REGISTERED COMPANY NUMBER: 06501705 (England and Wales) REGISTERED CHARITY NUMBER: 1124938
REPORT OF THE TRUSTEES AND
UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
FOR
SOUTH WEST BAPTIST ASSOCIATION
Barretts Chartered Accountants & Chartered Tax Advisers
22 Union Street Newton Abbot Devon TQ12 2JS
SOUTH WEST BAPTIST ASSOCIATION
CONTENTS OF THE FINANCIAL STATEMENTS for the Year Ended 31 December 2022
| Page | |||
|---|---|---|---|
| Report of the Trustees | 1 | to | 13 |
| Independent Examiner's Report | 14 | ||
| Statement of Financial Activities | 15 | ||
| Balance Sheet | 16 | to | 17 |
| Notes to the Financial Statements | 18 | to | 27 |
| Detailed Statement of Financial Activities | 28 | to | 29 |
SOUTH WEST BAPTIST ASSOCIATION
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).
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SOUTH WEST BAPTIST ASSOCIATION
REPORT OF THE TRUSTEES
for the Year Ended 31 December 2022
OBJECTIVES AND ACTIVITIES Objectives and aims
Our Objectives
The objects of the South West Baptist Association (SWBA) are defined in our governing document. The Association's objects ("the Objects") are the advancement of the Christian faith, especially by means 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 (BUGB).
This three-part "Declaration of Principle" forms the basis of understanding for all who belong to the Baptist Union. It was introduced in 1873 with the intent of holding in union Baptists with widely different theological understandings and progressively refined (1904, 1906, and 1938). It is rooted in Jesus' Great Commission (Matthew 28:18-20) with its threefold pattern of authority, baptism, and mission. The first clause of the Declaration focuses on the absolute authority of Jesus Christ, with clause two on baptism into the life of God. Clause three is all about the mission.
SWBA is one of thirteen Associations within BUGB and has a geographical-based focus in the South West of England specifically in Cornwall, Devon, South Somerset, and West Dorset. Within this area, the Association seeks to serve the local member churches, pioneers, and chaplains within the Baptist Family as they seek to grow healthy churches in relationship to God's mission.
Our Aims
It follows, therefore, that we aim to support the local churches in their mission
To enable this, the Trustees have identified three distinct areas that help ensure the focus of our activity and resources are consistently applied. We aim to be:
Responsive
Responding to the needs of our member churches as effectively and efficiently as possible, we seek to facilitate, support and enable their work by walking alongside them, their ministers, and their leadership teams.
Strategic
Working on and/or supporting projects that can best be approached by the Association, Sub Committees of churches, or denominations coming together.
Prophetic
Seeking to hear what God is saying and speaking a word in season; provoking and challenging our member churches to move on from where they are; seeking to develop and bring on church leaders in their ministry; seeking to inspire and encourage churches and leaders in their ministry and mission; encouraging churches to feel part of a wider family.
Therefore, our ongoing aims are to:
¢ Continue our wide-ranging work amongst Association churches, encouraging and supporting them in their work, assisting where challenges and difficulties arise, advising and enabling them to develop and clarify their vision and direction, and resourcing and equipping them where possible to achieve their vision and goals.
¢ Continue our involvement in a range of projects which are strategically best undertaken by us rather than a local church, and/or with other Baptist or ecumenical partners.
¢ Positively and proactively participate in national Baptist life, promoting and encouraging a sense of Baptist identity and belonging, and working collaboratively with other Associations and the staff at Baptist House, where this will enable more efficient working and better achieve our objectives of supporting and resourcing our member churches.
¢ Provide a range of inspirational, challenging, and informative events to encourage, resource, and equip our churches and ministers.
¢ Continue to build a sense of wider community amongst the Association churches.
Family Matters
Locally
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SOUTH WEST BAPTIST ASSOCIATION
REPORT OF THE TRUSTEES
for the Year Ended 31 December 2022
Within this framework, it is recognised that the nature of SWBA's role in offering support and help to churches and ministers in times of difficulty means that the workload in any year can be variable and unpredictable. Ongoing general objectives must, where necessary, be paused or adapted as significant needs arise. Our Staff Team puts large amounts of time and energy into offering bespoke support when crises arise, and the Trustees have agreed that these times of crisis must take high priority. Above all, SWBA's Staff Team should be available to give support wherever it is needed, in situations that, by their very nature, are unpredictable.
In 2022 as we continued to emerge from COVID, the Senior Staff Team found themselves continuing to give a high level of Pastoral support to the local churches and adjusting to the 'new norm' as churches sought to adapt to the challenges and changes of the previous two years. Part of this adaption was the exploring of Digital Mission, resourcing and equipping our churches to embrace digital platforms as a continuing way to reach people in their locality. On 24th March 2022, we held our first SWBA Gathering, where 27 people involved in voluntary roles across the Association joined the staff team and Trustees to spend time exploring the needs of our Association. From that meeting came the recognition of the need to further resource the Children, Youth and Family (CYF) work within the Association. On 16th January 2023, Glenda Chadwick-Down joined SWBA as our first CYF worker part-time. Throughout 2022 SWBA's Staff Team & Trustees have sought hard to give that high level of support to our member churches, and the addition of a Partnership Safeguarding Lead and Children, Youth and Families worker pays tribute to the resources the Association can deliver in seeking to meet its primary objectives of advancing the Christian Faith.
Regional and National Relationships in Baptists Together
As well as supporting the local Baptist Family, we also work in close cooperation with our Partnership Associations. These are the West of England Association, Southern Counties Association, and South Wales Association. The Partnership is an informal Sub Committee with no legal status but facilitates collaborative working in certain areas. Areas in which we sought to work collaboratively as a Partnership in 2022 include Ministerial recognition; Home Mission grants; Home Mission promotion; Mentoring and training of mentors for Newly Accredited Ministers (NAMs); and National Relationships. Through this Partnership, we appointed a Safeguarding Lead. On 1st February 2022, we were joined by Kath Needham. Kath works one day a week for three of the four Partnership Associations, namely the West of England Baptist Association (Webnet) and South Wales Baptist Association (SWaBA) and ourselves, who also take on the employment responsibilities of her role. We continue to value our relationships with the wider Baptist family and proactively and positively contribute wherever possible. We have a growing relationship with Bristol Baptist College as our nearest Baptist college, with staff leading occasional teaching sessions at the college.
