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West of England Baptist Association (A Company limited by Guarantee) Operating as Webnet
ANNUAL REPORT & ACCOUNTS
for the year ended 31 December 2023
Registered in England Company number: 04326752
Charity number: 1092443.
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| @ westofenglandbaptistnetwork | |
|---|---|
| Contents Page | 2 |
| Trustees’ report | 3 |
| Objectives and activities | 3 |
| Achievements and performance | 3 |
| Financial review, investment performance and | |
| principal financial management policies | 7 |
| Reference and administrative information | 9 |
| Structure, Governance and Management | 10 |
| Statement of trustees’ responsibilities | 11 |
| Independent examiner’s report | 12 |
| Statement of financial activities | 13 |
| Balance Sheet | 15 |
| Notes to financial statements | 16 |
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Report of the trustees for the year ended 31 December 2023
The trustees are pleased to present their report with financial statements of the charity for the year ended 31 December 2023. Throughout this document, The West of England Baptist Association is referred to by its current operating name “Webnet”.
Reference and administrative information set out on page 9 forms part of this report. The financial statements comply with current statutory requirements, the memorandum and articles of association, the Accounting and Reporting by Charities: Statement of Recommended Practice (SORP FRS 102) and in accordance with the special provisions for small companies under the Companies Act 2006.
Objectives and Activities
Public Benefit
The trustees have considered the Commission’s guidance on public benefit under the Charities Act 2011 and the specific guidance on charities for the advancement of religion.
Objects of the charity
The principal object of the charity continues to be the advancement of the Christian faith, especially by the means of, and in accordance with, the principles of the Baptist denomination as set out for the time being in the Declaration of Principle of the Baptist Union of Great Britain.
In fulfilling the objects of the Association trustees devised a purpose statement a few years ago which remains core to programmes and activities: -
“Webnet is a fellowship of Baptist Churches Encouraging each other and Growing healthy congregations by Enriching relationships, developing ministry and Enabling fruitful mission”.
Achievements and Performance
The network represents and serves Baptist churches and communities worshipping and working in the west of England, seeking to encourage our congregations in their mission as God’s people and to support them in the equipping of missional disciples.
Introduction – A rapidly changing landscape.
We are living in a rapidly changing context. The facts of the 2021 census revealed less than half of the population described themselves as “Christian” for the very first time. The decline in just one decade, from 59.3% in 2011, to 46.2% in 2021 is an indication of the accelerated decline we are witnessing. As Baptist Christians, whose origins grew out of a hostile context, we find ourselves, once again, asking what the future holds for the Church, of every denomination and stream, across the UK. Our principal object remains ‘the advancement of the Christian faith’ and what was once almost enshrined in the law of our land is now regarded as marginal in many places.
As Baptists it is arguable whether we, above every Christian stream, should be least surprised and best equipped to respond to an increasingly contested culture. However, we acknowledge we have been as wrong footed as everyone else. The Webnet Trustees remain committed to discerning the will and purposes of God in this generation, whatever the
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environment, and providing a supportive and encouraging framework for every one of our member churches. Our commitment is to pursue the pathways that God reveals, irrespective of whether we appear to have the resources, or not. On top of the decline in identification with our Christian faith, a further component of the cultural context is a mistrust of formal institutions of any kind, whether they be educational, legal, or religious.
Our Baptist Union is in crisis, along with every other mainline Christian denomination. A reading of church history informs us crisis precedes renewal. Whilst this is our prayer, it is never automatic. There is no tipping point to be reached, which is followed by revival. We are in God’s hands and being confident of this, we place our faith and trust in Him.
Strengthening Our Foundations.
The Consultation on Human Sexuality conducted by BUGB during 2023 was hugely distracting and threatened to divert us from our focus on growing disciples of Jesus. Webnet has not changed in our desire and commitment to be biblically faithful and honouring of our Lord and Saviour Jesus Christ. Towards achieving this, in practice, it was considered necessary to strengthen our foundations in various ways.
Our annual gathering of churches agreed to Webnet adopting a basis of faith, which served to re-affirm our historical position as a network of ‘believers churches’. This was agreed following a longer period of consultation and conversation across our network. Furthermore, following several years of concern and conversation, our churches also agreed to Partnership in Mission to become our new primary funding mechanism. In this way we hope to strengthen the two primary emphases, which the Home Mission Fund was originally intended to support, for our present and future: namely the provision of support for our churches and Ministers, as well as support for localised mission through our churches. Our continuing concern for the support for localised mission through our churches remains under threat due to the inevitable decline in financial resources, which follows numerical decline. Our Webnet Trustees have remained committed to resource this and have sought to maintain the level of local mission grants awarded from when the 50:50 split was abandoned nationally. Consequently, during 2023 Webnet gave 66% of the BUGB HM grant received in mission grants.
Transitioning Local Churches.
We are continuing to prioritise partnering with and equipping our local churches to transition, towards becoming missional in everything they do and not simply ‘doing’ mission after everything else has been attended to, in light of the ever-changing missionary context that surrounds us.
Re:imagine: our Missional Learning Community for church Leadership Teams focuses the attention of a local church leadership team on both the need and practice of becoming missional. Re:imagine is an 18-month process whereby, working in partnership together, we help encourage and equip local church leaders to lead their churches into effective leadership and discipleship practices that help them to fully engage in the mission of God where they are. Four churches (Chew Magna; Lawn, Swindon; Leckhampton, Cheltenham; and Little Stoke, Bristol), having begun the process in the previous year continued throughout 2023. A further three churches (Hope, Highbridge; Rodbourne, Swindon; and Salem, Cheltenham) began Re:imagine at the residential first Hub in October.
Supporting Local Leaders.
As a network we take seriously the need to develop leadership across our network. Over the past year we have done this in several ways. Core to this is mutual encouragement and support through the network of cluster groups of fellow pastoral leaders. We have supported pastoral leaders through a number of pastoral leader’s days including sessions to explore
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the theological and pastoral response to sexuality. Our annual leaders' conference was well attended, and many found this time as spiritually refreshing as we focused on the book of Revelation. As a network we are looking at developing further leadership with our churches for them to become missionally engaged and disciple making.
During the year we continued our partnership with our regional partners (SwBA, SWBA, SCBA) in holding two MRC interviews. The Webnet MRC continued to monitor newly accredited Ministers (NAMs).
Growing Disciples of Jesus.
We are continuing to develop a clear focus on disciple making in all our training for individuals and churches. This is revealed in our development of the following areas: During 2023 we had six participants on the Invest program. We are thankful for Dave Kingswood who oversees the Invest program. We have been in consultation regarding expanding and developing Invest for the future.
We have strong links with Bristol Baptist College. Several of our RM’s play an active role in the life and ministry of the college. Together we are seeking to train able evangelical disciple leaders. There are several NAMs who are training and developing missional life in congregation contexts.
As a network we have over 25 CYF workers, part-time or full-time. To support these key leaders during the year we developed a core CYF team who oversees pastoral support, gatherings, and information sharing.
Planting the Gospel.
Pioneers and planters are looking at how we might best shape a context for flourishing and discipleship in today’s rapidly changing world, although we recognise, in some ways, we are all called to pioneer as we follow Jesus, the author and pioneer of our faith wherever he leads. Whether old or new, our pioneering and planting ministries are always seeking to reach new places, or new people’s in contextually appropriate ways. In April 2023, a partnership between Webnet and European Christian Mission (ECM) enabled Rita Rimkiene to establish ‘Shalom House’ at her home in Gloucester. They share food, do life together, learn more about following Jesus and about their identity in Christ. We are exploring the potential of other similar partnerships…
Paul and Barbara Revill accepted a call to work alongside Andrew and Lindsay Caplen at Salt House, Portishead & Pill starting in October 2023. Engagement with discipleship is strong; numbers growing and the community diverse, including from Hong Kong. The aim: to empower disciples to live as ambassadors of Jesus in every sphere of life, so that every person in the community has repeated opportunities to respond to the love of Christ. The vision: for a network of simple churches gathering in homes, cafes, outdoors etc. to meet monthly to share testimony, teaching/preaching, gathered worship etc…
Rising To New Challenges.
