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2022-12-31-accounts

REGISTERED COMPANY NUMBER: 04336086 (England and Wales) REGISTERED CHARITY NUMBER: 1102735

Report of the Trustees and

Financial Statements

for the Year Ended 31 December 2022

for

South Wales Baptist Association (BUGB)

Xeinadin Audit Limited Chartered Accountants & Statutory Auditors Highdale House 7 Centre Court Treforest Industrial Estate Pontypridd Rhondda Cynon Taff CF37 5YR

South Wales Baptist Association (BUGB)

Contents of the Financial Statements for the Year Ended 31 December 2022

Page
Report of the Trustees 1 to 5
Report of the Independent Auditors 6 to 9
Statement of Financial Activities 10
Balance Sheet 11
Notes to the Financial Statements 12 to 21
Detailed Statement of Financial Activities 22 to 23

South Wales Baptist Association (BUGB)

Report of the Trustees for the Year Ended 31 December 2022

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 December 2022. The trustees have adopted the provisions of 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).

OBJECTIVES AND ACTIVITIES

Objectives and aims

The charity's objectives are the advancement of 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 Principle of the Baptist Union of Great Britain.

South Wales Baptist Association is one of thirteen associations of Baptists Together (Baptist Union of Great Britain). SWBA is made up of over 125 churches who are seeking to share the good news of Jesus with their local community. SWBA operates as a charity under number 1102735.

Public benefit

In the course of their management of the Association, the trustees have regard for the public benefit provided by the Association's activities, and this is a feature both of the Association's work in support of its member churches (independent charities), and of its own direct activities, as follows:

The Association operates by providing support to member churches as they seek to work in their own communities. This support includes advice and guidance to ministers and leaders; mission consultations; assistance, advice and training in safeguarding children and adults as well as practical and financial assistance through loans and grants as appropriate. It is the intention of the Association to help enable churches to respond to their calling and fulfill their public benefit through their normal church activities and the provision of facilities to be used by the wider community as well as the advancement of the Christian faith. The Association acts directly in a number of areas including the selection of individuals to train for ministry, the oversight of newly accredited ministers, arranging training and conferences for ministers and church leaders, involvement in the management of Chaplaincy services at the University of South Wales and engaging at a number of levels with the wider community on behalf of Baptists.

ACHIEVEMENT AND PERFORMANCE

Charitable activities

There was one staff change during the year.

Revd Emma Mohr finished work as a Regional Minister in July 2022.

The Association continued to work throughout the year with the West and South Partnership, made up of South Wales, South West and Southern Counties Baptist Associations and the West of England Baptist Network. Two Partnership Ministerial Recognition Committee meetings were held for candidates for ministry to explore their calling. The partnership grants committee met to allocate Home Mission grants.

The Association continued to work with the Baptist Union of Wales (BUW). The two key events are the annual meetings known as Momentum and the Ministers' Conference. The Ministers' Conference took place online, and Momentum was a special BUW anniversary event at Trinity St David's College in Carmarthen entitled "Prayer, Picnic and Party'.

The Association held a celebration for teaching, and information gathering which included the AGM of the Association. This took place at Bethel Baptist Church in Pontyclun, although live streaming was also available. Attendance was good, with encouraging feedback.

A Newly Accredited Ministers programme was provided.

Supporting Churches

Regular 'Updates', 'E-news', Facebook and YouTube posts were the primary sources of information from the Association office to churches, Cardiff Baptist College, our Ministers and other interested parties. These provided information about local and national events, and enabled churches to share information about their local events with others across the Association.

Safeguarding training covering the Baptist Union of Great Britain's 'Excellence in Safeguarding' Levels 2 and 3 took place. Five online sessions took place, training 65 people. In-person sessions resumed in May and a further 230 were trained.

There were no serious safeguarding incidents to be reported in 2022.

Page 1

South Wales Baptist Association (BUGB)

Report of the Trustees for the Year Ended 31 December 2022

ACHIEVEMENT AND PERFORMANCE

Home Mission

Churches contributed £156,913.76 which was slightly more than our target of £150,000.

