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2023-06-30-accounts

CHARITY NO: 522852

THE BIRMINGHAM & MIDLAND INSTITUTE

REPORT OF THE GOVERNORS AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

9 Margaret Street, Birmingham, B3 3BS.

THE BIRMINGHAM AND MIDLAND INSTITUTE

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

Page
Report of the Governors 1 to 9
Independent Examiner's Report 10
Statement of Financial Activities 11
Balance Sheet 12
Notes to the Financial Statements 13 to 23

THE BIRMINGHAM AND MIDLAND INSTITUTE

REPORT OF THE GOVERNORS FOR THE YEAR ENDED 30 JUNE 2023

The Governors present their report and financial statements for the year ended 30 June 2023. The Governors have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities in preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

Objectives and aims

Purpose and aims

The objectives and aims of the Birmingham and Midland Institute are "the Diffusion and Advancement of Science, Literature and Art amongst all Classes of Persons resident in Birmingham and the Midland Counties."

Public benefit

Ensuring our work delivers our aims

We review our aims, objectives and activities each year. This review looks at what we achieved and the outcomes of our work in the previous 12 months. The review looks at the success of each key activity and the benefits they have brought to those groups of people we are set up to help. The review also helps us to ensure that our aims, objectives and activities remained focused on our stated purposes.

We have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing our aims and objectives and in planning our future activities. In particular, the governors consider how planned activities will contribute to the aims and objectives they have set.

The focus of our work

The focus of our work continues to be the diffusion and advancement of Science, Literature and Art among all classes of persons resident in Birmingham and the Midland counties.

Grant-making

As a general policy, the charity does not make grants and it never makes grants to individuals. However, upon occasion or, if it considers that the making of a grant to an organisation will assist it in fulfilling its own charitable objectives, then such a grant may be made.

ACHIEVEMENT AND PERFORMANCE

Charitable activities

Our policy of increasing the range and number our activities, to appeal to as many citizens of the Midlands as possible is ongoing. We are endeavouring to increase membership, which at the year end stood at 239. This would appear quite modest , but our records show that 17,500 visitors used the Institute during the year , which is quite a considerable amount.

A lot of the work of the Board of Governors is delegated to its five sub-committees, which are:

  1. Audience Engagement Committee - to diversify and expand the breadth and depth of audiences that engage with the Institute, and whilst there is some overlap with the Marketing & Media Committee, it was felt appropriate to separate the activity for the time being;

  2. Governance Committee – to examine good practice and create policies for the governance of the Institute and to work towards replacing The Birmingham & Midland Act (1854) with a more relevant Articles of Association. It also reviews policies annually, to keep them relevant;

3. Library Committee – for the promotion of reading for enjoyment and maintaining the profile of the library as a key benefit of membership of the Institute;

  1. Marketing & Media Committee – to better promote the work of the Institute to a wider audience;

  2. Roadmap Steering Committee – to map out the future of the Institute and to look at ways of energising and reinvigorating the Institute.

1

THE BIRMINGHAM AND MIDLAND INSTITUTE

REPORT OF THE GOVERNORS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023

We hold a number of events across the year and these are listed below:

Annual Events

The President’s Address

The President’s Address is an important date in our calendar, where the present President of the Institute gives his lecture. It is a joyful occasion, and is the time when the Presidents’ Medal and the Fellowship of the Institute are awarded.

The AGM

Our AGM is now back in person, and is a meeting following the directives from our governing document, the 1854 Act of Parliament, ensuring that the members are informed and can vote on the position of the Institute. When all the formal sections are over, there is a talk or a small concert for members and non-members to enjoy.

The 2023 AGM was well attended and a number of requests from the floor mean that the 2024 AGM will return to a longer occasion with summaries of the Annual Report requested as presentations from the Honorary Secretary and Honorary Treasurer. Afterwards our Musician-in-Residence, Jeffrey Skidmore OBE, gave a talk on early English music.

