Evangelical Housing Association Limited
Report and Financial Statements
31 December 2024
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Evangelical Housing Association Limited
REPORT AND FINANCIAL STATEMENTS 2024
| CONTENTS | Page |
|---|---|
| Legal and administrative details | 3 |
| Report of the Committee | 4 |
| Independent Auditors' report to the members | 6 |
| Income and expenditure account | 9 |
| Balance sheet | 10 |
| Notes to the financial statements | 11 |
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Evangelical Housing Association Limited
LEGAL AND ADMINISTRATIVE DETAILS
CONSTITUTION
Evangelical Housing Association Limited is registered:
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under the Co-operative and Community Benefit Societies Act 2014. The registration number is 21575R.
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with the Scottish Charity Regulator, registration number SC053267, from 9 April 2024.
COMMITTEE OF MANAGEMENT
The members of the Committee of Management who served throughout the year or as otherwise disclosed herein are as follows:
REGISTERED OFFICE
41 The Point Market Harborough LE16 7QU
BANKERS
The Co-operative Bank Kingdom Bank
AUDITORS
George Arthur Chartered Accountants & Registered Auditors Suite 6B, Wentworth Lodge Great North Road Welwyn Garden City Hertfordshire AL8 7SR
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Evangelical Housing Association Limited
REPORT OF THE COMMITTEE
Members of the Committee present their annual report and the audited financial statements for the year ended 31 December 2024.
POLICY
The chief aim of the Association is to provide accommodation for retired ministers and missionaries and other Christian workers and to offer advice and assistance to churches and other Christian organisations who have their own housing projects.
ACTIVITIES
The Association made an operating surplus after depreciation of £247,938 (2023: £58,035), and donations and legacies, for which the committee is profoundly grateful, amounted to £3,235 (2023: £2,288).
The surplus for the year of £247,938 has been added to the surplus brought forward.
The Association has no staff and operates through the voluntary contribution of time by the members of its Committee of Management. The Committee meets at least three times each year and members visit all tenants each year to ensure that the properties are maintained to a high standard. Management expenses were restricted to £13,105 (2023: £10,992) as detailed in the financial statements.
The committee agreed to bring in administration resource to assist the committee and we are very grateful that a member of staff from FIEC was seconded to help from the second half of 2023 until the end of December 2024
REVIEW OF THE YEAR AND FUTURE DEVELOPMENTS
The Committee continues to receive applications for assistance from ministers and other full-time Christian workers who are about to retire and seeks to assist them with advice, and where possible, rented accommodation.
One new property was purchased during the year and two properties was sold.
The Association has £441,672 (2023: £217,395) of cash resources at the end of the year.
The Committee anticipate that the Association’s current financial position means that it can provide another two properties in the short-term – and the first of these property purchases was completed on 9 May 2025. Beyond the provision of these two new properties, the Association will continue to endeavour to meet housing needs when they arise, but donations, grants and legacies will continue to be needed to enable this, alongside new bank borrowing. Gifts can be made through the Gift Aid scheme by those who pay income tax.
The Association registered as a charity with the Scottish Charity Regular on 9 April 2024 – so that it can provide rented accommodation in Scotland.
HOUSING SCHEMES UNDER MANAGEMENT
A total of twenty-one homes were being managed at the end of the year, as detailed in the notes to the financial statements.
COMMITTEE MEMBERS
Members of the Committee of Management shown on page 3 have served throughout the year except as otherwise disclosed therein.
was co-opted to serve on the committee on 19 September 2024 and, in accordance with the rules, was not included in “Committee Members”.
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Evangelical Housing Association Limited
REPORT OF THE COMMITTEE
RESPONSIBILITIES OF THE COMMITTEE OF MANAGEMENT
The Co-operative and Community Benefit Societies Act 2014 require the Committee of Management to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Association and of the surplus or deficit of the Association for that period. In preparing those financial statements, the Committee are required to:
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select suitable accounting policies and then apply them consistently;
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make judgements and estimates that are reasonable and prudent;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Association will continue in business.
The Committee of Management are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Association and to enable them to ensure that the financial statements comply with the Co-operative and Community Benefit Societies Act 2014. They are also responsible for safeguarding the assets of the Association and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
AUDITORS
A resolution to reappoint George Arthur as auditor will be proposed at the forthcoming Annual General Meeting.
For and on behalf of the Management Committee
Chairman
15 May 2025
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Evangelical Housing Association Limited
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF
EVANGELICAL HOUSING ASSOCIATION LIMITED
Opinion
We have audited the financial statements of the Evangelical Housing Association Limited for the year ended 31[st] December 2024 which comprise the Income and Expenditure Account, the 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:
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give a true and fair view of the state of the Association’s affairs as at 31[st] December 2024 and of its income and expenditure for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Co-operative and Community Benefit Societies Act 2014.
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 Association 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
In auditing the financial statements, we have concluded that the committee of management's 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 Association'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.
Our responsibilities and the responsibilities of the committee of management with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The committee of management are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, we do not express any form of assurance conclusion thereon.
