REGISTERED COMPANY NUMBER: 03858051 (Fngland and Wales) REGISTERED CHARITY NUMBER: 1077961 OSCR NUMBER: SC046952 Report of the Trustees and Financial Statements for the Year Ended 31st August 2024 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 2024 Page Report of the Trustees I to 11 Report of the Independent Auditors 12 to 15 Statement of Financial Activities J6 Balance Sheet 17 to 18 Cash Flojv Statement 19 Notes to the Financial Statements 20 to 31 Watch Tower Bible and Tract Society of Britain Report of the Trustees for the Year Ended 31st August 2024 The trustees, who are also directors of Watch Tower Bible and Trdct Society of Britain (the Society) for the puTpoges of the Companies Act 2006, present their Teport wilh the financial statements of the Society for the year ended 31 SÉ August 2024, which have been prepared in accordance wilh 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 applicablc to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective I 51 January 2019). I'his report includes the Directors Report as required by company law. OBJECTIVFS AND ACTIVITIES Objectives and aims The Memorandum and governing documenl .%tates that the objectives of the Society are to advance the Cl]ristian religion as practiced by the body of Christian persons kno￿￿ 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 lilerature: b. providing services and facilities for members of the Worldwide Order of Special Full-Time Servants of Jehovah's Witnesses (the Order) and su¢h other support as deemed appropriate from time to time. . purchasing, building, and renovating properties for use by Jehovah's Witnesses as places of worship as well as for other purposes to support the Charitvs objerls,. . engaging in acts of charity) mercy, and humanitarian aid; and . distributing funds and goods to other entities that have similar airns. Significant aetivities The nujor areas of activitie5 for the year in question have been.. l. Supporting entities with similar aims and objectives abroad. These donations have been in the forni of goods such as paper for printing and ,%oftware licenceb. All such donations have promoted religiou% activity oversea.8. This activity also includes sending ￿ndS directly, primarily to such entities in developing countries, where ￿ndS are limited. These are used for activities such as construelion of places of worship and disaster relief. 2. Refvrbishment of Kingdom Halls of Jehovah's Witnesses (places of worship) and the constrnclion of new Kingdom Halls. 3. Provision of facilities lo 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 consiruction work facilitates the activity of Jehovah's Witnesses. It helps them, others who associate with them and the wider public to learn godly values, proinote w¢ll_beiT]g and respgct for otheTS, and practice qualitlc￿i 8uch as honesty and kindness. The work of the Society ensures that individualè+ are not limited by their background OT financÉal means to gain access to these provision%. The work of the Society also bcnefitS thosc who do not wish to acce.88 these provisions. FOT example. through ils building work, the Society creates attractivc and dignified buildings which are a ple&sing 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 enlities with similar aims are helped to accomplish the objectives described above, as well as with disaster relief in affected areas. l-he Society has seen the results of ils fundillg in new places of worship, and disaster relief efforts ihat greatly assist the individuals in need and their communities. More infOrn￿ll0n is included in the achievements and perfonrlance section of this report. The Trustees confirni that they have complied with their duty to have due regard to the Charity Commission gutdan¢¢ on public benefit when exercising any powers or duties to which the guidance is relevant. Wateh Tower Bible and Tract Society of Britain Report of the Trustees for the Year Ended 31st August 2024 OWECTIVES AND ACTIVITIES Social investments A &*ocial inve4lment is also h¢ld by the Society. This is in line with the aitns and objectives of the Society because the investment is charitable, helping Jehovah's Wiinesses find places of worship in various parts of the world. The investment is socially. ethically and environmentally acceptable. li continues to perforni positively. Overseas Donations The Society's policy for making donations to oiher entities wAth similar aims and objectives 1% as follows- each year the Society considers reque8ls from such enlilies in countries that receive insufficient donations locally to meei iheir aims, The Society considers if ils yearly budget for ihis activity is appropriate. It also ensur¢s that the beneficiary of these funds are legal entities that care for the activities of Jehovah's Witnesses in that county. After due diligence is catTied OUL the funds are sent. Reports are obtained to confirni appropriate use of the ￿nds. All donations made support the Christian ministry of Jehovah's Witnesses. Donated funds are used for building place5 of worship, facililalion of religious worship, provtding 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 entitie8 used by Jehovah's Witnesses in other countries by purchasing and sending the necessary goods where appropriatc. Mcmber& of the Worldm'ide Order of Special Full Time Servants Thc SocÈety is often assisted by religious ministers who are members ot the Order. These individualb are not employed and do not receive a remuneration or any benefit in kind for the activities or services they perforn]. Although such ones do al times help the Society, for instance. by assisting with building work, Ihetr service involves many other assignments as well, not connected to the Society. Members perforn] whatever the Order assigns them to do in support of the activities of Jehovah's Witnesses. Many who are rtot Members of the Order, but who are Jehovah's Witnesses, also freely provide their lime and resources lo assist with needed work. Watch Tower Bible and Tract Society of Britain Report of the Trvstees for the Yerdr Ended 31st August 2024 STIL4TEGIC REPORT Achievement and performance Charitable actlvities - Assisting Entities with Si]nilar Aims Overseas During the year the Society