry out the wide variety of work that our congregation5 have come to re￿ on. No value can ￿ pla￿ on the many hours worked by volunteers. Page 3 RAVIAN RE RT F THE TRu￿EEs FOR THE YEAR ENDED 31 AUGUST 2022 STRucfuRE, GOVERNANCE AND mANAGEmEr￿ (C4>ntinued) Oryanisational Management The British Province of the Morawan Churth is the registered chanty for the activib.es of the Moravian Church operated by the British Province in the UK and beyond. SyncKI is the ￿￿mate authority wi(hin the Church and it elects the Provinoal Elders conferen￿ (PEC) which acts on behalf of SyncKI in the inter-synod reriod and is the ultimate decision maknng body durirvJ that period. The PEC aLts as the Mordvian thurch's board of trustee5 and meets on a monthly basis. Resp)nsibility for the day-to-day management of the charity's affairs is delegated to the ttvo full time members of the PEC. Responsibilrty for control of the xthool is supwrted by an adwwry E4)ard of Govemors WhI￿t respK¥nsibility for the day-to-day affairs of each corKJregation is dekgated to the kKal COng￿atiOnal committees. Risk Management The PEC has remewed during the year an assessment of the risks to which the charity is exFosed, particular business, operab.onal and financial risks, arKI the pr(Ke55 of intr￿Ucing pr(Kedures and a reporting regime to manage and reduce idenb.fied risks is ongoing. The PEC has agreed clear lines of del￿atiOn and authority to stsff nd have involved staff in recognition of risk in all their actiwties. Risks are defined as those that, without appropriate mtbgation, are likefy to negatively impact on the Moravian Church serving its purpose of prockiming the Gospel of Jesus Christ. The trustees recognise that it is not possible to eliminate risk entirely. We recognise that risk tsking is inherent in proclaiming the (knpel. Our task is to minimise negatNe impaLts and allow the (hurrh to serve its purpose. We have identified signifi(ant risks an¢J are taking steps to mibgate in following ways.. Failure to encourage people into (*dained ministry. resulls in further decline. resulting in the Moravian Church ceasing to exist: The PEC wth the SUPPK)rt of the Church Service Committee continue to review and implement strategies to reuuit people into ministry. This includes dedicated Church seNices and enquiry days. The Church savi￿ Committee are Cu￿envY reviewing the provision of materials for training Lay people for Servi￿ and have drafted resources for publication on opportun￿leS for service5 as well as an understanding of ordair*d ministry. Declining congregations and failure to grow resulting in congregation closures and ultimately the Moravian Church ceasing to exist: The PEC have convened the'Future Direclions and Sustainabilty TaS￿orCe. to consider the current framework of the Pro￿n￿ and consider ways to move forward into the future. Further to this, Ihe Syn¢JJ has approved a programme of renewal and growth, Project 32, for which a programme c(K>rdinator 15 to be appointed. Reputational damage which results in litigation and imparts on engagements with communities: The PEC activety considers reputstional damage as part of their strategy and planning. This provides the opp)rtunity for identifw.ng potents.al prob￿M5 that could affect public perception, tske remedial artion where necessary and dirtates how we communicate and manage expectstions. Lack of Diversity and Inclusion: The PEC has initiated diversity and inclusion training for staff, as part of a whole oryanisation strategy to promote aThJ mcKJel dive15ity and inclusion and a fundamental walue of the charity. Dependency on limited income source¥ shortfall for reserve and unforeseen shortfall on the pension funds: The PEC continually monttcKs and rewews rKbtents"al areas of vveakness in our financial strategy and are supported by the Finance Commitiee who have the ability to convene emergency meetings rf necessary. A Financial ar￿ Investment Risk Register is maintsined. Loss of key personnel: The PEC rec(xJnises the imwrtance of t*rsonnel for the effeciive running of the organisation and is currendy rewewing the framewlyk for ￿￿pIe management promoting a transparent and sUppO￿ve environment. Losses cannot a￿ayS ￿ avoided, and the PEC must resrK)nd quickly to ensure smwth transrtions. Latk of Diversrty and Indusion.. The PEC has initiated diversity and inclusion training for stsff, as part of a whok organisats.on strategy to promote and model diversity and indusion aThJ a fundamental value of the charity- Page 4 RAVIAN RE RT F THE TRu￿EEs FOR THE YEAR ENDED 31 AUGUST 2022 STRucfuRE, GOVERNANCE AND mANAGEmEr￿ (C4>ntinued) Significant damage to historic buildings and archiv￿. The PEC work with the Ethtes manager and the Provincial Archiwst to promote best practi￿ for care and Maintenan￿ of historic buildings and archives. Loss of significant and sensitive data: Tr PEC continually monitors and rewews policies to ensure that we remain compliant with current ￿91￿a￿"ve practices and seek to tske remedial attions if weaknesses are identified. A r￿ent aud￿ has been completed to ensure complbance folk)wing the introduction of the General Dats Protettion Regulabons. Debt resulting from failed operation in the subsidiary company: The subsidiary companyi Fulneck School, is at risk without significant extemal investment and the PEC has stepped up its oversight of the Sch(x)I, w￿h a view to ersuring that ft remains a going con￿rn. Pensions Following changes to legI￿ation, the previous discretionary pe￿on arrangements for ministers in Servi￿ prior to 31 August 2010 have been repLaced by a defined contn"tth"on pension scheme. This came into effect from I January 2016. All Ministers have been infom)ed of their entidement. Other Ministers and empk)yees employed after 31 August 2010 hold defined cOntribUb￿ personal r￿￿on plans arKJ contribute at rates chosen by themselves. In addition, as disclosed in note 19, the 2016 British Pmmncial Synod resolved that with effert from 11 luly 2016 the previously discretionary pension arrangements for ministers in service priorto 31 August 2010 was recognised as an obligation of The Moravian Union up to 31 tkcember 2015. The most recent artuarial valuab.on of the pension liability was completed on 6 April 2023 ond calculated the liability to be £3,564,559 as at 31 August 2022 nd £4,742,688 as at 31 August 2021. This compared to a liability of £3,773,502 as originally disclosed in the prior year statutory accounts and a prior year adjustment has LEen wnade to refleLt this in these financial ststements as disck)sed in note 23 to the financial statements. OBJECtS AND ACtIvtnES Principal Objectives The ChLJrch's objective is to administer the atrdirs of the Moravian Church in its work for the Kingdom of Ilxl, in accordano with the will of Synod. The parent charivs main aLtiMties consist L*. Ensuring a supply of ministers to coThJregabor6. Providing congregations with advKe on complwThJ with best prath.ce under child proteth.on regulations in the conduct of their work with yourwJ FEopIe. Advi￿ to congregations on financial and administrative matters. (iv) Bishops, who are elerted by Syncxj, but who are nonethekss employ￿ of the Moravian Church, provide pastoral and spiritual guidance to congregab"ons. (v) Administering the assets of the Church th￿Ugh its subsidiary company, The Moravian Union. (vi) Maintsining archives whid) relate to Congregats.￿S of the Church and the British PrtiWn￿. (wi) By working with Fulneck School's a(fvisory Board of Governors and wth the professionals employed in the school, maintsining and further devek)ping the standards of academic ex￿lIentr and pastoral care offered. Page 5 MORAVIAN CHURCH REPORT OF THE TRusfEES Continued FOR THE YEAR ENDED 31 AUGusf 2022 OBJECtS AND ACtivrtlES (Continued) Strategies To promote these activitie5 the parent thaiity: Organise5 the training of ordained and lay preac￿5. Has develop*d ar￿ made available to congregats.ons a procedures manual to regulate their work wf(h young peop￿. The Church also artively works with"APCS" to protect the interests of young peop￿. Provides advice to congregation5 on the prinaples of sound administralion again through bulletins ar publications. (iv) The Church's investment assets, which are held by its subsidiary companyi are administered with the a￿lS￿nCe of professional fund managers. The Church's land and buildings (which are held by its subsidiary The Moravian Union) are administered through the services of a Chartered Surveyor with a ew in Instan￿ to maximising the retums avaiL4b* to the Church within the constraints imposed by the Church's charitsble mi55ion. (v) The Church, through its subsidiary company employs a fvll-time arthivist who spends a portion of her time advising congregations on how to maintain their archwes. Principal Objectives for the year ended 31 August 2022 The trustees determined the following prinapal objectives for the year ended 31 August 2022.. To continue to offer training for ministry or lay preachirvj to all WFK) wish to ￿ trained provided the trustees are satisfied about their suitabilty. To ensure that all congregatiorLS are encouraged to adopt ttSt prac￿￿ in connertion wf(h their worf( with children and young people. To continue to administer the Church's assets in a way which is appropriate to the Church's charitsble mission and to maximise returns for the benefit of the Church subject to these constraints. To continue to promote g¢J)d prath.