OMF INTERNATIONAL (UK) · OMF International (UK) (“OMF UK”) was incorporated as a company...

OMF INTERNATIONAL (UK)

Registered charity

England & Wales: number 1123973 Scotland: SCO39645

Company limited by guarantee

England & Wales: number 6541911

Report and financial statements For the year ended 31 December 2015

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Trustees’ Annual Report For the year ended 31 December 2015

Contents Pages

Trustees’ Annual Report 2 - 13

Independent Auditor’s Report 14 - 15

Statement of Financial Activities 16

Balance Sheet 17

Cashflow 18

Notes to the Financial Statements 19 - 29

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REFERENCE AND ADMINISTRATIVE DETAILS

Governing document: Memorandum & Articles (Dated 28 February 2014)

Charity Number: 1123973 (England & Wales)

SCO39645 (Scotland) Company Number: 6541911 (England & Wales)

Trustees: J. E. Baldock (resigned 17 May 2016)

S. M. Belstead

S. C. Biden S. L. Byun

O. A. Ngundu R. J. Porter

M. J. Rutty (appointed Chairman 17 May 2016) M. J. Stone

P. Fleming (appointed 8 September 2015)

G. T. Featherstone (appointed 8 March 2016)

National Directors P. & C. Rowan

National & Registered Office:

Station Approach Borough Green

Sevenoaks Kent TN15 8BG

Auditor: Moore Stephens LLP 150 Aldersgate Street

London EC1A 4AB

Bankers: National Westminster Bank plc 7th Floor

280 Bishopsgate

London EC2M 4RB

Solicitors: Wellers LLP Tenison House

45 Tweedy Road

Bromley BR1 3NF

MB Solicitors Limited Studio J

The Quays Concordia Street

Leeds LS1 4ES

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Introduction

The trustees are pleased to present their report together with the audited financial statements for the year ended 31 December 2015.

The reference and administrative details set out on page 2 form part of this report.

The financial statements comply with current statutory requirements and the Charities Statement of Recommended Practice (Financial Reporting Standard 102) effective from 1 January 2015.

Structure, Governance, and Management

OMF International (UK) (“OMF UK”) was incorporated as a company limited by guarantee having no share capital on 20 March 2008 and was registered as a charitable company in England & Wales on 7 May 2008,

and in Scotland on 11 June 2008. During the period 20 March 2008 to 31 March 2009 the entity was dormant. At the close of business on 31 March 2009 the undertakings, assets and liabilities of the

unincorporated body known as OMF International (UK) (charity number 1086040) were transferred to this

charitable company. The charitable company began to operate on 1 April 2009.

We understand the importance of having an effective Board and trustees, who are all evangelical Christians in full agreement with the doctrinal basis and ethos of the organisation and are carefully selected on the

basis of their skills and expertise. Trustees serve for a maximum of three concurrent terms of three years.

New trustees undertake a process of induction to give them a sound understanding of OMF UK and its work.

They are able to attend conferences, to meet personnel at their work, and to attend meetings with various members of the Leadership Team. Each trustee is linked with a particular aspect of the OMF UK’s work.

The trustees meet at least four times a year, including a day in the National Office in Borough Green, Kent. The trustees delegate day-to-day management of OMF UK to the National Directors and the Leadership

Team. The trustees delegate the detailed scrutiny of budgets and annual accounts to the Audit and Finance Committee, which meets five times a year and is composed of representative trustees and other suitably

qualified persons. The National Directors and Leadership Team, in common with all other members of OMF UK serving in UK (the term ‘members’ is used throughout this document for those serving as missionaries,

only being used in the sense of company law ‘members’ in Note 21, where this more normal use of the term

is clearly indicated), are remunerated for the services they provide through the payment of general living allowances; the same level of allowances is paid to all members using needs based allowance levels which

are reviewed on an annual basis by the trustees.

OMF UK is a member body of OMF International, formerly the Overseas Missionary Fellowship, an inter-

denominational evangelical Christian organisation which is united by common aims and values set out by James Hudson Taylor, the founder of the China Inland Mission, and the organisation is committed to taking

the Good News of Jesus Christ in all its fullness to the countries and peoples of East Asia. OMF International succeeded the China Inland Mission after that organisation ceased to operate in China in 1951.

The international organisation has been restructured over the past year and the Joint Ministries Agreement

which previously governed the working relationship of the organisational units of OMF International has

been replaced by a Covenantal Agreement to which all legal entities linked to OMF International, including OMF UK, are signatories. This agreement, sets out the commonly agreed principles, practices and

responsibilities shared by those different entities, whilst ensuring the autonomy and separate legal responsibilities of each unit.

OMF UK co-operates with other Christian agencies in the pursuit of its mission, both directly and through

Global Connections, an inter-mission organisation which seeks to develop common understanding and approaches to key issues in Christian mission.

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Lammermuir Limited owns a number of properties which, under its principal object, the advancement of the Christian faith worldwide, it provides rent free to OMF UK. The notional value of this rental is included as

general income and support category expenditure. OMF UK provides accounting services to Lammermuir Limited.

The trustees recognise their responsibility for the management of risk. Together with the Leadership Team they have carefully considered the major risks facing the charity. They have reviewed and updated their risk

register which prioritises all recognised risks and identifies the mitigating factors, systems and controls in relation to each risk. The trustees have also ensured that there is a comprehensible monitoring and review

process in place to capture new risks as they may arise and that systems are in place to manage these. As

part of this process the Charity Commission Internal Financial Controls Checklist for Charities (CC8) is completed on an annual basis. The Leadership Team reports to the trustees regularly on all these matters.

A significant risk to the organisation is currently perceived to be the effect of changes within the Church

both in UK and East Asia. In UK, churches have more options for engaging directly in cross-cultural mission, to the point that the once essential role of mission organisations to facilitate this has declined. In

addition, as the Church in East Asia strengthens, there is less demand for UK missionaries in traditional roles

and those sent from UK often need to be trained to fill specific vacancies such as education or social welfare roles. The ramifications of this led to the organisation reviewing its fundamental operating model which has

remained in place since its inception in 1865; although the review process commenced in 2015, it will not be completed, with associated outcomes starting to be implemented, until later in 2016. In this regard, the

organisation is seeking to mitigate these risks by prioritising structures and processes to ensure that faithful

relationships of service to the UK Church are prioritised and appropriately resourced. As part of this intention, the organisation is considering how to engage relevantly with a younger generation, both in terms

of the opportunities for involvement presented to it and how these are communicated.

The organisation is currently managing a legal claim against it, for which a provision of £200k has been

made, as detailed in the notes to the accounts.

The objectives and activities in the next section of this report are the organisation’s responses to these risks as well as the opportunities being presented.

Objectives and Activities

We have referred to the Charity Commission’s general guidance on public benefit when reviewing our aims and objectives and in planning our activities.

The objects of OMF UK are:

The advancement of the Christian faith worldwide The advancement of education according to Christian principles

The mission statement of OMF UK is to glorify God by serving the UK Church as a catalyst for cross cultural mission with special focus on the peoples of East Asia.

