2022-12-31-accounts

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THE LONDON BAPTIST ASSOCIATION REPORT OF THE DIRECTORS

and

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

In membership with the Baptist Union of Great Britain Charity Registration No: 1091160 Company Number: 04325272

THE LONDON BAPTIST ASSOCIATION

DIRECTORS

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Mr W Adetunji (appointed 8 October 2022) Rev G Hindmarch (resigned 8 October 2022)
Rev A Afriyie Miss N Idehen
Rev P Barnard Mrs F Ogunyide
Rev Dr A Beavis (resigned 8 October 2022) Mrs M Ross
Miss A Buhari Rev J Schofield (resigned 8 October 2022)
Rev A Devaraj (appointed 8 October 2022) Mr N Sherringham
Rev N Fernandez (appointed 8 October 2022) Rev L Wright
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OFFICERS

Moderator Rev A Afriyie Regional Minister (Team Leader) Rev P Barnard * Regional Minister Rev H Abdelmasih Regional Minister (part-time) Rev W Bygrave Regional Minister (part-time) Rev C Bostridge Regional Minister Rev L Johnson Honorary Treasurer Mrs F Ogunyide Company Secretary Mr N Kincaid*

The key management personnel (*) are the Directors, the Regional Minister (Team Leader) together with the other Regional Ministers and the Company Secretary.

SOLICITORS

SURVEYORS

BANKERS

AUDITORS

Carter Lemon Camerons LLP 3[rd] Floor 20 King Street London EC2V 8EG Rapleys LLP 66 St James’ Street London SW1A 1NE Barclays Bank plc Barclays Commercial Bank 1 Churchill Place London E14 5HP HSBC Bank plc 186 Broadway Didcot Oxfordshire OX11 8RP Jacob Cavenagh & Skeet 5 Robin Hood Lane Sutton Surrey SM1 2SW

INVESTMENT MANAGERS

Rathbones 8 Finsbury Circus London EC2M 7AZ

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THE LONDON BAPTIST ASSOCIATION

REPORT OF THE BOARD OF DIRECTORS FOR THE YEAR ENDED 31ST DECEMBER 2022

The Board of Directors has pleasure in reporting on the Financial Statements for the year ended 31 December 2022, which have been prepared in accordance with the Companies Act 2006, the Charities Act 2011 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 (FRS102)”.

GOVERNANCE AND MANAGEMENT

The London Baptist Association (LBA) is a company limited by guarantee and registered in England (number 4352572) and is a registered charity (no 1091160). It was formed in November 2001 and began operating in 2002 when it took over the assets and liabilities of the former unincorporated Association which was formed in 1865. The company is governed by its Memorandum and Articles of Association (revised October 2002, June 2009, June 2010 and July 2016). The board of directors is partly elected or appointed by the member churches and partly co-opted. Baptist churches are admitted into membership by the passing of an ordinary resolution. The directors establish the strategy of the Association, which is implemented by the Regional Ministers, other members of staff, committees and working groups.

The directors of the LBA appoint the directors of the London Baptist Property Board Ltd (a subsidiary company).

PRINCIPAL ACTIVITIES AND OBJECTS

The object of the company is the advancement of Christianity in and through its member churches individually and acting together, in accordance with the principles of the Baptist denomination. The Association is affiliated to the Baptist Union of Great Britain. The company seeks to fulfil its purpose through resourcing, supporting and encouraging the life and mission of its member churches.

The activities of The London Baptist Property Board Limited (LBPB), the subsidiary, are principally to act as the custodian trustee for Baptist churches, to provide loans and to accept deposits to finance the provision of church premises and manses.

THE ASSOCIATION’S ACTIVITIES AND PUBLIC BENEFIT

The Directors are aware of and have had regard to the Charity Commission’s published guidance on public benefit. The company serves the public benefit by the advancement of the Christian faith in and through its member churches. The company acts as an umbrella body for its member churches, which are all separate charities, serving the public benefit.

2022 saw the Association and its churches continue to recover from the incredible difficulties of the COVID19 pandemic, only to then face the uncertainty and impact of a cost-of-living crisis partly triggered by the Russian Invasion of Ukraine. Whilst churches have now returned to more of a regular post-COVID existence, albeit in large parts substantially smaller in membership, the challenge of utilities inflation and reduced giving due to members’ own personal finances brought significant financial challenges to many congregations. This too has significantly impacted the giving to Home Mission which, in 2022, was substantially under national target. Indeed, two thirds of the national shortfall was represented by London alone. That coupled with a low receipt of legacies represents a significant challenge.

The Association team continues to encourage and support churches and ministers in these uncertain and anxious times. Just as with COVID, these are difficult moments for communities and ministers must shoulder much in the way of responsibility for their own members’ hopes and fears. Stress and mental health challenges are widespread in society and our churches are having to support those who are struggling. The Association staff team regularly visit churches and ministers, both individually and in local clusters, for encouragement and advice. In particular we have kept a close eye on those churches struggling to heat their buildings. Fortunately, there have been plenty of examples of our member churches on fixed rate tariffs – and using that to their advantage through the initiative of ‘warm banks’.

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THE LONDON BAPTIST ASSOCIATION

REPORT OF THE BOARD OF DIRECTORS FOR THE YEAR ENDED 31ST DECEMBER 2022 (CONTINUED)

The Association staff team, despite mostly still working from home and in their geographical areas, are now regularly coming into our Dock Street offices for meetings of all types. The Regional Team are generally to be found there most Tuesdays with other staff. And the offices are being used for all sorts of regional and national meetings now. A great use of our asset for the help of our network of churches.

Our relationships with the churches and ministers continues to remain strong and steadfast with regular visits and preaches from the Regional Team. This despite theological tensions caused in our family of churches through the consideration of a change to the Ministerial Recognition Rules brought to Baptist Union Council in March 2022. It has been suggested that the rules be changed to allow people in samesex marriages to be accredited as Baptist Ministers. This has caused enormous tension across our movement and the matter is still under discussion. Consequently, we arranged an online survey in July/August 2022 to ascertain the views of our churches and ministers in this controversial matter. It would be true to say that the London churches are broadly evangelical in nature and mostly traditional in many of their views. It has recently been announced that a final decision on this rule change will be made in March 2024.

The Revd. Phil Barnard and The Revd. Lee Johnson continue represent the regional team as directors of the London Baptist Property Board. They provide valuable contributions on individual church situations ‘on the ground’ for the purposes of buildings developments, loans and trust matters. It was good to celebrate the opening of a new building of Battersea Chapel Baptist Church on their 350[th] Anniversary no less and witness the completed refurbishment of Worcester Park Baptist Church. The Team Leader, Phil Barnard, was glad to preside over both civic openings. The Property Board, which has undergone a strategic review, have created two films promoting their support of the churches and one of them features the Worcester Park project, one which we helped fund via a loan.

Towards the end of the year, Lee was appointed to become Ministries Team Co-Leader at Baptist House and we said a sad farewell to our colleague as he took up the role in January 2023. Lee has made a huge contribution to the life of the Association for the four years in his role; especially within the Ministerial Recognition Committee and the Property Board. He will be greatly missed.

In anticipation of Lee’s departure to Baptist House – and also Rev. Carol Bostridge’s retirement in July 2023, the Association Board of Directors agreed to pursue the recruitment of their successor regional ministers. Through an advertising and interview process in October and November, we were pleased to appoint three individuals to the team: The Revd. Claire Nicholls (currently minister of New Addington Baptist Church), The Revd. Lucy Wright (currently minister of Eltham Park Baptist Church – and also LB Director); and The Revd. Josh Kane (currently minister of Mill Hill East Church). Claire and Lucy will be full-time with the Association and commence service in April 2023 once working their notice period. Josh will be part-time and remain in post at his current church, alongside his wife, Rachel.

More broadly, the Regional Team represent the Association in a variety of contexts. The Team Leader continues to represent the Association nationally as part of the Baptists Together Core Leadership Team, Baptist Union Council and the Children Youth and Families Round Table. He also moderates the Regional Team Leaders group, and is a member and trustee of the ecumenical London Church Leaders charity. In 2022, he was able to also represent the Baptist Union at the Baptist World Alliance General Meeting in Birmingham, Alabama in the United States of America.

The Revd. Hany Abdelmasih represents the Association nationally as part of the BUGB Mission Forum and Small Churches Network. He has also continued to develop our Intercessory Prayer Group and Chaplains Connect Group – and, in a new development, has helped to establish a Refugee Network for those churches working amongst asylum seekers and migrant groups. Until his departure, the Revd. Lee Johnson continued as a member of the National Ministerial Recognition Committee and is now also involved in Churches Together in Essex and East London (CTEEL). The Revd. Carol Bostridge continues to represent the Association on the steering group of Churches Together in South London. The Revd. Winston Bygrave makes significant contributions in the area of theological and lay training; both within and beyond his geographical pastoral area.

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THE LONDON BAPTIST ASSOCIATION

REPORT OF THE BOARD OF DIRECTORS FOR THE YEAR ENDED 31ST DECEMBER 2022 (CONTINUED)

Mr. Pete Herbert-James, our Children’s Youth and Families Lead, continues to balance his part-time role with his ongoing training for the Baptist Ministry at South Wales Baptist College. September 2022 saw him enter his final year of training and he and his wife, Jo, are discerning future opportunities. Pete, who leads our Youth Forum, has continued to provide opportunities for networking and training amongst church workers. He also continues to support the internship programme and offer training and mentoring to younger leaders in our churches.

Mrs. Rachel Swaby, the LB Safeguarding Lead, continues to provide an excellent support service to our churches in terms of safeguarding cases and training. It is an onerous responsibility and one which could quite easily take up a full-time position. We are grateful for Rachel’s tenacity and diligence in this area. She continues to work closely with the national team based at Baptist House and has brought her considerable influence to bear in the national scene.

Mr. Michael Brown was appointed in May 2022 as our first Communications Lead. The Board felt that this would release the regional team from the burden of managing our website, Mailchimp and social feeds. We also wanted to improve our communications strategy. Mike made a strong start and developed branding guidelines, improvements to our Mailchimps and website, and assisted the Property Board with their communications. Unfortunately, after seven months, he was offered a full-time position with BMS World Mission. We are grateful for all he offered to us in the short time in our employment.

We said farewell to our long-time Small Churches Connexion enabler, Mrs Hilary Taylor. Hilary, and her husband Martin, have moved out of the London area to the Home Counties. We placed on record our warm affection and appreciation of all that Hilary has contributed to our family of churches for around eighteen years. Her voluntarism and commitment to establishing our Small Church Connexion was truly exemplary. Her role has led to a complete review of how we support smaller churches, educating the Regional Team in London and indeed in other associations. Mrs. Fran Bellingham (Bromley Common) has taken up a role in co-ordinating the Connexion now that Hilary has moved on.

