2023-08-31-accounts

Docusign Envelope ID: 3636639F-EA42-4A6F-AEE4-AC8E8FAC139B

Registered number: 04029536 Charity number: 1092935

BARNABAS AID LIMITED (formerly known as BARNABAS FUND)

(A company limited by guarantee)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2023

Docusign Envelope ID: 3636639F-EA42-4A6F-AEE4-AC8E8FAC139B

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 - 12
Trustees' responsibilities statement	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 - 44

Docusign Envelope ID: 3636639F-EA42-4A6F-AEE4-AC8E8FAC139B

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 2023

Directors and Trustees	Marquess of Reading, Trustee
	Rev I S McNaughton, Trustee
	Rev Dr V K Samuel, Trustee
	Mr A Carey, Trustee
	Mr N R Frost (appointed 23 May 2023, ceased to be a trustee 12 April 2024)
	Mr S Hook (appointed 23 August 2023, resigned 18 March 2024)
	Miss C J C Kerslake, Trustee (resigned 23 May 2023, appointed 20 April 2024)
	Dr D R J P Phillips, Trustee
	Mr W P S Richards, Trustee (appointed 13 September 2023)
	Mrs R A Sookhdeo (resigned 23 May 2023)
	Mr H W Storm (resigned 10 January 2023)
Company registered number 04029536 Charity registered number 1092935 Registered office Unit 23 Kembrey Park Ash Industrial Estate Swindon England SN2 8UY Company secretary Dr D R J P Phillips (from April 2024), previously Mr N R Frost Country director Grant Kauffmann

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Docusign Envelope ID: 3636639F-EA42-4A6F-AEE4-AC8E8FAC139B

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 2023

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 VWV Solicitors Second Floor 3 Brindleyplace Birmingham B1 2JB Insurance Brokers Access Insurance Selsdon House 212-220 Addington Road South Croydon Surrey CR2 8LD

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Docusign Envelope ID: 3636639F-EA42-4A6F-AEE4-AC8E8FAC139B

BARNABAS AID LIMITED

(A company limited by guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2023

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 2023. 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).

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.

 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: 3636639F-EA42-4A6F-AEE4-AC8E8FAC139B

BARNABAS AID LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

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, which is facilitated by Nexcus International, while Barnabas Aid retains its own identity and independence. Registered in the USA, Nexcus also has an operational office in the United Kingdom. The Nexcus office serves and assists the global ministry of Barnabas Aid. It provides all editorial materials (magazines, project reports, etc.) in addition to project administration and IT support.

The Charity’s main activities involve funding projects that help poor and persecuted Christians in many countries around the world and fit the objects of the Charity. Funds are directed through Nexcus International to facilitate the effective delivery of such funds. Nexcus undertakes to use the funds transferred to it in accordance with the purposes for which the funds are donated to Barnabas Aid by its various donors and Nexcus is accountable to the Barnabas Aid board for the funds provided by Barnabas Aid to Nexcus.

The Charity has five main activities, namely:

1. Ministry grants: During the year, funds were transferred to Nexcus International to disburse 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.

Strategic report

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

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Docusign Envelope ID: 3636639F-EA42-4A6F-AEE4-AC8E8FAC139B

BARNABAS AID LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

Strategic report (continued)

ACHIEVEMENTS AND PERFORMANCE (continued)

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.

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, the .gives area of the work has grown to include not only food but also clothes, blankets, medical equipment (including personal protective equipment) and more.

Donations of food and other items are received at the Charity’s warehouse in Swindon, sorted and dispatched via land and sea to suffering and persecuted Christians. Many of the office staff have been relocated from Pewsey to office space in Swindon near to the warehouse.

 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 Nexcus International, whose responsibility it is in turn to disburse the funds to carefully chosen project partners in accordance with the decisions of the Charity.

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 12 broad categories, and the impact of the Charity within each of these categories continues to see more needs being met year-on-year.

1. Education – The bimonthly magazine, “Barnabas Aid”, often including a special educational pull-out supplement, is sent to around 100,000 recipients, some of whom receive multiple copies. The great majority

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Docusign Envelope ID: 3636639F-EA42-4A6F-AEE4-AC8E8FAC139B

BARNABAS AID LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

Strategic report (continued)

ACHIEVEMENTS AND PERFORMANCE (continued)

of these are supporters based in the UK but copies of the magazine were mailed to supporters in several dozen more 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) in October-November 2022. The SCAAW 2022 theme for this year was “Understanding the Times: By your endurance you will gain your souls”. 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 small group Bible study, a devotional guide which contained daily readings and prayers for the week, a prayer bookmark, a Gift Aid envelope and a SCAAW poster that can be used to advertise any local SCAAW events.

