2024-08-31-accounts

THE BRITISH PROVINCE OF THE UNITAS FRATRUM

operating as THE MORAVIAN CHURCH

Charity Number: 251211

FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31 AUGUST 2024

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MORAVIAN CHURCH REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2024

The trustees of the Moravian Church present their report and the consolidated financial statements for the year ended 31 August 2024 of the charity, the Moravian Church (The British Province of the Unitas Fratrum), which consolidate the results and net assets of the Church, its Congregations, its subsidiary charitable companies (The Moravian Union (Incorporated) and Fulneck School, and Fulneck Choir House. These have been prepared in the format required by the Statement of Recommended Practice, ‘Accounting and Reporting by Charities’ applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The report and statements also comply with the Charities Act 2011 and regulations made thereunder.

LEGAL AND ADMINISTRATIVE DETAILS:

The British Province of the Unitas Fratrum, generally known as the ‘Moravian Church’, which was established by Act of Parliament in 1749, is a registered charity, No. 251211. The Church is governed by a Book of Order as approved by Provincial Synod which consists of a biennial gathering of the provincial board, the clergy, 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 (and directors in company law of the subsidiary charitable companies), are elected by Synod. The Book of Order (constitution) requires the Committee to act in accordance with resolutions of Synod. The Provincial Board (Committee of Management) for the year ended 31 August 2024 and subsequently comprised:

Miss R. M. A. Hoey Rev. D. R. Howarth Rev M Newman Rev. Dr L. Thompson Rev. E Quildan Rev. J. Carter

• Responsible for the day-to-day management of the Charity’s affairs.

The Registered Office: Moravian Church House 5-7 Muswell Hill London N10 3TJ Investment Advisors: UBS Wealth Management (UK) Ltd LGT Wealth Management UK LLP 1 Curzon Street, 14 Cornhill London W1J 5UB London EC3V 3NR Bankers: CAF Bank Limited 25 Kings Hill Avenue West Malling Kent ME19 4JQ Each subsidiary and branch have the power to appoint their own bank. Only the main banker is disclosed above. Solicitors: Cripps Harries Hall Wallside House 12 Mt. Ephraim Road Tunbridge Wells, Kent TN1 1EG Auditors: Knox Cropper LLP Chartered Accountants 65 Leadenhall Street London EC3A 2AD

Each subsidiary and branch have the power to appoint their own bank. Only the main banker is disclosed above.

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MORAVIAN CHURCH REPORT OF THE TRUSTEES (Continued) FOR THE YEAR ENDED 31 AUGUST 2024

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document

The Charity’s constitution is defined by the Book of Order which is approved by Synod and can only be amended by Synod.

Group Structure

The Moravian Church controls a number of related organisations including:

• the Moravian Union (company number 00133708), a company limited by guarantee, which holds the assets and administers the affairs of the Church.

• Fulneck School (company number 05086581), an independent school and company limited by guarantee.

• 28 congregations, 2 societies and one fellowship, and;

• One house of multiple occupancy (Fulneck Choir House).

Further details of The Moravian Union are available in their statutory accounts on request.

Fulneck School

Fulneck School ceased trading on 8 July 2025 and Mr Ryan Davies of Moore Kingston Smith LLP was appointed as liquidator. The Trustees of Fulneck School and of the Moravian Church have acted throughout in accordance with their duties under the Companies Act 2006 and relevant charity law. The closure process has been conducted with a clear focus on care, compliance, and minimising disruption and harm wherever possible.

These accounts consolidate the results and net assets of all these organisations.

Procedures for the Recruitment and Appointment of Trustees

The Book of Order, Section 3.1 states that the PEC consists of six members of the Moravian Church in the British Province, two serving in a full-time stipendiary capacity and four serving in a non-stipendiary capacity, part time. As part of its brief the PEC acts as the Board of Trustees (and Board of Directors) of the Moravian Union. Synod is the body with the power to appoint and remove members of the Board. Provincial Elders serve for a term of four years and may be appointed to serve a further two terms. Appointment is by election at the biennial Moravian Church Synod. Vacancies during an inter synod period shall be filled by a postal ballot election.

The Chair and Officers are appointed by the membership of the PEC from among their number. The Board convenes at least twelve times each year. Synod also elects members to the various standing and sub-committees which offer advice and support to the PEC. Each committee includes at least one Provincial Elder:

Finance and Property Committee Mission and Society Committee Faith and Order and Ecumenical Relations Committee Church Service Committee Youth and Children’s Committee World Mission Committee Church Book Committee Archives and Heritage

Procedures for the Induction and Training of Trustees

On appointment, each Provincial Elder signs a code of conduct and completes a register of interests. The latter is renewed biennially following each Synod. They are given a Trustee Handbook that includes the Book of Order, the Memorandum and Articles of Association of each subsidiary company, the risk register, policies and procedures on issues such as delegation of authority, recruitment, equal opportunities, investments, reserves, conflicts of interest and other guidance. It contains job descriptions 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 training opportunities through external training courses to keep abreast of changes and of their responsibilities.

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MORAVIAN CHURCH REPORT OF THE TRUSTEES (Continued) FOR THE YEAR ENDED 31 AUGUST 2024

STRUCTURE, GOVERNANCE AND MANAGEMENT (Continued)

Volunteers

The Moravian Church has many committees covering its policy, education, congregational work etc. Without the many volunteers that serve on these committees we would not be able to carry out the wide variety of work that our congregations have come to rely on. No value can be placed on the many hours worked by volunteers.

Organisational Management

The British Province of the Moravian Church is the registered charity for the activities of the Moravian Church operated by the British Province in the UK and beyond. Synod is the ultimate authority within the Church and it elects the Provincial Elders Conference (PEC) which acts on behalf of Synod in the inter-synod period and is the ultimate decision-making body during that period. The PEC acts as the Moravian Church’s board of trustees and meets on a monthly basis. Responsibility for the day-to-day management of the charity’s affairs is delegated to the two full time members of the PEC.

Responsibility for control of the school is normally supported by an advisory Board of Governors whilst responsibility for the day-to-day affairs of each congregation is delegated to the local congregational committees.

Risk Management

The PEC has reviewed during the year an assessment of the risks to which the charity is exposed, particularly business, operational and financial risks, and the process of introducing procedures and a reporting regime to manage and reduce identified risks is ongoing. The PEC has agreed clear lines of delegation and authority to staff and have involved staff in recognition of risk in all their activities.

Risks are defined as those that, without appropriate mitigation, are likely to negatively impact on the Moravian Church serving its purpose of proclaiming the Gospel of Jesus Christ. The trustees recognise that it is not possible to eliminate risk entirely. We recognise that risk taking is inherent in proclaiming the Gospel. Our task is to minimise negative impacts and allow the Church to serve its purpose.

We have identified significant risks and are taking steps to mitigate in the following ways:

• Failure to encourage people into ordained ministry, results in further decline, resulting in the Moravian Church ceasing to exist: The PEC with the support of the Church Service Committee continue to review and implement strategies to recruit people into ministry. This includes dedicated Church services and enquiry days. The Church Service Committee are currently reviewing the provision of materials for training Lay people for service and have drafted resources for publication on opportunities for services as well as an understanding of ordained ministry.

• Declining congregations and failure to grow resulting in congregation closures and ultimately the Moravian Church ceasing to exist: The PEC have convened the Project 32 Implementation to consider the current framework of the province and consider ways to move forward into the future. The programme of renewal and growth, Project 32, which was approved by the Synod, is being progressed in line with the programme goals, under the leadership of programme coordinator.

• Reputational damage which results in litigation and impacts on engagements with communities: The PEC actively considers reputational damage as part of their strategy and planning. This provides the opportunity for identifying potential problems that could affect public perception, take remedial action where necessary and dictates how we communicate and manage expectations.

• Lack of Diversity and Inclusion: The PEC has initiated diversity and inclusion training for staff, as part of a whole organisation strategy to promote and model diversity and inclusion and a fundamental value of the charity.

• Dependency on limited income sources, shortfall for reserve and unforeseen shortfall on the pension funds: The PEC continually monitors and reviews potential areas of weakness in our financial strategy and are supported by the Finance Committee who have the ability to convene emergency meetings if necessary. A Financial and Investment Risk Register is maintained.

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MORAVIAN CHURCH REPORT OF THE TRUSTEES (Continued) FOR THE YEAR ENDED 31 AUGUST 2024

STRUCTURE, GOVERNANCE AND MANAGEMENT (Continued)

• Loss of key personnel: The PEC recognises the importance of personnel for the effective running of the organisation and is currently reviewing the framework for people management promoting a transparent and supportive environment. Losses cannot always be avoided, and the PEC must respond quickly to ensure smooth transitions.

• Significant damage to historic buildings and archives: The PEC work with the Estates manager and the Provincial Archivist to promote best practices for care and maintenance of historic buildings and archives.

• Loss of significant and sensitive data: The PEC continually monitors and reviews policies to ensure that we remain compliant with current legislative practices and seek to take remedial actions if weaknesses are identified. A recent audit has been completed to ensure compliance following the introduction of the General Data Protection Regulations.

• Debt resulting from failed operation in the subsidiary company: The PEC stepped up its oversight of the charity’s subsidiary company, Fulneck School, with a view to ensuring that it remains a going concern, which is at risk without repayment of its loans.

Pensions

Following changes to legislation, the previous discretionary pension arrangements for ministers in service prior to 31 August 2010 have been replaced by a defined contribution pension scheme. This came into effect from 1 January 2016. The move recognised the historic pension obligation of The Moravian Union up to 31 December 2015. The most recent actuarial valuation of the pension liability was completed on 21 May 2025 and calculated the liability to be £3,014,504 as at 31 August 2024 compared to a liability of £2,946,467 as at 31 August 2023. All Ministers have been informed of their entitlement. Other Ministers and employees employed after 31 August 2010 hold defined contribution personal pension plans and contribute at rates chosen by themselves.

OBJECTS AND ACTIVITIES

Principal Objectives

The Church’s objective is to administer the affairs of the Moravian Church in its work for the Kingdom of God, in accordance with the will of Synod.

Activities

The parent charity’s main activities consist of:

• (i) Ensuring a supply of ministers to congregations.

• (ii) Providing congregations with advice on complying with best practice under child protection regulations in the conduct of their work with young people.

• (iii) Advice to congregations on financial and administrative matters.

• (iv) Bishops, who are elected by Synod, but who are nonetheless employees of the Moravian Church, provide pastoral and spiritual guidance to congregations.

• (v) Administering the assets of the Church through its subsidiary company, The Moravian Union.

• (vi) Maintaining archives which relate to congregations of the Church and the British Province.

• (vii) By working with Fulneck School’s advisory Board of Governors and with the professionals employed in the school, maintaining and further developing the standards of academic excellence and pastoral care offered.

