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2020-12-31-accounts

British Union Conference of Seventh-day Adventists

Registered Charity No: England and Wales: 1044071 Scotland: SC040701

TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

British Union Conference of Seventh-day Adventists

Contents

Page
Trustees and Advisors 1
Trustees' Report 2
Auditor's Report 43
Group Statement of Financial Activities 47
Charity Statement of Financial Activities 48
Charity and Group Balance Sheet 49
Statement of Group Cash Flow 50
Notes to the Financial Statements 51

Reference and Administrative Details of the Charity, its Trustees and Advisers

for the Year Ended 31 December 2020

Trustees

Pastor I W W Sweeney (Chairperson) Pastor J C Surridge (Executive Secretary) Mr E Ramharacksingh (Treasurer) Pastor A Andersson Mrs A Awuku Dr J Baildam Pastor E Bran Mr J Donaldson Pastor M Herel Miss A Hutchinson Pastor R Jackson Mr N Jepuranovic Pastor R Kamal Mr P King Miss C Knight Pastor G Kumi Mr M Martin

Mr C Morgan

Mr M Ndebele Miss Andisiwe Ndlovu (From 12 Mar 2020) Pastor D Neal Pastor E Osei Mrs S Prince Miss E Sanguesa Mr D Santineer Pastor D Serb Pastor D Stojkovic Mrs E Tebbs-Ogutu Pastor K Thomas Pastor S Thomas Pastor P Tompkins Dr J Walton Pastor E Williams

Registered Charity Numbers England & Wales 1044071 Scotland SC040701

Principal Office

Stanborough Park Garston, WATFORD, WD25 9JZ

Auditors

Moore Kingston Smith LLP 4 Victoria Square ST ALBANS, AL1 3TF

Bankers

HSBC Bank plc 73 High Street WATFORD, WD1 2DS

Solicitors

Anthony Collins LLP 134 Edmund Street Birmingham, B3 2ES

Solicitors

Penman Johnson 5 George Street Watford, WD18 0SQ

Pension Scheme Advisors

(Actuarial & Administrative)

Barnett Waddingham LLP Chalfont Court, Hill Avenue AMERSHAM, HP6 5BB

Pension Scheme Advisors

(Solicitors) Sacker & Partners 29 Ludgate Hill LONDON, EC4M 7JQ

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British Union Conference of Seventh-day Adventists Trustees’ Report for the Year Ended 31 December 2020

The Trustees submit their annual report and the audited financial statements of the British Union Conference of Seventh-day Adventists (the Charity) for the year ended 31 December 2020. The Trustees confirm that the annual report and financial statements of the Charity comply with current statutory requirements, the requirements of the Charity’s governing document and the provisions of the Charity SORP and FRS 102 ‘The Financial Reporting Standard Applicable in the UK and Ireland (United Kingdom Generally Accepted Accounting Practice). They have complied with the duty in section 4 of the Charities Act 2006 to have due regard to public benefit guidance published by the Charity Commission. The Trustees confirm that they have sought to comply with the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006.

Structure, Governance and Management

Constitution

The constitution currently in force was last amended on 1 July 2016.

Method of Appointment or Election of Trustees

The management of the Charity is the responsibility of the Trustees who are elected and coopted under the terms of the constitution.

Policies Adopted for the Induction and Training of Trustees

New trustees are provided with copies of the Charity’s constitution, its Policy Book and Education Handbook, Pension Plan Explanatory Booklet and minutes of the executive committee meetings for the current year. In addition, each trustee receives a copy of the Charity Commission document “The essential trustee – what you need to know, what you need to do” and the regular Charity Commission Newsletters. In addition, Trustees are provided with regular bulletins from the Churches Legislative Advisory Service.

In as much as the majority of new trustees start their term of office at the commencement of each new quinquennium the primary induction is provided at the first meeting of the quinquennium, with further support during the term of office.

Organisational Structure and Decision Making

The Charity is the principal administrative body of the Seventh-day Adventist Church in the United Kingdom and the Republic of Ireland. It generally works in harmony with the policies of the Church’s international office of the General Conference of Seventh-day Adventists, the

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British Union Conference of Seventh-day Adventists Trustees’ Report for the Year Ended 31 December 2020

Trans-European Division, situated in St Albans, Herts.

Within its territory, the Charity carries out its objects both directly and through related organisations. Principally the latter consist of three ‘Missions’ in Ireland, Scotland and Wales respectively (all branches of and financially dependent upon it), two ‘Conferences’ in North and South England respectively (both registered charities in their own right and financially selfsupporting).

Within these latter organisations the objects are pursued mainly through a network of local churches which are heavily dependent upon a large pool of voluntary lay support.

Additionally, specialised aspects of the Charity’s purposes are performed on its behalf by a number of subsidiary organisations.

Related Organisations

The following subsidiary organisations have carried out certain aspects of its operations:

Reporting Serious Incidents

The Trustees continue to assess the major risks to which the Charity is exposed, in particular those related to the operations and finances of the Charity, and are satisfied that systems are in place to mitigate our exposure to the major risks and that there were no serious incidents that they failed to bring to the Commission’s attention.

Safeguarding

Through the activities of local congregations and the Youth, Family and Children’s Ministries departments the Charity works with children and has a safeguarding policy and a procedure for DBS Disclosure applications for employees and volunteers working with children and also for those working with vulnerable adults.

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British Union Conference of Seventh-day Adventists Trustees’ Report for the Year Ended 31 December 2020

Objectives and Activities

Policies and Objectives

The Charity has adopted the following objectives in pursuit of its mission to proclaim the everlasting gospel of our Lord and Saviour Jesus Christ, to teach the commandments of God as the supreme rule of life and to encourage people to become His disciples and responsible members of the Church and to support charitable and humanitarian work which is in harmony with the doctrines and principles of the Seventh-day Adventist Church:

Strategies for Achieving Objectives

In summary the strategies used to achieve the above objectives have been to:

Achievements and Performance

During 2020, despite the major restrictions of COVID, the Church experienced growth in church membership in all its regional sections and at the year-end registered a total of 350 accessions through baptism and a further 123 by profession of faith. Total net growth for the year was 379, taking the membership figure at 31 December 2020 to 39,970.

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British Union Conference of Seventh-day Adventists Trustees’ Report for the Year Ended 31 December 2020

Review of Activities

The Seventh-day Adventist Church congregational activities that take place, in the 297 churches and 111 companies, seek to provide public benefit by the advancement of religion through a variety of centres for weekly worship services, prayer meetings and other programmes that are open to the local communities in which they are located. Depending on the size and resources of the local congregation these activities include weekly family worship, Bible study classes for all age ranges from infancy to adult, prayer meetings, and Adventurer, Pathfinder and senior citizen clubs, health awareness events and family support programmes. These local congregational activities are supported from the regional and national headquarters through various departmental training events, activity programmes, and personnel support and resource provision.

In 2020 the COVID pandemic caused major disruption to the usual physical services provided by local churches, and the training events provided by the departments. The transition to virtual meetings and events was swift and efficient, with members, ministers and leaders learning new techniques quickly. As a result, service to our members and communities has been maintained, albeit in different forms.

Some of the support provided from national headquarters is outlined below by department:

Adventist Discovery Centre

The mission of the Adventist Discovery Centre, UK & Ireland (ADC) is to share the message of Jesus Christ to people of all background, age and status. The ADC offers Bible and Health courses via post, online and at local churches to enhance the health, lifestyle and spiritual wellbeing of students and online visitors. This work is carried out in partnership with local churches, Prison Chaplains and via social media.

The national interruption of people movement and services across the UK and Ireland, due to the COVID-19 pandemic, has caused minimal challenges for the ADC Team as changes already implemented in 2019 were smoothly transitioned to remote working and offer of services to our clients and students. As a result, the ADC achieved and exceeded goals set for 2020.

The year 2020 marked seventy-five years (75) of the ADC being in operation in the UK and Ireland. In celebration, the ADC embarked on the following projects:

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British Union Conference of Seventh-day Adventists Trustees’ Report for the Year Ended 31 December 2020

to a high quality thus providing improved resources to students and local churches.

In the interest of safety for staff and students, the ADC has temporarily suspended all paperbased lessons. This reduced service is reflected in our potential 2020 student numbers.

The ADC accepted 181 new students enrolled via paper copies by end March 2020. This would have allowed for an additional 543 students by end 2020. However, with the need to place staff on flexible furlough and temporary cessation of postal work, the year ended with a marked reduction of paper-based students. There were an additional 273 active paper-based students in 2020 which included those who have continued studying with us from previous years. A total of 220 students graduated by the end of 2020. A large number of students transitioned from paper to online studies and are still being served by the ADC.

The removal of students from our database, by their choice, in accordance with GDPR were completed by the end of 2019. However, we also saw an increase of online students’ intake during 2020. The ADC recorded an additional 320 online and active students with 65 graduations by December 2020.

It must be noted here that in order to comply with the UK and Ireland social distancing regulations, the ADC will continue to promote online studies as a preference to our students. Work has already begun in the training and launching of local churches Online Bible Schools. By undertaking this approach, the ADC will in effect establish local hubs in churches while providing both administrative and technical support to online Bible Schools across the UK & Ireland.

Another marked effect of home-working as a result of staff remaining on flexible furlough is

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British Union Conference of Seventh-day Adventists Trustees’ Report for the Year Ended 31 December 2020

that the ADC delivered 426 Free Bibles across the UK and Ireland in 2020. The decision was also taken to reduce costs by withdrawing the internet subscription for FreeBible advertising which has resulted in a reduction of those interacting with the FreeBible website. Our work with HMP institutions were also affected. However, work has now begun to liaise with Prison Chaplains in order to identify methods of support for HMP residents.

ADC plans for 2021 include:

Children’s Ministries

The primary role of the Children’s Ministries department is to partner with leaders at every level of the church structure to support children to fulfil their potential in the areas of spiritual, emotional and physical health.

The Government’s COVID-19 lockdown and the resulting financial burden that resulted led to the reluctant decision to furlough several departmental directors, including Children’s Ministries. The strict conditions of the Job Retention Scheme have meant that the work of the department has been severely curtailed. This has been incredibly frustrating at a time when families have needed support more than ever.

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British Union Conference of Seventh-day Adventists Trustees’ Report for the Year Ended 31 December 2020

guidance in addition to lists of organisations that specialise in assisting those who are surviving abuse or require guidance in safeguarding matters.

Communication

If there was ever a time the importance of communications would come to prominence, it would during COVID-19. In times of national crisis, the communication of any organisation needs to be clear, current and decisive. This needed to be the case within the British Union Conference when for the first time for many a generation, lockdown measures introduced in March 2020 would impact not just church services but every aspect of how the church would function. So, with the need to provide consistent communique to members across the British Isles due to the pandemic, the Communication department stepped up a gear.

With the closure of churches and the uncertainty about how the pandemic would affect the functioning of the church, it was necessary to provide relevant and up to date information on our BUC website and via BUC News .

BUC News , which goes out weekly, became the main source of reaching people quicky during a period when the situation in this country was changing so rapidly. This was demonstrated with the increase in subscriptions now surpassing 6000 (not including the BUC ministerial workforce). The BUC website was the platform where press releases were placed regularly from the BUC Admin and the Health Ministries department, offsetting the potential of many calls to the BUC office.

Merging with the Media department, communication of information became a necessity through all the BUC social media platforms as well as the now popular Zoom.

Survey on Online worship

In July 2020, the communications department conducted a BUC wide survey looking at the online practices of church members. Over 1000 people responded to the survey providing great insight into how the church can operate for the future.

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British Union Conference of Seventh-day Adventists Trustees’ Report for the Year Ended 31 December 2020

The purpose of the survey was to gather the scope, practice and impact of online church upon members within the BUC, thus examining the effectiveness of an online church and how members are adapting to this new form of experience.

Using an online, self-administered, anonymous survey, powered by SurveyMonkey, a 10-item questionnaire was sent electronically to members within the BUC territory.

The full results can be seen here https://adventist.uk/news/article/go/2020-07-24/709/

Some of the interesting results showed how members were able to adapt to a new way of worship where on average members would view up to three different services on a sabbath.

Some of the comments about online services ranged from:

"More time with the family, am having more quiet time with God, more time to read the Bible, study and rest."

"Usually I don’t make it to Sabbath school, so having Sabbath school online helped."

"Lack of physical interaction with the church family, online worship is too impersonal, nothing can replace the richness of reaching people in a very personal way."

"It's confusing. I WANT MY CHURCH BACK!

The survey challenges us to redefine what church really is ... in reality, the church never actually closed, just the doors to many of our buildings.

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British Union Conference of Seventh-day Adventists Trustees’ Report for the Year Ended 31 December 2020

Many churches have kept their church doors open but redefined what their ministry is all about. The numerous news stories that have come through my department of how local churches are supporting their communities through food supplies and various provisions have heartwarming and makes one proud to be a Seventh-day Adventist.

