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2022-08-31-accounts

DocuSign Envelope ID: 8DB77EA2-1CFF-488D-B917-FBD4D0F1422E

Registered number: 04029536 Charity number: 1092935

BARNABAS AID LIMITED

(A company limited by guarantee)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2022

DocuSign Envelope ID: 8DB77EA2-1CFF-488D-B917-FBD4D0F1422E

BARNABAS AID LIMITED

(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 - 11
Trustees' responsibilities statement 12
Independent auditors' report on the financial statements 13 - 16
Statement of financial activities 17
Income and expenditure account 18
Balance sheet 19
Statement of cash flows 20
Notes to the financial statements 21 - 42

DocuSign Envelope ID: 8DB77EA2-1CFF-488D-B917-FBD4D0F1422E

BARNABAS AID LIMITED

(A company limited by guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS DIRECTORS AND TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2022

Directors and Trustees Marquess of Reading, Chairman
Rev I S McNaughton, Vice Chairman
Rev Dr V K Samuel, Vice Chairman
Mr A Carey
Miss C J C Kerslake (resigned 10 July 2023)
Rev P Mursalin (resigned 18 October 2021)
Dr D R J P Philips (appointed 14 February 2022)
Mrs R A Sookhdeo (resigned 10 July 2023)
Mr H W Storm (appointed 14 February 2022, resigned 10 January 2023)
Rev A B Hauser (resigned 26 January 2022)
Mr N F Frost (appointed 1 May 2023)
Mr S Hook (appointed 1 May 2023)
Company registered
number
04029536
Charity registered
number
1092935
Registered office
Unit 23 Kembrey Park
Ash Industrial Estate
Swindon
England
SN2 8UY
Company secretary
Noel Frost
Senior Management
Team
Phil Davison, Head of Operations UK
David Dean, Chief Partnership Officer

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DocuSign Envelope ID: 8DB77EA2-1CFF-488D-B917-FBD4D0F1422E

BARNABAS AID LIMITED (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 2022

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 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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DocuSign Envelope ID: 8DB77EA2-1CFF-488D-B917-FBD4D0F1422E

BARNABAS AID LIMITED (A company limited by guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2022

The Trustees of Barnabas Aid (formerly 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 2022. 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.

OBJECTIVES AND ACTIVITIES

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.

a. 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; iii) providing technical advice to governments and others on Human Rights matters; iv) eliminating infringement of Human Rights;

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

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

  8. The advancement of citizenship or community development;

  9. 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.

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DocuSign Envelope ID: 8DB77EA2-1CFF-488D-B917-FBD4D0F1422E

BARNABAS AID LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

OBJECTIVES AND ACTIVITIES (continued)

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.

The Charity was established to serve and support the persecuted Church worldwide. The Charity is an integral part of the global ministry of Barnabas Aid. The global work of Barnabas Aid is facilitated and coordinated from its headquarters, Nexcus International. Registered in the USA, it also has an operational office in the United Kingdom. The 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 Aid 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 entered into a Memorandum of Agreement (MoA) with the Head Office, agreed and signed in January 2022 (updating a previous version 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 MoA. 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 Aid 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 Aid.

  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.

ACHIEVEMENTS AND PERFORMANCE

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

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DocuSign Envelope ID: 8DB77EA2-1CFF-488D-B917-FBD4D0F1422E

BARNABAS AID LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

ACHIEVEMENTS AND PERFORMANCE (continued)

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.

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.

A major expansion of the work of the charity began in the summer of 2021, with the launch of food.gives, which has now become .gives. In launching as an international food bank, the charity has added a delivery arm to its well-established donations arm. While a much-needed response to geo-political factors such as food insecurity, economic sanctions and national legislation, this growth will also stand the charity in good stead to deliver donations in kind such as food, clothing and blankets, as was proven through our Ukraine appeal in early 2022. In addition to donations of staple foods sent to various countries, we are also delivering medical equipment such as personal protective equipment.

The charity secured a warehouse in Swindon where donations of food and other items are received, sorted and dispatched via land and sea to suffering and persecuted Christians. Furthermore, in April 2022 the operations of the charity moved from Coventry to Swindon, facilitating the operation of both arms of the charity from the same location.

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.

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 Aid International, who in turn disbursed the funds to carefully chosen project partners.