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MORAVIAN CHURCH REPORT OF THE TRUSTEES (Continued) FOR THE YEAR ENDED 31 AUGUST 2024

OBJECTS AND ACTIVITIES (Continued)

Strategies

To promote these activities the parent charity:

• (i) Organises the training of both ordained and lay preachers.

• (ii) Has developed and made available to congregations a procedures manual to regulate their work with young people. The Church also actively works with “APCS” to protect the interests of young people.

• (iii) Provides advice to congregations on the principles of sound administration again through bulletins and publications.

• (iv) The Church’s investment assets, which are held by its subsidiary company, are administered with the assistance 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 view in both instances to maximising the returns available to the Church within the constraints imposed by the Church’s charitable mission.

• (v) The Church, through its subsidiary company employs a full-time archivist who spends a portion of her time advising congregations on how to maintain their archives.

Principal Objectives for the year ended 31 August 2024

The trustees determined the following principal objectives for the year ended 31 August 2024:

• To continue to offer training for ministry or lay preaching to all who wish to be trained provided the trustees are satisfied about their suitability.

• To ensure that all congregations are encouraged to adopt best practice in connection with their work with 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 good practice in the archiving of the Church’s and Congregations’ records by promoting communication between the archivist employed at Church House and individual Congregations.

• To continue to support work in its partner Province of the Moravian Church in Western Tanzania (MCWT) and also 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 bodies and to try and develop ways of working more closely with other denominations.

• To ensure the financial stabilisation of Fulneck School.

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MORAVIAN CHURCH REPORT OF THE TRUSTEES (Continued) FOR THE YEAR ENDED 31 AUGUST 2024

ACHIEVEMENTS AND PERFORMANCE

How our activities deliver public benefit

The Trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the charity’s aims and objectives and in planning future activities and setting grant making policy for the year. The charity carries out a wide range of activities in pursuance of its charitable aims. The trustees consider that these activities, summarised below, provide benefit both to our congregations and the public in general.

Review of the year

We continue to focus on the essentials of our existence, which are to be found in the Ground of the Unity (Church Order of the Unitas Fratrum), and to try and achieve a proper balance between these essentials of being a church and the challenges of governance in a context characterised by numerical decline and financial uncertainty. We remain confident that we can serve God effectively in the province despite the limitations of being a small church. We continue to look for more effective ways of engaging in mission.

The trustees have developed a new strategic plan, “Embracing a heart of Resilience”, as an over-arching programme. The strategic plan will look at all areas of our current activities, with new priorities to ensure sustainability and future growth over the coming decade. Under this strategic plan sits the programme of renewal, Project 32, which will focus its work on development and growth in the congregations. Building on the previous work of the ‘Future Directions and Sustainability Taskforce’, the Project 32 Implementation Committee gives guidance to more effective ways of ensuring future Provincial sustainability and growth.

Project 32 got off the ground with the “Holy Habits” learning and study programme. Since then, most congregations have completed the Natural Church Development (NCD) survey. The results of these have helped to identify priorities for the province in general and for each congregation. These priorities, aimed at renewal and growth, will be the overall focus of work for ensuing year.

It has been a time of transition and adjustment for the Moravian Church, for our congregations and for the wider organisation. Renewal and growth remain an imperative for the church as a whole.

Ministry

It is clear that, unless our congregations start to grow in membership, the present number of members will not be able to support paid ministry in the way that it has done in the past. This will mean significant changes will have to be made by both congregations and for ministers. Congregations will have to take time to assess their strengths and weaknesses and seize the opportunities to grow. Efforts will have to be made to build the capacity of members to be more intentional in faith renewal and numerical growth.

We have been reviewing the way that ministers are trained and deployed, to ensure that we are making best uses of our ministerial resources and taking advantage of growth opportunities.

Some ministers have taken advantage of the Continuing Education policy, which give support to Ministers and paid Lay workers who wish to pursue further education. The Provincial Board continues to review the support and pastoral care provisions for our Ministers, to ensure both spiritual refreshment and continuing educational development.

The Worship leaders training programme, focusing first-and-foremost on developing an understanding of Christian worship and its context within the Moravian Church, has seen three cohorts put through the basic programme. Seeing there was not new cohort in the past year, the focus was on building capacity and mentorship for those already trained. A few worship leaders are enrolled in the advanced programme at Northen college.

Young people and children’s work

Recognising the need for work with children and youth to be given priority, the PEC provided a grant of £4,000 for each district to organise activities aimed at youth across the whole district. Three districts took advantage of this grant. It is anticipated that all District take up the offer in the coming years. The PEC has finalised a programme of work which will see, over a few years, District coordinators appointed for each district. This is expected to begin in ne district in the Fall of 2025.

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MORAVIAN CHURCH REPORT OF THE TRUSTEES (Continued) FOR THE YEAR ENDED 31 AUGUST 2024

ACHIEVEMENTS AND PERFORMANCE (Continued)

Fulneck School

Following a detailed and careful strategic review of Fulneck School, the Trustees of Fulneck School concluded in early 2025 that the school could not viably continue. Only 238 students started the Autumn term in the 2024/25 academic year, against a budget of 264 students. Indicative cash flow modelling indicated that the school would become insolvent in August 2025 following the end of the academic year, and the Trustees sought immediate legal and insolvency advice to explore options and obtain advice on their duties as charity trustees and directors under the Companies Act 2006. Further analysis and modelling indicated a further decline to 217 students by September 2025, and 272 pupils (a 25% increase) or a 39% fee rise would be required to break event. There are several factors involved in the overall decline in student numbers, but the loss of financial reliefs, including VAT on fees, business rate relief, and increased employer NI contributions further weakened the school’s financial position

This decision was not taken lightly, with trustees considering all available and viable options to ensure the school could continue. However, after careful consideration and no offers materialising, the difficult decision to plan to close the school was taken February 2025, and preparations began for an orderly closure at the end of the 2024/25 academic year. The intended closure was publicly announced to staff, parents, and the wider community on 24 March 2025.

The Trustees have taken all steps to ensure that loss to creditors is minimised and that the interests of all stakeholders, including staff, students, and the wider community, are protected. A detailed communications plan, developed in consultation with a professional agency, has guided open and transparent engagement with all affected parties. Formal consultation with employees and Trade Union representatives commenced following the announcement. The Trustees have engaged legal, financial, and insolvency advisors throughout, to ensure that all legal procedures are properly followed and that creditor claims are managed independently and fairly.

Fulneck School ceased trading on 8 July 2025 and Mr Ryan Davies of Moore Kingston Smith LLP was appointed as liquidator. The Trustees of Fulneck School and of the Moravian Church have acted throughout in accordance with their duties under the Companies Act 2006 and relevant charity law. The closure process has been conducted with a clear focus on care, compliance, and minimising disruption and harm wherever possible.

The outstanding intercompany loan totals £1.9 million and the Moravian Union is expected to be treated as an unsecured creditor. At this stage, the likelihood of full recovery is considered low, due to the school’s limited assets and other liabilities which are expected to rank ahead of the unsecured creditors. The loans were provided incrementally, in response to short-term cashflow needs and within the broader context of a recovery strategy advised by professional consultants. The decisions to extend or renew loans were made in accordance with MU’s charitable objectives, which include support for allied charitable work (in this case, education at Fulneck School). The loans were consistently reviewed against risk appetite, strategic fit, and the long-term interests of the charity.

Choir House

The Choir House at Fulneck, which is licensed as a house in multiple occupation, (HMO), sharing a common entrance hall, provides a number of comfortable, self-contained apartments. As a set of Grades 1 and 2 listed buildings, maintenance and upgrading works are expensive and have to be overseen by listed building specialists.

The Trustees are grateful to the work of Br Ian Haggas as the administrator.

Finances

In common with many other denominations with a reducing membership, the Moravian Church is finding it a challenge to renew and grow beyond a maintenance level of operation. The per capita financial contribution being asked of members is increasing, even with delimiting efforts. We therefore commend congregations that find ways to increase their income in this difficult situation.

The Trustees are, therefore, extremely sensitive to the need to ensure careful, fiduciary oversight of our investments.

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MORAVIAN CHURCH REPORT OF THE TRUSTEES (Continued) FOR THE YEAR ENDED 31 AUGUST 2024

ACHIEVEMENTS AND PERFORMANCE (Continued)

In May 2025 UBS advised that Moravian Union account with the institutions would be closed, as UBS would no longer be servicing accounts below £10 million. After a meeting with the bank, the Trustees decided that the portfolio, which was previous managed by UBS Wealth Management UK, has been transferred to LGT Wealth LLP.

We continue the structure of oversight, in chich a small group comprising the Provincial Treasurer along with the Chairman and two members of the Finance Committee, meet with the investment manager to monitor performance. A further meeting with LGT reinforced that the investment policies, to ensure our monies are invested to meet the ethical and moral values we espouse. The Provincial Board has therefore reviewed and reaffirmed the Ethical Investment Policy which will be continuously reviewed and monitored and will help guide our investment strategy.

An area in which we took action was in regard to the pension commitment to workers. The current arrangement, which is consistent with charity regulations, in that all current and future stipendiary staff be included in a formal, contributary pension scheme. Congregations contribute 5.5% of stipend to the pension fund.

Previously the pension arrangement was one in which discretionary payments were made to retired church servants and their spouses. During the 2017 British Provincial Synod it was resolved that these payments to retirees should be recognised as an obligation and not discretionary. An amount was therefore set aside from Provincial operations to cover this obligation. This sum has continued to fall overtime, since the numbers of individuals to whom this is paid is reducing. Another formal actuarial valuation of the obligation was undertaken in May 2025 and are reflected in these financial statements.

Unity

Our partnerships with South Asia and the Moravian Church in Western Tanzania continues. At Unity Synod in 2023, South Asia was formally recognised as a Mission Province. It has held a Provincial Synod and Provincial Board has been appointed. The work is still supported by the British Province, via the British Mission Board, which is represented at the meetings of their Provincial Board.

The BMB, which was expanded following the acceptance of the general and specific principles laid down at the Synod of 2021, continues as the main instrument of overseas engagement. Members of the BMB help to share the overall workload and to widen the scope and breadth of what the BMB can accomplish. The BMB meets separately from the PEC, whilst reporting back to the Provincial Board. The BMB, with Sr Jane Carter as chair, has kept focus all aspect of the work in Tanzania and South East Asia.

Funding is being accumulated in the Mission Fund and available for the BMB to use in order to bolster Mission work throughout the Unity and beyond. This is helping the BMB to becoming more responsive and proactive in the way it responds to both emergencies and emerging projects around the world. From time-to-time different organisations and congregations make contributions to overseas missions and these are routed through the BMB.

