IP000107
THE IRISH METHODIST MINISTERS HOUSING SOCIETY LIMITED
COMMITTEE REPORT
AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30TH SEPTEMBER 2022
The Irish Methodist Ministers Housing Society Limited
FINANCIAL STATEMENTS FOR THE YEAR ENDING 30 SEPTEMBER 2022
| Contents | page |
|---|---|
| Members of the committee and professional advisors | 1 |
| Members of the committee annual report | 2 |
| Statement of the committee's responsibilities | 3 |
| Independent auditor's report | 4 |
| Revenue Account | 6 |
| Balance sheet | 7 |
| Notes to the financial statements | 8 |
THE IRISH METHODIST MINISTERS HOUSING SOCIETY LIMITED
FINANCIAL STATEMENTS FOR THE YEAR ENDING 30TH SEPTEMBER 2022
| Members of the Committee | Mr Thomas H Millar MBE | (Chairman) |
|---|---|---|
| Rev Dr Edmund Mawhinney | (Resigned 7 December 2021) | |
| Mr David W Best | ||
| Mr David Smyth | ||
| Mrs Margaret D Copeland | ||
| Mr Ivor Moffitt | ||
| Rev Dr Heather Morris | (Resigned 18 August 2022) | |
| Mrs Jennifer P Stutt | ||
| Mr John A F Hutchinson | ||
| Rev John M Sweeney | (Appointed 7 December 2021) | |
| Treasurer | Mr G Lester Wood | |
| Secretary | Mr David E Ferguson | |
| Company number | IP000107 | |
| Registered office | 3 Hillcrest | |
| Pond Park Road | ||
| Lisburn | ||
| BT28 3LJ | ||
| Auditors | Rogan Accountancy Limited | |
| Sketrick House | ||
| Jubilee Road | ||
| Newtownards | ||
| BT23 4YH | ||
| Bankers | Danske Bank | |
| Donegall Square West | ||
| Belfast | ||
| BT1 6JS |
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The Irish Methodist Ministers Housing Society Limited
Committee annual report year ended 30 September 2022
The members of the committee present their report and financial statements of the company for the year ended 30 September 2022.
Legal Status & Governance Arrangements
The Irish Methodist Ministers Housing Society Limited is a company limited by guarantee and is registered as a charity with the Her Majesty's Revenue and Customs (Reference Number XN45794).
The society is governed by its Memorandum and Articles of Association and it a registered charity, regulated by The Charity Commission for Northern Ireland (Registered Charity number NIC105727), and the Financial Conduct Authority. It is not for profit and is limited by guarantee.
The Board of Directors meet at least twice a year with ongoing, less formal, communications throughout the year. The Boar is further supported by sub-committees including the Executive Committee and the Applications Committee which meet as and when required. The Executive Committee is responsible for reviewing all policies and procedures and making reports and recommendations to the Board of Directors.
Directors are drawn from a wide range of backgrounds and skill sets, and may be reappointed on a three-year rotation basi
Objectives of The Irish Methodist Ministers Housing Society Limited
The company was established in order to provide housing for retired Methodist ministers and their widows, of limited means. Our portfolio currently consists of 32 properties, 28 of which are occupied by ministers and their families, three properties are let to others in the general public population. Private tenants are thoroughly assessed for reliability and affordability.
Activities During 2021/22
The company continued to provide housing for retired Methodist ministers and their widows. During the year two properties were vacated as one tenant moved into full time care and another remarried. Property repairs which were due to undergo a rolling maintenance and upgrade programme were delayed to a certain extent, due to the impact which the pandemic has had on contractors. Delays are currently being resolved. Our routine inspection of all properties is underway with reports prepared for each property.
All committee meetings were held via Zoom this year and we are delighted that our members embraced new technologies to ensure the continued effective governance and safeguarding of the Society and its activites.
Financial Controls
The members of the committee feel that there are sufficient financial controls in the company to allow it to operate effectively. The reporting requirements for each funder are maintained and controlled effectively. Financial performance is scrutinised by the Board and the external auditors. Internal controls include expenditure authorisation by two signatories. Capital is safeguarded by our Investment Policy which was approved in December 2021 and will be reviewed regularly.
Reserves Policy & Going Concern
All of the Society's funds are considered to be unrestricted within the purposes of providing housing for retired Methodist ministers and their widows as laid out in the Memorandum and Articles. Surplus' generated are taken to reserves. Based on our robust reserves policy and understanding of current market conditions and external factors, the Board has a resonable expectation that the Society has adequate resources to continue in operational existence for the foreseeable future. Therefore, the financial statements have been prepared on the going concern basis.
Risk Review
The Board of Directors have assessed the major risks to which the charity is exposed, in particular those related to the operations and finances of the company and are satisfied that systems are in place to mitigate our exposure to the major risks. Meetings of the Board have recurrent agenda items which include review of the Risk Register.
Financial Performance
The surplus for the year was £225,765. Reserves at the year end totalled £3,319,243 which is invested in a combination of properties and longer term investments.
The members of the committee
The members of the committee of the company are noted on page 1.
