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2023-12-31-accounts

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 2023

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
Revd N Richardson
Mrs C L Fisk – appointed 1 October 2023
Revd J L Hunt - appointed 1 August 2022 and resigned 15 March 2023
Revd P J Kerley – resigned 15 March 2023
Mr G F Sigfrid resigned 15 March 2023
Senior Management Team: Revd P J Butchers – Moderator
Mrs C L Fisk – Treasurer
Revd J L Hunt - Team Leader & Regional Minister
Mr R Stanford Beale – Operations Manager
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 2023

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 2023, 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 2023 the Association continued to support its member churches in a wide range of activities including:

The residential conference for ministers and church leaders held in 2023 and 2024 continues to be a well received time of ministry and fellowship for our wider church network, and this will be continued into 2025 and beyond.

Page 4

South Eastern Baptist Association

Report of the Trustees Year Ended 31 December 2023

Financial review

The results of the year are set out on pages 8 to 10.

The trustees consider the fund balance at 31 December 2023 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 (2022: £521,980). No new loans (2022: £Nil) were made during the year. During 2023 the Loan Fund assisted 8 churches (2022: 12). The total amount of loans outstanding at the year-end was £131,244 (2022: £178,477).

The total funds held by the charity at the end of the financial period amounted to £1,609,811 (2022: £1,517,780) of which restricted funds not available for the general purpose of the charity amounted to £164,667 (2022: £211,509).

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. The Trustees are supported in their work by the Operations Team, the Leadership Team and the Finance Committee. The Operations Team, comprising the paid staff team, work together to further the charity’s aims and objectives. The Leadership team, made up of a mixture of paid staff and volunteer ministers from our Networks, meet together to steer the Association and focus its ministry aims. The Finance Committee, made up of Trustees, paid staff and volunteers, oversee the charity’s position and financial governance.

Page 5

South Eastern Baptist Association

Report of the Trustees Year Ended 31 December 2023

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:

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 ……………………………………………………………..and signed on its behalf by: 8 July 2024

......................................... 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 2023 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: 18 July 2024

Page 7

South Eastern Baptist Association

Statement of Financial Activities

(Including Income and Expenditure Account) For the year ended 31 December 2023

Unrestricted
Funds
Note
£
Income and endowments from:
Donations and legacies
2
459,351
Other trading activities
3
11,113
Investment income
4
47,976
Other income
5
31,153
__
Total income
549,593
_
Expenditure on:
Charitable activities
6
375,417
_
Total expenditure
375,417
__
Net (expenditure) / income before
investment gains/(losses)
174,176
_
Fair value (losses) / gains on
investment property
13
19,750
Net (losses) / gains on investments
14
11,696
_

Net (expenditure) / income before
transfers
205,622
__
Transfers between funds
(66,749)
_
Net (expenditure) / income before
other recognised gains/(losses)
138,873
_
Other recognised gains
19
-
Gain on property disposal
-
__
Net movements in funds
138,873
Reconciliation of funds:
Total funds brought forward
20
1,306,271
_
Total funds carried forward
20
1,445,144
_
Restricted
Funds
£
17,467
-
-
-
__
17,467
_
131,058
_
131,058
__
(113,591)
_
-
_

(113,591)
__
66,749
_
(46,842)
_
-
-
__
(46,842)
211,509
_
164,667
_
Total
2023
£
476,818
11,113
47,976
31,153
__
567,060
_
506,475
_
506,475
__
60,585
_
19,750
11,696
_

92,031
__
-
_
92,031
_
-
-
__
92,031
1,517,780
_
1,609,811
_
Total
2022
£
322,337
10,441
25,303
41,085
__
399,166
_
711,148
_
711,148
__
(311,982)
_
(25,000)
(17,564)
_

(354,546)
__
-
_
(354,546)
_
59,200
45,526
__
(249,820)
1,767,600
_
1,517,780
_

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 2023

(Registration number: 4292136)

2023 2022
Note £ £
Fixed Assets
Tangible assets 12 2,992 3,057
Investment property 13 582,250 562,500
Investments 14 163,804 152,107
______ ______
749,046 717,664
______ ______
Current Assets
Debtors 15 159,221 185,770
Cash at bank and in hand 722,755 733,133
______ ______
881,976 918,903
Creditors:Amounts falling due within one year 16 (21,211) (43,787)
Net Current Assets 860,765 875,116
______ ______
Total Current Assets less current liabilities 1,609,811 1,592,780
Creditors:Amounts falling due after more than one year 17 - (75,000)
Provisions for liabilities:Defined benefit pension scheme liability 18 - -
______ ______
Net assets 1,609,811 1,517,780
______ ______
Funds of the charity:
Restricted funds 20 164,667 211,509
Unrestricted funds 20 1,445,144 1,306,271
______ ______
Total funds 1,609,811 1,517,780
______ ______