We continue to offer an administration grant, albeit it at a reduced level, to the Jamaica Province to help with the purchase Textbooks from the Bookroom. This is of mutual benefit as the Jamaican order increases our print run and reduces the unit cost of the books to everyone. Support is also given to Elim Home in South Africa and the Star Mountain Rehabilitation Centre in Ramallah, Palestine. These are viewed as important works of the Moravian Church world-wide. Individuals and groups such as the Moravian Women’s Association, the Men’s Fellowship and the YPMA give money to many other projects. We are constantly touched by the generosity of such gifts.

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MORAVIAN CHURCH REPORT OF THE TRUSTEES (Continued) FOR THE YEAR ENDED 31 AUGUST 2024

Ecumenical

As a province, we continue to play as full a role as possible in the national and four-nation bodies, with representation on Churches Together in England, the Irish Council of Churches, and Churches Together in Britain & Ireland. We now have three Provincial Ecumenical Officers – Br Philip Cooper, Sr Lorraine Shorten and Br Michael Newman – appointed by the Provincial Board to represent the Moravian Church at a National level and we are grateful for their work. Sr Sarah Groves is currently serving as President of the Irish Council of Churches, after which she will remain in the presidium as Immediate Past President.

Br Cooper attends Church of England Synods as an ecumenical representative, and a working group continues to explore closer unity with the Church of Ireland following the Armagh Agreement. Br Newman is a governor at Northern College, a United Reformed Church theological education centre.

Most congregations play their part in the local ecumenical scene, both formally and informally. Three of our congregations are local ecumenical partnerships – Hall Green, Harlesden and Blackbird Leys.

Br Livingstone Thompson is a Trustee of Christian Aid Ireland, in which role he also sits a member of the Income, Finance, Risk and Audit (IFRA) committee, for Christian Aid Ireland in both jurisdictions on the island.

Conclusion

This province of the Moravian Church has been in existence for over 270 years, which gives it the privilege of a long institutional memory. The contribution that the church has made to society continues to be the subject scholarly investigation, the outcomes of which must be faced maturely. It is evident that the decline in membership must be halted to avoid an irreversible existential crisis. However, when we consider the number of members and significant financial contributions, which we have been able to make to support our mission locally and overseas, we could say that the Church is having significant impact.

While the decline in numbers is similar to what we see in other communions, the trend reinforces the need for us to be clear about the kind of church we want be in the future: the new strategic plan, the project 32 programme and effective use of tangible and intangible assets are some of the things, which we believe will make a difference for renewal, sustainability and effectiveness.

A major risk we face as a church is to fail to live up to the teachings of Jesus Christ in our dealings with each other and with those with whom we come into contact. The work of the Church can be described as being twofold: to nurture its members and develop their relationship with God and, reaching out to those in the wider community, to demonstrate the Christian message through our life and teaching.

The qualitative nature of our objectives is one that the Trustees consider to be at the heart of our existence as the Moravian Church. We pay tribute to the ongoing commitment and hard work of our ministers, the staff at the headquarters building and the numerous volunteers who offer such loyal service through their own congregations and without whom there would be no Moravian Church in these islands.

We present this report as being a true reflection of our present position.

REVIEW OF FINANCIAL POSITION

The Statement of Financial Activities summarises the movements in all the Group’s funds during the year.

This indicates that the Group recorded a net increase in funds for the year of £351,760, compared to an increase of £1,686,751 in the preceding year. During both the current and preceding financial 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 restructuring exercise to secure its financial viability going forward and achieve maximum return on its investments.

The Group’s total income has increased by £486,986 to £8,506,534 and total expenditure by £669,076 to £8,226,864. This reflects the ongoing restructuring exercise being carried out.

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MORAVIAN CHURCH REPORT OF THE TRUSTEES (Continued) FOR THE YEAR ENDED 31 AUGUST 2024

REVIEW OF FINANCIAL POSITION (Continued)

Total net assets of the Group amount to £31,822,451 and are represented by the Group’s fixed assets. At the year end the Balance Sheet on page 15 discloses net current assets of £635,987 compared to £267,464 at the preceding year end. This primarily reflects the impact of the ongoing restructuring exercise. The financial position of the Group remains strong, having an investment portfolio in stocks and shares of £3,487,159 as well as a property portfolio held for investment purposes of £26,969,063.

The Trustees review the group and individual entities reserves policies on an annual basis taking account of the total net assets of each entity and the group as a whole, proposed activities for the forthcoming year and their funding requirements.

Investment Policy and Objectives

Our investment policy is developed in consultation with the Finance and Property Committee, which makes recommendations to the PEC. The present investment objective is to achieve a balanced return in the investment portfolio. The investment portfolio is managed by professional fund managers and consists entirely of listed securities. Investment decisions are based on an ethical stance with the investment brokers being instructed to avoid specific commodities and prioritise those with reasonable environmental sensitivity.

The movement in market value of investments this year, both realised and unrealised, amounts to a gain of £173,757. Given the Charity’s ethical investment stance, its income requirements and the current economic climate, the Trustees consider the portfolio’s performance to be satisfactory.

The investment properties represent the managed estates and are held to generate rental income for the Moravian Union. The current market value of investment properties has been estimated at £26,969,063 and net rental income is £184,502 compared to the preceding financial year with net rental income of £143,126. Net rental income will fluctuate year on year depending on the level of maintenance work required on the estate’s properties.

Fundraising Policy

The Charity does not use fundraising services, consultants or external professional fundraisers to undertake its fundraising activities and no data is shared with or sold to any external agencies.

The Charity does not undertake Direct Mail and does not approach or pressure vulnerable people to support its work. A complaints procedure is in place and the Charity adheres to the Fundraising Code of practice issued by the Fundraising Regulator.

FUTURE PLANS

During the forthcoming year the Trustees aim to continue to discharge their current responsibilities effectively and efficiently within the constraints of resources both financial and human. The Trustees continue to review the structure of administration to ensure that we are operating as efficiently as is possible given the above constraints.

Furthermore, the Church, with a view to simplifying its record keeping and financial reporting requirements, will continue to review its trust ledgers in order to gain Charity Commission consent to the merger of a number of the smaller funds.

The trustees determined the following principal objectives for the year ending 31 August 2025:

• To implement the activities associated with the strategic plan and the Project 32 Programme for renewal and growth.

• To continue to offer training for ministry or lay preaching to all who wish to be trained provided the trustees are satisfied about their suitability.

• To ensure that all congregations are encouraged to adopt best practice in connection with their work with 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.

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MORAVIAN CHURCH REPORT OF THE TRUSTEES (Continued) FOR THE YEAR ENDED 31 AUGUST 2024

• To continue to promote good practice in the archiving of the Church’s and Congregations’ records by promoting communication between the archivist employed at Church House and individual Congregations.

• To continue to support work in its partner Province of the Moravian 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 bodies and to try and develop ways of working more closely with other denominations.

RESERVES POLICY

The trustees recognise that the Charity requires reserves to allow it to continue its work in the event of unforeseen interruptions to its income streams. The trustees consider the Charity’s reserve requirements at least annually and to be prudent are of the opinion that unrestricted reserves equivalent to at least one year’s total expenditure should be held. At the current year-end, unrestricted reserves (excluding those earmarked for designated purposes) amounted to £1,417,797 and this represented approximately 37% of annual expenditure, excluding School’s expenditure.

The current economic climate has continued to have a significant impact on the activities, income generation and expenditure of the Group. The Trustees have considered this when assessing the Charity’s ability to continue as a going concern and the level of reserves it will require. As explained in note 1 to these financial statements, the Trustees are of the opinion that the reserves available to the Charity are sufficient to ensure that the Charity continues for the foreseeable future.

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees are responsible for preparing the Report of the Trustees and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”.

Charity law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Group and of the incoming resources and application of resources for that period. In preparing those financial statements, the Trustees are required to: -

• select suitable accounting policies and apply them consistently;

• observe the methods and principles of the Charities SORP;

• make judgements and estimates that are reasonable and prudent; and

• prepare the financial statements on a going concern basis unless it is inappropriate to presume that the Group will continue to operate.

The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Parent Charity and the Group and to enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the Parent Charity and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

On behalf of the Trustees

Miss R. M. A. Hoey Chair

Rev Dr L. A. Thompson Treasurer

Date: 28 July 2025

Page 12

INDEPENDENT AUDITORS REPORT TO THE TRUSTEES OF

THE BRITISH PROVINCE OF THE UNITAS FRATRUM OPERATING AS MORAVIAN CHURCH

OPINION

We have audited the financial statements of The British Province of the Unitas Fratrum operating as Moravian Church for the year ended 31 August 2024, which comprise the Consolidated Statement of Financial Activities, the Group and the Parent Charity’s Balance Sheet, the Cashflow Statement and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’.

In our opinion the financial statements:

• give a true and fair view of the state of the parent charity and the group’s affairs as at 31 August 2024, and of the group’s incoming resources and application of resources, for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’; and

• have been prepared in accordance with the requirements of the Charities Act 2011.

This report is made solely to the Trustees in accordance with section 144 of the Charities Act 2011 and the regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the Trustees those matters we are required to state to the Trustees in an auditors’ report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s Trustees for our audit work, for this report, or for the opinions we have formed.

BASIS FOR OPINION

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

CONCLUSIONS RELATING TO GOING CONCERN

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

OTHER INFORMATION

The other information comprises the information included in the Report of the Trustees, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Page 13

INDEPENDENT AUDITORS REPORT TO THE TRUSTEES OF

THE BRITISH PROVINCE OF THE UNITAS FRATRUM OPERATING AS MORAVIAN CHURCH

RESPONSIBILITIES OF THE TRUSTEES

As explained more fully in the Statement of Trustees’ Responsibilities the trustees are responsible for preparing the Report of the Trustees and the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS

We have been appointed as auditors under Section 144(1) of the Charities Act 2011 and report in accordance with regulations made under that Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

• The Charity is required to comply with charity law and, based on our knowledge of its activities, we identified the legal requirements to comply with this legislation including the requirement to correctly account for restricted funds.

• • We gained an understanding of how the charity complied with its legal and regulatory framework, including the requirement to properly account for restricted funds through discussions with management and a review of the documented policies, procedures and controls.

• The audit team, which is experienced in the audit of charities, considered the charity’s susceptibility to material misstatement and how fraud may occur. Our considerations included the risk of management override.

• Our approach was to check that all restricted income was properly identified and separately accounted for and to ensure that only valid and appropriate expenditure was charged to restricted funds. This included reviewing journal adjustments and unusual transactions

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

Knox Cropper LLP Statutory Auditor 65 Leadenhall Street London EC3A 2AD

Date: 28 July 2025

Knox Cropper LLP is eligible to act as an auditor of the Charity in terms of section 1212 of the Companies Act 2006.