In 2022 Nigel Manges attended the Baptist National Settlement Team, Carl Smethurst attended the National Mission Forum, and several other mission-related Sub Committees and networks. Both Nigel and Carl are involved with the Core Leadership Team (CLT), which is the body that draws together leaders from across Baptist Together, not as representatives of any constituency but to seek and enable leadership for the whole Baptist movement. The CLT then gives feedback to Council meetings with a report circulated in advance, and the opportunity for questions, discussion and discernment at the Council meeting is held. CLT is accountable to the Trustees of BUGB, who in turn are accountable to the Baptist Union Council. As an Association, we have three representative places on Baptist Union Council, which meets twice a year at Swanwick
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SOUTH WEST BAPTIST ASSOCIATION
for the Year Ended 31 December 2022
REPORT OF THE TRUSTEES
OBJECTIVES AND ACTIVITIES Public benefit
The Trustees have complied with their duty in the Charities Act 2011 by having referred to the public benefit guidance published by the Charity Commission.
Our main beneficiaries are the Baptist Churches in our geographical area, which are independent charities. Much of this section and the "Achievements and Performance" section explain the help and support that SWBA gives to the churches, especially the list of services provided. These all aim to help the churches better fulfil their aims and objectives. No charges are normally made for any of the SWBA services.
The trustees consider that in addition to the advancement of religion and the provision of regular public acts of worship, the member churches of SWBA deliver various activities that have benefited the community well beyond the local church fellowships themselves. This includes youth and children's activities, work with the elderly, the homeless, those in poverty, and other needy groups in society. This extends to developing models of caring, good citizenship, and neighbourliness, creating an environment where everyone is valued and listened to, and offering opportunities for people to volunteer and engage in projects for the benefit of others and to discover and develop their potential. The work of our churches is supported and enabled by SWBA through advising, encouragement, sharing of ideas and best practices, support through times of difficulty and conflict, providing training and resources, and a network for communication.
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SOUTH WEST BAPTIST ASSOCIATION
REPORT OF THE TRUSTEES
for the Year Ended 31 December 2022
ACHIEVEMENT AND PERFORMANCE
SWBA activities in 2022
Despite the challenge of COVID and the impact this had on churches the SWBA Team has maintained a comprehensive programme of activity along with several new initiatives in response to the needs of our member churches and the communities they serve.
This response has also spilled into other areas of the Baptist Family through our Partnership Sub Committee and at a national level through established communication channels and meetings. The following reports from our Regional Ministers give testimony to the activities undertaken in 2022.
Ministry - Rev Nigel Manges
It has a year of supporting Ministers and churches as they re-engage post Covid and Rev Nigel Manges continued to facilitate the updating of the Safeguarding and Data protection policies for the SWBA. The role has also included helping with management of the office and dealing with day-to-day enquiries from churches and ministers such as HR, employment, trust advice, where to get legal support, finance and constitutionally clarity (this list is not exhaustive). Nigel Manges has also archived all closed church files (60+) so we can fulfil out data protection policies. The archives have been sent to the appropriate county archive centres.
The primary role of Ministry support has been fulfilling our objectives being Responsive, Prophetic and Strategic.
This means to be available to give support wherever it is needed, in situations that by their very nature are unpredictable. This has been a busy year supporting ministers and churches and has involved:
" Breakdown in relationships between ministers and leadership teams /and or church
" Serious divisions or issues within a church to the point where it cannot move forward until some resolution is found
" Serious safeguarding allegations or issues
" Ministerial disciplinary
" A personal crisis within a minister's life - sudden bereavement, illness, or other family crisis
" Mental health issues experienced amongst ministers
" General Pastoral support and encouragement
" Misconduct of someone in church leadership
" Leadership training for church leadership teams
" Financial challenges which may lead to major questions about the church's future and changes that may be needed
We have continued to respond to be strategic and prophetic
Baptist Union
Nigel Manges and Carl Smethurst continue to represent the SWBA on the Baptist Union Council and at Core Leadership Meetings. Nigel Manges also represents the SWBA at the Regional Team Leaders and Settlement meetings.
University Engagement
A relationship has been built up with Plymouth University in helping to deliver a module for the Medical Students. In 2022 this was looking at racism and how to build relationships in the community with church programmes. At the end of the year a new project was started looking at the relationship with church (particularly with Rural) and the NHS. The object being: is there scope for a partnership to enable facilities that can be used for Mental health hubs, Pre-post and Post- Natal centres, mobile GP units, addiction clinics etc
Church Closures and developments
Through the year we have seen church closures, and we have sought to support them through the legal and trust issues as well as giving 'palliative' pastoral care as they close. Where we see a strategic value in a church we have explored other possibilities of a new ministry. We have also supported churches who are seeking to develop or repurpose their buildings.
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SOUTH WEST BAPTIST ASSOCIATION
REPORT OF THE TRUSTEES
for the Year Ended 31 December 2022
Cluster Ministers
The Association is divided into several areas, and we have now appointed two ministers to most of these areas as 'Cluster Ministers'. Their role is to offer local support and pastoral care, coordinate regular meetings and to strategically look at how they might support and encourage ministry in their areas. Their work has been invaluable and we have been exploring how to develop the role and the number of cluster ministers.
Continued Ministerial Development
We have continued to encourage, resource, and oversee this national initiative. As a Partnership with three other Associations, we have provided training for peer mentors. We also have been helping in conducting 360 reviews and mentoring.
Justice Sub Committee
A Justice Sub Committee continues to resource churches to look at various Justice issues that are facing churches and society. A web page has been created to enable simple access to these resources Justice Hub - South West Baptist Association (swbaptists.org.uk) This Sub Committee is made up of ministers from around the Association.
Ministerial Recognition Committee
Nigel Manges is SWBA's representative on the Partnership (Webnet, SWABA, SCBA and SWBA) Ministerial recognition Committee and he responsible for supporting with those from the Association who are considering ministry and coordinating the interview process. In 2022 four people started to journey to explore ministry.
Ministry Sub Committee
Underpinning all this work is a Ministry Sub Committee which included Trustees and Ministers who act as an accountability Sub Committee as well as enabling a reflection on current issues for churches and ministers. This Sub Committee meet 4-5 times a year and is a great support to the Association.
Safeguarding
We have appointed Kath Needham as our safeguarding officer and her gifts and wisdom have been appreciated. This is a joint venture with WebNet and South Wales Baptist Association with SWBA taking responsibility for employment and appraisal.
Taunton School
The Association has a responsibility on the board of Governors for Taunton School (a Free Church Foundation school). Nigel Manges has served on this board; it has been a good year with the school achieving well both academically and in sports. They have also started a major project to build an international school centre. Support has also been given to the school chaplain who was appointed by the Church Advisory Panel of which Nigel Manges chairs.
Ministry Hopes and Aspirations for 2023
¢ To continue to Develop the role of Cluster Ministers to; triage pastoral situations, offer support locally, develop a strategy that enables churches to' associate' better and be an added resource to support the regional team.
¢ To enable churches to be more aware of our Justice Group and webpages.
