EASTERN BAPTIST ASSOCIATION ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2023 CONTENTS AND CHARJTY INFORMATION CONTENTS PAGE Report of the Trustees Independent Examinerfs Report ststement of Financial Activities Balance Sheet Statement of Cash Flows io Notes to the Accounts TRUSTEES Andrew Wade Eli7abeth Powncy (resigned 30104123) Sean Fountain Alan Brand John Goddard Fiona Heddle (moderdtor) (resigned 30111123) Vicky Baker Sandra Crawford Benjamin Plallt Richard Lewis (Treasurer) Adrian Ward Binny Jatchander (appointed 23105123) Paul Smith (appointed 18109123) David Mayne (appointed 01111123) COMPANY SECRETARY Hayley Beckett RBGIONAL MINISTERS Elizabeth Powney (resigned 30104123) Graerne Ross (resigned 10110123) Claire Blatchford Gale Richards David Mayne REGISTERED OFFICE 2 Buchattsn Gardens Wi¢kford SS12 9QB COMPANY REGISTRATION NUMBER 4221429 CHARITY REGISTRATION NUMBER 1089795 INDEPENDENT EXAMINER Ian Shipley FCCA For and on behalf of: Prenti8 & Co LLP Chartered Accountants alld Independent Examiners 115¢ Milton Road Cambridge, CB4 IXE BANKERS CAf Bank Ltd 25 Kings Hill Ave Kings Hill West Malling Kent ME19 4JQ Shawbrook Lutea House Warley Hill Business Park Brentwood Essex CM13 3BE Baptist Union Corporation Limited Baptist House PO Box 44 129 Broadway Didcot OXI18RT Lloyds Bank PIC 13 Cornhill Ipywich Suffolk IPI IDG
EASTERN BAPTIST ASSOCIATION PAGE I ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2023 REPORT OF THE TRUSTEES The Trustses. (who are also directors of the charity for the puLTroses of the Co]npgnies Act), present their annual ieport together with the financial statement5 of the charity for the year ending 31 De¢ember 2023 which are also prepared to meet the requirements for a diroctor5' report and accounts for Compallies Act purposes. The fmancial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Associatson, and Accounting ¥nd Reporting by Charities., Statffiient of RecomrneDded Practice app]icable to charities preparing their arwunts in accord¥nce with the Financial Reporting Standard applicable in the UK and Repub]ic of Ireland (FRS 102) (Second ¢dition, ¢ff¢ctive l January 2019). OBJECTIVES AND ACTIVITIES The Trustees believe that advanceTnent of the Christian faith, partiwlarly a5 expressed through tbe Baptist movement, is of public benefAt as it encourages social cohesion, provides an ethical framework for life and works itself out in the sacrificial giving of flfftds, tirn¢ and effort by church m¢mbers and attenders for the good of their own community and beyond. As part of their work and witoess, the Baptist Churches in membership with Etern Baptist Association deliver a wide variety of activities which benefit the general public, These activities include,. - promoting the study of religious teachings, prnctices, and scriptures support of religious office holders e.g., mtnistcrs, deacons and elders of member churches. promoting prayer, praise and provision of training events. pastoral support to ministers and church congregations. contributing to the spiritual and moral education of children and young people and the provision of training to comply with the legal Tequirements regarding safeguarding. The Mission Statement of the Eastern Baptist Association is.. "Giowing healthy churches in relationship for God's mission in the East of England" This mission statement ts actively facilitated and fulfilled through eight areas of focus, we realise that each year w¢ do not expect to fully succeed in inLplemonting all eight areas but rather focus on two or tbrge areas eaGh year. The eight areas of our strate are: Growing Godly leaders. Stewarding shared resources. Enabling relevant trainillg. Encouraging healthy churches. Exploring fruitful partnership5. Sharing inspirational ideas. Offering apostolic leadcrship. Advocating transfornLational justice Below are some specific examples of how in 2023 some of our eight areas of tocus have been achieved: Diversity, Equality and Justice reJn&ined high on the Association's priority list tbrougbout 2023. Baptists Together launched a training video series for Ministers titled "l am because you are" this focused on justice issues. AS an association we took this resource and used it provide opportunities for ministers and leaders to gather and reflect together on the content of the material. The work amongst female leaders and ministers ha8 continued and groups have met in person and online to encourdge each other and Pray for one alloth¢r, The BUEN network that focuses on encouraging churches to ¢ngag¢ with enviromnental issues has ci)ntinued to meet online througbout the year, it is hoped that in 2024 more churches can encouraged to engage with thes¢ issues. ACHtEVEMENTS, PERFORMANCE AND DEVELOPMENTS 2023 has been a year of transltion and change, the year started with Revd Gale Richards on sabbatical retumillg in eaTly March. Revd Beth Powney retired from the team leader position in April. On the second attempt the EBA appointed a new team leader, this wasn't without challenges and has thrown up questions around tho process of appointing Regional Ministers, these questions have also occurred in other Baptist Associations and a CTOSS Baptist group has been fomied to reflect on what this process should be going forward.
