The trustees present their annual report and financial statements for the period ended 30 June 2023.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".
Moody Bible Institute of the United Kingdom was incorporated and registered as a charitable company on 22nd March 2006 and is limited by guarantee. The governing document is the Memorandum and Articles of Association dated 22nd March 2006.
The first trustees are entitled to hold office for an initial term of five years and can offer themselves for re-election at the expiration of the term. Future trustees must be appointed by resolution of the existing trustees.
Trustees’ decisions must be passed by the majority of the trustees. Each trustee has one vote apart from the Chairman who has a casting vote.
The trustees are responsible for the administration and investment policy of the charity. The trustees meet at least annually to review the records of the charity and to assess the overall investment policy.
The charity’s objectives are the advancement of the Evangelical Christian faith worldwide in accordance with the doctrines set out in the Statement of Faith contained in the Articles of Association.
The charity commenced its activities following the transfer of funds from a trust called the Moody Bible Institute of the United Kingdom on 8th March 2007. The trustees continue the work previously carried out by the trust.
Grants and scholarships are applied to the board of trustees and applications are presented at their meetings. Decisions are then agreed upon, based on the merits of these applications, and the furtherance of the charity’s objectives.
The charity expended all of its general resources in previous financial years. It continued however to act as custodian to the Bellchambers Scholarship Fund until those resources were fully utilised. The charity is now to be wound up and removed from Charity Register. This is projected to occur in late 2023
The charity has undertaken two main activities in furtherance of its charitable objectives. One of these was to support the work of evangelism within the United Kingdom, and the other related to the sponsoring of students from the United Kingdom and overseas to study at the Moody Bible Institute of Chicago (“MBI”).
During the period the charity made no grants to UK based organisations.
Following a detailed evaluation of its work during 2010/2011, the trustees had concluded that the part of the charity’s work of sponsoring students to study at MBI could be more cost-effectively administered by setting up a formal scholarship scheme with MBI to award annual scholarships to students who were citizens and/or permanent residents of the UK, Europe, Asia, Africa or the British Commonwealth and who exhibited financial need, using normal metrics for international students studying at MBI.
The charity therefore entered into an agreement with MBI on the 29th day of December 2011, setting up the terms of the scholarship scheme, to be known as The Bellchambers Scholarship, and arranging for a lump sum of £4,460,000 to be set aside and held by Moody Bible Institute of Chicago as restricted funds and to apply the same strictly for The Bellchambers Scholarship Scheme, to the intent that the remaining sum of US $740,000 was awarded to 51 students in the period ended 31 March 2023.
Funds transferred were held by MBI separately from its own unrestricted funds. The balance of funds transferred were returnable to Moody UK in the event of a default or in the event that The Bellchambers Scholarship Scheme was not working. Moody UK continued to monitor the scheme and receive detailed reports on the progress of the students so sponsored, and had the appropriate supervisory input to ensure that the administration of the scheme was fully in accordance with the charitable purposes of Moody UK.
The outcome from the evangelism work in the UK has benefited many people.
The trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the charity’s aims and objectives.
The movement of the charity's financial resources for the period to 30th June 2023 is shown in the Statement of Financial Activities on page 7. The highlights are:
• total net expenditure of £7,887
• total expenditure of £8,007
• a general fund of £nil carried forward.
It is the policy of the charity that unrestricted funds, which have not been designated for a specific use should be maintained at a level equivalent to at least six months' expenditure. It is also the policy of the charity to invest surplus liquid funds in short-term deposits which can be accessed readily. The trustees consider sufficient reserves are available to achieve this.
The trustees, who are also the directors for the purpose of company law, and who served during the period and up to the date of signature of the financial statements were:
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
The trustees' report was approved by the Board of Trustees.
The trustees, who are also the directors of Moody Bible Institute of the United Kingdom for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
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 charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period.
In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Opinion
We have audited the financial statements of Moody Bible Institute of the United Kingdom (the ‘charity’) for the period ended 30 June 2023 which comprise the statement of financial activities, the balance sheet and the 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
Emphasis of matter
We draw attention to note 1.2 to the financial statements which explains that the trustees intend to close the charity and therefore do not consider it appropriate to adopt a going concern basis of accounting in preparing the financial statements. Accordingly, the financial statements have not been prepared on a going concern basis, as described in note 1.2. Our opinion is not modified in respect of this matter.
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 trustees 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. 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.
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 information given in the financial statements is inconsistent in any material respect with the trustees' report; or
sufficient accounting records have not been kept; or
the financial statements are not in agreement with the accounting records; or
we have not received all the information and explanations we require for our audit.
As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charity for the purpose 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 charity’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.
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
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 extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Discussions with and enquiries of management and those charged with governance were held with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity.
The following laws and regulations were identified as being of significance to the entity:
Those laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards, Company Law, Charity Law and tax legislation.
Those laws and regulations for which non-compliance may be fundamental to the operating aspects of the business and therefore may have a material effect on the financial statements include environmental regulations and health and safety legislation.
Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).
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 charity’s trustees, 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 charity's trustees those matters we are required to state to them in an auditors' 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 charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
Beavis Morgan Audit Limited is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.
Donations and legacies
Charitable activities
The statement of financial activities includes all gains and losses recognised in the period.
All income and expenditure derive from continuing activities.
Moody Bible Institute of the United Kingdom is a private company limited by guarantee incorporated in England and Wales. The registered office is Tenison House, 45 Tweedy Road, Bromley, Kent, BR1 3NF.
The financial statements have been prepared in accordance with the charity's Memorandum and Articles of Association, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP and FRS102 for small charities not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.
Under Companies Act 2006, s454, on a voluntary basis, the directors can amend these financial statements if they subsequently prove to be defective.
The trustees plan to close the charity in late 2023. Given this, it is the view of the trustees that the charity is not a going concern and, accordingly, the financial statements have been prepared on a basis other than that of the going concern basis.
All expenditure is included on an accruals basis and is recognised when there is a legal or constructive obligation to pay for expenditure. The charity is not registered for VAT and accordingly expenditure is shown gross of irrecoverable VAT. Management and administration expenses comprise costs of running the charity itself as an organisation.
Grants and donations payable are included in the Statement of Financial Activities when approved by the trustees and agreed with the receiving organisation or individual. The value of any such grants unpaid at the period-end is accrued. Grants where the beneficiary has not been informed or has to meet certain conditions before the grant is released are not accrued but are noted as financial commitments.
Cash and cash equivalents include cash in hand and deposits held at call with banks.
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including creditors are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general charitable objectives of the charity and which have not been designated for any other purpose. The charity held no restricted funds, in this period or the prior period.
Transactions in foreign currencies are translated at rates prevailing at the date of the transaction. Balances denominated in foreign currencies are translated at the rate of exchange prevailing at the period-end. All differences are taken to the Statement of Financial Activities.
The charity is a registered charity and is therefore exempt from taxation.
Donations and legacies
Charitable activities
Grants payable in the furtherance of the charity's objectives
None of the trustees (or any persons connected with them) received any remuneration during the period.
Audit fee
Accountancy fee
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
The charity is limited by guarantee and has no share capital. Every member of the charity guarantees to contribute a maximum of £1 on winding up, within one year after ceasing to be a member.
No trustee had any personal interest in any contract or transaction entered into by the charity during the period.
The ultimate controlling party is considered to be the trustees as a body.