Our third-year cohort of interns concluded their year with us in the summer of 2022. In September 2022, we welcomed two new interns: Mrs. Jennifer Esposito and Miss. Anna Adeleye. Jennifer is placed at Cross Street BC in Islington, whilst Anna is placed at Mill Hill Church. Alongside the internship, we have continued our Young Leaders online training programme which has several younger lay leaders participating on a regular basis.

LBA Board

We continue to hold all of our Directors meetings online and did so throughout 2022. This will continue for the foreseeable future although we will occasionally meet for awaydays and did so on the 5[th] March at The Highbury Centre.

Our AGM was held on the 8[th] October 2022 at Westbourne Park Baptist Church. Despite the concerns over quorum, it was well-attended. We did, however, pass a resolution allowing the Board to organise online or hybrid AGMs in future. There were three vacancies for the Board as The Revd. Alan Beavis, The Revd. Gordon Hindmarch and The Revd. Joel Schofield all had come to the end of their second three year term. We would want to place on record our gratitude to our outgoing colleagues for all they have offered to the Association these last six years. At the election, the churches appointed three new Directors: The Revd. Dr. Amutha Deveraj (Ashurst Drive BC), The Revd. Nestor Fernandez (Cross Street BC) and Mr. Adewole Adetunji (Emmanuel BC, Thamesmead).

Four member churches elected to close in 2022. iHope – a small outreach to the Asian community in East London – had long expected to close when their founder retired. E1 Community Church, a church plant in Shadwell, closed at Easter. And two longer term members of the Association – Peckham Rye Baptist

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THE LONDON BAPTIST ASSOCIATION

REPORT OF THE BOARD OF DIRECTORS FOR THE YEAR ENDED 31ST DECEMBER 2022 (CONTINUED)

Tabernacle and Clayhall Baptist Church, Ilford – closed in July and December respectively. This means the Association membership now stands at 291 churches.

The two closures in Peckham and Ilford had four tangible assets which reverted to the Association under the ultimate trust. It is hoped that the Peckham Rye Baptist Tabernacle site will be developed into a new innovative form of outreach and we will be taking that forward in 2023. The attached manse of this former church will remain tenanted by the former pastor as he and his wife foster care their grandchildren for up to five years. Clayhall Baptist Church is likely to be sold to part-fund a new manse for the Regional Team – with the remaining proceeds placed into our investment portfolio. The manse of said church is currently tenanted and may well remain a source of investment income for the Association.

Other significant events

Our annual Ministers Conference was organised in person for the first time in two years and held at High Leigh Conference Centre (Hoddesdon) on 7-9 February. We were pleased to welcome Rev. Hayley Young (NBA Transitional Strategic Lead) & Prof. Robert Beckford as keynote speakers. The Team Leader also offered his traditional ‘state of the union’ address. We were blessed to have around 130 ministers and guests in attendance and welcomed Steve and Velveta Thompson as our guest worship leaders.

Pensions

The pension crisis in the Baptist Union has been brought to a sustainable position through the ‘Family Solution’ being put in place for the Minister’s DB scheme and we were pleased to benefit from the latest developments to remove this liability in its entirety. Due to the ‘Buy In’ process overseen by BUGB the deficit payments have now been suspended for scheme participants. This is a remarkable event given the situation we faced five years ago. It is to be hoped that ‘Buy Out’ (where the scheme is handed over to an insurance company) should happen during 2023.

Future vision

Looking ahead into 2023, the Directors of the Association have outlined several clear objectives. A major challenge in the coming year is the retirement of our Company Secretary, Norman Kincaid, in August. He will leave big shoes to fill and we will seek to start recruiting his successor after Easter.

To establish and induct the new team of Regional Ministers
To recruit and transition the Association Administrator/Company Secretary position.
To develop a financial strategy whereby the Association can be less reliant on HM receipts
To take the Peckham Rye Development to the next stage; a feasibility study.
To recruit a new moderator for the Board
Development of a strategy for impending church closures and replants
To encourage our representatives to contribute to topics at national level including the revised funding formula, LGBT+ issues, safeguarding polices, CYF mission, etc.
To continue the development of young leaders via the internship programme
Continue to support churches as they reimagine church and manage issues in these changing times.

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THE LONDON BAPTIST ASSOCIATION

REPORT OF THE BOARD OF DIRECTORS FOR THE YEAR ENDED 31ST DECEMBER 2022 (CONTINUED)

Alongside the tasks and events, the company continued with its core activities. The Association largely fulfils its objects through the work of the LBA Regional Ministry Team. All of the team offers support and encouragement to member churches and have been challenged by several especially difficult situations.

The directors met on six occasions during the year to conduct the business of the LBA, discharge their responsibility for the charity’s finances, and oversee the implementation of the agreed strategy. The induction of new directors of the Board was overseen by the Company Secretary, Moderator, and the Team Leader.

The work of the team has been complemented by others who work for the Association in a part-time or voluntary capacity. The District Ministers offered encouragement to fellow ministers in their respective districts and, during the pandemic, online gatherings have increased turnout.

Despite all working from home, the work of the office staff has again been invaluable in furthering the work of the Association. Mr. Norman Kincaid, the Association’s Administrator, has provided excellent support to member churches, Regional Ministers and directors and has run the Association’s administration with calm efficiency.

Mrs. Deborah Scott, our Finance Officer, continues to diligently oversee the books of both the Association and Property Board.

The Mission Partnership Funding Committee awarded funding to 12 churches, totalling £84,080. Dr. Colin Hicks has responsibility for administering the application process which had included running several workshops to explain the criteria and assessment process.

The Ministerial Recognition Committee met on six occasions during the year, initially using Zoom but transitioning back to face-to-face interviews later in the year. Eleven new candidates were interviewed of whom ten were commended as potential ministerial candidates. Seven people were also interviewed to become Nationally Recognised Pastors. Additionally, twelve Newly Accredited Ministers were interviewed at the end of their probationary periods and commended for full accreditation. A further seven NAMs were interviewed to review their mid-term progress.

The key management personnel of the charity as listed on page 1 are in charge of directing, controlling, running and operating the charity on a day-to-day basis. Details of directors’ remuneration, expenses and related party transactions are disclosed in Note 19 to the financial statements.

The pay of senior staff is reviewed annually and normally increased in accordance with average earnings. These awards are decided by the directors but generally follow guidelines from BUGB who decide the standard stipend nationally for Baptist ministers.

The Home Mission appeal in London reduced by some 10.5% compared to the previous year, some £94,500 short of the combined (donations plus subscriptions) budget target of £585,000. Churches in membership with the LBA contributed £377,475 (2021: £426,025) to the Baptist Union Home Mission Fund appeal and £113,021 (2021: £121,720) from subscriptions to the LBA from member churches. Lower subscription revenue also reflects reduced membership numbers in churches.

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THE LONDON BAPTIST ASSOCIATION

REPORT OF THE BOARD OF DIRECTORS FOR THE YEAR ENDED 31ST DECEMBER 2022 (CONTINUED)

PLANS FOR THE FUTURE

Stepping out in confidence

With the appointment of the new team, we suspect 2023 may take more positive steps towards innovation and church planting. As it is, we have the Peckham Rye Tabernacle development but we also want to consider how we can actively encourage church planting in new locations in different forms.
Most of our work still revolves around helping our ‘establishment churches’ transition to a new way of working but we also expect to look at new opportunities for mission and ministry.

Issues in Human Sexuality

The national debate on the MR Rules has caused much in the way of stress and tension for many. We suspect that 2023 will require ongoing support and counsel offered by the Regional Team to our ministers and churches on this matter as the Baptist Union roll out a widespread consultation on the matter.
We held a ‘Fresh Streams Theology School’ on the issue of Human Sexuality at Mill Hill East Church on Saturday 28[th] February. About 50 attended and it was a healthy day of dialogue and listening.

How to be a Christian in a Post-Christian Age

The Ministers Conference met again in person at High Leigh on 6-8 February 2023. The theme was ‘How to be a Christian in a Post-Christian Age’ and the keynote speakers were The Right. Revd. Graham Tomlin (former Bishop of Kensington) alongside the Team Leader. 130 people attended across the three days and it was an uplifting and encouraging time.

Finance & Strategy

The Home Mission Appeal in 2022 fell badly short of target and, unlike in 2021, there were no legacies to fall back upon.
Baptist Union Council continues to engage with ‘Tricordant’ (a management consultancy) about how we can as a movement, improve this situation. We suspect more cast iron ideas will solidify in 2023.
We continue to support churches through Mission Partnership Grants but we are also seeing a decline in applications. At present we only support around six projects and we think the lack of applications reflects a lack of resources in the local church to ‘match fund’ these projects. We will continue to review this.

SUMMARY OF FINANCIAL ACTIVITIES FOR THE YEAR

The financial results of the year 2022 are set out in the accompanying financial statements. With regard to the company accounts, there was a positive movement for the year £3,148,934 (2021: £647,092) after revaluation losses of £269,759 (2021: gains of £383,616) taking the total net assets of the LBA, including restricted and endowment funds, to £17,291,502 (2021: £14,142,568). The surplus includes £3,110,000 donations of property following the closure of Peckham Rye and Clayhall Baptist Churches.

The Consolidated Statement of Financial Activities consequently shows a positive movement of funds in the year of £3,166,418 after consolidation adjustments. (2021:£792,727).

Reserves policy

The Directors consider the reserves policy annually. It is their intention to maintain a reserve that at a minimum would fund three months operating costs and up to six months operating costs. As at 31 December 2022, the free reserves of LBA (being the company unrestricted fund net current assets and listed investments) were £2,475,990 (2021: £1,390,888). The residual free reserves are considered to be adequate in line with the agreed policy.

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THE LONDON BAPTIST ASSOCIATION

REPORT OF THE BOARD OF DIRECTORS FOR THE YEAR ENDED 31ST DECEMBER 2022 (CONTINUED)

The principal source of regular general fund income in 2022 was a fixed sum grant from the Baptist Union and it is anticipated that such grants will be paid in future years. The source of this funding is the declining national Home Mission Appeal. The directors expect that the financial position of BUGB will therefore be constrained for some time and that grant funding will decrease, not increase, in future years, requiring the LBA to use its free reserves to pay some operating costs. The national formula for sharing the “family purse” remains under active review but no changes are expected before 2024 at the earliest.

The directors will also need to fund any expenditure on new projects to enhance the LBA’s work which go beyond core activities from reserves. The directors will continue to monitor the level of reserve held and to take decisions on expenditure which balance the needs of the present and the future.

Remuneration of directors

The Regional Minister Team leader, who has served as a director in 2022, is entitled to receive remuneration from the Association under the terms of the Memorandum of Association. (Details are to be found at note 19.) Otherwise, the directors did not receive any remuneration or benefit in kind from the Association or its subsidiary company the London Baptist Property Board Ltd.