We are receiving a growing number of Hong Kong folk across our region. Some are believers, some are exploring faith. It is a joy that so many are finding communities of welcome amongst our Webnet churches! Candy Choy, our Webnet Hong Kong Network facilitator is working alongside many of our churches developing understanding about Hong Kong culture, and about the challenges many Hong Kong people experience as they adapt to life in the UK. Alongside others in Webnet, Candy is developing a Hong Kong ministries network amongst our churches so that insights and best practise can be shared, ensuring that as a Baptist network, we can grow our ability to effectively welcome, integrate, disciple, pastorally support and evangelise. Webnet are involved in planning an event for 2025
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potentially involving BMS World Mission and others. The aim will be to network Hong People from across the region, to worship together and consider how God might be leading in terms of evangelism, discipleship, and mission. In addition to this, Candy is helping several churches with translation and preaching in Cantonese. She is also directly pastorally supporting Hong Kong people through language courses, marriage courses, Bible studies and Alpha. Since people are most open to think about life and faith when they are in a new context, this is a precious opportunity – a kairos moment. This work is therefore both timely and vital. It also needs to continue to grow.
Mission Grants to churches
Mission Grants to churches giving to Home Mission made it possible for us to give £110,245 (2022 - £125,718) in grants to churches, developing missional communities, chaplaincy, ecumenical bodies, and the support of individuals being resourced and enabled to better engage in God’s mission throughout the west of England.
Home Mission giving is helping equip Ministers in Training and Newly Accredited Ministers. It is also equipping and enabling the development of individuals in our churches through the Invest process, leadership teams through Re:imagine, and provided support for the Free Church Chaplain at Bristol University during 2023.
Gratitude
We remain extremely thankful to God for all the churches and church communities within Webnet. We have always been partners in mission, so it was highly appropriate our new primary funding mechanism (Partnership in Mission) reflects who we are, as well as what we do.
It is our local churches who continue to pray, discern and move forward in God’s mission within their local community and people networks, to advance our Christian faith and the Webnet staff and Regional Ministers have the privilege of helping facilitate and encourage them, as well as providing some of the essential governance support.
Some of the challenges of our wider society (financial, cost of living and energy crises) were reflected in our churches during 2023. However, despite the obvious implications of an aging demographic having less physical energy and fixed incomes, we have so much for which to be grateful to God for. Across our region we have been noticing a trickle of new believers and the prayer we ended 2023 with was for this trickle to become a flood.
We are thankful, also, for our Trustees, for their diligence and time as they continue developing Webnet in various ways, aligning our resources with our mission and purpose as we partner in mission together as a network of churches.
As always, we are grateful for our staff team and all that they bring to the network.
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Financial review
The charity has claimed exemption from preparing consolidated accounts as permitted by the Statement of Recommended Practice (SORP FRS102) and Accounting Regulations, as the income of the group is below the relevant threshold of £1,000,000. Individual accounts for each entity in the group have been prepared with the West of England Baptist Trust Company Limited being independently examined and West of England Baptist Payroll Company Limited being subject to an accountant's report. Copies of the accounts are available from the charity’s registered office.
The statement of financial activities for the year is set out on page 13. The charity reports an overall deficit (net movement of funds) for the year of £145,451 (2022 - £90,282 deficit). The Association’s main source of income is the “Home Mission” grant from the Baptist Union of Great Britain (BUGB). Individual Baptist churches give to a central appeal from BUGB which is aggregated with other general Income as the BUGB “Common Purse”. This is distributed between central Baptist activities and the 13 local Associations. In 2023 Webnet received £170,913 (52% of income) compared with 2022 receipt of £232,492 (66% of income). The grant fell this year resulted from BUGB having a deficit against the budget in the Common Purse for 2022, which was balanced by reducing the granted amount to Webnet in quarter one of 2023. A grant of £15,000 was received from Baptist Insurance Company (2022 - £30,000).
The two main calls on the total income are Grants to Churches and the Association’s own costs which are largely personnel related (see notes 5-7 pages 23 - 25). Central grants have fallen over recent years mainly due to churches’ reduced contributions to the annual Home Mission Appeal.
Despite this, Webnet has sought to maintain a consistent level of grant and Regional Ministry support to churches to help them achieve their objectives. This has been done by (a) seeking income sources in addition to the BUGB grant, (b) releasing funds from designated accounts, and (c) releasing funds from reserves, mainly expendable endowment. Total grants expended fell in 2023 to £96,575 (2022 - £125,784).
The Unrestricted Funds reported a net deficit before funds transfers of £173,286 (2022 - £82,355).
There were significant funds movements in the year. £93,875 was released back into General Funds through sale of 25% of a house, purchased in 2022 in a developing area of Swindon to enable a new mission opportunity, to the Salters Trust. The General Fund was kept above its agreed minimum of £50,000 by a further transfer from Expendable Endowment.
The Trustees are indebted to the substantial support provided by the many volunteers but are unable to put any financial evaluation into the accounts because it is unable to quantify such assistance.
Subsidiary companies
The subsidiary trust company which is non-profit making, provides support to the churches regarding church and manse properties held in trust. Several of our churches are faced with important decisions as to what to do with their existing buildings, particularly where there are restrictions because of listed building status. The board members of the Trust company continue to give unstintingly of their time and experience in assisting those churches under their care.
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The subsidiary payroll company provides a full payroll service for churches that wish to outsource their payroll to a trusted provider. This important service, provided to churches across the country, is seen as best practice amongst other Associations in the Baptist Union.
We are grateful for the support provided to the subsidiary companies by volunteers who give valued specialist advice both to the Trust Officer and the churches in relation to their buildings.
Related parties
The charity is a member of the Baptist Union of Great Britain from which significant grant funding is received and details of this are set out in the notes to the financial statements. See also under ‘Organisation’ for details of relationships with subsidiary companies.
Investment performance
The Webnet portfolio is held by the Trust Company, in order to minimize the management fees and to improve performance and is managed in line with our Investment Policy (see below).
The value of the portfolio rose in 2023 by around 5% after falling by 10% in 2022. However, during December 2023 £100,000 was realised from the portfolio to meet a cash flow shortfall, the actual value of the portfolio therefore fell by £71,466 to £521,219. The overall income return was 2.8% (2022 2.5%).
Principal Financial Management Policies
Reserves Policy
Webnet has a substantial reserve held in expendable endowment. These are funds that have been gifted to the charity that are capital in nature, but not restricted. Appropriately allocating them to an expendable endowment fund allows the trustees to utilise the capital funds to generate income or to invest in strategic opportunities to serve the ongoing needs and purposes of Webnet, or if necessary to convert the funds to general funds as needed. Webnet also needs an operating reserve in the general fund to meet current liabilities. The Trustees have adopted the following wording as the Reserves Policy:
It is the policy of Webnet to hold reserves as expendable endowment for use in serving the association churches and for Webnet strategic development. It is also Webnet policy to maintain the General Fund at no less than £50,000.
The free reserves of the charity at the year-end are £84,705 (2022 - £51,014) and are the same as those held in General Funds. Free reserves are calculated to be the total funds of Webnet less those funds that are restricted, endowed, designated or otherwise committed.
Investment policy
The charity has the power to make any investment that the trustees see fit. The investment policy is a balanced one of income and growth to contribute income for the day to day needs of the charity coupled with capital growth to maintain and increase over time the value of the portfolio to protect the charity against inflation and to ensure the charity has the ability to meet major capital projects should it be needed, particularly church planting opportunities. The investment policy follows the ethical guidelines prescribed by the Baptist Union and is reviewed annually.
