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2023-08-31-accounts

REGISTERED COMPANY NUMBER: 03858051 (England and Wales) REGISTERED CHARITY NUMBER: 1077961 OSCR NUMBER: SC046952

Report of the Trustees and Financial Statements for the Year Ended 31st August 2023

for

Watch Tower Bible and Tract Society of Britain

Watch Tower Bible and Tract Society of Britain

Contents of the Annual Report for the Year Ended 31st August 2023

Page
Report ofthe Trustees 1 to 11
Report ofthe Independent Auditors 12 to 14
Statement of Financial Activities 15
Balance Sheet 16 to 17
Cash Flow Statement 18
NotestotheFinancialStatements 19 to 30

Watch Tower Bible and Tract Society of Britain Report of the Trustees for the Year Ended 31st August 2023

The trustees, who are also directors of Watch Tower Bible and Tract Society of Britain (the Society) for the purposes of the Companies Act 2006, present their report with the financial statements of the Society for the year ended 31st August 2023, which have been prepared in accordance with the charity governing document as referenced on page 8. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1st January 2019).

This report includes the Directors Report as required by company law.

OBJECTIVES AND ACTIVITIES

Objectives and aims

The Memorandum and governing document states that the objectives of the Society are to advance the Christian religion as practiced by the body of Christian persons known as Jehovah's Witnesses. This is accomplished in particular but not exclusively:

a. producing audio and video material for Bible education, publishing, importing, exporting, recording, translating,

producing, and distributing Bible literature;

b. providing services and facilities for members of the Worldwide Order of Special Full-Time Servants of Jehovah's Witnesses (the Order) and such other support as deemed appropriate from time to time; c. purchasing, building, and renovating properties for use by Jehovah's Witnesses as places of worship as well as for other purposes to support the Charity's objects;

d, engaging in acts of charity, mercy, and humanitarian aid; and

e. distributing funds and goods to other entities that have similar aims.

Significant activities

The major areas of activities for the year in question have been:

  1. Supporting entities of Jehovah's Witnesses with similar aims and objectives abroad. These donations have been in the form of goods such as paper for printing and software licences. All such donations have promoted religious activity overseas. This activity also includes sending funds directly, primarily to such entities in developing countries, where funds are limited. These are used for activities such as construction of places of worship and disaster relief. 2. Refurbishment of Kingdom Halls of Jehovah's Witnesses (places of worship) and the construction of new Kingdom Halls.

  2. Provision of facilities to assist members of the Order.

Public benefit

As evidenced in this report, much has been accomplished by the Society in the year to advance its objects for the public benefit.

The construction work facilitates the activity of Jehovah's Witnesses. It helps them, others who associate with them and the wider public to learn godly values, promote well-being and respect for others, and practice qualities such as honesty and kindness. The work of the Society ensures that individuals are not limited by their background or financial means to gain access to these provisions.

The work of the Society also benefits those who do not wish to access these provisions. For example, through its building work, the Society creates attractive and dignified buildings which are a pleasing gift to the community. Another benefit arises from the teaching that takes place in these buildings, a key aspect of which is being good neighbours.

Public benefit is also achieved in other countries, where entities with similar aims are helped to accomplish the objectives described above, as well as with disaster relief in affected areas. The Society has seen the results of its funding in new places of worship, and disaster relief efforts that greatly assist the individuals in need and their communities. More information is included in the achievements and performance section of this report.

The Trustees confirm that they have complied with their duty to have due regard to the Charity Commission guidance on public benefit when exercising any powers or duties to which the guidance is relevant.

]

Watch Tower Bible and Tract Society of Britain

Report of the Trustees

for the Year Ended 31st August 2023

OBJECTIVES AND ACTIVITIES

Overseas Donations

The Society's policy for making donations to other entities with similar aims and objectives is as follows: each year the Society considers requests from such entities in countries that receive insufficient donations locally to meet their aims. The Society considers if its yearly budget for this activity is appropriate. It also ensures that the beneficiary of these funds are legal entities that care for the activities of Jehovah's Witnesses in that country. After due diligence is carried out, the funds are sent. Reports are obtained to confirm appropriate use of the funds.

All donations made support the Christian ministry of Jehovah's Witnesses. Donated funds are used for building places of worship, facilitation of religious worship, providing Bible-based literature and assisting with disaster relief. The entities assisted share and pursue the same aims as the Society. Individual donors to the Society are made aware of the worldwide nature of our work and activities.

Assistance was also provided to entities used by Jehovah's Witnesses in other countries by purchasing and sending the necessary goods where appropriate.

Members of the Worldwide Order of Special Full Time Servants

The Society is often assisted by religious ministers who are members of the Order.

These individuals are not employed and do not receive a remuneration or any benefit in kind for the activities or services they perform. Although such ones do at times help the Society, for instance, by assisting with building work, their service involves many other assignments as well, not connected to the Society. Members perform whatever the Order assigns them to do in support of the activities of Jehovah's Witnesses.

Many who are not members of the Order, but who are Jehovah's Witnesses, also freely provide their time and resources to assist with needed work.

2

Watch Tower Bible and Tract Society of Britain

Report of the Trustees

for the Year Ended 31st August 2023

STRATEGIC REPORT Achievement and performance

Charitable activities - Assisting Entities with Similar Aims Overseas

During the year the Society provided material and financial assistance to entities of Jehovah's Witnesses with similar aims and objectives in several] countries.

The aid, £128 million in total, was given to promote missionary activity, assist with disaster relief, and support the local entities.

Direct funding of £89 million was sent to legal entities with similar aims and objectives, the majority of which were based in Africa. In addition, £39 million was spent on goods and services for these entities. These include computer programs, equipment and paper for printing activities. Sourcing these items centrally and donating them allows for the best use of donated funds. It also provides such goods to entities that otherwise would struggle to access them.

Funding was received from entities with similar aims and objectives that had already met their local needs. The Society has access to excellent banking services in Britain and was able to pool and distribute these funds. Of course, such funds are also available for domestic needs if necessary.

