REGISTERED CHARITY NUMBER: 522852
THE BIRMINGHAM & MIDLAND INSTITUTE
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REPORT OF THE GOVERNORS AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
9 Margaret Street, Birmingham, B3 3BS.
THE BIRMINGHAM AND MIDLAND INSTITUTE
CONTENTS OF THE ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2025
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Page
Report of the Governors 1 to 8
Independent Examiner's Report 9
Statement of Financial Activities 10
Balance Sheet 11
Notes to the Financial Statements 12 to 21
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THE BIRMINGHAM AND MIDLAND INSTITUTE
REPORT OF THE GOVERNORS
FOR THE YEAR ENDED 30 JUNE 2025
The Governors present their report and financial statements for the year ended 30 June 2025. 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.
ACHIEVEMENTS 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 217 (-16). This would appear quite modest, but our records show that we have welcomed around 18,000 visitors to use the Institute during the year, which is quite a considerable amount, down by 1,000 on the previous year, but we were closed for a month for the separation works.
A lot of the work of the Board of Governors is delegated to three sub-committees, which are:
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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;
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Library Committee — to preserve, safeguard and curate the precious books and archive of The Birmingham Library, now the Birmingham and Midland Institute Library, and The Birmingham and Midland Institute; to reach diverse readers; to increase usage of the Library by members of the Institute and by independent researchers; and to promote the Library.
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Roadmap Steering Committee — to map out the future of the Institute and to look at ways of energising and reinvigorating the Institute.
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THE BIRMINGHAM AND MIDLAND INSTITUTE
REPORT OF THE GOVERNORS FOR THE YEAR ENDED 30 JUNE 2025
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Unfortunately, due to lack of volunteers, the Audience Engagement Committee and Marketing & Media Committee are both currently mothballed. This is very unfortunate, as it is a very necessary activity, but we must have more members to get involved in these key areas.
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 follows 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 AGM in November 2024 was well attended and returned to a longer format, following requests from members. There were summaries of the Annual Report presentations by the Honorary Secretary and Honorary Treasurer. Afterwards, there was a talk on the history of the Lawn Tennis Association.
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, 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 topics have included a more varied subjects, and some more modern authors, but including Shakespeare.
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.
The Pre-Raphaelite Society hold meetings and talks throughout the year.
Bookish Club
The Bookish Club started in 2019, and is held monthly, online. A topic is discussed rather than a set text,and ensures 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 continues 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.
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THE BIRMINGHAM AND MIDLAND INSTITUTE
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REPORT OF THE GOVERNORS
FOR THE YEAR ENDED 30 JUNE 2025
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. The Summer Concert, organised by Sarah Wright-Owens, was well attended, and raised over £400 for the Library.
Art Exhibitions We actively encourage local artists to make use of the Institute, and create a rolling exhibition programme for this. Should an exhibiting artist wish, 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.
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.
Institute Laureates The Institute is committed to enriching the cultural life of the region. The appointment, annually, of Institute Laureates, supports this endeavour, by providing access to new work for our members and visitors, by supporting artists, writers, poets, scientists and historians in the region, and by offering workshops and lectures by the laureates.
The current laureates are:
| e | Poet-in-Residence | Naush Sabah | |
|---|---|---|---|
| e | _Historian-in-Residence | Andrew Reekes | |
| e | Scientist-in-Residence | DrJames Dawson | |
| e | Musician-in-Residence | Jeffrey Skidmore OBE | |
| e | = | Artist-in-Residence | PeterTinkler |
| e | Philospher-in-Residence | Brother Piran-Maria | |
| e | Writer-in-Residence | AnnaLawrence |
Building Sale and Separation
In 2022, an agreement was reached to dispose of the 93-95 Cornwall Street parts of the building. The aim was to raise a significant sum to offer as a contribution as part of the future bid for Heritage Lottery Funding to transform the building. The rooms in the Cornwall Street section were little-used, meaning that any financial downside of losing room hire income was negligible.