  2. In the context of ever-changing geo-political/religious landscapes around the world, Barnabas Aid’s supporters have enabled the Charity’s projects to continue helping the most vulnerable of Christians. These projects fall within 10 broad categories, and the impact of the Charity – as a member of the Global Barnabas Ministry – within each of these categories continues to see more needs being met year-on-year.

  3. Education – The bimonthly magazine, “Barnabas Aid”, including a special educational pull-out supplement, is sent to 152,310 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 85 countries. The magazine is also available online, and can be accessed here

https://barnabasfund.org/en/news/receive-news-updates/barnabas-aid-magazine.

This year saw a continuation of our annual Suffering Church Action and Awareness Week (SCAAW), which

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DocuSign Envelope ID: 8DB77EA2-1CFF-488D-B917-FBD4D0F1422E

BARNABAS AID LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

ACHIEVEMENTS AND PERFORMANCE (continued)

incorporated Suffering Church Sunday and the Barnabas Fund Day of Prayer. The SCAAW theme for this year was Understand the Times. 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 33,304 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 22,390 to 34,218 and Twitter “Followers” have increased from 10,249 to 10,476..

The Charity, in partnership with Barnabas Aid International, continues to provide articles for various publications and periodicals and also gives radio and TV interviews. The charity’s network of voluntary Church and Area Partners make a significant contribution towards educating local Christians and Churches about the Persecuted Church.

  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 31,326 supporters with a further 1092 hard copies sent out to 656 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 relevant to achieve objectives

The Trustees remain mindful of the economic impact of COVID 19 and related lockdowns, in addition to other international factors such as the war in Ukraine, that has seen a significant rise to the cost of living in the UK and abroad. The fact that donations remained steady against a backdrop of decreased year on year giving in the charity sector in recent times is testament to the confidence our supporters have in the Charity. The Trustees remain very grateful to Barnabas Aid supporters for their generous donations throughout the year, especially during continued change and worldwide turmoil.

The Trustees are pleased to acknowledge the good reputation of Barnabas Aid a reputation of transparency and scholarly accuracy, standing for truth, justice, righteousness and compassion/love. This reputation continues to be a critical asset for the future.

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DocuSign Envelope ID: 8DB77EA2-1CFF-488D-B917-FBD4D0F1422E

BARNABAS AID LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

BARNABAS FUND’S PEOPLE

Trustees

Barnabas Aid 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 Aid’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 Aid currently employs 22 staff. All staff joining Barnabas Aid 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. No member of staff received remuneration above £60,000.

Volunteers

In addition to paid staff, Barnabas Aid 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. Churches now have the option of meetings being held in person and/or remotely.

Supporters and Donors

Without our donors none of the valuable work Barnabas Aid does would be possible and the Trustees are very grateful for all their support.

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 Aid.

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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DocuSign Envelope ID: 8DB77EA2-1CFF-488D-B917-FBD4D0F1422E

BARNABAS AID LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

FINANCIAL REVIEW

Results

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 2021/22 financial year has exceeded our expectations. The income received by Barnabas Aid for the year was £21,613,949 including Gift Aid (2021 - £18,251,440), and we are very grateful to all of our supporters for their generous giving.

Barnabas Aid 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 £19,696,288 (2021 - £17,901,019). These figures do not include costs of governance which were £15,066 during the year (2021 - £13,242).

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 overall result for the year ended 31 August 2022 was net income (surplus) of £1,626,162 (2021 - £145,980 surplus). This surplus will largely be paid out in ministry grants in the accounting year 2022/23.

Capital expenditure for the year was £98,509.

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

Reserves policy

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 2022 Barnabas Aid transferred virtually all balances on restricted funds to Barnabas Aid International in accordance with the MoA signed in January 2022. Barnabas Aid International undertakes to use the funds in accordance with the desires of the donors and in line with the MoA. 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 Aid International has provided written assurance that all expenditure is in accordance with the wishes of the donor. The BA UK Trustees remain informed, and have access to all project grant information, and are satisfied with the end use of all donations.

Free Reserve s

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.

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DocuSign Envelope ID: 8DB77EA2-1CFF-488D-B917-FBD4D0F1422E

BARNABAS AID LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

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.

