2023-12-31-accounts

TRANSFORMING LIVES BMS WORLD MISSION ANNUAL REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2023

CONTENTS

3. Letter from the General Director and the Chair of the Board of Trustees

4. Vision and mission

6. Heart for the Gospel

10. Hope for the World

14. Help for the Journey

18. Creation Stewardship

20. Gender Justice

22. Disaster Recovery

24. Expenditure

26. Celebrating supporters

28. Trustee Report

30. Objective and activities

35. Principle risks and uncertainties

38. Financial review

41. Reference and adminitrative details

42. Independent Auditor’s Report to Members of BMS World Mission

46. Statement of financial activities

51. Accounting policies

55. Notes to the financial statements

A word of introduction

Dear friend,

The Annual Report demonstrates the powerful ways in which God has been working through BMS World Mission during these last 12 months.

The Church in the Majority World is growing at a phenomenal rate and through your support BMS is being transformed by God to play its part in response to these shifts. BMS is embracing fresh ways of working with networks, hubs and partnerships. We are promoting local leadership in all our relationships and fostering sustainability in all our work. BMS continues to support mission workers from the UK and the Global Church. With your support, we are building networks, sharing learning, strengthening capacity, supporting innovation, responding to disasters and raising awareness of issues affecting the Global Church. We collaborate with international centres for mission where believers are trained and co-sent from everywhere to everywhere. BMS has much to give and much to learn and we cannot wait to participate with the UK and the Global Church on this path of mutual mission.

Our vision is for a world where all can experience faith in Christ and the abundant life only he provides. We pray that through the stories of impact and the detail of our financial review, you will encounter a God who is always infinitely concerned with the transformation of our lives, our hearts and our minds.

Yours in Christ,

Dr Kang-San Tan General Director

Rev Marc Owen

Chair of the Board of Trustees

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OUR VISION

Together, we are working for a world where all can experience faith in Christ and the abundant life only He provides.

OUR MISSION

We mobilise people, resources and skills across the Global Church to share the good news of Jesus and practical hope where they’re needed most.

HOW WE DO IT

We work hand-in-hand with global organisations, mission workers and supporters to: share Christ and nurture disciples; alleviate suffering and injustice; and enable all God’s people to play their part in his mission.

Woven through all the work you make happen are the twin callings of creation stewardship and gender justice, without which abundant life in Christ is not possible.

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Heart for the Gospel

BMS enables mission movements of disciple makers around the world. Every year, thousands of people hear the gospel through BMS work in the hardest-toreach countries. Alongside training and sending UK mission workers, we work in partnership with Global South church planters to send people from all places in all directions to build up the Global Church where the need for sharing the gospel is greatest.

Hope for the World

We help tackle injustice, where those who bear the least responsibility suffer the most. We send skilled mission workers and empower partner organisations in the world’s poorest countries. We work with local churches who are best placed to bring long-term community transformation. We also work with our partners to improve all aspects of life, including health, access to justice and education. We can do more together than we ever could alone.

Help for the Journey

We walk with those forced to leave home, in a time where more people than ever before are displaced – a sign of the world’s fragility. There are many reasons why people flee, including war, persecution, natural disasters, extreme poverty and repression. We aim to heal this fragility by responding to disasters, building up communities in origin countries, establishing partnerships of humanity in places of transit and creating networks of Christian welcome in destination countries.

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BMS World Mission enables mission movements of disciple makers around the world. Your support for BMS takes the good news of Jesus to where it’s hardly been heard so all the world can experience abundant life in Christ.

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NORTH
AFRICA
INDIA
ATLANTIC
BANGLADESH
OCEAN
THAILAND
CAMBODIA
PERU
INDIAN
OCEAN
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Impact by numbers Figures from 2023

179

Number of church fellowships planted by BMS-enabled work in North Africa 2022-23

23,127 16,960 People trained in Number of church disciple-making across fellowships established our partners in India, across India, Bangladesh Bangladesh and Thailand and Thailand

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CHALLENGE

Building locally sustained ministry in Asia

Our partners in Bangladesh, Thailand and India trained an encouragingly high number of people in 2023. However, as we seek to build local ownership and sustainability, growth in numbers should be matched by growth in local sources of income. Unfortunately, the percentage of income from local sources remains stubbornly below the 30 per cent mark and appears to be a long way from our target of 50 per cent. Despite its counter-intuitive nature, we are committed to promoting a model of sustainable, modest growth and turning down external funding with our partners.

Persecution among church planters in India

Church planters in India have been subjected to widespread persecution. In September we received reports from one partner that the government was tracking evangelistic activity on social media and setting up helplines so the public could report evangelistic activity in their area to the authorities. Another partner reported persecution in Kashmir, Manipur (where BMS responded to the attacks on Christians through our relief fund), Haryana and Uttar Pradesh (where several partner-trained church planters are working).

Over 23,000 people – the vast majority in India – have been trained in disciple making and church planting across partners in India, Bangladesh and Thailand, which is an encouragingly high number. However, we are aware of a significant gender imbalance within that figure, with men outnumbering women by a ratio

of three-to-one. Annet-Ttendo Miller, BMS Gender Justice Co-ordinator, continues to work alongside partners to create practices and policies aimed at gender equity.

LIVES TRANSFORMED

Draw near with dumplings

In our appeal at the beginning of 2023, you met Som and Thew, a young couple who had recently come to faith in the village of Wang Daeng. This joy-filled couple are now helping lead at a new church planted in the nearby village of Ban Dara, where their son recently got baptised!

When we first met Thew, he shared his desire to one day make and sell his own food – a very different trajectory from his exhausting daily work as a manual labourer. Along with Suree, Wang Daeng’s first believer, this dream has been made possible.

Located in front of Wang Daeng’s church building, their recently launched food stall selling fried chicken, sticky rice and fried dumplings has been immensely popular in the community, especially with the children walking past it daily on their way to school! With every dumpling sold, Thew is providing for his family, building community and drawing newcomers into church with an inviting (and delicious!) welcome.

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The next

generation of evangelists

From Bangladesh to Thailand, India to Cambodia, meet six incredible young people serving in some of the least evangelised places in the world - thanks to your support.

Jyoti, Bangladesh

At the end of 2022, Jyoti, along with Nandita, became the first women to be ordained as a Baptist pastor in Bangladesh. They were supported every step of the way by BMS mission workers, Louise and Peter Lynch. BMS’ partnership with the Bangladesh Baptist Church Sangha creates the opportunity for Jyoti to develop, train and support the next generation of Christian leaders in Asia.

With your support, Pastor Jyoti is now studying for her Masters in Divinity at the Philippine Baptist Theological Seminary in Baguio City, Philippines.

She says, “I am learning many unknown things about the Word of God as well as the teaching methods of a teacher. I am learning how to think about theology in the context of Bangladesh.”

On completion of her course, Jyoti plans to return to her homeland with many hopes for what can be achieved. “When I observe the churches here in Baguio City, I see how the church is peacefully and spiritually functioning. It helps me think about our churches in Bangladesh. I see the dream as a peaceful and spiritually mature church in Bangladesh.”

Pisal, Cambodia

Even though fewer than one per cent of the Cambodian population is Christian, people are still coming to faith. Pisal first heard about Jesus as a child when missionaries came to his village, but it wasn’t until he moved to Phnom Penh to study that he met BMS-supported worker Pastor J and his relationship with Jesus blossomed.

“I am from a Buddhist family but there are Christians in my village, so I used to go to church during Christmas because they gave us good food and good gifts,” Pisal explains. “But I never listened to the Word of God, I never touched a Bible. When I came to Phnom Penh to join University in 2019 (and met Pastor J), it was the first time I sat for Bible study.

“I learned many things about Jesus, but I still didn’t believe in him. I often had bad dreams and couldn’t sleep most of the night, but then I remembered the Bible study and Jesus came to mind. One night, I prayed to Jesus for a good night’s sleep, and that night I slept peacefully. I kept praying every night and whenever I had a problem I prayed to God. I began to believe that Jesus is real. After more Bible study and fellowship, I decided to give my life to Jesus and got baptised in 2021. It was the best decision I’ve ever made. I am happy to be a follower of Jesus.” Pisal is now one of the leaders at the dormitory led by Pastor J, and is living out Christ’s example in all he does there.

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Bam, Team and Grape, Thailand

Bam (aged 17), Team (18) and Grape (16) all came to faith through the ministry of the church in Wang Daeng. They all come from troubled backgrounds: Bam lost her father at an early age and her mother has financial issues; Team’s mother died of cancer a couple of years ago and he now lives with his grandmother; Grape’s parents divorced, and she also lives with her grandmother. Since becoming Christians, God has been their strength in helping them through difficult times.

Through your support, all three received disciple-making training over the last year and they were able to travel to Chiang Mai for leadership training, which really helped them go deeper in their faith. They have only been believers for a few years but are already involved in leadership at the church. Bam, Team and Grape were all involved in running the Christmas outreach at the local school. Team is planning to go to Bible College next year and your support will help to pay for his fees. Grape is also hoping to go to Bible College in the future. Our partners in Thailand hope that they will all be involved in leadership and church ministry long into the future.

Shyam, India

Shyam Biswas from West Bengal is an auto rickshaw driver by profession and, thanks to your support, he heard the gospel through the teaching and preaching of a BMS-supported evangelist and accepted Christ into his heart and life. He has become a great disciple for Jesus and now uses his auto rickshaw as his own Godgiven opportunity to preach the gospel to his passengers. He has also attached the Jesus film tablet to his auto and all the passengers get an opportunity to watch the film. In the last year, Shyam has started four new home groups through his auto rickshaw ministry.

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Pastor J,
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BMS World Mission helps tackle the injustices of those living on the margins, where those who bear the least responsibility suffer the most.

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AFGHANISTAN
THAILAND
CHAD
NEPAL
GUINEA
BANGLADESH
UGANDA
ATLANTIC
OCEAN MOZAMBIQUE
INDIAN
OCEAN
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Impact by numbers

Figures from 2023

20,775 People benefiting from enhanced partner training

154 People trained in church and community mobilisation (CCM) work

22,500 People treated at Guinebor II hospital, Chad

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CHALLENGE

Taliban rule in Afghanistan

In 2021, we reported that just under 15,000 people had been reached by BMS’ community-based projects. In 2023 that figure was down to just over 2,000. The Taliban government are a major contributing factor in this reduction, in particular through their ban on Afghan women from working for NGOs.

Lack of definitive CCM data

How we measure the impact and reach of our church and community mobilisation (CCM) projects at this stage is hampered by uncertain data. However, we have developed a target framework where we hope to see 25 churches implementing CCM by the end of 2025. We have started working with two new CCM partners in Sierra Leone and fresh data will come from those communities. We also want to measure the change in people’s lived experience, although we recognise partner-based reporting has its limitations.

Wanted:

skilled mission workers

In countries we wouldn’t classify as ‘fragile’, BMS partners now have adequate local resources to draw on. This shift frees up resources and allows BMS to focus in part on the work of strengthening the capacity of partners. However, skilled mission workers are still very much required, particularly in Afghanistan and Chad. Here, partners still require BMS to be able to second and support gaps in necessary expertise.

LIVES TRANSFORMED

Benjamin, Chad

Imagine having no help to reset broken bones, no support to give birth or treat cancer, and no drugs to ease end of life care. Without Bardaï hospital in Chad, an easily treated infection could have ruined Benjamin’s life.

Benjamin was in terrible pain when he came to see BMS mission workers Mark and Andrea Hotchkin at Bardaï hospital: what was a minor infection at first had caused his arm to swell to twice its size. He knew there was no way he could work or earn money for his family. If Benjamin can’t work, there’s no way he can afford hospital treatment. It’s a terrible catch-22 that the Hotchkins have seen time and again over their last 13 years in Chad.

Benjamin received emergency medical care, and was able to return to work. He is one of the many patients treated every day in Bardaï. You have helped to heal children with pneumonia who’ve travelled across scorching desert with their families, people who’ve suffered brutal accidents while working on treacherous gold fields and, in one of the harshest environments on earth, to welcome new life into the world.