provided material and financial assistance to entitles of Jehovah's Witnesses with similar aims and objectives in several countries. The aid, £103 mtllion (2023: l28 million) in lolal. was given to promote missionary a¢tivity> a5SlSt with dis&ster relief, and support the local entities. Direct ￿lld1ng of £68 million (2023.. £89 million) was sent lo legal entities with similar aims and objectives, the majority of which were based in Africa. In addition, £35 million {2023.. £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 othenvise 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 w)ol 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 qupport for many beneficiaries. For example, in Zambia, Construction work was completed on a remote Iranslalion office, enabling the Iranslaiion of Bible based publicattons into local languages. In addition. construction projects were completed on 156 Kingdom Halls and 6 Assembly Halls, allowing beneficiaries to meet together in a peaceful environment, and thus to benefit fvlly from the spiritual progrdmme. Zambia and Angola have been two countries where the simplified Assembly Hall designs have been implemented. This design program is lailored lo local needs and circumstances, facilitating the rapid and cost-effective conslruction of modest, dignified venues for assemblies and conventions in remote areas. In Mozambique and Ghana, the funds were used to upgrade aiid improve many properties that fa¢ililate worship and Bible education. Additionally, funds were utilised for relief efforts, including the procurement and distribution of food provisions to individuals in need. In Malawi. the receiving entity oversaw the reconstrnction and major renovation of 185 homes that were destroyed or damaged by natural disasters such as Cyclone Freddy as well as distributing relief supplies. They also completed the constNclion of 40 new places of worship and 5 major renovations of Assembly Halls. The above are just a few examples. Similar activilies look place in many other countries which the Socieiy assists. Charitable aetivlties - Bufildfing places of Ivorshlp The Society completed 6 new construciion projects, 22 major renovation projects. 35 minor renovation projects and purchased 2 properties in the United Kingdom. One especially notable project was the constructAon of a Kingdom Hall in the Caithness area of Scoiland which will provide a place of worship for a remote community. Charitable a¢tiTrryties - Providing services to full-time ministers The Society has a long history of charitable business activity, therefore is well placed to cany out a variety of activities when a need arises. It cares for a small commissary and car garage at the headquarters of Jehovah's Wilne*ses 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 ofthis activity comes from the transport experience and supplier network built up by the Society. This makes vehicle8 available which can be used by ministers for their religious activity. All of the above activities have been Carried out successfully during the year. Watch Tower Bible and Tract Society of Britain Report of the Trustees for the Year Ended 31st August 2024 STRATEGIC REPORT Achievement and performance Internal Controls To assist the Society in achieving ils objectives, appropriate internal controls have been established. These ensure that the monthly financial rryorts accurately represent all Irdnsactions, provide reasonable assurance that finances are being used for their intended purpose. and verAfy that proper controls and pro¢edllres are in place, and adhered to. Section 172(1) statement The board of trustees tAkes into account the likely consequences of long-terni decisions; build relationships with stakeholders. understand the importance of engaging with our volunteers. understand the impact of our operations on the communities within which we operat¢; and attribute importance to behaving as a responsible organisation. The board of trustees consider, both individually and together, that thmugh their stralegic plaTming and decision making, that they have acted in the way they consider, in good faiih. would be most likely to promole the success of the charity for the benefit of its Sthkeholders as a whole (having regard to the slakeholders and matters set out in s172{1)(a-Q of the Act) in the decisio￿$ laken during the year ended 31 Aug￿￿1 2024. Throughout Ihe Injsiees, report examples are given where the trustees continue to exercise their duties with regard lo matters related to Seciion 172. For instance, in the public benefit Sectio￿ Ihe trustees confirn) that they have taken into regard the impaci of the charity's operntions on the communily. As the board of trustees, our intention is lo behave responsibly and ensure that managen]ent operate the charity in a responsible manner, operating within the high standards of business conduct and good governance expected for a charity such as ours, and in doing so, will contribute to the delivery of our objectives and aims. Financial review Financial position The Society showed a sU￿lUS of £19 million on the Statement of Financial Activities (SOFA) at the 31 st August 2024. Further inforniation is described in the Re8erves Policy and 'A&sisting Entities with Similar Aims and Objectives Overtseas, se¢lion of this report. The aims and objectives of the SoLlety are in no way financial, therefore rnonitoring of specific financial targets is nol paramount. The trustees are pleased thai they have been able lo hold fimds effectively and respond to worldwide needs as they arise. The Societys basic financial aims are to mainlain a strong balance sheet, to preserve its purchasing power and to maintain its abilily to respond quickly to worldwide and local needs that may arise. Principal funding sources The Society currently ha5 two funding Sources, one of them being the construction of n¢w facilitics or places of worship. which is invoiced at cost to other charities with similar aims and obj¢¢tiv¢s. The Society relies lo a large extent on voluntary donations to support ils work. and has a consistent income stream through regular donations and legacies re¢eived. To support the overseats donations paid out. the Society also has arrangements with