Home Mission Grants

The Association awarded a number of Home mission grants during 2022 amounting to £73,844.00 These included Mission through Ministry grants to Bethel BC (Senghenydd Project), The Church of the Resurrection and York Place BC; Special Ministry grants were awarded to The Summit Centre and Sudbrook Church plant; A Home Mission grant also benefitted Sports Chaplaincy UK, through the work of Steve Jones.

Supporting Ministers and Church Leaders

The Association provided a variety of means whereby Ministers and Church Leaders were supported and encouraged in their roles:

Settlements

The following settlements took place:

Darren Blaney to Hope Bridgend Philip Denyer to Aenon, Morriston Andrew Hubbard to Bethlehem, Thomastown Ande Mullin to Mount Calvary, Manselton Jeff and Linda Kim to High Street, Abersychan Cory Price to Bethel Central, Maesteg

SWBA Appointments

BMS Council

The SWBA was represented on the BMS Council by Gareth Wilde.

Property

The manses in Ely and in Aberdare were managed by My Lettings Limited and were occupied by tenants.

FINANCIAL REVIEW

Financial position

The charity showed a surplus of £247,262 for the year ended 31 December 2022. There was a surplus on unrestricted reserves of £139,413 after transfers between funds and a surplus on restricted reserves of £107,849. Both of these surpluses were largely driven by revaluations on the properties held by the charity.

Principal funding sources

The principal funding sources of the charity had been by way of grant from the Baptist Union of Great Britain made up of a Core Funding and a lump sum from the Home Mission fund based on a number of factors including the number of churches, the relative economic prosperity of the region and the Associations giving to Home Mission.

Investment policy and objectives

Aside from the restricted funds and retaining a prudent amount in reserves each year, most of the charity's funds are to be spent in the short to medium term and there are some funds for long term investment. The Trustees have the power to invest in such assets as they see fit, monies not immediately required for the furtherance of the Association's objectives.

Page 2

South Wales Baptist Association (BUGB)

Report of the Trustees for the Year Ended 31 December 2022

FINANCIAL REVIEW

Reserves policy

This Policy relates to South Wales Baptist Association and relates to the restricted and general funds held with the Monmouthshire Building Society, Baptist Union Corporation and Lloyds Bank.

The reserves of the Association at the end of the year were £1,010,762. Of the reserves, £554,817 was restricted and £455,945 was unrestricted. Included in unrestricted funds are £259,627 invested in fixed assets leaving £196,318.

Reserves policy

Why are reserves needed?

We aim ideally to hold in reserve sufficient money in our funds identified above to cover expenditure should there be a sudden drop in income, primarily from the Home Mission grant we receive.

Expenditure includes salary payments, running costs and grants given to Baptist projects and churches.

What level of reserves are needed.?

We aim ideally to hold in reserve sufficient money in our funds identified above to cover 6 months' expenditure (as recommended by the Charity Commission).

Based on the expenditure figure of £154,588 (excluding Home Mission Grants), this gives a required reserves figure of £77,294.

Should the association accounts identified above dip below the agreed reserve figure for a period beyond 6 months the Trustees should identify a financial plan.

This reserves policy shows good planning of resources and consideration of unforeseen occurrences on the financial income of the Association.

FUTURE PLANS

The Association plans continuing the activities outlined above in the forthcoming years subject to satisfactory funding arrangements and the drawdown of free reserves held by the Association. Expenditure will continue from the restricted funds in accordance with the terms associated with the restriction.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The Association is a charitable company limited by guarantee that was incorporated on 7 December 2001. The company was established under a Memorandum of Association that established the objects and powers of the charitable company and is governed under its Articles of Association. In the event of the company being wound up members are required to contribute an amount not exceeding £10 towards any shortfall.

