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2023-12-31-accounts

THE LONDON BAPTIST ASSOCIATION

REPORT OF THE DIRECTORS

and

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

.

In membership with the Baptist Union of Great Britain

Charity Registration No: 1091160 Company Number: 04325272

THE LONDON BAPTIST ASSOCIATION

COMPANY INFORMATION

DIRECTORS

MrW Adetunji Miss J Noble (appointed 4 November 2023)
RevA Afriyie (resigned 4 November 2023) Mrs F Ogunyide
MissA Buhari Mr N Sherringham
RevDrADevaraj Rev DrM Thornton (appointed 4 November
2023
RevNFernandez RevLWright(resigned14March2023)

OFFICERS

Moderator Rev Dr M Thornton Regional Minister (Team Leader) Rev P Barnard * Regional Minister Rev H Abdelmasih Regional Minister (part-time) Rev W Bygrave Regional Minister (part-time) Rev J Kane Regional Minister Rev L Wright Regional Minister Rev C Nicholls Honorary Treasurer Mrs F Ogunyide Company Secretary (Vacant)

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

SOLICITORS Carter Lemon Camerons LLP 3% Floor 20 King Street London EC2V 8EG SURVEYORS Rapleys LLP 66 St James’ Street London SW1A 1NE BANKERS Barclays Bank plc Barclays Commercial Bank 1 Churchill Place London E14 5HP HSBC Bank plc 186 Broadway Didcot Oxfordshire OX11 8RP AUDITORS 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 2023

The Board of Directors has pleasure in reporting on the Financial Statements for the year ended 31 December 2023, 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.

2023 represented a year of substantial change for the Association team. We bade farewell to four key members of staff: The Revd. Lee Johnson, The Revd. Carol Bostridge, Mr. Norman Kincaid, and Mr. Pete Herbert-James. Lee was appointed as Ministries Co-Team Leader at Baptist House starting in January, concluding his four-year role with the Regional Ministry team; similarly, Carol retired as Regional Minister in July, and Norman retired in August; concluding his twelve years of faithful service as Association Administrator and Company Secretary. Pete also concluded his significant ministry with the Association as CYF Lead in the latter part of 2023 as he began to seek settlement following a course of study at Cardiff Baptist College. We place on record our thanks to these four individuals and their committed service of the churches across London.

With these substantial departures, we welcomed several new members of staff. The changes to the regional team saw the arrivals of three new members of staff: The Revd. Claire Nicholls (formerly minister of New Addington Baptist Church); The Revd. Lucy Wright (formerly minister of Eltham Park Baptist Church); and The Revd. Josh Kane (currently also minister of Mill Hill East Church). Claire and Lucy began full-time roles with the Association in April, with Josh part-time in March, remaining in post at his current church, alongside his wife, Rachel.

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THE LONDON BAPTIST ASSOCIATION

REPORT OF THE BOARD OF DIRECTORS FOR THE YEAR ENDED 31°’ DECEMBER 2023 (CONTINUED)

Norman's retirement left a substantial gap to fill in our organisation. Through a recruitment process, we appointed Ms. Laura Tomlinson as his successor. Laura began work alongside Norman in July - with a lengthy handover period. Unfortunately, Laura’s time with us proved short-lived, and she departed her position in April 2024. We are thus facing another recruitment process.

In pursuit of its charitable objects, the Association team continues to encourage and support churches and ministers in these uncertain and changed times. Since COVID, our churches have been largely diminished in attendance and that continues to be a challenge for ministers across the Capital. Yes, there are great examples of innovation and growth, but ‘institutional Christianity’ is something which is in profound decline across the UK. We have realised that COVID was the trigger for the demographic timebomb (our overwhelming dependence on those from the ‘Boomer’ and ‘Builder’ generations) to detonate. Many congregants have simply not ‘come back’ and many have also moved out of the Capital. With the stress and mental health challenges facing society, the need continues to be felt. The Association staff team continues to regularly visit churches and ministers, both individually and in local clusters, for encouragement and advice. The Association staff team continues to work in a flexible manner: both centrally, and from home. Staff are generally to be found now at the Dock Street offices most Tuesdays, and our building is being used for meetings of all types: both regional and national. A great use of our asset for the benefit of our network of churches. Our relationships with churches and ministers continues to remain largely strong and steadfast due to the commitment of the Regional Team to the service of our churches. However, the continued tensions within the Baptist Union over the proposed change to the Ministerial Recognition Rules brought to BUGB Council in March 2022 have put us in a very difficult position. At that Council, it was suggested that the rules be changed to allow people in same-sex marriages to be accredited as Baptist Ministers. This has caused substantial theological tension across our national movement, and the matter is shortly to be resolved at the March 2024 Council. London Baptists represents one of the most orthodox or traditional groups of churches in the country and the Regional Team have been hard pressed to demonstrate our support to our member churches in the face of this current uncertainty. That said, we have seen churches reduce their giving to Home Mission because of this controversy. Since before the pandemic, we have seen the giving to the national appeal reduce by 25%. Some of these issues can be ascribed to reduced church attendance, but we are confident that some of these reductions are linked to disagreements over the current theological tensions. The Baptist Union are currently considering substantial reorganisation through the ‘Financial Model Review’ (previously involving Tricordant, a management consultancy).