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Reference and administrative information
Constitution
The West of England Baptist Association is a company limited by guarantee and a registered charity governed by its memorandum and articles of association and byelaws.
Registered as: West of England Baptist Association Charity number: 1092443.
Company number: 04326752
Directors and trustees
Steven Christian – Chairman Philip Poole – Honorary Treasurer – Resigned July 2023 Nigel Coles – Regional Minister & Team Leader Rebecca Allison Steven Chandanam Roslyn Durrant – Resigned October 2023 Stephen Finamore – Resigned July 2023 Paul Jacobs Peter Morden – Appointed September 2023 Kay Reuben – Appointed March 2023 Paul Salmons – Resigned December 2023 Graham Sims
Regional Ministry Team Nigel Coles, Alisdair Longwill, Gary Woodall and Lindsay Caplen
Company Secretary Paul Salmons
Registered Office
Little Stoke Baptist Church, Kingsway, Little Stoke, Bristol. BS34 6JW.
Independent examiner Joshua Kingston BSc ACA, Burton Sweet Limited, Chartered Accountants, The Clock Tower, Farleigh Court, Flax Bourton, Bristol BS48 1UR
Bankers
CAF Bank Limited, Kings Hill, West Malling, Kent. ME19 4TA HSBC Bank plc, 62 George White Street, Cabot Circus, Bristol BS1 3BA
Solicitors
Clarke Willmott, Blackbrook Gate, Blackbrook Park Avenue, Taunton TA1 2PG
Investment Advisors
Brewin Dolphin Limited, 12 Smithfield Street, London, EC1A 9BD
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Structure, Governance and Management
Recruitment and Appointment of Trustees
The Directors of the charitable company (“Webnet” or “West of England Baptist Association”) are its trustees for the purposes of charity law and throughout this report are collectively referred to as the trustees or the Executive. As set out in the ByeLaws pursuant to the Articles of Association, the Officers of the Association, Moderator, Company Secretary, Honorary Treasurer and Regional Ministers shall be nominated by the trustees, following consultation with member churches, to the Annual General Meeting. Periods of service shall be decided by the trustees and notified to the AGM. The Company Secretary is a non-voting trustee.
Appointment or re-appointment of trustees is subject to nomination from appropriate geographical groups of churches for submission to the AGM. Members shall serve for four years. The Executive has the power to co-opt additional members.
Training has been organised for Trustees and all new trustees are provided with details of their roles and responsibilities and when necessary, the trustees receive training on their responsibilities.
Organisation
The charity is governed by a Board of Trustees, (the executive) who meet regularly to discuss fulfilment of aims, objectives and purpose statement of the Association. The trustees operate in between meetings through two teams that report directly to the trustees. Each team has its own terms of reference for dealing with various aspects of Association life and each has its own Team leader:-
Finance Sub-Group: Moderator – Philip Poole/Honorary Treasurer Staff Advisory Group: Moderator – Graham Sims
The trustees and teams are supported by a small number of part-time staff who perform various administrative duties. At the Annual General Meeting, all churches that make up the Association have the opportunity to send delegates and approve agenda business.
The West of England Baptist Trust Company Limited (WEBTC) acts as ultimate trustee for the Association churches which are in trust with it. Webnet has the sole right to appoint WEBTC trustees. The WEBTC board consists of directors who are also directors of Webnet plus independent directors. The objects of the WEBTC charitable company are to act as custodian trustee, and in conjunction with the respective managing trustees, take responsibility for the property and investment portfolios, held in trust, on behalf of churches in Bristol, North Somerset and South Gloucestershire, Wiltshire, Swindon, and East Somerset for WEBTC areas. Webnet also has a wholly owned subsidiary company, The West of England Baptist Payroll Company Limited which handles the payroll service on behalf of churches. This is a non-profit making company whose costs are met from subscriptions paid by churches that use the service. The Webnet trustees following recommendation from the Finance team appoint the directors of this company.
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Statement of trustees’ responsibilities
The trustees (who are also directors of West of England Baptist Association for the purposes of company law) are responsible for preparing the Trustees’ Report (incorporating the directors’ report) and the financial statements in accordance with applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Accepted Accounting Practice).
Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:
· select suitable accounting policies and then apply them consistently;
· observe the methods and principles in the Charities SORP;
· make judgments and accounting 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 charitable company will continue in business.
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by the trustees and signed on their behalf by:
Steven Christian
Chair of Trustees
Dated …………………………… 2024
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Independent examiner’s report to the trustees of West of England Baptist Association (‘the Company’)
I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 December 2023.
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Responsibilities and basis of report
As the charity’s trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).
Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.
Independent examiner’s statement
Since the Company’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
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accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or
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the accounts do not accord with those records; or
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the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair view which is not a matter considered as part of an independent examination; or
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the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Joshua Kingston BSc ACA Burton Sweet Limited Chartered Accountants The Clock Tower 5 Farleigh Court, Old Weston Road Flax Bourton Bristol BS48 1UR
Date: …………………………………… 2024
West of England Baptist Association
@ west of england baptist network
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| Page 13 | ||||||
|---|---|---|---|---|---|---|
| Statement of financial activities | ||||||
| For the year ended 31 December 2023 | ||||||
| Note | Unrestricted | Restricted | Endowment | Total | Total | |
| Funds | Funds | Funds | 2023 | 2022 | ||
| £ | £ | £ | £ | £ | ||
| INCOME FROM: | ||||||
| Donations | 2 | 226,542 | 8,892 | - | 235,434 | 344,298 |
| Investments | 3 | 17,190 | 811 | - | 18,001 | 21,282 |
| Charitable activities | 4 | 73,143 | - | - | 73,143 | 75,949 |
| Total Income | 316,875 | 9,703 | - | 326,578 | 441,529 | |
| EXPENDITURE ON: | ||||||
| Charitable activities | 5 | 490,161 | 3,097 | - | 493,258 | 526,821 |
| Total Expenditure | 490,161 | 3,097 | - | 493,258 | 526,821 | |
| Investment gains/(losses) | 12 | - | - | 21,229 | 21,229 | (67,705) |
| Net income/expenditure | (173,286) | 6,606 | 21,229 | (145,451) | (152,997) | |
| Transfers between funds | 17 | 100,000 | - | (100,000) | - | - |
| Pension liability movements | 17 | - | - | - | - | 62,715 |
| Net Movement in Funds | (73,286) | 6,606 | (78,771) | (145,451) | (90,282) | |
| Reconciliation of Funds | ||||||
| Total funds brought forward 1 January 2023 | 17 | 1,344,888 | 28,918 | 672,188 | 2,045,994 | 2,136,276 |
| Total Funds at 31 December 2023 | 17 | 1,271,602 | 35,524 | 593,417 | 1,900,543 | 2,045,994 |
The comparative Statement of Financial Activities can be seen in note 9
All gains and losses arising in the year are included in the Statement of Financial Activities and derive from continuing activities.
The accompanying notes form an integral part of these financial statements.
West of England Baptist Association
@ west of england baptist network
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Summary income and expenditure account For the year ended 31 December 2023
| Total | Total | |
|---|---|---|
| 2023 | 2022 | |
| £ | £ | |
| Total Income | 326,578 | 441,529 |
| Total Expenditure | (493,258) | (526,821) |
| Pension liability movements | - | 62,715 |
| Transfers (to)/from endowment funds | 100,000 | 234,800 |
| Net income/(expenditure) for the year | (66,680) | 212,223 |
All gains and losses arising in the year are included in the Statement of Financial Activities and derive from continuing activities.
The accompanying notes form an integral part of these financial statements.