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2023. The members have not required the charitable company to obtain an audit of its financial statements for the year ended 31 December 2023 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for:

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……………………………………and 8 July 2024 signed on its behalf by:

…......................................... BS 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 2023

Note
Cash flows from operating activities
Net cash from operating activities
22
Cash flows from investing activities:
Dividends, interest and rents from investments
Proceeds from sale of fixed asset
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
2023
£
(58,354)
__
(58,354)
47,976
-
_
47,976
(10,378)
733,133
___
722,755
______
2022
£
(219,832)
__
(219,832)
25,303
195,840
_
221,143
1,311
731,822
___
733,133
______

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 2023

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 named 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 – represents those funds as set aside by the Trustees for specific purposes. A description of the nature and purposes of the designated funds can be found at note 20.

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. A description of the nature and purposes of the restricted funds can be found at note 20.

(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 probable 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 2023

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 2023

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 2023

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.

2. INCOME FROM DONATIONS AND LEGACIES

Unrestricted Funds
Restricted
Designated
General
Funds
£
£
£
Donations from individuals
-
-
17,467
Grants from other charities
-
13,578
-
Home Mission fund grant
-
250,077
-
Other income
-
191,506
-
Preaching fees
-
4,190
-
_
_
_
-
459,351
17,467
_
_
_
Total 2022
4,000
221,443
96,894
_
_
____
Total
2023
£
17,467
13,578
250,077
191,506
4,190
_
476,818
_
322,337
____
Total
2022
£
100,894
8,470
209,171
539
3,263
_
322,337
_

Included within other income is proceeds received from the Baptist Union in relation to the sale of church premises for a church that had closed.

3. INCOME FROM OTHER TRADING ACTIVITES

Unrestricted Funds
Restricted
Designated
General
Funds
£
£
£
Membership subscriptions
-
11,113
-
_
_
_
-
11,113
-
_
_
_
Total 2022
-
10,441
-
_
_
____
Total
2023
£
11,113
_
11,113
_
10,441
____
Total
2022
£
10,441
_
10,441
_

Page 14

South Eastern Baptist Association

Notes to the Financial Statements (continued) For the Year Ended 31 December 2023

4. INVESTMENT INCOME

Unrestricted Funds
Restricted
Designated
General
Funds
£
£
£
Dividend income
-
1,294
-
Interest income
-
6,612
-
Rental income
-
40,070
-
_
_
_
-
47,976
-
_
_
_
Total 2022
-
25,303
-
_
_
____
Total
2023
£
1,294
6,612
40,070
_
47,976
_
25,303
____
Total
2022
£
4,505
578
20,220
_
25,303
_

5. OTHER INCOME

Unrestricted Funds Restricted Total Total
Designated General Funds 2023 2022
£ £ £ £ £
Other income - 2,394 - 2,394 14,031
Conference and training fees - 28,759 - 28,759 27,054
____ ____ ____ ____ ____
-
____
31,153
____
-
____
31,153
____
41,085
____
Total 2022 -
____
41,085
____
-
____
41,085
____

Page 15

South Eastern Baptist Association

Notes to the Financial Statements (continued) For the Year Ended 31 December 2023

6. EXPENDITURE ON CHARITABLE ACTIVITIES

Unrestricted Funds
Restricted
Designated
General
Funds
£
£
£
Wages and salaries (note 11)
-
145,771
4,416
Staff Employers NIC (note 11)
-
6,154
400
Staff pensions (note 11)
-
15,733
561
Rent
-
-
-
Council tax and water rates
-
8,655
1,107
Property maintenance
-
7,966
61,099
Small equipment
-
-
23
Student grants
-
-
-
Training and conferences
-
18,817
-
Travelling
-
16,283
1,053
Housing allowance
-
32,400
-
Insurance
-
-
-
Telephone
-
-
-
Sundry expenses
-
5,563
2,075
Ministry grant paid
-
75,180
60,216
Advertising
-
-
-
Professional and legal fees
-
-
-
Printing, postage and stationery
-
-
108
Accountancy fees
-
6,068
-
Depreciation
-
65
-
Support costs (note 7)
-
36,762
-
_
_
_
-
375,417
131,058
_
_
_
Total 2022
-
332,755
378,393
_
_
____
Total
2023
£
150,187
6,554
16,294
-
9,762
69,065
23
-
18,817
17,336
32,400
-
-
7,638
135,396
-
-
108
6,068
65
36,762
_
506,475
_
711,148
____
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
_

