2022-12-31-accounts

HEBA The Heart of England Baptist Association ANNUAL REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2022 The Heart of England Baptist Association Registered Charity Number.. 1080529 Registered Company Number: 00238738 Registered Office: 480 Chestsr Road, Sutton Coldfield 873 5BP

THE HEART OF ENGLAND BAPTIST ASSOCIATION (A Company Limited by Guarantee) CONTENTS Page Trustees. Report Independent Auditors. Report 10-13 Statement of Financial Activities 14 Balance Sheet 15-16 Statement of Cash Rows 17 Notss to the Financial Ststements 18-45 Appendix l- Grants paid 46 Appendix 2- Properties held as custodian or holding Trustee 47 -50

THE HEART OF ENGLAND BAPTIST ASSOCIATION (A Company Limited by Guarantee) TRusfEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2022 The Trustees, who are dlrectors for the purposes of company law, are pleased to present the Annual Report and Financial Ststements of the charitable company for the year ended 31 December 2022, which are prepared to meet the requirements for a Director's Report and accounts for Companies Art PLsrposes. References to'HEBA' throughout this report refer to the Heart of England Baptisi Association. The financial statements a)rnply with the char￿leS Art 2011, the Companies Act 2006, the Artldes of Assodatlon and 'Accounting and Rerx)rbng by Charities: Ststernent of Recommended Prartice applicable to d)arities preparing thelr accounts in accordan￿ with the Finanoal Reporting Stsndard applicable in the UK and Republlc of Ireland (FRS102).' Objectives and Activities The Objects of this charitable company are the a(fvan￿￿￿nt of the Chri5ban faith, parbcularly In the Heart of England and especially by the means of and in accordanTr with the principles of the Baptist denominati(x) as set ¢JJt for the tlme being in the Dedaration of Principle of The Baptist Uniw of Great Britsin (BUGB). The values espoused by the Trustee5 of the charitable company are Companionship, Generosity, Diversity, Learning and Innovation. These values are continually presented to churches for their encouragement and so that they understand the principles guiding the work of the d)aritsble company. The values are presented at events to which churches are invited, through the regular mailings to churches, through the work of the HEBA Offi￿ team and Regional Ministers and on the Trustees, social media outlets and channels. The prlncipal activities of the charltable company are the employment of a Regional Ministy and administrative 5tsff team and the organisation of a number of volunteers, working in groups or individually, to offer support and gvidance, training and finanaal resources to advan￿ the Chrtstian faith in a way which benefits Baptist churche5 and the communities they seNe. The charitsble company 15 Part of the family of Baptist organisation5 serving the needs of many of the Baptist churches in Great Britain, working particularly c105ely with the Bapt15t Union of Great Britsin IBUGB). The charity has a linked charity, the Heart of England Baptist AsSOClation Loan Fund {1080529-11 and the Trustees are also Trustees of the Umberslade ￿UrCh Endowment (255061) and Dirertors of the CST Corporate Trustee ￿mIted(lI4543I3). The charitable company aim5 to Co-operate with churthes directly and through working group5 by providing information and support and by passing appropriate resolutions to enable building development projeLts, including Sustainable Energy Funding. Many of these projerts are dIre(￿Y aimed at makn'ng churth building5 mre a￿ssIble and available to the local community. Assist churches and ministers that are seekn.ng new ministries through lJ)e Baptist National Settlement process. Assist individuals who are exploring a call to any Baptist ministry by signposting various routes to recognised Baptist mini5ty, interwewing candidate5, suppgrbng ministerial candidates ar￿ providing BUGB approved training for preachers and pastors. Make Safeguarding training avallable on a rolling programme, encouraging and enabling ministers and members of churches to receive training. This included the use of supported online training for part of the year. Provide Safeguarding support to churches when incidentslsuspectsd incidents arise. Mediats disagreements arising within churches or be￿een churches and their local community. Encourage the HEBA Grants Committee as it continues to seek creative ways of supporting churd)es In thetr rn1￿10n using Baptist Home Mission and Association funds. Ensure, through its Finan￿ Working Groupi responsible and effeLtive stewardship of the resouffts of the charitsble company. Encourage churches to support Baptist Home Mi55i0n arKI BMS World Mission through prayer, dirett partnership with mission personnel and financial giPG, $0 that the Gospel of Jesus Christ can continue to be shared in the UK and abroad. Co-operate with other Baptist organisations and other denominations where this supports the obSeds of the Association. Re￿1ve and consider reports from all Working Groups and the Regional Ministers, enabling charitsble company to maintain effective governance, induding receivTng reports on the stsff appraisals, budget proposals, safeguarding issues and other work with churd)es as appropriate. Page I

THE HEART OF ENGLAND BAPTIST ASSOCIATION (A Company Limited by Guarantee) TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 Support the stsff employed by the charitsble company through the provision of opproprlate training and supporL and provision of clear and effective stsfring and other policies. Seek appropriate and timely legal advi￿ on issues having a potentially wide-ranging effert wth a view to understsnding and, where possible, mitigating their risk. Continue to explore ways in which the Trustee Board can becorne even more effettive in governing the charftsble company and in their strategic planning. Publlc 8eneflt The Trustees, having regard to the Charity Commission s guidance document,'public benefit: running a charity (PB2)', continued to provlde public benefit by seeknng to advan￿ the Chrisban faith and pr￿Cb￿ in accordance with the objects of the charitable company. The Trustees sought to athieve this in several ways induding: encouraging churthe5 trj adopt robust safeguarding policies and practi￿ through the provlsion of training for church member5, ministers and pastors; keeping appropriats safeguarding records, including documents kept in long-term secure systems; acting to provide help and supp)rt to churd)es seeking to improve their own governance, projects or buildlngs. holding stsff accountsble for thelr support for churches seeknng to advan￿ the Christian frdith in thelr communities,. funding in partnership with other organI￿tiOnS - the continued provision of a Baptist minister for deaf and deafened people in Stsfford,. and encouraging churches and ministers through the annual Ministers, Conferen￿, theological refiection days, interaction with Regional Ministers and other 5tsff and themes pursued at all joint events, to engage effectively and serve their local communities. Achievements and Performance Having been given notice to leave their rented i)ffice space, the Trustees undertook a robust analysis of the needs of the charitable company, drew up criteria to cover these needs and undertcK>k a search for accommodation, wlth move being undertaken at the end of 2021. After renting the premises at 480 Chester Road, Sutton Coldfield for a few months, the Trustees completed the purchase of the property on l Juty 2022. using the funds for the sale of houses. They agreed that the Administration Team would work from the new Offi￿ each Wednesday and from home for the rest of the week and this has proved a productive form of hybrid worklng. This team, with the help of some committed volunteers, worked particularly hard during the move to the new premises, including advising on fjtting out the new space in a cost effective and attractive way¢ and the Trustees are gratefvl for their commitment to this projett which was undertaken alongside their other work. The Trustees support three Regional Ministers (RMS) in thelr work thrc4Jgh the provision of assistance in housing, in training and in permitting them to tske sabbatical leave. The Association's foundational value is'companlonshlp, and the Regional Ministers seek to embody thls in their work with churches and ministers. Included are regular engagements with church leadership teams, congregations and ministers, with the Regional Ministers supporting them generally and as they have sought new ministry or a change to ministry, and as they considered how to move foNard in their mission as the special rules relating to the coronavirus pandemic came to an end. They also helped churches with internal conflicts, offering mediation and comfort to members and ministers. Simon Jay was appointed to speclfically support and walk with the pioneers working in HEBA. The Trustee5 also o)ntinued to encourage online and in person training, meetings and cOnferer￿S, during the year, including a successful Women's Conference and a meetlng of the HEBA justi￿ Hub. They parbcularty encouraged the Disability Task Group during the year, as they sought to promote awareness around i55ue5 of disability justi￿ in order to enable full participation and equality for dlsabled people In our churches. The charitable company, through its Regional Mini5ter5, continued to support ecumenical work across the whole area of the Association, for example, all Rms serve on ecumenical bodies in the region during the year. The Trustees and staff team continued to SUPPOfL with ecumenical and Baptist partners, the ministry of Revd Susan Myatt, Baptist Page 2