Following lengthy negotiations, the conclusion was that the disposal should be a lease rather than a sale, as the fire investigation and architect survey found that for the capacity of both buildings, both must be able to use the other’s fire escapes in the event of a fire. A 999-year lease was agreed, with right of access given to the Institute to ensure that the fire escapes remain unblocked from the tenants’ side of the building.
Completion finally ensued in July 2024, and work started shortly afterwards to separate the leased parts of the building. The building was closed completely for the month of August, with some work having started at the end of July, and some work continuing into September. The separation meant that the Institute lost all toilet facilities, and both doors into the Library. Access to the new Library Linkway was moved to opposite the Kingsley Norris Room on the ground floor, but the slope became so steep that steps had to be installed rather than a slope. This is unfortunate as it means that the Library continues to be inaccessible to wheelchair users; future plans include access to all floors of the building for all people. Work continued in the Library into September, and the Library remained partially closed for the rest of the year for cleaning and reshelving of books.
The number of new toilets in the Institute is determined by the capacity of the building. The decision was made to have a suite of unisex toilets in the basement to maximise the number of toilets available to all, with an accessible toilet in the basement suite, and an accessible toilet on the first floor. We have received only good feedback on the toilet suite, with Pride UK stating that they are “the best gender free toilets” they have seen.
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THE BIRMINGHAM AND MIDLAND INSTITUTE
REPORT OF THE GOVERNORS FOR THE YEAR ENDED 30 JUNE 2025
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FINANCIAL REVIEW
Financial position The Statement of Financial Activities for the year ended 30 June 2025 shows incoming resources of £209,235 (2024 - £262,280) and resources expended of £249,751 (2024 - £217,633). This resulted in a deficit of £40,516 (2024 - surplus of £44,647). It should be noted that this was an unusual year financially, due to the sale of part of the property, as mentioned above. The gain on the sale resulted in an overall surplus of £182,985 (2024 - £44,647).
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 2025-26 year. It is difficult to forecast beyond, as the timing and progress of the planned Heritage Lottery Fund bid is uncertain. However, the underlying performance of the Institute will be adequate in the meantime to continue usual operations.
In light of the continuing 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 planning to replace the Act with a document that reflects 21% Century reality. A lot of work has been done in this area and following advice from the Charity Commission, the way ahead would be to leave the Act as a “shell document” and vote in a new set of bye-Laws which is provided for under the Act. The membership has already voted to adopt the 2020 Articles of Association, so we will use these to form the basis of a new set of bye-laws and these will be reviewed by a charity legal professional.
We will seek to appoint an Institute Director, to drive forward the transformation process. We plan to obtain some funding for this from an initial bid to the NLHF, as well as to test the model of the Institute that the governors have agreed on. Users of the Institute can rest assured that any changes will only be for the better.
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 NLHF bid in due course. It has already given us access to funds to achieve a number of small projects.
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.
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THE BIRMINGHAM AND MIDLAND INSTITUTE
REPORT OF THE GOVERNORS FOR THE YEAR ENDED 30 JUNE 2025
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.
In 2025 members of the Board of Governors have gifted 1,200 hours to the Institute, which includes work on subcommittees 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 £114.73 per hour, so that the total economic value of these gifted hours amounts to £137,733.
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.
The operations staff are assisted by a team of volunteers, without whom we would struggle to operate and who gifted 1,668 hours to the Institute during 2025. If we create a value for these hours, at the standard “community volunteering” rate of £19.86, this equates to £33,127 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 at the end of the year stood at 217 (2024: 233). Our Junior Membership remains low, but our membership of those in full-time work continues to grow. Corporate Associated Members amount to 3,465.
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.
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THE BIRMINGHAM AND MIDLAND INSTITUTE
REPORT OF THE GOVERNORS
FOR THE YEAR ENDED 30 JUNE 2025
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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 we will repeat the exercise in 2026.