Recruitment and appointment of new trustees

The directors of the company are also charity trustees for the purpose of charity law and under the company's Articles. In accordance with the Articles of Association all Trustees will serve for a period of three years. Of the Trustees appointed at the Annual General Meeting, at least one half of those elected shall be lay persons. Any person so appointed shall be eligible for re-appointment unless that person has immediately already served two consecutive three-year periods.

Organisational structure

The Association is governed by the Board of Trustees (Directors), and 14 people served as trustees during 2021. Trustees meet every two months with the Regional Ministers and Association Administrator. They are responsible for the strategic direction of the charity and the reporting to a Council of Churches.

Induction and training of new trustees

New Trustees are provided with essential information. Further training will be offered in future as the membership of the board changes. Various Charity Commission publications are made available together with the Memorandum and Articles of Association and the latest financial statements.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

04336086 (England and Wales)

Page 3

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Report of the Independent Auditors to the Members of South Wales Baptist Association (BUGB)

Opinion

We have audited the financial statements of South Wales Baptist Association (BUGB) (the 'charitable company') for the year ended 31 December 2022 which comprise the Statement of Financial Activities, the Balance Sheet and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Page 6

Report of the Independent Auditors to the Members of South Wales Baptist Association (BUGB)

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Page 7

Report of the Independent Auditors to the Members of South Wales Baptist Association (BUGB)

Our responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities including fraud and non-compliance with laws and regulations we have considered the following:

(a) The nature of the industry and sector, control environment and business performance;

(b) Results of the enquiries of management about their own identification and assessment of the risks of irregularities;

(c) Any matters we have identified having obtained and reviewed the charity's documentation of their policies and procedures relating to:

(i) identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;

(ii) detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;

(iii) the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;

(iv) the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:

(a) Timing of recognition of income

(b) Foreign currency translation.

In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory frameworks that the company

operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included UK Companies Act, , employment law, health and safety, pensions legislation and tax legislation.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the charity's ability to operate or to avoid a material penalty.

Audit response to risks identified

Our procedures to respond to risks identified included the following:

(a) Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

(b) Enquiring of management concerning actual and potential litigation and claims;

(c) Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; and

(d) Iin addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Page 8

Report of the Independent Auditors to the Members of South Wales Baptist Association (BUGB)

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

G Francis FCCA (Senior Statutory Auditor) for and on behalf of Xeinadin Audit Limited Chartered Accountants & Statutory Auditors Highdale House 7 Centre Court Treforest Industrial Estate Pontypridd Rhondda Cynon Taff CF37 5YR Date: .............................................

Page 9

South Wales Baptist Association (BUGB)

Statement of Financial Activities (Incorporating an Income and Expenditure Account) for the Year Ended 31 December 2022

31.12.22 31.12.21
Unrestricted Restricted Total Total
fund funds funds funds
Notes £ £ £ £
INCOME AND ENDOWMENTS FROM
Donations and legacies 3,809 - 3,809 1,377
Charitable activities
Subscriptions 16,623 - 16,623 18,141
Grants receivable 232,897 - 232,897 190,313
Other incoming resources 1,250 - 1,250 6,488
Investment income 2 13,487 2,426 15,913 20,605
Total 268,066 2,426 270,492 236,924
EXPENDITURE ON
Charitable activities
Charitable Activities
- - - -
Ministry 91,992 - 91,992 97,416
Mission 82,394 - 82,394 81,956
Establishment 45,397 - 45,397 43,794
Governance 3,308 - 3,308 2,308
Manses 4,414 - 4,414 2,635
Other (39,685) - (39,685) (14,877)
Total 187,820 - 187,820 213,232
Net gains on investments 59,154 105,423 164,577 356
NET INCOME 139,400 107,849 247,249 24,048
Transfers between funds 11 5,000 (5,000) - -
Net movement in funds 144,400 102,849 247,249 24,048
RECONCILIATION OF FUNDS
Total funds brought forward 316,532 446,968 763,500 739,452
TOTAL FUNDS CARRIED FORWARD 460,932 549,817 1,010,749 763,500