The receiving entities with similar aims and objectives sent very satisfying reports regarding the activity supported, which resulted in physical, spiritual and emotional support for many beneficiaries.

For example, in early 2023, Zambia experienced some of the most severe flooding of its recent history. The Society's funds helped to provide relief from this disaster. For example, they were used to procure and distribute food provisions to individuals in need. Construction projects were carried out on many Kingdom Halls. Major renovation was completed on two Assembly Halls, allowing beneficiaries to meet together in a peaceful environment, and thus to benefit fully from the spiritual food received.

In Mozambique, the funds

were used to facilitate the translation of different books of the Bible into local languages.

In Angola, funds were used to upgrade and improve many properties that facilitate worship and Bible education.

In Malawi, the receiving entity oversaw the reconstruction of 37 homes that were destroyed by natural disasters such as Cyclone Freddy and Cyclone Anna in addition to distributing relief supplies. They also completed the construction of 23 new places of worship.

The above are just a few examples. Similar activities took place in many other countries which the Society assists.

A social investment is also held by the Society. This is in line with the aims and objectives of the Society because the investment is charitable, helping Jehovah's Witnesses find places of worship in various parts of the world. The investment is socially, ethically and environmentally acceptable. It continues to perform positively.

Charitable activities - Building places of worship

The charity completed 4 new construction projects, 17 major renovation projects, 71 minor maintenance projects and | property purchase. This is despite the increasingly challenging logistical and economic circumstances as the charity operates in a post-Brexit, post-pandemic environment. Of note was the provision of a new place of worship in Buxton, England, that had previously been destroyed by storm damage prior to the pandemic, and the provision of a new place of worship for Jehovah's Witnesses in Brecon, Wales, where they had previously relied on intermittent rented facilities.

3

Watch Tower Bible and Tract Society of Britain

Report of the Trustees

for the Year Ended 31st August 2023

STRATEGIC REPORT

Achievement and performance

Charitable activities - Providing services to full-time ministers

The Society has a long history of charitable business activity, therefore is well placed to carry out a variety of activities when a need arises. It cares for a small commissary and car garage at the headquarters of Jehovah's Witnesses in Britain.

The Society also has a history of shipping items around the globe and is able to use this to assist ministers and entities with similar objectives. Another major element of this activity comes from the transport experience and supplier network built up by the Society. This makes vehicles available which can be used by ministers for their religious activity.

All of the above activities have been carried out successfully during the year.

Internal controls

To assist the Society in achieving its objectives, appropriate internal controls have been established. These ensure that the monthly financial reports accurately represent all transactions, provide reasonable assurance that finances are being used for their intended purpose, and verify that proper controls and procedures are in place, and adhered to.

Section 172(1) statement

The board of trustees consider that through their strategic planning and decision making in the year ended 31 August 2023 they have acted in a way that is most likely to promote the success of the charity for the benefit of its stakeholders as a whole.

Throughout the trustees’ report examples are given where the trustees continue to exercise their duties with regard to matters related to Section 172.

For instance, in the public benefit section, the trustees confirm that they have taken into regard the impact of the Society's operations on the community.

In accordance with Section 172(2), the significant activities section shows how activities, previously restricted due to the pandemic, have now been resumed. The risk is deemed low enough, especially compared to the good impact for beneficiaries, to design and build places of worship and assist other charities with similar aims and objectives.

Financial review

Financial position

The Society showed a deficit of £36 million on the Statement of Financial Activities (SOFA) at the 31st August 2023.

This came about due to an increase in activity of the entities with similar aims and objectives assisted by the Society. Their activities only started to resume, post-pandemic during the previous year. This is the first year of fully resumed activity. Along with this there have been increasing prices and disasters to deal with. Further information is described in the Reserves Policy and 'Assisting Entities with Similar Aims and Objectives Overseas' section of this report.

The aims and objectives of the Society are in no way financial, therefore monitoring of specific financial targets is not paramount. The trustees are pleased that they have been able to hold funds effectively and respond to worldwide needs as they arise.

The Socicty's basic financial aims are to maintain a strong balance sheet, to preserve its purchasing power and to maintain its ability to respond quickly to worldwide and local needs that may arise.

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Watch Tower Bible and Tract Society of Britain Report of the Trustees for the Year Ended 31st August 2023

STRATEGIC REPORT

Financial review

Principal funding sources

The Society currently has two funding sources, one of them being the construction of new facilities or places of worship, which is invoiced at cost to other charities with similar aims and objectives.

The Society relies to a large extent on voluntary donations to support its work, and has a consistent income stream through regular donations and legacies received. To support the overseas donations paid out, the Society also has arrangements with other global entities with similar aims and objectives, to receive incoming donations. These funds arrive when said entities have met their local needs. This allows the Society to pool the funds in banking institutions in Britain, ready and able to respond to worldwide needs. The SOFA confirms that this spending occurred successfully during the year.

The trustees are confident that the Society is in a strong financial position as demonstrated by the attached financial statements.

Investment policy and objectives

The memorandum and articles give power to invest funds in any lawful manner having full regard to the suitability of the investments, the need for diversification, and to be a socially responsible investor having due consideration for the beliefs of Jehovah's Witnesses. The objective of our investment policy is to balance the following issues: preserve the purchasing power, provide adequate liquidity, and to give consistent long-term returns.

After adjusting for inflow/outflows, the portfolio stayed flat over the past year, with an inflation rate of 6.7% in the year. The investment portfolio held 99.2% in diversified liquid assets. The financial statements show an unrealised loss has been incurred due to the increase in interest rates. However, the Society does not expect to realise this loss, because it intends to hold these investment assets to maturity.

The trustees continue to see the wisdom in holding to the current strategy favouring portfolio diversification both by asset class and currency exposure, having adequate liquidity in investment quality.

Reserves policy

At the year-end reserves, not including fixed assets, and social investments, stood at £213 million. All funds are unrestricted.

The reserves policy of the Society is to hold approximately 12 months running expenditure, as well as an appropriate amount for each country it assists. This would allow the Society to continue with regular expenditure, and to respond to disasters or other unexpected needs that could arise in multiple countries at one time. World events show this to be a very prudent step. The current reserves level meets our reserves policy.