West of England Baptist Association
@ west of england baptist network
Page 15
| Page 15 | |||
|---|---|---|---|
| Balance Sheet | |||
| As at 31 December 2023 | |||
| Total | Total | ||
| 2023 | 2022 | ||
| £ | £ | ||
| Fixed assets | Note | ||
| Tangible assets | 11a | 490,535 | 487,882 |
| Investments | 12 | 521,219 | 592,685 |
| Programme-related investments | 13 | 841,203 | 941,963 |
| 1,852,957 | 2,022,530 | ||
| Current assets | |||
| Debtors | 14 | 9,352 | 1,000 |
| Cash at bank and in hand | 15 | 73,673 | 55,656 |
| 83,025 | 56,656 | ||
| Creditors: amounts falling due within one year | 16 | (35,439) | (33,192) |
| Net current assets | 47,586 | 23,464 | |
| Total assets less current liabilities | 1,900,543 | 2,045,994 | |
| Net Assets | 1,900,543 | 2,045,994 | |
| The funds of the charity: | |||
| Unrestricted funds: | |||
| General | 18 | 84,705 | 51,014 |
| Designated | 18 | 1,186,897 | 1,293,874 |
| 1,271,602 | 1,344,888 | ||
| Restricted | 18 | 35,524 | 28,918 |
| Endowment | 18 | 593,417 | 672,188 |
| Total funds | 1,900,543 | 2,045,994 |
For the year ended 31st December 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006. The directors acknowledge their responsibility for complying with the requirements of the Act with respect to accounting records and for the preparation of accounts.
These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
Approved by the trustees on …............................................2024 and signed on their behalf by:
……………………………………………………………
Steven Christian Chair of Trustees Company number: 04326752 Charity number: 1092443
The accompanying notes form an integral part of these financial statements.
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West of England Baptist Association
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@ west of england baptist network
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Notes to financial statements For the year ended 31 December 2023
1 Accounting policies Basis of accounting
The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued in October 2019 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Companies Act 2006 and UK Generally Accepted Practice as it applies from 1 January 2019.
The trustees consider that there are no material uncertainties about the Association's ability to continue as a going concern. This has been determined by the Trustees after consideration of the effects of the wider economy on the association.
The association constitutes a public benefit entity as defined by FRS 102.
a) Income
Income from grants, donations and other voluntary income are recognised once the charity has entitlement to the income, there is sufficient certainty of receipt and the amount can be measured reliably. Legacies are recognised when it is probable that they will be received and the amount can be measured with sufficient reliability.
b) Expenditure
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to the expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably. All expenditure is accounted for on an accruals basis.
Charitable activities
Expenditure relates primarily to staffing and support costs required to enable the charity to serve the Baptist Church communities in the West of England. The support is wide ranging and involves pastoral care of ministers and churches, support for outreach, new church planting, buildings, youth work, training, payroll service and finance. In addition, the charity makes a number of grant payments to Baptist churches and to support different ministries including the Churches Together bodies across the region.
Governance Costs
Governance costs are associated with constitutional and statutory requirements, including those costs associated with the strategic management of the charity’s activities. These are included within support costs.
c) Grants
There are effectively three kinds of Home Mission Grants:
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Mission through Ministry Grants (awarded to established churches)
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Special Ministry Grants (awarded to developing new expressions of church & missional communities)
-
Mission Project Grants (one-off grants awarded as seed funding for a mission project)
The association is free to decide how much to budget for grants to churches etc. out of the income received from the national Home Mission appeal and other income sources. It can then award Home Mission grants as it chooses. The relevant forms are issued at the beginning of the year and various churches/new expressions of church etc. can then submit a grant application. Once these have been received back and collated, the association Home Mission Grants Awards Group meets to consider all the applications. This group make provisional decisions regarding the awarding of grants; these are then brought to the association Trustees for ratification; and the final step (which offers the element of accountability to our association partners) is the presentation of the proposed grants to the inter-association Partnership for their consideration and eventual approval (for WEBA the inter-association partners are South Wales Baptist Association; South West Baptist Association; and Southern Counties Baptist Association).
d) Pension costs
The charity makes contributions to the Baptist Pension Scheme (formerly Baptist Minister’s Pension Trust Limited). Pension costs are charged to the Statement of Financial Activities as incurred. Please see note 7 for more details on the policy used.
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West of England Baptist Association
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1 Accounting policies (Continued)
e) Tangible Fixed Assets
Tangible fixed assets are stated initially at cost less subsequent depreciation.
Depreciation is provided on all tangible fixed assets at annual rates calculated to write off the cost, less estimated residual value, of each asset on a straight line basis over its expected useful life, as follows:-
Office equipment – 25%
No depreciation is charged on freehold property or land as in the opinion of the trustees the properties have a long useful life. An assessment for indications of impairment is made on an annual basis.
f) Investments
Investments held as fixed assets are stated at their market value as at the balance sheet date. Differences in market values from the previous year are accounted for as unrealised gains or losses.
Investments are managed on behalf of the company on a discretionary basis by Brewin Dolphin (formerly Charles Stanley) to achieve a balanced return from income and capital growth, whilst accepting a moderate level of risk. Investment Guidelines, determining the strategic distribution of funds are agreed by the trustees periodically. Brewin Dolphin may exceed these guidelines, but only after seeking the authority of the trustees. The trustees also follow the Baptist Union of Great Britain Investment Policy for ethical investments which restricts investment in companies with significant trading interests in armaments, alcohol, gambling or tobacco, where “significant” is taken to mean greater than 5%.
Brewin Dolphin are not responsible for the management of the company’s tangible fixed assets, loans granted or cash held directly in the name of the company.
Income from investments is accounted for when receivable.
g) Programme related investments
Support loans are made to churches or individuals to help them achieve their charitable objectives where they line up with those of the charity. Interest is paid at a rate agreed by the trustees. They are recognised at the amount outstanding to the charity at the end of the year.
The properties are rented out to other organisations with similar charitable objects as those of the charity. They are valued in the accounts at cost. The trustees review the properties annually for indicators of impairment. The trustees do not consider it appropriate to depreciate the assets as, over time, the assets are being held at less than their market worth.
h) Fund accounting
Funds held by the charity are either:-
· Unrestricted general funds – these are funds which can be used in accordance with the charitable objects at the discretion of the trustees;
· Designated funds – these are funds set aside by the trustees out of unrestricted general funds for specific purposes or projects;
· Restricted funds – these are funds that can only be used for particular restricted purposes within the objects of the charity.
· Permanent endowment - was created following a Charity Commission scheme following the closure of the Avening Baptist Church in 1995. The capital of the scheme restricted the use of the fund to the churches within the South Gloucestershire area.
· Expendable endowment - represents donations given towards the capital of the charity of which the purpose of the fund is to generate income for the on-going work of the Association. The trustees have the power to convert these funds to general funds.
Expenditure which meets these criteria is charged to the funds.
Further explanation of the nature and purpose of each fund is included in note 17.
i) Current assets
Amounts owing to the Association at 31 December in respect of fees, rents or other income are measured on initial recognition at settlement amount after any trade discounts or amount advanced by the Association. Subsequently, they are measured at the level of cash or other consideration expected to be received.
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1 Accounting policies (Continued)
j) Current liabilities
Creditors and provisions are recognised when the Association 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.
Liabilities are measured on recognition at their historical cost and then subsequently at the best estimate of the amount required to settle the obligation at the reporting date.
k) Gains and losses
All gains and losses are taken to the SoFA as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or purchase value if purchased during the year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value.
