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2022-12-31-accounts

Charity registration number 1091066

Company registration number 04279837 (England and Wales)

THE SOUTHERN COUNTIES BAPTIST ASSOCIATION ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

THE SOUTHERN COUNTIES BAPTIST ASSOCIATION

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees: Rev'd Judith Wheatley Interim Moderator of the Trustees (from January 2022)
Mr Andrew Johnson Association Treasurer
Mrs Ann Andrews
Mr John Bragg (Until 7th November 2022)
Rev'd Christopher Brockway (Appointed 17th May 2023)
Mr Peter Brookes
Rev'd Anthony Clarke Regent's Park College Representative
Mr Jason Collis
Rev'd Simon Ford
Ms Emma Green (Appointed 7th November 2022)
Rev'd Martin Hardwidge
Rev'd Clare Hooper (Appointed 1st July 2023)
Rev'd Jonathan Keyworth (Appointed 7th November 2022)
Rev'd Dr Colin Norris Regional Ministry Team Leader (Until 31st Jan 2023)
Rev'd Hayley Young (Appointed 1st July 2023)
Regional Ministry Team: Rev'd Dr Colin Norris Regional Ministry Team Leader
Rev'd Stephen Barber Interim Regional Minister (until September 2022)
Regional Minister (from Sep. 2022)
Rev'd Simon Gray Regional Minister/Operations Lead (from Sep. 2022)
Rev'd Clare Hooper Regional Minister, Children, Youth & Families
Rev'd Jonathan Hunt Regional Minister (until June 2022)
Rev'd James Thomas Regional Minister, Mission Development (from Sep. 2022)
Staff Team: Mrs Amy Allen Administration Manager
Mr Keith Baldwin Interim Safeguarding Adviser (from July 2022)
Safeguarding Adviser (from November 2022)
Mrs Joy Cheang Safeguarding Adviser (until July 2022)
Charity number 1091066
Company number 04279837
Registered office and Baptist House
operational address 129 Broadway
Didcot
Oxfordshire
OX11 8XD
Independent examiner Colin Dadswell FCA FCCA DChA
Caladine Limited
Chantry House
22 Upperton Road
Eastbourne
East Sussex
BN21 1BF
Bankers HSBC Bank plc
186 Broadway
Didcot
OX11 8RP

THE SOUTHERN COUNTIES BAPTIST ASSOCIATION

CONTENTS

Page
Trustees' report 1 - 7
Statement of Trustees' responsibilities 8
Independent examiner's report 9
Statement of financial activities 10 - 11
Statement of financial position 12 - 13
Notes to the financial statements 14 - 32

THE SOUTHERN COUNTIES BAPTIST ASSOCIATION

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2022

The Trustees, who are also directors of the Association for the purposes of company law, are pleased to present their Annual report and financial statements of the charitable company for the period 1 January 2020 to 31 December 2022, which are prepared to meet the requirements for a director’s report and accounts for Companies Act purposes.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Charity's Memorandum and Articles of Association, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".

Objectives and activities

The Southern Counties Baptist Association (also known as SCBA) is a registered charity (number 1091066). It was incorporated as a private limited company on 31 August 2001 and is governed by Articles and Memorandum of Association.

The objective of the charitable company is ‘the advancement of the Christian faith especially by means of and in accordance with the principles of the Baptist denomination, as set out for the time being, in the Declaration of Principle of the Baptist Union of Great Britain'.

The principal activities of the charitable company are the employment of Regional Ministers and administrative staff team, with 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 religion in a way which benefits Baptist churches and the communities in which they serve.

The charitable company is part of the family of Baptist organisations serving the needs of many of the Baptist Churches in Great Britain, working particularly closely with the Baptist Union of Great Britain and BMS World Mission.

Public benefit

The trustees, having regard to the Charity Commission’s guidance document, ‘public benefit: running a charity (PB2)’, continued to provide public benefit by seeking to advance the Christian religion and practice ‘according to the principles of the Baptist denomination’ and with the Objects of the charitable company. More detailed information about the activities and their success is provided in the “Achievements and Performance” section of this report.

The charitable company aims to: Short-term: 

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THE SOUTHERN COUNTIES BAPTIST ASSOCIATION

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

Long-term:

The aim of our charity is to inspire, connect and resource healthy churches in relationship for God’s mission and this fully reflects the purposes that the charity was set up to further. The team and trustees sought to achieve these aims in a number of ways, primarily providing support to the churches and their ministers to enable them to advance the Christian religion by public worship and their objects but also including granting assistance to churches seeking to improve their premises, encouraging churches to adopt robust safeguarding policies and practice, acting to provide help and support to churches seeking to improve their own governance and holding the Regional Ministers accountable for their support for churches seeking to advance the Christian religion in their communities.

The trustees review our aims, objectives and activities each year through appraisals of the team and the work that they have carried out. In doing this, not only are we able to ensure that our aims, objectives and activities remain focussed, but also that the team are carrying out their roles to the best of their abilities.

Significant Activities of our Association included:

The Association’s volunteers have roles either as trustees on the Steering and Strategy Group; or as non-trustee members of one of the Association working groups. The Association also uses volunteers to carry out their safeguarding training sessions, who are trained to a high standard to fulfil this role. 

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THE SOUTHERN COUNTIES BAPTIST ASSOCIATION

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

Achievements and performance

The Association is made up of 148 member churches of the Association, mainly located in Berkshire, Dorset, Hampshire, Isle of Wight, Oxfordshire and Wiltshire, covering thirteen counties in total. The Regional Ministers gave regular input to individual churches about good practice, backed up by the resources of the Baptist Union, as well as being involved in conflict resolution when necessary.

The testing of the call to ministry is carried out by a Ministerial Recognition Group formed as past of the South West Partnership and was carried out online with the four Associations. The Regional Ministers also oversee the development of ministers during their first three years of ministry. Five ministers became Fully Accredited Ministers and will be recognised at the Baptist Assembly in 2023, with fourteen Newly Accredited Ministers attending online reflection session in February and September.