Page 14

MORAVIAN CHURCH CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2024

Notes Income and endowments from: Donations and Legacies 2 Other Trading Activities 3 Investments 4 Charitable activities 5 Other 6 Total Income Expenditure on: Raising Funds Fundraising trading: cost of goods sold and other costs 7 Investment management costs 7 Charitable Activities 7 Total Expenditure Net Gains/(Losses) on investment assets 10, 11 Net income/(expenditure) Other Recognised Gains/(Losses) Actuarial Gains/(Losses) on Defined Benefit Pension Scheme 19 Transfers between reserves 17 NET MOVEMENT IN FUNDS Reconciliation of Funds: Total Funds Brought Forward 17 TOTAL FUNDS CARRIED FORWARD	Unrestricted Funds General Designated £ £	Unrestricted Funds General Designated £ £	Restricted Funds £	Total 2024 £	Total 2023 £
	479,526 - 880,873	6,642 - 15,782	805,530 113,346 420,513	1,291,698 113,346 1,317,168	1,187,249 93,243 1,235,190
	1,360,399 50,812 1,226,300	22,424 2,520 -	1,339,389 4,504,690 -	2,722,212 4,558,022 1,226,300	2,515,682 4,026,293 1,477,573
	2,637,511	24,944	5,844,079	8,506,534	8,019,548
	- (752,036)	- (1,474)	(158,576) (9,818)	(158,576) (763,328)	(123,007) (810,508)
	(752,036) (1,093,120)	(1,474) (877,249)	(168,394) (5,334,591)	(921,904) (7,304,960)	(933,515) (6,624,273)
	(1,845,156)	(878,723)	(5,502,985)	(8,226,864)	(7,557,788)
	101,282	(4,110)	156,316	253,488	754,305
	893,637 - (752,848)	(857,889) (181,398) 1,217,679	497,410 - (464,831)	533,158 (181,398) -	1,216,065 470,686 -
	140,789 1,277,008 £1,417,797	178,392 25,977,279 £26,155,671	32,579 4,216,404 £4,248,983	351,760 31,470,691 £31,822,451	1,686,751 29,783,940
					£31,470,691

All gains and losses arising in the year have been included in the Statement of Financial Activities and relate to continuing operations.

As a result of its activities for the year the parent charity, The Moravian Church, disclosed a net increase in funds of £36,968. Its total net assets at the year end stood at £1,147,488

The notes form part of these financial statements.

Page 15

MORAVIAN CHURCH

CONSOLIDATED BALANCE SHEET

AT 31 AUGUST 2024

Notes FIXED ASSETS Tangible Fixed Assets 9 Investment Property 10 Investments 11 CURRENT ASSETS Stock 12 Debtors 13 Cash at Bank and in Hand LIABILITIES Creditors: Amounts falling due within one year 14 NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES CREDITORS: Amounts falling due after more than one year 15 Defined Benefit Pension Liability 19 TOTAL NET ASSETS The Funds of the Charity: Restricted Funds 17 Unrestricted Funds General 17 Designated Fund – Defined Benefit Pension Liability 17 Designated 17 TOTAL FUNDS	Group 2024 2023 £ £ 4,224,404 4,756,235 26,969,063 27,143,814 3,487,159 2,939,874 34,680,626 34,839,923 33,076 47,552 679,115 585,976 1,925,408 1,328,993 2,637,599 1,962,521 (2,001,612) (1,695,057) 635,987 267,464 35,316,613 35,107,387 (479,658) (690,229) (3,014,504) (2,946,467) £31,822,451 £31,470,691 4,248,983 4,216,404 1,417,797 1,277,008 (3,014,504) (2,946,467) 29,170,175 28,923,746 27,573,468 27,254,293 £31,822,451 £31,470,691	Group 2024 2023 £ £ 4,224,404 4,756,235 26,969,063 27,143,814 3,487,159 2,939,874 34,680,626 34,839,923 33,076 47,552 679,115 585,976 1,925,408 1,328,993 2,637,599 1,962,521 (2,001,612) (1,695,057) 635,987 267,464 35,316,613 35,107,387 (479,658) (690,229) (3,014,504) (2,946,467) £31,822,451 £31,470,691 4,248,983 4,216,404 1,417,797 1,277,008 (3,014,504) (2,946,467) 29,170,175 28,923,746 27,573,468 27,254,293 £31,822,451 £31,470,691	Parent 2024 2023 £ £ 347,556 355,279 - - 141,172 192,898 488,728 548,177	Parent 2024 2023 £ £ 347,556 355,279 - - 141,172 192,898 488,728 548,177
				548,177
	33,076 679,115 1,925,408	47,552 585,976 1,328,993	- 124,377 943,842	- 129,423 919,341
	2,637,599 (2,001,612) 635,987 35,316,613 (479,658) (3,014,504) £31,822,451 4,248,983		1,068,219 (409,459) 658,760 1,147,488 - - £1,147,488 1,115,139	1,048,764 (486,421)
				562,343
				1,110,520 - -
				£1,110,520
				1,079,796
	1,417,797 (3,014,504) 29,170,175	1,277,008 (2,946,467) 28,923,746	- - 32,349	- - 30,724
	27,573,468 £31,822,451		32,349 £1,147,488	30,724
				£1,110,520

Rev Dr L. Thompson

Miss R. M. A. Hoey

Charity Number: 251211 The notes form part of these financial statements.

Page 16

MORAVIAN CHURCH CONSOLIDATED CASHFLOW STATEMENT FOR THE YEAR ENDED 31 AUGUST 2024

Notes NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES Investment income Payments to acquire tangible fixed assets 9 Proceeds on disposal of tangible fixed assets Proceeds on disposal of investment property assets 10 Purchase of fixed asset investments 11 Proceeds of sale of fixed asset investments 11 CASH FLOWS FROM FINANCING ACTIVITIES Interest paid Movement on Loans CHANGE IN CASH AND CASH EQUIVALENTS Cash and Cash Equivalents at the beginning of the reporting period Cash and Cash Equivalents at the end of the reporting period RECONCILIATION OF NET MOVEMENT IN FUNDS TO Net Movement in funds for the year Investment Income Interest Paid Depreciation (Gains)/Losses on disposal of property fixed assets (Gains)/Losses on disposal of other fixed assets (Gains)/Losses on investment assets Investment asset impairment (Increase)/Decrease in Stock (Increase)/Decrease in Debtors Increase/(Decrease) in Creditors Movement on Defined Benefit Pension Liability NET DEBT RECONCILIATION Cash at Bank and in Hand UBS facility drawn down Loans repayable within one year Loans repayable outside one year

2024 2023 £ £ £ £ 512,558 (490,454) 1,317,168 1,235,190 (3,155) (783,469) 372,617 - 154,482 432,464 (989,417) (978,491) 615,889 3,130,955 1,467,584 3,036,649 (194,532) (226,676) (164,079) (2,151,204) (358,611) (2,377,880) 596,415 168,315 1,328,993 1,160,678 £1,925,408 £1,328,993 NET CASH OUTFLOW 2024 2023 £ £ 351,760 1,686,751 (1,317,168) (1,235,190) 194,528 226,676 213,690 164,421 (51,322) (946,429) - - (47,830) (5,271) (105,658) 198,160 14,476 (20,028) (93,139) (78,609) 260,068 137,157 68,037 (618,092) £ (512,558) £ (490,454) 01/09/2023 Cashflow 31/08/2024 £ £ £ 1,328,993 596,415 1,925,408 - - - (157,353) 58,572 (98,781) (585,165) 105,507 (479,658) £586,475 £760,494 £1,346,969

Page 17

MORAVIAN CHURCH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

1. ACCOUNTING POLICIES

Basis of Preparation

The financial statements of the Charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the provisions of the Charities Act 2011, the Statement of Recommended Practice “Accounting and Reporting by Charities” applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), FRS 102 and the Charities Act 2011. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102.

The financial statements consolidate the incoming resources and resources expended, assets and liabilities of the following entities:

Moravian Church and its Congregations (The Parent) The Moravian Union (Incorporated) Fulneck School Ockbrook School (until 28 July 2021) Fulneck Choir House

The presentation currency of the financial statements is Pound Sterling (£).

Going Concern

The trustees consider that there are no material uncertainties about the Group’s ability to continue as a going concern. The Group is continuing a financial restructuring exercise (see note 22) and has secured a lease on its Ockbrook School properties, which previously entered administration, and provisions made against its loan to Fulneck School to support its financial stability. In forming this opinion, they have considered the impact of the ongoing financial restructuring exercise on both its income and expenditure for at least a period of twelve months from the date of approval of these financial statements. The Charity’s reserves, including the investment properties revaluation reserve, and plans in place are sufficient to ensure that it remains a going concern for the foreseeable future.

Income Recognition

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Donations and Legacies

Income from donations and legacies is generally recognised on receipt. However, income from the Mrs E M Bates Trust is accrued at the balance sheet date if the trustees are satisfied that the criteria of entitlement, certainty and measurement have been met on the basis of declarations and/or payments by the donating organisation after the year end.

School Fees

Fees receivable and charges for services and use of premises are accounted for in the period in which the service is provided. Fees receivable are stated after deducting allowances, scholarships and other remissions granted by the schools.

Rental Income

Rents receivable are included on an accruals basis.

Investment Income

Investment income is recognised when received by the investment managers.

Page 18

MORAVIAN CHURCH NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 AUGUST 2024

1. ACCOUNTING POLICIES (Continued)

Income Recognition (Continued)

Other Income

Other income is generally recognised on an accruals basis.

Expenditure

Liabilities are recognised when a legal or constructive 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 expenditure heads in the SOFA include both direct costs and apportioned overhead costs. Overhead costs are apportioned on the basis of employee time.

Charitable activities represent the direct costs of carrying out the charity’s aims, together with allocated support costs which are apportioned to the different expenditure heads on the basis of staff time. Governance costs are the costs of meeting the charity’s regulatory obligations and are included within support costs.

Stock

Stock is valued at the lower of cost and net realisable value.

Investments

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year.

All gains and losses are taken to the statement of financial activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the statement of financial activities. The Trust does not acquire put options, derivatives or other complex financial instruments.

The main form of financial risk faced by the charity is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within certain sectors or sub sectors.

Investment Property

Residential investment property is valued at market value at the balance sheet date. It was independently valued on 3 July 2015 by SHP Valuers Ltd, a firm of Chartered Surveyors registered with the Royal Institute of Chartered Surveyors (RICS), based on information on the condition of the properties supplied by the Charity’s estate manager, John Forrester Ltd. The market value of the properties is reviewed annually and adjusted based on the condition and usage of those properties, as advised by John Forrester Ltd, using the Halifax Regional House Price Indices and other supporting information when available. The properties of the former Ockbrook School have been valued based on future rental income net of future repair costs.