These reserves represent amounts available for the Society's needs and any needs of the entities with similar aims and objectives in other countries. The Society has access to effective banking and investment services. The funds are therefore well utilised until they are called on. Worldwide needs can be responded to whenever necessary from this pool of funds. This assistance can be provided by sending funds, or acquiring and sending necessary items.

The trustees feel that such a policy is prudent, in light of the Society's plans and the current financial climate. They feel it makes best use of income and are confident that it does not adversely affect the Society's ability to both sustain and increase its activity. These reserves can therefore continue to be available for worldwide use as the need arises.

Going concern

The trustees are currently of the opinion that the Society is not exposed to a potential lack of going concern as they regularly monitor the financial position.

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Watch Tower Bible and Tract Society of Britain

Report of the Trustees

for the Year Ended 31st August 2023

STRATEGIC REPORT

Financial review

Environmental Performance

Especially with its building projects, the Society gives close attention to its environmental impact. Matters considered include: unused materials, construction waste management, renewable energy sources and water management. Conservation surveys are commissioned as necessary. Projects are registered with sustainability monitoring agencies such as BREEAM (Building Research Establishment Environmental Assessment Method) when this is required by local authorities.

The Society recognises the importance of environmental protection, especially with significant undertakings, and works in harmony with our Environmental Policy. This policy reflects the commitment to establish an Environmental Management System to monitor and control its environmental aspects; to assess and regularly re-assess the environmental effects of its activities; to conduct its activities in a manner that is sensitive to the needs and concerns of the surrounding inhabitants and environment; to integrate environmental issues into decision making; to reduce or eliminate pollution and nuisance; to minimise energy waste and materials; to protect biodiversity and ecosystems; to promote the use of sustainable, recyclable and renewable materials; and to educate and train volunteers in the use of environmentally conscious practices.

During 2023, the Society has planned trials of renewable energy systems for construction in 2024, These systems include solar PV energy generation & battery storage to reduce reliance on grid based energy. Additionally, trials are underway to evaluate efficient electrical heating systems that use heat pump technology. If successful, these systems will help move further away from fossil fuels, in favour of clean renewable energy sources.

The above information enables the trustees to report strong environmental performance for the year. It is in harmony with its overall aims, that the Society has successfully cared for the environment wherever it is operating.

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Watch Tower Bible and Tract Society of Britain

Report of the Trustees

for the Year Ended 31st August 2023

STRATEGIC REPORT

Principal risks and uncertainties

Formal reviews have taken place regarding the major risks to which the Society is exposed. Strategic safeguards are in place to reduce the impact of those risks as far as possible. The Risk Register was updated most recently in August 2023.

The principal risks and uncertainties facing the Society are: failure to comply with legal requirements on health and safety, fire, environment, waste; disaster in the construction or maintenance of places of worship.

The Society has limited exposure to price risk, credit risk, liquidity risk and cash flow risk, due to the nature of its charitable activities.

Failure to comply with legal requirements.

All building projects are compliant with any and all applicable legal, planning and building control requirements.

Regulatory authorities also inspect and advise on vehicle safety and standards.

Weekly maintenance and production meetings ensure standards are being followed and any suggestions are followed through.

We maintain a good working relationship with any authorities which oversee such requirements.

All of the above continue to ensure that the Society complies with relevant legal requirements.

Disaster in construction activities.

A comprehensive health and safety file is prepared for each project and managed by an onsite management team. Site safety audit visits are made twice annually to the groups of individuals overseeing construction in a given geographic area. Reports are reviewed by teams working centrally to see where any adjustments are needed. Incidents that occur on site are reviewed on a monthly basis, so that lessons learned can be applied across all areas of our operations.

Building sites are run consistent with Construction Industry Training Board Site Safety qualifications. Strict compliance with building regulations is ensured and experts fully utilised.

Workers attend safety and planning seminars. Daily meetings on health and safety are held on site for each project. An accident and near miss reporting system is also operational on site.

Documented instructions are followed by those in oversight. Written materials are provided to the relevant persons to assist them in maintaining health and safety.

The Trustees are confident that the hard work described above mitigates the possibility that a serious risk will be realised.

Statutory inquiry

The Trustees are pleased that the Charity Commission's final report was published in August 2023. With the statutory inquiry now fully concluded, the Trustees look forward to continuing with the important charitable activity of Watch Tower Bible and Tract Society of Britain.

Future plans

The Society wishes to continue to be able to provide material and financial assistance to entities of Jehovah's Witnesses with similar aims and objectives in several countries.

It also aims to complete more building projects, from minor renovations to major developments, as it continues to provide places of worship for beneficiaries.

7

Watch Tower Bible and Tract Society of Britain

Report of the Trustees for the Year Ended 31st August 2023

STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document

The charity, a UK company limited by guarantee, is controlled by its governing document, the memorandum and articles of the company dated 25th October 1999, as amended by special resolutions dated 19th April 2000, 21st November 2013, 13th April 2016, and 8th April 2022.

Organisational structure

The Society is constituted as a company limited by guarantee.

Members Liability

Each member of the charitable company undertakes to contribute to the assets of the charitable company in the event of it being wound up while they are a member, or within one year after they cease to be a member, such amounts as may be required, not exceeding £1, for the debts and liabilities contracted before they ceased to be a member.

Recruitment and appointment, induction and training of new trustees

The recruitment and induction of new trustees is arranged as follows: The trustees may at any time co-opt any person duly qualified to be appointed as a trustee to fill a vacancy in their number or as an additional trustee. Such a person must be a member of the Society and serve as one of Jehovah's Witnesses. New trustees are given training in both operational and financial matters with the aid of the existing trustees and relevant documentation and guidance provided by the Charity Commission. Trustees are given appropriate Charity Commission publications and training is arranged as part of the meetings of the trustees when the Society's policies are discussed. This is supplemented by periodic training provided by other professional bodies when new legislation affecting the Society is introduced.