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 25,000 subscribers. There has been an on-going engagement with our website Facebook account and followers on Twitter (now called X).

The Charity, in partnership with Nexcus 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. Prayer items are also included in e-mail news releases and daily prayer items are also posted on the website and circulated using Twitter (X) and Facebook.

In June 2023 Barnabas Aid's 30th Anniversary was celebrated.

 Factors relevant to achieve objectives

Natural disasters and wars often result in a surge of donations. 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 historical good reputation of Barnabas Aid, a reputation of transparency and scholarly accuracy, standing for truth, justice, righteousness and compassion/love. The Trustees recognise that the maintenance of this reputation will continue to be a critical asset for the future.

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Docusign Envelope ID: 3636639F-EA42-4A6F-AEE4-AC8E8FAC139B

BARNABAS AID LIMITED

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

Strategic report (continued)

ACHIEVEMENTS AND PERFORMANCE (continued)

 Current challenges faced by the charity

The Trustees are mindful of the possible negative impact since the balance sheet date of:

(1) several media reports about the charity arising from disputes as to the composition of the board of trustees (and in particular the validity of appointments made in early 2024) and as to the relationship between the charity and Nexcus International;

(2) an investigation which commenced in April 2024 by a law firm which was not chosen or approved by the majority of the charity’s trustees; and

(3) the intervention of the Charity Commission in opening on 17 September 2024 a statutory inquiry under s46 of the Charities Act 2011, escalating previous regulatory engagement.

As a result of the investigation referred to above carried out by the law firm, the former International CEO and trustee of Barnabas Aid Limited, Mr N R Frost, was dismissed in June 2024 from all roles within Barnabas Aid and related charities.

In addition, Nexcus has, since April 2024:

• restricted the access of the majority of the Trustees to the Charity's Pewsey and Swindon offices,

• prevented the majority of the Trustees from accessing the computer system of the Charity or its paper records,

• prevented the majority of the Trustees from accessing the Charity's bank accounts, and

• refused to share financial information requested by the majority of the Trustees.

The majority of the board of trustees sought the involvement of the Charity Commission to help resolve the ongoing dispute. Separately, Nexcus and the minority of the board also approached the Commission. The Trustees are working to find a way forward.

The statutory inquiry will examine whether the trustees are running the charity in line with their legal duties and charity law, particularly in relation to managing finances, conflicts of interest, and preventing unauthorised trustee and third-party benefits. The inquiry will also consider whether the charity is operating in furtherance of its objects and whether there has been any misconduct and/or mismanagement by the trustees in the administration of the charity.

Since April 2024, communication from Nexcus International to the Trustees has been very limited. As well as the lack of financial information referred to above, the board has not received from Nexcus reports on the manner in which the funds transferred to Nexcus by the Charity have been applied whether during the accounting year to which these accounts relate, or since. The board has not received a report from Nexcus on the application of the funds during the relevant period.

The Trustees acknowledge that whilst the inquiry is taking place, the Charity Commission have placed a restriction on the level at which the charity is permitted to make payments for any items which are not related to the running of the charity's payroll. As a consequence approval is required to be sought from the Commission before paying any transactions that are individually in excess of £4,000. The Trustees welcome this step as a means of ensuring that the funds of the Charity are properly applied while the dispute is resolved.

The Trustees continue to work closely with the Commission as they carry out this ongoing inquiry and are committed to improving the governance of the charity with due regard to any advice and guidance from the Commission.

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Docusign Envelope ID: 3636639F-EA42-4A6F-AEE4-AC8E8FAC139B

BARNABAS AID LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

Strategic report (continued)

BARNABAS FUND’S PEOPLE

Trustees

Barnabas Aid is grateful to the Trustees who voluntarily give their valuable time 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 their united efforts have, with God’s blessing, enabled the growth and success of the charity.

Barnabas Aid employed an average of 27 staff during 2022-23. 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 prayers, both for the persecuted Church and for Barnabas Aid, for their feedback, and messages of encouragement to 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: 3636639F-EA42-4A6F-AEE4-AC8E8FAC139B

BARNABAS AID LIMITED

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

Strategic report (continued)

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 2022/23 financial year has exceeded our expectations. The income received by Barnabas Aid for the year was £19,535,756 including Gift Aid (2022 - £21,613,949), and we are very grateful to all of our supporters for their generous giving.

Charitable activity expenditure was £18,064,082 (2022 - £19,696,288). These figures do not include costs of governance which were £14,034 during the year (2022 - £15,066).

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 2023 was net income (surplus) of £1,291,503 (2022 - £1,626,162).

Capital expenditure for the year was £38,661.