Heritage Open Day

Similar to many organisations and establishments in Birmingham, the Institute takes part in Heritage Open Day. Offering various activities to everyone, a central theme is followed across the city. This is a wonderful time to introduce friends to the Institute, show what is happening here, and for people to see inside parts of the building to which they do not usually have access.

Regular activities

Monday Lecture

The Monday Lecture series continues the tradition of lectures given at the Institute since 1854. The lectures are every fortnight, on a Monday from 1-2pm. The topics and speakers vary greatly. Professors and experts in their field, enthusiastic amateurs, and groups who use the Institute for their events have all given lectures. They may share lectures they have given elsewhere, information on the group themselves, or uncompleted works which will lead to publication.

Study Days

The Study Days have been held at the Institute for many years. Led by Dr. Pamela Mason FBMI, with her late husband Keith Parsons FBMI before his untimely death, they are a varied and detailed day concentrating on an academic topic. With a dedicated and ever widening audience, they are a cornerstone of our activities. The Victorian Society, a corporate member of the Institute, also holds Day Schools on particular subjects relating to architecture in the Victorian and Edwardian periods.

Bookish Club

The Bookish Club started in 2019, and is held monthly, online. A topic is discussed rather than a set text, and ensure that genres and ideas not usually considered in other book clubs are included. Non-fiction as well as fiction, books liked as well as books hated, and recommended reading abounds. It is well attended and everyone participates enthusiastically, while listening to each other.

Ruskin Club

The Ruskin Club has been established as a creative club. The group who arrange the activities bring their own expertise and skills and teach the attendees. Ruskin is a good example to have as a figurehead as he was a scientist, artist, critic, architecture lover, walker and teacher, so that gives us plenty of scope. Ruskin Club meets monthly, always in person. There have been classes, walks and visits.

Ladywood Community Project

The Board of Governors agreed to partner with The Ladywood Community Project and at least twice a year, there is a collection for food and essentials for the Ladywood Community Project. They support individuals and families in crisis in the ward where the Institute is situated, and is a worthy way for us to be able to support our neighbours.

2

THE BIRMINGHAM AND MIDLAND INSTITUTE

REPORT OF THE GOVERNORS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023

Regular activities (continued)

Philosophy Courses

Led by Darren Harper, we have presented a number of courses, classes and a Monday Lecture on various aspects of Philosophy, from traditional and comparative studies to contemporary attitudes to the subject.

Occasional Events

Concerts

Concerts are held either by visiting and touring groups, or by organisations who use the building as their place of learning. Members are always invited to attend such events.

Art Exhibition Launches

If an exhibiting artist wishes, we host a launch event when their show begins. Members are always invited to these. Our Members’ Summer Exhibition is a good opportunity to meet people who attend different events, and who would not usually meet one other.

Debates

The Institute has started hosting occasional debates. People from other organisations and groups are invited to present and defend their argument on a topical subject.

Business Breakfasts

People from the business community are invited to join us for breakfast, a short presentation, and a useful opportunity to network.

Members’ Mince Pie Morning

There is always a mince pie morning in December so that members can have a chat and meet up with one other.

In addition to these regular events, totalling over 70, there are three events worthy of specific listing, which are:

Institute Laureates

Laureates are appointed annually, and we will look to change them regularly, if not annually. In September 2022 the Board appointed five Historians-in-Residence who are based at Aston University. The current laureates are:

 Historians-in-Residence Professor Stefan Manz, Dr Volker Prott, Dr Ilaria Scaglia, Dr Brian Sudlow, and Dr Joseph Yannielli

3

THE BIRMINGHAM AND MIDLAND INSTITUTE

REPORT OF THE GOVERNORS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023

FINANCIAL REVIEW

Financial position

The Statement of Financial Activities for the year ended 30 June 2023 shows incoming resources of £280,928 (2022 - £219,166) and resources expended of £224,818 (2022 - £172,107). This resulted in a surplus of £56,110 (2022 - £47,059).