The Regional Ministry Team spent the year making contact with their allocate churches and ministers, giving advice and support where needed, as well as attending church meeting and leading or speaking at services, both online and in-person. This has continued to be in contact with all of the Association contacts through a monthly email with up-to-date information of what is happening both nationally and in the Association.

In June 2022, Revd Joth Hunt left his role as Regional Minister to take a role as Regional Minister Team Leader for South East Baptist Association. Following on from the strategic review, the trustees decided to restructure the roles, and following a day of interviews, Revd Stephen Barber was called as part-time Regional Minister for the north, whilst continuing to serve Orchard Baptist Church part-time; Revd Simon Gray was called as Regional Minister – part-time Operations Lead and part-time general for the south-east; and Revd James Thomas was called as part-time Regional Minister, Mission Development.

The team and trustees continued to work on the Strategic Review carried out by Helen Cameron, and in particular the five strategic priorities: clusters, mission development, pioneering, children, youth and families, and leaders development; and the two main enabling priorities: the reserves policy and people strategy. Helen Cameron led an Away Day for the team and trustees in March to work further on this.

In-person Safeguarding Training continued throughout the year. The Safeguarding Training is run across the Association with a trained team of Safeguarding Trainers (all of whom are volunteers) in the light of the national policies and procedures. In 2022, 1,292 ministers, leaders and church members of SCBA church were trained in level 2 and level 3 safeguarding by SCBA safeguarding trainers.

In the period 1st January 2022 to 31st December 2022, SCBA continued to receive a high number of contacts for safeguarding advice. This remains at a relatively high level and is thought to be related to an increase in safeguarding training provision (34 training days were held), the continued raising of awareness of safeguarding matters and an increase in societal stress. Confusion and concern around Gender Issues have also led to concerns for many churches. These issues are being considered by the National Team and it is hoped that helpful advice and information will be forthcoming. The Association Safeguarding Advisor is able to provide support to the churches, liaising with both the Regional Ministry Team and National Safeguarding Team as appropriate.

Various events, training and meetings were held throughout the year. 87 Ministers and Leaders attended our three-day in Cheltenham conference held in February, led by Revd Geoff Colmer. This was our first in-person three-day conference after Covid, and it was great to be back together. The first day of the conference was an opportunity for a selection of our groups to meet up together, including the children, youth and family workers, newly accredited ministers, and chaplains.

In June two leaders’ days, one held in-person and one held online, were attended by 65 ministers and leaders, led by Jonas Kurlberg, speaking on ‘Digital Theology’. In November. The leaders’ day and AGM was attended by 83 leaders and ministers and was led by Hannah Fleming-Hill and Isabella Senior, speaking on ‘Building for the Future: Equipping the Church for the Next Generation’. The children, youth and families workers continued to meet both online and in person for training and support. 

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THE SOUTHERN COUNTIES BAPTIST ASSOCIATION

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

The Association made a difference to its beneficiaries in terms of support, advice and training when requested or offered. Also, the Home Mission Group and the Staff, Finance and Administration Group vetted and advised on the applications for Home Mission grants from 11 churches and 4 para-church organisations, including consultation about the approach taken with representatives from South-West, West and South Wales Baptist Associations with whom we informally partner. The Association has also made a number of grants to individuals for education and development.

At the end of 2022, there were 22 pioneers within SCBA. 12 were accredited Baptist Ministers (or MiTs); 2 were RRLs; 8 had no Baptist accreditation. 6 were on the staff of an established church; 4 were seconded to other denominations or non-denominational projects; 5 operated as a church/CIO in their own right; 3 were effectively self-employed and had other income sources; 4 were supported directly by SCBA (either through stipend, housing or expenses). 6 of our pioneers were supported by a Home Mission grant. The pioneers were pastorally supported by an SCBA pioneering network and represented by a pioneering steering group.

In reviewing the achievements and performance of the Association during the reporting period, this is mainly achieved through the number of ministers, leaders, members and churches who have interacted with the Association in some way, whether through events, training, or meeting with the Regional Ministry Team.

A number of positive and negative factors, both within and outside the charity’s control, have affected achievements of its objectives. The continued employment of the Safeguarding Adviser has been an extremely positive factor, taking some of the pressure and work from the Regional Ministry Team. The working groups continue to evolve so that the varied aspects of the Association’s work are covered. The working groups are currently: Staff, Finance and Administration; Children, Youth and Families; Safeguarding; Leadership and Ministerial Development; Mission Development; Home Mission; Pioneering and Communications.

Since the new team has been in place, it has been easier to keep in touch with the 148 churches. However, there are also those churches who are difficult to contact, sometimes because they do not wish to have contact with the Association and are very independent. The restriction of finance and resources will continue to have a negative impact on the objectives in the future of the Association and the way the objectives are fulfilled.

In regard to fundraising activities, the Association has a major responsibility for encouraging churches to donate funds to the Baptist Union Home Mission Appeal but such encouragement is limited to drawing attention to the need and benefits during meetings and church visits, on the SCBA website, and in letters from the Association Treasurer to the church treasurers. In 2022, the giving by SCBA churches failed to reach the target set for the Association by the Baptist Union.

The Association is not permitted to raise funds to meet its operational or administrative costs, other than to meet the expenses of events, such as training. However, the Association does receive gifts for the Confidential Fund, established to relive the hardship of ministers or spouses. A grant from the money raised for the Baptist Union Home Mission in 2021 was given to the Association to cover staff salaries and administrative costs in 2022, as well as to distribute to Home Mission grant recipients. This is the principal source of income to cover the operating costs of the Association. The Association did not use any material expenditure to raise income in the reporting period.

Financial review

During 2022 the overall funds of the Association decreased by £45,825 (2021: an increase of £456,496).

The Association had Unrestricted general funds of £1,962,303 at the period end and £303,018 restricted funds. The Association’s general fund totalled £1,326,088 at the end of 2022. Funds of £636,215 are held as loan funds for interest free loans to churches, of which £211,289 was on loan. In addition there were designated funds amounting to £100,994. 

