OMF INTERNATIONAL (UK) · 31 December 2016. The reference and administrative details set out on page 3 form part of this report. The financial statements comply with current statutory

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 2016

1

OMF INTERNATIONAL (UK) Trustees’ Annual Report

For the year ended 31 December 2016

Contents Pages

Trustees’ Annual Report 2 - 16

Independent Auditor’s Report 17 - 18

Statement of Financial Activities 19

Balance Sheet 20

Cash-flow statement 21

Notes to the Financial Statements 22 - 33

2



2016 Highlights

Completion of 2016 Review with significant outcomes already being implemented

216 members sent from OMF UK, with 21 new applications being received

during the year. 21 either retired or resigned from the organisation

51 short term workers went on placements

New Area Representatives in Scotland, North Area still remains vacant

Bridge Asia mobilisation volunteers increased from 21 to 28

Increased Social Media engagement through Facebook & Twitter, with Billions Magazine online in blog format

Transition of many of those receiving prayer bulletins through post to E Mail,

freeing up resources for social media engagement

Adult Third Culture Kid (TCK) Event run, together with 2 separate days for parents of TCKs

All OMF UK members at least 95% supported and an annual post tax year

end thank you letter/donation statement sent to all financial supporters

3



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 (retired 17 May 2016) S. M. Belstead

S. C. Biden S. L. Byun (resigned 17 May 2016)

O. A. Ngundu R. J. Porter

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

M. J. Stone P. Fleming

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 Chartered Accountants

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

4



Introduction

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

31 December 2016.

The reference and administrative details set out on page 3 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, the Companies Act

2006 and the Charities Act 2011.

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 consecutive 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 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 (which are reduced if insufficient income is received by the organisation); 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 was restructured during 2015 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.

5



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.

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.

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 informed, supported, 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; in the current

context, OMF also wants to support the UK Church in engaging in appropriate and helpful direct partnerships of

service with the East Asian Church as well as ministry to East Asians and others 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, where this occurs, increasingly include electronic and social media platforms. It is recognised that as churches and individuals now often want to be involved in cross cultural mission receiving some

support, but without strong ties to a mission organisation, OMF UK needs to identify how it can best serve the church or individual’s need in such circumstances, establishing the structures and processes for doing so.

In addition, the means of financing the organisation’s operation are increasingly 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. This change to income streams requires a

different financial model for the organisation to be financially sustainable in the medium to long term; we have

responded to this in requiring members to have an objective indication of the likely amount of financial support they will receive, prior to commencing their next term of ministry, as referred to in other sections of this report.

Linked to the financial challenges being encountered, more missionaries serving in their ministries in the market-place are needed (particularly in closed access contexts), which has the side effect of often providing some

salary/support income.

The shorter term objectives required to drive achievement of the longer term objectives are the development of

an increasing 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

6



years, as well as a younger generation which seeks to do this in a very different way. In addition, the 2016

Review also 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.

With the significant weakening of Sterling in 2016, more missionaries are likely to struggle to see their required

financial support provided in the period ahead. In addition, there is an ongoing need for reduced dependence on

legacy and General Fund income for their support, as indicated already, 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 network of Area Representatives across the UK who serve the UK Church in its engagement in God’s

mission. Having established a recently new volunteer network (Bridge Asia), we seek to intentionally recruit and train volunteers to join this mobilization network. The new focus of the representative role

arising from the 2016 Review has been well-received: Area Representatives are now the primary face of OMF UK to the Christian public in the UK, engaging with individuals and the Church through conferences,

direct invitations, new enquiries or existing relationships. OMF members returning from overseas fields of

service for home assignments also work as part of this diffuse team.

The Communications Department strengthens the ministry of engagement with the Christian public

through organizing OMF led events and attendance at third party Christian conferences as well as printed and digital materials targeting the specific needs of those engaging in cross cultural mission; increasingly,

strategies are being prioritised to develop engagement through web and social media platforms.

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. Twice a year, the Candidate Department also runs European

Candidate Introduction Courses, an orientation to life and ministry with OMF UK for new missionary candidates from OMF International’s European centres.

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

journeying together and supporting one another in their engagement in God’s mission). 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.

7



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 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 (including giftedness and calling) and resilience to operate in a

demanding mission context. As a result, attrition should not normally arise due to factors within the control of OMF International. The number of workers going on short term Serve Asia programme placements is a sub-

category of this criterion. 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 for OMF UK members

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.

Risk Analysis and Mitigation

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.

The most significant medium to long term risk to the organisation is currently perceived to be the effect of

changes within the Church both in UK and East Asia. In the UK, as already indicated, 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 the UK now often need to be professionally trained and experienced to fill specific vacancies such as education or social welfare roles; this does however present

opportunities as well as risks, exemplified by the increasing openings for those experienced in areas such as running businesses for example. The ramifications of these changes led to the organisation reviewing its

fundamental operating model which has remained in place since its inception in 1865; the outcomes of this 2016

Review are being implemented as detailed in other sections of this report. In general, the organisation is seeking to mitigate these risks by establishing 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 has been

8



taking steps in engaging relevantly with a younger generation, both in terms of the opportunities for involvement

presented to it and how these are communicated. It is recognised that in being part of a larger international organisation, there are some challenges that need to be addressed centrally, over which OMF UK has limited

control i.e. increasing numbers of churches and missionaries are looking to receive certain support services

provided by organisations like OMF International, without being a formal part of the larger organisation subject to its oversight, policies and processes. OMF UK cannot address this type of situation in a significant way without it

being addressed by OMF International. This presents a significant challenge requiring further changes to address it satisfactorily.