THE HEART OF ENGLAND BAPTIsf ASSOCIATION (A Company Limited by Guarantee} TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 Minister Amongst the Deaf, financlalty and through prayer. A significant gatherlng was the first 'We5t Midland5 Summit, of regional leaders In Christian ministry and this was attended by the 3 Regional Ministers. During the year the Minlsterlal Re(x)gnition Group commended four people for tralnlng tr) become 'fully accredited Baptist ministerg and three people to train as'nationally recognised pastors,. Seven'newly accredited minister5, were intsryiewed and commended to the Baptist Union for transfer to the'fully accredited ministy, list. Two symposiums were held, one on 'Disability' and led by Martin Hobgen to reflect the JUS￿ee theme for 2022, and one on 'The Church Neeting, and led by the Regional Ministers. The Mlnlsters, Conference was held at the Hayes. Swanwick with Chrls Duffett speaktng on '] am who you say l am, and attended by 87 people over 48 hours. Each of the Regional Mlnisters are mernbers of National Baptist Groups and they along wlth other volunteers attended gatherings In person and on-line during the year. Two 'retired minister lunches, were held these were organised for HEBA by Rev Darren Smith, the mlnlster of Worcester Bapttst Churd). The charitable company continued to model an organisational ojlture which prioritises safeguarding through their encouragement and support of churches to provide a safe and trusted environment for all those they come into contart with, particularly children, young people and Adults at Risk. During 2022, the charitable company provlded Safeguarding training for 861 individuals from 62 churcheslorganisations at 29 Level 2 training events and 10 Level 3 training events, as well a5 76 online Question and Answer groups. Revd Duncan MacLean served as Trustee for Safeguarding and Mr Keith Baldwin continued to serve as Safeguardbng Offi￿r and also delivered training. The Trustees are grateful to all the volunteer trainers who provide ex￿lIent training to the churches of the ASSOCIa￿On. The charitsble companyi thr(xJgh its Grants Group, provided grants to 23 thurches and proierts, 4 grants to individuals and 7 grants to organisations (see appendix l). This Group consulted the BU Environmental Ne￿ork in drafting new terms for the HEBA Sustainability Grants which were agreed by the Finance Worknng Group. They further considered the budgetsry constraints of the knociation and the need to contratt the grant funds available to churches in future years. The work of the Grants Group is directly overseen by the Finance Group, which ensured that all funds were being held and spent appropriately. They reviewed budgets at each meeting and established a Budget Review Group during the year, whose work encouraged the Trustees to Start a fully review of the priorities and structure of the charitsble company. The Finan￿ Group supported efforts to recruit replacements for the FinanTr Manager and the Association Treasurer, who were both retiring. They offered 5UPPOrt to the staff team during the period when there was no Treasurer, including assisting the preparation of a letter to the member churches sent in November, which highlighted the deficit and need for cost efficiencies. They were pleased to welcome Mr Tom Russell to the team as Interim Finance Manager in September and have encouraged him in hi5 work. They were also pleased to acknowledge the start of the process of appcintment of a new Treasurer, Mrs Merry Otieno, who was affirmed as a Trustee in 2023. The charitsble company's book-keeping and account-production services to member churches continued, and Bt the end of the year had produced accounts for one church and was undertakn'ng book-keeping for three d)urthes. The Payroll Service offered to churches and projects also continued, and at the end of the year, payroll ServI￿S we being undertrdken for 60 churches/projects1102 individuals). The charitsble companyi through its Trust Working Group cfwG), gave consideration and practical assistan￿ to over 30 churches involved in building purthase. disposal and development; changing their legal strurture and amending their structure. It continued to offer support to churche5 With dilapidated burial ground5. The transcription of the Church trusts detsils into elethonic form was not completed during 2022 due to lack of capacity- TWG supported the Trustees in the process towards eviction of a tenant and sale of that property and in the purchase of the Association offi￿. A new volunteer was reauited to join the Group during the year and new Temis of Reference for the Group were drafted by TWG and adopted by the Trustees. Following advi￿ from the solicitor to the chartsble company, Mr Roger Wiliams of DWF, that he would be retiring, the TWG ethblished a tssk group to interview other Practi￿ and Page 3

THE HEART OF ENGLAND BAPTIST ASSOCIATION (A Company Limited by Guarantee) TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 recommend an appointment. Through a robust and interesting pro￿55, Shakespeare Martineau were appointed. The Trustees and Group are grateful to Roger his 20 years of Serv1￿ and that Soliotors from Shakespeare Martineau attend each meeting of the TWG as Roger Williams had. A memorial ceremony was led by Rev Adrian Arglle at Witton Cemetery to reinter the human remains from Freeman Street Baptist Church following their discovery in the construction of the HS2 ststion in Birmingham. The charitsble company completed the followlng of its plans for the year.. Moving the Association offi￿ and purchasing a propety: Undertaking training for staff and Trustees In data protecbon and revlewlng poliae5 and prO￿dureS in light of this training; Undertaking training for stsff and Tnjstees in equality, diverslty and inclusion and reviewtng wlicies procedures in light of this trainingi and Holding an in person AGM and adopting new Afacles of Assooation and Rules. Risk Review The charitsble company contlnued to review its Risk Management Matrix at least three times a year. The full migration of ￿ services to the cloud enabled skff to work effectively from ￿)me and also reduce(i the rlsk posed by having all bad( up recording on hardware. Signlflcant rfsks identified during the year were: The possibility of incidents or acodents In dllapldated burial grounds where the charitable company is holding Trustee rerrain5 an ongoing ￿n￿rn. Censure arising from a failu￿ to properfy Implement the requirements of the General Data Protecbon Regulations has been identified as a risk to the charitsble company. The charitsble company obtained training to help mitigate these risks. Having said that, one dats breach was reported to the Dats Protection Lead though a report to the ICO was not requi￿d. The risk of reputa￿onal damage to the Gospel, the charitsble company and the Baptist movement arising from a safeguardlng incldent In a church remains high and is a driving fartor behind the charitable compan￿5 investment in safeguardlng training for church ministers and members. One Serious Incldent Report was made tr) the Charty Commission during the year. Stsff turnover and inability to replace key 5tsff or volunteers. The Trustees adverbsed three times for repla￿ment Finan￿ Manager when Mr5 Sue Q)ate5 annoUn￿d her retirement. They were unable to appoint, but were grateful to God that Mr Tom Russell, a Baptist Church Treasurer, was willing to join the staff team during September on an interim ba515. The Trustees are grateful to Sue for the support she has given to Tom and her continued involvement in special projects on a volunteer basis. They are also grateful to the whole staff team for their hard work during periods of ill health of colleagues, which indicates the robuthess of the Trustees, systems in mitigation of this risk,. and The Trustees have committed to reducing the deficit in the accounts to zero. Financial Review During 2022 the overall funds of the Assoaation de￿eased by £486,970 to £2,706,317 (£3,193,287 in 2021) General fund income was £315,595. Expenditure totslled £469,159 resulting in a 1055 of £153,564. Net losses on investrnent assets totslled £368,377 reflecting the downward pressures in the finanaal markets durlng the year. A net gain of £72,660 resulting from a change in the agre&J pension defiat recovery plan was Induded. The General Fund at the year-end was £563,912. The Net Movement on Designated Funds was £19,836 exce55 of ex￿ndILUre over income. This was prirnarity due to the ongoing use of the Mission Development Fund for grants to thurch and other mlsslon projects. At the year end the totsl balan￿ of des¢gnated funds was £745,829. Page 4

THE HEART OF ENGLAND BAPTIST ASSOCIATION (A Company Limited by Guarantee) TRusfEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 Other income and expenditure in the Restricted Funds primarily relate to income and expendlture for the Retir Ministers and Missionaries Housing Fund and Atch Lench Baptist Trust expenditure for mlsslon. There have been no loans from the Heart of England Loan Fund. The net movement across the restritted funds was £17,853. At the year end balan￿S acros5 the restricted funds was £1,396,576. The Association is part of a very complex multi-employer defifteil benefit pers&on scheme comprlslng approximatety 1200 employer5. See Note 26 in the Financial Statements. Xnvestment powersi policy and performance The Trustees have appointed Redmayne Bendey as Investment Managers for the Association's Investment portfolio. The manager5 have discretionary powers to invest in line with the Investment Policy which is classed as medium risk and aims for moderate grovrth in income whilst at least maintsining capitsl values over the medlum to long term. Refletting the ethos of the Association, an ethical investsnent policy is in pla￿ to guide the investment manager. This f¢xuses on positive aspects such as good governance and gwd working prattl￿5 35 well as exdudirmj sectors whith do not fit with the Assoaatton s ethos. During the year, the portfolio retum (totsl return basis) decreased by 1.450/0, against the porthlio benchmark retum, which increased by 0.66%. The Associa￿On continued to maintsin substsntial balances on notice and term deposits, Most of these funds represent balances held on behalf of churches where minimal capitsl risk is important. Reserves policy The Trustees consider a reserve of one yearfs costs is required to ensure a managed exit from all exisknng agreements and contracts. One yearfs costs 15 the total general fijnd expenditure excluding one off events and induding one year of grant funding from the Association's own resources {£0.153m), where grants are expetted to be needed beyond the current year. This latter is to reflert commitsnents, often staff related. which have been entered into by grant reTriving churches. On this basis reseNes of £0.622m are required. Excluding fixed assets and restriLted funds the Assoaation's free reserves were negative at £0.216m. The reduLtion in cover of reseNes required was the result of the Trustees intentional strategy to reduce the reserves on a managed basis whilst ensuring capacity to generate sufficient funds in the future. However, the extent of the decrease was not ontscipatsd and was due to other extenuating events outslde of the Association's control including Significant reduction in income, inflationary c05t increases and unrealised 10s5e5 from movements in our investments portfolio. The Trustees are ath.vely seeknng to redress reserves to aceeptsble levels through the sales of properties, undertaking a remew of the future costs and strucbjre of the Association, cash levels and improved investment perf0mlan￿. Plans for future periods During 2023, the char(table company will seek to continue to fulfil its obj.etts in creative ways that will assist in the advancement of the Chrlstian faith and the enrichment of church and community life in the Heart of England. This will indude.. undertaking a review to establish the resonan￿ of the strategic priorities, values etc with the member churches Complete review of Terms of Reference of Working Group Focus on our core value of Companionship Continue working towards reducing the large budget deficit Board wruitment Further develop the Justice Hub, launch women's year of justi￿, develop young people's involvement Page 5