￿ in the archimng of the Church's and Congregations, rtcords by promoting communicab.on ￿tween the arthivist employed at Church House and individual Congregations. To continue to SUPPOrt work in its partner provin￿ of the Moravian Church in Westem Tanzania {Mcwr) and also the work in South Asia, the resp)nsibilty for the latter being given to the Britssh Province by Unity Synod. To continue to supplyt national and local ecumenical tM)Jies and to ty develop ways of worknng more closety with other deM)minations. By maintaining close contsct with Fulneck SchcK)I s advi9)ry ￿ard of Governors and senior stsff to further develop the standards of academic exCdIen￿ and pastoral care at LN)th insb"tubons. Page 6 HUR REPORT OF THE TRu￿EE5 Continued FOR THE YEAR ENDED 31 AUGusf 2022 ACHIEVEMEKfs AND PERFORMANCE How our actlvltles dellver publk benefft The Trustees confirm that they have referred to the guidan￿ contained in the Charity Commission's general guidance on public benefit when reviewing the charivs aims aThJ objeth.ves and in planning future activities and setting grant maknng policy for the year. The charity carrie5 Out a wide range of arttwties in pursuance of its charitsble aims. The trustees consider that these acbvibes, 9Jmmarised beh)w, provide ￿nefft both to our congregations and the public in general. Revlew of the year We continue to f(Éus on the essentials of existen￿, which are to te found in the Ground of the Unty (Church Order of the Unitas Fratrum), and to try and achieve a proper baLin￿ bkn￿n these essenb'als of being a church and the challenge5 of governan￿ in a context characterised by numerical decline and financial Un￿rtainty. We remain confident that we can serve G(Kl effecb.vety in the Province despite the limitstions of being a small church. We continue to look for more effective ways of engaging in MIS￿On. The trustees have developed a new strategic plan, Project 32, which will look at all areas of our current activits"es, with new priorities to ensure sustainability and future growth over the coming decade. So as to ensure continuity, the Provincial Synod in 2020 agreed the setting up of an Imp￿Mentation committee. to oversee the delivery of the outcomes. While implementation of this was previousfy de￿Ved with the onset of the pandemic, we are IcM)king forward with opb.mism and are in the pr￿ of r￿ltIng a programme manager to carry out key objectives identified by the implementation committee. It has been a time of transition and at1Justment for the Morawan Cffiurch, for our congregations and for the wider organisation. We are delighted at congregations swift retum to worship, with adapLitions On￿ restrictions were lifted. However, after two years of navigating through a global pandemic, we do not take lightty the impaLt that the pandemic has had on our Province Minis It is clear that, unless Lyjr congregations start to grow in membership, the present number of memLkrs will not be able to SUPkK)rt paid ministry in the way that it has done in the past. This will mean significant changes will have to be made by ÈK)th congregations and for ministers. Congregations will have to take time to assess their strength5 and weaknes5e5 and seize the oppL¥rtunities to grow. Efforts will have to be made to build the capacity of members to LE more intentional in faith ￿neWa1 and numerical grovrth. We have been reviewing the way that ministers are trained and deployed, to ensure that we are maknng best uses of our ministerial resour￿ ar￿ tsking advantage of growth OPPK)rtunits"es. At Synod 2022, we shared that we had been creating a Continuing Education policy that will ensure provision for Ministers and paid Lay workers who wish to pursue further educab"on, providing the kn.me and 5UPPOrt with funding. The Provincial Board continues to review the support and pastoral care prowsions for our Ministers, to ensure both spiritual refreshment and continuing educational develDpment. We have developed a new prcxjramme for lay Worship leadets foojsing first-and-foremost on developing an understanding of Christian worship and ts context within the Morawan Church, and on developing the skills that are needed to lead worship effectivety and meaningfully. Certification and recognition as a Worship Leader come after a year of studyi conducted over a numLw of w*kends of training on Zoom, finalising in a residenkn.al weekend in whith the physical experien￿ of knding worship can be gained, and f￿back can be offered on practice. The first cohort of students began the course in September 2021, and a new cohort is undeN4ay for SeptemLEr 2022. Going forward we will be ￿kn"ng opporbJnitie5 to build upon the programme at a second level, that will develop skills in semion preparati(￿. Building on the work of the 'Future Direcbons and Sustainability Taskforce.. the Project 32 IMpl￿nentatIOn Committee will give guidance to more effective ways of e[￿ring fubjre Provincial sustsinability and growth. Young people and children's wo The Youth & Children's Officer offers re9)Ur￿ and training ￿ anyone working with children and young people in our churches,. this is e￿ntIal to ensure that all ￿aderS are aware of the legal and gcM)d p￿ttl￿ requirements of this sen&tive area of wor Page 7 MORAVIAN CHURCH REPORT OF THE TRUSTEES Continued FOR THE YEAR ENDED 31 AUGusf 2022 ACHIEVEMENTS AND PERFORMANCE {C(mtinued) Given the geographical spread of our congregats.ons rt is eXtrerne￿ ￿neficial that this work is coordinated so that our young people feel a sense of belonging. The Youth & Children's Officer role will be urKler review Iwer the next 12 months as Sr Joy Raynor retire5 from the tsffi￿. Recruitment for the redevelo&*d role will Lwin in mid-2023. Fulneck School As Trustees of Fulne(k Scho￿. the PEC enterEd into management agreement with a third paty ￿weVer this arrangement came to an end in June 2021 arKI the PEC reconstitirted a Board of Q)vemors which continues to work in an advisory capacity. The School with support of the Trustees. who have erwjaged extemal professional *twi￿ to help effert turnaround, has worked hard to re-establish financial stability, organisational resilience and inueased pupil recruilJnent. The Fulneck School continues nom7al OFeration: the defiat in its operabon has b￿n greatly reduced. While the Trustees continue to review their long term [x}s￿On, it is in the Morawan Church s interest to seek arrangements and security whereby the loan due to Moravian Union can ￿ repaid. Choir House The Choir Hou* at Fulneck, which is li￿nsed as a house in muknple occupation. IHMO), sharing a common entrance hall, provides a number of comfortable, self-contsined apartments. a set of Grade I listed buildings, maintenance and upjrading works are expensive and have to be overseen by listed building specialists. The Trustees are grateful to the work of Br lan Haggas as the administrator. Finances In common with many other derK)minations wtth a reduang membership, the Moraman Church is finding it a challenge to renew and grow ￿yond a maintenano ￿1 of opkration. The per caprta financial CDntribukn"on being asked of members is increasing, even wf(h delimiting efforts. We d￿refore commend congregations that find ways to increase their income in thi5 difficult situation. The Trustees are, therefore, extremely Sens￿"Ve to need to ensure careful, fiduciary oversight of our investrnents. Our wrtfolios are managed by UBS (Wealth Management UK) and Vestra Wealth LLP. A small group comprising the Provincial Treasurer ak)ng with the Chairman and two members of the Finance Committee, meet w￿h the investment managers at least On￿ eath year to monitor performan￿. We make clear to fund managers that as a church we want to ensure that the companies in whith our monies a￿ invest meet the ethical and moral values we espouse. The Provinoal Board has therefore deVekJr￿d an EthiGII Investment Policy which will be continuously reviewed and monitored and will help guide our investment strategy. Arising from a resolution passed at the last Synod, that policy now indudes a plan to exit investment in fossil fuels. A progress on this was tsbled at the SyncKI As highlighted prewOu5￿, an area in whith we need to tske ath.ons was in regard to the pension commitrnent to workers. The current arrangement, wyhich is consistent wtth charity wulations, in that all current and future stikEndiary staff LE included in a fom)al, contributsry pension scheme. Congregations now contribute 5.50/0 of stipend to the pension fund. Previously the pension arrarwjement was one in whith discretionary payments v4ere made to retired churd) setvants and their spouses. During the 2017 British Provincial Syncml it was resolved that these payments to retirees should be recognised as an obligation and not discretionary. An amount was therefore set aside from Provinoal opErations to cover this obligation. This sum is expected to tsll overtime, Sin￿ the numbers of individuals to whom this is paid will not be increasing. This year a fomial artuarial valuation of the obligation as at 31 August 2022 and 31 August 2021was commissioned and tM)th valuations are refletted in these financial statements. Page 8 MORAVIAN CHURCH REPORT OF THE TRUSTEES Continued FOR THE YEAR ENDED 31 AUGusf 2022 ACHIEVEMENTS AND PERFORMANCE {C(mtinued) Unity Our partnerships with SoLth Asia and the Moravian Church in Westem Tanzania continue to offer opportunities for members in this province to offer suprx)rt to brothers and ￿SterS in these developing areas of the Unity. At Unity Synod in 2016, Scxjth Asia was formalty recognised as a Mission Area and is u[￿er the supervision of the British Province. The South Asia Mission conts.nues to make structural progress towards becDming a Mission Province. The Interim Board have completed their first draft of their proFM)sed BoDk of Order and the British Mission Board IBMBI have acted in an adVI￿ry role. It is IK)ped that the next Church Conference of all areas in South Asia (Ladakh, Delhi, Dehradun, Assam and Nepal) will ￿ able to take pLace by the end of the year. This will also be essential for the BMB as they ccffib.nue tr) set their new agenda going fomard. Following the acceptsnce of the general and prinoples kiid down at the Synod of 2021 the BMB has been expanded in line with the wishes of Membe￿ of that Syncxj. The new memLErs of the BMB are helping to share the overall workload and to widen the scope and breadth of what the BMB can accomplish. The BMB meets Separate￿ from the PEC, whilst ￿￿K)rts"n￿ back to the Prowncial E4Jard. Due to the restructu￿, the BMB is in a more formative stsge and over the next year we hope that we will te able to solidify our strategy and agenda moving forward to ensure we are grasping all opportunities to ensure sustainable and effective partnerships. Funding is being accumulated in the Misgon Fund and availabk for the BMB to use in order to bolster Mission work throughout the Unity and beyond. This is helping the BMB to b￿oming more resrx)nsive and proactive in the way it resrK>nds to both emergewes and emerging projects around the world. In addition, we continue to offer an administration grant, albeit it at a reduced level. to the Jamaica Province to help them purthase Texttwks from the Bookroom. This is of mutual benefft as the Jamaican order increases our print run and reduce5 the unit cost of the b(K)ks to everyone. SuppM)rt is als) gtven to Elim Home in South Afri￿ and the Star Mountain Rehabilitation Centre in Ramallah, Paksts"ne. T1￿ are viewed as important works of the Moravian Church worfd-wide. Individuals and groups such as the Moravian Women's Awciation, the Men'5 Fellowship and the YPMA give money to many other projects. We are touched by the generosity of such gifts. Ecumenical a province, we continue to play as full a rok as p%)sSib￿ in the national and four-nats.on bodies, with representation on Churches Together in England and Churches T(MJether in Britain & Ireland. The National Ecumen1￿1 Officer was aprxiinted by the Provinaal Board to represent the Moravian Church at a National level and we are grateful for the work of Br Philip Comjper wlw) ojrrenuy serve5 in this capauty. Sr Sarah Groves has