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The Irish Methodist Ministers Housing Society Limited Committee annual report year ended 30 September 2022
Responsibilities of the Committee
Industrial and Provident Society law requires the committee to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity at the end of the year of the incoming and outgoing resources for the year then ended.
In preparing those financial statements, the committee is required to select suitable accounting policies and then apply them consistently, making judgements and estimates that are reasonable and prudent. The commitee must also prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue its activities.
The committee is responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Co-operative and Community Benefit Societies Act (Northern Ireland) 1969.
The committee is 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.
Auditors
A resolution to reappoint Rogan Accountancy Limited as auditors of the Society will be proposed at the Annual General Meeting
Approved by the committee on: 6 December 2022
T H Millar MBE Chairman
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The Irish Methodist Ministers Housing Society Limited STATEMENT OF COMPREHENSIVE INCOME (SoCI) - INCOME AND EXPENDITURE ACCOUNT
Year ended 30 September 2022
| Notes | 2022 | 2021 | |
|---|---|---|---|
| £ | £ | ||
| Turnover | 2 | 81,684 | 80,214 |
| Operating Costs | 2 | 48,687 | 40,672 |
| Operating surplus/(deficit) | 2 | 32,997 | 39,543 |
| Interest and dividends receivable | 3 | 4,412 | 2,176 |
| Profit on disposal of fixed assets | 187,856 | - | |
| Other income | 2 | 500 | 300 |
| Surplus on ordinary activities before taxation | 225,765 | 42,019 | |
| Tax on surplus on ordinary activities | 5 | - | - |
| Surplus on ordinary activities after taxation | 225,765 | 42,019 | |
| Surplus for the year transferred to reserves | 10 | 225,765 | 42,019 |
| Opening reserves | 10 | 3,093,467 | 3,051,448 |
| Closing reserves | 10 | 3,319,232 | 3,093,467 |
| STATEMENT OF CHANGES IN EQUITY | |||
| Year ended 30 September 2022 | |||
| 2022 | 2021 | ||
| £ | £ | ||
| Revenue Reserves | |||
| Opening Reserves | 3,093,467 | 3,051,448 | |
| Surplus for the year | 225,765 | 42,019 | |
| Closing reserves | 3,319,232 | 3,093,467 | |
| Share Capital | |||
| Opening Share Capital | 14 | 14 | |
| Change in Share Capital | - | - | |
| Closing Share Capital | 14 | 14 | |
| Total Equity | 3,319,246 | 3,093,481 |
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The Irish Methodist Ministers Housing Society Limited Accounts for the year ended 30 September 2022
| STATEMENT OF FINANCIAL POSITION (SoFP) - BALANCE SHEET Note 2022 Fixed assets Tangible fixed assets 6 2,703,780 Investments 7 336,056 3,039,836 Current assets Bank 8 297,978 Debtors & Prepayments 297,978 Current liabilities Creditors and provisions 9 18,568 Loans 9 - 18,568 Net current assets/(liabilities) 279,410 Long term liabilities - Loans 9 - Net assets 3,319,246 Represented by Share capital 11 14 Reserves 10 3,319,232 3,319,246 |
2021 2,691,780 36,056 |
|---|---|
| 2,727,836 | |
| 384,385 26 |
|
| 384,411 | |
| 18,568 - |
|
| 18,568 | |
| 365,843 | |
| 200 | |
| 3,093,481 | |
| 14 3,093,467 |
|
| 3,093,481 |
___ Chairperson ___ Secretary ______ Board Member
Date: 6 December 2022
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The Irish Methodist Ministers Housing Society Limited Accounts for the year ended 30 September 2022 Notes to the accounts
Note 1 Accounting Policies
The financial statements have been prepared in accordance with the provisions of the Industrial and Provident Society legislation.
Incoming resources
Income has been recorded on a cash receipts basis. All income is considered to be unrestricted in nature to be used for the purposes of the company's overall objectives as disclosed in the committee annual report on page 2.
Expenditure
Expenditure has been recorded on a cash basis.
Tangible Fixed assets
Tangible fixed assets are recorded at their historic cost. Properties have not been depreciated since they are considered to have a long useful economic life and any depreciation charged would be immaterial. The properties are held on long leasehold. The committee undertakes an annual impairment review.
Investments
Investments have been recorded at their historic cost which is exceeded by their market value. The committee considers this treatment to be appropriate because
the investments are held as long term fixed assets with no intention to sell in the foreseeable future.
Provisions
Over the years a provision for repairs and maintenance has gradually been established to deal with any unforeseen material levels of damage to the property portfolio. No increase to the provision was deemed necessary in the current year.