¢ To support churches and ministers as they navigate the same sex issue and accreditation.
¢ Nigel Manges is working with the Baptist Union Ministry department to review the settlement system and bring improvements to enable churches and ministers to engage more successfully.
¢ Continue to work with the Plymouth University Medical Department and work on a health-related project that would benefit our churches and the community.
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SOUTH WEST BAPTIST ASSOCIATION
REPORT OF THE TRUSTEES for the Year Ended 31 December 2022
¢ Employ a Company Secretary to replace the administration role that Nigel Manges has been temporarily doing.
¢ Expand the diversity and number of members on the Ministry sub-committee.
Mission - Rev Carl Smethurst
Developing our support of children, youth & family workers in our network
In 2022 we recruited a qualified and experienced SWBA CYF Mission Enabler from amongst a high-quality field of applicants. She began working for the Association in January 2023 and her focus will be to network together and support existing CYF workers within the SWBA, and to work alongside churches who wish to engage in CYF work but who require training and ongoing support to do so.
We also held a Children & Family Resource Evening in March 2022, a recording of which can be seen here - https://youtu.be/jNyGf-rQjt4
Encouraging our established churches in their mission as they emerge from the COVID pandemic
In April 2022 we organised a four day, multi-event visit of Ken Benjamin, Director of Church Relationships with the London Institute for Contemporary Christianity. This was well received with feedback from our member churches being very positive and several evidencing their ongoing engagement with the training material presented. For an example of this training, please see https://youtu.be/2fg2RK5KNzQ
Developing the production of digital content that will resource our established network of churches and beyond
We continued our journey into this new and upcoming area of missional ministry over 2022 through webinars (e.g. Optimising Social Media Platforms for Churches - https://youtu.be/waIagc61PqU ), ecumenical teaching content for churches across the South West of England ( e.g. Week of Prayer for Christian Unity Reflection - https://youtu.be/GAJsCNtPkCg ), and sharing the stories of those involved in missional ministry within the SWBA (e.g. Minister on the Move - https://youtu.be/8S-g09dFO3k )
Re-establishing the SWBA Home Mission Community
In 2022 we re-engaged in person with those who we support through mission grants following a period of reduced contact over the period of the COVID pandemic. We also engaged in training with this Sub Committee and networking with others from across our Partner Associations who are also supported by Home Mission grants. See the Home Mission Community training from 2022 here - https://youtu.be/HyB4C2eunzk
Developing a new role for SWBA Learning Community Coordinator to oversee our growing training programme
In Summer 2022 we advertised a new part-time post for a Learning Community Coordinator and successfully recruited to this role in Autumn 2022. He began work on a voluntary basis towards the end of the year, while we sought clearance from the Charity Commission, with a focus on pulling together our existing training courses (Prepare - Feed - Sustain, Crucible) but also to begin to develop training for the Continuing Ministerial Development of our Ministers in the SWBA. We look forward to beginning to see the fruits of this new appointment later in 2023.
Producing digital content aimed at younger adults within the South West Baptist Association and beyond
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SOUTH WEST BAPTIST ASSOCIATION
REPORT OF THE TRUSTEES
for the Year Ended 31 December 2022
In 2021 we began to work more closely with The Fuelcast, a Christian film production company based in the West of England. In 2022 our aim was to begin to film content for a mini-documentary series on topics that are especially relevant to younger adults, and which might engage them in the Christian story. Our aspiration is to seek to hear what God is saying and speak a relevant 'word in season', as stated in the 'prophetic' element of our Association purposes. Filming proved difficult in 2022, primarily due to the lack of availability of key contributors to these films, but work did begin on forming a creative production team under the banner of 'Change Makers' and with the expertise of this team the first of these documentaries is scheduled for release in 2023, alongside a bespoke website and teaching resources to encourage others in churches to use film as a media to inspire change in their local communities.
Mission Hopes and Aspirations for 2023
" Create training opportunities to encourage and inspire our smaller churches in the SWBA.
" Further explore how the digital world might enable and resource those seeking faith in the South West and beyond.
" Network, inspire and encourage those with creative gifts in the South West, and explore the possibility of collaborative working between those in our Association in the future.
" Begin to build a network of Children, Youth & Families workers across the SWBA and start to engage with those member churches who wish to explore working more with this younger demographic.
" Develop our training resources for those within our churches, including the Continuing Ministerial Development of our church leaders.
" Build our community of pioneers across the Association though regularly meeting together and encouraging a learning community to encourage and resource those engaged in this form of missional ministry.
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SOUTH WEST BAPTIST ASSOCIATION
REPORT OF THE TRUSTEES
for the Year Ended 31 December 2022
FINANCIAL REVIEW
The accounts show a deficit for the year of £21,985 (2021: surplus £265,857). This change in performance has several significant reasons. First of all, our share of the Home |Mission donations received from the churches across the country decreased by £40,409. Church giving across the country reduced by a modest amount but the main reason for the reduction was a large decrease in legacies notified to the Baptist Union. This fall in Home Mission income was partially offset by one off donations from closed churches of £31,625. Reported expenditure fell by £10,470 but this was after allowing for a pension reduction of £50,589 so really the expenditure increased by £40,119. This was due to increases in most areas of expenditure as our activity picked up after covid challenges and an increase in Home Mission grants and internship support. The pension benefit arose due to the "buy out" of the pension liability as explained in note 16. We also experienced a net reduction in the share portfolio valuation of £65,272, compared with a surplus in 2021 of £95,785, due to a decline in the markets from the year end in 2021 to 2022. The 2021 accounts also reported an increase in property valuations of £164,252 while there was no reported increase in 2022.
A five-year budget model has been developed for the Board to demonstrate the financial viability of running this planned deficit over several years. Budgets for future years show the charity operating at an annual deficit of more than £50,000 each year for the next five years. It receives regular income through its home mission grants so it only seeks to maintain liquid reserves of around £50,000 which represents approximately two months of expenditure. We then need to make timely withdrawals from our investment portfolio to cover our annual budgeted deficit. At the year-end, £132,105 was held in unrestricted cash funds with other debtors only £120. Creditors, which was largely a Home Mission clawback suffered in February and March were £42,537. This creates current assets of £84,230 which is greater than our cash holding policy but insufficient to cover the impact of the planned 2023 deficit which means we expect to need to draw down from our investment portfolio during the coming year . While these contribute to the income of the Association the Trustees are considering how to allocate some of these funds so that they are available for other mission property investments but allowing for the anticipated future falling home mission income.