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Three lives transformed in Nepal

Anshu

“Please do not tear off or throw my clothes away. This is my last piece of clothing.” Those were the last words that Anshu, a new mother who had given birth only seven days previously, shared before she fainted on the threshold of Chaurjahari Hospital (CHR) in Nepal. Staff at the BMSsupported hospital rushed to Anshu’s aid, determined to discover the cause of her critical condition. Beside her, her exhausted husband stood with their nineyear-old daughter, cradling the couple’s brand-new baby. Slowly, the team began to piece together what had happened. Anshu had had a premature birth at home, just seven months into her pregnancy. Although the baby was delivered safely, Anshu bled heavily and fainted at home, leaving her husband incredibly scared.

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Taking his wife on his back, along with all their savings (around £71) and giving their newborn to his nine-year-old daughter, the family walked for four hours to the nearest bus stop. From there, they made the 11hour bus journey to CHR.

Doctors examined Anshu and found remnants of placenta inside her uterus. She needed an emergency operation and blood transfusion, and CHR staff donated their own blood to save Anshu’s life.

But your support for Anshu didn’t stop there. Upon realising how little the family had to spend on medical treatment, the team at CHR were able to provide Anshu’s care, including food support, for free during their stay. Your support made all this possible and saved Anshu’s life. Thank you.

Kaku

Imagine a chance encounter that leads to new beginnings for a whole village. That’s exactly what happened when staff at BMS partner Human Development Community Services, Nepal (HDCS) met Kaku, a member of the Chepang people of Nepal, on his way to tend to his farm. Kaku had happened upon a gathering of project staff members and people from a local village, discussing health and the prevention of disease. Noticing his curiosity, those gathered invited Kaku to join the meeting.

It was all new to Kaku, coming from a semi-nomadic people group which is thought to be one of the most marginalised in Nepal. Kaku was hooked as he began to hear about the benefits of handwashing for the prevention of water-borne diseases, worms and typhoid, and after the session, two members of staff were invited back to Kaku’s home to chat further. Kaku received a hygiene kit, complete with soap,

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a comb, toothbrush, face mask, nail clippers, water purification drops, a towel and some toothpaste. Kaku’s motivation to change his own habits was clear, but his vision for what he’d learnt went even further.

As an elder in his own community, he’s started encouraging his neighbours towards good hygiene practices too. Members of his village soon witnessed the improvement to the health of Kaku’s family – and staff at HDCS were inspired too. “Kaku was extremely thankful to the project for their small effort, which has brought him hope and the realisation of better health,” the team shares.

Hari

Imagine being a carpenter and relying on the strength of your limbs to carve heavy furniture or move planks of wood. Then imagine one day noticing the toes in your right foot swelling, before experiencing a burning pain throughout your leg. That was the situation Hari Thapa found himself in – and knowing that his family of five were relying on him, he sought medical treatment right away. But after visiting

various health institutions and trying different medicines, all Hari was left with were vast bills, and no improvement to his leg. One April, Hari tried once more to get a diagnosis, and visited BMS-supported Green Pastures Hospital for treatment. He was finally given a diagnosis of leprosy and prescribed effective medicine, but after experiencing side-effects, Hari quickly discontinued the treatment.

It wasn’t until Hari met Tham, a BMSsupported pastoral counsellor who had recovered from leprosy himself, that Hari felt confident enough to restart his treatment. By this time, he had ulcers on both legs which needed surgery and further care. Sessions with Tham have reassured Hari that his medicine is working and have helped him process his regret at not continuing his treatment sooner. “Now he is happy and he said that his health is improving and he has learned self-care skills for his ulcer care,” say the team at Green Pastures. Thank you for being there for Hari and for enabling Tham to do his important work, too.

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BMS World Mission walk with those forced to leave home, in a time where more people than ever before are displaced – whether within their own countries or having crossed borders.

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North
Sea
POLAND
UKRAINE
FRANCE
MOLDOVA
LESBOS,
GREECE
CYPRUS
LEBANON
WEST BANK,
PALASTINE
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Impact by numbers

Figures from 2023

13,107 Refugees cared for through BMS-partnered humanitarian work while on the move (target: 400)

692 People trained to work with refugees through BMS-related ministries

305 Number of partner workers supported by BMS through networks whose work focuses on refugees (target: 15)

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CHALLENGE

Re-imagining our work in ‘source’ countries

In last year’s report, we introduced you to Sam Chaise, our Help for the Journey ministry lead. Over the last six months of 2023, Sam has been re-designing the ‘source’ element of our work with forcibly displaced people. We will be shifting the focus of our Help for the Journey resources to the ‘journey’ and ‘destination’ elements and look forward to reporting next year on Sam’s progress.

Strategies for help beyond ‘home’

Nevertheless, a humanitarian response to the movement of forcibly displaced people into Europe is necessary. The EU Commission note that 36.4 million (official) refugees were resident in the EU by mid2023. £3 billion out of a total budget of £23 billion of the UK’s official ‘aid’ budget is set aside to meet challenges of displacement caused by fragility in Ukraine, Africa and Central Asia. The humanitarian response to these forcibly displaced people is the pressing social reality of this age and remains a vital cultural and mission question for the Church in Europe.

LIVES TRANSFORMED

‘This is the place Jesus would be’

Haniele Laurindo works at the community centre set up by our partner in Lesbos. She tells the story of a woman from a Muslim background who decided to volunteer there because she felt it was a place of peace. Haniele explained, “In one of our first conversations we could tell her that Jesus is God and is the one who gives us peace.”

When the lady’s documents were ready for the next stage in her journey, on her last day at the centre, she shared with Haniele that she “was feeling really thankful for the way she was treated. She said that since she met us, she was asking herself some questions like: ‘Why are you so worried about offering the best for the women? Why are you caring for the details like keeping everything organised and clean?’” It gave Haniele a chance to share her testimony, “I am here because God has called me to leave my country to share my love with women like you. I also believe that Jesus, the Son of God, would be here doing this for you nowadays. And Jesus cares for details, he cares for you, so in the same way we care for you and all the women that come here.

Help beyond the mere basics

Most refugees cared for on the move by BMS partners are supported with basic provisions including washing facilities. We will look to develop our Help for the Journey programme by exploring what ‘home’ means with the goal of providing support beyond the essential basics.

“She was speechless and impressed. Her eyes opened and she said, ‘Now I understand why you do this. In my life, I’ve met a lot of bad people, I didn’t believe that good people exist anymore. But here, all of you are good. You treat me like family, like my sisters and I would never imagine that I would meet people like you in Lesbos.’ Those were her last words in the centre. We hugged each other and cried together.”

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Experiencing the love of Jesus for the first time

How did you and your church spend last Christmas? Whatever comes to mind, you’re likely picturing somewhere cosy, warm and safe. You’re probably not thinking of a rough sea crossing, biting winds and the anguish of fleeing the country you love. That’s how Bibi* spent last Christmas night.

Bibi is from Afghanistan. Life there was desperate. And after being forced to flee, Bibi found herself living in a tent in a Greek transit camp, on the island of Lesbos. The BMS-supported welcoming centre outside the camp provides a safe space for women to wash, relax and experience the love of Jesus for the first time.

In the spirit of focusing on care for women, our partner on Lesbos runs a spa programme designed to offer vital and often overlooked activities that bring back a sense of normalcy to shattered lives, including foot washing and massage, haircuts and nail painting. Our partner runs these programs with the support and collaboration of a wonderful team of community volunteers – volunteers who are refugees themselves.

People, not pawns for politicians

The work of our partner supporting refugees in Lesbos continues to grow and change as the situation changes. In the lead up to the last year’s Greek presidential elections, the camp management was ordered by the government to begin enforcing a strict policy to only provide food for people whose asylum cases were still in process.

This left roughly 500 people without access to food at a time when rising food prices across Europe hit foodbanks for refugees the hardest. Thanks to your support, our partner teamed up with other organisations to address the situation. Their hospitality area truly became a place of gathering for conversation and community.

Creating spaces to share the gospel

Your generosity in supporting our Help for the Journey work meant that last year, our partnership could expand into Cyprus to work with the increasing numbers of refugees on the island. Alongside providing vital psychological support, you have made possible projects that create deep connections. This includes an art club for women run in the centre every Thursday where, on any given week, women from Afghanistan, Kurdistan, Ukraine and Congo join the group. Also on Thursday mornings, our partner began a Social Café. They use the outdoor area to set up a coffee station and many tables with different board games and activities. During this time, our own volunteers engage and play games with the refugees and asylum seekers who come. Families said that it has really helped them, especially with providing distraction for the children during the week. Our partner asks for prayer that the Social Cafe will provide space for more intentionally evangelistic conversations.

*name changed for security purposes

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Volunteer, BMS-supported centre, Greece

In all our work in every location we must love God through honouring his handiwork. And to love God we must love our neighbour. We all depend on the same planet, so our choices have consequences for others and our choices also have a dimension of justice.

For in him all things were created: things in heaven and on earth, visible and invisible, whether thrones or powers or rulers or authorities; all things have been created through him and for him. Colossians 1:16

BMS is committed to creation stewardship in every aspect of our mission:

Through the actions of our mission workers, in respectful collaboration with our partner organisations, through the mission programmes and projects we support and through our UK presence, in operations and buildings and the training of all who work for us.

Target to reduce carbon emissions by 45%

As part of that commitment, we have a target to reduce our carbon emissions by 45% by the end of 2025. Our 2023 figure is a 3.4% decrease from 2022, and an 18% decrease from the 2019 baseline.

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CHALLENGE

Creation stewardship is evidently a critical issue. However, we must acknowledge that it is frequently perceived as a western preoccupation. To many partners, environmental concerns can appear as a long-range nebulous risk when compared to the daily challenges they face. Our 2024 plan is to re-imagine even more contextualised engagement with partners, balancing local perception with global understanding in ways that make sure our mission remains truly polycentric.

LIVES TRANSFORMED

In a country heavily reliant on fossil fuels, Guinebor II Hospital (G2) in Chad has recently upgraded its solar panel array. In a country that, on average, has 264 days of sunlight a year, attention has moved to sustainable energy. And it’s your incredible support that’s making this green revolution possible at the hospital. G2 has always relied on a combination of diesel generators and its small existing array of lead acid solar panels. However, even this system has its issues. It was too complex for anyone in-country to fix when it broke

down; when someone required oxygen, a small diesel generator was needed; medications were going out of date due to the storage fridges overheating; surgeries were having to be powered by generators; babies were being delivered by torchlight and there were no fans on the wards – a big issue when temperatures can hit 45 degrees.

The overhaul of G2’s solar has meant a massive transformation for the hospital. The project, part-funded by BMS supporters, has enabled G2’s solar capacity to increase threefold, allowing the hospital to reduce significantly its dependence on diesel generators. The whole project was also completed alongside a Chadian electrician, allowing local staff to take ownership of the project and be equipped with the knowledge and skills to repair and maintain the solar array.

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Every piece of work reflects our commitment to gender justice. The pinnacle of God’s creation was human beings - ‘in our image...male and female her created them’ and their shared existence wasn’t just good, it was very good. Everywhere we work we see the blight of gender injustice on lives of countless women. It is impossible to be about the mission of God in the world and not be compelled to act.

Speak up for those who cannot speak for themselves, for the rights of all who are destitute. Proverbs 31: 8

BMS is committed to gender justice in every aspect of our mission:

Over the course of 2023, we had a target to enlist ten Gender Justice champions from across the BMS World Mission network with a plan for them all to be fully trained in 2024. By the end of the year, ten BMS mission workers plus four UK-based staff joined with 14 others from our partners to form a 28-strong global team.

We work with our partners to develop gender policies and work towards the raising up of women in leadership roles. In 2023, 14 out of 44 partners had women in their senior executive leadership with best practices found among partners in Uganda, Bangladesh and Spain.

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CHALLENGE

We aim for half of all partners to have developed and implemented their own gender charter or policy, which is in line with BMS Gender Charter by end of 2025. The 2023 number is below 40 per cent and we hope to translate the gender policy into Hindi, French, Nepali, KiSwahili, Bengali and Arabic by the end of 2024.

LIVES TRANSFORMED

The issues of creation stewardship are so often issues of climate justice and issues of climate are so often issues of gender justice. That hit home when we asked women from across BMS to share stories ahead of COP28.