– Digital church the way forward?

This period of church closure is a preparation for what will come in the near future when we have to develop new ways of worship under a period of severe duress when our faith will be sorely tested in the most trying and testing times.

With many churches now moving to online services and perhaps for the first time, there was an apparent need to train church leaders in the rudiments of this new way of doing digital service. In the early stages of the Zoom platform between March and June 2020, we had several churches exposed to security breaches during their online services. This called for further training and communication to church leaders to safeguard their streaming and to ensure effective security was in place.

The Communication department became busy responding to queries, those seeking advice and reacting to crisis situations. By developing a list of all the churches within the BUC engaged in live streaming, the department was able to provide a directory available to those members whose churches were not able to function in this way. This live streaming directory was updated regularly as more churches caught the vision of online services and its potential in reaching further beyond the local church environment. We can clearly see that online church is here to stay and an organisation we need to ensure we keep ahead of the game.

Community Services

Due to COVID-19 and National Lockdowns, a number of departmental activities, projects and programmes were postponed. However, this gave rise to innovations developed to meet community needs as our departments responded to the pandemic.

Key departmental objectives:

Values: Adaptability; Compassion; Equity; Human Dignity; Inclusion; Non-judgemental; Understanding.

Operational Focus: Building trust, Valuing diversity, Fostering inclusion, Meeting needs.

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British Union Conference of Seventh-day Adventists Trustees’ Report for the Year Ended 31 December 2020

In seeking to fulfil the above vision, mission and values, the work of the BUC Community Services department has been organised around the areas of social justice, compassionate outreach addressing presenting needs, spiritual needs, mission mandate, relational support & training and church engagement as follows:

REACHING UP – Spiritual development and nurture

To emulate the ministry of Christ by making the gospel available to all diverse groups through, relevant, compassionate service and inclusive worship.

Dissemination of relevant publications to nurture spiritual growth.

Facilitating a Prayer Network for individuals with personal, social, political and religious challenges in order to offer practical and spiritual support to themselves and their families.

REACHING OUT - Mission focussed activities, evangelism & community enhancement

This department aims to foster a welcoming and sensitive environment that makes our churches relevant, inclusive and available to every person, regardless of age, social class, gender, religious persuasion, ethnicity or disability.

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British Union Conference of Seventh-day Adventists Trustees’ Report for the Year Ended 31 December 2020

REACHING IN - Development and nurture of leaders and membership

Our objective is to encourage an inclusive approach that enables each individual to fully participate in the life of the church through worship, fellowship and service in a way that is meaningful to them and allows them to grow spiritually.

  1. Surviving and Thriving through Traumatic Life Events – conference scheduled for 26 April, cancelled due to the pandemic.

  2. Dissemination of information on coping mechanisms when experiencing trauma and bereavement.

  3. National Autumn Conference for Adventist Community Services leaders, cancelled due to the pandemic.

  4. Dissemination of materials on outreach initiatives during COVID-19

  5. Online training undertaken with ADRA-UK for Community Services leaders on how to undertake outreach interventions safely during the pandemic.

REACHING ACROSS - Whole church connectivity and engagement

Engaging the whole church in meeting the needs of diverse individuals by included them in corporate training events and making relevant resources available to them.

Community awards to churches

The Director awarded £500 (from the Community Services budget), to each of the following churches for their outstanding service to the community:

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British Union Conference of Seventh-day Adventists Trustees’ Report for the Year Ended 31 December 2020

Amongst the community interventions the above churches engaged in were: Homeless Feeding, (Soup Kitchens, Food parcels) operating Food Banks, Providing Homeless Shelters, Clothes Banks, Children’s Toys for underprivileged children, computer classes and English Classes for immigrant families.

Donations to external entities undertaking community outreach

MP commendation

A letter of appreciation and acknowledgement by Dean Russell MP for Watford was awarded to Sharon Platt-McDonald* for developing and participating in community outreach initiatives during the pandemic.

*Sharon is Director for Health, Adventist Community Services and Women’s Ministries.

Education

Key Objective:

To provide strategic development, support and training for Governing Bodies, Head teachers, teaching and non-teaching staff of all of our schools in the UK. To provide educational support to parents in our congregations and local communities. To foster a desire to broaden individual and collective educational pursuits within our congregations.

In our schools our aim is that:

Values:

The aim of true education is to restore human beings into the image of God as revealed by the life of Jesus Christ. Only through the guidance of the Holy Spirit can this be

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British Union Conference of Seventh-day Adventists Trustees’ Report for the Year Ended 31 December 2020

accomplished. An education of this kind imparts far more than academic knowledge. It fosters a balanced development of the whole person, spiritual, physical, intellectual, and social-emotional, a process that spans a lifetime. Working together, homes, schools, and churches cooperate with divine agencies to prepare learners to be good citizens in this world and for eternity.

Operational Focus:

REACHING UP

The focus has been to ensure that our educational institutions maintain their Adventist Ethos and Mission; thereby providing quality, Christian education for all pupils.

Training provided:

Impact:

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British Union Conference of Seventh-day Adventists Trustees’ Report for the Year Ended 31 December 2020

REACHING IN

The focus has been to work closely with our leaders to foster a healthy work-life balance as this can be challenging. The aim was to help leaders achieve work-life balance by instituting procedures, actions, and expectations that enable them to pursue more balanced lives, and thereby disseminate that to their staff fostering a balanced fruitful working environment.

Training provided:

Impact:

REACHING OUT

To raise the focus of Christian Education UK-wide in our congregations and their local communities completed ‘virtually’.

Educational programmes held throughout the year:

Impact:

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British Union Conference of Seventh-day Adventists Trustees’ Report for the Year Ended 31 December 2020

Evangelism

The Evangelism department of the British Union Conference is established to envision, motivate, train, equip and deploy the general membership of the British Union Conference to be of use/service to the communities they live in and represent. The underlining motivation for this is the biblical teaching that we should be salt and light wherever we go; practically helping people to better their lives, spiritually, educationally, emotionally and socially. Like the biblical model we seek the wholistic health and wellbeing of the human race. Focusing on the environment is as important for the Church. We are guided by holy writ to take care of nature and God’s creatures.

The year 2020 was riddled with the scourge of the COVID-19 pandemic. The Churches and institutions within the British Union Conference had to make drastic alterations to their plans and programmes to accommodate this phenomenon. At the same time the crises allowed the charity to work in innovative ways to reach its goals and objectives.

During 2020 reports received from the membership suggested that some 5,100 members were actively engaged in working in their various communities. Due to the pandemic this number is down from last year. As a result, 5,009 pieces of health, religious, family or youth related literature were distributed in communities spanning the British Union Conference territory. Furthermore, some 150 health, community or religious seminars were conducted in various communities throughout the British Isles.

Members operating in the community ran some 850 community ministries events. These were either mobile soup runs, mobile health checks and health expos before the lockdown, or local churches opening to the community to offer food, clothing, shelter, or other community-based services. Many of our Churches throughout the British Isles continued their food banks to respond to the growing need in the community. These food banks continued to operate throughout the various lockdowns and were a blessing to the thousands that they served. The feedback on this has been very positive and encouraging. The young people were very active in the community in a number of these activities as the photographs will show.

One of the outstanding initiatives of 2020 was that undertaken by 6-year-old Eliana Mendes whose parents are Pastors. She wanted to support Children in Scotland facing difficult home situations. She wanted them to get a hand-made teddy bear and a care package. The bears would be made by her parents, her sister, volunteers and herself. She enlisted the help of

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British Union Conference of Seventh-day Adventists Trustees’ Report for the Year Ended 31 December 2020

Women’s aid South Lanarkshire and East Renfrewshire. She then set up a go fund me page with a goal of £600. She raised £850 so that many Children could receive wellbeing packs and “worry bears” as she calls them. The money was given to the Charity and the bears were made by her and the volunteers.

As a result of all these activities some 300 people requested Bible studies with the members of the Church, and many of these joined the Church to add to the ranks of those who have an interest in serving humanity and making the world a better place. Many people from the community are now volunteering at our food banks and Churches where we cook and supply hot meals to many vulnerable members of the community. As a charity that cares for the overall development of the individual, we are willing, and continue to be happy to serve with love.

The department will continue to foster the growth and development of each member so they can continue to help in community development, cohesion and making our society a better place to live. The photographs below capture just a sample of some of the training/community programmes our members have been engaged in during 2020.

The Croydon SDA Church preparing food for those self-isolating and other persons in the Community.

The North England Conference of SDA preparing food for distribution in the community.

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British Union Conference of Seventh-day Adventists Trustees’ Report for the Year Ended 31 December 2020

Meals served by volunteers in Ireland.

Community training in Wales via zoom.

Seventh-day Adventist members and volunteers in Ireland (Above) getting ready to serve hot meals to homeless and others.

Preparing for the soup and meals run in Wales

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British Union Conference of Seventh-day Adventists Trustees’ Report for the Year Ended 31 December 2020

The teddy bears for the care project in Scotland.

Eliana’s care package and “worry bear” project in Scotland for Children experiencing difficult home situations.

Receiving the items and check for the care project Scotland.

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British Union Conference of Seventh-day Adventists Trustees’ Report for the Year Ended 31 December 2020

Food products for distribution to the vulnerable, homeless and self-isolating in Glasgow Scotland.

Pastor Mendes arriving with more food products for distribution in Scotland.

Family Ministries

The primary role of the Family Ministries department is to partner with leaders at every level of the church structure to support the families in both church and community.

The Government’s COVID-19 lockdown and the resulting financial burden that resulted led to the reluctant decision to furlough several departmental directors, including Family Ministries. The strict conditions of the Job Retention Scheme have meant that the work of the department has been severely curtailed. This has been incredibly frustrating at a time when families have needed support more than ever.

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British Union Conference of Seventh-day Adventists Trustees’ Report for the Year Ended 31 December 2020

Health Ministries

Due to COVID-19 and National Lockdowns, a number of departmental activities, projects and programmes were postponed. However, this gave rise to innovations developed to meet community needs as our departments responded to the pandemic.

Key objective – To encourage and train the membership on healthy lifestyle choices in a holistic approach to wellbeing.

Values: Respect for differences; Temperate in work, rest and lifestyle practices; Abstinence from harmful products; Balanced approach to emotional, physical, spiritual and social wellbeing; Optimal dietary choices; Regular Exercise & Fresh Air; Harmonious Relationships; Nonjudgemental attitude

REACHING UP – Spiritual development and nurture

Reaching the whole person by encouraging fitness for life through healthy lifestyle choices in a holistic approach to wellbeing that enables them to become a healthful witness to the communities that they serve.

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British Union Conference of Seventh-day Adventists Trustees’ Report for the Year Ended 31 December 2020

REACHING OUT - Mission focussed activities and evangelism

In responding to circumstance where individuals experience infirmity of body, mind or spirit, we seek to foster an approach that is compassionate as we serve others with the humility and love of Christ.

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British Union Conference of Seventh-day Adventists Trustees’ Report for the Year Ended 31 December 2020

REACHING IN - Development and nurture of leaders and membership

To encourage and train the membership to embrace healthy lifestyle choices in a holistic approach to wellbeing that is balanced and evidenced based.

REACHING ACROSS - Whole church connectivity and engagement

That through the promotion of optimal health practices; members will experience abundant living and so better able to share the message of health, hope and healing with others.

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British Union Conference of Seventh-day Adventists Trustees’ Report for the Year Ended 31 December 2020

Personal development

Ministerial Association

The Ministerial Association exists to serve Jesus Christ and the Church by ministering to pastors, pastors’ families, local church leaders, administrators, departmental directors and Conference and Mission Ministerial Association Secretaries.

Our practice is best reflected in the values of the BUC. Reflecting Christ, Inspiring Hope, Valuing People, Changing Lives.

During 2020 we strategically followed the Ministerial Association Key objective: To foster spiritual growth, development, equipping, nurturing and resourcing of the ministerial, eldership and diaconate of the British Union Conference.

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British Union Conference of Seventh-day Adventists Trustees’ Report for the Year Ended 31 December 2020

The Department has:

Inevitably, the Ministerial Association has also been a victim of the COVID -19 Global Pandemic. Early in March it became evident that this wretched virus would prove deadly. The Department was furloughed on 9 April 2020. November saw the department operate on a one day a week basis.

We do not lose heart during these unprecedented times. With the arrival of the vaccine and our fervent certainty in the Advent hope, we are confident that 2021 will be a better year.

Women’s Ministries

Due to COVID-19 and National Lockdowns, a number of departmental activities, projects and programmes were postponed. However, this gave rise to innovations developed to meet community needs as our departments responded to the pandemic.

