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2020-08-31-accounts

Registered number: 04029536 Charity number: 1092935

BARNABAS FUND

(A company limited by guarantee)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

BARNABAS FUND

(A company limited by guarantee)

CONTENTS

Page
Reference and administrative details of the Company, its Directors and Trustees and 1 - 2
advisers
Trustees' report 3 - 13
Independent auditors' report on the financial statements 14 - 17
Statement of financial activities 18
Income and expenditure account 19
Balance sheet 20
Statement of cash flows 21
Notes to the financial statements 22 - 41

BARNABAS FUND

(A company limited by guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS DIRECTORS AND TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2020

Directors and Trustees

Rev A B Hauser Miss C J C Kerslake Rev I S McNaughton, Vice-Chairman Rev P Mursalin Rev Dr V K Samuel, Vice-Chairman Mrs R A Sookhdeo Marquess of Reading, Chairman A Carey

Company registered number

04029536

Charity registered number

1092935

Registered office

The Old Rectory River Street Pewsey Wiltshire SN9 5DB

Company secretary

David Dean

Senior Management Team

David Dean, Chief Executive Officer Paul Mulholland, Chief Operating Officer

Independent auditors

Griffin Stone Moscrop & Co Chartered Accountants Statutory Auditors 21-27 Lamb's Conduit Street London WC1N 3GS

Bankers

Barclays Bank plc Dockland Leicestershire LE27 2BB

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BARNABAS FUND

(A company limited by guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS DIRECTORS AND TRUSTEES AND ADVISERS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

Solicitors

Wilson Bramwell Solicitors 34 Victoria Avenue Harrogate HG1 5PR

Insurance Brokers

Access Insurance Selsdon House 212-220 Addington Road South Croydon Surrey CR2 8LD

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BARNABAS FUND

(A company limited by guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2020

The Trustees of Barnabas Fund (“the Charity”), who are also directors of the Charity for the purposes of the Companies Acts present their annual report together with the audited financial statements of the Charity for the year ended 31 August 2020. The annual report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).

Since the Company qualifies as small under section 382 of the Companies Act 2006, the Strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.

STATUS AND ADMINISTRATION

The Charity is a registered charity (No. 1092935) and a company (No. 04029536) limited by guarantee that was incorporated on 7 July 2000. Its registered office is shown on page 1 of this report. The present Trustees and any past Trustees who served during the year are also shown on page 1, together with the names of the senior management staff and the principal external advisers as at the date of the signing of this report.

CHARITY'S PURPOSE

The Charity’s purpose, as set out in the objects clause contained in its articles of association, is:

  1. The advancement of the Christian faith;

  2. The prevention or relief of suffering, poverty and distress;

  3. The promotion of Human Rights (as set out in the Universal Declaration of Human Rights and subsequent United Nations Conventions and Declarations) by:

  4. i) educating the public about Human Rights;

  5. ii) raising awareness of Human Rights issues;

  6. iii) providing technical advice to governments and others on Human Rights matters;

  7. iv) eliminating infringement of Human Rights;

  8. The promotion of conflict resolution and reconciliation by all appropriate means;

  9. The promotion of religious or racial harmony, equality and diversity;

  10. The advancement of citizenship or community development;

  11. The relief of those in need by reason of youth, age, ill health, disability, financial hardship or other disadvantage.

CHARITY'S AIM

The Charity’s main aim is to help meet the practical and spiritual needs of Christians facing persecution; to encourage, strengthen and enable local Church and Christian communities so they can maintain their presence and witness; and to tackle persecution by making known the aspects of faiths and ideologies that result in injustice and oppression of Christians and others. It also aims to facilitate global intercession for the persecuted Church by providing comprehensive prayer material and to inform and enable Christians in the West to respond to the growing challenge of Islam in their own countries.

OVERVIEW OF CHARITY’S ACTIVITIES

The Trustees review the purpose, aims and activities of the Charity each year. This review looks at the achievements during the previous year, beyond just the finances, and explains how beneficiaries were assisted. When carrying out the review and planning future activities, the Trustees refer to the guidance contained in the Charity Commission’s general guidance on public benefit and its supplementary guidance on the advancement of religion for public benefit. In particular the Trustees consider how planned activities will contribute to the aims and objectives they have set.

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BARNABAS FUND (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

The Charity was established to serve and support the persecuted Church worldwide. The Charity is an integral part of the global ministry of Barnabas Fund. The global work of Barnabas Fund is facilitated and coordinated from its headquarters, Christian Relief International (CRI). Registered in the USA, (CRI) also has an operational office in the United Kingdom. This Head Office provides all Editorial materials (magazines, project reports, etc.) in addition to Project Administration and IT support. This enables the global ministry of Barnabas Fund to operate at overheads lower than 12%. The Charity’s main activities are undertaken through the channelling of funds to the Global Barnabas Ministry via the Head Office for allocation to projects that meet the objectives of the Charity. The Charity has entered into a Memorandum of Understanding (MoU) with the Head Office, agreed and signed in December 2019. The Head Office undertakes and affirms to use the funds in accordance with the desires of the donors and in line with the MoU. The Charity is an integral part of the Global Barnabas Ministry as it serves and supports the persecuted Church.

The Charity has five main activities, namely:

  1. Ministry grants: During the year, funds were transferred to Barnabas Fund International who disbursed them to carefully chosen project partners to enable them to support persecuted Christians in their respective areas.

  2. Education and research: The provision of resources to further the education of the general public about the needs of the persecuted Church and research into the causes and extent of Christian persecution.

  3. Facilitating prayer: The provision of a prayer diary and other resources to help supporters pray for the persecuted Church as a whole as well as individual Christians suffering persecution. We highly value the prayers of our supporters and providing material to facilitate prayer is a primary focus for Barnabas Fund.

  4. Raising awareness: Providing information, education and generally raising awareness concerning human rights and the persecuted Church.

  5. Projects assisting the suffering church: Costs associated with assisting the suffering church worldwide that do not fall into the above categories.

Activities for Achieving Objectives

The Objects of the charity include the advancement of the Christian faith, the prevention of suffering, poverty and distress, promotion of human rights and relief of those in need. The Trustees have determined that the best way to advance these objectives is by strengthening Christian individuals, churches and communities in places where they are a minority and suffer discrimination, hostility, violence etc. This is done by providing practical support and alleviating suffering, poverty and distress for Christian members of the public in such situations in order to enable them to survive and to continue their Christian witness and ministry in order that the Christian faith is maintained, advanced and promoted in places where it is under pressure or even in danger of extinction.