Reserves policy and practice
The reserves reported in the balance sheet are £2,583,801 (2021: £2,605,786). This includes a property reserve of £131,049 which is invested in a staff member's home. After allowing for a bank balance of £5,218 in the Stronger Together Mission Fund, the balance of funds as set out in note 14, of £2,447,534 are unrestricted. This is after removing the pension reserve which is no longer required as reported in note 16. However these reserves are not all available to be spent. £873,951 represents the charity office and two properties provided for the occupation of the regional ministers, after allowing for the restricted reserve which was also used to purchase a minister's home. We also own an additional property which was valued at £235,000 which is rented to a church who are members of the Association.
This leaves an unrestricted general fund of £1,502,835. This includes a property currently valued at £375,000 let on a short-term tenancy arrangement which contributes to the income of the Association. The netbook value of a motor vehicle and office fixtures and equipment is £20,283 and we have loans to churches repayable in up to 10 years of £204,381. If these are excluded, and after allowing for the cash balances reported above then the charity has investments of £654,569 of free reserves which enables the charity to proceed with deficit budgets over the next 5 years.
PLANS FOR THE COMING YEAR - 2023
Some key Hopes and Aspirations for 2022 are in the Ministry and Mission reports above. The Trustees are encouraged that despite significant challenges over the last two years, the work of the Association has been able to grow and develop its ministry and mission focus. Our training events for Trustees and Treasurers in 2022 were well received, and we hope to repeat these later in 2023 with the aim of helping them with an ever-changing sea of governance and resource management. The desire is that helping to support strong governance in our member churches this will, in turn, support and grow healthy ministry and mission. We are also running a number of Listening days in 2023 to help our churches listen to each other and the wider Baptist family in connection with the consultation process on Marriage and Accredited Ministry. Other training events are and will continue to be provided by the extended team to help our churches and ministers in their ministry and mission outreach.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
As mentioned above the Association is one of thirteen within the Baptist Union of Great Britain. SWBA is governed by its own Memorandum & Articles of Association and has its Board of Trustees which includes up to three senior Staff Members. As a membership body, the primary focus is to seek to serve our member churches within the South West ensuring we are listening to their needs in fulfilling their mission.
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SOUTH WEST BAPTIST ASSOCIATION
for the Year Ended 31 December 2022
REPORT OF THE TRUSTEES
STRUCTURE, GOVERNANCE AND MANAGEMENT Induction and Training of Trustees
New trustees are provided with an induction session and induction pack which includes a copy of CC3 The Essential Trustee, and a document setting out SWBA's expectations of its trustees. Where the trustee holds a particular role or office, a written role description for that role or office is also provided. Trustee refresher training is provided from time to time where the whole Board revisits the key tenets of charity trusteeship, the structures, and personnel of SWBA, and the role of the SWBA Board of Trustees.
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SOUTH WEST BAPTIST ASSOCIATION
REPORT OF THE TRUSTEES
for the Year Ended 31 December 2022
STRUCTURE, GOVERNANCE AND MANAGEMENT Organisational structure and how decisions are made
The Board of Trustees understand their role to be broadly defined as follows:
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Setting and maintaining vision, mission, and values, developing short, medium, and long-term strategy, reviewing, and assessing whether goals are being achieved.
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Working with, supporting, and overseeing the work of the Regional Team, delegating to them responsibility for day-to-day management.
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Managing funds and assets responsibly, ensuring the Association remains solvent, ensuring funds are used and applied according to our charitable purposes, and managing resources to maximise potential.
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Ensuring compliance with charity law and other relevant legislation, ensuring appropriate policies are in place and adhered to, and that accounts and annual reports are published in accordance with approved guidelines
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Making careful decisions, listening to the views of the wider constituency as far as possible, and taking outside professional advice where appropriate
The serving Staff Leadership Team in 2022 was Rev Nigel Manges, Regional Minister-Ministry and Rev Carl Smethurst, Regional Minister-Mission. On 31st March 2021, Chris Fry left the Association to take up the role of minister in one of the member churches in the region. The Association employed her for many years, and we miss her contribution. Recognising her calling and training to ministry and the likelihood of leaving, the Trustees had, in 2021, reviewed both the Safeguarding requirements and the Administrative and Operational services needed. In August 2022, a new post for an Association Secretary was advertised. Although there were no applications at the time, further advertising has resulted in the appointment of a person to this role from May 2023. This will greatly assist the growing needs of the Trustees in their role to support the Staff Team and provide dedicated support to the governing requirements of the Association and its membership. The Association continually reviews how best to support and enable the Association members. We are grateful to Rev Nigel Manges for stepping in and covering this area during the interim period so admirably.
The Chairman, Vice Chair and Honorary Treasurer are nominated by the Board and elected by the AGM for a term of three years. Other places on the Board (up to an additional twelve Trustees) are nominated by the Board or by any member church. Nominees are elected at the AGM for a term of three years. There are no external or additional persons or bodies who are entitled to appoint Trustees. At the AGM on 16th June 2021, Mike Law retired as Chair of Trustees (Moderator) and Steve Dengate was elected to serve in this role. Mike Law has served SWBA as Chair for many years and we are grateful for his years of sacrificial service both in supporting the Staff Team and in leading the Board over this time. Mike continued to serve until the 2022 AGM, when he retired fully as a Trustee.
The Board has three Sub Committees that oversee specific areas of work. The Support Services Sub Committee oversees matters relating to Association properties, finance, safeguarding, office operations, and HR. The Ministry Sub Committee focuses on matters relating to ministry, accreditation, pastoral care, newly accredited ministers, and safeguarding. The Mission Sub Committee oversees all aspects of the mission, including Home Mission grants, pioneers and pioneering work, and church planting. Each Sub Committee then reports to the full Board on key matters discussed and decisions are taken. Each of the members of the staff leadership team is accountable to their Sub Committee, this being a positive and supportive accountability oversight.
Significant decisions of policy or strategy, or decisions with significant financial implications, remain the responsibility of the full Board, with the day-to-day work of the Association being delegated to the staff team. Members of the Staff Leadership Team prepare a report on their current work for each Board meeting and are directly accountable to the Board and the Sub Committees.
Once a year, all member churches are invited to a general meeting (AGM) where reports are given on the progress and activities undertaken by the Association. This is an opportunity for members to raise questions and give input to the work of the Association. New churches wishing to join the Association are presented to the existing members at this meeting, along with a report from the Trustees and confirmation that BUGB is also happy to receive the church into membership at the same time.
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SOUTH WEST BAPTIST ASSOCIATION
for the Year Ended 31 December 2022
REPORT OF THE TRUSTEES
STRUCTURE, GOVERNANCE AND MANAGEMENT
Election and retiral of Trustees also occur at the AGM; people who are in membership at one of the Association churches may express an interest in becoming a Trustee. A discerning process occurs over a period of several months, and following any appropriate due diligence the person will be co-opted onto the Board in the intervening period between then and the next AGM when they will formerly be elected by the membership. Member churches have an opportunity also to raise matters and make decisions under the Association Byelaws.