As already indicated, within the UK, OMF UK puts local churches at the heart of its mission, channelling

resources towards informing, empowering, equipping and supporting churches to engage in world mission

with a special focus on East Asia’s unreached peoples. OMF UK works together with the local church in selecting and allocating personnel to work with East Asia’s churches and amongst its peoples, engaging in

pastoral, teaching, leadership training, discipleship, resourcing and evangelistic ministries. In addition, OMF UK members are involved in various aspects of development in communities as well as providing support

ministries in areas such as counselling. The public benefit of this is through enhancing the physical, mental and spiritual well-being of the East Asian beneficiaries which also leads to positive transformational

development within communities. Furthermore, significant public benefit is derived by the UK Church as

OMF UK’s service to it facilitates its own advancement in the Christian faith as it benefits from a more

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informed, intentional and committed engagement in God’s mission; the experience of OMF UK in this area over 150 years facilitates the employment of sound theological and missiological principles in these regards.

The longer term objectives of the charity seek to serve the UK Church not only in facilitating the sending of

missionaries, but also in engendering a broader understanding and commitment to cross cultural mission in

prayer, resourcing and pastoral support of missionaries according to sound Biblical principles, whilst also engaging in direct partnerships of service with the East Asian Church and ministry to East Asians in their

own locality. These objectives need to be worked out in a changing UK Church context where the ways of engaging with an organisation like OMF UK increasingly include electronic and social media platforms, whilst

the means of financing the organisation’s operation are expected to come through more gifts supporting

specific members (these are normally allocated in accordance with the donor’s desire whilst OMF UK retains the right to apply them for other higher priority needs, sharing being a core value of OMF International) as

opposed to general giving to the organisation.

The shorter term objectives required to drive achievement of the longer term objectives are the development of a UK wide network of member representatives and volunteers to engage with the UK

Church, developing genuine and faithful ministry relationships in the process; the organisation is grappling

with the challenge of serving both an older generation which relates to the organisation in ways largely unchanged for 150 years, as well as a younger generation which seeks to do this in a very different way. In

addition, the review commenced in 2015 has identified the need for a strengthening of resources committed to providing pastoral support for missionaries whilst they are in UK, alongside that which can be provided by

the local UK Church; this will probably require further personnel in the Member Care Department. A further

significant objective which feeds directly into the realisation of the longer term objectives is the intention to better integrate and utilise the giftings and experience of those retiring or resigning from service with OMF

UK in serving the UK Church. Whilst the financial pressure on the organisation in 2010 has not recurred in the last 5 years, there is an ongoing need for reduced dependence on legacy and General Fund income for

the support of missionaries, which requires more missionaries to reach and maintain their personal support

levels above the minimum levels required by current policy.

The main activities and strategies employed to achieve the objectives are:

An operation overseen and supported from the National Office in Borough Green, led by the

National Directors in a Leadership Team of director members responsible for the main functional departments; they are supported by skilled, salaried staff, interns and volunteers.

The full financial sponsorship and responsible oversight of workers amongst East Asians, ensuring

that effective and appropriate ministry direction, pastoral concern and other support structures are

provided in the fields of ministry, meeting their necessary life and ministry requirements. Financial

sponsorship is being achieved through members requiring minimum pledged financial support commitments prior to their departing for field ministries, a policy which is intended to reduce

dependence on general and legacy income over the medium term period ahead.

A flexible network of area representatives and volunteers partnering and serving the UK Church in its

engagement in God’s mission; a major strategic initiative, Bridge Asia, focusing on the intentional

recruitment and training of volunteers to join this network entered its third year during 2015. OMF members returning from overseas fields of service for home assignments also work as part of this

network. This network of area representatives is the primary face of OMF to the Christian public in UK, engaging with individuals and the Church through conferences, direct invitations, new enquiries

or existing relationships. The ministry of engagement with the Christian public is also facilitated

through a web portal enabling those interested in opportunities with OMF UK to register and meet with a representative for discussion about avenues of service. The area representatives are

responsible for identifying and supporting the Bridge Asia volunteer teams which serve in their area with the vision to see more prayer groups formed, more Christians challenged to serve amongst East

Asians and others equipped to serve in other ways the Lord has for them.

The Communications Department serves the UK Church and its members by providing materials and

communication channels that enable them to engage in world mission, with a particular focus on

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sharing the Good News of Jesus Christ in all its fullness with East Asia’s people, be it through prayer, giving, going, sending, learning or engaging in local cross cultural opportunities. It seeks to enable

this mission involvement through organising OMF led events, attendance at third party Christian conferences and printed or web based materials targeting the specific needs of those engaging in

cross cultural mission in various ways, including video and social media.

The Candidate Department is administered from the National Office, supported by volunteer area

ministry teams working together with the local church to ensure effective screening & resourcing of

long-term workers amongst East Asians. The team seeks to prepare candidates so that they remain effective and healthy, reducing unnecessary attrition. Several times a year, the Candidate

Department also runs European Candidate Introduction Courses, a local orientation to life and

ministries with OMF for missionaries from Europe.

A short term missions department (Serve Asia) administered from National Office, supported by

area representatives and volunteers, working with the local church ensures effective screening and

resourcing of short term workers amongst East Asians. In addition, this team seeks to engage Christians in God’s mission through the provision of day/weekend conferences and mission cells (a

group meeting with a specific focus on serving and supporting mission amongst East Asians). A

particular focus is given to journeying with and discipling alumni from short term mission trips. The investment in the Serve Asia programme is a key way for those joining it to experience authentic

community with God’s people worldwide and to gain a vision to be further involved in God’s mission.

A Member Care Department working with effectively resourced volunteer area ministry teams

ensuring high levels of engagement with members to ensure they and their families return to their areas of ministry well supported by OMF UK; the Member Care Department also provides resources

to both members and churches to help facilitate this. Support is also provided for retired members

in partnership with the local church as well as the adult children of missionaries (TCKs) who have served with OMF.

OMF UK’s identified core values with respect to undertaking activities and strategies are:

depending on God in prayer; seeking general and personal income through prayer and the responsive provision of information

while not appealing for funds; keeping the priority of long term mission and the biblical basis for mission before the Christian

public;

aiming to maintain high standards; maintaining value and integrity in relationships; and

continuing to be a learning organisation.

The criteria used to measure success in the achievement of these objectives are firstly the numbers of fully

supported members serving OMF UK with full sending church involvement in the areas of prayer, finance and pastoral support as a minimum; these members have necessarily been required to go through a

thorough screening process to ensure their suitability and resilience to operate in a demanding mission context. Secondly, achievement of these objectives will be assessed in terms of the number of

appropriately equipped and supported Area Representatives, together with volunteers, engaging in mobilisation, candidate and member care activities on behalf of OMF UK amongst the UK Church. Finally,

the cost of the UK operation will need to remain within strict financial constraints. The financial support

policy detailed earlier in this section has led to a trend towards the support of members increasing; we expect that this trend will be maintained, ensuring that the cost of serving the UK Church and sending

missionaries will be covered by the levels of income received. .

Achievements & Performance

2015 was the 150th Anniversary of the founding of OMF UK’s predecessor organisation, the China Inland

Mission; this anniversary presented many opportunities to run special events, facilitating opportunities for OMF UK to serve the UK Church.