Values: Christian Service and Contribution; Discipleship and Nurture; Friendship & Support; Giftedness and Development; Personal Worth & Value; Poise & Inner Beauty; Respect & Protect.

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British Union Conference of Seventh-day Adventists Trustees’ Report for the Year Ended 31 December 2020

Under the caption: Empowered – Reaching Women, Restoring lives, Reflecting Christ, the key objective of this department is to equip and nurture women to achieve their full potential in their personal lives as well as in their families, churches and community.

Fulfilling this objective the following categories and KPI’s helped to frame the work and ministry of the department:

REACHING UP - Spiritual development and nurture

Encouraging and nurturing Christian values in women that will enhance their roles in their homes, churches and community.

REACHING OUT - Mission focussed activities and evangelism

Addressing issues peculiar to women we seek to protect and nurture their wellbeing in ways that bring respect and value.

Acting as advocates to stand for equity and justice in circumstances where women have been mistreated and undervalued.

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British Union Conference of Seventh-day Adventists Trustees’ Report for the Year Ended 31 December 2020

REACHING IN - Development and nurture of leaders and membership

Realising the unique gifting’s and abilities of each woman, we aim to nurture and equip women to achieve their full potential in their personal lives, celebrating the contribution they bring to the lives of their families, churches and communities.

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British Union Conference of Seventh-day Adventists Trustees’ Report for the Year Ended 31 December 2020

Cancellation of training events due to pandemic:

REACHING ACROSS - Whole church connectivity and engagement

Fostering initiatives and programmes that encourage inclusion of women, their gifts and talents into the life of the church and it function in the community.

Donations to external entities undertaking community outreach to women:

2020 Plans (postponed due to pandemic, lockdown restrictions and financial deficit):

Youth Ministries (encompassing Chaplaincy, Pathfinders, Teens, Youth)

ADVENTURER AND PATHFINDER BIBLE EXPERIENCE

Sadly, the pandemic also affected this regular event in 2020 and a mere week before the Union finals, the situation

around the country was becoming more uncertain by the

day. With large physical gatherings prohibited, it was impossible to host the

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British Union Conference of Seventh-day Adventists Trustees’ Report for the Year Ended 31 December 2020

finals at Newbold for which the children had studied so diligently. Unwilling to allow the children to be disappointed, the decision was made by the BUC Pathfinder Advisory to move the finals to an online platform. This last-minute revision brought together the BUC Treasurer Earl Ramharacksingh and his team from the BUC as scorekeepers; BUC President Pastor Ian Sweeney and the South England Conference Pathfinder Director, Pastor Clifford Herman as affable hosts; support came in the form of local SEC area coordinators, Cassandra Burton and Vernon Noel; BUC IT Director, Paula Carillo; and the Youth Ministries Secretary, Natalie Davison. Keeping numbers to a minimum meant that safety protocols were maintained while still providing speedy means of communicating and tallying of scores required to run the event fairly via the Zoom platform. Teams from Ireland, Sheffield, Scotland, South England and Wales were so happy to have been able to take part in this hastily organised, but nonethe-less superb way to make the best of the situation. Judging by the ecstatic faces on the children and their cheering and singing, they were not disappointed with the alternative finals and were so happy to have had a chance to use their amazing Bible knowledge and make their clubs proud.

Within days the full lockdown was announced which meant that the planned-for TransEuropean Division finals in Holland could no longer take place in April, nor the North American Division finals in the US. God truly blessed us to enable the majority of the British Union Adventurers and Pathfinders at the very least to attend and do so well at the Union final.

NEW ADVENTURER CURRICULUM RESOURCES

Under the leadership of former General Conference Pathfinder Director, Jonatán Tejel, the GC decided it was time to review and update the Adventurer Curriculum. The work has continued at the GC with the incumbent Director, Andres Peralta, and the allnew curriculum was distributed in mid-2020.

The first set of the corresponding Adventurer workbooks were released for the British Union in the autumn of 2020. Thereafter began a period of intense proof-reading, Anglicising (UK) and formatting to print the Instructor Manuals and the second editions of the Activity workbooks due in early 2021.

These have proved very popular with the clubs as the information is presented in a clear and colourful all-in-one format for the children to complete during their Adventurer year.

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British Union Conference of Seventh-day Adventists Trustees’ Report for the Year Ended 31 December 2020

BRITISH UNION ADVENTURER AND PATHFINDER SHOP

The BUC Adventurer shop, www.pfclub.co.uk, created in 2018, was the BUC YM Department’s response to many requests from club leaders at the BUC Adventurer Camporee for a one-stop shop for Adventurer items. The shop was formed soon afterwards with more and more products being added each month. The addition of the Pathfinder items came naturally as club leaders found the easy-to-use catalogue, online payments and swift shipping a real boost to their planning, in particular at investiture time.

The portfolio now includes hundreds of items with more products continually being added, particularly those which complement the awards and honours being taught via the BUC online e-Club (see below), and those relating to the new Adventurer Curriculum.

E-CLUB: ONLINE AWARDS AND HONOURS PROGRAMME

On 23 March 2020 the first full lockdown in the UK was announced. Just 6 days later, the very first e-Club programme was held on Zoom and livestreamed to the BUC Youth Ministries Facebook page. This was the start of a very intense journey that has not shown signs of stopping yet!

By the end of 2020, 75 Adventurer awards and 87 Pathfinder honours had been taught online each weekend through the e-Club. The Youth Ministries website is updated each week so that each award or honour page provides the complete material a child needs to earn their badge: a live lesson taught by an expert on the subject or a long-time Pathfinder leader who has thoroughly researched the topic; an accompanying PowerPoint presentation with more than enough material to complete the requirements and gain plenty of background information on the subject; and a print-ready worksheet to be completed with the required answers. The worksheet is then inserted into the child’s folder with any additional homework tasks, ready for assessment by the local club at the end of the year.

The online portfolio of awards and honours has been so helpful for the club leaders wanting to keep their clubs running, but not having access to teaching materials or presenters. The children are therefore still able to achieve the work needed to pass their end of year class assessments and achieve additional badges, even during the disruption of lockdown.

The programme began with three Adventurer award presentations on Sabbath afternoon and three Pathfinder honours on Sunday afternoon, every weekend from March until mid-July. This was consolidated into one afternoon, with two awards and two honours each Sabbath from July to December. The workload has been huge with just myself and my secretary Natalie to recruit presenters, create the promotional material, update the website, record,

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British Union Conference of Seventh-day Adventists Trustees’ Report for the Year Ended 31 December 2020

edit the programmes and upload to YouTube, send out the weekly information email, and review all the worksheets and presentations to ensure good standards throughout. This is in addition to regular morning and often afternoon preaching appointments for virtual church services that have not reduced despite a full afternoon of hosting the e-Club programme.

Yet, the beautiful messages of gratitude from club leaders, from parents and gallery photos of the children themselves with their crafts has helped to encourage us through the long days of preparation and of giving up many hours with our families to present and host the programmes over the weekend. To hear how much they have appreciated and enjoyed the broadcasts and how it has enabled their club to function during the pandemic, has been a great incentive to keep going.

From July 2020 onwards, the regional Pathfinder Directors and Sponsors have taken turns recruiting presenters and hosting some of the Sabbath afternoon programmes. The broadcasts have been primarily aimed at a British Union audience but have also developed a worldwide audience (see presentation attached). Numbers have inevitably dropped as countries lifted their lockdowns and resumed their club meetings, but since in many BUC areas clubs were not able to resume, the viewership has been significant enough to keep running. In fact, the North American Division has taken a great interest on behalf of their members, and starting in January 2021, one Sabbath a month will be hosted and managed by the NAD Pathfinder Taskforce team, chaired by Pastor Mark O’Ffill.

There are still many more awards and honours to be added to the list, with more in development in the NAD and the BUC. If you have an idea for a new award or honour, please register your idea using the link in the section below.

GLOBAL YOUTH DAY

This annual General Conference event in March is intended to give the young people of the church the opportunity to leave the churches for the day and go out into the community and BE THE SERMON, sharing Jesus through acts of love. Over the years, creative community witnessing has occurred in many locations around the BUC and in many types of weather, from bright, sunny days clearing canal side pathways to hot chocolate drinks and hugs given out in bitterly cold Scottish cities. Cheering nursing home residents; handing out food and clothing to the homeless; assisting at soup kitchens; mentoring and running craft classes for underprivileged children; running family fun days; car washes to raise money for the local firefighters; sharing the meaning of the symbolism while sharing hot cross buns with supermarket shoppers and creating and distributing care packs for students at university are some of the ideas that have taken place over the years on and around the day itself.

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British Union Conference of Seventh-day Adventists Trustees’ Report for the Year Ended 31 December 2020

The BUC YM department has coordinated the regional applications for funding for these projects from the Division Mission Board; enthusiasm and involvement in the event has grown year on year within this quinquennium, resulting in a total amount awarded to BUC community projects in 2020 of £17,290. Sadly, the lockdown restrictions prevented many of the projects from taking place; however, the churches are being encouraged to use the funding (which was awarded nevertheless) to think creatively for 2021 projects.

The BUC YM director has provided video reports featuring as many regional projects as possible and has also hosted a portion of the annual Global Youth Day 24hr broadcast from locations in Bracknell and London, in conjunction with Adventist World Radio.

NEW AWARDS AND HONOURS COMMITTEE

The British Union is well known for its enthusiastic Adventurers and Pathfinders and equally so for its very dedicated counsellors, leaders and directors. Naturally, the adults leading out at club meetings and camporees have come to see the opportunities for teaching the children even more subjects and have developed new awards and honours of their own.

No process existed in the BUC for examining and clarifying the content of these new awards and honours and ensuring that they are factually correct, interesting, spiritually relevant, ageappropriate and all follow the existing format for such material.

The working body was created mid-2020 to encourage new contributions from around the British Union and comprises a representative from each region of the BUC, nominated by their Pathfinder Director or Sponsor. Meeting 5-6 times a year, the aim is to provide feedback so that the new material is Adventurer or Pathfinder-ready. All material is passed back to the originating entity for approval at their regional committees, before being promoted within the BUC and then passed to the Division/GC for world-wide approval.

Several awards and honours were in the final development stages at the end of 2020 with the expectation that in 2021 these will be approved regionally and then worldwide.

If you have an idea for a new award or honour, please register here: https://youth.adventistchurch.org.uk/new-buc-awards-and-honours

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British Union Conference of Seventh-day Adventists Trustees’ Report for the Year Ended 31 December 2020

WEBSITE AND SOCIAL MEDIA

The BUC Youth Ministries website has been a constant source of information for all Youth events, Adventurer and Pathfinder camps and materials, a list of contacts for organisations offering support and counselling for everything from bullying to bereavement, and also contact listings for the regional Pathfinder and Youth Directors and

Sponsors. With resources, publication downloads and most recently a complete catalogue of all the Adventurer e-Awards and Pathfinder e-Honours, the website is an important communication tool for the department.

The Youth Ministries Facebook page and more recently the Instagram feed are extremely useful for instant promotions for news and upcoming events. Regularly receiving several hundred viewings for each post, Facebook is also the place where the e-Club awards and honours are streamed each weekend, before being uploaded to YouTube for long-term access by clubs and individuals.

The BUC has always held a daily morning worship service at the office for its staff, but once the lockdown occurred this was no longer possible in person and moved to a new home on Zoom. It was the result of requests to the Youth Ministries Department for a daily devotional series that the BUC worships are now streamed online via the BUC News Facebook page and the BUC Youth Ministries Facebook page, where they have been an early morning blessing to many and a comfort knowing that the BUC office staff and guest speakers welcome prayer requests and will pray for each person on air or in private each day.

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British Union Conference of Seventh-day Adventists Trustees’ Report for the Year Ended 31 December 2020

WORLD PATHFINDER DAY

The South England Conference host team had already begun planning the 2020 World Pathfinder Day, however the pandemic put paid to any large gatherings. Pastor Andres Peralta, World Pathfinder Director, had expressed his desire to attend the British Union 2020 gathering, but in light of world events, was unable to travel and it seemed that the idea of celebrating 70 years of Pathfinders in September was not to be.

However, I was privileged to work with Daryl Gungadoo from Adventist Review who created a stunning virtual stadium where we could welcome Adventurers and Pathfinders from around the world, streaming three services to cover all

time zones in a 24-hour period. Pastor Peralta was still able to ‘attend’ each service virtually and montage videos featuring Pathfinders local to each region as well as songs, prayers and a moderated online chat room were a huge success. Many of those watching online were e-Club members who were thrilled to enjoy the 70th Anniversary celebrations with the worldwide church, as well as see the launch of the e-Club virtual choirs singing the Adventurer and Pathfinder songs.