At 31 August 2022 the General Reserve was £898,336 (2021 - £676,087). Running costs include all staff salaries and other costs associated with administering the charity and its funds. The Trustees will continue to look to manage 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 (2021 – 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 (2021 – the same) is a sum set to cover funds due to Isaac Publishing for the distribution of books.

Financial risk management objectives and policies

Barnabas Aid’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 Aid 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 Structure, Governance and Management section of this report.

AND FINALLY…

Barnabas Aid 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.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Constitution

Barnabas Aid Limited - 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 (International) 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 Aid is no longer governed by the Barnabas Covenant. The Charity has entered into a MoA – (most recently agreed and signed in January 2022) – similar to the Barnabas Covenant, with Nexcus International (formerly Christian Relief International). Barnabas Aid is an integral partner of Nexcus International and the Global Barnabas Ministry as it serves and supports the persecuted Church.

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DocuSign Envelope ID: 8DB77EA2-1CFF-488D-B917-FBD4D0F1422E

BARNABAS AID LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)

Methods of appointment or election of trustees

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.

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.

Policies adopted for the induction and training of trustees

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.

Matters reserved to the Trustees

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

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DocuSign Envelope ID: 8DB77EA2-1CFF-488D-B917-FBD4D0F1422E

BARNABAS AID LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)

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 BA UK Board Risk Assessment) is carried out by the Chief Executive Officer (International) 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.

FUTURE PLANS & DEVELOPMENTS

Socio-religio-political factors 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 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 Trustees have been encouraged by a positive start to the new financial year, with supporters responding well to appeals to assist Christians, for example the invasion of Ukraine.

Disclosure of information to auditors

Each of the persons who are trustees at the time when this trustees' report is approved has confirmed that:

Auditors

The auditors, Griffin Stone Moscrop & Co, have indicated their willingness to continue in office. The designated trustees will propose a motion reappointing the auditors at a meeting of the trustees.

Approved by order of the members of the board of trustees and signed on their behalf by:

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

Mr N F Frost

(Trustee & Treasurer) Date: 18/8/2023

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DocuSign Envelope ID: 8DB77EA2-1CFF-488D-B917-FBD4D0F1422E

BARNABAS AID LIMITED

(A company limited by guarantee)

STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE YEAR ENDED 31 AUGUST 2022

The trustees (who are also the directors of the company for the purposes of company law) are responsible for preparing the trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial period. Under company law, the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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DocuSign Envelope ID: 8DB77EA2-1CFF-488D-B917-FBD4D0F1422E

BARNABAS AID LIMITED

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BARNABAS AID LIMITED

Opinion

We have audited the financial statements of Barnabas Aid Limited (the 'charitable company') for the year ended 31 August 2022 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

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

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

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

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DocuSign Envelope ID: 8DB77EA2-1CFF-488D-B917-FBD4D0F1422E

BARNABAS AID LIMITED

(A company limited by guarantee)

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditors' report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

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:

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.

Page 14

DocuSign Envelope ID: 8DB77EA2-1CFF-488D-B917-FBD4D0F1422E

BARNABAS AID LIMITED

(A company limited by guarantee)

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

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.

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

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 15

DocuSign Envelope ID: 8DB77EA2-1CFF-488D-B917-FBD4D0F1422E

BARNABAS AID LIMITED

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BARNABAS AID LIMITED (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

18/8/2023 Date:

Page 16

DocuSign Envelope ID: 8DB77EA2-1CFF-488D-B917-FBD4D0F1422E

BARNABAS AID LIMITED

(A company limited by guarantee)

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2022

Note
Income from:
Donations and legacies
4
Charitable activities
5
Investments
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
2022
£
13,996,874
8,948
9,290
14,015,112
209,247
13,515,781
13,725,028
290,084
720,749
290,084
1,010,833		 Restricted
funds
2022
£
7,598,837
-
-
7,598,837
67,186
6,195,573
6,262,759
1,336,078
6,842
1,336,078
1,342,920		 Total
funds
2022
£
21,595,711
8,948
9,290
21,613,949
276,433
19,711,354
19,987,787
1,626,162
727,591
1,626,162
2,353,753		 Total
funds
2021
£
18,238,983
11,814
643
18,251,440
191,199
17,914,261
18,105,460
145,980
581,611
145,980
727,591

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

The notes on pages 21 to 42 form part of these financial statements.