EASTERN BAPTIST ASSOCIA TION PAGE 2 ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2023 REPORT OF THE TRUSTEES The EBA will wait for these reflections before making progress on any changes it ne¢ds to make to the process. The new team leader started in November. In October Revd Graeme Ross left EBA to return to church mini8ty and in November Mrs Diane Forsyth Tetired as Safeguarding LeaLL At this time the trustees will not be appointing any other Regional Ministsrs. At the end of 2023 an advert is live for a new Safeguarding Lead with the hope of an appointtnent ID early 2024. At the conclusion of 2023 the EBA team ronsisted of Revd David Ma5c a5 Tell Leader, R¢vd Galo Rirhards and Revd Claire Blatcbford as regional ministers. Mrs Juli¢ Eady continue5 as Finance officer, Mrs Hayley Beckett &8 Association Secretary. ]n septsMb at our AGM Revd Athian Ward wa5 elected to Serve a full terni a5 a trustee following his iDteTiDI appointsnent earlter on in the year. In November Revd Fiona Heddle resigned as Moderator. Th¢ truste¢5 appointsd Mr Andrew Wade to serve as int¢rim moderator ulltil the next AGM. The trustee board fmishe4J 2023 as below, Mr Andrew Wade- Interim Moderdtor Mr Richard Lewis - Troasurer Revd Adrian Ward - Finance and Administration, Revd JoFJn Goddard- Ministy, Mr ikndrew Wade - Cornrnunication, Mrs Vicky Baker- Children alld Families and safeguarding trustee Revd Sean Fountaill- Healthy ChuTch¢s Revd Alan Brdnd- Justice Trangforntion Revd SandTa Crawford as a co-opted member (until January 2024) Mr Benjamin Plant as a co-opted member (until September 2024) Mr Binny Jaicbander as a co-opted member (until May 2025). Revd Paul Smith as a co-opted member (until September 2023) Revd David Mayne (RMTL) as an ex-officio Jnember of council. The membership of the Association at the end of 2023 was J71 churches. This includes the resignation of Mundesley Free ChurdL the closure of More21ife church and a successful membethip application of Church @the Megacentre. Finance Th¢ EBA provide two full time and one half time Regional Ministers for the Association despite the continued baclcdrop uf falling income from the main income source. While tbe EBA would like to provide 3.5 Regional MinisteTS. the current fanCIal sith8tion does not allow it. Resources expended on charitable activities were £376,914 (2022: £334.195) including governance. £117,137 (2022: £113,694) was awarded in Home Mission grants. Princi al Fundin Sources The charity's main Source of incon)e are the payments from the Baptist Union for both Operational Fuuding gnd Mission Payments which are calculated according to a nding forniula whieh is applied to the total amount received by the BU for Home Mission fro]n churches. Further income is received from investments, rental income and preaching fees. Princi alEx enditure The majority of expenditure is directly related to the provision of from 1.5 to 2.5 Regional Ministers which Louncil consider the minin]um llceded to service the needs of all EBA churches over such a vast area. Provision includes amounts to mailltain the propety portfolio to a good standard of repair. The Regional Ministry team is supported by a Company Secretary for goven)ance issues, and a Finance Officer. We also employed an EBA Safeguarding Officer for 12 - 15 hours per week until November when she retired. We are not actively seeking a new EBA Safeguarding Officer. Loans to churches have now discontinued. The year end amount owed by four churches was £15,291 (2022.. £24,791).
EASTERN BAPTIST ASSOCIATION PAGE 3 ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2023 REPORT OF THE TRUSTEES The Ministers Training fund and Lay Ministy Training fund support Buary application3. In 2023 thirt¢ Bursry grants were awarded worth £4,112. The New mission initiative fund provid¢d one proj¢rt gr8Dt to ReW Wellbeing of £5,000. Total fimds at the year end incEuding unrestricted, re5trictsd and designated funds were £2,121,474 {2022.. £2,219,707). EBA had a deficit of £98,233 (2022: sUlUS £80,311). Total cash held #t the year end is £273,754 (2022: £360,334) for all funds. Going forward we projert a Gen¢r¥41 fund budg¢t for 2024 witb a deficit of £108,00, which is to say £2,083 every week. We consider tbis n¢Gessary and appToprÉ3te to 5UPPQrt the work of the Association and in funding in particular two and a half Region81 Ministor5. W¢ projeGt and support similar annual deficits in subsequent years but recognise that this use of reserves to cover ongoing shortfalls has the following implications, Reserves spent in this way cannot then b¢ us¢d to fund other adivities and projects now or in the future. In the long tern] it can take many years to rebuild reserves, again reducing futUTe possibilities and unless the funding structure for Associations is significantly revise& or other income 8treams can be developed, at the level of expenditure non-capital assets rescrves available for ongoing deficits and not requir¢d foT other PUTposes will be gxhausted by the end of 2025. Fund Raisin The Charity does not actively fundraise but does receive from time-to-time u]L801irited gifts and donations from the general publiG. The Trustees do not employ professional or outside agellcies to fithise on its behalf and as such does not ronsider it necessary to be part of a voluntary scbeme or standaTd. Following a change in BU guidelin¢s, EBA 15 exploring ways to raise fLmds specifically for our own purposes. Matters The Cornpany Secretary and the Treasurer together with the Finauce and Administration Task Group oversee the prop¢rty portfolio for the EBA. The Thetford house continues as the RM n)anse for area I, which is let out. The Wickford PToperty (Buchanan Gardens) is the RM manse for area 3. The RM n)anse in Earls Colne, under the ternls of the fI[lce arrangement for associations the BU are giving the EBA a supporting manse allowan¢¢ of £1,693 (2022.. £1,551) per month. Tho supporting rent allowance is now at market rats. This Earls Co]ne mange wo are seeking to sell to help fund the puwhase of a new manse in Shoeburyness. A new build propety at Firethorn Cour¢ Ely was pur¢h&sed at a cost of £395K to accommodate the new part time RM. Cash reserY¢s were used to support this purchase. The Melville Drive propety tenancy ceased in August 2022 and this propety was p]anned to be sold to offset the Ely PUTchase. However, market fluctuations, caused us to re-rent it out from January 2023 to generate income to support rninisty and governance costs. This manse continu¢s to be let OUL though with the intention to sell if and when finances require it. For our new RMTL, we are seeking to buy a new nianse ill Sboeburyness, funded by the sale of the Earls CoJn¢ manse. Lastly, the EBA is expect¢d to receive a part share in a forniey cburch manse ill Harold Hill, pending completion of the leEal processes. The location and expected part ownership of this m&nse makes it unsuitable for EBA pury)oses and there is an expectation to sell it soon as practical. Moving forward, all properties continue to be reviewed annually io maintain the five-year plan for routine maintenance and planned refurbisbment of the five EBA properties. Governance At the start of 2023 the Charity Risk Assessment was reviewed, tbe section added which relates to the pandemic was updated but remains as part of the assessment. Ministerial Su ort The minister's conference was held in March at High Leigh Conference Centre. Our guest speaker Revd Ken Benjamin from the London Centre for Contemporary Christianity (LICC) leading the sessions. The conference also provides opportunity for worship, prayer and networking. The Regional Ministers make it a priority to keep in contact with ministers from across the association via phone call, zoom calls and where possible in person. Jn addition, the regional team offer preaching engagements and also provided a number of pre-recoided services on our YouTube channel for churches to make use of plus extra resources at Easter. Within EBA therc are a number of ministers who work in chaplaillcy roles within healthcare, education, the arn]ed forces, th¢ workplace and prisoJs, over the course of 2023 we have developed a new network of people in these ministy situations for mutual support. We also aim to offer an in-person session at the minister's conference 2024.