Risk management
The Trustees review annually their Risk Assessment document, which sets out those risks that have been identified as having a potentially significant impact on the ability of the Association to meet its aims and objectives. These include loss of key personnel, loss of data and records, and financial fluctuations. The document assesses each risk in terms of significance and likelihood and then identifies steps to be taken to mitigate these risks as far as possible. The Risk Assessment document was reviewed by the Trustees in March 2023. The Support Services Sub Committee is responsible for monitoring during the review periods and for bringing to the Trustees' attention any significant risks that might emerge during this period. As part of this process, the way we manage the investment portfolio was reviewed during the year. A competitive tendering process was undertaken to compare the service provided by Irvines IFA service with three investment fund managers. Considering the financial performance and responsible investing requirements of the Association Quilter Cheviot Investment Managers were appointed, and the whole of the portfolio was moved into their Climate Asset Fund. Their performance compared with suitable benchmarks will be reviewed in 2023.
Chief Executive Officer and other Senior Staff
SWBA has no Chief Executive Officer but operates a shared leadership system where leadership is shared equally between the Senior Staff Leadership Team, with each team member acting as "team leader" in their designated areas, and any of them are authorised to speak on behalf of the Association in external context in their area. Members of the Senior Staff Leadership Team are line-managed by the Chair of Trustees.
The Staff Leadership team are Revd N Manges (Regional Minister: Ministry) and Revd Carl Smethurst (Regional Minister: Mission).
REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number
06501705 (England and Wales)
Registered Charity number
1124938
Registered office
Wonford Baptist Chapel 36-38 Wonford Street Exeter EX2 5DL
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SOUTH WEST BAPTIST ASSOCIATION
REPORT OF THE TRUSTEES
for the Year Ended 31 December 2022
Trustees
M Law (resigned 3.7.22) I Freeland (appointed 3.7.22) R Dymond R P Carne Treasurer Revd N C Manges Regional Minister-Ministry Revd C Smethurst Regional Minister-Mission Revd J A Henley Revd E A Pearce S P Dengate Chair of Trustees A C Male
Chief executive Officer and other Senior Staff
SWBA has no Chief Executive Officer but operates a shared leadership system where leadership is shared equally between the members of the Staff Leadership Team, with each team member acting as "team leader" in their designated areas, and any of the three are authorised to speak on behalf of the Association in external contexts. Members of the Staff Leadership Team are line-managed by the Chair of Trustees.
The Staff Leadership team are Revd N Manges (Regional Minister : Ministry) and Revd Carl Smethurst (Regional Minister :Mission).
Independent Examiner
Ian Barrett Barretts Chartered Accountants & Chartered Tax Advisers 22 Union Street Newton Abbot Devon TQ12 2JS
Solicitors
Clarke Willmott, Blackbrook Gate Blackbrook Park Avenue Taunton TA1 2PG
Advisers
Insurance- Fidelius Insurance Services, 1 Emperor Way, Exeter EX1 3QS
Investments-Irvine Financial services Ltd, Bridgewater House, The Square, Barnstaple EX32 8LS
Property- AMA Chartered Surveyors, Midtrees, The Green, Hambridge, Langport, Somerset TA10 0AT - Baptist union Corporation Ltd, Baptist House, PO Box 44, 129 Broadway, Didcot OX11 8RT
Bankers- CAF Bank, 25 Kings Hill Avenue, Kings Hill, West Malling, Kent ME19 4JQ
Approved by order of the board of trustees on 26 April 2023 and signed on its behalf by:
S P Dengate - Trustee
Page 13
INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF SOUTH WEST BAPTIST ASSOCIATION
Independent examiner's report to the trustees of South West Baptist Association ('the Company')
I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 December 2022.
Responsibilities and basis of report
As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').
Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under Section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under Section 145(5) (b) of the 2011 Act.
Independent examiner's statement
Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a member of the ERROR - relevant professional body must be completed, which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
-
accounting records were not kept in respect of the Company as required by Section 386 of the 2006 Act; or
-
the accounts do not accord with those records; or
-
the accounts do not comply with the accounting requirements of Section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
-
the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Ian Barrett
Barretts Chartered Accountants & Chartered Tax Advisers 22 Union Street Newton Abbot Devon TQ12 2JS
16 May 2023
Page 14
SOUTH WEST BAPTIST ASSOCIATION
STATEMENT OF FINANCIAL ACTIVITIES
(INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) for the Year Ended 31 December 2022
| Notes INCOME AND ENDOWMENTS FROM Donations and legacies Investment income 2 Other income Total EXPENDITURE ON Charitable activities Association activities Other Total Net gains/(losses) on investments NET INCOME/(EXPENDITURE) Other recognised gains/(losses) Gains on revaluation of fixed assets Net movement in funds RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD |
Unrestricted funds £ 239,579 27,143 12,501 279,223 230,134 7,747 237,881 (65,272) (23,930) - (23,930) 2,471,464 2,447,534 |
Restricted funds £ 1,945 - - 1,945 - - - - 1,945 - 1,945 134,322 136,267 |
2022 Total funds £ 241,524 27,143 12,501 281,168 230,134 7,747 237,881 (65,272) (21,985) - (21,985) 2,605,786 2,583,801 |
2021 Total funds £ 229,647 |
|---|---|---|---|---|
| 19,139 | ||||
| 5,385 | ||||
| 254,171 | ||||
| 240,595 | ||||
| 7,756 | ||||
| 248,351 | ||||
| 95,785 101,605 164,252 265,857 |
||||
| 2,339,929 | ||||
| 2,605,786 |
The notes form part of these financial statements
Page 15
SOUTH WEST BAPTIST ASSOCIATION
BALANCE SHEET
31 December 2022
| Notes FIXED ASSETS Tangible assets 8 Investments Investments 9 Investment property 10 CURRENT ASSETS Debtors 11 Cash at bank CREDITORS Amounts falling due within one year 12 NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES CREDITORS Amounts falling due after more than one year 13 NET ASSETS FUNDS 14 Unrestricted funds Restricted funds TOTAL FUNDS |
Unrestricted funds £ 1,129,234 654,569 375,000 2,158,803 204,381 126,887 331,268 (42,537) 288,731 2,447,534 - 2,447,534 |
Restricted funds £ 131,049 - - 131,049 - 5,218 5,218 - 5,218 136,267 - 136,267 |
2022 Total funds £ 1,260,283 654,569 375,000 2,289,852 204,381 132,105 336,486 (42,537) 293,949 2,583,801 - 2,583,801 2,447,534 136,267 2,583,801 |
2021 Total funds £ 1,266,330 722,617 375,000 |
|---|---|---|---|---|
| 2,363,947 | ||||
| 252,930 66,104 |
||||
| 319,034 | ||||
| (32,314) 286,720 2,650,667 (44,881) |
||||
| 2,605,786 | ||||
| 2,471,464 134,322 2,605,786 |
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2022.