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Member Summary

At the end of 2015, OMF UK had a total of 172 sponsored mission workers (known as members of the

organisation) living overseas in 13 different countries of East Asia. Their work varies widely but they are all contributing alongside local churches. In addition there were 16 members in the UK, working as part of the

Diaspora Returnee Ministries Field, reaching East Asians who expect to return to their native countries. During 2015 OMF UK also supported 3 couples working in theological education in the UK. The organisation

is led by 6 members operating from the National Office in Borough Green, Kent. In addition, within the UK there were also 14 members serving in mobilisation roles. A further 5 members were serving in roles within

member care, Serve Asia and creation care, as well as 13 members on administrative leave of absence.

During 2015, there were 5 members who retired and a further 7 members who resigned. The main reasons

for the resignations were members looking to continue in ministries that could be better achieved within a different organisation. The reduction in member numbers is part of a broader trend seen across

organisations in the same sector as OMF UK, an issue highlighted in the risks mentioned earlier and seeking

to be mitigated by the strategies being employed.

Candidates

During 2015 there were 9 new applications to join OMF. Some of these applicants went on to join the group

of 8 people in total who became new members at the Orientation Course in Singapore and then moved onto their OMF field centre.

A European Candidates Introduction Courses was held in June serving candidates from the UK, the Netherlands, and Germany. Two European Candidates Introduction Courses were cancelled, as the number

of potential attendees was too low to make the courses viable.

The Director for Candidates also made a visit to the OMF International Centre in Singapore and joined a field

conference to increase the connection between the Candidates Department and the OMF fields.

Nine applications did not proceed to membership and were withdrawn. Reasons for withdrawal included sensing a need to stay in the UK, medical, personal reasons, as well as a couple who went with a different

agency.

No Associates (those initially committing for 1-3 years) transferred to Member status with OMF UK this year.

One final challenge to note for the Department was the departure in December 2015 of the very experienced Director for Candidates who had been in the role for 5 years. A replacement couple, who have served with

OMF in Asia for 7 years have taken on this role, initially in a part time capacity (3 days a week for the first half of 2016). This arrangement is to be reviewed mid-2016.

Area Mobilisers (Representatives) & Bridge Asia

The opportunity presented by the 150th Anniversary celebrations provided us with more than the normal number of events, and enabled us to be able to raise the profile of OMF UK in a number of previously

unconnected churches; twelve new churches were involved in hosting special anniversary events. Altogether

the mobiliser and volunteer team put on 23 specific 150th Anniversary related events, not including the particular focus given at national exhibitions such as the National Swanwick Conference (430 people

attended the last annual conference), Keswick Convention, GoFest and the Bangor Convention. The two visits of both James Hudson Taylor IV, and Dr Patrick Fung (our General Director) also increased our profile

in the Christian community during this past year. We operated with a full team of 13 mobilisers for 6 months of the year, but by the end of 2015 we again had vacancies in three of our seven Areas.

The mobiliser network continued to challenge the Christian public to engage in at least one of the 6 ways of mission – learning, praying, sending, going, welcoming and mobilising – through attendance at major

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mission conferences around the UK, invitations to churches and responses to enquiries made through the web portal. In addition, the Bridge Asia National Coordinator (based in the National Office) and area

mobilisers continued to develop the Bridge Asia volunteer mobilisation ministry, with the numbers of volunteers growing to 21 by the year end.

The 2015/6 Review has resulted in a number of significant changes to the mobiliser network, not least being an adjustment to the Area Mobiliser role, renaming it Area Representative, and re-crafting the role to

emphasise the importance of being the first point of contact for the Christian community in a given Area. The Areas have been adjusted to reflect UK populations, increasing the size of the team working in London

and the South East from 2.5 in 2015 to 3.5, plus a part time Volunteer in 2016.

Communications

During 2015, the OMF UK Communications Team led the OMF International Media project “Our Story

Begins”, an animated piece following the history of OMF International from its inception as the China

Inland Mission in 1865 to our ongoing aim of proclaiming Jesus Christ to the unreached of East Asia. This quickly became the most watched OMF International video production to date and was

translated into multiple languages for use across the world. The English version had over 12000

online views during 2015.

The anniversary year provided a significant opportunity to cover historical elements of OMF

International in the Billions magazine, highlighting pivotal moments and shedding light on some of the men and women God has used over the past 150 years. In addition, the team also produced a

series of six Bible studies exploring mission themes in the Bible, with 2 studies being distributed with

each Billions magazine edition. These were widely well received and have proved popular enough for us to investigate producing a more substantial publication and to continue to produce a supplement

to be included in the Billions magazine in 2016 and 2017; these will be mobilisation features exploring various opportunities for serving in Asia.

2015 saw the introduction of new international branding for OMF International, with a new logo,

fonts, strapline and mission statement all being introduced. In the later part of the year the OMF UK

Communications Team worked on the implementation of this branding to OMF UK materials. The

core of our materials were redeveloped, ready for use from 1 January 2016.

2015 also saw the beginning of a big change in OMF UK’s books strategy. We have worked closely

with ‘10ofthose’, a Christian book publishing and distribution company, to develop a partnership which we hope will increase the reach of materials we have published to date, enable those wishing

to sell books at OMF events to have a wider stock choice. It is hoped that through ‘10publishing’

(the publishing arm of 10ofthose) we may be able to restart the publishing work of OMF UK to produce short, affordable books and resources with the hope of engaging those who have maybe

never read a Christian mission book before.

Member Care

The objectives to ensure that members received good member care and support, ensuring they remained

effective in ministry and healthy, whilst reducing unnecessary attrition, were met through the operation of the team at the National Office working alongside the volunteer area ministry teams. The Director for

Member Care visited each of the five teams during 2015, and took on the role of team leader for one of the

teams as a temporary measure. The area ministry teams, specialising in the pastoral care of missionaries on home assignment, debriefed all home assignees at a local level, in partnership with the supporting churches

of OMF UK sponsored mission workers. Two adult Third Culture Kid (TCK) events were organised in 2015 – a day event for 16 people and a weekend event for 35 adult TCKs in September 2015.

Serve Asia

Early in 2015, the Serve Asia Facilitator, running the Serve Asia Department, resigned to go overseas

with his family. This post was disestablished, and another existing member of the department took on responsibility for running the department. It is intended to increase capacity in the department

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through the recruitment of up to two interns serving for one year periods.

During 2015, the Serve Asia programme, which provides short term mission experience, sent out 66

people to East Asia, 41 on individual placements and 25 on six centrally-coordinated teams.

Orientation and debriefing weekend conferences were provided for those undertaking these trips,

with 51% attendance by invitees.

One new mission cell (a group meeting with a specific focus on serving and supporting mission

amongst East Asians) commenced in Ely, with a particular Laos focus, providing opportunities for

alumni and others interested to meet together on a regular basis in order to further their journey together in God’s mission.

3 Mission cells ceased to meet, possibly due to a decrease in time resourcing from the Serve Asia

Department. Serve Asia had previously been instrumental in their set up and facilitation (coaching and encouragement of leaders) and there wasn’t that follow up in 2015 (due to the reduced capacity

detailed above). Mission Cells remain in Belfast, London North, Cambridge City and Glasgow.