In accordance with these objects and aims, the charity benefits a certain section of the public; the estimated 200 million Christians living as minorities in situations of discrimination or persecution because of their faith, or where the Church is under pressure in other ways. Within this section of the public are a wide range of denominations, nationalities and ethnic groups from a wide diversity of church backgrounds in over 80 countries. The Charity does not restrict its activities geographically and many of those assisted by the Global Barnabas Ministry are in extreme poverty and distress including those displaced from their homes by natural disasters, warfare or persecution.

The charity helped to advance the Christian faith by providing support for full-time Christian workers, training for Christian leadership and supplying Christian literature and resources. Other kinds of projects also help to do this by providing economic assistance, which enables Christians and their communities to survive and prosper. For example, income generation projects enable Christians who are discriminated against in the jobs market to support themselves and their families. Likewise feeding programmes are vital for the poorest Christians whether their need arises from natural disaster and/or from discrimination and persecution. Health needs are met by medical projects and by water and sanitation projects. The future economic viability and spiritual resilience of the Christian community are improved by enabling the children of Christian families to get a good education. Without such help it is likely that these Christians will continue to live in on-going poverty as despised members of society, and being vulnerable to violent attack they may be forced to flee their homes or even their homeland.

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BARNABAS FUND (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

The charity also benefits a wider section of the public in the UK in particular (but also worldwide) by providing information, education and raising awareness concerning human rights and the persecuted Church, and publishing materials on these issues.

Volunteers

The Charity is extremely grateful for the support of approximately 400 unpaid volunteers functioning as Church Partners, Area Partners and/or Speakers. Some volunteers take on two or more of these roles. These volunteers assist the charity by educating and raising awareness of the work of the charity and the needs of persecuted Christians. Their roles include speaking at meetings, organising events, distributing magazines, and displaying and circulating materials. Their educational work increases awareness of the plight of oppressed Christians and stimulates increased prayer and financial support for the charity.

However, due to the impact of coronavirus lockdowns, many of our volunteers were unable to serve in these ways from March 2020. From this month, our engagement with our supporters was accomplished through digital means since physical meetings were not possible. The partnership team expanded to include a part-time Scotland co-ordinator, who joined the Chief Executive Officer and Head of Operations in our UK office in Coventry, together with our director in Northern Ireland.

Review of charitable activities

The charitable expenditure for the year has been directed towards the meeting of the below key objectives of the charity in the following ways:

  1. Ministry Grants - During the year, funds were transferred to Barnabas Fund International, who in turn disbursed the funds to carefully chosen project partners. In a prompt response to the global coronavirus pandemic, a COVID support fund was established in order to meet the immediate and emergency needs of suffering and/or persecuted Christians in their respective areas. We also launched Investing in Hope, in which we focussed on the six strategic areas of (i) leadership development (ii) schools and vocational training (iii) income generation (iv) health (v) spiritual resources and (vi) vulnerable Christians.

In the context of ever-changing geo-political/religious landscapes around the world, Barnabas Fund’s supporters have enabled the Charity’s projects to continue helping the most vulnerable of Christians. These projects fall within 12 broad categories, and the impact of the Charity – as a member of the Global Barnabas Ministry – within each of these categories is visible in the chart shown on the next full page.

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BARNABAS FUND (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

The figures reflect funding for one year, from 1 April 2019 to 31 March 2020.

  1. Education – The bimonthly magazine, “Barnabas Aid”, including a special educational pull-out supplement, is sent to 115,599 recipients, some of whom receive multiple copies. The great majority of these are supporters based in the UK but copies of the magazine were mailed to supporters in a further 87 countries. -

The magazine is also available online, and can be accessed at https://barnabasfund.org/en/news/receive news-updates/barnabas-aid-magazine.

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BARNABAS FUND (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

This year saw a continuation of our annual Suffering Church Action and Awareness Week (SCAAW), which incorporated Suffering Church Sunday and the Barnabas Fund Day of Prayer. The SCAAW theme for this year was Hope in Suffering (tying in with our Investing in Hope strategy). Supporters are encouraged to get involved with SCAAW in their local churches. The SCAAW Inspiration pack, used by supporters, included a sermon outline with accompanying PowerPoint, a devotional guide which contained daily readings and prayers for the week, a prayer bookmark, a Gift Aid envelope a SCAAW poster that can be used to advertise any local SCAAW events and a money box for taking up a collection for persecuted Christians

  1. Raising Awareness – The Charity continues to issue regular e-mail news updates providing up to date information on relevant situations around the world to approximately 31,927 subscribers (2019 - 33,047 subscribers). There has been an on-going engagement with our website with the average number of pages viewed being 2.3 during the year. On our Facebook account “Likes” have increased from 20,143 to 22,205 and Twitter “Followers” have increased from 9,321 to 10,130.

The Charity, in partnership with Barnabas Fund International, continues to provide articles for various publications and periodicals and also gives radio and TV interviews. Issues relating to the persecution of Christians have been the subject of significant Parliamentary debate and the charity has provided briefing papers to Parliamentarians. The charity’s network of voluntary Church and Area Partners make a significant contribution towards educating local Christians and Churches about the Persecuted Church. A series of leaflets highlighting major areas of the charity’s work were placed in a variety of publications and generated both one-off and recurring donations from both new and existing supporters.

  1. Prayer – The bimonthly publication “Barnabas Prayer” giving daily prayer items was circulated to all on the mailing list. In addition, a monthly “Prayer Focus” update report is prepared and circulated both by email and as a paper copy aimed primarily at prayer groups. This resource is now sent to 31,412 supporters with a further 989 hard copies sent out to 703 recipients. Prayer items are also included in e-mail news releases and daily prayer items are also posted on the website and circulated using Twitter and Facebook.

Factors Affecting the Achievement of the Objectives

The Trustees were mindful of the significant external pressures brought on by the impact of COVID-19 and related lockdowns in the UK and globally. However, the possible negative impact on donations failed to materialise, and the fact that donations increased during the financial year is, the Trustees believe, testament to the confidence our supporters have in the Charity. The Trustees remain very grateful to Barnabas Fund supporters for their generous donations throughout the year, especially during a year of such momentous change and worldwide turmoil.

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BARNABAS FUND (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

The Trustees are pleased to acknowledge the good reputation of Barnabas Fund. This reputation continues to be a critical asset for the future. The Charity continues to monitor the impact of COVID-19 locally and internationally, in order to make any operational changes required to continue ensuring the safety of its staff, and ensure it remains able to support the most vulnerable, persecuted and poor Christian communities around the world. The Trustees are very mindful that the COVID-19 situation remains uncertain, and will be closely monitoring its impact, and of course any consequent possible negative impact on donations.

