Company registration number: 4292136 Charity registration number: 1093252
## South Eastern Baptist Association
(A company limited by guarantee)
Annual Report and Financial Statements for the Year Ended 31 December 2022
## **South Eastern Baptist Association**
## Contents
|Reference and Administrative Details|3|
|---|---|
|Trustees' Report|4 – 6|
|Independent Examiner’s Report|7|
|Statement of Financial Activities|8|
|Balance Sheet|9|
|Statement of Cash Flow|10|
|Notes to the Financial Statements|11 - 28|
Page 2
## **South Eastern Baptist Association**
Reference and Administrative Details
|Charity Name:|South Eastern Baptist Association|
|---|---|
|Company Registration Number:|04292136|
|Charity Registration Number:|1093252|
|Registered Office:|17 Cherry Close|
||Burgess Hill|
||West Sussex|
||RH15 9PR|
|Trustees:|Mr M F Browning|
||Revd P J Butchers – appointed 15 March 2023|
||Revd M J Fanstone|
||Revd J E Hardwick|
||Revd J G Newson – appointed 1 August 2022|
||Revd N Richardson – appointed 1 August 2022|
||Revd S W Davison - resigned 31 July 2022|
||Revd J L Hunt - appointed 1 August 2022 and resigned 15 March 2023|
||Revd P J Kerley – resigned 15 March 2023|
||Revd J E Mardell resigned 15 February 2022|
||Mr G F Sigfrid resigned 15 March 2023|
||Mrs C L Fisk – appointed 1 October 2023|
|Company Secretary:|Mr D Sheldon - resigned 20 October 2023|
|Senior Management Team:|Mr M F Browning, Treasurer|
||Revd S W Davison, Team Leader & Regional Minister – resigned 31 July 2022|
||Revd M J Fanstone, Moderator|
||Revd J L Hunt, Team Leader & Regional Minister - appointed 1 August 2022|
||Mr D Sheldon, Company Secretary|
|Bankers:|Reliance Bank Ltd|
||Faith House|
||23-24 Lovat Lane|
||London|
||EC3R 8EB|
|Independent Examiner|Azets Audit Services|
||Chartered Accountants|
||2ndFloor, Regis House|
||45 King William Street|
||London|
||EC4R 9AN|
Page 3
## **South Eastern Baptist Association**
Report of the Trustees Year Ended 31 December 2022
The Trustees, who are also directors of the Association for the purposes of company law, are pleased to submit the Annual Report and Financial Statements of the charitable company for the year ending 31 December 2022, which are prepared to meet the requirements for a directors’ report and accounts for Companies Act purposes.
The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Articles of Association and ‘Accounting and Reporting By Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102 – effective 1 January 2019)’ as updated by SORP Update Bulletin 1.
## Objectives and activities
The objects of the charity are to advance the Christian religion, especially by means of and in accordance with the principles of the Baptist denomination as set out for the time being in the Declaration of Principles of the Baptist Union of Great Britain.
The principal activities continue to be the resourcing and envisioning of ministers and churches throughout the whole area. This is mainly achieved through personal contacts, pastoral care, and the encouragement of strategies which will achieve an expanded Christian witness and the stated objectives of the charity.
## _Public benefit_
Having regard to the guidance published by the Charity Commission, the trustees continued to provide public benefit by seeking to advance the Christian Faith and Practice in accordance with the principles of the Baptist Denomination. The Association is a resource body for its member churches, which are all separate charities. Baptists believe that each Christian has a duty to share their faith with the wider public and recognise that the mission is not just evangelism, but also includes promoting justice, social welfare, healing, education and peace in the world.
The trustees confirm that they have complied with the requirements of section 4 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.
## Achievements and Performance
Throughout 2022 the Association continued to support its member churches in a wide range of activities including:
- communication, including the provision of religious material via the Association's website: www.sebabaptist.org.uk;
- promoting the study of religious teachings, practices and scriptures;
- support of religious office holders, e.g. ministers, deacons and elders of member churches:
- promoting prayer, praise and provision of training events;
- pastoral support to ministers and church congregations;
- contributing to the spiritual and moral education of children and young people and the provision of training
- comply with the legal requirements regarding safeguarding.
The work undertaken within the Kent Thameside Church Planting project led to two developments. Ebbsfleet Baptist Church would become a separate entity and also the Northfleet North project would close which resulted the sale of the Northfleet manse.
A residential conference of ministers and church leaders was held in 2022 and in 2023, and a future conference is planned for 2024.
Page 4
## **South Eastern Baptist Association**
Report of the Trustees Year Ended 31 December 2022
## Financial review
The results of the year are set out on pages 8 to 10.
The trustees consider the fund balance at 31 December 2022 to be satisfactory and the level of reserves meets the charity's reserves policy. The inclusion of the defined benefit liability to the multi-employer pension scheme is reflected in the Balance Sheet.
At the year end the Association Building Loan Fund totalled £521,980 (2021: £517,980). No new loans (2021: £Nil) were made during the year. During 2022 the Loan Fund assisted 12 churches (2021: 14). The total amount of loans outstanding at the year-end was £178,477 (2021: £247,877).
The total funds held by the charity at the end of the financial period amounted to £ 1,517,780 (2021: £1,767,600) of which restricted funds not available for the general purpose of the charity amounted to £211,509 (2021: £207,910).
## _Policy on reserves_
It is the policy of the charity to seek to maintain a level of reserves sufficient to cover 6 months' running costs.
