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2021-12-31-accounts

Exeter Network Church (A company limited by guarantee)

Annual Report and Financial Statements for the year ended 31 December 2021

Charity no: 1109486

Company no: 05278022

Contents

Legal and administrative information 2
Report of the Trustees 3
Independent Examiner’s report 8
Statement of Financial Activities 9
Statement of Financial Position (Balance Sheet) 10
Notes to the accounts 11

Exeter Network Church Financial statements year ended 31 December 2021

Legal and administrative information

Status

The church is a charitable company limited by guarantee, incorporated on 4 November 2004 and registered as a charity on 16 May 2005.

The company was established under a Memorandum of Association that established its objects and powers and is governed under its Articles of Association. The Memorandum and Articles of Association were amended by Special Resolution on 2[nd] November 2009 in preparation for the Exeter Network Church becoming the country’s first “Bishop’s Mission Order.” Under those Articles, the directors are termed members of the Council (the trustees) and are elected at the AGM to serve a period of 3 years, subject to retirement by rotation.

The Trustees (responsible for the management of the affairs of the Company) who served during the year were as follows:

Derek Hadden - Chair (appointed 12 June 2019) Mark Brend (appointed 27 March 2015, resigned 15 March 2021) Paul Morrish (appointed 12 June 2019, resigned 31 October 2021) Stephen Palmer (appointed 12 June 2019, resigned 6 July 2021) Sian Rice (appointed 12 June 2019) Jeffrey Tutchings (appointed 12 June 2019) Jonathan Robbins (appointed 14 December 2020) Lucy Lamb (appointed 14 December 2020) Mike Williams (Bishop's nominee trustee) Rebecca Phillips (appointed 31 October 2021)

Company Secretary

Roseanna McClune (appointed 12 June 2019)

Treasurer

Jonathan Robbins (appointed June 2020)

Registered Office

22 Southernhay West, Exeter EX1 1PR

Church Leaders (responsible for leadership of the churchs activities)

Reverend Jon Soper and Mrs Jo Soper

Bankers

Cooperative Bank, 1 Balloon Street, Manchester, M60 4EP

Solicitor

Stephens Scown LLP, Exeter, Curzon House, Southernhay West, Exeter, Devon, EX1 1RS

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Exeter Network Church Financial statements year ended 31 December 2021

Church Leaders and Trustees Report for the year ended 31 December 2021

The trustees present their report and the financial statements for the year ended 31 December 2021.

Objectives and Activities

Exeter Network Church (ENC) is a company and a charity which exists to promote the Christian faith and to alleviate suffering.

ENC had its public launch in January 2005. In November 2009 church leaders Rev Jon and Jo Soper were licensed by the Bishop of Exeter as leaders of the first Bishops Mission Order in the UK. ENC is currently around 400 strong, an intergenerational community which includes approximately 60 under 18s and 100 students. It is committed to communicating the gospel of Jesus Christ, through which lives and communities are transformed.

When planning our activities, we take account of the Charity Commissions guidance on public benefit and its specific guidance on charities for the advancement of religion. Our activities are publicised on our website www.enc.uk.net and outlined below.

How Exeter Network Church describes its life

The vision of ENC was reviewed in early 2021, resulting in a renewed and refocused vision and values, which we share here.

ENC’s vision comes from the Lord’s Prayer - On Earth as in Heaven. That is, to work with Jesus Christ to see the transformation of all things.

We value high participation by everyone in the church community; we value joyful celebration of life and the stories of transformation; and we value strong expectation that God will intervene in our everyday lives.

ENC’s anchors (what’s important) are that we are on mission, in the Spirit and under Scripture.

Exeter Network Church Activity

ENC’s activities can be categorised under High (worship), Wide (community), Deep (discipleship) and Long (mission).

In 2021 ENC’s activities were inevitably thoroughly altered by the Covid pandemic. In addition, the fairly regular changes of government rules and guidelines through the year meant that planning need to be short term.