Page 17

DocuSign Envelope ID: 8DB77EA2-1CFF-488D-B917-FBD4D0F1422E

BARNABAS AID LIMITED

(A company limited by guarantee)

SUMMARY INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 AUGUST 2022

Note
Gross income in the reporting period
Less: Total expenditure
Net income for the reporting period		 Total funds
2022
£
21,613,949
(19,987,787)
1,626,162		 Total funds
2021
£
18,251,440
(18,105,460)
145,980

The notes on pages 21 to 42 form part of these financial statements.

Page 18

DocuSign Envelope ID: 8DB77EA2-1CFF-488D-B917-FBD4D0F1422E

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

BALANCE SHEET AS AT 31 AUGUST 2022

Note
Fixed assets
Tangible assets
13
Current assets
Stocks
14
Debtors
15
Cash at bank and in hand
Creditors: amounts falling due within one
year
16
Net current assets
Total assets less current liabilities
Total net assets
Charity funds
Restricted funds
18
Unrestricted funds
18
Total funds		 18,294
1,359,196
6,929,973
8,307,463
(6,050,796)		 2022
£
97,086
97,086
2,256,667
2,353,753
2,353,753
1,342,920
1,010,833
2,353,753		 -
495,289
878,942
1,374,231
(675,891)		 2021
£
29,251
29,251
698,340
727,591
727,591
6,842
720,749
727,591

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:

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

Mr N F Frost

(Trustee and Treasurer) Date: 18/8/2023

The notes on pages 21 to 42 form part of these financial statements.

Page 19

DocuSign Envelope ID: 8DB77EA2-1CFF-488D-B917-FBD4D0F1422E

BARNABAS AID LIMITED (A company limited by guarantee)

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2022

Cash flows from operating activities
Net cash used in operating activities
Cash flows from investing activities
Dividends, interests and rents from investments
Purchase of tangible fixed assets
Net cash used in 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 21 to 42 form part of these financial statements		 2022
£
6,140,250
9,290
(98,509)
(89,219)
-
6,051,031
878,942
6,929,973		 2021
£
513,070
643
(24,581)
(23,938)
-
489,132
389,810
878,942

Page 20

DocuSign Envelope ID: 8DB77EA2-1CFF-488D-B917-FBD4D0F1422E

BARNABAS AID LIMITED (A company limited by guarantee)

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

1. General information

Barnabas Aid 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 Aid Limited 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.

The recognition of income from legacies is dependent on establishing entitlement, the probability of receipt and the ability to estimate with sufficient accuracy the amount receivable. Evidence of entitlement to a legacy exists when the company has sufficient evidence that a gift has been left to them (through knowledge of the existence of a valid will and the death of the benefactor) and the executor is satisfied that the property in question will not be required to satisfy claims in the estate. Receipt of a legacy must be recognised when it is probable that it will be received and the fair value of the amount receivable, which will generally be the expected cash amount to be distributed to the company, can be reliably measured.

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

Page 21

DocuSign Envelope ID: 8DB77EA2-1CFF-488D-B917-FBD4D0F1422E

BARNABAS AID LIMITED

(A company limited by guarantee)

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

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 Aid, 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 principally represents the cash grants paid during the year to Nexcus International (aka Barnabas Aid International). Nexcus 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 22

DocuSign Envelope ID: 8DB77EA2-1CFF-488D-B917-FBD4D0F1422E

BARNABAS AID LIMITED (A company limited by guarantee)

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

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:

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

2.9 Stocks

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.

2.10 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.

2.11 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.

2.12 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.

Page 23

DocuSign Envelope ID: 8DB77EA2-1CFF-488D-B917-FBD4D0F1422E

BARNABAS AID LIMITED (A company limited by guarantee)

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

2. Accounting policies (continued)

2.13 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.

2.14 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.

2.15 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.

2.16 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.

2.17 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 24

DocuSign Envelope ID: 8DB77EA2-1CFF-488D-B917-FBD4D0F1422E

BARNABAS AID LIMITED (A company limited by guarantee)

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

3. Judgements in applying accounting policies and key sources of estimation uncertainty

In the application of the company's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources.