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Evangelical Housing Association Limited
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF
EVANGELICAL HOUSING ASSOCIATION LIMITED ( continued )
Other information ( continued )
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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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 2014 requires us to report to you if, in our opinion:
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the Association 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
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the revenue account, any other accounts to which our report relates, and the balance sheet are not in agreement with the Association’s books of account; or
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we have not obtained all the information and explanations necessary for the purposes of our audit.
Responsibilities of the committee of management
As explained more fully in the committee of management’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 Association’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 Association 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.
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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below:
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Assessed the level of risk, including fraud risk, on the basis of internal controls and separation of duties and responsibilities;
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Searched the Mutuals Public Register held by the Financial Conduct Authority;
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Reviewed all minutes of meetings held by the committee of management during the year and subsequent to the year end;
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Checked disclosures in accounts as well as clerically together with testing items to supporting documentation and journal entries.
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Evangelical Housing Association Limited
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF
EVANGELICAL HOUSING ASSOCIATION LIMITED ( continued )
Auditor’s responsibilities for the audit of the financial statements (c ontinued )
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of our report
This report is made solely to the Association’s members, as a body, in accordance with section 87 of the Co-operative and Community Benefit Societies Act 2014. Our audit work has been undertaken so that we might state to the Association’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 Association and the Association’s members as a body, for our audit work, for this report, or for the opinions we have formed.
George Arthur Ltd Chartered Accountants & Registered Auditors Suite 6B, Wentworth Lodge Great North Road Welwyn Garden City Hertfordshire AL8 7SR
18-07-2025
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Evangelical Housing Association Limited
INCOME AND EXPENDITURE ACCOUNT For the year ended 31 December 2024
| Note INCOME Rents receivable Interest receivable EXPENDITURE Management expenses 7 Insurance Repairs and maintenance Interest on housing loans Other property costs Depreciation Donations and legacies OPERATING SURPLUS Profit on sale of property SURPLUS FOR THE YEAR SURPLUS at beginning of year SURPLUS at end of year |
£ 13,105 8,297 41,264 32,256 5,316 29,930 |
2024 £ 134,764 5,536 140,300 130,168 10,132 3,235 13,367 234,571 247,938 3,026,309 3,274,247 |
£ 10,992 7,335 38,977 29,091 1,285 28,990 |
2023 £ 132,861 1,369 134,230 116,670 17,560 2,288 19,848 38,187 58,035 2,968,274 3,026,309 |
|---|---|---|---|---|
The notes numbered 1 to 9 form part of the financial statements.
All of the Association's operations are classed as continuing.
The Association has no recognised gains or losses other than the surplus for the year.
There were no movements in reserves other than the surplus for the year.
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Evangelical Housing Association Limited
BALANCE SHEET As at 31 December 2024
| Note FIXED ASSETS Housing properties at cost less depreciation 3 CURRENT ASSETS Debtors Short-term deposits Cash at bank and in hand CURRENT LIABILITIES Housing loans repayable in less than one year 4 Sundry creditors NET CURRENT ASSETS EXCESS OF ASSETS OVER CURRENT LIABILITIES Creditors due in more than one year – housing loans 4 Net assets Financed by Share capital 5 Accumulated surplus |
£ 2,577 250,601 191,071 444,249 (33,258) (11,209) (44,737) |
2024 £ 3,495,921 399,512 3,895,433 (621,175) 3,274,258 11 3,274,247 3,274,258 |
£ 937 141,257 76,138 218,332 (32,940) (10,978) (43,918) |
2023 £ 3,395,658 174,414 3,570,072 (543,752) 3,026,320 11 3,026,309 3,026,320 |
|---|---|---|---|---|
The notes numbered 1 to 9 form part of the financial statements.
Signed on behalf of the Committee of Management on 15 May 2025.
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Evangelical Housing Association Limited
NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2024
1. ACCOUNTING POLICIES
Accounting convention
The financial statements are prepared under the historical cost convention and in compliance with FRS 102 ‘The Financial Reporting Standard applicable in the UK and the Republic of Ireland’. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are presented in Sterling which is the functional currency of the Association. Monetary amounts in these financial statements are rounded to the nearest £.
Donations and legacies
Donations and legacies are brought into account when received. Donations and legacies received in kind are brought into account when received at their estimated value.
Fixed assets - housing properties
Housing properties are stated at cost less depreciation. Cost includes the purchase consideration, legal fees, loan agreement costs and costs of capital improvements. Purchases and disposals of housing properties are accounted for on the date of exchange of contracts.
Depreciation
No depreciation is charged on freehold land. Depreciation is calculated on each individual freehold property from the date of first occupation of such property by the Association’s tenant on the straight line basis calculated to write off the total cost of purchase and subsequent improvements over the remainder of each property’s useful economic life of 150 years from the date that the property was built. This calculation results in rates between 0.60% to 1.20%.
2. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
In the application of the Association’s accounting policies, the Committee of Management 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 associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
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Evangelical Housing Association Limited
NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2024
3. HOUSING PROPERTIES
| COST Date of purchase Coton Green Tamworth July 1998 Lancing, West Sussex Feb 1999 Moreton, Wirral Oct 2001 Trelawnyd Sept 2002 Sompting, Lancing Nov 2004 Whitehill, Bordon July 2005 Stowmarket, Suffolk May 2007 St Kentigerns, Aspatria June 2007 Melksham, Wiltshire July 2010 Halesworth, Suffolk July 2011 Evesham Wantage, Oxfordshire Jun 2012 Dec 2013 Danesmoor, Chesterfield Feb 2015 Bridgend, Mid Glamorgan Paignton, Devon Aug 2016 Oct 2016 Wem, Shropshire Nov 2018 Callington, Cornwall Feb 2020 Rugby, Warwickshire Apr 2020 Bridgend, Mid Glamorgan Ipswich, Suffolk Jul 2021 Aug 2022 Birmingham Jan 2023 Swindon, Wiltshire Dec 2023 Edinburgh, Scotland Jun 2024 Cost At 1 January Additions in the year Disposals in the year At 31 December Depreciation At 1 January Charged in the year Eliminated on disposals At 31 December Written down value |
Opening balance £ 69,100 83,956 82,880 71,019 189,922 165,034 171,027 150,916 150,641 159,012 157,213 186,842 100,183 151,429 185,168 226,640 193,223 186,941 171,911 237,339 305,148 271,714 - 3,667,258 |
Costs/ (disposals) in year £ - - (82,880) (71,019) - - - - - - - - - - - - - - - 174 - 13,818 241,760 101,853 2024 £ 3,667,258 255,752 (153,899) 3,769,111 271,600 29,930 (28,340) 273,190 3,495,921 |
Closing balance £ 69,100 83,956 - - 189,922 165,034 171,027 150,916 150,641 159,012 157,213 186,842 100,183 151,429 185,168 226,640 193,223 186,941 171,911 237,513 305,149 285,532 241,760 3,769,111 2023 £ 3,350,188 576,862 (259,792) 3,667,258 255,730 28,990 (13,120) 271,600 3,395,658 |
|---|---|---|---|
In the opinion of the Committee of Management, the open market value of housing properties at 31 December 2024 was £5,008,000 (2023: £4,888,000).
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Evangelical Housing Association Limited
NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2024
4. CREDITORS DUE IN MORE THAN ONE YEAR - HOUSING LOANS
| Bank loans secured by charge on properties and repayable by instalments Unsecured loans from charities Other unsecured loans Less: repayable in less than one year |
2024 £ 409,703 80,000 165,000 654,703 33,528 621,175 |
2023 £ 446,692 80,000 50,000 576,692 32,940 543,752 |
|---|---|---|
The secured bank loans referred to above are repayable over terms ranging from 5 months to 28 years with interest rates charged thereon ranging between 1.25% to 3.25% above the Bank of England base rate.
An unsecured loan from a charity amounting to £80,000 is repayable upon sale of the property in Swindon. The amount repayable is 29.6% of the net sale proceeds.
An unsecured loan of £50,000 is repayable upon sale of the property in Birmingham. The amount repayable is based on the loan of £50,000 plus £7,000 spent on improvements by the lender and is 18.4% of the net sale proceeds, less a deduction for 18.4% of the maintenance costs since purchase.
A new unsecured loan of £115,000 is repayable upon the sales of the property in Edinburgh. The amount repayable is 47.6% of the net sale proceeds.
5. SHARE CAPITAL
| SHARE CAPITAL | ||
|---|---|---|
| 2024 | 2023 | |
| £ | £ | |
| Shares of £1 each fully paid and issued | ||
| at the beginning and end of the year | 11 | 11 |
6. PAYMENTS TO OFFICERS AND COMMITTEE MEMBERS
No remuneration, gifts or benefits have been paid or provided to honorary officers. During the year, the Association reimbursed Committee Members’ expenses amounting to £2,248 (2023: £2,023).
7. MANAGEMENT EXPENSES
| Publicity Printing, postage and stationery Meeting expenses Administration resource Auditors’ remuneration Legal fees Contribution to Affinity Bank charges Travel and motor expenses Mobile phone |
2024 £ 56 281 - 5,774 2,400 1,466 180 269 2,493 186 13,105 |
2023 £ 57 87 - 1,342 2,880 3,798 182 334 2,312 - 10,992 |
|---|---|---|
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Evangelical Housing Association Limited
NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2024
8. CAPITAL COMMITMENTS
At the year-end, the Committee had not contracted to purchase any properties (2023: nil) and had authorised property improvements amounting to £nil (2023: £nil).
9. POST BALANCE SHEET EVENTS
A property purchase in Bristol was completed on 9 May 2025 for £325,000 plus costs, funded by an unsecured £100,000 loan and the balance from our cash resources.
The Committee agreed at its February 2025 meeting not to refinance one of its loans with the Cooperative Bank and this loan was repaid on 22 April 2025 – the amount repaid was £113,754.
10. MEMBERS
| Members at start of year Members admitted during the year Members ceased during the year Members at end of year |
2024 No. 11 - - 11 |
2023 No. 10 1 - 11 |
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