other global enlilies with similar aill￿ and objectives, to receive incoming donations. These fLmds arrive when said entities have met their local needs. This allows the Society lo pool the funds in banking insti￿tiO￿$ in Britain, ready and able lo respond io worldwide needs. The SOFA COnf￿mS thal this spending occurred successfully during the year. The trustees are confident that the Socieiy is in a strong financial position as demonstrated by the attached financial statements. Watch Tower Bjible and Tract Society of Britain Reporl of the Trustees for the Year Ended 31st August 2024 STRATEGIC REPORT Finaneial review Investment policy and objectives The memorandum and articles give power to invest funds" in any lawful manner having full regard to the suitability of thc investments. the need for diversificatio￿ and to be a socially responsible investor having due consideration for the belief,4 of Jehovah's Witnesses. The objective of our investnlenl policy is to balance the frjllowing issues: preserve the purchasing power, provide adequale liquidity, and io give consistent long-terni returns. After adjusting for inflowloutflows, the portfolio perfornlance was 5.1 OO/o, Wlth an inflation rate of1.7010 in the year. The investmenl portfolio held 99.3 % in diversified liquid assets. The trustees continue to see the wisdom in holdlng lo the current strategy favouring portfolio diversification both by asset class and currency exposure, having adequate liquidity in investment quality. Reserves pollcy At the year-end reserves, not Ancluding fixed assets, and social investments. stood at £221 million. All funds are unrestricted. The reserves poltcy of the Society is to hold approximately 12 months running expenditure, as well as an appmpriate amount for each country it as%ist8. This would allow the Society to continue with regular expenditure, and to respond to disasters or other unexpected needs ihat could arise in multiple countries ai one time. World events show this to be a very prndcnt 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 thnds are therefore well ulilised until ihey 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 alld 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 aff¢¢t 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. Gofing eoneern The tnjstees are currei)tly of the opinion that the Society is not exposed to a potential lack of going concern as they regularly monitor the financial pogition. Watch Tower Bible and Tract Society of Britain Report of the Trustees for the Year Ended 31st August 2024 STRATEGIC REPORT Financial reviejv Environmental Performance The Society gives close attention to the enviroJ)menlal impact of its construclioll and Maintenance activities. Maiters considered include.. unused materials, constrnction waste management, renewable energy sources, water management and reduction of travel limes for volunteers working on projects. Conservation Surveys are commissioned as necessary. The Society's Environmental Policy reflects the cornmitment to establish an Environmental Management System to monitor and control ils environmental aspects. to assess and regularly re-assess the environmental effecls of its a¢livilies' io conduct its activitie5 in a manner that is sensitive to the needs and concerns of the surrounding inhabitants and environment. to integrate environmental issues into decision making. lo reduce or elirninate pollution and nuisance- lo minimise energy waste and materia15,' to protect biodiversity and ecosYsten￿. lo promote the use of sustainable, recyclable and renewable materials; and to educate and irain volunteers in Ihe use of environmentally conscious practices. Notably during 2024 the standard Kingdom Hall Design has been adjusted to include options for solar PV insttllation, air SOUTce heat pump.4 and building management systems (BMS). These systems have been implemented on a nunjber of projecLS. The above inforniation enables the truslees io report strong environmental perf0m￿nCe for the year. It is in hamiony wilh its overall aims, that the Society has successfully cared for the envlronment wherever it is operating. Watch Tower Bible and Tract Society of Britain Report of tbe Trustees for the Year Ended 31st August 2024 STRATEGIC REPORT Principal risks and uncertainties Formal reviews have taken place regarding the major risks to which the Society is cxposed. Strategic safeguards are in place to reduce the irnpact of those risks as far as possible. The Risk Register wa% updated most recently in August 2023. The ptinLipal risks and uncertainties facing thc Socicty aFe: failure to comply with legal requirements on health and safety, fire, environment, waste; disabter in the construction or Tnaintenance of place8 of worship. The Society has limited exposure to pricc risK eiedit risk, Itquidity risk and cash flow risk, due to the nature of its haritable activities. Failure to com I with le Ire uir¢menls. The Trnsiees re¢ognise the Critical importance of adhering to all legal, planning, and building control requirements. To mitigate the risk of non-compliance, the following measures have been implemented.. Regular Training and Updates: Volunleers who assist in the relevant areas of worK receive ongoing training on legal requirements and updates to ensure they are well-infomied and compliant. Robust Monitoring Systems.. Monitoring systems are in place to track compliance Thryth all applicable laws and regulations. Expert Consultation.. Legal and regulatory experts are consulted as required to review and advise on compliance mallers. Clear Documentation.. All procedures and compliance requirements are clearly documented and accessible to all relevant volunteers. By implementtllg these measures, the Tn)slees are confident that the risk of non-compliance is effectively managed and minimised. Disaster in construction activities. A comprchensive health and safety file is prepared for each project and managed by an on-site managemenl leam. Site safety audit visils are made twice annually to ihe onsite teams. Additionally.. each project mandates a weekly on-site safety audit. All reports are centrally reviewed by dedicated teams to identify and implement necessary adjustments. Incidents ocCU￿1ng