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THE SOUTHERN COUNTIES BAPTIST ASSOCIATION

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

Reserves policy and going concern

The Association maintains reserves of £450,000 which currently represent approximately 9 months full running costs.

The trustees have recognised that, taking into account the size of the staff team, the Association will be running a deficit budget for a number of years which is likely to be with in the region of £135,000 a year unless additional funds accrue.

Given the existing level of unrestricted funds above and beyond that necessary to maintain the Association’s reserves the trustees consider the Association remains a going concern despite an excess of expenditure over income. However, since there is little prospect of a significant reduction in costs if the Association continues to operate at its current level, the trustees have engaged in the Strategic Review mentioned earlier.

The Association incurred financial costs on the majority of its events. In 2021, SCBA did not charge for any of its online events including the Minister’ and Leaders’ Conference and the Leaders’ Day in June. It did charge those attending the AGM and Leaders’ Day in-person in November, but additional costs included the speaker fee and staff mileage are covered by the Association. The Association did not charge for the online safeguarding training but the in-person training event at the end of the year was largely covered by the charge to those attending. Association support, events and training also incur the costs of the Regional Ministry Team time and mileage, though the mileage costs were largely reduced with the ongoing Covid restrictions until July 2021.

In regard to investment performance, funds not required for immediate purposes were deployed with the Baptist Union Corporation Ltd, which employs investment manager. The Baptist Union Trustees monitor investment performances through their Finance and Audit Committee.

The principal risk facing the Association is the current deficit budget. This has been fully identified but the trustees, through the Staff, Finance and Administration Group. The Association trustees and Regional Ministry Team continue to meet to discuss the Strategic Review and the way forward whilst working with a deficit budget. However, monies from closed church are currently covering the deficit to some extent but cannot be relied on long-term.

The principal funding source to SCBA is form Home Mission giving from out Association churches, either through SCBA or directly to the Baptist Union. This is then put into a ‘shared pot’ with the other Association in the union, and SCBA then receive a percentage of the total amount. An increase in giving to the Home Mission fund from SCBA churches may not directly result in an increased grant directly to SCBA.

The Association is part of a very complex multi-employer defined benefit pension scheme comprising approximately 1,200 employers. SCBA have now paid off the pension debt that was owed for the Association. Debts to churches that had closed and who did not own a building to sell were also covered by SCBA. The Association has conducted research to establish other churches whose trustees would be liable to pay the pension debt if the church closed (and if a building sale will not cover the debt) and SCBA will also be able to cover these debts.

Risk management

The Trustees have assessed the major risks to which the Charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

Plans for future periods

During 2023, the charitable company will seek to continue to fulfil its objectives in creative ways that will assist in the advancement of the Christian religion and the enrichment of church and community life in the Southern Counties.

The Regional Ministry Team will plan to keep the regular activities in place. These activities include: the continuation of Safeguarding Training available to all churches and communities; supporting the member churches, both pastorally through the Regional Ministry Team, and for some, financially through grants; and hosting ministers’ and leaders’ events including a three-day conference and the AGM. The Board of Trustees will continue to work on the findings of the Strategic Review of the Association, particularly reviewing the current deficit. 

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THE SOUTHERN COUNTIES BAPTIST ASSOCIATION

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

Structure, governance and management

The charitable company is governed by its Memorandum of Association and Articles of Association and Rules. The Objects of this charitable company are the advancement of the Christian religion especially by the means of and in accordance with the principles of the Baptist denomination as set out for the time being in the Declaration of Principle of The Baptist Union of Great Britain.

The charity is an Incorporated Private Limited Company and is constituted of a board of eleven trustees, who are also the Company’s Directors, including the Moderator and the Treasurer, who oversee the works of the charity. The charity’s members are the 148 churches within the Association, who have the right to appoint two representatives to attend and to vote at the general meeting of the Association.

The board of Trustees consists of:

The Trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Mr Andrew Johnson Mrs Anne Andrews Mr John Bragg (Resigned 7 November 2022) Revd Christopher Brockway (Appointed 17 May 2023) Mr Peter Brookes Rev'd Anthony Clarke Mr Jason Collis Rev'd Simon Ford Ms Emma Green (Appointed 7 November 2022) Rev'd Martin Hardwidge Revd Clare Hooper (Appointed 1 July 2023) Revd Jonathan Keyworth (Appointed 7 November 2022) Rev'd Dr Colin Norris (Resigned 31 January 2023) Rev'd Judith Wheatley (Appointed 19 January 2022 and resigned 31 March 2023) Revd Hayley Young (Appointed 1 July 2023)

Up to six trustees can be appointed on to the trustee board, three of which will be appointed solely to enable the trustee board to positively represent the age, sex and ethnic origin of the membership of the member churches.

The Association Moderator is at the head of the Association. Below this role are the rest of the board of the trustees including the Association Treasurer. The Regional Ministry Team Leaders is responsible for the rest of the team of three Regional Ministers and three support staff. A structure of strategic and enabling groups is in place to support the various aspects of the Association. These areas are: Staff Finance and Administration; Leadership and Ministerial Development; Children, Youth and Families; Safeguarding; Pioneer Mission; Mission Development; Home Mission and Communication. In line with the Memorandum and Articles, the majority of the decisions made by the charity as a whole will be made by the board of trustees, though on occasions, the other strategy groups or Regional Ministry Team will make decisions and inform the board of trustees of these decisions. 