Claire Bedford, BMS pharmacist, Guinebor II Hospital, Chad

The new solar power system at G2 Hospital means we have enough energy to light and ventilate the new women’s ward that opened a couple of months ago. Wonderfully, women can now always give birth with adequate lighting and they are also able to be hospitalised in a well-lit and ventilated ward.

Sahara Mishra, Human Development Community Services, Nepal

There are profound and disproportionate impacts of environmental problems on local communities in Nepal, particularly affecting women. Women, who often play a pivotal role in agriculture, other income-generating work and household

management, bear the brunt. These environmental crises have increased their workload and exacerbated the existing gender inequalities. Our job is to empower women to close that gap.

Susan Blanch Alal, Justice Livelihoods Health, Uganda

Let me tell you about Alice, who’s been supported by Justice Livelihoods Health (JLH) in Gulu. Alice says that the impact of climate change causes difficulties for a greater percentage of women than men, especially those living in the city or nearby towns. She shares how difficult it is to get firewood because of deforestation in the area, and confesses that women have been beaten by their husbands for cooking late or for asking for money for charcoal or firewood.

Impact by numbers

28 Gender justice champions enlisted

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Languages our gender policy will be available in by end of 2024

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Partners with women in senior leadership (target: 9)

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DISASTER RECOVERY

We all know how it works, don’t we? Disasters happen. We don’t know why. The poor suffer, we donate money, the West swoops in and fixes everything. Everyone lives happily ever after.

But that’s not how it works. There are no quick fixes. Recovery and rebuilding after a war, drought or tsunami can take decades. Psychological scars don’t heal when the TV crews move on.

BMS works with local partners. We directly support people who are on the ground and understand the situation. We don’t send goods manufactured here that threaten local economies there. Our work is looking forward. We give more grants to longterm recovery than immediate relief – that might mean paying for trauma counselling, rebuilding businesses or replanting crops.

BMS raises money before disasters happen so that we can respond when they do. We can only do that because of you. Without your giving, none of the relief work we do could happen. With your giving it can.

Impact by numbers

18,077 People benefiting from BMS relief work in 2023

LIVES TRANSFORMED

The Türkiye-Syria earthquake

Imagine life in the aftermath of a devastating earthquake. As wintery conditions do their worst, all you have is a temporary shelter to keep the cold weather at bay.

Now imagine too that you are displaced, by war and economic collapse. That was the heart-breaking reality for so many in Türkiye (formerly Turkey) and Syria in the wake of the earthquake in February 2023. But at least they had that shelter. And thanks to your incredible and rapid generosity, the people of Syria and Türkiye had not just shelter but also much-needed medical kits, blankets, heating tools and mattresses.

And now more than ever, as the work of rescue becomes the work of rebuilding and restoring, they continue to need your prayers.

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For I was hungry and you gave me something to eat, I was thirsty and you gave me something to drink, I was a stranger and you invited me in, I needed clothes and you clothed me, I was sick and you looked after me. Matthew 25: 34-36

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Expenditure

45% of charitable expenditure went on our Hope for the World work

Hope for the World 45% Heart for the Gospel 22% Help for the Journey 14% Raising Awareness 13%* Historic Partners 6%

“Historic partners” represents work that is being phased out over a period of 4 years since the introduction of the new strategy in 2021. Historic partners have continued to achieve impact in our previous strategic areas. The overall expenditure takes into account commitments that have been made to partners, a number of which have struggled with the continued global cost of living crisis.

*For a complete breakdown of these figures please see Table 5a on p.56

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The one who plants and the one who waters have a common purpose, and each will receive wages according to the labour of each. For we are God’s servants, working together

1 Corinthian 3: 7-9

767 Mission workers and BMS-supported workers across the globe after three years (target: 450)

49,940 Community members positively affected by partner projects (target: 50,000)

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Number of partner workers focused on refugee work

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Celebrating supporters

None of all that featured over these 26 pages could have happened without the incredible financial and prayerful generosity of UK churches and you.

From the small quiet prayer at your desk when a story of transformation drops into your email inbox to a fundraising event involving the whole church community, it all makes a difference. We are constantly surprised and inspired by the tales that reach us of supporters’ acts of kindness and sacrifice.

Our mission workers were buoyed to hear about the BMS World Mission-themed Christmas tree that became the centre of prayers for mission at Stockton Baptist Church. The power of your prayers throughout Advent combined with your financial generosity as you raised over £60,000 for our Safe Haven winter appeal, meaning refugees arriving on the Greek island of Lesbos will receive a truly Christian welcome.

Away from the cold of Christmas, summer at BMS means home assignments for our mission workers. None of those visits to share their stories of transformation would be possible without your hospitality. Whether you’ve organised a mission worker visit, hosted a dinner, offered a room or a lift, thank you so much!

When we asked for prayers for our Ukrainian brothers and sisters on the anniversary of the Russian invasion, we didn’t expect over 400 to come in, with a special shout out to the children of Darnall Road Baptist Church who sent in their own prayers for Ukrainian children.

We know of many other such stories of faithfilled prayer and generosity and know too there are many we never hear about or, when we do, we do so in the form of an answered prayer or an unmarked cheque. You make all that we do possible and for that we remain always grateful.

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We’d love to hear from you. Contact us now:

Phone: [phone] Email: [e-mail] Website: www.bmsworldmission.org/legacies

Trustee report

The Board of Trustee Directors (Board) of the Baptist Missionary Society (also known as ‘BMS World Mission’ and ‘BMS’) presents its annual report and audited financial statements for the year to 31 December 2023 (with comparative figures for the year to 31 December 2022). The financial statements comply with current statutory requirements, the memorandum and articles of association, the requirements of a director’s report as required under company law, and the Statement of Recommended Practice – Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS102.

Statement of Trustees’ responsibilities

Trustee Directors (Trustees) are responsible for preparing the Strategic Report, the Annual Report and the financial statements in accordance with applicable law and regulations. Company law requires 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 group and charity and of the incoming resources and application of resources, including the income and expenditure, of the group and charity for that period.

In preparing these financial statements, Trustees are required to:

• Select suitable accounting policies and then apply them consistently.

• Make judgements and accounting estimates that are reasonable and prudent.

• State whether 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 unless it is inappropriate to presume that the charity will continue in business.

Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Financial statements are published on the charity’s 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 of the charity’s website is the responsibility of Trustees. The Trustees’ responsibility also extends to the ongoing integrity of the financial statements contained therein.

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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

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 2024 and signed on their behalf by:

David Marc Owen

Chair of Trustees 23 May 2024

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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 enables Baptist churches to respond to the call of God throughout the world in making known the gospel of Jesus Christ, to prevent and relieve poverty, sickness and human suffering caused by disasters overseas, and to promote and advance healthcare and education.

BMS brings public benefit by focusing on Heart for the Gospel, Hope for the World, and Help for the Journey.

BMS works in places where churches are scarcely present, and in some of the poorest nations as defined by the Multidimensional Poverty Index (MPI).

BMS aims to support people with opportunity and basic services in locations that have a high refugee outflow towards Europe and is also developing work with transit refugees on the provision of basic humanitarian assistance.

The charitable work of BMS is funded by over £7m of public donations per annum (2022: £8m). 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 success 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 activities have remained focused on its stated purposes.

The Trustees have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the charity’s aims and objectives and in planning its future activities. In particular, the Trustees consider how planned activities will contribute to the aims and objectives that have been set.

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Structure, governance and management

1. Structure

BMS is a registered company limited by guarantee in England and Wales, and a registered charity in England and Wales. It is governed by its memorandum and articles of association.

Baptist Missionary Society India - BMS has worked in India since its inception more than 200 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.

Baptist House Limited - BMS has a 50% share in Baptist House Limited. The 50% share of assets and liabilities of this joint arrangement with the Baptist Union of Great Britain (BUGB) has been included as an investment in the Balance Sheet and details are included in Note 8b. BMS accounts for its share of the service charge as charitable and share of the surplus as unrealised investment income.

2. Governance

The BMS Council are the company members of BMS. Council members will normally serve three-year terms and may serve up to three 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 Unions of Great Britain, Scotland and Wales, the Irish Baptist Networks, the colleges recognised as Baptist colleges, and by co-optation. The Council normally meets at least twice a year. In 2023 meetings were held online in June and December.

Trustees are elected by the Council and serve normally for a term of three years and may serve a maximum of three terms. Those nominated as potential Trustees are reviewed to ensure they have the necessary skills to contribute to the charity’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 includes a presentation on the organisation, an opportunity to meet key staff and become familiar with BMS. Trustees also have access to a secure intranet web-based system where they can access Board papers and other information. Trustees stay abreast of changes in good practice and legislation. They designate one full day meeting each year specifically for relevant Board training and in 2023 this included an in-depth workshop exploring the implications of polycentric mission for BMS.

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A Board Manual is used as a reference guide to good governance at Board level.

The Board has carried out a self-assessment against the Charity Governance Code and the Board concluded that the charity’s overall governance 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 2020 update of the Code, the Board determined to engage a consultant during 2022 to add independent rigour to a review of practices. The consultant was appointed in December 2022 and undertook their review during 2023, reporting to the Board with an in-depth workshop of the recommendations in July 2023. The Board have established a Governance Sub-Committee to take forward the recommendations of the review.

In addition to the Governance Sub-Committee three committees have been constituted with specific terms of reference and functions delegated by the Board.

The Finance and Audit Committee – advises on all aspects of the charity’s finances, including the financial accounts, annual estimates, risk management, investment management, income generation, property matters including Baptist House and Wallis House, salaries, mission personnel allowances, pensions and employment matters. They also advise on policy matters that relate to the future planning of the charity’s finances, including such issues as reserves and the balance between the different categories of expenditure. They consider the appointment of the external auditors and any questions of their resignation or dismissal; discuss with the external auditors before the audit commences the nature and scope of the audit; receive the auditors’ management reports following completion of their audit work and review the annual financial statements before submission to the Board of Trustees.

The Remuneration Committee – advises the Board of Trustees on the appropriate remuneration of the General Director and Executive Directors and their Terms and Conditions of employment. The Committee provides advice to the Board on staff grading structure, salaries and benefits.

The Nominations Committee – nominates people for appointment as Trustees. The appointment of a Trustee from amongst those nominated is made by Council members.

Safeguarding Trustee – a designated trustee has specific responsibility for oversight of safeguarding.

3. Management

Trustees are the governance-level decision makers for the charity. The Board currently numbers eight committed people from a wide range of backgrounds and experience who usually meet in formal Board meetings four times per annum. The Executive Directors 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-today operations to deliver the strategy set by the Trustees in accordance with BMS policies.

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Within BMS there are currently six main departments each with its own director:

• General Directorate – providing overall leadership for BMS with major emphasis on theological reflection, strategic development and representation.

• Department of Finance and Operations – responsible for support functions for BMS including finance, investment management, risk management, administration, IT and governance.

• Department for World Mission – responsible for BMS mission work overseas. Key roles

• include placement of mission personnel and relationships with overseas partner bodies.

• Department of Intercultural Learning and Collaboration – responsible for pre-departure

• preparation and training partnerships.

• Department of People and Culture – providing HR support for all staff and organisational

• development and learning.

• Department for Communications and Funding – responsible for BMS’ corporate

• communications portfolio, including funding, creative content and church relations.

Responsibility for our work overseas is supported by a team of Heads of Programme who have responsibility for mission personnel and partners and combine this with leading specific ministries. Broadly speaking our work falls into five main geographic regions: Asia, Sub-Saharan Africa, South America, Europe, Middle East and North Africa.

The charity works overseas with partner organisations, providing funding by way of grants and/ or the provision of personnel. Details of these partners and grants can be found at Note 6 of the financial statements.

3.1 Pay and remuneration policy

The Memorandum and Articles of Association 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, taking inflation and the overall financial position of BMS into consideration. BMS follows a grading and evaluation structure, and benchmarks salaries from time to time (last carried out in 2019).

3.2 Grant making policy

Christian stewardship underpins the BMS grant making policy in that it demands our integrity, diligence, good practice and wisdom. Grant applications must meet specific BMS principles, represent good stewardship and be able to meet 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 (2022: £2.4m). The Trustees’ policy is that grants are made against a budget, approved by the Board of Trustees and managed 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.