on site are reviewed monihly to ensure that lessons Learned are applied across all operational areas. Conslruction sites are nm consistent with Construction Industry Training Board Site Safety qualifications. Strict compliance with building regulations is ensured and experts are fully utilised to maintain the highest standaids. Construction volunteers attend safety and planning seminars. Daily health and safety meetings are conducted on-site for each project. Additionally, an accident and near-miss reporting system is operational on-stte to ensure continuou$ 88fely monitoring and improvement. Documented instructions are adhered to by the on-site management teams. Relevant written Materials are provided to assist them in maintaining health and safety slandards. The Trustees are confident that the aforementioned safely procedures and controls effectively miligale the likelihood of a serious risk materialising. Statutory inquiry The Trnslees 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 Ihe important charitable activity of Watch Tower Bible and Tract Society of Britain, The regulatory alert on the Charity Commission's website should be removed by August 4, 2025. Watch Tower Bible and Tract Society of Britain Report of the Trnstees for the Year Ended 31st August 2024 STRATEGIC REPORT Future plans The Society wishes lo continue providing material and financial assistance to legal entities with similar aims and objeclives in several countries. Additionally. it intends Io Gomplete more building projects. ranging from minor renovations to major developmcnts. &8 il continues to provide places of worship tor beneftciaries. We have invested in a new social investment which aims to provide access to investment and paymellt servic&s for more than 150 charllable entities worldwide. STRUCTURE, GOVERNANCE AND MANAGEMLNT Governing document The charity, a UK company limited by guarantee, is controlled by ils governing document, the rnemoiandum and articles of the company dated 25th October 1999. as amended by special resolulions dated 19th ApTiI 2000, 21 st November 2013, 13th April 2016, and 8th April 2022. Organisational structure The Society is constituted as a company limited by guaranlee. 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 £ I, for the debts and liabilities contracted before they ceased to be a member. Recrultment and appointment, induction and training of new trustees The recruilmenl and induction of new trustees is a￿anged as follows: The trustees may at any lime co-opt any person duly qualified to be appointed as a trustee to fill a va¢an¢y 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 ttustees are given training in both operational and financial matters with the aid of the existing trustees and relevant documentation and guidance provided by the CharAty Commission. Trnstees are gFiven appTOPTiate Charity Commission publication5 and Iraining 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 alTecting ihe Society is introduced. The trnstecs meet togctheT each month. and are in regular contact. Wider netTrvork The Socicty works closely with many entities with similar and objectives around ihe world. One example ts the International Bible Students Association (IBSA). During thL year IBSA provided the Society with serviced facilities foT its eharilable activities. Cooperation with all of these entities facilitdtes an efficienl and economic use of the Society's resources. This cooperation also helps the Society to meet its 6tat¢d aitns and objeclives. The Charity also considers policies, procedures and guidelines used by entities of Jehovah's Witnesses globally wilh similar aims and obje¢lives, and, where applicable, seeks to implement them. Engagement wlth 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 obtsining value for money and making the best use of donated funds. Watch Tower Bible and Tract Society of Britain Report of the Trustees for the Year Ended 31st August 2024 REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number 03858051 (England and Wales) ReElStered Charity number 1077961 Registered offiee l Kingdom Way West Hanningfield Chelm8foTd CM2 8FW Trustees PPBell RLL A J Llewellyn G Maraia (resigned 31.10.24) S J Morice J Rastall (resigned 31.1.24) S C Docherty (resigned 16.8.24) L Thomas {appointed 1.2.24} J B Fairall (appointed l.11.24) L S Samuels (appointed 16.8.24) Auditors Xeinadin Audit Ltd CharteTed Accountants and Statutory Auditor Becket House 36 Old Jewry London EC2R 8DD Bankers Branch Address: 126 Station Road Edgware London HA8 7RY Watch Tower Bible and Tract Society of Britain Report of the Trustees for the Year Ended 31st August 2024 STREAMLINED EIYERGY AND CARBON REPORTING Greenhouse Gas Emissions, Energy Consumption & Energy Efficiency GHG emissions and energy use data for period I September 2023 to 31 August 2024 Current reporting year 2023-2024 tC02e kwh Comparison reporting y&ar 2022-2023 IC02e kwh ntity of energy consumed resulting from activities or which the com ny is rLS onsiblc missions from combustion of as Isco missions from combustit>n nt fucl for transport ses Sco l ) (standard dicscl) missions from urchased electricil (Sco oial oss tCO2e based on above 539,525 468,439 119 103 2) 123 105 Intensity ratio: The intensity measurement of tC02e/M2 has been selected and is given for energy consumption from activity connected with its registered office and neighbouring properties in Chelmsford and separately for energy consumption in rejalion to ¢onstrnclion or renovation projecLs. 