Naval & Military Bible Society Annual Report and Accounts For the year ended 31 December 2020 Registered Charity No. 1102593 Registered Company No. 5021052 Twstses, Annual Report for year ended 31 December 2020 Page 1 Naval & Military Bible Society Trustees, Annual Report for year ended 31 December 2020 Constitution The Naval Military & Air Force Bible Society was founded in 1779 and established on 20 January 2004 as a company limited by guarantee (No. 5021052) and a registered charity (No. 1102593) governed by its memorandum and articles of association. At the meeting of trustees on 30 June 2017, it was agreed to revert the name of the Society to Naval & Military Bible Society, reflecting the service to Merchant seafarers and all military and service personnel across the globe. Directors and trustees The directors of the charitable company ( the Society") are its trustees for the purpose of charity law and throughout this report are collectively referred to as the trustees- The Reverend S P Springett RNR {Chair from 1 April 2017) Colonel J Lewis The Revd J Pitkin (Squadron Leader RAF retired) Lieutenant Colonel {Retd} D G Vin￿nt MBE Doctor P A Lucas Mr S Rivers The Reverend K Bassett (Lieutenant RNR) Paddy Gallagher (Resigned 2410312021) Society director and company secretary: Mr A G Dakin OBE (Wing Commander retired) Advocacy Offlcer: Mrs Carey Rivers Registered offlce: Unit 24, Shrivenham Hundred Business Park, Watchfield. ￿ltshIre SN6 8TZ Independent Examiner: Clifford Fry & Co, St Mary's House, Netherhampton, Salisbury, SP2 8PU Bankers: Barclays Bank PLC, PORTSMOUTH 2, Leicester. Lei￿Stershire, LE87 2BB Trustees, Annual Report for year ended 31 December 2020 Pag8 2 Naval & Military Bible Society Aim and purposes The Society's aim and objectives, as set out in the company's Memorandum of Association, are: To advance the Christian religion by distributing, either free of charge or by sale, copies of the Bible, New Testaments and Psalms and Christian resources to the United Kingdom amed forces personnel and their associates, to the forces of the Cotnmonwealth and other nations, merchant seafarers, United Kingdom police, fire and rescue Se￿iceS and others. Public Benefit The Society's beneficiaries include United Kingdom amied forces personnel and their associates, the forces of the Commonwealth and other nations, merchant seafarers, United Kingdom police, fire and rescue services and others in whatever geographical area they may be seNing. Our literature is tailored to meet the needs of our beneficiaries and we are a gifting Society that gratefully receives donations. The Society's literature addresses the needs of armed forces, personnel and their families faced with bereavement and Ihe effects of combat stress and separation, and merchant seafarers and their families in the current climate of job insecurity, piracy, hostage taking and isolation. It is mainly ordered and distributed through military chaplains and merchant seafarers, missions. It aids the building of resilience and good character, education in moral and ethical values and giving spiritual strength and guidance for those of the Christian faith. The Charity Commission's guidan￿ and principles on public benefit are also reflected in both the planned objectives and the year's activities. Planned activities for 2021 The Society's core business remains the distribution of Bibles and New Testaments with bespoke cover designs for service personnel and seafarers and cadets. The effects of the COVID-19 pandemic throughout 2020 will conllnue to affect the management and mission of the Society, but NMBS will progress the transform of its processes and work patterns. The main additional activittes are as follows= Transfer our business address lo be co-located to the Armed Forces Christian Union (based at Shrivenham Hundred Business Park) Transition our accounting and payroll services from the Royal Naval Benevolent Trust to 'in-house' Publications commissioned in 2020: Seafarer's LukelAct Diglot EnglishlT8galog £922 Softback New Testament and Psalms NIV15 varianlsl £43,206 Hardback Bibles14 variants) £5.232 Forgiveness Matters £850 Inner Struggles Military 2nd Edition (Army) £7,000 Gift ol God (English and Russian, plus a KJV variant for Mobile, All £1.454 Commando Prayer Book £1,741 Cadet Prayer Book £2,142 Moral Compass Edition £1,519 Seafarer's Russian New Testament £2,600 Inner Struggles- Royal Navy Sdilion £6,696 H8rdback Bibles (3 variants) £5.662 Seafarers New Teslamgnt Diglol English/Tagalog £12750 Softb8ck New Teslam8nt and Psalms NIV (8 variants) £40,000 Entdes italics where ordered in 2020, but with a majority of expenditure OG¢uring in 2021 Trustees, Annual Report for year ended 31 December 2020 Page 3 Naval & Military Bible Society Governance A Board of Trustees, comprising officers representing the UK'S armed forces. military cadet forces and merchant seafarer missions, governs the Society, with advi￿ from serving chaplains to Her Majesty's Forces. The Board meets every four months. An Executive Director, appointed by the trustees, manages day-to-day activities, assisted by an Advocacy Officer. No employees receive benefits, excluding pension costs, of more than £60.000. Risk Management In line with recommended practice, the Board regularly reviews the financial and operational risks to which it may be exposed. The trustees are satisfied that systems are in place to mitigate risk and take action to alleviate such risks where necessary. Finances The £179,000 income in 2020 represents a 19Yo increase from £151,000 in 2019. The stock value at year end was £100,000. Reserves Policy The Society'5 policy is to keep reserves to a minimum. Nonetheless, it recognizes the need to have an operating