## _Going concern_
The trustees have considered any uncertainties in relation to the charity's future funding and are confident of the charity's ability to continue as a going concern.
## Plans for future periods
The charity plans to continue to carry out its current objectives and activities and to seek further ways in which these can be more fully utilised.
## Structure, governance and management
## _Nature of governing document_
South Eastern Baptist Association is a company limited by guarantee and a registered charity. It is governed by its Memorandum and Articles of Association.
## _Recruitment and appointment of trustees_
The power to appoint up to 5 trustees is vested in the member churches; the Moderator and the Treasurer are also appointed by the member churches, up to 3 trustees may be co-opted by the Board of Trustees as a whole.
## _Induction and training of trustees_
All serving trustees understand the methods and purpose of the charity. All new trustees are given sufficient training upon appointment and new guidance is notified and made available at Board meetings.
## _Organisational structure_
The Board of Trustees is responsible for all aspects of the management and running of the charity and holds regular meetings in furtherance of those responsibilities. An organisational review was completed in 2020 creating 3 teams reporting into the trustees: Leadership Team; Network Ministers’ Team; Operations Team; and together with a renamed Finance and General Purposes Committee all interlink.
Page 5
## **South Eastern Baptist Association**
Report of the Trustees Year Ended 31 December 2022
## Statement of Trustees' Responsibilities
The trustees (who are also the directors of South Eastern Baptist Association for the purposes of company law) are responsible for preparing the trustees' Annual Report and the financial statements in accordance with the 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 year, which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and apply them consistently;
- observe the methods and principles in the Charities SORP 2019 (FRS 102);
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by the trustees of the charity on 8/12/2023 and signed on its behalf by:
......................................... Trustee - Rev P Butchers
Page 6
## **South Eastern Baptist Association**
Independent Examiner's Report to the Trustees of South Eastern Baptist Association
I report on the accounts of the South Eastern Baptist Association for the year ended 31 December 2022 set out on pages 8 to 28.
Responsibilities and basis of report
As the charity Trustees of the company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).
Having satisfied myself that the accounts of the company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your company’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
Since the company’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am member of The Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
1. accounting records were not kept in respect of the company as required by section 386 of the 2006 Act; or
2. the accounts do not accord with those records; or
3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination; or
4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
......................................
J Howard FCA For and on behalf of Azets Audit Services Chartered Accountants 2[nd] Floor, Regis House 45 King William Street London EC4R 9AN
Date: 11 December 2023
Page 7
## **South Eastern Baptist Association**
Statement of Financial Activities (Including Income and Expenditure Account) For the year ended 31 December 2022
|Unrestricted
Funds
Note
£
Income and endowments from:
Donations and legacies
2
225,443
Other trading activities
3
10,441
Investment income
4
25,303
Other income
5
41,085
Total income
302,272
Expenditure on:
Charitable activities
6
332,755
Total expenditure
332,755
Net (expenditure) / income before
investment gains/(losses)
(30,483)
Fair value (losses) / gains on
investment property
13
(25,000)
Net (losses) / gains on investments
14
(17,564)
Net (expenditure) / income before
transfers
(73,047)
Transfers between funds
(285,098)
Net (expenditure) / income before
other recognised gains/(losses)
(358,145)
Other recognised gains
19
59,200
Gain on property disposal
45,526
Net movements in funds
(253,419)
Reconciliation of funds:
Total funds brought forward
20
1,559,690
Total funds carried forward
20
1,306,271|Restricted
Funds
Total
2022
£
£
96,894
322,337
-
10,441
-
25,303
-
41,085
96,894
399,166
378,393
711,148
378,393
711,148
(281,499)
(311,982)
-
(25,000)
-
(17,564)
(281,499)
(354,546)
285,098
-
3,599
(354,546)
-
59,200
-
45,526
3,599
(249,820)
207,910
1,767,600
211,509
1,517,780|Total
2021
£
356,028
11,811
43,466
113,364|
|---|---|---|
|||524,669|
|||397,910|
|||397,910|
|||126,759|
|||58,000
17,928|
|||202,687|
|||-|
|||202,687|
|||3,610
-|
|||206,297
1,561,303|
|||1,767,600|
All income and expenditure has arisen from continuing activities
All recognised gains and losses are included in the Statement of Financial Activities
The notes on pages 11 to 28 form part of these financial statements.
Page 8
## **South Eastern Baptist Association**
## Balance Sheet
## As at 31 December 2022
(Registration number: 4292136)
|Note
Fixed Assets
Tangible assets
12
Investment property
13
Investments
14
Current Assets
Debtors
15
Cash at bank and in hand
Creditors: Amounts falling due within one year
16
Net Current Assets
Total Current Assets less current liabilities
Creditors: Amounts falling due after more than one year
17
Provisions for liabilities: Defined benefit pension scheme liability
18
Net assets
Funds of the charity:
Restricted funds
20
Unrestricted funds
20
Total funds
|2022
£
3,057
562,500
152,107
717,664
185,770
733,133
918,903
(43,787)
875,116
1,592,780
(75,000)
-
1,517,780
211,509
1,306,271
1,517,780
|2021
£
156,634
587,500
169,671
913,805
272,170
731,822
1,003,992
(15,997)
987,995
1,901,800
(75,000)
(59,200)
1,767,600
207,910
1,559,690
1,767,600|
|---|---|---|
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2022. The members have not required the charitable company to obtain an audit of its financial statements for the year ended 31 December 2022 in accordance with Section 476 of the Companies Act 2006.