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3.3 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 principles set out the principles governing decisions about investments for the general and endowment funds and incorporate the BMS ethical investment policy. These statements are reviewed by Trustees regularly.

The entire BMS portfolio is invested in the CCLA Ethical Investment Fund to achieve investment requirements that balance income and capital growth, and to adhere closely to the BMS ethical investment policy. Both asset allocations are classified as ‘medium’ risk.

The BMS General Fund investments and Endowment Fund investments (unless specifically allocated in accordance with the fund) are in the COIF Charities Ethical Investment Fund. The income yield for the Fund for year to 31 December 2023 was 2.9%, and the net annualised return for the Fund was 13.2% (to 31 December 2022 the yield was 3% and net annualised return -9.7%). The market value of General Fund investments at 31 December 2023 was £4.7m (31 December 2022 £4.2m); endowment and property fund investments were £2.1m (31 December 2022 £1.9m).

4. Going concern

The Trustees have made an assessment of the charity’s ability to continue as a going concern for a period of at least twelve 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 basis.

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 consider there 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.

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Principal risks and uncertainties

Trustees regularly review the internal and external risks to BMS and give consideration to organisational attitude to risk. Trustees have identified the most important potential risks and uncertainties that may seriously affect the performance, future prospects or reputation of BMS, and have assessed how the risks are being managed.

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Potential risk How we manage the risk
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Potential risk	How we manage the risk
Safety and security Risks are faced by BMS mission workers and staff as a result of the BMS strategy to work in fragile states amidst pronounced global insecurity.	BMS has a comprehensive 24-hour crisis management policy and crisis response plan, with detailed procedures for handling a wide range of crisis events. Our commitment to work in dangerous places requires us to embrace, but minimise, a certain level of risk. When necessary BMS withdraws or moves personnel for a period. Regular crisis response scenarios and reviews are undertaken to embed preparedness.
Safeguarding Issues around the protection of children and vulnerable adults in its care and in the care of mission workers.	BMS takes this risk extremely seriously. Well- developed communication and safeguarding processes are in place and BMS has entered a partnership with a specialist provider to train staff and partners and actively works to strengthen partner understanding of safeguarding. BMS has an experienced trustee with designated responsibility for safeguarding.
Funding BMS support comes primarily from the Bap- tist denomination which provides a loyal and consistent support base. However, BMS is vulnerable to the fnancial strength, risks and uncertainties of the Baptist Unions of Great Britain, Scotland and Wales and their member churches. This is particularly exacerbated with the risks to the UK economy and the cost of living rises across the world.	An independent but close relationship is maintained with the three mainland Baptist unions to stay abreast of their own risks and uncertainties. Giving from individual supporter is being grown to decrease our dependency on income directly from churches. Several fundraising products and relationship management tools are used to build and enhance our relationship with supporting churches and individuals. Staff members are developed and trained in fundraising practice, and keep abreast of industry trends and innovations. Trustees are looking at different operating models to implement strategy that could widen the funding base.

Trustees are looking at different operating models to implement strategy that could widen the funding base. 35

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Potential risk How we manage the risk
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Potential risk	How we manage the risk
Impact Not demonstrating suffcient impact from our work, or failing to meet donor expectations.	BMS seeks to maintain strong connections with our donors through a wide range of high quality communication content. A plan is in place to proactively engage supporters in the strategy. BMS has regular opportunities for supporter feedback so we can respond quickly to changing supporter expectations. BMS has a rigorous reporting framework used to gauge outcomes and assess impact.
Overseas expenditure The majority of the charity’s expenditure takes place overseas which heightens risks in terms of fraud and ensuring this is spent in accordance with the Charity’s objectives. The 2021 – 2025 strategy extends activity into new areas of work and new partners.	BMS has a rolling programme in relation to partner capacity building. This ensures that there is greater fnancial scrutiny over the overseas transactions. Financial reviews and control capacity is monitored through regular reports to the Finance and Audit Advisory Committee. Special reviews are in place to support new strategic initiatives. A programme of partner visits is scheduled for 2024.
Organisational agility BMS does not adapt to the rapidly changing landscape of global mission and ceases to be ` an effective and relevant organisation.	BMS has a strategy implementation plan and is developing a new operational model enabling the organisation to respond to events in an agile way.
Pension scheme funding The pension environment worsens leading to ` a failure of the investment strategy	The closed DB pension scheme has been pushed back into a funding defcit by the turmoil in fnancial markets in September and October 2022. During 2023 BMS made further contributions to the scheme totalling £1.922m. This, together with an investment policy that involves a higher level of risk than previously, has brought the scheme to almost full funding again. The Pension Trust has reviewed the scheme’s investment and de-risking strategy. There is a strong collaborative relationship between BMS and the Pension Trust, with competent trustees and advisers. An integrated risk management approach is being followed for the scheme.

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Potential risk How we manage the risk
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Potential risk	How we manage the risk
Inability to deliver long term strategy Failure to articulate long-term BMS strategy and give direction to organisation due to organisational changes in culture and structure being insuffcient to deliver long-term strategy.	High levels of trustee scrutiny are in place to ensure integrity and wisdom of strategy including measures and monitoring of strategy using a Kaplan and Norton scorecard. Management regularly review the appropriateness of such measures. There is ongoing development of appropriate organisational procedures and protocols for polycentric working, including partner sustainability and capacity.
Management abuse of power The potential reputational damage to the organisation where management has abused its power.	BMS has high ethics and takes this risk seriously. There are rigorous selection criteria in place for recruitment and review processes that include reviews of behaviour. In case of fnance, strong controls are in place with Finance and Audit Advisory Committee and Treasurer review. There is a Whistleblowing policy that is trusted by staff and mission personnel.
Data breach and/or cyber attack The potential impact resulting from the loss of or damaged data from systems being breached together with the disruption of day-to-day systems and procedures.	BMS undertakes continual software updates, frequent data back-up, anti-virus software, staff training and updates. Staff undertake regular cyber security training. BMS engages an external provider to undertake regular penetration testing. Our contact management system, payroll, accounting and HR systems are all cloud based. Our bankers and other advisers provide regular user training on cyber security.

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Financial review

1. Movement in funds

Taking the charity’s funds in total, there was net expenditure for the year of £578k (2022 net expenditure of £59k), a net gain of £580k (2022 net loss of £249k) from the increase in value of the investment portfolio held by the charity, an actuarial loss on the defined benefit pension scheme of £800k (2022 loss of £561k), an exchange loss on assets held overseas of £27k (2022 gain of £8k) and no exchange gain or loss on forward contracts (2022 Nil). The overall position was a net decrease in total reserves of £825k (2022 a decrease of £861k). The pension fund based on accounting provisions has increased to £165k surplus (2022 – deficit of £1m).

2. Reserve policy and fund position

General funds (free reserves)

Trustees have a reserves policy that takes a risk-based approach. The policy was reviewed in 2022 and 2023, in particular taking into account lessons learned from economic turmoil in the UK in September 2022.

Trustees have examined the requirement for free reserves which are those unrestricted reserves not invested in fixed assets, designated for specific purposes or otherwise committed, but does not take account of the pension reserve. Trustees consider that, given the nature of our work and responsibility to partners that extends beyond a year, this should equate to a range of between £4.5m to £5m. This would be expected to provide the flexibility and resilience to cover any shortterm funding crisis or a medium-term recession, and a large portion of this needs to be matched by cash or cash equivalents.

The free reserves at 31 December 2023 were £4.4m (2022 £5.7m). Trustees maintain a financial plan to manage the budget so that the target level of reserves is achieved and maintained, and that this is matched by sufficient liquid funds. Such plans will take into account the long-term funding status of the charity’s pension scheme and ensure that deficit payment commitments are met. The current balance is slightly below the reserve policy by £0.1m. The Trustees had deliberately built reserves to invest in Strategy 2025 and have now been looking beyond this to the longer-term vision. The charity also holds funds designated for specific purposes, without legal restriction, as follows:

Fund	2023	2022	Purpose
Fixed asset	£4.6m	£4.8m	Net book value of unrestricted fxed assets
Defned Beneft Pension	-	£0.4m	For defcit contributions to the scheme
Mission innovation	£0.01m	£0.1m	For initiatives not in budget, topped up in year
Strategy	£0.7m	£0.7m	Set aside for 5-year fnancial strategy implementation
Contingency	£0.5m	£0.5m	To ensure consistent response in economic downturn
Revaluation reserve	£1.6m	£1.6m	Represents the movement in value of investment properties

£7.41m £8.1m

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There is a Carbon Offset Fund of £13k (2021 £18k). It is topped up with BMS’ carbon offset calculation and is used to contribute towards specific environmental projects.

The triennial valuation of the BMS defined benefit pension scheme was carried out as at 31 December 2021; the next valuation will be as at 31 December 2024. The small surplus in 2021 was calculated to be £0.1m. During 2023 employer contributions of £2,072k were paid (2022 £0.15m) as a result of the effect of the September 2022 economic turmoil . The fund valuation for accounting purposes at 31 December 2023 was a small surplus of £165k (2022 deficit £1m). The funding position at 31 December 2023 based on technical provisions was a deficit of £200k (2022 deficit of £2.2m).

Endowment funds

Included in the balance sheet are endowment funds totalling £2.5m (2022 £2.3m), the capital element not being available to be spent. Income from the endowment funds has been spent during the year.

Restricted funds

Restricted funds are subject 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 2023 the total was £2.1m (2022 £1.9m). The accounts of BMS India have been consolidated with BMS. Reserves of £0.4m (2022 £0.4m) are included in the restricted fund balance.

3. Effectiveness of activities to generate funds

BMS is registered with the Fundraising Regulator, the Fundraising Preference Service and is compliant with the Code of Fundraising Practice. We will respond to any future developments in full keeping with both the letter and spirit of any changes. Our commitment 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 distress, inconvenience or undue pressure, particularly on vulnerable people.

Direct fundraising costs are a small proportion of BMS expenditure (less than 5%). A large proportion of our income comes from our carefully managed relationship between BMS and our supporting churches and their members. BMS does not use professional external fundraisers.

In the last year we received six complaints in response to our fundraising material, out of tens of thousands of mailings. The matter was handled swiftly, carefully and in accordance with our fundraising complaints procedure.

New donors have responded to appeals throughout the year, some have become regular donors and others generously increased their monthly giving. We are thankful to God for his provision, and to our many supporters for their continued generosity.

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4. 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. The triennial valuation of the defined benefit section was at 31 December 2021; the next valuation will be as at 31 December 2024. The small surplus in 2021 was calculated to be £0.1m. During 2023 employer contributions of £2,072k were paid (2022 £0.15m) as a result of the effect of the September 2022 economic turmoil. This resulted in the need for the Pension Trustee to review its investment strategy. A new strategy has been agreed by the Pension Trustee to arrive at a long term dependency target in 12 years’ time of gilts + 0.25%. Equity investment is not a part of the portfolio, but it has been possible for the 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.

5. Factors likely to affect the financial performance going forwards and post year-end events

The major financial concerns that BMS faces is the economic outlook for the UK and the world economies.

In 2023, work resumed in Afghanistan but more heavily restricted than previously meaning our partner has been unable to continue some of its work. The damaging impact of the economic turmoil in 2022 not just in the UK but globally continues to affect our income, particularly the one-off individual giving which has a knock-on effect on the ability of BMS to fund projects and activities. The ongoing impact has been factored into future financial plans and contingency actions 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 if necessary. BMS continues to work alongside the European Baptist Federation in response to the war in Ukraine. On review of the financial plans to the end of June 2025, and given the new strategies that are being developed for Finance, Fundraising, People and Partnership, the Trustees have concluded that this will not affect the ability of the charity to continue as a going concern.