Investment policy

An ethical investment policy is followed, which was reviewed during the year resulting in the exclusion of fossil fuel industry companies from our portfolios. The general policy is to deposit day-to-day funds with the London Baptist Property Board Limited. For investments of a more permanent nature, the LBA investment managers are consulted. Regular review meetings are held with the fund manager. Both the General Fund Portfolio (a balanced portfolio to provide income and growth) and the Philpot Trust Portfolio (managed principally to provide growth) performed reasonably well for the period against respective benchmarks. The charity has made such investments to generate a return and has made no social investments

With regard to the LBPB, the directors of the LBPB take a cautious approach to investment, seeking both to safeguard the capital held on behalf of churches and to retain sufficient short-term funds to meet potential demands by depositors or borrowers. With regard to longer term investments, the company holds Charifund income units with the intention of providing both income and capital growth. Investments have also been made in property with the dual aim of assisting the LBA or particular churches and bringing longer-term capital growth for the company. The short-term deposits are currently spread across five financial institutions, with returns being kept under regular review.

Grant making policy

During the year, grants of £88,067 (2021: £177,996) were made to beneficiaries in accordance with the terms of the fund from which the grant was made. Grants are awarded in response to written applications which are assessed by the Finance Committee. The Committee has regard to the sums requested, project viability and the amounts available for distribution. The directors have delegated powers to the Finance Committee to award grants with a value of up to £5,000; grants in excess of that amount are referred to the directors for a decision with a recommendation from the Finance Committee.

This figure includes grants made under the Mission Partnership Funding Scheme funded by the national Home Mission Appeal. A separately designated Committee receives vision statements and full applications from member churches and has delegated authority to award funding within an agreed annual budget. Successful applicants must demonstrate the missional nature of their application and can be awarded funding for up to three years, subject to annual review.

Fundraising disclosure

The Association does not directly get involved in fundraising activities with the general public but encourages all its member churches to contribute to the national Home Mission Appeal managed by the Baptist Union. Support is requested by occasional visiting preachers and by material available via the Baptist Union web site. All Association membership subscriptions from churches are transferred to this national Appeal. A

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THE LONDON BAPTIST ASSOCIATION

REPORT OF THE BOARD OF DIRECTORS FOR THE YEAR ENDED 31[ST] DECEMBER 2022 (CONTINUED)

proportion of this Appeal is then allocated to the Association in line with a nationally agreed formula in line with other Associations as core funding and mission funding.

No professional fundraisers or other third parties are engaged and no complaints about our practices have been received. Funds are not sought from outside our own membership.

Risk Management

The charity trustees acknowledge their responsibility for, and have given consideration to the major risks to which the charity is exposed and satisfied themselves that systems or procedures are established in order to manage and control those risks. The main risks identified and managed are:

Issues around safeguarding and child protection in our churches are of great importance and carry a high level of potential risk. To this end, the appointment of a Safeguarding Lead was made a few years ago. Extensive training at Levels 2 & 3 is delivered to our ministers and other church leaders using the Baptist Union “Excellence in Safeguarding” material. Regular monitoring of levels of participation and effectiveness of this training takes place. Lines of reporting incidents of risk are clear and understood. Churches are offered clear guidance to write their own safeguarding policies.
The business of the Association has financial reliance upon its member churches’ contributions to the national Home Mission Appeal which is the main income source. As pressure grows on our declining church membership with an ageing demographic, there is a risk that such funding may reduce in coming years. The Appeal is actively promoted by the Association and currently this risk is mitigated by the level of reserves held.
The Association and its related designated and restricted trust funds carry an investment risk on reserves held. These investments are professionally managed and regularly monitored by other advisers to mitigate the risk. The Association and LBPB have agreed a relatively cautious and ethical agreed investment policy.
There is a reputational risk to the Association relating to any incidents in our member churches which may be outside our direct control. The enhanced Regional Team is now more actively and preemptively engaged in assisting and advising churches on governance, pastoral, safeguarding and other issues to reduce these risks. Suitable trustee/employee indemnity insurance is in place.
The operational risk of loss of data, computer hacking, cybercrime heightens each year. Upgraded network systems were implemented in tandem with our change of office location. Our support company has noticeably improved the technical aspects of this area and reduced the risk of loss or non-compliance significantly.
Additional attention is being given to the risk of potential staff burnout by reviewing current supervision and line management procedures in respect of staff welfare.
Other less serious risks in the areas of governance, finance, operations, compliance and environmental have also been identified and suitable control measures in place, reviewed annually by the trustees.

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THE LONDON BAPTIST ASSOCIATION

REPORT OF THE BOARD OF DIRECTORS FOR THE YEAR ENDED 31ST DECEMBER 2022 (CONTINUED)

Statement of Directors’ Responsibilities

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and United Kingdom Accounting Standard (United Kingdom Generally Accepted Accounting Policies).

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

select suitable accounting policies and then apply them consistently;
observe the methods and principles in the Charities SORP;
make judgements and estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Association will continue in its activities.

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

The directors are responsible for the maintenance and integrity of the corporate and financial information for the company included on its web-site. Legislation in the United Kingdom governing the preparation and dissemination of financial information may differ from legislation in other jurisdictions.

DISCLOSURE OF INFORMATION TO THE AUDITORS

To the knowledge and belief of the directors, there is no relevant information that the company’s auditors are not aware of, and the directors have taken all the steps necessary to ensure that the directors are aware of any relevant information, and to establish that the company’s auditors are aware of this information.

The above report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

BY ORDER OF THE BOARD

Rev A Afriyie Moderator Unit C2, 15, Dock Street, London E1 8JN 9 May 2023

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THE LONDON BAPTIST ASSOCIATION

GENERAL INFORMATION

Designated Funds

Barnabas Fund

This fund was created to enable gifts to be made to churches in particular need for any aspect of their work. It was renamed to signify its ministry of encouragement. The small balance remaining at the end of the year was transferred to general funds.

Church Extension and Reconstruction Fund

This fund was set up to help, by grant or interest-free loan, churches needing to carry out urgent building maintenance. Income is derived from grants from the London Baptist Property Board Limited.

Legacy Reserve Fund

Unrestricted legacies are placed into this fund and are used for purposes that the Board decides.

Mission Partnership Funding

This fund holds any unallocated balance of the annual budget received from BUGB for providing Mission Partnership Funding, as administered by the LBA Committee with responsibility for awarding this funding in line with their published criteria. This balance may be carried forward at year end and awarded to suitable applicants in future years.

Thames Gateway Project

This fund has received donations made by member churches in response to an appeal made in connection with plans to celebrate the third Christian millennium. The proceeds have been used to purchase a property in Britannia village, part of the newly developed Thames Gateway area. The property is used as a base for church planting.

LBA Youth Fund

This fund was established in response to a donation to the Association to be used for youth work in London. It is hoped that further gifts and grants will be received in future years. The money is available to the Youth Forum to assist in funding its initiatives.

Peckham Rye Fund

This fund received a one-off donation on the closure of the church in lieu of rent for a retired minister to remain in the manse for five years. The money is designated for future property costs and repairs.

Restricted Funds

J W Beaumont Trust Fund (an endowment fund)

This fund was established to comply with the wishes of the executors of the estate of the late solicitor to the LBA, J W Beaumont. The main purpose is to assist lay persons with Christian training expenses.

John Bradford Trust

This trust fund enables permanent loans to be made from the capital, with repayment and interest if the church closes or leaves the Association, and term interest-free loans to be made from income. There is also provision for grants to be made from the income for the support of ministry and those training for ministry and for other charitable work of the Association. To qualify a church must be within a London Borough. Grants were made from this fund to support the safeguarding officer and the Youth worker during the year. These are shown as transfers.

Compassionate Trust Fund

This fund is financed by appeals to member churches to enable help to be given to ministers and their dependants in special need.

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THE LONDON BAPTIST ASSOCIATION

GENERAL INFORMATION

Restricted Funds (continued)

Hounslow Baptist Church Reserve

This fund was created upon the closure of Broadway Baptist Church, Hounslow in 1978. Loans and grants are made from the fund for the support of ministry (in its widest sense) in the Greater London area. The fund has been supplemented in 2007 by proceeds from the closure of Harmondsworth Baptist Church.

Manse Trust Fund

This fund was created in 1984 when the Manse of Nunhead Baptist Church was sold, the church having closed in 1965. Additional funds were added during 1992 in connection with the former Haydon Park church in Wimbledon. Loans have been made to churches to help with the purchase of their manses. These loans are repayable with capital appreciation relating to house values at the time of repayment.

T W Philpot Trust

This derives from the will of the late Thomas W A Philpot and was for making interest-free loans to churches which are erecting new chapels. Such loans will normally amount to no more than 25% of the cost unless the Board of Directors agrees otherwise. The initial capital sum became available in 1956 and a further legacy of properties and investments has since become available following the cessation of a life interest. In 2006, the Charity Commission gave permission for the funds to be used for wider purposes. Interest-free loans can now be made for the building of new churches, the purchase of new buildings by churches and the extension of church premises.

Valley Mission Fund

This fund derives from the sale of Valley Mission, Biggin Hill. Under the ultimate trust, the income from the invested proceeds is available for evangelistic work in West Kent as decided by the Board of Directors.

Pension Fund

The Directors set aside this fund from the sale of a closed church property to provide a contingency fund for any member churches who have insufficient assets to cover their liabilities to the Baptist Ministers’ Pension Scheme after a “cessation event” has taken place. This is designed to prevent the individual trustees of those churches potentially being required to cover the church debt from personal funds. The award of assistance from this fund is assessed by the directors on a case-by-case basis according to need.

This fund had been shown as restricted in previous years but should have been shown as designated. The directors do not think this reserve will be required in the future so it was released into general funds in 2021.

Jamaica Appeal

This fund was established in 2021 in response to a request from a member of Brixton Baptist Church that the Association made an appeal to our member churches for the work of the Jamaica Baptist Union (JBU). The JBU had been supporting communities who had experienced terrible flooding during the latter part of 2021 and the Trustees were glad to lend their support to this project. Churches were invited to make donations which were supplemented from the Association and passed across in full. Their gratitude was expressed in a letter written by their interim general secretary, Rev. Merlyn Hyde-Riley.

Page 12

THE LONDON BAPTIST ASSOCIATION

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE LONDON BAPTIST ASSOCIATION

Opinion

We have audited the financial statements of The London Baptist Association (the ‘parent charity’) and its subsidiary (the ‘group’) for the year ended 31 December 2022 which comprise the consolidated Statement of Financial Activities, the consolidated and parent Balance Sheets, the consolidated Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

give a true and fair view of the state of the group’s and of the parent company’s affairs as at 31 December 2022 and of the group’s surplus for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least 12 months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Conclusions relating to going concern

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

the information given in the directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the directors’ report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report.