balance sufficient to cover minimum operating costs for a 6-month period if it became ne￿SSary to close the Society. Efforts have been made in recent years to redu￿ opersating costs, such that the minimum operating balance is now £20,000. However, to enable orders to be placed in a timely fashion it is the aim to maintain a month end balance of £50,000, which was achieved in December 2020. The trustees will keep this figure under review, considering the balan￿ be￿een the increase in activity and the welcome transition to a more financially efficient operating model. Trustees responsibilities in relation to financial statements a) For the period ended 31 st December 2020, the company was entitled to exemption under section 249A (2). b) Trustees have not required Ihe company to obtain an audit in accordance with section 249B (2). c) The trustees acknowledge their responsibility for: i) ensuring the company keeps accounting records which comply with section 221 and ii) preparing accounts which give a true and fair view of the stale of affairs of the company as at the end of the financial year, and of its profit or loss at the end of the financial year in accordance with the requirements of section 226, and which otherwise comply with the requirements of the Companies Act relating to accounts, so far as applicable to the company. (d) The accounts have been prepared in accordance with the special provisions of the Companies Act 2006 relating to small companies. Trustees. Annual Report for year ended 31 De¢embor 2020 Page 4 Naval & Military Bible Society In doing so, the trustees have: - Selected suitable accounting policies and then applied them consistently; - Made judgments and estimates that are reasonable and prudent; - Prepared financial statements on the going concern basis, it being appropriate to presume that the charity will continue in business; - Exercised their responsibility for maintaining proper accounting records that disclose, with reasonable accuracy at any time, the financial position of the charity and enables them to ensure that the financial statements comply with the Companies Act 2006. - The trustees have also safeguarded the assets of the charity and taken reasonable steps for the prevention of fraud and other irregularities. The trustees gave their time voluntarily and received no benefit from the charity. By order of the trustees, Simon Springett Chaplain RNR Chair of Trustees 20 February 2021 Page 5 Trustees' Annual Report for year ended 31 December 2020 Naval & Military Bible Society Trustees, Annual Report for year ended 31 December 2020 Naval & Military Bible Society Statement of Financial Activities Year Ending 31st Decembgr 2020 Year ended 31 December 2020 Incoming Resources Yoar ended 31 December 2019 Donations Donors- Regular Donors - Non-Regul8r Gift Aid Tax Refund Donations MOD Non-MOD Totsl Donations Trusls & Legacies Other Gifts Interest Receivable Total Incoming Resources 12,026 11,812 16,913 54,041 23,837 (3301 70,955 1,072 65.1( 87,977 12,480 13,030 153,083 176,590 25,490 97.517 52,638 897 2,428 £179 019 £151 Resources Expgnded Charltable Expendlturo Distribution Costs Purchase of Literature Storage & Dislribullon Salaries & Pension Travel Insurance Administratlon Expenses Rent and Service Charge5 IT Costs Office Expenses Stationery Telephone Postage Refresh & Entertain Website Subscription Fees Other Expenses {Incl. Travell Depreciation Management & Admlnl8tration Costs 73,048 819 16,270 17,216 73.867 53,113 8,971 650 33,487 66.165 12,019 693 4,321 2,325 3,831 2,612 422 960 (8621 53 2,850 537 3,742 1,200 200 22,248 12,422 32,007 Legal fees Accountancy Audit Fees 435 180 615 180 180 Total Expendlture £149 638 £144 551 Nel Expendltur¢ for the Year Total Funds Brought Forwaid Total Funds Carrled Fonvard 29,381 20,087 6,501 13,586 £2 Trustees, Annual Report for year ended 31 December 2020 Page 6 Naval & Military Bible Society Trustees, Annual Report for year ended 31 December 2020 (continued) Naval Military & Air Force Bible Society Balance Sheet as at 31 December 2020 31 Decembér 2020 31 Decemb*r 2019 Flx¢d asB¢ts urnrture and equipm8nt.' cost 470 470 depreciation 447 23 353 117 Curfent assèts Debtors and pr8paym8nts 135 500 Bank accounts Petly cash 24 24 50,072 20,883 8s'. Current kabllitl&s Creditors and accnJ8d chaFg8S 627 913 £20,087 Gon8T81 Fund £49 468 £20 087 The directors are satisfied that the company is entitled to exemption from the requirement to obtain an audit under section 477 of the Companies Act 2006 and that members have not required the company to obtain an audit in accordance with section 476 of the Act. The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts. The accounts have been prepared with the provisions in Part 15 of the Companies Act 2006 applicable to companies subject to the small companies, regime. Simon Springett Chaplain RNR (Chair of Trustees) 20 February 2020 Trustees. Annual Report for year ended 31 D￿mber 2020 Page 7 Naval & Military Bible Society Trustees, Annual Report for year ended 31 December 2020 (continued) Accounting policies Basis of preparation The accounts are prepared under the historical cost convention in accordance with the Statement of Recommended Practice (FRS 102) - Accounting and Reporting by the Charities Act 2011 and other appropriate accounting standards. Incoming resources Donations and legacies All income from donations and legacies is accounted for on an accruals basis. This policy is applied to legacy income where the amounts and timing of receipts can be accurately ascertained. Tax credits on Gift Aid donations and on income from legacies have also been recorded on an accruals basis. Charitable activlties In accordan￿ with the primary objective of the