High

Public worship in the pandemic was an opportunity for creativity as well as an occasional exercise in frustration. We are committed to making our public gatherings as vibrant and welcoming to as many people as possible, whether online or in-person. They involve people of all ages and all stages of spiritual life. They are characterised by high participation in music, leading, public speaking, welcome and prayer. In particular it involves developing younger leaders in different roles. The first half of the year necessitated Sunday gatherings on Zoom, to which we added Presence evenings in-person (purely musical worship) and Sunday breakfasts in people’s gardens in the summertime. From September we were able to meet in-person at gatherings at 4pm and 6.30pm with some inevitable restrictions.

During December every Sunday was given over to different kinds of Christmas events – in the high street, for students, for families, for the church as a whole and a contemplative Christmas Eve gathering.

For ten days between Ascension Day and Pentecost we held 24/7 prayer with online forums, with different people praying through the day and night for that period.

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Exeter Network Church Financial statements year ended 31 December 2021

In the autumn ENC developed new ways of gathering to pray in people’s houses and on Zoom. These ‘Firehouses’ have grown and multiplied through the winter and into 2022

Wide

Building community during the pandemic inevitably proved to be a difficult task, but one which ENC worked at creatively. Throughout the year a number of the usual opportunities for building community were on hold (eg hubs, courses and prayer streams).

ENC’s children and youth teams, however, continued to develop vibrant online material which enabled learning, connection and community despite lockdown. We hired a new Children’s Leader in September who was able to restart children’s groups in-person in the autumn. We similarly continued to strengthen in-person and online work with about 80 students at Exeter University.

Due to Covid we were only able to hold one of our community days out (SuperSunday), and we were unable to hold our annual weekend away in Newquay for the first time in 15 years.

We did aim however to support one other through the difficulties of life. From day to day this expressed itself in an openness to pray for and help one another practically. Pastoral work this year consisted of spiritual counsel and prayer with individuals often online, receiving support from church leaders and members of the prayer teams. Some of the staff were involved in a weekly pastoral meeting (usually online) which served to alert one another to needs within the church. Practical and financial hardship help were also available, particularly through a Covid hardship fund.

As restrictions eased at the end of the summer, ENC held weekly Restore the Core sessions for anyone in the church, to meet one another again, to eat and worship together and to be reminded of the core values of the church community. During the autumn we purposely didn’t switch on all the previous activities, in order to meet centrally, pray and reconnect properly

ENC clergy prepare, conduct and follow up on baptisms, weddings and funerals. (We do not have a parish responsibility as part of the Church of England. Instead we conduct baptisms, weddings and funerals for people who are part of ENC.). In 2021 we conducted a number of adult baptisms, a small number of weddings and one funeral.

Deep

Online 4mation (discipleship) groups of four for old and young in 2021 were particularly strengthening during lockdown and became a mainstay in Covid for connection, pastoral care and building faith. These groups had been strongly updated, focused and rebooted in the previous year, which contributed a lot to people’s well-being, connection and discipleship.

During the year we have run the Exchange intern programme which develops a small group of young leaders (18 – 22 years old), giving them opportunities for personal growth, skills development and service.

We also ran adult learning courses, primarily online, including one on the book of Genesis (Origins)

Long

ENC take seriously the words of Archbishop William Temple that the church is the only society on earth that exists primarily for the benefit of its non-members.

A primary strategy in propagating the Christian faith in the diocese of Exeter is for ENC to plant churches. In 2021 we partnered with the Diocese of Exeter to plant a team of about 20 into Whipton and Beacon Heath parish under the leadership of ENC’s curate Carl Robinson. After months of planning and recruitment, we commissioned them on July 11[th] to plant into to the parish of Whipton and Beacon Heath in Exeter, joining the small congregation there, and to kick-start fresh activity and ministry in an area of considerable social need.

At ENC, we also reach out to those outside the church through networks. A network is a group of people with a name and a missional purpose. During the pandemic the majority of networks were on pause, but

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Exeter Network Church Financial statements year ended 31 December 2021

as the year went on about 5 opened up, particularly the debt advice in partnership with Christians Against Poverty, and the street chaplaincy with the homeless at the request of Exeter City Council.