Reserves policy

We have a Reserves Policy (F02) which was formulated by the Governance Committee in association with our Honorary Treasurer and Finance Officer. The Policy is to build the charity's unrestricted funds to a level which will enable the charity to fulfil its charitable obligations for the foreseeable future including the maintenance and upkeep of its Grade II* listed premises.

Going concern

Budgets, forecasts and cashflows have been prepared for the 2023-24 year and for the five years beyond, predicting further satisfactory results. These are monitored closely, and as at the date of signing, the actual results are in line with budget.

In light of the current uncertain economic climate the Governors believe that the Institute’s financial resources and contingency planning are sufficient to ensure the ability of the Institute to continue as a going concern for the foreseeable future, being at least twelve months from the date of approval of these financial statements.

While it should be mentioned at this point that the Institute has sufficient financial assets, these are largely tied up in property and are not easy to realise as cash.

FUTURE PLANS

The Institute will continue to develop its programme in order to fulfil its statutory obligations as described in the Birmingham & Midland Act (1854) although we are looking to repeal the Act and replace it with a more up-to-date Articles of Association. Work has been ongoing in this matter with our MP since January 2020, but unfortunately remains outstanding. However, we are hoping that the Charities Act 2022 will enable the changing of governing documents to be effected more easily than has been the case hitherto.

The Report from Pennycuik Collins, commissioned by the Board in 2021, under Section 117 of the Charities Act advised the Board that the sale of 93-95 Cornwall Street was in its best interests, as it was little utilised, with the proceeds to be used to improve the facilities of 9 Margaret Street and the majority used as a contribution towards a National Heritage Lottery Fund bid . The building was sold for £851,000, and we are to exchange contracts in July 2023.

Once the sale of 93-95 Cornwall Street is complete, we will carry out the Viability Study that was planned for the early part of 2022. The Roadmap Steering Committee published a document called “The Future of the Institute” which laid down the aspirations for the way the Institute will be transformed into something fit for the next fifty years and which the Council adopted at its March 2021 meeting. This was allied with a Business Plan and will form the basis of a Viability Study to be put out to a professional assessment team, who will look to assess the transformation project. This stage in the transformation of the Institute is a precursor to a National Heritage Lottery Fund grant application. The infographic on page 5 has been published in each Annual Report since 2021, but it has been decided to retain it until this process is complete, so that the activity can be understood.

The site survey by Historic England in 2022 resulted in the Institute being added to the Heritage at Risk Register in midJune 2023. The building is on the statutory list at Grade II* which means that we are likely to qualify for grants from Historic England and this will also aid our NHLF bid in due course.

4

THE BIRMINGHAM AND MIDLAND INSTITUTE

REPORT OF THE GOVERNORS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023

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Viability Study Process
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STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The Birmingham and Midland Institute is a charity registered with the Charity Commission (registered number 522852) and is incorporated by The Birmingham and Midland Act (1854) which defines its constitution, although in the spring of 2020 members voted, in an online poll (due to COVID-19 restrictions), to support the Board of Governors’ decision to seek to repeal the 1854 Act and replace it with an up-to-date Articles of Association.

Organisational structure

The governing body of the Birmingham and Midland Institute consists of official governors, city council governors and elective governors.

Of the official governors, four are elected by the membership, two are ex-officio office holders and one is appointed by the University of Birmingham to be its representative.

Of the five city governors, one, the Lord Mayor for the time being, is an ex-officio governor, with the other four being appointed by Birmingham City Council.

Of the elective governors, all thirteen are elected by the membership. Elections to the governing body are held at each annual general meeting.

The Board of Governors meets monthly but there are also sub-committees which vary from time to time. All subcommittees report and make recommendations to the full Board which is the Institute's policy making body. The Governance sub-committee has enhanced and extended the Policies which give daily guidance for good governance of the Institute, and these may be viewed on the Institute’s website.