been apr￿)inted Vice President of the Iiish Council of Churthes and members of that Distrirt sit of various committees of the council. It is go(￿ to know that most congregations play their part in the local ecumenical ￿ne, both formally and infomially. Br ￿"vIngstone Thompson was apwinted a Trustee for Christian Aid Ireland, which enable him also to suppcmt the strategic work of Christian Aid UK. Conclusion With no formal impact assessment procedures in p￿￿ to assess a churd), which has serving communities for over 250 years, it is difficult to determine perf0mlar￿e, even though we might be able to kx)int to specific outcomes to satisfy the ￿qUirements of the Charity Commission. However, when we consider the number of members and significant finanaal contn"butions, which we have been able to make to support our mission locally and overseas, we could say that the Churth is having significant impacL There are two ways of Iwking at objectives and achievements, quantitatively or qualitatively. If we take the former view, it is clear that we have 105t members and if that trend were to continue Tt would pose some risk to the sustainability of the ProWn￿. However, if we hold to the latter p)sition which is a broader, deeper and rerhaps more theological view, we can say that, in the present secular climate, our decline in nuML￿r$ is no greater or less than in other denominations; our difflcutknes with meeting the demands for pensions, for exarnp￿, are consistent with the situation in other similar instrfcutions. Yet, de$￿te these problems, we have continued to develop and offer ministry and pastoral CO￿ to our members. we have been able to show practical con￿rn for those living in devek)ping countries and those living with various disabilities. Page 9 HUR REPORT OF THE TRu￿EE5 Continued FOR THE YEAR ENDED 31 AUGusf 2022 A major risk we fa￿ as a thurch is to fail to INe up to the tead)ings of Jesus Christ in our dealings with each other and w￿h those with whom we come into contsct. The work of the Church can ￿ descrittd as ￿Ing Dfold: to nurture ts members and develop their relationship wrth G(MJ and, reaching out to those in the wider community, to demonstrate the Chrisban message through our life and teathirwJ. qualitative nature of our objecbves is one that the Trust￿5 consider to te at heart of our existence as the Moravian Church. We pay tribute to the ongoing commttment and hard work of our ministers, the staff at the headquarte￿ building and the numerous volunteets who offer such loyal serwtr through their own congregations and without whom there would be no Moravian ￿UrCh in these iskinds. We present this report as being a tnje refiection of our present tx)St￿In. REVIEW OF FINANCIAL posrrioN The Ststement of Financial ALtivitie5 summarise5 the movements in all the Group's fijnds during the year. This indicates that the Group recorded a ret inaEase in fvnds for the year of £2.882,667, compared to an increase of £3,813,678 in the preceding year. During trx)th the current and preceding finanaal years there have been a number of significant events and transactions that have distorted the performance for the year as the Church has instigated its restrurturing exerase to secure its finanoal ￿abilIty going forward and achieve maximum return on its investments. The Group's total income has decreased by £3,090,544 to £7.027,409 and totsl extEnditu￿ by £4,139,687 to £7,460,665. This reflects the dosure at the preceding year end of Ockbr(x)k Schwl, the costs associated with this exercise and the restrurturing exerose carried out. Totsl net assets of the Group amount to £29,783.940 and are represented by the Group's fixed assets. At the year end the Balance Sheet on page 15 discloses net current liabilities of £1,952,547. This primarily reflerts short term borrowing from UBS during the restructuring exercise for the Group. The financial posib.on of the Group remains strong, having an investment portfolio in S￿kS arwj shares of E5,097,609 as well as a property portfolio held for investment purrM)ses of E26,817.467. The Trustees rewew the group and individual entiknes reserves py)liaes on an annual ba￿S taking account of the total net assets of each entty and group as a whole, proFosed activities for the forthcoming year and their funding requirements. Page 10 HUR REPORT OF THE TRu￿EE5 Continued FOR THE YEAR ENDED 31 AUGusf 2022 REVIEW OF FINANCIAL POSMON {Continued) Investment Policy and Objectives Our investment policy is developed in consultsts.on with the Finan￿ and Property Committee, which makes recommendations to the PEC. The present investment obj'ecbve is to achieve a balanced return in the investment portfolio. The investment Fortfolio is managed by prof￿0￿al fund managers and consists entirely of listed securities. Investment decisions are based on an ethical stance with the investment brokers being instructed to void specific commcxjities and prioritise those with reasonabk environmental sensitivity. The movement in market value of investments this year. ￿>th realised and ￿n￿alISed, amounts to a loss of £199,229. Given the Charivs ethical investment stsn￿, ts income requirements and the current economic climate, the Trustees consider trE p)rtf(Aio's perfomiance to ￿ satisfactcry. The investment properties ￿present the managed ￿te5 and are held to generate rental ino)me for the Moravian Union. The ajrrent Ma￿et value of inv*mert properbes has been estimated at £26,817,467, an increase in value of £2,648,734 partfy offset for the prowsion for impairment of two properties, and net rental income is £58,054 compared to the pre￿Ing financial year with net rentsl income of £122,619. Net rentsl income will fluctuate year on year de￿nding on the level of mairttenar￿ work requi￿ on the estate s prokErties. Fundraising Policy The Charity does not use fundraigng semces. consuknnts or extemal professional fundrai*rs to undertake fvndraising artivitye5 and no data is shared with or sold to any extemal agencies. The Charity not undertake Dirert Mail arn1 dces not approach or pressure vulnerable people to support its work. A complaints procedure is in p￿￿ arKI the Charity adheres to the Fundraising Cixye of praCb￿ issued by the Fundraising Regulator. FLryURE PLANS During the forthcoming year the Trustee5 aim to conb.nue to discharge their current re5ponsibilttie5 effective and efficiently within the constraints of resour￿ b)th financial and human. The Trustees continue to review tt)e strurture of administration to ensure that we are operating as effiaentty as is possible given the above constraints. Furthermore, the Church, wtth a view to SiM￿lf￿.￿j its record keeping and finanaal re[￿ing requirements, will continue to rewew its trust ledgers in to gain Charity Commission crmsent to the merger of a number of the smaller funds. trust￿ determined the followiThJ prinopal objecbves for the year ending 31 August 2023.. To continue to offer training for ministy or lay preathing to all who wish to be trained provided the trustees a￿ satisFied about their suitsbilty. To ensure that all congregations are encouraged to adopt best pracbce in connecbon with their work w￿h children and young people. To continue to administer the Church s assets in a way which is appropriate to the Church's charitable mission and to maximise returns for the benefit of the Church subject to these constraints. To continue to promote gwd practice in the archiwng of the Church's and Congregations, records by promoting communicab.on between the archivist employed at Church House and indimdual CongregatlOn5. To continue to support work in its partner ProwrKe of the Mordvian Church in Western Tanzania (MCWT) and the work in South Asia, the responsibility for the latter being given to the British Province by Unity Synod. To continue to support national and local ecumenical bcxjies and to ty and develop ways of working more closely with other denominations. By maintaining close contsLt with the Board of Q)vernors and senior staff of the Fulneck %thool, to support their drive for sustainability and academic excellen￿, particularly as a result of the current economic climate. To implement the activities associated with the Proj￿ 32 Progrdmme for renewal and growth. Page 11 HUR REPORT OF THE TRu￿EE5 Continued FOR THE YEAR ENDED 31 AUGusf 2022 RESERVES POUCY The trustees recognise that the Charity requires reserves to alk)w itto continue its work in the event of unforeseen interrupb.ons to its income streams. The trustees consider the Chartty's reserve requirements at least annual and to be prudent are of the opinion that unrestrirted reseNes equivalent to at least one yearfs total expenditure should be held. At the current year end unre5triLted reserve5 lexduding those earmarked for designated purposes) amounted to £461,677 and this represented approximatety 13% of annual expenditure. excluding Schwl's expenditure. The current economic climate has continued to have a significant impact on the activitie5, income generation and expendrfcure of the Group. The Trustees have Conside￿ this when assessing the Charity's abilty to continue as a going con￿rn and the level of reserves it will require. As expLiined in note I to these financial ststements, the Trustee5 are of the opinion that the reserve5 avaiL3ble to the Charity are suffiaent to ensure that the Charity continues for the foreseeable future. STATEMENT OF TRusfEES' RESPONSIBILITIES trust￿ are responsible for p￿Paring the Rep)rt of the Tnstees an¢J financial statements in acctydance with pplICab￿ law and un￿ed knngdom Accounting Standards (United kn'ngdom C￿nerallY Accepted Accounting Practice), including Financial Rewrknng Standard 102"The Finanaal Repw)rting Stsndard applicab￿ in the UK and Republic of Ireland" Charty law requires the Trustees to prepare finanaal statements for each finanaal year whid) give a true and fair view of the stste of affrdirs of the Group and of the incoming re9)Ur￿ and application of reSoU￿S for that period. In preparing those financial statements, ￿ Trust￿ are requir￿1 to.. _ selert suitable accounting policies aryl apply them (c￿￿￿ently. observe the meth(￿$ and princip￿$ of the CJ)arib"es ￿RP. make judgements and estimates that are reasonable and prudent: prepare the financial statements on a gcxng cor￿rn bass unless it is inappropriate to presume that the Group will continue to 0￿rate. The Trustees are resp)nsible for keeping prottr accounb.ng records which disclose with reasonable accuracy at any time the financial pO￿tIOn of the Parent Charity and the Group and to enabk them to ensure that the financial statements compty with the Charities Act 2011. the Chartty (Accounts and Retx)rtsl Regulations 2008 and the provisions of the trust deed. They are also reswnsible for safeguarding the assets of the Parent Charity and the Group and hence for taking rea￿nab￿ Ste￿ for the prevenbon and detection of fraud and other irregularities. k/rk /ty fvltssR. M. A IAXY Chair Date: 21 September 2023 Page 12 NDEPENDENT A DIT REP TO THE TRUSTEES OF THE BRftISH PROVINCE OFTHE UN￿As FRATRUM OPERATING AS MORAVIAN CHURCH OPINION We have audited the financial statements of The Bnb'sh Province of the Unitrs Fratrum otErating as Morawan Church for the year ended 31 August 2022, which comprise the Consolidated Statement of Financ￿1 Activities, the Group and the Parent Charitys Balance Sheet, the Ca5hflow Staternent and the reLited notes. including a sutnrnary of sgntficant accountiw tK)liae5. The financial reporting framework that has been ap￿Ed in their k¥epara￿.