Financial results:

The unrestricted surplus for the year was £59,252 (2020 surplus £43,184). Transfers from unrestricted funds to restricted funds totalled £0 (2020: £255). Reserves at the end of the year amounted to £178,709 (2020: £134,285) of which £175,621 (2020: £125,677) were unrestricted. The unrestricted funds include a designated fund of £19,708 (2020: £20,000) towards future church plants.

Future strategy and plans

During 2021 the initial plans were to enable the diverse church community to reconnect with one another, both after the isolation of the pandemic, and also after having sent up to 60 adults from ENC to two church plants over the previous 12 months (St Basil’s and St Boniface). By September the church community had therefore reduced in size a little and many people (all across the UK, in fact) were renegotiating their relationship with church. Hence we held weekly Restore the Core sessions during September and October to reconnect people, and initiated the Firehouses to help people reconnect with God and pray for our city.

Back in February 2021 the staff and trustees held a major online review of leadership, management and governance at ENC with the help of church consultant Andrew Bagwell. The resulting process with a Change Team and the church staff helped us review vision, values and strategic anchors, and bring clarity to job descriptions and how different people and areas relate. This was, and continues to be, a major piece of work, which had been asked for by the Bishop of Crediton’s BMO review in November 2019. These refreshed vision and values have started to permeate through the church and the work of the staff (including new staff in September, a curate and a children’s leader)

The vision for 2022 is to reshape how the church organises itself and does its work, once the period of prayer in Firehouses seems to be concluded. ENC is at the point of greatest ‘newness’ since it was planted in 2005, but whatever shape we take in 2022, it will align with our refreshed vision and values articulated above in ‘How Exeter Network Church defines its life’.

Leadership, Management and Governance

The trustees are responsible for the governance of the church regarding finance, employment, regulatory compliance and policies. The trustees delegate responsibility for leadership of the church’s activities, development of its spiritual life and its daily management to the church leaders. Trustees give their time voluntarily and receive no financial benefit from the charity.

The church leaders are supported in their role by a senior staff of three others.

Members of the charitable company guarantee to contribute an amount not exceeding £1 to the assets of the charitable company in the event of winding up. The total number of such guarantees at 31 December 2021 was 6. Company members are responsible for appointing trustees normally around the annual general meeting.

Whilst retaining its legal autonomy as a registered charity and a Company limited by guarantee employing the Church Leaders, on 2nd November 2009 the Company resolved to adopt the terms of a Bishop’s Mission Order (BMO) lasting for the duration of five years and to change the Objects of the Company to bring them into line with those of an Anglican Church. At the same time, the opportunity was taken to approve the replacement of the Company’s Articles of Association with the more modern form of Articles in terms set out in the new Companies Act 2006 with appropriate adaption.

The BMO makes the Church Leaders accountable to the Bishop of Exeter and provides for a Bishop’s ‘Visitor ’ (in 2019 the Bishop of Crediton was appointed as Visitor) to provide a communication ‘bridge ’between the Bishop of Exeter and Exeter Network Church.

In 2014 the BMO was renewed for a further five years, and then in 2019 the BMO status was made permanent after an extensive review by the Bishop of Crediton and her team.

Reserves policy

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Exeter Network Church Financial statements year ended 31 December 2021

The trustees have accepted a reserves policy whereby the unrestricted funds not committed or invested in tangible fixed assets (‘the free reserves’) held by the charity should equate to the amount of contractual obligations (including staff redundancy) should the charity cease to operate.

At this level, the day to day financial of the church are met through faith and the legal requirements should the charity cease will be met. This amount comes to £45,000. At the year-end unrestricted reserves totalled £175,329.

The trustees feel the charity can continue to meet its ongoing financial requirements.

Investment policy

The trustees have considered the most appropriate policy for investing funds and decided that short term deposit accounts meet its requirements to both generate income and have available funds at short notice.