For this year, 2022-23, members of the Board of Governors have gifted 1,770.5 hours to the Institute, which includes work on sub-committees and other research and administrative activities as Governors. This is a phenomenal amount of time that they have committed to the Institute and underlines their commitment to our organisation. In addition, using Birmingham City Council’s Social Value Charter, BCC values this sort of contribution at £101.86 per hour, so that the total economic value of these gifted hours amounts to £180,343.13.

We no longer seek to replace the President every year, but rather we welcome incumbents to remain for as long as they wish, so that they can make a fuller contribution than an annual term of office permits.

The day-to-day running of the Institute is delegated to the Operations Team, headed by the Operations Manager, a fulltime position, with reporting responsibility to the Board. The position is supported by the Operations Assistant, which is a part-time role.

5

THE BIRMINGHAM AND MIDLAND INSTITUTE

REPORT OF THE GOVERNORS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023

The operations staff are assisted by a team of volunteers, without whom we would struggle to operate and who gifted 1,467 hours to the Institute during the year 2022-23. If we create a value for these hours, at the rate of the National Living wage of £10.42 per hour, this equates to £15,286.14 gifted to the Institute. There are also two part-time paid cleaners.

The Institute is a member of the Living Wage Foundation and we have implemented the Real Living Wage for our employees.

Membership

Membership of the Institute continues to expand in all categories, and at the end of the year stood at 239. Our Junior Membership remains low, but our membership of those in full-time work continues to grow.

Safeguarding

The Institute has a Safeguarding Policy and we now perform DBS Checks on all Governors, Staff and Volunteers which is considered good practice by the Charity Commission.

Equity, Diversity and Inclusion (EDI)

The Institute has an Equity, Diversity and Inclusion Policy and under this Policy we periodically undertake to survey the Board, staff and volunteers to see how it is working. Such a survey was carried out in early 2023 and below are extracts from the data we received, on gender, age, ethnicity and sexuality. All of the Board, staff and volunteers were surveyed, which currently totals 40, but only 22 responded to this voluntary and anonymous survey. If any member would like a copy of the full survey results, they will be supplied if they write to the Honorary Secretary at secretary@bmi.org.uk

EDI Survey: Gender

The gender balance between the people who were sent the survey was Male - 25 (62.5%), Female - 15 (37.5%). So, more men responded to the survey.

The question asked was “ What is your gender?”

100% of respondents said that their gender was the same as when they were born.

EDI Survey: Age

The question asked was “ What age group do you fall into?”

Age No. % Age No. %
16-24 6 27% 45-49 1 5%
25-29 1 4% 50-54 1 5%
30-34 0 0% 55-59 2 9%
35-39 2 9% 60-64 3 14%
40-44 1 4% 65+ 5 23%

6

THE BIRMINGHAM AND MIDLAND INSTITUTE

REPORT OF THE GOVERNORS (CONTINUED)

FOR THE YEAR ENDED 30 JUNE 2023

EDI Survey: Ethnicity

The question asked was “ What ethnicity are you?”

EDI Survey: Sexuality

The question asked was “ What is your sexual orientation?”

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Prefer not to say 1
Asexual 1
Gay 4
Heterosexual 16
0 5 10 15 20
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7

THE BIRMINGHAM AND MIDLAND INSTITUTE

REFERENCE AND ADMINISTRATIVE DETAILS

Registered charity number

522852

Principal address

9 Margaret Street Birmingham B3 3BS

Governors

Official Governors

Professor Sir David Cannadine President Dr S. Trowbridge Vice President Mrs. S. Ansari Vice President Mr. J. L. Fletcher Honorary Treasurer Dr. K. Ricks Chief Master, King Edward’s School Professor C. Marsh Principal, The Queen’s Foundation Mr. M. Eccleston University of Birmingham Representative