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

Critical accounting estimates and assumptions:

Page 25

DocuSign Envelope ID: 8DB77EA2-1CFF-488D-B917-FBD4D0F1422E

BARNABAS AID LIMITED (A company limited by guarantee)

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

4. Income from donations and legacies

Unrestricted
funds
2022
£
Donations
11,586,376
Legacies
1,584,053
Operating grants
816,094
Grants from TBF Trust
8,470
Government grants
1,881
13,996,874
Unrestricted
funds
2021
£
Donations
9,814,845
Legacies
1,072,151
Operating grants
727,395
Grants from TBF Trust
5,726
Government grants
41,436
11,661,553		 Restricted
funds
2022
£
7,528,065
21,054
49,718
-
-
7,598,837
Restricted
funds
2021
£
6,577,430
-
-
-
-
6,577,430		 Total
funds
2022
£
19,114,441
1,605,107
865,812
8,470
1,881
21,595,711
Total
funds
2021
£
16,392,275
1,072,151
727,395
5,726
41,436
18,238,983

.

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

England
Northern Ireland
Scotland
Wales
Rest of the World		 2022
£
13,581,098
1,147,244
1,906,622
1,193,304
2,899,767
20,728,035		 2021
£
12,675,300
1,038,759
1,606,953
882,649
1,266,491
17,470,152

Page 26

DocuSign Envelope ID: 8DB77EA2-1CFF-488D-B917-FBD4D0F1422E

BARNABAS AID LIMITED

(A company limited by guarantee)

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

5. Income from charitable activities

Unrestricted
funds
2022
£
Income from sale of books, Christmas cards and other sales
8,948
Unrestricted
funds
2021
£
Income from sale of books, Christmas cards and other sales
11,814		 Total
funds
2022
£
8,948
Total
funds
2021
£
11,814

6. Investment income

Unrestricted
funds
2022
£
Bank interest receivable
9,290
Unrestricted
funds
2021
£
Bank interest receivable
643		 Total
funds
2022
£
9,290
Total
funds
2021
£
643

Page 27

DocuSign Envelope ID: 8DB77EA2-1CFF-488D-B917-FBD4D0F1422E

BARNABAS AID LIMITED

(A company limited by guarantee)

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

7. Expenditure on raising funds

Costs of raising voluntary income

Unrestricted
funds
2022
£
Publicity and appeals
209,247
Publicity and appeals		 Restricted
funds
2022
£
67,186
Unrestricted
funds
2021
£
191,199		 Total
funds
2022
£
276,433
Total
funds
2021
£
191,199

8. Analysis of expenditure on charitable activities Summary by fund type

Unrestricted
funds
2022
£
Barnabas Ministries
13,515,781
Unrestricted
funds
2021
£
Barnabas Ministries
11,343,673		 Restricted
funds
2022
£
6,195,573
Restricted
funds
2021
£
6,570,588		 Total
2022
£
19,711,354
Total
2021
£
17,914,261

Page 28

DocuSign Envelope ID: 8DB77EA2-1CFF-488D-B917-FBD4D0F1422E

BARNABAS AID LIMITED

(A company limited by guarantee)

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

9. Analysis of expenditure by activities

Barnabas Ministries
Barnabas Ministries
Analysis of direct costs
Staff costs
Raising Awareness
Education and research
Costs of projects worldwide
Transfer of ministry grants
Warehouse processing (non staff costs)
Distribution of food and other essentials		 Activities
undertaken
directly
2022
£
18,850,643
Activities
undertaken
directly
2021
£
17,330,049		 Support
costs
2022
£
860,711
Support
costs
2021
£
584,212
Total
funds
2022
£
451,577
31,200
723,441
84,492
16,878,157
151,189
530,587
18,850,643		 Total
funds
2022
£
19,711,354
Total
funds
2021
£
17,914,261
Total
funds
2021
£
194,005
21,522
593,587
92,741
16,428,194
-
-
17,330,049

Ministry grants were principally forwarded to Nexcus Internaional (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 of Nexcus International.