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

adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors’ remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit: or

Page 13

THE LONDON BAPTIST ASSOCIATION

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE LONDON BAPTIST ASSOCIATION

the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies exemptions in preparing the directors’ report and from the requirement to prepare a strategic report.

Responsibilities of directors

As explained more fully in the directors’ responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the group’s and the parent company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the company, we identified that the principal risks of non-compliance with laws and regulations related to employment and financial reporting legislation and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and the Charities Act 2011.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by making enquiries of management, considering the internal controls in place and discussion amongst the engagement team.

We determined that the principal risks were related to the management bias in accounting estimates, valuation of properties, , the inclusion and treatment of non cash transactions, presentation of separately disclosed items and the management override of controls. In response to the risks identified we designed procedures which included, but were not limited to:

challenging the significant accounting estimates such as valuation of properties,
reviewing trustee meeting minutes and enquiring into the occurrence and treatment of non cash transactions,
agreeing financial statement disclosures to underlying supporting evidence,
identifying and testing journal entries and
evaluation the charity’s internal controls.

There are inherent limitations in the audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

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

Miriam Hickson FCA (Senior Statutory Auditor) for and on behalf of Jacob Cavenagh & Skeet Statutory Auditor Chartered Accountants

Dated: .........................

5 Robin Hood Lane Sutton Surrey SM1 2SW

Page 14

THE LONDON BAPTIST ASSOCIATION

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2022

Note Income from: Donations and legacies: Baptist Union core funding Church contributions 10 Grants Investments 14 Charitable activities: Loan interest Preaching Income Events Other Other income: Coronavirus Job Retention Scheme grant Total income Expenditure on: Raising funds Investment property management costs Charitable activities 11/12/13 Support to churches Total expenditure Net (losses)/gains on investments Net income/(expenditure) Transfers between funds Gains on revaluation of fixed assets 2a Net movement in funds Reconciliation of funds Funds brought forward Total funds carried forward	Unrestricted Fund Restricted Funds Endow ment Funds 2022 Unrestricted Fund Restricted Funds Endow ment Funds 2021 £ £ £ £ £ £ £ £ 362,731 - - 362,731 243,651 - - 243,651 123,287 1,025 - 124,312 122,621 695 - 123,316 3,349,021 1,500 - 3,350,521 434,200 20,736 - 454,936 236,335 55,127 - 291,462 124,179 60,444 - 184,623 139,836 - - 139,836 99,468 - - 99,468 4,693 - - 4,693 3,720 - - 3,720 23,736 - - 23,736 - - - - 2,581 - - 2,581 6,725 - - 6,725 - - - - 12,294 - - 12,294
	4,242,220 57,652 - 4,299,872 1,046,858 81,875 - 1,128,733
	37,043 18,675 - 55,718 26,858 22,837 - 49,695 846,472 4,587 - 851,059 803,898 27,028 - 830,926
	883,515 23,262 - 906,777 830,756 49,865 - 880,621
	(69,097) (174,580) - (243,677) 175,561 283,591 - 459,152
	3,289,608 (140,190) - 3,149,418 391,663 315,601 - 707,264 1,199 (1,199) - - 302,958 (302,958) - - 17,000 - - 17,000 85,463 - - 85,463
	3,307,807 (141,389) - 3,166,418 780,084 12,643 - 792,727
	10,980,993 5,609,428 3,087 16,593,508 10,200,909 5,596,785 3,087 15,800,781 14,288,800 5,468,039 3,087 19,759,926 10,980,993 5,609,428 3,087 16,593,508

Page 15

THE LONDON BAPTIST ASSOCIATION

CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2022

2022 £ £ 7,043,029 7,514,732 2,449,442 17,007,203	2022 £ £ 7,043,029 7,514,732 2,449,442 17,007,203	2021 £ £ 6,043,471 6,540,565 2,525,820 15,109,856 3,724,727 - 7,075,354 19,705 2,705,746 13,525,532 (11,955,479) 1,570,053 16,679,909 ( 86,401) 16,593,508 3,087 4,540,938 1,068,490 5,609,428 8,870,970 2,110,023 10,980,993 16,593,508	2021 £ £ 6,043,471 6,540,565 2,525,820 15,109,856 3,724,727 - 7,075,354 19,705 2,705,746 13,525,532 (11,955,479) 1,570,053 16,679,909 ( 86,401) 16,593,508 3,087 4,540,938 1,068,490 5,609,428 8,870,970 2,110,023 10,980,993 16,593,508
	17,007,203		15,109,856 1,570,053
2,990,661 1,000,000 6,955,980 58,334 6,449,300		3,724,727 - 7,075,354 19,705 2,705,746
17,454,275		13,525,532
(14,701,552)	2,752,723	(11,955,479)
4,647,597 820,442		4,540,938 1,068,490
	19,759,926 -		16,679,909 ( 86,401)
	19,759,926		16,593,508
	3,087 5,468,039 14,288,800 19,759,926		3,087 5,609,428 10,980,993 16,593,508
12,255,054 2,033,746		8,870,970 2,110,023

The financial statements were prepared in accordance with the special provisions of the Companies Act 2006 relating to small companies and were approved by the Board of Directors on 9 May 2023 and signed on their behalf:

Moderator

Honorary Treasurer

Rev A Afriyie

Mrs F Ogunyide

Page 16

THE LONDON BAPTIST ASSOCIATION

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2022

2022 Note £ Cash provided by/(used in) operating activities (i) 3,387,813 Cash flows from investing activities Dividends, interest and rents from investments 291,462 Proceeds on sale of investments 711,737 Purchase of investments (804,580) Net (receipts)/advances of long term loans to churches 76,377 Cash provided by/(used in) investing activities 274,996 Increase /(decrease) in cash and cash equivalents in the year 3,662,809 Cash and cash equivalents as at 1 January 9,800,805 Cash and cash equivalents as at 31 December 13,463,614 (i) Reconciliation of net income to cash provided by/(used in) operating activities Net movement in funds 3,166,418 Depreciation charges 2,442 Dividends, interest and rents from investments (291,462) Property grants in the year (3,110,000) Gains on tangible fixed assets (17,000) Losses/(gains) on investment assets 243,677 Decrease/(increase) in debtors 734,066 Increase/(decrease) in creditors 2,659,672 3,387,813	2021 £ (902,556) 184,623 963,648 (525,047) (954,896)
	(331,672)
	(1,234,228) 11,035,033
	9,800,805
	792,727 10,902 (184,623) - ( 85,463) (459,152) (159,142) (817,805) (902,556)

Page 17

THE LONDON BAPTIST ASSOCIATION

COMPANY STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2022

Note Income from: Donations and legacies: Baptist Union core funding Church contributions Grants Investments 14 Charitable activities: Preaching Events Other Other income Coronavirus Job Retention Scheme grant Total income Expenditure on: Raising funds Investment property management costs Charitable activities 11/12/13 Support to churches Total expenditure Net (losses)/gains on investments Net income/expenditure Transfers between funds Gains on revaluation of fixed assets 2b Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward	Unrestricted Fund Restricted Funds Endowment Funds 2022 Unrestricted Fund Restricted Funds Endowment Funds 2021 £ £ £ £ £ £ £ £ 362,731 - - 362,731 243,651 - - 243,651 123,287 1,025 - 124,312 122,621 695 - 123,316 3,404,475 1,500 - 3,405,975 505,080 20,736 - 525,816 86,851 61,928 - 148,779 51,104 60,870 - 111,974 4,693 - - 4,693 3,720 - - 3,720 23,736 - - 23,736 - - - - 1,881 - - 1,881 5,425 - - 5,425 - - - - 12,294 - - 12,294
	4,007,654 64,453 - 4,072,107 943,895 82,301 - 1,026,196
	25,406 18,675 - 44,081 8,278 22,837 - 31,115 604,746 4,587 - 609,333 704,577 27,028 - 731,605
	630,152 23,262 - 653,414 712,855 49,865 - 762,720
	(95,179) (174,580) - (269,759) 59,562 283,591 - 343,153
	3,282,323 (133,389) - 3,148,934 290,602 316,027 - 606,629 8,000 (8,000) - - 303,384 (303,384) - - - - - - 40,463 - - 40,463
	3,290,323 (141,389) - 3,148,934 634,449 12,643 - 647,092
	8,530,053 5,609,428 3,087 14,142,568 7,895,604 5,596,785 3,087 13,495,476
	11,820,376 5,468,039 3,087 17,291,502 8,530,053 5,609,428 3,087 14,142,568

Page 18

THE LONDON BAPTIST ASSOCIATION COMPANY BALANCE SHEET AT 31 DECEMBER 2022

Company number: 04325272

2022 £ £ 6,106,029 6,767,004 2,449,442 15,322,475 1187998	2022 £ £ 6,106,029 6,767,004 2,449,442 15,322,475 1187998	£ 1002171	2021 £ 5,126,870 5,818,918 2,525,820
	15,322,475		13,471,608 848,945
,, 16,784 1,000,000 58,334 18,445		,, 4,917 - 19,705 19,167
2,281,561		1,045,960
(220,950)	2,060,611	(197,015)
4,647,597 820,442		4,540,938 1,068,490
	17,383,086 (91,584) -		14,320,553 (91,584) (86,401)
	17,291,502		14,142,568
	3,087 5,468,039 11,820,376 17,291,502		3,087 5,609,428 8,530,053 14,142,568
11,138,092 682,284		7,728,410 801,643

Approved by the Board of Directors 9 May 2023 and signed on their behalf:

Moderator

Honorary Treasurer

Rev A Afriyie

Mrs F Ogunyide

Page 19

THE LONDON BAPTIST ASSOCIATION SUMMARY INCOME AND EXPENDITURE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2022

	2022		2021
	Group	Company	Group	Company
	£	£	£	£
Income	4,008,410	3,923,328	944,110	914,222
Interest and investment income	291,462	148,779	184,623	111,974
(Losses)/gains on investments	(243,677)	(269,759)	459,152	343,153
Gross income in the reporting period	4,056,195	3,802,348	1,587,885	1,369,349
Expenditure	904,335	647,573	869,719	753,336
Depreciation	2,442	5,841	10,902	9,384
Total expenditure in the reporting
period	906,777	653,414	880,621	762,720
Surplus for the year	3,149,418	3,148,934	707,264	606,629
STATEMENT OF COMPREHENSIVE INCOME
	2022		2021
	Group	Company	Group	Company
	£	£	£	£
Surplus for the year	3,149,418	3,148,934	707,264	606,629
Gains on revaluation of fixed assets	17,000	-	85,463	40,463
Comprehensive income for the year	3,166,418	3,148,934	792,727	647,092

Page 20

THE LONDON BAPTIST ASSOCIATION

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2022

1 ACCOUNTING POLICIES

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

1.1 Accounting convention

The financial statements have been prepared under the Companies Act 2006, the Charities Act 2011 and in accordance with the Charities Statement of Recommended Practice (Charities SORP (FRS 102)) and Financial Reporting Standard 102 (FRS 102). The accounts are prepared under the historical cost convention as modified by the revaluation of properties and investments.