Working with children and vulnerable adults requires detailed and appropriate policies and management to mitigate against any risks arising from inappropriate relationships and actions towards such people. OMF UK has

a comprehensive Safeguarding Policy, details of which are displayed on our website, to ensure that processes and protections are in place to ensure the wellbeing of such people when we are working with and serving them from

time to time.

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.

As referred to elsewhere, a significant short to medium term risk to the organisation has been presented by the decrease in valuation of Sterling. This issue is highlighted in more detail in the Financial Review section of this

report.

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.

Achievements & Performance

The 2016 Review was completed and outcomes were implemented. The main themes highlighted by that Review

were:

there is a broad diversity of experience and perception of those engaging with and supporting the

organisation; personal relationships are key to addressing this issue, so strategies and policies need to prioritise the value of such relationships, both establishing them and keeping them healthy

one of the outcomes of the restructuring in 2010/11 has been the fragmentation of OMF UK’s engagement

with the Christian public, with a sense of increasing disconnection resulting. The achievements and

performance sections below include outcomes seeking to address these issues

partnerships with churches need to be established on the basis of the needs of the churches as opposed to meeting OMF UK’s sometimes historically driven agenda, which are quite different

for some there is a perception that the recent focus on the need for members to see an objective

indication of their likely support prior to commencing a field term is at odds with the historical basis of OMF UK as a “faith mission”

there is a challenge engaging volunteers with both the experience and the capacity to serve in all roles,

however this needs to be approached as a priority in the current context

the changes in the Asian Church need to be considered in how OMF International must work with it; additionally, the need to facilitate missionaries, often with different experiences and skillsets to those sent

historically, is a significant factor confronting the organization

Member Summary

At the end of 2016, OMF UK had a total of 170 sponsored mission workers (known as members of the

organisation) living overseas in 13 different countries of East Asia and Latin America. Their work varies widely but

they are all contributing alongside local churches. In addition, there were 18 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 2016 OMF UK also supported 2 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 11 members serving in mobilisation roles. A further 7 members were serving in roles within Member Care,

9



Candidates, Mobilisation, Serve Asia and sustainability, as well as 5 members on administrative leave of absence.

During 2016, there were 8 members who retired and a further 13 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 or who had completed their designated term of service. 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 above and seeking to be mitigated by the strategies being employed.

· Candidates

During 2016 there were 21 new applications to join OMF. Some of these applicants are included in the 8 people in

total who became new members at the Orientation Course in Singapore and then moved onto their OMF field placement. Besides the new applicants in 2016 there are 7 existing applicants who are still making preparations to

join as members. These preparations include further theological studies, waiting for support to be pledged and

establishing UK citizenship. Two candidates withdrew their applications to opt for a short-term placement in OMF instead of long-term membership.

Two, week-long European Candidate Introduction Courses were held in January and July serving 17 candidates

from the UK, the Netherlands, Germany and Switzerland home centres.

The Director for Candidates made a visit to the OMF International Centre in Singapore to network with Home and

Field Candidate Coordinators from other centres. This trip was also combined with a field visit which was strategic in broadening the understanding of life and ministry in East Asian fields to which our candidates are destined.

One significant challenge faced by the Department was a new incoming Director for Candidates – a couple who

have served with OMF in East Asia for 7 years previously. They initially took up the role on a part-time basis and

then moved into the role full-time on 1 July 2016.

Area Mobilisers (Representatives) & Bridge Asia

Four of our six Areas had continuity of leadership, which greatly strengthened the relational aspect of their role,

deepening and widening their relational network, both with local churches as well as with other agencies through the various Agency Partnerships that OMF participates in (such as SWAN, EMAP, CMAP and IMAP). We successfully

appointed new Area Representatives for Scotland. There is still a vacancy in the North Area, with responsibilities there being carried by an interim team of volunteers, led by the newly appointed Assistant Director for Mobilisation

(ADM). OMF UK is seeking a new appointment of an Under 35s mobiliser, replacing the previous member in the

role and moving the base to the East Area.

Bridge Asia, a ministry of intentionally equipped and deployed volunteer mobilisation teams, continues to grow steadily under the ADM’s leadership – by end 2016 we had 28 active Bridge Asia team members. OMF UK held a

conference in 2016 for the Bridge Asia volunteers, which established identity and built momentum; a second

conference is planned for 2017.

In 2016, supplementing the existing resource deployment, OMF UK introduced ‘Equipping Days’ at the local level for members on Home Assignment and mobilisers to mutually develop plans for local mobilization; 5 Equipping

Days were carried out in 2016.

This 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 Christian festivals/exhibitions around the UK (Word Alive, New Wine, Keswick, Momentum, Forum), and through invitations

to churches and responses to enquiries made through the web portal.

The heavily advertised new version of the ‘Facing a Task Unfinished’ hymn by the popular modern hymn writers

Keith and Kristyn Getty provided some excellent mobilisation opportunities with OMF UK being invited to participate in the Northern Ireland series of concerts as the only mission agency represented in Belfast Waterfront, as well

10



as at a church and also a worship leaders’ meeting attended by several hundred people.