The trustees acknowledge their responsibilities for:
- (a) ensuring that the company keeps accounting records with comply with Sections 386 and 387 of the Companies Act 2006 and
- (b) preparing the financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.
The financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small charitable companies. The financial statements were approved by the Board on the 8/12/23 and signed on its behalf by:
….........................................
Trustee - Rev P Butchers
The notes on pages 11 to 28 form part of these financial statements.
Page 9
## **South Eastern Baptist Association**
Statement of Cash Flows For the year ended 31 December 2022
|Note
Cash flows from operating activities
Net cash from operating activities
22
Cash flows from investing activities:
Dividends, interest and rents from investments
Purchase of investment (Bread of Life subsidiary)
Proceeds from sale of fixed asset
Proceeds from sale of investments
Net cash from investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents brought forward
Cash and cash equivalents carried forward
23|2022
£
(219,832)
(219,832)
25,303
-
195,840
-
221,143
1,311
731,822
733,133|2021
£
(59,365)
(59,365)
43,466
(10)
179,478
3,241
226,175
166,810
565,012
731,822|
|---|---|---|
The notes on pages 11 to 28 form part of these financial statements.
Page 10
## **South Eastern Baptist Association**
Notes to the Financial Statements For the Year Ended 31 December 2022
## 1. ACCOUNTING POLICIES
## (a) General information and charitable company status
South Eastern Baptist Association is a charitable company, limited by guarantee, without share capital, operating in the United Kingdom. The members of the charitable company are the Trustees name on page 3. In the event of the charitable company being wound up, the liability in respect of the guarantee is limited to £10 per member. The address of the registered office is given in the charity information on page 3 of these financial statements. The nature of the charity’s operations and principal activities are set out on page 4.
## (b) Basis of preparation of financial statements
The financial statements have been prepared in accordance with 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) - (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. South Eastern Baptist Association meets the definition of a public benefit entity under FRS 102.
The financial statements are prepared in sterling, which is the functional currency of the charitable company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
## (c) Preparation of the accounts on a going concern basis
The financial statements have been prepared on a going concern basis as the Trustees believe that no material uncertainties exist. The Trustees have considered the level of funds held and expected level of income and expenditure for 12 months from authorising these financial statements and have therefore continued to adopt the going concern basis in preparing its financial statements.
## (d) Funds
Unrestricted funds – represent those 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 – represent those funds set aside by the try Trustees for specific purposes.
Restricted funds – can only be used for a particular restricted purpose within the charitable objects. Restrictions arise when specified by the donor or when funds are raised for a particular restricted purpose.
## (e) Income
Income is recognised in the Statement of Financial Activities when the association has entitlement to the funds; and performance conditions attached to the item(s) of income have been met; it is probably that the income will be received; and that the amount can be measured reliably.
_Donations_ - Donations are recognised when the association has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance by the association before the association is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the association and it is probable that these conditions will be fulfilled in the reporting period.
_Legacies –_ For legacies, entitlement is taken as the earlier of the date on which either: the company is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made, or when a distribution is received from the estate.
Page 11
## **South Eastern Baptist Association**
Notes to the Financial Statements (continued)
For the Year Ended 31 December 2022
## 1. ACCOUNTING POLICIES - continued
## (e) Income (continued)
_Grants –_ Grants receivable are accounted for in the year in which they are receivable. Where performance conditions are attached to the grant and are yet to be met, the income is recognised as a liability and included on the balance sheet as deferred income to be released.
_Investment income -_ 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 bank. Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.
## (f) 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. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category.
_Charitable activities -_ Charitable expenditure comprises those costs incurred by the association in the delivery of its activities and services for its beneficiaries.
_Support costs -_ Support costs include central functions.
All expenditure is inclusive of irrecoverable VAT.
## (g) Taxation
The association is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the association is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
## (h) Tangible fixed assets and depreciation
Tangible fixed assets are statement at cost less accumulated depreciation and any provision for impairment. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
Buildings On a straight-line basis over 50 years Fixtures & Equipment 100% write off immediately
Individual fixed assets costing £500 or more are capitalised at cost.
## (i) Investment Property
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.
## (j) Fixed asset investments
Investments are held for their income generation and investment potential and are valued at market value at the reporting date where information is available. Where no market information is available, they are held at historic cost.
Investment gains and losses, whether realised or unrealised, are combined and are charged or credited to the Statement of Financial Activities.
Page 12
## **South Eastern Baptist Association**
Notes to the Financial Statements (continued) For the Year Ended 31 December 2022
## 1. ACCOUNTING POLICIES - continued
## (k) Debtors
Loans are considered concessionary loans as they are made by the association to further its purposes. Loans are initially measured at the amount paid, with the carrying amount adjusted subsequently to reflect repayments. There is no interest charged on the loan amounts. Where any loan made is considered to be irrecoverable an impairment loss is recognised.
Other debtors are recognised at the settlement amount. Prepayments are valued at the amount prepaid.
## (l) Cash and cash equivalents
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.
## (m) Creditors
Creditors are recognised where the association has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably.
Loans are recognised and held at the amount received less any repayment amounts, the carrying amount is adjusted to reflect any interest paid. Accruals and other creditors are recognised at their settlement amount due.
## (n) Provision for liabilities
Provisions are recognised when the charity has an obligation at the reporting date as a result of a past event, it is probable that the charity will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
A liability for the agreed pension scheme deficit plan has been included, in accordance with the Baptist Union Staff Pension Scheme Schedule of Contributions.