The trustees meet together each month, and are in regular contact.

Wider network

The Society works closely with many entities with similar aims and objectives around the world. One example is the International Bible Students Association (IBSA). During the year IBSA provided the Society with serviced facilities for its charitable activities.

Cooperation with all of these entities facilitates an efficient and economic use of the Society's resources. This cooperation also helps the Society to meet its stated aims and objectives.

The charity also considers policies, procedures and guidelines used by entities of Jehovah's Witnesses globally with similar aims and objectives, and, where applicable, seeks to implement them.

Engagement with suppliers, customers and others

The trustees recognise the importance of good business relationships to facilitate the uninterrupted provision of charitable services to beneficiaries. Policies are followed to ensure strong relationships with key suppliers are maintained whilst still obtaining value for money and making the best use of donated funds.

REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number 03858051 (England and Wales)

Registered Charity number 1077961

Registered office 1 Kingdom Way West Hanningfield Chelmsford CM2 8FW

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Watch Tower Bible and Tract Society of Britain

Report of the Trustees

for the Year Ended 3ist August 2023

Trustees

P P Bell R Li A J Llewellyn G Maraia S$ J Morice J Rastall (resigned 31.01.24) S C Docherty L Thomas (appointed 01.02.24)

Auditors Xeinadin Audit Ltd Chartered Accountants and Statutory Auditor Becket House 36 Old Jewry London EC2R 8DD

Bankers Branch Address 126 Station Road Edgware London HA8 7RY

9

Watch Tower Bible and Tract Society of Britain

Report of the Trustees for the Year Ended 31st August 2023

STREAMLINED ENERGY AND CARBON REPORTING Greenhouse Gas Emissions, Energy Consumption & Energy Efficiency

GHG emissions and energy use data for period 1 September 2022 to 31 August 2023

----- Start of picture text -----
Current reporting year Comparison reporting year
2022-2023 2021-2022
tCOre
Quantity of energy consumed resulting from activities 468,439 531,827
for which the company is responsible
Emissions from combustion of gas (Scope 1) es 2
Emissions from combustion of fuel for transport
purposes (Scope |) (standard diesel)
Emissions from purchased electricity (Scope 2) ee ee
Total gross tCO2c based on above [os tig Td
Intensity ratio:
intensity measurement of tCOe/M” measurement of tCOe/M” of tCOe/M” tCOe/M”” has been been selected and is given given for energy consumption energy consumption consumption from activity connected connected
with its registered office and neighbouring properties in Chelmsford and separately for energy consumption in relation
construction or renovation projects.
2023 2022
tCQ2e/M7 in relation to Chelmsford properties 0.0019 0.015]
tCOe/M? in relation to construction or renovation projects 0.0034 0.0048
completed in the period
----- End of picture text -----

Intensity ratio: The intensity measurement of tCOe/M” measurement of tCOe/M” of tCOe/M” tCOe/M”” has been been selected and is given given for energy consumption energy consumption consumption from activity connected connected with its registered office and neighbouring properties in Chelmsford and separately for energy consumption in relation to construction or renovation projects.

Methodology:

This report has been prepared in line with the Department for Business, Energy & Industrial Strategy (BEJS) March 2019 'Environmental Reporting Guidelines: Including streamlined energy and carbon reporting guidance’.

The carbon figures have been calculated using the BEIS 2023 and 2022 carbon conversion factors for all fuels, other than the market-based electricity which has been taken from utility bills.

Emissions are reported as metric tonnes of carbon dioxide equivalent.

We have taken an operational control approach, meaning that 100% of emissions from operations over which the Society has operational control have been reported.

Energy Efficiency Action Taken:

There were no additional measures taken to increase the Society's energy efficiency during the period covered by this report.

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Watch Tower Bible and Tract Society of Britain

Report of the Trustees for the Year Ended 31st August 2023

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of the Society for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to

The trustees are responsible for keeping proper accounting records, which disclose with reasonable accuracy at any time the financial position of the charitable company, and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

Report of the trustees, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on ...Maxch...2-2......202¥..... and signed on the board's behalf by:

R Li - Trustee

1]

Report of the Independent Auditors to the Members of Watch Tower Bible and Tract Society of Britain

Opinion

We have audited the financial statements of Watch Tower Bible and Tract Society of Britain (the ‘charitable company’) for the year ended 31st August 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the 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 (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland’.

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 Auditors’ responsibilities for the audit of the 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 is 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 charitable company'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 trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

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.

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 this gives rise to a material misstatement in the financial statements themselves. 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

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Report of the Independent Auditors to the Members of Watch Tower Bible and Tract Society of Britain

Matters on which we are required to report by exception

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

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, 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 charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concem basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

13

Report of the Independent Auditors to the Members of Watch Tower Bible and Tract Society of Britain

Our responsibilities for the audit of the financial statements

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 a Report of the Independent Auditors 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 the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Our objectives in performing the audit are to identify and asses the risk of material misstatement in the financial statements due to fraud or error and to obtain sufficient audit evidence to support this. We also evaluate and respond to the risk of material misstatements.

Audit procedures performed by the engagement team included:

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors’ report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

anQ TCH INNES Hung fe Nicholas Hume FCA (Senior Statutory Auditor) for and on behalf of Xeinadin Audit Ltd Chartered Accountants and Statutory Auditor Becket House 36 Old Jewry London EC2R 8DD

Date: 20, Mev. 224

14

Watch Tower Bible and Tract Society of Britain

Statement of Financial Activities (Incorporating an Income and Expenditure Account) for the Year Ended 31st August 2023