The Revd. Phil Barnard represented 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. This was enhanced by the appointment of new members of the Regional Team, The Revd. Claire Nicholls, and The Revd. Josh Kane, to the Board in the latter part of the year. The Property Board, continues to build on its strategic review — with changes to the LB website improving our communications. We have seen, due to a generous stance, the LBPB continue to accrue greater deposits from our member churches throughout 2023.

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, and Baptist Union Council. He also moderates the Regional Team Leaders group and is a member and trustee of the ecumenical London Church Leaders charity. In 2023, he was able to also represent Baptists Together at the Baptist World Alliance General Meeting / EBF SENT Conference in Stavanger, Norway.

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THE LONDON BAPTIST ASSOCIATION

REPORT OF THE BOARD OF DIRECTORS FOR THE YEAR ENDED 31ST DECEMBER 2023 (CONTINUED)

The Revd. Hany Abdelmasih represents the Association nationally as part of the BUGB Mission Forum and Small Churches Network. He also continued to oversee our Intercessory Prayer Group, Mission Hub, and Chaplains Connect Group, and Refugee Network. Upon her appointment, Rev. Lucy Wright succeeded Rev. Lee Johnson 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. Claire Nicholls represents the Association on the steering group of Churches Together in South London; and represents the Baptist Union on the JPIT Strategy and Policy Group. The Revd. Winston Bygrave makes significant contributions around theological and lay training; both within and beyond his geographical pastoral area. The Revd. Josh Kane participates in the National Church Planting Network core group.

Mr. Pete Herbert-James resigned his position as CYF Lead in the Autumn of 2023 as he prepared to seek a ministerial role within a church. He has since been called to Balham BC as pastor. The LB Directors, recognising the loss of Pete's expertise, have taken steps to fill the substantial gap in our provision. They have since appointed the HEBE Foundation to replace Pete’s CYF component. His work with Younger Adults / Internships will be taken up by Regional Minister Rev. Josh Kane.

Mrs. Rachel Swaby, the LB Safeguarding Lead, continues to provide an excellent support service to our churches in terms of safeguarding cases and training. Indeed, we have increased her hours to 0.8FTE because of the demands on her time. We are grateful for Rachel’s ongoing tenacity and diligence in her service of the Association churches. She continues to work closely with the national team based at Baptist House. Our two interns, Mrs. Jennifer Esposito and Miss. Anna Adeleye concluded their placements with us in the summer. In a positive development, Jennifer, and her husband, along with around thirteen other young leaders across London, attended the European Baptist Federation SENT Conference in Norway during July. LB helped fund this trip as a way of investing in younger leaders. This was an incredible event featuring around thirty young leaders from the UK — and others from across Europe. Apart from the host nation, the UK delegation was the largest in the continent. Unfortunately, however, we were unable to attract any further interns for the year 2023-24. That said, we are hopeful to see further interns in the following year.

LBA Board

We continue to hold all of our director's meetings online and did so throughout 2023. We held an awayday on the 25" March to discuss, in particular, some of the current theological tensions within the Union — but also to give further thought to financial strategy in the light of continual decline of Home Mission. In London, we have seen a drop of 25% in Home Mission giving since before the pandemic. The Board is aware of the need to improve the income from our investments (property and financial) in the light of this challenge.

Our AGM was held on the 4" November 2023 via zoom. With the significant changes to the Team, we decided to opt for an online meeting. At the AGM, we were able to appoint two new directors: Miss. Jade Noble (Perry Rise BC) and The Revd. Dr. Mike Thornton (Epsom BC); and re-appoint Miss. Nosa Idehen (Barking BC) for a second term. Mike has taken the role of Association Moderator, succeeding The Revd. Alex Afriyie who had to stand down having served his second-term of three years in the role, as had Mrs. Marilyn Ross. 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. There remains one vacancy on the Board.

It was exciting to welcome a new member church at the AGM: Jubilee Priesthood Centre in Feltham. It was noted however that one church had chosen to close during the year: Marks Gate Baptist Church near Romford. Thus, Association membership remains at 291 churches.

The Marks Gate premises reverted to the Association under the ultimate trust and is currently being marketed for sale. The Board have stated that these monies will be used for mission in its broadest sense.

The Clayhall Baptist Church site (closed 2022) was eventually sold in early 2023 and just under half of the proceeds used to purchase a further manse for our Regional Team at 56a Sydney Road, Abbey Wood. We are now fortunate to have manses spread across London helping facilitate close support of the neighbouring churches.