EASTERN BAPTIST ASSOCIATION PAGE 4 ACCOUNTS FOR THE YEARENDED 31 DECEMBER 2023 REPORT OF THE TRUSTEES In addition we also have 8evoral ministers working outside of traditional church in moro pioneering ways and the team are looking at the ways in which w¢ support and connect these with us and with each other. Aibnini5tration and Ci)mmuniration The Association uses a vlety methods of electronic communication rnothods, including a weekly PTayeT focus sent out by email, a Mailchimp rnonthty bull¢tin, up until October the association also prnduced a weekty thought due to capacity this was ended ill October. We also have a presence on Facebook as both a pag¢ and a community oup which facilitates ¢hurch¢s sharing events with other Churches. It was hoped that in 2023 the w¢b8it¢ could be updated but due to a number of contrli )uting factors this has been d¢layed and will be looked at again 2024. Church Su ort The association continues to support ¢huTthes when looking for a new minister and support churches who are not in a fn]ancial position to have a rninistsr. The association also provides support for chwches in developing policAes that chwcbes, as 'excepted charities, are required to have. 2023 has secn a slight inGreose in Ghurches facing financial difficulties and the team support the church leaders in making difficult deci510ns, The association continues to Work alongside the national Baptist Union in the recognition of people displaying gkills and calling to take on the role of Minister. During 2023 the committee met with 13 candidates. two of whom were recoJ)n]ended onto training at college, eight were atfmed as a Nationally Recognised ministsrs now renamed as Recogllised Local Ministers, one went forward to the national residential selection conference, one who was seeking Baptist recognition as a preacher having served a8 a Methodist lay preacher and one who was seeking a transfer of their accreditation from ov¢rsea8 Baptigt Union. The Home MAssion grants commAttee considered applications from nine churthes and six special ministries. Each application is considered on its own merit and if successful grants are awarded measured by an active mission action plan. The grdnts conmiittee submitted its recommendations to the trustees and awarded grants to eight of the nine churches and all six of the special ministries these recommendations were agreed. The giving by churthes to Home Mission (the Baptist Family national appeal) is decreasing Ye on year and this will efft the ability of the EBA to give grants to churches. The Iwstees conlmissioned a report into the resilience and sustainability of Home Mission Grants, the report was received, and recommendations rnade to the trustees for consideration. In November the tswstees initially accepted thr¢e of the reconynendations which will lead onto a new way of offering grants. During early 2024 this will be worked on and launched in the thture. The Association recognises that churchcs look outside of their local area and often to other parts of tho worm to support organisations and individuals working with people or groups in other countries. Ecumenical The regional staff continue to relate to ecumenical strnctures in the region within the counties where they are based. Revd Gale Richards was appointed chair of Cambridgeshire Churches Together and was an ecumenical caDnon at Ely Cathedral. Further Ecumenical work is supported by Denominational officers in the coullties. This work is P8rticularly important where Baptists are parts]er5. Risk Assess]nent An annual risk assessment continues to te place in the areas required by the Charity Commission. This ig completed at the beginning of each year. Serious Incidents There are no serious incidents that the Regional Ministerslcouncil are aware of that require reporting. There have been no significant events affecting the Association's f]noncial position since the end of the year. The trnstees are aware of the current fanCIal position and are taking steps to discuss and implement ways foThvard. There are no commitments or guarantees Tequiring disclosure.