BARNABAS FUND’S PEOPLE

Trustees

Barnabas Fund is grateful to the Trustees who voluntarily give their valuable time to serve on the various committees that are necessary to ensure the delivery of Barnabas Fund’s activities to the highest possible standard.

Staff

The Trustees wish to record their thanks to the staff of the charity for their sterling service on behalf of the charity, recognising that without their efforts, it would not have been possible to achieve this excellent result.

Barnabas Fund currently employs 14 staff (less than 13 full-time equivalent). All staff joining Barnabas Fund must undertake induction training appropriate to their work area with the common topics of health and safety and IT. Ongoing professional development training is encouraged and staff are given the time to attend courses, seminars and conferences as approved by their line manager.

All salaried staff are paid above the real Living wage of £8.45 per hour. No member of staff received remuneration above £60,000.

Volunteers

In addition to paid staff, Barnabas Fund enjoys the support of a number of individuals and organisations that give time in specific areas of our operation. The network of voluntary Church and area representatives and voluntary speakers, known collectively as Partners, make a significant contribution towards educating local Christians and Churches about the persecuted Church and we are immensely grateful for the time and effort they dedicate to this work. While physical visits were not possible for much of the year due to lockdowns, volunteers continued to contribute using remote communication methods.

Supporters and Donors

Without our donors none of the valuable work Barnabas Fund does would be possible and the Trustees are very grateful for all their support, including donors such as the Saint Patrick’s Cathedral’s Charitable and Community Fund, Dublin.

Amidst an extremely challenging environment that could not have been envisaged, everything the Charity has achieved this year was only possible by the grace of God, and through the generosity of our donors. We also recognise that the part played by our supporters is much greater than their financial donations, important though they are, and we remain deeply grateful for their many words of encouragement, feedback and prayers, both for the persecuted Church and for Barnabas Fund.

The Charity remains fully committed to best practice in fundraising and data protection. The Charity is therefore registered with the statutory body, the Fundraising Regulator. The Charity continues to treat supporters in a manner that is respectful, courteous, non-invasive and in line with our Christian values. It is essential that we are transparent and accountable when it comes to fundraising. The Charity has never, and will never, engage in cold-calling nor use third-party fundraising organisations.

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BARNABAS FUND (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

FINANCIAL REVIEW

Against the background of economic uncertainties and cut-backs which have affected and continue to affect supporters in both the UK and other Western countries, the Trustees are very pleased with the financial position of the charity at the end of this financial year. The level of income in the 2019/20 financial year has exceeded our expectations. The income received by Barnabas Fund for the year was £16,566,615 including Gift Aid (2019 - £14,178,496), and we are very grateful to all of our supporters for their generous giving.

The number of recurring gifts for which funds were received during the year ended 31 August 2020 was 12,919 (2019 - 12,601). The total amount received via recurring giving in the year ended 31 August 2020, excluding gift aid, increased by 5.69% to £3,560,264 (2019 - £3,368,748). The total number of donations in the form of regular payments received during the year was 133,429 (2019 - 130,703). The Trustees are deeply grateful to supporters willing to pledge their on-going support to the charity in this very cost-effective form of giving.

Barnabas Fund has consistently kept its overheads to a minimum, below 5%, and for the global Barnabas ministry below 12% of total income, to enable the Charity to ensure that more of each pound donated reaches our persecuted Christian brothers and sisters.

Charitable activity expenditure was £16,336,236 (2019 - £14,144,495). These figures do not include costs of governance which were £13,928 during the year (2019 - £19,656).

Further details on charitable activity expenditure are shown in the notes to the financial statements and under the relevant charitable activity headings in the Trustees report.

The net income for the year ended 31 August 2020 before the revaluation of investment assets was £14,818 surplus (2019 - deficit £180,989). The overall result after the revaluation of investment assets was a surplus of £14,818 (2019 - deficit £180,989).

Capital expenditure for the year was Nil.

The Trustees believe the Statement of Financial Affairs (SOFA) shows a strong performance by Barnabas Fund.

RESERVES

Restricted Reserves

Restricted Funds are funds where the donor has specified to the Charity the purpose for which they would like the Charity to use their gift. During the year ended 31 August 2020, Barnabas Fund transferred all balances on restricted funds to Barnabas Fund International in accordance with the MoU signed in December 2019. Barnabas Fund International undertakes to use the funds in accordance with the desires of the donors and in line with the MoU. However, if the project chosen is sufficiently funded, the right is reserved to use the designated gifts either for another project of a similar type or for another project in the same country. Barnabas Fund International has provided written assurance that all expenditure is in accordance with the wishes of the donor. The BF UK Trustees remain informed, and have access to all project grant information, and are satisfied with the end use of all donations.

Free Reserves

Free Reserves available for use by the Charity are deemed to be those that are readily realisable, less funds whose use is restricted or designated for particular purposes. Thus, the calculation of Free Reserves excludes fixed assets that continue to be used in the day-to-day operation of the Charity.

As a matter of policy the Trustees regularly review the value of the reserves required to be held in investments, cash and cash equivalents not restricted to or designated for any particular purpose. The Trustees have set a target level of reserves of £250,000. This will enable the charity to meet its operating expenses for a period of between 2 to 3 months should there be a downturn in income for the charity.

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BARNABAS FUND

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

At 31 August 2020 the General Reserve was £554,987 (2019 - £524,167). Running costs include all staff salaries and other costs associated with administering the charity and its funds. The Trustees will continue to look to decrease the General Reserve over the next few years in line with the reserves policy.

The Fixed Asset Fund represents the net book value of fixed assets which have been purchased with unrestricted funds. This reserve is locked into the value of fixed assets and the value can be released only if they are sold.

The IT Fund of £13,500 (2019 - the same) is held to fund planned major improvements to the information and communication systems of the charity.

The Barnabas Books Fund of £1,911 (2019 - the same) is a sum set to cover funds due to Isaac Publishing for the distribution of books.

RISK MANAGEMENT

Barnabas Fund’s approach to risk management is designed to ensure that it remains alert to those external and internal factors that could affect its ability to operate effectively, or even at all. The work of establishing the risks facing Barnabas Fund and ensuring suitable mitigating action is being taken is reviewed regularly by the Management and Trustees. Further information on risk management can be found in the Trustees’ Statement on Governance.

FUTURE PLANS & DEVELOPMENTS

Socio-religio-political factors, in addition to the economic and social impact of COVID-19, suggest that the oppression and persecution of Christians in many countries of the world is set to increase. The major objective for the coming year is to communicate the needs of the Persecuted Church to our supporters with confidence and clarity so that they will continue to pray and donate to the work and enable us to increase our support to projects that assist Christians and the Church in situations of oppression or persecution.