The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2022 in accordance with Section 476 of the Companies Act 2006.
The trustees acknowledge their responsibilities for
-
(a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and
-
(b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.
The notes form part of these financial statements
Page 16
continued...
SOUTH WEST BAPTIST ASSOCIATION
BALANCE SHEET - continued
31 December 2022
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 26 April 2023 and were signed on its behalf by:
S P Dengate - Trustee
The notes form part of these financial statements
Page 17
SOUTH WEST BAPTIST ASSOCIATION
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.
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.
Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.
Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Fixtures and fittings - 20% on reducing balance Motor vehicles - 25% on reducing balance
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.
continued...
Page 18
SOUTH WEST BAPTIST ASSOCIATION
NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 December 2022
| 2. INVESTMENT INCOME Rents received Interest and dividends Loan interest 3. GRANTS PAYABLE Association activities All grants were payable to institutions this year and in 2021. 4. NET INCOME/(EXPENDITURE) Net income/(expenditure) is stated after charging/(crediting): Depreciation - owned assets 5. TRUSTEES' REMUNERATION AND BENEFITS |
2022 £ 20,849 4,930 1,364 27,143 2022 £ 85,225 2022 £ 7,747 |
||
|---|---|---|---|
| 2021 | |||
| £ | |||
| 16,005 | |||
| 1,770 1,364 |
|||
| 19,139 | |||
| 2021 | |||
| £ 80,263 |
|||
| 2021 | |||
| £ 7,757 |
|||
Salaries, social security costs, and pension costs have been paid in respect of the following trustees:
| 2022 | 2021 | |
|---|---|---|
| Nigel Manges | 37,340 | 37,025 |
| Carl Smethurst | 37,340 | 37,025 |
| Included in these figures are pension costs of: | ||
| 2022 | 2021 | |
| Nigel Manges | 3,618 | 3,540 |
| Carl Smethurst | 3,618 | 3,540 |
Accommodation costs of £3,914 were paid for Nigel Manges and £3,397 for Carl Smethurst (2021: £5,216 and £15,394 respectively).
The above sums are payable in the course of the trustees' employment as senior staff of the charity and not by virtue of their role as trustees. The Memorandum and Articles of Association provides legal authority for the payment to these trustees.
continued...
Page 19
SOUTH WEST BAPTIST ASSOCIATION
NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 December 2022
5. TRUSTEES' REMUNERATION AND BENEFITS - continued
Trustees' expenses
Reimbursed travel, subsistence and car running expenses have been paid to Nigel Manges and Carl Smethurst totalling £15,839. In 2021 a total of £9,722 was paid to employed trustees.
During the year the charity has reimbursed travel, telephone and other expenses totalling £638 to two other trustees (2021: £583 to three other trustees).
6. STAFF COSTS
The average monthly number of employees during the year was as follows:
7.
| Pastoral Administration Pastoral No employees received emoluments in excess of £60,000. COMPARATIVES FOR THE STATEMENT OF FINANCIAL INCOME AND ENDOWMENTS FROM Donations and legacies Investment income Other income Total EXPENDITURE ON Charitable activities Association activities Other Total Net gains on investments NET INCOME/(EXPENDITURE) Other recognised gains/(losses) Gains on revaluation of fixed assets Net movement in funds RECONCILIATION OF FUNDS Total funds brought forward |
ACTIVITIES Unrestricted funds £ 229,252 19,139 5,385 253,776 239,095 7,756 246,851 95,785 102,710 164,252 266,962 2,204,502 |
2022 2 1 1 4 Restricted funds £ 395 - - 395 1,500 - 1,500 - (1,105) - (1,105) 135,427 |
2021 | ||
|---|---|---|---|---|---|
| 2 1 - 3 |
|||||
| Total funds £ 229,647 19,139 5,385 |
|||||
| 254,171 | |||||
| 240,595 7,756 |
|||||
| 248,351 | |||||
| 95,785 | |||||
| 101,605 164,252 |
|||||
| 265,857 2,339,929 |
continued...
Page 20
SOUTH WEST BAPTIST ASSOCIATION
NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 December 2022
| 7. COMPARATIVES FOR THE STATEMENT OF FINANCIAL TOTAL FUNDS CARRIED FORWARD 8. TANGIBLE FIXED ASSETS Freehold property £ COST OR VALUATION At 1 January 2022 1,240,000 Additions - At 31 December 2022 1,240,000 DEPRECIATION At 1 January 2022 - Charge for year - At 31 December 2022 - NET BOOK VALUE At 31 December 2022 1,240,000 At 31 December 2021 1,240,000 Cost or valuation at 31 December 2022 is represented by: Freehold property £ Valuation in 2022 1,240,000 Cost - 1,240,000 |
7. COMPARATIVES FOR THE STATEMENT OF FINANCIAL TOTAL FUNDS CARRIED FORWARD 8. TANGIBLE FIXED ASSETS Freehold property £ COST OR VALUATION At 1 January 2022 1,240,000 Additions - At 31 December 2022 1,240,000 DEPRECIATION At 1 January 2022 - Charge for year - At 31 December 2022 - NET BOOK VALUE At 31 December 2022 1,240,000 At 31 December 2021 1,240,000 Cost or valuation at 31 December 2022 is represented by: Freehold property £ Valuation in 2022 1,240,000 Cost - 1,240,000 |
7. COMPARATIVES FOR THE STATEMENT OF FINANCIAL TOTAL FUNDS CARRIED FORWARD 8. TANGIBLE FIXED ASSETS Freehold property £ COST OR VALUATION At 1 January 2022 1,240,000 Additions - At 31 December 2022 1,240,000 DEPRECIATION At 1 January 2022 - Charge for year - At 31 December 2022 - NET BOOK VALUE At 31 December 2022 1,240,000 At 31 December 2021 1,240,000 Cost or valuation at 31 December 2022 is represented by: Freehold property £ Valuation in 2022 1,240,000 Cost - 1,240,000 |
ACTIVITIES Unrestricted funds £ 2,471,464 Fixtures and fittings £ 21,119 1,700 22,819 8,877 3,060 11,937 10,882 |
- | continued Restricted funds £ 134,322 Motor vehicles £ 22,300 - 22,300 8,212 4,687 12,899 9,401 |
Total funds £ |
|
|---|---|---|---|---|---|---|---|
| 2,605,786 | |||||||
| Totals £ 1,283,419 1,700 1,285,119 17,089 7,747 24,836 1,260,283 |
|||||||
| 1,240,000 | 12,242 | 14,088 | 1,266,330 | ||||
| Fixtures and fittings £ - 22,819 22,819 |
Motor vehicles £ - 22,300 22,300 |
Totals £ 1,240,000 45,119 1,285,119 |
|||||
The Freehold properties were professionally valued in February 2022 and this valuation has been used as the fair value at 31st December 2022.
continued...
