world mission BMS WORLD MISSION Annual Report and Financial Statements YEAR ENDED 31 DECEMBER 2021 BMS Annual Report 12 CONTENTS Letter from the General Director and the Chair ofthe Board of Trustees Where we work Oui objectives Ministry themes 10. Most marginalised 16. Least evangelised 22. People on the move 26. Cross in those vitsl first weeks. Our prayers remain corstsnt for peace to preval. Last but by no means leas( we thank our supporters forj¢xJrwng V￿th us in often ￿r￿ertain unpredictable circumstances, and for encouraging us so often. It 9)es wthout 5ayin9 that none of ourwork thi5 Past year would have been possible ￿7th0Lrt the V4Dnderful financial and prayer 5UPPQrt of UK churthes and Christians. Dr Kang-san Tan General Director. BM5 World Mission Rev D Marc Owen Chair of the Board of Trustees WHERE WE WORK In over 30 countries across fou( continents, from cities l ike Dhaka ahid Paris to some of the most remote places such as Bardai in Chad or NaJta in Peru, l'ie tacKle injustice and su,ffering in desperate spaces. USA ATLANTIC OCEAN PACIFI OCEAN PACIFIC OCEAN A TLAbJflC OCE4N * Countr1es with BMS partnership * Countrie5 where BMS relief work has taken place in the last year IKDIA INDIAN We share the good news of Jesus where it's never been known before. We walk with refugees and those lorced to leave homes. Our mission is to reach the most marginalised, least evangelised and people on the move. S (￿r pJ'.: evei¢prneDI. euJc4ltov. relie.. Jth4 mithS'.'*S BMS Annual Report 16 OUR OBJECTIVES OUR VISION Our call is to respond to a troubled and changing y￿rEd wtth the surpassing love of God and the hope of abundant lrfe in Christ. We believe that God'5 will is that no-one should perish and that every human being should have the opportunity to come to a saving faith in our Lord Jesus Chri5L Thi5 is our highest goal. We believe that sufferin9 and injustice are not God5 perfett will for all creation, and that we must pray and act to make abundant life available to those to whom it has been denied. We believe that this mission is most urgent in places where the 9ospel is known least and where suffering and injustice are most widely experienced and most deeply fe￿. Ilwb OUR MISSION We are constantly surprised by the goodness of God in mission. The HO￿ Spirit is in advance of us and we Stru99￿ to keep up. As a Christian mission or9anisation. we aim to share life in all its fullness with the world5 people5 by enabling them to know Christ; alleviating suffering and injustice- and improving quality of life wtth people as the primary agents of change. through motwating, training, sending and resourcing them. i•b OUR STRATEGY We aim to make real our vision and mission through our Pfimary commitmentto partnering with the Global Church to grow local mission movements. Through these partnershps we aim to bring transformation to the most marginali5ed. the least evangelised and to people on the move. You can read more about these three areas of ministry focus overthe following pages. Fho.ts tOP:DbOrt￿Tr. Tjvoryh the lar.'hlulgw OF BMS 5upporter5. we are able to irt Cha& Thadènd. •eru ttrtd •1 May the God of hope fill you with all joy and peace as you trust in him, so that you may overflow with hope by the power of the Holy Spirit. l• ROMANS 15: 13 T: IIF BMS Annual Report / rthoto.. brirg#¥ rhe love oIChr￿[ to claw00ffj5 ffl PEPJ and au055 the bVLY&. MINISTRY THEMES s a 23>year-old intemational mission agency rooted in the missionary movement of the 18th century. affirm our calling to abundant lile in Christ for the vlorld. Just as those thattravelled before us, we believe that suffering and injustice are not Gods will for people nor for the whole ol creation. And central to ow Kingdom vision, we believe that Gods wll is that no-one should be denied a thance to respond to the gospel. It is for those reasons that we are called to focus our energy. our resources and our prayets on three speafic areas of need in the world.. the mcst marginalsed peoples. the least evangelised peoples and people on the move. As BMS founder Williarn Carey farihfully pioneered in previou5 Kair05 moment in 17￿, thi5 15 the rnoment in thich BMS must not just adapt, but rapidly evolve. BMS must contribute and help shape pioneering initiatives in a fa5t- changing but still profoundly bfoken and fearful KrKld MOST MARGINALISED We tsckle the injustice and 5ufferin9 ofthe deeply disath￿trged In de5perdte places. We work to see the flourishing of those vmth the least opportLmtiies. who are furthest behind and are the most exduded. LEAST EVANGELISED We share the good where rfs never been kno￿ or Triely been heard. We are called to ￿ to people liwng in the hardest-to-reach and the least evangelised places, predominantly countrie5 where less than five per cent are Christian. PEOPLE ON THE MOVE We walk with those forced to leave home. in a time Yknere more people than ever before have been di5placed- whether wthin thwr own countries or hawng uossed bordeis. This unpre￿den1ed displacement is a of the worlds fragilty. o&x MLwocithhknbeonknght Sa[¢￿ Into ihts 4%*rlé BMS Annual Rep 110 -11 MOST MARGINALISED FACT FILE Number of community members benefitting from the delivery of services in the poorest 25 percent of countries.. 54,614 Itarget 50,tXIO) We tackle injustice and suffen'ng in despefate places through the sending of contextually skilled mi55ion workers to places and partners in the worldg F)oorest countries. As surgeons at an understsffed. underfunded hospital in Bardai. a remote re9on in the north of Chad. Andrea and Mark Hotthkin are a great example of this type of work We build capacity and create scale not on our own but through partnerships with estsblished and trusted local agencies. In Nepal. we work alongside the Multipurp05e Cornmunity Development Service who come alongside villages to improve all aspects of life, including health. sanitation. water management and education. We work with local churches Wlho are best placed to bring to life and long-terrn community transformation. In Bangladesh. mission workers Louise and Peter Lynth partner V•ryth the Bangadesh Baptist Church Sangha (BBCSI to respond to places with the greatest need. They create programrnes designed to help both in the present and future, such as promding waterproof bag5 to schoolchildren in monsoon-hit Rangpur DistricL Number of service workers receiving professional skills training-. 4.814 (target 2,0001 Number of corbventions trained in the mitigation of disaster relief: 5 (target 2} Number of people trained in Church and Community Mobilisation ICCMI= 93 (target 3CK)I If you haven't heard of leishmaniasis before, you're not alone. Neither had anyone in Bardai. a desert community in northern Chad. Ntrone except BMS workers Andrea and Mark Hotchkin, who recogni5ed the disease straight away when a 12-year-old boy was brought in to the h05Pital. Leishmaniasi5 is a disease that afferts either the skin or internal organs and is restricted to the poorest parts of the world. It 15 not financially lucrative enough to attract the attention of most pharmaceutical companies. Now, thanks to the efforts of Andrea and Mark. the involvement of the country's Ministry of Health and the World Health Organization, a national treatment plan 15 on the verge of being rolled out. 11&r. Bkls wgeorl Androii rthKh0sr￿l￿or￿cL?mmUO1TJeS BMS Annual Report 112 MOST MARGINALISED THE STATISTICS DISTRIBUTION OF GRANTS TO PARTNERS (BY REGION) Asia: £475,C(Ll151.4%) 5ub-Saharan Africa.. £421,QKL)145.6%) TOTAL. £934,C Latin America.. E16,0(K) (1.7Vo) Middle East and North Africa: £9.C(011%) Europ@ £3.(m (O.>/o) Alongside extensive Covid-19 work, BMS has been part of relief and disaster responses, including rebuilding schools in Haiti after the August earthquake, providing emergency support in D R Congo after the eruption of the Goma volcano and in Myanmar afterthe military takeover, and in Ukraine. where we support churches working in the war-torn Donetsk and Luhansk ￿gIonS 0 15 Covid-19 Natural disaster Emergency support TYPE OF PROJECT 4Y > We are guided by the book of Proverbs to: "Speak up and judge fairly; defend the rights of the poor and needy" and it is by this that BMS partner, the Uganda Christian Lawyers Fraternity IUCLF). seek5 to provide a voice to the unfairly disadvantaged. Among the 298 people who received legal advice last year, many were women often excluded from recourse to the law, including a woman from a village in Iganga Distrirt. Her husband had forced her and their three children out of the house when he wanted to marry another woman. UCLF conducted a mediation, with the outcome that the woman and her children kept the house. fd .?. Llsd7.rydJ c41-Y0￿.* eYous.4 food 1'.,.7nlv:o gP.rfS ￿PPO￿L￿d.)gr￿￿l1Ur.lI trLlrniDg. IBMS Annual ReF)or. 114 Uganda When Lucy realised that her two-year-old son Jeremiah wasn't nitting his development rp.ilestoiie5. she wa5 referred to BMS-5upported worker Isaac's speech and language therapy clinic, the first ol its kind in Gulu, Uganda. Within fLVe months, Jeremiah was sitting up oiTr his own. Now, a yearand a half on, hes up on his leet. W31king and dancing. Their next -1 goal is working on Jeremiahs speeth. in preparation for sending him to school. Bangladesh When a pastor in Rangpur. Bangladesh reached out wth his plan for keeping 9*15 school. BMS workers Louise and Peter Lynch. in partnership with the Asia PacrfTrC Baptist Aid and the BBCS got to work. School bags. pens. paper and food packages were handed out to children from six villages, with each family receiving a strong waterproof ba9 to keep precious item5 and documents safe dur￿9 monsoon flooding. Guinea For Six month5. seven-year-old Dian2" Ivas bedridden with a life-threatening illness no-one could determine. She would normally have been at her kindergarten. run by 8MS' partner in Guinea. learning, playing arid hearing Stories from the Bible. BMS worker Caroline. usually treats stroke patients and was 15Ckm away. But th?.nks to onlii)e video calls. she could make a diagnosis and provide treatment Two months later. they met in person kvith Diana able to walk with the aid of her mother. "Name changed SFieak up for those who cannot speak for themselves, for the rights of all who are destitute. Speak up and judge fairly; defend the rights of the Door and needy. PROVERBS 31: 8-9 LOOKING FORWARD >>> Alongside our partners, we continue to provide strong transformative projects and mission work to many of the poorest countries in the world. We will continue to do so, but less through an institutional model and more through increasing the capacity of these local partners so that they can develop 5UStainability and resilience. Church and Community Mobilisation ICCMI remains key. Now CCM strurtures are in place, increased capacity to roll.out trainin9. particularly in Nepal and India, will seÈ us in-line with five- year targets. S Annual.Report 116 LEAST EVANGELISED FACT FILE Number of people participating in churches and associated networks-. 103.877 In the places where the gospel has never. or hardly, been heard. VR knill use all we have leamt over the decades to train mission worker5 to break 9round in those hard-to-reach places. We will send people from all directions in all direction Alongside UK mission workers, we will co-send Global South workers within areas where the need is greatest, in ways that most fruitfully 5￿t the context. Across Asia. we have collaborated with partners towards establishing a mission hub in India, which will recruit and train mission worker5 to be co-sent across the region. In North Africa, we remain in an exFAoratory phase. both in terms of building sustainable partnerships and in our approach to training and sendirKJ people into suth volatile and sensbtive areas. In countries we call barren soil locations, which include Afghanistsn and Guinea, we aim to ensure an incamational presence where the Church is scarcely present Number of mission workers and 5UPPQrted partner workers: 111 (target 150) Number of fellowships established by church planters in the 'Green Window.": 246 (target 37) Number of mission workers placed in barren soil locations.. 