View the services here: https://youtu.be/9akMwxeU020 and https://youtu.be/0JQU4NFCvhY YEAR IN MISSION AND SERVICE

So often we are asked how to help our young people to remain in our churches and inspire them to reach out to their communities. The General Conference Year in Mission and Service initiative was quickly adopted here in the British Union. We know that if we give an opportunity to our youth to own, develop and be involved in a project like this they will also find a sense of belonging and ownership. After considering many possible plans and locations, the British Union Conference with the help of the Trans European Division decided to support and help Swansea Church in the Welsh Mission with this exciting and promising project.

Today in Swansea we have a married young couple helping to develop and grow this beautiful church community. This involves a variety of outreach activities but also the nurture and growth of our youth and young adults including the establishment of an Adventurer and

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British Union Conference of Seventh-day Adventists Trustees’ Report for the Year Ended 31 December 2020

Pathfinder Club. The vision of the youth department of the British Union Conference was and still is that if finances and support for local fields remain, to have this type of project available in every Conference and Mission field.

YOUTH CONGRESS

The BUC Youth Congress in April 2020 was the result of many hours of planning with all the Youth Directors and Sponsors from the BUC regions heavily involved. The Dutch Union, keen to join with a larger group for a congress event, partnered with the BUC and very quickly had a double-decker coach full of youth booked to attend. The location identified at Nottingham University would provide an auditorium, classroom facilities,

plenty of single-student-room accommodation and impressive dining facilities all on one campus. An Easter weekend event meant that the site would be virtually solo occupancy. The speaker had been booked, workshop presenters and the timetable arranged, youth were booking online, and menus were being finalised when the pandemic hit. Many conversations followed in the hope that the event could somehow proceed, but regrettably the venue felt obliged to cancel as travel became widely restricted and lockdowns came into force around the country and abroad.

A few weeks later, the Division took the decision to postpone its 2021 Youth Congress in Finland.

At this point, everyone is looking forward to meeting again in Finland 2022 when we pray that European travel will no longer be hampered by the effects of the Coronavirus and Brexit.

YOUTH MINISTRIES STATISTICS

2020 No. of AY
Societies		 AY
Membership
Number of
Pathfinder
Clubs
Pathfinder
Membership
Number of
Adventurer
Clubs		 AY
Membership
Number of
Pathfinder
Clubs
Pathfinder
Membership
Number of
Adventurer
Clubs		 AY
Membership
Number of
Pathfinder
Clubs
Pathfinder
Membership
Number of
Adventurer
Clubs		 AY
Membership
Number of
Pathfinder
Clubs
Pathfinder
Membership
Number of
Adventurer
Clubs		 Adventurer
Membership
IrishMission
NEC
Scottish Mission
SEC
Welsh Mission		 9 180 12 119 12 175
88 1,470 78 2,446 74 1,955
5 71 9 85 9 72
87 1,704 61 1,190 58 983
7 145 5 63 4 47
Totals 196 3,570
165
3,903
157		 3,232

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British Union Conference of Seventh-day Adventists Trustees’ Report for the Year Ended 31 December 2020

YOUTH WEEK OF PRAYER

Although the Youth Week of Prayer takes place in March, the Senior (adult) Week of Prayer is in November. A few years ago, the General Conference introduced an e-Week of Prayer to coincide with this programme, featuring 90 second daily video soundbites from the GC Youth Directors. In 2020 the British Union Youth Directors and Sponsors came together to plan an e-WoP daily programme to encourage our youth facing another round of lockdowns during the pandemic.

The resulting, beautiful hour spent each evening was enhanced by music from regional singers and groups, by sermons from the Pastors themselves, and through powerful testimonies from several young people. Streamed live through the Conference, Mission and Union YouTube and Facebook channels, the week was well viewed live and afterwards. Prayers were very much a part of the evening meetings and (where appropriate) the requests received were prayed for live online, giving the young people a sense of belonging and being cared for by their church and more especially by their God, even during these troublesome and uncertain times.

~ ~ ~ ~ ~ e-WoP recordings: Day 1 Day 2 Day 3 Day 4 Day 5 Day 6

Financial Review

Reserves Policy

The Trustees have evaluated the Charity’s risk exposure which has been reviewed by the Administration and since 2017 all Trustees are able to give comment and feedback on a regular basis using an electronic risk evaluation tool set up on our trustees’ portal. Whereas we record asset values of almost £45 million, £40 million of these are invested at historic cost in our operational properties. The long term defined benefit pension deficit was £12.1 million at the 31 December 2020 valuation (84% funded), this plan was closed to accrual as of 31 December 2013. Employers within the group now contribute on a defined contribution basis to satisfy the requirements of the UK auto-enrolment pension requirements, with a parallel provision being made in the Republic of Ireland.

Our working capital requirement for the headquarters’ charity is set at 30% of our annual operating expense (£3.76 million) which is £1.13 million compared to total unallocated reserves of £1.58million. Provisions of £350,000 were utilised in the year to support subsidiary working capital deficit. Provisions of £500,000 for church project loans have been set aside. Resources were set aside for outreach initiatives throughout Britain.

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British Union Conference of Seventh-day Adventists Trustees’ Report for the Year Ended 31 December 2020

The reason for each reserve held and the value of each reserve at the year end can be seen in the notes to the financial statements.

Financial Activity Review

The activities of 2020 have had to be greatly reduced on a physical, face to face, level, and has had to move to a virtual platform during the current COVID-19 pandemic which has cut a swath through almost every aspect of society and especially the economy.

Whilst the COVID-19 pandemic has occupied our minds during these last eleven months, Brexit will still focus our minds on its potential impact on our operations and finances as we re-open our operations. Major industries have been greatly affected by the pandemic. Travel and hospitality are the major areas affected financially, but the charity sector have also seen dramatic falls in their income due to the impact of vastly reduced means of fund raising. The closure of our churches initially caught us on the back foot, as we grappled with technology to find the ways and means to allow our members’ the avenues to return our key Tithe income to the charity.

With the closure of our churches, we have sought to encourage and promote as many forms of electronic giving as possible. Much of our training and programmes have moved to virtual platforms using the likes of zoom to continue service to our members. Difficult decisions have had to be made of which services to provide in the post COVID-19 world.

Our core income, Tithe, was just under £23.8 million which was an encouraging 93% of our 2019 income. Our major cost being salaries had to be constrained for 2020 as a result of these decreases in our income. A few staffing contractions have had to be implemented to keep our overall costs down.

Back in December of 2019, we had set a considered and prudent budget for 2020, whilst providing training and envisioning programmes for the various departmental leaders in our local churches through our British Union Conference departments. They developed strategic models to provide for coherent work across Britain and Ireland. The work of our departments are detailed in the pages preceding this financial review. Much of this training and envisioning has been conveyed through virtual platforms such as zoom saving great costs, as well as greatly reduced travel costs due to the lockdown of the past year. We support our local church treasurers in the processing of our Tithe returns and ensure accountability to our local church boards through regular local church auditing and training sessions.

The underlying financial backbone of the Charity is the consistent, principled returning of tithe by members and friends and as such it represents the key financial indicator. It is the measure against which we set our budgets and determine our possibilities. The Charity in one sense reflects the welfare of our economy and the migration of people. For this reason, we publish

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British Union Conference of Seventh-day Adventists Trustees’ Report for the Year Ended 31 December 2020

the tithe income in detail on a monthly basis. It shows a decline of 7% on 2019, as mentioned above, though with much volatility. This paints a cautious tone when compared to the 0.6% increase of 2019.

Pensions

Resources continue to be applied to resolve the defined pension deficit. Although we saw some volatility in the market during 2020, the return on investments of £5,464,000 for the year to 31 December 2020 continued its strong improvement with the strength of stocks and shares towards the end of the year. the fund did take a significant fall during the early stages of the pandemic, however, this has recovered substantially during the course of the year.

The continuing gap between the growth of assets and liabilities, which are priced on bonds, shows the long-term wisdom of closing the plan and persisting against a growing deficit as a burden to future donors.

The recovery plan was scheduled to run until 2033, but improvements in performance of the fund suggests a timeline to 2028 could be expected. The Plan Trustees continue to invest for growth given that the employer provides cash broadly equivalent to the cost of pension service making the need for investment in gilts less significant. The pension trustees, however, are starting to dialogue with their advisors on considering to de-risk as the timeline for being fully funded comes onto the horizon. New property investment strategy in 2018 (10% of fund) and 10% de-risking this year has seen a shift in emphasis in the fund.

The current pandemic has created increased uncertainty in the markets coupled with short term decline in donor income due to redundancies and corporate closures at this time.

Subsidiaries

Adventist Development and Relief Agency (ADRA-UK)

ADRA’s work touches millions of lives in countries right across the world. ADRA has a network of thousands of people actively implementing region-appropriate solutions for positive and sustainable change, where it is most needed.

Together we can feed people. Together we can clothe people. Together we can educate people. Together we can quench thirst. Together we can save the neediest people of the world.

Attaining sustainable development goals (SDG) and a universal set of 17 goals that will guide UN members in how they help the poor, disenfranchised and the less fortunate members of

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British Union Conference of Seventh-day Adventists Trustees’ Report for the Year Ended 31 December 2020

the world over the next 15 years. All of ADRA-UK’s projects contribute to at least one SDG and funds raised continue to help this work.

Sustainable Development Goals

No Poverty, Zero Hunger, Good health and wellbeing, quality education, gender equality, clean water and sanitisation, affordable and clean energy, decent work and economic growth, industry innovation and infrastructure, reduced inequalities, sustainable communities, responsible consumption and production, climate action, life below water, life on land, peace justice & strong institutions and partnership for goals are all ideals that ADRA has a connection with for each of its projects.

In 2020 we helped over 600,000 people, 97% of which were women and children. 94% of all funds spent went on delivering services and making change happen. Current projects include:

UK – assisting 73 local community hubs across the UK with community projects, especially during these pandemic times helping over 80,000 people. Promoting good health and wellbeing.

Yemen – cash support to families to buy healthy food, as well as providing work opportunities. Ghana – helping to train farmers in cashew nut farming techniques and helping them to identify shops and other sales outlets for their products.

Sri Lanka – providing clean water in 20 communities.

Thailand – helping to improve safety conditions in factories and working with local organisation to train in human rights.

Zambia – teaching farmers new farming methods, so they can collect more healthy foods from their seeds. Secondly, providing water systems closer to their land.

South Sudan – helping girls to attend school as well as providing financial support to the families to allow the girls to attend school.

Myanmar – provide a safe environment for children to enjoy learning and train teachers to set up schools in faraway communities.

Stanborough Schools

Support for the Secondary School has stabilised in spite of the economic climate. Pupil enrolment and resultant finances are challenging. Recent analysis of the various ancillary cost centres of the school has resulted in contraction of certain facilities with resultant outsourcing of some non-core services.

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British Union Conference of Seventh-day Adventists Trustees’ Report for the Year Ended 31 December 2020

The school also gathers support by collaborating with other Adventist schools in South America, Europe and the Far East with language and cultural exchange programs. The current pandemic has seen the short-term closure of the boarding facilities and virtual lessons, but it is hoped that normal overseas student operations will resume for the next academic year. In 2019 the secondary school recruited a consultant Head Teacher to continue the drive to place the school at the top of the education spectrum. The school required £665,000 appropriations from the British Union to sustain its operation in 2020.

The Primary School has seen a significant fall in enrolment with resultant cost contractions. The school now has a substantive Head Teacher to support and enhance the quality of education and experience of all pupils who attend there.

Ireland, Scotland & Wales Missions

The work in Missions continues to grow despite limited financial budgets. Wales and Scotland recorded significant increases (8% & 10% respectively) throughout all of the current pandemic period in their core Tithe income from 2019, compared to Ireland who reported a 6% decrease in their Tithe. Ireland was able to secure much needed additional funds for overseas donors which offset their fall in tithe income revenues. The three Missions continue to set prudent budgets and to operate within their financial means. Targeted “Centres of Influence” in Ireland and Wales together with several other community outreach projects in all three territories have impacted on many communities with much success in trying to make a difference in those communities.

The pandemic period saw much of their activities surround community-based support work to communities in need due to the lockdowns. Pastoral work has moved to virtual platforms in trying to keep connected with our members.

Ireland, in particular, has seen excellent growth in its membership and has now reached the significant milestone of 1,000 members. But for the current pandemic, we had hoped for the second milestone of €1 million pa in tithe to have been reached in 2020. They have now applied to be considered for Conference status. Ireland has seen significant support for its programmes by the Emerald Foundation members in the USA. Additionally, the Centre for Conflict Resolution in the USA have also made material contributions to training and envisioning programmes for the members there.

It is always inspiring to see the selfless financial generosity and the dedicated time commitment of our supporting stakeholders. Our Trustees are appreciative of the vast array of multi-talented volunteers and employed staff for their tireless dedication and support of the church and its programmes.

