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2022-12-31-accounts

THE CHRISTADELPHIAN HALL & BUILDINGS SOCIETY, BIRMINGHAM

TRUSTEES’ AND DIRECTORS’ REPORT AND AUDITED FINANCIAL STATEMENTS

31 DECEMBER 2022

(Registered Company Number: 00113912)

(Registered Charity Number: 702637)

THE CHRISTADELPHIAN HALL & BUILDINGS SOCIETY, BIRMINGHAM 31 DECEMBER 2022

REFERENCE AND ADMINISTRATIVE INFORMATION

Charity name The Christadelphian Hall & Buildings Society, Birmingham, also known as CHBS

Charity registration number 702637 (England and Wales) Company registration number 00113912 (England and Wales) Registered and principal office 15 Church Close Dunston Stafford ST18 9AF

Trustees and Directors A T Collinge - Retired 18 July 2022 D C Gouldingay – Treasurer S J Ashton A S Firth – Secretary from 18 July 2022 M G Green S P Griffiths K H Rawlings J Thompson Bankers HSBC plc 130 New Street Birmingham B2 4JU Solicitors Shakespeare Martineau LLP 1 Colmore Square Birmingham B4 6AA Investment adviser Portcullis Financial Planning Limited Office 10 GreenBox Westonhall Road Stoke Prior Bromsgrove B60 4AL Auditor BK Plus Audit Limited Azzurri House Business Park Walsall Road Walsall WS9 0RB

THE CHRISTADELPHIAN HALL & BUILDINGS SOCIETY, BIRMINGHAM 31 DECEMBER 2022

TRUSTEES’ AND DIRECTORS’ REPORT

The Directors have pleasure in presenting their annual report and the financial statements of The Christadelphian Hall & Buildings Society, Birmingham for the year ended 31 December 2022.

All Directors of the Society are also Trustees for the purposes of charity law; accordingly, in this report and in the financial statements “Trustees” means both Trustees and Directors.

This report and the accompanying financial statements have been prepared in accordance with the accounting policies set out in the notes to the financial statements and comply with the Society’s governing document, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland, Charities SORP (FRS 102) (second edition).

Structure, Governance and Management

The Christadelphian Hall & Buildings Society, Birmingham is a company limited by shares with charitable status. It has a Board of seven Trustees who are responsible for the governance of the charity in accordance with the Charities Act 2011 and under the Society’s governing document, Articles of Association, prepared in accordance with the Companies Act 2006. The governing document was last amended on 15 February 2021.

Trustees are typically elected for a three-year period by the Society’s members having regard to their professional skills and experience. When a vacancy on the Board arises, nominations for a replacement may be made either by the other Trustees or by members for election at the next Annual General Meeting. Andrew Collinge retired in July 2022 after more than 40 years’ service.

By way of training, all Trustees are encouraged to read relevant available literature on charity law, practices and accounting including updates published by the Charity Commission on its website. New Trustees are additionally encouraged to attend Trustee meetings as observers before taking office. Relevant training courses are also encouraged and occasionally arranged inhouse.

Day to day running of the charity is delegated by the Trustees to the Secretary, now Alistair Firth, who is assisted in overseeing the charity’s operations and finances by the Treasurer, David Gouldingay and Simon Griffiths. Internal controls appropriate to the size of the charity are exercised, including division of duties (to the extent feasible) and an internal audit is undertaken annually by one of the Trustees.

The principal risks to which the charity is exposed, as identified by the Trustees, have been reviewed and systems or procedures have been established to manage those risks. These risks are primarily financial risks arising from the management of the charity’s properties, loan book, treasury operations and, until September 2022, compliance with the Financial Conduct Authority consumer credit rules to which the Society was subject whilst authorised and regulated.

The Trustees meet at least four times a year (now using the Zoom online platform) and, between regular meetings, remain in regular email or telephone communication with the Secretary and Treasurer over new loan and grant applications and any other business arising.

THE CHRISTADELPHIAN HALL & BUILDINGS SOCIETY, BIRMINGHAM 31 DECEMBER 2022

Objectives and Activities

The objects of the charity are to promote and advance the religious work of the Christadelphian community for the public benefit, in particular through the provision or purchase of properties, and the lending or granting of funds towards the cost of purchase, building or maintaining premises and land, in each case for the use of the Christadelphian community in providing access for the public to worship and Bible-based preaching and teaching. Grant support for the running costs of Christadelphian ecclesias may also be provided.

THE CHRISTADELPHIAN HALL & BUILDINGS SOCIETY, BIRMINGHAM 31 DECEMBER 2022

TRUSTEES’ AND DIRECTORS’ REPORT – continued

The Trustees review activities each year to ensure the charity remains focused upon delivering its stated objects for the public benefit.

Public Beneft Compliance Statement

In the exercise of their powers and duties for the Society’s charitable objectives the Trustees have reviewed and had regard to the Charity Commission general guidance on public benefit.

The grants, concessionary loans and rent-free property provided by the charity continue to benefit the access of the general public, regardless of race, religion, gender, ethnic or social background, to the Bible-based worship, teachings and Christian love of the Christadelphian community throughout the UK and, to a lesser extent, overseas. These help to promote a fuller understanding of the human condition, relative to the eternal things of God, and serve to provide members of the public with direction, balance and purpose in today’s complex world.