THE HEART OF ENGLAND BAPTIST ASSOCIATION {A Company Limited by Guarantee) TRusfEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 Update and implement communication strategy Help our churches better understand what it mears to be a Baptist church structure, Govemance, Management The charitable company Is govemed by Its Articles of ￿$S￿la￿on and Rules of 20 April 2022. The Objects of this charitable company are the advancement of the Christian faith, particularly in the Heart of England and especially by the means of and in accordance wlth the prinaples of the Baptist denomination as set out for the time being in the Declaration of Principle of The Baptlst Union of Great Brliain. Trustees, Interests No Trustee had any beneficial interest in the charltable company or in any contrart or arrangement of a material nature with the charitable company during the year under review. Declaratr"ons of Loyalty and Interest are required at the start of every meeting of Trustees and Working Groups and the Association Administrator also asks Truste&4 to update their written Dedaratk)ns of Loyalty and Inter&5t on an annual basis. RecNitmen¢ appointment, Indurtlon and trainin9 of Trustees The charitsble company Is run by its Board of Trustees who are also dirertors. They held five meetings during 2022. The Trustees use thelr Sknlls Audit in the prO￿sS of recruiting new members of the board. Trustees are recrurted through invitstions to member churches to nominate people whom they believe to be appropriate for the task. Nomlnees are sent copies of the d)aritable companfs Arttcles of Association and its Conflict of Loyalty and Interests policy and are asked to complete and sign the Declaration of Qualification to seNe as a Trustee. They usually have a meeting with the Moderator of the Board of Ttustees and are advised that appropriate checks will be undertaken to confirm that they are eligible to serye in this capacity. If, after this, they still wish trj serve, the churches of the Association are Invited to affirm the nominees by email or letter to the Administratorlcompany Secretary. On appointment they are invited to a formal iThJucbon meeting with the Administratorlcompany Secretsry who signposts essential documents available from the Charity Commission, Companies House and BUGB websites, as well as providing an overview of the activities of the charitable company. The Association Administrator who is also the Company Secretary assisted all Trustees by signposting documents and conferen￿5 to help them in their worL This indudes circulating information from the Charity Commission. Companies House, some third sertor organisations and the Churches, Legislation Advisory Service, and advising them of Seminars and training that they could attend. Page 6

THE HEART OF ENGLAND BAPTIST ASSOCIATION (A Company Limited by Guarantee) TRUSTEES, REPORT {CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 Related Partles The charitsble company is a member of the Baptist Union of Great Britain, paying a subscription to this charity. Funds from the Home Mission Fund, whlch is the principle working fund of the BUGB, are recewed by the charitable company and dist￿ed by its Grants Group. The Registered Office of the charltable company is in property owned by the charitable company The charity has a Ilnked charity, the Heart of England Baptist Association Loan Fund (1080529 -1) and the Trustees are also Trust￿ of the Umberslade Church Endowment (255061) and Directors of the CST Corporate Trustee Llmlted (11454313). Key Management personnel remuneration The charitsble company consider their key management personnel to be.. The charitable company's board of Trustees The pay and remuneration of the employees of the tharitsble company Is set by the charitsble company through the Board and its ￿nance Group and is based upon the Baptist Home Mission recommended stipend. Persons of Significant Control (PSC) Register The tharitsble company knows or has reasonable ouse to believe that there is no registrable person or reglstrable relevant legal entity in relation to the charitable company Page 8

THE HEART OF ENGLAND BAPTIST ASSOCIATION (A Company Limited by Guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 Directors. responslbilities in relation to the financlal statements The Trustees (who are also dirertors of The Heart of England Baptlst Association for the purposes of company law) are responsible for preparing the Trustees, Annual Report and the financial statements in accordan￿ w￿h applicable law and United Kingdom Accounting Standards (United Klngdom Generalty AC￿pted Accounting Practi￿). Company law requlres the Trustees to prepare financial statements for each finandal year, whlch give a true and fair view of the state of affalrs of the charitsble company and of the incoming reSoUr￿S and application of resources, induding the income and expenditure. of the charitable company for that period. In preparing these financial statements, the Trustees are required to.. selett suitable accountlng poliaes and then apply them consistenuy. observe the methods and principles in the Charities SORP IFRS 102); make judgements and estimates that are reasonable and prudent,. stste whether applicable UK Accounting Stsndard5 have been followed, subjert to any material departures disdosed and expkined in the financial ststernents,. and prepare the financial statements on the going concern basis unle55 it 15 inappropriate to presume that the charitable company will contlnue In operation. The Trustee5 are responsible for keeping adequate accountlng records that dlsdose with reasonable accuracy at any time the financial position of the charltsble company and enable thern to ensure that the financial statements comply with the Companies Art 2006. They are also responsible for safeguarding the assets of the charitsble company and hence for tsking reasonable steps for the prevention and detecbon of fraud and other irregularities. In so far a5 the Trustees are aware: there is no relevant audit information of which the charitable company's audltor Is unaware; and the Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that infom)ath"on Auditors Following a rebranding exercise on 15 May 2023 the trading name of the companvs Independent audthr changed from MHA Moclntyre Hudson to MHA. A resolution to reappolnt MHA as independent audftor wfill be proposed at the next Annual General Meeting. This report was approved by the Board on ..................... ..... Signed Mrs Judith Miller Moderator of the Association Page 9

THE HEART OF ENGLAND BAPTIST ASSOCIATION IA Company Limitgd by Guarantee) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF THE HEART OF ENGLAND BAPTIST ASSOCIATION Opinlon We have audited the financial statements of The Heart of England Baptist Association (the 'Charitable Companv) for the year ended 31 December 2022 which comprfse the Statement of Financial Activities. the Balance Sheet, the Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that hÈs been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Stsndard applicable in the UK and Republic of Ireland. Iunlted Kingdom Generally Accepted Accounting Practic81. In our opinion the financial statements: give a true and fair view of the stsle of the Charitsble Companls affalrs as al 31 December 2022 and of its incoming resources and application of resources, including its income and expendlture for the year then ended.. have been properly prepared in accordance with Unlled Kingdom Generally Accepted Accounling Practice: and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for oplnlon We conducted our audit in accordance ￿th Inlemational Standards on Auditing {UK) IISAS IUKII 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 financlal statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical resF)onsibilities in accordance with these requlrements. We believe that the audit evidence we have obtsined is Sufficient and appropriate to provide a bagis for our opinion. ConclusSons relating to going concern In auditing the financial statements, we have concluded that the Trustees, use of the going concern basis of accoLtnting in the preparation of the finart¢ial statements is appropriate. Based on the work we have performed, we have not identified any materi81 uncertainties relating lo events or conditions that, individually or collectively, may cast significant doubl on the Charitable Companvs ability lo continue as a going concern for a period of at le8sI ￿e1ve months from when Ihe financial ststements are authorlsed for issue. Our responsibilities and the responsibllitles of the Trustees with respect to golng concern are described in the relevant sections of this report. Page 10

THE HEART OF ENGLAND BAPTIST ASSOCIATION (A Company Llmited by Guarantee> INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF THE HEART OF ENGLAND BAPTIST ASSOCIATION ICONTINUEDI Other informatlon The other infomiation Gomprises the infonn8lion included in the Annual Report other than the financial statements and our Audrtors, Report Ihereon. The Trustees are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent othe￿iS8 explicitly stated in our report. we do not express any fom) of assurance conclusion Ihereon. Our responsibility is lo read the other information and. in doing so, consider whether the other information is materially inconsislenl with the financial statements or our knowledge obtained in the course of 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 lo a material misstalemenl in the rinancial statements themselves. If. based on the work we have perfomied, we conclude that there is a material misslatemenl of this other infomi8tion. we are required lo report that fact. We have nothing lo report in this regard. Oplnlon on other matters prescrlbed by the Companles Act 2006 In our opinion, based on the work undertaken in the course of the audit: Ihe information given in the Trustees, Report for the financial year for which the financial statements are prepared is consistent with the financial slatemenls; and th8 Trustees, Report has been prepared in accordance with applicable legal requirements. Matters on which we are requlred to report by exception We have nothing to r8POrt In respect of the following matters where the Companies Act 2006 requires us lo report lo you if, in our opinion: Ihe infomiation given in the Trustees, Report is inconsistent in any material respect with the financial statements., or sufficient accounting records have not been kept.. or the financial slalemenls are not in agreement with the accounting records and relums.. or we have not received all the information and explanations we require for our audit. and the Trustees were not enlilled lo prepare the financial statemenls in accordance with the small companies regime and take advantage of the small companies, exemptions in preparing the Trustees. Report and from the requirement to prepare a Strategic Report. Responsibilitigs of Trustees As explained more fully in the Trustees, Responsibilities Statement, 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 m8teri81 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 lo going con￿rn and using the going concem basi5 of accounting unless the Trustees either intend to liquidate the Charitable Company or lo cease operations, or have no realistic alternative but lo do so. Page11

THE HEART OF ENGLAND BAPTIST ASSOCIATION IA Company Llmited by Guarantee) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF THE HEART OF ENGLAND BAPTIST ASSOCIATION ICONTINUEDI Auditors. responsibilities for the audit of the flnancial statements Our objectives are lo obtain reasonable assurance about whether the financial statements as a whole are free from material misstalemenl, whether due to fraud or error, and to issue an Auditors, Report that includes our opinion. Re8sonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS (UK) will 81ways 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 lo influence Ihe economic decisions of users taken on the basis of these financial ststemenls. Irregularitles. including fraud. are InStan￿S of non-compliance with laws and regvl8tions. We design procedures in line with our responsibilities. outlined above, to detect material misstatements in respect of irregularities. indudlng fraud. The extent to which our procedures are capable of detecting irregularities. including fraud is detailed below: obtaining an Unde￿tsnding of the legal and regulatory frameworks that th8 Charity operates in, focusing on those laws and regulations that have a direct effect on the flnancial statements- enquiring of management and Trustees around known or suspected instances of non-compliance of laws and regulations and fraud; discussing amongst tho engagement team regarding how and where fraud might occur in the Charity rinancial statements and any potential indications of fraud.. reviewing minutes of meetings of those charged with govemance. and performing audit work in relation lo the risk of management override, including testing of joum21 entries and other adjustments for appropriateness and reviewing accounting estimates or bias. Because of the Inhe￿nt Ilmltations of an audit, there is a rlsk that we will not detect all irregularities, including those leading to a material misstalemenl in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transaction5 reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error. as fraud involves intentional concealment. forgery. collusion, omission or misrepresentation. A further descriptlon of our responsibilities for the audll of the financial statements is located on thg Financial Reporting Council's website at.. www.frc.or .ukJauditorsres onsibilities. This description forms part of our Auditors. Report. Page 12