2 Income from Donations
The following donations, legacies and grants were receivable during the year:-
| Total | Total | ||||
|---|---|---|---|---|---|
| Unrestricted | Restricted | Endowment | 2023 | 2022 | |
| £ | £ | £ | £ | £ | |
| Restated | |||||
| Home Mission Funding | 170,913 | - | - | 170,913 | 232,492 |
| Donations | 29,248 | 576 | - | 29,824 | 30,709 |
| Partnership for Mission | 10,414 | - | - | 10,414 | 14,006 |
| Other grants | 15,000 | 8,316 | - | 23,316 | 51,334 |
| WeBox Appeal | 967 - - |
- - | - - | 967 | 7,441 |
| Willow Garden - Portishead | - | - | - | - | 8,316 |
| 226,542 | 8,892 | - | 235,434 | 344,298 |
#
All income from donations in 2022 was unrestricted, save £3,400 of restricted income from Willow Garden.
The charity has a close relationship with the Baptist Union of Great Britain (which is also a charity) and receives significant funding from it. The Home Mission funding is a share of the monies donated to the Baptist Union of Great Britain by churches in the area covered by the Association.
Grants for Churches Together within the Association area and for special projects are now allocated separately following a restructuring of the way in which the Baptist Union Home Mission grants are distributed.
3 Income from Investments
| Income from Investments | |||||
|---|---|---|---|---|---|
| Total | Total | ||||
| Unrestricted | Restricted | Endowment | 2023 | 2022 | |
| £ | £ | £ | £ | £ | |
| Income from investments | 17,089 | - | - | 17,089 | 19,236 |
| Bank and other interest | 101 | 811 | - | 912 | 2,046 |
| 17,190 | 811 | - | 18,001 | 21,282 |
All income from investments in 2022 was unrestricted, save £179 of restricted income from investments.
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4 Income from charitable activities
| Income from charitable activities | ||||||
|---|---|---|---|---|---|---|
| Total | Total | |||||
| Unrestricted | Restricted | Endowment | 2023 | 2022 | ||
| £ | £ | £ | £ | £ | ||
| Church income re Regional Ministers | 12,099 | - | - | 12,099 | 6,884 | |
| Management charges - Payroll and Trust | ||||||
| Companies | 16,200 | - | - | 16,200 | 16,200 | |
| Programme related investment income | 30,158 | - | - 30,158 | - 30,158 | 28,480 | |
| Delegate fees | 14,686 | - | - | 14,686 | 2,663 | |
| Ministers conference | - | - | - | - | 853 | |
| Committees & conferences | - - - |
- - | - - | - - | - | 20,869 |
| 73,143 | - | - | 73,143 | 75,949 |
All income from charitable activities in 2022 was unrestricted.
5 Expenditure on Charitable activities
| Expenditure on Charitable activities | ||||
|---|---|---|---|---|
| Total | ||||
| Unrestricted | Restricted | Endowment | 2023 | |
| £ | £ | £ | £ | |
| Assemblies, Conferences & Events | 21,697 | 85 | - | 21,782 |
| Employees (see note 7) | 311,575 | 92 | - | 311,667 |
| Home Mission and other grants (see note 6) | 96,575 | - | - | 96,575 |
| Hospitality | 17,058 | - | - | 17,058 |
| Management & administration | 9,844 | 2,845 | - | 12,689 |
| Depreciation | 1,514 | - | - | 1,514 |
| Property costs | 17,906 | - | - | 17,906 |
| Subscriptions | 826 | 75 | - | 901 |
| Independent examination | 3,720 | - | - | 3,720 |
| Legal & professional fees | 9,427 | - | - | 9,427 |
| Trustees expenses (included in note 7) | 19 | - | - | 19 |
| 490,161 | 3,097 | - | 493,258 | |
| Total | ||||
| Unrestricted | Restricted | Endowment | 2022 | |
| £ | £ | £ | £ | |
| Assemblies, Conferences & Events | 24,800 | - | - | 24,800 |
| Employees (see note 7) | 311,166 | - | - | 311,166 |
| Home Mission and other grants (see note 6) | 122,991 | 2,793 | - | 125,784 |
| Hospitality | 3,581 | - | - | 3,581 |
| Management & administration | 16,002 | - | - | 16,002 |
| Depreciation | 472 | - | - | 472 |
| Property costs | 27,780 | - | - | 27,780 |
| Subscriptions | 1,017 | - | - | 1,017 |
| WeBox | 7,281 | - | - | 7,281 |
| Seventy-two | - | 3,723 | - | 3,723 |
| Independent examination | 3,552 | - | - | 3,552 |
| Legal & professional fees | 1,520 | - | - | 1,520 |
| Trustees expenses (included in note 7) | 143 | - | - | 143 |
| 520,305 | 6,516 | - | 526,821 |
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6 Analysis of grants
| Analysis of grants | ||
|---|---|---|
| Total | Total | |
| 2023 | 2022 | |
| £ | £ | |
| Home Mission Grants: | ||
| Bristol University Chaplaincy | 2,575 4,116 |
4,116 |
| Brunswick | - 2,640 |
2,640 |
| City Road | - 9,140 |
9,140 |
| Hillfields | 2,857 - |
- |
| Hope BC, Highbridge | 5,000 - |
- |
| Jacob's Well | 2,002 1,500 |
1,500 |
| Knowle West | 15,620 14,604 |
14,604 |
| Lawn Community Church | 4,000 - |
- |
| Leckhampton | 7,810 3,254 |
3,254 |
| Little Stoke | 6,300 7,296 |
7,296 |
| Locking Castle | - 6,996 |
6,996 |
| Melksham | 4,667 | 14,004 |
| Nailsworth | 4,000 4,000 |
4,000 |
| Open House | 10,000 7,300 |
7,300 |
| Sheep Street | 6,000 8,004 |
8,004 |
| The Stowe | - 6,000 |
6,000 |
| Victoria Park | 7,000 2,915 |
2,915 |
| Welton | 7,810 6,996 |
6,996 |
| Funding for Pioneering Work: | ||
| Bussage | - 7,300 |
7,300 |
| Portishead | - 7,300 |
7,300 |
| Other Grants: | ||
| Churches Together in Greater Bristol | 800 - |
- |
| Churches Together Somerset | 1,484 - |
- |
| Grant from Tilshead Fund | - | 1,126 |
| BU Common Purse (Home Mission) | 8,650 | - |
| Pastoral Support | - | 1,000 |
| Renew Wellbeing | - | 7,500 |
| Willow Garden - Portishead | - | 2,793 |
| Total grants | 96,575 125,784 | 96,575 125,784 |
| Total | Total | |
| Home Mission Fund Webnet projects expenditure | 2023 | 2022 |
| £ | £ | |
| Bussage | 7,810 - |
- |
| Portishead | 7,810 - |
- |
| Hong Kong community | 6,700 - |
- |
| Re:imagine | 2,000 - |
- |
| 24,320 - | 24,320 - |
The trustees are dedicated to providing funding for the pioneering ministry undertaken in Bussage, Portishead and for the Hong Kong community. As with other ministries of this kind, this work is funded through Home Mission Fund, however it is delivered by the Webnet Regional Ministry Team.
