Finance

May – August 2022
Financial overview 2021

Writing this shortly after the Russian invasion of Ukraine, I am conscious that we have moved on from the uncertainty of the pandemic to a different kind of uncertainty that has not been experienced in this country for many years.

However, just as in the previous two years, the Lord has continued to provide amazingly for OMF (UK) through many of you reading this. As a result, our workers were again fully funded from a combination of personal support gifts and General Fund in 2021. This means that where the income designated for specific member’s support was under their budget we had sufficient General Fund available to top up their support to their budgeted level.

We were grateful for the extra £780,000 legacy income we received in 2021 compared to 2020. We have not actually received all the money for these legacies but have to include the amounts for those legacies we knew about on 31 December 2021. We have a good idea of the amount we may eventually receive, even if we haven’t actually received the money. The legacy income values below may change by the time accounts are signed, if we receive information that the income amount we originally anticipated is going to be different by a significant amount.
The investments we received from Lammermuir at the end of 2019 also performed well in 2021, rising in value by £662,000. As I’m sure some of you will appreciate, this ‘investment gain’ is only a ‘paper transaction’ and to turn it into cash that we can use for ministry we would need to sell some of the investments. Please continue to pray for wisdom for OMF (UK)’s Investment Committee as they make decisions on these matters.

The income items in the annual accounts are fairly easy to understand, unfortunately the expenditure items are less so. This is due to another regulatory requirement which requires us to share out the departmental and member ministry costs across the different types of activities of the organisation.

The biggest activity in monetary terms is Evangelisation at £3,779,000. This includes the money transferred for overseas ministry (£1,975,000), a large proportion of UK-based Diaspora Returnee Ministry (DRM) member allowance costs (£614,000) and about 90% of UK member National Insurance and pension contributions (£684,000).

The second largest area of expenditure is Mobilisation. About 60% of the allowance and ministry costs of members working in the UK Centre (£308,000) is included under this activity. In addition to the UK Centre member costs, 90% of the allowance and ministry costs (£260,000) of members on Home Assignment are allocated to this activity, reflecting the important mobilisation role played by members on Home Assignment. Other costs allocated to Mobilisation include the remaining UK DRM allowance costs, UK member National Insurance & Pensions (as they are associated with the members working on HA or working in the UK) and a large proportion of the Communications team’s costs, such as Billions magazine printing and distribution.

The Retirement activity amount consists of the retirement allowances paid to retired members who do not have normal OMF pensions. A small amount of the Finance Team costs is also allocated to the retirement activity to reflect the time spent on the administration of the retirement allowances.

The Mission Support expenditure includes the allocated cost of processing candidates and providing pastoral care to personnel engaged in Mobilisation and Evangelisation. The majority of the remaining UK Centre member costs are allocated to this category, along with a significant proportion of the remaining UK Centre non-member costs.
The Administration Support activity includes the remaining allocated ‘head office’ type of costs, such as IT, human resources administration, finance team, insurance, property costs etc.

Thank you for your faithful part in OMF (UK)’s ongoing ministry through praying and giving.

Jeff Hall
Director for Finance & Corporate Services

Notes
– The figures shown below are taken from the version of the annual accounts provided to our auditors. Some of the numbers will change due to accounting regulations e.g. legacy income, by the time the accounts are formally signed off by the Trustees.