2024 0.0028 2023 0.0019 02clm in relation to Chelmsford ro rties CO2eJm in relation lo constNction or renovation o ects com l¢t¢d in the riod 0.0029 0.0034 Methodology: This report has been prepared in line with the Department for Business, Energy & Industrial Strategy (BEIS) March 2019 'Environmental Reporting Guidelines: Including streamlined energy and cart)on reporting guidance,. The carbon figures have been Calculated using the BEIS 2024 and 2023 carbon conversion factOT% 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 tliat l OOO/o of emissions from operations over which the Society has operational control have been reported. Energy Efficlleney Action Taken: There were no additional measures taken to increase the Society's energy efficiency during the period covered by this report. io Watch Tower Bible and Traet Society of Britain Report of the Trustees for the Year Ended 315t August 2024 STA TEMENT OF TRUSTEES, RESPONSIBILITIES The trustees (who are also the directors of the Society for the pU￿oseS 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 Sthndards (United Kingdom Generally A¢¢epted Accounting Practice), including Financial Reportiiig Slandard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" Cornpany law requires the trustees to prepare financial slalements for each financial year which give a trne and fair view of the %tate of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitsble company for that period. In preparing those financial sLqtemenls, the trustees are required to Select suitable accounting policies and apply them consistently; Observe the methods and principles in the Charity SORTr. Make judgements and eslimales that are reasonable and prndeiit. State whether applicable accounting standards have been followed, subject lo any material departures disclosed and explained in the financial statements. Prepare the financial slalemenls on the going concern basis, unless it is inappropriate to presurne that the Charitsble company will continue in business. The trustees are responsible for keeping proper accounting records, which disclose with reasonable a¢wracy 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. Tliey are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable sieps for the prevention and detection of fraud and oiher itregularilies. In so far as the trustees are aware.. There AS no relevant audit inforniation of which the charitable company's auditors are unaware- and The trustees have taken all steps that they ought io have taken lo make Iheftnselves aware of any relevant audil inforn]ation and to establish that the auditors are aware of that infornialion. Report of the trustees, incotporaiing a strategic report, approved by order of the board of trustees. as the company directors, for our audil work, for this report, or for the opinions we have fonned. Nicholas Hume FCA (Senior Statutory Audilor) for and on behalf of Xeinadin Audit Ltd Chartered Accountants and Statutory AuditOT B￿k¢t House 36 Old Jewry London EC2R 8DD Date:..... 15 Watch Tower Bible and Tract Society of Britain Statement of Financial Activities (Incorporating an Income and Expenditure Accoullt) for Ihe Year Ellded 31st August 2024 2024 2023 Unrestricted funds Un￿￿trIcted funds Notes INCOME AND FIYDOWMENTS FROM Donations and legacies 114,043,000 96,298,179 Charitable actlvltles Design and build of places of worship 3,079,231 324,654 Investment income Other income 3,325,096 206 053 3,003,746 1272781 Total 120,653,380 100,899,360 EXPENDITURE ON Charitable activitles Assisting Other Entities with similar aims and objectives Design and build of places ofworsbip Providing services foi full-time ministers 103,171,645 7,370.419 533,537 128,457,573 4,675,203 713273 Total 111,075,601 133 846 049 Net gainsl(losses) on inveslments 9 079,116 3 291,070) NET L¥COMEI{EXPENDITURE) 18,656,895 (36,237,759) RECONCILIA TION OF FUNDS Total fijnds brought forward 214,211,184 250.448,943 TOTAL FUNDS CARRIED FORWARD 232,868,079 214211,184 The not&q forn) part of these fllmncial staternent5 16 Watch Tower Bible and Tract Society of Britain Balance Sheet 31st August 2024 2024 Unrestricted 2023 Unrestiicted funds Notes FIXED ASSETS Tangible assets Investments Investments Social investments io 11,883,686 1,687,914 221,615,605 207,082.252 460,215 460,215 12 233,959,506 209,230,381 CURRENT ASSETS Stocks Debtors Cash at bank and ID hand 13 14 2.843,767 4.250,414 621.390 3.877.877 1.453.204 8,777,478 7,715,571 14.108.559 CREDITORS Amount5 falling due within one year 15 (1,816.442) (1.346,193) NET CURRENT ASSETS 5,899,129 12,762 366 TOTAL ASSETS LESS CURRENT LIABILITJES 239.858,635 221,992,747 CREDITORS Amounts falling due after more than one year 16 (3,916,244) (4,445,130) PROVISIOIYS FOR LIABILITIES Is (3,074,312) (3.336,433) NET ASSETS 232,868,079 214 211.184 The noies forni part of these financial Stalej￿entS 17 Watch Tower Bible and Tract Society of Britain Balance Sheet - continued 315t August 2024 FUNDS Unrestricted funds.. General Fund 19 232,868,079 214.211.184 TOTAL FUNDS 232.868,079 214 211.184 The financial slalemenls were approved by the Board of Trustees and authorised for issue on .... and were signed on its behalf by: Trnstee A J Llewellyn - Trustee The noies torni part Df Ih¢se fJnanLial slaltmtnls 18 Watch Tower Bible and Tract Society of Britain Cash Flow Statement for the Year Ended 31st August 2024 2024 2023 Notes Cash floivs from operating actlvltfies Cash generated from operations 21 6,382,746 44,623,941) Net cash provided by/(used in) operating aclivities 6,382,746 {44,623.941) Cash flows from investing activities Purchase of tangible fixed assets Purchase of fixed asset Ènvestments Sale of tangible fixed assets Sale of fixed asset investments Interest received (10,280,011) (161.549,860) 97,126 154.622,012 3,096,104 (84,617) (94,822,481) 302,324 137,261,660 2,802,987 Net cash {used in)/provided by investing activities 14,014,629) 45,459,873 Cash nows from financlng actlvltles Loans advanced by depositors Loans repaid to depositors on 51.062 (575,267) 69,906 462.548 Net cash used in financing activilies (524,205) 392.642) Clkange ill eash and eash equivalents in the reporting period Cash and eash equivalents At the beginning of the reporting period (8.156.088) 443.290 8.777.478 8,334,188 Cash and cash eqiiivalents at the end of the reporting period 621,390 8,777.478 The noies forni parf of these financial stalejnenls Ig Watch Tower Bible and Tract Society of Britain Notes to the Financial Statements for the Year Ended 31st August 2024 ACCOUNTING POLICIES Basis of preparing the flnancial statements ThL financial %tatements of the chaTltable company. a company limited by guarantee registered in England and Wales and in Scotland, which is a public bentfit entity under FRS102, have been prepared in accordance with applicablc charity and company law, namcly the Charities SORP (FRS102) 'Accounting and Reporting by Charities: Statement of