The Trustees believe the Statement of Financial Affairs (SOFA) shows a strong performance by Barnabas Aid in the context of a difficult economic environment.

 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 2023 the majority of restricted funds related to projects being administered by Nexcus International. Nexcus International uses the funds in accordance with the desires of the donors and in line with the objects of Barnabas Aid. 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.

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.

The Trustees have a reserve policy to enable the charity to meet its operating expenses should there be a major downturn in income for the charity. 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.

At 31 August 2023 the General Reserve was £1,573,365 (2022 - £898,336). 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 (2022 – the same) is held to fund planned major improvements to the information and communication systems of the charity.

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Docusign Envelope ID: 3636639F-EA42-4A6F-AEE4-AC8E8FAC139B

BARNABAS AID LIMITED

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

The Barnabas Books Fund of £1,911 (2022 – the same) is a sum set to cover funds due to Isaac Publishing for the distribution of books.

The trustees confirm having considered the projections made for the future years that they expect that the charity will be a going concern in twelve months from the date of approval of the financial statements.

 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 resolutions passed on 3 November 2010 and 10 December 2013. The Board of Trustees is responsible for the overall governance of the Charity and meets at least three times a year and considerably more frequently at present.

During the year in question the CEO (International) had the leadership role in respect of all delegated executive responsibilities, and was responsible for the day-to-day management of the Charity’s affairs (such as finance, human resources and compliance) and for implementing policies and decisions agreed by the Trustees. The International Director had a strategic and fundraising role and takes the primary responsibility of relationships with donors, project partners and church leaders around the world. The current position is uncertain as a result of the dispute referred to above. 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.

 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.

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Docusign Envelope ID: 3636639F-EA42-4A6F-AEE4-AC8E8FAC139B

BARNABAS AID LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)

 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:

• Any proposal to amend the Memorandum and Articles of Association; Instruments and Rules of Government; Accounting Reference Date or material accounting policies;

• Any decision to bring or defend legal action in a civil case;

• Response to criminal charges/allegations of criminal activity which have connection with the Charity;

• Expansion of activities beyond core business;

• Formation of a subsidiary;

• Amendment to pension schemes;

• Approval of Annual Report, Accounts & financial statements including setting of reserve allocations;

• Investment management policies;

• Cash management policies (including approved list of counter-parties);

• Any contract with any Trustee or member of senior management or with any person or entity connected with any of them;

• Opening of new banking relationship; and

• Receipt of gifts from a potentially undesirable donor.

 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 Aid 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.

In the context of the post balance sheet events described above, the Trustees recognise the need to urgently review the above risk analysis.

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Docusign Envelope ID: 3636639F-EA42-4A6F-AEE4-AC8E8FAC139B

BARNABAS AID LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

FUTURE PLANS & DEVELOPMENTS

Socio-religio-political factors suggest that the oppression and persecution of Christians in many countries of the world is likely to increase as are natural disasters affecting areas where Christians are marginalized, impoverished or particularly vulnerable for other reasons. The major objective for the coming year, beyond resolving the dispute described above, is to communicate the needs of the suffering 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.

Disclosure of information to auditors

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

• so far as that trustee is aware, there is no relevant audit information of which the charity's auditors are unaware, and

• that trustee has taken all the steps that ought to have been taken as a trustee in order to be aware of any relevant audit information and to establish that the charity's auditors are aware of that information.

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:

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

Dr D R J P Phillips (Trustee) Date: 20/11/2024

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Docusign Envelope ID: 3636639F-EA42-4A6F-AEE4-AC8E8FAC139B

BARNABAS AID LIMITED

(A company limited by guarantee)

STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE YEAR ENDED 31 AUGUST 2023

The trustees (who are also the directors of the company for the purposes of company law) are responsible for preparing the trustees' report including the strategic 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:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles of the Charities SORP (FRS 102);

• make judgements and accounting estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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.

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

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

Dr D R J P Phillips (Trustee) Date: 20/11/2024

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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 2023 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:

• give a true and fair view of the state of the charitable company's affairs as at 31 August 2023 and of its incoming resources and application of resources, including its income and expenditure for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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.

Emphasis of matter

We draw attention to note 27 of the financial statements, which describe events of note that have occurred since the balance sheet date and of decisions made to date as a result of these events that could impact on the way in which the charity operates. Our opinion is not modified in respect of this matter.

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Docusign Envelope ID: 3636639F-EA42-4A6F-AEE4-AC8E8FAC139B

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:

• the information given in the Trustees' report including the Strategic report for the financial year for which the financial statements are prepared is consistent with the financial statements.

• the Trustees' report and the Strategic report have been prepared in accordance with applicable legal requirements.

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 including the Strategic 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:

• adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

• the financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of trustees' remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit.