￿ is applicab￿ and United Kingdom Accounting Standards Iunited Kingdom Generalty Accepted Accounting PraCb￿), induding FinarKial RetM)rbng Stsndard 102 'The Financial ReportitvJ Standard ap￿Kab￿ in the UK awKI RqxJtAK of Irekind.. In our opinion financial statements.. give a true and fair view of the state of the parert d￿rity and group'5 affairs as at 31 August 2022, and of Ihe groups incoming resour￿ and application of resour￿, f￿ the year Ihen eThJed,' have been proper￿ prepared in aCcOrda￿e wrth Unrted ￿r￿jd0rn Generally Accepted Accounting Practi￿. including Financial ReF()rting Standard 102 Yhe Financi31 RekThJting Stsndard in the UK and Repjblic of I￿land.; and have been prepared in ￿￿rdan￿ wth the r8]uirements of the Charrties Art 2011. This reth)rt is made to the Tn&ee5 in acCOrda￿e wrth secbon 144 of the Char￿e5 Act 2011 arKI the regulaborLS made under seLtion 154 of that ACL Our aud￿ work has undertaken ￿) that we might state to the Trusiees those matters we are rquired to state to the Trust*s in an aLHJitors' report and for ￿ other purp￿. To the fUl￿t extent permitted by Liw, we do not accept or assume ￿$[OnSibIlity to anyL¥* other than ￿ chanty and the charws Tnst*s for our audit work, for this report, or for the opinions we have forrned. BASIS FOR OPINION We conducted our audit in accordance with IntematiC￿aI Standards ￿ Auditing IUKI (ISAS IUKII and applicable law. Our ponsibilities under those standards are further descrited in the Auditor's rewnsibilities for the audit of the financial Statements section of our reptKt. We are Inde￿ndert of chartty in ￿cOrdan￿ with the ethKal requirernents that are relevant to our audit of the financial ststements in UK. ind￿ing the FRC'S Ethical Stsndard, and we have fulfilled our other ethical resronsibilrties in accordance wrth requirements. We believe that the audrt evidence we have obtained is sufficient and appropriate to provide a bas￿ for our OpinK￿. CONCLUSIONS RELATING TO GOING CONCERN In auditing the financial ststements, we have corduded that the trustees. use ofthe COn￿M basis of accounting in the preparation of the financial statement5 is apwopriate. Based on the workwe have rerfomied, we have Th)t identsfied any mth.al uncertainties ￿th"n9 to events or conditiorts tha¢ individually or collecbVe￿, may cast significant dwbl on the chatitsbk companvs ability to C￿tinUe as a goiro conwn for a peri￿ of at least tWe￿e mnths from when the finanaal staternents are authorised for issue. Our reswnsibilities and the resp￿￿51￿￿.1￿oeS of the trustees wrth resW to￿ng concem are described in the relevant settK)ns of this report. OTHER INFORMATION The other infortnation comprise5 the information IndUd￿ in the Rep)rt of the Trustees. Other than the financial stater[￿ts and our auditors reFK)rt ther￿. The trust￿ are respor6ibk for the other inf0M￿tion. Our opinh)n on the financial statements tkns not o)ver the (ther informath)n and we th) Th)t exp￿5$ any fomi of assurance conclusion thereon. In CoNn￿￿On with our aud￿ of the financial statetnents. our restx)n5ibilty is to re￿ the other inforrnation and, in doing so, consider whether the other Infomation is materialty I￿On$￿tent wth the finanoal strdtema)ts or our know* obtained in the audit or othenwise awRars to tE Material￿ misstated. If we idenb.fy such material inconsisterr￿ or apparent material rniS5tatements, we are required to deterrnine whether ￿re is a material misstatement in the financial staternents or a material misstatement of the other infom)ation. If, based on the workwe have perf0M￿d, we conclude thatthere is a material mi￿tatema1t of ths other informakn"￿7. ￿ are rLyuired to that f￿. We have nothing to report in this regard. Page 13 INDEPENDE1￿ AUDtroRS REPORT TO THE TRusfEES OF NITAS FRATR PERATIN THE BRITISH PR FTHE RAVIAN RESPONSIBILrtlES OF THE TRiISTEES As explained more fully in the Statrmert 0fTrust￿, ReswM"bilrt￿ tl* trustees a￿ r￿￿￿ble for preparing the Report of the Trustees ar￿ the finarKial ststements and for being satisfied that they give a true and fair view, and for such intemal control as the trustees determine is necewry to enable the weparation of finanoal ststements that are free frorn material rni5Statement, whether due to ftaud or error. In preparing the fina￿la1 ststements, the trustees are restA)ngt4e tr assesgrKJ the tharivs abilty to continue as a going concem, dl￿1051ng, a5 applicaNe. rnatter5 related to gK)ing c(xKem arKJ using the going concern ba515 of accounting unksg the trustees either intend to liquidate the charity (K to cea* operations. or have rK) realistic altemats.ve but tr) do so. AUDrroR'S RESPONSI8IUTIES FOR The AUDrr OFThE FINANaAL STATEMENTS We have been appointed as auditors under Section 144{11 of the Charrbes Art 2011 and retx)rt in with regulation made under that Act and relevant ￿u￿.0￿5 made or haMTrg eff£rt thereunder. Our obiertives are to obtain reasonab￿ assurance atrxxrt whe*her the finarrial s1atements as a whole are free from material Mi￿tatement. whether due to fraud or error. and to issue an audrtorfs ￿￿rtthat indudes tsur opinion. Reasonaue a￿Uran is a high level of assurance but s not a guarantee th3t an audit conducted in ￿cordan￿ wth ISAS IUKI will always detect a rnaierial misststernent when ￿ e￿Sts. mI￿te￿￿ts can arise frorn fraud or error and are considered materwl if, individual or in the aggregate, they could reasonabty iE exr£cted to infiuerKe ecorK)mic deogors of users tsken on the basis of these financial 5tatetnents. Our objettives are to obtsin reasonabk assuran￿ whether the finanoal *atements as a whole are free from material rnisstatement, whether due to fraud or error, and to issue an auditorfs retx)rtthat indudes our opinion. ReasonaNe assurance Is a high level of assurance but is not a guarantee that an audit conducted in accordaTKe wrth Isk IUKI will always detect a material misstaternent when it exists. Misstatemwts can arise from fvaud or error and a￿ conside￿d mater￿1 if, individual or in the aggregate. they could rewnabty extx(ted tt) InfiUen￿ ecOr￿1C de(igors of users taken on the basis of these financial 5tatetnents. IrreguL3rf(ies, induding fraud, are instances of Th)n41 14.752.768) (789,728) {913,893) (6.546.772} 1729,4991 1898,2281 (10.702,124) Charitable Artivitses Total Expenditure (1.771.IK6) (754.887) 14.934.772) (7.4fA).665} (l1.f￿,3S2) Net Gainsl{Lossesl on investment assets io, li {T3.6131 2.505.C (9),385) 2,332.(￿2 6.265,263 Net incomellextenditure) 63,747 1.772536 62,543 1,898,826 4,782,864 other Recognised Gainsl(Loss•s) Actuarial Gains1lLos5es) on Defined Benefit Peny heme 19 983.841 983,841 1969,1861 Transfers between r2Ee 17 (1,092,tKA) 1,564J20 (472,3161 NET MOVEMENT EN FUNDS (1,028,257) 4,320,697 (409,7731 2,882,667 3,813,678 Reconciliation of Funds: Total Funds Brought Forward As originalty stats ior year ￿JuStsnent A5 restated 17 23 17 1.489.934 21.418.276 4.962.249 27.870.459 23,087,595 1.489.934 20.449.0￿) 4.￿,249 26,g)1,273 23.087,595 TOTAL FUNDS CARRIED FORWARD All gains and losses arising in the year have been included in the Ststement of Financial Acbviiies and relate to continuing operations. a resu￿ of its acb"vities for the year the parent charity, The Mordvian Church, disck>sed a net decrease in funds of £80,439. Its totsl net assets at the year e￿1 stood at £1,039.571. The notes form part of these finanaal ststements. Page 15 MORAVIAN CHURCH OLIDATED BALANCE AT 31 AUGusf 2022 HEEr Group Parent 2022 2021 Resiated 2022 2021 FIXED ASSEts Tangible Fixed A￿ts Investment Property Investments 4.137.187 26,817,467 4.736,233 24,299,983 5 509 107 34 545 323 363,1)03 370,726 io li 161694 524 697 36 052 263 CURRENT ASSErs stock Debtors Cash at Bank and in HaThl 12 13 27,524 507,367 1.160,678 1,695,569 31,377 425,828 1,480,518 1.937,723 120,267 883,124 1,003,391 117,720 935,505 1,053,225 LIABILMES Creditor5- Amounts fallirrfJ due within one year 14 3 957 151 475 189 cuRREr￿ ASSEtS 2 019 428 514 874 578 036 TOTAL ASSETS LESS CURRENT LIABILrrIES 34.099.716 32,525,895 1,039,571 1,120,OLO CREDThORS: Amounts falling due after more than one year 15 (751.217) (881,934) t)efined Benefrt Pension abilty 19 (3.564,559) (4.742,688) The Funds of the Chaffty: Restricted Funds Unrestricted Fu￿S General Designated Fund - Defi[￿d Benefit Pension Liability Desgnated 17 4,552,476 4,962,249 1,009,630 1,093,222 17 461,677 1,489,934 1,486 1,470 17 17 (3,564,559) 28,334,346 (4.742,688) 25.191,778 21939 024 28,455 25,318 TOTAL FUNDS Approved by the Tnjstees on 21 September 2023 and signed on their behalf by Rev Dr L. Thomps¢ Miss R. M. A Hoey Charity Number: 251211 The notes fomi part of these finanoal statements. Page 16 MORAVIAN CHURCH NSOLIDATED CASHFLOW sfATEMENT FOR THE YEAR ENDED 31 AUGU￿ 2022 2022 2021 NET CASH (OtrrFLOW) FROM OPERATING ACtIVTTIES (1.983.495) 13,741.6881 CASH FLOWS FROM INVEsfiNG Inv&tment irmne I,￿,182 1,142,792 Payments to wuire tangiNe fixed assets Proceeds on dlwsal of tsngible (28,970) 126,4981 l.L19.595 260,467 Proceeds on diswsal of invesbnent property assets Purchase of fixed a55et investrnents PriKeed5 c¢ fixed Investsrthts io li {￿.839) 11,554,101) li 1 194 936 1676 gJ8 2,403,904 1,499,568 CASH FLOWS FROM FINANCING ACtivrriES Inter￿l paid Movement on Loans (151,1761 165,1841 I278￿1 1213 417 CHANGE IN CASH AND CASH EQiIIVALENTS {319.840) {1,028,703) Cash and Cash Equlyalents at the beginning of the reporting peri(Kl 1,480,518 2,509,221 Cash and Cash Equivalentsattht end of the reporting peri￿1 RECONCILIATION OF NEf MOVEMENT IN FUNDS TO NET CASH OUTFLOW 2022 2021 Net Movement in funds for the lear Investment Income Interest Paid De￿eC￿￿"on (GainsllLosses on diswsal of prorety fixed awts {GainsllLo55es on distx)5al of otherfixed a (GainsllLosses on investment assets Investment asset im￿lrMent (Increasellt)ecrease in Strrk (Increa5ellDecrea5e in Debtor5 IncreasellDec￿*l in Creditors Movetnent on Defined Benefft Pensi(￿ Liabiltty 2,882,667 {1,fy87,182) 151.176 159.122 1652,4101 1,713 {2,463,3321 131,250 3,853 181.5391 149.316 1178 129 4,782,864 11,142,792) 65,184 227,250 {71,1841 {38,608) 16,265,263) 5,212 129,120 