Statement of Governors’ Responsibilities
The Governors are responsible for preparing the Governors’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England and Wales requires the Governors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that year.
In preparing these financial statements, the Governors are required to:
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e select suitable accounting policies and then apply them consistently; e observe the methods and principles in the Charities SORP; e make judgements and estimates that are reasonable and prudent;
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e state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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e prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The Governors are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable it to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by order of the board of governors on 6 October 2025 and signed on its behalf by:
Dr. S. Trowbridge Vice President
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THE BIRMINGHAM AND MIDLAND INSTITUTE
REPORT OF THE GOVERNORS
FOR THE YEAR ENDED 30 JUNE 2025
REFERENCE AND ADMINISTRATIVE DETAILS
Registered charity number 522852
Principal address
9 Margaret Street Birmingham B3 3BS
Governors
Official Governors
Sir Paul Nurse President Dr S. Trowbridge Vice President Mrs. S. Ansari Vice President Mr. J. L. Fletcher Honorary Treasurer Mrs K. von Malaisé Chief Master, King Edward's School The Rt. Revd. A. Hollinghurst Principal, The Queen's Foundation Mr. M. Eccleston University of Birmingham Representative
City Governors
The Lord Mayor of Birmingham Councillor A. Higgs CouncillorJ.Hunt Councillor M. Locke Retired 7 July 2025 Councillor R. Pocock
Elective Governors
Mr. P. Cooper Elected 7 March 2026 Mr. A. Dowe Mr. N. Easom Retired 7 March 2026 Ms. J. Francis Mr. S. J. Hartland Retired 7 March 2026 Dr. E. McAdam Mr. T. Peart Elected 7 March 2026 Mr. S. Perry Elected 7 March 2026 Miss A. Round
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THE BIRMINGHAM AND MIDLAND INSTITUTE
REPORT OF THE GOVERNORS FOR THE YEAR ENDED 30 JUNE 2025
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Independent Examiner
Ormerod Rutter The Oakley Kidderminster Road Droitwich Spa Worcestershire WR9 9AY
Solicitors
Tyndallwoods Solicitors 29 Woodbourne Road Edgbaston Birmingham B17 8BY
Bankers
Bank of Scotland 33 Old Broad Street London BX2 1LB
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30/04/2026 DAtO? i ccceverseressnxepncsanesnssosenserseaesaee
THE BIRMINGHAM AND MIDLAND INSTITUTE
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30 JUNE 2025
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|||||||||||
|---|---|---|---|---|---|---|---|---|---|
|2025|2024|
|Unrestricted|Restricted|Total|Total|
|funds|funds|funds|funds|
|Notes|£|£|£|£|
|INCOME AND|ENDOWMENTS|FROM|
|Donations|and|legacies|3|631|800|1,431|2,899|
|Charitable|activities|
|Rents|receivable|4|155,497|-|155,497|179,454|
|Other trading|activities|4|46,194|500|46,694|77,455|
|Investment income|5|3,265|2,348|5,613|2,472|
|Total|205,587|3,648|209,235|262,280|
|EXPENDITURE|ON|
|Charitable|activities|6|29,638|-|29,638|29,295|
|Support|costs|7|219,613|500|220,113|154,446|
|Other|:|11|-|-|-|33,892|
|Total|249,251|500|249,751|217,633|
|NET (EXPENDITURE)/INCOME|BEFORE GAIN|(43,664)|3,148|(40,516)|44,647|
|Gain|on|sale|of fixed|assets|11|223,501|-|223,501|-|
|NET INCOME AFTER GAIN|179,837|3,148|182,985|44,647|
|RECONCILIATION|OF|FUNDS|
|Total funds|brought forward|1,424,131|20,484|1,444,615|1,399,968|
|TOTAL FUNDS CARRIED FORWARD|1,603,968|23,632|1,627,600|1,444,615|
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The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
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THE BIRMINGHAM AND MIDLAND INSTITUTE