Leases

Payments for operating lease rentals are charged to the income and expenditure account over the period of the lease. Assets acquired under finance leases or hire purchase contracts are capitalised and depreciated over the life of the lease with payments to the lessor being apportioned between capital which writes down the outstanding obligation and interest which is charged to the Statement of Financial Activities over the period of the lease on a straight-line basis.

Page 19

MORAVIAN CHURCH NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 AUGUST 2024

1. ACCOUNTING POLICIES (Continued)

Tangible Fixed Assets

All freehold property is analysed between functional properties (e.g. Churches, Church Halls, Manses and Church House) and investment properties (the ‘estates properties’) which are maintained to generate rental income. The functional properties are carried at cost and depreciated. The investment properties are carried at market value.

For functional properties, depreciation is not provided on freehold land. The cost of buildings less their estimated residual value is depreciated on a straight-line basis at 1% pa for the structure and 2.5% pa for the roof. Certain properties used by congregations are not reflected on the balance sheet, although legal title may be vested in the Union, as they were acquired a number of years ago and no record of their cost is available.

Depreciation of fixed assets is provided at rates estimated to write off the cost, less estimated residual value of each asset over its expected useful life, as follows:

			Moravian	Fulneck
			Union	School
Freehold land and buildings			1%-	N/A
			2.5%
Leasehold	land	and	N/A	2%
buildings
Furniture and equipment			25-	10-
			33.3%	15%
Computer equipment			N/A	33.3%
Motor vehicles			N/A	25%
Leased Assets			Over the life of the lease

Taxation

For all charitable activities, the Church enjoys exemption from corporation tax under the Corporation Taxes Act 2010. The charity is not registered for Value Added Tax (VAT) and expenditure includes irrecoverable VAT where incurred.

Advance Fees Scheme

Where the school offers parents the opportunity to pay for up to seven years tuition fees in advance in accordance with a written contract, the amounts received are invested and interest is accrued to contracts. This is treated as deferred income until the pupil joins the school whereupon the fees for each school term are charged against the remaining balance and taken to income. Any shortfall is treated as a deduction from school fee income and any excess accrued is treated as additional school income.

Financing costs include amounts accrued in accordance with the terms of the Advance Fees contracts.

Fund Accounting

Funds held by the charitable group are either: -

• Unrestricted general funds – these are funds which can be used for any purpose which is in accordance with the charity’s objectives and at the discretion of the Trustees.

• Designated funds – these are funds set aside by the Trustees out of unrestricted general funds for a specific future purpose or project. All sums applied to the purchase of property are classified as designated funds.

• Restricted funds – these are funds that can only be used for a particular purpose within the objects of the charity. Restrictions arise when specified by either the donor or by way of indication when certain funds are raised.

Page 20

MORAVIAN CHURCH NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 AUGUST 2024

1. ACCOUNTING POLICIES (Continued)

Pensions

The different entities of the Moravian Church run a variety of pension schemes. Further details of each scheme are shown in Note 19.

As explained in note 19 to these financial statements, The Moravian Union has recognised discretionary pensions payable to retired ministers as an obligation. This liability is valued by The Moravian Union’s actuaries (BWCI). The Trustees review the reasonability of assumptions underlying the most recent valuation annually and consider whether a new valuation is required. If a new valuation is not considered necessary, adjustment should be made to unwind the discount applied to the most recent valuation by one year. The Trustees consider that the assumptions underlying the previous valuation, as at 31 August 2017, have now changed significantly and an actuarial valuation was commissioned and 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 significantly and a prior year adjustment has been made (Note 23). Movements during the year are disclosed in note 19 to these financial statements.

With effect from 31 December 2015 the discretionary scheme for active members was discontinued and replaced by a defined contribution scheme. The charitable company’s liability under this scheme is limited to paying contributions as they arise and these costs are recognised in the accounts when the contributions fall due.

The Moravian Union contributes at the rate of 7% of pensionable salaries to the private pension plans of a number of employees. As the charitable company’s liability under these schemes is limited to paying contributions due to the schemes at the appropriate time, these costs are recognised in the accounts when the contributions fall due.

A number of the professional staff employed at Fulneck School participate in a multi-employer pension scheme, the Governments’ Teachers Pension Defined Benefits Scheme, for its teaching staff. The TPS is an unfunded scheme and contributions are calculated to spread the cost of pensions over employees’ working lives with the school in such a way that the pension cost is a substantially level percentage of current and future pensionable payroll. The TPS is a multi-employer pension scheme open to the school’s teaching staff and it is not possible to identify the assets and liabilities of the scheme attributable to the school. 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 schemes are charged to the statement of financial activities in the year in which they become payable. The school withdrew from the TPS Scheme with effect from 31 August 2023

Short-term debtors and creditors

Debtors are recognised when the Charity is legally entitled to the income after any performance 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 charity has a present legal or constructive obligation resulting from a past event to make payment to a third party, it is probable that settlement will be required and the amount due to settle the obligation can be measured or estimated reliably.

Page 21

MORAVIAN CHURCH NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 AUGUST 2024

1. ACCOUNTING POLICIES (Continued)

Key Judgements and Estimates

(i) Financial instrument classification

The classification of financial instruments, both assets and liabilities, as ‘basic’ or ‘other’ requires judgement as to whether all applicable conditions as basic are met. This includes the type of investment or loan and its return. The Charity only has financial assets and liabilities of a kind that qualify as basic financial instruments. These are initially recognised at transaction value and subsequently valued at their settlement value.

Concessionary loans received are initially recognised at the amount received with the carrying amount adjusted in subsequent years to reflect repayments and any accrued interest and adjusted, if necessary, for any impairment.

(ii) Useful lives of functional properties

The remaining useful lives of depreciable properties are reviewed by management at each reporting date and, if necessary, the depreciation charge adjusted accordingly.

• (iii) Recognition and valuation of investment properties

The classification of The Moravian Union’s properties between functional and investment purposes requires judgement of the use of those properties. Management annually reviews the usage of properties and their classification is amended when necessary.

The market value of properties classified as investments is annually reviewed by management and, based on the condition of those properties, the value is adjusted using a recognised market indices.

(iv) Valuation of retired ministers’ defined benefit pension liability

The assumptions underlying the pension scheme actuarial valuation are reviewed annually by the trustees. If they consider that the principal actuarial assumptions have not changed significantly the liability at the year-end should be adjusted by unwinding the discount by one year. If they consider that changes in the principal actuarial assumptions will have a material impact on the value of the liability then an actuarial valuation will be commissioned. It is intended that an actuarial valuation will be carried out at least every five years to realign the liability. As detailed above under Pensions the actuarial valuation carried out indicated that the 2021 assumptions had changed significantly and a prior year adjustment has been made (note 23).

(v) Doubtful debt provision

The recoverability of outstanding debtor balances is reviewed by senior management on an annual basis. When recoverability is considered doubtful, a provision is made against the balance.

Page 22

MORAVIAN CHURCH

NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 AUGUST 2024

2. DONATIONS AND LEGACIES

Unrestricted Funds General Designated £ £ Mrs E M Bates Trust 416,204 6,642 Grants - - Donations and Legacies 3,322 - The London Mission in Aid of Moravian Mission 60,000 - £479,526 £6,642 3.OTHER TRADING ACTIVITIES Fundraising events - - £- £- 4.INVESTMENT INCOME Quoted Securities 8,350 14,080 Rents Receivable 872,523 1,702 Bank Interest - - £880,873 £15,782 5.INCOME FROM CHARITABLE ACTIVITIES School Fees Fulneck School - - Congregational Activities - - Unity Income - - Book Sales 19,335 - Other Activities 31,477 2,520 £50,812 £2,520 6.OTHER INCOME Gain on disposal of fixed assets 1,226,300 - £1,226,300 £-	Unrestricted Funds General Designated £ £ 416,204 6,642 - - 3,322 - 60,000 -	Restricted Funds £ - 57,499 748,031 -	Total Total 2024 2023 £ £ 422,846 365,101 57,499 26,842 751,353 732,306 60,000 63,000
	£479,526 £6,642	£805,530	£1,291,698 £1,187,249
		113,346	113,346 93,243
	£- £-	£113,346	£113,346 £93,243
	8,350 14,080 872,523 1,702 - -	153,406 261,746 5,361	175,836 197,256 1,135,971 1,032,481 5,361 5,453
	£880,873 £15,782	£420,513	£1,317,168 £1,235,190
		4,222,559 186,662 10,989 195 84,285	4,222,559 3,685,733 186,662 199,411 10,989 11,000 19,530 18,234 118,282 111,915
	£50,812 £2,520	£4,504,690	£4,558,022 £4,026,293
	1,226,300 -	-	1,226,300 1,477,573
	£1,226,300 £-	£-	£1,226,300 £1,477,573

MORAVIAN CHURCH NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 AUGUST 2024

7. EXPENDITURE

Fulneck School General Education Costs Congregation Fundraising Activities Ministry Grants and Projects Burial Ground Costs Estate Management Costs Staff Costs Ministers Travel Ministerial Training Other Ministerial Costs Archive Costs Brokers Fees Honorariums Provision for Doubtful Debts Youth and Children Audit Bank Charges Interest Depreciation Book Purchases Subscriptions and Licences Messenger Stationery and Postage Premises (cleaning, repairs, security, light, power and utilities) Legal & Professional Computer Software Maintenance & Licences Communications Insurance Ministers Removal Costs Other Congregations Costs Other Office Costs Apportioned Support Costs (based) on staff time) Total 2024 Total 2023	Costs of Raising Funds	Costs of Raising Funds	Charitable Activities	Charitable Activities	Charitable Activities	Support Costs Total 2024 Total 2023 £ £ £ - 644,415 555,398 - 61,810 22,243 - 630,301 591,090 - 204,582 237,217 - 5,663 1,642 - 745,495 728,500 877,630 3,523,584 3,281,471 - 35,139 36,591 - 36,853 14,177 - 32,851 26,225 - 57,384 59,026 - 17,833 27,572 - 17,196 15,746 - - 106,261 - 35,537 36,537 48,640 65,420 44,140 - 14,995 15,654 194,399 194,528 226,676 36,228 213,690 164,422 - 14,840 10,124 - 20,512 19,827 - 25,440 24,798 17,552 28,022 22,592 361,809 1,214,180 865,217 29,530 72,647 97,049 102,277 102,277 83,217 3,179 3,179 5,759 13,629 153,884 130,120 - 3,906 45,109 - 38,999 54,439 1,301 11,702 5,271
	Fundraising Trading Activities and other costs	Investment Management Costs	Education Costs	Ministry and Congregations
				Domestic	Overseas
	£ £ - - 61,810 - - - - - - - - 745,495 42,614 - - - - - - - - - - 17,833 1,000 - - - - - - - 11,309 - 129 - - - - - - - - - - - 41,714 - - - - - - - - - - - - - - -		£ 644,415 - - - - - 2,253,006 - - - - - - - - - - - 169,739 - - - - 288,872 - - - 71,639 - - -	£ - - 630,301 112,584 5,663 - 316,720 35,139 36,853 32,851 57,384 - 16,196 - 35,537 16,780 3,686 - 7,723 14,840 20,512 25,440 10,470 521,785 43,117 - - 68,616 3,906 38,999 10,401	£ - - - 91,998 - - 33,614 - - - - - - - - - - - - - - - - - - - - - - - -
	158,576 763,328 - -		3,427,671 991,836	2,065,503 604,074	125,612 90,264	1,686,174 8,226,864 7,557,788 (1,686,174) - -
	£158,576 £763,328		£4,419,507	£2,669,577	£215,876	£- £8,226,864 £7,557,788
	£123,007 £810,508		£3,886,713	£2,406,061	£331,499	£- £7,557,788

All grants are made to charitable institutions and are to help fund the ministry and congregations. They range in value from £200 to £50,000.