13 'Tribal areas where less than 5 per cent of the indigenous population Is Christian BMS Annual Report 117 Fisherman Rocky Baroi is 39, married, a father of two girls, born in southern Bangladesh and with no church in his life. One night while out fishing. Rocky's boat sank and he cried out to Jesu5. Nearby lisherman rescued him from drowning and changed Rocky's life. In February 2005 he was baptised and felt called to Ministry. Rocky first studied at the Bms-linked Christian Disciple Training Center in 2009 and returned in 2021 to gain theolo9y degree. Now, Rocky teaches the children in his local church. and trains others how to plant new churches in a new place. At present. three churches and live house churches have been established by Rocky's associates, and he continues to "preach the gospel where the people do not yet hear the good news." PkntLi gMS.woorted &inglade￿ tharmg the 90spe. J.von9 Deopit. %*ho niTrver l.f41..dJt bLLforc. BMS ArnJ Reportl 18 P thought that being a woman meant that she couldn't lead or teach the Bible. That all changed when she came into contact with the 5POrt5 ministry at the Thai Karen Baptist Convention in Chiang Mai, Thailand. And while P discovered she wasn't so good at Sports, She uncovered a hidden gift for cultivating discipleship among those around heri particularly children. When she returned to her church, she used the sports skills she had learned to connect with the young people and to tell them more about God's story. P discovered that She could be a spiritual mentor and a person who they trust. Those children who were once shy, now come to P for guidance. As P told us, '1 thank you God that he has blessed me in my Service with the children. Phoio.. In Wan9 Da¢ng. fhaHan6. Ihe rhuf-h ￿ bs9erthaneverbelore. BMS Annual Report 119 LEAST EVANGELISED THE STATISTICS DISTRIBUTION OF GRANTS TO PARTNERS (BY REGION) Asia: £282,IXt) (73.8% Europe.. £64,(XX) {16.8%} Middle East and North Africa: £20,(m {5.2%) TOTAL. £382,C(() Sub-saharan Africa: £16,tm (4.V/o) FELLOWSHIPS ESTABLISHED IN THE GREEN WINDOW 250 226 The Green Window is the rainforest zone of the world. In these green areas there are tribal people groups who have never heard the gospel. There are more than 167 countries and territories and an estimated 2,2CNJ ethnic groups within this broad window. Green Window countries where BMS has a presence include Peru. India, Mozarnbique and Thailand. > 150 50 io Uttar Pradesh Kashmir Thailand LOCATIONS 120 Indonesia In partnership with the Asia P￿IfIC Baptist Federation and in collaboration wAth other partiiers in the field. we nave been PafL of 3 project to eqLliP and co-send a misston worker into a particiilar unreached people group in Dne of the most persecutÈd area5 of Indonesia. A recent VlSlt by one of our partiiers saw them return WiLh a positive SLirvey as to the fLlture mission developmeiit potential of this once hard-to-reach place. Chad Andrea and Mark Hotthkin (introduced on page 8) live simply in Bardai in a style just like the local Teda population. Although they differ in one crvcial respect. Among the Teda population. increasng numbers have taken a 'house help, from another part of Chad, who re often tieated a5 barely more than slave5. The Hotchkins have decided not to have a house help. Instead, as known Christians, they wish to demonstrate that in Christ there are no first-class and second-dass people groups. and that God places equal value on all. India Ranjeet Singh from Jammis in India. was addicted to alcohol. His Sikh faniiiy despaired of his drinking habits, which left them in poverty. One day his family invited a church leader from one of our partne". organisations over. He showed them The JesLlS Film. Ranjeet was watchin9 too in the bhckground and when he Saw the crucilixion of Jesus he began to cry. After the film the church leader talked with Ranjeet and told htm of a God who loves him. A fellowship has started in his nome with 15 to 3) tseople attending every Friday for worship. BMS Aiinual Repi)rt 121 11 For God so loved the world that he gave his one and only Son, that whoever believes in him shall not perish but have eternal life. JOHN 3= 16 12 LOOKING-. FORWARD >>> As we seek to establish more mission hubs across Asia. we are looking to build on the interest we have attracted from other agencies who have begun t0 See the value of our co-sending approach. In Latin America. we have established a Peru-based hub in collaboration with local partners. which is intended to be fully operational in 2022. The hub will send mission workers to locations categorised as 'lèast evangelised. around the continent and will a150 have a limited focus to gain access to indigenou5 populations. Our work looking to gain a foothold in North Africa remains an ongoing struggle. which we believe speaks of the difficulty in transforming lives in that area. We have hope that links WL¥ have made with di5ciple.making movements in other areas of the continent may prove fruitful over the comin9 year. Meanwhile, we are excited that three long-term mission workers have completed their training and are now destined for hard-to.reach locations. PhDio." 8MSpwJ*L% areWOwKfuvJie&{9veS￿1tllS (n LtYJnpn. BMS Annual Report 122 .Helen m•1￿ lar¥'. -"¥'lirld Rwlciy PEOPLE ON THE MOVE FACT FILE Number of refugees who have received training in vital skills for 'destin3tion' life.. 315 Itarget 320) We wa& with those forced to leove home. There are rn￿Y reascffts for flight. including war. confiict. persecuti￿. natural disastets, deeF>set desfituts'on and repres9￿. Ck mission wcrfkers and partner5 have seen examples of all of them. The UNHCR estimates that 82.4 million peO￿e worldwde are displaced, svhether intemally or having cro55ed border& That number has never been hw*r. Percentage of Bms-enabled refugees receiving adequate shelter and safe water- 100 (target 90) We aim to counterdrt this fragii ty ty. irr4)roving services in their origin countries". establithing partnerships of humanty in [￿a￿S of transrf and enoblin9 net￿￿ of Christian welcome in destination countries. Numberof peq)le trained to reach refugees through the collaborative ne￿orks.. 21x1 (target 961 Our hope is that as we contrlxrte to the ftourishin9 of C￿lmunitieS in the p)orest countries. thattran5formatic V￿11 offset the need to undertake haZa￿oU$ ioume)s to Europe and the ensuing vulnerability to exploitation. We are also realistbc. atKI a key part of capaaty-buibjng work in 2021 has focused on dTr￿￿9 on our evrien￿5 in Lebanon to inform our 'in transit. work. parb'cularty that based on the Greek i51and of Le5bos Number of relugee5 reached in destination countries= 9.866 (target 2,OtJ)) Greece Our partner in Lesbos created the ￿VIng Timber project, which Serves as a place men from the Mavrovouni refugee camp can work together on furniture building. One day, an Afghan rnan was building some chair& He began sharin9 about his life in Afghanistan and his farnilys needs in the camp. Though our partner doe5 not distribute dotling Item5 for men, one of our workers accompanied him to non-governmentsl organisations vého did. As they returned to the centre, the Afghan man asked why the worker would take time out of his day to help him then it wasn't "part of his job". In answer, the worker shared about his faith. They continued to talk and the worker wa5 able to share *out the teaching5 of Jesu5. International After ali interii3tioiial search, which we co1￿Ucte0 in partiiership with the Eijropean Baptist Fedei ?tion (EBF), Will Cunibia was appoiiited as EBF s Co-ordinator for Migration IssLlÈS, a iiew role wl.iich began iii Marcn 2021. Fuyded by BMS, WIl15 job lielps to expand ihe capacity of the Commission on Migra&ion to network. resource and Stipport Baptlsl worK With and aloiigside displ3ced peoples iiTr Eliropean destinatioii regions, Will is originally fr0177 Vir9inia in Ihe US, but had beeii Jorkiiig in Vieiiiia for the past IoLir years SLlPPOrting the refugee iiTrlegralbon work o-. Ib.e Aus'Lrian Bapt15iS. Afghanistan As part of building up communities in fragile countries, and before the evacuation in August ￿121, BMS mi55ion worker nd agriculiural expert Ruby" created a 'food forest., with apple, peèr. plum and walnut trees. Up in the rural mountain5 of Afghanistan, where the wnter snow melt can mean the difference between having enough to Èat in the spring. or utter despair, the forest attracted the attention of families in the surrounding villa9e5. coming to ask about how to look after fruit trees, feed and prune them. "NanR chknged In a year of continued catastrophe. our long-standing partner5 in Lebanon have come alongside local churches to help them implement relief projects for vulnerable individuals and families. Families like that of Imane, a Syrian refugee in Beirut. "The food prices are out of this world, ' she says. But thanks to the voucher she has recetved from the church. '1 was able to buy many thing51 couldn't afford anymore." The church has also provided Imane, and others like her, with hygiene kits and provisions to help them survive a harsh winter. Imane tries to help other families now by sharing what She receive5, "because I know now what it IS like to have nothing.. She has even been able to witne5S to her landlord. who once tried to evict her. "l introduced him to the church, and they have been helping him." Pholtr. B.I1Sy:ners are br￿￿9h¢Pe..c people ￿ Lebaffi￿ de5Pte rhe COunr.'y ts f3c.'ng. BMS Annual Report 125 PEOPLE ON THE MOVE THE STATISTICS DISTRIBUTION OF GRANTS TO PARTNERS (BY REGION) Middle East and North Africa: £788,1)Xi (47.3%) TOTAL: £398.(KO Europe.. £186,c￿ (46.PA) Latiii America.. 124.OtKI (60/0) LOOKING FORWARD >>> NO. OF MISSION WORKERS IN POOREST QUARTER-PERCENTILE COUNTRIES While 2021 was year of partnership building hr our n translr wort 85pedalty with our Lesbos-based partner. Russias invasion of Ukraln• in F•bnwy 2022 already has and wlll continu• to have a major impart on our cru¢ial work with 70 63 50 A sigmficant •hm•nt of our 42 of people to be sent to work amongst migrants in their d•stination contexL Wlth over 4 million refugee5 already LTeated by th• war in Ukraine. aur partnership with the European Baptist Federation and work developing our In￿1veMent with two we11*5tabllshed refuge network5. this aspect of our work will athiev• an importanc• b•yond what we codd hav• •nv15i•%w•£ 10 2021 ACTUAL 2025 TARGET BMS Annual Report 126 GENDER JUSTICE l am passionate about my newly created role of Gender Justice Covordinator nd being a voice for the voiceless, inspired by Proverbs 31.. 8. "Speak up for those who cannot speak for themselve5. for the rights of all who are destitute." I would love to see a global team of advocates empowered to speak up and act against the injustice5 we see all around u5, seeking to transform the lives of women and gir15 in all sphere5. These thampions of change are agents within their own, distintt communities. This fills me vith hope and rerbewed passion to challenge the unjust status quo. Jesu5 treated the women he encountered dignity and respect, which was radical for his time and Sad￿ remains all too radical in many parts of the world today. As a centfal part of my role. I will hold BMS to account as we continue to integrate our Gender Justice Framework into all area5 of our work. from reviewing the roles of women ¥￿thin our partners to mentoring women leaders and supporting our mission workers to navigate gender issue5 in diffe￿nt contexts. I feel my background as a Ugandan lawyer with experience working in my home country. Mozambique and now in the UK ha5 p￿Pared me for the many challenges of this exciting role. Annet Ttend(FMiller Gender Justice Co-ordinator EMERGING LEADERS "And David shepherded them wrth integrity of heart; with skillful hands he led them." Psalm 78: 72 BMS is committed to equigpii)g. trainin9 3iid ￿entOrIng partiiers across the world to help aevelop their emergin9 leaders These include BMS- supported worKers Baptist Jo4n Jaya Prakash for 5ndi3 af)d Koffi Soké Kpomgbe for Africa. who a".e Ine regional leaders of +he B3ptlSt World Alliance 'Hofizons' trai*1 in9 programme for youih and childreii's work. Back in the UK. we hp.ve a long-standing relatlollship with All Nations College, an interdenomi51atioi)al mission trainin9 Bible college validated by the Open University. Further afield. we have collaborative learn:.ng and training partiierships with the litei nètional Baptist Study Centre in Amsteroam through their Learning Network prograrnmes in Missional Leadership and Freedom ol Religion and Beliei. Alongside this. our India sending and Training hub britr.gs togeiher our work with the Institute of Vocational Excellence, Biglife in India 2nd Asia Pècilic Baptist Federation. BMS Annual Report 127 CREATION STEWARDSHIP "For in him all things were created: things in heaven and on earth. Msible nd invisible, whether thrones or power5 or nJlers or authorities.. all things have been created through him and fty him." Colossians 1: 16 BMS, through the appoinbment of Laura-Lee Loverirs as ￿Jrcreation Stewardship Co-ordinator, acknowledges the importance that in all our work in every location we must love God through hc￿￿uring hathr And to love God we must love our neighbour,. in the words of Laura-Lee, -we all depend on the same pLanet, so our thoices have corwuences for others, our choices a150 have a dimension ofjusti￿. The dimate crisi5 15 the waming that our choices we ever more uitical. the CO￿￿eqUenceS ever more global. "CIiTnate change is a threat multiplier. it takes all the other issues that we already care about Ipoverty, hunger, lack of education, heahhcare resources. gender justice, displacement of peoples) and rt makes them worse. "The climate crisis is also a symptom of a long-standing fundamental problem with how human beings consider themselves in relation to the natural world and one another. These are relationships corrupted by Sin but we know, by the grace of God. that they don't have to stay that way. which is why we all do what we do. right? "Certainly when I reflect on it as a Brit living in Peru for the last ten years. is it convincin9 that the cultural mindset that has been largely responsible for creating the environmental calamities we see now, can