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6 Analysis of grants ( continued)
| **6 ** | Analysis of grants (continued) | ||||
|---|---|---|---|---|---|
| Total | Total | ||||
| 2023 | 2022 | ||||
| £ | £ | ||||
| Sources of Funding: | |||||
| From Baptist Home Mission support | 120,895 114,865 | 120,895 114,865 | 120,895 114,865 | ||
| From other churches to support specific work | - 7,000 | - 7,000 | - 7,000 | ||
| From Tilshead fund | - 1,126 | - 1,126 | - 1,126 | ||
| From income restricted to Willow Garden - Portishead | - 2,793 | - 2,793 | - 2,793 | ||
| 120,895 | 125,784 | ||||
| **7 ** | Staff costs and Trustee expenses | Key | |||
| Other staff | management | 2023 | 2022 | ||
| £ | £ | £ | £ | ||
| Regional Ministers' remuneration:- | Restated | ||||
| Revd. Nigel Coles - Trustee | - | 39,750 | 39,750 | 37,840 | |
| Social Security costs (trustees) | - | 4,346 | 4,346 | 3,130 | |
| Trustee Pension costs (see note below) | - | 4,688 | 4,688 | 7,746 | |
| Housing costs | - | 9,335 | 9,335 | 8,719 | |
| Council tax, water, telephone | - | 3,351 | 3,351 | 3,565 | |
| Total Trustees' remuneration | - | 61,470 | 61,470 | 61,000 | |
| Staff Salaries | 68,401 | 97,314 | 165,715 | 166,843 | |
| Social Security costs (staff) | 2,850 | 6,084 | 8,934 | 10,846 | |
| Other Staff Pension costs (see note below) | 4,246 | 11,829 | 16,075 | 21,050 | |
| Housing costs | - | 20,175 | 20,175 | 18,193 | |
| Training - courses, conferences, assemblies | - | 2,671 | 2,671 | 9,443 | |
| Council tax, water, telephone | - | 10,866 | 10,866 | 8,665 | |
| Expenses and other costs | 2,989 | 22,772 | 25,761 | 15,126 | |
| 78,486 | 233,181 | 311,667 | 311,166 |
The Memorandum of Association of the charity, approved by the Charity Commission, provides for remuneration and benefits to be paid to those persons appointed as Regional Ministers of the charity. Remuneration is paid to the Regional Ministers as fully accredited Baptist ministers of the Baptist Union of Great Britain to exchange information, provide advice and support to churches and their respective ministers and leaders enabling the charity to further its Objects.
| Pension Costs to SOFA | 2023 | 2022 | |
|---|---|---|---|
| Regional Ministers' pension contributions:- | £ | £ | |
| Revd. Nigel Coles - Trustee | Baptist Pension Scheme | 4,688 | 7,746 |
| Staff | Baptist Pension Scheme | 16,075 | 21,050 |
| Pension deficit movement | Baptist Pension Scheme | - | (985) |
| 20,763 | 27,811 | ||
| Staff numbers and key management personnel | |||
| 2023 | 2022 | ||
| The average number of full-time equivalent employees (including part-time staff) | |||
| during the year as follows: | |||
| Regional Ministers | 3.8 | 3.9 | |
| Office Administrative Manager & Trust Officer | 1.2 | 0.9 | |
| Finance | 0.3 | 0.3 | |
| Other Administration, Support & Outreach | 0.7 | 1.4 | |
| 6.0 | 6.5 |
The actual number of staff during the year was 9 (2022 - 8.5).
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7 Staff costs and Trustee expenses (continued)
The key management personnel were defined as the Trustees and the Regional Ministry team, the total employment benefits paid to this group amounted to £233,181 (2022 - £194,215). This includes gross salary, housing allowance, employer's national insurance and pension contributions. Other benefits received are detailed above.
In 2023 and 2022, no employee received remuneration of more than £60,000 per annum, excluding employer's national insurance and employer's pension.
Trustee expenses
2023 2022 £ £ Trustee expenses 19 143
One trustee was reimbursed travel expenses in the current and prior year.
Pensions
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.
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 Legal and General Life Assurance Society Limited. 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 in the event that they are unable to work due to long-term incapacity. This income protection policy has been insured by the Baptist Union of Great Britain with Aviva Limited. Members of the Basic Section pay reduced contributions of 5% of Pensionable Income, and their employers also pay a total of 5%.
The Scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. 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 Minister(s) and some members of church staff are eligible to join the scheme.
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.
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West of England Baptist Association
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7 Staff costs and Trustee expenses (continued)
Pensions - (continued )
The key assumptions underlying the valuation were as follows:
| Type of financial assumption | %pa |
|---|---|
| RPI price inflation assumption | 3.20 |
| CPI price inflation assumption | 2.70 |
| Minimum Pensionable Income increases | |
| (above CPI) | 0.50 |
| 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 |
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%.
Recovery Plan
In addition to the contributions to the DC Plan set out above, where a valuation of the DB Plan reveals a deficit the Trustee and the Council agree to a rate of deficiency contributions from churches and other employers involved in the DB Plan. Following the 2019 valuation a Recovery Plan was signed in September 2020 under which deficiency contributions are payable until June 2026. These contributions were broadly based on each employer's membership at 31 December 2014 and increase annually in line with increases to Minimum Pensionable Income as defined in the Rules.
On 30th June 2022 the Baptist Pension Scheme signed an agreement with the insurance company Just Group (“Just”) to secure DB Plan members’ pension benefits. Just are now providing financial backing for all pensions provided through the Scheme’s DB Plan and following this transaction, the scheme no longer has a shortfall. An updated recovery plan was then signed in August 2022 under which recovery contributions from each participating employer in the DB Plan reduced to £1 per month from August 2022.
Movement in Balance sheet liability
Section 28.11A of FRS102 requires agreed deficit recovery payments to be recognised as a liability. Movement in Balance Sheet liability is not applicable this year as the pension liability has been written off.
8 Taxation
No corporation tax has been provided in these accounts because the income of the charity is within the exemption granted by Section 505 of the Income and Corporation Taxes Act 1988.
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West of England Baptist Association
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9 Statement of Financial Activities for the year ended 31 December 2022
| Unrestricted | Restricted | Endowment | Total | |||
|---|---|---|---|---|---|---|
| 2022 | ||||||
| £ | £ | £ | £ | |||
| INCOME FROM: | ||||||
| Donations | 340,898 | 3,400 | - | 344,298 | ||
| Investments | 21,103 | 179 | - | 21,282 | ||
| Charitable activities | 75,949 | - | - | 75,949 | ||
| Total Income | 437,950 | 3,579 | - | 441,529 | ||
| EXPENDITURE ON: | ||||||
| Charitable activities | 520,305 | 6,516 | - | 526,821 | ||
| Total Expenditure | 520,305 | 6,516 | - | 526,821 | ||
| Investment gains/(losses) | - | - | (67,705) | (67,705) | ||
| Net Income/(expenditure) | (82,355) | (2,937) | (67,705) | (152,997) | ||
| Transfer between funds | 234,800 | - | (234,800) | - | ||
| Pension liability movements | 62,715 | - | - | 62,715 | ||
| Net Movement in Funds | 215,160 | (2,937) | (302,505) | (90,282) | ||
| Reconciliation of Funds | ||||||
| Total funds brought forward 1 January 2021 | Total funds brought forward 1 January 2021 | 1,129,728 | 31,855 | 974,693 | 2,136,276 | |
| Total Funds at 31 December 2021 | 1,344,888 | 28,918 | 672,188 | 2,045,994 | ||
| **10 ** | Net income for the year | |||||
| 2023 | 2022 | |||||
| This is stated after charging: | £ | £ | ||||
| Independent Examiner's fees: | ||||||
| Accounts preparation | 2,000 | 1,880 | ||||
| Independent examination | - current year | 1,720 | 1,552 | |||
| - under/(over)provided in prior year | - | 120 | ||||
| Depreciation | 1,514 | 472 |
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West of England Baptist Association
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11 Fixed Assets
a) Tangible fixed assets
The movement in the year was as follows:-
| The movement in the year was as follows:- | ||||
|---|---|---|---|---|
| Freehold | Office | |||
| Property | Equipment | Total | ||
| Cost | £ | £ | £ | |
| Beginning of the year | 488,631 | 19,300 | 507,931 | |
| Additions | - | 4,167 | 4,167 | |
| Disposals | (1,221) | (14,935) | (16,156) | |
| 487,410 | 8,532 | 495,942 | ||
| Depreciation | ||||
| Beginning of year | 1,221 | 18,828 | 20,049 | |
| Charge for the period | - | 1,514 | 1,514 | |
| Depreciation on disposal | (1,221) | (14,935) | (16,156) | |
| End of year | - | 5,407 | 5,407 | |
| Net book value | ||||
| 31 December 2023 | 487,410 | 3,125 | 490,535 | |
| 31 December 2022 | 487,410 | 472 | 487,882 | |
| b) | Association Property | 2023 | 2022 | |
| £ | £ | |||
| Land at Emersons Green | 176,490 | 176,490 | ||
| Manse at 3 The Hawthorns, Bussage, | 300,270 | 300,270 | ||
| Stockwood Church | 10,650 | 10,650 | ||
| 487,410 | 487,410 | |||
| **12 ** | Investments | |||
| 2023 | 2022 | |||
| £ | £ | |||
| Market value at beginning of year | 592,685 | 820,632 | ||
| Acquisitions at cost | 136,842 | 598,531 | ||
| Sale proceeds from disposals | (163,546) | (554,021) | ||
| Gains in the period | ||||
| - Realised gains | 1,893 | 19,745 | ||
| - Net unrealised gains | 29,658 | (128,049) | ||
| Increase/(decrease) in cash balances | (76,313) | (164,153) | ||
| Market value as at 31 December | 521,219 | 592,685 | ||
| Investments at market value comprise:- | 2023 | 2022 | ||
| £ | £ | |||
| UK equities | 90,363 | 132,845 | ||
| UK fixed interest securities | 35,629 | 97,416 | ||
| UK other investments | 62,487 | 90,385 | ||
| Overseas equities | 269,228 | 267,461 | ||
| Overseas fixed interest | 57,805 | - | ||
| Cash balances - WEBTC | 898 | (7,303) | ||
| Cash balances - Charles Stanley/Brewin Dolphin | 4,808 | 11,880 | ||
| Wholly Owned Trading Subsidiary | 1 | 1 | ||
| 521,219 | 592,685 | |||
| Historical cost at 31 December | 466,882 | 563,401 |
West of England Baptist Association is the principal and legal holder of these investments, they are managed by West of England Baptist Trust Company Limited as custodian trustees.