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THE LONDON BAPTIST ASSOCIATION

REPORT OF THE BOARD OF DIRECTORS FOR THE YEAR ENDED 31ST DECEMBER 2023 (CONTINUED)

Other significant events

Our annual Ministers Conference was very well attended, as usual, at High Leigh Conference Centre (Hoddesdon) on 6-8 February. We were pleased to welcome The Rt. Revd. Graham Tomlin (former Anglican Bishop of Kensington) as our keynote speaker. The Team Leader also offered his now traditional ‘state of the union’ address. We were blessed to have around 130 ministers and guests in attendance and welcomed, for the second year in succession, Steve and Velveta Thompson as our guest worship leaders.

A further important event, in support of our churches, was the organisation of a Fresh Streams Theology Day on the theme of Human Sexuality. This was held at Mill Hill Church on the 28" February with around sixty ministers and leaders in attendance. The event was designed to help people think through the theological and pastoral implications of different perspectives on the subject.

Another significant event in the corporate life of the association was the induction of our new Regional Team Members (Lucy, Josh and Claire) at Westbourne Park Baptist Church on 20° May. The General Secretary of the Baptist Union, The Revd. Lynn Green, preached; the worship was led by a team from The Kings Cross Baptist Church.

We also held our first ‘Empowering Women Leaders Day’ at the Kings Cross Baptist Church on 1* July which was an inspirational event seeking to encourage, build confidence, and create opportunities for women in leadership across London. Around fifty women leaders attended.

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. Due to the ‘Buy In’ process overseen by BUGB the deficit payments were suspended for scheme participants in 2022. It is expected that the final ‘Buy Out’ of the scheme will occur in the first quarter of 2024.

Future vision

Looking ahead into 2024, the Directors of the Association have outlined several clear objectives.

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THE LONDON BAPTIST ASSOCIATION

REPORT OF THE BOARD OF DIRECTORS FOR THE YEAR ENDED 31ST DECEMBER 2023 (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 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 twenty-eight District Ministers offered encouragement to fellow ministers in their respective districts. We held two gatherings of these valuable volunteers during 2023.

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, temporarily succeeded by Ms. Laura Tomlinson, have 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 and charities, totalling £84,530. Dr. Colin Hicks has responsibility for administering the application process which had included running several workshops to explain the criteria and assessment process. Other material grants from the Mission Partnership Fund included a further £10,000 to the Northern Baptist Association in the light of their challenging financial sustainability; and £5,000 to River Tree as a contribution to send thirteen younger leaders from London as representatives to the EBF/SENT Conference in Stavanger, Norway.

The Ministerial Recognition Committee met on five occasions during the year. Nine new candidates were interviewed and all nine were commended as potential ministerial candidates. One person was interviewed to become Nationally Recognised Pastor this is due to the fact that this category is closing, and the transition is being made to the category of Recognised Local Minister. Additionally, twelve Newly Accredited Ministers were interviewed at the end of their probationary periods and commended for full accreditation. A further three 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 £355,026 (2022: £377,475) to the Baptist Union Home Mission Fund appeal and £109,800 (2022: £113,021) 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 2023 (CONTINUED)

PLANS FOR THE FUTURE

Future Mission in a Changing World

Issues in Human Sexuality

Project Violet

From Multiethnic to Intercultural Church

Finance & Strategy

SUMMARY OF FINANCIAL ACTIVITIES FOR THE YEAR

The financial results of the year 2023 are set out in the accompanying financial statements. With regard to the company accounts, there was a positive movement for the year £1,203,251 (2022: £3,148,934) after revaluation gains of £356,399 (2022: losses of £269,759) taking the total net assets of the LBA, including restricted and endowment funds, to £18,494,753 (2022: £17,291,502). The surplus includes £1,000,000 donations of property following the closure of Marks Gate Church.

The Consolidated Statement of Financial Activities consequently shows a positive movement of funds in the year of £1,205,051 after consolidation adjustments (2022: £3,166,418).

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THE LONDON BAPTIST ASSOCIATION

REPORT OF THE BOARD OF DIRECTORS FOR THE YEAR ENDED 31ST DECEMBER 2023 (CONTINUED)

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 2023, the free reserves of LBA (being the company unrestricted fund net current assets and listed investments) were £2,978,749 (2022: £2,475,991). The residual free reserves are considered to be adequate in line with the agreed policy.

The principal source of regular general fund income in 2023 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 Baptist Union are undergoing a serious review as to how the Home Mission fund is gathered and distributed and we suspect there will be substantial changes decided in 2024.

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 2023, 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 £100,735 (2022: £88,067) 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.

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THE LONDON BAPTIST ASSOCIATION

REPORT OF THE BOARD OF DIRECTORS FOR THE YEAR ENDED 315’ DECEMBER 2023 (CONTINUED)

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 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:

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THE LONDON BAPTIST ASSOCIATION

REPORT OF THE BOARD OF DIRECTORS FOR THE YEAR ENDED 31ST DECEMBER 2023 (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:

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 Dr. M Thornton

Moderator Unit C2, 15, Dock Street, London E1 8JN 14 May 2024

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THE LONDON BAPTIST ASSOCIATION

GENERAL INFORMATION

Designated 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.

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.

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THE LONDON BAPTIST ASSOCIATION

GENERAL INFORMATION

Restricted Funds (continued)

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.