Volunteers

We continued to work with over 200 volunteers serving in various capacities throughout the UK during 2015. These were predominantly in the area ministry teams for candidate processing and member care with

some in the Bridge Asia ministry. OMF UK continues to seek to intentionally expand the significant contribution made by volunteers, bringing invaluable experiences and skillsets for the achievement of the

organisation’s objectives.

Supporter Relationship Management

The Access Group ThankQ Supporter Relationship Management (SRM) system was implemented during 2015

facilitating a more efficient and effective engagement with supporters, providing them with better reporting and appropriate communication meeting the needs they have in relating to and serving through OMF UK.

This software has already improved efficiencies enabling the Finance Department to continue into 2016

without replacing a part-time staff member who retired at end 2015. In addition, the management of our supporter database is better with this software, enabling us to better meet regulatory requirements covered

under the Data Protection Acts whilst also facilitating more intelligent communications with those who have specific interests in areas of OMF UK’s activities.

Financial Review and Reserves Policy

Incoming resources to the organisation come from 3 main streams: general donations to the organisation; legacies (which are normally also general donations); and gifts for the support of specific individuals. These

donations are given to benefit the advance of the Christian faith worldwide, with a particular focus on the peoples of East Asia. Total incoming resources for the year amounted to £6,693k of which £390k was from

the HMRC’s Gift Aid scheme and £311k restricted income. Incoming resources include £110k of accrued

legacy income, of which all had been received by the charity at the date of signing of the accounts. In response to the changing UK Church context where there is generally less giving to organisations like OMF and more is given with a request to support specific individuals serving with them, OMF members are now

required to have an objective indication that a percentage (normally 80%) of the budget required for their

forthcoming term of service is going to be received. With increased giving from many donors to support individuals, the organisation is not exposed to the risk of changing giving patterns from single large donors.

In addition to the resources needed to fund the UK operation, the trustees, operating within the principle

of sharing, allocate unrestricted income to OMF International in Singapore, for distribution to UK members

worldwide who are directly serving the organisation’s objects of advancing the Christian faith amongst East Asia’s people’s. During the period £2,569k was allocated to OMF International. The sum allocated

contributed towards the overall support (including living, child, and housing allowances) of those members

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sent out by OMF UK to work in Asian and other countries outside the UK. All members are paid allowances determined by the level of income received.

OMF UK prepares an annual budget, and has an effective system of budgetary control. Fixed and controllable

costs have been well contained during the year, with all members supported to at least 100% of their target

figure.

The Statement of Financial Activities (SOFA) shows net outgoing resources of £510k, the deficit on the year being due to the exceptional gift of a property in Woking to Lammermuir Ltd with a book value of £401k.

This property has been leased back to OMF UK for charitable use at a peppercorn rent, in common with the

other properties owned by Lammermuir Ltd that OMF UK needs for its charitable activities.

We give thanks to God for again providing sufficient income during the period.

OMF UK’s Reserves Policy was established to manage the issue of fluctuating legacy income; fluctuations in the other main income streams are able to be addressed by varying the level of grants for overseas

members as well as allowance payments to UK based members. The maximum level of reserves held for

legacy income risk is the amount that would have been required to top up legacies received over the worst 3 consecutive years since 2000 to the equivalent of £900k per year legacy income (this is the average annual

legacy income received since 2000). This currently gives a maximum reserve figure of £600k for legacy income risk. In addition, however, if estimated expenditure in the next financial year is known to be

affected by abnormal factors e.g. a particularly weak Sterling, appropriate sums of money can be added to

the reserve to cover the estimated deficit such factors introduce. Complex projects or initiatives over periods which may be longer than one year will normally be covered from designated funds on the understanding

that these will be spent within an agreed time frame. At the end of 2015, weak Sterling has introduced a hole of at least £200k in the budget for 2016, an amount which was added to the maximum reserve figure

detailed above.

At end of 2015, the total funds held were £1,954k of which £45k were fixed assets, £257k were restricted

funds and £758k were designated funds. This left reserves held of £894k.

Where a major unforeseen expense arises at short notice and unless surplus reserves have built up, the grants made to overseas members and allowances paid to UK based members will be reduced to

accommodate this; exceptionally, designated funds from the Home Ministry Fund could be re-allocated on a

temporary basis to meet a working capital requirement. OMF International (IHQ) Ltd in Singapore could also be approached for assistance in such circumstances.

Note 18 to the financial statements shows the assets and liabilities attributable to the various funds by type.

There are three types: general fund, designated funds, and restricted funds. Unrestricted General Fund stands

at £939k, of which £894k is represented by net current assets. The largest designated fund is the Home Ministry Fund, which has a closing balance of £563k.

Investments comprise short term cash funds. The policy of the trustees is to delegate to senior management

the responsibility for investing these funds prudently, in accordance with the agreed Investment Policy at the same time seeking to maximise rates of return.

The trustees have prepared the financial statements on a going concern basis and consider that no disclosures relating to OMF UK’s ability to continue as a going concern need to be made in the financial

statements.

Plans for Future Periods

The primary focus for the future is to continue addressing the issues presented by the changing church

context both within UK and Asia and consideration of the role and requirements of the mission organisation in such a context. The professional missionary, which has been the focus of the organisation for most of the last

150 years, now has less relevance and is being replaced by the call for professionals in mission. There are also many opportunities for reaching diaspora communities in different parts of the world and also interacting

with UK churches which vary between a state of decline on the one hand and enthusiastic engagement in

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cross-cultural mission engagement directly with partners in Asia on the other. A significant proportion of the supporter base is ageing so a priority is being given to engaging with a younger generation whilst also

continuing to serve the older supporters. The outcomes of the review started in 2015 feed directly into these issues.

The main plans to achieve the objectives detailed in this report are:

Complete the review commenced in 2015, identifying and implementing structural and strategic

changes or refinements necessary for most effectively serving the UK Church in the current context.

Building on the opportunities of the 150th Anniversary year, we expect to run a number of regional

day conferences hosted by churches in 2016, as well as maximising the potential of the heavily

advertised new version of the ‘Facing a Task Unfinished’ hymn by the popular modern hymn writers Keith and Kristyn Getty. We are also working on adjustments to the Bridge Asia volunteer ministry to

further adapt it to the UK context, and remain committed to expanding this vital ministry.

A Prayer Resource Review is to be completed early in 2016 with the expectation that we will be

rolling out new prayer resources in 2016, seeking to engage with a wider and younger audience through the increased use of social media platforms amongst other channels.

We aim to encourage Billions magazine readers to become mobilisers through the addition of a

mobilisationsupplement with each issue. This insert will highlight OMF opportunities that are in line with the theme of the magazine issue and be will be designed to be passed on to those known to

Billions magazine recipients who may be suitable applicants for these opportunities. 2016 will also see the development of an online Billions magazine blog, the intention of which will be to increase

the reach of the magazine beyond its current readership and also to provide a better solution for

reading the content online; analysis of the stats for the current issue online version shows that few people are currently engaging well with the magazine online.

We will be revisiting the process by which supporters book onto conferences through the OMF UK

website and how online giving is facilitated; the current systems work but could better serve both

event attendees/supporters and the teams in the UK Office who process these transactions.