BALANCE SHEET
30 JUNE 2025
| 2025 | 2024 | ||
|---|---|---|---|
| Notes | £ | £ | |
| FIXED ASSETS | |||
| Intangible assets | 13 | = | = |
| Tangible assets | 14 | 1,357,296 | 1,464,418 |
| 1,357,296 | 1,464,418 | ||
| CURRENTASSETS | |||
| Debtors | 15 | 56,002 | 56,168 |
| Cash at bank | 300,708 | 61,951 | |
| 356,710 | 118,119 | ||
| CREDITORS | |||
| Amounts falling due within one year | 16 | (86,406) | (120,985) |
| NETCURRENT LIABILITIES | 270,304 | (2,866) | |
| TOTALASSETS LESS CURRENT LIABILITIES | 1,627,600 | 1,461,552 | |
| CREDITORS | |||
| Amounts fallingdue aftermorethan oneyear | 17 | - | (16,937) |
| NETASSETS | 1,627,600 | 1,444,615 | |
| FUNDS | 22 | ||
| Unrestricted funds | 1,603,968 | 1,424,131 | |
| Restricted funds | 23,632 | 20,484 | |
| TOTALFUNDS | 1,627,600 | 1,444,615 |
The financial statements were approved by the Board of Governors on 6 October 2025 and were signed on its behalf by:
Mr. J. L. Fletcher
Honorary Treasurer
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THE BIRMINGHAM AND MIDLAND INSTITUTE
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2025
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1. ACCOUNTING POLICIES
Charity information The Birmingham and Midland Institute is a charity registered with the Charity Commission (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.
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THE BIRMINGHAM AND MIDLAND INSTITUTE
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 JUNE 2025
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 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 | Nil |
|---|---|
| Fixtures and fittings | 15% on cost |
| Computerequipment | 25% on cost |
| Library books | Nil |
| Giftedassets | 25%oncost |
- 1.7. 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
1.8 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.
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THE BIRMINGHAM AND MIDLAND INSTITUTE
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 JUNE 2025
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2. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY
In the application of the charity's accounting policies, the governors are 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 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.
During the year the Institute conducted a review of gifted assets. As a result, the estimated useful life of the gifted assets was shortened to 4 remaining years. This change in accounting estimate has been accounted for prospectively. The effect of this change in the year ended 30 June 2025 is £12,325.
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|---|---|---|---|---|
|3.|DONATIONS AND|LEGACIES|
|Donations|
|4.|INCOME|FROM|CHARITABLE|ACTIVITIES|
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||||||||||
|---|---|---|---|---|---|---|---|---|
|2025|2024|
|£|£|
|Donations|1,431|2,899|
|INCOME|FROM|CHARITABLE|ACTIVITIES|
|Unrestricted|Restricted|Total|Total|
|Funds|Funds|
|2025|2025|2025|2024|
|£|£|£|£|
|Rents|receivable|155,497|-|155,497|179,454|
|Management|charges|-|500|500|500|
|Catering|22,497|-|22,497|22,180|
|Commissions|received|11,301|-|11,301|8,700|
|Membership|subscriptions|9,360|-|9,360|8,993|
|Book|sales,|recorded|music and|sundry income|2,248|-|2,248|1,948|
|Other income|788|:|-|788|35,133|
|201,691|500|202,191|256,909|
|INVESTMENT|INCOME|
|2025|2024|
|£|£|
|Bank|interest|receivable|5,613|2,472|
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- INVESTMENT INCOME
Bank interest receivable
There has been £3,265 income from bank interest received from unrestricted funds (2024 - £298) and £2,348 income from restricted funds during the year ended 30 June 2025 (2024 - £2,174). This restricted income 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.