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Reference and administrative details

Trustees

Rev David Marc Owen (Chair) Mr Robert Ashurst (Honorary Treasurer to January 2024) Dr Anthony Agbonasevbaefe Mr Richard Gray (from January 2023) Ms Helle Liht (to May 2024) Dr Kang-San Tan Rev Simeon Baker Dr Elizabeth Bendor-Samuel (to October 2023) Ms Lynn Cadman Dr Marion Carson (Vice Chair) Ms Ruth Elliot (Honorary Treasurer from January 2024)

Key management personnel

Dr Kang-San Tan (General Director) Rev Dr Arthur Brown (World Mission) Mr Ben Drabble (Communications and Funding to December 2023) Mrs Heather Drury (People & Culture) Mrs Helen Harris (Funding and Communications from March 2024) Dr Aniu Kethoser Kevichusa (Intercultural Learning and Collaboration from March 2024) Mr Stephen Sanderson (Strategy) Mr Bijoy Sangma (Intercultural Learning and Collaboration) (to October 2023) Mrs Caroline Trimble (Finance & Operations)

Auditor

Sayer Vincent LLP 110 Golden Lane London EC1Y 0TG

Principal Solicitors Anthony Collins Solicitors LLP 134 Edmund Street Birmingham B3 2ES

Principal bankers

Barclays Bank 1 Churchill Place London E14 5HP

Investment Managers

CCLA Investment Management Limited Senator House 85 Queen Victoria Street London EC4V 4ET

Actuary XPS Pension Group 1 Colmore Row Birmingham B3 2BJ

Registered office

Baptist Missionary Society 129 Broadway, Didcot, OX11 8XD Telephone: [phone] Fax: [phone] Email: [e-mail] Website: bmsworldmission.org

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AUDITOR’S REPORT

FOR THE YEAR ENDED 31 DECEMBER 2023

INDEPENDENT AUDITOR’S REPORT TO MEMBERS OF BMS WORLD MISSION

1 Opinion

We have audited the financial statements of The Baptist Missionary Society (the ‘parent charitable company’) and its subsidiary (the ‘group’) for the year ended 31 December 2023 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 flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, 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 of the group’s and of the parent charitable company’s affairs as at 31 December 2023 and of the group’s and parent charitable company’s incoming resources and application of resources, including its income and expenditure, for the year then ended

• Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice

• Have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities Act 2011

2 Basis for opinion

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

3 Conclusions relating to going concern

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

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

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

4 Other Information

The other information comprises the information 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 information is materially inconsistent with the group financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the group financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

5 Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit:

• The information given in the trustees’ annual report, including the strategic report, for the financial year for which the financial statements are prepared is consistent with the financial statements.

• The Trustees’ annual report, including the strategic report, has been prepared in accordance with applicable legal requirements.

6 Matters on which we are required to report by exception In the light of the knowledge and understanding of the group and the parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ annual report, including the strategic report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and Charities Act 2011 requires us to report to you if, in our opinion:

• Adequate accounting records have not been kept by the parent charitable company, or

• returns adequate for our audit have not been received from branches not visited by us; or

• The parent charitable company financial statements are not in agreement with the

• accounting records and returns; or

• Certain disclosures of trustees’ remuneration specified by law are not made; or

• We have not received all the information and explanations we require for our audit.

7 Responsibilities of trustees

As explained more fully in the statement of trustees’ responsibilities set out in the Trustees’ annual report, the trustees (who are also the directors of the parent charitable company for the purposes of company law) are responsible for the preparation of the financial statements and

43

for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

8 Auditor’s responsibilities for the audit of the financial statements We have been appointed auditor under the Companies Act 2006 and section 151 of the Charities Act 2011 and report in accordance with those Acts.

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 auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud are set out below.

Capability of the audit in detecting irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

• We enquired of management, and the finance and audit committee, which included

• obtaining and reviewing supporting documentation, concerning the group’s policies and procedures relating to:

• Identifying, evaluating, and complying with laws and regulations and whether they were aware of any instances of non-compliance;

• Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected, or alleged fraud;

• The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.

• 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.

44

• 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.

9 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)

19 July 2024

for and on behalf of Sayer Vincent LLP, Statutory Auditor 110 Golden Lane, LONDON, EC1Y 0TG

Sayer Vincent LLP is eligible to act as auditor in terms of section 1212 of the Companies Act 2006

45

BMS GROUP CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2023

(incorporating an income and expenditure account)

	2023		2022
Notes Income from: Donations, grants and legacies 2 Other trading activities Investment income 3 Other income 4	Unrestricted Restricted Endowment Total Funds Funds Funds 2023 £'000 £'000 £'000 £'000		Unrestricted Restricted Endowment Total Funds Funds Funds 2022 £'000 £'000 £'000 £'000
	5,620 782 - 6,402 19 130 - 149 390 29 - 419 100 8 - 108		5,140 2,559 - 7,699 18 100 - 118 284 10 - 294 90 14 - 104
Total income	6129 949 7078		5532 2683 8215
	, - ,		, , - ,
Expenditure on: Raising funds Charitable activities Heart for the Gospel Hope for the World Help for the Journey Historic Partners Raising Awareness	373 - - 373 1,562 24 - 1,586 2,556 745 - 3,301 910 80 - 990 434 4 - 438 968 - - 968		380 - - 380 1,219 85 - 1,304 2,307 1,638 - 3,945 996 3 - 999 660 5 - 665 981 - - 981
	6,430 853 - 7,283		6,163 1,731 - 7,894
Total expenditure 5	6,803 853 - 7,656		6,543 1,731 - 8,274
Net income / (expenditure) before movement on investments Net gains/(losses) on investments	(674) 96 - (578) 355 18 207 580		(1,011) 952 - (59) 33 35 (317) (249)
Net income/(expenditure)	(319) 114 207 2		(978) 987 (317) (308)
Other recognised gains/(losses): Actuarial gains/(losses) on defined benefit pension scheme Exchange differences Transfers between funds 9	(800) - - (800) - (27) - (27) - (44) 44 -		(561) - - (561) - 8 - 8 437 (437) - -
Net movement in funds	(1,163) 131 207 (825)		(1,102) 558 (317) (861)
Reconciliation of funds: Total funds brought forward	12,895 1,938 2,343 17,176		13,997 1,380 2,660 18,037
Total funds carried forward	11,732 2,069 2,550 16,351		12,895 1,938 2,343 17,176

The result for the year for Companies Act 2006 purposes is represented by the net movement in funds in the consolidated statement of financial activities. There are no recognised gains or losses in the current or preceding year other than those shown in the consolidated statement of financial activities above. All amounts derive from continuing operations.

There is no material difference between the net income/(expenditure) for the financial year stated above and their historical cost equivalents.

46

BMS PARENT CHARITY STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2023

(Incorporating an income and expenditure account)

		2023	2023	2023	2023		2022
Income from: Donations, grants and legacies Other trading activities Investment income Other income	Notes 2 3 4	Unrestricted Restricted Endowment Total Funds Funds Funds 2023 £'000 £'000 £'000 £'000					Unrestricted Restricted Endowment Total Funds Funds Funds 2022 £'000 £'000 £'000 £'000
		5,620 782 - 6,402 19 - - 19 390 1 - 391 100 - - 100					5,140 2,559 - 7,699 18 - - 18 284 9 - 293 90 - - 90
Total income		6,129	783		6,912		5,532 2,568 - 8,100
Expenditure on: Raising funds Charitable activities Heart for the Gospel Hope for the World Help for the Journey Historic Partners Raising Awareness		373 - - 373 1,562 24 - 1,586 2,556 606 - 3,162 910 80 - 990 434 4 - 438 968 - - 968					380 - - 380 1,219 85 - 1,304 2,307 1,515 - 3,822 996 3 - 999 660 5 - 665 981 - - 981
		6,430 714 - 7,144					6,163 1,608 - 7,771
Total expenditure	5	6,803 714 - 7,517					6,543 1,608 - 8,151
Net income / (expenditure) before movement on investments Net gains/(losses) on investments		(674) 69 - (605) 355 18 207 580					(1,011) 960 - (51) 33 35 (317) (249)
		(319) 87 207 (25) (44) 44 - - (800) - - (800)					(978) 995 (317) (300) 437 (437) - (561) - - (561)
Net income/(expenditure)
Transfers between funds Other recognised gains/(losses): Actuarial gains/(losses) on defined benefit pension scheme	9
Net movement in funds		(1,163) 131 207 (825)					(1,102) 558 (317) (861)
Reconciliation of funds: Total funds brought forward		12,895 1,544 2,343 16,782					13,997 986 2,660 17,643
Total funds carried forward		11,732 1,675 2,550 15,957					12,895 1,544 2,343 16,782

The notes on pages 51 to 71 also form part of these financial statements

47

BMS GROUP CONSOLIDATED AND CHARITY BALANCE SHEET

AS AT 31 DECEMBER 2023 COMPANY NUMBER 10849689

	Group	Charity
Notes Fixed assets Tangible assets 11 Investments 12 Investmentproperties 13	2023 2022 £'000 £'000 5,093 5,315 7,344 6,720 1,730 1,774	2023 2022 £'000 £'000 4,860 5,055 7,344 6,720 1,730 1,774
Total fixed assets	14,167 13,809	13,934 13,549
Current assets Stock Debtors 14 Investments Cash at bank and in hand	2 2 1,824 1,441 1,674 100 533 4,846	2 2 1,802 1,421 1,552 1 485 4,803
Total current assets	4,033 6,389	3,841 6,227
Liabilities Creditors: amounts falling due within one year 15 Net current assets excluding pension liability Defined benefit pension scheme liability 17	(1,849) (2,036) 2,184 4,353 - (986)	(1,818) (2,008) 2,023 4,219 - (986)
Total net assets	16,351 17,176	15,957 16,782
The funds of the charity 9 Endowment funds Restricted income funds Unrestricted funds Designated funds General funds (free reserves) Total funds excluding pension reserve Pension reserve	2,550 2,343 2,069 1,938 7,367 8,139 4,365 5,742 16,351 18,162 - (986)	2,550 2,343 1,675 1,544 7,367 8,139 4,365 5,742 15,957 17,768 - (986)
Total funds	16,351 17,176	15,957 16,782

The financial statements on pages 46 to 50 were approved by the Trustees on 23 May 2024 and signed on their behalf by: David Marc Owen

Chair of Trustees

23 May 2024

Date:

48

BMS GROUP CONSOLIDATED AND CHARITY STATEMENT OF CASH FLOWS FOR THE YEAR 31 DECEMBER 2023

		Group		Charity
		2023	2022	2023	2022
		£'000	£'000	£'000	£'000
Cash flow from operating activities:
Net cash (used in)/provided by operating activities	(a)	(3,110)	436	(3,136)	422
Cash flows from investing activities:
Dividends, interest and other income from		419	294	391	293
investments
Proceeds from sale of tangible fixed assets		4	1	3	1
Payments to acquire tangible fixed assets		(25)	(33)	(25)	(30)
Net cash provided by investing activities		398	262	369	264
Change in cash and cash equivalents in the year		(2,712)	698	(2,767)	686
Cash and cash equivalents at the beginning of the		4,946	4,240	4,804	4,118
year
Change in cash and cash equivalents due to exchange rate movements		(27)	8	-	-
Cash and cash equivalents at the end of the year		2,207	4,946	2,037	4,804
(a)Reconciliation of net income to net cash flow
from operating activities
Net income /(expenditure) for the reporting
period (as per the Statement of Financial		2	(308)	(25)	(300)
Activities)
Depreciation		231	249	220	231
(Gains)/Losses on investments		(580)	249	(580)	249
Investment income		(419)	(294)	(391)	(293)
(Profit) from sale of fixed assets		(4)	(1)	(3)	(1)
Currency re-translation on fixed assets		16	(3)	-	-
Decrease/(increase) in stocks		-	1	-	1
(Increases)/Decrease in debtors		(383)	478	(381)	464
(Decrease)/Increase in creditors		(187)	127	(190)	133
Difference between net pension expense and cash contribution		(1,786)	(62)	(1,786)	(62)
Net cash (used in)/provided by operating activities		(3,110)	436	(3,136)	422
Analysis of changes in net funds
Cash at bank and in hand		533	4,846	485	4,803
Short term deposits		1,674	100	1,552	1
		2,207	4,946	2,037	4,804