2016 will see the development, production and distribution of MobilisationCountry Packs. These

packs will be a resource for our Bridge Asia volunteer team members and those returning to the UK

on home assignment. They will be a collation of the resources available on any particular country, for example a USB memory stick containing the videos available, an overview PowerPoint slide,

copies of our most recent country profiles and articles featured in Billions magazine.

The ThankQ SRM package will be used to improve historic Gift Aid claims and reporting on historic

financial support trends. An annual post-tax year end letter will be sent to all supporters detailing

their last year’s contributions to OMF UK, together with any associate Gift Aid reclaimed. It is

intended to roll out access to the supporter data to Area Representatives, enabling them to engage on a more informed and helpful basis with OMF UK’s supporters in their Area.

The Serve Asia Department will expand opportunities by championing prayer trips (Japan, Vietnam

and South Thailand). Prayer teams have been hosted by the Japan field for the last 3 years and Serve Asia UK would like to expend this opportunity to other fields. The team is recruited nationally and will

be led by an experienced leader.

The Serve Asia Department seeks to recruit 2 unsalaried interns that will be trained and mentored in

the Serve Asia Department to support and help develop the alumni network. This move will

facilitate the re-establishment of equipping day conferences for alumni and the resourcing of existing

mission cells (something which was not possible in 2015 due to reduced capacity in the department). These are key alumni gathering areas that could potentially strengthen connections

with OMF UK for further service in mobilisation, as well as facilitating deeper discipleship. The Journey Guide (an OMF Serve Asia International resource) is currently being edited for OMF UK’s

12



use. It is currently in journal format for those on short term trips to East Asia, however, Serve Asia UK would like to make it modular and open up its use to those still at home, prior to departing.

The Member Care Department intends expanding the provision of resources for both members and

churches in caring for members through expanding the Member Care core team and gaining new members for the area ministry teams. It also intends to run at least one event for adult TCKs in

2016.

The Director for Candidates will join a candidate mobilisation conference in East Asia, using this

opportunity to also undertake field visits deemed to be strategic to broadening the home side

understanding of life and ministry in East Asian fields to which our candidates are destined. The

Candidates Department is seeking to establish some measure of performance of the department in order to be good stewards of our resources and to set goals which will result in a smooth process for

Candidates.

Funds Held as Custodian trustee

There are none held.

Post Balance Sheet Events

None to report.

13



Statement of Trustees’ Responsibilities

The Trustees are responsible for preparing the Report of the Directors 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. Under that law

the trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company

law the trustees must not approve the financial statements unless they are satisfied that they give a true

and fair view of the state of affairs of the charitable company and of the income and expenditure of the charitable company for that period. . In preparing these financial statements, the Directors are required to:

- select suitable accounting policies and 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;

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in business.

The Trustees are responsible for keeping adequate accounting records which are sufficient to show and explain

OMF UK’s transactions and which disclose with reasonable accuracy at any time the financial position of OMF

UK and to enable them to ensure that the financial statements comply with the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 and

the charity’s constitution. They 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.

As far as the Trustees are aware there is no relevant audit information of which OMF UK’s auditor is unaware

and the Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant

audit information and to establish that the auditor is aware of that information.

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on OMF UK’s website. Legislation in the United Kingdom governing the preparation and dissemination

of financial statements may differ from legislation in other jurisdictions.

This report has been prepared in accordance with the special provisions for small companies under Part 15 of the Companies Act 2006.

Signed on behalf of the trustees

……………………………………..

M.J. Rutty

Trustee 7 July 2016

14


Independent Auditor’s report to the trustees and members of OMF International (UK)


We have audited the financial statements of OMF International (UK) for the year ended 31 December 2015 which comprise the Statement of Financial Activities, the Balance Sheet, the Cashflow Statement and the

related notes. The financial reporting framework that has been applied in their preparation is applicable law

and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 (FRS102) ‘the Financial Reporting Standard in the UK and

Republic of Ireland’.

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 and to the charitable charity’s trustees, as a body, in accordance with

section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and regulation 10 of the

Charities Accounts (Scotland) Regulations 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 accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body

and its trustees as a body, for our audit work, for this report, or for the opinion we have formed.

Respective responsibilities of trustees and auditor

As explained more fully in the Statement of Trustees’ Responsibilities, the trustees (who are also the

directors of OMF UK 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.

We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and under the Companies Act 2006 and report in accordance with regulations made

under those Acts.

Our responsibility is to audit and express an opinion on the financial statements in accordance with

applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s (APB’s) Ethical Standards for Auditors.

Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether

caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the charitable company’s circumstances and have been consistently applied and adequately disclosed; the

reasonableness of significant accounting estimates made by the trustees; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the Trustees’

Annual Report to identify material inconsistencies with the audited financial statements and to identify any

information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material

misstatements or inconsistencies we consider the implications for our report.

Opinion on financial statements

In our opinion the financial statements:

give a true and fair view of the state of OMF UK’s affairs as at 31 December 2015 and of its incoming

resources and application of resources, including 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 Companies Act 2006, the Charities and Trustee

Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations

2006 (as amended).

15


Independent Auditor’s report to the trustees and members of OMF International (UK)

Opinion on other matter prescribed by the Companies Act 2006

In our opinion the information given in the Trustees’ Annual Report for the financial year for which the financial statements are prepared is consistent with the financial statements.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 (as amended) requires us to report to you if, in our opinion:

the charitable company has not kept proper and adequate accounting records or returns adequate for

our audit have not been received from branches not visited by us; or

the financial statements are not in agreement with the accounting records and returns; or

certain disclosures of trustees’ remuneration specified by law are not made; or

we have not received all the information and explanations we require for our auditor

the trustees were not entitled to prepare the financial statements in accordance with the small

companies regime and take advantage of the small companies exemption in preparing the Trustees’

Annual Report.

Philip Clark (Senior statutory auditor) for and on behalf of MOORE STEPHENS LLP

Chartered Accountants and Statutory Auditor London

Date:

MOORE STEPHENS LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

16


Statement of Financial Activities for the year ended 31 December 2015

2015

2014

Unrestricted Restricted Total

Unrestricted Restricted Total

Note Funds Funds Funds

Funds Funds Funds

£ £ £

£ £ £

Income from:

Donations:

Support gifts

4,265,849 302,697 4,568,546

4,281,477 255,495 4,536,972

General donations 3,7 1,050,018 - 1,050,018

1,425,858 - 1,425,858

Legacies 2,15 1,135,260 8,802 1,144,062

680,884 100,040 780,924

Other Trading Activities Publications income

32,174 - 32,174

11,774 - 11,774

Rental income

70,278 - 70,278

64,133 - 64,133

Investment income: Interest receivable 2 7,948 - 7,948

4,861 - 4,861

Other income Net gain on disposal of assets 201 - 201

- - -

Total Income

6,561,728 311,499 6,873,227

6,468,987 355,535 6,824,522

Expenditure on:

Raising funds 4 5,472 - 5,472

3,666 - 3,666

Charitable activities Mobilisation 5 1,210,209 20,824 1,231,033

1,272,974 72,905 1,345,879

Evangelisation 6 3,288,047 221,100 3,509,147

3,242,609 313,284 3,555,893

Mission Support 3,7 965,739 2,144 967,883

593,689 8,704 602,393

Administration Support 3,8, 18

825,080 - 825,080

623,559 - 623,559

Education and Information 9 62,750 - 62,750

46,493 - 46,493

Retirement 10 601,416 - 601,416

583,253 - 583,253

Other: Net loss on disposal of

assets

- - -

4,705 - 4,705

Total Expenditure

6,958,713 244,068 7,202,781

6,370,948 394,893 6,765,841

Net (expenditure)/income (396,985) 67,431 (329,554)

98,039 (39,358) 58,681

Transfers between funds

- - -

206 (206) -

Net movement in funds

(396,985) 67,431 (329,554)

98,245 (39,564) 58,681

Reconciliation of funds:

Total funds brought forward

2,274,259 189,331 2,463,590

2,176,014 228,895 2,404,909

Total funds carried forward

19, 20

1,877,274 256,762 2,134,036

2,274,259 189,331 2,463,590

All amounts relate to continuing activities.