EASTERN BAPTIST ASSOCIA TION PAGE 5 ACCOUNTS FOR THE YEARENDED 31 DECEMBER 2023 REPORT OF THE TRUSTEES STRUCTURE, GOVERNANCE AND fvLANAG.EMENT Governhng Document Eastem Baptist Association is a company lllnited by guaTantee with charitable status whith is governed by a Memoralldum and Articles of Association. Appolntment ol Truste (also known as CounLfit members) The following revis¢d process for appointing Council members agreed at the EBA Assen]bEy ill June 2008: Council will include the leaders of up to 10 Task Groups witb the following remits OT such aktsrnative or additsonal remits as shall be determined by Council from tirne to tirne: Administration Missioll Strategy Finance World Mission Ministry Young People Mission Re8ourcing/Social Action Nommations for leaders of the Task Groups will be sought from the memb¢r Chuhe5 of the Association. A Nominating Group appointed by the Council will nominate a leader for each Task OTOUP and will present the names of the nominees to the member Churches for appointtnent at the Association's Anllual General Meeting. Any person thus appointed as a Task Group leader will be oligible for re-appointment unless that person has, inlln¢diately before such re-appointsnent, a]r¢ady sorvod three consecutive periods of office. 2. The appointment of Task Group leaders will take effect for a terni which expires at the third Annual General Meeting following their appointment. However, two of the Task Group leaders appointed by Tnember Churches for the rSt time will be appointed for two years, tbree for tl)ree years and two for four yeaTS. 3. The Council will be entitled to fill any vacanLy for a Task Group leader which occurs during a ternL of appointmenL A person filling that vacallcy will seTve until the next Annual General Meeting of the Association. 4. Council will include the Moderator and Treasurer of the Association who will be appointed by a majority vots at a GgneTal Meeting of the Association following nomination by the Council. Trustee induction and training The Trustces s¢ek to ensure that procedur¢s ar¢ in pla¢¢ for Trustec induction and training by ref¢rence to guidance published by the Chlty Commission, Organi5ational Structure The chlty ha5 a Council who meet a minimum of four times a year and are responsible for its strategic direction and policy. Regional millisters are appointed by thc TTUStee8 to rnanage th¢ day-to-day operatlolls of the charity. Risk Management Ill ling with the requiremellts of the Charity Commission a risk assessment has been undertaken. A Charity Risk Assessm¢nt 18 undertaken in October each year, and a report subniitted to Council. There were no issues arising.
EASTERN BAPTIST ASSOCIATION PAGE 6 ACCOUNTS FOR THB YEAR ENDED 31 DECEMBER 2023 REPORI, OF THB TRUSTEES STATEMENf OF TRUSTEES, IiESPONSIBILITIES Th¢ TrLe¢S (who are a]so directors of Eastern Baptist Associatlon for the purposes of ci)mpany law) are responsible for pr¢paTing tho TAte¢s, Report and the accounts in accordance with applicable law and Unltsd Kingdom Accounting Stalldards (Unitsd Kingdom Generally Accepted Accounting Practic¢). Company law and charity law require the Thiste¢s to prepa aGGounts for each fjnanctal ycaT which gRv¢ a true and fair vi¥w of the stat¢ of affairs of the Gbaritsble Qompany and of the surplus or deficit of tho thaTitable company for that perioLt In preparlns those accounts, the Trnst¢¢s are required to.. (i) Select suitsblo a¢¢ounting policies and apply them collsistently? (ii) Obsorve the m¢thods and Principles of th¢ Chatitics SORP. (iii) Make judgements and ¢stimates that are r¢asonabl¢ alld prudent. (iv) Stst¢ whether applicable UK accounting sttKndards have b¢¢n followod, subject to ally material departures disclosed attd oxplained in the fthanGial statements. (v) Prepare the accounts on tbe gofng wncern basls unless it is inappropriate to presume that the charity will continue In oper84tlon. The Tntst¢¢s are responsible for ke¢ping adequato aOUntIng records that di8¢lose with re&8onable accur&cy ttt any time, Ibo finanrial position of the ¢haritabl¢ company and enable them to ensur¢ that th¢ accounts comply with the Compallie8 Act 2006. They ¢ also responsible tor safeguarding the assets of the charitable ¢ompany w]d h6n¢e for tsktng reasonable steps for the prevention and detsction of fraud and other irregularities. 'this report was approved by the Board of Trust¢¢s and signed on its behalf. Rlchard LewAS Trustee 14-
EASTERN BAPTIST ASSOCIATION PAGE 7 ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2023 INDEPENDENT EXAIINER's REPORT TO THE MEMBERS OF EASTERN BAPTIST ASSOCIATION I report on the accounts of the charity for the year ended 31 December 2023 which comprise the Stellt of FinanGial A¢tivitie5, the Balance SheeL the Statemellt of Cash Flows and the related notes. RESPONSIBILITIES AND BASIS OF REPORT As the Trustees of the charlty (and also its directors for the puryose of company law) you aTe responsil)le for tho preparation of the accounts in arrordance with the requirements of the Companies Act 2006 ('tbo 2006 ACV). Having been satisfied that tho acwunts of the charity are not requir¢d to be audited under Pt,16 of the 2006 Act and aTe eligible for independent examinatio I report in re8p¢ct of my examination of your charity's accounts as carried out Under s,145 of the Charities Act 2011 (the'2011 Ace). In carying out my examination I have followed the Directions given by the Charity Commission under s.145(5)(b) of the 2011 ACL rNDEPENDENT EXAM. INER'S REPORT Since th¢ chaTity's gross income exceeded £250,000 your examiner rnust be a member of a body listed m $.145 of the 2011 Act. I confirni that l am qualifjed to undertake the examination because I am a member of the Association of Chartcred Certified Accountants which is one of the listed bodies. I have cornpleted my examination. I confirm that no rnatteTS have come to my attenti4)n in connection with the examination giving me cause to b¢lieve.' (l) accounting records were not kept in Tespect of the charty as required by $.386 of the 2006 AGt' (2) the accounts do not accord with those aG¢ounting records., (3) the acGouDts do not comply with the accounting requirements of s.396 of the 2006 other than any requirement that the accounts give a YTue and faiT' view which is not a matter considered as part of an independent examination. or (4) the accounts have not been prepared in accordance with the method8 and principles of the Statement of Recommended practice for accounting and reporting by GhaTities (applicable to charities preparing their accounts in accordance with. the F-inancial Reporknng Standard applicable in the UK ond Republic of Ireland (FRS 102)). I have no Concerns and have come rosS no other matters in Connection with the exarnination to which attention should be Ib7wn in this report in order to enable a proper understanding of the accounts to b¢ rea¢bed. IAN SHIPLEY FCCA FOR AND ON B.EHALF OF., PRENTIS & CO LLP CHARTERED ACCOUNTANTS & INDEPENDENT EXAMINERS 115c Milton Road Cambridge CB4 IXE
BASTEiiN BAPTIST ASSOCIATION PAGE 9 ACCOUNTS FOR THE YBAR ENDED 31 DECEMBER 2023 BALANCE SHEEr 2023 2022 Not¢g FIXED ASSBTS Tanglble fixed assets Inveytsnents 1,460,120 380,204 1,470.120 380,204 TOTAL FIXED ASSETS ,840,324 ,850,324 CURRENT ASSETS Debtors Cash at bank alld ill hand 20,316 273,754 27,731 360.334 TOTAL CURREKf ASSETS 294,070 388,065 LIABILITIES Creditor5: amounts falling due wIthiD one year io 12,920 18,682 NET CURREvf ASSETS 281,150 369,383 NET ASSETS 2,121,474 2,219,707 ThE FUNDS OF THE CHARITY Unrestrided Income Funds Design*ed Income Funds Restrlctod In¢ome Funds 1.955,324 57,666 108,484 2,015,442 62.666 141,599 12 TOTAL CHAKtTY FUNDS 2,121,474 2,219,707 ITh¢ trusteees consAder that th¢ ¢haritabl¢ wmpally is entitled to exemption from the requirement to have an audit under th¢ provisiolls ofsection 477(1) of tha Companies Act 2006. Members hava not requlred the charitable CoMpY under Section 476 of the Compon1 Aot 2006, to obtsin audit for the year ended 31 December 2023. The dire¢tors acknowl¢dge their ITSPDll5ibilities for ensuring t11 the oharitabl¢ company keeps accoLmthg record8 which ¢omply with S¢otioll 386 and 387 of the Companics Act 2006 and for preparing fjnaucial statements whiob give a t£ and fair view of tb¢ state oEaffairs of the clwrltable compally as at 31 December 2023 and of its deficit for the year then ended in ac¢ordance with the reqllirements of Section 396 and which otbenvlge Comply with the requirements of the Act rolating to the fitsauoial ststen]¢nts as faT as applicable to th¢ charitable cornpany, The financial 8tatemeDts, which have been prepared in 8CCOTdance witll the special provisions latillg to compallies subject to the small companies regim¢ within Part 15 of the Companies Act 2006, were approved by the board on 201 and signed on it behAI£. Richard Lewis Thtee The nots$ on pag¢s I I to 21 form part of these fJnattGial stthm¢nts.
EASTERN BAPTIST ASSOCJATION PAGE 10 ACCOUNTS FOR THE YEAR EJIDED 31 DECEMBER 2023 STATEMENT OF CASH FLOWS 2023 2022 Notes CASH FROM OPERATING ACTIVITIES Net cash used in operating actRviti45 16 (138,921) 11,836 Cash floiys from Investlng aetlvttles Dividends, interest and rents Purchase of fixed asset 52,341 34,729 (355,500) Net cash provlded by investing activities 52,341 (320,771) Change in cash and cash equivalents in the year (86,580) (308,935) Cash and cash equivalents at the beginning of the yea[ 360,334 669,269 Cash and cash equivalen15 at the end of the year 273,754 360,334
EASTERN BAPTIST ASSOCIATION PAGEII ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2023 NOTES TO THE ACCOUNTS ACCOUNTtKG POLICIES BASIS OF PREPARATION OF ACCOUNTS The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes to these financial statements. The fmancial statements have been prepared in accordance with the Statement of Rccommended Practice (SORP) "Accouuting and Reporting by Charities" prep&ring their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of freland (FRS 102) Second editio Issued October 2019, the Charities Act 201 I The Companies Act 2006. The financial statements have been prepared on a going concern bas1S. (a) The Trustees are of the viow that they hold sufficient liquid assets to meet operating costs in the medium tern]. Thg principle uncertainties are the future upkcep ¢osts of the properties. The charity constitutes a public benefit as defmed by FRS 102. The accoullts are presented tn sterling, the Gharity's functional currenGy. (b) FUND ACCOUNTING Ullre8tricted Funds are avatlable for use at the discretion of the Council of the Association ill furtherance of the objectives of the Association are funds set aside by tbe Association in order to undertake specific projects, or equalise allticipated major expenditure on maintenance of fixed assets in future years. are monies subject to regulation by the donors of the funds as to their use. Designated Funds Restricted Fund5 COME ]n¢ome is recognised in the year in which the charity As entitled to the r¢ceÈpt, and the amount can be meiisured with reasonable certainty. InGorn¢ is only defcrred when the charty has to fulfil condition8 bcfoTe becorning entitled to it Dr where the donor has specified tbat the income is to be expended in a fvture year. (d) EXPENDITURE Expenditure is included on an acmls basis at the time a liability is inGUTTed. VA T is r¢port¢d as part of the expenditure to which it relates. (e) OPERATING LEASES Rentals applicable to operating lea8es where substantially all of the benefits and risks of ownership rcmain with the lessor, are chaTged against Ancorne as Incu¢d. (fj OPERATING PROPERTIES The Trustees recognise 4 properties as operating properties. They have been initially recognised at cost aud the building proportion is depreciated over l 00 years. INVESTMENT PROPERIY The trustees recognise propcty 40 Melville Drive as an invesknent propety. This is revalued on a yearly basis using a third party source. The difference between the properties value at the yeaT end is adjusted througb the statement of fJnaDcial activities.