49

BMS GROUP CONSOLIDATED AND CHARITY STATEMENT

OF CASH FLOWS FOR THE YEAR 31 DECEMBER 2023

Analysis of changes in net debt

Analysis of changes in net debt
		Group				Charity
	Cash and	Forward			Cash and	Forward
	cash	Contract	Total		cash	Contract	Total
	Equivalents	Obligations			Equivalents	Obligations
	£'000	£'000	£'000		£'000	£'000	£'000
At 1 January 2023	4,946	-	4,946		4,804	-	4,804
Cashflows	(2,712)	-	(2,712)		(2,767)	-	(2,767)
Fair Value Movements	-	-	-		-	-	-
Foreign Exchange Movements	(27)	-	(27)		-	-	-
Other non-cash changes	-	-	-		-	-	-
At 31 December 2023	2,207	-	2,207	0	2,037	-	2,037
		Group				Charity
	Cash and	Forward			Cash and	Forward
	cash	Contract	Total		cash	Contract	Total
	Equivalents	Obligations			Equivalents	Obligations
	£'000	£'000	£'000		£'000	£'000	£'000
At 1 January 2022	4,240	-	4,240		4,118	-	4,118
Cashflows	698	-	698		686	-	686
Fair Value Movements	-	-	-		-	-	-
Foreign Exchange Movements	8	-	8		-	-	-
Other non-cash changes	-	-	-		-	-	-
At 31 December 2022	4,946	-	4,946	0	4,804	-	4,804

50

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

1 Accounting policies

a Statutory information

BMS is a charitable company limited by guarantee and is incorporated in England and Wales. The registered office address is 129 Broadway, Didcot OX11 8XD.

b Basis of preparation

The financial statements have been prepared under the historical cost convention with the exception of investments which are included at market value. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

These financial statements consolidate the results of the charity and its wholly-controlled subsidiary, Baptist Missionary Society Trust, in India on a line-by-line basis. These financial statements also include the charity's 50% share of its Joint Venture, Baptist House Limited, as an investment recognised at fair value, being 50% of the value of the net assets, with any gain or loss taken through net gains on investments in the Statement of Financial Activities.

BMS constitutes a public benefit entity as defined by FRS 102.

c Assessment of going concern

BMS World Mission’s activities, its current financial position, and factors likely to affect its future development are set out within the report from the Board. BMS has a 5 year financial plan to 2025 that was updated at the beginning of 2023, that shows it is able to continue its business-critical activities and remain a going concern. As at 31 December 2023 BMS had available cash and short term investment balances of £2m and a further £5m of investments that could be drawn upon if required.

The Board’s assessment of going concern involved a number of subjective judgements including, but not limited to; decrease in donation income, impact of global economic uncertainties, delays in the crystallisation of legacies where probate has been granted, potential impact of the requirement to make further employer deficit contributions to the defined benefit pension scheme brought about by the market turmoil in the UK in the autumn of 2022. In making their assessment the board have also considered the potential impact on its cashflows and liquidity. A stress test has been run on the cashflow forecasts to June 2025 and the board have contingency plans in place to mitigate potential adverse impacts on cashflow including, for instance, delays in non-essential expenditure, phasing of grants, delaying staff recruitment. The Trustees concluded their assessment found that the financial plan and forecasts are robust and show that BMS is able to meet its obligations. On this basis, given the strength of the balance sheet and availability and liquidity of unrestricted investments, the Trustees believe that, while uncertainty exists, this does not pose a material uncertainty that would cast doubt on the charity’s ability to continue as a going concern. The Board has a reasonable expectation that BMS has adequate resources to continue in operational existence for the foreseeable future, being a period of at least twelve months after the date on which the report and financial statements are signed. The Board have considered the foreseeable future for their going concern assessment to cover the period to 31 December 2025. On this basis, the Board continues to adopt the going concern basis in the financial statements.

d Accounting estimates and judgements

Preparation of the financial statements in accordance with FRS102 requires the Trustees to make certain judgements and estimates. The items below are considered to be the most important in understanding the financial statements:

BMS recognises its liability to its defined benefit pension scheme. This involves actuarial estimates which are disclosed in note 17.

BMS has accrued £1,586k of legacy income. This is based on the probate value of legacies notified to the charity, where probate has been granted and entitlement is clear. The actual amounts later received may differ to this value due to varying costs and fees.

51

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

e Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the objectives of the charity and which have not been designated for other purposes.

Designated funds comprise unrestricted funds, which have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by the donors or which have been raised by the charity for particular purposes. The aim and use of each restricted fund is set out in the notes to the financial statements.

Endowment funds are those where donations are required to be retained as capital in accordance with the donors’ wishes – permanent or expendable according to the nature of the restriction.

Investment income and gains are allocated to the appropriate fund.

f Income

All income, including donations, legacies, grant income and investment income, is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.

Recognition of legacy income is dependent on the type of legacy, with pecuniary legacies recognised when probate has been granted. Residuary legacies are recognised when they are measurable, probate has been granted and entitlement is clear. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is a treated as a contingent asset and disclosed if material.

No value is included where the legacy is subject to a life interest held by another party.

Investment income is recognised on a receivable basis.

Income from other trading activities includes amounts relating to the sale of Christmas cards and rental income. It is recognised on a receivable basis.

g Expenditure

All expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis. All expenses, including support costs and governance costs, are classified to the applicable expenditure headings in the Statement of Financial Activities. Costs which cannot be directly attributed have been allocated on a basis consistent with the use of the resources and staff time.

Expenditure on raising funds are those costs incurred in seeking voluntary contributions and in the management of the charity’s investments. They do not include the costs of disseminating information in support of BMS’ charitable activities.

Expenditure on charitable activities include expenditure associated with raising awareness and the three strategic ministries, and include both the activities, direct costs and support costs relating to these.

Governance costs are the costs associated with the governance arrangements of the charity. These costs are associated with constitutional and statutory requirements and include any costs associated with the strategic management of the charity’s activities.

Grants payable are made to third parties in the furtherance of BMS' charitable objects. They are accounted for when either the recipient has a reasonable expectation that they will receive a grant and the trustees have agreed to pay the grant without condition, or the recipient has a reasonable expectation that they will receive a grant and that any condition attaching to the grant is outside of the control of the charity.

52

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

h Tangible fixed assets and depreciation

Tangible fixed assets costing more than £1,000 (individually or as part of a related project) are capitalised and included at cost including any incidental expenses of acquisition. Land and buildings are included at original historical cost or probate value. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use. There has been no impairment in value of assets held over the financial period.

Depreciation is calculated to write down the original costs of the fixed assets over their estimated useful lives as follows:

Land No depreciation Buildings over 50 years Computer (included in furniture and equipment) over 3 years Furniture and equipment over 3 - 5 years Motor vehicles used overseas written off in year of purchase Solar panels and property modifications over 15 years

For BMS India, depreciation has been applied at the rates specified by the India Income Tax Act 1961, most specifically for buildings at 5%.

i Listed investments

Investments are stated at market value at the Balance Sheet date. The Statement of Financial Activities includes the net gains and losses arising on revaluations and disposals throughout the year. Current asset investments are short-term, highly liquid investments that are readily convertible to known amounts of cash.

j Investment assets

Investment properties are measured in the balance sheet at fair value. Investment properties are not depreciated. Any change in fair value is recognised in the statement of financial activities. The valuation method used to determine fair value will be stated in the notes to the accounts.

k Joint arrangement

Through a deed of trust, the charity is in a joint arrangement with the Baptist Union of Great Britain for the management of Baptist House, its headquarters building. Under the terms of this arrangement all responsibility for the letting and operation of the building was transferred to Baptist House Limited. The arrangement is governed by Articles of Association for Baptist House Limited and a Declaration of Trust with the Baptist Union of Great Britain.

The charity accounts for its 50% share of Baptist House Limited as an investment in the Balance Sheet. The Statement of Financial Activities includes its share of the service charge within charitable expenditure and its share of the surplus within unrealised investment gains. Transactions between the charity and the joint arrangement are eliminated on incorporating these amounts into the accounts of the charity.

l Stock

Stock is valued at the lower of cost and estimated net realisable value.

m Investments

Investments include short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

n Cash at bank and in hand

Cash at bank and cash in hand includes deposits held at call with banks and cash in hand.

53

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

o Foreign currencies

Assets and liabilities held in foreign currencies are translated into sterling at the rates of exchange ruling at the end of the financial year and the results of foreign operations are translated at the average rate of exchange for the year.

Differences on exchange arising from retranslation of foreign currency bank balances and other assets are reported under income and expenditure in the Consolidated Statement of Financial Activities.

All other foreign exchange differences are taken to the Statements of Financial Activities in the period in which they arise.

p Financial instruments

Financial assets and financial liabilities are recognised when BMS becomes a party to the contractual provisions of the instrument. All financial assets and liabilities are initially measured at transaction price (including transaction costs). Financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. Creditors and provisions are recognised where BMS has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

q Pensions

The charity’s defined benefit scheme is funded with the assets of the scheme held separately from those of the charity, in separate Trustee-administered funds. Pension scheme assets are measured at fair value and liabilities are measured on an actuarial basis using the projected unit method and discounted at a rate equivalent to the current rate of return on a high quality corporate bond of equivalent currency and term to the scheme’s liabilities. The actuarial valuations are obtained at least triennially and are updated at each Balance Sheet date.

Where appropriate the resulting defined benefit liability is presented separately after other net assets on the face of the Balance Sheet.

The current service cost, past service costs and any gains and losses on settlements and curtailments are charged in resources expended in the Statement of Financial Activities. The interest costs and the expected return on assets are shown as a net amount of other finance costs or credits and included in resources expended. Actuarial gains and losses are recognised within the ‘gains and losses’ categories of the Statement of Financial Activities as ‘actuarial gains and losses on defined benefit pension scheme’.

Contributions to the charity’s defined contribution pension scheme are charged to the Statement of Financial Activities in the year in which they become payable.

54

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023	NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
2 Unrestricted Restricted Total Unrestricted Restricted Total Funds Funds 2023 Funds Funds 2022 £'000 £'000 £'000 £'000 £'000 £'000 Donations 4,315 730 5,045 4,114 2,438 6,552 Grants 18 52 70 19 46 65 Legacies 1,287 - 1,287 1,007 75 1,082 BMS India - - -- - - 5,620 782 6,402 5,140 2,559 7,699 3 2023 2022 2023 2022 £'000 £'000 £'000 £'000 UK investment dividends 65 67 65 67 Interest on cash deposits 266 187 266 187 Bank and other interest 28 1 - - Commercial rental income 60 39 60 39 419 294 391 293 4 Other income 2023 2022 2023 2022 £'000 £'000 £'000 £'000 Profit on sale of fixed assets 4 1 3 1 Sundry income 104 103 97 89 108 104 100 90 Investment income Donations, grants and legacies Charity Group Charity Group
Donations Grants Legacies BMS India
3 Investment income
UK investment dividends Interest on cash deposits Bank and other interest Commercial rental income
4 Other income
Profit on sale of fixed assets Sundry income

55

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

5a Analysis of expenditure (current year)

Group

Expenditure on raising funds: Donations and legacies Charitable activities Heart for the Gospel Hope for the World Help for the Journey Historic Partners Raising Awareness Charity Expenditure on raising funds: Donations and legacies Charitable activities Heart for the Gospel Hope for the World Help for the Journey Historic Partners Raising Awareness	Direct costs Grant funding of activities Support costs Total 2023 Total 2022 £'000 £'000 £'000 £'000 £'000 255 - 118 373 380 486 597 503 1,586 1,304 1,548 751 1,002 3,301 3,945 221 455 314 990 999 299 - 139 438 665 968 - - 968 981
	3,777 1,803 2,076 7,656 8,274
	Direct costs Grant funding of activities Support costs Total 2023 Total 2022 £'000 £'000 £'000 £'000 £'000 255 - 118 373 380 486 597 503 1,586 1,304 1,409 751 1,002 3,162 3,822 221 455 314 990 999 299 - 139 438 665 968 - - 968 981
	3,638 1,803 2,076 7,517 8,151

56

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

5b Analysis of expenditure(prioryear)	5b Analysis of expenditure(prioryear)
Group Expenditure on raising funds: Donations and legacies Charitable activities Heart for the Gospel Hope for the World Help for the Journey Historic Partners Raising Awareness Charity Expenditure on raising funds: Donations and legacies Charitable activities Heart for the Gospel Hope for the World Help for the Journey Historic Partners Raising Awareness	Direct costs Grant funding of activities Support costs Total 2022 Total 2021 £'000 £'000 £'000 £'000 £'000 313 - 67 380 335 570 503 231 1,304 1,284 1,761 1,507 677 3,945 3,189 489 333 177 999 1,173 453 94 118 665 804 981 - - 981 794 4,567 2,437 1,270 8,274 7,579 Direct costs Grant funding of activities Support costs Total 2022 Total 2021 £'000 £'000 £'000 £'000 £'000 313 - 67 380 335 570 503 231 1,304 1,284 1,638 1,507 677 3,822 3,089 489 333 177 999 1,173 453 94 118 665 804 981 - - 981 794 4,444 2,437 1,270 8,151 7,479

57

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

6a Analysis of Grants(currentyear)	6a Analysis of Grants(currentyear)
Charitable activities Heart for the Gospel Hope for the World Help for the Journey Historic Partners Total	Asia Europe Middle East & North Africa South America Sub-Saharan Africa Total 2023 £'000 £'000 £'000 £'000 £'000 £'000 482 45 - 9 61 597 152 371 72 - 156 751 - 280 175 - - 455 - - - - - -
	634 696 247 9 217 1,803

Grants totalling £30,000 and above were made to the following partners during the year.