The notes on pages 19 to 29 form part of these financial statements.

17


Balance Sheet as at 31 December 2015

Note

2015

2014

£

£

Fixed Assets Tangible fixed assets

13

45,463

479,360

Current Assets

Stock

15,296

18,589 Debtors

15

434,199

229,741

Cash at bank and in hand

2,057,162

2,058,925

2,506,657

2,307,255

Creditors: amounts falling due within one year

16

(418,084)

(323,025)

Net Current Assets

2,088,573

1,984,230

Net Assets

18, 19

2,134,036

2,463,590

Funds

Unrestricted - General funds

1,119,514

1,372,362 - Designated funds

757,760

901,897

18, 19

1,877,274

2,274,259

Restricted

18, 19

256,762

189,331

2,134,036

2,463,590

These financial statements have been prepared in accordance with the special provisions for small companies

under part 15 of the Companies Act 2006.

Approved by the trustees and authorised for issue on 7 July 2016 and signed on their behalf by:

…………………………….. M.J. Rutty Trustee

The notes on pages 19 to 29 form part of these financial statements. Company no. 6541911

18


Cashflow Statement for the year ended 31 December 2015

Total funds

Prior Year

funds

£

£

Cash flows from operating activities:

Net Cash provided (used in)/by operating activities (2,905)

376,893

Cash flows from investing activities:

Interest from investments 7,948

4,861 Proceeds from the sale of property, plant and equipment 201

-

Purchase of property, plant and equipment (7,007)

(56,187)

Net cash provided (used in)/by investing activities 1,142

(51,326)

Change in cash and cash equivalents in the reporting period (1,763)

325,567

Cash and cash equivalents at the beginning of the reporting period 2,058,925

1,733,358

Cash and cash equivalents at the end of the reporting period 2,057,162

2,058,925

Reconciliation of net (expenditure)/income to net cash flow from operating activities)

Current Year

Prior Year

£

£

Net (expenditure)/income for the reporting period (as per the statement of financial activities

(329,554)

58,681

Depreciation 39,571

29,076

Interest from investments (7,948)

(4,861)

(Profit)/loss on sale of fixed assets (201)

4,705

Increase in creditors 95,059

88,230

(Increase)/decrease in debtors (204,458)

196,628

Decrease in stocks 3,293

4,434

Donation of Fixed Asset 401,333

-

Net (used in)/provided by operating activities (2,905)

376,893

19


Notes to the financial statements For the year ended 31 December 2015

1 Status

OMF International (UK) is a company limited by guarantee and a registered charitable company.

2 Accounting policies

a) Basis of accounting and assessment of going concern

The financial statements are prepared on the historical cost basis of accounting, in compliance with the

Companies Act 2006, and in accordance with applicable accounting standards and the Charities SORP

(FRS102) Accounting and Reporting by Charities 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 2015).

OMF International (UK) is a public benefit entity as defined by FRS102.

The Trustees consider that there are no material uncertainties about OMF International (UK)’s ability to

continue as a going concern.

b) Depreciation of tangible fixed assets

Tangible fixed assets are depreciated over their expected useful life on the following straight-line bases:

Land & Buildings 2%

Motor vehicles 25%

Computer equipment 33.33% Fixtures, fittings and office equipment 25%

c) Stock

The stock of the publications department is stated at the lower of cost and net realisable value.

Provision is made for slow moving and obsolete stock.

d) Income recognition

Income from donations is accounted for on a receipts basis, and related Gift Aid is matched to the

date of the original donation.

Legacies are accounted for when received or otherwise will only be accrued when the criteria of

entitlement, measurement and certainty are met.

Where legacies notified to OMF International (UK) by the end of the relevant accounting period do not meet the above criteria, the total estimated value of such legacies will be disclosed in a note to the

financial statements.

Publications income is accounted for on a receipts basis.

Income other than mentioned above is dealt with on an accruals basis.

e) Expenditure recognition

Charitable expenditure comprises services supplied and activities undertaken which are identifiable wholly or mainly in support of OMF International (UK)’s objectives. Those costs shown as

management and administration relate to the management of OMF International (UK)’s assets, organisational administration and compliance with constitutional and statutory requirements.

20



Where appropriate, expenditure is apportioned on a reasonable and consistent basis to other costs within mobilisation and evangelisation expenditure.

The underlying principle upon which cost apportionment is based is staff time.

f) Pension scheme

OMF International (UK) operates a defined contribution pension scheme for staff. The assets of the

scheme are held separately from that of OMF International (UK) in an independently administered fund. The pension costs charged represent the contributions payable under the scheme by the OMF

International (UK) to the fund. OMF International (UK) has no liability under the scheme other than for the payment of these contributions.

g) Funds General funds are unrestricted funds which are available for use at the discretion of the trustees in

furtherance of the general objectives of OMF International (UK) and which have not been designated for other purposes. Designated funds comprise unrestricted funds that have been set aside by the trustees for particular

purposes. The aim and use of each designated fund is set out in the notes to the financial statements. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors. The aim and use of each restricted fund is set out in the notes to the financial statements.

h) Governance costs

Governance costs comprise the expenditure associated with fulfilling statutory obligations and

providing strategic direction to OMF International (UK).

2015

2014

£

£

Staff costs 7,652

8,472 Trustee Expenses 1,709

1,798

Auditors' fees - for audit 13,966

13,278 Auditors' fees - other 660

924

Notional Rental Cost 6,750

6,750

Other costs 12,991

11,235

43,728

42,457

3 Connected parties OMF International (UK) co-operates with other Christian agencies in the pursuit of its mission. Lammermuir Limited, a registered charitable company, owns a number of properties which, under its principal object, the advancement of the Christian faith worldwide, it provides rent free to OMF

International (UK). If OMF International (UK) were to occupy similar accommodation, Lammermuir

Limited estimates that OMF International (UK) would incur costs in the region of £337,500, based on

current market values and rentals payable. As required by the charity SORP, a benefit in kind for this

amount has been included under General donations and the corresponding cost has been included as Notional Rental Cost under the relevant Charitable Activity headings in notes 5-10. The prior year

comparatives have also been amended.

21



During the year OMF International (UK) received a donation for the General Fund of £100,000 from Lammermuir Limited (2014:£200,000).

Lammermuir Limited owed £50,323 to OMF International (UK) at 31 December 2015 (2014:£9,654).

OMF International (UK) provides accounting services to Lammermuir Limited in the form of ledger maintenance and accounts preparation for an annual management charge of £1,000.