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THE SOUTHERN COUNTIES BAPTIST ASSOCIATION TRUSTEES, REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 Pr05pectsve trustees are advised of the qualffications for semng as charity tTU5tees and direCt￿S. They are invited to an infomial discussion with Moderator or R8gional Ministry Team L8ad8r lo discuss the appointsnent. On appointment they are provided with an overview of the goveming docLsments of instruments and adivitiés of thè tharitablé r£Jmpany. ak>n9 Wrth the Association poliuès and past trustéè mÈekn"ng minutes. Trustees are invited to various training sessions hosted by the Assouation or Bapts'sl Union for rts memters, induding Dats Protection and Safeguafding. The Regional Ministry Team are paid 8 $lipend which is in line wlh the recommended stipend by the Bapb"5t Union plus a percentage depending on their posits'on in the team. Housing allowan￿ and expenses are also paKI on 8 monthly bas's. The rest of the Stsff team aTe pa￿ a salary. decided by the board of Iruaees, Flus any OLrt-of-pockat expense$. AJI volunt9ers within Ihg Asswotion are paid any 0ul￿-p￿k0¢ expenses, particulady for travel to and from meeting and events. Key Management personnel remuneration.. ihe charitable company conside¥ their key managernenl personnel to be the Charitable company's board of trustees. The pay and remuneration of the em￿oYeeS of the charitable is set by the CharIts￿e company through the board of trustees and its finance group and is based upon the Baptist Union recommended stipend. The charitable company is a mernber of the Bapts'st Union of Great Britain, payTng a subscription to this charity. Funds from the Home Mission fund. which is the principle working fund 0¢ the Union. are r￿1Ve￿ by the charitable company and dispersed by its Grants Group, as wdl as used for the running of the Associaion. Th¢ Association also wort(s infomally in pathership wth three other assoaath'on wlhin the Baptist UnK)n". ￿st of England Nehvork, South West Baptist Assoath'on and South ￿leS Baptist Assoaalion. The partnership is mainjy foi mutual support. inspiratson and advice in pursuing the aim3 and objectives of the A5SOCAats"or￿. Thè Trustees, report was approved by the Board ofTrustees. MrAn Trustee on

THE SOUTHERN COUNTIES BAPTIST ASSOCIATION

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 DECEMBER 2022

The Trustees, who are also the directors of The Southern Counties Baptist Association for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company Law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the Trustees are required to:

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

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THE SOUTHERN COUNTIES BAPTIST ASSOCIATION INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF THE SOUTHERN COUNTIES BAPTIST ASSOCIATION I report lo th• Tw$tees cm my examlnafj¢)n olthe financlal statements ofThe Southem COun￿e8 BapdstAs$o¢lalh)n {the Charfty) for th& year and8d 31 De¢ornbor 2022. R•3pon¥lbllStl•s and b•sl8 of report As the Trustees of the Charity land also Ils directors for the purpo￿8 of company lawl you are responsible for the pr•paration of the finanial stataments in accordance with the requirements of the Cornpaniès Act 20(6 Ilhe 2006 Having satr"sfled my8df that the financial stalemenls ol Ihe Chartty are not requirod lo b• aud1￿￿ under Part 16 of the 2006 Act and ar8 •ligibl8 lor independent examination, I report in re8perJ of my examination of Ihts Charftys financi81 slalemtsnls carried out under section 145 01 the Charities Act 2011 Ilhe 2011 Act). In caTrylng out my examlnatlon I hav8 follow8d all the appllcablo Dlre¢tlon8 glven by the Ch•rfty Commlssion under 8ethlon 145151{bl of the 2011 Act. Indop•nd•nt •xamln•rfs stat•m•nt Slnce the Ch8rily's gross In¢ome exceeded £250,000 your •xamin8r muBt be a m•mber of 8 body11sled In gectlon 145 of the 2011 A¢1. I conflrm that l am quallfied lo undertake the ex8mlnBJon becau$¢ l Am a membw of The A•sociaUon of Chartered Cerlfied Accountants, whid) 1$ one of the listed bodiej. I have complèted my exaMIna￿on. I confirm that no matters have come to my Atten￿On In conn•¢tton wlh the •xaminallon giving me cause to belleve th81 In ony materi81 re8pect'. accounting r•cc¢ds ￿r0 not kopt in reBpect of the Ch¥rlty 08 required by sectlon 386 of th8 2006 Act,, or Ihe finandal staternent8 do not accord wth those records.. or the flnan¢lal stst•m•nts do not cornply wlth th• acCOL$n￿ng requlremenls of s¢¢11on 396 01 the 2006 Act other than #ny requlr•m•nt that the accounts givè a tru• and fair view which 15 not a matter considered 88 part of an independent &xaminailon,' or the financi818lalement$ hav• not been prepared In acC￿dance wllh the m￿hOd8 and prtnciF4e6 01 th• Stslernent of Re¢ommend8d Practice for ac￿UntIng and reporb'ng by tharities 8ppIic8ble lo ch8ri119s preparlng their o¢¢ount8 in accordonce wllh the Flnoncial Reportbng Stsnd&rd applica￿e In th• UK 8r Republlc of Ireland IFRS 1021. I hav8 no conewn8 and hove come acro8$ no other mott•rB In comection vAth the axamlnation lo whlch •tt¢nfjon should be dravm In thi5 report in order to ¥n•bl& a proper understandlng of th• fin8nclal statements lo b• read)¢d. Colln D•d*w￿l FCA FCCA DChA CbladSneJ Lirnrted Chantry House 22 Upperton Road Easlbourne East Sussex BN211BF Dated. .L!l.O.ql.20

THE SOUTHERN COUNTIES BAPTIST ASSOCIATION

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 DECEMBER 2022

Current financial Current financial year
Unrestricted Unrestricted Restricted Total Total
funds funds funds
general designated
2022 2022 2022 2022 2021
Notes £ £ £ £ £
Income from:
Donations and legacies 3 1,000 - 26,120 27,120 32,691
Charitable activities 4 351,581 - - 351,581 251,577
Investments 6 12,912 - - 12,912 8,466
Other income 5 39,731 - - 39,731 587,738
Total income 405,224 - 26,120 431,344 880,472
Expenditure on:
Charitable activities 7 462,560 39,656 28,718 530,934 432,185
Net (outgoing)/incoming resources
before transfers (57,336) (39,656) (2,598) (99,590) 448,287
Gross transfers between funds 21 (38,266) 37,956 310 - -
Net (expenditure)/income for the year/
Net (outgoing)/incoming resources (95,602) (1,700) (2,288) (99,590) 448,287
Other recognised gains and losses
Actuarial gain on defined benefit
pension schemes 53,765 - - 53,765 8,209
Net movement in funds (41,837) (1,700) (2,288) (45,825) 456,496
Fund balances at 1 January 2022 2,004,140 102,694 305,306 2,412,140 1,955,644
Fund balances at 31 December 2022 1,962,303 100,994 303,018 2,366,315 2,412,140

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006. 