Society, printing and distribution costs are written off to revenue when incurred. These costs represent the direct cost of the Society's charitable activities. Effects of Covid-19 restrictlons The COVID-19 pandemic had the effect of making it difficult for the Advocacy Officer to complete a majority of her duties, due to other trusts and organisations reducing their operational tempo, accordingly the AO was placed initially on 1000/D furlough and then reduced to 50 % when the lockdowns were lifted. Prior to the pandemic the Society had already moved to a homebased operation as part of the overhead efficiency programme, so day-to-day operations were not affected. Intiallly, demand for our resour￿8 reduced significantly, however after a few weeks the number of orders increased beyond traditional levels. This has had the effect of placing additional presuure on limited resources. The Society was fortunate that income was not significantly affected by the pandemic with a slight reduction in individual giving ,and some organisations that donate out of business profits ,balan￿d by increased giving from a number of Trusts. However, the increase in income was not enough to cover the increase in demand and some printing activity was shifted so expenditure would fall in 2021. Admlnistration exponses These are the costs incurred in the management, finance and general administration of the Society's activities. It is not meaningful to apportion these costs by activity, which is a general requirement of SORP (FRS 102), as the Trust has only one principal activity. Trustees, Annual Report for year ended 31 December 2020 Page 8 Naval & Military Bible Society Stocks and work in progress Substantial stocks were on hand as at 31 December 2020, the cost of which, as ascertained by the directors, was £100,000. However, in line with the policy stated above, this amount has not been included in the accounts. Governance costs These are the costs incurred other than in day-to-day administration of the Society such as legal fees and the fees of the independent examination. The Society effectively only has one activity, so all costs are related to this. Trustees were offered claim forms for expenses and made claims where appropriate. Trustees receive no remuneration for time. Aggregate Trustee donations were £4,160. Trustees are generally recruited through personal introductions, but enquiries (to the Chair of Trustees) from supporters who wish to explore whether they could serve in this way are always welcome. A skills audit was conducted in-year, to ensure balance and cover of necessary skills. Aggregate employee benefits are disclosed in the statement of financial activities. Restrictsd Funds No restricted funds were received during the year. Going Concern Whilst finances are tight, there are no material Un￿rtaIntieS about the charity's ability to continue. Tangible fixed assets Individual fixed assets costing £250 or more are capitalised. All furniture and equipment is held as operating assets. Depreciation is provided for at the following annual rates on a straight-line basis.. Furniture and equipment between 100/0 and 20% Computers 330/0 Creditors and accrued charges 2020 201g Trade creditors Other Creditors and accrued charges 447 913 Commitments 2020 2019 Capital commitments Trustees, Annual Report for year ended 31 December 2020 Page 9 Naval & Military Bible Society INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 31 DECEMBER 2020 I report on the accounts of the company for the year ended 31st December 2020, which are set out on pages 610 10. Respective responsibilitles of trustees and examiner The trustees (who are also the directors of the company for the purposes of company lawl are responsible for the preparation of accounts, The trustees consider that an audit is nat required for this year under section 144{2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed. l am qualified to undertake the examinalion being a member of the Association of Chartered Certified Accountants. Having satisfied myself Ihat the charity is not subject to audit under Part 16 of the Companies Act 2006 and is eligible for independent examination, il is my responsibility to.. examine the accounts under section 145 of the 2011 Act to follow the procedures laid down in the general Directions given by the Charity Commission under section 145{5}(b) of the 2011 Acl and to state whether particular rnatters have come to my attention. Basis of independent examinerfs report My examination was carried out in accordance with the general directions given by the Charity Commission. An examination Includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records.11 also includes a consideration of any unusual ilems or disclosures in the accounts and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as tr) whether the accounts present a 'true and fair view, and the report is limtt8d to those matters set out in lh8 Statement below. Independent examlner's statement In connection with my examination, no matter has come to my attention.. (1> which gives me reasonable cause to believe that in any material respect the requirements a. to keep accoLFnting records in accordance with section 386 of the Companies AGI 2006 and., b. lo prepare acGounls which accord with the accounting records, comply with the accounting requirement of section 396 of the Companies Act 2006 and with the accounting requirements of the Charities AGt have not been met., or (2} to which, in my opinion, attention should be drawn in order to enab18 a proper understanding of the accounts to be reached. Erica Parker FCCA St Mary's House Netherhampton Salisbury SP2 8PU 23 September 2021 Trustees, Annual Report for yeai ended 31 DeGember 2020 Page 10