Page 16

South Eastern Baptist Association

Notes to the Financial Statements (continued) For the Year Ended 31 December 2023

7. ANALYSIS OF SUPPORT COSTS

Unrestricted Funds
Restricted
Designated
General
Funds
£
£
£
Employment costs
-
-
-
Rental property costs
-
12,964
-
Insurance
-
1,841
-
Equipment
-
3,629
-
Telephone
-
2,967
-
Printing, postage and stationery
-
1,255
-
Trade subscriptions
-
3,534
-
Sundry expenses
-
6,075
-
Travel
-
426
-
Board costs
-
296
-
Interest payable (note 8)
-
12
-
Bad debts
-
3,763
-
_
_
_
-
36,762
-
_
_
_
Total 2022
-
40,040
-
_
_
____
8. INTEREST PAYABLE
Interest on net defined benefit pension liability (note 19)
9. INDEPENDENT EXAMINATION FEE
This is stated after charging:
Independent examination fee

Total
2023
£
-
12,964
1,841
3,629
2,967
1,255
3,534
6,075
426
296
12
3,763
_
36,762
_
40,040
_
Total
2023
£
12
__
12
_
Total
2023
£
4,920
_
4,920
_
Total
2022
£
52
12,004
1,593
3,655
2,832
534
3,130
4,880
3,624
141
7,595
-
_
40,040
_
Total
2022
£
7,595
_
7,595
_
Total
2022
£
4,560
_
4,560
_

Page 17

South Eastern Baptist Association

Notes to the Financial Statements (continued) For the Year Ended 31 December 2023

10. TRUSTEE REMUNERATION AND EXPENSES

During the year the association made transactions with trustees, all of which the trustees considered as permitted by the charity’s commission.

Trustees’ remuneration is paid for ministry work and is not connected with their duties as trustees. In the year, Trustees Revd J L Hunt, and Revd P J Kerley and his spouse, received remuneration. As part of a structural adjustment within the Charity, the Regional Ministers resigned their commission as Trustees on 15 March 2023, and as such, their salaries, and other benefits (including employers pension contributions,) set out below are the amounts received until this date:

Revd P J Kerley
Mrs P Kerley
Revd J L Hunt
2023
£
8,089
2,185
9,456
____
2022
£
36,543
10,256
24,451
____

Revd J L Hunt and Revd P J Kerley also received a housing allowance which totalled £8,100 at the date of their resignation.

During the year, 6 (2022: 3) trustees were reimbursed for expenses amounting to £4,571 (2022: £10,879). This amount includes expenses reimbursed to Revd J L Hunt and P J Kerley during their time as trustees. The Regional Ministers continue to be employed in their ministerial roles.

11. STAFF COSTS

Staff costs were as follows:

Wages and salaries
Social security costs
Pension Costs
2023
£
150,187
6,554
16,294
_
173,035
_
2022
£
191,557
10,741
20,726
_
223,024
_

The monthly average number of persons (including senior management team) employed by the charity during the year (per headcount) were as follows:

Full Time Staff
Part Time Staff
2023
No
3
6
_
9
_
2022
No
5
5
_
10
_

One employee received remuneration of between £60,000 and £69,999 in the year (2022: Nil)

The key management of the association comprise of the senior management team noted on page 3. The total employee benefits of the key management personnel of the charity were £77,722 (2022: £110,976). Included in this amount is Revd J L Hunt’s housing allowance of £16,800 for the full year.