The Charity had already taken steps to increase its digital footprint in the previous financial year, and has seen a resultant increase in the digital revenues received. The Charity will continue to explore these avenues through which it can connect more effectively with its supporter base. The Trustees are thankful that the Charity, with its very strong supporter base, remains well placed in the challenging charitable landscape post lockdown. The Trustees have been encouraged by a positive start to the new financial year, with supporters responding well to appeals to assist persecuted Christians.

AND FINALLY…

Barnabas Fund gives thanks to God for its continued growth and the Trustees pray that the organisation will be able to continue raising awareness, encouraging prayer, and providing practical support and care to the persecuted church for as long as it is needed.

This report was approved by the Board of Trustees in their capacity as Company directors on 20 May 2021 and signed on their behalf by:

Marquess of Reading - Chairman

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BARNABAS FUND (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

TRUSTEES’ STATEMENT ON GOVERNANCE

Governance

The Charity is governed by its Memorandum and Articles of Association adopted on 7 July 2000 as amended by Special Resolution passed on 3 November 2010. The Board of Trustees is responsible for the overall governance of the Charity and meets at least three times a year.

The CEO has the leadership role in respect of all delegated executive responsibilities, and is responsible for the day-to-day management of the Charity’s affairs and implementing policies agreed by the Trustees. The Barnabas Covenant was a memorandum of understanding, agreed in October 2013 and updated in March 2016, which remained in force until the dissolution of the Barnabas Covenant in February 2017. Therefore, Barnabas Fund is no longer governed by the Barnabas Covenant. The Charity has entered into a MoU – agreed and signed in March 2017 and updated in December 2019 – with Barnabas Fund International. Barnabas Fund is an integral part of Barnabas Fund International and the Global Barnabas Ministry as it serves and supports the persecuted Church.

Trustee Selection, Induction and Appraisal

Under the Charity’s Articles and Memorandum of Association the Trustees may at any time co-opt any person duly qualified to be appointed as a Trustee to fill a vacancy in their number or as an additional Trustee. In seeking potential appointees the Board look for individuals who are appropriate to the skills and experience needed by the Board and reflect the work of the Charity in pursuit of its charitable purposes. The Board seeks to appoint Trustees who are passionate about supporting the work of the Persecuted Church and recruitment of new Trustees focuses on individuals with a long-standing knowledge of the charity who are known personally to the existing Trustees or who bring particular skills and experience to the work.

Induction and training of new Trustees includes providing them with copies of the charity’s governing documents, “The Essential Trustee: What you need to know” (Charity Commission publication CC3), and the charity’s Statement of Faith. Trustees are normally familiar with the work of the charity already but any extra information necessary is provided, and they will be introduced to senior members of staff.

New Trustees are required to sign a statement that they have read and understood “The Essential Trustee: What you need to know” (Charity Commission publication CC3), that they are not disqualified from acting as a trustee, that they affirm the charity’s Statement of Faith, and that they will seek to act always in accordance with Biblical principles. Every Trustee must sign a Declaration of Willingness to act as a Charity Trustee of the Charity before they are eligible to vote at any meeting of the Trustees. They are also required to declare in writing any existing or potential conflicts of interest.

Statement of Trustees’ Responsibilities and Corporate Governance

The Trustees are responsible for their annual report and for the preparation of financial statements for each financial year in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company and Charity law require the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charity and which give a true and fair view of the incoming resources and application of those resources of the Charity for that year, and of the state of affairs as at the end of the financial year.

In preparing these statements, the Trustees are required to select suitable accounting policies, as described in the financial statements, and then apply them on a consistent basis, making judgements and estimates that are prudent and reasonable and conform to the methods and principles of the Charities SORP. The Trustees must also prepare the financial statements on a going concern basis unless it is inappropriate to presume that the Charity will continue.

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BARNABAS FUND (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

The Trustees have overall responsibility for ensuring that the Charity has appropriate systems and controls, financial and otherwise. They are also responsible for ensuring that the Charity keeps proper accounting records that disclose with reasonable accuracy at any time the financial position of the Charity and enable the financial statements to comply with Companies Act 2006. They are also responsible for safeguarding the assets of the Charity and for their proper application as required by Charity law, and hence for taking reasonable steps for the prevention and detection of fraud, and other irregularities, and to provide assurance that:

In so far as the Trustees are aware:

Internal controls over all forms of commitment and expenditure continue to be refined to improve efficiency. Processes are in place to ensure that performance is monitored and appropriate management information is prepared and reviewed regularly by both the executive management and the Trustees. The systems of internal controls are designed to provide reasonable assurance against material mis-statement or loss. They include:

Matters Reserved to the Trustees

The following matters are specifically reserved for approval by the Trustees:

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BARNABAS FUND (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

Risk Management

Serious risks can have a major impact on the ability of a charity to fulfil its charitable aims causing disruption to the business or, at the most extreme, cause significant financial loss. The Board of Trustees are responsible for the overall running of the charity and need to be aware of the risks to the business and the processes that are in place to mitigate them. Risk assessment provides a framework for the Board of Trustees of Barnabas Fund to identify potential risks to which the organisation is exposed and how these can be and are being mitigated.

The Trustees have a formal risk management process to assess risks and to implement risk management strategies. A risk assessment (the BF UK Board Risk Assessment) is carried out by the Chief Executive Officer on behalf of the Trustees; risks are identified and assessed for impact and probability and an action plan to control the major risks is prepared.

The risk analysis covers four major areas: compliance, financial, operational and macroeconomic. Failure to comply with any of the legislation covering the charity would have serious implications; the Trustees have a close working relationship with the charity’s legal and professional advisors to help mitigate this risk.

The Trustees consider that the greatest risk facing the charity is that of a decrease in financial support from the public due to either a period of recession or financial decline in the UK and the wider Western World and/or reputational damage caused by adverse publicity. The charity maintains insurance to defend itself against false and malicious claims arising from its publications and other media activities. Other major risks identified have been mitigated to an acceptable level by ensuring documented procedures are in place and taking other measures deemed appropriate.

This statement on governance was approved by the Board of Trustees in their capacity as Company directors on May 20 2021 and signed on their behalf by:

Marquess of Reading - Chairman

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BARNABAS FUND

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BARNABAS FUND

Opinion

We have audited the financial statements of Barnabas Fund (the 'charitable company') for the year ended 31 August 2020 which comprise the Statement of financial activities, the Income and expenditure account, the Balance sheet, the Statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is 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 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

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BARNABAS FUND

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BARNABAS FUND (CONTINUED)

Other information

The Trustees are responsible for the other information. The other information comprises the information included in the Annual report, other than the financial statements and our Auditors' report thereon. 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.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Opinion 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 our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' report.