## (o) Financial instruments
The association only has financial assets and 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.
## (p) Employee benefits
_Defined contribution pension plans -_ The association participates in a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the association pays fixed contributions into a separate entity. Once the contributions have been paid the charity has no further payment obligations. The contributions are recognised as an expenditure when they are due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held separately from the charity in an independently administered fund.
_Multi-employer pension plan –_ The association is a member of a multi-employer plan defined pension plans. Where it is not possible for the association to obtain sufficient information to enable it to account for a plan as a defined benefit plan, it accounts for the plan as a defined contribution plan.
Where the plan is in deficit and where the charity has agreed, with the plan, to participate in a deficit funds arrangement, the charity recognised a liability for this obligation. The amount recognised is the net present value of the contribution payable under the agreement that relate to the deficit. This amount is expensed to the SOFA. The unwinding of the discount is recognised as a finance cost.
A liability for the agreed pension scheme deficit plan has been included, in accordance with the Baptist Pension Scheme Schedule of Contributions.
Page 13
## **South Eastern Baptist Association**
Notes to the Financial Statements (continued) For the Year Ended 31 December 2022
## 1. ACCOUNTING POLICIES - continued
(o) Judgement and key sources of estimations uncertainty
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believe to be reasonable under the circumstances.
- 1) Judgements in applying the entity’s accounting policies
- _Multi-employer defined pension scheme_ – Certain employees participate in multi-employer defined benefit pension schemes with other organisations. In the judgement of the trustees, the association does not have sufficient information on the plan assets and liabilities to be able to reliably account for its share of the defined benefit obligation and plan assets. Therefore, the schemes are accounted for as defined contribution schemes.
- _Investment property valuation_ – the valuations are prepared by the directors, based on third party valuation information.
- 2) Accounting estimates and assumptions
- _Multi-employer defined pension scheme: Baptist Pension Scheme_ – The association has an obligation to pay a deficit funding arrangement in respect of the multi-employer defined benefit pension scheme. The present value of the obligation depends on a number of factors including the RPI rate and the discount rate on corporate bonds. Management estimates these factors in determining the new pension obligation in the balance sheet.
- _Recoverability of loans_ – The recoverability of loans is assessed annually, and at the balance sheet date provisions for doubtful debts are provided based on prior year experiences.
2. INCOME FROM DONATIONS AND LEGACIES
|Unrestricted Funds
Restricted
Designated
General
Funds
£
£
£
Donations from individuals
4,000
-
96,894
Grants from other charities
-
8,470
-
Home Mission fund grant
-
209,171
-
Home Mission grant for missions
-
-
-
Other income
-
539
-
Preaching fees
-
3,263
-
4,000
221,443
96,894
Total 2021
12,340
273,541
70,147
. INCOME FROM OTHER TRADING ACTIVITES
Unrestricted Funds
Restricted
Designated
General
Funds
£
£
£
Membership subscriptions
-
10,441
-
-
10,441
-
Total 2021
-
11,811
-|Total
2022
£
100,894
8,470
209,171
-
539
3,263
322,337
356,028
Total
2022
£
10,441
10,441
11,811|Total
2021
£
71,762
10,246
262,009
8,370
539
3,102
356,028
Total
2021
£
11,811|
|---|---|---|
|||11,811|
||||
3. INCOME FROM OTHER TRADING ACTIVITES
Page 14
## **South Eastern Baptist Association**
Notes to the Financial Statements (continued) For the Year Ended 31 December 2022
## 4. INVESTMENT INCOME
|Unrestricted Funds
Restricted
Designated
General
Funds
£
£
£
Dividend income
-
4,505
-
Interest income
-
578
-
Rental income
-
20,220
-
-
25,303
-
Total 2021
-
28,376
15,090|Total
2022
£
4,505
578
20,220
25,303
43,466|Total
2021
£
5,029
7
38,430|
|---|---|---|
|||43,466|
||||
## 5. OTHER INCOME
||Unrestricted|Funds|Restricted||Total|Total|
|---|---|---|---|---|---|---|
||Designated|General|Funds||2022|2021|
||£|£|£||£|£|
|Other income|-|14,031||-|14,031|948|
|Conference and training fees|-|27,054||-|27,054|5,422|
|Gains on the sale of tangible fixed assets|-|-||-|-|106,994|
||-|41,085||-|41,085|113,364|
|Total 2021|-|113,364||-|113,364||
Page 15
## **South Eastern Baptist Association**
Notes to the Financial Statements (continued) For the Year Ended 31 December 2022
## 6. EXPENDITURE ON CHARITABLE ACTIVITIES
|Unrestricted Funds
Restricted
Designated
General
Funds
£
£
£
Wages and salaries (note 11)
-
131,744
59,813
Staff Employers NIC (note 11)
-
5,765
4,976
Staff pensions (note 11)
-
13,179
7,547
Rent
-
-
16,978
Council tax and water rates