Page 18

South Eastern Baptist Association

Notes to the Financial Statements (continued) For the Year Ended 31 December 2023

12. TANGIBLE FIXED ASSETS

Land and
Furniture and
Buildings
Equipment
£
£
Cost
At 1 January 2023
3,252
4,919
_
_
At 31 December 2023
3,252
4,919
_
_
Depreciation
At 1 January 2023
195
4,919
Depreciation charge
65
-
Disposals
_
_
At 31 December 2023
260
4,919
_
_
Carrying amount
At 31 December 2022
3,057
-
_
_
At 31 December 2023
2,992
-
_
_
13. INVESTMENT PROPERTY
Fair value
At 1 January 2023
FV gains/losses on investment properties
At 31 December 2023
Total
£
8,171
_
8,171
_
5,114
65
_
5,179
_
3,057
____
2,992
____
Total
£
562,500
19,750
_
582,250
_

14. FIXED ASSET INVESTMENTS

Listed
Unlisted
Subsidiary -
Investments
Investments
Bread of Life
£
£
£
(See note 25)
Market Value
At 1 January 2023
140,083
12,015
10
Revaluations
11,696
-
-
_
_
_
At 31 December 2023
151,779
12,015
10
_
_
_
Total
£
152,108
11,696
_
163,804
_

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 2023

15. DEBTORS

Loans to churches
Prepayments and accrued income
Other debtors
2023
£
131,244
22,334
5,643
_
159,221
_
2022
£
178,477
1,200
6,093
_
185,770
_

16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023
£
Other creditors
299
Accruals and deferred income
20,912
_
21,211
_
16A. DEFERRED INCOME
2023
£
At 1 January 2023
37,382
Amounts released during the year
(37,382)
Amounts deferred during the year
8,661
_
At 31 December 2023
8,661
_
Income has been deferred as it was received in advance of the conference held in 2023.
17. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2023
£
Other loans
-
____
2022
£
274
43,513
_
43,787
_
2022
£
9,746
(9,746)
37,382
_
37,382
_
2022
£
75,000
____

Other loans included a £75,000 Baptist Union Strategy Loan which was paid off in the year..

Page 20

Notes to the Financial Statements (continued) For the Year Ended 31 December 2023

South Eastern Baptist Association

18. PROVISION FOR LIABILITIES

Defined Benefit pension scheme liability (note 19) 2023
£
-
____
2022
£
-
____

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.

The Scheme, previously known as the Baptist Ministers’ Pension Fund, started in 1925, but was closed to future accrual of defined benefits on 31 December 2011. Prior to this date the main benefit provided through the Defined Benefit (DB) Plan was a pension of one eightieth of final minimum pensionable income for each year of pensionable service together with additional pension in respect of premiums paid on Pensionable Income in excess of Minimum Pensionable Income.

From January 2012, pension provision is being made through the Defined Contribution (DC) Plan within the Scheme. In general, members pay 8% of their Pensionable Income and employers pay 6% of members’ Pensionable Income into individual pension accounts, which are operated and managed on behalf of the Pension Trustee by Broadstone Corporate Benefits Ltd. 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 if they are unable to work due to long-term incapacity. This income protection policy has been insured by the Baptist Union of Great Britain with Aviva Limited.

The Scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. Because it is not possible to attribute the Scheme’s assets and liabilities to specific employers, the scheme is accounted for as if the Scheme were a defined contribution scheme.

The Regional Ministers and some members of the Association Team are eligible to join the Scheme.

Actuarial valuation as at 31 December 2019

A formal valuation of the DB Plan as at 31 December 2019 was carried out by a professionally qualified Actuary using the Projected Unit Method. At the valuation date the market value of the DB Plan assets was £298 million, whilst the level of assets needed to pay benefits was £316m, giving a deficit of £18m (equivalent to a past service funding level of 94%). The Church and the other participating employers in the DB Plan are collectively responsible for funding this deficit.

The key financial assumptions underlying the valuation were as follows

inancial 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 Increase Adjustment (above CPI) 0.50
Pre-retirement assumed investment returns (gilt yield plus 1.75% pa) 2.95
Post retirement assumed investment returns (including benefits matched 1.70
by the insurance policy) (gilt yield plus 0.5% pa)
Minimum Pensionable Income increases (CPI plus 0.5%) 3.20
Deferred pension increases (based on RPI)
Pre April 2009 3.20
Post April 2009 2.50
Pension increases
Based on CPI with an annual floor of 0% and annual cap of 5% 2.70

Page 21

South Eastern Baptist Association

Notes to the Financial Statements (continued) For the Year Ended 31 December 2023

19. PENSION COMMITMENT – continued

Mortality is assumed in accordance with 80% of the S3NA standard mortality table. Future improvements projected from 2013 in line with the “CMI 2019” projection with a long-term rate of improvement of 1.75% p.a. for males and 1.5% p.a. for femaleswith 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 2022.