The accounts include the results of the company’s subsidiary, The London Baptist Property Board Limited. The results have been consolidated on a line by line basis.

The London Baptist Association meets the definition of a public benefit entity under FRS 102. The charity is a company limited by guarantee, incorporated in England and Wales.

1.2 Unrestricted funds

Unrestricted funds comprise the General fund and Designated funds. Designated funds represent monies which have been allocated for specific purposes by the Association. All Unrestricted fund income is accounted for once the charity has entitlement to the income, it is probable the income will be received and the amount of income receivable can be reliably measured. Unrestricted fund expenditure is accrued as soon as a liability is considered probable, discounted to present value for longer term liabilities.

1.3 Restricted funds

These are funds subject to specific conditions as to their use, which are binding on the Association. All Restricted fund income is accounted for at the time of receipt and expenditure accounted for when incurred. Income not expended in the year of receipt is carried forward until it is fully committed.

1.4 Endowment funds

Endowment funds represent the permanent capital of certain restricted funds.

1.5 Properties

Freehold and leasehold properties, whether shown as tangible fixed assets or investments, have been included at fair value. No depreciation has been charged on those properties held as tangible fixed assets on the basis that the residual value of the properties is so high as to render depreciation immaterial.

1.6 Computers and equipment

This is shown at cost and depreciated over 3 years. Equipment with a cost of over £1,000 is capitalised.

1.7 Pension schemes

The company contributes to defined benefit pension schemes. The assets of the schemes are held separately from those of the company and contributions are accounted for when due.

The company also makes contributions towards the deficit on the Baptist Pension Scheme and the Baptist Unions Staff Pension Scheme, under their deficit reduction schemes. A provision has been made for the total contributions due. This is detailed in Note 19.

1.8 Investments

Quoted investments are stated at fair value. An unquoted investment is stated at a valuation of the Finance Committee. Unrealised gains or losses in the year are reported in the statement of financial activities. Investments in subsidiaries are shown at cost. Where the Charity has initiated a plan to sell an asset and the sale is probable within one year, the asset held for sale is shown at the lower of the carrying amount and its fair value less costs to sell.

1.9 Debtors

Trade debtors and other debtors are included at the settlement amount due. Prepayments are valued at the amount prepaid.

1.10 Cash at bank and in hand

Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of opening of the deposit.

Page 21

THE LONDON BAPTIST ASSOCIATION

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2022 (continued)

1.11 Creditors and provisions

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

1.12 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.

1.13 Going concern

The trustees consider that there are no material uncertainties about the charity’s ability to continue as a going concern.

1.14 Income

Income, including grants, is recognised when the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

The Coronavirus Job Retention Scheme grant is recognised in the period to which the underlying furloughed staff costs relate.

1 .15 Expenditure

Expenditure is recognised as soon as an outflow of economic benefit is probable, settlement will be required and the amount of the obligation can be measured reliably. All expenditure is accounted for on an accruals basis.

Grants and donations are accounted for when paid over, or when awarded, if that award creates a binding obligation on the charity.

2a TANGIBLE FIXED ASSETS – GROUP

	Freehold Properties	Leasehold Properties	Computers and Equipment	Total
	£	£	£	£
Cost or valuation
1 January 2022	4,217,488	1,820,242	40,336	6,078,066
Additions	985,000	-	-	985,000
Disposals	-	-	-	-
Revaluation surplus	17,000	-	-	17,000
31 December 2022	5,219,488	1,820,242	40,336	7,080,066
Depreciation
1 January 2022	-	-	34,595	34,595
Charge for the year	-	-	2,442	2,442
Released on disposal	-	-	-	-
31 December 2022	-	-	37,037	37,037
Net Book Value
31 December 2022	5,219,488	1,820,242	3,299	7,043,029
31 December 2021	4,217,488	1,820,242	5,741	6,043,471
Historical cost for land and buildings included at valuation:
31 December 2022	4,713,295	1,820,242		6,533,537
31 December 2021	3,728,295	1,820,242		5,548,537

The properties were last valued by the directors at 31st December 2022 on the basis of fair value. The valuations were made on the basis of information provided by Rapleys, who are professional surveyors.

Page 22

THE LONDON BAPTIST ASSOCIATION

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2022 (continued)

2b TANGIBLE FIXED ASSETS – COMPANY

Freehold Properties Leasehold Properties Computers and Equipment Total £ £ £ £ Cost or valuation 1 January 2022 3,297,488 1,820,242 34,601 5,152,331 Additions 985,000 - - 985,000 Disposals - - - - Revaluation surplus/(deficit) - - - - 31 December 2022 4,282,488 1,820,242 34,601 6,137,331 Depreciation 1 January 2022 - - 25,461 25,461 Charge for the year - - 5,841 5,841 Released on disposal - - - - 31 December 2022 - - 31,302 31,302 Net Book Value 31 December 2022 4,282,488 1,820,242 3,299 6,106,029 31 December 2021 3,297,488 1,820,242 9,140 5,126,870 Historical cost for land and buildings included at valuation: 31 December 2022 3,838,295 1,820,242 5,658,537 31 December 2021 2,853,295 1,820,242 4,673,537 3a INVESTMENTS – GROUP Listed investments Other investments Freehold investment properties Total £ £ £ £ Valuation 1 January 2022 2,876,298 213,977 3,450,290 6,540,565 Additions 804,580 - 1,125,000 1,929,580 Disposals (719,017) - - (719,017) Revaluation surplus (292,017) (11,919) 67,540 (236,396) 31 December 2022 2,669,844 202,058 4,642,830 7,514,732 Historical Cost 31 December 2022 2,503,141 149,805 2,513,792 5,166,738 31 December 2021 2,312,648 149,805 1,388,792 3,851,245	Freehold Properties Leasehold Properties Computers and Equipment Total £ £ £ £ Cost or valuation 1 January 2022 3,297,488 1,820,242 34,601 5,152,331 Additions 985,000 - - 985,000 Disposals - - - - Revaluation surplus/(deficit) - - - - 31 December 2022 4,282,488 1,820,242 34,601 6,137,331 Depreciation 1 January 2022 - - 25,461 25,461 Charge for the year - - 5,841 5,841 Released on disposal - - - - 31 December 2022 - - 31,302 31,302 Net Book Value 31 December 2022 4,282,488 1,820,242 3,299 6,106,029 31 December 2021 3,297,488 1,820,242 9,140 5,126,870 Historical cost for land and buildings included at valuation: 31 December 2022 3,838,295 1,820,242 5,658,537 31 December 2021 2,853,295 1,820,242 4,673,537 3a INVESTMENTS – GROUP Listed investments Other investments Freehold investment properties Total £ £ £ £ Valuation 1 January 2022 2,876,298 213,977 3,450,290 6,540,565 Additions 804,580 - 1,125,000 1,929,580 Disposals (719,017) - - (719,017) Revaluation surplus (292,017) (11,919) 67,540 (236,396) 31 December 2022 2,669,844 202,058 4,642,830 7,514,732 Historical Cost 31 December 2022 2,503,141 149,805 2,513,792 5,166,738 31 December 2021 2,312,648 149,805 1,388,792 3,851,245	Freehold Properties Leasehold Properties Computers and Equipment Total £ £ £ £ Cost or valuation 1 January 2022 3,297,488 1,820,242 34,601 5,152,331 Additions 985,000 - - 985,000 Disposals - - - - Revaluation surplus/(deficit) - - - - 31 December 2022 4,282,488 1,820,242 34,601 6,137,331 Depreciation 1 January 2022 - - 25,461 25,461 Charge for the year - - 5,841 5,841 Released on disposal - - - - 31 December 2022 - - 31,302 31,302 Net Book Value 31 December 2022 4,282,488 1,820,242 3,299 6,106,029 31 December 2021 3,297,488 1,820,242 9,140 5,126,870 Historical cost for land and buildings included at valuation: 31 December 2022 3,838,295 1,820,242 5,658,537 31 December 2021 2,853,295 1,820,242 4,673,537 3a INVESTMENTS – GROUP Listed investments Other investments Freehold investment properties Total £ £ £ £ Valuation 1 January 2022 2,876,298 213,977 3,450,290 6,540,565 Additions 804,580 - 1,125,000 1,929,580 Disposals (719,017) - - (719,017) Revaluation surplus (292,017) (11,919) 67,540 (236,396) 31 December 2022 2,669,844 202,058 4,642,830 7,514,732 Historical Cost 31 December 2022 2,503,141 149,805 2,513,792 5,166,738 31 December 2021 2,312,648 149,805 1,388,792 3,851,245



		2,669,844 202,058 4,642,830 7,514,732
		2,503,141 149,805 2,513,792 5,166,738 2,312,648 149,805 1,388,792 3,851,245

The properties were last valued by the directors at 31st December 2022 on the basis of fair value. The valuations were made on the basis of information provided, according to the locality of the properties, by: Rapleys, who are professional surveyors.

All assets are held in the UK.

The listed investment portfolio comprises investments in British Government Stocks, UK quoted and unquoted equities and unit trust investments.