simply be re-directed to come up with the solutions? How we deal with. how we distribute and how we relinquish power requires a radical shift Irom what we think of the 'centre' to the 'rnargins' . We are wary of unified narratives of creation stewardship and dimate change because our experience in the world speak5 against it at every level. Even though socially and economically marginalised people are the first to be afferted by environmental degradation and climate change, their voice5 are often the last to be listened to. BMS. years of experience of not just being present but worknng alongside marginalised women ond men all0v￿ us to be an instrument for centring the voices of those who are tsngibly experiencing the disasters of the climate crisi5. It allows us to Pass on the call to action to all of us who are not yet affected. Laur&Lee Lovering Creation Stewardship Co-ordinator BMS AnThJal Report 128 CELEBRATING SUPPORTERS Nothing that featured over the last 29 page5 could have happened without the incredible financial and prayerful generosity of UK churthe5 and our supporters. From the small quiet prayer at yow desk when a story of tran5forrnation drops into your email inbox to a fundraising event involvin9 the whole thurch community, it all makes a difference. We are constantly surprised and Inspi￿ by the tsles that reach us of supporter5, acts of kindness and sacrifice. Perhaps no more so over the last year than when we leèrned of the escapades of 88-year-old Kenneth Hall. After hewing about the need for an x-ray facility at the hospital in Bardoi, Chad, Kenneth wanted to help. And $0. on his indoor rowing machine. he set off to row 65&m- the equivalent of the distance from Bardai to the nearest x-ray facility in North Chad. He completed over 6.5￿ pulls on hs rowing machine over three days and ended up raising over £13.IKIJ. So many SUFPOrters carne together after hearing our Covid-19 relief appeal for Nepal at the Baptist Assembly. We raised over £287.CW. which went in part to support health workets like Chaha. to be equipped with PPE, portable vaccine boxes and frid9es for storing vaccines - so they in turn could help other5. In fact, because of our supporters. gifts and prayers, we were able to say yes to other partners in Nepal and from neighbouring ountries who also desperately needed help. We have been truly humbled and deeply blessed this year by those who have gwen a final gift in their will. Thi5 ad of selfless love leaves a lasting legacy that will enoble BMS, work for many yews to come. Our legacy pack can be ordered from our website. ong5ide wonderful individuals. church communities have also sent U5 their stories. FirsL we heard from Prince's Road Baptist Church. who raised over £2.5(J) by encouraging the congregation to donate wthat they might ordinarily hove spent on an Easter egg. NexL Kidlington Baptist Church shared wtth u5 their youth grwp challenge, which turned into a church.wide attempt durin9 lockdown to wRlk the distance to Guinebor11 hospital in Chad back, all to raise money for BMS, Operation.. Chad appeal. When the hnal step was taken, all who had participated managed to walk around 7.962 miles and raised over £3.4C(). We know of many other such stories of faith_lilled generosity and know too there May be many that we never hear about- or, when we do. do so in the form of an answered prayer or an unmarked cheque. Our supporters rrkike all that we do possible and for that we remain always grateful. "Name Ch￿￿d PhuTOS TOJ to DgitL*)I. 8klS¥pfftts ￿¢re￿i￿re heaa$ 10 See God5 l¢ve (n tton acioss the ￿0-￿e. Iro￿. Ch40 to Pew. 9?ngladesh io AlbAniJ 11 The Lord is my strength and my shield; my heart trusts in him. and he helps me. My heart leaps for joy, and with my song I praise him. PSALM 28: 7 PfrAJt4L' Iho th41ty￿s1￿coreOffe￿e￿tt: Gufftebor11 ￿5￿tI?1 ? hooe zo filrnjkes liv￿9 m wvcrty. ABOUT OUR FINANCES 11% HISTORIC PARTNERS 11% RAISING AWARENESS 16% PEOPLE ON THE MOVE HOW WE SPENT CHARITABLE EXPENDITURE OF £7.2M 18% LEAST EVANGELISED 44% MOST MARGINALISED EXPENDITURE Totsl expendwture for the year was n.6m (3)20 £9.4ml of Yknich £7.2m12020 £9ml was committed to supporting nd developing the variou5 charitable objects of BMS- this represents 96% {3)3) 96%) of total expenditure. The overall expenditure figure looks strong,. it takes into account commbtments that have been made to partners, a number of which have struggled to take forward projects dur￿9 covid restrictions. BMS Annual Report 131 Donations Legacies Relief BMS India Investment. property and ncktdpry9rants) CATEGORIES OF INCOME The graph cornpares categories of income, and indudes an annuali5ed l)20 bar to compare 2021 with a 12-month equivalent for 2020. In a period vknen BMS was braced for income decline it has been an enomous tribute to churches who have sought to maintsin or increase their donations, and in particular to individuals who have 5ignificant]y increased regular and appeal giving including Covid. Operation Chad. the Beirut explosion and thristrnas appeals. Legacy income is usually determined by a small number of high value legacies. It is believed that in 2020 the figure was aFFected by delays in estate administration and the probate process. with these coming through in a particulady high figure in ￿21. BMS India income of £0.7m (20KI £O.Im} wa5 primarily donation5 from visitors to the Kolkata guesthouse which ha5 been dosed for most of the last 2 year5. Profits Irom the guesthouse are normally ￿ed to support initiatives such as Street Servants in Kolkata and in both L121 and 20x1 BMS India drew from its reserve5 to continue this work. For the second year running the Action Team Igap yearl programrne wa5 cancelled and the residential centre. Wallis House has been closed to most residential activities since March 2020. Grant income in 2020 included government funding from the luilough scherne. BMS Anrual Report 132 TRUSTEE REPORT The Board of Trustee Directors IBoardl of the Baptist Missionary Society (also known as 'BMS World Mission, and 'BMS'I presents its annual report and audited financial statements for the year to 31 December 2021 (with comparative figures for the 14-month period to 31 December 20201. The financial statements comply with Cu￿nt statutory requirements, the memorandum and articles of èssociation. the requirements of a direttorfs report as required under company law. and the Statement of Recommended Pfactice- Accounting and Reportin9 by Charities: SORP applicable to charities preparing their accounts in accordance with FRS102. ststement of Trustees, responsibilities Trustee Direttors cfrustees) are responsible for preparing the Strategic Report, the Annual Report and the financial statements in accordance with applicable law and regulations. Company law reqUI￿S Trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the 9roup and charty and of the incorning resources and application of resources. including the income and expenditure. of the gro￿ and charity for that period. In preparing these financial statements. Trustees are required to: select suitable accounting polioes and then apply them consistentty. make judgements and accounting estimates that are reasonable and prudent. state thether applicable UK Accounting Standards have been followed. subject to any material departures disclosed and explained in the financial statements. prepare the financial statements on the going concern basis unle55 it is inappropriate to presume that the charty will continue in bu5ines5. Trustee5 are responsible for keeping adequate accounting recofds that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position ofthe charity and enable them to ensure that the financial statements comply with the Companies Att 2CQ6. They are also responsible for safeguarding the assets of the charity and hence for takin9 reasonable steps for the Prevention and detection of fraud and other irregularities. Financial statements are published on the charity¥ website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements. which may vary from legislation in other jurisdictions. The maintenance and integrity ofthe charity's website is the responsibility of Trustees. Trustee5' responsibility also extends to the ongoing integrity of the financial statements contained therein. BMS Annual Report **/ 33** ## **Disclosure of information to auditor** The Trustees who held office at the date of approval of this Trustees’ Report confirm that, so far as they are each aware, there is no relevant audit information of which the charity’s auditor is unaware, and each Trustee has taken all the steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the charity’s auditor is aware of that information. ## **Auditor** Following a routine review of audit services, Sayer Vincent LLP was appointed as the charitable company’s auditor during the year and has expressed its willingness to continue in office. The Trustees’ Annual Report, including the Strategic Report, was approved by the Trustees on 23 May 2022 and signed on their behalf by: ## **David Marc Owen Chair of Trustees 23 May 2022** BMS Annual Report 134 OBJECTIVES AND ACTIVITIES Charity objects and public benefit BMS exists to see people brought to faith in our Lord and Saviour Jesus Christ and experience the abundant life that only he can provide. This enable5 Baptist churchesto respond to the call of God throughout the world in making known the gospel of Jesu5 Christ to prevent and relieve poverty, Sickness and human suffering caused by disasters overseas. and to promote and advance healthcare and education. BMS brings wblic benefit by focusing on some of the Most Marginalised and Least Evangelised areas of the world. and with People on the Move who a￿ di4)laTrd from their homes in these areas. BMS works in places where churches are scarTrly present and in some of the poorest nations as defined by the Multidimensional Poverty Index (MPI). We work on service delivery through partners in the bottom quarter of the MPI where state and market are inadequately developed to support basic human resilience and flourishing, and working with partner churches towards COTnmunity transformation. to meet localised gaps not covered by the state or market in the third quarter of the MPI. BMS aims to support people with opportunity and basic services in location5 that have a high refugee ourfow towards Europe and is also developing work with transit refugees on the provision of basic humanitarian assistance. The charitsble work of BMS is funded by over £7rn of public donations per annum1£8m in this period). The trustees review the aims, objectives and activities of the charity each year. This report looks at what the charity has achieved and the outcomes of its work in the reporting period. The trustees report the succe55 of each key activity and the benefits the charity has brought to those groups of people that it is set up to help. The review also helps the trustees ensure the charity's aims, objectives and artivities remained focused on its stated purF)ose5. The trustees have referred to the guidance contained in the Charity Comrnission's general guidance on public benefitwhen reviewing the charity's aims and objectives and in planning its future activities. In particular. the trustees consider how planned activities wll contribute to the aims and objectives that have been 5eL BMS Annual Report 135 STRUCTURE. GOVERNANCE AND MANAGEMENT Structure BMS is a registered company limited by guarantee in England and Wales, and a registered charity in En9land and Wales. It is governed by tts memorandum and article5 Of association. Baptist Missionary Society India- BMS has worked in India since its inception more than 2￿ years ago, but formally registered as a charitable organisation on 19 March 2015. Its objects align with those of BMS, who appoints the Trustees. Accordingly. consolidated accounts incorporate the activity of BMS India. BaptlSt House Limited- BMS has a 50% share in Baptist House Limited. The 50% share of assets and liabilities of thi5 joint arrangement with the Baptist Union of G￿at Brrtain (BUGBI ha5 been included as an investment in Balance Sheet and details are induded in Note 8b. BMS accounts for its share the Service char9e as charitable and share ofthe surplus as unrealised investment income. Governance The BMS Council are the company members of BMS. Council mernbers will remain in Offi￿ for a term of 3 years and may serve up to 3 consecutive terms. There may be up to 72 Council members who include the subscribers to the Memorandum. the Trustees and those appointed by the Baptist Union5 of Great Britain, Scotland and Wales, the Irish Baptist Ne￿OrkS, the colleges recognised as Baptist colleges. and by co-optation. The Council normally meets at leasttwice a year. In 2021 meetings were held on-line in May and October. Trustees are elected by the Council. will remain in office for a tefm of 3 years and may Serve a maximum of 3 consecutive terms. Those nominated as potential Trustees are reviewed to ensure they have the necessary skills to contribute to the tharty's development before the Council puts them forward for consideration. When elected, each new Trustee receives an induction pack including Charity