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British Union Conference of Seventh-day Adventists Trustees’ Report for the Year Ended 31 December 2020

The attached financial report goes a long way to show the impact and support that our stakeholders have made in contributing to the communities and the society in which we all live.

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British Union Conference of Seventh-day Adventists Statement of Trustees’ Responsibilities

The trustees are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice.)

Charity law required trustees to prepare financial statements for each financial year which give a true and fair view of the state of the affairs of the charity and the group and of the outgoing resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity. They are also responsible for safeguarding the assets of the charity and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

John Surridge Date: 26 July 2021 Executive Secretary

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Independent Auditor's Report to the Trustees and Members of the British Union Conference of the Seventh-Day Adventists for the year ended 31 December 2020

Opinion

We have audited the financial statements of the British Union Conference of Seventh-Day Adventists for the year ended 31 December 2020 which comprise the Group and Parent Charity's Statement of Financial Activities, the Group and Parent Charity's Balance Sheets, the Group Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 ‘The Financial Reporting Standard Applicable in the UK and Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs(UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the audit of financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements in appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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Independent Auditor's Report to the Trustees and Members of the British Union Conference of the Seventh-Day Adventists for the year ended 31 December 2020

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities Act 2011 and Charities Accounts (Scotland) Regulations 2006 (as amended) require us to report to you if, in our i i

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 42, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act and appointed under Section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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Independent Auditor's Report to the Trustees and Members of the British Union Conference of the Seventh-Day Adventists for the year ended 31 December 2020

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charity.

Our approach was as follows:

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

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Independent Auditor's Report to the Trustees and Members of the British Union Conference of the Seventh-Day Adventists for the year ended 31 Decemeber 2020

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Use of our report

This report is made solely to the charity's trustees, as a body, in accordance with Chapter 3 of Part 8 of the Charities Act 2011 and Section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005. Our audit work has been undertaken so that we might state to the charity's trustees 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 any party other than the charity and charity's trustees as a body, for our audit work, for this report, or for the opinions we have

f d

Date: 26/07/2021

Moore Kingston Smith LLP Statutory Auditor

4 Victoria Square St Albans Herts AL1 3TF

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British Union Conference of Seventh-day Adventists

Group Statement of Financial Activities For the year ended 31 December 2020

Notes
Income from:
Income from donations and legacies
Donations
Grants
Legacies
Government grants
2
Income from charitable activities
3
Investment income
4
Fund-raising income
5
Gain on acquisition of a subsidiary
17
Other income
6
Total
Expenditure on:
Charitable activities:
7
Governance
11
Net income/(expenditure)
Gains/(losses) on investments
Transfers between funds
Other recognised gains/(losses):
Actuarial gains/(losses) on defined benefit
pension scheme
28
Net movement in funds
Fund balances brought forward
Fund balances carried forward		 Unrestricted
Funds
Restricted
Funds
Total Funds
£
£
£
2,033,531
963,588
2,997,119
6,405,685
-
6,405,685
208,838
-
208,838
182,427
-
182,427
8,830,481
963,588
9,794,069
3,895,402
1,680,126
5,575,528
61,119
2,929
64,048
-
-
-
-
-
-
66,441
-
66,441
12,853,443
2,646,643
15,500,086
9,219,309
2,990,169
12,209,478
115,256
90,946
206,202
9,334,565
3,081,115
12,415,680
3,518,878
(434,472)
3,084,406
(120,399)
(8,497)
(128,896)
49,736
(49,736)
-
(7,512,000)
-
(7,512,000)
(4,063,785)
(492,705)
(4,556,490)
34,818,982
5,070,503
39,889,485
30,755,197
4,577,798
35,332,995
2020		 Unrestricted
Funds
Restricted
Funds
Total Funds
£
£
£
1,708,347
544,575
2,252,922
6,959,593
-
6,959,593
-
268,605
268,605
10,959
140,987
151,946
8,678,899
954,167
9,633,066
1,928,347
1,106,333
3,034,680
119,509
8,818
128,327
-
433,114
433,114
3,698,793
3,698,793
8,763
-
8,763
14,434,311
2,502,432
16,936,743
8,808,851
2,593,925
11,402,776
55,121
-
55,121
8,863,972
2,593,925
11,457,897
5,570,339
(91,493)
5,478,846
(69,883)
3,970
(65,913)
(152,177)
152,177
-
.
1,195,000
-
1,195,000
6,543,279
64,654
6,607,933
28,275,703
5,005,849
33,281,552
34,818,982
5,070,503
39,889,485
2019

There were no recognised gains and losses other than those included in the statement of financial activities

Page: 47

British Union Conference of Seventh-day Adventists Charity Statement of Financial Activities For the year ended 31 December 2020

Notes
Income from:
Income from donations and legacies
Donations
Grants
Legacies
Government grants
2
Charitable activities
3
Investment income
4
Other income
6
Total
Expenditure on:
Charitable activities:
7
Governance
11
Net income/(expenditure)
Gains/losses on investment assets
Transfers between funds
23
Other recognised gains/(losses):
Gains/(losses) on revaluation of fixed assets
Actuarial gains/(losses) on defined benefit
pension scheme
28
Net movement in funds
Fund balances brought forward at January 1
Fund balances carried forward at December 31		 Unrestricted
Funds
Restricted
Funds
Total Funds
£
£
£
1,834,154
110,691
1,944,854
6,405,685
-
6,405,685
208,838
-
208,838
182,427
-
182,427
8,631,104
110,691
8,741,795
627,051
1,895
628,946
58,623
-
58,623
-
-
-
9,316,778
112,586
9,429,364
5,419,989
432,736
5,852,725
68,677
-
68,677
5,488,666
432,736
5,921,402
3,828,112
(320,150)
3,507,962
(120,399)
-
(120,399)
49,736
(49,736)
-
-
-
-
(7,512,000)
-
(7,512,000)
-
-
-
28,153,284
2,883,513
31,036,797
24,398,733
2,513,627
26,912,360
2020		 Unrestricted
Funds
Restricted
Funds
Total Funds
£
£
£
1,708,347
149,809
1,858,156
6,959,593
-
6,959,593
-
212,310
212,310
10,959
140,987
151,946
8,678,899
503,106
9,182,005
385,028
-
385,028
119,508
-
119,508
8,581
-
8,581
9,192,016
503,106
9,695,122
6,968,652
437,619
7,406,271
55,121
-
55,121
7,023,773
437,619
7,461,392
2,168,243
65,487
2,233,730
(69,883)
-
(69,883)
(152,177)
152,177
-
-
-
-
1,195,000
-
1,195,000
3,141,183
217,664
3,358,847
25,012,101
2,665,849
27,677,950
28,153,284
2,883,513
31,036,797
2019

There were no recognised gains and losses other than those included in the statement of financial activities

Page: 48

British Union Conference of Seventh-day Adventists

Consolidated Accounts - Balance Sheet As at 31 December 2020

Notes
Fixed Assets
Tangible Fixed Assets
15
Investment Properties
16
Investments
17
Current Assets
Stocks
18
Debtors
19
Investments
20
Cash at bank and in hand
Total Current Assets
Creditors: Amounts due within a year
21
Net Current Assets
Creditors: Amounts due after one year
22
Net assets excluding pension liability
Defined benefit pension scheme liability
28
Total Net Assets
Fund balances
Unrestricted
Restricted
Total Funds
23		 2020
2019
£
£
33,384,790
33,703,419
155,000
155,000
-
-
33,539,790
33,858,419
1,924,739
1,734,049
5,887,729
4,204,510
204,922
213,419
10,656,957
10,182,846
18,674,347
16,334,824
4,541,927
3,249,967
14,132,420
13,084,857
201,215
313,791
47,470,995
46,629,485
12,138,000
6,740,000
35,332,995
39,889,485
30,755,197
34,818,982
4,577,798
5,070,503
35,332,995
39,889,485
Group		 2020
2019
£
£
29,390,895
29,561,114
155,000
155,000
1,066
1,066
29,546,961
29,717,180
148,161
79,916
3,056,179
2,632,469
-
-
7,345,613
7,111,241
10,549,953
9,823,626
845,339
1,450,218
9,704,614
8,373,408
201,215
313,791
39,050,360
37,776,797
12,138,000
6,740,000
26,912,360
31,036,797
24,398,733
28,153,284
2,513,627
2,883,513
26,912,360
31,036,797
Charity

Approved and authorised for issue by the Board of Trustees on ………………………...………………….10 June 2021 and signed on its behalf by:

Earl J Ramharacksingh Treasurer

The notes on pages 51 to 71 form part of these accounts.

Page: 49

BRITISH UNION CONFERENCE OF SEVENTH-DAY ADVENTISTS

Statement of group cash flow For the year ended 31 December 2020

Note
Cash flow from operating activities
Net cash provided by (used in) operating activities
25
Cash flows from investing activities
Rents, dividends and interest from investments
26
Cash obtained on the acquisition of a subsidiary
Purchase of property,plant and equipment
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
27		 2020
£
463,400
64,048
-
(53,337)
474,111
10,182,846
10,656,957		 2019
£
(830,373)
303,134
754,300
(285,590)
(58,529)
10,241,375
10,182,846

Page:50

British Union Conference of Seventh-day Adventists

Notes to the Financial Statements For the year ended 31 December 2020

Accounting Policies

1.1 Basis of preparation

The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value. The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102). The Charity is a public benefit entity for the purpose of FRS102 and therefore has also prepared its financial statements in accordance with the Statement of Recommended Practice applicable to Charities preparing their accounts in accordance with the the Financial Reporting Standard applicable in the UK and Republic of Ireland (The Charities SORP).

1.2 Basis of Consolidation

The Group financial statements consolidate the financial statements of the charity and its subsidiary undertakings drawn up to 31 December 2020. The results of subsidiaries acquired or sold are consolidated for the periods from or to the date upon which control passed. Acquisitions are accounted for under the acquisition method.

All intra group transactions balances and realised gains on transactions between group entities are eliminated on consolidation.

1.3 Going concern

The trustees have assessed whether the use of going concern is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the charity to continue as a going concern. The trustees have considered the results reported in these accounts and have made their assessment for a period of at least one year from the date of the approval of these financial statements.

In particular, the trustees have considered the impact of the Coronavirus pandemic and measures taken in the UK to contain it. The charity has an adequate cash and reserves position at the time of approval of these financial statements. Whilst the charity has been impacted by the pandemic and the related containment measures, including the closure of churches, the charity has continued to receive regular income including from tithes. The Trustees have also taken measures to mitigate the impact including reviewing and limiting discretionary spend as well as utilising virtual meetings to replace gatherings and thereby allowing the charity to reduce event costs. These steps are intended to continue throughout the current lockdown restrictions and the Trustees have no reason to believe they would not be effective in the event of future restrictions. Having made enquiries, the trustees have concluded that there is a reasonable expectation that the charity has adequate resources to continue in operational existence for at least 12 months from the date of the audit report of these financial statements. The charity therefore continues to adopt the going concern basis in preparing its financial statements.

1.4 Fund accounting

Restricted funds are those which are to be used for the specified purposes as laid down by the donor. Expenditure which meets these criteria is allocated to the appropriate fund. The nature of restriction is further explained in the notes to the financial statements.

Designated funds are those which have been set aside by the administration with the consent of trustees for specific anticipated purposes or events. The aim and use of each designated fund is set out in the notes to the financial statements.

General or Unrestricted funds are donations and other income received or generated for the furtherance of the objects of the charity without specified purposes and, therefore, are available as general funds.

Investment income, gains and losses are allocated to the appropriate fund.

1.5 Grant-making policies

The trustees allocate grants in accordance with the objects set out in the Memorandum and Articles of Association of the charitable company, which are summarised in the Trustees' Annual Report. In general, grants are made to associated charities through appropriate committee requests and policy arrangements rather than public application.

1.6 Incoming resources

All incoming resources are included in the Statement of Financial Activities when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy. For legacies, entitlement is the earlier of the charity being notified of an impending distribution or the legacy being received.

Donated services or facilities, which comprise donated services, are included in income at a valuation which is an estimate of the financial cost borne by the donor where such a cost is quantifiable and measurable. No income is recognised where there is no financial cost borne by a third party.

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

Page: 51

British Union Conference of Seventh-day Adventists

Notes to the Financial Statements

For the year ended 31 December 2020

1.7 Resources expended

All expenditure is accounted for on an accruals basis and has been included under expense categories that aggregate all costs for allocation to activities. Where costs cannot be directly attributed to particular activities they have been allocated on a basis consistent with the use of the resources.

Fundraising costs are incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities. Support costs are those costs incurred directly in support of expenditure on the objects of the charity and included project management carried out at Headquarters. Governance costs are those incurred in connection with administration of the charity and compliance with constitutional and statutory requirements.

Grants payable are charged in the year when the offer is made, except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.

