FINANCIAL REVIEW Expenditure

Total expenditure for the year was £8.3m (2021 £7.6m) of which £7.9m (2021£7.2m) was committed to supporting and developing the various charitable objects of BMS: this represents 95% (2021 96%) of total expenditure. “Historic partners” represents work that is being phased out over a period of 4 years since the introduction of the new strategy in 2021. Historic partners have continued to achieve impact in our previous strategic areas. The overall expenditure takes into account commitments that have been made to partners, a number of which have struggled with the global cost of living crisis.

Most Marginalised 50%

Least Evangelised 17%

People on the Move 13%

Raising Awareness 12%

Historic Partners 8%

Categories of income

The graph compares categories of income for 2022 with that of 2021. There has been a decline in donation income but church giving has remained strong. A significant number of individuals were exceptionally generous in giving to our Ukraine appeal, included in the relief figure.

Legacy income returned to normal levels in 2022 following receipt of an exceptionally large legacy at the end of 2021. Legacies continue to provide a steady source of income for the organisation. BMS India income has increased over 2021 as the guesthouse was fully operational for the whole of 2022 after a restricted operations in 2021 due to Covid. Profits from the guesthouse are normally used to support initiatives such as Street Servants in Kolkata.

Other income represents resource and Christmas card sales and rental income from properties. There were no sales of properties in the year (2021 one sale)

Net income/(expenditure) before movement on investments

The net expenditure before movement on investments for 2022 was £0.1m (2021 net income of £1.6m), consisting of a deficit on unrestricted funds of £1m (2021 surplus of £1.4m) and a surplus on restricted funds of £900k (2021 surplus of £154k). During the budgeting process for 2022 the trustees had approved a draw from unrestricted reserves of £0.6m consisting of investment in the new strategy of £309k and to minimise the post-Covid economic impact on the organisation of £318k. In addition, unrestricted income levels were lower than budgeted due to the displacement of some unrestricted donations to our successful restricted Ukraine Appeal. This accounts for the deficit on the unrestricted funds and the surplus on the unrestricted funds.

Investment properties

Previously properties which were let out commercially were held within the tangible fixed asset register at cost less accumulated depreciation. During the year, this has been corrected to include them at fair value as investment properties.