The notes form part of these financial statements

Page 10

South Wales Baptist Association (BUGB)

Balance Sheet 31 December 2022

Notes
FIXED ASSETS
Tangible assets
6
Investments
Investments
7
Investment property
8
CURRENT ASSETS
Debtors
9
Cash at bank and in hand
CREDITORS
Amounts falling due within one year
10
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
PENSION LIABILITY
12
NET ASSETS
FUNDS
11
Unrestricted funds
Restricted funds
TOTAL FUNDS		 Unrestricted
fund
£
143
19,471
240,000
259,614
2,219
226,552
228,771
(4,953)
223,818
483,432
(22,500)
460,932		 Restricted
funds
£
-
215,569
220,000
435,569
-
114,248
114,248
-
114,248
549,817
-
549,817		 31.12.22
Total
funds
£
143
235,040
460,000
695,183
2,219
340,800
343,019
(4,953)
338,066
1,033,249
(22,500)
1,010,749
460,932
549,817
1,010,749		 31.12.21
Total
funds
£
182,360
233,069
114,577
530,006
2,211
304,870
307,081
(5,287)
301,794
831,800
(68,300)
763,500
316,532
446,968
763,500

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees and authorised for issue on ............................................. and were signed on its behalf by:

............................................. D L Powell - Trustee

The notes form part of these financial statements

Page 11

South Wales Baptist Association (BUGB)

Notes to the Financial Statements for the Year Ended 31 December 2022

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value, as modified by the revaluation of certain assets.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Donations and voluntary income are accounted for gross when received.

Subscriptions are accounted for gross when received.

Income from grants is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred. Grants received for specific purposes are treated as restricted funds.

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 or building society.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Plant and machinery - 50% on cost and 33% on cost

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in the Statement of Financial Activities.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Pension costs and other post-retirement benefits

The charity participates in a defined contribution pension scheme for certain members of staff. The assets of the scheme are held separately from those of the charity. The contributions are charged to the income and expenditure account.

continued...

Page 12

South Wales Baptist Association (BUGB)

Notes to the Financial Statements - continued for the Year Ended 31 December 2022

1. ACCOUNTING POLICIES - continued

Pension costs and other post-retirement benefits

The charity participated in a Defined Benefit Pension Scheme until 31 December 2011 the payments of which are charged to the Statement of Financial Activities. Deficiency payments are also charged to the Statement of Financial Activities. From 1 January 2012 the scheme was replaced by a Defined Contribution Pension Scheme the payments of which are charged to the Statement of Financial Activities when incurred.

2. INVESTMENT INCOME

INVESTMENT INCOME
31.12.22 31.12.21
£ £
Rents received 12,763 14,045
Deposit account interest 3,150 6,560
15,913 20,605

3. NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

31.12.22 31.12.21
£ £
Auditors' remuneration 1,800 1,800
Other non-audit services 144 162
Depreciation - owned assets 1,371 1,899

4. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 December 2022 nor for the year ended 31 December 2021.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 December 2022 nor for the year ended 31 December 2021.

5. STAFF COSTS

The average monthly number of employees during the year was as follows:

31.12.22 31.12.21
Regional ministers 2 3
Administration 1 1
3 4

No employees received emoluments in excess of £60,000.

continued...

Page 13

South Wales Baptist Association (BUGB)

Notes to the Financial Statements - continued for the Year Ended 31 December 2022