Commission publications and a range of key organisation policies and documents. All Trustees receive an induction, co-ordinated by the Chair of Trustees and the General Director, which include5 a presentation on the organisation. an opportunty to meet key stsff and become familiar with the BMS. Trustees also have access to a secure intranet web-based system where they can ac￿55 Board papers and other information. Trustees stay abreast of changes in good practice and legislation. They desi9nate one full day meeting each year specifically for relevant Board trainin9 and in 2021 this included an in-depth workshop exploring the implication5 of polycentric mission for BMS. A Board Manual is used as a reference guide to good govemance at Board level. BMS Annual Report 136 The Board has carried out a 5elf-asses5ment against the Charity Govemance Code and the Board concluded that the charty's overall 9Jvemance is robust and in line with good practice. The Board has an action log to ensure continuous improvement against the Code's recommended practice. During 2021, following the 3)20 update of the Code. the Board determined to engage consultant durin9 2022 to add independent rigour to a review of practices. Three committees have been constituted with specific terms of reference and functions delegated by the Board. The Finance andAudit Cornmittee-advises on all aspects of the charty's finances. including the financial accounts, annual estimates. risk management. investrnent management. income generation, propety matters including Baptist House and Walli5 House, salaries. mission personnel allowances, pensions and employment matters. They also advise on policy matters that relate to the future planning of the tharty's finantss. including such issues as reserves and the balance between the different categories of expenditure. They consider the appointment of the extemal auditors and any questions oltheir resignation or dismissal. di5CU5s with the external auditors before the audit comrnences the nature and scope of the audit; receive the auditors, management reports following completion of their audit work and review the annual finanoal statements before submission to the Board of Trustees. The Refftuneration Committee- athises the Board of Trustees on the appropriate remuneration of the General Diredor and Executive Directors and their Terms and Conditions of employment. The Committee provides advice to the Board on staff grading 5trutture. salaries and benefits. The Nominations Committee - nominates people lor appointment as Trustees. The appointment of a Trustee from amongst those nominated is made by Council members. Safeguarding Trustee- a designated trustee has spectfic respcmsibility for oversight of safeguarding. Management Trustee5 are the govemance-level decision makets for the charity. The Board currently numbers 10 experienced and committed people from a wide range of backgrounds and experience who usually meet in formal Board rneeting5 fourtimes per annum. The Executive Direttors attend meetings of the Board but do not vote {with the exception of the General Director who is a Trustee). Management of BMS is delegated to employed staff who are responsible for delivery of day-to- day operations to deliver the strategy set by the Trustee5 in accordance with BMS policies. BMS Annual Report 137 Within BMS there are currently five main departments each with its own director.. General Directorate- providing overall leadership lor BMS with major emphasis on theological reflection. strategic thinking and representation Department of Finan￿ and Corporate Service5- responsible for all the support functions for BMS including finance. investment rnanagement. risk mana9ement HR, administration and IT Department for World Mission- responsible for 8MS mission work overseas. Key roles include recruitment and placement of mission personnel and relationships with overseas partner bodies Department of Intercultural Learning and Collaboration- responsible for prtrdeparture preparation and training partnerships Department for Communications and Funding - responsible k)r BMS. corporate communications Portfolio. including funding, creative content and church relations Responsibilty for our work overseas 15 SUPPOrted by a team of Oversea5 Team Leaders who have re5pon5ibility for mission personnel and partners and combine this with leading specific ministries. Broadly speaking our work falls into 4 main geographic ￿gIOnS- Asia, su&Saharan Africa, South Arnerica, and Europe. Middle East and North Africa. The charty works oversea5 wrth partner organisations, providing funding by way of grants andl orthe provision of personnel. Details of these partners and grants can be found at Note 6 of the financial statements. Pay and remuneration pollcy The constitution makes particular provision for the General Director to be a Trustee as well as an Executive of the charity. All other Trustees give their time freely and no trustee remuneration was paid in the year. other than to the General Director. Details of this remuneration, trustee expenses and related party transactions are disclosed in note 10 to the accounts. Salaries of all staff. including the Executive Directors. are reviewed annually. takin9 inflation and the overall financial position of BMS into consideration. BMS follows a 9rading and evaluation structure, and benchmarks salaries from time to tirne (last carried out in 20191. 3.2 Grant makin9 policy Christian stewardship underpin5 the BMS grant making policy in that it demand5 our integrity, diligence, good practice and wisdom. Grant applications must meet specific BMS principles. represent 9ood stewardship and be able to rneet BMS criteria for monitoring, evaluation and learning. Partner organisations are subject to due diligence and money laundering procedures. In the period the charity awarded grants of £1.8m (2020: £2.5m). The Tru5tees' policy is that grants are made against a budget. approved by the Board ofTru5tees and mana9ed by the Department for World Mission. Grants outside the budget are made from the mission innovation fund for new work, or from the relief fund in response to emergencies. The 2020 fi9ure is restated to take account of a prior-year adjustment. The change in year-end date to December resulted in the need to reco9nise grant commttments for the nextfinancial year. BMS Annual Report 138 Investment policy and review of investment performance The Trustees have the power to invest in Such assets as they see fit. The statements of investments prinaples set out the principle5 9Jvefning decisions about investments for the general and endowment fund5 and incorporate the BMS ethical investment policy. These statements are reviewed by Trustees regularly. The entire BMS portfolio 15 invested in the CCLA Ethical Investment Fund to athieve investment requirements that balance income and capitsl growth, and to adhere closely to the BMS ethical investment policy. The CCLA Ethical Investment Fund was selected to be 'medium' risk and has a target return of CPI + 5% net of fees, of which the incorne target is 3%. The BMS General Fund investrnents and Endowment Fund investrnents (unless specifically allocated in accordance with the fund) are in the COIF Charitie5 Ethical Investment Fund. The income yield for the fund for year to 31 December 2021 was 3.06%, and the net annualised return for the Fund was 16.8% (to 31 December 2020 the yield wa5 3.21°A and net annualised return 9.8%). CPI was reported as 5.7%12020 0.4%). The market value of General Fund investments at 31 December 2021 was £4.8m (31 December 2020 E4.2m); endowment and propety fund investments were £2.9m131 December 2020 £2.5m). The graph showing market review data demonstrates the fund performance. The unit price at 1 January 2021 was 279.31 and at 31 December 2021 was 316.25. The graph shows the performance to date in 2022 with the price dropping to 296 67 at 7 April 2022. This is a reduction in total value across the lunds of £0.3m. COIF Charities Ethical Investment Fund Intomè units Zoom Im 3m 6m YVD Iy From Jan 1. 2021 2022-Q4-0 320 30 280 260. ?1 Apr'?} .21 O(i'?I b?2 Apr'zz BMS Annual Report 139 Going concern The trustees have made an assessment of the charity's ability to continue as a going concern for a period of at leasttwelve months from the date on which the financial statements were approved for release. As a result of our assessment. we consider that the charity is able to continue to operate as a going concern and that it is appropriate to prepare the financial statements on a going concern ba515. We have made this assessment after reviewing the Charity's forecasts and projections. which are being continually updated. The trustees are of the opinion that the Charity will have sufficient resources to meet its liabilities as they fall due,. if necessary, this can be by drawing from investments. In making our assessment we did not considerthere to be any material uncertainty relating to events or conditions that individually or collectively may cast significant doubt on the charity's ability to continue as a going concern following a review to consider any material risk. BMS Annual Report 140 PRINCIPAL RISKS AND UNCERTAINTIES Trustees regulady review the intemal and extemal risk5 to BMS and give consideration to organisationol attitude to risk. Trustees have identified the most important potential risks and uncertainties that may Serious￿ affect the performance. future prospects or reputation of BMS, and have assessed how the risks are being managed. Potential risk How we manage the risk BMS has a comprehensive 24-hour cri515 management policy and crisis response plan. with detailed procedures for handling a wide range of crisis events. Our commitment to work in dangerous pla￿5 requires u5 to embrace. but minimise. a certain level of risk. When necessary BMS withdraws or moves mi55ion personnel for a period. Regular crisis response scenarios and reviews are undertaken to embed reparedness. BMS takes thi5 risk extremely seriously. Well- developed communication and safeguarding processes are in place and BMS works with a specialist provider to train staff and partners and actively v￿rkS to Strengthen partner understsnding of Safeguarding. BMS has an experienced trustee with designated responsibili for safe uèrdin An independent but close relationship is maintained with the three mainland Baptist unions to Stay abreast oftheir own risks and uncertainties. Risks are faced by BMS mission vlorkers and staff as a result of the BMS strategy to work in fragile states amidst pronounced global insecurity. in Issues around the protection of children and vulnerable adults in its care and in the care of mi55ion workers. BMS support comes primarily from the Baptist denomination which provides a loyal and consistent support base. However. BMS is vulnerable to the financial strength. risks and uncertainties of the Baptist Unions of Great Britain, Scotland and Wales and their member churches. This 15 particularly exacerbated with the risks to the UK economy from Covid. Brexit and the c05t of living rises acr055 the world. Giving from individual supporters is being increased to decrease our dependency on income directly frorn churches. Several fundraising products and relationship management tools are used to build and enhan￿ our relationship with supporting churthes and individuals. Staff members are developed and trained in fundraising practice. and keep abreast of indust trends and innovations. A rigorous reporting framework is in place to monitor results against the strategy. Not demonstrating suffi'cient impact from our work, or failin to meet donor expectations. BMS Annual Report 141 Potential risk How we manage the risk BMS has a rolling programme in relation to partner capacity building and en5urin9 financial scrLrtiny over the overseas transactions. Financial reviews and control capacity is monitored through regular reports to the Finance and Audit Advisory Commtttee. refletted back in ongoing leaming. The majority of the charitys expenditure takes place overseas which heightens risks in term5 of fraud and ensuring this is spent in accordance with the Charitys objectives. The new 2020- 2025 strategy extends activity into new areas of work and new partners. Special reviev*S are in place to support new strategic initiattves A programme of partner visits is scheduled for 2022. BMS adhere5 to guidance issued by the UK government and has procedures in place to reduce the possibility of spread through its UK and overseas based personnel, of global pandemics. BMS actively promotes access to counselling for staff and mission personnel, and ha5 introduced extra contact, flexibility, resOur￿S and activities to engender well- bein The nature of BMS work means that personnel are at greater risk of being conduit for the spread of global viruses. FINANCIAL REVIEW Movement in funds Taking the charity's funds in totsl. there was net income for the year of £1,569k12020 deficit £886k), a net gain of £904k12020 £596k) from the appreciation in value of the investment portFolio held by the charity. an actuarial gain on the defined benefrt pension scheme of £958k (20201oss of £1.196k), an exchange