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

Page 15

BARNABAS FUND

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BARNABAS FUND (CONTINUED)

Responsibilities of trustees

As explained more fully in the Trustees' responsibilities statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) 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 Trustees 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 Trustees are responsible for assessing the charitable 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 Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditors' 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 Auditors' 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.

As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Page 16

BARNABAS FUND

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BARNABAS FUND (CONTINUED)

Use of our report

This report is made solely to the charitable 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 charitable company's members those matters we are required to state to them in an Auditors' 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 charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Richard Hill (Senior statutory auditor) for and on behalf of Griffin Stone Moscrop & Co Chartered Accountants Statutory Auditors 21-27 Lamb's Conduit Street

London WC1N 3GS 24 May 2021

Page 17

BARNABAS FUND

(A company limited by guarantee)

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2020

Note
Income from:
Donations and legacies
3
Charitable activities
4
Investments
5
Other income
6
Total income
Expenditure on:
Raising funds
7
Charitable activities
8
Total expenditure
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2020
£
9,955,696
4,597
5,487
-
9,965,780
201,633
9,740,022
9,941,655
24,125
557,486
24,125
581,611		 Restricted
funds
2020
£
6,600,835
-
-
-
6,600,835
-
6,610,142
6,610,142
(9,307)
9,307
(9,307)
-		 Total
funds
2020
£
16,556,531
4,597
5,487
-
16,566,615
201,633
16,350,164
16,551,797
14,818
566,793
14,818
581,611		 Total
funds
2019
£
14,168,191
4,083
6,151
71
14,178,496
195,334
14,164,151
14,359,485
(180,989)
747,782
(180,989)
566,793

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

The notes on pages 22 to 41 form part of these financial statements.

Page 18

BARNABAS FUND

(A company limited by guarantee)

SUMMARY INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 AUGUST 2020

Note
Gross income in the reporting period
Less: Total expenditure
Net income/(expenditure) for the reporting period
The notes on pages 22 to 41 form part of these financial statements.		 Total funds
2020
£
16,566,615
(16,551,797)
14,818		 Total funds
2019
£
14,178,496
(14,359,485)
(180,989)

Page 19

BARNABAS FUND (A company limited by guarantee) REGISTERED NUMBER: 04029536

BALANCE SHEET AS AT 31 AUGUST 2020

Note
Fixed assets
Tangible assets
13
Current assets
Debtors
14
Cash at bank and in hand
Creditors: amounts falling due within one
year
15
Net current assets
Total assets less current liabilities
Net assets excluding pension asset
Total net assets
Charity funds
Restricted funds
17
Unrestricted funds
17
Total funds		 704,247
389,810
1,094,057
(523,659)		 2020
£
11,213
11,213
570,398
581,611
581,611
581,611
-
581,611
581,611		 539,580
495,654
1,035,234
(486,349)		 2019
£
17,908
17,908
548,885
566,793
566,793
566,793
9,307
557,486
566,793

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

................................................

Marquess of Reading (Chair of Trustees) Date: 20 May 2021

The notes on pages 22 to 41 form part of these financial statements.

Page 20

BARNABAS FUND

(A company limited by guarantee)

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2020

Cash flows from operating activities
Net cash used in operating activities
Cash flows from investing activities
Dividends, interests and rents from investments
Net cash provided by investing activities
Cash flows from financing activities
Net cash provided by financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
The notes on pages 22 to 41 form part of these financial statements		 2020
£
(111,331)
5,487
5,487
-
(105,844)
495,654
389,810		 2019
£
(139,293)
6,151
6,151
-
(133,142)
628,796
495,654

Page 21

BARNABAS FUND

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

1. General information

Barnabas Fund is established as a company limited by guarantee and is registered as a charity with the Charity Commission of England and Wales. The affairs of the company are governed by its Memorandum and Articles of Association on 7 July 2000, as amended by Special Resolutions 10 December 2013 and its registered charity number is 1092935.

Further information on the entity can be found within the Trustees' Report.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Barnabas Fund meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

2.2 Company status

The company is a company limited by guarantee. The members of the company are the Trustees named on page 1. In the event of the company being wound up, the liability in respect of the guarantee is limited to £1 per member of the company.

2.3 Income

All income is recognised once the Company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made, or when a distribution is received from theestate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor's intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate,and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material.

Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.

Page 22

BARNABAS FUND

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

2. Accounting policies (continued)

2.4 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Costs of generating funds are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds.

Charitable activities and Governance costs are costs incurred on the charity's educational operations, including support costs and costs relating to the governance of the company apportioned to charitable activities.

Governance costs comprise the costs of running Barnabas Fund, including strategic planning for future development, external audit, any professional advice for the Trustees and all the costs of complying with constitutional and statutory requirements, such as the costs of meetings and preparing statutory financial statements and satisfying public accountability.

The amount of grants made for charitable projects represents the cash grants paid during the year to Christian Relief International (aka Barnabas Fund International). Christian Relief International is responsible for managing the projects supported by the Barnabas Family. A list of grants made to end recipients can be found in the financial statements of the respective grant making charities.

All expenditure is inclusive of irrecoverable VAT.

2.5 Government grants

Grants of a revenue nature are recognised in the Statement of financial activities in the same period as the related expenditure.

2.6 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

2.7 Foreign currencies

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at rates of exchange ruling at the reporting date.

Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction.

Exchange gains and losses are recognised in the Statement of financial activities.

Page 23

BARNABAS FUND

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

2. Accounting policies (continued)

2.8 Tangible fixed assets and depreciation

Tangible fixed assets costing £5,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. The recoverable amount of the asset is determined to be the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised in the Statement of financial activities incorporating the income and expenditure account, where the carrying amount exceeds the recoverable amount.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line or reducing balance method as specified below.

Depreciation is provided on the following bases:

Motor vehicles - 25% reducing balance
Fixtures and fittings - 25% reducing balance
Computer equipment - 5 years straight line

2.9 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

2.10 Cash at bank and in hand

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

2.11 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

2.12 Financial instruments

The Company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

Page 24

BARNABAS FUND

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

(A company limited by guarantee)

2. Accounting policies (continued)

2.13 Pensions

The Company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Company to the fund in respect of the year.

2.14 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Company and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Company for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

The Charity does not allocate investment income between the individual restricted funds as it is considered that the costs associated with the administrative time taken to carry out such a task across the numerous restricted funds would exceed the benefit of doing so. Similarly it is the Charity's policy to not charge the respective restricted funds for the costs of administering each individual project. Instead such costs are charged to the unrestricted funds. Therefore in essence the Charity is adopting a pragmatic approach in using the investment income to cover the administration costs that relate to individual projects without allocating the income and expenditure to each fund.