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||||||||| |---|---|---|---|---|---|---|---| |2023|2022| |Unrestricted|Unrestricted| |fund|fund| |Notes|£|£| |INCOME AND|ENDOWMENTS|FROM| |Donations|and|legacies|2|96,298,180|77,065,506| |Charitable|activities|4| |Design|and|build|of|places|of worship|324,654|1,105,797| |Investment|income|3|3,003,746|2,868,666| |Other income|5|1,272,781|7,927,841| |Total|100,899,361|88,967,810| |EXPENDITURE|ON| |Raising|funds| |Investment management|costs|6|103,210|124,056| |103,210|124,056| |Charitable|activities|7| |Assisting|Other|Entities|with|similar|aims|and| |objectives|128,354,364|75,268,588| |Design|and build|of places|of worship|4,675,203|6,047,951| |Providing|services|for|full-time|mimisters|713,273|573,816| |Total|133,846,050|82,014,411| |Net gains/(losses)|on investments|(3,291,070)||(18,037,821)| |NET|INCOME/(EXPENDITURE)|(36,237,759)|(11,084,422)| |RECONCILIATION|OF|FUNDS| |Total|funds brought|forward|250,448,943|261,533,365| |TOTAL FUNDS CARRIED|FORWARD|214,211,184|—|250,448,943|

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The notes form part of these financial statements

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Watch Tower Bible and Tract Society of Britain

Balance Sheet

31st August 2023

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||||||||||| |---|---|---|---|---|---|---|---|---|---| |2023|2022| |Unrestricted|Unrestricted| |fund|fund| |Notes|£|£| |FIXED|ASSETS| |Tangible|assets|11|1,687,914|1,923,522| |Investments| |Investments|12|207,082,252|252,233,645| |Social|investments|13|460,215|460,215| |209,230,381|254,617,382| |CURRENT|ASSETS| |Stocks|14|3,877,877|2,326,702| |Debtors|15|1,453,204|758,667| |Cash|at bank|and|in|hand|8,777,478|8,334,188| |14,108,559|11,419,557| |CREDITORS| |Amounts|falling|due|within|one|year|16|(1,346,193)|(7,368,929)| |NET CURRENT ASSETS|12,762,366|4,050,628| |TOTAL ASSETS|LESS|CURRENT| |LIABILITIES|221,992,747|258,668,010| |CREDITORS| |Amounts|falling|due|after more|than|one|year|17|(4,445,130)|(4,872,942)| |PROVISIONS|FOR LIABILITIES|19|(3,336,433)|(3,346,125)| |NET ASSETS|214,211,184|— 250,448,943|

----- End of picture text -----

The notes form part of these financial statements

16

Watch Tower Bible and Tract Society of Britain

Balance Sheet - continued 31st August 2023

FUNDS 20 Unrestricted funds: General Fund

TOTAL FUNDS

214,211,184 250,448,943 214,211,184 _ 250,448,943

The financial statements were approved by the Board of Trustees and authorised for issue on.... Marth..2.9.....2,02-4...... and were signed on its behalf by:

R Li - Trustee

----- Start of picture text -----
= c
ft =
AJ Llewellyn - Trustee
----- End of picture text -----

The notes form part of these financial statements

17

Watch Tower Bible and Tract Society of Britain

Cash Flow Statement

for the Year Ended 31st August 2023

2023 2022
Notes £ £
Cash flows from operating activities
Cash generated from operations 22 (44,623,941) 13,454,730
Net cash (used in)/provided byoperating activities (44,623,941) 13,454,730
Cash flows from investing activities
Purchaseoftangible fixed assets (84,617) (27,999)
Purchase offixed asset investments (94,822,481) (226,099,936)
Sale oftangible fixed assets 302,324 3,223,679
Saleoffixed asset investments 137,261,660 208,735,549
Interest received 2,802,987 3,030,767
Netcash provided by/(used in) investing activities 45,459,873 (11,137,940)
Cash flows from financing activities
Loansadvancedby depositors 69,906 29,017
Loansrepaid to depositors on (462,548) (589,150)
Net cash used in financing activities (392,642) (560,133)
Change in cash and cash equivalents in
the reporting period 443,290 1,756,657
Cash and cash equivalents at the
beginning ofthe reporting period 8,334,188 6,577,531
Cash and cash equivalents at the end of
thereportingperiod 8,777,478 8,334,188

The notes form part of these financial statements

18

Watch Tower Bible and Tract Society of Britain

Notes to the Financial Statements

for the Year Ended 31st August 2023

1, ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, a company limited by guarantee registered in England and Wales and in Scotland, which is a public benefit entity under FRS102, have been prepared in accordance with applicable charity and company law, namely the Charities SORP (FRS102) ‘Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective Ist January 2019)', Financial Reporting Standard 102' The Financial Reporting Standard applicable in the UK and Republic of Ireland' (effective 1 January 2019), the Companies Act 2006 and the Charities Act 2011.

The financial statements have been prepared under the historical cost convention or transaction value, unless stated in the relevant accounting policy note(s). All amounts are stated in pounds sterling and rounded to the nearest whole number,

Critica] accounting judgements and key sources of estimation uncertainty The preparation of the financial statements requires judgements, estimations and assumptions to be made that affect the reported value of assets, liabilities, income and expenditure. The nature of estimation and judgement means that actual outcomes could differ from expectation. A significant area of estimation and judgement is when support costs have been allocated to activity on a basis consistent with their use of resources. Further estimations and judgement are investment valuations at market value as described in note 13 and conditional donations provision as described at note 19.

Another key estimate is the rate of depreciation. The trustees are of the opinion that the rates applied to the financial statements are appropriate.

Income

All income, whether in the form of donations or legacies is recognised in the Statement of Financial Activities once the Society has entitlement to the funds, it is probable that the income will be received, and the amount can be measured reliably.

Donations in the form of assets are included at the net book value on the date of the gift.

For legacies, entitlement is taken as the earlier of the date on which either; the Society is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the Society has been notified of the executor's intention to makea distribution.

Income from charitable activities also includes the value of services, excluding Value Added Tax, provided at cost to other charitable bodies during the period. The completion stage of building work performed over long-term contracts is verified by qualified individuals and invoiced accordingly at appropriate intervals.

Grants are recognised when the charity is entitled to receipt.

Investment income is accounted for on an accruals basis.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the Society to that expenditure, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to particular headings they have been allocated as described later regarding cost allocation.

Raising funds

These are comprised of investment management costs incurred during the year. The Society does not engage in fund raising.