THE HEART OF ENGLAND BAPTIST ASSOCIATION (A Company Limited by Guarantee) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF THE HEART OF ENGLAND BAPTIST ASSOCIATION ICONTINUEDI Use of our report This report is made solely lo the Charitable Companls Trustees. as a body, in accordanc8 With Chapter 2 of Part 16 of the Companies Act. Our audit work has been undertaken so that we might slate to the Charitable Companls Trustees those matters we are required to stale to them in an Auditors. Report and for no other purpose. To the fullest exlenl permitted by law, we do not accept or assume responsibility lo anyone other than the Charitable Company and its members. as a body, for our audit work, for this report, or for the opinions we have formed. Ellzabeth Newell BA (Honsl FCA (Senlor Statutory Audltor} For and behalf of MHA Chartered Accountsnts statutory Auditors Milton Keynes, United Kingdom Date.. 19 September 2023 MHA is th8 trading name of Maclntyre Hudson LLP, a limited liability partnership in England and Wales {registered number OC3123131. Page 13

THE HEART OF ENGLAND BAPTIST ASSOCIATION (A Company Llmlted by Guarantee) STATEMENT OF FINANCIAL ACTIVITIES (INCORPORAT]NG INCOME AND EXPENDITURE ACCOUNTI FOR THE YEAR ENDED 31 DECEMBER 2022 Unrestricted fund$ 2022 Restricted funds 2022 Total funds 2022 Tol81 fvnds 2021 Note Income from: Donations and legacies Charitable activities Investments Other income 231,962 41.726 117,005 45,010 231.962 41,726 122.433 45.010 243,381 37,510 131.159 12,631 5,428 Total income 435.703 5.428 441,131 424,681 Expenditure on: Raising funds Charitable activities 55.776 553,327 55,776 576.608 38,851 608.825 10 23.281 Total expendlture 609,103 23,281 632,384 647,676 Net Ilossesygains on investments Net movement in funds before other recognised gains 16 (368,3771 1368,3771 175,051 (541.7771 {17,853) 1559,630} {47.9441 Other recognised gains: Other gains 26 72,660 72,660 4.984 Net movernent In funds {469,1171 117,8531 1486.970) 142,960} Reconciliation of funds: Total funds brought forward Net movement in funds 1.778.858 1469.117) 1,414.429 117,8S31 3.193.287 (486.9701 3.236,247 142,960) Total funds carried forward 1.309,741 1.396.576 2,706,317 3.193.287 The Statement of Financial Activities Includes all gains and losses recogni$ed in the year. The notes on pages 18 10 45 form part of these financlal statements. Page 14

THE HEART OF ENGLAND BAPTIST ASSOCIATION IA Company Limited by Guarantee) REGISTERED NUMBER: 00238738 BALANCE SHEET AS AT 31 DECEMBER 2022 2022 2021 Note Fixed as$gts Tangible assets Investments 15 16 1.526.483 2,720,475 1.139.283 3,036.991 4.246,958 4.176.274 Current assets Debtors Investments Cash at bank and in hand 17 18 24 144.907 80.315 492.809 172,319 177,892 918,543 718.031 1,268,754 credito￿.. amounts falling due within one 19 {2.254,6721 (2,166,141) Net curront liabilitiOS {1.536.641} 1897,3871 Total assets less current liabilities 2.710.317 3,278,887 Creditors.. amounts falling due after more than one year 20 14.0001 14,0001 Net assets excluding pension liability Defined benefit pension scheme liability 2.706.317 3,274,887 26 {81,600) Total net assets 2,706,317 3,193.287 Charty funds Reslricled funds un￿st[1C1ed funds 21 1.396.576 1.309,741 1,414,429 1,778,858 21 Total funds 2,706,317 3,193.287 Page 15

THE HEART OF ENGLAND BAPTIST ASSOCIATION IA Company Limited by Guarantee} REGISTERED NUMBER: 00238738 BALANCE SHEET ICONTINUEDI AS AT 31 DECEMBER 2022 The Trustees acknowledge their responsibilities for complying with the ￿qUIrementS of the Companies Act 2006 with respect to aecounling records and preparation of financial statements. The financial slalemenls have been prepared in accordance with tho provisions applicable lo entities subject to the small companies regime. The financial statements WeTO approved and authorised for issue by the Trustees and signed on their behalf by- dlth Mlller e and Moderator of the Association Date.. The notes on pages 18 10 45 fom part of these financial stalemenls. Page 16

THE HEART OF ENGLAND BAPTIST ASSOCIATION (A Cornpany Limited by Guarantee) STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2022 2022 2021 Cash flows from operating a¢tivitlOS Nel cash used in operating activities (Note 23) (190.2701 {245.6181 Cash flows frorn Investlng actlvttles Dividends, interests and rents from investments Proceeds from the sale of tangible fixed assets Purchase of tangible fixed assets Proceeds from sale of Investmenls Purchase of investments 122,433 131,159 495,400 1393.145) 14.123) 111.145 297.479 {185,3821 1278,853) Not cash (used inyprovlded by Investlng actlvltles (344,9491 641.062 Cash flows from financing actlvltles Deficiency payments against pension liabilily (10,468) {17.6771 Ngt cash used in financing activitles (10,468) {17.677) Change In cash and cash equivalents in the year Cash and cash equivalents at Ihe beginning of the year (545.6871 1,146,481 377,767 768,714 Cash and cash equlvalents at the end of the year 600.794 1.146,481 The notes on pages 18 10 45 form part of thes& financial statements Page 17

THE HEART OF ENGLAND BAPTIST ASSOCIATION IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 General inforniation The Heart of England Baptist Association is a private Company Ilimiled by guarantee) incorporated in England and Wales, registration number 00238738, and is also a registered Charity in England and Wales. registration number 1080529. The registered office is 480 Chester Road, Sutton Coldfield, England. B73 58P. The principal activities of the Charitable Company are the employment of a Regional Ministry and administrative staff team and the involvement of a number of volunteers, working in groups or individually, to offer support and guidance, training and financial resources to advance the Christian faith in a way which benefits Baptist churches and the communities they serve. Accounting pollcles 2.1 Basls of prgparation of financlal statements The financial stslements have been prepared in accordance with Ihe Charities SORP (FRS 102) - Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in thé UK and Republic of Ireland IFRS 102}, the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 and the Companies Act 2006. The H8art of England Baptist Association meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised al historical cost or trdnsaclion value unless otherwise staled in the relevant accounting policy. The financial statements are prepared in British Pound Sterling 1£), which is the functional and presenlalional currency of the Charity. Monetary amounts in these financial statements are rounded lo the neargst £. The Charity has taken exemption from the requirement lo prepare consolidated financial statements on the grounds that the subsidiary is immaterial lo the Group. 2.2 Cornpany status The Company is limited by guarantge. The members of the Company are the Trustees named on page5 7. In the event of the Company being wound up, the liability in respect of the guarantee 1$ limited to £1 per member of the Company. 2.3 Going concern The financial statements have bgen prepared on a going concem basis. The Trustees have considered budgets. cash flows and the impact of subsequent event. The Trustees are satisfied that the Charity has sufficient available resources, both in terms of cash and investments that can be converted to cash, such that there is no material uncertainty 8nd the going concern basis of preparing the financial ststements continues to be appropriate. Page 18

THE HEART OF ENGLAND BAPTIST ASSOCIATION (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Accounting policies {contlnuedl 2.4 Income All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of incorne re￿1vable can be measured reliably. The recognition of income from legacies is dependent on establishing enlitlemenl, the probability of receipt and the ability lo estimate with sufficient accuracy the amount re￿1Vable. Evidence of entitlement lo a legacy exists when the Charity has sufficient evidence that a gfft has been left to them (through knowledge of the existence of a valid will and the death of the benefaclorl and the executor 15 satisfied that the propety in question will not be required lo satisfy claims in the estate. Receipt of a legacy must be recognised when il is probable that il will be received and Ihe fair value of the amount receivable, which will generally be the expected cash amount to be distributed to the Charity, can be reliably measured. Donated services or facilities are recognised when the Charity has control over the item, any conditions associated wlh the donated item have been met, the receipt of economi¢ benefit from the use of the Charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP IFRS 1021. On receipt, donated professional services and facilitl8s are recognised on the basis of the valug of the gift to the Charity which is the amount it would have been willing lo pay lo obtain services or facilities of equivalent economic benefit on the open market., a corresponding amount is then recognised in expenditure in the pgriod of receipt. Incomg tsx recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation. 2.5 Expanditure Expgnditure is recognised once there is a legal or constructive obligation to transfer economic benefit lo a third party, il 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 classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaktng each activity. Direct costs attributable to 8 Single activity are allocated direGIIy to that activity- Shared ¢ost5 which contribute lo more than one activity and support costs which are not attribulsble lo a single 8Ctivity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allwated on the bgsis of time spent. and depreciation charges allocated on the portion of the asset's use. Support costs are tho% costs inGurred direGtly in support of expenditure on the objects of the Company. Costs of generating funds are costs incurred in attracting voluntary incorne. and Ihose incurre¢J in trading activities that raise funds. Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a ommilment, but not accrued as expenditure. All expenditure is inclusive of irrecoverable VAT. Page 19