-
6,480
14,832
Property maintenance
-
(775)
190,755
Small equipment
-
-
351
Student grants
-
148
-
Training and conferences
-
23,611
62
Travelling
-
12,637
4,695
Housing allowance
-
24,100
-
Insurance
-
1,067
-
Telephone
-
-
367
Sundry expenses
-
9,009
13,624
Ministry grant paid
-
57,486
-
Advertising
-
-
1,813
Professional and legal fees
-
-
60,904
Printing, postage and stationery
-
-
1,676
Accountancy fees
-
5,001
-
Depreciation
-
3,263
-
Support costs (note 7)
-
40,040
-
-
332,755
378,393
Total 2021
-
266,995
130,915|Total
2022
£
191,557
10,741
20,726
16,978
21,312
189,980
351
148
23,673
17,332
24,100
1,067
367
22,633
57,486
1,813
60,904
1,676
5,001
3,263
40,040
711,148
397,910|Total
2021
£
180,499
10,006
19,695
21,478
11,300
2,365
3,629
1,733
10,789
6,999
12,900
967
949
14,661
58,225
-
7,295
179
7,452
3,263
23,526|
|---|---|---|
|||397,910|
||||
Page 16
## **South Eastern Baptist Association**
Notes to the Financial Statements (continued) For the Year Ended 31 December 2022
## 7. ANALYSIS OF SUPPORT COSTS
|Unrestricted Funds
Restricted
Designated
General
Funds
£
£
£
Employment costs
-
52
-
Rental property costs
-
12,004
-
Insurance
-
1,593
-
Equipment
-
3,655
-
Telephone
-
2,832
-
Printing, postage and stationery
-
534
-
Trade subscriptions
-
3,130
-
Sundry expenses
-
4,880
-
Travel
-
3,624
-
Board costs
-
141
-
Interest payable (note 8)
-
7,595
-
-
40,040
-
Total 2021
-
23,165
361
8. INTEREST PAYABLE
Other loans
Interest on net defined benefit pension liability (note 19)
9. INDEPENDENT EXAMINATION FEE
This is stated after charging:
Independent examination fee
Over accrual previous year||Total
2022
£
52
12,004
1,593
3,655
2,832
534
3,130
4,880
3,624
141
7,595
40,040
23,526
Total
2022
£
-
7,595
7,595
Total
2022
£
4,560
4,560|Total
2021
£
-
4,834
1,492
1,496
3,078
741
2,891
7,923
1,311
-
(240)
23,526
Total
2021
£
(1,177)
937
(240)
Total
2021
£
4,140
110
4,250|
|---|---|---|---|
|||||
|||||
|||||
Page 17
## **South Eastern Baptist Association**
Notes to the Financial Statements (continued) For the Year Ended 31 December 2022
## 10. TRUSTEE REMUNERATION AND EXPENSES
During the year the association made transactions with trustees, all of which the trustees considered are permitted by the charity’s commission.
Although no longer trustees, below are the trustees who received full time salaries from the association, with Revd Kerley’s wife, who is not a trustee, receiving a part time salary. Trustees’ remuneration is paid for ministry work and are not connected with their duties as trustees. The salaries and other benefits (including employers pension contributions) paid in the year are set out below:
||2022|2021|
|---|---|---|
||£|£|
|Revd P J Kerley|36,543|35,807|
|Revd S Davison|28,334|41,873|
|Mrs P Kerley|10,256|12,374|
|Revd J L Hunt|24,451|-|
During the year, 3 (2021: 3) trustees were reimbursed for mileage and telephone expenses amounting to £ 10,879 (2021: £5,746)
## 11. STAFF COSTS
Staff costs were as follows:
|Staff costs were as follows:|||
|---|---|---|
|Wages and salaries
Social security costs
Pension Costs|2022
£
191,557
10,741
20,726
223,024|2021
£
180,499
10,006
19,695|
|||210,200|
The monthly average number of persons (including senior management team) employed by the charity during the year (per headcount) were as follows:
|the year (per headcount) were as follows:|||
|---|---|---|
|Full Time Staff
Part Time Staff|2022
No
5
5
10|2021
No
5
5|
|||10|
No employee received employee benefits (excluding employer pension costs) of more than £60,000 in either the current year or prior year.
The key management of the association comprise of the trustees and the senior management team noted on page 3. The total employee benefits of the key management personnel of the charity was £110,976 (2021: £97,948)
Page 18
## **South Eastern Baptist Association**
Notes to the Financial Statements (continued) For the Year Ended 31 December 2022
|12. TANGIBLE FIXED ASSETS|||||
|---|---|---|---|---|
||Land and|Furniture|and||
||Buildings|Equipment||Total|
||£|£||£|
|Cost|||||
|At 1 January 2022|163,160|4,919||168,079|
|Disposals|(159,908)||-|(159,908)|
|At 31 December 2022|3,252|4,919||8,171|
|Depreciation|||||
|At 1 January 2022|6,526|4,919||11,445|
|Depreciation charge|3,263||-|3,263|
|Disposals|(9,594)||-|(9,594)|
|At 31 December 2022|195|4,919||5,114|
|Carrying amount|||||
|At 31 December 2021|156,634||-|156,634|
|At 31 December 2022|3,057||-|3,057|
|13. INVESTMENT PROPERTY|||||
|||||Total|
|||||£|
|Fair value|||||
|At 1 January 2022||||587,500|
|FV gains/losses on investment properties||||(25,000)|
|At 31 December 2022||||562,500|
The disposal relates to the sale of the manse in Northfleet following the closure of that project.
## 14. FIXED ASSET INVESTMENTS
|Listed
Unlisted
Subsidiary -
Investments
Investments
Bread of Life
£
£
£
(See note 25)
Market Value
At 1 January 2022
157,646
12,015
10
Additions
-
-
-
Disposals
-
-
-
Revaluations
(17,564)
-
-
At 31 December 2022
140,082
12,015
10|Total
£
169,671
-
-
(17,564)
152,107|
|---|---|
All investments are held in the UK.