Page 24

MORAVIAN CHURCH NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 AUGUST 2024

8. STAFF COSTS

Gross Pay Social Security Costs Pension Costs Other staff costs Included in Note 7 as follows: Staff Costs Archive Costs Ministry Ministerial Training Youth and Children Average Staff Numbers: Teaching Ministers Other Between £70,001 - £80,000 Between £80,001 - £90,000 Between £90,001 - £100,000 Between £100,001 - £110,000

Moravian Church Moravian Union Fulneck School 2024 Total 2023 Total £ £ £ £ £ 457,445 299,105 2,722,155 3,478,705 3,138,510 48,568 28,888 225,151 302,607 265,233 88,019 17,312 209,041 314,372 423,363 594,032 345,305 3,156,347 4,095,684 3,827,106 - 3,105 - 3,105 6,380 £594,032 £348,410 £3,156,347 £4,095,684 £3,833,486 76,145 291,092 3,156,347 3,523,584 3,281,471 - 57,318 - 57,318 58,960 420,222 - - 420,222 474,682 - - - - - 97,665 - - 97,665 18,373 £594,032 £348,410 £3,156,347 £4,098,789 £3,833,486 No. No. No. No. No. - - 63 63 63 13 - - 13 13 3 6 28 37 37 16 6 91 113 113 - - 1 1 1 - - - - - - - - - - - - - - -

The Key Management Personnel of the Charity are those persons having authority and responsibility for planning, directing and controlling the activities of the Charity, directly or indirectly, including any trustee of the Charity. Key Management Personnel of the Moravian Church are considered to be the members of the Provincial Elders’ Conference, who are also the trustees. The Trustees are not remunerated for their services as such. However, the regulations and practice of Synod allows serving ministers and Church House staff to be elected to the Provincial Elders’ Conference and to continue to receive their stipends/salaries. During the period the following emoluments (including benefits) were paid.

Rev. D. R. Howarth Miss R. M. A. Hoey	2024 £ 2023 £ 37,466 35,686 38,679 36,211
	£76,145 £71,897

An amount of £25,544 (2023: £11,875) was reimbursed to the Trustees for travel expenses incurred during the period.

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MORAVIAN CHURCH NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 AUGUST 2024

9. TANGIBLE FIXED ASSETS

GROUP Cost Brought Forward Additions Disposals At 31 August 2024 Depreciation Brought Forward Charge for period Depreciation on disposals At 31 August 2024 Net Book Value At 31 August 2024 At 31 August 2023 PARENT Cost Brought Forward Additions Disposals At 31 August 2024 Depreciation Brought Forward Charge for period Depreciation on disposals At 31 August 2024 Net Book Value At 31 August 2024 At 31 August 2023	Land and Buildings Furniture, Fixtures and Fittings Computer Equipment Total £ £ £ £ 7,030,316 1,414,948 17,893 8,463,157 - 588 2,567 3,155 (365,918) (6,699) - (372,617)
	6,664,398 1,408,837 20,460 8,093,695
	2,434,032 1,254,998 17,893 3,706,923 102,109 111,404 177 213,690 (47,833) (3,489) - (51,322)
	2,488,308 1,362,913 18,070 3,869,291
	£4,176,090 £45,924 £2,390 £4,224,404
	£4,596,284 £159,949 £- £4,756,235
	386,172 21,413 - 407,585 - - - - - - - -
	386,172 21,413 - 407,585
	30,893 21,413 - 52,306 7,723 - - 7,723 - - - -
	38,616 21,413 - 60,029
	£347,556 £- £- £347,556
	£355,279 £- £- £355,279

Part of the above Land and Buildings are subject to Mortgages – see Note 15. Certain properties used by congregations are not reflected on the balance sheet, although legal title is vested in the Moravian Union, as they were acquired a significant number of years ago and no record of their cost is available. These are functional properties used for charitable purposes.

Page 26

MORAVIAN CHURCH

NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 AUGUST 2024

10. INVESTMENT PROPERTIES

VESTMENT PROPERTIES
Market Value At 1 September 2023 Impairment Disposal Proceeds Realised gain on disposal Unrealised Revaluation Gains/(Losses) At 31 August 2024	2024 £ 27,143,814 - (154,482) - (20,269) £26,969,063	2023 £ 26,817,467 (198,160) (432,464) 213,342 743,629
		£27,143,814

The Charity’s estate properties were independently valued in November 2024 by John Forrester, Chartered Surveyors & Land Agents. The valuation was a desktop-based exercise and not a Red Book valuation. However, the valuation did follow the guidance of the RICS Valuation Professional Standards (Global & UK edition 2021).

In addition, a report and valuation was commissioned from Savills for the Ockbrook School estate as at 31 August 2024. This valuation was RICS compliant.

11. INVESTMENTS

LISTED INVESTMENTS Carrying Value at Beginning of year Additions Disposal Proceeds Realised Gains/(Losses) Unrealised Gains/(Losses) Carrying Value at 31 August	Group Total 2024 Total 2023 £ £ 2,939,874 5,097,609 989,417 978,491 (715,889) (3,130,955) 47,830 99,327 225,927 (104,598) £3,487,159 £2,939,874	Parent Total 2024 Total 2023 £ 192,898 161,694 - 35,982 (65,030) (2,042) (1,251) 880 14,555 (3,616) £141,172 £192,898	Parent Total 2024 Total 2023 £ 192,898 161,694 - 35,982 (65,030) (2,042) (1,251) 880 14,555 (3,616) £141,172 £192,898
			£192,898

The following investments individually represented more than 5% of the total market value of the portfolio:

The Charities Property Fund

The Charities Property Fund 12. STOCK Group Moravian Union Schools Stocks	£300,269 2024 £ 19,476 13,600 £33,076	£420,769 2023 £ 20,254 27,298
		£47,552

Page 27

MORAVIAN CHURCH

NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 AUGUST 2024

13. DEBTORS

EBTORS
Trade Debtors Amounts due from related Organisations Other Debtors Prepayments and Accrued Income Agents Balances Rent Due	Group 2024 £ 2023 £ 165,455 138,636 2,292 - 152,438 82,970 276,356 245,301 33,965 67,128 48,609 51,941 £679,115 £585,976	Parent 2024 £ 2023 £ - - 104,911 109,752 19,466 19,671 - - - - - - £124,377 £129,423
			£129,423

14. CREDITORS: Amounts falling due in less than one year

Loans and Overdrafts Bank Loans Trade Creditors Amounts due to related Organisations Other Creditors Social Security and other Taxes Accruals and Deferred Income Fees in advance Hire Purchase Contract Bates Trust Loan	Group 2024 £ 2023 £ 52,654 106,906 136,620 124,846 - - 416,148 40,628 123,138 96,847 365,163 350,146 852,007 925,237 - - 55,882 50,447 £2,001,612 £1,695,057	Parent 2024 £ 2023 £ 9,755 67,620 - - 215,746 242,413 1,584 1,584 - - 182,374 174,804 - - - - - - £409,459 £486,421	Parent 2024 £ 2023 £ 9,755 67,620 - - 215,746 242,413 1,584 1,584 - - 182,374 174,804 - - - - - - £409,459 £486,421
			£486,421

Deferred Income consists of rent and School fees in advance.

Balance brought forward Rent and School Fees received in advance Released to revenue during the year Balance carried forward	Group 2024 £ 2023 £ 925,237 861,063 852,007 925,237 (925,237) (861,063) £852,007 £925,237	Parent 2024 £ 2023 £ - - - - - - £- £-	Parent 2024 £ 2023 £ - - - - - - £- £-
			£-

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MORAVIAN CHURCH NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 AUGUST 2024

15. CREDITORS: Amounts falling due in more than one year

Group Bank Loans - Fulneck School - Moravian Union Bates Trust Loan Other Creditors Group Bank Loans - Fulneck School - Moravian Union Bates Trust Loan Other Creditors	1 – 2 years 2 – 5 years More than 5 years 2024 £ £ £ £ 17,208 35,062 9,124 61,394 42,000 126,000 32,877 200,877
	59,208 161,062 42,001 262,271
	51,708 47,983 - 99,691 117,696 - - 117,696
	£228,612 £209,045 £42,001 £479,658
	1 – 2 years 2 – 5 years More than 5 years 2023 £ £ £ £ 19,497 39,700 21,694 80,891 22,206 76,547 248,191 346,944
	41,703 116,247 269,885 427,835 52,016 105,314 - 157,330 105,064 - - 105,064
	£198,783 £221,561 £269,885 £690,229

When Ockbrook School went into administration in 2021, The Moravian Union as guarantor assumed responsibility for the liability in respect of Ockbrook School’s outstanding bank loan balances which amount to £243,776 at the balance sheet date (2023: £367,676), of which £42,899 was repayable within one year (2023: £20,732). The outstanding loans are secured against Moravian Union property.

Fulneck School has one bank loan (2019), secured against the Fulneck School property which is owned by the Moravian Union. At the year-end £61,394 (2023: £99,445) remained outstanding, of which £Nil (2023: £18,554) was repayable within one year. On the winding up of Fulneck School, this liability will transfer to the Moravian Union.

During 2017 a loan of £500,000 was extended to The Moravian Union by the Mrs EM Bates Trust. The loan was to provide investment funding to The Moravian Union to undertake a major fixed asset properties repair programme. The loan is to be repaid over a period of 10 years and is secured against Flat 5 Winkley Court, a property valued at in excess of £500k. Interest is charged at 2%. The loan is considered a concessionary loan.