THE HEART OF ENGLAND BAPTIST ASSOCIATION IA Company Lirnited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 counting policies l¢ontinued) 2.5 Expenditure (continued) Expenditure on raising funds includes all expenditure incurred by the Company to raise funds for its charitable putposes and indudes costs of 811 fundraising activiues events and non-charitable trading. ExpenditLtre on charitable aclivities is incurred on directly undertaking the activities which further the Companls objectives, ag well as any assoclaled support cosls. 2.6 Interest receivable Interest on fvnds held on deposit is induded when receivable and the amount can be measured reliably by the Charfty. this is normally upon notification of the interest paid or payable by the bank. 2.7 Taxalion The Charity is considered lo pass Ihe tests set out in Paragraph 1 Schedule 6 of the Finance Aet 2010 and therefore il meets the definition of 8 Charitable Company for UK corporation tax purposes. Accordingly, the Charity is potentially exempl from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitsble purposes. 2.8 Tangible fixed assets and depreciation Tangible fixed assets are initially recognised at cosl. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreclation and any accumulated impairment losses. All costs incurred lo bring a tangible fixed asset into its intended working condition should be included in the measurement of cost. At each reporting date the Company assesses whether there is any indication of impairment. If suth indication exists, the recoverable amount of the asset is determined to be the higher of it5 fair value less costs lo sell and ils value in use. An impairment Ios5 15 re¢ognlsed where the carrying amount exceeds the recoverable amount. No value is attributed to burial grounds owned by the Company as the origlnal cost is not known and due to the nature of the asset it is not cpn$idered possible to determine a falr value. Depreciation is charged so as lo allocate the cost of tangible fixed assets less their residual value over their estimated useful lives. Depreciation is provided on the following basis: Freehold propety Fixtures and fittings Computer equipment 20A straight line" 150A straight line 330A straight line The depreciation charge for freehold property is £nil due to the ￿SIdUal value of the properties being assessed at a value at least equal lo cost. No depreciation is charged on the freehold land. Page 20

THE HEART OF ENGLAND BAPTIST ASSOCIATION IA Company Limlted by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 310ECEMBER 2022 Accountlng pollcles Icontlnuedl 2.9 Investments Fixed asset investments are a fom of fin8nclal Instrument arKI are initially recognised al their Irans8Ction cost and subsequently measured at fair value at the balance sheet dale. unless the value cannot be measured reliably in which case il is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented a$ gainslllosseg) on inveslmenls, in the Slalemenl of Financial Activities. 2.10 Debtors Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayn)ents are valued at the amount prepald. Loans to churches are concessionary loans made In furtherance of the Charitys purposes. Loans are recognised at cost as adjusted for any repayments made less impairment. 2.11 Cash at bank and In hand Cash al bank and in hand includes cash and short-lerm highly liquid investments with a short maturity of three months or less from the dale of acquisition or opening of the deposit or similar account. 2.12 Llabllltles and Provlslons Liabilities are recognised when there is an obligation al the balance sheet date as a result of a past event, it is probable that a transfer of economie benefit will be required in settlement, and the amount of the settlemenl can be estimated reliably. Liabilities are reeognised at the amount that the Charity 8ntlcipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services il must provide. Provisions are measured at the best estimate of the amounts required lo settle the obligation. Where the effect of the time value of money is m8teri81, the provision is based on the present value of those 2mounls, discounted al the pre-tax discount rate that reflects the risks specific to the liability. The unwrnding of the discount is recognised in the Statement of Financial Activltles as a finance cost. 2.13 Financial instruments The Charity only h88 financial assets and financial li8bilitiey of a kind that qU81ify as basic financial instruments. Basic financial instruments are initialty recognised at transactlon value and subsequently measured at their Settlement value. 2.14 Operating leases Rentals paid under operating leases are charged to the Statement of Flnancial Activitles on a straight line b8sis over the lease temi. Page 21

THE HEART OF ENGLAND BAPTIST ASSOCIATION IA Company Llmited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Accounting policies {continuedl 2.15 Pension$ The Charity participates in a defined contribution plan for ils employees. A definod contribution plan is a pension plan under which the Charity pays fixed contributions into a separate entity. Once the contributions have been paid the Charity has no further payment obligations. The contributions are recognised as an expenditure when they are due. Amounts not paid are shown in accruals in the Balance Sheet. The assets of the plan are held separately from the Charity in an independendy administered fund. Prior to 2012, the pension provision was made through two multi-employer defined benefit pension plans. Where it is not F)ossible for the Charity to obtain sufficient Infomialion to enable it lo account for a plan as a defined benefit plan, it accounts for the plan as a defined contribution plan. Where the plan is in deficit and where the Charity has agreed. with the plan. lo participate in a deficit funding arrangement, the Charity recognised a liability for this obligation. The amounl recognised is the net present value of the contributions payable under the agreement that relate to the deficit. This amount 15 expensed in the Statement of Financial Aclivilies. 2.16 Fund a¢counting General fijnds are unrestricted ftjnds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes. Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements. Restricted funds are funds which are to be used in accordance With specifi¢ restrictions imposed by donors or whieh have been raised by the Charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements. Investment income, gains and losses are allocated to the appropriate fund. Critical accounting estimates and areas of judgement Estimates and Judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed lo be reasonable under th8 C4rcumstances. Judgements in applwng the enlitWs accounting policles.. Mulli-employer defined benefit pension schemes - certain employees participate In mulli-employer defined benefit pension schemes with other org8nis8tlons. In the judgement of the Trustees. the Charity does not have sufficient infomialion on the plan assets and liabilities to be able to reliably account for its share of the defined benefit obligation and plan assets. Therefore the schemes are accounted for as defined contribution schemes. Page 22

THE HEART OF ENGLAND BAPTIST ASSOCIATION IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Critlcal accounting estirnates and areas of judgement Icontinuedl Critical accounting estimates and assumptions: Mulli*mployer defined benefit pension scheme - the Charlty has an obllgalion lo pay a deficlt funding arrangernenl in respect of Iwo-mulli employer defined benefit pension schemes {Baptist Pension Scheme and Baptist Union Staff Pension Scheme}. The present value of the obligation depends on a number of factors including the RPI rate and the discount rate on corporate bonds. Management estimates these factors in determining the new pension obligation in the Balance Sheet. Useful economic lives and residual values of tangible assets - the annual depreciation charge of tangible assets is sensitive lo changes in the estimated useful economic lives and the residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary lo reflect current estimates, based on economic utilisation, physical condilton and future investments of assets. Income from donatlons and legacie$ Unrestrlcted funds 2022 Total funds 2022 Donations Donations 5,343 5,343 Subtotal detalled dlsclosure 5.343 5,343 Home Mission Fund Granl Home Mission Grant for mission 106.511 120,108 106,511 120.108 Total 2022 231,962 231.962 Page 23

THE HEART OF ENGLAND BAPTIST ASSOCIATION (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Income from donatlons and legacies {continuedl Unrestricted funds 2021 Total funds 2021 Donations Donations Donated assets 200 200 Subtotal detsiled disclosure 200 200 Home Mission Fund Grant Home Mission Grant for mission 123,032 120.149 123.032 120,149 Total 2021 243,381 243,381 Income from charitable activities Unreslricted funds 2022 Total funds 2022 Ministers. Conference Other activities 12,022 29.704 12.022 29,704 Total 2022 41,726 41.726 Unrestricted funds 2021 Total funds 2021 Ministers, Conference Other activities 10 10 37.500 37.500 Total 2021 37,510 37,510 Page 24

THE HEART OF ENGLAND BAPTIST ASSOCIATION (A Cornpany Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Investment income Unrestricted Restrlcted funds funds 2022 2022 Total funds 2022 Retired Minister Housing Income Dividends and bond interest Interest on loans 1,610 115,395 5,108 6,718 115,395 320 320 Total 2022 117,005 5,428 122,433 Unreslricled funds 2021 Restricted funds 2021 Total funds 2021 Retired Minister Housing Income Dividends and bond interest Interest on loans 10.550 112.655 502 6,669 17.219 112,655 1,285 783 Total 2021 123.707 7.452 131,159 Other Incomlng resources Unrestricted fund5 2022 Total funds 2022 PayToII service Other activities 12,986 32,024 12.986 32.024 Total 2022 45,010 45.010 Page 25

THE HEART OF ENGLAND BAPTIST ASSOCIATION (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 other incoming re$ources (contlnuedl Unrestricted funds 2021 Total funds 2021 Payroll service Other activities 12,399 232 12,399 232 Total 2021 12,631 12.631 Expendlture on ralsing funds Unrestricted funds 2022 Total funds 2022 Payroll scheme expenses Interest on funds held for churches 9.379 31,516 9.379 31,516 Total 2022 40.895 40.895 UnTrstricted funds 2021 Total funds 2021 Foreign exchange loss on investments Payroll scheme expenses Interest on funds held for churches 1,153 10,998 8,242 1.153 10,998 8,242 Total 2021 20,393 20.393 Page 26

THE HEART OF ENGLAND BAPTIST ASSOCIATION (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Investment management costs Unrestricted funds 2022 Total funds 2022 Inveslmenl management fees 14,881 14,881 Unrestricted funds 2021 Total fvnds 2021 Investment management fees 18,458 18.458 10. Analysis of expenditure on charitable activities Summary by fund type Unrestricted Restricted funds funds 2022 2022 Total 2022 Regional Ministry Team Grants 157,190 140.369 4,536 13,604 237,628 157.190 155,690 4.536 13,604 245,588 15,321 Subscriptions Minislerfs Conference AssoGialion Activities 7,960 Total 2022 553,327 23,281 576.608 Page 27