Staff costs and overhead expenses are allocated to activities on the basis of time spent on those activities. Resources expended are included in the Statement of Financial Activities on an accruals basis. All costs include value added tax where applicable.

1.8 Risk mitigation

The Trustees have given consideration to the major risks to which the charity is exposed and established systems or procedures in order to manage those risks. They are supported in this regard by Adventist Risk Management who create awareness of risk for the world-wide operations of the church and source cover to mitigate attendant risks.

1.9 Foreign Currency Translations

The British Union Conference is part of world-wide network of Seventh-day Adventists, contributing to that endeavour and being supported by it. Funds are transferred by account between organisation using a monthly internal exchange rate for interorganisational transfer, and rates determined by our Banks for external transactions. Operations in Ireland are conducted in Euro but accounted for in Sterling. Fluctuations are moderated with an exchange reserve, other than which gains and losses are immediately recognised.

1.10 Fixed Assets

Depreciation is provided on tangible fixed assets in order to write off each asset over its expected economic life. The rates of depreciation applied to each class of asset are:

Freehold property 1.33% Office fixtures and equipment 20 - 33% Computer equipment 20 - 33% Items of furniture and equipment costing less than £1,000 each are treated as an expense on acquisition.

1.11 Pension costs

Following the closure of the Seventh-day Adventist Retirement plan in December 2013, pensions are now provided in terms of the national Auto-Enrolment requirements and invested in a Group Personal Pension Plan through Legal and General. The costs are recognised as they occur.

1.12 Stock

Stock is valued at the lower of cost and net realisable value after making due allowance for obsolete and slow moving items. Cost includes all direct costs and an appropriate proportion for fixed and variable overheads.

1.13 Operating leases

Rentals payable under operating leases are charged in the profit and loss account on a straight line basis over the lease term.

1.14 Investments

Investments are stated at market value at the balance sheet date. The Statement of Financial Activites includes the net gains and losses arising on revaluations and disposals throughout the year. Investments in subsidiaries are valued at cost less any provision for impairment.

1.15 Investment properties

Investment properties are included in the Balance Sheet at their open market value.

Page: 52

British Union Conference of Seventh-day Adventists

Notes to the Financial Statements

For the year ended 31 December 2020

1.16 Accounting for local congregation funds

A sound organisational structure, good financial mangement and control have always been characteristic of the Seventh-day Adventist Church. Congregations are considered to be members of a self financing Conference (South/North England) or financially supported Mission (Ireland, Scotland & Wales). The British Union Conference (BUC) coordinates the work of these entities. The SEC and NEC are separate legal charities, and the Missions are part of the BUC charity.

There is a strong bond between the Congregations and their respective Conference or Mission. Donations in respect of tithe, Church World Mission and special offerings given by individual members have always been remitted to the Conference or Mission, as "Conference Funds". These funds belong to the Conference or Mission which administers the funds, employs and directs the ministers, and has beneficial ownership of Church Buildings.

Members also give funds specifically for the work locally and for the maintenance and upkeep of their church building. Traditionally these "Local Funds" have been held administered and accounted for locally.

Over time, the relationship between the local congregations and their respective Mission or Conference has evolved and the financial bond has strengthened. Increasingly, local congregations have remitted "Local Funds" to their Conference or Mission to administer.

Until 2011 the Local Congregations were considered to be legal entities governed by their local Church Board in accordance with the "Church Manual", and the accounts of the BUC were prepared on this basis, excluding "Local Funds". Late in 2011, legal advice was received to the effect that, on balance, Local Congregations are in effect branches, of their Conference or Mission, although in practice they operate as voluntary local self governing support groups.

In these financial statements "Local funds" remitted to and administered by the conference are included as Incoming Resources and Expenditures of the Conference. These funds held by the conference are disclosed separately as funds restricted to the use of the local congregations.

Donations retained and administered locally have not been included in these financial statements since the Trustees do not administer these funds. Donors participate in the appointment and governance of the church at all levels, and anticipate transparency appropriate to their expectations. In the view of the Trustees, consolidation of these funds would serve to confuse the donors' understanding. There are 49 local congregations directly affiliated to the Missions.

Accounts in respect of Charitable funds donated by members of these local congregation and administered by local funds treasurers have always been prepared and presented annually to the local congregation. There has also long been in place a program for Independent Examination of those local funds by the Conference or Mission.

1.17 Accounting for the Seventh-day Adventist Church in the Republic of Ireland

These Financial Statements include accounts and transactions relating to the Irish Mission and its registered charity 'The Seventh-day Adventist Church in Ireland' in the Republic of Ireland. Statements audited for the Irish Regulator are extracted from these combined Financial Statements in Euro Currency for the purpose of transparency and compliance in that jurisdiction.

These Financial Statements include accounts and transactions relating to the Irish Mission and its registered charity 'The Seventh-day Adventist Church in Ireland' in the Republic of Ireland. Statements audited for the Irish Regulator are extracted from these combined Financial Statements in Euro Currency for the purpose of transparency and compliance in that jurisdiction.

Page 53

British Union Conference of Seventh-day Adventists

Notes to the Financial Statements

For the year ended 31 December 2020

1.18 Financial instruments

a. Cash and cash equivalents

Cash and cash equivalents include cash at banks and in hand and short term deposits with a maturity date of three months or less.

b. Debtors and creditors

Debtors and creditors receivable or payable within one year of the reporting date are carried at their at transaction price. Debtors and creditors that are receivable or payable in more than one year and not subject to a market rate of interest are measured at the present value of the expected future receipts or payment discounted at a market rate of interest.

1.19 Defined benefit pension

Defined benefit asset/liability

The defined net benefit pension asset or liability in the balance sheet comprises the total for each plan of the present value of the defined benefit obligation (using a discount rate based on high-quality corporate bonds), less the fair value of plan assets out of which the obligations are to be settled directly. Fair value is based on market price information, and in the case of quoted securities is the published bid price. The value of a net pension benefit asset is limited to the amount that may be recovered either through reduced contributions or agreed refunds from the scheme.

Defined benefit interest

The net interest element is determined by multiplying the net defined benefit liability by the discount rate, taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. The net interest is recognised in profit or loss as other finance revenue or cost.

Measurement changes comprise actuarial gains and losses, the effect of the asset ceiling and the return on the net defined benefit liability excluding amounts included in net interest. These are recognised immediately in other comprehensive income in the period in which they occur and are not reclassified to profit and loss in subsequent periods.

Defined benefit costs

The cost of providing benefits under defined benefit plans is determined separately for each plan using the projected unit credit method, and is based on actuarial advice.

The change in the net defined benefit liability arising from employee service during the year is recognised as an employee cost. The cost of plan introductions, benefit changes, settlements and curtailments are recognised as incurred. 1.20 Critical accounting estimates and judgments

In the application of the Charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The following judgements and estimates have had the most significant effect on amounts recognised in the financial statements:

The Charity makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors,Trustees consider factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience.

The annual depreciation charge for fixed assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 15 for the carrying amount of the property, plant and equipment.

The company has an obligation to pay pension benefits to certain employees. The cost of these benefits and the present value of the obligation depend on a number of factors including: life expectancy, salary increases, asset valuations and the discount rate on corporate bonds. Management estimates these factors in determining the net pension obligation in the balance sheet. The assumptions reflect historical experience and current trends. See note 28 for the disclosures relating to the defined benefit pension scheme.

Page: 54

British Union Conference of Seventh-day Adventists

Notes to the Financial Statements For the year ended 31 December 2020

Group: Income from donations and legacies
Members in Ireland, Scotland and Wales
Conference support in England
General Conference of Seventh-day Adventists
Conferences for past pension deficits
Tax recoverable on Gift Aid donations
Subtotal of base donations
Donations
Legacies
Grants
Subtotal of other donations
Total income from donations and legacies
Charity: Income from donations and legacies
Members in Ireland, Scotland and Wales
Conference Support in England
General Conference of Seventh-day Adventists
Conferences for past pension deficits
Tax recoverable on Gift Aid donations
Subtotal of base donations
Donations
Legacies
Grants
Subtotal of other donations
Total income from donations and legacies		 Unrestricted
Restricted
Total
Funds
Funds
Funds
£
£
£
1,734,324
51,507
1,785,831
3,320,580
3,320,580
199,377
852,897
1,052,274
2,486,699
-
2,486,699
182,427
-
182,427
7,923,407
904,404
8,827,811
99,830
59,184
159,014
208,838
208,838
598,406
-
598,406
907,074
59,184
966,258
8,830,481
963,588
9,794,069
1,734,324
51,507
1,785,831
3,320,580
-
3,320,580
-
-
-
2,486,699
-
2,486,699
182,427
-
182,427
7,724,030
51,507
7,775,537
99,830
59,184
159,014
208,838
-
208,838
598,406
-
598,406
907,074
59,184
966,258
.
8,631,104
110,691
8,741,795
2020		 Unrestricted
Restricted
Total
Funds
Funds
Funds
£
£
£
1,634,147
132,672
1,766,819
3,586,960
-
3,586,960
607,238
-
607,238
2,679,354
-
2,679,354
10,959
140,987
151,946
8,518,658
273,659
8,792,317
74,200
411,903
486,103
-
268,605
268,605
86,041
-
86,041
160,241
680,508
840,749
8,678,899
954,167
9,633,066
1,634,147
132,672
1,766,819
3,586,960
-
3,586,960
607,238
-
607,238
2,679,354
-
2,679,354
10,959
140,987
151,946
8,518,658
273,659
8,792,317
74,200
17,137
91,337
-
212,310
212,310
86,041
-
86,041
160,241
229,447
389,688
8,678,899
503,106
9,182,005
2019

Page: 55

British Union Conference of Seventh-day Adventists

Notes to the Financial Statements For the year ended 31 December 2020

Incoming Resources from
charitable activities
Group
Church Ministry
Publishing
Education
Humanitarian Aid and Welfare
Total Charitable Income
Charity
Church Ministry
Humanitarian Aid and Welfare
Total Charitable Income
Investment Income
Group
Listed Investment income
Interest received
Charity
Return on local cash		 Unrestricted
Restricted
Total
Funds
Funds
Funds
£
£
£
627,051
1,895
628,946
1,139,232
-
1,139,232
2,129,119
-
2,129,119
-
1,678,231
1,678,231
3,895,402
1,680,126
5,575,528
627,051
1,895
628,946
-
-
-
627,051
1,895
628,946
Unrestricted
Restricted
Total
Funds
Funds
Funds
£
£
£
-
2,929
2,929
61,119
-
61,119
61,119
2,929
64,048
58,623
-
58,623
58,623
-
58,623
2020
2020		 Unrestricted
Restricted
Total
Funds
Funds
Funds
£
£
£
385,028
-
385,028
-
-
-
1,543,319
-
1,543,319
-
1,106,333
1,106,333
1,928,346
1,106,333
3,034,680
385,028
-
385,028
-
-
-
385,027
-
385,028
Unrestricted
Restricted
Total
Funds
Funds
Funds
£
£
£
-
8,818
8,818
119,509
119,509
119,509
8,818
128,327
119,508
-
119,508
119,508
-
119,508
2019
2019

Page: 56

British Union Conference of Seventh-day Adventists Notes to the Financial Statements For the year ended 31 December 2020

7
Expenditure by Charitable Activity
Summary by fund type
Group
Church Ministry
Education
Publishing
Humanitarian Aid & Welfare
Objectives in other geographical areas
Retirement responsibilities
Total Charitable Expenditure
Charity
Church Ministry
Education
Humanitarian Aid & Welfare
Objectives in other geagraphical areas
Retirement responsibilities
Total Charitable Expenditure		 Unrestricted
Restricted
Total
Funds
Funds
Funds
£
£
£
3,902,348
31,229
3,933,577
3,400,696
350,000
3,750,696
1,496,834
-
1,496,834
220,640
2,557,433
2,778,073
281,037
51,507
332,544
(82,246)
-
(82,246)
9,219,309
2,990,169
12,209,478
3,902,348
31,229
3,933,577
1,098,210
350,000
1,448,210
220,640
-
220,641
281,037
51,507
332,544
(82,246)
-
(82,246)
5,419,989
432,736
5,852,725
2020		 Unrestricted
Restricted
Total
Funds
Funds
Funds
£
£
£
4,725,927
306,969
5,032,896
3,069,369
3,069,369
259,924
2,171,749
2,431,673
232,655
115,207
347,862
520,976
-
520,976
8,808,851
2,593,925
11,402,776
4,725,906
306,969
5,032,875
1,229,173
-
1,229,173
259,924
15,443
275,367
232,655
115,207
347,862
520,994
-
520,994
6,968,652
437,619
7,406,271
2019