Recovery Plan

In addition to the contributions to the DC Plan set out above, where a valuation of the DB Plan reveals a deficit the Trustee and the Council agree to a rate of deficiency contributions from churches and other employers involved in the DB Plan. Following the 2019 valuation a Recovery Plan was signed in September 2020 under which deficiency contributions are payable until June 2026. These contributions were broadly based on each employer's membership at 31 December 2014 and increase annually in line with increases to Minimum Pensionable Income as defined in the Rules.

On 30th June 2022 the Baptist Pension Scheme signed an agreement with the insurance company Just Group (“Just”) to secure DB Plan members’ pension benefits. Just are now providing financial backing for all pensions provided through the Scheme’s DB Plan and following this transaction, the Scheme no longer has a shortfall. An updated Recovery plan was then signed in August 2022 under which recovery contributions from each participating employer in the DB Plan reduced to £1 per month from August 2022.

Movement in Balance Sheet liability

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
2023
£
-
12
-
(12)
_
-
_
2022
£
59,200
(7,595)
(51,605)
_
-
_

The Association has been advised that the cost for the Association to buyout their Pension Scheme liabilities as at 31 December 2023 was approximately £Nil (2022: £ Nil).

Page 22

South Eastern Baptist Association

Notes to the Financial Statements (continued) For the Year Ended 31 December 2023

20. STATEMENT OF FUNDS

STATEMENT OF FUNDS – CURRENT YEAR

Unrestricted funds
General funds
Revaluation reserve
Unrestricted income fund
Designated funds
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
2023
£
79,394
411,283
__
490,677
(57,386)
521,980
250,883
7,065
75,000
14,675
3,287
_
815,594
_
1,306,271
__
88,193
74,205
-
161
2,108
28,506
6,931
-
11,405
-
_
211,509
_

1,517,780
______
Incoming
Resources
£
-
549,593
___
549,593
-
-
-
-
-
-
-
__
-
_
549,593
_
-
-
-
-
-
15,804
-
1,623
-
40
___
17,467
__
567,060
_
Resources
Expended
£
-
(375,417)
__
(375,417)
-
-
-
-
-
-
-
_
-
_
(375,417)
__
-
-
-
-
-
(53,517)
-
(5,037)
(11,405)
(61,099)
_
(131,058)
_

(506,475)
______
Transfers
& Gains/
(losses)
£
19,750
(87,322)
__
(67,572)
57,386
-
-
(7,065)
-
(14,675)
(3,287)
_
32,269
_
(35,303)
__
-
-
-
-
-
9,207
(6,931)
3,414
-
61,059
_
66,749
_

31,446
______
Balance at
30 December
2023
£
99,144
498,137
__
597,281
-
521,980
250,883
-
75,000
-
-
_
847,863
_
1,445,144
__
88,193
74,205
-
161
2,108
-
-
-
-
-
_
164,667
_

1,609,811
______

Page 23

South Eastern Baptist Association

Notes to the Financial Statements (continued) For the Year Ended 31 December 2023

20. STATEMENT OF FUNDS – continued

The specific purposes for which the funds are to be applied are as follows:

Designated funds

Building Loan Fund - Monies designated for use by the Association to assist member churches in respect of property purchase, major improvements, and major repairs.

Capital Reserve - Capital income available for the general purpose of the Association mainly used in connection with the purchase of properties.

Investment Reserve - Funds transferred from the General Fund to enable the original Association to purchase shares from the Baptist Insurance Company plc (BIC). During the period, the Trustees have reviewed the position and decided that no further shares will be purchased in BIC, and as such the remaining balance has been transferred back to General funds at the period end.

Zion Fund - Funds received from the closure of a church for the general purposes of Kent Baptist Association and used to purchase a Manse for the Regional Minister.

The Evangelism Fund - The Evangelism fund relates to funds held in investments, previously held by the Baptist Union, transferred to the charity during 2013.

La Ferve - This is a Baptist Union fund which was transferred across to SEBA in earlier years. The funds are held for Mission work. During the period, the Trustees reviewed the position on this designated fund and agreed to re-allocate the balance remaining to the General Fund, to further support the general mission work of the Charity.

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 congregations.

Kent Union Fund - Income received from the Kent Union Fund, to be 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. During the period, this project was fully transferred from SEBA to the Kent Thameside Church, (known as Ebbsfleet Baptist) and as such the fund was closed at year end.