6.
TANGIBLE FIXED ASSETS
Freehold
Plant and
property
machinery
£
£
COST
At 1 January 2022
180,846
50,618
Reclassification
(180,846)
-
At 31 December 2022
-
50,618
DEPRECIATION
At 1 January 2022
-
49,104
Charge for year
-
1,371
At 31 December 2022
-
50,475
NET BOOK VALUE
At 31 December 2022
-
143
At 31 December 2021
180,846
1,514
7.
FIXED ASSET INVESTMENTS
Listed
Unlisted
investments
investments
£
£
MARKET VALUE
At 1 January 2022
6,153
226,916
Additions
-
1,971
At 31 December 2022
6,153
228,887
NET BOOK VALUE
At 31 December 2022
6,153
228,887
At 31 December 2021
6,153
226,916
There were no investment assets outside the UK.
Cost or valuation at 31 December 2022 is represented by:
Listed
Unlisted
investments
investments
£
£
Cost
6,153
228,887		 Totals
£
231,464
(180,846)
50,618
49,104
1,371
50,475
143
182,360
Totals
£
233,069
1,971
235,040
235,040
233,069
Totals
£
235,040

continued...

Page 14

South Wales Baptist Association (BUGB)

Notes to the Financial Statements - continued for the Year Ended 31 December 2022

8. INVESTMENT PROPERTY

8. INVESTMENT PROPERTY
£
FAIR VALUE
At 1 January 2022 114,577
Revaluation 164,577
Reclassification 180,846
At 31 December 2022 460,000
NET BOOK VALUE
At 31 December 2022 460,000
At 31 December 2021 114,577
Fair value at 31 December 2022 is represented by:
£
Valuation in 2022 164,577
Cost 295,423
460,000
9. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.22 31.12.21
£ £
Prepayments and accrued income 2,219 2,211
10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.22 31.12.21
£ £
Accruals and deferred income 3,599 3,933
Other creditor 1,354 1,354
4,953 5,287

continued...

Page 15

South Wales Baptist Association (BUGB)

Notes to the Financial Statements - continued for the Year Ended 31 December 2022

11. MOVEMENT IN FUNDS

MOVEMENT IN FUNDS
Net Transfers
movement between At
At 1.1.22 in funds funds 31.12.22
£ £ £ £
Unrestricted funds
General fund 316,532 139,400 5,000 460,932
Restricted funds
Ministers Benevolent Funds
60,997 533 - 61,530
Ministers Benevolent Funds
2,273 35 - 2,308
Pomeroy Street Funds 7,997 36 - 8,033
Gorseinon Funds
4,668 21 - 4,689
Aberbargoed Funds 25,363 114 - 25,477
Capel Gwilym Funds 687 3 - 690
Manse Funds 150,408 1,323 - 151,731
Llandogo Monmouth Funds 11,098 50 (5,000) 6,148
Alexandra Rd Newport Funds
49,221 222 - 49,443
Pontyclun/Ely Funds 1,064 5 - 1,069
Nash Newport Funds 18,615 84 - 18,699
Ely Manse 114,577 105,423 - 220,000
446,968 107,849 (5,000) 549,817
TOTAL FUNDS 763,500 247,249 - 1,010,749

continued...

Page 16

South Wales Baptist Association (BUGB)

Notes to the Financial Statements - continued for the Year Ended 31 December 2022

11. MOVEMENT IN FUNDS - continued

Net movement in funds, included in the above are as follows:

Incoming Resources Resources Gains and Gains and Movement
resources expended losses in funds
£ £ £ £
Unrestricted funds
General fund 268,066 (187,820) 59,154 139,400
Restricted funds
Ministers Benevolent Funds
533 - - 533
Ministers Benevolent Funds
35 - - 35
Pomeroy Street Funds 36 - - 36
Gorseinon Funds
21 - - 21
Aberbargoed Funds 114 - - 114
Capel Gwilym Funds 3 - - 3
Manse Funds 1,323 - - 1,323
Llandogo Monmouth Funds 50 - - 50
Alexandra Rd Newport Funds
222 - - 222
Pontyclun/Ely Funds 5 - - 5
Nash Newport Funds 84 - - 84
Ely Manse - - 105,423 105,423
2,426 - 105,423 107,849
TOTAL FUNDS 270,492 (187,820) 164,577 247,249

continued...

