IP000107
THE IRISH METHODIST MINISTERS HOUSING SOCIETY LIMITED
COMMITTEE REPORT
AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30TH SEPTEMBER 2023
The Irish Methodist Ministers Housing Society Limited FINANCIAL STATEMENTS FOR THE YEAR ENDING 30 SEPTEMBER 2023
| 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 | 7 |
| Balance sheet | 8 |
| Notes to the financial statements | 9 |
The Irish Methodist Ministers Housing Society Limited
FINANCIAL STATEMENTS FOR THE YEAR ENDING 30TH SEPTEMBER 2023
Members of the Committee Mr Thomas H Millar MBE (Chairman) Mr David W Best Mr David Smyth Mrs Margaret D Copeland Mr Ivor Moffitt Mr Thomas G Fitzpatrick (Appointed 6 December 2022) Mrs Jennifer P Stutt Mr John A F Hutchinson Rev John M Sweeney Mr David E Ferguson Treasurer Mr G Lester Wood Secretary Mr Ivor Moffitt 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
1
The Irish Methodist Ministers Housing Society Limited
COMMITTEE ANNUAL REPORT YEAR ENDED 30 SEPTEMBER 2023
The members of the committee present their report and financial statements of the company for the year ended 30 September 2023.
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 twice a year with ongoing, less formal, communications throughout the year. The Board 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 are reappointed on a three-year rotation basis
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 31 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 2022/23
The company continued to provide housing for retired Methodist ministers and their widows. During the year three properties were vacated and one purchased. 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. However, during the year, normal repairs on the property portfolio resumed. 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 are 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 £335,736. Capital value at the year end totalled £3,654,982 consisting of £14 share capital and £3,654,968 in revenue 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.
2
The Irish Methodist Ministers Housing Society Limited
COMMITTEE ANNUAL REPORT YEAR ENDED 30 SEPTEMBER 2023
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 basisunless 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: 5 December 2023
T H Millar MBE Chairman
3
Independent auditor's report to the members of The Irish Methodist Ministers Housing Society Limited for the year ended 30 September 2023
OPINION
We have audited the financial statements of The Irish Methodist Ministers Housing Society Limited (“the Society”) for the year ended 30[th] September 2023 which comprise the Revenue Account, 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).
This report is made solely to the Society’s members, as a body. Our audit work has been undertaken so that we might state to the Society’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 accept or assume responsibility to anyone other than the Society and the Society’s members as a body, for our audit work, for this report, or for the opinions we have formed.
In our opinion the financial statements:
-
give a true and fair view of the state of the Society’s affairs as at 30[th] September 2023 and of its income and expenditure for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
have been prepared in accordance with the requirements of the Co-operative and Community Benefit Societies Act (Northern Ireland) 1969 (previously the Industrial and Provident Societies Act (Northern Ireland) 1969).
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 society 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 the provisions available for small entities 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
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
-
the committee’s use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
-
the committee has not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the Society’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
4
Independent auditor's report to the members of The Irish Methodist Ministers Housing Society Limited for the year ended 30 September 2023
The committee is responsible for the other information. The other information comprises the information included in the 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 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.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Co-operative and Community Benefit Societies Act (Northern Ireland) 1969 (previously the Industrial and Provident Societies Act (Northern Ireland) 1969) requires us to report to you if, in our opinion:
-
the Society has not kept proper books of account, and not maintained a satisfactory system of control over its transactions, in accordance with the requirements of the legislation; or
-
the revenue account, any other accounts to which our report relates, and the balance sheet are not in agreement with the Society’s books of account; or
-
we have not obtained all the information and explanations necessary for the purposes of our audit.
Responsibilities of the Committee
As explained more fully in the committee’s responsibilities statement set out on page 3, the committee of management is 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 it determines 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 committee of management is responsible for assessing the Society’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 committee of management either intends to liquidate the Society or to cease operations, or has no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
5
Independent auditor's report to the members of The Irish Methodist Ministers Housing Society Limited for the year ended 30 September 2023
-
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
-
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but, except to the extent otherwise explicitly stated in our report, not for the purpose of expressing an opinion on the effectiveness of the Society’s internal control.
-
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the committee of management.
-
Conclude on the appropriateness of the committee of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Society’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Society to cease to continue as a going concern.
-
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Imelda Rogan FCA
Senior Statutory Auditor for and on behalf of Rogan Accountancy Chartered Accountants Newtownards
- 5[th] December 2023
6
The Irish Methodist Ministers Housing Society Limited
STATEMENT OF COMPREHENSIVE INCOME (SoCI) - INCOME AND EXPENDITURE ACCOUNT
| Year ended 30 September 2023 Notes Turnover 2 Operating Costs 2 Operating surplus/(deficit) 2 Interest and dividends receivable 3 Profit on disposal of fixed assets Other income 2 Surplus on ordinary activities before taxation Tax on surplus on ordinary activities 5 Surplus on ordinary activities after taxation 10 Opening reserves 10 Closing reserves 10 Surplus for the year transferred to reserves |
2023 £ 77,741 61,288 16,453 18,041 250,942 50,300 335,736 - 335,736 335,736 3,319,232 3,654,968 |
2022 £ 81,684 48,687 32,997 4,412 187,856 500 225,765 - 225,765 225,765 3,093,467 3,319,232 |
|---|---|---|
| STATEMENT OF CHANGES IN EQUITY Year ended 30 September 2023 Revenue Reserves Opening Reserves Surplus for the year Closing reserves Share Capital Opening Share Capital Change in Share Capital Closing Share Capital Total Equity |
2023 £ 3,319,232 335,736 3,654,968 14 - 14 3,654,982 |
2022 £ 3,093,467 225,765 3,319,232 14 - 14 3,319,246 |
|---|---|---|
7
FINANCIAL STATEMENTS FOR THE YEAR ENDING 30TH SEPTEMBER 2023
The Irish Methodist Ministers Housing Society Limited
STATEMENT OF FINANCIAL POSITION (SoFP) - BALANCE SHEET
| Notes Fixed assets Tangible fixed assets 6 Investments 7 Current assets Bank 8 Debtors & Prepayments Current liabilities Creditors and provisions 9 Loans 9 Net current assets/(liabilities) Long term liabilities Loans 9 Net assets Represented by Share capital 11 Reserves 10 |
2023 £ 2,625,605 336,056 2,961,661 710,886 1,004 711,890 18,568 - 18,568 693,322 - - 3,654,982 14 3,654,968 3,654,982 |
2022 £ 2,703,780 336,056 3,039,836 297,978 - 297,978 18,568 - 18,568 279,410 - - 3,319,246 14 3,319,232 3,319,246 |
|---|---|---|
----- Start of picture text -----
___ Chairperson
Mr T H Millar MBE
___ Secretary
Mr I Moffitt
______ Board Member
Mr L Wood
Date: 5 December 2023
----- End of picture text -----
8
The Irish Methodist Ministers Housing Society Limited
ACCOUNTS FOR THE YEAR ENDED 30 SEPTEMBER 2023
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.