2.15 Reserve funds

The policy of the Trustees is to maintain in a Designated Fund such sums as they deem prudent for the future refurbishment of the IT and communications systems.

In addition, the Trustees maintain a Free Reserve to provide working capital to create a buffer in case there is a sudden reduction in donations. The Trustees' policy is to retain a buffer equal to 2 to 3 months of normal charitable operating expenditure.

2.16 Management of liquid resources

The policy for the management of liquid resources is defined by the financial commitments of Barnabas Fund. Barnabas Fund aims to keep funds on deposit until such time as they are needed to pay for designated projects, as highlighted within the notes to the financial statements.

Page 25

BARNABAS FUND

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

3. Income from donations and legacies

Unrestricted
funds
2020
£
Donations
8,748,871
Legacies
490,823
Operating grants
702,889
Grants from TBF Trust
4,567
Government grants
8,546
9,955,696
Unrestricted
funds
2019
£
Donations
7,264,380
Legacies
612,881
Operating grants
685,105
Grants from TBF Trust
397,197
8,959,563		 Restricted
funds
2020
£
6,600,335
500
-
-
-
6,600,835
Restricted
funds
2019
£
5,199,321
9,307
-
-
5,208,628		 Total
funds
2020
£
15,349,206
491,323
702,889
4,567
8,546
16,556,531
Total
funds
2019
£
12,463,701
622,188
685,105
397,197
14,168,191

.

Segmental analysis of donations (including Gift Aid), non-operating grants and legacies

England
Northern Ireland
Scotland
Wales
Rest of the World		 2020
£
11,557,780
788,507
1,544,419
847,325
1,115,611
15,853,642		 2019
£
10,042,005
715,412
1,102,394
626,848
996,427
13,483,086

Page 26

BARNABAS FUND

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

4. Income from charitable activities

Unrestricted
funds
2020
£
Income from sale of books, Christmas cards and other sales
4,597
Unrestricted
funds
2019
£
Income from sale of books, Christmas cards and other sales
4,083		 Total
funds
2020
£
4,597
Total
funds
2019
£
4,083

5. Investment income

Unrestricted
funds
2020
£
Bank interest receivable
5,487
Unrestricted
funds
2019
£
Bank interest receivable
6,151		 Total
funds
2020
£
5,487
Total
funds
2019
£
6,151

Page 27

BARNABAS FUND

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

6. Other incoming resources

Other income
Unrestricted
funds
2019
£
Other income
71
7.
Expenditure on raising funds
Costs of raising voluntary income
Unrestricted
funds
2020
£
Publicity and appeals
201,633
Unrestricted
funds
2019
£
Publicity and appeals
195,334		 Total
funds
2020
£
-
Total
funds
2019
£
71
Total
funds
2020
£
201,633
Total
funds
2019
£
195,334

Page 28

BARNABAS FUND

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

8. Analysis of expenditure on charitable activities

Summary by fund type

Unrestricted
funds
2020
£
Barnabas Ministries
9,740,022
Unrestricted
funds
2019
£
Barnabas Ministries
8,964,830		 Restricted
funds
2020
£
6,610,142
Restricted
funds
2019
£
5,199,321		 Total
funds
2020
£
16,350,164
Total
funds
2019
£
14,164,151

9. Analysis of expenditure by activities

Activities undertaken directly
Activities undertaken directly		 Activities
undertaken
directly
2020
£
15,828,322
Activities
undertaken
directly
2019
£
13,601,493		 Support
costs
2020
£
521,842
Support
costs
2019
£
562,658		 Total
funds
2020
£
16,350,164
Total
funds
2019
£
14,164,151

Page 29

BARNABAS FUND

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

9. Analysis of expenditure by activities (continued)

Analysis of direct costs

Raising Awareness
Education and research
Costs of projects worldwide
Staff costs
Transfer of ministry grants
Raising Awareness
Education and research
Costs of projects worldwide
Staff costs
Transfer of ministry grants		 Barnabas
Ministries
2020
£
9,361
565,111
80,680
184,825
14,988,345
15,828,322
Barnabas
Ministries
2019
£
24,812
566,918
64,044
232,987
12,712,732
13,601,493		 Total
funds
2020
£
9,361
565,111
80,680
184,825
14,988,345
15,828,322
Total
funds
2019
£
24,812
566,918
64,044
232,987
12,712,732
13,601,493

Ministry grants were forwarded to Christian Relief International (a not-for-profit entity constituted in USA) who make grant payments to the various projects which assist the suffering church worldwide and are in accordance with the charity's objects. Full details of the grant-making policy, the criteria applied in selecting projects to support and a list of grants made are contained within the financial statements and trustees’ report of Christian Relief International.

Page 30

BARNABAS FUND

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

9. Analysis of expenditure by activities (continued)

Analysis of support costs

Staff costs
Travel
Communication and office costs
Information technology
Premises costs
Loss on currency exchange
Legal and professional fees
Governance Auditors' remuneration
Costs of board meetings and trustees' expenses
Staff costs
Travel
Communication and office costs
Information technology
Premises costs
Loss on currency exchange
Legal and professional fees
Governance Auditors' remuneration
Costs of board meetings and trustees' expenses		 Barnabas
Ministries
2020
£
249,535
2,695
85,616
62,379
99,446
289
7,954
11,682
2,246
521,842
Barnabas
Ministries
2019
£
263,949
3,294
112,177
52,510
98,951
1,915
10,206
11,616
8,040
562,658		 Total
funds
2020
£
249,535
2,695
85,616
62,379
99,446
289
7,954
11,682
2,246
521,842
Total
funds
2019
£
263,949
3,294
112,177
52,510
98,951
1,915
10,206
11,616
8,040
562,658

10. Auditors' remuneration

The auditors' remuneration amounts to an auditor fee of £11,682 ( 2019 - £11,616 ) , and payroll services of £6,337 (2019 - £4,584).

Page 31

BARNABAS FUND

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

11. Staff costs

Wages and salaries
Social security costs
Contribution to defined contribution pension schemes		 2020
£
382,220
37,719
14,422
434,361		 2019
£
442,765
40,273
13,898
496,936

A number of staff are seconded from Barnabas Fund to Christian Relief International and are responsible for the grant making operations for the Barnabas Family. Barnabas Fund recharged the costs of these staff to Christian Relief International in full. Accordingly the staff costs shown above only reflect the costs for the staff who continued to work primarily for Barnabas Fund. The same principle has been applied below in disclosing the number of staff engaged in the activities of Barnabas Fund.