Recommended Prdctice applicable to charities preparing their accounts in accoTdance with the Financial Reporting Standard applicable in the UK and Republic Df Ireland (FRS102) (effective l %t January 2019),, Financial Reporting Standard 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland, (effective l January 2019), the Companies Act 2006 and the Charities Act 2011. The financial statements have been prepared under the historical cost convenlion or transaction value, unless stated in the relevant a¢¢ounting policy note{s). All amounts are stated in pounds sterlingy and rounded to the nearest whole number. Critical accounting judgcments alld key sources of estimation uncertainty The preparation of tlie financial statements requires judgements, cstimations and assumptions to be made that affect the reported value of assets, liabilities, income and expenditure. The nature of estimation and judgement meanb thal actual outcomes Could differ from expectation. A significant area of estimation and judgement is when support costs have been allo¢ated to activity on a basis consistent with their use of resources. Further estimations and judgement are investrnent valuations at market value as described in note I l and conditional donations provision as described at note 18. Anoiher key estimate is the rale of deprecialion. The trustees are of the opinion that the rates applied to the financial statements are appropriate. Ineome All income, whether in the forn] of donations or legacies is recognised in the Statement of Financial Activities once the Society has entitlement to the fullds, it is probable that the income will be received. and the amount can be measured reliably. Donations in the forn] of assels are included at the net book value on the dale of the gift. For legacies, entitl¢ment is taken as the earlier of the date on which either- the Society is aware thai probate I been granted, the estate has been finalised and notification has been ￿ade by the executor(s) to ihe Trust that a distribution will be made, or when a distribulion 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 rnake a dislribulion. Income from charitable activities also includes the value of seryices, excluding Value Added Tax, provided at Cost to otlier charitable bodies during ihe period. The completion stage of building work performed ovcr long- terni contracts is verified by qualified Individuals and invoiced accordingly al 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 Ihat a transfer of economic benefits will be required in setilenienL and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings thai aggregale all costs related to the category. Where costs cannot be directly allributed 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. 20 Watch Tower Bible and Tract Society of Britain Notes to the Financial Statements - continued for the Year Ended 31st August 2024 ACCOUN"riNc 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. Allocallon and apportionment of costs Where a cost is Ancurred for the purpose of directly achieving one of the charitable aims it is allo¢at¢d 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 Rs apportioned to the activity based on the proportton of direct costs it incurs. Tangiblc fixed assets Fixed ab5ets are valued at cost le.ss deprecialion and impainnent charges. Assets costing less than £3.000 are not apitali.sed. Depreciation 18 provided at the following annual rates in order to MTite each asset down to its residual value over its estimated usefiLI life: Freehold land Buildings Plant and machinery Motor vehicles Fixtures and fittings Not depreciatsd 20/0 on cost Impairnienl 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 ftnanclal return is incidental. The investment is held at cost less impairnienl, as fair value cannot be measured reliably. Fixed Asset Investments Investments are a fonn of basic financial instrument and are initially recognised at their transaction value and subsequently measured al their fair value as ai the balance sheet dale using the Glosing quoted market price. The Sialemenl of Financial Activities includes the net gains and losses arising on revaluation and disposals ihroughoul the year The majority of fixed asset investments are bonds, held in UK sterling or other trdded currencies. They have been valued at the appropriate exchange rate at the year-end. Although they are liquid investments, Ihe nature of the portfolio is long terni. A far smaller portion of the investments consists of various funds and derivatives managed by professional firnis and banks. The valuations are based on the external fund managers, estirnates of the underlying assets of the investment vehicle. Financial Instruments In addition to the fixed asset investmen18 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 ai 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 proFrt)rtion of fixed and variable overheads. 21 Watch Tower Bible and Tract Society of Britain Notes to the Financial Statements - continued for the Year Ended 31st August 2024 ACCOUNTING POLICIES - continued Stoeks and long-term contracts Long terni contracts are assessed on a contraci by conlract basis and reflected in the statement of financial aclivities by recording turnover and related cosls as contract activity progresses. Turnover 1.% ascertained in a manner appropriate to the stage of completion of the contract. Taxation The charity is ¢xempt from corporation tax on its charitable activities. Fund accounting UnrestrÉcted funds can be used in accordance with the charitable objectives at the discretion of the trustees. Foreign exchange gains and losses Foreign CUTrency balances have been translated at the prevailing rate on the balance sheet date. Income and expenditure.