OMF International (UK) received £12,600 in donations (2014:£17,330) and £248 in conference payments (2014: £1,238) from Trustees during the year.

None of the trustees receive any remuneration in their capacity as trustees, although all received

refreshments at trustees’ meetings provided by OMF International (UK). 4 trustees received travel

expense payments during the year. The total trustees expenses paid in the year were £1,709 (2014:£1,798).

R.J. Porter and his wife received £8,408 (2014:£9,591) in allowances as a retired former mission

worker of the charity in line with other UK based retired former mission workers of the charity.

4 Cost of raising funds

The cost of raising funds recognises the promotional aspect contained within education and

information expenditure. Cost of generating funds £5,472 (2014: £3,666).

5 Mobilisation expenditure

Unrestricted Funds

Restricted Funds

TOTAL 2015

Unrestricted Funds

Restricted Funds

TOTAL 2014

£ £ £

£ £ £

Staff salaries (note 11) 101,220 - 101,220

117,886 - 117,886

Payments to members in UK 414,387 - 414,387

401,769 - 401,769 Home Assignment expenditure 432,917 - 432,917

521,833 - 521,833

Notional Rental Cost 87,750 - 87,750

87,750 - 87,750

Literature & Information 73,164 - 73,164

39,968 - 39,968

Other Costs 100,771 17,152 117,923

103,768 69,630 173,398

Serve Asia Teams - 3,672 3,672

- 3,275 3,275

1,210,209 20,824 1,231,033

1,272,974 72,905 1,345,879

Mobilisation expenditure comprises the allocated functional costs arising from the process of encouraging people to participate in world mission.

22



6 Evangelisation expenditure

Unrestricted Funds

Restricted Funds

TOTAL 2015

Unrestricted Funds

Restricted Funds

TOTAL 2014

£ £ £

£ £ £

Overseas allocation to OMF International (Singapore) 2,382,375 186,502 2,568,877

2,621,798 207,719 2,829,517


588,424 - 588,424

Serve Asia Teams - 11,015 11,015

- 9,824 9,824

Other costs 21,503 23,583 45,086

32,387 95,741 128,128

3,288,047 221,100 3,509,147

3,242,609 313,284 3,555,893

Evangelisation expenditure comprises the allocated functional costs arising from the process of sharing

the gospel with East Asians. The amounts shown as restricted funds represent payments made to specific overseas projects.

7 Mission Support expenditure

Unrestricted Funds

Restricted Funds

TOTAL 2015

Unrestricted Funds

Restricted Funds

TOTAL 2014

£ £ £

£ £ £


98,997 - 98,997


246,180 - 246,180 Home assignment expenditure 48,102 - 48,102

57,982 - 57,982

Donations made 401,333 - 401,333

- - -


124,875 - 124,875

Other costs 67,896 2,144 70,040

65,655 8,704 74,359

965,739 2,144 967,883

593,689 8,704 602,393

Mission Support expenditure comprises the allocated functional costs arising from the process of

providing mission specific support i.e. processing candidates and pastoral care to personnel engaged in Mobilisation and Evangelisation. The donation made relates to a property gifted to Lammermuir

Limited.

8 Administrative Support expenditure

Unrestricted Funds

Restricted Funds

TOTAL 2015

Unrestricted Funds

Restricted Funds

TOTAL 2014

£ £ £

£ £ £


215,770 - 215,770


28,304 - 28,304

Information Technology 35,672 - 35,672

47,984 - 47,984


108,000 - 108,000

Exceptional Legal Costs 235,612 - 235,612

- - -

Other costs 204,978 - 204,978

223,501 - 223,501

825,080 - 825,080

623,559 - 623,559

23



Administrative support expenditure comprises the allocated functional costs arising from the standard

organisational administrative processes e.g. IT, HR, facilities management and finance processing required to support the organisation.

9 Education and Information expenditure

Unrestricted Funds

Restricted Funds

TOTAL 2015

Unrestricted Funds

Restricted Funds

TOTAL 2014

£ £ £

£ £ £

Literature and information 18,152 - 18,152

6,772 - 6,772

Books and Conferences 3,335 - 3,335

3,301 - 3,301


22,920 - 22,920


13,500 - 13,500

62,750 - 62,750

46,493 - 46,493

Education and information expenditure comprises the costs of producing the magazine “East Asia Billions”, books, conferences and prayer resources.

10 Retirement expenditure

Unrestricted Funds

Restricted Funds

TOTAL 2015

Unrestricted Funds

Restricted Funds

TOTAL 2014

£ £ £

£ £ £

Payments to retired members 588,715 - 588,715

570,190 - 570,190


5,397 - 5,397


4,182 - 4,182


3,375 - 3,375

Other costs 61 - 61

109 - 109

601,416 - 601,416

583,253 - 583,253

Retirement expenditure comprises the costs of allowances paid to retired members of OMF International (UK) and allocated functional costs arising from the support of those retired members. 42 single retired

members and 27 married couples received payments in 2015.

24



11 Staff costs

2015

2014

£

£

Wages & salaries

369,621

396,135 Social security costs

32,319

32,894 Pension contributions

28,817

30,726

430,757

459,755

Staff costs analysed by function:

Note 5 Mobilisation Expenditure

101,220

117,886 Note 7 Mission Support

83,821

98,997 Note 8 Administration Support

213,725

215,770 Note 9 Education and Information Expenditure

27,763

22,920

Note 10 Retirement Expenditure

4,228

4,182

430,757

459,755

No employee earned more £50,000 or more in the year.

The average number of employees was 17 (2014: 18).

Key management personnel comprise 9 senior managers (including the National Directors), of which 6 are supported members and 3 are employees. The total benefits received by key management personnel

in the year, was £267,030 (2014: £249,450).

13 Tangible fixed assets

Land

Fixtures

and Computer Office and Motor

Buildings equipment equipment Fittings Vehicles Total

£ £ £ £ £ £

Cost or valuation

1 January 2015 430,000 163,894 57,392 29,373 24,850 705,509

Additions - 7,007 - - - 7,007

Disposals (430,000) (2,981) - - - (432,981)

31 December 2015 - 167,920 57,392 29,373 24,850 279,535

Accumulated depreciation

1 January 2015 (20,067) (100,275) (55,778) (27,679) (22,349) (226,148)

Charge for the year (8,600) (27,152) (738) (580) (2,501) (39,571)

Released on disposals 28,667 2,980 - - - 31,647

31 December 2015 - (124,447) (56,516) (28,259) (24,850) (234,072)

Net book value

1 January 2015 409,933 63,619 1,614 1,694 2,501 479,361

31 December 2015 - 43,473 876 1,114 - 45,463

25



14 Capital commitments

No capital expenditure was contracted for or committed at 31 December 2015 (2014: Nil).

15 Debtors

2015

2014

£

£

Trade debtors -

10 Other debtors 6,195

7,262 Lammermuir Limited 50,323

9,654

Accrued income - Legacies 290,038

76,595 Accrued income - Gift Aid 31,709 70,168 Accrued Income - Other 4,174 - Prepayments 51,760

66,052

434,199

229,741

In addition to the legacies accrued, at 31 December 2015 OMF International (UK) had been notified of legacies with an estimated value of £546k which did not meet its criteria for inclusion in the

financial statements. Of the £110,001 legacies accrued, all amounts had been received by the charity at the date the financial statements were signed.