Country Partner Ukraine EBF India Big Life Ministries Lebanon LSESD Greece All4Aid Asia Asia Pacific Baptist Federation Uganda JLH Chad Guinebor 2 Hospital Nepal MCDS Uganda UCLF Bangladesh BBCS Nepal NBCC Mozambique AMAC Thailand CCT Netherlands IBTSC Cambodia BCM Various Other partners <£30,000 Total Grants 2023	£'000 371 185 162 132 119 99 81 55 51 44 40 36 31 31 31 335
	1,803

58

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

6b Analysis of Grants(prioryear)	6b Analysis of Grants(prioryear)
Charitable activities Heart for the Gospel Hope for the World Help for the Journey Historic Partners Total	Asia Europe Middle East & North Africa South America Sub-Saharan Africa Total 2022 £'000 £'000 £'000 £'000 £'000 £'000 387 53 33 25 5 503 324 711 151 5 316 1,507 - 211 122 - - 333 18 49 27 - - 94
	729 1024 333 30 321 2,437

Grants totalling £30,000 and above were made Country Ukraine Uganda India Asia Chad Greece Lebanon Nepal Uganda Bangladesh Nepal Albania Sri Lanka Mozambique Netherlands West Africa Cambodia Various Total Grants 2022	to the following partners during the year. Partner £'000 EBF 743 JLH 197 Big Life Ministries 185 Asia Pacific Baptist Federation 137 Guinebor 2 Hospital 136 All4Aid 132 LSESD 100 NBCC 73 UCLF 59 BBCS 59 MCDS 55 Tek Ura 41 LEADS 40 AMAC 32 IBTSC 34 Baptist World Alliance 32 BCM 31 Other partners <£30,000 351 2,437	to the following partners during the year. Partner £'000 EBF 743 JLH 197 Big Life Ministries 185 Asia Pacific Baptist Federation 137 Guinebor 2 Hospital 136 All4Aid 132 LSESD 100 NBCC 73 UCLF 59 BBCS 59 MCDS 55 Tek Ura 41 LEADS 40 AMAC 32 IBTSC 34 Baptist World Alliance 32 BCM 31 Other partners <£30,000 351 2,437
7 Governance costs
Audit fee Other governance costs Board of Trustees	2023 £'000 32 2 2 36	2022 £'000 38 3 4 45

59

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

8a Subsidiary

BMS World Mission has a wholly controlled subsidiary, Baptist Missionary Society Trust (BMS India), registered in West Bengal, India. The trust carries out mission activities from its base in Kolkata. The charity appoints the Trustees of BMS India and on the winding up or dissolution of the Trust, its assets pass to the charity. Since 19 March 2015, financial activity of BMS India has been consolidated into that of the charity. Accounts are made up to 31 March each year and copies may be obtained from the BMS registered office.

Exchange difference Total assets Total liabilities Funds Total incoming resources Total expenditure Surplus for the year	2023 £'000 166 (139) (17) 10 425 (31) 394	2022 £'000 116 (123) 8
		1
		422 (28)
		394

8b Share in Joint Venture

BMS World Mission owns 50% of the issued ordinary share capital of Baptist House Limited, a company registered in England, with the remaining 50% owned by the Baptist Union of Great Britain. The Trustees believe that the company qualifies as a joint venture for accounting purposes. Given the level of activities, consolidated accounts have not been prepared as the effect on both the Statement of Financial Activities and the Balance Sheet would be immaterial. Accounts are made up to 31 October each year and a summary of the company's results are shown below.

Total assets Total liabilities Capital and Reserves Total incoming resources Total expenditure Profit/(Loss) for the year	2023 £'000 433 (429) 4 298 (45) 253	2022 £'000 366 (419)
		(53)
		308 (58)
		250

The charity's share of any profit or loss is 50% of the overall.

60

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

9a Statement of funds(current

year) Balance at 1.1.23 Incoming resources Resources expended Realised and unrealised gains Transfers Balance at 31.12.23 £'000 £'000 £'000 £'000 £'000 £'000 821 - - 80 - 901 884 - - 87 - 971 449 - - 21 - 470 189 - - 19 - 208 2,343 - - 207 - 2,550 888 229 (161) - 50 1,006 314 - - - (6) 308 153 - - 2 - 155 189 1 - 16 - 206 394 166 (139) (27) - 394 - 553 (553) - - - 1,938 949 (853) (9) 44 2,069 41 - - - - 41 740 - - - (14) 726 30 - - - (30) - 429 - - (429) - 450 - - - - 450 4,741 - - - (189) 4,552 1,621 - - (46) - 1,575 69 - (59) - - 10 18 1 (6) - - 13 8,139 1 (65) (46) (662) 7,367 (986) 1,922 (136) (800) - - 5,742 4,206 (6,602) 401 618 4,365 12,895 6,129 (6,803) (445) (44) 11,732

Endowment funds Cyril Edwards Trust Jane Mursell Trust Joy Bushon Sircar Trust Other endowment funds Restricted funds Emergency relief fund Restricted fixed assets reserve Restricted revaluation reserves Restricted property funds India Other restricted funds Unrestricted funds Designated: Covid impact Strategy implementation Historic partner support Defined Benefit Pension Deficit Contributions Contingency fund Fixed assets reserve Revaluation reserve Mission Innovation fund Carbon offset fund Pension reserve General funds Free reserves

The narrative to explain the purpose of each fund is given on the following page.

61

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

9b Statement of funds(prioryear)	9b Statement of funds(prioryear)
Endowment funds Cyril Edwards Trust Jane Mursell Trust Joy Bushon Sircar Trust Other endowment funds Restricted funds Emergency relief fund Restricted fixed assets reserve Restricted revaluation reserve Restricted property funds India Other restricted funds Unrestricted funds Designated: Covid impact Strategy implementation Historic partner support Defined Benefit Pension Deficit Contributions Contingency fund Fixed assets reserve Revaluation reserve Mission Innovation fund Carbon offset fund Pension reserve General funds Free reserves	Balance at 1.1.22 Incoming resources Resources expended Realised and unrealised gains Transfers Balance at 31.12.22 £'000 £'000 £'000 £'000 £'000 £'000 937 - - (116) - 821 1,010 - - (126) - 884 496 - - (47) - 449 217 - - (28) - 189
	2,660 - - (317) - 2,343
	339 1,805 (854) - (402) 888 320 - - - (6) 314 95 - - 58 - 153 232 9 - (23) (29) 189 394 115 (123) 8 - 394 - 754 (754) - - -
	1,380 2,683 (1,731) 43 (437) 1,938
	360 - - - (319) 41 850 - - - (110) 740 30 - - - - 30 - - (150) - 579 429 - - - - 450 450 5,239 - - - (498) 4,741 680 - - 640 301 1,621 100 - (31) - - 69 21 1 (10) - 6 18
	7,280 1 (191) 640 409 8,139 (487) - 62 (561) - (986) 7,204 5,531 (6,414) (607) 28 5,742
	13,997 5,532 (6,543) (528) 437 12,895

Purposes of endowment funds

The income of the Cyril Edwards Trust is available to be used in any field where the charity operates.

The income of the Jane Mursell Trust is available to be used for women’s work within the charity.

The income of the Joy Bushon Sircar Trust is to be used to benefit specific educational and church work in the Barisal area of Bangladesh. The Trust is invested in US dollar securities which have been converted into sterling at the rate ruling at 31 December 2023.

Purposes of restricted funds

The emergency relief fund represents funds received for relief and disaster response around the world primarily where the charity is involved. The health fund represents funds received for health projects the charity is involved in.

The restricted fixed assets reserve represents the value of properties which have been left to the charity with restricted use. The restricted revaluation reserve represents the cumulative revaluations of the investment properties with restricted use. Restricted property funds are held following the sale of property left to the charity with restricted use. Transfers to or from the funds reflect property transactions and depreciation.

The India fund represents the net value of assets owned in India by BMS India.

Purposes of designated funds

The Covid impact fund represents the anticipated longer term impact of Covid and the UK economic environment to allow BMS to continue to absorb an anticipated downturn in income.

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

The strategy implementation represents the cost of implementing the strategy.

The historic partner support fund represents support to historic partners.

The defined benefit pension deficit contributions represents amounts set aside to meet pension deficit contributions as they fall due.

The contingency fund represents amounts set aside from reserves to meet any shortfall in budgeted donations income.

The fixed assets reserve represents the amount set aside equivalent to the net book value of property and equipment used by the charity and purchased from unrestricted funds. The transfer from the fixed assets reserve is to the general fund to bring the reserve into line with the value of the fixed assets at the year end.

The revaluation reserve is the amount set aside equivalent to the cumulative revaluations of the investment properties.

The Mission Innovation fund is used for innovative mission projects and will be used over the next two years.

The major repairs fund is to meet the costs of large repair projects and was used during the year on Wallis House.

The Carbon offset fund represents funds set aside for creation stewardship projects.

63

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

10 Employees and Trustee Directors

The costs of mission personnel and other employees of the charity during the year were as follows:

Allowances and salaries Pension contributions National Insurance contributions Relocation payments Average number of employees Mission personnel Other employees	2023 2022 £'000 £'000 2,780 2,687 293 293 177 176 2 4
	3,252 3,160
	48 56 58 55
	106 111

Included in the above employee costs are redundancy costs of £37,098 (2022: £15,417). Redundancy costs are provided for when they are estimable and settlement is probable within 12 months. At the balance sheet date there were redundancy costs of £3,186 (2022: £nil) awaiting payment.

Employees and trustees

The following number of employees received employee benefits (excluding employer pension costs and employer's national insurance) during the year between:

during the year between:
	2023	2022
	Number	Number
£70,001-£80,000	1	1
£60,001-£70,000	1	0

The total amount of employee benefits, including employer’s pension contributions, received by key management personnel for their services during the year was £448,391 (2022: £471,254).

Trustees

No emoluments were paid to the Trustee Directors, with the exception of the General Director, Dr Kang-San Tan, who was employed by the charity and was remunerated on the same basis as other employees but received no remuneration for his duties as a Trustee Director. The Memorandum and Articles of Association make particular provision for the General Director to be an employee of the charity. Dr Tan’s emoluments as General Director were £76,079 (2022: £73,154). Dr Tan was also reimbursed for all necessary expenses incurred in carrying out his duties as an employee of the charity, a total of £9,233 (2022: £7,199). Dr Tan is a member of the charity’s pension scheme and contributions totalling £6,676 (2022: £6,676) were paid by the charity during the year.

During the year a total of £1,499 (2022: £4,234) was reimbursed to 6 Trustee Directors (2022: 12) in respect of committee expenses.

During the year donations totalling £4,618 (2022: £6,630) were received from Trustees including a restricted donation of £38 for Hope for the World from Ms Ruth Elliot (2022: £1,000 for Help for the Journey from Dr Kang-San Tan). The remaining trustee donations were unrestricted.