Page 23

THE LONDON BAPTIST ASSOCIATION

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2022 (continued)

3b INVESTMENTS – COMPANY

General Fund Shares in LBPB Listed investments Freehold investment properties Total £ £ £ £ Market value or valuation at 1 January 2022 1,379,330 976,840 788,190 3,144,360 Additions - 351,622 1,125,000 1,476,622 Disposals - (271,480) - (271,480) Revaluation (deficit)/surplus - (96,172) 14,660 (81,512) Market value or valuation at 31 December 2022 1,379,330 960,810 1,927,850 4,267,990 Historical cost or probate value at 31 December 2022 1,379,330 952,939 1,697,630 4,029,899 31 December 2021 1,379,330 834,950 572,630 2,786,910 The company holds 100% of the ‘A’ shares in its subsidiary, The London Baptist Property Board Limited. Restricted and Endowment Funds Listed investments Freehold investment properties Total £ £ £ Market value or valuation at 1 January 2022 1,899,458 775,100 2,674,558 Additions 452,958 - 452,958 Disposals (447,537) - (447,537) Revaluation (deficit)/surplus (195,845) 14,880 (180,965) Market value or valuation on 31 December 2022 1,709,034 789,980 2,499,014 Historical cost or probate value at 31 December 2022 1,550,202 128,370 1,678,572 Historical cost or probate value at 31 December 2021 1,477,699 128,370 1,606,069 TOTAL Shares in LBPB Listed investments Freehold investment properties Total £ £ £ £ Market value or valuation at 1 January 2022 1,379,330 2,876,298 1,563,290 5,818,918 Additions - 804,580 1,125,000 1,929,580 Disposals - (719,017) - (719,017) Revaluation surplus - (292,017) 29,540 (262,477) Market value or valuation at 31 December 2022 1,379,330 2,669,844 2,717,830 6,767,004 Historical cost or probate value at 31 December 2022 1,379,330 2,503,141 1,826,000 5,708,471 31 December 2021 1,379,330 2,312,649 701,000 4,392,979	General Fund Shares in LBPB Listed investments Freehold investment properties Total £ £ £ £ Market value or valuation at 1 January 2022 1,379,330 976,840 788,190 3,144,360 Additions - 351,622 1,125,000 1,476,622 Disposals - (271,480) - (271,480) Revaluation (deficit)/surplus - (96,172) 14,660 (81,512) Market value or valuation at 31 December 2022 1,379,330 960,810 1,927,850 4,267,990 Historical cost or probate value at 31 December 2022 1,379,330 952,939 1,697,630 4,029,899 31 December 2021 1,379,330 834,950 572,630 2,786,910 The company holds 100% of the ‘A’ shares in its subsidiary, The London Baptist Property Board Limited. Restricted and Endowment Funds Listed investments Freehold investment properties Total £ £ £ Market value or valuation at 1 January 2022 1,899,458 775,100 2,674,558 Additions 452,958 - 452,958 Disposals (447,537) - (447,537) Revaluation (deficit)/surplus (195,845) 14,880 (180,965) Market value or valuation on 31 December 2022 1,709,034 789,980 2,499,014 Historical cost or probate value at 31 December 2022 1,550,202 128,370 1,678,572 Historical cost or probate value at 31 December 2021 1,477,699 128,370 1,606,069 TOTAL Shares in LBPB Listed investments Freehold investment properties Total £ £ £ £ Market value or valuation at 1 January 2022 1,379,330 2,876,298 1,563,290 5,818,918 Additions - 804,580 1,125,000 1,929,580 Disposals - (719,017) - (719,017) Revaluation surplus - (292,017) 29,540 (262,477) Market value or valuation at 31 December 2022 1,379,330 2,669,844 2,717,830 6,767,004 Historical cost or probate value at 31 December 2022 1,379,330 2,503,141 1,826,000 5,708,471 31 December 2021 1,379,330 2,312,649 701,000 4,392,979	General Fund Shares in LBPB Listed investments Freehold investment properties Total £ £ £ £ Market value or valuation at 1 January 2022 1,379,330 976,840 788,190 3,144,360 Additions - 351,622 1,125,000 1,476,622 Disposals - (271,480) - (271,480) Revaluation (deficit)/surplus - (96,172) 14,660 (81,512) Market value or valuation at 31 December 2022 1,379,330 960,810 1,927,850 4,267,990 Historical cost or probate value at 31 December 2022 1,379,330 952,939 1,697,630 4,029,899 31 December 2021 1,379,330 834,950 572,630 2,786,910 The company holds 100% of the ‘A’ shares in its subsidiary, The London Baptist Property Board Limited. Restricted and Endowment Funds Listed investments Freehold investment properties Total £ £ £ Market value or valuation at 1 January 2022 1,899,458 775,100 2,674,558 Additions 452,958 - 452,958 Disposals (447,537) - (447,537) Revaluation (deficit)/surplus (195,845) 14,880 (180,965) Market value or valuation on 31 December 2022 1,709,034 789,980 2,499,014 Historical cost or probate value at 31 December 2022 1,550,202 128,370 1,678,572 Historical cost or probate value at 31 December 2021 1,477,699 128,370 1,606,069 TOTAL Shares in LBPB Listed investments Freehold investment properties Total £ £ £ £ Market value or valuation at 1 January 2022 1,379,330 2,876,298 1,563,290 5,818,918 Additions - 804,580 1,125,000 1,929,580 Disposals - (719,017) - (719,017) Revaluation surplus - (292,017) 29,540 (262,477) Market value or valuation at 31 December 2022 1,379,330 2,669,844 2,717,830 6,767,004 Historical cost or probate value at 31 December 2022 1,379,330 2,503,141 1,826,000 5,708,471 31 December 2021 1,379,330 2,312,649 701,000 4,392,979	General Fund Shares in LBPB Listed investments Freehold investment properties Total £ £ £ £ Market value or valuation at 1 January 2022 1,379,330 976,840 788,190 3,144,360 Additions - 351,622 1,125,000 1,476,622 Disposals - (271,480) - (271,480) Revaluation (deficit)/surplus - (96,172) 14,660 (81,512) Market value or valuation at 31 December 2022 1,379,330 960,810 1,927,850 4,267,990 Historical cost or probate value at 31 December 2022 1,379,330 952,939 1,697,630 4,029,899 31 December 2021 1,379,330 834,950 572,630 2,786,910 The company holds 100% of the ‘A’ shares in its subsidiary, The London Baptist Property Board Limited. Restricted and Endowment Funds Listed investments Freehold investment properties Total £ £ £ Market value or valuation at 1 January 2022 1,899,458 775,100 2,674,558 Additions 452,958 - 452,958 Disposals (447,537) - (447,537) Revaluation (deficit)/surplus (195,845) 14,880 (180,965) Market value or valuation on 31 December 2022 1,709,034 789,980 2,499,014 Historical cost or probate value at 31 December 2022 1,550,202 128,370 1,678,572 Historical cost or probate value at 31 December 2021 1,477,699 128,370 1,606,069 TOTAL Shares in LBPB Listed investments Freehold investment properties Total £ £ £ £ Market value or valuation at 1 January 2022 1,379,330 2,876,298 1,563,290 5,818,918 Additions - 804,580 1,125,000 1,929,580 Disposals - (719,017) - (719,017) Revaluation surplus - (292,017) 29,540 (262,477) Market value or valuation at 31 December 2022 1,379,330 2,669,844 2,717,830 6,767,004 Historical cost or probate value at 31 December 2022 1,379,330 2,503,141 1,826,000 5,708,471 31 December 2021 1,379,330 2,312,649 701,000 4,392,979

			1,709,034 789,980 2,499,014
			1,550,202 128,370 1,678,572 1,477,699 128,370 1,606,069

			Listed investments Freehold investment properties Total £ £ £ 2,876,298 1,563,290 5,818,918 804,580 1,125,000 1,929,580 (719,017) - (719,017) (292,017) 29,540 (262,477) 2,669,844 2,717,830 6,767,004 2,503,141 1,826,000 5,708,471 2,312,649 701,000 4,392,979
	1,379,330
	1,379,330
	1,379,330

Page 24

THE LONDON BAPTIST ASSOCIATION

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2022 (continued)

4 LOANS TO CHURCHES – GROUP AND COMPANY

Permanent loans Fixed loans	Designated Fund Restricted and Endowment Funds 2022 Total Designated Fund Restricted and Endowment Funds 2021 Total £ £ £ £ £ £ 21,010 615,228 636,238 21,010 626,808 647,818 1,750 1,811,454 1,813,204 1,750 1,876,252 1,878,002
	22,760 2,426,682 2,449,442 22,760 2,503,060 2,525,820

Permanent loans are repayable on closure, withdrawal or sale of the site and are in most cases interest-free. Fixedterm loans are interest-free. These loans are predominantly payable after more than one year.

The group has the following capital commitments at 31 December:


Loan facilities approved but not yet taken up 5 a DEBTORS – GROUP Advances (financial assets measured at amortised cost) Prepayments and sundry debtors Accrued income 5 b DEBTORS – COMPANY Prepayments and sundry debtors Accrued income 6 ASSETS HELD FOR SALE – GROUP and COMPANY Property held for sale – Clayhall Baptist Church 7 a CREDITORS – GROUP Amounts falling due within one year 7 day notice deposits and interest accrued Sundry creditors and accruals 7 b CREDITORS – COMPANY Amounts falling due within one year Sundry creditors and accruals	2022 2021 £ £ 269,000 656,500
	2022 2021 £ £ 2,966,466 3,691,341 18,401 7,615 5,794 25,771 2,990,661 3,724,727
	2022 2021 £ £ 14,792 3,998 1,992 919 16,784 4,917
	2022 2021 £ £ 1,000,000 -
	2022 2021 £ £ 14,470,937 11,725,705 230,615 229,774 14,701,552 11,955,479
	2022 2021 £ £ 220,950 197,015 220,950 197,015

Page 25

THE LONDON BAPTIST ASSOCIATION

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2022 (continued)

8 UNRESTRICTED FUNDS – COMPANY

2022 Balance at 1 January 2022 Income Expenditure Net gains/(losses) on investments Transfers Balance at 31 December 2022 2021 Balance at 1 January 2021 Income Expenditure Net gains on investments Gains on revaluation of fixed assets Transfers From restricted Pension Fund Close Pension Fund Internal grant from John Bradford Trust Close Barnabas Fund Total transfers Balance at 31 December 2021	Designated Funds Legacy Reserve Fund Peckham Rye Fund Mission Partnership Fund Ch Extn Reconstn Fund Thames Gateway Project Total Designated Funds General Fund Total Unrestricted Funds £ £ £ £ £ £ £ £ 14,026 - 91,140 49,655 548,879 703,700 7,826,353 8,530,053 - 91,742 116,828 390 - 208,960 3,798,694 4,007,654 - (8,116) (83,480) - - (91,596) (538,556) (630,152) - - - - - - (95,179) (95,179) - - - - - - 8,000 8,000 14,026 83,626 124,488 50,045 548,879 821,064 10,999,312 11,820,376
	Designated Funds Legacy Reserve Fund Mission Partnership Fund Barnabas Fund Ch Extn Reconstn Fund Thames Gateway Project Youth Mission Total Designated Funds General Fund Total Unrestricted Funds £ £ £ £ £ £ £ £ £ 14,026 102,476 160 49,605 508,416 - 674,683 7,220,921 7,895,604 - 135,208 3 50 - - 135,261 808,634 943,895 - (146,544) (160) - - - (146,704) (566,151) (712,855) - - - - - - - 59,562 59,562 - - - - 40,463 - 40,463 - 40,463 - - - - - 295,384 295,384 - 295,384 - - - - - (295,384) (295,384) 295,384 - - - - - - - - 8,000 8,000 - - (3) - - - (3) 3 -
	- - (3) - - - (3) 303,387 303,384 14,026 91,140 - 49,655 548,879 - 703,700 7,826,353 8,530,053