11,166,039) 267 432 NET DEBT RECONCIUATION 0110912021 3110812022 Cash at Bank and in HarKJ UBS facilty drawn dovm Loans repayable wthin one ye Loans repayable outsiiÈ one 1,480,518 (1.975.2(M)) (625,661) 1&81,934) £{2,(K)2,2771 (319,8401 1,160,678 (1.975,2(X)I (167,3051 (751,2171 £IL,733,0441 458,3% 130,717 £269,233 Page 17 MORAVIAN CHURCH NOTES TO THE FINANCIAL ￿ATEMEr￿s AccoupifING POUCIES Basis of Preparation The financial statements of the Charity, which is a public ￿nefft entity under FRS 102, have been prepared in accordance with the provisions of the Charities Art 2011, the Statement of Recommended Pracb "Accounting and ReForting by Charities- applicable to Char￿leS preFx4ring their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), FRS 102 and the Charities Art 2011. The financial re[M)￿n9 framework that has been applied in their preparation is applicable law and United Kingdom Accounting standards (Untted knngdom Generally AC￿pted Accounting Practice), including FRS 102. The financial ststements consolidate the incoming re9)urres and res(wr￿ expended, assets and liabilities of the following entits"e5- Moravian Church and rts Congregations (The Parent) The Moravian Union (IncorkXj￿ted} Fulneck khfy)I Ockbrook SchoK)l (untsl 28 Juty 2021) Fulneck Choir House The presentation currency of the finantial siatements is P¢yJnd Sterling (£). Going Concern The Group is currenty undergoing a firbancial reStr￿rIng exerLise note 22) as a regjlt of the current economic climate, Ockbrwk Sch(K)l entering administrats.on during the pre￿Ing financial year and its loan to Fulneck Sch(x)I to support its finanoal stability. This exercise involves iys IOOOh owned subsidiary, The Moravian Union, taking respK)nsibilty for repayment of the ￿kbr[m)k Sch(K)I bank loans, as its guarantor- borrowing funds secured against its investment px)rtfolio to promde loans to Fulneck School, as part of a Inancial support package,. and reorganising its investment properties portfolio to increase the net income generated. The trustees consider that the￿ a￿ no material uncertainbes aLx)ut the Charty's ability to continue as a going con￿rn for the foreseeable ftrture. In fomiing this opinion, they have considered the impart of the ongoing financial restructuring exercise on LNJth tts income and expenditure for at least a period of twelve months from the date of approval of these finanaal statements. They consider the current level of the Charity's r￿eNe5 and plans in Pla￿ are sufficient to ensure that it remains a going concem for the foreseeable future. The following accounting ￿lIaeS have been applied in preparing the financial statements. Income Recognition All income is recognised in the Statement of Financial ALtivtbes On￿ the charity ha5 ent￿lement to the funds, it is probable that the income will te received and the amount can ￿ measured reliably. Income from donations and kgaaes is generally recognised ￿ r￿lpt. However, income from the Mrs E M Bates Trust is accrued at the baknce sheet date if the trustees are satisfied that the criteria of entitlement, certainty and measurement have b￿n met on the ba￿S of deck3rations andlor payments by the donating organisation after the year end. Fees receivable and charges for Ser￿￿S and use of premises are accounted for in the period in which the Servi￿ is prowded. Fees receivable are stated after deduth.ng alk)wan￿, scholarships and other remissions granted by the schfy)Is. RentrlIncome Rents receivabk are induded on an accruals bags. Investment income is recognised when ￿1Ved by the inveknt manager Page 18 TE THE FINAN IAL ATEMEN FOR THE YEAR ENDED 31 AUGUST 2022 in AccourirING POLICIES (Contlnued) Income Recognition {Continued) Other income is generally recognised on an accTuals b￿"s. Expenditure abilib'es are recognised when a kgal or constnjctive obligation to make a payment arises, it is probable that a transfer of economic benefits will be required and it can be measured reliably. Expenditure is charged on an accruals basis. All expendthre heads in the SOFA indude tx)th direct costs and apFX)rtioned overhead costs. Overhead costs are appx)rboned on the ba&s of employee ts"me. charitab￿ activities represents the dirert costs of carrying out the charivs aims, together with all(Kated support costs which are apportioned to the diffe￿nt expenditure heads on the basis of staff time. Governance costs are the costs of meetyng the d￿ri￿5 regulatory Obligat￿n$ and are included within sup￿￿ c(Ists. St¢ck St￿k is valued at the lower of cost and net realisable value. Investments Investments are a form of bagc financial instrument and a￿ initially rec(NJnised at their transartion value and subsequenvy measured at their fair value as at the balan￿ sheet date using the closing quoted market pri￿. The statement of finanaal aLtivttses includes the net gain5 arKI kisses arising on revaluation and disposals throughout the year. I gains and losses are taken to the statement of financial aLtivttie5 as they arise. Realised gains and losses on investments are calculated as the dIffe￿nCe tetr*en sales pr{￿eedS and their opening carying value or their purchase value if acquired subsequent to the first day of the finanaal year. Unrealised gains and 105se5 are calculated as the drfference between the fair value at the year end and their carwng value. Realised and unrealised investment gains and k)sses are combined in the ststement of financial acb"vits"es. The Trust not acquire put Ow'(￿5. derivatives CK other comrlex finanaal instwments. The main form of finanaal risk fa￿ by the charity is that of volatility in equtty markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment Cor￿rning equities and within certain sectors or sub sectors. Investment Property Investment propety is valued at Ma￿et value at the bala￿ sheet date. It was independendy valued on 3 July 2015 by SHP Valuers Ltd, a firm of Chartered SuNeyors registered with the Royal Institute of Chartered Surveyors (RI￿), based on infomiats.on on the condition of the properkn.es supplied by the Charity's estate manager, John Forrester Ltd. The market value of the proFerties is reviewed annualty and adjusted based on the condition and usage of those properties, as advised by John Forrester Ltd, using the Halifax Regional House pri￿ Indi￿5 and other suppK)rting informats.on when available. Payments for opefating lease rentals are tharged to the income and expenditure account over the period of the knse. Assets acquired urkler finan￿ leases or hi￿ wrchase contracts are capitslised and depreciated over the life of the lease with payments to the L￿Ing appcKtioned L￿￿een capthl which writes down the outstanding obligation and interest which is tharged to the Ststement of ￿nanaal Activities over the period of the lease on a siraight4ine basis. Page 19 RAVIAN CH RCH NOTES TO THE FINANCIAL sfATEMENTS R THE YEAR ENDED Continued ACCOUPItING POLICIES (Continued) Tangib￿ fixed Assets All freehold propeity is analysed be￿een fvnctional prope￿e5 (eg Churches, Church Halls, Manses and Church House) and investment properkn.es (the'eststes propErties? which are maintained to generate rentsl income. The funcknonal properties are carried atcost and depreciated. The investment properties are carried at market value. For functional properties, dep￿iè￿.0n is not provided on fr￿hold land. The cost of buildings less their estimated residual value is depreciated on a straight-line bass at 1% pa for the stwcture and 2.50/0 pa for the rwf. Certain properties used by congregations are not reflerted on the balance sheet, although legal title may be vested in the Union, a5 ttw Y￿e acquir8J a numLEr of years ago arKI no record of their cost is available. Depreciation of fixed assets is provided at rdtes estimated to wrtte off the cosL less estimated residual value of eath asset over ts exp*cted useful life, as follows: Unkpn 1%-2.5% NIA 25-33.3% io-iwo NIA 33.3% NIA 25% Over the lrfe of the lease Freehold land and buildirKJs Leasehold land and buildiThJs Furniture and equipmert Computer equipment Motor vehicles Leased Assets NIA Taxation For all charitable activities, the Church enjoys exemption from cowation tsx under the Corporation Taxe5 Act 2010. The charity is not registered for Value Added Tax (VAT) and expEnditure includes irrecoverable VAT where incurred. Advance Fees Scheme Where the schcK)l offers parents the oprK>rtunty to pay for up to seven years tuitr.on fees in advance in a￿OrdanCe with a written contrart. the amounts received a￿ inve#ed and interest is accwed to contrarts. This is treated as deferred income until the pupil joins the school whereupon the fee5 for each school term are charged against the remaining balance and tsken to income. Any shortfall is treated as a deduction from sch(K)I fee income and any excess acuued is treated as additional school income. Financing costs include amounts accru￿ in aC(X￿dance with the terms of the Advance Fees contrarts. Fund Accounting Funds held by the tharitsble group are eIt￿:_ Unrestricted general furKJ5 - these are furK15 vthich can be Us￿1 for any purpose which is in accordance with the chari￿5 obj'ecbves at the discretion of the Trust￿. Designated funds- these are funds set as￿le by the Trustees out of unrestricted general funds for a specific future purt#)se or proiert. All sums applied to the purchase of pro￿ty are classified as designated funds. Restrirted funds- these are funds that can onty be used for a pa￿CUlar purtKJse within the objerts of the charity. Restn"th"ons arise when speofied by either the donor or by way of indication when certain funds are raised. Page 20 RAVIAN CH RCH NOTES TO THE FINANCIAL sfATEMENTS R THE YEAR ENDED Continued ACCOUNTING POLICIES lQJntinued) Pensiolbs The different entitie5 of the Moravian Church run a variety of ￿n￿on schemes. Further detsils of each scheme are sh¢)wn in Note 19. As explained in note 19 to these financial statements, The Moravian Union has recognised discretionary pensions payable to ￿tired ministers as an obligation. This liability is valued by The Moravian Union's actuaries (BWCII. The Trustees rewew the reasonability of a￿MptionS underlying the most recent valuation annually and consider whether a new valuation is require. If a new valuation is not considered ne￿sary, adjustment should be made to unwind the discount applied to the most recent valuation by one year. The Trustees consider that the assumpkn.ons ur¥Jertying the prevtous valuats"on, as at 31 August 2017, have now changeé significandy and an actuarial valuab.on was commissioned aThJ completed on 6 April 2023 providing valuations as at 31 August 2021 and 31 August 2022. The actuarial valuation commissioned as at 31 August 2022 indicated that the assumptions as at 31 August 2021 had changed significantsy and a prior year adjustment has been