Page 29

DocuSign Envelope ID: 8DB77EA2-1CFF-488D-B917-FBD4D0F1422E

BARNABAS AID LIMITED

(A company limited by guarantee)

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

9. Analysis of expenditure by activities (continued)

Analysis of support costs

Staff costs
Travel
Communication and office costs
Information technology
Premises costs
(Profit)/loss on currency exchange
Legal and professional fees
Governance Auditors' remuneration
Cost of board meetings and trustees' expenses		 Total
funds
2022
£
228,941
18,465
141,701
90,667
368,486
(21,141)
18,526
13,523
1,543
860,711		 Total
funds
2021
£
278,372
967
100,526
70,442
104,741
(167)
16,089
13,080
162
584,212

10. Auditors' remuneration

The auditors' remuneration amounts to a fee for the preparation and audit of the financial statements of £13,523 ( 2021 - £13,080 ) , and payroll and other services of £8,791 (2021 - £8,791).

11. Staff costs

Wages and salaries
Social security costs
Contribution to defined contribution pension schemes		 2022
£
603,113
57,581
19,824
680,518		 2021
£
422,292
35,883
14,202
472,377

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

Page 30

DocuSign Envelope ID: 8DB77EA2-1CFF-488D-B917-FBD4D0F1422E

BARNABAS AID LIMITED (A company limited by guarantee)

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

11. Staff costs (continued)

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

2022 2021
No. No.
19 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 £97,467 and was in respect of 2 employees (2021 - £108,190 for 2 employees) in the year.

12. Trustees' remuneration and expenses

During the year, no trustees received any remuneration or other benefits (2021 - £NIL).

During the year ended 31 August 2022, expenses totalling £334 were reimbursed or paid directly to 1 trustee (2021 - £162 to 1 trustee), for travel, food and other costs in connection with the work of the charity.

Page 31

DocuSign Envelope ID: 8DB77EA2-1CFF-488D-B917-FBD4D0F1422E

BARNABAS AID LIMITED

(A company limited by guarantee)

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

13. Tangible fixed assets

Cost or valuation
At 1 September 2021
Additions
Disposals
At 31 August 2022
Depreciation
At 1 September 2021
Charge for the year
On disposals
At 31 August 2022
Net book value
At 31 August 2022
At 31 August 2021		 Plant and
machinery
£
-
20,518
(6,259)
14,259
-
3,492
(522)
2,970
11,289
-		 Motor
vehicles
£
30,959
35,395
-
66,354
30,654
771
-
31,425
34,929
305		 Fixtures and
fittings
£
90,663
-
(14,387)
76,276
72,056
3,551
(3,390)
72,217
4,059
18,607		 Computer
equipment
£
32,452
42,596
-
75,048
22,113
6,126
-
28,239
46,809
10,339		 Total
£
154,074
98,509
(20,646)
231,937
124,823
13,940
(3,912)
134,851
97,086
29,251

14. Stocks

2022 2021
£ £
Stocks of food and other essential items for future distribution 18,294 -

Page 32

DocuSign Envelope ID: 8DB77EA2-1CFF-488D-B917-FBD4D0F1422E

BARNABAS AID LIMITED

(A company limited by guarantee)

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

15. Debtors

Due within one year
Trade debtors
Amounts due from related undertakings
Other debtors
Prepayments and accrued income
Tax recoverable
Legacies receivable		 2022
£
13,693
5,698
23,651
24,300
996,169
295,685
1,359,196		 2021
£
5,528
7,820
6,843
45,228
278,290
151,580
495,289

16. 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		 2022
£
149,623
47,470
5,803,778
13,984
35,941
6,050,796		 2021
£
107,266
43,730
496,134
14,361
14,400
675,891

17. Financial instruments

2022 2021
£ £
Financial assets
Financial assets measured at fair value through income and expenditure 6,929,973 878,942

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

Page 33

DocuSign Envelope ID: 8DB77EA2-1CFF-488D-B917-FBD4D0F1422E

BARNABAS AID LIMITED (A company limited by guarantee)

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

18. 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
Food.gives
Medical.gives
Ukraine relief		 Balance at 1
September
2021
£
29,251
13,500
1,911
44,662
676,087
720,749
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
6,842
-
-		 Income
£
-
-
-
-
14,015,112
14,015,112
73,541
75,323
8,704
1,569,445
575,061
345,952
1,413
1,859,745
450,178
35,545
16,684
94
107,569
180,449
544,899
229,417
53,176
1,471,642		 Expenditure
£
(26,417)
-
-
(26,417)
(13,698,611)
(13,725,028)
(73,541)
(75,323)
(8,704)
(1,569,445)
(575,061)
(345,952)
(1,413)
(1,859,745)
(450,178)
(35,545)
(16,684)
(94)
(107,569)
(180,449)
(544,899)
(216,926)
-
(201,231)		 Transfers
in/out
£
94,252
-
-
94,252
(94,252)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 Balance at
31 August
2022
£
97,086
13,500
1,911
112,497
898,336
1,010,833
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
19,333
53,176
1,270,411