Page 17

South Wales Baptist Association (BUGB)

Notes to the Financial Statements - continued for the Year Ended 31 December 2022

11. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

Net Transfers Transfers
movement between At
At 1.1.21 in funds funds 31.12.21
£ £ £ £
Unrestricted funds
General fund 287,270 18,909 10,353 316,532
Restricted funds
Student Fund 605 3 (608) -
Ministers Benevolent Funds
60,049 948 - 60,997
Ministers Benevolent Funds
2,269 4 - 2,273
Pomeroy Street Funds 7,960 37 - 7,997
Gorseinon Funds
4,645 23 - 4,668
Aberbargoed Funds 25,240 123 - 25,363
Capel Gwilym Funds 684 3 - 687
Llanhilleth Church 243 2 (245) -
Manse Funds 148,919 1,489 - 150,408
Llandogo Monmouth Funds 16,919 2,179 (8,000) 11,098
Alexandra Rd Newport Funds
48,991 230 - 49,221
Pontyclun/Ely Funds 2,551 13 (1,500) 1,064
Nash Newport Funds 18,530 85 - 18,615
Ely Manse 114,577 - - 114,577
452,182 5,139 (10,353) 446,968
TOTAL FUNDS 739,452 24,048 - 763,500

continued...

Page 18

South Wales Baptist Association (BUGB)

Notes to the Financial Statements - continued for the Year Ended 31 December 2022

11. MOVEMENT IN FUNDS - continued

Comparative net movement in funds, included in the above are as follows:

Incoming Resources Resources Gains and Gains and Movement
resources expended losses in funds
£ £ £ £
Unrestricted funds
General fund 231,950 (213,232) 191 18,909
Restricted funds
Student Fund 3 - - 3
Ministers Benevolent Funds
783 - 165 948
Ministers Benevolent Funds
4 - - 4
Pomeroy Street Funds 37 - - 37
Gorseinon Funds
23 - - 23
Aberbargoed Funds 123 - - 123
Capel Gwilym Funds 3 - - 3
Llanhilleth Church 2 - - 2
Manse Funds 1,489 - - 1,489
Llandogo Monmouth Funds 2,179 - - 2,179
Alexandra Rd Newport Funds
230 - - 230
Pontyclun/Ely Funds 13 - - 13
Nash Newport Funds 85 - - 85
4,974 - 165 5,139
TOTAL FUNDS 236,924 (213,232) 356 24,048

The General reserve represents the free funds of the Association that are not designated for particular purpose. The fixed assets represent the net book value of tangible fixed assets. The investments represent unrestricted funds held as investments. The Lower Cynon Manse relates to the purchase of a manse to enable mission to take place in the Lower Cynon area.

The Ministers Benevolent fund is used to assist Ministers and retired Ministers on the accredited list.

The Ministers Benevolent fund, interest on the capital sum provided by the James Pantyfedwen Foundation, is used to assist Ministers and retired Ministers on the accredited list.

The Pomeroy Street fund is used to assist the Association within the Cardiff post code area.

The Gorseinon fund is used for the purpose of items of capital expenditure.

The Moriah Baptist Church Aberbargoed fund and the Capel Gwilym Church Cardiff fund are used for capital purposes.

The Manse fund is used for the purpose of items of capital expenditure.

The Llandogo Monmouth fund is used for Strategic Mission Initiatives within the Association including small Churches intiatives.

The Alexandra Rd Newport fund is used to provide support and ongoing equipping and training of Ministers and Church leaders in the Association including the appointment of personnel.

continued...

Page 19

South Wales Baptist Association (BUGB)

Notes to the Financial Statements - continued for the Year Ended 31 December 2022

11. MOVEMENT IN FUNDS - continued

The Pontyclun/ Ely fund is to be made available for the appointment of a full-time accredited minister at Ely Baptist Church, Cardiff

The Nash Newport fund is to be used for Mission Initiatives within the Association including the appointment of personnel.

The Ely Manse relates to the purchase of a manse to enable mission to take place in the Ely area of Cardiff.

The Student fund assists students for ministry from churches within the Association.