made (Note 23). Movements during the year are disclosed in note 19 to these financial ststements. With effect from 31 December 2015 the discTetionary Scheme for attive members was discontinued and pla￿d by a defined contribukn.on scheme. The charitsble company's liability under this scheme is limited to paying contributions as they arise and these costs are rec(NJnised in the accounts when the conthbutions fall due. The Moravian Union contiibutes at the rate of 7% of pensionable salaries to the private pension plans of a number of employees. As the charitable companfs liabilTty under these schemes is limited to paying contribub.ons due to the schemes at the appropriate time, these costs are recognised in the accounts when the contributions fall due. A numtrEr of the professional staff employ￿1 at Fulneck ktrKX)I participate in a multi*mployer pension scheme, the Governments. Teachers Pension Defined Benefits Scheme, for its teaching stsff. The TPS is n unfunded scheme and contribubons are calculated to spwd the cost of pensions over employees. worlang lives with the Sch(K)l in such a way that the pen￿on cost is a substantially level per￿ntsge of current and future pensionable payroll. The TPS is a wnulb"-empk)yer pension scheme open to the School'5 teaching staff and it is not wssible to identify the assets and liabl1￿leS of the scheme attributsble to the Sch(x)l. The TPS is treated as a defined contribution scheme and the contributions recognised as they are paid each year. The scheme is managed by the Department for Education. Contributions to defined contribution pension 5d￿Me$ a￿ tharged to the statement of financial activtses in the year in which they become payable. Short-term debtors and creditors Debtors are recognised when the Charty is legally entitled to the income after any perfomiance conditions have been met, the amount can be measured reliably and it is probable that the income will be received. Creditors are recognised when the chartty has a present legal or constructive obligation resU￿1ng from a past event to make payment to a third party. it is probable that setdement will be required and the amount due to sethe the obligation can be measured or esbmated reliabty. Page 21 RAVIAN CH RCH NOTES TO THE FINANCIAL sfATEMENTS R THE YEAR ENDED Continued ACCOUNTING POLICIES (Continued) Key Judgements and Estimates (i) Financial instrument dassificats.on The classification of financial in5tnJments, lth assets a￿1 liabilibes, as 'basid or 'otherf requi judgement as to whether all applicable condth.ons as basic are met. This include5 the type of invesiment or loan and its return. The Charty only has financial assets arK1 liabiltties of a kind that qualify as basic financial instruments. These are initialfy recognised at transaction value and subsequendy valued at their settlement value. Concessionary loans received are inttialty recognised at the amount r￿1ved with the carrying amount adjusted in 9Jbsequent years to ret1￿* repayTnents a￿1 any ￿crUed interest arKI ￿1]uSted, if necessary, for any impairrnent. (li) Useful lives of functional prok￿5 The refnaining useful lives of depreciable properties are reviewed by management at eath repK>rting date and, if necessaryi the depreciation tharge adjusted accordingly. {iiil Recognition and valuation of investment rAor*rties The classification of The Moravian Union's properkn.es between funth.onal and investment purposes requires judgement of the use of those prOpe￿e$. Management annually reviews the usage of properties and their da￿fiCation is amend￿ when necessary. The market value of pr¢Jperknes classified as invesbnents is annually wewed by management and, based on the condition of those proterties. value is adjusted using a rec(NJnised market indices. (w) Valuation of retired ministers, defined benefit pension liabilty The assumptions underfying the pengon scheme actuarial valuation are remewed annually by the trustees. If they consider that the prinapal actuarial assumptions have not changed significantly the liability at the year end should LE adjusted by unwinding the di5COUnt by one year. If they consider that changes in the prinopal actuarial assumpts.ons will have a material impatt on the value of the liability then an attuarial valuation will be commissioned. It is intended that an artuarial valuation will be carried out at least every five years to realign the liabiltty. As detsiled al￿ve under Pensions the actuarial valuation carried out indicated that the 2021 assumptions had changed sign"rficantly and a prior year adjvstrment has been made (note 23). (v) Lk>ubtful debt prowsion The recoverability of outstanding debtor bakinces is wiewed by *nior management on an annual basis. When recoverability is considered doubtful, a provision is made against the balan￿. Page 22 RAVIAN CH RCH NOTES TO THE FINANCIAL sfATEMENTS R THE YEAR ENDED Continued 2. DONATIONS AND LEGACIES UnrertriLted Funds Restrirted General Designated Funds Total 2022 Total 2021 Mrs E M Bate5 Trust Grdnts Lk)nations and Legacies The London Mission in Aid of Moravian Mis90n 333.956 333,956 20,609 843,929 315,062 484,898 832,116 20,609 842,629 1,3(Kl 63,000 £398,256 63,0(N) £1,261,494 63,000 £1,695,076 £863,238 3. OTHER TRADING AcfIvThIES Trading ￿￿vitieS Fundraising events 74,571 £74,571 74,571 £74,571 133,509 £133,509 4. INVESTMENT INCOME Quoted Securities Rents Receivable Bank Interest 15J33 71,338 189,075 175 £260,588 172,735 908,681 5,766 £1,087,182 199,693 937,781 5,318 £1,142,792 719,606 5.591 £811,261 £15,333 5. INCOME FROM CHARrrABLE ACTivmES School Fees Fulneck khcM)I OckbrTr)k School 3.625,516 3,625,516 3,143,952 2,956,504 6,LOO,456 16,070 14,771 21,059 114,742 £6,267,098 3.625,516 158,816 11,000 191 102,780 £3,898,303 3,625,516 158,816 11,000 19,365 137,055 £3,951,752 Congregational ACtiV￿e5 Unity Income Book Sales Other Activtses 19,174 27.265 £46,439 7,010 £7,010 6. OTHER INCOME Gain on disp)sal of fixed 652.410 652,410 71,184 808,294 Net liabilities transfer £652,410 £652,410 £879,478 The net liabilities transfer in the preceding year representsthevalue of the net liabilitie5 of Ockbrook School leaving group control on the 28 July 2021 when it was put into Administration. Page 23 om00￿ try r4 o c> { è ¥%° o£0 >cc IL Page 24 MORAVIAN CHURCH NOTES TO THE FINANCIAL STATEMEKrs Continued FOR THE YEAR ENDED 31 AUGUST 2022 8. STAFF COSTS Moravlan Moravlan Fulned( Ockbn)ok urch Union Sthool Sthool 2022 Totsl 2021 Totsl Gro55 Pay Social Security Costs Pension Costs 425,375 272,082 26,996 19,016 318,094 2.346,037 192,004 333,4 2,871,441 3,043,494 263,583 432,026 3,n9,103 5,248,889 461,528 809,646 6,520,063 79,610 549.568 Pensions to ministers Other stsff costs 11,523 £561,091 4,433 £322,527 £2,871,Ml 15,956 £3,755,059 £6,520,063 Included in Note 7 as follows.. Stsff Costs Pensions & Tax Archive Costs Ministy Ministerial Tffjining Ywth and Child￿n 268,921 2,871,441 3,140,362 5,911,549 53,606 53,606 51,616 520,519 518,112 762 701 39,810 38,085 £3,755,059 £6,520,(kn3 No. No. 520,519 762 39,810 £561,091 No. £322,527 £2,871,441 Average Stsff Numbers.. Teaching Ministers 55 55 14 146 14 52 212 14 45 i¢KJ 17 123 Number of e￿P10Yees earning in excess of £60,OLK) during the peri￿j were as fdlows.. Between £70,001- £80,OC Between £80,001- £￿,000 Between £90,001- £100,000 Between £lOQ,001- £IIO,O(K> The Key Management Personnel of the Charity are those persor6 hawng authority and reS￿nSIbl1ty for planning* diretting and controlling the acbvities of the Charity. direcdy or indirectfy, induding any trustee of the Charity- Key Management Personnel of the Morawan O)urch are considwed to it the memiErs of the Provincial Elders, Conference, who are also the trustees. The Trustees are not remunerated for their Servi￿ as such. However, the regulations and practice of syn￿ albws semng Ministers and Church House stsff to be elected to the Provincial Elders, Conference and to continue to receive their stipendslsalaries. txjring the period the followirKJ emoluments (including benefits) ¥Yere pahl. 2022 2021 Rev. D. R. Howarth Miss R. M. A. Hcey 34,031 An arnount of £9,805 (2021.. £6,289) was reimbursed to the Tn￿tee5 for travel expenses incurred during the peri(Ml. Page 25 MORAVIAN CHURCH NOTES TO THE FINANCIAL sfATEMEKrs Continued FOR THE YEAR ENDED 31 AUGUST 2022 9. TANGIBLE FIXED ASSErs GRQVP land •*1 klw Equiprnent Brought Forward Additk)ns DisposaL5 At 31 August 2022 9,684,831 1,399,149 28,970 (13,172) 1,414,947 17,895 11,101,875 28,970 13,451,156) 7,679,689 (3.437,984) 6.246.847 17,895 Dep￿cIatIon Brought Forward Charge for pErioyJ Depreciation on d15pK￿ At 31 August 2021 5.189,977 99,243 (2,970,803) 318.417 1,162,467 56,002 (11,459) 1,207,010 13,198 3,877 6,365,642 159,122 (2,982,262) 3,542,502 17,075 Net Book Value At 31 August 2022 £3,928,430 £207,937 £820 £4,137,187 At 31 August 2021 PAREKr £4.494,854 £236,682 £4,697 £4,736,233 Brought Forward Additk)ns DisposaLs At 31 August 2022 386,172 21,413 407,585 386,172 21,413 407,585 Depreciation Brought Forward Charge for Depreciation on disp￿ At 31 August 2021 15,446 7,r24 21.413 36,859 7,724 23.170 21.413 44,583 Net Book Value At 31 August 2022 £363,C(12 £363,LKJ2 At 31 August 2021 £370.726 £370,r26 Part of the above Land and Buildings are subject to Mortgage5 see Note 15. Certain properbes used by congregations are not refiected on the balan￿ sheet, although legal title is vested in the Moravian Union, as they were acquired a ￿gnificant nUM￿r of yeats ago and no record of their cost is available. Page 26 MORAVIAN CHURCH TES TO THE FINANCIAL sfATEMENTS Continued 10. INVESTMENT PROPERTIES 2022 2021 Market Value At I September 2020 Impairment Disposal Proceeds Realised gain on disp)sal un￿alIsed Revaluation Gainsl(L(6ses) At 31 August 2021 24,299,983 (131,2501 18,842,160 2,648,734 545782 The CharWs estate properties were valued on 3 July 2015 by an independent valuer, SHP Valuers Ltd, a firm of Chartered Surveyors registered with the Royal 1nsb.tute of Chartered SuNeyors. The valuation was a desktop appraisal of market value based on infomab.on on the c(thib"on of the properties wpplied by the Chartys estate manager, John Forrester Ltd. Investment property valuations as at 31 August 2022 are based on that valuab'on adjusted by the Halifax Seasonally Adjusted Regional House Price Quartaly IndKes published by the Uoyds Banking Group. In addition, the Estate properties have been rewewed by the senior management team and John Forrester Ltd for ￿tential impairment based on their Cond￿"0n, (Kcupancy and comparab.ve values of sitnilar properbes 501d on the Settlements or in the IcKal area. Two proF*rbes were identified where impairment was considered likew and th&r values have been adjusted accordingty. The Trustees recoKJnise that the properties investment portfolio is under performing and have engaged Lambert Smith Hampton to carry out an options re￿rt for the whole of Fairfield settlement, as well as valuab.ons of plots of k3nd at Wellhouse prope￿e5 at the Kingswood and Salem sites prior to sale. Future plans are to obtain ¢)ptions repN)rts on the remainiroJ setuements. 