The Prayer Resource Review recommendations were delivered, reducing approx 6500 monthly paper prayer

bulletins distributed to approx. 500 monthly, transitioning the majority to E Mail only. This freed up resource for a

focused Social Media strategic engagement, which, since September 2016, saw an increase in OMF UK’s presence on Facebook and Twitter as detailed in the next section. Communications

2016 saw another 3 editions of Billions produced. Feedback from readers was positive, several commented that particular editions this year were the best in 10 years or so. The first 2 editions also included the anticipated

mobilization supplements, highlighting OMF opportunities working with Third Culture Kids (TCK) and serving in Laos, Myanmar, Thailand, Cambodia and Vietnam. These are great resources which Area Representatives and

others should continue to be able to utilise in their ministries, however it is not clear whether readers passed them on as had also been desired.

As intended, a new Billions website was developed, allowing the content from the printed magazine to be read online in a blog format. This is increasing both the number of visits and the length of time spent reading the

content, as well as providing the content in a way that is more easily accessible to mobile users. Using a blog format has also made it much easier for content to be shared across OMF UK’s social media platform, further

increasing reach and engagement.

A rebranded exhibition stand, along with new game/interactions, was taken to numerous third party exhibitions.

The prominence of a map on the stand helped people identify more clearly where we work and led to conversations about specific countries. The exhibiting team found an interactive translation game was particularly

successful in encouraging people to engage in conversations with us.

During the summer the team planned a strategic pathway for using Social Media, looking at how Twitter, Facebook

and Instagram can be used in sharing our message and engaging our supporters. This plan was then launched and implemented from September 2016. So far this drive has seen over 100 new people (14%) liking our Facebook

page and nearly 200 new followers (5%) on Twitter. This growth alongside the increase in our posting rates has seen tweet impressions grow by 5600 and average Facebook post reach is now 450 people.

An updated promotional video for the Bridge Asia volunteer ministry programme was produced. This has been viewed over 100 times online and been used at events and conferences to promote the ministry opportunities this

volunteer network provides.

New mobilisation country packs were provided for all members returning to the UK for temporary Home Ministry in

2016. They provide those on temporary Home Ministry and Bridge Asia volunteers with an overview of the available mobilization materials, both general and specific to particular locations. These members/volunteers were

then able to better resource themselves for serving the UK Church at the various events they attended

The OMF UK Communications Team was significantly engaged in promoting the OMF International initiative “The Task Unfinished”, highlighting the fact that a third of the world remains unreached with the good news of Jesus

Christ, with 600 million of these people living in East Asia. One part of this was a global hymn sing around this

theme by churches across the globe on 21 February, including over 900 UK & Ireland churches which signed up to take part.

The OMF UK Communications team was also involved in the production of a follow up animated piece to the 2015

‘Our Story Begins’ OMF International production, this time focusing on “The Task Unfinished”.

Member Care

Ensuring that members received good member care and support, that they remain healthy and effective in

ministry, with unnecessary attrition being limited, was achieved 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

11



teams during 2016, and retained 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.

One adult TCK event was organised in 2016 – a day event for 45 people in November 2016. Two events were also organised for parents of the adult TCKs in October 2016, attended by 24 parents.

Serve Asia

The Serve Asia programme, which provides short term mission experience, was joined by 51 people to East Asia in

2016, 19 on individual placements and 32 on nine centrally-coordinated teams to locations including Japan,

Singapore and Thailand.

An orientation weekend conference was provided for those undertaking these trips, with 80% attendance by invitees; debriefing in 2016 was delegated to Area Representatives in order to facilitate the Serve Asia team

attending a consultation in Singapore with other Serve Asia Coordinators from OMF International.

An intern and part time volunteer were recruited in September 2016; as this capacity increase was only established

late in the year, with training and development of these individuals required from that time, there was no resource available to run the intended equipping day conferences for alumni and mission cells.

Mission Cells remain in Belfast, Cambridge City & Ely with the continued oversight by their Area Representatives.

The Glasgow and London North mission cells disbanded, possibly due to a changing vision of the groups and a

decrease in time resourcing from the Serve Asia Department, although some have become involved in Bridge Asia instead. The Serve Asia Department had previously been instrumental in their set up and facilitation (coaching and

encouragement of leaders) but there wasn’t able to be that follow up in the last 2 years due to the reduced capacity in the department.

The Journey Guide (an orientation and discipling resource produced by OMF International for those engaged in the short term mission programme) edit was not completed as intended, again due to resource limitations

Volunteers

In addition to the 28 Bridge Asia volunteers, a further approx. 70 were formally engaged in area ministry teams

and other recurring involvements with OMF UK throughout the year. In addition, many engage on a one off basis, representing OMF at exhibitions/conferences as well as the many serving the fellowship informally through their

prayer, financial and other support ministries. OMF UK continues to seek to intentionally expand the significant contribution made by volunteers, whose invaluable experiences and skillsets significantly help facilitate the

achievement of the organisation’s objectives.

Supporter Relationship Management (SRM)

The ThankQ SRM package has enabled better service to supporters of OMF UK, particularly in the areas of prayer

material distribution, event communication and financial gift acknowledgements. This software has also provided

functionality enabling OMF UK to progressively increase the quality of the partner/supporter data held, improving efficiencies, standards of communication and regulatory compliance.

During 2016, an annual post-tax year end letter was sent to all financial supporters, detailing the gifts made to

OMF UK by them during 2015/16 together with any Gift Aid reclaimed. This led to a number of supporters adding Gift Aid to their donations. Historic Gift Aid claims, not able to be made using our previous SRM system, were

commenced in 2016.