Page 34

DocuSign Envelope ID: 8DB77EA2-1CFF-488D-B917-FBD4D0F1422E

BARNABAS AID LIMITED (A company limited by guarantee)

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

18.
Statement of funds (continued)
Statement of funds - current year (continued)
Balance at 1
September
2021
£
Income
£
6,842
7,598,837
Total of funds
727,591
21,613,949		 Expenditure
£
(6,262,759)
(19,987,787)		 Transfers
in/out
£
-
-		 Balance at
31 August
2022
£
1,342,920
2,353,753

Page 35

DocuSign Envelope ID: 8DB77EA2-1CFF-488D-B917-FBD4D0F1422E

BARNABAS AID LIMITED (A company limited by guarantee)

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

18. Statement of funds (continued)

Statement of funds - prior 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		 Balance at
1 September
2020
£
11,213
13,500
1,911
26,624
554,987
581,611
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 Income
£
-
-
-
-
11,674,010
11,674,010
174,462
87,974
652
296,028
1,799,326
445,833
1,369
1,724,463
657,927
52,069
23,584
3,831
188,615
16,695
1,104,602		 Expenditure
£
(6,543)
-
-
(6,543)
(11,528,329)
(11,534,872)
(174,462)
(87,974)
(652)
(296,028)
(1,799,326)
(445,833)
(1,369)
(1,717,621)
(657,927)
(52,069)
(23,584)
(3,831)
(188,615)
(16,695)
(1,104,602)		 Transfers
in/out
£
24,581
-
-
24,581
(24,581)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 Balance at
31 August
2021
£
29,251
13,500
1,911
44,662
676,087
720,749
-
-
-
-
-
-
-
6,842
-
-
-
-
-
-
-

Page 36

DocuSign Envelope ID: 8DB77EA2-1CFF-488D-B917-FBD4D0F1422E

BARNABAS AID LIMITED

(A company limited by guarantee)

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

18. Statement of funds (continued)

Statement of funds - prior year (continued)

Total of funds Balance at
1 September
2020
£
-
581,611		 Income
£
6,577,430
18,251,440		 Expenditure
£
(6,570,588)
(18,105,460)		 Transfers
in/out
£
-
-		 Balance at
31 August
2021
£
6,842
727,591

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.

19. Summary of funds

Summary of funds - current year


Designated funds
General funds
Restricted funds		 Balance at 1
September
2021
£
44,662
676,087
6,842
727,591		 Income
£
-
14,015,112
7,598,837
21,613,949		 Expenditure
£
(26,417)
(13,698,611)
(6,262,759)
(19,987,787)		 Transfers
in/out
£
94,252
(94,252)
-
-		 Balance at
31 August
2022
£
112,497
898,336
1,342,920
2,353,753

Page 37

DocuSign Envelope ID: 8DB77EA2-1CFF-488D-B917-FBD4D0F1422E

BARNABAS AID LIMITED

(A company limited by guarantee)

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

19. Summary of funds (continued)

Summary of funds - prior year
Balance at
1 September
2020
£
Income
£
Expenditure
£
Designated funds
26,624
-
(6,543)
General funds
554,987
11,674,010
(11,528,329)
Restricted funds
-
6,577,430
(6,570,588)
581,611
18,251,440
(18,105,460)
20.
Analysis of net assets between funds
Analysis of net assets between funds - current year
Unrestricted
funds
2022
£
Tangible fixed assets
97,086
Current assets
6,964,543
Creditors due within one year
(6,050,796)
Total
1,010,833
Analysis of net assets between funds - prior year
Unrestricted
funds
2021
£
Tangible fixed assets
29,251
Current assets
1,367,389
Creditors due within one year
(675,891)
Total
720,749		 Transfers
in/out
£
24,581
(24,581)
-
-
Restricted
funds
2022
£
-
1,342,920
-
1,342,920
Restricted
funds
2021
£
-
6,842
-
6,842		 Balance at
31 August
2021
£
44,662
676,087
6,842
727,591
Total
funds
2022
£
97,086
8,307,463
(6,050,796)
2,353,753
Total
funds
2021
£
29,251
1,374,231
(675,891)
727,591