16 Creditors: amounts falling due within one year

2015 2014 £ £ Sundry creditors 115,061 138,040

Accruals - General 21,592 16,232

Exceptional legal case accrual 200,000 -

Taxation & social security 23,083 29,552

OMF International (Singapore) 2,552 113,963

Deferred income 55,796 25,238

418,084 323,025

Reconciliation of deferred income

2015

£

Amount deferred at January 1 2015 25,238

Amounts released (17,167)

Amounts deferred in year 47,725

Deferred income at 31 December 2015 55,796

Deferred income relates to donations given by supporters with the express intention for those donations

to be used by OMF International (UK) in future accounting periods.

26



The trustees are satisfied that no provision should be made in the accounts in relation to future

amounts which may be paid to retired members, as they do not believe there is any commitment to make such payments. They are only made at the discretion of OMF International (UK), and as

income permits, and therefore there is no expectation by the members that any quantifiable

amounts will be payable to them.

17 Financial instruments

The charity’s financial instruments may be analysed as follows:

2015 2014 £ £ Financial Assets Financial assets at amortised cost 2,253,369 2,215,352 Financial Liabilities Financial liabilities at amortised cost 362,288 297,787

Financial assets measured at amortised cost comprise cash at bank and in hand, trade debts, other

debtors, Lammermuir Limited and accrued income (£145,884 (2014:£146,763)).

Financial liabilities measured at amortised cost comprise sundry creditors, accruals (including exceptional legal case accruals), taxation and social security and amounts to OMF International

(Singapore).

18 Contingent Liability

OMF International (UK) has been informed that a legal claim may be made against it. As at the time of

signing these accounts OMF International (UK)’s lawyers are in discussion with the potential claimants’ lawyers. OMF International (UK) has made provision for an exceptional legal case accrual in this year’s

accounts of £200k based on the latest advice received. OMF International (UK) recognise that the actual extent of any costs to be incurred remains uncertain at this time.

27



19 Funds

Balance Income Expenditure Transfers Balance

01/01/2015

31/12/2015

General Fund 1,372,362 6,089,116 (6,341,964) - 1,119,514

Designated Funds

Joining Members Fund 175,498 (85,207) (5,558) - 84,733

Home Ministry fund 551,497 492,743 (481,019) - 563,221

150th International Gathering Fund

12,000 - (7,492) - 4,508

IT project fund 18,833 - (7,231) - 11,602

Bridge Asia 144,069 13,215 (69,733)

87,551

Other Designated Funds - 51,861 (45,716) - 6,145

Total Designated funds 901,897 472,612 (616,749) - 757,760

Total Unrestricted Funds 2,274,259 6,561,728 (6,958,713) - 1,877,274

Restricted Funds

Holland Legacy Fund 4,028 28,000 (3,185) - 28,843

China Youth Project Mobilisation 13,750 - (1,000) - 12,750

Chapman Legacy 128,788 - (3,502) - 125,286

Member Ministry Development Bursary

- 50,000 -

50,000

Leah Evans Bequest 3,665 4,506 - - 8,171

Serve Asia Fund 13,099 12,636 (14,687) - 11,048

Other Miscellaneous Funds (<£8k)

26,001 29,855 (35,192) - 20,664

Other Overseas funds - 186,502 (186,502) - -

Total Restricted Funds 189,331 311,499 (244,068) - 256,762

Total Funds 2,463,590 6,873,227 (7,202,781) - 2,134,036

Designated Funds

Joining Members fund collects all donations received that have allocated to candidates before they are

accepted as members.

Home Ministry Fund has been established primarily for the provision of members’ home assignment

allowances, as well as miscellaneous other member expenses. An amount within this fund, accumulated from the writing off of former member’s home assignments provisions, was transferred to the general

fund during the year.

The Bridge Asia Fund has been set up to fund a volunteer involvement initiative.

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OMF INTERNATIONAL (UK) Notes to the financial statements

For the year ended 31 December 2015

The 150th International Gathering Fund has been created to fund costs associated with the celebration of the 150th anniversary of the China Inland Mission, which later became OMF International.

IT Project Fund was set up to fund several major new IT initiatives originally scheduled for completion in 2014.

Other designated funds include funds for members who have recently left OMF International (UK).

Restricted Funds

The Holland legacy fund is used for OMF International (UK)’s work in China.

CMI fund is for use in relation to a youth project and work in China.

The Chapman Legacy fund is to be used to give support to the children of missionaries in whatever way it

is needed, including the provision of holidays and the travel costs of bringing children and parents together

in one place.

The Member Ministry Development Bursary is a fund created to help fund the training and ministry development of members.

The objective of Leah Evans Bequest fund is to assist with the accommodation costs of active service

members and retired members of OMF International (UK).

Serve Asia fund is for short term team trips to Asia.

Other miscellaneous funds comprises of several funds with an individual fund balance of less than £10k

used for work in the UK.

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20 Analysis of net assets between Funds

21

Taxation

OMF International (UK) is a registered charitable company and therefore is not liable to income tax or

corporation tax on income or gains derived from its charitable activities, as they fall within the various exemptions available to registered charities.

22 Liability of members

OMF International (UK) is constituted as a company limited by guarantee and has no share capital.

The liability of the members of the company, who are also the trustees of OMF International (UK), in the event of the company being wound up is limited to a sum not exceeding £1 each.

There were 9 members of the company at 31 December 2015 (2014:8).

23 Transition to FRS 102

These financial statements for the year ended 31 December 2015 are the charity’s financial statements that comply with the Financial Reporting Standard 102 (FRS102) ‘the Financial Reporting

Standard in the UK and Republic of Ireland’. The charity’s date of transition to FRS102 is 1 January

2014. The charity’s last accounts prepared in accordance with the previous UK GAAP were for the year ended 31 December 2014.

In preparing the financial statements, the trustees have considered whether in applying the

accounting policies required by FRS102 and the Charities SORP (FRS102) any restatement of

comparative items was needed. No restatements were required.

Tangible Fixed

Assets

Net Current

Assets Total 2015

£ £ £

Unrestricted Funds

General Fund

45,463 1,074,051 1,119,514

Joining Members Fund

- 84,733 84,733

Home Ministry Fund

- 563,221 563,221

150th International Gathering Fund

- 4,508 4,508

IT project fund

- 11,602 11,602

Bridge Asia

- 87,551 87,551

Other Designated Funds

- 6,145 6,145

Total Unrestricted Funds

45,463 1,831,811 1,877,274

Restricted Funds

Holland Legacy Fund

- 28,843 28,843

China Youth Project Mobilisation (CMI)

- 12,750 12,750

Chapman Legacy

- 125,286 125,286

Member Ministry Development Bursary

- 50,000 50,000

Leah Evans Bequest

- 8,171 8,171

Serve Asia Fund

- 11,048 11,048

Other miscellaneous UK Funds (<£8k)

- 20,664 20,664

Total Restricted Funds

- 256,762 256,762

OMF INTERNATIONAL (UK) · OMF International (UK) (“OMF UK”) was incorporated as a company...

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