The planned rollout of access to the SRM for Area Representatives, to enable them to engage on a more informed

and helpful basis with OMF UK’s supporters in their Area, was deferred to 2017, in order to commence

12



implementation of a new online supporter portal as detailed in the plans for future periods section.

Finance

As a response to the outcomes of the 2016 Review, a special briefing was sent to all OMF UK members regarding the policies and processes being employed in financial communication with ministry partners and other supporters,

to address some of the tension which had arisen in this area. This communication sits alongside other finance related documentation which is available for churches, briefings in the 4 monthly Billions Magazine and face to face

presentations given to members on this matter whilst in the UK.

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 £7,415k of which £390k was from the HMRC’s Gift Aid scheme

and £402k restricted income. Incoming resources include £508k of accrued legacy income. Previously, such legacy income has only been accrued where we had been notified about in before the financial year end and it had been

received prior to the signing of the financial statements. In accordance with the latest Charities Statement of Recommended Practice, effective for financial years beginning on or after 1 January 2016, legacy income is now

being accrued for legacies notified prior to the financial year end which satisfy the regulatory requirements of

entitlement, measurement and probability. In response to the changing UK Church context where there is generally less giving to organisations like OMF UK and more is given with a request to support specific individuals serving with them, OMF UK 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.

OMF UK has a policy of not asking for funds. Therefore, OMF UK does not have a fundraising policy. The

expenditure on ‘Raising Funds’ reported in the financial statements is an estimate of the proportion of the costs spent on charitable activities eg communications literature, which has an incidental outcome of contributing to

increasing the amount of donations received.

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 £2,466k was allocated to OMF International. The sum allocated contributed towards the overall

support (including living, child, and housing allowances) of those members sent out by OMF UK to work in Asian and other countries outside the UK. In 2016, all OMF UK members received at least 95% of their full support

requirement through a combination of specific support gifts and general donations received. 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 variable costs

have been well contained during the year, with all members supported to at least 95% of their target figure.

The Statement of Financial Activities (SOFA) shows net incoming resources of £749k. We give thanks to God for

again providing sufficient income during the period.

OMF UK’s Reserves Policy is primarily to manage the issue of fluctuating legacy income. In addition, reserves can

be maintained where there is a known deficit in the budget for the year ahead, normally due to exchange rate or member support level factors. 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 legacy reserves figure of £878k. 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. Of the designated funds held at the end of 2016, over 40% is advance

13



savings for members to cover the extra costs of Home Assignments in UK compared with the costs of living

overseas. At the end of 2016, weak Sterling has introduced a hole of approximately £450k in the budget for 2017, an amount which will be funded from the General Fund carried forward into 2017.

As referred to in several places in this report already, the significant weakening of Sterling in 2016 has led to a large budget hole opening up in the organisation’s finances. Whilst the Reserves Policy provides for covering such

a hole in the year ahead, it is quite possible that this hole is not going to be closed quickly, unless exchange rates unexpectedly swing in a favourable direction, or member support income increases significantly in the increasingly

challenging economic situations currently being faced in UK. Therefore, as detailed below, the above policy

reserves which accrued at the end of 2016 (after it had been decided to only top up lower supported members to 95% from General Funds) are retained as a prudent response to this situation. In addition, during 2017, the

trustees will be considering options to address this issue if it looks like it will become protracted beyond a couple of years. In any case, if there is not sufficient income to cover required expenses, grants to overseas members and

allowances to UK based members can be reduced. Strategies and policies seeking to avoid such circumstances arising will seek to be implemented in 2017.

At end of 2016, the total funds held were £2,883k of which £462k were restricted funds and £654k were designated funds. This left reserves held of £1,767k.

Note 19 to the financial statements shows the assets and liabilities attributable to the various funds by type. There

are three types: reserves (General Fund & Legacy Reserve), designated funds, and restricted funds. Unrestricted

General Fund stands at £889k, of which £843k is represented by net current assets and £45k by fixed assets. The largest designated fund is the Home Ministry Fund, which has a closing balance of £617k.

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 reduced significance and is, to some extent, being replaced by the call for professionals in mission. There

are significant needs in reaching diaspora communities in different parts of the world and serving UK churches

(according to their cross-cultural mission needs, not necessarily prioritising a historic OMF UK agenda), which vary between a state of decline on the one hand and enthusiastic engagement in 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 developing engagement with a younger generation whilst also continuing to serve the older

supporters. The outcomes of the 2016 Review feed directly into these issues.

The main plans for the year ahead to enhance the achievement of our charitable objects are:

We will continue to seek to engage effectively with both our existing supporters (through existing mailings, the

Billions Magazine, church events, exhibitions, conferences and prayer meetings across the UK) and non-OMF UK engaged churches/Christian public. We will seek to achieve the latter, in part, through our presence at 2017

Exhibitions: New Wine, Big Church Day Out & Soul Survivor. We will also investigate the possibility of returning to

Spring Harvest. We are developing updated, relevant resources for these events. The engagement from our returning overseas workers remains critical in facilitating new relationships with non-mission engaged

churches/Christian public and we will therefore continue the Equipping Days to assist them in this regard.