11. INVESTMENTS Group Parent Totsl 2022 Totsl 2021 Total 2022 Totsl 2021 Carying Value at BeginniThJ of year AdditK>ns Disposal Pr(Keeds Realised Gainsl{Lossesl Unrealised Gains/(Losses) Carrying Value at 31 August 2022 5.509.107 968,839 {1.194,936) 12,804 4.824,474 1.554,101 (1,676,YJ8) 142,165 27 171,248 142,169 (23,3821 {2,069) iio,000 The following investments individualty representsj more than 5% of the totsl market value of the ￿rtfolio. The char￿leS Prortrty FurKI 12. STOCK Group 2022 2021 Moravian Union Schcols StrKks 16,706 16,706 £31 377 Page 27 MORAVIAN CHURCH TES TO THE FINANCIAL sfATEMENTS Continued FOR THE YEAR ENDED 31 AUGusf 2022 13. DEBTORS Group Parent 2022 2021 2022 2021 Trade Debto Amounts due from related Oryanisab'on5 Other Debtors Prepayments aThJ Accrued I￿[￿e Agents Balan Rent Due 255.245 65,914 99,935 20,332 99,135 18,585 50,981 105,142 34,816 91,346 191,039 40,092 14. cRED￿ORS. Amounts f•lllng due In less than ywr Group 2022 2021 2022 2021 Loans and C￿erdraft$ Bank Loans Trade cred￿￿5 Amounts due to related Oryanisab'or Other Creditors I Security and other Tax Accnjals and Deferred ItKon Fees in advan Hire Purchase Contrart Bates Trust L(pn Il6.369 126,440 576,221 71,851 48.316 65,056 263,+18 1,553 223,703 1,586 2,073,515 89,748 330,045 861,063 2,033,183 141,192 277,788 7,485 175,200 184,844 other CTedthr5 include an advance of £1,975,200 (2021- £1.975,200) from UBS secured against the investment )rtfolio to aid the Moravian Union's cashflow FK6ition. The drawdown is subject to interest at 1.75Q/o above the UBS cost of funding the Call Loan for the re￿nt interest period and for the relevant currency and is repayable on demand. The advan￿ has been fulty repaid on 6 March 2023 from the proceeds of sale of listed investments as part of a planned restnjcturing exerci*. The market value of the investment portfolio managed by UBS at the yearend am￿nted to £3,745,814. Deferred Income ¢onsists enb.rety of fees in a(fvarKe. Group Par•rt 2022 2021 2022 2021 Balan￿ brought forward Rent and khool Fees received in advan Released to revenue during the 7,485 1.404,412 861.063 J7,485 Balan￿ carried f(¥ward Page 28 MORAVIAN CHURCH NOTES TO THE FINANCIAL sfATEMEKrs Continued FOR THE YEAR ENDED 31 AUGUST 2022 15. CREDtTORS: Amounts falling due in more than one year More than Group 2022 Bank LOar￿ . Fulneck ￿1 - Moravian Uni( 20,511 49,444 53,416 160,516 22,566 236,875 96,493 446,835 69,955 52,016 213,932 155,873 259,441 543,328 207,889 Bates Trust Lr>3n Other Creditors £121,971 £369,805 £259,441 £751,217 More than Group 2021 Bank Loans . Fulneck sd￿)1 - Moravian Uni( 20,608 59,818 60334 184,891 39,368 257,644 120,310 502,353 80,426 50,935 245,225 159,379 297,012 48,957 622,663 259,271 Bates Trust LL*n Other Creditors £131,361 £404,604 £345,969 £881,934 When ockbr￿k Schwl went into adrninistration in 2021, The Moraman Union as guarantor assumed responsibility for the liability in respect of Ockbrook School's wtstanding bank loan balan￿ which amount to £494,377 at the balan￿ sheet date {2021: 1993,422). of v4hich £47,542 was repayable within one year12021.' £546,587). The outstanding loans are secured against Morawan Union prortrty. Fulneck *h(x)I has ty)e bank loan12019), secured against the Fu1￿k Sch(K)I property whith is owned by the Noravian Union. At the year end £117,IK14 remain&1 outstandirKJ, of which £20,511 wa5 repayable within one During 2017 a loan of £500,(X)O was extended to The Moravian Union by the Mrs EM Bates Trust. The k)an was to provide investment funding to The Morawan Union to undertske a major fixed asset pro￿rts"e$ ￿pair programme. The loan is to be repaid over a pEn(Kl of 10 year5 and 15 Secured againsi 49 Creighton Avenue, a property valued at in excess of £1.3m. Interest is charged at 2% a￿)ve base rdte. The is considered a concessionary loan. Page 29 MORAVIAN CHURCH NOTES TO THE FINANCIAL sfATEMEKrs Continued FOR THE YEAR ENDED 31 AUGUST 2022 16. ANALYSIS OF NET ASSETS BEfwEEN FUNDS Unrestricted Funds Gentral Designated Totsl 2022 Funds Group Tangible fixed assets Investments Investment Prope￿e5 Cash at bank and in haTh other net assetsllliabilibe5) 10,507 1,936,3 611,381 141,044 I,ElJ8,943 307,295 26.206,086 240,904 3 593 441 2,517,737 2,853,924 4,137,187 5,097,609 26,817,467 1,160,678 7429001 778,730 1597 915 £2 Parent Tangible fixed assets Investsnents Cash at bank and in harKI Other net assetsllliabilities) 363,003 161,694 853,183 363,003 161,694 883,124 28,455 2021 (Restated) Unrestricted Funds Ti>tal 2021 Funds Group Tangible fixed assets Investments Investment ProFe￿e£ Cash at bank and in haTh Other net assetsllliabilitres) 5,554 2,OB8,8(KI 993,422 7,384 2 565 226 2,104,988 331,482 23.306,561 204,372 5 498 313 2.625,691 3,L￿8,82S 4,736,233 5,509,107 24,299,983 1,480,518 9 124 568 £26 90127 308,762 1 [￿1029 24 Parent Tangible fixed assets Invesbnents Cash at bank and in hand other net a55etsllliabilib.es) 370,726 171248 9)4,940 353 692 370,726 171,248 935,505 357 469 1.470 29,095 )oc> > c>m rq mr *r4 tyo r40 ij o i rf5(h tr4 £CW ÈÈ o c) zz Page 31 wc Ill 111 Ill 115 111181 ÈÈ 1 all p}1 £ I Il}111S11 1111 Iiiiillil t Iti li i) Page 32 MORAVIAN CHURCH NOTES TO THE FINANCIAL sfATEMENTS Continued 17. MOVEMENTS ON FUNDS (Continued) The broad purp)w of the main restricted and deggnated funds of the group are as folk)ws.' E￿ngelical- to Further the ￿lig1W5 obi&tives of the Mornvian awrd): Ministers emdurrEn15-to supw)rt the of ministers. S￿￿[KIS and reL*ed a)￿5. Education- towards educational ￿rr￿S,. Overseas- to fur￿ overseas msgty)ary ￿,. Propefty- cororegabons funds from Sa￿ of fU￿t￿￿OI prorety reStrIrt￿ for ftthre PmFetty use by the congregation; Relief of Poverty- to fund gran15 and sUPW)rt for the rel￿f of w)verty.' and Other- this is mack up of nurrEr(KJs srnall restrLted thatiors to fu￿1 aLtr11￿5 at ajryregati(￿S. Designated fund$ (kfined Benefit Pension ￿heme FUNI - we[￿ents the Val￿ ￿ the unfun￿1 defth on the scherne (Note 181ill. The transfer to this fund reflectrs rEnSi￿S paid dunw the year: Ministers, emduments- to supt¥xt the payn*nt of tnlnisters'sti￿Thts and ￿￿ted ct6ts,. ProrÉrty- ￿presents the net tts)k value of funcb¢M)al properbes and other funds des￿natelY for property prOj￿ts at congregations bJt he￿ within the Moravian Un￿n as the Churchs asset ho￿1[￿ LKXJY. The transfer in the current year is to fund an overS￿d. Invesiment property cost and invesbnent prok*rty revaluati￿ reserves- repre*nt in aggregate the carrying value of investment propefbe5 adjusted by tran5Fer for cyJ15tst¥Jing loans seoJred ￿ those Ewrbes,. Other. this is rnade up of numerous snkall designated r￿er￿ to fund stEtific ￿vitieS at congregations: arKJ MI￿On renewal - to fund overseas mission work. 18. OBLIGATIONS UNDER OPERATING LEASE AGREEMEiifs FOR EQUIPMErfr Group X)22 2021 The total of ftrture minlmum lease payments uThJer non0￿e1kbk opwatlThJ lease5 for each of the followng peri(KJ5 are.. Less than Year BetW￿n One and Five Yeas After more than Five Yea 63,978 77,652 9Ji £142,621 63,978 77.652 991 £142,621 No obligation5 arise in the Pa￿rt. Page 33 NOTES TO THE FINANCIAL ￿ATEmENTs Continued FOR THE YEAR ENDED 31 AUGUST 2022 19. PENSIONS The Moravian Church through the Mowan Union opErates three xtEmes, (i) Defined benefit pension theme Under this scheme discretionary Fensions were paid to retired ministers in Servi￿ prior to 31 August 2010 in accordan￿ with the rules established by Syncxl, provided 9dffiaent funds were available. The assets used to y these pensions are not held separately from other funds of the Charitable Company. As a result of a resolution passed at the 2016 British Prownaal Syn(MJ, The M¢)ravian Union has recognised these pensions as an obligation and initially tsbtained an actuarial valuation of the liability at the 31 August 2017. A revised valuation was obtained as at 31 August 2022. Employee benefrt obligations for the Mornvian Churth in rtspert of the Liability The amounts recognised in the Balance Sheet are as folknv5.' 3110812022 3110812021 RegLited Fair value of ￿abilIty Assets Present value of funded obligab.ons Net (under) l overfunding in kn"abltty Unrecognised assets Net Defined Benefit Asset/ {tiatMIty) É{3,564.5591 £{4,742,688) The amounts recognised in Profit or Loss a￿ as folbws: 3110812022 servi￿ cost Cost of benefft changes Curtailment costs l (gains) Settlement costs / {gains) Net Interest on Net Defined Benefit Liabil Expense reccMJnised in Profit or Lctss Page 34 NOTES TO THE FINANCIAL sfATEMErirs Continued FOR THE YEAR ENDED 31 AUGUST 2022 19. PENSIONS (Continued) The Moravian Union contributed £268,027 to fjjnd the pK4yment of benefits over the year from I September 2021 to 31 August 2022. No contributions were made by mem￿￿r5 over the peri￿￿ as the Liability is an unfunded arrangement. No contributions are expetted from the Church ￿ frorn memLErs over the next year from I September 2022 to 31 August 2023. The liability is unfurKled, and pe￿On5 are paid directy by the Moravian Union. Changes in the present value of the Liabilitys Defined Benefft Obligation are as folk)ws: 3110812021 3110812022 Opening Defined Benefit Ob1￿Jabon Service cost Contributions by Mem1￿ Cost of ￿nefit changes Curtailment costs I (gains) abilities extinguish￿1 on setdements Benefits paK Inte￿st on obligation Experien￿ losses l (gains) Losses / (gains) from changes in a59Jmplions Closing Defined Benefft Obligats( 4.742,688 4,040,934 (268,027) 73,739 135,005 {267,432) The w&ghted average durab.on of liabilth.es of the ￿abIlty was 10 years as at 31 August 2022. Employee Benefit Obligations for The M¢Mavian Union in Respert of the Liability Changes in the fair value of the assets are as folkjws: 3110812021 Reststed 3110812022 Opening fair value of ￿abIlty assets Interest on assets Return on a￿ets (not included in irterest) Assets distributed on setdements Contributions by Moravian Union Contributions by memters Benefits paid Administration expenses Closng fair value of ￿abilIty assets 268,027 267,432 (268.027) (267,432) Page 35 NOTES TO THE FINANCIAL sfATEMErirs Continued FOR THE YEAR ENDED 31 AUGUST 2022 19. PENSIONS (Continued) Principal actuarial assumptions used for the FRS 102 di￿o5U￿5. 