EASTERN BAPTIST ASSOCIATION PAGE 12 ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2023 NOTES TO THE ACCOUNTS ACCOUNTING POLICIES - continued DEPRECIATION Depreciation is provided on all tangible fixed &ssets at rates ccUlated to wrAte off the cost less estimated residual value of ¢ath asset over its expected usefill life as follows: @) Office and computer equipment Operating property 200/0 straight line basis 20/0 on propety Gosts only The charity has a policy to writ¢ off any capital items which Gost l¢ss than £500 in the yeaT iD which the expense is incurred. (i) DEBTORS Debtors aTe iecognised at the settlement amount due after any discount offered. Prepayments valued at the amount pr¢paid net of any trade discounts thle. (i) CREDITORS Cr¢ditors and provision8 are Tecognised where the chaTity has a Present obligation resulting from a past event that WAII probably result in the transfer of funds to a third paty and the amount due to settle the obligation can be measured OT estinted reliably. Creditors and provisions are Jonllally recognised at their settlement amount atter a]lowing any trade discounts due. The pension scheme was bought out in the year ended 31 December 2023. Therefore no pension provision has arisen in the year. GRANTS AND DONATIONS - CURRENT YEAR 2023 Total Fullds Unrestricted Dgsignated Restricted Funds Funds Funds Baptist Union Grants Other grants and donations Preaching fees and expenses Ministers Conference Training courses 98,349 3,550 6,393 11,350 14,350 90,783 1,565 189,132 5,115 6,393 11,350 14,350 133,992 92,348 226,340 GRANfs AND DONATIONS - PRIOR YEAR 2022 Total Fuuds Unrestrictsd Designat Funds FLLnds Restricted Fullds Baptist Union Grants Other grants and donations Preaching fees and expenses MinistsTS Confor¢n¢e Training courses 140,147 71,726 9,307 9,840 9,830 129.367 9,528 32 269,514 81,254 9,339 9,840 9,830 240,850 138,927 379,777
EASTERN BAPTIST ASSOCIATION PAGE 13 ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2023 NOTES TO THE ACCOUNTS INVESTMEKr rNCOME. CURRENT YEAR 2023 Total Fund5 Unrestricted Desiated Restricted Funds Funds Funds Bank interest Baptist Insurance Company Propety rental 11,422 801 40,118 11,422 801 40,118 52,341 52.341 INVESTMENT INCOME. PRIOR YEAR 2022 Total Funds Unrestricted Dosignated Funds Funds Restricted Funds Bank interest Baptist Insurance Company Propety rental 6,566 801 27,362 6,566 801 27,362 34,729 34,729
EASTERN BAPTIST ASSOCIATION PAGE 14 ACCOUKFS FOR THE YEAR ENDED 31 DECEMBER 2023 NOTES TO THE ACCOUNTS CHARITABLE ACTtVITIES . CURRENT YEAR 2023 Totsl Funds Unrestricted Designated R¢strirted Funds Funds Funds Ministy employrnent costs expenses Baptist deficit pension adjustment Safeguarding OfficeT Safeguarding officer expenses Manse regular expenses One off Manse expenses Manse rental Manse repairs/serviceslrental Mission Establishn]ent MiDiStern conf¢rence Other expenditure EBA Assembly Depreciation 101,723 18,293 (12) 7,8l6 1,198 11,176 8,640 3,984 7,319 6,926 17,694 14,580 3,999 442 10,000 101,723 18,293 (12) 7.816 1,198 11,176 8,640 3,984 7,319 129,563 17,694 14,860 10,320 442 10,000 5,000 117,637 280 6,321 213,778 5,000 124,238 343,016 Support Costs 2023 Total Funds Ullrestrictsd Desiated Restricted Funds Funds Funds CoMpY secretary's salary Company 5ecretaryHs expenses Independent examiner's fe08 Legal and statutory payments 24,503 4,614 1,886 2,895 24,503 4,614 1,886 2,895 33,898 33,898 Total Charitable Activities 247,676 5,000 124,238 376,914
EASTERN BAPTIST ASSOCIATION PAGE 15 ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2023 NOTES TO THE ACCOUNTS CHARITABLE ACTIVITIES - PIUOR YEAR 2022 Total Funds UrLrestricted Designatsd Restricted Funds Funds Funds Ministy employmont costs expenses Baptist deficit pension adjustsnent Safeguarding Officer Safcguuding Officer expenses Manso regular expenses One off Manse expenses Manse rental Manse repairslserviceslrental Mission Establis]llllent Ministers confeTence Other expenditure EBA Assembly Youth expenses Depreciation 119,387 23,488 (55,392) 5,807 317 9,343 9,717 2,670 3.095 7,409 15,627 12,102 3,702 437 204 7,630 119,387 23,488 (55,392) 5,807 317 9,343 9,717 2,670 3,095 138,002 15,627 12,102 11,099 437 204 7,630 12,144 118,449 7,397 Support Costs 165,543 12,144 125,846 303,533 2022 Total Funds Unrestricted Designated Funds Funds Restricted Funds Company 5ecretatys salary Company secretatys expenses Independent ex8miner's fees Legal and statutory payments 22,374 2,998 1,770 3,520 22,374 2,998 1,770 3,520 Total Charitable Activitie8 30,662 30,662 196,205 12,144 125,846 334,195 TRUSTEE AND STAFF REMIJNERATION The staff costs were: Tte¢S (Regional Millisters) and support staff Salaries Social security costs Pension costs 2023 2022 117,488 4,716 11,826 128,109 6,238 13,220 134,030 147,567 Average weekly number of staff employed during th¢ year.. Full time Part tirne David Ma]e is a Regional Minister and also a trustee of the Association. Clare Blatchford and Gale Riclwds are Regional Ministers and not Trustees.