The unlisted investment relates to 2,403 ordinary shares held in Baptist Insurance Company Plc (registered company number 00083597) a public company limited by shares. As these shares are not actively traded through Stock Markets, no market value can be obtained, resulting in the shares being valued at historic cost.
Page 19
## **South Eastern Baptist Association**
Notes to the Financial Statements (continued) For the Year Ended 31 December 2022
## 15. DEBTORS
|Loans to churches
Prepayments and accrued income
Other debtors|2022
£
178,477
1,200
6,093
185,770|2021
£
247,877
18,200
6,093|
|---|---|---|
|||272,170|
The loans to churches are generally expected to be received after one year.
16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
|2022
£
Trade creditors
-
Other creditors
274
Other loans
-
Accruals and deferred income
43,513
43,787
16A. DEFERRED INCOME
2022
£
At 1 January 2022
9,746
Amounts released during the year
(9,746)
Amounts deferred during the year
37,382
At 31 December 2022
37,382
Income has been deferred as it was received in advance of the conference held in 2023.|2021
£
2,000
271
-
13,716|
|---|---|
||15,987|
||2021
£
-
-
9,746|
||9,746|
|||
17. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
||2022|2021|
|---|---|---|
||£|£|
|Other loans|75,000|75,000|
Other loans include aggregate amounts of £nil (2021: £nil) which fall due after five years and which are payable by instalments.
Page 20
## **South Eastern Baptist Association**
Notes to the Financial Statements (continued) For the Year Ended 31 December 2022
## 18. PROVISION FOR LIABILITIES
|||2022||2021|
|---|---|---|---|---|
|||£||£|
|Defined Benefit pension scheme liability (note|19)||-|59,200|
## 19. PENSION COMMITMENT
## Background
South Eastern Baptist Association is an employer participating in a pension scheme known as the Baptist Pension Scheme (“the Scheme”), which is administered by the Pension Trustee (Baptist Pension Trust Limited). The Scheme is a separate legal entity and the assets of the Scheme are held separately from those of the Employer and the other participating employers.
For any month, each participating employer in the Scheme pays contributions as set out in the Schedule of Contributions in force at that time.
The Scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. This is because it is not possible to attribute the Scheme’s assets and liabilities to specific employers and means that contributions are accounted for as if the Scheme were a defined contribution scheme. The pensions costs charged to the SoFA in the year are contributions payable towards benefits and expenses accrued in that year, plus any impact of deficiency contributions (see below).
The Regional Ministers and some members of the Association Team are eligible to join the Scheme. From January 2012, pension provision is being made through the Defined Contribution (DC) Plan within the Scheme. In general, members pay 8% of their Pensionable Income and employers pay 6% of members’ Pensionable Income into individual pension accounts, which are operated and managed on behalf of the Pension Trustee by Legal and General Life Assurance Society Limited. In addition, the employer pays a further 4% of Pensionable Income to cover Death in Service Benefits, administration costs, and an associated insurance policy which provides income protection for Scheme members in the event that they are unable to work due to long-term incapacity. This income protection policy has been insured by the Baptist Union of Great Britain with Aviva plc. The further 4% contribution rate is reduced to 3% for Employer contributions made to the Segregated DC Arrangement.
Benefits in respect of service prior to 1 January 2012 are provided through the Defined Benefit (DB) Plan within the Scheme. The main benefits for pre-2012 service were a defined benefit pension of one eightieth of Final Minimum Pensionable Income for each year of Pensionable Service, together with additional pension in respect of premiums paid on Pensionable Income in excess of Minimum Pensionable Income. The Scheme, previously known as the Baptist Ministers’ Pension Fund, started in 1925, but was closed to future accrual of defined benefits on 31 December 2011.
## Actuarial valuation as at 31 December 2019
A formal valuation of the Defined Benefit (DB) Plan was performed at 31 December 2019 by a professionally qualified Actuary using the Projected Unit Method. The market value of the DB Plan assets at the valuation date was £298 million.
The valuation of the DB Plan revealed a deficit of assets compared with the value of liabilities of £18 million (equivalent to a past service funding level of 94%). The Association and the other employers supporting the DB Plan are collectively responsible for funding this deficit.
Page 21
## **South Eastern Baptist Association**
Notes to the Financial Statements (continued) For the Year Ended 31 December 2022
## 19. PENSION COMMITMENT – continued
The key assumptions underlying the valuation were as follows:
|Type of assumption|% p.a.|
|---|---|
|RPI price inflation assumption|3.20|
|CPI price inflation assumption|2.70|
|Minimum Pensionable Income increases|3.20|
|Assumed investment returns||
|•
Pre-retirement|2.95|
|•
Post-retirement|1.70|
|Deferred pension increases||
|•
Pre-April 2009|3.20|
|•
Post-April 2009|2.50|
|Pension increases||
|•
Main Scheme pension|2.70|
Post–retirement mortality in accordance with 80% of the S3NFA and S3NMA tables, with allowance for future improvements in mortality rates from 2013 in line with the CMI 2020 core projections, with a long-term annual rate of improvement of 1.75% for males and 1.5% for females, with the core smoothing parameter and with additional initial mortality improvement factor A=0.5%.
The next actuarial valuation of the DB Plan within the Scheme is due to take place not later than as at 31 December 2023.