3110812022 3110812021 0/0 t Discount rate at end of year Discount rate at start of year Rate of increase in deferred pengons (LP13%) Rate of increase in deferred pengons (LP14%) Rate of increase in rensions in payment ILPI 3%) Rate of increase in rensions in payment {LPI 4%) 4.10 3.10 3.10 Mortality Assumptions The mortality assumptions are based on standard mortality tsbles whith allow for future mortality improvements. The assumptions are that a mernLEr aged 65 will live on average until age 87 ￿ they are male and until age 89 if female. For a member Cu￿entty aged 50 the assumptK￿s are that if W attain age 65 they will live on average until age 88 if they are male and unb"l age 91 if fema￿. (li) Artive ministers defined contritxjtion sckne With effect from 31 DeceM￿r 2015 the discretionary scheme for acbve ministers was discontinued and replaced by a defined contribub.on scheme. Benefft enb"dements at 31 December 2015 under the previous scheme, which were recognised as obligations by SyncKJ during the pre￿Ing year, have been calculated and index linked to retirement as part of the actuarial waluation. Empknyer contributw)ns to the defined contribution scheme duriThJ the year were £79,610 {2021: £74,258). (illl Other employees personal l￿)sion ￿n5 other employees ho￿ personal pension ￿an5 and contribute at rates thjsen by themselve5. The Morawan Union contributes 7% of pensionable salaries to eath plan. The employerfs contribution in the year was £19,015 (2021.. £11,957}. The Sch(Kbl partiopates in the Tead*rs' PenS￿n Scheme (Engknd and Wales) {"the TPS") for its teaching The TPS is an unfunded mulkn-empbyer defined benefits ￿nSIOn scheme governed by the Teachers, Pensions Regulations 2010 and, from l April 2014, tthe Teachers, Pension Sd*me Regulations 2014 (as amended). Nembers contribute on a "pay as you go. basis wth contrbub.ons from members and the employer being credited to the Exthequer. Retireinent ar￿ other pension benefits are paid by public funds provided by Parfiamert. Page 36 NOTES TO THE FINANCIAL sfATEMErirs Continued FOR THE YEAR ENDED 31 AUGUST 2022 19. PENSIONS (Continued) The employer contribution rate is set following scheme valuations undertaken by the Government Attuary Department. The latest valuation rew>rt in resr£tt of the TPS was prepared at 31 March 2016 and was published in March 2019. This valuation confim)ed that the empknyer contribution rate would be 23.68Wa, inclusive of a scherne administration levy of 0.08%, wtth effect from I September 2019. Additional detsils on the scheme are included in the audited financial statements of Fulnerk School. The pension charge for the year includes contributions Payab￿ to the Trs of £315,239 (2021.. £361,003) and at the year-end £18,161 (2021- £25.728) was ￿ed in rw of conbibutions to this scheme. Pension costs for the year a￿ dixlosed in rK*e 8. Opt Pensions Fuln￿k ￿h(M)I participates in a support staff rEn%on scherne that is regulated by Opt Pensions which is an auto enrolrnent scheme whereby the sclwl contributes 5% of gros5 earning5. The pension charge for the year includes contributiOll5 payatAe to Opt Pensions of £32.650 (2021- £25,728). 20. RELATED ORGANISATIONS Two of tJ)e Morawan Church's Tnstees a￿ alsoTrustees of London Association in of Morawan Missions. The tharity is the principal beneficiary of the income of the Mrs E M Bate5 Trust and SO￿ beneficiary of the London Association in Aid of Moravian Missions, d￿r[kneS establish& for the benefit of the Moravian Church. Neither organisation is considered a member of The Mordvian Church group The group received the following amounts from related parties during the ￿ri(MI.._ 2022 2021 Mrs E.M. Bates Trust li The London Mission in Aid of Morawan mI￿10￿S At 31 August 2022, the following balan were outstanding:_ Due from Mrs E.M. Bates Trust Due to Mrs E.M. Bates Trust Page 37 NOTES TO THE FINANCIAL sfATEMErirs Continued FOR THE YEAR ENDED 31 AUGUST 2022 21. COMPARATIVES FOR THE STATEME1￿ OF FINANCIALAcnvrtIES unrestri￿ Fund5 Total 2021 Fur Income and endowments Donations and Lewe Other Trading ACtiV￿e$ Investments 385, 1,31Y),488 133,5(Y) 248,69) 1,691,696 1,695,076 133,51 1,142,792 2,971,377 ,651 1.274,239 5,442 5,442 Charitsble acbvities Ixher Total income 30,151 71,184 1.375.S74 6,231,047 80B,294 8,731,037 6,267,098 879,478 10,117,953 11,342 Expenditure On: Raising Fund5 Fundraising trading.. cost of goock sold and other costs Investment rnanagement ccrts 1168,729) (32,245) 12W,9741 I9,2￿,630) 19.491.604) IIS8,7291 I729,4￿) 1898,2281 110,702,124) 111.6LKI.3521 {694,3491 1694,3491 1773,7T31 {L,468.1221 12,905) 12,905) 1637,7211 {640.6261 Charitable Activities Totsl expenditure GainsllLo$￿j on investment 5.515.414 445.111 6,265,263 Net 1rthmel1ex￿tyre) 212,1 4W6,130 1315,456) 4,782,864 Acbjarial Gain5/{LO￿e5I Defined Benefrt Pension SCI￿rne {￿.186} 1969.1861 Transfers Letw&n reseryes (525.3751 {313,1851 {182.9481 3,733,9 ,323 392,867 3,813,678 Total Funds Brought Forward I￿13.119 16.715.IY)4 4.%9.382 23,087,595 TOTAL FUNDS CARRIED FORWARD £1.489.934 £20.449.1 £4.962,249 £26,901,273 Page 38 NOTES TO THE FINANCIAL sfATEMErirs Continued FOR THE YEAR ENDED 31 AUGUST 2022 22. ASSESSmEr￿ OF GOING CONCERN As wtth many other entitie5, the current economic climate ha5 had. and is likely to have in the fuiure, a significant impact on the financial FErformance of the Group ar¥J the indiv￿ual ent￿leS within the Group. The Trustees have reviewed the projected perfOrn￿n￿ and financial pusition of the Group and the entities within the Group and are of the opinion that tx)th the parent d￿rity and its subsidiary, The Moravian Union, will remain going concerns for the ftKeseeable futu￿. On 28 Juty 2021 Ockbrook Sch(L)l. a former fellow subsidiary of the Moravian Union, was put into administration. The Morawan Union acted as guarantor in resFEtt of the School's loans from NatWe5t Bank, which are secured on prO￿￿eS owned by the Moravian Union. In accordance with a payment pLin agreement dated 26 July 2021, the Moravian Union agreed to assume resrM)nsibility for repayment of the outstanding loans. The aggregate value of the loans was £1,093,422 in of three k)ans and the payment plan required an initial settlement of £IOO,000 prior to 31 A￿V$t 2021 with Clearan￿ of the balarn￿ on two loans on the immediate sale of the Union'5 Lynton Mead property. Sale of that property was completed in September 2021 and a lump sum settlement of £432,135 was made. The outstanding balance represents the balance on the Ockbr(x)k ￿h(X)I loan originally drawn down in 2015 and repayment temis are in accordance wth that original a9￿men¢ unless additional funds become available for earlier settlement. This bank loan is repayable in m¢Jnthty ir￿lMents of £5,610 which indude interest charged at rates of 1.5WDpa and at 1.86% over bank base rate pa. The outstaThJing loan balan￿ is Secu￿ by two Moravian Union investment properties at the Ockbrook Settlement sts, The GraThJe and The Mount, aggregate value is estimated to Significant￿ exceed the outstanding loan balance. The Trustees of the Moravian Church are in the Midd￿ of a restructuring exercise which indudes an assessment of the long-term finanoal viabilty of Fulned( kh(Kpl. This has involved providing substanb.al financial support to the SchcM)I via the Moraman Union. At the date of signing these financial statements loans to Fulneck Sch(M)I amount to £1,690,653. In addition, the M(wawan Union acts as guarant(K in ￿[￿ct of Fulneck School's k)ans from RBS (see notes 15 and 17). After considering the Charity's reserves. held primarily within the Moravian Union which acts as the asset holding ￿dY of the Moravian thurch, and futu￿ cash llow forecasts for a peri(￿ well in excess of 12 months from the date of approval of these finanoal siatements, the Tnstees are confident that the assets of the Church are sufficient to meet these liabil￿eS as ljw arise. Page 39 MORAVIAN CHURCH NOTES TO THE FINANCIAL sfATEMENTS R THE YEAR ENDED Continued 22 23. PRIOR YEAR ADJUSTMEr The Moravian Union, as the asset holding Imyty within The Morawan Church group is re5tKJnsible for the valuation of the defined benefit pension scheme liability. The preceding yearfs valuation was based on the 2017 actuarial valuab.on (see note 19) and di¢J not tske into account the unwinding of the discount applied to the liability or w>tents"al change5 in ests"mated discount rates, mortality assumptlOn5 and inflats"onary increases in deferred pensons and pensons in payment. A5 explained in TK>te I, accounting policies, and note 19, pension costs, the Trustees have reviewed the assurnptions undertwng the 2017 artuarial valuab'on and, as a resu￿, commissioned their actuaries, BWCI Consulting knmited. to calculate an actuarial valuation of the liability detemiined using the Projerted Unit Meth(xl. Bwa completed th￿r valuab.on on 6 April 2023, providing valuations as at 31 August 2021 £4,742,688) and 31 August 2022 (E3,564,559). This indi￿ted that the liabilty as at 31 August 2021 was understated by £969,186. Following complth.on of the valuation, the 2021 Comparative figures have been restated to refiect the liabilrty which e￿5t￿j at 31 August 2021. Because an actuarial valuation as at 31 August 2020 was not available, the whole of the prior year adjustment has been accoLJnted for in the Consolidated Statement of finanoal Activib"es for the year ended 31 August 2021. originally Prior year reported adjustment As restated Balance Sheet: As at 31 August 2021, Reserves- Designated Funds Defined Benefft Pension Scheme £3.7TJ,502 £969.186 £4,742,688 Net Awts Defined Benefrt Pension ￿heme Lwbilty £3,773,502 £969,186 £4,742,688 SOFA". AcLuarial GainsllLosse5) on Defined Benefft Pension Scheme ￿abilIty £(969,186) £1969,186) The valuation and movements in the current year are disdosed in nL*e 19 to these financial ststements. The liabilty is unfunded and rests entirety with The Morawan Union. Appendix I MORAVIAN CHURCH PARENT CHARITY STATEMENT OF FINANCIAL AcrIvrrIES FOR THE YEAR ENDED 31 AUGUST 2022 Trtal 2022 Totsl 2021 Funds Income and endowrnents from: Donations and LeJac*s Other Trading ActiV￿e5 Investrnents 617,971 37,282 212,326 867,579 842,971 37,282 222,756 1,103,009 786,607 86,763 193,752 1,067,122 16 16 10,414 235,414 Charitable activities Other Total Income 202.963 202,963 75,266 16 235,414 1.070,542 I,￿5,972 1,142,388 Expenditure c￿. Ralslng Funds Fundraisi￿ tr￿l￿- c05t of gcths sold and other costs Investrnent management cr6ts 173,6531 {38,9051 1112,5581 173,6531 I38,￿5) {112,5581 14,3141 113,1441 117,4581 Charitable Aciivities (684.077) {603,6041 11,287,E411 IL,228,4731 Totsl expenditu {684,0771 1716,1621 11,400,239) (1,245,931) Gainsl{lossesl on investment a￿ets 13,828 13,828 39,079 Net income1lex￿[￿itUre) 16 {448.fA31 368.208 (80.4391 164.4641 Transfe 451,8LKb {451,￿) NET MOVEMENT IN FUNDS 16 3,137 (83,5921 (80,4391 164,4641 Totrl Funds ￿ght FcAward 1,470 25,318 I,IFJ3,222 1,120,010 1,184,474 TOTAL FUNDS CARIUED FORWARD £1.486 £28.455 £i.tm.630 £1.039,571 £1.120,010 All gains and k)sses ari￿ng in the year have been in the Statement of Financial Acbvibes and reL4te to continui operatons.