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Director’s Report
Statutory, Regulatory and Other information
Responsibilities of the Board: Under the Friendly Societies Act 1992, the Board is required to prepare Financial Statements for each financial year which gives a true and fair view of the state of affairs of the Society and of the income and expenditure of the Society for that period. In preparing the Financial Statements, the Board is required to:
Select suitable accounting policies and then apply them consistently
Make judgements and estimates that are reasonable and prudent
State whether applicable 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 Society will continue in business.
Directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Society and to enable them to ensure that the Financial Statements comply with the Friendly Societies Act 1992. They are responsible for safeguarding the assets of the Society and henceforth taking reasonable steps for the prevention and protection of fraud and other irregularities.
Principal Activities
The principal activity of the Society continued to be the provision of Income Protection insurance cover for its members in times of illness and accident and, for those legacy members with a Century, Holloway or a BA in Work Plan, a capital sum on withdrawal. Servicing of existing loan facilities to legacy members continues, with loans being managed through the subsidiary company BFS Members Services Limited, which is a firm regulated by the Financial Conduct Authority for consumer credit activities. The Board are satisfied and of the opinion that all activities performed during the year by the Society and its subsidiary have been carried out within their respective powers.
Subsidiary Company
The results of the subsidiary company are disclosed in Note 10A to these Financial Statements. As of 31 December 2022 the Directors were Simon Owens and Reeshi Harania. The company has no employees, and no remuneration was paid to the Directors.
Member Bonuses and Apportionment
The Board announced the 2022 bonus rates as follows:
Statement of Disclosure to Auditors
The Directors of the Society have taken reasonable steps to ensure that they are aware of any relevant audit information and that such information has been disclosed to the Society’s auditors.
Prudential Risk
The Society has actively reviewed and maintained the required margin of solvency throughout 2022 in accordance with the PRA regulations. The Board has carried out a robust assessment of the principal risks facing the Society, including those that would threaten its business model, future performance, solvency and liquidity. The Society’s principal risks are summarised in the Strategic Report. Taking into account the Society’s current position, the Board’s expectation is that the Society will be able to continue in operation and meet its liabilities as they fall due over the five-year strategy period.
The Society’s business activities, together with principal risks and uncertainties are set out in the Strategic Report on pages 9 to 12. In addition, Notes to the Financial Statements include the Society’s objectives, policies and processes for managing its capital, its financial Risk Management objectives, details of its financial instruments, and its exposure to credit and liquidity risks. The Board of the Society believes that the Society is well placed to achieve its strategic objectives. As a consequence, the Board believes that the Society is well placed to manage its business risks successfully despite the current uncertain economic outline following recent political and economic events. The Board has a reasonable expectation that the Society has adequate resources to continue in operational existence for the foreseeable future.