City Governors

The Lord Mayor of Birmingham Councillor Adam Higgs Appointed 9[th] January 2023 Councillor J. Hunt Councillor M. Locke Councillor R. Pocock

Elective Governors

Mr. M. I. Blake Miss I. Călin Elected 15[th] April 2023 Mr. A. Dowe Appointed 9[th] January 2023 Miss. J. Francis Mr. S. J. Hartland Mr. A. V. Pritchard-Jones Miss A. Round Dr. J. A. Scott Retired 15[th] April 2023 Mrs P. Smith Appointed 9[th] January 2023; Retired 17[th] April 2023 Mr. M. A. Vaughan

8

THE BIRMINGHAM AND MIDLAND INSTITUTE

REFERENCE AND ADMINISTRATIVE DETAILS (CONTINUED)

Independent Examiner

Ormerod Rutter, The Oakley, Kidderminster Road, Droitwich, Worcestershire, WR9 9AY.

Solicitors

Tyndallwoods Solicitors, 29 Woodbourne Road, Edgbaston, Birmingham, B17 8BY.

Bankers

Bank of Scotland, 33 Old Broad Street, London, BX2 1LB.

Approved by order of the Board of Governors on 4[th] December 2023 and signed on its behalf by:

................................................... Honorary Secretary

9

THE BIRMINGHAM AND MIDLAND INSTITUTE

INDEPENDENT EXAMINER'S REPORT

TO THE GOVERNORS OF THE BIRMINGHAM AND MIDLAND INSTITUTE

I report to the Governors on my examination of the financial statements of The Birmingham and Midland Institute (the charity) for the year ended 30 June 2023.

Responsibilities and basis of report

As the Governors of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).

I report in respect of my examination of the charity’s financial statements carried out under section 145 of the 2011 Act. In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of ICAEW, which is one of the listed bodies.

Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.

I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

Ormerod Rutter Limited The Oakley Kidderminster Road Droitwich Worcestershire WR9 9AY

Dated: .........................

THE BIRMINGHAM AND MIDLAND INSTITUTE

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 30 JUNE 2023

Unrestricted
Restricted
funds
funds
2023
2023
Notes
£
£
Income from:
Donations and legacies
3
1,357
-
Charitable activities
4
277,020
500
Investments
5
58
1,993
Total income
278,435
2,493
Expenditure on:
Charitable activities
6
29,608
-
Support costs
7
153,094
500
Other
11
41,616
-
Total expenditure
224,318
500
Net income and movement in
funds
54,117
1,993
Reconciliation of funds:
Fund balances at 1 July 2022
1,327,541
16,317
Fund balances at 30 June
2023
1,381,658
18,310		 Total
Unrestricted
Restricted
funds
funds
2023
2022
2022
£
£
£
1,357
894
-
277,520
215,842
666
2,051
-
1,764
280,928
216,736
2,430
29,608
31,071
-
153,594
124,741
500
41,616
15,795
-
224,818
171,607
500
56,110
45,129
1,930
1,343,858
1,282,412
14,387
1,399,968
1,327,541
16,317		 Total
2022
£
894
216,508
1,764
219,166
31,071
125,241
15,795
172,107
47,059
1,296,799
1,343,858

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

THE BIRMINGHAM AND MIDLAND INSTITUTE

BALANCE SHEET

AS AT 30 JUNE 2023

Notes
Fixed assets
Intangible assets
13
Tangible assets
14
Current assets
Debtors
15
Cash at bank and in hand
Creditors: amounts falling due within
one year
16
Net current liabilities
Total assets less current liabilities
Creditors: amounts falling due after
more than one year
17
Net assets
The funds of the charity
Restricted income funds
22
Unrestricted funds		 2023
£
£
7,450
1,474,216
1,481,666
33,765
19,933
53,698
73,834
(20,136)
1,461,530
(61,562)
1,399,968
18,310
1,381,658
1,399,968		 2022
£
£
7,450
1,482,353
1,489,803
33,415
22,273
55,688
129,662
(73,974)
1,415,829
(71,971)
1,343,858
16,317
1,327,541
1,343,858

The financial statements were approved by the Governors on 4th December.....2023

.............................. Honorary Treasurer - Mr J Fletcher

THE BIRMINGHAM AND MIDLAND INSTITUTE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

1 Accounting policies

Charity information

The Birmingham and Midland Institute is a charity registered with the Charity Commissions (registration number 522852).