Former authorisation and regulation by the Financial Conduct Authority

Until 24 September 2022, the charity was authorised and regulated by the Financial Conduct Authority (“FCA”), the regulatory body responsible for consumer credit, registered under FRN 722793. In view of the low number of applications for regulated loans and the high cost of maintaining this registration, both financially and in terms of management time, the Society sought cancellation of this FCA supervision, which was granted on the above date. Since that date loan applications may only be considered in relation to incorporated Christadelphian ecclesias.

Achievements and Performance

The way applications arise for financial support makes it difficult for the Trustees to set meaningful objectives against which performance can be measured. However, an annual budget is prepared and, as applications arise, the Trustees respond promptly other than where policy decisions arise which require the decision of a full meeting of the Trustees.

The provision of this support helps to ensure that appropriate premises remain available for promoting and advancing the religious work of the Christadelphian community.

During the year donations received included non-cash donations in kind of 6 (2021 - 3) Christadelphian halls with total FRS102 gift values of £1,061,745 (2021 – £675,856). Net gains on the sale of 2 (2021 – 1) vacated ecclesial halls realised further income of £105,862 (2021 – £258,091, this property having been held for many decades by the Society at Nil book value).

No new loans were advanced to ecclesias in the year (2021 – one new loan for £45,000).

Grants from unrestricted funds were made with a total value of £240,387 (2021 - £627,446, including exceptional grants totalling £543,182). Grants from restricted funds in the year were £Nil (2021 - £1,308). Loan repayments in the year amounted to £18,320 (2021 - £23,915). A further £63,056 (2021 - £Nil) of loan balances were settled by non-cash grants from the Society.

At the year end the Society owned 8 (2021 – 4) fixed asset properties, provided rent-free to their ecclesial occupiers under its charitable objects. During 2021 one recent, fixed asset property gift in kind was received but then

THE CHRISTADELPHIAN HALL & BUILDINGS SOCIETY, BIRMINGHAM 31 DECEMBER 2022

vacated and reclassified as an investment property before sale.

The Society continues to be in discussion with a number of ecclesias expressing interest in gifting ecclesial halls to the Society for nil consideration and then leasing back these halls, for continued ecclesial use, on a rent-free basis. Discussions have also been held with ecclesias contemplating closure and possible future property gifts to the Society for resale.

THE CHRISTADELPHIAN HALL & BUILDINGS SOCIETY, BIRMINGHAM 31 DECEMBER 2022

TRUSTEES’ AND DIRECTORS’ REPORT – continued

The interest of certain ecclesias in offering the Society property gifts is driven by two main factors:

(1) a shortage of willing property holding trustees; and (2) ageing ecclesial membership which foresees ecclesial closure within the medium term and wishes to protect property proceeds from tax risks for the long-term benefit of the Christadelphian community.

At 31 December 2022, 5 (2021 – 4) proposed property gifts are at a sufficiently advanced stage to warrant noting as Contingent Assets in Note 17 to the Financial Statements.

At the end of the year the charity had outstanding loans to Christadelphian ecclesias of £27,133 (2021 - £108,509).

Financial Review

The charity receives voluntary income donations, including periodic legacies or other lump sums, together with investment income. During 2022 the charity received unrestricted donations (including property gifts) of £1,061,946 (2021 - £685,863). No restricted donations were received in the year (2021 – Nil). The charity has no employees (2021 - Nil) and no emoluments were paid to the Trustees during the year (2021 – Nil).

Income and expenditure

Net income for the year was £811,072 (2021 – £34,418) and there were net realised and unrealised gains on investments of £112,794 (2021 - £286,712). This included exceptional gains on sale of investment properties of £105,862 (2021 - £258,091). This resulted in a total increase in unrestricted funds of £922,908 (2021 – £321,068) and a total increase in restricted funds of £958 (2021 – £62).

The Society is prohibited by its Articles of Association from paying dividends.

Transfers between reserves

During the year there was one transfer from restricted income funds to unrestricted funds for £8,347 (2021 – Nil) upon reaching the date when donor restrictions ceased to apply. Transfers between the unrestricted general fund and the unrestricted revaluation reserve are set out in note 15 to the financial statements and amounted to £10,200 from revaluation reserve (2021 - £18,506 to revaluation reserve). In the year £747,816 (2021 - £87,513) was also transferred to the unrestricted non-distributable reserve from unrestricted general fund in relation to property gifts received in the year.

Reserves policy

General reserves are required to fund: (a) the charity's core loan-making activities, which may be up to £250,000 (2021- £300,000); (b) up to three years' running costs of around £590,000 (2021 - £390,000) including cash-only grant payments at current levels; and (3) up to £250,000 (2021 - £Nil) to fund the prospective purchase of a hall for an ecclesia having many members or visitors who are asylum seekers or refugees with little or no income. Any reserves in excess of this level are applied to making further grants, which meet the grant-making criteria of the Charity Commission and the charity, at the earliest practicable date. Free reserves at the year-end comprised the

THE CHRISTADELPHIAN HALL & BUILDINGS SOCIETY, BIRMINGHAM 31 DECEMBER 2022

general fund of £999,103 (2021 – 803,714), which are currently below the level of general reserves required.