A specific desired outcome of our Equipping Days is to further grow our Social Media presence as we integrate and educate our members into new ways of communicating. This should result in further engagement with the

Christian public, particularly the younger generation. In addition, through continued work on content across Social

Media platforms by the Communications Department, we want to see further increased engagement with OMF

14



content, including:

More likes, comments and shares on prayer points

Greater readership of Billions articles online: more subscribers as well as more and longer read times on the site

More traffic socially driven traffic to the OMF UK website

“The Task Unfinished” is the major cohesive theme for UK mobilization currently, and we will continue to partner with OMF International in advancing utilization of this strategic priority in the UK. In 2017 we are planning a

consultation with the Field Directors responsible for the Six Priority Pioneering Fields set by OMF International Leadership (including Diaspora Returnee Ministry, Ministry to Muslims, China, Vietnam & Myanmar). All mobilisers

will attend, and grow in their understanding of the needs and opportunities in these Fields.

We continue to seek the growth of Bridge Asia members, both in number and in ministry engagement, and seek to

see teams established in Scotland for the first time under the new Area Representatives. We urgently look to God for an Area Representative in the North Area.

In January 2017 Sparks Studio will facilitate a workshop exploring OMF UK’s audience. This will enable OMF UK

communications to be better informed through persona content and customer journey mapping, leading to a more

focused and informed approach to content and material creation. Linked to this a review will be undertaken to guide future development of the exhibition materials and interactive pieces. Development will then be undertaken

to ensure teams are even better equipped for 2017 exhibiting.

We plan to research, write and produce another 3 editions of the Billions magazine that enforce the message of

“The Task Unfinished” including promotion of opportunities for engagement.

The ThankQ SRM package will be enhanced through the addition of the online donation portal; not only will this provide online services for those giving financially, it will also provide online subscription to prayer materials &

magazine mailing as well as online event booking. It is also 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.

In addition to individual placements, Serve Asia Teams are planned to be sent to locations again including Japan,

Thailand and Singapore.

In 2017 Serve Asia Department seeks to recruit 2 interns who will be trained and mentored in the Serve Asia

Department to support and help develop the alumni network. This move, together with the arrival in 2016 of an intern and part-time volunteer, should facilitate the re-establishment of equipping day conferences for alumni and

mobilisation of under 35s. 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. An event is planned for mid-

October 2017 to gather and further equip alumni and connect them with like-minded Christians.

The Journey Guide (an OMF International Serve Asia orientation and discipleship resource) will be edited for the UK

context to be available for April 2017.

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 2017. A Retirees and Former Members Conference is also being planned for May 2017.

The Director for Candidates will work to strengthen our area ministry teams by recruiting the next generation of

volunteers to assist in the selection of missionary candidates. The department will also be working closely with other European OMF International centres and the OMF International Centre in Singapore to standardise OMF UK’s

approach to training and development at the candidate stage.

15



Funds Held as Custodian trustee

There are none held.

Post Balance Sheet Events

None to report.

16



Statement of Trustees’ Responsibilities

The Trustees (who are also directors of OMF International (UK) for the purposes of company law) 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 Trustees 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.

Approval

In approving the Trustees Annual Report, the Trustees are also approving the Directors Report in their

capacity as company directors.

Signed on behalf of the trustees

……………………………………..

M.J. Rutty Trustee

16 May 2017

17


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 2016 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 2016 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).

18


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 based on the work performed in the course of the audit:

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; and

The Trustees Annual Report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees Annual Report.

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

19


Statement of Financial Activities for the year ended 31 December 2016

2016

2015

Unrestricted Restricted Total

Unrestricted Restricted Total

Note Funds Funds Funds

Funds Funds Funds

£ £ £

£ £ £

Income from:

Donations: Support gifts

4,500,152 167,739 4,667,891

4,265,849 290,061 4,555,910

General donations 3,7 1,063,348 - 1,063,348

1,050,018 - 1,050,018

Designated funds 18,19 18,957 - 18,957

12,636 - 12,636

Legacies 2,14 1,334,285 234,643 1,568,928

1,135,260 8,802 1,144,062

Other Trading Activities Publications income

10,003 - 10,003

32,174 - 32,174

Rental income

73,643 - 73,643

70,278 - 70,278

Investment income: Interest receivable 2 8,754 - 8,754

7,948 - 7,948

Other income Net gain on disposal of assets

3,650 - 3,650

201 - 201

Total Income

7,012,792 402,382 7,415,174

6,574,364 298,863 6,873,227

Expenditure on:

Raising funds 4 4,625 - 4,625

5,472 - 5,472

Charitable activities

Mobilisation 5 1,230,211 19,688 1,249,899

1,273,589 17,152 1,290,741

Evangelisation 6 3,161,864 162,712 3,324,576

3,198,916 210,085 3,409,001

Mission Support 3,7 589,255 2,461 591,716

1,001,076 2,144 1,003,220

Administration Support 3,8, 17

848,162 - 848,162

829,033 - 829,033

Education and Information 9 55,129 - 55,129

62,750 - 62,750

Retirement 10 592,298 - 592,298

602,564 - 602,564

Total Expenditure

6,481,544 184,861 6,666,405

6,973,400 229,381 7,202,781

Net income/(expenditure) 531,248 217,521 748,769

(399,036) 69,482 (329,554)

Transfers between funds

- - -

-

Net movement in funds

531,248 217,521 748,769

(399,036) 69,482 (329,554)

Reconciliation of funds:

Total funds brought forward

1,889,065 244,971 2,134,036

2,288,101 175,489 2,463,590

Total funds carried forward

18, 19

2,420,313 462,492 2,882,805

1,889,065 244,971 2,134,036

All amounts relate to continuing activities. The notes on pages 22 to 33 form part of these financial statements.