% during the year have been translated al the prevailing rate on the day of the transaction. Gains and losses arise when forei¥n ¢urren¢y a8sels change in value between their purchase and the balance sheet date. Donated goods Donated goods are recognised as income when the Society has control over the item: the receipt of economic benefit from the use by the Society of the iiem 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 Tecognised at cost. Depostts The Society had an arrangement whereby individuals could deposit funds so that the Society could benefit, on the understanding that these fijnds could be requested back whenever ihe depositor wishes. Deposits repayable on demand are Classified as falling due within one year. This a￿angernent was closed to new deposits in 2015. Experience shows that only a small percentage of deposils (approximately l O /0) will be called upon in any one year. Therefore, 900/0 of these amounts held are recognised as falling due after one year, Deposits are still accepted from congregations of Jehovah's Wilnesses. 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 relurned, but pntdenily the charity provides for Iwenly-five percent. Other recognised gain5 and Iosses These Comprise unrealised and realised gains and losses on investments. Unreali8ed gains and losses represent the difference between the market value brought fonvard (or ¢ost. for assets bought within this financial year) and the market value at the balance sheet date. Realised gain.s and losses represent the difference between sales proceeds and market value brought forward (or cost, for assets bought within this fmancial year.) Realised and unrealised investment gains and losse8 are combined in the Statement of Financial Activities. Irreeoverable VAT Irrecoverdble VAT is included in the relevanl 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 wheii receivable and the amount can be measured reliably by the Society, which is nornially upon notification of the int¢￿st paid or payable by the Bank. Debtors Debtors are re¢ognised at the total amount due to the Society. Prepayments are valued at the amount prepaid net of any trade discounts due. Watch Tower Bible and Tract Society of Britain Notes to the Financial Statements - continued for Ihe Year Ended 31st August 2024 ACCOUNTING POLICIES - continued 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. Credfitors 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 norn]ally recognised at their settlement ainount after allowAng for any trade dI￿ountS due. Going Coneern The Trustees consider the Society a going concern and have no material uncertainties in this regard. A 8lrong balance sheet POSltion and Consistent income base contribute lo this conclusion. Volunteers Jndividuals voluntarily assist with all of the activities of the Society. The role of these individuals is fundamentsl to the Society carrying out ils work. as the Society does not have a salaried workforce. DONATIONS AND LEGACIES 2024 2023 Donations of cash and goods Gift aid Legacies 112,471,793 160,508 1,410,699 92,957,674 171,531 3.168,974 114,043,000 96.298,179 INVESTMLNT INCOME 2024 2023 Rents received Deposit account interest Interest receivable 120,903 131,580 3,072,613 84,045 2,919.701 3 325 096 3,003,746 INCOME FROM CHARITABLE ACTIVITIES 2024 2023 Design and build of places Total a￿)vItieS WOTship Income from construction of places of worship 3,079,231 324,654 23 Watch Tower Bible and Tract Society of BritaAn Notes to the Fin¥dncial Statements - continued for the Year Ended 31st August 2024 OTHER INCOME 2024 2023 Gain on sale of tangible fixed assets Foreign Currency gains Other income 87,839 67.667 50.547 54,814 1,116,813 101,154 206,053 1,272,781 CHARITABLL ACTIVITIES COSTS Support cost% (gee note 7) D]r￿t C.0st5 Totals Assisting Other Enlilies with similar aims and objectives Design and build of places of worship Providing services for full-time ministers 102,986,250 7,364,368 185,395 6,051 103,171,645 7,370,419 533.099 438 533 537 110.883,717 191884 111,075.601 Comparatives for 2023 Support co.sts (see nc?tc 71 Direct Costs Totsls Assisting Other Enlilies with similar aims and objectives Design and build of places of worship Providing services for full-time ministers 128,212,366 4,670,461 712,484 245,207 4,742 789 128,457,573 4,675,203 713.273 133.595,311 250,738 133.846.049 SUPPORT COSTS Govemance Losls Finance Totals Assisting Other Entities with similar aims and objectives Design and build of places of worship Providing services for full-time miiiisters 59,025 856 62 126,370 5,195 376 185,395 6,051 438 59,943 131,941 191,884 24 Watch Toiyer Bible and Tract Society of Britain Notes to the Financial Statements - continued for the Year Ended 31st August 2024 SUPPORT COSTS - continued Support CO8ts, have been allocated to th¢ appropriate activity, as shown above, in line with the charity's accounting policies. Comparatlves for 2023 Governance costs Finance Other Totals Assisting Other Entities with similar aims and objectives Design and build of places of worship Providing services for full-time minlsters 69.343 751 125 3,455 115 19 172,409 245,207 3,876 4,742 645 789 70,219 3,589 176,930 250,738 NET ILYCOMEI(EXPENDITURE) Nel income/(expenditure) is stated after charging/(crediting)'. 2024 2023 Auditors, remuneration Depreciation - owT]ed assets Surplus on disposal of fjxed assets 57,600 73.535 86,422) 69.240 64,306 46.405) TRUSTEES, REMUNERATION AND BENEFITS The ttvstees 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 conditional donation provision contains an amount of £3.500 relating to a trustee. Trustees, expenses No expenses were reimbursed lo trustees during the year. 25 Watch Tower Bible and Tract Society of Britain Notes to the Financial Ststements - continued for the Year Ended 31st August 2024 io. TANGIBLE FIXED ASSETS Fixtures and fittings Freehold property Plant and iknachinery Motor vehicle Totals COST Al I st September 2023 Additions Dispo￿15 1,632,789 10,136,426 338,247 14,996 122,985) 29,286 440,132 128,589 37,712) 2,440,454 10,280,011 67,452) At 3 1st August 2024 11769215 330.258 22,531 531,009 12.653.013 DEPRECIATION At Isi September 2023 Charge for year Eliminated on disposal 249,312 37,211 163.471 20,097 20 687) 28,877 310,880 16,227 (29,306) 752,540 73,535 56 748) 6.755) At 31st Allg￿$t 2024 286,523 162,881 297,801 769,327 NET BOOK VALUE At 3181 August 2024 11,482,692 167,377 409 233 208 11,883,686 At 31st August 2023 1,383,477 174,776 409 129,252 1,687,914 Included in freehold property is land which is not depreciated with a value of 2024: £9,692,634 (2023- £466,711). ii. FIXED ASSET INVESTMENTS Listed debt s¢¢uritie5 Other Investments Toials MARKET VALUE Al I st September 2023 Additions Disposals Exchange differences and realise(Vunrealised gainlloss ,715,438 205,366,814 207,082252 E8,395 161,874,081 161,892,476 (60.566) (154.761,877) (154,822,443) 64,306} 7,527,626 7 463 320 At 3 1st August 2024 1608 961 220 006.644 221615,605 NET BOOK VALUE At 31 st August 2024 1,608,961 220,006,644 221.615.605 At 31st August 2023 1,715,438 205,366,814 207.082.252 Approximately £9 million is shown on tlle SOFA as a net gain on investments. 