Page: 57

British Union Conference of Seventh-day Adventists

Notes to the Financial Statements

For the year ended 31 December 2020

Analysis of Resources by Activity

Group
Church Ministry
Education
Publishing
Humanitarian Aid and Welfare
Objectives in other geagraphical areas
Retirement responsibilities
Church Ministry
Education
Humanitarian Aid and Welfare
Objectives in other geographical areas
Retirement responsibilities
Charity
Church Ministry
Education
Humanitarian Aid and Welfare
Objectives in other geographical areas
Retirement responsibilities
Church Ministry
Education
Humanitarian Aid and Welfare
Objectives in other geographical areas
Retirement responsibilities		 Grant
Activities
Support
Total
Funding of
Directly
Costs
Expense
Activities
Undertaken
£
£
£
£
178,046
3,286,592
629,514
4,094,152
1,239,569
2,476,154
34,973
3,750,696
-
1,051,460
445,374
1,496,834
214,613
2,296,900
105,985
2,617,498
332,544
-
-
332,544
(475,829)
-
393,583
(82,246)
1,488,943
9,111,106
1,609,429
12,209,478
Grant
Activities
Support
Total
Funding of
Directly
Costs
Expense
Activities
Undertaken
£
£
£
£
292,289
3,951,415
789,193
5,032,896
448,927
2,576,598
43,844
3,069,369
12,000
2,375,829
43,844
2,431,673
347,862
-
-
347,862
-
-
520,976
520,976
1,101,078
8,903,842
1,397,856
11,402,776
Grant
Activities
Support
Total
Funding of
Directly
Costs
Expense
Activities
Undertaken
£
£
£
£
178,046
3,126,016
629,514
3,933,576
1,239,569
173,668
34,973
1,448,210
12,000
173,668
34,973
220,641
332,544
-
-
332,544
(475,829)
-
393,583
(82,246)
1,286,330
3,473,352
1,093,043
5,852,725
Grant
Activities
Support
Total
Funding of
Directly
Costs
Expense
Activities
Undertaken
£
£
£
£
292,271
3,950,969
789,638
5,032,878
965,806
219,498
43,869
1,229,173
12,000
219,498
43,869
275,367
347,862
-
-
347,862
18
-
520,976
520,994
1,617,957
4,389,965
1,398,352
7,406,274
2019
2020
2019
2020

Page: 58

British Union Conference of Seventh-day Adventists

Notes to the Financial Statements

For the year ended 31 December 2020

8 Analysis of non-grant expenditure by Charitable Activity

Group
Church Ministry
Education
Publishing
Humanitarian Aid & Welfare
Objectives in other geographical areas
Former Pension Support
Church Ministry
Education
Humanitarian Aid & Welfare
Objectives in other geographical areas
Former Pension Support
Charity
Church Ministry
Education
Humanitarian Aid & Welfare
Objectives in other geographical areas
Former Pension Support
Church Ministry
Education
Humanitarian Aid & Welfare
Objectives in other geographical areas
Former Pension Support		 Staff Costs
Depreciation
Other Costs
Total
£
£
£
£
2,608,636
186,125
1,299,393
4,094,154
1,731,763
124,977
1,893,955
3,750,695
769,929
17,415
709,490
1,496,834
630,044
13,077
1,974,376
2,617,497
-
-
332,544
332,544
-
-
(82,246)
(82,246)
5,740,372
341,594
6,127,512
12,209,478
Staff Costs
Depreciation
Other Costs
Total
£
£
£
£
3,500,617
165,853
1,366,427
5,032,896
1,913,160
122,327
1,033,882
3,069,369
625,796
13,306
1,792,571
2,431,673
-
-
347,862
347,862
-
-
520,976
520,976
6,039,572
301,486
5,061,718
11,402,776
Staff Costs
Depreciation
Other Costs
Total
£
£
£
£
2,608,636
186,125
1,138,816
3,933,577
144,924
10,340
1,292,945
1,448,210
144,924
10,340
65,376
220,641
-
-
332,544
332,544
-
-
(82,246)
(82,246)
2,898,484
206,806
2,747,435
5,852,725
Staff Costs
Depreciation
Other Costs
Total
£
£
£
£
2,623,382
183,517
2,225,979
5,032,878
145,743
10,195
1,073,234
1,229,173
145,743
10,195
119,428
275,367
-
-
347,862
347,862
-
-
520,994
520,994
2,914,869
203,908
4,287,497
7,406,274
2019
2019
2020
2020

Page: 59

British Union Conference of Seventh-day Adventists

Notes to the Financial Statements

For the year ended 31 December 2020

9 Analysis of grants

Grants to individuals
Group - Education Grants & Support
Charity - Education Grants & Support
Grants to institutions
Name of Institution / grant
Stanborough School
Newbold College
Adventist Development & Relief Agency
South England Conference
North England Conference
General Conference of Seventh-day Adventists
Other grants to Church Entities
Total Institutional Grants
Total Grants		 Grant description
Educational Need
Educational Need
Humanitarian Aid
General Operations
General Operations
General Operations
General Operations		 Number of
Beneficiaries
Total
£
81
171,316
81
171,316
Group
Charity
£
£
-
825,000
243,253
243,253
12,000
12,000
84,000
84,000
51,000
51,000
332,544
332,544
43,046
43,046
765,843
1,590,843
937,159
1,762,159
2020
2020		 Number of
Beneficiaries
Total
£
91
198,406
91
198,406
Group
Charity
£
£
-
507,879
259,521
259,521
12,000
12,000
114,000
114,000
101,000
101,000
347,862
347,862
77,289
77,271
911,672
1,419,551
1,110,078
1,617,957
2019
2019

10 Governance costs

Audit costs Trustee expenses

Group
Charity
£
£
66,681
66,681
1,996
1,996
68,677
68,677
2020		 Group
Charity
£
£
36,283
36,283
18,838
18,838
55,121
55,121
2019

Page: 60

British Union Conference of Seventh-day Adventists

Notes to the Financial Statements For the year ended 31 December 2020

11
Net resources expended
Total
2020
This is stated after charging:
£
Depreciation of tangible fixed assets:
341,594
Reimbursement of expenses to trustees
(24 trustees in 2020 - 24 trustees in 2019)
1,996
Fees payable to the charity's auditor
for the audit of the annual accounts
66,681
12
Staff Costs
Total
2020
£
Staff costs were as follows:
Wages and Salaries
4,494,096
Social Security Costs
418,127
Other pension Costs
897,915
5,810,138
2020
The average number of employees during the year
no
in the following categories were:
97
None received remuneration amounting to more than £60,000 during the year
13
Trustees' remuneration
2020
£
Emoluments paid to 8 employed trustees (2019 - 8 trustees)
Key management
153,577
Other trustees
220,790
374,367
During the year retirement benefits were accruing to
8 trustees in respect of pension schemes
14
Other Finance Income
2020
£
Return on pension scheme assets
1,256,000
Interest on pension scheme liabilities
(1,385,000)
(129,000)		 Total
2019
£
521,626
18,838
36,283
Total
2019
£
5,418,020
538,826
1,057,499
7,014,345
2019
no
120
2019
£
152,062
237,677
389,739
2019
£
1,510,000
(1,797,000)
(287,000)

Page: 61

British Union Conference of Seventh-day Adventists Notes to the Financial Statements

For the year ended 31 December 2020

15
Tangible Fixed Assets
Group Cost
As at 01 January
Additions
Revaluation
Disposals
As at 31 December
Depreciation
As at 01 January
Charge for Year
On Disposals
As at 31 December
Net Book Value
As at 01 January
As at 31 December
Charity Cost
As at 01 January
Additions
Revaluation
Disposals
As at 31 December
Depreciation
As at 01 January
Charge for Year
On Disposals
As at 31 December
Net Book Value
As at 01 January
As at 31 December		 Freehold
Churches
Operational
Other
Total
Property
& Schools
Equipment
Fixed Assets
32,954,348
4,786,551
1,867,986
20,857
39,629,742
34,601
-
11,830
6,906
53,337
-
-
-
-
-
(30,372)
-
-
-
(30,372)
32,954,348
4,786,551
1,867,986
20,857
39,652,707
3,432,895
869,525
1,623,903
-
5,926,323
282,167
-
58,276
1,151
341,594
-
-
-
-
-
3,432,895
869,525
1,623,903
-
6,267,917
29,521,453
3,917,026
244,083
20,857
33,703,419
29,521,453
3,917,026
244,083
20,857
33,384,790
27,056,408
4,786,551
681,696
-
32,524,655
33,868
-
9,706
-
43,574
-
-
-
-
-
-
-
-
-
-
27,090,276
4,786,551
691,402
-
32,568,229
1,445,058
931,457
587,026
-
2,963,541
183,554
-
30,239
-
213,793
-
-
-
-
-
1,628,612
931,457
617,265
-
3,177,334
25,611,350
3,855,094
94,670
-
29,561,114
25,461,664
3,855,094
74,137
-
29,390,895

Included in the Freehold Property value is £20,495,000 which represents the pledge on contingent assets in favour of the Seventh-day Adventist Retirement Plan.

The pledged properties are valued bi-annually to meet the regulatory needs of the Pension Protection Fund. The PPF requires asset value of at least 140% cover of the pension deficit under their criteria.

Page: 62

British Union Conference of Seventh-day Adventists Notes to the Financial Statements For the year ended 31 December 2020

16
Investment Property
The Group:
Market Value at January 1, 2020
Market value at December 31, 2020		 2020
2019
£
£
155,000
155,000
155,000
155,000
Group		 2020
2019
£
£
155,000
155,000
155,000
155,000
Charity

The valuation was undertaken on 13 March 2013 by Lawton Prior Mecklenburgh, a firm of chartered surveyors.

17
Fixed Asset Investments
Investments in charitable subsidiary
Stanborough Press Ltd at original cost		 2020
2019
£
£
-
-
Group		 2020
2019
£
£
1,066
1,066
Charity

On 16 September 2019 Stanborough Press adopted new Articles of Association. This gave the British Union Conference of Seventh Day Adventist ("BUC") the power to appoint the Board of Stanborough Press Limited and therefore gain control of the entity. The first opportunity to appoint the Board was at the 31 December 2019. Therefore from that date the amounts were consolidated into the Group financial statements. BUC Group therefore acquired the following assets:

£

Tangible Fixed assets
Stock and WIP
Debtors
Cash at Bank
Creditors		 354,462
1,654,133
1,740,924
754,295
(803,951)
3,699,863

The gain of £3,698,793 on this acquisition is shown on the face of the Group's Statement of Financial Activities. In the year to 31 December 2020 Stanborough Press Lmited had a net movement in funds of £(143,004) (2019: £(78,253))

18
Stocks
Departmental supplies
Inventory of goods for sale		 2020
2019
£
£
148,161
79,916
1,776,578
1,654,133
1,924,739
1,734,049
Group		 2020
2019
£
£
148,161
79,916
-
-
-
79,916
Charity

Page: 63

British Union Conference of Seventh-day Adventists Notes to the Financial Statements For the year ended 31 December 2020

Debtors
Due after more than one year
Trade debtors
Loans owed by group undertakings
Loans owed by related charities
Due within one year
Trade debtors
Loans owed by group undertakings
Other amounts owed by group entities
Loans owed by related charities
Other amounts owed by related charities
Accrued Income
Prepayments
Employees
Other Receivables
Total		 2020
2019
£
£
674,465
754,465
-
-
269,946
283,135
944,411
1,037,600
2,908,838
1,843,790
-
-
-
-
103,493
140,206
1,310,067
853,917
164,566
64,525
183,250
105,524
70,345
58,679
202,759
100,269
4,943,318
3,166,910
5,887,729
4,204,510
Group		 2020
2019
£
£
-
-
199,157
208,757
269,946
283,135
469,103
491,892
277,191
232,936
45,000
9,600
678,765
868,280
100,880
140,206
1,199,495
717,843
164,566
64,525
28,053
20,077
70,345
58,679
22,781
28,431
2,587,076
2,140,577
3,056,179
2,632,469
Charity

19 Debtors

20
Current Asset Investments
Listed investments
Other investments		 2020
2019
£
£
76,338
94,787
128,584
118,632
204,922
213,419
Group		 2020
2019
£
£
-
-
-
-
-
-
Charity

Page: 64

British Union Conference of Seventh-day Adventists Notes to the Financial Statements For the year ended 31 December 2020

21 Creditors: Amounts falling due within one year

Bank Loans and Overdrafts
Trade Creditors
Advances for charitable activities
Due to associated charities
Employees
Accrued expenses
Deferred income
Agency/Trust Accounts
Taxes payable
Other Creditors		 2020
2019
£
£
989
-
744,575
1,171,765
2,491,447
202,398
428,874
1,158,146
3,847
5,924
247,882
281,123
61,192
342,508
-
16
95,403
15,694
467,718
72,393
4,541,927
3,249,967
Group		 2020
2019
£
£
-
-
-
-
-
-
413,205
1,113,345
3,847
5,924
168,490
182,910
61,192
131,690
-
16
84,544
-
114,061
16,333
845,339
1,450,218
Charity