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's [governing document], the Charities Act 2011, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.

The charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.

The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the Governors has a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Governors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the Governors in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.

1.4 Income

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

THE BIRMINGHAM AND MIDLAND INSTITUTE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023

1 Accounting policies

(Continued)

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

1.6 Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Armorial Bearings N/A

1.7 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings N/A Fixtures and fittings 15% on reducing balance Computers 25% on cost Gifted Assets N/A Library books N/A

1.8 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

THE BIRMINGHAM AND MIDLAND INSTITUTE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023

1 Accounting policies

(Continued)

1.9 Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to net income/(expenditure) for the year so as to produce a constant periodic rate of interest on the remaining balance of the liability.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the Governors is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3 Donations and legacies

Donations and gifts
Income from charitable activities
Restricted
funds
2023
2023
£
£
Rents receivable
175,365
-
Management charges
-
500
Commissions received
8,624
-
Membership
subscriptions
14,833
-
Book sales, recorded
music and sundry income
777
-
Other income
77,421
-
277,020
500		 Total
2023
£
175,365
500
8,624
14,833
777
77,421
277,520		 2023
£
1,357
Restricted
funds
2022
2022
£
£
184,550
-
-
500
3,449
-
17,501
166
10,342
-
-
-
215,842
666		 2022
£
894
Total
2022
£
184,550
500
3,449
17,667
10,342
-
216,508

4 Income from charitable activities

THE BIRMINGHAM AND MIDLAND INSTITUTE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023

5 Investments

Unrestricted **Restricted ** Unrestricted Restricted
2023 2023 2023 2022
£ £ £ £
Interest receivable 58 1,993 - 1,764

There has been £58 income from bank interest received from unrestricted funds (2022 - £0) and £1,993 income from restricted funds during the year ended 30 June 2023 (2022 - £1,764). This restricted income had arose from the Grew Bequest, bequested specifically for the furtherance of the study of music and poetry at the Birmingham and Midland Institute, and has been recognised in the financial statements within the Grew Bequest restricted fund.

6 Charitable expenditure

Staff costs
General expenses		 2023
£
11,425
18,183
29,608		 2022
£
16,381
14,690
31,071

THE BIRMINGHAM AND MIDLAND INSTITUTE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 JUNE 2023

7 Support costs

Staff costs
Sundry expenses
Rates and utilities
Cleaning
Repairs and maintenance
Insurance
Legal and professional
Printing and stationery
Website and IT
Telephone
Management charge
Depreciation
Finance charges
Interest payable and similar charges
Bank charges
Fees and subscriptions
Share of governance costs (see note 8)
Analysis by fund
Unrestricted funds
Restricted funds - general
8
Governance costs
Independent examiner fees		 2023
£
44,371
1,793
27,341
7,427
5,458
13,824
14,184
3,418
537
8,440
500
10,801
-
11,393
504
2,103
152,094
1,500
153,594
153,094
500
153,594
2023
£
1,500		 2022
£
35,559
-
22,149
8,206
4,379
13,260
10,969
4,429
641
6,196
500
13,505
187
1,108
3
-
121,091
4,150
125,241
124,741
500
125,241
2022
£
4,150

9 Governors

The governors expenses paid for the year ended 30 June 2023 totalled £890 (2022:£804).