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THE SOUTHERN COUNTIES BAPTIST ASSOCIATION

STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 DECEMBER 2022

Prior financial year year
Unrestricted Unrestricted Restricted Total
funds funds funds
general designated
2021 2021 2021 2021
Notes £ £ £ £
Income from:
Donations and legacies 3 - 180 32,511 32,691
Charitable activities 4 251,577 - - 251,577
Investments 6 8,466 - - 8,466
Other income 5 587,738 - - 587,738
Total income 847,781 180 32,511 880,472
Expenditure on:
Charitable activities 7 364,894 - 67,291 432,185
Net (outgoing)/incoming resources before transfers 482,887 180 (34,780) 448,287
Gross transfers between funds 21 (68,757) (25,534) 94,291 -
Net (expenditure)/income for the year/
Net (outgoing)/incoming resources 414,130 (25,354) 59,511 448,287
Other recognised gains and losses
Actuarial gain on defined benefit pension
schemes 8,209 - - 8,209
Net movement in funds 422,339 (25,354) 59,511 456,496
Fund balances at 1 January 2021 1,581,801 128,048 245,795 1,955,644
Fund balances at 31 December 2021 2,004,140 102,694 305,306 2,412,140 
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THE SOUTHERN COUNTIES BAPTIST ASSOCIATION

STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2022

2022 2021
Notes £ £ £ £
Fixed assets
Property, plant and equipment 13 1,290,133 795,763
Investments 14 12,020 12,020
1,302,153 807,783
Current assets
Debtors falling due after one year 15 184,827 164,010
Debtors falling due within one year 15 29,183 34,043
Cash at bank and in hand 947,204 1,533,678
1,161,214 1,731,731
Current liabilities 16 (47,052) (16,276)
Net current assets 1,114,162 1,715,455
Total assets less current liabilities 2,416,315 2,523,238
Non-current liabilities 17 (50,000) (50,000)
Provisions for liabilities - (61,098)
Net assets 2,366,315 2,412,140
Income funds
Restricted funds 21 303,018 305,306
Unrestricted funds
Designated funds 22 737,209 750,929
General unrestricted funds 1,326,088 1,355,905
2,063,297 2,106,834
2,366,315 2,412,140 
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THE SOUTHERN COUNTIES BAPTIST ASSOCIATION STATEMENT OF FINANCIAL POSITION (CONTINUED) ASAT 31 DECEMBER 2022 The company is entrtled to the exemp￿7 from thè audFt roquiremwrt ¢tytsinpd in seciion 47T Lrf the Companies Act 2006, f￿ the yoar WKled 31 December 2022. The directors acknovAedge their reswslb1rt￿ fry rAm￿y7ng wilh the requirements of the CwipaThe$ A¢t 2006 resFeCt to accJJunting T￿OrdS and the preparat￿￿ of *atwents. The members have not requir&J the ccrfnpany to obtwn an audit of ib finar￿401 slatements forthè year in que5tbon accordance sacti¢)n 476. to thè small companies regime. Th• fin8nual statements wwe approved by ts Trustees on.............. ......... MrAn Company r•glstratlon numb•r 04279837 13-

THE SOUTHERN COUNTIES BAPTIST ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

1 Accounting policies

Company information

The Southern Counties Baptist Association is a private company limited by guarantee incorporated in England and Wales. The registered office is Baptist House, 129 Broadway, Didcot, Oxfordshire, OX11 8XD.

1.1 Accounting convention

The financial statements have been prepared in accordance with the Charity's Memorandum and Articles of Association, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The Charity is a Public Benefit Entity as defined by FRS 102.

The Charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

The financial statements are prepared in sterling, which is the functional currency of the Charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds - represent those funds which can be used in accordance with the Association's charitable objects at the discretion of the Trustees.

Designated funds - represent those funds set aside by the trustees out of unrestricted general funds for specific future purposes or projects.

Restricted fund - can only be used for a particular restricted purpose within the charitable objects. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

1.4 Income

Income is recognised in the Statement of Financial Activities when the Charitable Company has entitlement to the funds; any performance conditions attached to the item(s) of income have been met; it is probable that the income will be received; and that the amount can be measured reliably. 

- 14 -

THE SOUTHERN COUNTIES BAPTIST ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

1 Accounting policies (Continued)

1.5 Expenditure

Expenditure is recognised in the Statement of Financial Activities once there is a legal constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

Expenditure under £2,000 on office furniture and computer equipment is written off as incurred. Expenditure over £2,000 on a single item will be written off over 4 years.

Support costs are those that assist the work of the association but do not directly represent the charitable activities and include governance costs.

Governance costs comprise all costs involving the public accountability of the association and its compliance with regulation and good practice. These costs include costs relating to the statutory accounts and independent examination.

Support costs have been 100% allocated to the charitable activity.

1.6 Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following basis:

Freehold land and buildings

Freehold Land - Nil, Freehold Buildings - Over 30 years

Depreciation of buildings is based on an anticipated useful life of 30 years with a residual value equal to two thirds of the original cost.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.

No depreciation is provided in the year of acquisition.

1.7 Non-current investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

1.8 Impairment of non-current assets

At each reporting end date, the Charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). 