20


Balance Sheet as at 31 December 2016

Note

2016

2015

£

£

Fixed Assets

Tangible fixed assets

12

45,490

45,463

Current Assets

Stock

12,935

15,296 Debtors

14

601,929

434,199 Cash at bank and in hand

3,002,658

2,057,162

3,617,522

2,506,657

Creditors: amounts falling due within one year

15

(780,207)

(418,084)

Net Current Assets

2,837,315

2,088,573

Net Assets

18, 19

2,882,805

2,134,036

Funds Unrestricted - General funds

888,652

319,514 - Legacy reserve

878,000

800,000 - Designated funds

653,661

769,551

18, 19

2,420,313

1,889,065

Restricted

18, 19

462,492

244,971

2,882,805

2,134,036

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 16 May 2017 and signed on their behalf by:

…………………………….. M.J. Rutty Trustee

The notes on pages 22 to 33 form part of these financial statements. Company no. 6541911

21


Cashflow Statement for the year ended 31 December 2016

Total funds

Prior Year

funds

£

£

Cash flows from operating activities:

Net Cash provided by/(used in) operating activities 960,489

(2,905)

Cash flows from investing activities:

Interest from investments 8,754

7,948 Proceeds from the sale of property, plant and equipment 3,650

201 Purchase of property, plant and equipment (27,397)

(7,007)

Net cash (used in)/provided by investing activities (14,993)

1,142

Change in cash and cash equivalents in the reporting period 945,496

(1,763)

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

2,058,925

Cash and cash equivalents at the end of the reporting period 3,002,658

2,057,162

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

Current Year

Prior Year

£

£

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

748,769

(329,554)

Depreciation 27,370

39,571

Interest from investments (8,754)

(7,948)

(Profit) on sale of fixed assets (3,650)

(201)

Increase in creditors 362,123

95,059

(Increase) in debtors (167,730)

(204,458)

Decrease in stocks 2,361

3,293

Donation of Fixed Asset -

401,333

Net provided by/(used in) by operating activities 960,489

(2,905)

The notes on pages 22 to 33 form part of these financial statements.

22

OMF INTERNATIONAL (UK) Notes to the financial statements


1 Status and general information

OMF International (UK) is a company limited by guarantee incorporated in the United Kingdom and a registered

charitable company (company number 6541911, England and Wales registered charity number 1123973 and

Scottish registered charity number SC039645). It is governed by its Memorandum and Articles and its registered office is Station Approach, Borough Green, Kent TN15 8BG.

2 Accounting policies

a) Basis of accounting and assessment of going concern

The financial statements are prepared on the historical cost basis of accounting, with items recognised at cost or transaction value unless otherwise stated in these accounting policies, in compliance with the Companies Act

2006, the Charities Act 2011 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) Fixed assets and impairments

Tangible fixed assets are stated at cost less depreciation. Assets are reviewed for indications of impairment at

each balance sheet date. If such indication exists, the recoverable amount of the asset is estimated and compared to the carrying amount. Where the carrying amount exceeds the recoverable amount, an impairment

loss is recognised in the statement of financial activities. c) 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%

d) 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.

e) 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 when receipt is probable and the value can be measured with

sufficient reliability.

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.

23



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

f) 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.

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.

g) 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.

h) 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.

i) Financial instruments Financial instruments are classified as either ‘basic’ or ‘other’ in accordance with Chapter 11 of FRS 102 and are recognised on the charity’s balance sheet when it becomes party to the contractual provisions of the

instrument. Financial instruments are initially measured at transaction price, unless the arrangement

constitutes a financing transaction, which includes transaction costs for financial instruments not subsequently measured at fair value. A financing transaction is measured at the present value of the future

payments discounted at a market rate of interest for a similar debt instrument. The only financial instruments held by charity are debtors, creditors, loans and investments. These are basic financial

instruments and are therefore recognised at the transaction price less any impairment.

j) Funds significant judgements and estimates The preparation of the financial statements requires the Trustees to make estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent

liabilities at the date of the financial statements. If in the future such estimates and assumptions, which are based on the Trustees' best judgement at the date of the financial statements, deviate from the actual

circumstances, the original estimates and assumptions will be modified as appropriate in the year in which

the circumstances change. The Trustees’ consider the following to be the main sources of estimation uncertainty:

Provisions – a provision for an exceptional legal case has been included within creditors. This has been

calculated with the assistance of lawyers and based on the Trustees’ available knowledge up to the date that the financial statements are approved.

24



Income recognition of legacies – legacies have been recognised when receipt is probable and on a case by

case basis once the value can be measured reliably, rather than adopting using a portfolio basis based on past experience.

k) Governance costs

Governance costs comprise the expenditure associated with fulfilling statutory obligations and providing

strategic direction to OMF International (UK).

2016

2015

£

£

Staff costs 7,405

7,652

Trustee Expenses 2,354

1,709 Auditors' fees - for audit 13,352

13,966

Auditors' fees - other 14,400

660 Notional Rental Cost 7,074

6,750

Other costs 5,859

12,991

50,444

43,728

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.

During the year OMF International (UK) received a donation for the General Fund of £100,000 from Lammermuir Limited (2015:£100,000).

Lammermuir Limited owed £3,243 to OMF International (UK) at 31 December 2016 (2015:£50,323).

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 £4,800 in donations (2015:£12,600) and £0 in conference payments (2015: £248) 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). 2 trustees received travel expense

payments during the year. The total trustees expenses paid in the year were £2,354 (2015:£1,709).

R.J. Porter and his wife received £8,180 (2015:£8,408) in allowances as a retired former mission worker of the charity in line with other UK based retired former mission workers of the charity.