Page 29

MORAVIAN CHURCH NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 AUGUST 2024

16. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Group Tangible fixed assets Investments Investment Properties Cash at bank and in hand Other net assets/(liabilities) Parent Tangible fixed assets Investments Cash at bank and in hand Other net assets/(liabilities)	Unrestricted Funds General £ Designated £ 4,569 2,005,367 1,308,085 207,586 - 26,969,063 2,459,011 206,973 (2,353,868) (3,233,318) £1,417,797 £26,155,671 - - - - - 32,349 - - £- £32,349	Restricted Funds £ 2,214,467 1,971,487 - (740,576) 803,605 £4,248,983 347,556 141,172 911,493 (285,082) £1,115,139	Total 2024 £ 4,224,403 3,487,158 26,969,063 1,925,408 (4,783,581)
	General £ 4,569 1,308,085 - 2,459,011 (2,353,868) £1,417,797 - - - - £-
			£31,822,451
			347,556 141,172 943,842 (285,082)
			£1,147,488

2023 Group Tangible fixed assets Investments Investment Properties Cash at bank and in hand Other net assets/(liabilities) Parent Tangible fixed assets Investments Cash at bank and in hand Other net assets/(liabilities)	Unrestricted Funds General £ Designated £ 6,953 2,357,353 1,077,656 171,018 - 27,143,814 1,002,581 190,137 (810,182) (3,885,043) £1,277,008 £25,977,279 - - - - - 30,724 - - £- £30,724	Restricted Funds £ 2,391,929 1,691,200 - 133,275 - £4,216,404 355,279 192,898 888,617 (356,998) £1,079,796	Total 2023 £ 4,756,235 2,939,874 27,143,814 1,325,993 (4,695,225)
	General £ 6,953 1,077,656 - 1,002,581 (810,182) £1,277,008 - - - - £-
			£31,470,691
			355,279 192,898 919,341 (356,998)
			£1,110,520

MORAVIAN CHURCH

NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 AUGUST 2024

17. MOVEMENTS ON FUNDS

GROUP AND PARENT 2024 RESTRICTED Moravian Union Evangelical Ministers emoluments Education Overseas Property Relief of poverty Other Moravian Church (congregations) – Parent only Fulneck School Fulneck Choir House Comenius Foundation DESIGNATED Moravian Union Defined Benefit Pension Scheme Ministers emoluments Property Investment Property – Cost Investment Property – Revaluation Other Mission Renewal Moravian Church and Congregations – Parent only GENERAL Moravian Union Moravian Church – Parent only	Opening Balance At 01/09/23 Incoming Resources Resources Expended Investment Gains/(Losses) Actuarial Gains/(Losses) on Defined Pension Benefit £ £ £ £ £ 167,047 5,958 (5,958) 8,242 - 640,029 18,870 (23,870) 26,339 - 117,310 9,896 (7,180) 3,301 - 363,676 1,170 (1,170) 17,087 - 1,841,915 123,757 (104,308) 75,429 - 3,314 75 (75) 152 - 431,094 38,358 (151,713) 12,463 -	Transfers Closing Balance At 31/08/24 £ £ - 175,289 - 661,368 - 123,327 - 380,763 - 1,936,793 - 3,466 109,317 439,519
	3,564,385 198,084 (294,274) 143,013 - 1,079,796 1,267,577 (692,438) 13,303 - (651,966) 4,328,885 (4,473,559) - - 93,963 42,851 (42,714) - - 130,226 6,682 - - -	109,317 3,720,525 (553,099) 1,115,139 7,117 (789,523) - 94,100 (28,166) 108,742
	4,216,404 5,844,079 (5,502,985) 156,316 -	(464,831) 4,248,983
	(2,946,467) - (151,946) - (181,398) 59,320 9,779 (139) 2,027 - 1,965,244 3,481 (1,328) 14,040 - 1,567,207 - - - - 25,208,930 - - (20,269) - 2,127 7 (7) 92 - 90,193 - - - -	265,307 (3,014,504) (2) 70,986 23,930 2,005,367 5,665 1,572,872 207,527 25,396,188 - 2,219 - 90,193
	25,946,554 13,267 (153,420) (4,110) (181,398) 30,725 11,676 (725,303) - -	502,427 26,123,321 715,252 32,350
	25,977,279 24,943 (878,723) (4,110) (181,398)	1,217,679 26,155,671
	1,277,008 2,637,017 (1,827,339) 101,282 - - 494 (17,817) - -	(770,171) 1,417,797 17,323 -
	1,277,008 2,637,511 (1,845,156) 101,282 -	(752,848 1,417,797
	£31,470,691 £8,506,534 £(8,226,864) £253,488 £(181,398)	£- £31,822,451

The Restricted Funds of the Moravian Church represent the funds of the congregations of the Moravian Church. The Restricted Funds of the Moravian Union are numerous and many are of some antiquity. The other Restricted Funds represent the assets and liabilities of other organisations which are considered to be wholly restricted within the consolidated accounts of the Moravian Church. Transfers from restricted funds relate to adjustments for transactions between Group entities and closed congregations. On closure of a congregation its outstanding reserves can be used for the general purposes of the Moravian Church. During the current year the Comenius Foundation funds were transferred from Fulneck School to a separately administrated restricted fund within the Group.

The numerous Designated Funds, represented by a proportion of the charity’s cash and investments, relate to a variety of specific purposes identified by the trustees. The Defined Benefit Pension Scheme Fund represents the liability of the Moravian Church for discretionary past service benefits payable to retired ministers. The transfer to the fund relates to the reduction in the liability as a result of pensions paid during the year. The transfer from the Investment Property Revaluation Reserve reflects bank loans outstanding secured against The Grange and The Mount investment properties.

MORAVIAN CHURCH

NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 AUGUST 2024

17. MOVEMENTS ON FUNDS (Continued)

GROUP AND PARENT 2023 RESTRICTED Moravian Union Evangelical Ministers emoluments Education Overseas Property Relief of poverty Other Moravian Church (congregations) – Parent only Fulneck School (Restated) Fulneck Choir House Comenius Foundation DESIGNATED Moravian Union Defined Benefit Pension Scheme Ministers emoluments Property Investment Property – Cost Investment Property – Revaluation Other Mission Renewal Moravian Church and Congregations – Parent only GENERAL Moravian Union Moravian Church – Parent only	Opening Balance At 01/09/22 Incoming Resources Resources Expended Investment Gains/(Losses) Actuarial Gains/(Losses) on Defined Pension Benefit £ £ £ £ £ 167,130 5,758 (32,516) (81) - 644,835 15,634 (15,634) (4,887) - 114,472 6,955 (61,677) (32) - 363,844 1,815 (1,815) (167) - 1,844,177 56,508 (58,055) (721) - 3,319 76 (76) (1) - 539,991 80,101 (294,228) (121) -	Transfers Closing Balance At 31/08/23 £ £ 26,756 167,047 1 640,029 57,591 117,310 (1) 363,676 7 1,841,915 (3) 3,314 105,349 431,094
	3,677,768 166,847 (464,001) (5,929) - 1,009,630 1,132,496 (555,368) (1,970) - (380,516) 3,766,720 (3,933,702) - - 91,594 44,503 (42,134) - - 154,000 5,276 - - -	189,700 3,564,385 (504,992) 1,079,992 (104,468) (651,966) - 96,963 (29,050) 130,226
	4,552,476 5,115,842 (4,995,205) (7,899) -	(448,810) 4,216,404
	(3,564,559) - (140,250) - 470,686 44,750 14,805 (215) (20) - 1,962,735 4,636 (1,986) (139) - 1,602,959 - - (5,665) - 24,603,127 - - 551,134 - 2,127 10 (10) - - 90,194 - - - -	287,656 (2,946,467) - 59,320 (2) 1,965,244 (30,087) 1,567,207 54,669 25,208,930 - 2,127 - 90,194
	24,741,332 19,451 (142,461) 545,310 470,686 28,455 11,542 (696,634) - -	312,236 25,946,554 687,362 30,725
	24,769,787 30,993 (839,095) 545,310 470,686	999,598 25,977,279
	460,191 2,872,479 (1,722,192) 216,894 - 1,486 234 (1,296) - -	(550,364) 1,277,008 (424) -
	461,677 2,872,713 (1,723,488) 216,894 -	(550,788) 1,277,008
	£29,783,940 £8,019,548 £(7,557,788) £754,305 £470,686	£- £31,470,691

The Restricted Funds of the Moravian Church represent the funds of the congregations of the Moravian Church. The Restricted Funds of the Moravian Union are numerous and many are of some antiquity. The other Restricted Funds represent the assets and liabilities of other organisations which are considered to be wholly restricted within the consolidated accounts of the Moravian Church. Transfers from restricted funds relate to adjustments for transactions between Group entities and closed congregations. On closure of a congregation its outstanding reserves can be used for the general purposes of the Moravian Church.

The numerous Designated Funds, represented by a proportion of the charity’s cash and investments, relate to a variety of specific purposes identified by the trustees. The Defined Benefit Pension Scheme Fund represents the liability of the Moravian Church for discretionary past service benefits payable to retired ministers. The transfer to the fund relates to the reduction in the liability as a result of pensions paid during the year. The transfer from the Investment Property Revaluation Reserve reflects bank loans outstanding secured against The Grange and The Mount investment properties.

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MORAVIAN CHURCH NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 AUGUST 2024

17. MOVEMENTS ON FUNDS (Continued)

The broad purposes of the main restricted and designated funds of the group are as follows:

Restricted funds,

Evangelical – to further the religious objectives of the Moravian Church;

Ministers emoluments – to support the payment of ministers’ stipends and related costs;

Education – towards educational purposes;

Overseas – to fund overseas provinces missionary work;

Property – congregations funds from sale of functional property restricted for future property use by the congregation; Relief of Poverty – to fund grants and support for the relief of poverty; and

Other – this is made up of numerous small restricted donations to fund specific activities at congregations.

Designated funds,

Defined Benefit Pension Scheme Fund - represents the value of the unfunded deficit on the scheme (Note 18(i)). The transfer to this fund reflects pensions paid during the year;

Ministers’ emoluments – to support the payment of ministers’ stipends and related costs;

Property – represents the net book value of functional properties and other funds designated for property projects at congregations but held within the Moravian Union as the Church’s asset holding body. The transfer in the current year is to fund an overspend;

Investment property cost and investment property revaluation reserves – represent in aggregate the carrying value of investment properties adjusted by transfer for outstanding loans secured on those properties;

Other - this is made up of numerous small designated reserves to fund specific activities at congregations: and Mission renewal - to fund overseas mission work.

18. OBLIGATIONS UNDER OPERATING LEASE AGREEMENTS FOR EQUIPMENT

Group The total of future minimum lease payments under non-cancellable operating leases for each of the following periods are: Less than One Year Between One and Five Years After more than Five Years	2024 £ 5,899 41,912 - £47,811	2023 £ 5,899 46,820 991
		£53,710

No obligations arise in the parent.