Transfers from restricted income funds to unrestricted income funds are only made when the conditions imposed by the relevant donor have been met. Gains arising from property gifts in kind to the charity are transferred to the non-distributable reserve until realised.

TRUSTEES’ AND DIRECTORS’ REPORT – continued

Revaluation gains on quoted investments are transferred to unrestricted revaluation reserve until realised.

New property gifts in kind are valued in the accounts after deducting from current professional valuation net present value discounts relative to the estimated future dates on which values can be realised in cash. These gift values are then transferred from general fund to a non-distributable reserve until realised. Annual reductions in discount relative to future realisation dates are treated as revaluation gains in the general fund and then transferred to the non-distributable reserve.

The amounts of restricted, unrestricted, revaluation and non-distributable reserves held at the end of the year are respectively set out in notes 14 and 15 to the financial statements.

Investment properties held for resale

Investment properties periodically held for resale and are marketed for onward sale at the time, and in the manner, recommended by professional advisers.

Investment policy and returns

Investments are managed by the Trustees in conjunction with Portcullis Financial Planning Ltd.

Investments are held in medium term balanced risk investments, for funds not required in the short term, and in fixed interest term deposits or interestbearing instant access bank accounts, for other funds, so that approved new loans and grants can be paid promptly.

Net assets

At 31 December 2022, the Society held net assets of £2,029,004 (2021 - £1,105,138) available for appropriate ongoing charitable activities, subject to the donor restrictions set out in note 14 to the financial statements.

The year ahead

Based on its financial forecasts the Trustees anticipate having sufficient financial resources to continue delivering the Society’s charitable objects, God willing.

Fixed Assets: Programme Related Investments

Programme related investments are carried in the financial statements at either the FRS102 value gifted or the amount paid less, in the case of concessionary loans, repayments received, and less any impairment arising. In the opinion of the Trustees no such impairment had arisen at 31 December 2022 (2021 – Nil).

Responsibilities of the Trustees

THE CHRISTADELPHIAN HALL & BUILDINGS SOCIETY, BIRMINGHAM 31 DECEMBER 2022

Company 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 charitable company as at the balance sheet date and of its income and expenditure for the financial year. In preparing those financial statements, the Trustees should follow best practice and:

THE CHRISTADELPHIAN HALL & BUILDINGS SOCIETY, BIRMINGHAM 31 DECEMBER 2022

TRUSTEES’ AND DIRECTORS’ REPORT – continued

The Trustees are responsible for maintaining proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. The Trustees are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Trustees and their Share Interests

The Trustees who held office during the year and their beneficial share interests (including family interests) at the end of the year were as follows:

Non- Non-
Ordinary voting Ordinary voting
shares of directors’ shares of directors’
£1 shares of £1 share of
£1 £1
2022 2022 2021 2021
A T Collinge N/A N/A 12 305
S J Ashton 12 347 11 304
A S Firth 13 348 11 304
D C Gouldingay 13 348 11 304
M G Green 13 348 12 304
S P Grifths 12 347 11 304
K H Rawlings 13 348 11 304
J Thompson 12 347 11 304

The company’s Articles of Association require each Trustee to own a minimum share qualification of 5 Ordinary shares of £1 each.

None of the Trustee-owned shares have any dividend or capital entitlements so are of no economic value to their holders.

Trustees and their Share Interests

The Trustees approaching the conclusion of their three-year appointments under the Society’s governing document are Mr A S Firth, Mr D C Gouldingay and Mr M G Green who will offer themselves for re-election at the 2023 Annual General Meeting, God willing.

Small company provisions

This report has been prepared in accordance with the provisions in Part 15 of the Companies Act 2006 applicable to companies subject to the small companies’ regime.

This report was approved by the Board on 19 June 2023 and signed on its behalf by:

THE CHRISTADELPHIAN HALL & BUILDINGS SOCIETY, BIRMINGHAM 31 DECEMBER 2022 ASFirth Secretary

THE CHRISTADELPHIAN HALL & BUILDINGS SOCIETY, BIRMINGHAM 31 DECEMBER 2022

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE CHRISTADELPHIAN HALL & BUILDINGS SOCIETY, BIRMINGHAM (‘the Company’)

Opinion

We have audited the financial statements of The Christadelphian Hall & Buildings Society, Birmingham (the ‘charitable company’) for the year ended 31 December 2022 which comprise the Statement of Financial Activities, Balance Sheet and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 charitable company 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.

THE CHRISTADELPHIAN HALL & BUILDINGS SOCIETY, BIRMINGHAM 31 DECEMBER 2022

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

THE CHRISTADELPHIAN HALL & BUILDINGS SOCIETY, BIRMINGHAM 31 DECEMBER 2022

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE CHRISTADELPHIAN HALL & BUILDINGS SOCIETY, BIRMINGHAM (‘the Company’) - continued

Other information

The trustees are responsible for the other information. The other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

THE CHRISTADELPHIAN HALL & BUILDINGS SOCIETY, BIRMINGHAM 31 DECEMBER 2022

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE CHRISTADELPHIAN HALL & BUILDINGS SOCIETY, BIRMINGHAM (‘the Company’) – continued

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 13, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of 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 charitable company’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 charitable company 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 auditor under the Companies Act 2006 and report in accordance with this Act.