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13 Programme-related investments
| Programme-related investments | |||
|---|---|---|---|
| Support | |||
| Loans | Properties | Total | |
| £ | £ | £ | |
| Balance at 1 January 2023 | 286,319 | 655,644 | 941,963 |
| Transfer of property value to Emersons Green BC | - | (1,892) | (1,892) |
| Additions and interest | 2,423 | - | 2,423 |
| Loan repayments | (101,291) | - | (101,291) |
| Balance at 31 December 2023 | 187,451 | 653,752 | 841,203 |
Programme related investment properties have been purchased when the charity has come across an opportunity to extend their charitable activities with a partner organisation, either immediately or in the future.
| 2023 | 2022 | |
|---|---|---|
| The following properties are held currently: | £ | £ |
| Manse at 1 Bishop Road, Emersons Green | 233,956 | 235,848 |
| 61 Sion Road Bedminster | 211,161 | 211,161 |
| Woodside House, Stroud | 208,635 | 208,635 |
| 653,752 | 655,644 |
The Manse at 1 Bishop Road in Emerson's Green currently houses a church minister. The property is being acquired by the church under the Housing for Mission scheme agreement signed during 2011, whereby a proportion of the rent is being used to acquire further equity in the property. Should this property be sold the proceeds will be shared between the Church and the Association according to the equity share. The property was originally partly acquired for a purchase price of £290,164 using Avening fund proceeds. The current church equity is 19.37% £56,212 (2022 - £54,319).
The house at 61 Sion Road was purchased after the local church was about to close, to provide a base for a new ministry to begin. The house is currently being rented from the Association by Youth with a Mission to assist with their work amongst young people in the local area.
Woodside House, Stroud shares a common boundary with the Farmhill Church was purchased during 2015 to provide a base for new missionary work within the area. It is currently rented to a Christian charity operating a drug rehabilitation centre.
| **14 ** | Debtors | 2023 | 2022 |
|---|---|---|---|
| £ | £ | ||
| Accrued income | 5,001 | 1,000 | |
| Other debtors | 4,351 | - | |
| 9,352 | 1,000 | ||
| **15 ** | Cash at bank and in hand | 2023 | 2022 |
| £ | £ | ||
| HSBC Bank | 1,313 | 10,961 | |
| CAF Cash/Gold | 56,785 | 30,350 | |
| COIF Charity Fund | 15,325 | 14,514 | |
| Undeposited funds | 250 | (169) | |
| 73,673 | 55,656 | ||
| **16 ** | Creditors | 2023 | 2022 |
| Amounts falling due within one year | £ | £ | |
| Other Creditors | 19,832 | 4,028 | |
| Accruals and deferred income | 15,607 | 29,164 | |
| Pension deficit liability | - | - | |
| 35,439 | 33,192 |
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17 Statement of Funds Current Year
| Current Year | |||||
|---|---|---|---|---|---|
| Other | At 31 | ||||
| At 1 January | Movements | December | |||
| 2023 | Income | Expenditure | & Transfers | 2023 | |
| £ | £ | £ | £ | £ | |
| Unrestricted | |||||
| General fund | 51,014 | 316,875 | (479,777) | 196,593 | 84,705 |
| Designated | |||||
| Fixed assets | 300,742 | - | (1,514) | 4,167 | 303,395 |
| Programme-related investments | 941,963 | - | - | (100,760) | 841,203 |
| Painswick | 14,943 | - | - | - | 14,943 |
| Partnership In Mission | 28,834 | - | (8,650) | - | 20,184 |
| Tilshead Fund | 7,392 | - | (220) | - | 7,172 |
| Pension deficit fund | - | - | |||
| Total unrestricted funds | 1,344,888 | 316,875 | (490,161) | 100,000 | 1,271,602 |
| Restricted | |||||
| Seventy-two | 670 | - | (207) | - | 463 |
| Willow Garden | 607 | 8,316 | (2,890) | - | 6,033 |
| Leighterton & Culkerton | 16,991 | 811 | - | - | 17,802 |
| Stockwood Church | 10,650 | - | - | - | 10,650 |
| Evangelical Baptists | - | 576 | - | - | 576 |
| Total restricted funds | 28,918 | 9,703 | (3,097) | - | 35,524 |
| Expendable endowment | |||||
| Income fund | 495,698 | - | - | (78,771) | 416,927 |
| 495,698 | - | - | (78,771) | 416,927 | |
| Permanent endowment | |||||
| Avening Fund | 176,490 | - | - | - | 176,490 |
| Total Endowment | 176,490 | - | - | - | 176,490 |
| Total Endowment | 672,188 | - | - | (78,771) | 593,417 |
| TOTAL FUNDS | 2,045,994 | 326,578 | (493,258) | 21,229 | 1,900,543 |
West of England Baptist Association
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17 Statement of Funds (continued)
| Statement of Funds(continued) | |||||
|---|---|---|---|---|---|
| Other | At 31 | ||||
| Prior Year | At 1 January | Movements | December | ||
| 2022 | Income | Expenditure | & Transfers | 2022 | |
| £ | £ | £ | £ | £ | |
| Unrestricted | |||||
| General fund | 52,731 | 421,707 | (517,927) | 94,503 | 51,014 |
| Designated | |||||
| Fixed assets | 301,414 | - | - | (672) | 300,742 |
| Programme-related investments | 775,794 | - | - | 166,169 | 941,963 |
| Painswick | 14,943 | - | - | - | 14,943 |
| Partnership In Mission | 40,028 | 14,006 | - | (25,200) | 28,834 |
| Tilshead Fund | 8,518 | - | (1,126) | - | 7,392 |
| Pension deficit fund | (63,700) | 2,237 | (1,252) | 62,715 | - |
| Total unrestricted | 1,129,728 | 437,950 | (520,305) | 297,515 | 1,344,888 |
| Restricted | |||||
| Seventy-two | 4,393 | - | (3,723) | - | 670 |
| Willow Garden | - | 3,400 | (2,793) | - | 607 |
| Leighterton & Culkerton | 16,812 | 179 | - | - | 16,991 |
| Stockwood Church | 10,650 | - | - | - | 10,650 |
| Total restricted | 31,855 | 3,579 | (6,516) | - | 28,918 |
| Expendable endowment | |||||
| Income fund | 798,403 | - | - | (302,705) | 495,698 |
| 798,403 | - | - | (302,705) | 495,698 | |
| Permanent endowment | |||||
| Avening Fund | 176,290 | - | - | 200 | 176,490 |
| Total Endowment | 176,290 | - | - | 200 | 176,490 |
| Total Endowment | 974,693 | - | - | (302,505) | 672,188 |
| TOTAL FUNDS | 2,136,276 | 441,529 | (526,821) | (4,990) | 2,045,994 |
During the year the trustees have taken the opportunity to further analyse their funds as follows:
General Fund (unrestricted)
This represents the free funds of the charity which are not designated for particular purposes, following the re-distribution of the funds held by the Association.