Baptist Grant - Monies received from the Baptist Union for a specific Mission Project. During the period, the Trustees reviewed this fund and felt it could be utilised in line with their other restricted projects, and as such the balance of the fund was transferred into the Bread of Life project fund.

Northfleet Project – Although part of the Kent Thameside Church Plant Project operated in the Northfleet North area with it's own pioneer minister. Funding of the project was provided by SEBA each year to balance the costs involved and transferred accordingly. The final amount due to the Project was transferred to the Project in 2023, and in line with the Kent Thameside Church Plant Project, the Project was transferred and as such the fund was closed.

KTCP Bus Project – Relates to funds received towards the purchase of a vehicle or other work within the project. The final amount due to the Project was transferred to the Project in 2023, and in line with the Kent Thameside Church Plant Project, the Project was transferred and as such the fund was closed.

Bread of Life Project – A pioneering mission project to transform a disused church building, in a parade of shops, into a coffee shop-bakery-church to serve the local community and establish a worshipping community.

Page 24

South Eastern Baptist Association

Notes to the Financial Statements (continued) For the Year Ended 31 December 2023

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
2022
£
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
______
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
& Gains/
(losses)
£
(25,000)
(197,936)
__
(222,936)
-
-
-
-
-
-
-
_
-
_
(222,936)
__
-
-
-
-
-
-
-
14,788
-
270,310
_
285,098
_

62,162
______
Balance at
30 December
2022
£
79,394
411,283
__
490,677
(57,386)
521,980
250,883
7,065
75,000
14,765
3,287
_
815,594
_
1,306,271
__
88,193
74,205
-
161
2,108
28,506
6,931
-
11,405
-
_
211,509
_

1,517,780
______

Page 25

South Eastern Baptist Association

Notes to the Financial Statements (continued) For the Year Ended 31 December 2023

21. ANALYSIS OF NET ASSETS BETWEEN FUNDS

ANALYSIS OF NET ASSETS BETWEEN FUNDS – CURRENT YEAR

Unrestricted
Funds
2023
£
Tangible fixed assets
2,992
Investment Property
582,250
Fixed asset investments
163,804
Current assets
717,309
Creditors due within one year
(21,211)
Creditors due in more than one year
-
Provisions for liabilities and charges
-
_
1,445,144
___
Restricted
Funds
2023
£
-
-
-
164,667
-
-
-
_
164,667
_
Total
Funds
2023
£
2,992
582,250
163,804
881,976
(21,211)
-
-
_
1,609,811
___

ANALYSIS OF NET ASSETS BETWEEN FUNDS – PRIOR YEAR

Unrestricted
Funds
2022
£
Tangible fixed assets
3,057
Investment Property
562,500
Fixed asset investments
152,108
Current assets
707,393
Creditors due within one year
(43,787)
Creditors due in more than one year
(75,000)
Provisions for liabilities and charges
-
_
1,306,271
___
Restricted
Funds
2022
£
-
-
-
211,509
-
-
-
_
211,509
_
Total
Funds
2022
£
3,057
562,500
152,108
918,902
(43,787)
(75,000)
-
_
1,517,780
___

Page 26

South Eastern Baptist Association

Notes to the Financial Statements (continued) For the Year Ended 31 December 2023

22. RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net expenditure for the year (as per Statement of Financial Activities)
Adjustment for:
Depreciation charges
Fair value (gains)/losses on investment property
Fair value (gains)/losses on fixed asset investments
Dividends, interest and rents from investments
Decrease in debtors
(Decrease)/Increase in creditors
Net cash used in operating activities
2023
2022
£
£
92,031
(354,546)
65
3,263
(19,750)
25,000
(11,696)
17,564
(47,976)
(25,303)
26,548
86,400
(97,576)
27,790
_
_
(58,354)
(219,832)
_
_

23. ANALYSIS OF CASH AND CASH EQUIVALENTS

Cash and cash equivalents 2023
£
722,755
_
722,755
_
2022
£
733,133
_
733,133
_

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 £250,077 (2022: £209,915) were received in this respect.

The charity has not entered into any other related party transactions other than those disclosed within the financial statements.

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 2023. At the year end 31 December 2023, 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 2023 the following was noted:

Profit and Loss Account
Turnover
Cost of sales
Administration expenses
Other operating income
Profit for the financial period
Net Assets at 31 December 2023
2023
£
24,252
(11,907)
(92,751)
87,199
_
6,793
_
_
41,589
_

Page 27