## Recovery Plan
In addition to the contributions to the DC Plan set out above, where a valuation of the DB Plan reveals a deficit the Trustee and the Council agree to a rate of deficiency contributions from associations, churches and other employers involved in the DB Plan.
Under the current Recovery Plan dated 30 September 2020, deficiency contributions are payable until 30 June 2026. These contributions are broadly based on the employer's membership at 31 December 2014 and increase annually in line with increases to Minimum Pensionable Income as defined in the Rules. However, the Trustee and the Council agreed a 50% reduction for all deficiency contributions payable between 1 July 2020 and 31 December 2020.
## Movement in Balance Sheet liability
The movement in the provision is set out in the table below.
|Balance brought forward
Contributions paid in the year
Net interest expense
Loss/(gain) on change of funding plan*
Balance carried forward|2022
£
59,200
(7,595)
(51,605)
-|2021
£
74,696
(12,823)
937
(3,610)
59,200|
|---|---|---|
* Comprises any change in agreed deficit recovery plan and change in assumptions between year-ends. During the year, the Church was asked to now pay £1 a month towards the deficit, thus reducing the liability to £Nil.
Page 22
## **South Eastern Baptist Association**
Notes to the Financial Statements (continued) For the Year Ended 31 December 2022
## 19. PENSION COMMITMENT – continued
This liability represents the present value of the deficit contributions agreed as at the accounting date and has been valued using the following assumptions set by reference to the duration of the deficit recovery payments:
||31 December|31 December|31 December|
|---|---|---|---|
||2022|2021|2020|
|Discount rate|2.0%|2.0%|0.4%|
|Future increases to MPI (Minimum Pensionable Income)|4.1%|4.1%|3.0%|
The Association has been advised that the cost for the Association to buyout their Pension Scheme liabilities as at 31 December 2022 was approximately £Nil (2021: £57,100).
Page 23
## **South Eastern Baptist Association**
Notes to the Financial Statements (continued) For the Year Ended 31 December 2022
## 20. STATEMENT OF FUNDS
## STATEMENT OF FUNDS – CURRENT YEAR
|Unrestricted funds
General funds
Revaluation reserve
Unrestricted income fund
Home Mission grant for missions
Building loan fund
Capital reserve
Investment reserve
Zion fund
The Evangelism fund
Le Ferve
Total unrestricted fund
Restricted funds
Cavendish fund
Brasted fund
Church of the year fund
Fresh Expressions
Kent Union fund
Kent Thameside Church Planting Project
Baptist Grant
Northfleet Project
KTCP Bus Project
Bread of Life Project
Total restricted fund
Total funds|Balance at
1 January
2022
£
104,394
586,316
690,710
-
517,980
250,883
7,065
75,000
14,765
3,287
868,980
1,559,690|Incoming
Resources
£
-
298,172
298,172
100
4,000
-
-
-
-
-
4,100
302,272
-
-
-
-
-
64,634
-
4,443
-
27,817
96,894
399,166||Resources
Expended
£
-
(275,269)
(275,269)
(57,486)
-
-
-
-
-
-
(57,486)
(332,755)
-
-
-
-
-
(57,266)
-
(19,231)
-
(301,896)
(378,393)
(711,148)||Transfers
Balance at
& Gains/
30 December
(losses)
2022
£
£
(25,000)
79,394
(197,936)
411,283
(222,936)
490,677
-
(57,386)
-
521,980
-
250,883
-
7,065
-
75,000
-
14,765
-
3,287
-
815,594
(222,936)
1,306,271
-
88,193
-
74,205
-
-
-
161
-
2,108
-
28,506
-
6,931
14,788
-
-
11,405
270,310
-
285,098
211,509
62,162
1,517,780|
|---|---|---|---|---|---|---|
||88,193
74,205
-
161
2,108
21,138
6,931
-
11,405
3,769
207,910
1,767,600||||||
Page 24
## **South Eastern Baptist Association**
Notes to the Financial Statements (continued) For the Year Ended 31 December 2022
## 20. STATEMENT OF FUNDS – continued
The specific purposes for which the funds are to be applied are as follows:
## Restricted funds
Cavendish Fund & Brasted Fund - These restricted reserves relate to monies received at the time of a church closure, which can only be used to purchase property.
Fresh Expressions - These funds are used to run Mission Shaped Ministry courses in conjunction with the Fresh Expressions training organisation, offering the opportunity for ministers to engage in concepts, or fresh expressions of church which will connect with those people currently missing from our congregation.
Kent Union Fund - Income received from the Kent Union Fund is used for the benefit of needy retired ministers or their spouses.
Kent Thameside Church Plant Project - This is a long-term project in which the Association is engaged at the Kent Thameside Development. The project has funds in both designated and restricted accounts.
Baptist Grant - Monies received from the Baptist Union for a specific Mission Project.
Northfleet Project – although part of the Kent Thameside Church Plant Project operated in the Northfleet North area with its own pioneer minister. Funding of the project was provided by SEBA each year to balance the costs involved and transferred accordingly.
KTCP Bus Project – relates to funds received towards the purchase of a vehicle or other work within the project.
Bread of Life Project – A pioneering mission project to transform a disused church building, in a parade of shops in Strood, into a coffee shop – bakery – church to serve the local community and establish a worshipping community.