THE HEART OF ENGLAND BAPTIST ASSOCIATION (A Company Limited by Guarantee} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 10. Analy51$ of expendlture on charitable activltles l¢ontinuedl Summary by fund type (contlnued) Unrestricted funds ' 2021 Restricted funds" 2021 Total 2021 Regional Ministry Team Grants Subscriptions Minister's Conference Association Activities 145.619 226,107 2,142 4,971 203.826 145,619 237,481 2,142 4,971 218.612 11,374 14,786 Total 2021 582,665 26,160 608,825 The groupings of expenses in respect of each fund have changed lo provide a clearer analysis, therefore the prior year numbers have been reclassified. 11. Analysis of gxpenditure by activitles Activities undertaken directly 2022 Grant funding of activitles 2022 Support costs 2022 Total funds 2022 Regional Ministry Team Gr8nts Subscriptions Minister's Conference 157.190 157.190 155.690 4.536 13,604 245,588 155.690 4,536 13,604 7,960 Association Activities 237,628 Total 2022 183.290 155.690 237,628 576.608 Page 28

THE HEART OF ENGLAND BAPTIST ASSOCIATION (A Company Llmlted by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 11. Analysis of expenditure by acttvities {continued) Activities undertaken directly 2021 Grant funding of activities" 2021 Support costs. Total funds 2021 2021 Regional Minislry Team Grants Subscriptions Minister's Conference 145,574 45 145,619 237.481 2.142 4,971 218,612 237,481 2,142 4,971 14,786 Association Activities 203.826 Total 2021 167,473 237,481 203,871 608,825 A detailed analysis of grants paid during the year is included at Appendix 1. The groupings of expenses in respect of each fund have changed to provide a clearer analysis, trterefore the prior year numbers have been reclassified. Analysis of direct costs Regional Ministry Ministerfs Assoclatlon Team Suberiptions Conference Activitles 2022 2022 2022 2022 Total funds 2022 Staff costs Minister's conference Regional MinistyTeam Subscriptions Association activities 125,122 125,122 13,604 30.540 4,536 7,960 1.528 13,604 30,540 4,536 7,960 Finance cost (pension deficit) 1,528 Total 2022 157.190 4,536 13,604 7,960 183,290 Page 29

THE HEART OF ENGLAND BAPTIST ASSOCIATION (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 11. Analysis of expenditure by activities Icontlnuedl Analysis of direct costs Icontinuedl Regional Ministry Team 2021 Ministerfs Association Subscriptions Conference Activities 2021 2021 2021 Total funds 2021 Staff costs Ministerfs conference Regional Ministry Team Subscriptions Association activities Finance cost (pension deficit) 119,721 119,721 4.971 24,561 2,142 14.786 1,292 4,971 24.561 2,142 14,786 1,292 Total 2021 145,574 2.142 4.971 14,786 167,473 Analysis of support costs As res18ted Total funds 2021 Total funds 2022 Staff costs Depreciation Regional Ministry Team Payroll scheme expenses Premises costs and adminlstr8tion Other staff costs including tr8ining Property Working groups 119,770 113,067 3.189 45 1,387 19.588 11.410 15.619 2.976 12.908 1.331 17.867) 36.561 18.000 1,467 28.578 3.837 4,822 633 9,545 837 12.642 34,118 16,548 {25.4571 Board expenses Legal and professional Olher Audit and accountancy fees Profit on disposal of fixed asset held for sale 237.628 203,871 Page 30

THE HEART OF ENGLAND BAPTIST ASSOCIATION (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 12. Audltors. remuneration The auditors, remuneration amounts to an auditor fee of £15,00012021'. £10,200), and non audit services of £3.00012021- £1.8001. 13. Staff costs 2022 2021 Wages and salaries Social security costs Pension costs Inole 26) 207,727 13,522 23.643 195.920 13,464 23,404 244,892 232.788 The average number of persons employed by the Company during the year was as follows.. 2022 No. 2021 No. No employee received remuneration amounting to more than £60,000 in either year. During the year the Rev A Argile. a Trustee of the Charitable Company, received remuneration for his role as Region81 Minister Team Leader and travel expenses in connection with that role. He was not remunerated for Trustee duties. The cost lo the Charity of the remuneration Igross pay plu5 employer's national insurance and pension) was £42.268 (2021.. £41,699) and expenses were £1,501 {2021'. £3,190). Key Management Personnel of the Charity are considered to be Ihe Trustees. No other Trustee received any remuneration. 14. Trustses. remuneration and expensgs During the year, no Trustees reGgived any remuneration or other benefits 12021= £Nill, 9xcept a5 disclosed above. During the year ended 31 December 2022, expenses tolalling £1,331 were reimbursed or paid directly to 4 Trustees (2021.. £837 10 7 Trusleesl. Page 31

THE HEART OF ENGLAND BAPTIST ASSOCIATION IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 15. Tangible fixed assets Freehold Fixtures and property rittings Computer equlpment Total Cost or valuation At 1 January 2022 Additions Disposals 1,130,876 380.857 12.756 6,305 11,414 5.983 1599) 1.155.046 393.145 1599) At 31 December 2022 1.511,733 19.061 16,798 1.547.592 Depreclation At 1 January 2022 Charge for the year On disposals 6,459 4,264 {5991 15,763 5,945 {5991 1,681 At 31 December 2022 10.985 10,124 21,109 Net book value At 31 December 2022 1.511.733 8,076 6.674 1,526,483 At 31 December 2021 1.130.876 3,452 4,955 1,139,283 16. Fixed asset investments Other fixed Listed asset Investments investments Total Cost or valuation At 1 January 2022 Additions 2,986.944 185,382 1111,149) 1368.377) 50,047 3,036,991 185,382 1132,7341 1368,3771 17871 Disposals Revaluations Foreign exchange movement 121.585) 1792) Al 31 December 2022 2,692.805 27.670 2.720,475 Page 32

THE HEART OF ENGLAND BAPTIST ASSOCIATION (A Company Llmlted by Guarantee} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 16. Fixed asset invgstments Icontinuedl All fixed asset investments are held in the UK. Subsidiary undertaking.. The CST Corporale Trustee Limited (Company number 114543131, a Company limited by guarantee, is a subsidiary by virtue of the Charity being the sole member. Ils sole purpose is to act as a corporate Trustee in respect of the assets of the Cannon Street Trust. The subsidiary is not material lo the Group and has therefore not been Included in the financial statements. 17. Debtors 2022 2021 Trade debtors 10,195 130.347 4.365 2.849 140,564 28,906 Other debtors Prepa￿ents and accrued income 144.907 172.319 Included within other debtors are loans lo churches of £130,347 {2021= £140,564) which are generally expected to be received after one year. 18. Current asset investments 2022 2021 Deposits held on behalf of ¢hurGhes 80,315 177,892 Page 33

THE HEART OF ENGLAND BAPTIST ASSOCIATION {A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 19. Creditors: Amounts falllng due within one year 2022 2021 Trade creditors Other laxatr'on and social security Other creditors Accruals and deferred income 7.975 6.476 2,183,951 56.270 3.164 6,948 2,126,617 29.412 2,254,672 2.166,141 Included within other creditors is an amount of £2,183,951 {2021.' £2,126,167) held on behalf of certain churches 2nd the Cannon Street Trust. The churches are required to give due notice before withdrawal of these amounts. 20. Credltors: Amounts falllng due after more than one year 2022 2021 Other creditors 4.000 4.000 Other creditors represents a contribution to Retired Houging which is an equity contribution by the lenanls which is repayable on the sale of the property at Clee View, Bridgnorth. Page 34

THE HEART OF ENGLAND BAPTIST ASSOCIATION (A Company Llmlted by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 21. Statement of funds statement of funds - current year Balance at 31 Gainsl December Ilossesl 2022 Balance at 1 January 2022 Transfers Inlloutl Income Expenditur Deslgnated funds Church Resources Fund Minister's Resources Fund Regional ini51ry Fund Mission Development Monkspath Fund Mission Grant Funds Pension reseNe 41,934 1300) 41,634 36.955 12,3121 186,543 186.543 364,017 90.387 155.921) 38,697 346,793 90,387 120.108 (81,411) (38,6971 45,829 45.829 765,665 120,108 1139,944> 745.829 General funds General Funds 1.013.193 315,S95 (469.159) (295,7171 563.912 Total Unrestricted funds 1,778,858 435.703 {609.1031 1295.717) 1,309,741 Page 35

THE HEART OF ENGLAND BAPTIST ASSOCIATION (A Company Llmlted by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 21. Staternent of funds Icontinuedl Balance at 31 Galnsl December Ilossesl 2022 Balance at 1 January 2022 Transfers Inl{outi Income Expenditure Restricted funds Atch Lench Baptist Trust Heart of England Loan Fund Helen Youth Fund Retired Ministers & Missionaries Housing Fund Westmancolg Baptist Trust Benevolent Fund FlocKI Fund 17,069 (15.3211 1.748 850,863 850,863 1.581 1,581 525.474 5,108 {7.131} 523.451 12.390 728 6,324 12.390 219 6,324 320 1829) 1.414.429 5,428 (23.2811 1,396.576 Total of funds 3,193,287 441,131 1632,3841 1295.717) 2,706,317 Page 36

THE HEART OF ENGLAND BAPTIST ASSOCIATION (A Company Llmlted by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 21. Statement of funds Icontinuedl Statement of funds - prior year Balance al 31 December 2021 Balance at 1 January 2021 Transfers inl{oull Gainsl Ilosses) Income Expenditure Designated funds Church Resources Fund Ministerfs Resources Fund Regional Ministry Fund Mission Development Monkspath Fund Mission Grant Funds Pension reserve 44,734 12,8001 41.934 38,205 {1.2501 36,955 186,588 (45) 186,543 493,279 90,387 187,081 } {42,181} 364.017 90,387 120.149 1162,3301 {20,600) 42,181 66.429 45.829 919,622 120.149 (274,106} 765,665 General funds General Funds 883,488 297.080 {347.410) 180.035 1,013,193 Total Unrestrictèd funds 1,803,110 417.229 1621,5161 180.035 1,778,858 Page 37