The average number of persons employed by the Company during the year was as follows:

2020 2019
No. No.
13 14

No employee received remuneration amounting to more than £60,000 in either year.

Key management personnel remuneration (including social security costs and pension contributions) amounted to £106,801 and was in respect of 2 employees (2019 - £70,967 for 3 employees) in the year.

12. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2019 - £NIL).

During the year ended 31 August 2020, expenses totalling £2,207 were reimbursed or paid directly to 3 Trustees (2019 - £6,769 to 4 Trustees), for travel, food and other costs in connection with the work of the charity.

Page 32

BARNABAS FUND

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

13. Tangible fixed assets

Cost or valuation
At 1 September 2019 and 31 August 2020
Depreciation
At 1 September 2019
Charge for the year
At 31 August 2020
Net book value
At 31 August 2020
At 31 August 2019
14.
Debtors
Due within one year
Amounts due from related undertakings
Other debtors
Prepayments and accrued income
Tax recoverable
Legacies receivable		 Motor
vehicles
£
30,959
30,417
135
30,552
407
542		 Fixtures and
fittings
£
89,776
79,973
2,451
82,424
7,352
9,803		 Computer
equipment
£
22,258
14,695
4,109
18,804
3,454
7,563
2020
£
114
19,172
52,383
597,737
34,841
704,247		 Total
£
142,993
125,085
6,695
131,780
11,213
17,908
2019
£
1,978
-
32,129
203,788
301,685
539,580

Page 33

BARNABAS FUND

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

15. Creditors: Amounts falling due within one year

Trade creditors
Other taxation and social security
Amounts due to related undertakings
Other creditors
Accruals and deferred income		 2020
£
108,395
49,085
338,924
12,855
14,400
523,659		 2019
£
121,877
45,729
293,324
11,019
14,400
486,349

16. Financial instruments

2020 2019
£ £
Financial assets
Financial assets measured at fair value through income and expenditure 389,810 495,654

Financial assets measured at fair value through the Statement of Financial Activities are comprised of cash at bank and in hand.

Page 34

BARNABAS FUND

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

17. Statement of funds

Statement of funds - current year

Unrestricted funds
Designated funds
Fixed Asset fund
IT fund
Barnabas Books
General funds
General Funds
Total Unrestricted funds
Restricted funds
Avocacy & Research
Christian Worker Support
Church Buildings
Converts
Disaster Relief
Education and Schools
Evangelism
Food & Basic Needs
General Ministry
Literature & Resources
Medical
Radio, TV, Other Media
Small Businesses
Theological and Leadership Training
Victims of Violence and Injustice
Total of funds		 Balance at 1
September
2019
£
17,908
13,500
1,911
33,319
524,167
557,486
-
-
-
-
-
-
-
9,307
-
-
-
-
-
-
-
9,307
566,793		 Income
£
-
-
-
-
9,965,780
9,965,780
242,310
78,993
17,248
20,387
1,127,225
385,662
2,439
1,396,093
2,036,914
96,012
77,312
126
234,020
39,686
846,408
6,600,835
16,566,615		 Expenditure
£
(6,695)
-
-
(6,695)
(9,934,960)
(9,941,655)
(242,310)
(78,993)
(17,248)
(20,387)
(1,127,225)
(385,662)
(2,439)
(1,405,400)
(2,036,914)
(96,012)
(77,312)
(126)
(234,020)
(39,686)
(846,408)
(6,610,142)
(16,551,797)		 Balance at
31 August
2020
£
11,213
13,500
1,911
26,624
554,987
581,611
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
581,611

Page 35

BARNABAS FUND

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

17. Statement of funds (continued)

Statement of funds (continued)
Statement of funds - prior year
Balance at
1 September
2018
£
Unrestricted funds
Designated funds
Fixed Asset fund
19,566
IT fund
13,500
Barnabas Books
1,911
34,977
General funds
General Funds - all funds
712,805
Total Unrestricted funds
747,782
Restricted funds
Avocacy & Research
-
Christian Worker Support
-
Church Buildings
-
Converts
-
Disaster Relief
-
Education and Schools
-
Evangelism
-
Food & Basic Needs
-
General Ministry
-
Literature & Resources
-
Medical
-
Radio, TV, Other Media
-
Small Businesses
-
Theological and Leadership
Training
-
Victims of Violence and
Injustice
-
-		 Income
£
-
-
-
-
8,969,868
8,969,868
4,507
61,354
8,749
46,272
1,602,432
502,766
5,607
1,597,264
260,562
47,243
27,646
120
131,082
16,047
896,977
5,208,628		 Expenditure
£
(7,899)
-
-
(7,899)
(9,152,265)
(9,160,164)
(4,507)
(61,354)
(8,749)
(46,272)
(1,602,432)
(502,766)
(5,607)
(1,587,957)
(260,562)
(47,243)
(27,646)
(120)
(131,082)
(16,047)
(896,977)
(5,199,321)		 Transfers
in/out
£
6,241
-
-
6,241
(6,241)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 Balance at
31 August
2019
£
17,908
13,500
1,911
Unrestricted funds
Designated funds
Fixed Asset fund
IT fund
Barnabas Books
General funds
General Funds - all funds
Total Unrestricted funds
Restricted funds
Avocacy & Research
Christian Worker Support
Church Buildings
Converts
Disaster Relief
Education and Schools
Evangelism
Food & Basic Needs
General Ministry
Literature & Resources
Medical
Radio, TV, Other Media
Small Businesses
Theological and Leadership
Training
Victims of Violence and
Injustice
33,319
524,167
557,486
-
-
-
-
-
-
-
9,307
-
-
-
-
-
-
-
9,307

Page 36

BARNABAS FUND

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

17. Statement of funds (continued)

Statement of funds - prior year (continued)

Total of funds

Balance at
1 September
2018
£
747,782		 Income
£
14,178,496		 Expenditure
£
(14,359,485)		 Transfers
in/out
£
-		 Balance at
31 August
2019
£
566,793

Restricted Funds are funds where the donor has specified to the charity the purpose for which they would like the charity to use their gift. All monies received from donations to restricted funds are ultimately forwarded to the grant giving bodies which support the Global Barnabas Ministry with details of how monies collected for restricted purposes are to be allocated to the various projects supported by the Barnabas Family. Details of the specific restricted projects which the Barnabas Family have sought funds for, and from which grant payments are made, are disclosed in the financial statements for the grantmaking charities.