Page 38

DocuSign Envelope ID: 8DB77EA2-1CFF-488D-B917-FBD4D0F1422E

BARNABAS AID LIMITED

(A company limited by guarantee)

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

21. Reconciliation of net movement in funds to net cash flow from operating activities

Net income for the year (as per Statement of Financial Activities)
Adjustments for:
Depreciation charges
Dividends, interests and rents from investments
Loss on the sale of fixed assets
Decrease/(increase) in stocks
Decrease/(increase) in debtors
Increase in creditors
Net cash provided by operating activities
22.
Analysis of cash and cash equivalents
Cash in hand
Notice deposits (less than 3 months)
Total cash and cash equivalents
23.
Analysis of changes in net debt
At 1
September
2021
£
Cash at bank and in hand
878,942
878,942		 2022
2021
£
£
1,626,162
145,980
13,940
6,420
(9,290)
(643)
16,734
123
(18,294)
-
(863,907)
208,958
5,374,905
152,232
6,140,250
513,070
2022
2021
£
£
220,508
877,094
6,709,465
1,848
6,929,973
878,942
Cash flows
At 31
August 2022
£
£
6,051,031
6,929,973
6,051,031
6,929,973

Page 39

DocuSign Envelope ID: 8DB77EA2-1CFF-488D-B917-FBD4D0F1422E

BARNABAS AID LIMITED (A company limited by guarantee)

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

24. 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 £19,824 (2021 - £14,202). Contributions totalling £11,046 (2021 - £11,283), of which £3,901 (2021 - £2,348) related to the charity and £7,145 (2021 - £8,935) related to staff seconded to Nexcus International, were payable to the fund at the balance sheet date and are included in creditors.

25. Operating lease commitments

At 31 August 2022, and as disclosed below, the charity had commitments under non-cancellable operating leases. As at 31 August 2021 the lease on the property occupied by the charity had expired explaining why no obligations were disclosed for the comparative year. However under the Landlord and Tenant Act 1954 ("Act"), the terms of this lease were continuing until either the landlord or the tenant served notice in accordance with the Act.

Not later than 1 year
Later than 1 year and not later than 5 years
Later than 5 years		 2022
£
144,080
532,240
161,667
837,987		 2021
£
-
-
-
-

Page 40

DocuSign Envelope ID: 8DB77EA2-1CFF-488D-B917-FBD4D0F1422E

BARNABAS AID LIMITED (A company limited by guarantee)

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

26. 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 Aid Limited (BFUK), and some of the trustees of BFUK serve on the boards of these entities too. Accordingly transactions undertaken by BFUK 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 (2021 - £80,000) for rent to SFI with a further £7,777 accrued as due to SFI at 31 August 2022.

TBF Trust

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

Grants totalling £49,718 (2021 - £5,726) 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 £13,693 (2021 - £3,162) 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 £1,246 (2021 - £2,010) for postal recharges due to the charity from Isaac Publishing LLC.

Nexcus International (CRI)

BFUK entered into a memorandum of understanding, agreed and signed in March 2017 and updated at various times since then, with Nexcus International (formerly called 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 £16,242,059 (2021 - £16,428,193) from BFUK and contributed operating grants of £816,094 (2021 - £727,395), and payroll recharges of £1,400,400 (2021 - £1,706,391) re seconded staff. At the balance sheet date included within creditors is an amount of £5,800,415 (2021 - £492,972) owed to CRI.

Barnabas Fund US

In the year under review BFUK paid operating grants to Barnabas Fund US, a charitable organisation incorporated in the US, totalling £636,098 (2021 - nil). Barnabas Fund US shares some common directors and trustees with BFUK.

Page 41

DocuSign Envelope ID: 8DB77EA2-1CFF-488D-B917-FBD4D0F1422E

BARNABAS AID LIMITED (A company limited by guarantee)

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

26. Related party transactions (continued)

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 £1,894,587 (2021 - £336,000).

Olives Aid Trust

Olives Aid Trust is an organisation operating in Malaysia which shares some common directors and trustees with BFUK.

During the year BFUK received donations totalling £245,179.

Page 42