Fixed Asset Fund (designated)
This fund exists to support the Association in funding the fixed assets it needs to carry out its charitable objects. It includes equipment, the manse at Bussage and the portion of land held at Emersons Green not held within endowment funds (see notes 18 and 19).
Programme-related Investments Fund (designated)
This fund exists to provide support to the churches and individuals within the Association, for purposes approved by the Executive of the charity. This support includes loan finance to property projects, local churches and in special cases, individuals. Interest on loans is subject to negotiation, but at a rate not greater than that charged by the Baptist Union Corporation Limited.
Painswick Fund (designated)
This fund was created from the closure of the United Church at Painswick and represents the balance of the funds held previously from the sale of the old chapel. A new initiative to re-establish a Baptist presence is being funded from this fund. This fund is no longer in use and will be released in 2024.
Partnership In Mission (designated)
This fund has been established to enable church planting and other pioneering activities within the Association.
West of England Baptist Association
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17 Statement of Funds (continued)
Tilshead Fund (designated)
This fund has been set aside from the proceeds of the former Tilshead Baptist church to help fund outreach activity in the surrounding area in partnership with other local Baptist Churches.
Pension deficit fund (designated)
This fund relates to agreed payments the Association owes the Baptist Union Pension scheme over the coming years as described in note 7 above. The fund has been set aside separately such that free reserves can be shown separately to the pension catch up payments. No deficit remains at the 2022 year-end.
Seventy-two (restricted)
Seventy-Two is a network and catalyst for mission across the Baptist Union of Great Britain. Webnet has taken the lead in the programme and records and manages the income and expenditure as a Restricted Fund. Income has come directly from other Associations or from the Baptist Union itself and is used to cover employment and other overheads running the programme or on specific Seventy-Two projects.
Willow Gardens Fund (restricted)
This fund records amounts received and expended for Willow Gardens, Portishead. Willow Gardens hosts regular outdoor Christian worship, primarily amongst those who would not otherwise engage with church. It is a welcoming space for everyone to garden, chat, grow and belong.
Leighterton & Culkerton (restricted)
This capital fund, held under a trust created in July 1947, exists to provide income for the Leighterton & Culkerton churches in Gloucestershire. Both churches have now closed so the income of the fund may be used for Colportage and Evangelistic work in the surrounding villages and district.
Stockwood Church Fund (restricted)
This fund represents the cost of the Stockwood Church which is governed by an ultimate trust dated June 1977. Should the church close and the premises sold, the proceeds will be shared between the Association and Bristol City Mission Society.
Evangelical Baptists (restricted)
Evangelical Baptists are a grouping of Baptist churches and Ministers, comprised from all our Baptist associations, in which Webnet is taking a lead.
Income Fund (Expendable endowment)
This fund holds the charitable company’s investments, all of which are held in with Brewin Dolphin Limited. The purpose of the fund is to generate income for the on-going work of the Association. The fund is held as part of the company's reserve and all or part of it may be transferred to unrestricted funds by decision of the trustees. At the year-end the General fund was below its agreed minimum, so an additional transfer back has been used to restore the General Fund.
Avening Fund (Permanent Endowment)
This endowment fund was created following a Charity Commission scheme following the closure of the Avening Baptist Church in 1995. The scheme restricted the use of the capital in the fund to the provision of premises of churches within the South Gloucestershire area. This is the land at Emerson's Green.
18 Assets analysed between funds
Current Year
| Current Year | ||||
|---|---|---|---|---|
| Unrestricted | Restricted | Endowment | Total 2023 | |
| £ | £ | £ | £ | |
| Tangible Fixed assets | 303,395 | 10,650 | 176,490 | 490,535 |
| Programme-related investments | 841,203 | - | - | 841,203 |
| Investments | 104,292 | - | 416,927 | 521,219 |
| Net current assets | 22,712 | 24,874 | - | 47,586 |
| 1,271,602 | 35,524 | 593,417 | 1,900,543 |
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18 Assets analysed between funds (continued)
Unrestricted: analysed between funds
| Unrestricted: analysed between funds | ||||
|---|---|---|---|---|
| General | Designated | Total | ||
| £ | £ | £ | ||
| Tangible Fixed assets | - | 303,395 | 303,395 | |
| Programme-related investments | - | 841,203 | 841,203 | |
| Investments | 61,993 | 42,299 | 104,292 | |
| Net current assets | 22,712 | - | 22,712 | |
| 84,705 | 1,186,897 | 1,271,602 | ||
| Prior Year | Unrestricted | Restricted | Endowment | Total 2022 |
| £ | £ | £ | £ | |
| Tangible Fixed assets | 300,742 | 10,650 | 176,490 | 487,882 |
| Programme-related investments | 941,963 | - | - | 941,963 |
| Investments | 693 | 3,985 | 588,007 | 592,685 |
| Net current assets | 101,490 | 14,283 | (92,309) | 23,464 |
| 1,344,888 | 28,918 | 672,188 | 2,045,994 |
Unrestricted: analysed between funds
| Unrestricted: analysed between funds | |||
|---|---|---|---|
| General | Designated | Total | |
| £ | £ | £ | |
| Tangible Fixed assets | - | 300,742 | 300,742 |
| Programme-related investments | - | 941,963 | 941,963 |
| Investments | - | 693 | 693 |
| Net current assets | 51,014 | 50,476 | 101,490 |
| 51,014 | 1,293,874 | 1,344,888 |
19 Share capital
The company is limited by guarantee and therefore has no share capital.
20 Capital expenditure commitments
At the time of production of this Annual Report and Accounts no capital expenditure has been authorised.
21 Related party transactions
During the period, West of England Baptist Association was the parent company of West of England Baptist Payroll Company Limited.
During the year Management charges amounting to £7,200 (2022 - £7,200) towards the administrative costs were paid to the Association. The company paid a donation of £17,929 (2022 - £29,053) to the charity during the year.
The West of England Baptist Trust Company is a wholly owed subsidiary of the West of England Baptist Association. The charity administers the Association's investments on its behalf. During the year, the Association received dividends and income of £17,089 (2022 - £19,057). At the year end, the Trust Company held investments of £520,321 (2022 - £588,007), and a cash balance of £898 (2022 - (£7,304)). The Trust Company also paid the Association £9,000 (2022 - £9,000) towards administrative costs during the year.
During the year donations of £nil were received from Trustees (2022 - £nil). Details of trustees' remuneration and trustees' expenses reimbursed are shown in note 7. There were no other related party transactions during the year.