THE BIRMINGHAM AND MIDLAND INSTITUTE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023

10 Employees

The average monthly number of employees during the year was:

2023 2022
Number Number
Administration 4 4
Employment costs 2023 2022
£ £
Wages and salaries 55,796 51,940

There were no employees whose annual remuneration was more than £60,000.

11 Other expenditure

Other expenditure 2023
£
41,616
41,616		 2022
£
15,795
15,795

Included in other expenditure in 2023 are costs totalling £41,616 associated with the proposed sale of 93-95 Cornwall Street (2022:£15,621).

12 Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

THE BIRMINGHAM AND MIDLAND INSTITUTE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 JUNE 2023

13 Intangible fixed assets

Cost
At 1 July 2022 and 30 June 2023
Amortisation and impairment
At 1 July 2022 and 30 June 2023
Carrying amount
At 30 June 2023
At 30 June 2022		 Armorial
Bearings
£
7,450
-
7,450
7,450

Armorial Bearings

The valuation of Armorial Bearings is based on the opinion of the governors valuation.

14 Tangible fixed assets

Freehold land
and buildings
Library Books
Fixtures and
fittings
£
£
£
Cost
At 1 July 2022
681,045
680,275
219,748
Additions
-
-
2,664
Disposals
-
-
(3,204)
At 30 June 2023
681,045
680,275
219,208
Depreciation and
impairment
At 1 July 2022
-
-
148,159
Depreciation charged in the
year
-
-
10,657
Eliminated in respect of
disposals
-
-
(3,204)
At 30 June 2023
-
-
155,612
Carrying amount
At 30 June 2023
681,045
680,275
63,596
At 30 June 2022
681,045
680,275
71,589		 Computers Gifted Assets
£
£
3,539
49,300
-
-
-
-
3,539
49,300
3,395
-
144
-
-
-
3,539
-
-
49,300
144
49,300		 Total
£
1,633,907
2,664
(3,204)
1,633,367
151,554
10,801
(3,204)
159,151
1,474,216
1,482,353

THE BIRMINGHAM AND MIDLAND INSTITUTE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023

14 Tangible fixed assets

(Continued)

Freehold Property

The governance are of the view that the current value of the Institute's freehold property is greater than the net book value and therefore continue to not to depreciate the property.

Library Books

The Institute owns a library containing approximately 107,000 volumes. The governors have included a valuation of these books as at the balance sheet date based on an in-house valuation. In the opinion of the governors this is the best estimate available of the current valuation of the Institute's library books. Additions since valuations have been included at cost.

Gifted Assets

Gifted assets are comprised of material items donated to the Institute stated at the governors valuation.

Assets on hire purchase

Included in fittings and equipment are assets held under hire purchase agreements with a net book value of £39,743 (2022 - £46,757)

15 Debtors

Debtors
Amounts falling due within one year:
Trade debtors
Other debtors		 2023
£
20,138
13,627
33,765		 2022
£
18,149
15,266
33,415

16 Creditors: amounts falling due within one year

Bank loans
Obligations under finance leases
Other taxation and social security
Trade creditors
Other creditors		 2023
£
10,008
10,773
569
8,414
44,070
73,834		 2022
£
10,000
13,189
5,329
18,997
82,147
129,662

17 Creditors: amounts falling due after more than one year

Bank loans
Obligations under finance leases
Other creditors		 2023
£
20,161
16,160
25,241
61,562		 2022
£
29,167
17,563
25,241
71,971

THE BIRMINGHAM AND MIDLAND INSTITUTE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023

18 Loans and overdrafts

Loans and overdrafts
Bank loans
Payable within one year
Payable after one year		 2023
£
30,169
10,008
20,161		 2022
£
39,167
10,000
29,167

19 Finance lease obligations

Future minimum lease payments due under finance leases:

Future minimum lease payments due under finance leases:
Within one year
Within two and five years		 2023
£
10,773
16,160
26,933		 2022
£
13,189
17,563
30,752

Finance lease obligations are secured against the assets to which they relate.