Page 21
SOUTH WEST BAPTIST ASSOCIATION
NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 December 2022
9. FIXED ASSET INVESTMENTS
| Shares Other Additional information as follows: MARKET VALUE At 1 January 2022 Additions Disposals At 31 December 2022 NET BOOK VALUE At 31 December 2022 At 31 December 2021 There were no investment assets outside the UK. Cost or valuation at 31 December 2022 is represented by: Valuation in 2022 Investments (neither listed nor unlisted) were as follows: At 1st January and 31st December 2020 |
2022 2021 £ £ 649,859 717,907 4,710 4,710 654,569 722,617 Listed investments £ 717,907 649,868 (717,916) 649,859 649,859 717,907 Listed investments £ 649,859 2022 2021 £ £ 4,710 4,710 |
|---|---|
continued...
Page 22
SOUTH WEST BAPTIST ASSOCIATION
NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 December 2022
10. INVESTMENT PROPERTY
| FAIR VALUE At 1 January 2022 and 31 December 2022 NET BOOK VALUE At 31 December 2022 At 31 December 2021 Fair value at 31 December 2022 is represented by: Valuation in 2022 11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Memorial Loan Fund- Loans to churches Loan to member church Other debtors |
2022 £ 101,078 103,183 120 204,381 |
£ 375,000 375,000 |
|---|---|---|
| 375,000 | ||
| £ 375,000 |
||
| 2021 £ |
||
| 122,745 118,183 |
||
| 12,002 | ||
| 252,930 |
The Memorial Loan Fund is for concessionary loans and include amounts due after more than one year totalling £90,012 (2021: £108,478).
The loan to a member church relates to a property purchase and includes amounts due after more than year totalling £85,455 (2021: £100,455).
12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
| Other creditors 13. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR Other creditors |
2022 £ 42,537 2022 £ - |
2021 £ |
|---|---|---|
| 32,314 | ||
| 2021 £ |
||
| 44,881 | ||
continued...
Page 23
SOUTH WEST BAPTIST ASSOCIATION
NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 December 2022
14. MOVEMENT IN FUNDS
| Unrestricted funds General fund Tangible Fixed Asset Fund Mission Property Fund Pension Reserve Restricted funds Capital Project Fund (Sherborne) Stronger Together TOTAL FUNDS Net movement in funds, included in the above are Unrestricted funds General fund Restricted funds Stronger Together TOTAL FUNDS |
At 1.1.22 £ 1,342,513 873,951 235,000 20,000 2,471,464 131,049 3,273 134,322 2,605,786 as follows: Incoming resources £ 279,223 1,945 281,168 |
Net movement in funds £ (23,930) - - - (23,930) - 1,945 1,945 (21,985) Resources expended £ (237,881) - (237,881) |
Transfers between funds £ 20,000 - - (20,000) - - - - - Gains and losses £ (65,272) - (65,272) |
At 31.12.22 £ 1,338,583 873,951 235,000 - 2,447,534 131,049 5,218 136,267 2,583,801 Movement in funds £ (23,930) 1,945 (21,985) |
||
|---|---|---|---|---|---|---|
| as |
continued...
Page 24
SOUTH WEST BAPTIST ASSOCIATION
NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 December 2022
14. MOVEMENT IN FUNDS - continued
Comparatives for movement in funds
| Unrestricted funds General fund Tangible Fixed Asset Fund Mission Property Fund Pension Reserve Restricted funds Capital Project Fund (Sherborne) Stronger Together TOTAL FUNDS |
At 1.1.21 £ 1,239,803 709,699 235,000 20,000 2,204,502 131,049 4,378 135,427 2,339,929 |
Net movement in funds £ 266,962 - - - 266,962 - (1,105) (1,105) 265,857 |
Transfers between funds £ (164,252) 164,252 - - - - - - - |
At 31.12.21 £ 1,342,513 873,951 235,000 20,000 |
|---|---|---|---|---|
| 2,471,464 131,049 3,273 |
||||
| 134,322 | ||||
| 2,605,786 |
Comparative net movement in funds, included in the above are as follows:
| Unrestricted funds General fund Restricted funds Stronger Together TOTAL FUNDS |
Incoming resources £ 253,776 395 254,171 |
Resources expended £ (246,851) (1,500) (248,351) |
Gains and Movement losses in funds £ £ 260,037 266,962 - (1,105) 260,037 265,857 |
Gains and Movement losses in funds £ £ 260,037 266,962 - (1,105) 260,037 265,857 |
|---|---|---|---|---|
| 265,857 |
Tangible Fixed Asset Fund
This represents the value of the Association's funds that are held in the form of tangible fixed assets directly for the purpose of purchasing these fixed assets. They are held specifically to further the day by day activity of the Association and represent the charity office and two properties occupied by regional ministers and are expected to be held on a long term basis. As such they are therefore not freely available to spend. Within this fund is a revaluation reserve representing the difference between the historic cost and the revalued amount.
Mission Property Fund
This represents the value of the Association's funds that are held in the form of property fixed assets directly for the purpose of purchasing these fixed assets. They are held specifically to further the mission work of the Association by providing property for a minister to occupy or a building from which a church can develop its ministry. Although individual properties may be bought and sold from time to time, to better reflect changing aspirations, in general terms these funds are not freely available to spend. Within this fund is a revaluation reserve representing the difference between the historic cost and the revalued amount.
The Stronger Together Mission Fund
Page 25
continued...
SOUTH WEST BAPTIST ASSOCIATION
NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 December 2022
14. MOVEMENT IN FUNDS - continued
This has a dual purpose-to promote and enable mission initiatives in our churches, and also to strengthen the sense of connectedness between our churches as we share stories of how money from the fund has been used. This is funded by small one-off donations available to the Association.. Application can be made by churches to receive grants for new mission initiatives, with the proviso that they can demonstrate that they are working in partnership with another church, in their mission.
The Capital Project Fund
This relates to a donation from the Baptist Building Fund for use by the charity in capital projects. It is currently used to assist with the provision of a manse. In the event that the manse is sold, the proportion of the proceeds that relate to the donation are to be used to fund future capital projects of the charity. This donation originated from the sale of Sherborne Baptist Church.
Pension Reserve
The Pension Reserve was an amount that the trustees had committed to donate towards the pension deficit within the Baptist defined pension scheme to alleviate problems other members of the scheme may experience. As explained in note 16 as there is no longer a deficit on the scheme this reserve has been written back.The Association is also a member of the scheme and its own deficit is reported in note 16..