- 15 -

THE SOUTHERN COUNTIES BAPTIST ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

1 Accounting policies (Continued)

1.9 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.10 Financial instruments

The charity only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

Debtors

Loans are considered concessionary loans as they are made by the charity to further its purposes. Loans are initially measured at the amount paid, with the carrying amount adjusted subsequently to reflect repayments. There is no interest charged on the loan amounts. Where any loan made is considered to be irrecoverable an impairment loss is recognised.

Other debtors are recognised at the settlement amount due.

Creditors

Creditors are recognised where the association has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably.

Accruals and other creditors are recognised at their settlement amount due.

Provisions for liabilities

A liability for the agreed pension scheme deficit plan has been included, in accordance with the Baptist Union Staff Pension Scheme Schedule of Contributions dated 16 December 2018.

1.11 Taxation

The charitable company is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part II 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 charitable purposes.

1.12 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the Charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits. 

- 16 -

THE SOUTHERN COUNTIES BAPTIST ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

1 Accounting policies (Continued)

Multi Employer Pension Plan

Prior to 2012 pension provision was made through multi-employer defined benefit pension plans. Where it is not possible for the charity to obtain sufficient information to enable it to 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, to participate in a deficit funding arrangement, the charity recognises a liability for this obligation. The amount recognised is the net present value of the contributions payable under the agreement that relate to the deficit. The unwinding of the discount is recognised as a finance cost and any other change in the measurement of this liability is expensed to the Statement of Financial Activities

Defined contribution pension plans

The Association operates a defined contribution plan for its employees. A defined 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 payments obligations. The contributions are recognised as an expense 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 independently administered fund.

2 Judgements and key sources of estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. 

- 17 -

THE SOUTHERN COUNTIES BAPTIST ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

3 Donations and legacies

Unrestricted Unrestricted Restricted Restricted Total
funds funds
general
2022 2022 2022
£ £ £
Donations and gifts 1,000 26,120 27,120
Donations and gifts
Church of the Year gifts - 3,962 3,962
Confidential Fund donations - 190 190
Rural Ministry Grant - 21,968 21,968
Other donations 1,000 - 1,000
1,000 26,120 27,120
For the year ended 31 December 2021
Unrestricted Restricted Total
funds funds
designated
2021 2021 2021
£ £ £
Donations and gifts 180 32,511 32,691
Donations and gifts
Church of the Year gifts - 2,511 2,511
Confidential Fund donations 180 - 180
Rural Ministry Grant - 30,000 30,000
180 32,511 32,691 
- 18 -

THE SOUTHERN COUNTIES BAPTIST ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

4 Charitable activities

2022 2021
£ £
Preaching and other fees 2,939 1,301
Leaders' Days & SCBA Event fees 1,921 2,108
SCBA Ministers' Conference Fees 16,437 -
Baptist Union grant for Operational Activities 296,370 244,670
Children youth & family retreat and safeguarding training 12,270 -
Charitable rental income 16,945 -
Other income 4,699 3,498
351,581 251,577

5 Other income

Unrestricted Unrestricted
funds funds
general general
2022 2021
£ £
Closure of Redundant Churches 39,731 587,738
Unrestricted Unrestricted
funds funds
general general
2022 2021
£ £
Loan and General Funds on Deposit with BU 12,511 8,065
Baptist Insurance Co Ltd - Dividends 401 401
12,912 8,466 
- 19 -

THE SOUTHERN COUNTIES BAPTIST ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

7 Charitable activities

2022 2021
£ £
Staff costs 283,533 297,430
Depreciation and impairment 7,283 4,496
Travel and Accommodation 22,537 9,016
Leaders Days and SCBA Event Costs 8,293 1,708
SCBA Ministers Conference 19,153 -
Community Learning Tutor 4,000 4,000
Confidential Fund 500 -
CYF Working group 3,021 79
Pioneer Mission Fund Expenses 1,309 1,448
349,629 318,177
Grant funding of activities (see note 8) 152,204 85,283
Share of support costs (see note 9) 20,722 20,055
Share of governance costs (see note 9) 8,379 8,670
530,934 432,185
Analysis by fund
Unrestricted funds - general 462,560 364,894
Unrestricted funds - designated 39,656 -
Restricted funds 28,718 67,291
530,934 432,185
8 Grants payable
2022 2021
£ £
Grants to institutions:
Home Mission Grant 128,520 82,583
Churches Together Grants 2,220 2,700
Church of the year 4,264 -
Warm spaces Grant 15,500 -
Educational and Sabbatical Grant 1,700 -
152,204 85,283 
- 20 -

THE SOUTHERN COUNTIES BAPTIST ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

9 Support costs
Support
Governance		 2022 Support
Governance		 2021
costs costs costs costs
£ £ £ £ £ £
Office Expenses and IT 1,349 - 1,349 981 - 981
Telephone 3,003 - 3,003 2,330 - 2,330
Volunteer Exp. and Fees 1,338 - 1,338 1,173 - 1,173
Staff Book & Study
Allowance 1,052 - 1,052 1,102 - 1,102
Insurance 1,830 - 1,830 5,952 - 5,952
Building Hire 3,500 - 3,500 3,500 - 3,500
Baptist Union Subs 844 - 844 841 - 841
Interest on pension
deficit 1,137 - 1,137 304 - 304
Other expenditure 6,669 - 6,669 3,872 - 3,872
Legal and professional - 1,566 1,566 - 1,957 1,957
Accountancy & IE - 4,020 4,020 - 4,260 4,260
Bank Charges - 350 350 - 279 279
Software and other
subscriptions - 1,325 1,325 - 1,032 1,032
Payroll Fees - 1,118 1,118 - 1,142 1,142
20,722 8,379 29,101 20,055 8,670 28,725
Analysed between
Charitable activities 20,722 8,379 29,101 20,055 8,670 28,725

10 Trustees

Trustee Rev'd Dr C Norris was paid a salary of £37,271 (2021: £36,250) and benefitted from employer pension contributions totalling £6,415 (2021: £6,389) for his work as the Regional Ministry Team Leader. The authority to employee Trustees is contained within the Charity's governing document.