18. Summary of funds

Summary of funds - current year

Designated funds
General funds
Restricted funds		 Balance at
1 September
2018
£
34,977
712,805
-
747,782		 Balance at 1
September
2019
£
33,319
524,167
9,307
566,793
Income
£
-
8,969,868
5,208,628
14,178,496		 Income
£
-
9,965,780
6,600,835
16,566,615
Expenditure
£
(7,899)
(9,152,265)
(5,199,321)
(14,359,485)		 Expenditure
£
(6,695)
(9,934,960)
(6,610,142)
(16,551,797)
Transfers
in/out
£
6,241
(6,241)
-
-		 Balance at
31 August
2020
£
26,624
554,987
-
581,611
Balance at
31 August
2019
£
33,319
524,167
9,307
Summary of funds - prior year
Designated funds
General funds
Restricted funds
566,793

Page 37

BARNABAS FUND

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

19. Analysis of net assets between funds

Analysis of net assets between funds - current period

Unrestricted
funds
2020
Restricted
funds
2020
£
£
Tangible fixed assets
11,213
-
Current assets
1,094,057
-
Creditors due within one year
(523,659)
-
Total
581,611
-
Analysis of net assets between funds - prior period
Unrestricted
funds
2019
Restricted
funds
2019
£
£
Tangible fixed assets
17,908
-
Current assets
1,025,927
9,307
Creditors due within one year
(486,349)
-
Total
557,486
9,307
20.
Reconciliation of net movement in funds to net cash flow from operating activities
2020
£
Net income/expenditure for the period (as per Statement of Financial
Activities)
14,818
Adjustments for:
Depreciation charges
6,695
Dividends, interests and rents from investments
(5,487)
Decrease/(increase) in debtors
(164,667)
Increase/(decrease) in creditors
37,310
Net cash used in operating activities
(111,331)		 Total
funds
2020
£
11,213
1,094,057
(523,659)
581,611
Total
funds
2019
£
17,908
1,035,234
(486,349)
566,793
2019
£
(180,989)
7,899
(6,151)
92,830
(52,882)
(139,293)

Page 38

BARNABAS FUND

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

21. Analysis of cash and cash equivalents

Cash in hand
Notice deposits (less than 3 months)
Total cash and cash equivalents		 2020
£
388,469
1,341
389,810		 2019
£
491,766
3,888
495,654

22. Analysis of changes in net debt

Cash at bank and in hand At 1
September
2019
£
495,654
495,654		 Cash flows
£
(111,331)
(111,331)		 Other non-
cash
changes
At 31
August 2020
£
£
5,487
389,810
5,487
389,810		 Other non-
cash
changes
At 31
August 2020
£
£
5,487
389,810
5,487
389,810
389,810

23. Pension commitments

The charity operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the charity in an independently administered fund. The pension cost charge represents contributions payable by the charity to the fund and amounted to £14,422 (2019 - £13,898). Contributions totalling £11,923 (2019 - £10,975), of which £2,441 (2019 - £2,267) related to the charity and £9,482 (2019 - £7,708) related to staff seconded to CRI, were payable to the fund at the balance sheet date and are included in creditors.

24. Operating lease commitments

At 31 August 2020 the charity had no commitments under non-cancellable operating leases. The lease agreement on the existing property expired on 31 March 2019. Under the Landlord and Tenant Act 1954 ("Act"), the terms of this lease continues until either the landlord or the tenant serves notice in accordance with the Act. Therefore whilst there is no financial commitment to disclose within the financial statements, unless either party serves notice on the other, rent will continue to be charged at £6,667 per month.

Page 39

BARNABAS FUND

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

25. Related party transactions

The charity is part of a Global Barnabas Ministry that dates back to 1993, established to serve and support the persecuted Church, both in the UK and internationally. The various organisations who work alongside each other within this ministry share similar objects to Barnabas Fund, and some of the trustees of Barnabas Fund serve on the boards of these entities too. Accordingly transactions undertaken by Barnabas Fund with these entities and with the trustees/directors of these entities are considered related party transactions and are disclosed in this note.

Servants Fellowship International (SFI)

This is a charitable company registered in England and Wales and limited by guarantee (company registration number 1437414, charity registration number 280859). During the year under review BFUK made payments totalling £80,000 (2019 - £80,000) for rent to SFI.

TBF Trust

This is a charity registered in England and Wales (charity registration number 271602).

Grants totalling £4,567 (2019 - £397,197) were received in the year from TBF Trust.

Isaac Publishing LLC

This is an entity incorporated in the USA.

At the balance sheet date included within creditors is an amount of £13,484 (2019 - £10,252) owed to Isaac Publishing LLC.

Isaac Publishing sells books on behalf of Barnabas Fund trading as Barnabas Books. At the balance sheet date included within debtors is an amount of £144 (2019 - £3,550) for postal recharges due to the charity from Isaac Publishing LLC.

Other related party transactions

Total donations receivable in the year from trustees of BFUK totalled £6,523 (2019 - £4,743).

Christian Relief International (CRI)

BFUK entered into a memorandum of understanding, agreed and signed in March 2017 and updated in December 2019, with Christian Relief International (CRI), an organisation incorporated in the USA and which has taken on the role for the entities within Barnabas Fund International of distributing project grant payments. As BFUK and CRI share some common directors it is considered that these entities should be disclosed as related, although they are governed independently.

During the year under review CRI received donations of £14,979,038 (2019 - £12,712,732) from BFUK and contributed operating grants of £702,889 (2019 - £685,105), payroll recharges of £1,707,246 (2019 - £1,469,369) re seconded staff and other payments and recharges totalling £8,268 (2019 - £27,267). At the balance sheet date included within creditors is an amount of £316,053 (2019 - £282,981) owed to CRI.

K.A.F KITI Almond Foundation

K.A.F KITI Almond Foundation, is an organisation incorporated in Cyprus to promote and further the principles of international peace, friendship and understanding across all nations. The entity shares some common directors and trustees with BFUK.

During the year under review BFUK received donations totalling £1,178 (2019 - £200,000).

Page 40

BARNABAS FUND

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

26. Post balance sheet events

  1. The charity was notified in September 2020 that it was to be the beneficiary of an estate for which it would ultimately receive a pecuniary legacy of £200,000 and a one half share of the residuary estate. However, probate has not been granted yet. The legacy has been treated as a contingent asset and will be recognised as income in 2020/21 once probate has been granted and the estate accounts have been finalised.

  2. Since March 2020, the spread of COVID-19 has severely impacted many local economies around the globe. Measures taken to contain the spread of the virus, including quarantines, social distancing, and closures of nonessential services have triggered significant disruptions to businesses, resulting in an economic slowdown.

The duration and impact of the COVID-19 pandemic, as well as the effectiveness of government and central bank responses, remains unclear at this time. It is not possible to reliably estimate the duration or severity of the consequences, as well as their impact on the financial position and results of the charity for future periods.

Page 41