loss on assets held overseas of E5k12020 loss of £39k) and no exchange gain or loss on forward contracts12020 £17kl. The overall posttion wa5 a net increase in total reserves of £3.4m12020 a deficit of £O.1.5m). The pension fund deficit based on accounting provisions has improved to £0.5m (2020 £1.4m). Reserve F>olicy and fund position Trustees have a reserve5 policy that takes a risk-based approach. The policy was reviewed in 2021, in particular taking into account lessons leamed from considerin9 the covid threats to being a going concern. Trustees have examined the retwirement for free reserves. Trustees consider that, given the nature of our work thi5 should equate to a range of be￿een £4.Om to £4.5m to provide the flexibility and resilience to cover any 5hort-term funding crisis or a medium-term recession, arsd a large portion of this needs to be matched by cash. BMS Annual Report 142 Free reserves 2021 2020 Unrestricted funds nated fund5 Pension fund £13.4m £10.2m Desi (£6.7m) £0.5m 1£5.8m) £1.4m Free reserve5 £5.8m Trustees maintain a financial plan to manage the IxJd9et so that the tsrget level of reserves is achieved and maintained, and that thts is matched by sufficient liquid funds. Such plans will take into account the long-term funding status of the charty's pension scheme and ensure that deficit payment commitments can be met. The current balance exceed5 the ￿serve policy by £2.7m. The Trustees had deliberate￿ built reserves to invest in Strategy 2025 and have now been looking beyond this to plan investrnent in the k)nger-term pOly￿ntrIC vision. The charty also holds fun& designated for specific purposes. without le9al restriction, a5 follows.. Designated funds Fixed asset Major repairs Mission innovation 2021 2020 Purpose £5.6m Net book value of unrestricted fixed assets For re air5 spent in ear or no lon er needed For initiatives not in bud et, topped up in ear Set aside for 5-year financial strate lementation To ensure consistent response in economic downturn £5.3rn EO.1m £0.1m £0.Im Strate £0.9m Covid economic impact Carbon offset fund £0.4m Below £0.1m. desi nated to environmental pro ects £6.7m £5.8m The triennial valuation ofthe BMS defined benefit pension scheme wa5 carried out as at 31 December 2018; the nextvaluation will be as at 31 December 2021. The defKit in 2018 was calculated to be £1.5m. During 2021 employer administration contributions of £0.1 Sm were paid {2020 EO.15m). The fvnd valuation for accounting purpose5 at 31 December 2021 was deficit of £0.5m12020 £1.4rn). The funding posttion at 31 December 2021 based on the actuarial assumptions used in the last triennial valuation estimated a surplus of £0.6m {2020 surplus £0.4ml. Endowment funds Included in the balance sheet are endowment funds totalling £2.7m (2020 £2.3m), the capital element not bein9 available to be spent. Income from the endowment funds ha5 been spent during the year. Restricted funds Restricted funds are subjert to specific conditions imposed by donors. The reserves policy for restricted funds is for sufficient assets to be held to meet the obligations of each fund and this is the case as at 31 December 2021 the total was £1.3m (2020 £1.3m). The ￿serveS of BMS India of £0.4rn (2020 £0.4ml are consolidated in the restricted fund balan￿. BMS Annual Report 143 Effectiveness of artivities to generate funds Direct fundraising costs are a very small proportion of BMS expenditure (less than 5%}. A large proportion of our incorne comes from our carefully managed relationship between BMS and our 5UPPOrting churches and their member5. BMS does not use professional external fundraisers. BMS is registered with the Fundraising Regulator and the Fundraising Preference Service and is compliant with the Code of Fundraisin9 Practice. Our commitrnent to these important voluntary standards ensures that we always champion the privacy and rights of our audience and minimise the risks of any of our fundraising activities resulting in distre55, inconvenience or undue pressure. particularly on vulnerable people. In the last year we received nine complaints in response to our fundraising material, out of tens of thousands of mailing5. The mattets were handled swiftly. ca￿fUllY and in accordance with our fundraising complaints procedure. There was a great out outpouring of generosity at the Baptist A55embly in response to our Covid appeal. Many new donors have responded to appeals throughout the year, many have become re9ular donors and others generously increased their monthly giving. We are thankful to God for his provision, and to our many SUPF)Orter5 for their continued generosty. Pension Fund arrangements Following a review of our Pension Fund arrangements for UK staff and overseas mission workers, the defined benefit scheme was closed to future accruals and a defined contribution section of the scheme was opened on 1 November 2010. The triennial valuation of defined benefit section at 31 December 2018 showed a fijnding deficit of £1.5m. A deficit payment of £0.6m is due by September 2022 and £0.4m by September 2025. The $￿-year recovery plan agreed with the Pension Trustee in 2019 ha5 been implemented and is on track. The Trustee5 are pleased that the strength of the lund has enabled the Pension Trustee to put in place a long-term de-risking investment 5trate9y to arrive at a lon*term low dependency tsrget in 15 years. time of gilts + 0.5%. The initial stage of this long-term strategy was a portfolio in 2020 targeted at gilts +1 %. In 2021 the risk was reduced to gilts + 0.75%. Equty investsment is not a part ofthe portfolio, but it has been possible forthe Pension Trustee to maintain a strong ethical and responsible position on investment fund selection. Trustees support the Pension Trustee in its long-term approach to investment management. During 2020 after discu55i0n with the Pension Scheme Trustee. the BMS Trustees decided to close the delined contribution section of the scheme and after a review of provider5 the pension provi5i0n moved to the Aviva Master Trust. From l June 2021, monthly contributions were made into the Master Trust and on 6 August 2021 the defined contribution scheme assets were transferred in bulk. BMS Annual Rep)rt 144 Factors likely to affect the financial performance going forwards and post year- end events The major financial concerns that BMS faces is the econornic outlookfor the UK and the world economies. In 2021, the decision was made to withdraw mission personnel from Afghanistsn. and since then projert and the funding has also been postponed. Providing the conditions improve, work in Afghanistan is expected to resume but if this is not P055ible then a significant programme of work will be affected. The damaging impact of Covi&19 continued to seriously affect partner activities and the ability of BMS to fund projects and activities. The ongoing impact has been factored into future financial plans and contingency acbons agreed should the impact be greater than anticipated. The trustees have reviewed the plans and agreed a series of activities that should ensure financial Stability rf necessary. BMS is working alongside the European Bapt15t Federation in ￿spOnse to the war in Ukraine. The response from supporter5 for reliefwork has been substsntial. The situation in itself is not expected to have a material impact on financial performance. On review of the financial plans to the end of June 2023. and given the further management actions that are feasible, the trustees have concluded that this will not affecithe ability of the charity to continue as a going concern. BMS Annual Report 145 REFERENCE AND ADMINISTRATIVE DETAILS Trustees Rev David Marc Owen (Chairl Mr RobertAshurst {Honorary Treasurer) Dr Anthony Agbonasevbaefe (From May 2021) Rev Simeon Baker Dr Elizabeth Bendor-samuel Ms Lynn Cadman Rev Lindsay Caplen (to March 2021) Dr Marion Carson Rev Kalyan Das {to March 20221 Ms Ruth Elliot Dr Stephen Green Ito Feb 2021) Ms Helle Liht (from May 20211 MrJohn Slater (Vice Chairl (to March 20221 Dr Kang-san Tan Rev John Westem Ito March 2021} Key management personnel Dr Kang-san Tan (General Director) Mrs Sarah Anthony ICo-Director- Communications) Rev Dr Arthur Brown (World Mission) Mr Ben Drabble (Co-Director- Comrnunications) Ms Valerie Stevens (Finance & Corporate SeNices) Mr Stephen Sanderson1Strate9yI from February 2022 Mr Peter Oyugi Ilnterojltural Leaming and Collaboration) from February 2022 Auditor Investment Managers Sayer Vincent LLP Invicta House 108-114 Golden Lane London EC1Y OTL CCLA Investment Management Limited Senator House 85 Queen victoria Street London EC4V 4ET Principal Solicitors Artuary Anthony Collins Solicitors LLP 134 Edmund Street Birmingham B3 2ES XPS Pension Group 1 Colmore Row Birmingham B3 2BJ Principal Bankers Registered Office Barclays Bank 1 Churchill Place London E14 5HP Baptist Missionary Society 129 Broadway. Didcot, OX118XD Telephone: 01235 5177 Fax: 01235 517601 Email: mail@brnswarldmisslon.ory Website: bmsworldmlssion.org BMS Annual Report 146 INDEPENDENT AUDITOR'S REPORT TO MEMBERS OF BMS WORLD MISSION Opinion We have audited the financial statements of The Baptist Mi5sionèry Society (the 'parent charitable company'l and its subsidiary {the 'group') for the year ended 31 December 2021 which comprise the consolidated and parent charitable company statement of financial activities, the group and parent charitable company balance sheets. the consolidated statement of cash Ilows and the notes to the financial statements, induding a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland {United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements: Give a true and fair view of the state ofthe groups and of the parent tharitable company's affairs as at 310ecember 2021 and of the group's and parent charttable company's incoming resources and application of resources. including its income and expenditure, for the year then ended Have been proper￿ prepared in accordance with United Kingdom Generally Accepted Accounting Practice Have been prepared in accordance with the reqU1￿ments of the Companies Act 2CiIS and the Charitie5 Act 2011 Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) IISA5 (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditorfs responsbilities for the audit of the group financial statements section of our report. We are independent of the group and parent charitable company in accordance with the ethical requirements that are relevantto our audit ofthe financial statements in the UK, including the FRC'S Ethical Stsndard, and we have fulfilled our other ethical ￿SponSibl11t1eS in accordance with these requirements. We believe that the audtt eviden￿ we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions related to going concern In auditing the financial statsments. we have concluded that the trustees, use of the going concern basis of accounting in the Pfeparation of the financial statements is appropriate. Based on the wc*k we have performed. we have not identified any material uncertainties relating to events or conditions that, individually or collectively. may cast significant doubt on The Baptist Missionary Society'5 ability to continue as a going concem for a period of at leasttwelve months from when the financial statements are aLrthorised for issue. Our responsibilities and the responsibilities of the trustees with respect to 90ing concern are described in the relevant sections of this reporL BMS Annual Report 147 Other in+ormation The other information comprises the inlormation included in the trustees. annual report, including the strategic report, other than the group financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the group financial statements does not cover the other information. and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and. in doing so. consider whether the other infomiation is materially inconsistent with the group financial statements or our knowledge obtained in the course of the audtt or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements. we are required to determine whether this gives rise to a material misstatement in the group financial statements themselves. If, based on the work we have performed. we conclude that there is a material mi55tatement ofthis other information. we are required to report that fact. We have nothing to report in this regard. Opinions on other matters prescribed by the Companies Act 21)06 In our opinion. based on the work undertaken in the course ofthe audit The information given in the tTUStees' annual reF￿rt. including the strategic report, for the financial year for which the financial ststements are prepared is consistent with the financial statements The tru5tees' annual report, including the strategic report. has been prepared in accordance with applicable legal requirements Matters on whith we are required to report by exception In the light of the knowledge and understandin9 of the group and the parent charitable company and their environment obtained in the course ofthe audit, we have not identified material misstatements in the trustee5' annual report, including the strategic report. We have nothin9 to report in respect of the lollowing matters in relation