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THE BIRMINGHAM AND MIDLAND INSTITUTE
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 JUNE 2025
6. CHARITABLE EXPENDITURE
| 6. | CHARITABLE EXPENDITURE | ||
|---|---|---|---|
| 2025 | 2024 | ||
| £ | £ | ||
| Staff costs | 25,477 | 23,252 | |
| General expenses | 4,161 | 6,043 | |
| 29,638 | 29,295 | ||
| 7. | SUPPORT COSTS | ||
| 2025 | 2024 | ||
| £ | £ | ||
| Staff costs | 39,854 | 43,724 | |
| Sundry expenses | - | 739 | |
| Catering | 24,720 | 20,754 | |
| Rates and utilities | 56,739 | 10,978 | |
| Cleaning | 10,090 | 9,527 | |
| Repairs and maintenance | 7,589 | 4,394 | |
| Insurance | 14,497 | 12,707 | |
| Legal and professional | 19,557 | 1,000 | |
| Printing and stationery | 1,992 | 5,602 | |
| Website and IT | 3,328 | 1,760 | |
| Telephone | 5,989 | 16,641 | |
| Management charge | 500 | 500 | |
| Depreciation and amortisation | 21,992 | 17,248 | |
| Interest payable and similar charges | 10,026 | 3,708 | |
| Bank charges | 733 | 1,055 | |
| Fees and subscriptions | 1,625 | 2,609 | |
| 219,231 | 152,946 | ||
| Share ofgovernance costs (see note 8) | 882 | 1,500 | |
| 220,113 | 154,446 | ||
| Analysis by fund | |||
| Unrestricted funds | 219,613 | 133,192 | |
| Restricted funds—general | 500 | 500 | |
| 220,113 | 133,692 | ||
| 8. | GOVERNANCE COSTS | ||
| 2025 | 2024 | ||
| £ | £ | ||
| Independentexaminerfees | 882 | 1,500 |
9. GOVERNORS
There was no governors' remuneration for the year ended 30 June 2025 nor for the year ended 30 June 2024.
The governors’ expenses paid for the year ended 30 June 2025 totalled £1,046 (2024: £749).
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THE BIRMINGHAM AND MIDLAND INSTITUTE
NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED:30 JUNE 2025
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10. STAFF COSTS
The average monthly number of employees during the year was:
| 2025 | 2024 | |
|---|---|---|
| Number | Number | |
| Administrative | 4 | 4 |
| Employment costs | ||
| 2025 | 2024 | |
| £ | £ | |
| Wagesandsalaries | 65,331 | 66,976 |
There were no employees whose annual remuneration was more than £60,000.
11. EXCEPTIONAL ITEMS
Included in the net gain on the sale of fixed assets of £223,501 are contractor costs to the value of £520,452, legal costs of £12,736 and ancillary costs of £9,180. These have been netted off against the gross disposal proceeds of £851,000. These costs primarily relate to the necessary separation alterations made to the building to ensure its suitability for sale. The disposal of the asset from the balance sheet at a cost of £85,130 represents a nominal eighth of the overall property held; an estimate value of the portion of the building that has been sold.
Included in other expenditure in the previous year were costs associated with the sale of 93-95 Cornwall Street totalling £33,892.