2022
Balance at 1 January 2022
Income
Expenditure
Net gains/(losses) on investments
Transfers
Balance at 31 December 2022
2021
Balance at 1 January 2021
Income
Expenditure
Net gains on investments
Gains on revaluation of fixed assets
Transfers
From restricted Pension Fund
Close Pension Fund
Internal grant from John Bradford Trust
Close Barnabas Fund
Total transfers
Balance at 31 December 2021

Designated Funds
Legacy
Reserve
Fund
Peckham
Rye Fund
Mission
Partnership
Fund
Ch Extn
Reconstn
Fund
Thames
Gateway
Project
Total
Designated
Funds
General
Fund
Total
Unrestricted
Funds
£
£
£
£
£
£
£
£
14,026
-
91,140
49,655
548,879
703,700
7,826,353
8,530,053
-
91,742
116,828
390
-
208,960
3,798,694
4,007,654
-
(8,116)
(83,480)
-
-
(91,596)
(538,556)
(630,152)
-
-
-
-
-
-
(95,179)
(95,179)
-
-
-
-
-
-
8,000
8,000
14,026
83,626
124,488
50,045
548,879
821,064
10,999,312
11,820,376

Designated Funds
Legacy
Reserve
Fund
Mission
Partnership
Fund
Barnabas
Fund
Ch Extn
Reconstn
Fund
Thames
Gateway
Project
Youth
Mission
Total
Designated
Funds
General
Fund
Total
Unrestricted
Funds
£
£
£
£
£
£
£
£
£
14,026
102,476
160
49,605
508,416
-
674,683
7,220,921
7,895,604
-
135,208
3
50
-
-
135,261
808,634
943,895
-
(146,544)
(160)
-
-
-
(146,704)
(566,151)
(712,855)
-
-
-
-
-
-
-
59,562
59,562
-
-
-
-
40,463
-
40,463
-
40,463
-
-
-
-
-
295,384
295,384
-
295,384
-
-
-
-
-
(295,384)
(295,384)
295,384
-
-
-
-
-
-
-
-
8,000
8,000
-
-
(3)
-
-
-
(3)
3
-

-
-
(3)
-
-
-
(3)
303,387
303,384
14,026
91,140
-
49,655
548,879
-
703,700
7,826,353
8,530,053

Page 26

THE LONDON BAPTIST ASSOCIATION

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2022 (continued)

9 RESTRICTED AND ENDOWMENT FUNDS – GROUP AND COMPANY

2022 RESTRICTED FUNDS Balance at 1 January 2022 Total income Total expenditure Net gains/(losses) on investments Transfers between funds Balance at 31 December 2022 ENDOWMENT FUNDS Deposits with LBPB Limited 2021 RESTRICTED FUNDS Balance at 1 January 2021 Total income Total expenditure Net gains/(losses) on investments Transfers between funds Balance at 31 December 2021 ENDOWMENT FUNDS Deposits with LBPB Limited	JW Beaumont Trust Fund John Bradford Trust Compass- ionate Trust Fund Hounslow BC Reserve Jamaica Appeal Manse Trust Fund TW Philpot Trust Valley Mission Fund TOTAL £ £ £ £ £ £ £ £ £ 7,062 592,767 11,479 85,904 - 906,500 3,881,576 124,140 5,609,428 135 7,345 1,570 2,079 1,500 3,330 45,276 3,218 64,453 (552) - (2,535) - (1,500) - (18,675) - (23,262) - (17,476) (520) (7,883) - 7,250 (141,989) (13,962) (174,580) - (8,000) - - - - - - (8,000) 6,645 574,636 9,994 80,100 - 917,080 3,766,188 113,396 5,468,039 3,087 - - - - - - - 3,087 JW Beaumont Trust Fund John Bradford Trust Compass- ionate Trust Fund Hounslow BC Reserve Interest Assistance Manse Trust Fund Pension Fund TW Philpot Trust Valley Mission Fund TOTAL £ £ £ £ £ £ £ £ £ £ 7,599 568,542 9,970 78,752 - 862,419 295,384 3,665,087 109,032 5,596,785 15 6,230 1,147 3,696 20,736 5,695 - 43,641 1,141 82,301 (552) - (740) (5,000) (20,736) (3,026) - (19,811) - (49,865) - 25,995 1,102 8,456 - 41,412 - 192,659 13,967 283,591 - (8,000) - - - -(295,384) - - (303,384)
	7,062 592,767 11,479 85,904 - 906,500 - 3,881,576 124,140 5,609,428
	3,087 - - - - - - - - 3,087

2022
RESTRICTED FUNDS
Balance at 1 January 2022
Total income
Total expenditure
Net gains/(losses) on
investments
Transfers between funds
Balance at 31 December 2022
ENDOWMENT FUNDS
Deposits with LBPB Limited
2021
RESTRICTED FUNDS
Balance at 1 January 2021
Total income
Total expenditure
Net gains/(losses) on
investments
Transfers between funds
Balance at 31 December 2021
ENDOWMENT FUNDS
Deposits with LBPB Limited

JW
Beaumont
Trust Fund
John
Bradford
Trust
Compass-
ionate Trust
Fund
Hounslow
BC
Reserve
Jamaica
Appeal
Manse
Trust
Fund
TW Philpot
Trust
Valley
Mission Fund
TOTAL
£
£
£
£
£
£
£
£
£
7,062
592,767
11,479
85,904
-
906,500
3,881,576
124,140
5,609,428
135
7,345
1,570
2,079
1,500
3,330
45,276
3,218
64,453
(552)
-
(2,535)
-
(1,500)
-
(18,675)
-
(23,262)
-
(17,476)
(520)
(7,883)
-
7,250
(141,989)
(13,962)
(174,580)
-
(8,000)
-
-
-
-
-
-
(8,000)
6,645
574,636
9,994
80,100
-
917,080
3,766,188
113,396
5,468,039
3,087
-
-
-
-
-
-
-
3,087
JW
Beaumont
Trust Fund
John
Bradford
Trust
Compass-
ionate
Trust Fund
Hounslow
BC
Reserve
Interest
Assistance
Manse
Trust
Fund
Pension
Fund
TW Philpot
Trust
Valley
Mission Fund
TOTAL
£
£
£
£
£
£
£
£
£
£
7,599
568,542
9,970
78,752
-
862,419
295,384
3,665,087
109,032
5,596,785
15
6,230
1,147
3,696
20,736
5,695
-
43,641
1,141
82,301
(552)
-
(740)
(5,000)
(20,736)
(3,026)
-
(19,811)
-
(49,865)
-
25,995
1,102
8,456
-
41,412
-
192,659
13,967
283,591
-
(8,000)
-
-
-
-(295,384)
-
-
(303,384)

7,062
592,767
11,479
85,904
-
906,500
-
3,881,576
124,140
5,609,428

3,087
-
-
-
-
-
-
-
-
3,087

A description of the nature and purpose of each fund and an explanation for the transfers is on pages 11 and 12 of the accounts.

Page 27

THE LONDON BAPTIST ASSOCIATION

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2022 (continued)

10 CHURCH CONTRIBUTIONS – GROUP AND COMPANY

2022 Group No £ 84,080 13	Company No £ 84,080 20	Company No £ 84,080 20	2022 £ 124,312	2021 £ 123,316 123,316
			124,312
			2021 Group No £ 176,056 20 176,056 1,940 4 177,996	Company £ 176,056 176,056 1,940 177,996 2021 £ - - 9,380 8,000 10,000 10,000 10,000 10,500 11,375 11,542 12,000 17,000 25,000 3,750 6,416 7,975 8,531 11,375 3,212 176,056
84,080 3,987 11 88,067	84,080 3,987 4 88,067 2022 £ 3,000
		1,545 7,035 7,500 2,250 9,000 9,000 10,250 7,000 5,000 9,000 12,000 1,500 - - - - - - 84,080

11 GRANTS

Page 28

THE LONDON BAPTIST ASSOCIATION

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2022 (continued)

12 SUPPORT TO CHURCHES

PPORT TO CHURCHES
Employment costs: Salaries National Insurance – employers Pension contributions – employers Defined benefit scheme movement Printing and stationery Postage and telephone Premises costs Professional fees Committee and conference expenses Computer and office equipment Travel expenses Subscriptions (note 13) Bank charges Depreciation Loan interest Contributions to BUGB Home Mission Grants (note 11) Sundry expenses Governance costs – auditors remuneration	2022 2021 Group Company Group Company £ £ £ £ 299,042 249,959 301,057 248,635 24,497 19,376 22,844 17,914 30,104 25,426 29,184 24,233 (75,485) (75,485) (2,543) (2,543)
	278,158 219,276 350,542 288,239 1,537 1,452 458 395 12,405 10,926 10,988 9,635 46,580 78,408 31,021 62,353 37,013 8,906 33,226 4,253 27,888 27,366 3,115 2,596 10,300 7,958 20,490 12,350 17,975 17,582 10,289 10,278 4,605 4,605 4,649 4,649 873 290 960 271 2,442 5,841 10,902 9,384 175,405 - 19,176 - 113,021 113,021 128,721 128,721 88,067 88,067 177,996 177,996 20,810 17,835 15,553 13,405 13,980 7,800 12,840 7,080 851,059 609,333 830,926 731,605

PPORT TO CHURCHES

Employment costs:
Salaries
National Insurance – employers
Pension contributions – employers
Defined benefit scheme movement
Printing and stationery
Postage and telephone
Premises costs
Professional fees
Committee and conference expenses
Computer and office equipment
Travel expenses
Subscriptions (note 13)
Bank charges
Depreciation
Loan interest
Contributions to BUGB Home Mission
Grants (note 11)
Sundry expenses
Governance costs – auditors
remuneration

2022
2021
Group
Company
Group
Company
£
£
£
£
299,042
249,959
301,057
248,635
24,497
19,376
22,844
17,914
30,104
25,426
29,184
24,233
(75,485)
(75,485)
(2,543)
(2,543)

278,158
219,276
350,542
288,239
1,537
1,452
458
395
12,405
10,926
10,988
9,635
46,580
78,408
31,021
62,353
37,013
8,906
33,226
4,253
27,888
27,366
3,115
2,596
10,300
7,958
20,490
12,350
17,975
17,582
10,289
10,278
4,605
4,605
4,649
4,649
873
290
960
271
2,442
5,841
10,902
9,384
175,405
-
19,176
-
113,021
113,021
128,721
128,721
88,067
88,067
177,996
177,996
20,810
17,835
15,553
13,405
13,980
7,800
12,840
7,080
851,059
609,333
830,926
731,605

The average number of employees during the year was 11 (2021: 12). No employee earned £60,000 or more during the year. Included in staff costs are £nil of redundancy costs (2021: £3,765).