Giving policy

The church’s policy is to give away 10% of undesignated income in furtherance of the Christian faith and the relief of poverty and hardship. This year ENC was able to give a total £59,449 (2020: £47,321). Of this total £35,492 (2020: £40,694) were gifts to external individuals and institutions, the remainder were gifts from restricted funds or to individuals within the church.

In 2021, ENC gave monthly donations to organisations such as: Open Doors, A Rocha, Every Nation Ministries, Exeter Foodbank, Exeter Initiative in Christian Education, Christians Against Poverty, Fusion, New Wine, SAT-7, Exeter YMCA and a missionary couple in Albania. ENC supports partners who promote the Christian faith and alleviate suffering which are local (Exeter), UK-wide and international.

Risk review

The trustees have conducted their own review of the major risks to which the charity is exposed and systems have been established to mitigate those risks. Internal financial risks are managed by the implementation of financial procedures for the collection, banking and recording of all donations and the authorisation and recording of all expenditure.

In 2021 the church had a Safeguarding policy and a Safeguarding officer - Roseanna McClune. The church also has formal policies for Health and Safety, and Data Protection.

Responsibilities of the trustees

Company law requires the trustees to prepare financial statements for each financial year that give a true and fair view of the state of affairs of the charitable company as at the balance sheet date and of its incoming resources and application of resources, including income and expenditure, for the financial period reported. In preparing those financial statements, the trustees should follow best practice and:

The trustees are responsible for maintaining proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. The trustees are also responsible for safeguarding the assets of the charitable company and for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Trustee Members

The trustees, who are directors for the purpose of company law and trustees for the purpose of charity law, who served during the year and up to the date of this report are set out on page 1. The trustees have been recruited from amongst members of the church by a process of nomination and election.

This report has been prepared in accordance with the Statement of Recommended Practice – Accounting and Reporting by Charities and in accordance with the requirements of the Companies Act 2006.

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Exeter Network Church Financial statements year ended 31 December 2021

Approved by the trustees on 23 March 2022.

And signed on its behalf by Derek Hadden

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Exeter Network Church Financial statements year ended 31 December 2021

Independent Examiner’s Report to the trustees of Exeter Network Church (‘the Company’)

I report to the trustees on my examination of the accounts of Exeter Network Church for the year ended 31[st] December 2021.

Responsibilities and basis of report

As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act').

I report in respect of my examination of the Trust's accounts carried out under section 145 of the Act and in carrying out my examination I have followed all applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner's statement

I have completed my examination. I confirm that no material 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 Trust as required by section 130 of the Act; or 2. the accounts do not accord with those records; or

  2. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 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.

I confirm that there are no other matters to which your attention should be drawn to enable a proper understanding of the accounts to be reached.

Signed:

Magnus Proctor Fellow Institute of Financial Accountants Lindisfarne Landkey Road Barnstaple Devon EX32 9BW

14 March 2022

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Exeter Network Church Financial statements year ended 31 December 2021

Statement of Financial Activities (including Income and Expenditure Account) for the year ended 31 December 2021

Statement of Financial Activities Statement of Financial Activities Statement of Financial Activities Statement of Financial Activities Statement of Financial Activities
(including Income and Expenditure Account)
for the year ended 31 December 2021
Unrestricted 2021 2020











/ Designated Restricted **Total ** Total
Funds Funds Funds Funds
Notes £ £ £ £
Income and Endowments
Donations 2 370,203 46,055 416,258
361,310
Eventsincome 6,549 - 6,549 36,538
Bank interest 10 - 10 -
COVID furlough relief 9,368 - 9,368 15,005
Total 386,131 46,055 432,186
412,853
Expenditure
Administration 18,498 1,663 20,161 14,839
Buildings 36,268 - 36,268 40,044
Communications 639 - 639 1,670
Gifts 35,492 23,956 59,448 47,321
Legal & professional 7,061 43 7,104 6,142
Staffing 204,947 18,408 223,355 231,246
Other 23,974 16,813 40,787 19,002
Total 326,879 60,883 387,762
360,264
Net income/(expenditure)
before transfers
59,252 (14,828) 44,424 52,589
Transfers between funds - - - -
Net movement in funds 59,252 (14,828) 44,424 52,589
Total funds at 31
December 2020
116,369 17,916 134,285 81,696
Total funds at 31
December 2021
175,621 3,088 178,709 134,285