Clayhall Fund

This fund was created througha gift of the now closed Clayhall Baptist Church in Ilford. It is for the support of community projects in deprived areas of London, or to support LBA evangelists and families working in their communities reaching out with the message of salvation through Jesus.

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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 2023 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:

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:

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:

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THE LONDON BAPTIST ASSOCIATION

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

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.

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:

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: NZ. Jawa. to2y

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----- End of picture text -----

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CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2023

Rute 2023 2022
£ £ £ £
FIXED ASSETS
Tangible fixed assets 2a 7,579,455 7,043,029
Investments 3a 6,176,605 7,514,732
Concessionary loans to churches 4 2,270,530 2,449,442
16,026,590 17,007,203
CURRENTASSETS
Debtors (including £1,856,465
(2022: £2,236,907) recoverable 5a
aftermore than one year) 3,192,389 2,990,661
Assets held for sale 6 1,000,000 1,000,000
Investments (Short term deposits) 11,235,834 6,955,980
Cash held by stockbrokers 68,742 58,334
Cash at bank 5,049,390 6,449,300
20,546,355 17,454,275
CREDITORS:
“an failingduewithinone Ja (15,607,968) (14,701,552)
NET CURRENT ASSETS 4,938,387 2,752,723
Total Assets less current liabilities 20,964,977 19,759,926
PROVISIONS FOR LIABILITIES 20 . -
NETASSETS 18 20,964,977 19,759,926
ENDOWMENT FUNDS 9 3,087 3,087
RESTRICTED FUNDS 9
Realised funds 4,785,278 4,647,597
Revaluation reserve 17 823,827 820,442
5,609,105 5,468,039
UNRESTRICTED FUNDS
Realised funds— Other funds 13,699,707 12,255,054
Revaluation reserve 17 1,653,078 2,033,746
15,352,785 14,288,800
20,964,977 __ 19,759,926

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 14 May 2024 and signed on their behalf:

Moderator Rev Dr M Thornton

lit Mrs F Ogunyide

Page 16

THE LONDON BAPTIST ASSOCIATION

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Note £ £
Cash (used in)/provided by operating activities (i) ( 183,417) 3,387,813
Cash flows from investing activities
Dividends, interest and rents from investments 797,388 291,462
Purchase of fixed assets ( 562,725) -
Proceeds on sale of investments 2,052,688 711,737
Proceeds from assets held for sale 1,265,706 -
Purchase of investments (658,200) (804,580)
Net advances of long term loans to churches 178,912 76,377
Cash provided by investing activities 3,073,769 274,996
Increase in cash and cash equivalents in the year 2,890,352 3,662,809
Cash and cash equivalents as at 1 January 13,463,614 9,800,805
Cash and cash equivalents as at 31 December 16,353,966 13,463,614
(i) Reconciliation of net income to cash flowsfrom operating activities
Net movement in funds 1,205,051 3,166,418
Depreciation charges 3,299 2,442
Dividends, interest and rents from investments ( 797,388) (291,462)
Property grants in the year (1,000,000) (3,110,000)
Gains/(losses) on tangible fixed assets 23,000 ( 17,000)
Gains on assets held for sale ( 265,706) -
(Gains)/losses on investment assets ( 56,361) 243,677
(Increase)/ decrease in debtors ( 201,728) 734,066
Increase in creditors 906,416 2,659,672
Cash(usedin)/providedbyoperatingactivities (_ 183,417) 3,387,813

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THE LONDON BAPTIST ASSOCIATION

COMPANY BALANCE SHEET AT 31 DECEMBER 2023

Company number: 04325272

nate 2023 2022
£ £ £ £
FIXED ASSETS
Tangible fixed assets 2b 6,665,455 6,106,029
Investments 3b 6,108,126 6,767,004
Concessionary loans to churches 4 2,270,530 2,449,442
15,044,111 15,322,475
CURRENTASSETS
Investments (Deposits with the London
Baptist Property Board) 2,676,484 1,187,998
Debtors 5b 429,303 16,784
Assets held for sale 6 1,000,000 1,000,000
Cash held by stockbrokers 68,742 58,334
Cash at bank and in hand 37,994 18,445
4,212,523 2,281,561
CREDITORS: AMOUNTS FALLING
DUE WITHIN ONE YEAR
Sundry creditors 7b (670,297) (220,950)
NETCURRENT ASSETS 3,542,226 2,060,611
Total Assets less current liabilities 18,586 337 17,383,086
CREDITORS: AMOUNTS FALLING
DUE AFTER ONE YEAR
Loans from the London Baptist
Property Board Limited		 15 (91,584) (91,584)
PROVISION FOR LIABILITIES 20 “ :
NETASSETS 18 18,494,753 17,291,502
REPRESENTED BY FUNDS:
ENDOWMENT FUNDS 9 3,087 3,087
RESTRICTED FUNDS i}
Realised funds 4,785,278 4,647,597
Revaluation reserve 17 823,827 820,442
5,609,105 5,468,039
UNRESTRICTED FUNDS 8
Realised funds — Other funds 12,180,598 11,138,092
Revaluation reserve 17 701,963 682,284
12,882,561 11,820,376
18,494,753 17,291,502
ApprovedbytheBoardofDirectors14May 2024andsigned ontheir behalf:

Moderator

Moderator Honorary Treasurer Rev Dr M Thornton Mrs F Oguny\de

Page 19

THE LONDON BAPTIST ASSOCIATION

SUMMARY INCOME AND EXPENDITURE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Group Company Group Company
= £ £ £
Income 1,677,222 1,547,025 4,008,410 3,923,328
Interest and investment income 797,388 198,983 291,462 148,779
Gains/(losses) on investments 322,067 356,399 (243,677) (269,759)
Gross income in the reporting period 2,796,677 2,102,407 4,056,195 3,802,348
Expenditure 1,565,327 895,857 904,335 647,573
Depreciation 3,299 3,299 2,442 5,841
Total expenditure in the reporting
period 1,568,626 899,156 906,777 653,414
Surplusfor the year 1,228,051 1,203,2513,149,418 3,149,418 3,148,934
STATEMENT OF COMPREHENSIVE INCOME
2023 2022
Group Company Group Company
£ £ £ £
Surplus for the year 1,228,051 1,203,251 3,149,418 3,148,934
(Losses)/gains on revaluation of fixed
assets (23,000) - 17,000 -
Comprehensiveincomefortheyear 1,205,051 1,203,251 3,166,418 3,148,934

Page 20

THE LONDON BAPTIST ASSOCIATION NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2023 (continued)

1 ACCOUNTING POLICIES The London Baptist Association (LBA) is a company limited by guarantee and registered in England (number 4352572) and is a registered charity (no 1091160). Its registered address is: Unit C2, 15 Dock Street, London E1 8JN.

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 financial statements are prepared in pounds sterling rounded to the nearest pound.

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.

nerd 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 asa 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.

4:5 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. The Baptist Union Great Britain Defined Benefit Scheme is to be bought out in 2024. A provision has been made for the total contributions due. This is detailed in Note 20.

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.

Page 21

THE LONDON BAPTIST ASSOCIATION

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2023 (continued)

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 ofopening of the deposit.
1.11. Creditors and provisions
Creditors and provisions are recognised where the charity has a present obligation arising from a pastevent
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 thatqualify as basicfinancial 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 thatthe
income will be received and the amount can be measured reliably.
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		 Computersand
Equipment		 Computersand
Equipment		 Total Total
£ £ £ £
Cost or valuation
1 January 2023 5,219,488 1,820,242 40,336 7,080,066
Additions 562,725 i : 562,725
Disposals - - - -
Revaluation deficit (_
23,000)		 = Ss (_ 23,000)
31 December 2023 5,759,213 1,820,242 40,336 7,619,791
Depreciation
1 January 2023 : - 37 ,037 37,037
Charge for the year - . 3,299 3,299
Released on disposal - 5 m 7
31 December 2023 : = 40,336 40,336
Net Book Value
8 LIRA SOS
31 December 2022
Historical cost for land and buildings included at valuation:
31 December 2023 5,276,020 1,820,242 7,096,262
31December2022 4,713,295 1,820,242 6,533,537

The properties were last valued by the directors at 31st December 2023 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 2023 (continued)

2b TANGIBLE FIXED ASSETS —-COMPANY
Freehold
Properties
P		 Leasehold
Properties
P		 Computers
endl
Equipment		 rote
£ £ £ £
Cost or valuation
1 January 2023 4,282,488 1,820,242 34,601 6,137,331
Additions 562,725 - - 562,725
Disposals - - . .
Revaluation surplus/(deficit) - - - -
31 December 2023 4,845,213 1,820,242 34,601 6,700,056
Depreciation
1 January 2023 - - 31,302 31,302
Charge for the year - - 3,299 3,299
Released on disposal - - - -
31 December 2023 - - 34,601 34,601
Net Book Value
31 December 2023
31 December 2022 4,282,488 1,820,242 3,299 6,106,029
Historical cost for land and buildings included at valuation:
31 December 2023 4,401,020 1,820,242 6,221,262
31 December 2022 3,838,295 1,820,242 5,658 537
3a INVESTMENTS —-GROUP
?
invent crite		 wea oents Freehold
siciaimas i
properties		 va
£ £ £ £
Valuation
1 January 2023 2,669,844 202,058 4,642,830 7,514,732
Additions 658,200 - . 658,200
Disposals (1,380,578) . (643,000) (2,023,578)
Revaluation surplus/(deficit) 63,500 (4,749) (31,500) 27,251
31 December 2023 2,010,966 197.309 3,968,330 6,176,605
Historical Cost
31 December 2023 1,821,199 149,805 2,211,890 4,182,894
31December2022 2,503,141 149,805 2,513,792 5,166,738 _

The properties were last valued by the directors at 31st December 2023 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 2023 (continued)