22 Creditors: Amounts falling due after one year

Deferred income
Returnable deposits on retirement
properties		 2020
2019
£
£
36,135
57,100
165,080
256,691
165 080
256 691
201,215
313,791
Group		 2020
2019
£
£
36,135
57,100
165,080
256,691
165 080
201,215
313,791
Charity

Of which amounts falling due after one year, not wholly payable within 5 years

Repayable other than by instalments 118,009 187,030 118,009 187,030

`

Page: 65

British Union Conference of Seventh-day Adventists Notes to the Financial Statements For the year ended 31 December 2020

23
Statement of Funds (Group)
Designated Funds
Invested in Property
Voted Provision for Buildings
Revolving Investments
Retirement Facilities
Other Program Funds
Total Designated Funds
General Funds
Tithe Fund
Other General Funds
Pension Deficit
Total General Funds
Total Unrestricted Funds
Restricted Funds
Humanitarian Development and Relief
Donations for World Missions
Church Building Funds
Communication in Britain & Ireland
Legacy funds
Local Congregational Funds
Funds donated for Welfare
Funds for Subsidiary Contingency
Funds for Educational Support
Total Restricted Funds
Total Funds		 Brought
Incoming
Resources
Transfers
Carried
Forward
Resources
Expended
In / Out
Forward
£
£
£
£
£
13,187,401
-
(213,793)
43,574
13,017,182
923,686
-
-
11,579
935,265
500,000
-
-
-
500,000
198,869
-
-
40,654
239,523
309,221
27,402
(224)
20,000
356,399
15,119,177
27,402
(214,017)
115,807
15,048,369
176,256
5,073,867
(4,900,338)
49,735
399,520
26,263,549
7,752,174
(6,454,609)
(115,806)
27,445,308
(6,740,000)
-
(5,398,000)
-
(12,138,000)
19,699,805
12,826,041
(16,752,947)
(66,071)
15,706,828
34,818,982
12,853,443
(16,966,964)
49,736
30,755,197
2,174,780
2,392,654
(2,496,282)
-
2,071,152
-
-
-
-
-
51,507
(51,507)
-
-
1,351,536
57,139
(31,173)
(49,736)
1,327,766
224,520
141,403
(160,594)
-
205,329
955,044
-
-
955,044
13,962
3,940
(56)
17,846
350,000
-
(350,000)
-
661
-
-
661
5,070,503
2,646,643
(3,089,612)
(49,736)
4,577,798
39,889,485
15,500,086
(20,056,576)
-
35,332,995

Page: 66

British Union Conference of Seventh-day Adventists Notes to the Financial Statements For the year ended 31 December 2020

23
Statement of Funds (Charity)
Designated Funds
Invested in Property
Property Revaluation
Voted Provision for Buildings
Revolving Investments
Retirement Facilities
Other Program Funds
Total Designated Funds
General Funds
Tithe Fund
Other General Funds
Pension Deficit
Total General Funds
Total Unrestricted Funds
Restricted Funds
Communication in Britain & Ireland
Church Building Funds
Legacies
Local Congregational Funds
Funds donated for Welfare
*
Funds for Subsidiary Contingency
Funds for Educational Support
Total Restricted Funds
Total Funds**		 Brought
Incoming
Resources
Transfers
Carried
Forward
Resources
Expended
In / Out
Forward
£
£
£
£
£
9,066,113
-
(213,793)
43,574
8,895,894
20,495,000
-
-
-
20,495,000
923,686
-
-
11,579
935,265
500,000
-
-
-
500,000
198,869
-
-
40,654
239,523
309,221
27,402
(224)
20,000
356,399
31,492,889
27,402
(214,017)
115,807
31,422,081
176,256
5,073,867
(4,900,338)
49,735
399,520
3,224,139
4,095,110
(2,488,311)
(115,806)
4,715,132
(6,740,000)
-
(5,398,000)
-
(12,138,000)
(3,339,605)
9,168,977
(12,786,649)
(66,071)
(7,023,348)
28,153,284
9,196,379
(13,000,666)
49,736
24,398,733
1,351,536
57,139
(31,173)
(49,736)
1,327,766
51,507
(51,507)
-
-
212,310
-
212,310
955,044
-
955,044
13,962
3,940
(56)
17,846
350,000
-
(350,000)
-
661
-
661
2,883,513
112,586
(432,736)
(49,736)
2,513,627
31,036,797
9,308,965
(13,433,402)
-
26,912,360

Page: 67

British Union Conference of Seventh-day Adventists Notes to the Financial Statements

For the year ended 31 December 2020

24
Analysis of net assets between funds
Tangible fixed assets
Investment property
Current Assets
Creditors due within one year
Creditors due in more than one year
Pension Scheme Liability
Total Funds
25
Net cash flow from operating activities
Net incoming resources before revaluations
Adjustments to remove non-cash items:
Returns on investments & servicing of finance
Depreciation of tangible fixed assets
Deficit / Surplus on disposal of fixed assets
Unrealised loss/(gain) on investments
Revaluation of properties
Acquisition of subsidiary
Changes in working capital:
(Increase) / Decrease in stocks
(Increase) / Decrease in debtors
Increase / (Decrease) in creditors
Increase / (Decrease) in Pension Liability		 Unrestricted
Funds
£
33,384,790
155,000
14,096,549
(4,541,927)
(201,215)
(12,138,000)
30,755,197		 Restricted
Funds
£
-
-
4,577,798
-
-
-
4,577,798		 Total
2020
£
33,384,790
155,000
18,674,347
(4,541,927)
(201,215)
(12,138,000)
35,332,995
2020
£
3,084,406
(64,048)
341,594
30,372
(120,399)
-
-
(190,690)
(1,683,219)
1,179,384
(2,114,000)
463,400		 Total
2019
£
33,703,419
155,000
16,334,824
(3,249,967)
(313,791)
(6,740,000)
39,889,485
2019
£
6,607,933
(303,134)
521,626
12,324
(3,870)
1,114,000
(3,698,793)
(62,964)
763,920
(1,534,415)
(4,247,000)
(830,373)

Page: 68

British Union Conference of Seventh-day Adventists Notes to the Financial Statements For the year ended 31 December 2020

26
Analysis of cash flows from investing activities
Dividends, interest and rents from investments
Rents, dividends and interest from investments
Interest paid
Net cash inflow from returns on investments and servicing of finance
27
Analysis of cash and cash equivalents
Cash at bank and in hand
Deposits treated as liquid resources		 Total
2020
£
64,048
-
64,048
4,644,435
5,921,522
10,565,957		 Total
2019
£
307,307
(4,173)
303,134
3,161,322
7,021,524
10,182,846

Page: 69

British Union Conference of Seventh-day Adventists Notes to the Financial Statements For the year ended 31 December 2020

28 Pensions

The group participates in the Seventh-day Adventist Retirement Plan, a defined benefit scheme providing pensions for employees of all of the Seventh-day Adventist institutions in the United Kingdom. The assets of the scheme are held in a seperate trustee administered fund.

The scheme was closed on December 31, 2013 with contributions toward cost of maintaining the scheme only.

At the date of the last actuarial review dated January 31, 2013, the total plan deficit was £23,398,000 compared to £23,513,000 in the previous year. In addition the British Union has responsibility for Missionaries, who were never historically part of the plan, and the figures are augmented to included these. Due to the nature of the scheme, the British Union Conference is exposed to actuarial risks associated with employees of other participating employers.

The amounts recognised in the group Balance Sheet, are as follows:
Total
2020
£ '000
Present value of funded obligations
77,892
Fair value of scheme assets
(65,754)
Net liability
12,138
Amounts recognised in the statement of financial activities are as follows:
Movement in the present value of the defined benefit obligation were as follows:
Opening defined benefit obligation
67,058
Past service costs
-
Interest Cost
1,385
Benefits Paid
(2,261)
Experience (gain)/loss on defined benefit obligation
(10)
Changes to demographic assumptions
1,200
Changes to financial assumptions
10,520
Closing defined benefit obligation
77,892
Changes in the fair value of scheme assets were as follows:
Opening fair value of scheme assets
60,318
Interest on Assets
1,266
Return on plan assets less interest
4,198
Employer Contributions
2,157
Benefits paid
(2,261)
Administration Costs (borne by the employers)
-
Past service costs
76
Transfer of Members GPP funds
-
Closing defined benefit obligation
65,754
The major categories of scheme assets as a percentage of total scheme assets
2020
are as follows:
Equities
50%
Property
42%
Gilts
8%
Net current assets
0%
2020
2019
2018
2017
periods are:
£ '000
£ '000
£ '000
£ '000
Defined benefit obligation
(77,892)
(67,058)
(63,333)
(68,782)
Scheme assets
65,754
60,318
52,346
53,892
Deficit
(12,138)
(6,740)
(10,987)
(14,890)
Experience adjustments on scheme liabilities
-
(1,593)
(5)
(1,032,996)
Experience adjustments on scheme assets
-
7,016
(2,674)
3,520
Principal actuarial assumptions at the Balance Sheet date
2020
(expressed as weighted averages)
Discount rate at December 31
1.20%
Mortality rates
Mortality tables, adjusted by ages lowered by
0 years
Future salary increases
2.40%
Future pension increases
2.40%
Sensitivity of actuarial assumptions
£ '000
Reduce discount rate byt 0.1%
increase by
1,400
Reduce mortality adjustment by 10%
reduce by
3,510
Increase inflation and related assumptions by 0.1%
increase by
940
Adjustment to assumptions
HIistorical amounts for the current and previous
Effect on liabilities		 Total
2020
£ '000
77,892
(65,754)
12,138
67,058
-
1,385
(2,261)
(10)
1,200
10,520
77,892
60,318
1,266
4,198
2,157
(2,261)
-
76
-
65,754
2020
50%
42%
8%
0%
2017
£ '000
(68,782)
53,892
(14,890)		 Total
2019
£ '000
67,058
(60,318)
6,740
63,333
-
1,797
(2,776)
(1,593)
1,811
4,486
67,058
52,346
1,510
7,016
2,085
(2,776)
-
83
54
60,318
2019
51%
11%
38%
0%
2016
£ '000
(70,024)
49,327
(20,697)
(2,996)
9,211
2019
2.10%
0 years
2.40%
2.40%

Page: 70

British Union Conference of Seventh-day Adventists Notes to the Financial Statements

For the year ended 31 December 2020

29 Related party transactions

The charity is affiliated to the General Conference of Seventh-day Adventists (a USA non-profit organisation), whose divisional office the Trans-European Division is at 119 St Peter's Street, St Albans, Herts AL1 3EY

Regional conferences affiliated to the charity are:

North England Conference of Seventh-day Adventists, 22 Zulla Road, Nottingham, NG3 5DB South England Conference of Seventh-day Adventists, 25 St Johns Road, Watford, WD17 1PY The charity has tithe-sharing agreements with each of these associated charities.

Tithe-sharing grants received
Tithe-sharing grants made
Tithe-sharing for Pension Deficit
Other Grants Received
Other Grants made
Amounts due to charity < 1 year
Loans due to charity < 1 year
Loans due to charity > 1 year
Amounts due by charity < 1 year
Principal Subsidiaries:
Company
The Stanborough Press Ltd
Alma Park Road, Grantham, Lincolnshire
Adventist Development & Relief Agency
Garston, Watford, Hertfordshire
Seventh-day Adventist Association Ltd
Garston, Watford, Hertfordshire
Stanborough School
Garston, Watford, Hertfordshire		 General
Conference
£
338,092
332,544
-
230,458
-
-
-
-
383,022
Charity No. 235245
Company No. 41819
Charity No. 1074937
Scottish No. 37726
Charity No. 209780
Company No. 89953
Unincorporated		 North England
Conference
£
977,991
-
611,244
-
51,000
225,458
58,440
222,526
-
Country
UK
UK
UK
UK		 South England
Conference
£
2,342,589
-
1,464,118
-
84,000
833,889
34,436
99,716
-
Shareholding
100%
None
None
None		 2020
2019
£
£
3,658,672
3,949,441
332,544
347,862
2,075,362
2,330,507
230,458
287,282
135,000
135,000
-
1,059,347
619,247
92,876
102,718
322,242
385,853
383,022
1,070,027
Description
Publishing and distribution of
Christian literature
Trustees are appointed by the
BUC executive committee
Humanitarian Aid
Trustees are appointed by the
BUC executive committee
Titular holder of property
Support of local congregations
Trustees are appointed by
BUC executive committee
Christian education at primary
and secondary levels
Majority of trustees are appointed
by the BUC executive committee

30 Principal Subsidiaries:

Page: 71