64

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

11a Group Tangible Assets

Cost 01 January 2023 Additions Currency re-translation Disposals Transfer to Investment Properties Sunday, 31 December 2023 Depreciation 01 January 2023 Charge for year Disposals Transfer to Investment Properties 31 December 2023 Net book value Sunday, 31 December 2023 31 December 2022	Land and buildings Furniture and equipment Motor vehicles Total £'000 £'000 £'000 £'000 7,776 705 91 8,572 - 25 - 25 (13) (3) - (16) - (40) (2) (42) - - - - 7,763 687 89 8,539 2,659 515 83 3,257 182 48 1 231 - (40) (2) (42) - - - - 2,841 523 82 3,446 4,922 164 7 5,093 5,117 190 8 5,315
11b Charity Tangible Assets
Cost 01 January 2023 Additions Disposals 31 December 2023 Depreciation 01 January 2023 Charge for year Disposals 31 December 2023 Net book value 31 December 2023 31 December 2022	Land and buildings Furniture and equipment Motor vehicles Total £'000 £'000 £'000 £'000 7,481 631 70 8,182 - 25 - 25 - (40) - (40) 7,481 616 70 8,167 2,582 475 70 3,127 173 47 - 220 - (40) - (40) 2,755 482 70 3,307 4,726 134 - 4,860 4,899 156 - 5,055

Furniture and Equipment contains computers, furniture and equipment, motor vehicles used overseas, solar panels and property improvements.

65

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

12 Investments held by group and charity
Analysis of movements in the year Market value at 1 January Add acquisitions at cost Less proceeds of disposal Net gains/(losses) for the year Market value at 31 December Analysis of investments held at 31 December Joint Venture Baptist House Limited Pooled Fund Non-UK listed investments: Indirect investments	2023 2022 £'000 £'000 6,720 7,667 - - - - 624 (947) 7,344 6,720 7,344 6,720 126 126 6,764 6,149 454 445 7,344 6,720

The investment portfolio is held in the COIF Charities Ethical Investment Fund, managed by CCLA.

13 Investment Properties held by group and charity
Analysis of movements in the year Fair value at 1 January (restated) Additions from tangible fixed assets Disposals Revaluation (losses)/gains Fair value at 31 December	2023 2022 £'000 £'000 1,774 775 - 301 - - (44) 698 1,730 1,774

14 Debtors
Trade debtors Other debtors Prepayments Accrued income	2023 2022 2023 2022 £'000 £'000 £'000 £'000 37 16 37 16 116 141 100 121 31 40 31 40 1,640 1,244 1,634 1,244 1,824 1,441 1,802 1,421 Charity Group

66

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

15 Creditors: amounts falling due within one year

Loans Trade creditors Taxation and Social Security Other creditors Accruals Grants payable	2023 2022 2023 2022 £'000 £'000 £'000 £'000 2 2 2 2 175 215 175 215 55 52 55 52 46 34 16 6 83 65 82 65 1,488 1,668 1,488 1,668 Charity Group
	1,849 2,036 1,818 2,008

Grants payable represents grants committed for 2024 before the end of the 2023 financial year.

16a Analysis of group net assets between funds (current year)

Tangible fixed assets Investments Investment properties Current assets Current liabilities Pension Fund	Unrestricted Funds Designated Funds Restricted Funds Endowment Funds Total 2023 Total 2022 £'000 £'000 £'000 £'000 £'000 £'000 - 4,552 541 - 5,093 5,315 4,588 - 206 2,550 7,344 6,720 - 1,575 155 - 1,730 1,774 1,595 1,240 1,198 - 4,033 6,389 (1,818) - (31) - (1,849) (2,036) - - - - - (986)
	4,365 7,367 2,069 2,550 16,351 17,176
16b Analysis ofgroup net assets	between funds(prioryear)
Tangible fixed assets Investments Investment properties Current assets Current liabilities Pension Fund	Unrestricted Funds Designated Funds Restricted Funds Endowment Funds Total 2022 Total 2021 £'000 £'000 £'000 £'000 £'000 £'000 - 4,741 574 - 5,315 5,831 4,188 - 189 2,343 6,720 7,667 - 1,621 153 - 1,774 775 3,562 1,777 1,050 - 6,389 6,160 (2,008) - (28) - (2,036) (1,909) (986) - - - (986) (487)
	4,756 8,139 1,938 2,343 17,176 18,037

67

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

17 Defined benefit arrangements

The Scheme is a registered scheme under UK legislation and is subject to the scheme funding requirements. The Scheme was established from 7 April 1962 under trust and is governed by the Scheme’s trust deed and rules dated 16 October 2006, and supplemental trust deed dated 12 February 2015. The Trustees are responsible for the operation and the governance of the Scheme, including making decisions regarding the Scheme’s funding and investment strategy in conjunction with the Charity.

The Scheme provides pension benefits which are related to the members’ salary upon the closure of the Scheme to future accrual (or upon leaving if earlier) and their length of service.

The Scheme exposes the Charity to actuarial risks such as; market (investment) risk, interest rate risk, inflation risk currency risk and longevity risk. The Scheme does not expose the Company to any unusual Scheme-specific or Company-specific risks.

The most recent formal actuarial valuation of the Scheme was as at 31 December 2021.

The liabilities at the reporting date have been calculated by updating the results of the formal actuarial valuation of the Scheme for the assumptions as detailed in these disclosures. Allowance has been made for expected mortality over the period, as well as actual movement in financial conditions since the valuation date.

Such an approach is normal for the purposes of accounting disclosures. It is not expected that these projections will be materially different from a summation of individual calculations at the accounting date, although there may be some discrepancy between the actual liabilities for the Scheme at the accounting date and those included in the disclosures.

The valuation as at 31 December 2021 revealed a surplus and so no Recovery Plan was required. In accordance with the Schedule of Contributions dated 25 July 2022, the Baptist Missionary Society will continue to pay £150,000 a year towards the expected cost of the expenses of running the Scheme. The contributions paid by the Charity are reviewed every three years as part of each formal actuarial valuation. The Scheme’s next actuarial valuation is due at 31 December 2024.

The liabilities of the Scheme are based on the current value of expected benefit payment cashflows to members approximately over the next 60 years. The average duration of the liabilities is approximately 13 years.

The Scheme’s investment strategy is to invest broadly 60% in matching assets (LDI and Bonds) and 40% in return seeking assets (Multi Strategy Credit, Sterling and secure income). This strategy reflects the Scheme’s liability profile and the Trustees’ and Charity’s attitude to risk.

The Scheme does not hold any ordinary shares issued or property occupied by the Company.

The Board of Trustees’ investment strategy includes investing in liability driven investment, the value of which will increase with decreases in interest rates and will move with inflation expectations.

Over the year, the Scheme has increased its level of hedging against interest and inflation risk from around 65% of to 90% of the liabilities on the technical provisions basis from the 2021 valuation.

The growth assets held are expected to provide protection over inflation in the long term. Note that the Scheme hedges interest rate risk on a statutory and long-term funding basis (gilts) whereas AA corporate bonds are implicit in the FRS102 discount rate and so there is some mismatching risks to the Charity should yields on gilts and corporate bonds diverge.

The Scheme’s exposure to corporate bonds mitigates this risk to some extent.

The Scheme does not directly hold any financial derivatives but invests in funds which hold the derivatives required to hedge the Scheme’s interest rate and inflation. The main risks associated with financial derivatives include: losses may exceed the initial margin, counterparty risk, and liquidity risk. These risks are managed by the monitoring of investment managers to ensure they have reasonable levels of market exposure relative to initial margin and positions are fully collateralised on a daily basis with secure cash of gilts collateral.”

68

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

A full actuarial valuation of the Scheme was carried out as at 31 December 2021 and has been updated to 31 December 2023 by a qualified independent actuary.

The amounts recognised in the statement of financial position are as follows:

The amounts recognised in the statement of financial position are as follows:
Defined benefit obligation Fair value of plan assets Net defined benefit (liability)/asset Restriction on asset recognised Net amount recognised at year end (before any adjustment for deferred tax)	2023 2022 £'000 £'000 (22,493) (22,346) 22,658 21,360
	165 (986) (165) -
	- (986)

The amounts recognised in comprehensive income are:

The current and past service costs, settlements and curtailments, together with the net interest expense for the year are included in profit or loss. Remeasurements of the net defined benefit liability are included in other comprehensive income.

	2023	2022
	£'000	£'000
Service cost:
Current service cost (net of employee contributions)	-	-
Administration Expenses	281	230
Loss/(gain) on plan introductions, changes, curtailments and settlements	-	-
Net interest expense/(credit)	5	8
Charge/(credit) recognised in profit or loss	286	238
Remeasurements of the net liability:
Return on scheme assets (excluding amount included in net interest expense)	390	14,974
Actuarial (gains)/losses	245	(14,413)
Adjustment for restrictions on the asset recognised	165	-
Charge/(credit) recorded in other comprehensive income	800	561
Total defined benefit cost/(credit)	1,086	799

69

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

Principal Actuarial Assumptions Liability Discount rate Pre 6 April 2006 benefits (RPI max 5%) Pre 6 April 2006 benefits (CPI max 5%) Proportion of Employees commuting pension for cash Assumed life expectancies on retirement at age 65 are: Expected age at death of future pensioner at age 65: Reconciliation of scheme assets and liabilities At start of period Benefits paid The return on Scheme assets was: Interest income Female aged 45 at year end Total return on Scheme assets Pension increases: Fair value of scheme assets Actuarial gains/(losses) Gain/(loss) on plan introductions and changes Assets distributed/liabilities extinguished on settlements Assets acquired/liabilities assumed in a business combination Return on plan assets (excluding amount included in net interest expense) Gain/(loss) on curtailments Contributions from employer Contributions from employees Interest income/(expense) Return on assets (excluding amount included in net interest expense) Administration expenses Current service cost Male aged 45 at year end Rate of increase in salaries Female aged 65 at year end Inflation assumption (CPI) Inflation assumption (RPI) Pre 6 April 2006 benefits (greater of RPI/CPI max 5%) Male aged 65 at year end Revaluation of deferred pensions Revaluation of deferred pensions (after 2030) Pre 6 April 2006 benefits (greater of RPI/CPI max 2.5%)	2023 2022 4.55% 4.85% 3.15% 3.25% 2.55% 2.65% 2.55% 2.65% 2.55% 2.65% 2.55% 2.65% 3.05% 3.15% 2.55% 2.60% 3.05% 3.15% 2.15% 2.20% 0% of max on current terms 0% of max on current terms 2023 2022 85.1 85.3 88.1 88.6 86.0 86.2 89.3 89.7 Assets Liabilities Total £'000 £'000 £'000 21,360 (22,346) (986) (1,154) 1,154 - (281) - (281) - - - 2,072 - 2,072 - - - 1,051 (1,056) (5) (390) - (390) - (245) (245) - - - - - - - - - - - -
	22,658 (22,493) 165
	2023 2022 £'000 £'000 1,051 670 (390) (14,974) 661 (14,304)

70

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

The major categories of scheme assets are as follows:

The major categories of scheme assets are as follows:
Bonds Total market value of assets Estimation of next period's profit or loss Net interest on the net defined liability Total expense Liability Driven Investment Multi Strategy Credit Fund ICS Sterling Liquid Environmentally Aware Fund (LEAF) Strategic Alternative Income Fund (SAIF) Cash and net current assets Service cost - inc. current & past service costs, settlements Service cost - administrative cost	2023 2022 £'000 £'000 2,623 4,284 19 335 6,775 5,987 7,346 4,925 2,454 4,872 3,440 957 22,657 21,360 2024 £'000 - 281 - 281
18 Post Balance Sheet event

On 24 April 2024 and 9 May 2024, the charity completed the sale of two properties respectively which included in Fixed Assets at the Balance Sheet date at net book value of £476,000. The sales proceeds after costs were £1,343,000.

71

BMS World Mission

BMS World Mission, PO Box 49, 129 Broadway, Didcot, OX11 8XA

01235 517700

www.bmsworldmission.org

Follow us @BMSWorldMission

The Baptist Missionary Society: registered in England and Wales as a charity (number 1174364) and a company limited by guarantee (number 10849689) All images © BMS World Mission