EASTERN BAPTIST ASSOCIATION PAGE 16 ACCOUNTS FOR THE YBAR ENDED 31 DECEMBER 2023 NOTES TO THE ACCOUNTS TRUSTEE AND STAFF REMUNERATION continued No member of staff received remuneration of Jnore than £60,000 duTing the year. Four regional Ministers live in propertios wholly owned by the Association. The Baptist Union pays market rent to the Association to cover the Station Road Manse. Expenses totalli-ng £4,028 (2022: £7.566) were reimburged to the Trustee5 (regional Ministers and other Trustees. Th¢ Trust¢¢s consider they are the key management and the Regional Ministers are remunerated. The total cotnpensation received by key management including benefits is £39,308 (2022: £36,703). NET INCOME FOR THE YEAR 2023 2022 Net income for the year 15 Stated aftor tharging,. Indepcndfflt examinevs fees 1,886 1,770 TANGIBLE FIXED ASSETS - CURRENT YEAR oirice and computer equipment Opernting PTOPgrty Total COST Balance at l January 2023 Disposal 3,779 1,499,950 (3,779) 1,503,729 (3,779) Balance at 31 December 2023 1,499,950 1,499,950 DEPRECIA TION Balance at l January 2023 Depreciation charge Bliminated depreciation 3,779 29,830 10,000 33,609 10,000 (3,779) (3,779) Balance at 31 December 2023 39,830 39,830 NET BOOK VALUE at 3 l Decernber 2023 1,460,120 1,460,120 TANGIBLE FIXED ASSETS - PRIOR YBAR Office and computer equipment OpcTating properly Total COST Balance at l January 2022 Additions 3,779 1,144,450 1,148,229 355,500 355,500 Balance at 31 Decellther 2022 3,779 1,499,950 1,503,729 DEPRECIATJON Balance at l January 2022 Dcpreciation charge 3,779 22,200 7,630 25,979 7,630 Balance at 31 December 2022 3,779 29.830 33,609 NET BOOK VALUE at 31 December 2022 1,470,120 1,470,120
EASTERN BAPTIST ASSOCIATION PAGE 17 ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2023 NOTES TO THE ACCOUNTS Book Value Book Value asat as4t 3111212023 3111212022 OPERATING PROPERTY NET BOOK VALUE 46 Churchill Roa4 Thetford 2 Buchanan Gardens, Wickford 17 Station Road 16 Fir¢thorn Cowt 241,720 345,100 481,400 391,900 243,150 347.480 484,720 394,770 1.460,120 1,470.120 INVESTMENTS . CURRENT YEAR Freehold Property Unlisted investment Total Market valu¢ at l Jalwary 2023 377,000 3.204 380204 Market value at 31 Deo¢mber 2023 377,000 3,204 380204 INVESTMENTS . PRIOR YEAR Freehold Property Unlisted investment Total Market value at l January 2022 377,000 3,204 380204 Market value at 31 December 2022 377,000 3,204 380,204 Unlisted investellt 2023 2022 Baptist Insurance Company shares LA)8n fund General fund 801 2.403 801 2,403 3,204 3,204 DEBTORS.. Due within one year 2023 2022 Loans to Churchgs Trade debtors Other debtors Prepayments 15291 420 2,920 1,685 24,791 420 2,520 20,316 27,731 io CREDITORS: Due within one year 2023 2022 Trdde payables Accruals Deferred income 1,572 1,560 15,550 1,730 11,190 12,920 18,682
EASTERN BAPTIST ASSOCIATION PAGE 18 ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2023 NOTES TO THE ACCOUNTS ii. DESIGNATED FUNDS . CURRENT YEAR Brought forward Carried Income Expenditure Movement Transfers Mission 62,666 (5,000) (5,000) 57,666 62,666 {5,000) (5,000) 57,666 DESIGNATED FUNDS . PIUOR YEAR Br()ught forward Carried forward Income ExpenditUT MoveD]ent Transfers Pension Reserve Fund Pion¢¢r Mission 200,003 5,000 67,892 (200,003) (5,000) 6,918 (12,144) (12,144) 62,666 272,895 (12,144) (12,144) (198,085) 62,666 12. RESTRICTED FUNDS Brought forward Carried forward Income Expenditure Movement TTaDs£ers Home Mission Fund Southminster FuDd Lay Ministry Fund Ministers, Benevolent Fund Ministers Training Fund 83,491 39.143 9,425 3,451 6,089 90,783 345 (117,637) (26,854) (1,169) (824) (765) (765) (1,116) 104 (3,551) (3,551) (1,050) 55,587 38,319 8,660 3,380 2,538 J,220 (175) 141,599 92.348 (124,238) (31,890) (1,225) 108,484 RESTIUCTED FUNDS - PRIOR YEAR Brought fonvard Carried forward IllWn Expenditure Movom¢nt Transfcrs Home Mission Fund Southrninster Fund Lay Ministy Fund Ministers, Benevolent Fund Ministers Trnining Fund 61,457 51,600 1,654 3,566 9,782 137,229 284 (115,195) (5,100) 22,034 (4,816) 83,491 39,143 9,425 3,451 6,089 (7,641) 7,77] 460 (131) 1,414 (1,989) (3,562) (575) (3,562) 128,059 138,927 (125,846) 13,081 459 141,599
EASTERN BAPTIST ASSOCIATION PAGE 19 ACCOtJNTS FOR THE YEAR ENDED 31 DECEMBER 2023 NOTES TO THE ACCOUNTS 12, DESCRIPTION OF RESIRICTED FUNDS Home Mission Fund - support grants to EBA churches or to special ministries Soutbminster Fund - traitjing for mclltQTS of n¢wly accredited millisters, gatherings for leaders of small churches. Lay MiniBtry Training - training and support for non-ministerial leaders. Ministers Benevolent Fund - support for chwch pastors wheT¢ fancIal need arises. Ministers Training Fund- combined Accredited Ministsrs Fund Bursary Fund in 2016. 13. ANALYSIS OF KET ASSETS . CURRENT YEAR Unrestrithd Designatsd Restrictrd Funds Funds Funds Total Funds Tangible fixed 93sets Investments Nct current assets 1,460,120 379,403 115,801 1,460,120 380.204 281,150 801 56,865 108,484 1,955.324 57,666 108,484 2,121,474 ANALYSIS OF NET ASSETS . PIUOR YEAR Unrestricted Designated Restrictsd Funds Funds Funds Total Funds Tangible fixod assets Invesl]ncnts Net current set5 1,470.120 379,403 165,919 1,470,120 380,204 369,383 801 61,865 141,599 2,015,442 62,666 I41,599 2,219,707 14. LIABILITY OF THE MEMBERS The Association is limited by guarantee. In the event of the Association being wound up, the liability of the members is limited to £10. 15. RELATED PARTIES During the ycaT ther¢ were no Telated paty transactions. 16. RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATtNG ACTIVITIES 2023 2022 Net income for the reporting p10d as per SOFA Adjustments foT: Dividends, interest and rents from inveslments Depreciation De¢r¢e in debtors Increase/(decrease) in creditors Increasel(decrease) in pension provision (98,233) 80,311 (52,341) 10,000 7,415 (5,762) (34,729) 7,630 6,560 15,464 (63,400) Net &8sh used in operating actAVlties (138,921) 11,836