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The Irish Methodist Ministers Housing Society Limited Accounts for the year ended 30 September 2022
2. Turnover, operating surplus and surplus before taxation
Income and expenditure from lettings
| Surplus | |||||||
|---|---|---|---|---|---|---|---|
| Operating | Operating |
Other | before | ||||
| Turnover | costs | surplus | income | Interest | Dividend | taxation | |
| Housing Accommodation | 81,684 | 48,687 | 32,997 | 32,997 | |||
| Other income | |||||||
| Donations and Bequests | 500 | 500 | |||||
| Interest receivable | 979 | 979 | |||||
| Dividend | 3,433 | 3,433 | |||||
| Profit on sale of assets | 187,856 | 187,856 | |||||
| Surplus/(deficit) for the year before taxation | 32,997 | 188,356 | 979 | 3,433 | 225,765 | ||
| 2022 | 2021 | ||||||
| Operating | Operating | ||||||
| Turnover | costs | Turnover | costs | ||||
| Turnover from lettings | 81,684 | 80,214 | |||||
| 81,684 | 80,214 | ||||||
| Operating costs | |||||||
| Ground Rent and Rates | 3,298 | 2,598 | |||||
| Repairs and maintenance | 26,375 | 19,516 | |||||
| Agent management expenses | 8,290 | 8,136 | |||||
| Audit fee | 1,020 | 954 | |||||
| Insurance | 8,706 | 7,713 | |||||
| Bank charge | 4 | 1 | |||||
| IT costs | 71 | 57 | |||||
| Printing, postage & stationery | - | - | |||||
| Legal and professional fees | 842 | 1,627 | |||||
| Sundries | 80 | 70 | |||||
| 48,687 | 40,672 |
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The Irish Methodist Ministers Housing Society Limited Accounts for the year ended 30 September 2022
3. Interest Receivable
| 3. Interest Receivable | ||
|---|---|---|
| Interest from investments Danske Bank current account interest Methodist Trustees Investment Fund interest Epworth Affirmative deposit fund interest |
2022 816 163 3,433 - 4,412 |
2021 549 393 1,035 199 |
| 2,176 |
4. Management emoluments and employees
There was no remuneration paid to the management committee of the Society There Society does not have paid employees. All work for the Society is performed on a voluntary basis.
5. Taxation
No provision for current or deferred taxation is necessary due to the charitable status of the Society
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The Irish Methodist Ministers Housing Society Limited Accounts for the year ended 30 September 2022 Notes to the accounts continued
6 Tangible Fixed Assets
| Land and Buildings | |
|---|---|
| Cost as at 1 October 2021 | 3,007,384 |
| Additions | 180,000 |
| Disposals | 168,000 |
| Cost as at 30 September 2022 | 3,019,384 |
| Equity shares as at 1 October 2021 | 315,604 |
| Equity shares taken in year | - |
| Equity shares as at 30 September 2022 | 315,604 |
| Cost of shares owned by company at 30 September 2022 | 2,703,780 |
7 Investments
| Investments have been carried at cost | in the balance | sheet as they are | |
|---|---|---|---|
| considered to be fixed asset investments. The investments are held primarily | |||
| to provide an investment return for the | charity. There were no additions | ||
| or disposals during the year. Market value at the year | end was £336,730. | ||
| No. Units | Cost (£) | ||
| Units held at 30 September 2021 | 27,813 | 36,056 | |
| Additions | 96,076 | 300000 | |
| Disposals | - | - | |
| Units held at 30 September 2022 | 123,889 | 336,056 | |
| **8 ** | Bank | 2022 | 2021 |
| Danske Bank Current Account | 18,454 | 5,677 | |
| Epworth Affirmative Deposit Funds | 1 | 1 | |
| Deposit Accounts | 279,523 | 378,707 | |
| 297,978 | 384,385 |
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The Irish Methodist Ministers Housing Society Limited Accounts for the year ended 30 September 2022 Notes to the accounts continued
9 Creditors
| Creditors | |
|---|---|
| Provision for repairs Balance at 1 October 2021 Increase in provision Balance at 30 September 2022 Loans due within 1 year Loans due after 1 year |
18,568 - 18,568 2022 2021 - - - 200 |
| - 200 |
10 Reserves
| Opening reserves Surplus for year Closing reserves 11 Share Capital Opening share capital Closing share capital |
3,093,467 225,765 |
|---|---|
| 3,319,232 | |
| 14 | |
| 14 |
12 Related Party Transactions
David Smyth, a member of the Committee, is a partner in MacFarlane & Smyth Estate Agents, a firm which provides professional work undertaken on behalf of the Society. Services are provided on normal commercial terms. During the year the Society paid fees totalling £8,290 to MacFarlane & Smyth Estate Agents. At the year end £nil was owed.
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The Irish Methodist Ministers Housing Society Limited Accounts for the year ended 30 September 2022
Revenue Account
Income
| Rent Methodist Trustees Investment Fund interest Epworth Affirmative deposit fund interest Danske Bank current account interest Donations Interest on deposit accounts Profit on disposal of fixed assets Expenditure Ground Rent and Rates Repairs and maintenance Agent management expenses Audit fee Insurance Bank charge Legal and professional fees Stationery and computer costs Hospitality and gifts Sundries Surplus for year transferred to reserves |
2022 81,684 3,433 - 163 500 816 187,856 274,452 2022 3,298 26,375 8,290 1,020 8,706 4 842 71 80 - 48,687 225,765 |
2021 80,214 1,035 199 393 300 549 - |
|---|---|---|
| 82,690 | ||
| 2021 2,598 19,516 8,136 954 7,713 - 1,627 57 - 70 |
||
| 40,672 | ||
| 42,019 |
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