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MORAVIAN CHURCH NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 AUGUST 2024

19. PENSIONS

Moravian Union/Moravian Church

The Moravian Church through the Moravian Union operates three pension schemes,

(i) Defined benefit pension scheme

Under this scheme discretionary pensions were paid to retired ministers in service prior to 31 August 2010 in accordance with the rules established by Synod, provided sufficient funds were available. The assets used to pay these pensions are not held separately from other funds of the Charitable Company. As a result of a resolution passed at the 2016 British Provincial Synod, The Moravian Union has recognised these pensions as an obligation and an actuarial valuation of the liability was obtained as at the 31 August 2024.

Employee benefit obligations for the Moravian Church in respect of the Liability

The amounts recognised in the Balance Sheet are as follows:

Fair value of Liability Assets Present value of funded obligations Net (under)/overfunding of Liability Unrecognised assets Net Defined Benefit Liability	31/08/2024 £ - (3,014,504) £(3,014,504) - £(3,014,504)	31/08/2023 £ - (2,946,467)
		£ (2,946,467)
		-
		£ (2,946,467)

The amounts recognised in the Statement of Financial Activities are as follows:

Service cost Cost of benefit changes Curtailment costs / (gains) Settlement costs / (gains) Net Interest on Net Defined Benefit Liability Expense recognised in Profit or Loss	31/08/2024 £ - - - - 151,946 £151,946	31/08/2023 £ - - - - 140,250
		£140,250

Page 34

MORAVIAN CHURCH NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 AUGUST 2024

19. PENSIONS (Continued)

The Moravian Union contributed £265,307 to fund the payment of benefits over the year from 1 September 2023 to 31 August 2024. No contributions were made by members over the period as the Liability is an unfunded arrangement.

No contributions are expected from the Church or from members over the next year from 1 September 2024 to 31 August 2025. The liability is unfunded, and pensions are paid directly by the Moravian Union.

Changes in the present value of the Liability's Defined Benefit Obligation are as follows:

Opening Defined Benefit Obligation Service cost Contributions by members Cost of benefit changes Curtailment costs / (gains) Liabilities extinguished on settlements Benefits paid Interest on obligation Experience losses / (gains) Losses / (gains) from changes in assumptions Closing Defined Benefit Obligation	31/08/2024 £ 2,946,467 - - - - - (265,307) 151,946 73,646 107,752 £3,014,504	31/08/2023 £ 3,564,559 - - - - - (287,656) 140,250 56,678 (527,364)
		£2,946,467

The weighted average duration of the liabilities of the Liability was 9 years as at 31 August 2024.

Employee Benefit Obligations for The Moravian Union in Respect of the Liability

Changes in the fair value of the assets are as follows:

Opening fair value of Liability assets Interest on assets Return on assets (not included in interest) Assets distributed on settlements Contributions by Moravian Union Contributions by members Benefits paid Administration expenses Closing fair value of Liability assets	31/08/2024 £ - - - - 265,307 - (265,307) - £-	31/08/2023 £ - - - - 287,656 - (287,656) -
		£-

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MORAVIAN CHURCH NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 AUGUST 2024

19. PENSIONS (Continued)

Principal actuarial assumptions used for the most recent FRS 102 disclosures:

	31/08/2024	31/08/2023
	% pa	% pa
Discount rate at end of year	5.00	5.40
Discount rate at start of year	5.40	4.10
Rate of increase in deferred pensions (LPI 3%)	2.60	2.60
Rate of increase in deferred pensions (LPI 4%)	3.10	3.10
Rate of increase in pensions in payment (LPI 3%)	2.60	2.60
Rate of increase in pensions in payment (LPI 4%)	3.10	3.10

Mortality Assumptions

The mortality assumptions are based on standard mortality tables which allow for future mortality improvements. The assumptions are that a member aged 65 will live on average until age 87 if they are male and until age 89 if female.

For a member currently aged 50 the assumptions are that if they attain age 65, they will live on average until age 88 if they are male and until age 90 if female.

(ii) Active ministers defined contribution scheme

With effect from 31 December 2015 the discretionary scheme for active ministers was discontinued and replaced by a defined contribution scheme. Benefit entitlements at 31 December 2015 under the previous scheme, which were recognised as obligations by Synod during the preceding year, have been calculated and index linked to retirement, capped at either 3% or 4%, as part of the actuarial valuation.

(iii) Other employees personal pension plans

Other employees hold personal pension plans and contribute at rates chosen by themselves. The Moravian Union contributes 7% of pensionable salaries to each plan. The employer’s contribution in the year was £17,312 (2023: £20,394).

Fulneck School

Up until the 31 August 2023 the school participated in the Teachers' Pension Scheme (England and Wales) ("the TPS") for its teaching staff.

The TPS is an unfunded multi-employer defined benefits pension scheme governed by the Teachers' Pensions Regulations 2010 and, from 1 April 2014, the Teachers' Pension Scheme Regulations 2014 (as amended). Members contribute on a "pay as you go" basis with contributions from members and the employer being credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.

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MORAVIAN CHURCH NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 AUGUST 2024

19. PENSIONS (Continued)

Opt Pensions

Fulneck School participates in a support staff pension scheme that is regulated by Opt Pensions which is an auto enrolment scheme whereby the school contributes 5% of gross earnings. The pension charge for the year includes contributions payable to Opt Pensions of £30,846 (2023: £27,722).

20. RELATED ORGANISATIONS

Two of the Moravian Church’s Trustees are also Trustees of the London Association in Aid of Moravian Missions. The charity is the principal beneficiary of the income of the Mrs E M Bates Trust and sole beneficiary of the London Association in Aid of Moravian Missions, charities established for the benefit of the Moravian Church. Neither organisation is considered a member of The Moravian Church group. The group received the following amounts from related parties during the period: -

Mrs E.M. Bates Trust The London Mission in Aid of Moravian Missions At 31 August 2024, the following balances were outstanding: - Due from Mrs E.M. Bates Trust Due to Mrs E.M. Bates Trust	2024 2023 £ £ £422,846 £365,101 £60,000 £63,000 £76,204 £80,270 £155,573 £207,777

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MORAVIAN CHURCH NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 AUGUST 2024

21. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Income and endowments from: Donations and Legacies Other Trading Activities Investments Charitable activities Other Total income Expenditure On: Raising Funds Fundraising trading: cost of goods sold and other costs Investment management costs Charitable Activities Total expenditure Gains/(Losses) on investment Assets Net income/(expenditure) Actuarial Gains/(Losses) on Defined Benefit Pension Scheme Transfers between reserves Total Funds Brought Forward TOTAL FUNDS CARRIED FORWARD	Unrestricted Funds Restricted Total General Designated Funds 2023 £ £ £ £
	450,619 4,831 731,799 1,187,249 - - 93,243 93,243 921,931 16,717 296,542 1,235,190
	1,372,550 21,548 1,121,584 2,515,682 22,590 9,445 3,994,258 4,026,293 1,477,573 - - 1,477,573
	2,872,713 30,993 5,115,842 8,019,548
	- - (123,007) (123,007) (739,536) (2,211) (68,761) (810,508)
	(739,536) (2,211) (191,768) (933,515) (983,953) (836,884) (4,803,437) (6,624,273)
	(1,723,488) (839,095) (4,995,205) (7,557,788)
	216,894 545,310 (7,899) 754,305
	1,366,119 (262,792) 112,738 1,216,065 - 470,686 - 470,686 (550,788) 999,598 (448,810) -
	815,331 1,207,492 (336,072) 1,686,751 461,677 24,769,787 4,552,476 29,783,940
	£1,277,008 £25,977,279 £4,216,404 £31,470,691

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MORAVIAN CHURCH NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 AUGUST 2024

22. ASSESSMENT OF GOING CONCERN

As with many other entities, the current economic climate has had, and is likely to have in the future, a significant impact on the financial performance of the Group and the individual entities within the Group. The Trustees have reviewed the projected performance and financial position of the Group and the entities within the Group and are of the opinion that both the parent charity and its subsidiary, The Moravian Union, will remain going concerns for the foreseeable future.

In July 2021 Ockbrook School, a former fellow subsidiary of the Moravian Union, was put into administration. The Moravian Union acted as guarantor in respect of the school’s loans from NatWest Bank, which are secured on properties owned by the Moravian Union. In accordance with a payment plan agreement dated 26 July 2021, the Moravian Union agreed to assume responsibility for repayment of the outstanding loans. In a revised payment plan, an annual lump sum payment of £81,000 is made to the Natwest Bank, alongside the ongoing monthly amount of £5,610.00 The loan will be fully repaid in 2026.

The Moravian Union acted as guarantor in respect of Fulneck School’s loans from RBS (see note 15). With the closure of the school on 8 July 2025, The Moravian Union has assumed responsibility for that loan which will become due by 31 August 2026. The Fulneck School estate, from which the School operated, is leased at a peppercorn rent from The Moravian Union and is carried in these financial statements as a functional property at depreciated cost. From the date of closure of the School the estate reverts to The Moravian Union and will be revalued to market value as an investment property.

After considering the Charity’s reserves, held primarily within The Moravian Union, which acts as the asset holding body of the Moravian Church, and future cash flow forecasts for a period well in excess of 12 months from the date of approval of these financial statements, the Trustees are confident that the assets of the Church are sufficient to meet these liabilities as they arise.

Appendix 1

MORAVIAN CHURCH PARENT CHARITY STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2024

Income and endowments from: Donations and Legacies Other Trading Activities Investments Charitable activities Total income Expenditure On: Raising Funds Fundraising trading: cost of goods sold and other costs Investment management costs Charitable Activities Total expenditure Gains/(losses) on investment assets Net income/(expenditure) Transfers NET MOVEMENT IN FUNDS Total Funds Brought Forward TOTAL FUNDS CARRIED FORWARD	Unrestricted Funds Restricted Total Total General Designated Funds 2024 2023 £ £ £ £ £
	- 310,000 708,685 1,018,685 912,774 - - 69,592 69,592 46,290 494 11,677 264,030 276,201 248,308
	494 321,677 1,042,307 1,364,478 1,207,372 - - 225,270 225,270 250,525
	494 321,677 1,267,577 1,589,748 1,457,897
	- - (61,810) (61,810) (22,243) - - - - (54,436)
	- - (61,810) (61,810) (76,679) (17,817) (725,303) (761,154) (1,504,274) (1,308,299)
	(17,817) (725,303) (822,964) (1,566,084) (1,384,978)
	- - 13,305 13,305 (1,970)
	(17,323) (403,626) 457,918 36,969 70,949 17,323 405,251 (422,574) - -
	- 1,625 35,344 36,969 70,949 - 30,725 1,079,795 1,110,520 1,039,571
	£- £32,350 £1,115,139 £1,147,489 £1,110,520

All gains and losses arising in the year have been included in the Statement of Financial Activities and relate to continuing operations.