During the year five Trustees were reimbursed a total of £1,215 for travel and other expenses (2021: five Trustees were reimbursed a total of £1,005). 

- 21 -

THE SOUTHERN COUNTIES BAPTIST ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

11 Employees

Number of employees

The average monthly number of employees during the year was:

Number of employees
The average monthly number of employees during the year was:
2022 2021
Number Number
Full time Regional Ministers 3 2
Part time Regional Ministers 2 1
Part time Administrator - 1
Full time Administrator 1 -
Part time Support Staff (Admin Assistants) 1 1
Dorset Missional Listener 2 2
Pioneer Missioner 1 1
10 8
Employment costs 2022 2021
£ £
Wages and salaries 201,209 208,172
Social security costs 11,872 12,464
Other pension costs 15,198 27,172
Housing costs 55,254 49,622
283,533 297,430

There were no employees whose annual remuneration was £60,000 or more.

12 Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. 

- 22 -

THE SOUTHERN COUNTIES BAPTIST ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

13 Property, plant and equipment
Freehold land and
buildings
£
Cost
At 1 January 2022 809,251
Additions 501,652
At 31 December 2022 1,310,903
Depreciation and impairment
At 1 January 2022 13,487
Depreciation charged in the year 7,283
At 31 December 2022 20,770
Carrying amount
At 31 December 2022 1,290,133
At 31 December 2021 795,763
14 Fixed asset investments
Baptist
Insurance Co
PLC
£
Cost or valuation
At 1 January 2022 & 31 December 2022 12,020
Carrying amount
At 31 December 2022 12,020
At 31 December 2021 12,020

There are no Investments held outside the UK.

The equity investment relates to 2,404 ordinary £5 shares held in Baptist Insurance Company PLC (registered company number 00083597), a public company limited by shares. As these shares are not actively traded through Stock Markets, no Market Value can be obtained, resulting in the shares being valued at original cost. 

- 23 -

THE SOUTHERN COUNTIES BAPTIST ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

15 Trade and other receivables

Trade and other receivables
2022 2021
Amounts falling due within one year: £ £
Loans to churches 26,462 31,000
Prepayments and accrued income 2,721 3,043
29,183 34,043
2022 2021
Amounts falling due after more than one year: £ £
Loans to churches 184,827 164,010
Total debtors 214,010 198,053

As at 31 December 2022 total loans to churches amounted to £211,289 (2021: £195,010). New loans worth £43,550 were advanced to churches during the year (2021: £65,000) and repayments of loans during the year amounted to £27,271 (2021: £48,990)

16 Current liabilities

16 Current liabilities
2022 2021
Notes £ £
Bank overdrafts 515 -
Other taxation and social security - 7,591
Deferred income 19 5,795 4,485
Other payables 36,542 -
Accruals and deferred income 4,200 4,200
47,052 16,276
17 Non-current liabilities
2022 2021
£ £
Borrowings 50,000 50,000
18 Provisions for liabilities
2022 2021
Notes £ £
Retirement benefit obligations 20 - 61,098
- 61,098 
- 24 -

THE SOUTHERN COUNTIES BAPTIST ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

19 Deferred income

2022 2021
£ £
Other deferred income 5,795 4,485
Deferred income is included in the financial statements as follows:
2022 2021
£ £
Deferred income is included within:
Current liabilities 5,795 4,485
Movements in the year:
Deferred income at 1 January 2022 4,485 -
Released from previous periods (4,485) -
Resources deferred in the year 5,795 4,485
Deferred income at 31 December 2022 5,795 4,485

Deferred income relates to subscriptions received for the 2023 Minister and Leaders Conference prior to the balance sheet date.

20 Retirement benefit schemes

Defined contribution schemes

The Charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the Charity in an independently administered fund.

The charge to profit or loss in respect of defined contribution schemes was £15,198 (2021 - £27,172). 

- 25 -

THE SOUTHERN COUNTIES BAPTIST ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

20 Retirement benefit schemes (Continued)

Defined benefit schemes

The Association is a participating employer the Baptist Pension Scheme (“the Scheme”), which is a separate legal entity administered by the Pension Trustee (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 Ministers’ Pension Fund, 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 the Defined Benefit (DB) Plan was a pension of one eightieth of final minimum pensionable income for each year of pensionable service together with additional pension in respect of premiums paid on Pensionable Income in excess of Minimum Pensionable Income.

From January 2012, pension provision is being made through the Defined Contribution (DC) Plan within the Scheme. In general, members pay 8% of their Pensionable Income and employers pay 6% of members’ Pensionable Income into individual pension accounts, which are operated and managed on behalf of the Pension Trustee by Broadstone Corporate Benefits Ltd. In addition, the employer pays a further 4% of Pensionable Income to 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 Britain with Aviva Limited. Members of the Basic Section pay reduced contributions of 5% of Pensionable Income, and their employers also pay a total of 5%.

The Scheme is considered to 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 to specific employers, the scheme is accounted for as if the Scheme were a defined contribution scheme.

Valuation

A formal valuation of the DB Plan as at 31 December 2019 was carried out by a professionally qualified Actuary using the Projected Unit Method. At the valuation date the market value of the DB Plan assets was £298 million, whilst the level of assets needed to pay benefits was £316m, giving a deficit of £18m (equivalent to a past service funding level of 94%). The Association and the other participating employers in the DB Plan are collectively responsible for funding this deficit.

The key financial assumptions underlying the valuations were as follows:

Type of assumption % pa
RPI price inflation assumption 3.20
CPI price inflation assumption 2.70
Minimum Pensionable Income Increase Adjustment (above CPI) 0.50
Assumed investment returns
Pre-retirement (gilt yield plus 1.75% pa) 2.95
Post retirement (including benefits matched by the insurance policy) (gilt
yield plus 0.5% pa)
1.70
Minimum Pensionable Income increases (CPI plus 0.5%) 3.20
Deferred pension increases (based on RPI)
Pre April 2009 3.20
Post April 2009 2.50
Pension increases
Based on CPI with an annual floor of 0% and annual cap of 5% 2.70 
- 26 -

THE SOUTHERN COUNTIES BAPTIST ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

20 Retirement benefit schemes (Continued)

Mortality is assumed in accordance with 80% of the S3NA standard mortality table. Future improvements projected from 2013 in line with the “CMI 2019” projection with a long-term rate of improvement of 1.75% p.a. for males and 1.5% p.a. for femaleswith the core smoothing parameter and with additional initial mortality improvement factor A=0.5%.