3b )=©6 INVESTMENTS — COMPANY

GeneralFund Shares
LBPB		 Shares
LBPB		 .
in		 .
Listed
voRerients		 Freehold
.
investment
properties		 Total
£ £ £ £
Market value or valuation at 1 January 2023 1,379,330 960,810 1,927,850 4,267,990
Additions - 332,332 - 332,332
Disposals - (354,558) - (354,558)
Revaluation surplus - 8,986 - 8,986
Market value or valuation at
31 December 2023 1,379,330 947,570 1,927,850 4,254,750
Historical cost or probate value at
31 December 2023 1,379,330 920,020 1,697,630 3,996,980
31 December 2022 1,379,330 952,939 1,697,630 4,029,899
The company holds 100% of the ‘A’ shares in its subsidiary, The London Baptist Property Board Limited.
Restricted and Endowment Funds Listed
aa		 Freehold
investment
properties		 Total
£ £ £
Market value or valuation at 1 January 2023 1,709,034 789,980 2,499,014
Additions 325,868 - 325,868
Disposals (1,026,020) - (1,026,020)
Revaluation surplus 54,514 - 54,514
Market value or valuation on 31 December 2023 1,063,396 789,980 1,853,376
Historical costorprobate valueat31 December2023 2023 901,179 128.370 1,029,549
Historical cost or probate value at 31 December 2022 1,550,202 128,370 1,678,572
TOTAL Shares
LBPB		 ;
in		 3
Listed
lveannenes		 Freehold
:
investment
properties		 Total
£ £ £ £
Market value or valuation at 1 January 2023 1,379,330 2,669,844 2.717,830 6,767,004
Additions - 658,200 - 658,200
Disposals - (1,380,578) - (1,380,578)
Revaluation surplus - 63,500 - 63,500
Market value or valuation at
31 December2023 te oo OCS 17890 8.108.126
Historical cost or probate value at
31 December 2023 1,379,330 1,821,199 1,826,000 5,026,529
31December2022 1,379,330 2,503,141 1,826,000 5,708,471

aBigge 2A

THE LONDON BAPTIST ASSOCIATION NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2023 (continued)

4 LOANS TO CHURCHES —- GROUP AND COMPANY LOANS TO CHURCHES —- GROUP AND COMPANY LOANS TO CHURCHES —- GROUP AND COMPANY LOANS TO CHURCHES —- GROUP AND COMPANY
Restricted Restricted
Designated and 2023 Designated and 2022
Fund Endowment Total Fund Endowment Total
Funds Funds
£ £ £ £ £ £
Permanent loans 21,010 568,699 589,709 21,010 615,228 636,238
Fixed loans
1,750		 1,679,071 1,680,821_ 1,750 1,811,454 1,813,204
22,760 2,247,770 2,270,530 22,760 2,426,682 2,449,442
Permanent loans are repayable on closure, withdrawal or sale ofthe site and are in most cases interest-free. Fixed-
term loans are interest-free. These loans are predominantly payable after more than one year.
The group has the following capital commitments at 31 December:
2023 2022
£ £
Loan facilities approved but not yet taken up - 269,000
5a DEBTORS —- GROUP
2023 2022
= £
Advances (financial assets measured at amortised cost) 2,654,371 2,966,466
Short-term loan 401,218 -
Prepayments and sundry debtors 27,008 18.401
Accrued income 109,792 5,794
3,192,389 2,990,661
5b DEBTORS —- COMPANY
2023 2022
£ £
Short-term loan 401,218 =
Prepayments and sundry debtors 24,080 14,792
Accrued income 4,005 1,992
429,303 16,784
6 ASSETS HELD FOR SALE — GROUP and COMPANY
2023 2022
£ s
Property held for sale— Mark’s Gate Church 1,000,000 -
Property held for sale — Clayhall Baptist Church - 1,000,000
7a CREDITORS —- GROUP
2023 2022
Amounts fallingdue within one year es £
7 day notice deposits and interest accrued 14,929,415 14,470,937
Sundry creditors and accruals 678,553 230,615
15,607,968 14,701,552
7b CREDITORS - COMPANY
2023 2022
Amounts falling due within one year £ £
Sundry creditors and accruals 670,297 220,950
Page25

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.

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THE LONDON BAPTIST ASSOCIATION

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2023 (continued)

10 NET INCOME/(EXPENDITURE) FOR THE YEAR

This is stated after charging:

2023 2023 2022 2022
Group Company Group Company
£ £ £ £
Employment costs (see note 13) 378,518 317,871 278,158 219,276
Depreciation 3,299 279 2,442 5,841
Auditors’ remuneration:
Audit services 15,120 8.400 13,980 7,800
Preparation of financial statements 8,862 8,862 8,906 ;
8,906
11 CHURCH CONTRIBUTIONS — GROUP AND COMPANY
2023 2022
£ =
Other church contributions 132,732 124,312
132.732 124,312
12 GRANTS
2023 2022
No Group No Company
No_-		 Group No Company
£ £ £ .
saatWrehurcee anc
organisations		 14 99,530 14 99,530
13		 84,080 13 84,080
Individuals 4 1,205 4 1,205:
$1		 3,987 11 3,987
100,735 100,735 88,067 88,067
Material grants included above: 2023 2022
£ £
London Turning 12,375 .
Shoreditch Tabernacle 13,000 -
Stoke Newington Baptist Church 1,655 .
Pinner FC 2,000 .
South Wales Baptist College 1,000 -
The Northern Baptist Association 10,000 -
Regents Park College 500 -
River Tree 5,000 -
Hebe Foundation 10,000 9,000
Mill Hill East Baptist Church 13,250 9,000
Old Lodge Lane Baptist Church 10,000 10,250
International Praise Centre 12,000 12,000
Third Space Ministries 7,000 7,000
Deep Water Baptist Church 1,750 7,500
Peckham Park Baptist Church - 3,000
Stoke Newington Baptist Church . 1,545
London Network Church - 7,035
London Spanish Speaking Church - 2,250
The Kings Cross Baptist Church - 5,000
East Hill Baptist Church - 9,000
Jamaica Appeal - 1,500
99,530 84,080

Page 28

THE LONDON BAPTIST ASSOCIATION

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2023 (continued)

13 SUPPORT TO CHURCHES
2023 2022
Group Company Group Company
£ £ £ E
Employment costs:
Salaries 322,035 271,491 299,042 249,959
National Insurance — employers 25,053 19,959 24,497 19,376
Pension contributions — employers 31,430 26,421 30,104 25,426
Defined benefitscheme movement " - (75,485) (75,485)
378,518 317,871 278,158 219,276
Printing and stationery 1,460 1,426 1,537 1,452
Postage and telephone 13,893 11,927 12,405 10,926
Premises costs 130,039 160,033 46,580 78,408
Professional fees 41,805 9,582 37,013 8,906
Committee and conference expenses 36,119 35,520 27,888 27,366
Computer and office equipment 14,838 12,283 10,300 7,958
Travel expenses 21,654 20,242 17,975 17,582
Subscriptions 4,652 4.652 4,605 4,605
Bank charges 1,030 1,105 873 290
Depreciation 3,299 279 2,442 5,841
Loan interest 580,908 3,299 175,405 -
Contributions to BUGB Home Mission 109,800 109,800 113,021 113,021
Grants (note 12) 100,735 100,735 88,067 88,067
Sundry expenses 20,829 18,312 20,810 17,835
Governance costs — auditors
remuneration 15,120 8,400 13,980 7,800
___1,474,699 815,766 851,059© 609,333

The average number of employees during the year was 11 (2022: 11). No employee earned £60,000 or more during the year (2022: none). Included in staff costs are £nil of redundancy costs (2022: £nil).

14. INVESTMENT INCOME

2023 2022
Group Company Group Company
£ £ 3 £
Rent from investment properties 74,775 63,217 62,831 48,295
Dividends 88,700 76,944 97,256 85,843
Interest on short term deposits 633,913 58,822 131,375 14,641
797,388 198,983 291,462 148,779

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.

Page 29

THE LONDON BAPTIST ASSOCIATION

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2023 (continued)

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 2023 was 291.

yf REVALUATION RESERVE

REVALUATION RESERVE
Investment
Properties		 Investments Freehold
Properties		 Total
2023 = £ £ £
GROUP
Balance at 1 January 2023 2,129,038 218,957 506,193 2,854,188
Unrealised (losses)/gains on revaluations (31,500) 58,751 (23,000) 4,251
Realised in the year (341,098) (40,436) Es (381,534)
Balance at 31 December 2023 1,756,440 237,272 483,193 2,476,905
Investment
Properties		 Investments Freehold
Properties		 Total
2023 £ £ £ t
COMPANY
Balance at 1 January 2023 891,830 166,703 444,193 1,502,726
Unrealised gains on revaluations - 63,500 - 63,500
Realised in the year . (40,436) - (40,436)
Balance at 31 December 2023 891,830 189,767 444,193 1,525,790
Investment
Properties		 incne tenets Freehold
Properties		 Total
2022 £ £ £ £
GROUP
Balance at 1 January 2022 2,061,498 627,822 489,193 3,178,513
Unrealised gains/(losses) on revaluations 67,540 (303,935) 17,000 (219,395)
Realised in theyear - (104,930) - (104,930)
Balance at 31 December 2022 2,129,038 218,957 506,193 2,854,188
Investment
Properties		 Investments Freehold
Properties		 Total
2022 ie £ £ £
COMPANY
Balance at 1 January 2022 862,290 563,650 444,193 1,870,133
Unrealised gains/(losses) on revaluations 29,540 (292,017) - (262,477)
Realised in the year - (104,930) - (104,930)
Balanceat31December2022 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 2023 (continued)