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.

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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:

• Enquiries with management and those charged with governance.

• Reviewing financial statement disclosures and testing to supporting documentation to assess compliance.

• Performing audit work on the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the rationale of significant transactions outside the normal course of operations and reviewing accounting estimates for bias.

• Carrying out substantive checking to supporting documents on a sample basis of individual transactions within the financial statements.

• Checking payroll transactions to ensure payments are made to valid employees.

• Reviewing minutes of trustees' meetings.

• Reviewing findings from the external report commissioned in April 2024 and considering the extent to which this is indicative of the likelihood of the August 2023 financial statements of Barnabas Aid Limited containing irregular or fraudulent transactions.

• Reviewing correspondence between the Charity Commission and the charity up to the date of approval of the financial statements.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the charitable company's internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.

• Conclude on the appropriateness of the trustees' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charitable company's ability to continue as a going concern. If we

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Docusign Envelope ID: 3636639F-EA42-4A6F-AEE4-AC8E8FAC139B

BARNABAS AID LIMITED

(A company limited by guarantee)

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

• conclude that a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause the charitable company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

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.

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

Date: 20/11/2024

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Docusign Envelope ID: 3636639F-EA42-4A6F-AEE4-AC8E8FAC139B

BARNABAS AID LIMITED

(A company limited by guarantee)

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2023

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 2023 £ 13,474,179 5,599 168,355 13,648,133 166,071 12,798,984 12,965,055 683,078 1,010,833 683,078 1,693,911	Restricted funds 2023 £ 5,887,623 - - 5,887,623 66 5,279,132 5,279,198 608,425 1,342,920 608,425 1,951,345	Total funds 2023 £ 19,361,802 5,599 168,355 19,535,756 166,137 18,078,116 18,244,253 1,291,503 2,353,753 1,291,503 3,645,256	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

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

The notes on pages 22 to 44 form part of these financial statements.

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Docusign Envelope ID: 3636639F-EA42-4A6F-AEE4-AC8E8FAC139B

BARNABAS AID LIMITED

(A company limited by guarantee)

SUMMARY INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 AUGUST 2023

Note Gross income in the reporting period Less: Total expenditure Net income for the reporting period	Total funds 2023 £ 19,535,756 (18,244,253) 1,291,503	Total funds 2022 £ 21,613,949 (19,987,787) 1,626,162

The notes on pages 22 to 44 form part of these financial statements.

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Docusign Envelope ID: 3636639F-EA42-4A6F-AEE4-AC8E8FAC139B

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

BALANCE SHEET AS AT 31 AUGUST 2023

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	- 1,571,196 10,969,616 12,540,812 (9,000,691)	2023 £ 105,135 105,135 3,540,121 3,645,256 3,645,256 1,951,345 1,693,911 3,645,256	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

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 were approved and authorised for issue by the trustees and signed on their behalf by:

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

Dr D R J P Phillips (Trustee) Date: 20/11/2024

The notes on pages 22 to 44 form part of these financial statements.

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Docusign Envelope ID: 3636639F-EA42-4A6F-AEE4-AC8E8FAC139B

BARNABAS AID LIMITED

(A company limited by guarantee)

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2023

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 provided by/(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 22 to 44 form part of these financial statements	2023 £ 3,909,949 168,355 (38,661) 129,694 - 4,039,643 6,929,973 10,969,616	2022 £ 6,140,250 9,290 (98,509) (89,219) - 6,051,031 878,942 6,929,973

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Docusign Envelope ID: 3636639F-EA42-4A6F-AEE4-AC8E8FAC139B

BARNABAS AID LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

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 a Special Resolution of 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.

Gifts in kind donated for distribution are included at valuation and recognised as income when they are distributed onwards.

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

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Docusign Envelope ID: 3636639F-EA42-4A6F-AEE4-AC8E8FAC139B

BARNABAS AID LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

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.

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Docusign Envelope ID: 3636639F-EA42-4A6F-AEE4-AC8E8FAC139B

BARNABAS AID LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

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.

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.

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Docusign Envelope ID: 3636639F-EA42-4A6F-AEE4-AC8E8FAC139B

BARNABAS AID LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

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.

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Docusign Envelope ID: 3636639F-EA42-4A6F-AEE4-AC8E8FAC139B

BARNABAS AID LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

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.