19

Watch Tower Bible and Tract Society of Britain

Notes to the Financial Statements - continued for the Year Ended 31st August 2023

  1. ACCOUNTING POLICIES - continued

Governance costs

Governance costs comprise costs involved in the running and administration of the Society. These are allocated across activities in the same manner as all other support costs.

Allocation and apportionment of costs

Where a cost is incurred for the purpose of directly achieving one of the charitable aims it is allocated to that particular aim.

Some costs do not relate to one particular aim, but support all of the aims of the Society. Where this is the case, the support cost is apportioned to the activity based on the proportion of direct costs it incurs.

Tangible fixed assets

Fixed assets are valued at cost less depreciation and impairment charges. Assets costing less than £3,000 are not capitalised. Depreciation is provided at the following annual rates in order to write each asset down to its residual value over its estimated useful life:

Freehold land - Not depreciated
Buildings - 2%oncost
Plant and machinery - 10% or6.7% on cost,
Motor vehicles - 33%, 20% or 14% on cost
Fixturesandfittings - 33%or10%oncost

Impairment reviews are carried out on individual assets when there is some indication that the recoverable amount of a fixed asset is below its net book value.

Social investments

The Society classifies its social investments as programme related. The investment is to further charitable aims, and any financial return is incidental. The investment is held at cost less impairment, as fair value cannot be measured reliably.

Fixed Asset Investments

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. The Statement of Financial Activities includes the net gains and losses arising on revaluation and disposals throughout the year

The majority of fixed asset investments are bonds, held in UK sterling or other traded currencies. They have been valued at the appropriate exchange rate at the year-end. Although they are liquid investments, the nature of the portfolio is long term.

A far smaller portion of the investments consists of various funds and derivatives managed by professional firms and banks. The valuations are based on the external fund managers' estimates of the underlying assets of the investment vehicle.

Financial Instruments

In addition to the fixed asset investments the Society also has basic financial] instruments initially recognised at transaction value and subsequently measured at their settlement value if there is any variance. If any are for a period longer than twelve months these are amortised when appropriate.

Stocks and long-term contracts

Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cost includes all direct expenditure and an appropriate proportion of fixed and variable overheads.

20

Watch Tower Bible and Tract Society of Britain Notes to the Financial Statements - continued for the Year Ended 31st August 2023

  1. ACCOUNTING POLICIES - continued

Stocks and long-term contracts

Long term contracts are assessed on a contract by contract basis and reflected in the statement of financial activities by recording turnover and related costs as contract activity progresses. Turnover is ascertained in a manner appropriate to the stage of completion of the contract.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Foreign exchange gains and losses

Foreign currency balances have been translated at the prevailing rate on the balance sheet date. Income and expenditures during the year have been translated at the prevailing rate on the day of the transaction. Gains and losses arise when foreign currency assets change in value between their purchase and the balance sheet date.

Donated goods

Donated goods are recognised as income when the Society has contro! over the item, the receipt of economic benefit from the use by the Society of the item is probable and that economic benefit can be measured reliably. These would be measured at fair value unless impractical to do so. In such cases donated goods are recognised at cost.

Deposits

The Society had an arrangement whereby individuals could deposit funds so that the Society could benefit, on the understanding that these funds could be requested back whenever the depositor wishes. Deposits repayable on demand are classified as falling due within one year. This arrangement was closed to new deposits in 2015. Experience shows that only a small percentage of deposits (approximately 10%) will be called upon in any one year. Therefore, 90% of these amounts held are recognised as falling due after one year. Deposits are still accepted from congregations of Jehovah's Witnesses.

Conditional donations

The Society receives some donations where the donor reserves the right to receive the funds back in case of unexpected need. Experience has shown that only a small percentage is returned, but prudently the charity provides for twenty-five percent.

Other recognised gains and losses

These comprise unrealised and realised gains and losses on investments. Unrealised gains and Josses represent the difference between the market value brought forward (or cost, for assets bought within this financial year) and the market value at the balance sheet date. Realised gains and losses represent the difference between sales proceeds and market value brought forward (or cost, for assets bought within this financial year.) Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.

Irrecoverable VAT

Irrecoverable VAT is included in the relevant cost headings on the face of the Statement of Financial Activities and is not shown as a separate item.

Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Society, which is normally upon notification of the interest paid or payable by the Bank.

21

Watch Tower Bible and Tract Society of Britain

Notes to the Financial Statements - continued for the Year Ended 31st August 2023

  1. ACCOUNTING POLICIES - continued

Debtors

Debtors are recognised at the total amount due to the Society. Prepayments are valued at the amount prepaid net of any trade discounts due.

Cash at bank and in hand

Cash at bank and in hand include current and deposit accounts as well as trivial amounts of petty cash.

Creditors

Creditors are recognised where the Society has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are normally recognised at their settlement amount after allowing for any trade discounts due.

Going Concern

The Trustees consider the Society a going concern and have no material uncertainties in this regard. A strong balance sheet position and consistent income base contribute to this conclusion,

Volunteers

Individuals voluntarily assist with all of the activities of the Society. The role of these individuals is fundamental to the Society carrying out its work, as the Society does not have a salaried workforce.