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.

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

Extent to which the audit was considered capable of detecting irregularities, including fraud

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 CHRISTADELPHIAN HALL & BUILDINGS SOCIETY, BIRMINGHAM 31 DECEMBER 2022

THE CHRISTADELPHIAN HALL & BUILDINGS SOCIETY, BIRMINGHAM 31 DECEMBER 2022

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE

CHRISTADELPHIAN HALL & BUILDINGS SOCIETY, BIRMINGHAM (‘the Company’) - continued

From the preliminary stage of the audit, we ensure our understanding of the entity is up to date. This includes, but is not limited to, current knowledge of their activities, the business and control environments, and their compliance with the applicable legal and regulatory frameworks. This information supports our risk identification and the subsequent design of audit procedures to mitigate those risks; ensuring that the audit evidence obtained is sufficient and appropriate to support our opinion.

In response to the risks identified, specific to this entity, we designed procedures which included, but were not limited to:

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Christopher Hession C.A. (Senior Statutory Auditor) Date: 19 June 2023

For and on behalf of BK Plus Audit Limited

Azzurri House Walsall Road Aldridge Walsall WS9 0RB

THE CHRISTADELPHIAN HALL & BUILDINGS SOCIETY, BIRMINGHAM 31 DECEMBER 2022

THE CHRISTADELPHIAN HALL & BUILDINGS SOCIETY, BIRMINGHAM 31 DECEMBER 2022

STATEMENT OF FINANCIAL ACTIVITIES including Income and Expenditure Account for the year ended 31 December 2022


Not
e
Income from:
Donations and
legacies
2
Charitable activities:
- Insurance recharges
receivable
Investments:
- Bank interest
receivable
- Dividends and other
bonuses receivable
- Rent receivable
Total income
Expenditure on:
Cost of raising funds
- Investment
managers fees
Charitable activities:
- Grants payable
3
- Insurance payable
-Support costs
4
Total expenditure
Net income before
investment gains
Net gains on
investments
Net income and net
movement in funds
Release of restricted
funds to unrestricted
funds
Reconciliation of
funds:
Total funds brought
forward
Total funds carried
forward		 Unrestrict
ed
funds
Restrict
ed
funds
Total
2022
£
£
£
1,061,94
6
-
1,061,94
6
6,419
-
6,419
1,138
958
2,096
2,731
-
2,731
20
-
20
1,072,25
4
958
1,073,21
2
1,963
-
1,963
240,387
-
240,387
7,305
-
7,305
12,485
-
12,485
262,140
-
262,140
810,114
958
811,072
112,794
-
112,794
922,908
958
923,866
8,347
(8,347)
-
934,184
166,95
4
1,101,13
8
1,865,43
9
159,56
5
2,025,00
4		 Unrestrict
ed
fun
ds
Restrict
ed
funds
Total
2021
£
£
£
685,86
3
-
685,863
5,357
-
5,357
92
1,370
1,462
2,224
-
2,224
20
-
20
693,55
6
1,3
70
694,926
1,896
-
1,896
627,44
6
1,308
628,754
5,357
-
5,357
24,501
-
24,501
659,20
0
1,308
660,508
34,356
62
34,418
286,71
2
-
286,712
321,06
8
62
321,130
-
-
-
613,11
6
166,89
2
780,008
934,18
4
166,95
4
1,101,13
8

The statement of financial activities is not materially different from the income

THE CHRISTADELPHIAN HALL & BUILDINGS SOCIETY, BIRMINGHAM 31 DECEMBER 2022

and expenditure account required by the Companies Act 2006; accordingly, no separate income and expenditure account is presented.

There are no recognised gains and losses for the current or prior financial years other than as stated above. Accordingly, no statement of total recognised gains and losses has been prepared.

All of the activities of the company are continuing.

THE CHRISTADELPHIAN HALL & BUILDINGS SOCIETY, BIRMINGHAM 31 DECEMBER 2022

Company Registration Number: 00113912

BALANCE SHEET at 31 December 2022

Note
FIXED ASSETS
Programme related Investments:
Land and buildings
6
Loans
7
Investments:
Quoted
8
Bank term deposits
9
CURRENT ASSETS
Investment property
10
Debtors
11
Bank term deposit
Cash at bank
CREDITORS:AMOUNTS FALLING DUE
WITHIN ONE YEAR
12
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
THE FUNDS OF THE CHARITY
Called up share capital
13
Accumulated income funds:
Restricted funds
14
Unrestricted funds:
General fund
15
Revaluation reserve
15
Non-distributable reserve
15
Total unrestricted funds
TOTAL CHARITABLE FUNDS		 2022
£
908,396
27,133
187,632
170,000
1,293,16
1
-
15,404
-
730,618
746,022
10,179
735,843
2,029,00
4
4,000
159,565
997,353
32,757
835,329
1,865,43
9
2,029,00
4		 2021
£
5,808
108,509
196,951
-
311,268
93,400
19,479
85,000
1,142,63
4
1,340,51
3
546,64
3
793,870
1,105,13
8
4,000
166,954
803,714
42,957
87,513
934,184
1,105,13
8

The Trustees acknowledge their responsibilities for:

THE CHRISTADELPHIAN HALL & BUILDINGS SOCIETY, BIRMINGHAM 31 DECEMBER 2022

statements, so far as applicable to the charitable company.