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Docusign Envelope ID: 3636639F-EA42-4A6F-AEE4-AC8E8FAC139B

BARNABAS AID LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

4. Income from donations and legacies

Unrestricted funds 2023 £ Donations Donations including gift aid 10,053,627 Donations in Kind 839,015 10,892,642 Legacies 1,742,394 Operating grants 839,090 Grants from TBF Trust 53 13,474,179 Unrestricted funds 2022 £ Donations Donations including gift aid 11,250,657 Donations in Kind 335,719 11,586,376 Legacies 1,584,053 Operating grants 816,094 Grants from TBF Trust 8,470 Government grants 1,881 Subtotal 2,410,498 13,996,874	Restricted funds 2023 £ 5,863,474 - 5,863,474 24,149 - - 5,887,623 Restricted funds 2022 £ 7,528,065 - 7,528,065 21,054 49,718 - - 70,772 7,598,837	Total funds 2023 £ 15,917,101 839,015
		16,756,116 1,766,543 839,090 53
		19,361,802
		Total funds 2022 £ 18,778,722 335,719
		19,114,441 1,605,107 865,812 8,470 1,881
		2,481,270
		21,595,711

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Docusign Envelope ID: 3636639F-EA42-4A6F-AEE4-AC8E8FAC139B

BARNABAS AID LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

Segmental analysis is made up of donations including gift aid, non-operating grants and legacies, . but excluding donations in kind

England Northern Ireland Scotland Wales Rest of the World	2023 £ 12,027,985 933,003 1,456,357 765,848 2,500,504 17,683,697	2022 £ 13,245,378 1,147,244 1,906,622 1,193,304 2,899,767
		20,392,315

5. Income from charitable activities

Unrestricted funds 2023 £ Income from sale of books, Christmas cards and other sales 5,599 Unrestricted funds 2022 £ Income from sale of books, Christmas cards and other sales 8,948	Total funds 2023 £ 5,599
	Total funds 2022 £ 8,948

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Docusign Envelope ID: 3636639F-EA42-4A6F-AEE4-AC8E8FAC139B

BARNABAS AID LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

6. Investment income

Unrestricted funds 2023 £ Bank interest receivable 168,355 Unrestricted funds 2022 £ Bank interest receivable 9,290	Total funds 2023 £ 168,355
	Total funds 2022 £ 9,290

7. Expenditure on raising funds

Costs of raising voluntary income

Unrestricted funds 2023 £ Publicity and appeals 166,071 Unrestricted funds 2022 £ Publicity and appeals 209,247	Restricted funds 2023 £ 66 Restricted funds 2022 £ 67,186	Total funds 2023 £ 166,137
		Total funds 2022 £ 276,433

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Docusign Envelope ID: 3636639F-EA42-4A6F-AEE4-AC8E8FAC139B

BARNABAS AID LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

8. Analysis of expenditure on charitable activities

Summary by fund type

Unrestricted funds 2023 £ Barnabas Ministries 12,798,984 Unrestricted funds 2022 £ Barnabas Ministries 13,515,781	Restricted funds 2023 £ 5,279,132 Restricted funds 2022 £ 6,195,573	Total 2023 £ 18,078,116
		Total 2022 £ 19,711,354

9. Analysis of expenditure by activities

Barnabas Ministries Barnabas Ministries	Activities undertaken directly 2023 £ 17,161,424 Activities undertaken directly 2022 £ 18,850,643	Support costs 2023 £ 916,692 Support costs 2022 £ 860,711	Total funds 2023 £ 18,078,116
			Total funds 2022 £ 19,711,354

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Docusign Envelope ID: 3636639F-EA42-4A6F-AEE4-AC8E8FAC139B

BARNABAS AID LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

9. Analysis of expenditure by activities (continued)

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	Total funds 2023 £ 561,226 16,402 936,777 73,949 14,558,276 142,405 872,389 17,161,424	Total funds 2022 £ 451,577 31,200 723,441 84,492 16,878,157 151,189 530,587
		18,850,643

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 31

Docusign Envelope ID: 3636639F-EA42-4A6F-AEE4-AC8E8FAC139B

BARNABAS AID LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

9. Analysis of expenditure by activities (continued)

Analysis of support costs

Staff costs Travel Communication and office costs Information technology Premises costs Loss/(gain) on currency exchange Legal and professional fees Governance Auditors' remuneration Cost of board meetings and trustees' expenses	Total funds 2023 £ 404,970 24,772 134,585 34,446 271,422 14,975 17,488 13,200 834 916,692	Total funds 2022 £ 228,941 18,465 141,701 90,667 368,486 (21,141) 18,526 13,523 1,543
		860,711

10. Auditors' remuneration

The auditors' remuneration amounts to an auditor fee of £13,200 ( 2022 - £13,523 ) , and payroll and other services of £5,314 (2022 - £8,791).