- TAXATION
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
13. INTANGIBLE FIXED ASSETS
| Armorial | |
|---|---|
| bearings | |
| £ | |
| COST | |
| At 1July2024 and 30June 2025 | 7,450 |
| AMORTISATION AND IMPAIRMENT | |
| At 1July 2024 and 30June 2025 | 7,450 |
| CARRYING AMOUNT | |
| At 30 June 2025 | - |
| At30June2024 | - |
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THE BIRMINGHAM AND MIDLAND INSTITUTE
NOTES TO THE FINANCIAL STATEMENTS- continued
FOR THE YEAR ENDED 30 JUNE 2025
14. TANGIBLE FIXED ASSETS
| TANGIBLE FIXED ASSETSASSETS | ||||
|---|---|---|---|---|
| Fittings | ||||
| Freehold | and | Library | ||
| property | equipment | books | ||
| £ | £ | £ | ||
| COST | ||||
| At 1July 2024 | 681,045 | 219,208 | 680,275 | |
| Additions | - | - | - | |
| Disposals | (85,130) | - | - | |
| At 30June 2025 | 595,915 | 219,208 | 680,275 | |
| DEPRECIATION | ||||
| At 1July 2024 | - | 165,410 | - | |
| Charge foryear | - | 9,667 | - | |
| At 30June 2025 | - | 175,077 | - | |
| NET BOOK VALUE | ||||
| At30June 2025 | 595,915 | 44,131 | 680,275 | |
| At 30June 2024 | 681,045 | 53,798 | 680,275 | |
| Gifted | ||||
| assets | Computers | Totals | ||
| £ | £ | £ | ||
| COST | ||||
| At 1 July 2024 | 49,300 | 3,539 | 1,633,367 | |
| Additions | - | : | - | |
| Disposals | - | - | (85,130) | |
| At 30June 2025 | 49,300 | 3,539 | 1,548,237 | |
| DEPRECIATION | ||||
| At 1July 2024 | - | 3,539 | 168,949 | |
| Charge for year | 12,325 | - | 21,992 | |
| At 30June 2025 | 12,325 | 3,539 | 190,941 | |
| NET BOOKVALUE | ||||
| At 30June 2025 | 36,975 | - | 1,357,296 | |
| At 30June 2024 | 49,300 | - | 1,464,418 | |
| Freehold property | ||||
| The governors are oftheview that the current value ofthe Institute's freehold | property is greater than the net | |||
| book value and therefore continue not to depreciate the property. | ||||
| Library books | ||||
| The Instituteownsa librarycontainingapproximately107,000volumes. Thegovernorshaveincluded | avaluation | |||
| ofthese books as atthe balance sheet date based on an in-house valuation. In the opinion ofthegovernors | governors this | |||
| is the best estimate available of the current valuation ofthe Institute's library books. Additions since valuation | ||||
| have been included at cost. | ; |
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THE BIRMINGHAM AND MIDLAND INSTITUTE
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 JUNE 2025
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14. TANGIBLE FIXED ASSETS - continued
Gifted assets
Gifted assets are comprised of material items donated to the Institute, stated at the governors’ valuation less depreciation.
Assets on hire purchase
Included in fittings and equipment are assets under hire purchase agreements with a net book value of £25,715 (2024 - £32,729).
15. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
==> picture [419 x 68] intentionally omitted <==
----- Start of picture text -----
|||||
|---|---|---|---|
|2025|2024|
|£|£|
|Trade|debtors|23,194|23,371|
|Other|debtors|32,808|32,797|
|56,002|56,168|
----- End of picture text -----
Included in Other debtors is an interest free loan to the value of £6,014 made to a former employee of the Charity. The loan is interest-free, unsecured and has no fixed date of repayment.
- CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
==> picture [422 x 334] intentionally omitted <==
----- Start of picture text -----
||||||||||
|---|---|---|---|---|---|---|---|---|
|2025|2024|
|£|£|
|Bank|loans|and|overdrafts|(see|note|18)|10,675|10,000|
|Obligations|under finance|leases|(see|note|19)|16,085|9,461|
|Trade|creditors|9,592|36,528|
|Taxation|and|social|security|1,445|1,028|
|Other|creditors|48,609|63,968|
|86,406|120,985|
|CREDITORS: AMOUNTS AMOUNTS|FALLING|DUE AFTER AFTER|MORE THAN ONE YEAR THAN ONE YEAR YEAR|
|2025|2024|
|£|£|
|Bank|loans|(see|note|18)|-|9,167|
|Hire|purchase|(see|note|19)|-|7,770|
|-|16,937|
|LOANS|
|2025|2024|
|£|£|
|Bank|loans|10,675|19,167|
|Payable|within|one|year|10,675|10,000|
|Payable|after one|year|-|9,167|
----- End of picture text -----
17. CREDITORS: AMOUNTS AMOUNTS FALLING DUE AFTER AFTER MORE THAN ONE YEAR THAN ONE YEAR YEAR
- LOANS
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THE BIRMINGHAM AND MIDLAND INSTITUTE
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 JUNE 2025
19. FINANCE LEASE OBLIGATIONS
Future minimum lease payments due under finance leases:
| 2025 | 2024 | |||
|---|---|---|---|---|
| £ | £ | |||
| Within one year | 16,085 | 9,461 | ||
| Between two and five years | - | 7,770 | ||
| 16,085 | 17,231 | |||
| ANALYSIS OF NETASSETS BETWEEN FUNDS | ||||
| Fund balances as 30 June 2025 are represented | by: | |||
| 2025 | 2024 | |||
| Unrestricted | Restricted | Total | Total | |
| funds | funds | funds | funds | |
| £ | £ | £ | £ | |
| Tangible fixed assets | 1,357,296 | - | 1,357,296 | 1,464,418 |
| Current assets/(liabilities) | 246,672 | 23,632 | 270,304 | (2,866) |
| Longterm liabilities | - | - | - | (16,937) |
| 1,603,968 | 23,632 | 1,627,600 | 1,444,615 |
20. ANALYSIS OF NET ASSETS BETWEEN FUNDS
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 governors for specific purposes. ~
| Incoming | Resources | |||
|---|---|---|---|---|
| At 1July2024 | resources | expended | At 30June 2025 | |
| £ | £ | £ | £ | |
| General funds | 1,424,131 | 429,088 | (249,251) | 1,603,968 |
| Incoming | Resources | |||
| Previous year | At 1July 2023 | resources | expended | At30June 2024 |
| £ | £ | £ | £ | |
| Generalfunds | 1,381,658 | 238,852 | (196,379) | 1,424,131 |
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THE BIRMINGHAM AND MIDLAND INSTITUTE
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 JUNE 2025
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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.
| Incoming | Resources | |||
|---|---|---|---|---|
| At 1 July2024 | resources | expended | At 30June 2025 | |
| £ | £ | £ | £ | |
| Alfred and Mary Wilkins Memorial Poetry | 1,764 | - | - | 1,764 |
| Grew Bequest | 16,804 | 2,848 | (500) | 19,152 |
| Library Maintenance Fund | 1,916 | 800 | - | 2,716 |
| 20,484 | 3,648 | (500) | 23,632 | |
| Previous year: | Incoming | Resources | ||
| At 1July2023 | resources | expended | At30June 2024 | |
| £ | £ | £ | £ | |
| Alfred and MaryWilkins Memorial Poetry | 1,764 | - | - | 1,764 |
| Grew Bequest | 14,630 | 2,674 | (500) | 16,804 |
| Library Maintenance Fund | 1,916 | - | - | 1,916 |
| 18,310 | 2,674 | (500) | 20,484 |
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.
Library Maintenance Fund
This fund is reserved for the Institute's library, contributing to: maintenance; the purchase of materials and equipment; and the re-binding its valuable collection of books
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THE BIRMINGHAM AND MIDLAND INSTITUTE
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 JUNE 2025
23. RETIREMENT BENEFIT SCHEMES
The Institute operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the Institute in an independently administered fund.
During the year the pension contributions totalled £1,048 (2024 - £1,316).
24. RELATED PARTY DISCLOSURES
Included within debtors is a loan to the value of £5,000 made to a close family member of Governor MrJL Fletcher. The loan is interest-free, unsecured and has no fixed date of repayment. The balance remaining receivable at the year-end was the full £5,000.
25. SUPPORT OF CULTURAL AND EDUCATIONAL ACTIVITIES
During the year ended 30 June 2025 the Birmingham and Midland Institute discounted fees in respect of rental and hiring charges 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.
21