THE CHRISTADELPHIAN HALL & BUILDINGS SOCIETY, BIRMINGHAM 31 DECEMBER 2022

BALANCE SHEET

At 31 December 2022 - continued

These financial statements have been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 applicable to companies subject to the small companies’ regime.

The financial statements were approved by the Board of Trustees on 19 June 2023 and were signed on its behalf by:

D C Gouldingay Director

THE CHRISTADELPHIAN HALL & BUILDINGS SOCIETY, BIRMINGHAM 31 DECEMBER 2022

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2022

1. ACCOUNTING POLICIES

Legal Status of the Charity

The Christadelphian Hall & Buildings Society, Birmingham is a company limited by shares registered in England and Wales and a charity registered with the Charity Commission in England and Wales.

Basis of Preparation

These financial statements have been prepared in accordance with the 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, Charities SORP (FRS102) (second edition – October 2019). The detailed accounting policies in use are described below:

The charity meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes. Management judgements about the net present value of certain property gifts in kind may significantly affect gift values recognised in the financial statements – see Gifts in kind below.

The charity maintains financial forecasts which indicate that it will have sufficient resources to meet its liabilities as they fall due and, on that basis, the Trustees are satisfied it is appropriate to prepare the financial statements on a going concern basis.

Recognition of Income

All income is included in the Statement of Financial Activities when the charity is legally entitled to the income, its receipt is probable and the amount can be measured reliably.

Investment income receivable is allocated between restricted and unrestricted funds by reference to the individual income-producing assets which make up those funds.

Gifts in kind

Fixed and current assets donated for use by the charity are recognised as income at their current value when receivable. The external valuations of some gifts are discounted to net present value relative to future dates, either 5 or 25 years ahead, when management estimates that realisation will take place. Investment properties held for onward sale are stated at independently advised selling prices less estimated acquisition costs and estimated disposal costs still to be incurred. Unrealised gains on fixed and current assets are transferred to a non-distributable reserve until realisation takes place.

The charity’s balance sheet includes certain freehold land and buildings which were valued at their cost to the charity prior to the adoption of the present accounting policy. Their value has not been restated as the Trustees consider that the cost of ascertaining their values, when gifted

THE CHRISTADELPHIAN HALL & BUILDINGS SOCIETY, BIRMINGHAM 31 DECEMBER 2022

long ago, is not justified by the additional benefit such information would provide to users of the financial statements.

Recognition of Expenditure

Expenditure is included in the Statement of Financial Activities on an accruals basis when, and to the extent that, a liability, legal or constructive, is incurred and can be reliably measured.

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2022

1. ACCOUNTING POLICIES - continued

Recognition of Expenditure - continued

A constructive liability for a grant is considered to have been incurred when a grant offer has been issued to the recipient ecclesia and all grant conditions have been satisfied.

Fixed Assets Investments: Programme Related Investments

Programme related investments are made to further the objects of the charity and not for financial return. They comprise freehold properties held by the charity, let rent-free to an occupying Christadelphian ecclesia as part of the charity’s primary work, and concessionary loans to Christadelphian ecclesias for the acquisition, repair or improvement of premises and land for use by the Christadelphian community. Concessionary loans are unsecured and interest-free and are repayable within a 12 (2021 - 12) year period from inception. Programme related investments are measured in the balance sheet at the amount paid or FRS102 value gifted less, in the case of concessionary loans, repayments received, and less any impairment arising.

Investments

Investment properties held for onward sale are stated at their net realisable value on the balance sheet. Where these properties derive from gifts in kind, unrealised gains are transferred to a non-distributable reserve.

Investments in quoted assets are stated at their fair value on the balance sheet date. Gains or losses on revaluation and investment assets disposals are shown in the Statement of Financial Activities. Unrealised gains are transferred to the revaluation reserve.

Long term investments are classified as fixed assets. Short term investments are classified as current assets.

Fund Accounting

Funds which may be used in accordance with the charity’s objects, at the discretion of the Trustees, are held in unrestricted income funds. Restricted funds may only be used for the purpose specified by the donor within the objects of the charity.

Cash at Bank

Cash at bank includes instant access deposit accounts and, unless shown separately on the balance sheet, term deposits maturing within 12 months of the balance sheet date.

THE CHRISTADELPHIAN HALL & BUILDINGS SOCIETY, BIRMINGHAM 31 DECEMBER 2022

Creditors and Provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount required to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amounts after allowing for any trade discounts due.

Financial Instruments

The charity’s financial assets and liabilities all qualify as basic financial instruments.