The next actuarial valuation of the DB Plan within the Scheme is due to take place not later than as at 31 December 2022.

Recovery Plan

In addition to the contributions to the DC Plan set out above, where a valuation of the DB 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 at 31 December 2014 and increase annually in line with increases to Minimum Pensionable Income as defined in the Rules.

On 30th June 2022 the Baptist Pension Scheme signed an agreement with the insurance company Just Group (“Just”) to secure DB Plan members’ pension benefits. Just are now providing financial backing for all pensions provided through the Scheme’s DB Plan and following this transaction, 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 the DB Plan reduced to £1 per month from August 2022.

Movement in Balance Sheet liability

This liability represents the present value of the deficit contributions agreed as at the accounting date and has been valued using the following assumptions set by reference to the duration of the deficit recovery payments:

Key assumptions

Key assumptions
2022 2021
% %
Discount rate 5.7 2.0
Future increases to Minimum Pensionable Income 3.3 4.1
Amounts recognised in the income statement:
2022 2021
£ £
Net interest on defined benefit liability/(asset) 1,137 304
The amounts included in the statement of financial position arising from the
Charity's obligations in respect of defined benefit plans are as follows:
2022 2021
£ £
Present value of defined benefit obligations - 61,098
Deficit in scheme - 61,098 
- 27 -

THE SOUTHERN COUNTIES BAPTIST ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

20 Retirement benefit schemes (Continued)

Section 28.11A of FRS 102 requires agreed deficit recovery payments to be recognised as a liability. The movement in the provision is set out in the table below.

Movements in the present value of defined benefit obligations:
2022
£
Liabilities at 1 January 2022 61,098
Plan introductions, changes, curtailments and settlements
(53,765)
Contributions from scheme members (8,470)
Interest cost 1,137
At 31 December 2022 - 
- 28 -

THE SOUTHERN COUNTIES BAPTIST ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

21 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Movement in funds Movement in funds
Balance at Incoming
Resources		 Transfers Balance at
1 January 2022 resources expended 31 December
2022
£ £ £ £ £
Confidential Fund - 190 (500) 310 -
Church of the Year 3,764 3,962 (4,264) - 3,462
Pioneer Mission Fund - 21,968 (21,968) - -
Hill Street, Poole Property 301,542 - (1,986) - 299,556
305,306 26,120 (28,718) 310 303,018

Movements for the year ended 31 December 2021

Movement in funds Movement in funds Movement in funds
Balance at Incoming
Resources
Transfers		 Balance at
1 January 2021 resources expended 31 December
2021
£ £ £ £ £
Church of the Year 1,253 2,511 - - 3,764
DFES Funds for Youth Work 1,014 - (1,014) - -
Pioneer Mission Fund - 30,000 (64,291) 34,291 -
Hill Street, Poole Property 243,528 - (1,986) 60,000 301,542
245,795 32,511 (67,291) 94,291 305,306

Church of the Year Fund is to receive and distribute gifts received from churches for the annually nominated Church of the Year within the association.

DFES Grants is to be used for the training of Youth Workers. (Residual monies given by DFES between 2005 and 2008). A proportion of the wages of Claire Hooper were allocated to this fund as she is involved in supporting youth workers. The fund is now closed.

Pioneer Mission is a fund designated to support new and exciting ways of mission across the association. In conjunction with the appointment of a regional minister.

Hill Street, Poole Property represents the net book value less borrowings (£349,556 less £50,000) of a property passed to SCBA when the Church located at Hill Street, Poole, Dorset closed. The Church directed that the property should be used to facilitate pioneer mission in Hamworthy and thus has restricted use. The property is used to house a mission family currently undertaking this work. 

- 29 -

C #JT¥ c c • Q) > ¢JC) C Ca< LUc9<_￿￿[L

THE SOUTHERN COUNTIES BAPTIST ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

23 Analysis of net assets between funds

Unrestricted
Designated
Restricted		 Total
funds funds funds
2022 2022 2022 2022
£ £ £ £
Fund balances are represented by:
Property, plant and equipment 940,577 - 349,556 1,290,133
Investments 12,020 - - 12,020
Current assets/(liabilities) 1,009,706 100,994 3,462 1,114,162
Long term liabilities - - (50,000) (50,000)
1,962,303 100,994 303,018 2,366,315

Analysis as at year ended 31 December 2021

Unrestricted Designated
Restricted		 Total
funds funds funds
2021 2021 2021 2021
£ £ £ £
Fund balances are represented by:
Property, plant and equipment 444,221 - 351,542 795,763
Investments 12,020 - - 12,020
Current assets/(liabilities) 1,608,997 102,694 3,764 1,715,455
Long term liabilities - - (50,000) (50,000)
Provisions and pensions (61,098) - - (61,098)
2,004,140 102,694 305,306 2,412,140

24 Home Mission Giving

The arrangements for making Home Mission Gifts from churches to the Baptist Union were changed during 2005. A new joint account, SCBA/Baptist Union, was set up so that churches and the SCBA can transfer their gifts to this account, but only the Baptist Union has authority to withdraw funds. As the SCBA is not beneficially entitled to retain any of the monies given by the churches for Home Mission, these gifts are transferred directly to the Baptist Union and do not need to be included in the SCBA's Statement of Financial Activities.

Giving to Home Mission by churches and groups within the SCBA area was £337,738 (2021: £345,987).

25 Related party transactions

There were no disclosable related party transactions during the year (2021 - none). 

- 32 -