11. Staff costs

Wages and salaries Social security costs Contribution to defined contribution pension schemes	2023 £ 850,855 83,844 31,497 966,196	2022 £ 603,113 57,581 19,824
		680,518

A number of staff are seconded from Barnabas Aid to Nexcus International 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 32

Docusign Envelope ID: 3636639F-EA42-4A6F-AEE4-AC8E8FAC139B

BARNABAS AID LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

11. Staff costs (continued)

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

2023	2022
No.	No.
27	19

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 £47,833 and was in respect of 1 employee (2022 - £97,467 for 2 employees) in the year.

12. Trustees' remuneration and expenses

During the year, no trustees received any remuneration or other benefits (2022 - £NIL).

During the year ended 31 August 2023, expenses totalling £626 were reimbursed or paid directly to 1 trustee (2022 - £334 to 1 trustee), for travel, food and other costs in connection with the work of the charity.

In addition expenditure for travel costs were paid by the charity to third parties to facilitate the travel of some of the trustees and the International Director of Barnabas Global Ministries, Dr P Sookhdeo on business related to the global ministry of Barnabas Aid. However the costs in relation to this category of individuals cannot be readily disaggregated from the total travel costs incurred by the charity during the year which amounted to £29,126.

Page 33

Docusign Envelope ID: 3636639F-EA42-4A6F-AEE4-AC8E8FAC139B

BARNABAS AID LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

13. Tangible fixed assets

Plant and machinery Motor vehicles Fixtures and fittings £ £ £ Cost or valuation At 1 September 2022 14,259 66,354 76,276 Additions 20,243 9,900 - At 31 August 2023 34,502 76,254 76,276 Depreciation At 1 September 2022 2,970 31,425 72,217 Charge for the year 6,895 8,938 1,013 At 31 August 2023 9,865 40,363 73,230 Net book value At 31 August 2023 24,637 35,891 3,046 At 31 August 2022 11,289 34,929 4,059 14. Stocks Stocks of food and other essential items for future distribution	Computer equipment £ 75,048 8,518 83,566 28,239 13,766 42,005 41,561 46,809 2023 £ -	Total £ 231,937 38,661
		270,598
		134,851 30,612
		165,463
		105,135
		97,086
		2022 £ 18,294

Page 34

Docusign Envelope ID: 3636639F-EA42-4A6F-AEE4-AC8E8FAC139B

BARNABAS AID LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

15. Debtors

Due within one year Trade debtors Amounts due from related undertakings Other debtors Prepayments and accrued income Tax recoverable Legacies receivable	2023 £ 19,679 8,378 - 40,447 780,434 722,258 1,571,196	2022 £ 13,693 5,698 23,651 24,300 996,169 295,685
		1,359,196

16. Creditors: Amounts falling due within one year

Trade creditors Amounts due to related undertakings Other taxation and social security Other creditors Accruals and deferred income	2023 £ 149,243 8,760,710 61,931 16,205 12,602 9,000,691	2022 £ 149,623 5,803,778 47,470 13,984 35,941
		6,050,796

17. Financial instruments

	2023	2022
	£	£
Financial assets
Financial assets measured at fair value through income and expenditure	10,969,616	6,929,973

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

Page 35

Docusign Envelope ID: 3636639F-EA42-4A6F-AEE4-AC8E8FAC139B

BARNABAS AID LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

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	Balance at 1 September 2022 £ 97,086 13,500 1,911 112,497 Balance at 1 September 2022 £ 898,336 1,010,833	Income £ - - - - Income £ 13,648,133 13,648,133	Expenditure £ (30,612) - - (30,612) Expenditure £ (12,934,443) (12,965,055)	Transfers in/out £ 38,661 - - 38,661 Transfers in/out £ (38,661) -	Balance at 31 August 2023 £ 105,135 13,500 1,911
					120,546
					Balance at 31 August 2023 £ 1,573,365
					1,693,911

Page 36

Docusign Envelope ID: 3636639F-EA42-4A6F-AEE4-AC8E8FAC139B

BARNABAS AID LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

18. Statement of funds (continued)

Restricted funds Avocacy & Research Christian Worker Support Church Buildings Converts Disaster Relief Education and Schools Evangelism Food & Basic Needs General Ministry Literature & Resources Medical Small Businesses Theological and Leadership Training Victims of Violence and Injustice Food.gives Medical.gives Ukraine relief Total of funds	Balance at 1 September 2022 £ - - - - - - - - - - - - - - 19,333 53,176 1,270,411 1,342,920 2,353,753	Income £ 875 165,293 32,228 81,069 1,888,482 315,618 1,314 1,008,135 484,360 91,962 140,160 280,531 73,544 574,046 174,411 22,785 552,810 5,887,623 19,535,756	Expenditure £ (875) (165,293) (32,228) (81,069) (1,888,482) (315,618) (1,314) (1,008,135) (484,360) (91,962) (140,160) (280,531) (73,544) (574,046) (96,769) (17,202) (27,610) (5,279,198) (18,244,253)	Transfers in/out £ - - - - - - - - - - - - - - - - - - -	Balance at 31 August 2023 £ - - - - - - - - - - - - - - 96,975 58,759 1,795,611
					1,951,345
					3,645,256