13 SUBSCRIPTIONS

Baptist Union of Great Britain Evangelical Alliance London Church Leaders’ Secretary Churches together in South London Churches together in Essex and East London	2022 2021 £ £ 1,687 1,648 250 250 100 100 2,568 2,508 - 143 4,605 4,649

Page 29

THE LONDON BAPTIST ASSOCIATION

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2022 (continued)

14 INVESTMENT INCOME

Rent from investment properties Dividends Interest on short term deposits	2022 2021 Group Company Group Company £ £ £ £ 62,831 48,295 54,005 42,793 97,256 85,843 77,637 67,462 131,375 14,641 52,981 1,719 291,462 148,779 184,623 111,974

15 LIABILITIES FALLING DUE AFTER MORE THAN ONE YEAR

Repayment of the loans from the London Baptist Property Board Limited is only due on disposal of the relevant properties. Interest is payable at the current rate charged by the London Baptist Property Board Limited.

16 MEMBERS

The company is limited by guarantee. The liability of the members is limited to £1 on the winding up of the company. The number of member churches at 31 December 2022 was 291.

17 REVALUATION RESERVE 2022 GROUP Balance at 1 January 2022 Unrealised gains/(losses) on revaluations Realised (losses) on disposals Balance at 31 December 2022 2022 COMPANY Balance at 1 January 2022 Unrealised gains/(losses) on revaluations Realised (losses) on disposals Balance at 31 December 2022	Investment Properties Investments Freehold Properties Total £ £ £ £ 2,061,498 627,822 489,193 3,178,513 67,540 (303,935) 17,000 (219,395) - (104,930) - (104,930) 2,129,038 218,957 506,193 2,854,188
	Investment Properties Investments Freehold Properties Total £ £ £ £ 862,290 563,650 444,193 1,870,133 29,540 (292,017) - (262,477) - (104,930) - (104,930) 891,830 166,703 444,193 1,502,726

Page 30

THE LONDON BAPTIST ASSOCIATION

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2022 (continued)

17 REVALUATION RESERVE (Continued)

2021 GROUP Balance at 1 January 2021 Unrealised gains on revaluations Realised (losses) on disposals Balance at 31 December 2021 2021 COMPANY Balance at 1 January 2021 Unrealised gains on revaluations Realised (losses) on disposals Balance at 31 December 2021	Investment Properties Investments Freehold Properties Total £ £ £ £ 1,894,708 620,519 403,730 2,918,957 166,790 217,187 85,463 469,440 - (209,884) - (209,884) 2,061,498 627,822 489,193 3,178,513
	Investment Properties Investments Freehold Properties Total £ £ £ £ 786,250 581,596 403,730 1,771,576 76,040 191,938 40,463 308,441 - (209,884) - (209,884) 862,290 563,650 444,193 1,870,133

18 ANALYSIS OF NET ASSETS BETWEEN FUNDS – GROUP

2022
GROUP
Endowment Funds
Restricted Funds
(per note 9)
Unrestricted
Funds
Designated Funds
General Fund
2022
COMPANY
Endowment Funds
Restricted Funds
(per note 9)
Unrestricted
Funds
Designated Funds
General Fund

Tangible
fixed
assets
Investments
Loans to
churches
Net
current
assets
Total
£
£
£
£
£
-
-
-
3,087
3,087
-
2,499,014
2,426,682
542,343
5,468,039
600,000
-
22,760
212,719
835,479
6,443,029
5,015,718
-
1,994,574
13,453,321
7,043,029
7,514,732
2,449,442
2,752,723
19,759,926
Tangible
fixed
assets
Investments
Loans to
churches
Net
current
assets
Long Term
Liabilities
Total
£
£
£
£
£
£
-
-
-
3,087
-
3,087
-
2,499,014
2,426,682
542,343
-
5,468,039
600,000
-
22,760
289,888
(91,584)
821,064
5,506,029
4,267,990
-
1,225,293
- 10,999,312
6,106,029
6,767,004
2,449,442
2,060,611
(91,584)
17,291,502

Page 31

THE LONDON BAPTIST ASSOCIATION

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2022 (continued)

2021 GROUP Endowment Funds Restricted Funds (per note 9) Unrestricted Funds Designated Funds General Fund 2021 COMPANY Endowment Funds Restricted Funds (per note 9) Unrestricted Funds Designated Funds General Fund	Tangible fixed assets Investments Loans to churches Net current assets Long Term Liabilities Total £ £ £ £ £ £ - - - 3,087 - 3,087 - 2,674,558 2,503,060 431,810 - 5,609,428 600,000 - 22,760 125,679 - 748,439 5,443,471 3,866,007 - 1,009,477 (86,401) 10,232,554 6,043,471 6,540,565 2,525,820 1,570,053 (86,401) 16,593,508
	Tangible fixed assets Investments Loans to churches Net current assets Long Term Liabilities Total £ £ £ £ £ £ - - - 3,087 - 3,087 - 2,674,558 2,503,060 431,810 - 5,609,428 600,000 - 22,760 172,524 (91,584) 703,700 4,526,870 3,144,360 - 241,524 (86,401) 7,826,353 5,126,870 5,818,918 2,525,820 848,945 (177,985) 14,142,568

19 DIRECTORS AND RELATED PARTY TRANSACTIONS

2 directors (2021: 2) were reimbursed travel expenses of £2,687 (2021: £1,144).

Revd P Barnard, a director, received emoluments of £42,670 (2021: £40,603) and pension contributions of £5,358 (2021: £3,930) as permitted by the Memorandum of Association.

Retirement benefits are accruing to 1 (2021: 1) director under money purchase and defined benefit schemes.

The total employee benefits of the key management personnel of the charity were £225,703 (2021: £208,365).

20 PENSIONS and PROVISIONS

The Association is an employer participating in a pension scheme known as the Baptist Pension Scheme (“the Scheme”), which is administered by the Pension Trustee (Baptist Pension Trust Limited). The Scheme is a separate legal entity and the assets of the Scheme are held separately from those of the Employer and the other participating employers.

For any month, each participating employer in the Scheme pays contributions as set out in the Schedule of Contributions in force at that time.

The Scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. This is because it is not possible to attribute the Scheme’s assets and liabilities to specific employers and means that contributions are accounted for as if the Scheme were a defined contribution scheme. The pensions costs charged to the SoFA in the year are contributions payable towards benefits and expenses accrued in that year, plus any impact of deficiency contributions (see below).

Page 32

THE LONDON BAPTIST ASSOCIATION

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2022 (continued)

The Regional Ministers and staff are eligible to join the Scheme. 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%.

Actuarial valuation as at 31 December 2019

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 Church and the other participating employers in the DB Plan are collectively responsible for funding this deficit.

The key assumptions underlying the valuation were as follows:

----- Start of picture text -----
Type of financial assumption % pa
RPI price inflation assumption 3.20
CPI price inflation assumption 2.70
Minimum Pensionable Income increases
3.20
(RPI)
Assumed investment returns
- Pre-retirement 2.95
- Post retirement 1.70
Deferred pension increases
- Pre April 2009 3.20
- Post April 2009 2.50
Pension increases
- Main Scheme pension 2.70
----- End of picture text -----

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 females with 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.

Page 33

THE LONDON BAPTIST ASSOCIATION

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2022 (continued)

20 PENSIONS (continued)

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

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.

ement in the provision is set out in the table below.
Brought forward Deficiency contributions paid in year Interest cost (recognised in SoFA) Remaining change to balance sheet liability* (recognised in SoFA) Carried forward	2022 2021 £ £ 86,401 107,377 (10,916) (18,433) 1,619 393 (77104) (2936)
	, , - 86,401

21 INVESTMENTS IN SUBSIDIARIES

The London Baptist Association holds all of the 411 'A' voting shares in the London Baptist Property Board Ltd and 683 non-voting 'B' shares. The London Baptist Property Board Ltd serves the work of the Association by acting as holding trustee for the majority of the churches in membership with the Association and by offering a facility for deposit and loan fund accounts. The LBPB is a company, number 88218 and a registered charity number 249768.

Shareholder funds in the London Baptist Property Board Ltd at 31 December 2022 were £3,836,115 (2021: £3,823,420).

A summary of income and expenditure is as follows:

Income Expenditure Net expenditure before revaluations Gains on revaluations and disposals of fixed and investment assets Net movement in funds	2022 2021 £ £ 358,849 238,460 (389,236) (253,823)
	(30,387) (15,363) 43,082 160,999 12,695 145,636

The subsidiary has been included in the consolidated accounts.

Page 34

COMPANY INFORMATION

DIRECTORS

OFFICERS

SOLICITORS

SURVEYORS

BANKERS

AUDITORS

INVESTMENT MANAGERS

GOVERNANCE AND MANAGEMENT

PRINCIPAL ACTIVITIES AND OBJECTS

THE ASSOCIATION’S ACTIVITIES AND PUBLIC BENEFIT

LBA Board

Other significant events

Pensions

Future vision

PLANS FOR THE FUTURE

Stepping out in confidence

Issues in Human Sexuality

How to be a Christian in a Post-Christian Age

Finance & Strategy

SUMMARY OF FINANCIAL ACTIVITIES FOR THE YEAR

Reserves policy

Remuneration of directors

Investment policy

Grant making policy

Fundraising disclosure

Risk Management

Statement of Directors’ Responsibilities

DISCLOSURE OF INFORMATION TO THE AUDITORS

BY ORDER OF THE BOARD

GENERAL INFORMATION

Designated Funds

Barnabas Fund

Church Extension and Reconstruction Fund

Legacy Reserve Fund

Mission Partnership Funding

Thames Gateway Project

LBA Youth Fund

Peckham Rye Fund

Restricted Funds

J W Beaumont Trust Fund (an endowment fund)

John Bradford Trust

Compassionate Trust Fund

Restricted Funds (continued)

Hounslow Baptist Church Reserve

Manse Trust Fund

T W Philpot Trust

Valley Mission Fund

Pension Fund

Jamaica Appeal

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE LONDON BAPTIST ASSOCIATION

Opinion

Basis for opinion

Conclusions relating to going concern

Conclusions relating to going concern

Opinions on other matters prescribed by the Companies Act 2006

Matters on which we are required to report by exception

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE LONDON BAPTIST ASSOCIATION

Responsibilities of directors

Auditor's responsibilities for the audit of the financial statements

Use of our report

THE LONDON BAPTIST ASSOCIATION

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2022

CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2022

Moderator

Honorary Treasurer

THE LONDON BAPTIST ASSOCIATION

COMPANY STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2022

Moderator

Honorary Treasurer

1 ACCOUNTING POLICIES

1.1 Accounting convention

1.2 Unrestricted funds

1.3 Restricted funds

1.4 Endowment funds

1.5 Properties

1.6 Computers and equipment

1.7 Pension schemes

1.8 Investments