9
The Irish Methodist Ministers Housing Society Limited
ACCOUNTS FOR THE YEAR ENDED 30 SEPTEMBER 2023
Note 2 Turnover, operating surplus and surplus before taxation
Income and expenditure from lettings
| Turnover £ Housing Accommodation 77,741 Other income Donations and Bequests Interest receivable Dividend Profit on sale of assets |
Operating costs £ 61,288 |
Operating surplus £ 16,453 |
Other income Interest £ £ 50,300 9,183 250,942 |
Dividend £ 8,858 |
Surplus before £ 16,453 50,300 9,183 8,858 250,942 |
|---|---|---|---|---|---|
| Surplus/(deficit) for the year before taxation | 16,453 | 301,242 9,183 |
8,858 | 335,736 | |
| Turnover from lettings | 2023 Turnover £ 77,741 |
Operating costs £ |
2022 Turnover £ 81,684 |
Operating costs £ |
|
| 77,741 | 81,684 | ||||
| Operating costs Ground Rent and Rates Repairs and maintenance Agent management expenses Audit fee Insurance Bank charge IT costs Printing, postage & stationery Legal and professional fees Sundries |
4,144 35,591 7,872 1,020 8,815 9 92 - 957 2,787 |
3,298 26,375 8,290 1,020 8,706 4 71 - 842 80 |
|||
| 61,288 | 48,687 |
10
The Irish Methodist Ministers Housing Society Limited
ACCOUNTS FOR THE YEAR ENDED 30 SEPTEMBER 2023
Note 3 Interest Receivable
| Interest from investments Danske Bank current account interest Methodist Trustees Investment Fund interest Epworth Affirmative deposit fund interest |
2023 £ 3,262 317 8,858 5,604 18,041 |
2022 £ 816 163 3,433 - 4,412 |
|---|---|---|
Notes 4 Management emoluments and employees
There was no remuneration paid to the management committee of the Society The Society does not have paid employees. All work for the Society performed by Board members in their personal capacity is performed on a voluntary basis.
Notes 5 Taxation
No provision for current or deferred taxation is necessary due to the charitable status of the Society
11
The Irish Methodist Ministers Housing Society Limited
ACCOUNTS FOR THE YEAR ENDED 30 SEPTEMBER 2023
Notes to the accounts continued
Notes 6 Tangible Fixed Assets
Land and Buildings
----- Start of picture text -----
|||
|---|---|
|£|
|Cost as at 1 October 2022|3,019,384|
|Additions|185,000|
|Disposals|243,800|
|Cost as at 30 September 2023|2,960,584|
|Equity shares as at 1 October 2022|315,604|
|Equity shares taken in year|37,000|
|Equity shares returned in year|17,625|
|Equity shares as at 30 September 2023|334,979|
|Cost of shares owned by company at 30 September 2023|2,625,605|
----- End of picture text -----
Investments
----- Start of picture text -----
||||
|---|---|---|
|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 £347,175|
|No. Units|Cost (£)|
|Units held at 30 September 2022|123,889|336,056|
|Additions|-|-|
|Disposals|-|-|
|Units held at 30 September 2023|123,889|336,056|
|Bank|2023|2022|
|Danske Bank Current Account|18,524|18,454|
|Epworth Affirmative Deposit Funds|349,576|1|
|Deposit Accounts|342,786|279,523|
|710,886|297,978|
----- End of picture text -----
12
The Irish Methodist Ministers Housing Society Limited
ACCOUNTS FOR THE YEAR ENDED 30 SEPTEMBER 2023
----- Start of picture text -----
Notes to the accounts continued
Notes 9 Creditors
Provision for repairs
£
Balance at 1 October 2022 18,568
Increase in provision -
Balance at 30 September 2023 18,568
Notes 10 Reserves
Opening reserves 3,319,232
Surplus for year 335,736
Closing reserves 3,654,968
Notes 11 Share Capital
Opening share capital 14
Closing share capital 14
----- End of picture text -----
Notes 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 £7,872 to MacFarlane & Smyth Estate Agents. At the year end £nil was owed.
13
The Irish Methodist Ministers Housing Society Limited
ACCOUNTS FOR THE YEAR ENDED 30 SEPTEMBER 2023
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 |
2023 £ 77,741 8,858 5,604 317 50,300 3,262 250,942 397,024 2023 £ 4,144 35,591 7,872 1,020 8,815 9 957 92 35 2,752 61,288 335,736 |
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 |
|---|---|---|
14