Page 37

Docusign Envelope ID: 3636639F-EA42-4A6F-AEE4-AC8E8FAC139B

BARNABAS AID LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

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	Balance at 1 September 2021 £ 29,251 13,500 1,911 44,662 676,087 720,749	Income £ - - - - 14,015,112 14,015,112	Expenditure £ (26,417) - - (26,417) (13,698,611) (13,725,028)	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

Page 38

Docusign Envelope ID: 3636639F-EA42-4A6F-AEE4-AC8E8FAC139B

BARNABAS AID LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

18. Statement of funds (continued)

Restricted 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 Total of funds	- - - - - - - - - - - - - - - 6,842 - - 6,842 727,591	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 7,598,837 21,613,949	(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) (6,262,759) (19,987,787)	- - - - - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - 19,333 53,176 1,270,411
					1,342,920
					2,353,753

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.

Page 39

Docusign Envelope ID: 3636639F-EA42-4A6F-AEE4-AC8E8FAC139B

BARNABAS AID LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

19. Summary of funds

Summary of funds - current year

Designated funds General funds Restricted funds	Balance at 1 September 2022 £ 112,497 898,336 1,342,920 2,353,753 Balance at 1 September 2021 £ 44,662 676,087 6,842 727,591	Income £ - 13,648,133 5,887,623 19,535,756 Income £ - 14,015,112 7,598,837 21,613,949	Expenditure £ (30,612) (12,934,443) (5,279,198) (18,244,253) Expenditure £ (26,417) (13,698,611) (6,262,759) (19,987,787)	Transfers in/out £ 38,661 (38,661) - - Transfers in/out £ 94,252 (94,252) - -	Balance at 31 August 2023 £ 120,546 1,573,365 1,951,345
					3,645,256
					Balance at 31 August 2022 £ 112,497 898,336 1,342,920
Summary of funds - prior year
Designated funds General funds Restricted funds
					2,353,753

20. Analysis of net assets between funds

Analysis of net assets between funds - current year

Unrestricted funds 2023 £ Tangible fixed assets 105,135 Current assets 10,589,467 Creditors due within one year (9,000,691) Total 1,693,911	Restricted funds 2023 £ - 1,951,345 - 1,951,345	Total funds 2023 £ 105,135 12,540,812 (9,000,691)
		3,645,256

Page 40

Docusign Envelope ID: 3636639F-EA42-4A6F-AEE4-AC8E8FAC139B

BARNABAS AID LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

20. Analysis of net assets between funds (continued)

Analysis of net assets between funds - prior year

Unrestricted funds 2022 Restricted funds 2022 £ £ Tangible fixed assets 97,086 - Current assets 6,964,543 1,342,920 Creditors due within one year (6,050,796) - Total 1,010,833 1,342,920 21. Reconciliation of net movement in funds to net cash flow from operating activities 2023 £ Net income for the year (as per Statement of Financial Activities) 1,291,503 Adjustments for: Depreciation charges 30,612 Dividends, interests and rents from investments (168,355) Loss on the sale of fixed assets - Decrease/(increase) in stocks 18,294 Increase in debtors (212,000) Increase in creditors 2,949,895 Net cash provided by operating activities 3,909,949 22. Analysis of cash and cash equivalents 2023 £ Cash in hand 400,929 Notice deposits (less than 3 months) 10,568,687 Total cash and cash equivalents 10,969,616

Total funds 2022 £ 97,086 8,307,463 (6,050,796) 2,353,753 2022 £ 1,626,162 13,940 (9,290) 16,734 (18,294) (863,907) 5,374,905 6,140,250 2022 £ 220,508 6,709,465 6,929,973

Page 41

Docusign Envelope ID: 3636639F-EA42-4A6F-AEE4-AC8E8FAC139B

BARNABAS AID LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

23. Analysis of changes in net debt

Cash at bank and in hand	At 1 September 2022 £ 6,929,973 6,929,973	Cash flows At 31 August 2023 £ £ 4,039,643 10,969,616 4,039,643 10,969,616	Cash flows At 31 August 2023 £ £ 4,039,643 10,969,616 4,039,643 10,969,616
			10,969,616

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 £31,497 (2022 - £19,824).

25. Operating lease commitments

At 31 August 2023, and as disclosed below, the charity had commitments under non-cancellable operating leases.