to which the Companies Act 2CX)6 and Charities Act 2011 requires us to ￿portt0 you if, in our opinion: Adequate accounting record5 have not been kept by the parent charttsble cornpany, or returns adequate for our audit have not been received from branches not visited by us; or the Parent Charitable Company Financial Ststements are not in agreement with the accounting records nd returns: or The parent charitable company financial statements are not in agreement wwth the accounting records and returns; or Certain disc105ures of trustee5' remuneration specified by law are not made; or We have not received all the information and explanation5 we require for our audit BMS Annual Report 148 Responsibilities of Trustees As explained more fully in the statement of trustees, responsibilities set out in the trustees, annual report, the trustees (who are a150 the dirertor5 of the parent charitable company for the purposes of company law) are responsible for the preparation of the financ+al statements and for being satisfied that they gNe a true and fair view. and lor such intefnal control as the trustees determine is necessary to enable the preparation of financial Statements that ale free from material rnisstatement. whether due to fraud or effor. In preparing the h'nancial statements, the trustees are responsible for assessing the group's and the parent charitable company's abiltyto continue as a 90ing concern. disc105ing. as appficable. matters related to going concern and using the going concern basis of accounting unle55 the tfustees either intend to liquidate the group or the parent charitable company or to cease operations. or have no ￿aLIStIC akemative but to do so. Auditor's responsibilities tor the audit of the financial statements We have been appointed auditor underthe Companies Act 2CQ6 andsection 151 of the Charites Act 2011 and report in accordance with those Ac Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement. whether due to fraud or error, and to Issue an aLJditors reportthat includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS (UK) vvill always detect a material misstatement when it exists. Misstatements can arise from fraud or error and ère considered material rf, individually or in the aggregate. they could reasonably be expected to influence the econom ￿ decisions of users tsken on the basis of these financial Statements. Irregularities. including fraud. are instance5 of non-compliance with laws and regulations. We deslgn procedures in line with our re¥)onsibilities. outlined above. to detect material misstatements in respect of irregularitie5. including fraud. The extent to which our procedures are capable of deterting irregularities. induding fraud are set out below. Capability of the audit in detecting irregularities In 1dent1￿.ng and assessing risks of material mi55tstement in respect of irregularities, including fraud and non-compliance with laws and ￿gUlations. our procedure5 induded the following: We enquired of managernent, and the Finance and Audit Advisory Committee, which included obtaining and reviewing supporting documentation. concerning the group's policies and procedures relating to-. 1. Identifying, evaluating. and complying with laws and re9ulations and whether they were aware of any instance5 of non-compliance- 2. Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected, or alleged fraud: 3. The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations. BMS Annual Report **/ 49** - We inspected the minutes of meetings of those charged with governance. - We obtained an understanding of the legal and regulatory framework that the group operates in, focusing on those laws and regulations that had a material effect on the financial statements or that had a fundamental effect on the operations of the group from our professional and sector experience. - We communicated applicable laws and regulations throughout the audit team and remained alert to any indications of non-compliance throughout the audit. - We reviewed any reports made to regulators. - We reviewed the financial statement disclosures and tested these to supporting documentation to assess compliance with applicable laws and regulations. - We performed analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud. - In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments, assessed whether the judgements made in making accounting estimates are indicative of a potential bias and tested significant transactions that are unusual or those outside the normal course of business. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. A further description of our responsibilities is available on the Financial Reporting Council’s website at: **www.frc.org.uk/auditorsresponsibilities** . This description forms part of our auditor’s report. ## **Use of our report** This report is made solely to the charitable company’s members as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed. Judith Miller (Senior statutory auditor) Date : 14 June 2022 for and on behalf of Sayer Vincent LLP, Statutory Auditor Invicta House, 108-114 Golden Lane, LONDON, EC1Y 0TL Sayer Vincent LLP is eligible to act as auditor in terms of section 1212 of the Companies Act 2006 BMS Annual Report I SO WS GIiOITr CONS01￿TED STATEMENTOF FINANCIALACnVITIÉS Foft THEYEAR ÉNDE0310ECEM8ER 2021 IMKrypr*7tfjn8anlhtoftR eyndkwe att0￿} iozi Amtatsd 14 2020 Unt¢stricted Re51rirted EndDYm*nt Fur UnrES1r￿0d RWStp￿ed Eth1o￿lI￿nI T¢pi4 QLI Dotha￿0￿5 afal 922 1*3 7.78 OthtttrathTry4drA¥•s 91 207 IU3 IBD Oth•r In¢tdlTh• 7$4 Total M¢¢mè 7.916 1.232 9.118 6.956 1.540 EXporA1￿1• I 874 L•th Most Pwpl• ¢Jn ih• Akn• oli¢ Pwkn*rt 74B 1702 1197 992 109 21* 799 1123 166 724 7A35 9.02• Toith tsxpenditU7Q 1.)7 7.18? 154 )iJ 14 Not incornqll¢speTrditw•l 4KC 1•7 n•n n•gJ d•W b•n•nt p• 11.1VO) •t mtsv*rneni in t￿￿d8 3.139 3.d26 Remn¢1￿￿On ollwth 1329 114e 1S.455 Tot)I lurKi% catDed Irarward lJ,?63 2.66D IY,3J9 10.224 1.342 2.347 13,913 BMS Annual Report 151 ems PAREIITCHARifYSTATeMENTOF flNANCIALACTMnE5 FORTHE YEAR ENDED 31 DECEMBER 2021 I*￿Atr￿gan kncorne andeY*fvditureactOUAtI 2021 R*st41•d 14 ¢MnlhF 2020 unrestrlrt￿ Restrirted EndosvmÈTrt Totsi Unttstsicted Restricted Endttwment Funds Fwdx 2020 D￿￿¢¥￿4 grwtsartd legaei** Oth•r tratling tie 922 1.153 1A13 183 olal inwme 4¢qs Rai%ln9 fLkn& L••rt Ev￿￿￿￿•d Mort M•r91r￿lIs0d P•opl• vn the MrN* 1.232 741 1702 1.273 87 3,65 192 954 109 79 21 794 1,023 7.43S 1.62 la6 978 1A10 tsl oxpenditul b4lw• fflov•fflentort N•t g•lns #n iTrve5tm•nts J13 14 199 J1) 24 197 109 Other r•eagnis•d 117) d•STr•d b•n•fitp•r•i .194 .190 N•t movempnt in lund5 3.458 T•¢•1 Iwds brou9ht ftywwd 11L324 13 11.774 1140 1492 Total Carried I•￿1rd 922 2.660 16.?45 10.224 916 2,347 13.487 BMS Annual Report **/ 52** BMS GROUP CONSOLIDATED AND CHARITY BALANCE SHEET AS AT 31 DECEMBER 2021 COMPANY NUMBER 10849689 |**Group**|**Group**|**Charity**|**Charity**| |---|---|---|---| |**2021**
**Restated**
**2020**
**Notes**
**£'000**
**£'000**
**Fixed assets**
**Tangible assets**
**11**
**5,908**
**6,206**
**Investments**
**12**
**7,667**
**6,763**||**2021**
**Restated**
**2020**
**£'000**
**£'000**
**5,636**
**5,914**
**7,667**
**6,763**|| |**Total fixed assets**
**13,575**
**12,969**||**13,303**
**12,677**|| |**Current assets**
**Stock**
**3**
**2**
**Debtors**
**13**
**1,917**
**2,057**
**Investments**
**36**
**97**
**Cash at bank and in**
**hand**
**4,204**
**1,924**||**3**
**2**
**1,883**
**2,016**
**1**
**1**
**4,117**
**1,893**|| |**Total current assets**
**6,160**
**4,080**||**6,004**
**3,912**|| |**Liabilities**
**Creditors: amounts**
**falling due within one**
**year**
**14**
**(1,909)**
**(1,773)**
**Net current assets**
**excluding pension**
**liability**
**4,251**
**2,307**
**Defined benefit pension**
**scheme liability**
**16**
**(487)**
**(1,363)**||**(1,875)**
**(1,739)**
**4,129**
**2,173**
**(487)**
**(1,363)**|| |**Total net assets**
**17,339**
**13,913**||**16,945**
**13,487**|| |**The funds of the charity**
**9**
**Endowment funds**
**2,660**
**2,347**
**Restricted income funds**
**1,316**
**1,342**
**Unrestricted funds**
**Designated funds**
**6,646**
**5,777**
**General funds (free**
**reserves)**
**7,204**
**5,810**
**Total funds excluding**
**pension reserve**
**17,826**
**15,276**
**Pension reserve**
**(487)**
**(1,363)**||**2,660**
**2,347**
**922**
**916**
**6,646**
**5,777**
**7,204**
**5,810**
**17,432**
**14,850**
**(487)**
**(1,363)**|| |**Total funds**|**17,339**
**13,913**|**16,945**
**13,487**|| ||||| **The financial statements on pages 50 to 71 were approved by the Trustees on 23 May 2022 and signed on their behalf by:** David Marc Owen **Chair of Trustees Date:** 23 May 2022 BMS Annual Report 153 B￿GRoUp CON50LIDATEDANDCHAR￿¥ STATEMENT OF CASH FLOWS FOR TrIEYEAR ENDED31 OECEMfieR 20ZI Gf¢up R95tated Z021 14 morlthx IQ20 Rpstated 14 rnOTrths 2020 2021 Net ¢a5h provkled byllused in>oper3W9 3th￿rI1￿5 1.357 Di￿d￿d5. 0¢P•￿t￿M*11• IB7 Pr¢oethlryrn ￿•011•1￿*1• fthad •M•ts 611 Net ¢ath PrO￿•d by in¥*wn9 afllviti•S 867 8S7 Chan9• in cash •nd cash tyu¥al•Thts ul the ypar IU4 C¥hindc¥h •qL¥AIDAts At th• b•ghwth¥ ulih•y•¥ Ckn9• •¥1 t• T14 Cath and cash •qutvalents atthe end ol th• 4,240 1.780 IWecoTrti&atN)n VFn¢t IA¢thTe fIow frvrn ￿￿•111$ f•rth• r•pxtlr4 pw*I (15p•r th•5tat•rn•Tht of FIvArdalAdiiibNI la 17121 ll•9J 118 8) ILollJ Fonvard Eth￿9• Canbxts ll) 133 D•ty•a5•1Vnty•Moyn d•bt Y47 136 136 eash¢vntiibu N4t E35h prDvh4•d byllused iTrl ¢perat￿9 affl4V¢ties 1.357 641 1.307 7D? Analysts ofchw9•s in Mt C•Jh hmd 4117 5krt i•rni d•po*ts 41.210 2.021 4.11S BMS Annual Report 154 5fjfftj￿CON9JLlQA7EDwlDCHARIrysTAT£MEmTDFCA5H FLOWS FOR ThewR ENDtO 31 DECEMBER 2021 Anatysig of tW9e5 111 rtt dgbt Contract EqupJal•nts Obfig•6DAS Totsl At 1 Jwnuary 20211¢Mut•J) 2J 1,565 Cashfflo 570 FalrValu• Mo¥4mqDts 1171 Othqr &ang•s At 31 Dec•mber 2021 4.240 4,118 Gr•w• Cash F•rw•rd ¢a5h T+X Total rryjo At 1 NotNAmbw 2019 974 737 hfflo%¥s Z42 Fww va￿9 M•¥•m•nts 11 11 11 Foi•lgn M4)wTh•fflts othof ¢hang•s At 31 Doc@fftber 2020 IreState¢Jl 2.021 1.692 1 780 13291 A B'..IS ￿lFj￿ri￿d In Ug.In& hovo BMS Annual Report 155 NOTESIO TrIE FINANCLALSTATEMENTS FOR IHE YW ENDED 310ECEMOEA 2021 tWlAccounting ptrlicie5 Statvt¢ryinlormation BMS is a chaiitsbl• cornpany limhed by gu¥ant•• and is in¢orpornt•d in Engknd aid Wahs. Th• reglSter8d offic• address 15 129 Broadway* Didcot OX118XD. Basi5 olpreparation Th• finanaal statements bg•n prepared wder the historiral cost convaniion with th8 •xc•ptlon af inveslm*nts whith ar• in¢lud•d at market ¥￿e. The financial statements bevn prepared in accord•nc• A￿o￿nting and R*portwig by Charities: Stst•m•nt of Recornmended Practic• apP￿(able to ¢h•rfti•5 pr•porin9 their accounts in aEcordan¢e with th• VinoDcial Reporting 51andard applicable in the UK and Republic of Ireland IFRS 102), The Knancial Reportwlg Stsndard applk¥blp in the UK and Rèpublic of Ireland IFRS 10• and th• Cornwie5 Art 2006. During thg wior yearthè Charity ¢hanged th• accoknnting refqr•n¢e date to 31 D•￿rnber. As a result the comparative figures in th• fin•ncial 5taternents cw induding. fDr instance. d•lays in non4ssential expen4knn. phasin9 of grants, d*￿ying staff Terruitrn•nt. Th• trust*as ¢tyndud•d th￿r asses￿ent found that th• fwn¢i•l pkn and for*casts are robust and show fvt BMS Is ¥bl• to mwt its obligation5. BMS has not sthd 5ignifKant negatN• finan¢i•l impact as a result of COVID. 19 to date. As part of th• 9oln9 roncern assessmEnt and (ondusi¢x4 tt• ¢ontinu¥4 effects ol COV1[￿19 and post Br•xit transition have wn$ider•d in BMS'S forocasts and factored into the stress t•st ¢•rri*d OUL hduding any ffitigatiOA acti¢M th•t may be requir•d. On this basis 9r￿n th• Str•n9th 01 thè balarK• sheqt and availability and lirymdity Of unr•rtfictsd inv•5¢m￿, the tNStees bÈkeve thal while unc•rt¥inty •xis¢s. this does not pose a rnatsrial uncertainty th•t would cast doubt on th* w considvrnd to b• th• rnst Mnportant in understsndin9 th• finanrièl statement&" BMS r•co9nise5 its fwbility ta ib d•fin•d b•n•fft p•niion #d￿￿8. Thi5 iTh¥o￿$ a¢tyarf•l •5tirnats5 are disdosed in notg 16. BMS has accrued £1.719k of Ivgacy income. Thi5 is b•wd on an eslirnatÈ Df 90% of the valu• of l•ya(ies notified to the ehaiity. whw• probats has b*•n 9rtntod and entitlem•nt is d•ar. The actual arnounts hter recuivqd fflay dilFer to thos •stwnat& du• to ¥aryin9 costs and f• BMS Annual Report l 56 NOTE5TOTNE FINANCL4LSTATEMENIS FORINE YENA ENOED31 DEcE￿Efl 2021 Funda¢¢otmfrng General fvnds arn unr•slricted fwK15 •v4l•bl• lor at th• (kntion of th• Tn￿85 in furthwonce of ObJ•ctp￿S of the dwrhy and w+uch have not bwn d¢sl9nated for othgr purpose De5iynated funds coryri5• unr•striaed fvnds Ththith l¥ve been set asKle by th• Trust•¢s for pwtlcular purposes. The aim and use af each designatod fund is out ￿ the note5 to the fin¥ndal statement* Res￿￿ed fund5 •r• funds tfvthich are to b• used in accordarbce with sp•ofic r•str￿tionS ifflPOSgd by the donors or vthith havo been rals•d by the tharity for particul* purp05e% The •im and use of eath r•5trKted l￿d 15 59t out in the nates to the ￿•￿￿•1 st•t•rnonl Endov•Th•nt furbds ar• those ¥there donatiun5 are re4ulr•d to b? retiiti•d •$ ¢aptrl in accordarK• with th• wi5h95- pemwnent or •xp•ndabh at￿lA9 to the natur• ofth• r￿trictIOn. Inwstm•rt kn¢¢Mn• and gains ar• alkuted to th• approw*ts fvnd. Income All in¢om•. [Ad￿ry donatio￿ 18gKi•% wt aml ITh￿51￿￿t &Kem•. 