THE CHRISTADELPHIAN HALL & BUILDINGS SOCIETY, BIRMINGHAM 31 DECEMBER 2022

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2022

2. DONATIONS AND LEGACIES

Unrestricted
funds
Restrict
ed
funds
Total
2022
These arose from the
following sources:
£
£
£
Thornton Heath
Ecclesia – hall gift on
closure and sale
-
-
-
Barnet Ecclesia – hall
gift for leaseback at
nominal rent
546,53
3
546,53
3
Seaton Ecclesia – hall
gift for leaseback at
nominal rent
-
-
-
Bath Ecclesia – hall gift
for leaseback at
nominal rent
220,32
8
-
220,32
8
St Albans Ecclesia – on
closure and hall sale
123,63
8
-
123,63
8
Aylesbury Ecclesia – for
resale on closure
119,79
7
-
119,79
7
Shrewsbury Ecclesia –
hall gift for leaseback
at nominal rent
38,896
-
38,896
Ellwood Ecclesia – hall
gift for leaseback at
nominal rent
12,553
-
12,553
Lincoln Ecclesia - on
closure and hall sale
-
-
-
Nelson Ecclesia – hall
gift on closure and sale
-
-
-
Total under £5,000
201
-
201
1,061,9
46
-
1,061,9
46		 Unrestrict
ed
funds
Restrict
ed
funds
Total
2021
£
£
£
585,724
-
585,72
4
80,374
-
80,374
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
10,000
-
10,000
9,758
-
9,758
7
-
7
685,863
-
685,86
3

3. CHARITABLE ACTIVITIES - GRANTS PAYABLE

Unrestricted Unrestricted Restrict Total Unrestrict Restrict Total
funds ed 2022 ed ed 2021
funds funds funds
Grants to institutions £ £ £ £ £ £
within charitable objects
comprised:
Exceptional grants to
other Christadelphian - - - 543,182 - 543,1
charities 82
Christadelphian Bible
Mission – overseas 71,14 - 71,14 34,564 - 34,56
ecclesias (Africa) 6 6 4
Ashton-under-Lyne 45,00 - 45,00 15,000 - 15,00
Ecclesia 0 0 0
Glasgow Kelvin Ecclesia 25,00 - 25,00 - - -
0 0
Llanelli Ecclesia 24,29 - 24,29 - - -

THE CHRISTADELPHIAN HALL & BUILDINGS SOCIETY, BIRMINGHAM 31 DECEMBER 2022

Kings Heath Ecclesia
Betws Ecclesia
Hereford Ecclesia
Blackheath Ecclesia
Doncaster Ecclesia
Bournville Ecclesia
Bracknell Ecclesia
Under £7,500		 4
4
15,75
0
-
15,75
0
12,60
0
-
12,60
0
3,500
-
3,500
7,740
-
7,740
7,592
-
7,592
-
-
-
-
-
-
27,76
5
-
27,76
5
240,3
87
-
240,3
87		 -
-
-
-
-
-
8,000
-
8,000
-
-
-
7,500
-
7,500
7,500
-
7,500
11,700
1,308
13,00
8
627,446
1,308
628,7
54

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2022

4. SUPPORT COSTS

UPPORT COSTS
Legal and professional expenses(see note below)
Audit fees (2021 independent examiner’s costs)
Trustee indemnity and personal accident insurance
Utility costs on investment properties
Financial Conduct Authority - compliance advice
Financial Conduct Authority - annual fee
Trustee expenses
Miscellaneous expenses		 2022
£
2,230
4,500
2,337
1,520
-
1,109
483
306
12,485		 2021
£
19,376
1,600
712
-
1,440
836
159
378
24,501

2021 legal and professional expenses included £4,387 relating to an ecclesial property gift that the ecclesia withdrew from in the closing stages. £4,012 was also expended on a separate gift and leaseback transaction where the ecclesia was unable to continue but instead hopes to make a property gift for resale to the Society in future.

5. TRUSTEES, DIRECTORS AND EMPLOYEES

The company has no employees. All members of the board act in an unpaid capacity so none of the Trustees and Directors received any remuneration for the year (2021 - Nil).

No expenses were claimed by any Trustee with the exception of secretarial expenses and/or travelling expenses incurred by and reimbursed or accrued for reimbursement to: A S Firth £83 (2021 - £Nil) A T Collinge £168 (2021 - £89) and D C Gouldingay £232 (2021 - £70).

6. FIXED ASSETS INVESTMENTS - PROGRAMME RELATED INVESTMENTS: LAND AND BUILDINGS

Programme related investments: land and buildings comprise the following freehold properties let at peppercorns rents to occupying ecclesias.

THE CHRISTADELPHIAN HALL & BUILDINGS SOCIETY, BIRMINGHAM 31 DECEMBER 2022

2022
£
Cost or valuation
At 1 January
5,808
Additions:
- Donations in the year at Day 1 net present value
818,30
9
- Acquisition costs
67,259
- Net present value revaluations since acquisition
17,020
At 31 December
908,39
6
Impairment
At 1 January and 31 December
-
Net book value
At 31 December
908,39
6
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2022
6.
FIXED ASSETS INVESTMENTS - PROGRAMME RELATED
INVESTMENTS:
LAND AND BUILDINGS - continued
2022
The occupying ecclesias and net book values at 31
December were:
£
Bournville Ecclesia
2,232
East Ham Ecclesia
1,286
Kings Heath Ecclesia
-
Old Traford Ecclesia
2,290
Barnet Ecclesia
573,81
3
Bath Ecclesia
230,26
6
Shrewsbury Ecclesia
72,178
Ellwood Ecclesia
26,331
Net book value at 31 December
908,39
6		 2021
£
5,808
-
-
-
5,808
-
5,808
2021
£
2,232
1,286
-
2,290
-
-
-
-
5,808

Freehold buildings are insured by the charity, the relevant proportion of the premium being recharged at cost to each occupying ecclesia.