Not later than 1 year Later than 1 year and not later than 5 years Later than 5 years	2023 £ 144,080 488,160 61,667 693,907	2022 £ 144,080 532,240 161,667
		837,987

Page 42

Docusign Envelope ID: 3636639F-EA42-4A6F-AEE4-AC8E8FAC139B

BARNABAS AID LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

26. Related party transactions

The charity is part of a global Barnabas ministry that can be traced 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 (BAL), and some of the trustees of BAL serve on the boards of these entities too. Accordingly transactions undertaken by BAL 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 BAL made payments totalling £95,000 (2022 - £80,000, plus £7,777 accrued) for rent to SFI. At the balance sheet date included within debtors is an amount of £4,243 (2022 - £2,775).

Isaac Publishing LLC

This is an entity incorporated in the USA.

At the balance sheet date included within debtors is an amount of £19,679 (2022 - £13,693) owed by Isaac Publishing LLC.

Nexcus International

BAL entered into a memorandum of understanding, agreed and signed in March 2016 and updated at various times since then, with Nexcus International (formerly called Christian Relief International), 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 BAL and Nexcus International 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 Nexcus International received donations of £14,212,917 (2022 - £16,242,059) from BAL and contributed operating grants of £839,090 (2022 - £816,094), and payroll recharges of £1,461,477 (2022 - £1,400,400) re seconded staff. Other recharges incurred totalled £47,122 (2022 - £36,750). At the balance sheet date included within creditors is an amount of £8,755,450 (2022 - £5,800,415) owed to Nexcus International.

Barnabas Fund US

In the year under review BAL paid operating grants to Barnabas Fund US, a charitable organisation incorporated in the US, totalling £345,359 (2022 - £636,098). Barnabas Fund US shares some common directors and trustees with BAL. At the balance sheet date included within debtors is an amount of £2,744 (2022 - £1,679).

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 BAL.

During the year under review BAL received donations totalling £1,620,500 (2022 - £1,894,587).

Olives Aid Trust

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

During the year under review BAL received donations totalling £55,006 (2022 - £245,179).

Page 43

Docusign Envelope ID: 3636639F-EA42-4A6F-AEE4-AC8E8FAC139B

BARNABAS AID LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

27. Post balance sheet events

The Trustees are mindful of the possible negative impact since the balance sheet date of:

(1) several media reports about the charity arising from disputes as to the composition of the board of trustees (and in particular the validity of appointments made in early 2024) and as to the relationship between the charity and Nexcus International;

(2) an investigation which commenced in April 2024 by a law firm which was not chosen or approved by the majority of the charity’s trustees; and

(3) the intervention of the Charity Commission in opening on 17 September 2024 a statutory inquiry under s46 of the Charities Act 2011, escalating previous regulatory engagement.

As a result of the investigation referred to above carried out by the law firm, the former International CEO and trustee of Barnabas Aid Limited, Mr N R Frost, was dismissed in June 2024 from all roles within Barnabas Aid and related charities.

In addition, Nexcus has, since April 2024:

• restricted the access of the majority of the Trustees to the Charity's Pewsey and Swindon offices,

• prevented the majority of the Trustees from accessing the computer system of the Charity or its paper records,

• prevented the majority of the Trustees from accessing the Charity's bank accounts, and

• refused to share financial information requested by the majority of the Trustees.

The majority of the board of trustees sought the involvement of the Charity Commission to help resolve the ongoing dispute. Separately, Nexcus and the minority of the board also approached the Commission. The Trustees are working to find a way forward.

The statutory inquiry will examine whether the trustees are running the charity in line with their legal duties and charity law, particularly in relation to managing finances, conflicts of interest, and preventing unauthorised trustee and third-party benefits. The inquiry will also consider whether the charity is operating in furtherance of its objects and whether there has been any misconduct and/or mismanagement by the trustees in the administration of the charity.

Since April 2024, communication from Nexcus International to the Trustees has been very limited. As well as the lack of financial information referred to above, the board has not received from Nexcus reports on the manner in which the funds transferred to Nexcus by the Charity have been applied whether during the accounting year to which these accounts relate, or since. The board has not received a report from Nexcus on the application of the funds during the relevant period.

The Trustees acknowledge that whilst the inquiry is taking place, the Charity Commission have placed a restriction on the level at which the charity is permitted to make payments for any items which are not related to the running of the charity's payroll. As a consequence approval is required to be sought from the Commission before paying any transactions that are individually in excess of £4,000. The Trustees welcome this step as a means of ensuring that the funds of the Charity are properly applied while the dispute is resolved.

The Trustees continue to work closely with the Commission as they carry out this ongoing inquiry and are committed to improving the governance of the charity with due regard to any advice and guidance from the Commission.

Page 44