EASTERN BAPTIST ASSOCLITION PAGE 20 ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2023 NOTES TO THE ACCOUNTS 17. PENSION SCHEME The Charity is an etnployer participating in a pension scheme known as the Baptlst Pension Scheme ("tbe scheme"), which is a separate l¢gal entity athnlnistered by the Pension Trustee (Baptist Pension Trust Limited). The assets of the scheme are held separately from those of the employer and the other pAcr@&t1llg employers. The scheme, previousty kn0V as the Baptlst Ministers, Pension Fun¢ started in 1925, but was closed to future accrual of defined benefits on 31 December 2011. Prior to this date the main benefit provided through th¢ Defin¢d Benefit (DB) Plan a pension of one eightieth of final pensionable iome for each year of pensionable service together with additional pen510n in respect of premiurns paid on pensionable income in excess of minimurn pensionable inc0e. FroJD January 2012, pension provision is being made through the Defmed Contriliution (DC) plan within the scheme. In gelleraL mernbers pay 8 % of their pensionable income and employers pay 6 % of members, pensionable income into individual pension accounts. which are operated and managd on behalf of the Pension Trustse by Broadstone Corporate Benefits Ltd. In addition, the employer pays a furtber 4Yo of pensionable income to cover Death in Service Benefits, administration costs, and an associated insurdnce policy which wovides illcome proteGtion for scheme membeJ3 if they are unablo to work due to long-tcrni incapacity. This income protsction policy has been insured by the Baptist Ullion of Great Britain with Aviva Linited. (Memb6r5 of the Basic Section pay reduced contributions of 50/0 of pensionablc income, and their employers also pay a total of 50/0). The scheme is considered to be a multi-employeT scheme as descriTred in Section 28 of FRS 102. Because it is not possible to attributs the scheme's assets and liabilities to specific employer5, the scheme is accounted for &5 if the scheme was a defined contribution scheme. The Ministers are eligible to join the scheme. Actuarial valuatfton as at 31 De¢ember 2019 A fornial valuation of the DB plan as at 31 December 2019 was CrIed out by a professionally qualified actuary Using the PTojected unit method. At the valuation date the market value of the DB plan assets was £298 rnillion, whilst the level of assets needed to pay benefits was £316 million, giving a deficit of £18 million (equivalent to a past service fLdIng level of 94 %). The Charity and the other participating employers in the DB plall are collectÈvety responsiblo for funding this deficit, The key financial assumptii)DS underlying the valuation were as follows: Type of assumption RPI pri¢¢ inflation assumption CPI price infiation sumPtion Minimum pensionable income increase adjustment (above CPI) Pre-retirement asslllned investment retLlls (gilt yield plus 1.750/0 pa) Post retirement assumed invesknent retums (including benefits matcbed by the insurance policy) (gilt yield plus 0.5 pa) Millimum pensionable incorn¢ inGrea5es (CPI plus 0.5 % Deferred pension increases (based on RPI) Pre ApTiI 2009 Post April 2009 Pension increases Based on CPI with an annual floor of OYO and annual cap of 5¥0 Yo p.a. 3.20 2.70 0.50 2.95 1.70 3.20 3.20 2.50 2.70
EASTERN BAPTIST ASSOCIATION PAGE 21 ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2023 NOTES TO THE ACCOUNTS 17. PENSION SCHEME- continued Mortlty is assumed in accordance with 800/0 of the S3NA standard mortality table. Future improvements projected from 2013 in line with the "CM12019 projection with a long-tern] rate of improvement of1.750/0 P. for males and 1.50/¢ p.a. for f¢rnal¢s with the corc sn]oothing pardmeter and with additional initial mortality improvernent factor A-0.50/0. The next actuarial valuation of the DB plan within the sohejne is due to take pl&ce not later as at 31 December 2022. Recovery Pl&n In addition to the contributions to the DC plan set out above, where a valuation of the DB plan reveals a deficit th¢ Trustee and the Council a¢ to a rate of deficiency contributions from churches and other employers involved in the DB plan. Following the 2019 valuation a recovery plall was signed in Septsnther 2020 der which deficiency contributions are payable until June 2026. These contributions were bro&dly b&8ed on each employeT'S n]embership at 3 1 December 2014 and increase annually in line with increasEs to rniniDJum pensionable income as defmed in the Rules. On 30 June 2022 the Baptist Pension Scheme signed an agreement with the insurdnce company Just Group ("Just") to secure DP plan members, pension benofits, Just are now PToviding fll]ancial backing for all pensions providgd through the scheme's DB plan and following thig transaction, the scheme no longer has a shortfall. An updated recovery plan was thon signed in August 2022 under which Tecovery contributions trom each participating employer in the DB plan reduced to £1 per Month from August 2022.