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Exeter Network Church Financial statements year ended 31 December 2021

Balance Sheet as at 31 December 2021
2021
Notes
£
Current assets

Debtors - tax receivable under gift aid
1,375
Prepayments
700
Cash at bank and in hand
183,503
185,578
Less: Creditors due within one year
7
6,869
Net assets
8
178,709
Unrestricted income funds
General funds
155,621
Designated funds
19,708
Restricted income funds
3,380
Total funds
9
178,709
2020
£
17,906
318
125,492
143,716
9,431
134,285
96,369
20,000
17,916
134,285

The company was entitled to exemption from audit under s477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act with respect to accounting records and the preparation of accounts.

These accounts have been prepared in accordance with the provisions applicable to small companies subject to the small companies regime and in accordance with FRS102 SORP.

The financial statements were approved by the Board of Trustees on 23 March 2022 and were signed on its behalf by:

Derek Hadden Chair of Trustees

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Exeter Network Church Financial statements year ended 31 December 2021

Notes forming part of the financial statements for the year ended 31 December 2021

Note 1: Basis of preparation

1.1. Basis of accounting

These accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts. The accounts have been prepared in accordance with;

The charity constitutes a public benefit entity as defined by FRS 102.

1.2. Change of accounting policy

The accounts present a true and fair view and no changes have been made to the accounting policies adopted in note 2.

1.3. Change to accounting estimates

No changes to accounting estimates have occurred in the reporting period (3.46 FRS102 SORP).

Note 2: Accounting Policies

2.1 Reconciliation with previous Generally Accepted Accounting Practice.

No accounting changes have arisen as a result of the change in Generally Accepted Accounting Practice.

2.2 Income

Voluntary income is received by way of donations and gifts and is included in full in the Statement of Financial Activities when the charity becomes entitled to the resources, when it is more likely than not that the trustees will receive the resources and when the monetary value can be measured with sufficient reliability.

There has been no offsetting of assets and liabilities, or income and expenses, unless required or permitted by the FRS 102 SORP or FRS 102. The value of services provided by volunteers has not been included in the accounts but is described in the trustees’ annual report.

Income from interest, royalties and dividends are included in the accounts when receipt is probable and the amount receivable can be measured reliably.

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Exeter Network Church Financial statements year ended 31 December 2021

2.3 Expenditure and liabilities

Liabilities are recognised where it is more likely than not that there is a legal or constructive obligation committing the charity to pay out resources and the amount of the obligation can be measured with reasonable certainty.

Resources expended are recognised in the period in which they are incurred. Resources expended include attributable VAT that cannot be recovered. The church does not engage in fund raising activities.

3 Incoming resources to fund the charity's activities

Donations under gift aid
Tax receivable
Other donations
Unrestricted
£
303,955
64,647
1,601
370,203
Restricted /
Designated
£
33,133
4,422
8,500
46,055
2021
Total
£
337,088
69,069
10,101
416,258
2020
Total
£
214,704
53,524
85,156
353,384

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Exeter Network Church Financial statements year ended 31 December 2021

4
Resources expended
Resources expended include:
Cost of independent examination
Gifts to institutions and individuals in furtherance
of the church's objects were:
Institutions
Individuals
5
Staff costs and numbers
Salaries and wages
Social security costs
Pension costs
No employee received emoluments of more than £60,000.
2021
£
480
45,317
14,132
59,449
2021
£
190,769
15,092
17,494
223,355
2020
£
480
33,084
3,500
36,584
2020
£
185,939
13,150
15,888
214,977