25



4 Cost of raising funds

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

expenditure. Cost of generating funds was £4,625 (2015: £5,472).

5 Mobilisation expenditure

Unrestricted Funds

Restricted Funds

TOTAL 2016

Unrestricted Funds

Restricted Funds

TOTAL 2015

£ £ £

£ £ £

Staff salaries (note 11) 97,083 - 97,083

101,220 - 101,220

Member Allowance payments 399,977 - 399,977

388,099 - 388,099

Member Expense payments 22,019 - 22,019

22,936 - 22,936

Member Pension & Nat. Ins. 61,398 - 61,398

63,060 - 63,060 Home Assignment Allowances & Expenses

451,537 - 451,537

432,917 - 432,917

Notional Rental Cost 94,500 - 94,500

87,750 - 87,750

Literature & Information 58,455 - 58,455

73,164 - 73,164

Other Costs 40,124 19,688 59,812

100,771 17,152 117,923

Serve Asia Teams 5,118 - 5,118

3,672 - 3,672

1,230,211 19,688 1,249,899

1,273,589 17,152 1,290,741

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

6 Evangelisation expenditure

Unrestricted Funds

Restricted Funds

TOTAL 2016

Unrestricted Funds

Restricted Funds

TOTAL 2015

£ £ £

£ £ £

Overseas allocation to OMF International (Singapore)

2,330,241 135,640 2,465,881

2,382,375 186,502 2,568,877


246,938 - 246,938


1,075 - 1,075


536,010 - 536,010

Serve Asia Teams 15,352 - 15,352

11,015 - 11,015

Other costs 21,851 27,072 48,923

21,503 23,583 45,086

3,161,864 162,712 3,324,576

3,198,916 210,085 3,409,001

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.

26



7 Mission Support expenditure

Unrestricted Funds

Restricted Funds

TOTAL 2016

Unrestricted Funds

Restricted Funds

TOTAL 2015

£ £ £

£ £ £


83,821 - 83,821


237,680 - 237,680


12,145 - 12,145


25,224 - 25,224

Home Assignment Allowances & Expenses

50,171 - 50,171

48,102 - 48,102

Donations made - - -

401,333 - 401,333


124,875 - 124,875

Other costs 63,498 2,461 65,959

67,896 2,144 70,040

589,255 2,461 591,716

1,001,076 2,144 1,003,220

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 2016

Unrestricted Funds

Restricted Funds

TOTAL 2015

£ £ £

£ £ £


213,725 - 213,725


23,268 - 23,268


1,472 - 1,472


6,306 - 6,306

Information Technology 34,558 - 34,558

35,672 - 35,672


108,000 - 108,000

Exceptional Legal Costs 285,937 - 285,937

35,612 - 35,612

Exceptional Legal Claim - - - 200,000 - 200,000

Other costs 186,653 - 186,653

204,978 - 204,978

848,162 - 848,162

829,033 - 829,033

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.

27



9 Education and Information expenditure

Unrestricted Funds

Restricted Funds

TOTAL 2016

Unrestricted Funds

Restricted Funds

TOTAL 2015

£ £ £

£ £ £

Literature and information 12,668 - 12,668

18,152 - 18,152

Books and Conferences 1,666 - 1,666

3,335 - 3,335


27,763 - 27,763


13,500 - 13,500

55,129 - 55,129

62,750 - 62,750

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 2016

Unrestricted Funds

Restricted Funds

TOTAL 2015

£ £ £

£ £ £

Retired member allowance

payments 578,551 - 578,551

588,715 - 588,715


5,817 - 5,817

Member Expense payments 353 - 353

368 - 368


4,228 - 4,228


3,375 - 3,375

Other costs 156 - 156

61 - 61

592,298 - 592,298

602,564 - 602,564

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. 45 single retired members

and 28 married couples received payments in 2016.

28



11 Staff costs

2016

2015

£

£

Wages & salaries

356,727

369,621 Social security costs

26,829

32,319

Pension contributions

28,430

28,817

411,986

430,757

Staff costs analysed by function:

Note 5 Mobilisation Expenditure

97,083

101,220 Note 7 Mission Support

78,733

83,821

Note 8 Administration Support

204,977

213,725 Note 9 Education and Information Expenditure

27,295

27,763

Note 10 Retirement costs

3,898

4,228

411,986

430,757

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

The average number of employees was 16 (2015: 17).

Key management personnel comprise 8 senior managers (including the National Directors), of which 6

are supported members and 2 are employees. The total benefits received by key management personnel

in the year was £254,480 (2015: £267,030).

12 Tangible fixed assets

Fixtures

Computer Office and Motor

equipment equipment Fittings Vehicles Total

£ £ £ £ £

Cost or valuation

1 January 2016 167,920 57,392 29,373 24,850 279,535

Additions 13,032 3,622 3,793 6,950 27,397

Disposals (21,918) (690) (1,453) (21,650) (45,711)

31 December 2016 159,034 60,324 31,713 10,150 261,221

1 January 2016 (124,447) (56,516) (28,259) (24,850) (234,072)

Charge for the year (25,364) (995) (721) (290) (27,370)

Released on disposals 21,918 690 1,453 21,650 45,711

31 December 2016 (127,893) (56,821) (27,527) (3,490) (215,731)

Net book value

1 January 2016 43,473 876 1,114 - 45,463

31 December 2016 31,141 3,503 4,186 6,660 45,490

29



13 Capital commitments

No capital expenditure was contracted for or committed at 31 December 2016 (2015: Nil).