7. FIXED ASSETS INVESTMENTS - PROGRAMME RELATED INVESTMENTS: CONCESSIONARY LOANS

Programme related investments: concessionary loans comprise advances made to ecclesias for the acquisition, repair or improvement of premises and land for use by the Christadelphian Community. Loans are unsecured and interest-free and repayable within a period of up to twelve years from

THE CHRISTADELPHIAN HALL & BUILDINGS SOCIETY, BIRMINGHAM 31 DECEMBER 2022

inception. Movements in the year were as follows:

Loans at 1 January
New loans advanced
Less:
- New or existing loans repaid
- Loans waived by CHBS – treated as additional grants
Loans at 31 December
Outstanding loans at year end:
Ashton-under-Lyne Ecclesia
Barton-under-Needwood Ecclesia
Birmingham, Kings Heath Ecclesia
Maidenhead Ecclesia
Manchester, Old Traford Ecclesia
Nottingham (South) Ecclesia
Wellington Ecclesia, New Zealand		 2022
£
108,50
9
-
108,50
9
18,320
63,056
27,133
-
4,500
15,300
-
7,333
-
-
27,133		 2021
£
87,424
45,000
132,42
4
23,915
-
108,50
9
45,000
6,500
34,200
7,200
9,200
3,909
2,500
108,50
9

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2022

7. FIXED ASSETS INVESTMENTS - PROGRAMME RELATED INVESTMENTS: CONCESSIONARY LOANS - continued

£5,667 (2021 - £12,615) is due for repayment within 12 months of the balance sheet date.

At 31 December 2022 the charity had committed Nil (2021 – £Nil) to new ecclesial loan advances, subject to contract, and accordingly not taken up at the reporting date.

8. FIXED ASSET INVESTMENTS: QUOTED INVESTMENTS

202 2021
2
£ £
Market value at start of year 196,95 175,14
1 1
Acquisitions at cost 2,73 2,22
1 4
Disposal proceeds (1,9 (1,8
63) 96)
Realised gains/(losses) - -

THE CHRISTADELPHIAN HALL & BUILDINGS SOCIETY, BIRMINGHAM 31 DECEMBER 2022

Unrealised (losses)/ gains
Market value at end of year
Historic cost of investments held at year end
The investment portfolio comprises:
Equity income funds
Managed growth bonds
Property bonds		 (10,0
87)
187,63
2
155,54
7
70,58
9
62,69
3
54,35
0
187,63
2		 21,48
2
196,95
1
154,95
8
74,2
24
66,7
55
55,9
72
196,9
51
9.
FIXED ASSET INVESTMENTS: BANK TERM DEPOSITS
£
Maturing in January 2025
85,000
Maturing in February 2026
85,000
170,000		 £
-
-
-

The deposit maturing in February 2026 was made by cheque posted using guaranteed overnight delivery on 22 December 2022. The bank concerned was unable to conclude its internal processes until the new financial year so that the deposit cheque was not cleared until 17 February 2023. Thereafter, interest began to accrue.

10. INVESTMENT PROPERTY

Held for resale

£ £ - 93,400

THE CHRISTADELPHIAN HALL & BUILDINGS SOCIETY, BIRMINGHAM 31 DECEMBER 2022

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2022

11. DEBTORS

11. DEBTORS
£
Prepaid acquisition costs – investments
15,375
Accrued income - interest on deposits
29
15,404
12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
£
Other creditors (including grants £5,679 – 2021
£543,182)
10,179
13. SHARE CAPITAL
Authorised, called up, allotted and fully paid:
£
1,567 Ordinary shares of £1 each
1,567
2,433 Non-voting directors’ shares of £1 each
2,433
4,000
None of the shares are dividend-bearing.		 £
19,248
231
19,479
£
546,643
£
1,567
2,433
4,000

14. RESTRICTED FUNDS

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and legacies held on trust for specific purposes:

Donation – former
Tenby Ecclesia
Legacy A -
Anonymous
Legacy B -
Anonymous		 Movement in funds
Openin
g
balance
Income
Expendit
ure
Transfe
rs
Closing
balanc
e
£
£
£
£
£
95,163
575
-
-
95,738
63,444
383
-
-
63,827
8,347
-
-
(8,347)
-
166,95
4
958
-
(8,347)
159,56
5

The restricted donation from the former Tenby Ecclesia is conditional upon a grant of up to £90,000 (plus net income) being made available by the charity, within its objects, towards the property needs of any recognised new Christadelphian ecclesia that may in future be established in a donor-prescribed area on or before 30 April 2029. Should such grant be required £20,000 would be payable after 60 days, a further £20,000 after 6 months and the balance of £50,000 (plus any net income) after 2 years. With effect from 1 May 2029 any unused funds will be transferable to unrestricted income funds.