THE HEART OF ENGLAND BAPTIST ASSOCIATION IA Company Lirnited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 21. Statemgnt of funds Icontinuedl Balance at 31 December 2021 Balance at 1 January 2021 Transfers inllouti Galnsl Ilossesl Income Expenditure Restrlcted funds Atch Lench Baptist Trust Heart of England Loan Fund Helen Youth Fund Retired Ministers & Missionaries Housing Fund Westmancote Baptist Trust Benevolent Fund Flood Fund 28,443 111,3741 17.069 850.863 850,863 1.581 1,581 532,698 6,669 (13.8931 525,474 12,390 838 12.390 728 6,324 783 18931 6.324 1,433,137 7,452 (26,1601 1.414.429 Total of funds 3.236,247 424.681 {647,6761 180.035 3.193.287 Page 38

THE HEART OF ENGLAND BAPTIST ASSOCIATION (A Company Lirnited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 22. Analysis of net assets between funds Analysls of net assets betsveen funds - current year Unrestrlcted Restrlcted funds funds 2022 2022 Total funds 2022 Tangible fixed assets Fixed asset investments Current assets 1,526,483 1.526,483 2,720,475 2,720,475 12,866,496) 3,584.527 718,031 170.7211 {2.183,9511 12.254.672) 14,0001 {4,000) Creditors due wlhin one year Creditors due in more than one year Total 2022 1.309,741 1,396,576 2,706,317 Analysis of net assets between funds - prior year Unrestricted funds 2021 Restricted funds 2021 Total funds 2021 Tangible fixed assets Fixed asset investments Current assets Creditors due within one year Creditors due in more than one year Provisions for liabilities and charges 1.139.283 1.139.283 744,214 2,292,777 3.036.991 16.485 1,252,269 1,268,754 139.5241 12,126,617) 12,166,141) {4,0001 {4.0001 {81,600) {81,600} Totsl 2021 1.778.858 1.414,429 3,193,287 Page 39

THE HEART OF ENGLAND BAPTIST ASSOCIATION IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 23. Reconciliation of net movement in funds to net cash flow from operatlng activities 2022 2021 Net expenditure for the year las per Statement of Financial Activiliesl {559,6301 147,944) Adjustments for: Depreciation charges Lossesllgains} on investments Dividends, interests and rents from investments Gain on the sale of fixed assets Decrease in debtors Increase in creditors Defined benefit scheme financ8 Cost adjustment 5.945 3.189 368,377 1175,0511 1122.433) 1131.1591 {25.4611 35,807 93,709 1.292 27.412 88.531 1.528 Net cash used In operatlng actlvltles {190,2701 (245,6181 24. Analysis of cash and cash equivalents 2022 2021 Cash in hand 492.809 107.985 918.543 227,938 Notice deposits (less than 3 months) Totsl cash and cash equivalents 600.794 1,146,481 25. Analysis of changes in net debt At1 January 2022 Cash flows At31 December 2022 Cash at bank and in hand 918.543 227.938 1425,734) {119,953) 492.809 107.985 Liquid investments 1,146,481 1545,68n 600.794 Page 40

THE HEART OF ENGLAND BAPTIST ASSOCIATION IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 26. Penslon commitments The Assoclalion 15 3 participating employer the Baptist Pension Scheme I'the Scheme"), which is a sep8rate legal entity administered by the Pension Tnjstee (Baptist Pension Trust Limited). The assets of the Scheme are held separately from those of the Employer and the other participating employers. The Scheme, previously known as the Baptist Mlnlslers, Pension Fund, started in 1925, but was closed lo future accrual of defined benefits on 31 December 2011. Prior to this date the main benefit provided through the Defined Benefit IDBI Plan was a pension of one eighlielh of final minimum pensionable income for each year of penslonable Servi￿ together with additional pension in ￿SpeCt of premiums paid on Pensionable Income in excess of Minimum Pensionable Income. From January 2012. pension provision is being made through the Defined Contribution (DCI Plan within the Scheme. In general, members pay 80/0 of their Pensionable Income and employers pay 6/0 of members. Penslonable Income into individual pension accounts, which are operated and managed on behalf of the Penslon Trustee by Broadstone Corporate Benefrts Ltd. In addition, the employer pays a further 40A of Penslonable Income lo cover Death in Service Benefits. administration costs, and an associated insurance policy which provides income protection for Scheme members if they are unable to work due to long-term incapacity. This income protection policy has been insured by the Baptist Union of Great Bfftain wrlh Aviva Limited. Members of the Basic Section pay reduced contributions of 50h of Penslonable Income, and their employers also pay 8 total of 5./0. The Scheme is ¢onsidered lo be a multi-employer scheme as described in Section 28 of FRS 102. Because it is not possible to attribute the Scheme's assets and liabilities lo specific employers. the scheme Is aceounted ft)r as if the Scheme were a defined contribution scheme. The Regional Minlsters and members of the Association staff team are eligible to join the Scheme. The 18ble below summarises the main results of the most re￿nt acluaTial valuations of the BUSPS and the Defined Benefit IDB} Plan in the BPS. These valuations were performed by a profession811y qualified Actuary using the Projected Unit Method-. BPS DB Plan 31 December 2019 31 December 2022 £298m BUSPS 1 January2017 NIA scheme is in wind-up £10.3m Date of valuation Date of next valuation Market value of scheme assets IA) Technical provisions {B} Deficit l(Bl - {A}I Funding level l(A) 1 {81] £316m £18m 94Q/o £16.2m £5.gm 64Yo Page 41

THE HEART OF ENGLAND BAPTIST ASSOCIATION (A Company Llmited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 26. Pension commitments Icontlnued} Section 28.11A of FRS 102 requires agreed deficit recovery payments to be recognised as a liability. The movement in the provision is sel out in the table below. 2022 2021 Balance Sheet liability at year start Minus deficiency contributions paid Interest cost Irecognised in SOFA) Remaining change lo balance sheet liability, {recognised in SOFA) 81,600 {10,4681 1,528 {72,6601 102,969 117,6771 1,292 14,9841 Balance Sheet Ilablllty at year end 81.600 Comprises any change in agr89d deficit recovery plan and change in assumptions between year-ends. Rewvery Plan In addition to the contributions to the DC Plan set out above, where a valuation of the D8 Plan reveals a deficit the Trustee and the Council agree to a rate of deficiency contributions from churches and other employers involved in the DB Plan. Following the 2019 valuation a Recovery Plan was signed in September 2020 under which deficiency contributions are payable until June 2026. These contributions were broadly based on each employer's membership al 31 December 2014 and increase annually in line with increases lo Minimum Pensionable Income as defined in the Rules. On 30th June 2022 the Baptist Pension Scheme signed an agreemgnt with the insurance company Just Group l°Just") to secure DB Plan member5, pension benefits. Just are now providing financial backing for all pensions provided through the Scheme's DB Plan and following this Iransaclion, the Scheme no longer has a shortfall. An updated Recovery plan was then signed in August 2022 under which recovery contributions from each participating employer in th8 DB Plan reduced lo £1 per Month from August 2022. The key financial assumptions underlying the valuations were as follows: Type of assumption BPS °/0 pa BUSPS °hpa RPI price inflation assumption 3.20 CPI price inflation assumption 2.70 Minimum Pensionable Income Increases (BPS only) 3.20 Pensionable Salary increase IBUSPS only) NIA Assumed investment returns Pre-reliremenl Post retirement Deferred pension increases Pre April 2009 Post April 2009 Pension increases Pre April 2006 Post April 2006 3.45 2.70 NIA 3.70 2.95 1.70 3.50 2.25 3.20 2.50 3.45 2.50 2.70 2.70 3.25 2.15 Page 42

THE HEART OF ENGLAND BAPTIST ASSOCIATION {A Company Llmlted by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Mortality is assumed in accordan￿ with 800A of the S3NA standard mortality table. Future improvements projected from 2013 in line with the "CMI 2019. projection with a long-term rale of improvement of 1.75% p.a. for males and 1.50￿ p.a. for femaleswith the core Smoothing parameter and with adéltional initial mortality improvement factor A=0.5Yo. The next actuarial valuation of the DB Plan withln the Scheme will commence in 2023 to reflect the position as at 31 December 2022. As there are numbers of contributing employers participating in both the BPS and the BUSPS, the Charity is unable to identify ils share of the undertyTng assets and liabilities of the schemes. Accordingly, the profit and loss charge for the period represents the employer contributions payable. The lolal pension cost for the Charity in the year were £23,643 {2021.. £23,404) for the BPS. 27. Operating lease commltments Al 31 December 2022 the Company had commitments to make future minimum lease payments L¢nder non-cancellable operating leases as follows.. 2022 2021 Not later than 1 year Later than 1 year and not12ler than 5 years 414 732 6.210 4,554 4.968 6,942 Page 43