DONATIONS AND LEGACIES
2023 2022
£ £
Donations ofcash and goods 92,957,675 74,395,626
Gift aid 171,531 220,975
Legacies 3,168,974 2,448,905
96,298,180 77,065,506
INVESTMENT INCOME
2023 2022
£ £
Rents received - 9,582
Deposit account interest 84,045 4,408
Interest receivable 2,919,701 2,854,676
3,003,746 2,868,666

22

Watch Tower Bible and Tract Society of Britain

Notes to the Financial Statements - continued for the Year Ended 31st August 2023

4. INCOME FROM CHARITABLE ACTIVITIES
2023 2022
Design
and build
ofplaces
of Total
worship activities
£ £
Income from construction ofplaces of
worship 324,654 1,105,797
5. OTHER INCOME
2023 2022
£ £
Gain on saleoftangible fixed assets 54,814 543,846
Foreigncurrencygains 1,116,813 7,358,884
Other income 101,154 25,111
1,272,781 _7,927,841
6. INVESTMENTMANAGEMENTCOSTS
2023 2022
£ £
Portfoliomanagement 103,210 124,056
7. CHARITABLE ACTIVITIES COSTS
Support
Direct costs (see
Costs note 8) Totals
i £ £
Assisting Other Entities with similar
aims and objectives 128,212,366 141,998 128,354,364
Design and build ofplaces ofworship 4,670,461 4,742 4,675,203
Providing services for full-time
ministers 712,484 789 713,273
133,595,311 147,529 _133,742,840

23

Watch Tower Bible and Tract Society of Britain

Notes to the Financial Statements - continued

for the Year Ended 31st August 2023

  1. SUPPORT COSTS

----- Start of picture text -----
|||||||||| |---|---|---|---|---|---|---|---|---| |Governance| |Finance|Other|costs|Totals| |£|£|£|£| |Assisting|Other|Entities|with|similar aims| |and|objectives|22,497|3,455|116,046|141,998| |Design|and build of places|of worship|751|115|3,876|4,742| |Providing|services|for|full-time|ministers|125|19|645|789| |23,373|3,589|120,567|147,529|

----- End of picture text -----

Support costs have been allocated to the appropriate activity, as shown above, in line with the charity's accounting policies.

9, NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

----- Start of picture text -----
||||||| |---|---|---|---|---|---| |2023|2022| |£|£| |Auditors'|remuneration|69,240|34,080| |Depreciation|- owned|assets|64,306|109,845| |Surplus on|disposal|of fixed|assets|(46,405)|(536,446)|

----- End of picture text -----

  1. TRUSTEES' REMUNERATION AND BENEFITS

The trustees do not receive any remuneration or benefits for their role as trustees of the Society.

All are members of the Worldwide Order of Special full-time Servants of Jehovah's Witnesses.

The trustees and their spouses donated in total £500 to the charity.

The conditional donation provision contains an amount of £3,500 relating to a trustee.

Trustees’ expenses

No expenses were reimbursed to trustees during the year.

24

Watch Tower Bible and Tract Society of Britain

Notes to the Financial Statements - continued for the Year Ended 31st August 2023

11. TANGIBLE FIXED ASSETS

----- Start of picture text -----
|||||||||| |---|---|---|---|---|---|---|---|---| |Fixtures| |Freehold|Plant|and|and|Motor| |property|machinery|fittings|vehicles|Totals| |£|&|£|£|£| |COST| |At|Ist|September|2022|2,058,303|332,646|37,361|399,173|2,827,483| |Additions|-|27,546|-|57,071|84,617| |Disposals|(425,514)|(21,945)|(8,075)|(16,112)|(471,646)| |At|31st|August|2023|1,632,789|338,247|29,286|440,132|2,440,454| |DEPRECIATION| |At|lst|September|2022|414,001|149,742|34,615|305,603|903,961| |Charge|for year|24,149|20,461|1,529|18,167|64,306| |Eliminated|on disposal|(188,838)|(6,732)|(7,267)|(12,890)|(215,727)| |At|31st August 2023|249,312|163,471|28,877|310,880|752,540| |NET BOOK VALUE| |At|31st August|2023|1,383,477|174,776|409|129,252|1,687,914| |At|31st August|2022|1,644,302|182,904|2,746|93,570|1,923,522|

----- End of picture text -----

Included in freehold property is land which is not depreciated with a value of £466,711.

  1. FIXED ASSET INVESTMENTS

----- Start of picture text -----
|||||||| |---|---|---|---|---|---|---| |Listed| |Other|debt| |Investments|securities|Totals| |£|£|£| |MARKET|VALUE| |At|Ist|September|2022|2,220,843|250,012,802|252,233,645| |Additions|16,446|94,806,035|94,822,481| |Disposals|(176,842)|(137,084,818)|(137,261,660)| |Exchange|differences|and| |realised/unrealised|gain/loss|(345,009)|(2,367,205)|(2,712,214)| |At|31st August 2023|1,715,438|205,366,814|_207,082,252| |NET BOOK VALUE| |At|31st August 2023|1,715,438||205,366,814||207,082,252| |At|31st|August 2022|2,220,843||250,012,802|_252,233,645|

----- End of picture text -----

Approximately £3 million is shown on the SOFA as a net loss on investments.

25

Watch Tower Bible and Tract Society of Britain

Notes to the Financial Statements - continued

for the Year Ended 31st August 2023

13. SOCIAL INVESTMENTS

SOCIAL INVESTMENTS
Programme
related
investments
equity
£
MARKET VALUE
At 1st September 2022 and
31st August 2023 460,215
NET BOOK VALUE
At31stAugust2023 460,215
At31stAugust2022 460,215

This represents an investment in a project which helps Jehovah's Witnesses around the world in finding places to meet and carry out their worship. The trustees are very confident in its performance and that it will continue to advance the charitable aims of the Society.

14. STOCKS
2023 2022
£ £
Raw materials 29,268 24,777
Work-in-progress 3,848,609 2,301,925
3,877,877 2,326,702
15. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£ £
Trade debtors 11,654 7,592
Otherdebtors 58,384 59,007
Prepayments and accrued income 1,383,166 692,068
1,453,204 758,667

26

Watch Tower Bible and Tract Society of Britain

Notes to the Financial Statements - continued for the Year Ended 31st August 2623

16, CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

----- Start of picture text -----
||||||| |---|---|---|---|---|---| |2023|2022| |£|£| |Deposits|(see|note|18)|493,903|541,438| |Trade|creditors|756,840|1,444,885| |Other|creditors|1,896|5,284,939| |Accrued|expenses|93,554|97,667| |1,346,193|7,368,929|

----- End of picture text -----

Deposits comprise monies received from individuals, circuits and congregations and held with the Society until they are requested back.

  1. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

----- Start of picture text -----
||||||| |---|---|---|---|---|---| |2023|2022| |£|£| |Deposits|(see|note|18)|4,445,130|4,872,942|

----- End of picture text -----

  1. DEPOSITS

No maturity analysis is provided for these deposits due to their nature, as described in the above notes.