20 Analysis of net assets between funds

Analysis of net assets between funds
Unrestricted
funds
Restricted
funds
2023
2023
£
£
Fund balances at 30
June 2023 are
represented by:
Intangible fixed assets
7,450
-
Tangible assets
1,474,216
-
Current assets/(liabilities)
(36,453)
18,810
Long term liabilities
(61,562)
-
1,383,651
18,810		 Total
Unrestricted
funds
2023
2022
£
£
7,450
7,450
1,474,216
1,482,353
(20,136)
(90,291)
(61,562)
(71,971)
1,399,968
1,327,541		 Restricted
funds
2022
£
-
-
16,317
-
16,317		 Total
2022
£
7,450
1,482,353
(73,974
(71,971
1,343,858

THE BIRMINGHAM AND MIDLAND INSTITUTE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023

21 Unrestricted funds

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

At 1
General funds
Previous year:
At 1
General funds		 July 2022
Incoming
resources
Resources
expended
At 30 June
2023
£
£
£
£
1,327,541
278,435
(224,318)
1,381,658
July 2021
Incoming
resources
Resources
expended
At 30 June
2022
£
£
£
£
1,282,412
216,736
(171,607)
1,327,541

22 Restricted funds

The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.

At 1
Alfred and Mary Wilkins Memorial Poetry
Grew Bequest
Bookkeeping Appeal Fund
Library Fund
Library Carpet Tiles Fund
Previous year:
At 1
Alfred and Mary Wilkins Memorial Poetry Fund
Grew Bequest
Bookkeeping Appeal Fund
Library Fund
Library Carpet Tiles Fund		 July 2022
Incoming
resources
Resources
expended
At 30 June
2023
£
£
£
£
1,764
-
-
1,764
12,637
2,493
(500)
14,630
228
-
-
228
1,668
-
-
1,668
20
-
-
20
16,317
2,493
(500)
18,310
July 2021
Incoming
resources
Resources
expended
At 30 June
2022
£
£
£
£
1,764
-
-
1,764
10,707
2,430
(500)
12,637
228
-
-
228
1,668
-
-
1,668
20
-
-
20
14,387
2,430
(500)
16,317

THE BIRMINGHAM AND MIDLAND INSTITUTE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023

22 Restricted funds

(Continued)

Purpose of unrestricted funds

General Fund

This fund represents the free funds of the Institute that are not designated for particular purposes which the governors are free to use in accordance with the Institute’s objects.

Purpose of restricted funds

Alfred and Mary Wilkins Memorial Poetry fund

This fund’s purpose is to provide income for the Institute to enable the Institute to organise competitions to seek new talent in the world of poetry.

Grew Bequest fund.

This fund’s purpose is to provide income for the Institute to enable the Institute to promote the furtherance and study of music and poetry at the Institute.

Bookbinding appeal fund

This fund’s purpose is to provide income for the Institute to enable the Institute to rebind its valuable collection of books in the Institute’s library.

Library fund

This fund is reserved for the Institute’s library, contributing to maintenance and the purchase of materials and equipment.

Library Carpet Tile fund

This was set up to direct funds to the maintenance of the library, focusing on the carpet tiles which are in need of repair / replacement.

23 Retirement benefit schemes

The trust operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the trust in an independently administered fund.

The charge to profit or loss in respect of defined contribution schemes was £890 (2022 - £751).

24 Related party transactions

There were no disclosable related party transactions during the year (2022 - nil).

25 Support of Cultural and Educational Activities

During the year ended 30 June 2023 the Birmingham and Midland Institute discounted fees in respect of rental and hiring changes made to various cultural or charitable activities. This amount represents, in effect, the Institute's contribution or donation towards these activities.

26 Ultimate Controlling Party

The Institute is controlled by the governors as disclosed in the report of the council as governors.