14 Debtors

2016

2015

£

£

Trade debtors 129

- Other debtors 5,627

6,195

Lammermuir Limited 3,243

50,323 Accrued income - Legacies 508,166

290,038

Accrued income - Gift Aid 32,577 31,709 Accrued Income - Other 2,151 4,174

Prepayments 50,036

51,760

601,929

434,199

Of the £508,166 legacies accrued, £225,825 had been received by the charity at the date the financial

statements were signed.

15 Creditors: amounts falling due within one year

2016 2015 £ £ Sundry creditors 220,076 115,061

Accruals - general 23,109 21,592

Exceptional legal claim accrual 200,000 200,000

Exceptional legal fee accrual 240,000 -

Taxation & social security 5,159 23,083

OMF International (Singapore) (310) 2,552

Deferred income 92,173 55,796

780,207 418,084

Reconciliation of deferred income

2016

£

Amount deferred at January 1 2016 55,796

Amounts released (26,947)

Amounts deferred in year 63,324

Deferred income at 31 December 2016 92,173

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.

30



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.

16 Financial instruments

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

2016 2015 £ £ Financial Assets Financial assets at amortised cost 3,554,551 2,439,601 Financial Liabilities Financial liabilities at amortised cost 688,034 362,288

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

debtors, Lammermuir Limited and accrued income of £542,894 (2015:£325,921)).

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).

17 Contingent Liability

As at the time of signing these accounts OMF International (UK)’s lawyer’s are in discussion with the potential claimants’ lawyer’s. OMF International (UK) has made provision for an exceptional legal claim 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.

Legal Claim

Provision

£

Balance 01/01/2016

200,000

Additions during period

-

Charges during the period

-

Unused amounts reversed in the period

-

Balance 31/12/2016

200,000

31



18 Funds

Balance Income Expenditure Transfers Balance

01/01/2016

31/12/2016

General Fund 319,514 6,443,176 (5,871,189) (2,849) 888,652

Legacy Reserve 800,000 - - 78,000 878,000

Designated Funds:

Joining Members Fund 85,476 (57,475) (6,114) - 21,887

Home Ministry fund 563,221 555,547 (501,708) - 617,060 150th International Gathering Fund

4,508 - - (4,508)

-

IT Project Fund 11,602 - (8,722) - 2,880

Bridge Asia 87,551 14,132 (31,040) (70,643) -

Serve Asia Fund 11,048 19,007 (20,470) - 9,585

Other Designated Funds 6,145 38,405 (42,301) - 2,249

Total Designated funds 769,551 569,616 (610,355) (75,151) 653,661

Total Unrestricted Funds 1,889,065 7,012,792 (6,481,544) - 2,420,313

Restricted Funds

Holland Legacy Fund 28,843 - (6,500) - 22,343 China Youth Project Mobilisation 12,750 - - - 12,750 Margaret Aldis Retiree Costs Fund - 234,643 -

234,643

Chapman Legacy 125,286 500 (5,663) - 120,123

Member Ministry Development Bursary

50,000 - (13,950)

36,050

Leah Evans Bequest 8,171 - - - 8,171

Other Miscellaneous Funds (<£8k)

19,921 31,599 (23,108) - 28,412

Other Overseas funds - 135,640 (135,640) - -

Total Restricted Funds 244,971 402,382 (184,861) - 462,492

Total Funds 2,134,036 7,415,174 (6,666,405) - 2,882,805

32



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 150th International Gathering Fund was created to fund costs associated with the celebration of the 150th

anniversary of the China Inland Mission, which later became OMF International. The fund has now been closed, with the remaining balance transferred to the General Fund.

The Bridge Asia Fund has been set up to fund a volunteer involvement initiative for three years. The fund has now been closed with the remaining balance being transferred to the General Fund.

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

2014. The remaining funds are to be expensed on IT developments in the coming year.

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

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 (China Youth Project Mobilisation) fund is to be used in relation to a youth project and work in China.

The Margaret Aldis Retiree Costs Fund is from a legacy and is to be used to fund retiree member allowances.

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).

Other miscellaneous funds comprises of several funds with an individual fund balance of less than £8k used for work in the UK.

33



19 Analysis of net assets between Funds

Tangible

Fixed Assets

Net Current

Assets Total 2016

£ £ £

Unrestricted Funds

General Fund

45,490 843,162 888,652

Legacy Reserve

- 878,000 878,000

Joining Members Fund

- 21,887 21,887

Home Ministry Fund

- 617,060 617,060

IT Project Fund

- 2,880 2,880

Serve Asia Fund

- 9,585 9,585

Other Designated Funds

- 2,249 2,249

Total Unrestricted Funds

45,490 2,374,823 2,420,313

Restricted Funds

Holland Legacy Fund

- 22,343 22,343

China Youth Project Mobilisation

(CMI) - 12,750 12,750

Margaret Aldis Retiree Costs Fund

234,643 234,643

Chapman Legacy

- 120,123 120,123

Member Ministry Development

Bursary

- 36,050

36,050

Leah Evans Bequest

- 8,171 8,171

Other miscellaneous UK Funds (<£8k)

- 28,412 28,412

Total Restricted Funds

- 462,492 462,492

20 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.

21 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 8 members of the company at 31 December 2016 (2015:9).

Documents

OMF INTERNATIONAL (UK) · 31 December 2016. The reference and administrative details set out on page 3 form part of this report. The financial statements comply with current statutory