15. RELATED PARTY DISCLOSURES
South West Pastoral Fund 2022
This fund is administered by the Regional Minister for Ministry for the South West Baptist Association. There were no financial transaction between SWBA and the Pastoral Fund. Donations and interest of £1,051.56 (2021: £489.50), benevolent payments of £400.75 (2021: £1,707) were made. The balance at 31st December was £5,551.72 (2021: £4,900.91).
During the year the Tamlin Fund was also administered by the South West Pastoral Fund. There was no income during the year (2021: £nil) and no payment was made (2021 :£nil). The balance at 31st December was £380.27 (2021: £380.27)
During the year the Sleeman Fund was also administered by the South West Pastoral Fund. There was no income during the year (2021: £nil), no benevolent payments were made (2021: £576) Bank charges of £81 (2021:£96) were paid. The balance at 31st December was £18,010.21 (2021: £18,091.21).
The total of Pastoral Funds combined: £23,942.20.
16. PENSIONS
The Association is a participating employer in the Baptist Pension Scheme ("the Scheme"), which is a separate legal entity administered by the Pension Trustee (Baptist Pension Trust Limited). The assets of the Scheme are held separately from those of the Employer and the other participating employers.
The Scheme, previously known as the Baptist Ministers' Pension Fund, started in 1925, but was closed to future accrual of defined benefits on 31 December 2011. Prior to this date the main benefit provided through the Defined Benefit (DB) Plan was a pension of one eightieth of final minimum pensionable income for each year of pensionable service together with additional pension in respect of premiums paid on Pensionable Income in excess of Minimum Pensionable Income.
From January 2012, pension provision is being made through the Defined Contribution (DC) Plan within the Scheme. In general, members pay 8% of their Pensionable Income and employers pay 6% of members' Pensionable Income into individual pension accounts, which are operated and managed on behalf of the Pension Trustee by Broadstone Corporate Benefits 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 if they are unable to work due to long-term incapacity. This income protection policy has been insured by the Baptist Union of Great Britain with Aviva Limited. The Scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. This is because it is not possible to attribute the Scheme's assets and liabilities to specific employers and means that the scheme is accounted for as if the Scheme were a defined contribution scheme.
Page 26
continued...
SOUTH WEST BAPTIST ASSOCIATION
NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 December 2022
16. PENSIONS - continued
The Ministers are eligible to join the Scheme.
Actuarial valuation as at 31 December 2019
A formal valuation of the DB Plan as at 31 December 2019 by a professionally qualified Actuary using the Projected Unit Method. At the valuation date the market value of the DB Plan assets was £298 million, whilst the level of assets needed to pay benefits was £316m, giving a deficit of £18m (equivalent to a past service funding level of 94%). The Association and the other participating employers in the DB Plan are collectively responsible for funding this deficit.
The key financial assumptions underlying the valuation were as follows Type of assumption % p.a. RPI price inflation assumption 3.20 CPI price inflation assumption 2.70 Minimum Pensionable Income adjustment 0.50 Assumed investment returns " Pre-retirement 2.95 " Post retirement 1.70 " Minimum Pensionable Income Increases 3.20 Deferred pension increases " Pre-April 2009 3.20 " Post-April 2009 2.50 Pension increases based on CPI with an annual floor of 0% and annual cap of 5% 2.70
Mortality is assumed in accordance with 80% of the S3NA standard mortality table. Future improvements projected from 2013 in line with the "CMI 2019" projection with a long-term rate of improvement of 1.75% p.a. for males and 1.5% p.a. for 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 churches and other employers involved in the DB Plan.
Under the current Recovery Plan signed in September 2020, deficiency contributions are payable until June 2026. These contributions are broadly based on the employer's membership at 31 December 2014 and increase annually in line with increases to Minimum Pensionable Income as defined in the Rules.
On 30th June 2022 the Baptist Pension Scheme signed an agreement with the insurance company Just Group ("Just") to secure DB plan members' pension benefits. Just are now providing financial backing for all pensions provided through the Scheme's DB Plan and following this transaction, the Scheme no longer has a shortfall. An updated recovery plan was then signed in August 2022 under which recovery contributions from each participating employer in the DB Plan reduced to £1 per month from August 2022. The provision in last year's accounts has been written back this year as has the designated fund put in place to assist with the previous recovery plan.
Page 27
SOUTH WEST BAPTIST ASSOCIATION
DETAILED STATEMENT OF FINANCIAL ACTIVITIES for the Year Ended 31 December 2022
| INCOME AND ENDOWMENTS Donations and legacies Baptist Union-Grant Donations Church closure donations Contributions to salary costs Investment income Rents received Interest and dividends Loan interest Other income Preaching fees and other income Courses Ministers' conference Total incoming resources EXPENDITURE Charitable activities Salaries and employment costs Staff property and reimbursed expenses Consultancy Cluster support Travel expenses (not ministerial) Property costs Events Office costs Printing, stationery, postage and telephone Property costs (Wonford) Training BU pension deficit Internship support Sundry expenses Grants to institutions Other Fixtures and fittings Carried forward |
2022 £ 169,057 27,903 31,625 12,939 241,524 20,849 4,930 1,364 27,143 2,619 6,388 3,494 12,501 281,168 102,344 23,149 9,180 5,625 3,631 13,618 4,792 3,854 5,019 7,878 155 (50,589) 5,000 2,084 85,225 220,965 3,060 3,060 |
2021 £ 209,466 20,181 - - 229,647 16,005 1,770 1,364 19,139 2,409 1,413 1,563 5,385 254,171 92,473 30,333 6,886 - 1,999 2,422 1,436 1,291 5,069 8,740 100 - - 502 80,263 231,514 3,060 3,060 |
|---|---|---|
This page does not form part of the statutory financial statements
Page 28
SOUTH WEST BAPTIST ASSOCIATION
DETAILED STATEMENT OF FINANCIAL ACTIVITIES for the Year Ended 31 December 2022
| DETAILED STATEMENT OF FINANCIAL ACTIVITIES for the Year Ended 31 December 2022 |
||
|---|---|---|
| Other Brought forward Motor vehicle depreciation Support costs Management Independent examiner's fee - independent examination Independent examiner's fee- accountancy Governance costs Legal & professional fees Trustee costs Portfolio management Bank charges Total resources expended Net income |
2022 £ 3,060 4,687 7,747 - 1,920 1,920 3,076 1,375 2,602 196 7,249 237,881 43,287 |
2021 £ |
| 3,060 4,696 7,756 780 1,560 2,340 - 1,375 5,172 194 6,741 248,351 5,820 |
This page does not form part of the statutory financial statements
Page 29