The Commercial Road Llanhilleth fund is to be made available to Brynithel Community Church when in a position to proceed with a Church building.

12. EMPLOYEE BENEFIT OBLIGATIONS

The 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 Principal and staff tutors 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 Unum Limited.

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 2016

A formal valuation of the Defined Benefit (DB) Plan was performed at 31 December 2016 by a professionally qualified Actuary using the Projected Unit Method. The market value of the DB Plan assets at the valuation date was £219 million.

The valuation of the DB Plan revealed a deficit of assets compared with the value of liabilities of £68.3 million (equivalent to a past service funding level of 70%). The College and the other employers supporting the DB Plan are collectively responsible for funding this deficit.

The key assumptions underlying the valuation were as follows: RPI price inflation assumption 3.60% CPI price inflation assumption 2.85% Minimum Pensionable Income increases (CPI plus 1.0% pa) 3.85% Assumed investment returns - Pre-retirement 5.10%

continued...

Page 20

South Wales Baptist Association (BUGB)

Notes to the Financial Statements - continued for the Year Ended 31 December 2022

12. EMPLOYEE BENEFIT OBLIGATIONS - continued

Deferred pension increases - Pre April 2009 3.60% - Post April 2009 2.50% Pension increases - Main Scheme pension Pre April 2006 3.40%

Post-retirement mortality in accordance with 75% of the S2NFA and S2NMA tables, with allowance for future improvements in mortality rates from 2007 in line with the CMl 2016 core projections, with a long term annual rate of improvement of 1.75% for males and 1.5% for females.

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 colleges and other employers involved in the DB Plan. Under the current Recovery Plan dated 13 April 2018, deficiency contributions are payable until 31 December 2028. 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.

Movement in Balance Sheet liability

Section 28.11A of FRS 102 requires agreed deficit recovery payments to be recognised as a liability.

The current deficiency as notified by the actuaries is £22,500

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:

13. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 December 2022.

Page 21

South Wales Baptist Association (BUGB)

Detailed Statement of Financial Activities for the Year Ended 31 December 2022

31.12.22 31.12.21
£ £
INCOME AND ENDOWMENTS
Donations and legacies
Donations 3,809 1,377
Investment income
Rents received 12,763 14,045
Deposit account interest 3,150 6,560
15,913 20,605
Charitable activities
Subscriptions 16,623 18,141
Grants 232,897 190,313
Other incoming resources 1,250 6,488
250,770 214,942
Total incoming resources 270,492 236,924
EXPENDITURE
Charitable activities
Wages 80,709 87,038
Social security 3,645 3,522
Pensions 11,962 9,821
Insurance 188 1,574
Telephone 1,019 1,761
Sundries 2,567 4,468
Maintenance - 360
Office costs 3,032 3,969
Computer costs 1,257 267
Mission Grants 72,917 86,659
Benevolent Fund 951 900
Subscriptions 4,104 996
Premises 9,797 11,653
Training 650 454
Ministers' Conferences 3,394 667
Travel/Accommodation 3,478 2,145
Housing Allowances 10,696 12,283
Ministerial support 2,009 -
Cytun - (5,000)
Safeguarding costs 10,310 -
Depreciation of tangible fixed assets 1,372 1,899
Bank charges 140 365
224,197 225,801
Other
Pension scheme movements (39,685) (14,877)

This page does not form part of the statutory financial statements

Page 22

South Wales Baptist Association (BUGB)

Detailed Statement of Financial Activities for the Year Ended 31 December 2022

31.12.22 31.12.21
£ £
Support costs
Governance costs
Auditors' remuneration 1,800 1,800
Auditors' remuneration for non audit work 144 162
Meeting costs 1,364 346
3,308 2,308
Total resources expended 187,820 213,232
Net income before gains and losses 82,672 23,692
Realised recognised gains and losses
Realised gains/(losses) on fixed asset investments - 356
Net income 82,672 24,048

This page does not form part of the statutory financial statements

Page 23