15 r•eogThMd wh•n the ch•rlty has entiknent to the lunds. any perform•nc• Condltions attath•d tg th? income hv4e be•n m•L it Is probable that th• h)¢om¢ will be receiv•d al￿ that the amount b• m•asur*d reliabfy. R•¢o9nrÉty)n of legacy in¢orne is dependent on the typ• ol k9acy, pecuniary le9•du r•cowi5ed when probate has been gMt•d. Resi&Jary legacies *• r¢co9nised ai a discount￿ rai* Tfvthen they are m••$¥ra￿e, prob•t• h•$ bwn 9ranted and entitlement is d•ar. Where ￿9*¢1•$ have been notif*d to th* tharity. or th• charity h aware of the grantin9 of pvobate. and the (riteri• lor Incorne recognrlion have not been met, th•n the legacy 15 a tmt•d •$ a tOMiTh9ent as%*t and (hdosed rf rnat•i Ng v41up 15 th¢ltsd¢d where th•1•9a¢y is to a Irf• ¢rrt•f•st h•kl by another party. Grnnt Income include5 amtrjnts M arbd in th• man•g•m•nt of the tharity5 I￿estment￿ They do Th>t indud• th• ¢osts of di55eminofwy imformthn in 5UPPOrt of BMS. charitabl• arti¥ili¢ Exp•nditur• an charitable ad1vill￿ Indude expenthwe 4550aatEd wlth raising aw•r•n•M aThd the thre• sir•ts91¢ minth•4 and wKlude th¥t xtsvibq& &w•¢t ¢Jsts ard support Costs rel•ttn9 to the5•. fjovernanc• Costs •r• the costs asso¢iated th• gO¥ern￿ èwrang•ments ol the charity. Th•s• tosts are 355VCièted wilh corrfubjtional aNI 5tstutory requwements and inchKl• any costs a5S0Ci•tvd with th¢ strateswc mana9ement of the charitrfs Gr•nts paya¥l• are rnadg to thwd in th• I￿th•￿ of BMS, charitablp oiy•¢t& They ar• auount•d for wh•n either the r•¢ipi•nt has a reasonabl• exp•¢tskn that they will rnE•ivq * yrant and the trust••s h•¥• agreqd to p•y th• grant Witha￿ conthioN or the reciwent h•$ • r••sonable expect•tion that they wlll fec•i¥• ' yrant and that any condilion •ttain9 to th• 15 (xJ¢sid¢ of th• eontrol ol th• th*tty. BMS Annual Report 157 NOTEST07HE FINAP1t￿lsTATEMENIS FOR THE YEAR ENOED31 OECEMgEA 2021 Tangible fixedassets andd8preoation Tan9lJle fixqd assets CO￿1n9 more than £1.000 f￿&￿i￿allY or •5 Part ot a related prniectl are witsli5ed •nd induded at ¢pst inthding any incid•nta &xpen595 of wuislbDn. Land and buHdkn9s are incfud•d at orl9lrTral hi6tord ¢05t or prDb4te valu4. As¥ets are r•vi•vMd lor kryaimient if ¢irvJmstsnce5 ￿d￿at* they Earying value may exr•ed thek n•t realisaldo valu• and w•kni in usa. Th•r• has be•n no imp•lrni•nt kn Value of awts held over th• financlol period. DeJxeciati(m 15 Calculat￿ to f*rit• doThm th* costs olthe rued a￿•ts thw •stim•t•d uselul Iiwqs as folbows: Lar Buildin9S Comput•r lindud•d in furniiw• •qulpnBnt) Fumilure and equrprnent Motor v•hid05 used 0￿￿8a$ Solar pane15 and propFrty modifKatio over 50 years ov•r 3 yws Over 3- 5 y•ars wrirt•n off th yw of pur¢h•se o¥er 15 years For BMS India. d•pr•¢iatlon ha5 be￿ appll•d at the rat•s by th• Ir•dh Inrorn• T•¥ Ad 1961, m05t specifirally for buildings at 5%. Investments ￿￿5¢M•nts ar• %t•ted at rn¥k•t th8 Balanc• Sh•et dat•. Th• 5tat•m•rt of ￿nanCIal Acthiltl•s Indudes th• n•t gains and h5ses artsln9 on re¥ah￿l￿n5 aThd dispr*5als throu91￿ut the ygar. Curr•nt a55et I￿¥51m•Ats 4r• short4enn. higNy Iowid thatw• rtaddy conv•rtible to knoTfvm arno￿ts of cash. Jointarran9emènt Tfrmgh a deed of tNsL th• dwity is in a joint t￿th th• Wts5t Union ofGr•at Brltain for the mana9oment ol Baptist Hou58. its h•adgUOrtws Und•rthe t9rn15 01 this aryangement all r•sponsibllity for the l•ttln9 and opETrtion of th• bi¥l¢thn9 transfvrr•d to Baptht House LlmTt•d. Th* arran9ern•nt 15 9o¥•m•d by Artide5 of Assod•kn for Wtitt LwTrited and • Ded¥rntion of Trnst with the Baptist Union ol Gr•at Biitairk Th• thwity accounts for its 50% thare of Baptist Ho￿￿ Lwnit•d as an in¥estm•nt in th• Baance SP*•L The Ststsrnent of Financial ActivIts￿ indudes rts share of thg %rvi¢• th•rge vAthin ¢haritsble expenditur• •nd its sharB uf the surplus within unr•alised kn¥*5tment 9akns. TTrrts&ction5 betwwn tho charity and th• Joint arran9•rn•nt are *liminated on incorpornting these intra thv of the charity. Stock Stsck is valu•d at the law•rol cost estifflatsd Mt r•8ksablv vakn. Cash at bank Bndin hand Cash It bank and ts$h in hond wdJdes rash slwrt tgwm Kqirid W￿•stn￿ wth a short ffl•￿￿ty of thr*v months or1•ss from the dète ol •¢ryUYt￿n w op•nin9 of th• dgposit or sThlar account. Assets and liabilit1￿ h•ld in forni9n ¢urrend¢s or• tTrnstst•d into at th• rates of exthang• rnlln9 at the end of th• fin3ncsd y￿r and th• oflorryn 0yr•￿￿5 we tr•nslated at thg avera9• wate of *xchan9• fDr the year. M•r•nce5 on exchan9• arfsrn9 from retranslation ol foreign C￿￿encY b•nk balancès •nd oth•r 45sets 4re r•port•d under incoffle and •xpen&tw• ￿ th• C•nsotsdated St•t•ment of Finanaal AttNities. Al othgr foreiw •xdwi9• &fhr•nc•s m tkn to th• Statem1￿ ot ￿n￿OI1 Acb¥rb•5 in the p•riDd in whl¢h they wls*. HedgeA¢¢otsnting The tharity has •nt•red into * number Dffonwd contrxts for th• purdw• of Euras US dolars in order to manw its r•t• •xposw•. Th•s• c￿tracts ar• masur•d at fair value at ••th reporting date. BMS Annual Report 158 NOTes TOTHE FINANCIAL 5TATEMENT5 FOR ThE Y￿A ENDED 31 DECEMBEA 2021 Fm&ntial instruments Finand41 assets finanrial N•bHitie5 aye r•coyniMd ems bec¢>m•s a party to the corthttual pro¥ision5 01 the inslwrnenL All fin￿(la1 a5%ets liablitres •re lnits￿lY Th•as￿d at tr•Dsartion wl¢• Ilncluding transartion Costs?. fin•ndal W￿￿ents are reco9nlsed èt transaction voiue and subs•quently measured at their s•ttlem•rrt Yak￿. Trade and other debtors are recD9hlsed at the settlement •mo￿t due *fter any tr•de ¢*scount offerod. Prepayments ore valLd •t the amowit prepald net d •Ay trad• discounts dkne. Credit•rs and prvwi*orth arn r•cowi58d Whe￿ BMS has a present obfi9ation r8suIt*19 from part *¥￿t that wai probably result in the tran51•r ol knnd5 ts • third p¥ty and th• •mtsunt due to 5ettl• th• ob&gation un be mea5wd or •S¢irnated refowy. Credbtor5 and sxovislvffis arE nom￿lY recognbsed •t their settlement aftèr alknin9 for ary trade discounts due. Pensiorts The £hariWs derm￿ b•Aefit xh•me 15 I￿￿ed. ¥rrith th• assets gf the 5them• held svparotely from those ol the ¢haAty. Sn 5ep•r•te Trw1e￿8dMInltt•red (￿d5 PeM•on stheme assets mqasured atlatr value and li•bllfties èrg meagxqd on an atharial ba515 U5kn9 the proi¢¢ted unit meth¢>d •nd dt5EOUrted at a At• eqwiolent to the uvreht rate of retsrn on • quality Eory>orat• bond Of ¢quhtalent currency •nd terni to the 5Eheme's IBblitie& Th• •¢warial Valuatio￿ ar• obtiined •t l•ast triqmially and •re updated at each Balane• Sh••tdats. Where apprDprlate th• re*diity d•fined benpfft kblity h wesented sop¥at•ty after othw net a55ets on th• face of the Balan¢• SheeL The cwrent seThice ¢os( past 5w¥lm the 8MS regi51er•d office. 14 months 2020 7021 Total I￿ornIng r*sourc•5 Total •xpendI￿N Exchange difleT•n¢• ID•%￿Y5￿pIus lor th• y 73 120 1183) 1391 11021 321 Tvt•l assets Total liokn1itt•s Funds 428 460 {341 426 394 8b Share in Joint Venture BMS Wortd Mission own$ 50% #f th• 155ued onthnary share tapital of B•ptist Hous9 Limlte4 a comp•ny regithrvd In En91ond. with the remaining SO% owned by the Baptist UThon of Great Britain. The trnStee5 bdbe¥e that th• tonw>any qualll•s as a ioiDt ventsr• for ac¢ounlin9 purpos*s. Gl¥en the l*vd Of acti¥iW ¢onx)kdatqd attounts have ntst b•m prepargd as the •llect on both th• Strtement of FiMn¢io1 Acii¥ibes and th* BalanE• Sheet wodd b• imrnaterial. A£Eounts are mad• up to 31 Octobw ¢ach yoar al￿ a summiry of the comwny'5 r•sylts are 5hrbwn b•hw. 2021 202Q Totsl ih¢oming resowc85 Total exp•nditur• ProfftllLoss) far th• yg•r 393 1360) 33 35 Total assets Tot￿ liabillti95 Capital and R•s•r¥es 320 4a 278 14 Th• d*rity's 5h¥e af any Fyvfft ¢r10ss Is SlJ% of th• overnl. Jstaternent ol funds Icurrent yearl Balance at Re¥ised and unrealised 9ains Balance at 31.12.21 1.1.21 Irestatedj Incoming resourre5 Transfers expended £'ooo Endomnent lun&& Cyril Edwards Tr￿1 Jane MurtellTrust Joy Bu5hon Slrcar TI￿t Other •ndowm•nt f￿d5 826 890 441 190 111 120 937 1.010 496 217 313 Ernef9ency reli•f fvnd Rest1￿*d fixed assets 354 495 1319) 339 3S1 22 232 394 Indla Other ￿$tr￿thd hnds 426 73 659 1.232 1659) 1.0781 17 19n 1.310 BMS Annual Report 163 NOTESTOTrIE FINAPICIALSTATEMENTS FOA THE YEAR ENDED 31 DECEM8EA 2021 Bala1￿ at 1.1.21 {restatedl Incoming r950urces Resourrff5 expended Realised ond ullreali$8d gains Trdnsfers 8alane• at 31.12.21 rooo £'ooo Deslgnate& Covid impxt Strategy irnplem•ntation Historic pafkn•r support Fixed 8ss•ts res•Ne Misslon Innovation fund Major r•palrs lund 360 850 30 12721 850 30 S.285 100 5557 100 105 15 5.777 1111 1105) 21 876 Pgnsion reserv 11.3631 958 1487) G•nvral fvnds Free reserv•s 5.810 7.912 10.40 569 17071 7,204 10.224 7.916 16,5011 1.527 169 13,363 The nalrnl1￿ to 8xplain the purpo* of each l￿d at the foot olth• notr ljqlow. Statement of funds Iprior yearl Balance at 1.11.19 Inroming resour Resources expended Realis•d and nrealised 9airts Balance at 31.12.20 I￿$tated) Tran51e £'ooo £iJoo Cyril Edwards Trust J•rt• Mursell TNst Joy Bushon S￿r Trus1 Other •ndo5•7nent knnds 754 813 408 173 2.148 72 77 33 17 B26 890 190 2.347 Erner9enry r•li•f fvnd H•¥lth fund 334 35 437 597 13661 163a 151) 354 reserve Re5trirtqd property fvnds India Other r•strkt•d funds 158) 357 14 1391 205 426 528 31 1.529 120 381 1.540 11831 14121 11,5931 1251 1091 1.342 Desi9nat•d: Fixod ass•ts rese Mlssion Innovation fund Major repairs fvnd Carbon ofF5at fvnd (3321 47 5.557 1541 105 26 6,120 105 15 5,777 120 1741 12771 pensi￿ r•s•r¥• (167) 11.1X) 17.3631 Ggnernl .$20) 386 5.810 11.778 6.956 (7.7671 109 10.224 BMS Annual Report 164 IIOIE5TO FhNAPKL4L5TATEMENTS FOR THE YEAR ENDEO 31 DECEM8ER 2021 Purpayes of •ndowment l￿d5 The in¢om• ￿ the Cyrli Edv•ards 15 t> be w•d in w field wh•r• the charity op•r•tos. The Income of th• J•ne Mur5•11 Tntst h 8vallabl• to b• used lar wgmert's Work within the tharity. Th• kncome olth• Joy bU4￿n SircarTThst 15 ts be to b•n•fft speafic •dKatlonal and Church wowk In th• BaTiSal areè of Ban9lad•5h. The TNst 15 inv8St•d In US ddbr 5qcurrlieswhlch hw• b•eft conwrted knto sterlwig at the rate ruNn9 at 31 D•¢•mber 2021. Purpo5•5 of restricted fvnds The efflerg*Thcy rellef fvThd rtprw¢nts lthid5 I￿￿¥¢d lof re*ef and Jsaster respoffj• •rourKI th• woAd prlmarily vth•f• th• charity is invol¥•d. The health f￿d repre*nts fvnds r•¢eb¥ed for he•lth projects th¥ charity 15 invol¥•d In. The restrkled fix•d •ss•ts veser¥• r8w•s•nts the ￿1￿? wAdth hw• been left to th• ¢harity wrth r•stricted u59. Restrkt•d prop•rty fvnds ¥• hdd loltov•iny thE sale ol prop•rty left ts the dwvlty r•strkted Use. Transf•rn to w from th• fvnd5 reflect property and dePr4¢￿tIO The IndS• fund repr•s•nts the n*t ¥ah￿ af a559ts kn Intha by BMS Indi PuTPQ5e5 of deslgnated fvthds The Co¥kl Impact fund rewewts the antkipthd lry twm iryAet ol Ca¥kl and th• UK *¢￿¢M￿ envlmfirnent to allow BMS to ¢oniknuÈ to 4650￿ •n ant5eOWed th)wrttvm in incorTrg. Th4 straw impl•m•ntstion represents the c05t ofknplementing th• strolegy. Thg hi5torOc partner support fiwKI r*pre5•nts support to histowic p¥ther& The fixed a55ets r•s•p*e repr959nts th• •mount set asKkn Eqwvalentto th• n•t book va￿e 01 P￿pertY and equiprnent used by th• thaAty and purthased from unrestiid•d The tran51•r frcrn the fved assets res•r4• tc+ th• genera tg brfn9 the res•r¥e lThto ￿￿• wlth the ol the f[X￿ ass•ts •tth• y•ar end. The Mlssion InThov*¥on fund 1$ US￿ lor IM￿YOtiVe mi55ion proAo¢ts and wli I bp used over th¢ next two ytrars. The major repairs f￿d 15 tD me•t the costs of large v•pair proiècls and twas us•d during the year on House. The Carbon ofh•t fvnd rwesents tyrtds set aside for stewud51ap project llErnployee5 and Trustee Directors The costs of ffliwrt p•rsonn•l and •rryloy••s olthe chwity the year w•r• as loll¢Y•ts: 14 months 2021 2020 Iowan￿$ and Salaries Pension ¢ontrbutiws National InyJrnn¢• conthbutiun5 Rolocation p•yffl•rts 1528 314 1257 418 155 189 3,000 3.869 Average nurnb•r of •mployees fvlis51Dn per%￿ne1 Oth•r •nployees 78 58 122 136 kn¢lud•d In the abo￿ employ•• ¢osts are redundan¢y ¢osty of £8.63412019Rtr. £8.0471. R￿Unda￿ CD5ts are pro¥ided forfwhen th￿ arn ¢sttmabl• and srtdementls FYobabl• 12 monthk At the bal*¢• sheet date th•r• vMr• r•dundJficy a>st5 of £4.B90120191*. £1.455J awailing p•ym Em￿•ye*S and trus The nUffl￿r ￿ rmploy•es whps• ernolum•nty enyloyerfs contrfothion4 arTrountqd to 0￿r £60.[￿ for th• y4r w•s as f￿0* 2021 14 month5 2020 0,￿l.£80,000 £OO.Om.