THE HEART OF ENGLAND BAPTIST ASSOCIATION IA Company Llmlted by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 28. Related party transactlons The Charity is a member of the Baptist Union of Great Britain and is in receipt of grants from the Home Mission Fund which is part of the Baptist Unlon. Grants of £226.619 12021.. £243.181 } were received in this respect. Tnjstees of the Charity are drawn from the membership of the local Baptist Churches and there are therefore, from lime to time. grant awards made lo benefit either the individual or the church. There is a fom)al process in relation lo grant applications which helps lo ensure that any Conflict of interest is mlligaled by the exclusion of the conflicted individual in the decision making process. The CST Corporate Trustee LlmSted The CST Corporate Trustee Limited is a trust corporation constituted as a Company limited by guarantee of which The Heart of England Baptist Association is the sole member and director. Included within other creditors is an amount of £464,42412021'. £462.630) held on behalf of the Cannon Street Trust. The Cannon Street Baptlst Chapel Trust The following church buildings. all within Birmingham. except Smethwick. are held on the CST118771 according to the terms of that Trust. The buildings are occupied by the churches on the equivalent of fully insuring and repairing leases al a peppercorn rent The 'leases' expire when the churches no longer require the propety- Birmingham Central Baptlst Church Cannon Street Memorial Church Castle Bromwich 8aptisl Church and Manse Church of the Redeemer City Road Baptist Church People's Chapel Small Heath 88Ptist Church Smethwick Baptist Church strdfford Road Baptist Church The Heart of England Baptist Association is in the process of Iransf9rring the trusteeship of the churches held on the Cannon Street Trust to The CST Corporate Trustee Limited. The properties already transferred are'.- Birmingham Central Baptist Church City Road Baptist Church Small Heath Baptist Church Smethwick Baptist Church Umbgrslade Endowment Charlty The Trustees of The Heart of England Baptist Association are also Trustees of the above named Charity which is registered with the Charity Commission. There are no transactions be￿een the Iwo entities but The Heart of England Baptist Association oversees the activity of the Charity. Page 44

THE HEART OF ENGLAND BAPTIST ASSOCIATION IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 29. Controlling party The Charity is ullim8tety controlled by the Board of Trustees. 30. Cornpany1Smlted by guarantee The Charity is a Company limited by guarantee and does not havè share capitsl. Page 45

HEARTQF ENGLAND BAPT15T ASSOaATION Appendi¥ l-GraThts Paldthrin¥thèyear De518nated fmm MIs510r15 Gyat Grantstochurthes Vnrestrlcted Restrlrted 2022Total 2021Total Afvethurch B3Lldelty Ed8e BeirwDDd Black Counrry Urban Industrfal Mlssion Chelmsley WoDd Cornerstone. 05westry 0a￿house Oéwley Oelve5, wakall 300 7,796 7.7% 7,718 6,188 2,475 3.713 6,188 2,475 3,713 6,000 5.104 3.675 6,125 &943 6,12S 4,550 5.716 11.374 6.125 9,188 S,250 6,319 11,025 5,2SO 2.000 1,089 L(NJO 7,962 4.￿0 8,587 7,656 4,IZ5 4,125 Ewyès Hardd 3.589 3.589 15,321 6,188 4,873 15,321 Gatewayto Hopè fjeorge Roadcommunity Churth ¢l&bè Farm GIEbE Firm Pioneer Greèn Lène,Walsall Keelè University LEP Kings Cofflmunity Churth Limbri¢kWood, Co¥er*try Lentons Lane 8C Londonderry Madeley Newport Putson Radfvrd Semele Ri5inB BrDok re. PioneerGrant Ri5in8 Brtbtsk re. MinSstryarnongthe Oeaf SiMWaVS re. Castlevale Projert SiMW&ys re. Castlevale Projert SiYWaVS re. Castlevale Project $meth￿ck re. 8CUIM Stoke Warlèy Warley w￿neSb￿V Wolston Wolvey Yardleywood 6,188 4,873 15,321 15,311 5500 5,500 3,3 3,300 330 330 425 8,692 8,692 11917 25.50D 5.9Z8 12.2$0 1.144 1.640 4.594 I,ooo 6,125 6,125 3￿63 4,125 4,125 IS,629 15,629 1,021 8,251 J,021 8J51 3,611 15Q) 500 Grnntstolndlvlduals Rev. Kirsteen Maraulav Rev. Neil BennEt Rev. Peter M?y¢otk lQuèèrnS Foundalonl Rev. Simon Harry Rev. LeDnèMarbn Churchfrom Scrntch project 50D 329 I,th)D 312 500 L.OC 312 5WJ Iw) Grants toOrgan15atton5 8.C.C.E. & C.L.A.S.P. ChurchEslnLI Sroup Blrmin8ham ChurchE5 together in Shropshlre ChurchES ttsgether In Hereford 8irmingham Churche5Together Faith at Workln Worcestershire Telford ChristlansTogether Urban Expression West Mi65 FE Chaplaincy Workcare Ministry amongthÈ Deat Expense5 Telford ChriStiansTogether 638 638 2,0 2,0 750 S,360 5,625 4,50D 6.250 1,50D 7.OOD 1.854 392 2,000 750 750 4,875 092 4,87S 8,092 L500 5.250 J,500 5,2SO 24,457 24.457 27.194 108.772 15.3ZI 180,147 26L615

THE HEART OF ENGLAND BAPTIST ASSOCIATION APPENDIX 2 . PROPERTIES FOR WHICH HEBA WAS OWNER/HOLDING TRUSTEE 31.12.2022 CST= Cannon Street Trust C- Conservation area L= Llsted Name Details Acocks Green Chapel, School Hall, Manse Alvechurch Chapel, Schoolrooms, land at rear, Manse Attleborough Church, other properties, Manse Ashmore Park Chapel, Hall Austrey Church Building5 8addeley Edge Chapel Baptlst Church Centre Handsworth Church Barnt Green Chapel, land at rear Manse sold 2023 Church and School Hall 8earwood Bedworth Chapel and School Hall, Manse Bilston Church and halls. Manse Blnley Woods ILEPI Manse Bridgnorth Chapel, Offices 7 West Castle Street Brierley Hill Chapel, Schoolrooms, Burial ground Bromsgrove Chapel and School Hall Manse Chapel and School Hall Butt Lane, Stoke-on-Trent Cannon Street Memorial CST Church and Halls, House, Manse Carters Lane Chapel and School hall Manse sold 2022 Church and Manse Castle Bromwich CST Castle Hill. Warwick Church, other properties. Manse Catshill Chapel and halls, burial ground, Manse Cedar Church, Kingstanding Chapel and Hall Chadsmoor Chapel. Schoolrooms 47

THE HEART OF ENGLAND BAPTIST ASSOCIATION APPENDIX 2 . PROPERTIE5 FOR WHICH HEBA WAS OWNERIHOLDING TRUSTEE 31.12.2022 Chase Chuch Chelmsley Wood Church Centre, Manse Chester Road. Chapel, Manse Chorley Chapel, Burial Ground Church of the Redeemer CST Properties in Monument Road City Road Manse Darkhouse Chapel, School Hall and small burial ground Graveyard, Bell St Church. School Hall and Burial Ground, Manse Dawlev Donnington Wood Chapel Edward Rd Chapel and Schoolrooms Erdington, Six Ways Chapel. School Halls, Manse Ewyas Harold Church, Manse and Lar)d adjoining Far Forest Church Fenton Chapel and School Hall Fordhouses Wolverhampton Chapel and school Hall, Manse Four Oaks Chapel and Halls, House George Road Community Church Church and hall Grace Community Church Church building and land abutting church Grenfell Chapel, Land adjoining, House Hall Green Icristchurch LEPI Chapel, Hall, Manse Hope Stourbridge Chapel. School Hall, Manse Hanley, Stoke-on-Trent Church Centre Harborne Church and Halls, other properties, Manse Hearsall Manse Kenilworth Church 48

THE HEART OF ENGLAND BAFfisT ASSOCIATION APPENDIX 2 . PROPERTIES FOR WHICH HEBA WAS OWNER/HOLDING TRUSTEE 31.12.2022 Hlghgate Church. hall and flat above. Hockley Heath Church Hall, land Adjoining Kings Community Church Church and Sthoolroom Kings Norton Chapel, School Hall and land adjoinin& Manse Ledbury Church, Manse and additional house Lentons Lane, Coventry Church. School Hall, additional land, Manse Limbrick Wood Church and Hall, Manse Londonderry Church and hall Longbridge Chapel and Hall, Manse Longford Salem.. School Halls - Leased expiring 2030 Union Place.. Church, hall and burial ground Church Centre Ludlow Netherton, Ebenezer Chapel and Schoolroom Lodge Farm, Netherton Church Hall Messiah, Netherton Burial Ground New Christ Church, Aston Chapel, Manse Newbridge Chapel, School Hall, Manse Newcastle-under-Lyme Church New Life, Kings Heath Church, Manse and 2 houses Newport Church Building and site Northfield Church and halls, manse, Other land Olton Offices 85 Warwick Road Oswestry Church BuSlding Overslade Church Hall Peoples Chapel CST Church, Manse Perry Beeches Chapel 49

THE HEART OF ENGLAND BAPTIST ASSOCIATION APPENDIX 2 . PROPERTIES FOR WHICH HEBA WAS OWNER/HOLDING TRUSTEE 31.12.2022 Providence Chapel, and burlal ground, Manse Polesworth Church, School Hall and burial ground Pontesbury Chapel and Burial Ground, Manse Rugby Chapel and School Halls St Peterfs Worcester Church, Manse Saltley Chapel, Manse Sandon Road, Stafford Chapel and School Hall, 2 Houses Selly Park Chapel and School Hall, Manse Ico-trusteel Shrew5bury Claremont slte ICI.. Chapel Crowmoor site.. Church Chapel, Manse Stechford Stoke Baptist Church Church, Manse sold 2022 Church and site Stratford Road Tabernacle Wolverhampton Chapel and School halls, car park, Manse Tamworth Chapel Walsall, The Delves Site. Chapel, Church Hall, Manse Walsgrave Chapel and School Hall, Manse Warley Chapel and School Halls and land adjoining, Manse Wednesbury Chapel, Manse West Bromwich Chapel, Manse Westmancote Burial Ground CC Order 2004. Co-Trustees with Official Custodian Wolston Chapel, Burial Ground Word of Spirlt and Life Church. Churth Yardlev School Hall, Manse Yardleywood Chapel, Manse 50