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Exeter Network Church Financial statements year ended 31 December 2021

The average weekly number of employees during the period, calculated on the basis of full time equivalents, was as follows:

Church leader
Other leaders and
administrators
6
Taxation
2021
Number
1.6
6.2
7.8
2020
Number
1.6
5.8
7.4

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

7 Creditors: amounts falling due within one year

Other creditors and accruals
PAYE and National Insurance
2021
£
6,869
-
6,869
2020
£
9,431
-
9,431
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Analysis of net assets between funds
General Designated Restricted Total
Funds Funds Funds Funds
£ £ £ £
Current assets 158,248 19,708 7,622 185,578
Current liabilities 2,627 - 4,242 6,869
Net assets at 31 December 2021 155,621 19,708 3,380 178,709

9 Movements in funds

9 Movements in funds
At At
1 Jan Incoming Outgoing 31 Dec
2021 Resources Resources Transfers 2021
£ £ £ £ £
Unrestricted funds
General funds 96,369
386,131
(326,879) - 155,621
Designated Funds
Church Plant 20,000 450 (742) - 19,708
Unrestricted funds total 116,369 386,581 (326,879) - 175,329
Restricted funds
Hardship 3,918
875
- -
4,793
CAP (3,118) 17,272 (27,802) - (13,648)
CAP Hardship 8,390 7,163 (4,370) - 11,183
TLG (931) - - - (931)
Weekend Away
1,198
- - - 1,198
Acts 435 - 3,915 (3,140) - 775
Projects & Appeals - 15,991 (15,981) - 10
CHARIS Exeter 8,459 390 (8,849) - -
134,285 432,186 (387,762) - 178,709

10 Trustees Expenses

Expenses to trustees were paid in the year as follows: - None.

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Exeter Network Church Financial statements year ended 31 December 2021

11 Pensions

Exeter Network Church participates in the Pension Builder Scheme section of CWPF for lay staff. The Scheme is administered by the Church of England Pensions Board, which holds the assets of the schemes separately from those of the Employer and the other participating employers.

The Church Workers Pension Fund has a section known as the Defined Benefits Scheme, a deferred annuity section known as Pension Builder Classic and a cash balance section known as Pension Builder 2014.

Pension Builder Scheme

The Pension Builder Scheme of the Church Workers Pension Fund is made up of two sections, Pension Builder Classic and Pension Builder 2014, both of which are classed as defined benefit schemes.

Pension Builder Classic provides a pension for members for payment from retirement, accumulated from contributions paid and converted into a deferred annuity during employment based on terms set and reviewed by the Church of England Pensions Board from time to time. Bonuses may also be declared, depending upon the investment returns and other factors.

Pension Builder 2014 is a cash balance scheme that provides a lump sum that members use to provide benefits at retirement. Pension contributions are recorded in an account for each member. This account may have bonuses added by the Board before retirement. The bonuses depend on investment experience and other factors. There is no requirement for the Board to grant any bonuses. The account, plus any bonuses declared, is payable from members’ Normal Pension Age.

There is no sub-division of assets between employers in each section of the Pension Builder Scheme.

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 Pension Builder Scheme’s assets and liabilities to specific employers and 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 (2021: £17,494; 2020: £15,888).

A valuation of the Pension Builder Scheme is carried out once every three years. The most recent was carried out as at 31 December 2019.

For the Pension Builder Classic section, the valuation revealed a deficit of £4.8m on the ongoing assumptions used. At the most recent annual review, the Board chose not to grant a discretionary bonus, which will have acted to improve the funding position. There is no requirement for deficit payments at the current time.

For the Pension Builder 2014 section, the valuation revealed a surplus of £5.5m on the ongoing assumptions used. There is no requirement for deficit payments at the current time.

The legal structure of the scheme is such that if another employer fails, Exeter Network Church could become responsible for paying a share of that employer’s pension liabilities.

12 Related Parties

There were no related party transactions for the year ended 31[st] December 2021.

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