26 Watch Tower Bible and Tract Society of Britain Notes to the Financial Statements - conlinued for the Year Ended 31st August 2024 12. SOCIAL INVESTMENTS Programme rclated inve8tm¢nt5 equity MARKET VALUE At I sl September 2023 and 3 1st August 2024 460,215 NET BOOK VALUE At 3 1st August 2024 460,215 At 3 Isl August 2023 460.215 This represents an investment in a project which helps Jehovah's Witnesse8 around the world in finding places to meet and carry out iheir worship. The In￿leeS are very confident in its perforniance and that il will continue to advance the charitable aims of the Society. 13. STOCKS 2024 2023 Raw mat¢rials Work-in-progr¢ss 48,949 2,794 818 29,268 3,848,609 2.843,767 3,877,877 14. DEBTORS: AMOUNTS FALLJNG DUE WITHIN OIYE YEAR 2024 2023 Trade debtors Other debtors Prepayments and accrued ittcome 2,127,009 1,282,927 840,478 11,654 58.384 1.383,166 4,250,414 1,453,204 27 Watch Tower Bible and Tract Society of Britain Notes to the Financial Statements - continued for the Year Ended 31st August 2024 15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2024 2023 Deposits {see note 17) Trade creditors Other creditors Accrued expenses 435,138 1.268,895 493.903 756.840 1,896 112.409 1816.442 1,346 193 Deposits comprise monies received from individuals. eircuits and congregations and held with Ihe Society until they are requested back. 16. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR 2024 2023 Deposits (see note 17} 3.916.244 4,445.130 17. DEPOSITS No maturity analysis is provided for these deposits due to their nature, as described in the above notes. 18. PROVJSIONS FOR LIABILITIES 2024 2023 Conditional doiiations 3.074,312 3 336 433 Provisi4)n ai Isr September 2023 Provision released on conditional donations converted into donations Provision releLsed on conditional donations repaid 3,336,433 (123.996) 138 125) Provision at 31 st August 2024 3,074 312 Conditional donations are donations made by indiN'iduals on the understanding that they may be recalled should the donor require such funds in the fvture. The donor retains an option over their donation until they die or WTite 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 irusiees have therefore prudently made a provision for 25 /0 of the balance of conditional donations as shown above, The remaining £9,222,935 is a contingent liability. 28 Watch Tower Bible and Tract Society of Britain Notes to the Financial Statements - continued for the Year Ended 31st August 2024 19. MOVEMENT IN FUNDS Net movement in funds At 31.8.24 At 1.9.23 Unrestrieted funds General Fund 214,211,184 18,656,895 232,868,079 TOTAL FUNDS 214.211,184 18,656,895 232,868 079 Net movement in funds, included in the above are as follows.. Incotning Tcsour¢¢s Resources ¢xpended Gains and losses Movement iii funds Unrestricted funds Genctal Fund 120.653.380 (111,075,601) 9,079,116 18.656.895 TOTAL FUNDS 120.653,380 (111,075,601} 9,079,116 18,656.895 Comparatives for movement in funds Net mov¢ment in fijnds At 31.8.23 At 1.9.22 Unrestrieted funds General Fund 250,448,943 {36,237,759) 214,211,184 TOTAL FUNDS 250,448,943 36,237,759) 214,211,184 Comparative net movement in funds, included in the above are as follows: Incoming resources Resources expended Gains and osses Movement in funds Unrestricted funds General Fund 100,899,360 (133,846,049) (3.291,070) (36,237,759) TOTAL FUNDS 3,291,070) 36.237.759) 29 Watch Tower Bible and Tract Society of Britain Notes to the Financial Statements - continued for the Year Ended 31st August 2024 19. MOVEMENT IN FUNDS - continued A current year 12 months and prior year 12 months combined position is as follows: Nct moveinent in funds At 31.8.24 At 1.9.22 Unrestricted funds General Fund 250.448,943 {17,580.864) 232,868,079 TOTAL FUNDS 250,448,943 17,580,864) 232,868,079 A Cu￿ent year 12 months and prior year 12 months combined net movement in funds, included in ihe above are as follow%.. InLoming resources Resources expended Gains and 10sS¢S Movejnent in funds Unrestricted funds General Fund 221,552,740 (244,921,650) 5,788,046 (17,580,864) TOTAL FUNDS 221,552.740 (244.921,650) 5,788,046 (17.580.864) 20. RELATED PARTY DISCLOSURES There were no related party transaclions for the year ended 3 Ist August 2024. 21. RECONCILIATION OF NET INCOMEI{EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES 2024 2023 Net incomel(expenditure) for the reporting period (as per the Stalement of Financial Activities) Adjustments for: Depreciation charges (Gain)Aosses on investments Profit on disposal of fixed assets Interest received Other non-cash donations received (Decrease)lincrease in provi8ions Accrued interc%1 movement DccreaseJ{incTease) in stocks Increase in debtors Increase/(decrease) in creditors 18,656,895 (36,237.759) 73,535 64,306 (7,368,488) 2,912,973 (86,422) (46,405) (3.096,104) (2.802,987) (63,445) (82,705) (262,121) (9,692) (237,018) (200.759) 1,034,110 (1,551.175) (2,797,210) (694.537) 529,014 5.975.201 Net cash provided byl(used in) operations 6,382.746 44,623,941) 30 Watch Tower Bible and Tract Society of Britain Notes to the Financial Statements - continued for the Year Ended 31st August 2024 22. ANALYSIS OF CHANGES IN NET FUNDSI(DEBT) - continued At 1.9.23 Cash flow At 31.8.24 Net eash Cash at bank and in hand 8,777.478 8.156.088 621,390 8,777,478 18.156 088) 621,390 Debt Debts falling due within l year Debts falling due after l year (493,903) (4,445,130) 58,765 528,886 (435,138) 3 916,244) 4,939,033) 587,651 4,351382 Total 3,838 445 17 568 437) 13,729,992 23. FINANCIAL INSTRUMENTS 2024 2023 Debt instruments at fafir value Listed debt securilies Other Investments 220,006,644 1.608 961 205.366,814 1.715,438 Total 221,615.605 207,082,252 24. EMPLOYEES The Society does not have any employees (2023: nil). 31