  1. PROVISIONS FOR LIABILITIES

----- Start of picture text -----
|||||||||| |---|---|---|---|---|---|---|---|---| |2023|2022| |£|£| |Conditional|donations|3,336,433|3,346,125| |£| |Provision|at|1st|September 2022|3,346,125| |Provision on new|conditional|donations|received|206,945| |Provision|released|on|conditional|donations|converted|into|donations|(203,860)| |Provision|released|on|conditional|donations|repaid|(12,777)| |Provision|at|31st August|2023|3,336,433|

----- End of picture text -----

Conditional donations are donations made by individuals on the understanding that they may be recalled should the donor require such funds in the future. The donor retains an option over their donation until they die or write to convert it into an outright donation or request repayment. While it is considered probable that some of these conditional donations will need to be repaid, it is unknown when this liability will crystallize or how large it will be. The trustees have therefore prudently made a provision for 25% of the balance of conditional donations as shown above. The remaining £10,009,299 is a contingent liability.

27

Watch Tower Bible and Tract Society of Britain

Notes to the Financial Statements - continued

for the Year Ended 31st August 2023

----- Start of picture text -----
|||||||||||| |---|---|---|---|---|---|---|---|---|---|---| |20.|MOVEMENT|IN|FUNDS| |Net| |movement|At| |At|1.9.22|in|funds|31.8.23| |£|£|£| |Unrestricted|funds| |General|Fund|250,448,943|(36,237,759)|214,211,184| |TOTAL FUNDS|250,448,943|(36,237,759)|214,211,184| |Net movement|in|funds,|included|in|the|above|are|as|follows:| |Incoming|Resources|Gains|and|Movement| |resources|expended|losses|in|funds| |£|£|£|£| |Unrestricted|funds| |General|Fund|100,899,361|(133,846,050)|(3,291,070)|(36,237,759)| |TOTAL|FUNDS|100,899,361|(133,846,050)|(3,291,070)||(36,237,759)| |Comparatives|for movement|in|funds| |Net| |movement|At| |At|1.9.21|in|funds|31.8.22| |£|£|£| |Unrestricted|funds| |General|Fund|261,533,365|(11,084,422)|250,448,943| |TOTAL|FUNDS|261,533,365|(11,084,422)|250,448,943| |Comparative|net movement|in|funds,|included|in|the|above|are|as|follows:| |Incoming|Resources|Gains and|Movement| |resources|expended|losses|in|funds| |£|£|£|£| |Unrestricted|funds| |General|Fund|88,967,810|(82,014,411)|(18,037,821)|(11,084,422)| |TOTAL FUNDS|88,967,810|(82,014,411)|(18,037,821)|_ (11,084,422)|

----- End of picture text -----

28

Watch Tower Bible and Tract Society of Britain

Notes to the Financial Statements - continued for the Year Ended 31st August 2023

  1. MOVEMENT IN FUNDS- continued

A current year 12 months and prior year 12 months combined position is as follows:

----- Start of picture text -----
|||||||||||||||||||| |---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---| |Net| |movement|At| |At|1.9.21|in|funds|31.8.23| |£|£|£| |Unrestricted|funds| |General|Fund|261,533,365|=|(47,322,181)|214,211,184| |TOTAL FUNDS|261,533,365| (47,322,181)|_214,211,184| |A|current|year|12|months|and|prior|year|12|months|combined|net|movement|in|funds,|included|in|the|above| |as|follows:| |Incoming|Resources|Gains and|Movement| |resources|expended|losses|in|funds| |Unrestricted|funds|£|£|Bs|£| |General|Fund|189,867,171|(215,860,461)|(21,328,891)|(47,322,181)| |TOTAL FUNDS|189,867,171|(215,860,461)| (21,328,891)|_|(47,322,181)|

----- End of picture text -----

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

  1. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31st August 2023.

  1. RECONCILIATION OF NET EXPENDITURE TO NET CASH FLOW FROM OPERATING ACTIVITIES

----- Start of picture text -----
|||||||||| |---|---|---|---|---|---|---|---|---| |2023|2022| |£|£| |Net expenditure|for|the|reporting|period|(as|per|the Statement|of| |Financial|Activities)|(36,237,759)|(11,084,422)| |Adjustments|for:| |Depreciation charges|64,306|109,845| |Losses on|investments|2,912,973|11,145,385| |Profit on disposal|of fixed|assets|(46,405)|(536,446)| |Interest|received|(2,802,987)|(3,030,767)| |Other non-cash donations|received|(82,705)|(109,007)| |(Decrease)/increase|in provisions|(9,692)|152,213| |Donated|assets|-|10,251,557| |Accrued|interest movement|(200,759)|171,683| |(Increase)/decrease|in|stocks|(1,551,175)|528,642| |(Increase)/decrease|in debtors|(694,537)|633,849| |(Decrease)/increase|in|creditors|(5,975,201)|5,222,198| |Net cash|(used|in)/provided|by|operations|(44,623,941)|13,454,730|

----- End of picture text -----

29

Watch Tower Bible and Tract Society of Britain

Notes to the Financial Statements - continued for the Year Ended 31st August 2023

23. ANALYSIS OF CHANGES IN NET FUNDS

At 1.9.22 Cash flow At 31.8.23
£ £ £
Net cash
Cash atbankand inhand 8,334,188 443,290 8,777,478
8,334,188 443,290 8,777,478
Debt
Debts falling due within year (541,438) 47,535
Debts falling due after 1 year (4,872,942) 427,812 (4,445,130)
(5,414,380) 475,347 (4,939,033)
Total 2,919,808 918,637 3,838,445
24. FINANCIAL INSTRUMENTS
2023 2022
Debt instruments at fair value
Listed debt securities 205,366,814 250,012,802
Other Investments 1,715,438 2,220,843
Total 207,082,252 252,233,645

25. EMPLOYEES

The Society does not have any employees (2022: nil).

30