18 ANALYSIS OF NET ASSETS BETWEEN FUNDS

eT ous Tangible
fixed
assets		 Investments aura Net
current
assets		 Total
£ £ & £ £
Endowment Funds - - . 3.087 3,087
Restricted Funds
(per note 9) - 1,853,376 2,247,770 1,507,959 5,609,105
Unrestricted
Funds
Designated Funds 600,000 - 22,760 99.414 722,174
General Fund 6,979,455 4,323,229 - 3,327,927 14,630,611
7,579,455 6,176,605 2,270,530 4,938.387 20,964,977
ounANY Tangible
fixed
assets		 Investments Net
current
assets		 Long Term
Liabllities
£ £ £ £ £ £
Endowment Funds - - - 3,087 - 3,087
Restricted Funds
(per note 9) - 1,853,376 2,247,770 1,507,959 - 5,609,105
Unrestricted
Funds
Designated Funds 600,000 - 22,760 213,998 (91,584) 745,174
General Fund 6,065,455 4,254,750 - 1,817,182 - 12,137,387
6,665,455 6,108,126 2,270,530 3,542,226 (91,584) 18,494,753
oi Tangible
fixed
assets		 Investments mh Net
current
assets		 Total
£ £ £ £ £
Endowment Funds . - - 3,087 3,087
Restricted Funds
(per note 9) - 2,499,014 2,426,682 542,343 5,468,039
Unrestricted
Funds
Designated Funds 600,000 - 22,760 212.719 835,479
General Fund 6,443,029 5,015,718 - 1.994.574 13,453,321
7,043,029 7,514,732 2449442 2.752.723 19,759,926

Page 31

THE LONDON BAPTIST ASSOCIATION

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2023 (continued)

18 ANALYSIS OF NET ASSETS BETWEEN FUNDS (continued)

eaeANY Tangible
fixed
assets		 Investments ean Net
current
assets		 LongTerm
Liabilities		 Total
£ £ z £ £ £
Endowment Funds - - - 3,087 . 3,087
Restricted Funds
(per note 9) - 2,499,014 2,426,682 542,343 - 5,468,039
Unrestricted
Funds
Designated Funds 600,000 - 22,760 289,888 (91,584) 821,064
General Fund 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

19 DIRECTORS AND RELATED PARTY TRANSACTIONS

3 directors (2022: 2) were reimbursed travel expenses of £3,161 (2022: £2,687).

Rev P Barnard, a director, received emoluments of £43,980 (2022: £42,670), pension contributions of £4,361 (2022: £5,358) and was provided with accommodation costing £36,000 (2022: £36,000) as permitted by the Memorandum of Association.

Retirement benefits are accruing to 1 (2022: 1) director under money purchase and defined benefit schemes.

The total employee benefits of the key management personnel of the charity were £220,628 (2022: £261,703).

20 PENSIONS AND PROVISIONS

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

The Scheme, previously known as the Baptist Ministers’ Pension Fund, started in 1925, but was closed to future accrual of defined benefits on 31 December 2011. Prior to this date the main benefit provided through the Defined Benefit (DB) Plan was a pension of one eightieth of final minimum pensionable income for each year of pensionable service together with additional pension in respect of premiums paid on Pensionable Income in excess of Minimum Pensionable Income.

From January 2012, pension provision is being made through the Defined Contribution (DC) Plan within the Scheme. In general, members pay 8% of their Pensionable Income and employers pay 6% of members’ Pensionable Income into individual pension accounts, which are operated and managed on behalf of the Pension Trustee by Broadstone Corporate Benefits Ltd. In addition, the employer pays a further 4% of Pensionable Income to cover Death in Service Benefits, administration costs, and an associated insurance policy which provides income protection for Scheme members if they are unable to work due to long-term incapacity. This income protection policy has been insured by the Baptist Union of Great Britain with Aviva Limited. The Defined Benefit Scheme is to be bought out in full in 2024, at which point all remaining liabilities will be removed from participating employers.

The Scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. Because it is not possible to attribute the Scheme’s assets and liabilities to specific employers, the scheme is accounted for as if the Scheme were a defined contribution scheme.

The Ministers are eligible to join the Scheme.

Page 32

THE LONDON BAPTIST ASSOCIATION NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2023 (continued)

  1. INVESTMENTS IN SUBSIDIARIES

20 PENSIONS AND PROVISIONS (continued)

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. 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.

movement in the provision is set out in the table below.
2023 2022
£ £
Broughtforward - 86,401
Deficiency contributions paid in year - (10,916)
Interest cost (recognised in SoFA) - 1,619
Remaining change to balance sheet liability” - (77,104)
(recognised in SoFA)
Carriedforward - -

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. Its registered address is: Unit C2, 15 Dock Street, London E1 8JN.

Shareholder funds in the London Baptist Property Board Ltd at 31 December 2023 were £3,837,915 (2022: £3,836,115).

A summary of income and expenditure is as follows:

2023 2022
£ £
Income 874,362 358,849
Expenditure (815,230) (389,236)
Net expenditure before revaluations 59.132 (30,387)
(Losses)/gainson revaluations and disposals offixed and investment
assets		 (57,332) 43.082
?
Netmovementinfunds 1,800 12,695

The subsidiary has been included in the consolidated accounts.

Page 33