Page 25
## **South Eastern Baptist Association**
Notes to the Financial Statements (continued) For the Year Ended 31 December 2022
## 20. STATEMENT OF FUNDS – continued
STATEMENT OF FUNDS – PRIOR YEAR
|Unrestricted funds
General funds
Revaluation reserve
Unrestricted income fund
Home Mission grant for missions
Building loan fund
Capital reserve
Investment reserve
Zion fund
The Evangelism fund
Le Ferve
Total unrestricted fund
Restricted funds
Cavendish fund
Brasted fund
Church of the year fund
Fresh Expressions
Kent Union fund
Kent Thameside Church Planting Project
Baptist Grant
Northfleet Project
KTCP Bus Project
Bread of Life Project
Total restricted fund
Total funds|Balance at
1 January
2021
£
46,394
412,845
459,239
-
515,224
250,883
7,065
75,000
14,765
3,287
866,224
1,325,463
88,193
74,205
10,700
161
2,108
18,817
6,931
-
11,405
23,320
235,840
1,561,303|Incoming
Resources
£
-
427,092
427,092
8,370
3,970
-
-
-
-
-
12,340
439,432
-
-
500
-
-
57,251
-
3,591
-
23,895
85,237
524,669|Resources
Expended
£
-
(207,556)
(207,556)
(58,225)
(1,214)
-
-
-
-
-
(59,439)
(266,995)
-
-
-
-
-
(54,930)
-
(21,339)
-
(54,646)
(130,915)
(397,910)|Transfers
& Gains/
(losses)
£
58,000
(46,065)
11,935
49,855
-
-
-
-
-
-
49,855
61,790
-
-
(11,200)
-
-
-
-
17,748
-
11,200
17,748
79,538|Balance at
30 December
2021
£
104,394
586,316
690,710
-
517,980
250,883
7,065
75,000
14,765
3,287
868,980
1,559,690
88,193
74,205
-
161
2,108
21,138
6,931
-
11,405
3,769
207,910
1,767,600|
|---|---|---|---|---|---|
Page 26
## **South Eastern Baptist Association**
## Notes to the Financial Statements (continued) For the Year Ended 31 December 2022
## 21. ANALYSIS OF NET ASSETS BETWEEN FUNDS
ANALYSIS OF NET ASSETS BETWEEN FUNDS – CURRENT YEAR
||Unrestricted|Restricted|Restricted|Total|
|---|---|---|---|---|
||Funds|Funds||Funds|
||2022|2022||2022|
||£|£||£|
|Tangible fixed assets|3,057||-|3,057|
|Investment Property|562,500||-|562,500|
|Fixed asset investments|152,108||-|152,108|
|Current assets|707,393|211,509||918,902|
|Creditors due within one year|(43,787)||-|(43,787)|
|Creditors due in more than one year|(75,000)||-|(75,000)|
|Provisions for liabilities and charges|-||-|-|
||1,306,271|211,509||1,517,780|
ANALYSIS OF NET ASSETS BETWEEN FUNDS – PRIOR YEAR
|U restricted
Funds
2021
£
Tangible fixed assets
156,634
Investment Property
587,500
Fixed asset investments
169,671
Current assets
796,082
Creditors due within one year
(15,997)
Creditors due in more than one year
(75,000)
Provisions for liabilities and charges
(59,200)
1,559,690|Restricted
Total
Funds
Funds
2021
2021
£
£
-
156,634
-
587,500
-
169,671
207,910
1,003,992
-
(15,997)
-
(75,000)
-
(59,200)
207,910
1,767,600|
|---|---|
Page 27
## **South Eastern Baptist Association**
Notes to the Financial Statements (continued) For the Year Ended 31 December 2022
## 22. RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITIES
||2022|2021|
|---|---|---|
||£|£|
|Net expenditure for the year (as per Statement of Financial Activities)|(354,546)|202,687|
|Adjustment for:|||
|Depreciation charges|3,263|3,263|
|Fair value (gains)/losses on investment property|25,000|(58,000)|
|Fair value (gains)/losses on fixed asset investments|17,564|(17,928)|
|Dividends, interest and rents from investments|(25,303)|(43,466)|
|(Gain) on disposal of fixed asset|-|(106,994)|
|Decrease in debtors|86,400|33,080|
|(Decrease)/Increase in creditors|27,790|(60,121)|
|Defined benefit scheme finance cost adjustment|-|(11,886)|
|Net cash used in operating activities|(219,832)|(59,365)|
## 23. ANALYSIS OF CASH AND CASH EQUIVALENTS
|Cash and cash equivalents|2022
£
733,133
733,133
|2021
£
731,822
731,822|
|---|---|---|
## 24. RELATED PARTY TRANSACTIONS
The charity is a member of the Baptist Union of Great Britain and is in receipt of grants from the Home Mission Fund, which is part of the Baptist Union of Great Britain Group. Grants of £209,915 (2021: £256,259) were received in this respect.
## 25. INVESTMENT IN SUBSIDARY
Bread of Life ltd, is a private limited Company, registered number 13000089. The company was incorporated on the 5 November 2020 and 100% of the £10 ordinary share capital is owned by South Eastern Baptist Association, which remains unpaid at the 31 December 2022. At the year end 31 December 2022, the accounts have not been consolidated into the accounts of South Eastern Baptist Association due to the subsidiary not being material. During the period to 31 December 2022 the following was noted:
||2022|
|---|---|
|Profit and Loss Account|£|
|Turnover|3,735|
|Cost of sales|(3,477)|
|Administration expenses|(236,245)|
|Other operating income|259,959|
|Profit for the financial period|23,972|
|||
|Net Assets at 31 December 2022|34,796|
Page 28