Restricted legacy A is conditional upon a grant of up to £60,000 (plus net

THE CHRISTADELPHIAN HALL & BUILDINGS SOCIETY, BIRMINGHAM 31 DECEMBER 2022

income) being made available by the charity, within its objects, towards the property needs of any recognised Christadelphian ecclesia that may in future be established in an estate-prescribed area on or before 31 March 2025. Should such grant be required £20,000 would be payable after 60 days, a further £20,000 after 6 months and the balance of £20,000 (plus any net income) after 2 years. With effect from 1 April 2025 any unused funds will be transferable to unrestricted income funds. NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2022

14. RESTRICTED FUNDS - continued

Restricted legacy B was conditional upon a grant of up to £9,130 (plus net income less expenditure) being made available by the charity, within its objects, towards the property needs of a prescribed Christadelphian ecclesia before 24 May 2022. With effect from 25 May 2022 unused funds were transferred to unrestricted income funds.

15. UNRESTRICTED FUNDS

31 December
2022
General fund
Revaluation
reserve
Non-distributable
reserve
31 December
2021
General fund
Revaluation
reserve
Non-distributable
reserve		 Opening
balance
Income
Expendit
ure
Gains
and
losses
Transfer
s
Closing
balance
£
£
£
£
£
£
803,714
1,072,2
54
(262,140)
112,794
(729,26
9)
997,353
42,957
-
-
-
(10,200)
32,757
87,513
-
-
-
747,816
835,329
934,184
1,072,2
54
(262,140)
112,794
8,347
1,865,43
9
Opening
balance
Income
Expendit
ure
Gains
and
losses
Transfer
s
Closing
balance
£
£
£
£
£
£
588,665
693,556
(659,200)
286,712
(106,01
9)
803,714
24,451
-
-
-
18,506
42,957
-
-
-
-
87,5
13
87,513
613,116
693,556
(659,200)
286,712
-
934,184

The revaluation reserve comprises unrealised gains on the charity’s fixed assets investments portfolio. The non-distributable reserve comprises unrealised gains on certain of the charity’s investment properties.

16. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Restrict General
 Total
ed Funds
Funds
At 31 December 2022: £

THE CHRISTADELPHIAN HALL & BUILDINGS SOCIETY, BIRMINGHAM 31 DECEMBER 2022

Fixed assets: programme related
investments
Fixed assets: investments
Current assets
Creditors: amounts falling due within one
year
Total net assets
At 31 December 2021:
Fixed assets: programme related
investments
Fixed assets: investments
Current assets
Creditors: amounts falling due within one
year
Total net assets		 £
£
-
935,529
935,529
-
357,632
357,632
159,565
586,457
746,022
-
(10,179)
(10,179
)
159,565
1,869,43
9
2,029,0
04
£
£
£
-
5,808
5,808
-
305,460
305,460
166,95
4
1,173,55
9
1,340,5
13
-
(546,643
)
(546,64
3)
166,95
4
938,184
1,105,1
38

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2022

17. CONTINGENT ASSETS

– Fixed assets programme related investments: land and buildings

At 31 December 2022 the charity had been advised of 5 (2021 - 4) proposals to gift properties to the Society with a view either to leasing them back forthwith from the charity at peppercorn rents or for the charity to hold or resell.

Whilst these hall gifts seem probable and the charity can measure their value with reasonable accuracy, at 31 December 2022 aspects of legal and other due diligence were still to be completed so legal entitlement had not passed. Accordingly, these proposed gifts and leasebacks cannot be included in the Society’s 2022 income or assets. At the balance sheet date, the Trustees estimate the accounting value of these gifts to be £590,000 (2021 - £635,000). The first of these gifts, with an estimated gift value of £170,000 at 31 December 2022, was legally completed on 6 January 2023. It was subsequently sold at auction on 1 February 2023 for completion on 1 March 2023 at a price well in excess of its year end valuation. Both completion and onward sale of this property gift represent non-adjusting events after the balance sheet date.

18. CONTINGENT LIABILITIES

At 31 December 2022 the charity had issued one offer of grant funding to an ecclesia where the satisfaction of remaining conditions for the payment of loans and grants lay outside the actions of the charity. Accordingly, contingent liabilities of £30,522 (2021 - £Nil) were outstanding at the balance sheet date.

THE CHRISTADELPHIAN HALL & BUILDINGS SOCIETY, BIRMINGHAM 31 DECEMBER 2022

19. TAXATION

The company is a registered charity and as such is exempt from tax on income and gains arising from activities within its charitable objects. No tax charges have arisen in the charity.

20. RELATED PARTY TRANSACTIONS

Up until 31 December 2021 Mr Jonathan Thompson was the Managing Director of Portcullis Financial Planning Limited (“PFP”), which provides investment advisory services to the charity. During 2021 PFP received fees of £783 paid from the funds administering the charity’s fixed assets investments.

With the exception of the above fees paid to PFP, no Trustee or other person related to the charity had any personal interest in any transaction entered into by the charity other than the repayment of expenses disclosed in note 5 (2021 - Nil).