£70.fy The totsl amcpjnt of employee benefrts iTdu&ng emphy•es rec•iv•d by key manag•m•nt p•Mfftr￿ for thoir during the year w35 £289.7601201912tr. £Z71,2961. BMS Annual Report 165 NOTE5 TO THE FItIANc￿LSTATEMENIs FCrfIMYEMI ENDED31 DECEMBER 2021 Trustees No ¢m￿ments Twere paid to the TTr￿tee Dir•ctor4 th th• •xcepkn olthe G￿er•I Dir•rt•r. Dr K*ng-San Tan. who was ernployed by th• ¢h•rity and was r•munerat•d on thp same basls •5 other employoe5 but r•¢•ived no rernuneration for his dutie5 as a Tnot•e Dwecwr. Th• constiiutsan rnakes parti¢ular provision for the General Dlrector to be an *mployw of the thaftty and the Charity Cornmission ha5 gi¥en formal a55ent to thik Dr Tan. •nolwh•nts •$ G•neral Dirertor were £69.81612019120: £74.138 for the fowteen Months and for comparative purppws, th• amount for the ts¥•lv• rnonths to 3111012020 w•$ £62.B22). DrTan wa5 also r¢irnbursed for all rte£eu￿ •xpenses incuvred in carrylng Out hi5 duties as an employee of the tharity. • totsl of £1.371 12019120.. £1,500). Dr is a memb•r of the charitys pension sdwme and cOntrts￿l0ThS totslKDg £6.66612019120.. £7.8991 w•r• pald by thv tharity dwkn9 the yew. During the year a totsl of £832 12019th £1.5711 VA5 r•1mbur5￿ to 12 Tntyt•e Dir•ct•ts1201912th 12) ￿ TqSpect of ¢ornmittee •xp•ns•s. Related P•rtieS Durng the ￿•1 • total of £18012019120: £rA) w•5 paid to Loyn Ling Le•. thg vsife of th• G•newal Directar. fi)r providing three t•athing Sessio￿ Th• rate was the standard f•• paid to vistting hctsrers. 11a Group Tangible A55et5 i•nd and Furnitu￿ and building5 equipment Mothr vehide5 To ojt 01 Janu•ry 2021 Irestated) Transfer dttions Cyrr•n¢y r*translèti Di¥￿saI5 31 Detemb•r 2021 9.292 13 20 9) 8.300 (163) 687 1101 91 123 9,078 01 January 2021 Ir•st•t• Ch*ge for ye•r DiSpoS￿S 31 D•¢ornber Z021 1433 3,QB6 275 11971 3.170 73 11631 473 11 82 2,675 Netbo•k v•lu• 31 Oecèmbgr 2021 31 0ec•mb•r 2020 Irertatedj 5.685 5.913 214 282 11 6.21)6 BMS Annual Report 166 NOTESTOTFE AN*14CLILSTATÉMEI415 FORIHÉ YEAA ENOED 31 DECEMBER 2021 11b EEtJcharity Tangible A55ets Land and Furniture and equipment buildiTh95 Motor vehicles Total r(wJo 01 JanuBry 2021 Ireststqdi Additiohs Oi$posalJ 31 Decwnb•r 2021 8.069 764 13 11631 414 8.913 13 1232) .694 1101 70 8.010 01 January 2021 tr•stat•dl Charge ftsr y•ar 1390 181 118) 2.553 999 250 69 n631 435 1101 70 31 Decembqr 1021 3,058 31 Dgcemb•r 2021 179 5,636 5,914 &679 Fumiture and E(wipm•nt contswis equipnwi motor Tmhitles u58d 0¥•￿ solor ponols and property *nproverngDt Invèstments held by group and charity Reststed 14 2021 months 2020 rooo 6.172 Anafy* dmov•mentsln they Market value at l Janu•ry Add atqwsitions •t erlst Less pro¢eeds pt di5P¢)S Not 9ains for th• y 763 591 6,763 6.763 7.667 7.667 Market value at 31 Oq¢ember Jalnt Vgntwe BaP￿t Hous• Lwnitsd Pooled F￿d NoTrUK fisted investsn•nl&" 155 7.01S 138 6.183 497 7.667 6.763 El Debtors roup aiity 2021 Restated 2020 2021 Reststtd 2020 Trnde dqbto Other d•btors Prnpayfflgnts Acrrued Incorn• 16 130 52 1.719 16 96 52 1.719 33 1.427 1.427 Durin9 th• fNn¢i81 year th• knty ent•r*d Into * nwnbv oflorward contrarts for the purtha*e ot Euro$ and US IA ordvr to manay rts •x£hang8 rtt• •xposiiig. ThEse contrt¢ts are m•a5ured at lair ¥•lue at each reportin9 datt. Other d•btors indudvs foreign far¥Md •xthange contrxts ¥th•d at at fair v•kn• of £Nil12020: £329kl. BMS Annual Report 167 tIOTESTO THE NNA14CIALSTATEMENT5 FOR THE YEAR ENDED31 DECEMBEB 2021 14 Creditors-. amounts fallin9 due within one yÈÈr GI0￿P 2021 Charity 2021 R*5tsted 2020 Restated 2020 Loans Trode creditors Taxatlon and Sodal Securlty Other Accruals Grants payablp DefErr•d income rooo 127 210 127 210 51 51 61 138 1.530 367 57 1.073 333 138 1.530 1.073 1.909 1.773 1.875 1,739 During th• financial yw th• •nt•r•d into a Aumber offwwwd ¢ontrads lor th• pwthase of Euros and US dollars In order to mana9e its exchange rate •xposur•. Thes• ¢tsntracts are mèasured at fair valu• •t eath r¥portin9 date .Other fJ•ditors indudes foreign curr•ncy forw¥d exch*we contTrcts ¥alwd at at lair ¥alu• of £Nit12020:£329kl. Grants p•yable r•presents wants C¢ThWni￿ for 2022 belor* the end of the 2021 fmandal year. 14a Deferred income Group 14 rnonth$ 2020 Charity 14 month5 2020 2021 2021 D•f•rr•d Intom• broutht 31 31 Relva5ed to hKome In the year Deferred carried fop*•rd Totsl 131) (311 This relat•$ to f•es rgEeived from gap y￿rpOrt1￿1￿ts forthelr pmgramme Ththlrh covers • period frorn September to AugusL therekn th• January to Au9U5t portion is r•¢ogn•s•d as delefved incam•. How•vgr, the 9ap year 153 EEIAnaly51s ol group net assets belween funds IcuTrent yoarl UnT¢rtricted Desi9nated Fund5 Funds Restrirted Funds Endowment Funds Totsl 2021 Restated Total 2020 f (￿0 T•nghl• flx•d ass•ts Inv•sbnents Current assets Curr•nt liablitse5 Pqnsioo Fund 5285 S.908 7.667 0.100 11.909) 4871 17.339 4.775 0.206 0.763 4,000 11.7731 11,3631 13,913 1.361 495 {l.B75) 1487) .717 1,316 2.660 15b EEJAnaly515 01 group net assets between funds (prior yearl Unrestricted Designated Fur￿5 FuTrds Restrirted Endowment Restated Total Fvnds Funds 2020 T*n9iblo ftyqd a5s•ts I1￿eStrnents Current assets Currnnt li3bi1Stl•s P•nsknn Fufid £'ooo pooo 6.206 0.763 4.080 11.7731 11.363 13,913 5.557 649 4.211 3.338 11.7391 11.363 4,447 1347 522 5.777 1,342 2.347 BMS Annual Report 168 NOTESTO THE FINANCIALSTATEMENIS FORM YEAR eNOED31 OÈCEMBER 2021 DDefined benefit arrangement5 Thè Schem9 15 a regst4red sthEme urKl•r UK legislation and 15 subjoct to the sthem* funthng requirements. Th• $d￿me was estawished from 7 April 1962 trust •nd is 90￿Med by the kheme'5 trust deed and wles dat•d 16 OEtob•r 2006. and 5uppl*m•Thtsl d••d dat•d 12 Febru￿ 2015. Th• Truste•5 •r• respoDsible for the oporatlon and th¢ gowrnance of the sthgme. indu¢*ThJ d￿1*0￿5 rewdirv4 the Schom•'s fundiny and Inmtment str•tegy wijundion with the Cornp￿. The Baptist Mi58ionary So(i•ty operotes a sth•me ￿ the UK wlmch wpvl&s both P￿￿>th$ In retY¢m¢nt and death benefits to rnemb•rs. Th¥se disdosures r•lat• to the dwknod ber•efft sodlon of the Sthem•. The d•fined benefit 5ertion of tho S¢heme prDvides p¢Asion ben•ffts ¥thich are rdated to the rn•mbers' s￿ry upon th• dowre ol the Sch•m• to fvtrJr• a¢￿￿•1 lor rf •ark•rJ •Thd of s•r¥i￿. The Trustees are r•¥>on5ibl• for th• operation and the gtyern•rK• of the 5ch•m•. irKlwJiwJ fflak￿y dKislons regardln9 th• Sthem•'s I1Vrts￿ 5ty•te9y in c(x4un¢*in vthth the Corw. The Sch•me expos•s the Corrwny to rfsk5 S￿h as: m¥ket finvestmontl rfsi inter•si fate risk knflatian rlyk urrency risk and lon9evity risk Th• Sthernq d￿$ not •XPOse th• Company to •ry unusual Sche￿￿PeC￿¢ or Company4p•¢lfic rfsk Th• Ilabifities at th• r•portiry date ￿¥• been c¥lculat8d by thg rnsults of the fvmi•l actswvial Valuation of the Sthem• far th• assuwions a5 d•tsiled in these disdoswffj. All¢>wante ha5 bwn rnad2 for •xp•cted rnortality o¥er th• p•rio4 as w•ll •$ actual rnov•ment in fmarthl COrKlit￿ 51ty￿ the valuatl¢>n d•t•. Such an appro8th is nèrmal flx the pwpos•s of accounlin9 disdtyswe& h is not ejpected th•tthe59 projedlons WNI be materfally differ•nt from a summ•tion of inLlvithal ealvjlations at the accamtin9 &te. although there may be sorn• dixrepaw b•twrt•n the acbJo1 habilit1￿ lor th• Schem• at ttrh• XCO￿ &t• •rA4 tTrxbs¢ Indudgd In the distlosW•& The ¥a￿atIoN as •t 31 Dqr•hthr 2018 a Rocovery Pl•n ￿d0r *+ich th• Baptist Mlssionary Soci•ty pays deficit contribulims of £579.000 by Septombei 2022 and £359.0￿) by Sept•mber 2025. The Baptist Misslofiary $4xwty w￿1 a150 continy? to pay £150￿CK> a yoar towards the •xp•¢ted cost of th• •xpen5•5 of running the S¢h•rn•. The liabilitSes of the SEhern* ￿ based on th• cwrwrt value ol •¥gett4d bemfft paymqnt ta5hfl(YLWS to m•mbe •pproxlmately ov•rth• n&At 00 y•ars The av•ray dwation of th• iialx1iti8s Is apwJximately 18 year& Ov•r the yw. the Tru¥l•es •thptqd o Inve5rnt strat•gy. whe¥•by the Sth*me's assets ir• n¢>w mad• up ol aPPToximatsly 40% matd* a5wtsW •ffd Buy & Maintw CY•tht) 60% tetwn s••klng as*•ts (Multi. ssqt cr•th andl ilKwid ass•ts1. Thq Twst•es' investrnent strat•9y Indud•s WHty **i¥•n knv•rtmert th• ￿l￿e of TNthlch wlll wlth deugases In int•rest iat*s. and *41 wlth iThfi3titin •xp•ctstioN Th• Sdwe Int•nds to dwhk its jrtw$t￿ts •5 th• fundlrq ￿tIon knpro¥q* A fvll ackntarial vabJation of the Sd*rn• ¢wled out as at 31 Oac•rnber 2018 •nd been updated to 31 Dxernb•r ￿ • 9￿￿fIed ind•p•nd•rt xtuwy, The amounts rocognised in th8 statement ol fimncial are as follows: 2021 14 months 2020 Defined benefit obll9ati Fair ¥alu• of plan o¥•ts N•t defin8d benefft UlabNtyy•ssrt R•strfction on asset rn¢OSmi50d Nat arnount rKo9rised at y•ar endlbefor• •ny a￿uSb￿nt￿f defemd tsxj 137.2691 36,782 1487) 139,172) 37.809 11.3631 14871 11,3631 Thq amounts wognised in Comprehwgve in¢offle ar•= Th• current •nd paq ￿*ts. setthTh￿ topth•r with th• T*t int•rnst expens• lor tha ￿or ar• induded In profit or los& R•MeaSu￿ of th• n•t dth*d bemfft 441*ty •r• wKlud•d in gth•r compreh•ng¥• inEom•. BMS Annual Report 169 F(IR ThEW ENOtD31 DECEWER 1021 14 months 2020 £'ooo 2021 £'ooo Servic* c05 Cuff•nt ser¥ir• cost In•t of eryJloy•• contributioroj Administr•tlon Exp•nMs Lo￿[9210) on plan introduclion4 ￿rta￿•￿ts and s•tdern Net interest •wnsellcr•ditl char9ell¢r￿lII re¢o9Ths•d in profit or IOM 214 352 18 232 353 R￿••SUreMents of thg n•t 4abilty. R•turn on sth•me assets lexdudhry amount incW•d in net knt•rn# •xp•nsel Ar￿ana1(gaIns￿l0ss•s Adjustsnent for restrl¢tlons on the a5S•t r•cowd Char9e/l¢r•dit) recorded in other compreh•n5i¥e Incorne 317 {1.3001 3.012 15271 1,185 11.275) 19581 Totsl defin•d b•nqfft Cost1{cr￿lti 17261 1,538 Prinupal Actuarial A55umptiorts 2021 14 months 2020 Liability Thscount rat• flation assumption IRPII Inflation assumptlon ICPIJ Rat• of Increas• in 5alari•s P•nslon incmses: Pre 6 April 2006 benefits IRPI max S%1 Pr• 6 April 2006 ben•fits (cpi max YAI Pr• 6 April 2006 benellts (greater of RPVCPI max 5%) Pr• 6 April 2006 b•n¢Pts Igr•at•r of RPVCPI max 2.5%) 1.8S% 3.40% 2.70% 2.70% 1.25% 2.20% 2.20% 130% Z6S% 3.30% 2.25% 2.85% 2.20% 2.85% 2.10% Proportlon of Ernploy••s commutry p•nsion lor No aNow•nce No •llowanc• Assumed Irf• •xpectsnci•s on r•itr•m8nt at a9• 65 •rn: Ma1•5 retiring Immediatgly Fgmal•s r•tirin9 immgdiately Mal•s r•tirin9 in 20 year5 tim• Females r•tirlny n 20 y••ra tirne 2021 14 rnonths 2020 22.9 22.6 23.8 25.7 23.9 25.2 Rèconcilation of scheme assets and liabilities Assets Liabilities Totsl At stsrt of pgriad B•n•fits pald Adminis￿IlDn exp•ns•s Curr•nt 5•rvic• rv5t Contribution5 from omployer ContributiEbn5 •mpoyees Int8r•st inwm•ll•xp•nsel R•twn on assets l•xthding 4mowit h)duded in net •t•rtst expenm) Actuarial 9ZtnslO055es1 Gainll10551 on Pl￿ introductions chang•5 Gainlllossl pn curtsihnonts As5•ts di5trtbut•dAiabiliti•s •xlinguish•d on s•ttlem•nts Ass•ts acq￿r•allIabllltIes a55um•d in a businqss combination Fair of 5th•m• assets £'orA) 37.809 rooo 139.1721 1.111 pooo 11.3631 12141 1214) 150 150 465 14831 (317) 13171 1.275 1.275 36.782 137,2691 14871 BMS Annual Report 170 NOTES TO THE FINANCIALsfATEMENIS FOA THEYEAH ENC*0 31 DECEMBÉR 2021 21 14 months 202D £'D £￿00 The return on plan asspts was: kntwest Income Return on plai a55vts l•xdu¢kng ampurt ￿￿￿d#d In Aet inl•r•# expens•1 Tatal Tetsrn on plan assets 808 13171 148 2,108 The major eate9OTi85 of schemè assets ar• as follo 2021 14 months 202(1 Multi Sirategy Cr•dlt Fund ICS Sterlln9 Liguld En¥wonm?ntally Aw•r¥t ￿nd (LEAF) Strateglc Alt•rnati¥• In¢ome Fvnd ISAF) Li4k411ty Orivqn hw•sim•rt Cash and n•t ¢uffent assets nds Total nwk•t ¥3￿+ of assets 14.128 4.052 3.348 9.804 1.992 3.4S8 36.782 10.752 23,263 3.794 37,809 EsiimètioTr of next pèiiod's profit or loss 2021 Current sèrvice cost Inet ol eryloyo• witnbAlons) Adminlslration •xpens0S LOS￿1941n} on pl¥ Intr￿￿￿1￿n$ th•nges cwtaarnents settlqme Net interest exp•nsen¢rth) Ov*rall P&L impaci 221 225 Restatement of comparati¥Ès Group Reser¥v5 Poytlon 31 De¢ember 2020 R•strTrrted Ehdowment £Tho lJ42 Vnre5tricted Tot*1 rooo 14.974 £YJoo 11.285 Funds pre¥i¢xsly r•port•d 1347 Adjustment&. Grant ac¢ryal 1i.r1611 Funds reststed 10.224 1.342 2.347 13.913 Gmup Intome ExpeD¥• 31 December 2020 Restrirt•d En&wm•nt rooo u￿re$￿￿ed Total £'ooo N•t mo¥erMrt offumls prthiausly r•port•d 1493] 199 14811 AdlusbMnt Grant occrual 11,0011 Funds restst•d (I.SS41 11.5421 BMS Annual Report 171 NOTE5TO The fINAPK￿LsTATEmENTS FOR THE YENR E14DED31 OECEMBER 2021 Charity R•serv•$ Position 31 Decembpr 2020 R•5trictqd Endowm•nt £'ooo 1347 Unrestri¢t•d Totsl £'ooo 14548 Funds pr•¥iously r•ported 11.285 916 AdjusErn•nt*- Grant a¢cru•l 11.0611 11.0611 Fund5 restst•d 10,224 916 2.347 13.487 Charity Income and Exp• 31 December 2020 R•5trided ErTrdowrn•ftt £'ooo 199 Unrestrirted £'ooo 1493) Total N•t movem•nt of funds w¥iou 1851 13791 Adjustr•nt&' Grart accrual 11.061) 11.0611 Fynds r•5t3ted 851 199 1.440 D•tsils Qf 4ustrngnts Grant accrual: prthryousty grant comfflitm•nts fol th• ¢orriry y••rwer• not h)duded Mrythin tho grant •rErual. only ¢urent year 9rnnts that wgre still payabh at th• year orKI. Thi5 has b•on cor￿￿•d ts Indude 9rnnt currwnih•nts rnad• for th• wh•rn rn lvtters v••r• sqnt prior to th• y•ar •nd. Accountin9 for Joint V•ntur•: prevlously th• th•rity's shaf• of ￿n• of th• Johrt V￿tur#,$ balan¢• 5he•t W45 included In •aEh lin• of the charfty's bal•nc• and the SI￿ of the 9ain or Ios5 of the Jolnt Ventur• was shown within •xp•nditur*. has bg•n corr•cted so now th• Joint Ventur•'s n•t ass•ts app•èr as a single lin• wlthin the tharity's Investrn￿ and th• share of the gain or loss of th• Jolnt Ventw• is shown wlthin net 9alM on in¥•strnent& Ther• 15 ng vnpact on th• fi￿￿5 ar1￿￿9 from this adiustm•nL BMS World Mission BMS World Mission. PO Box 49, 129 Broadway Didcot, OX118XA wvM.bmsworldmission.org 00 Follow us @BMSWorldMi5sion The Bèptist Missionary Society-. re9iStered .n Englaid ar.c Wales as a charity (number 11743641 and a company Iimiied by guarantee (number 108196891 world mission