## **THE BROMLEY CHRISTIAN WORKERS TRUST**
**(Registered Charity Number 1183501)**
**FINANCIAL STATEMENTS FOR THE YEAR ENDED**
**31 DECEMBER 2020**
## **THE BROMLEY CHRISTIAN WORKERS TRUST**
## **CHARITY INFORMATION**
## **FOR THE YEAR ENDED 31 DECEMBER 2020**
|**Trustees**|Iain Broomfield (Chair)|
|---|---|
||Andrew Nathan|
||Toby Reid (resigned 1 February 2021)|
||Kim Arnold|
||Elizabeth Coke|
||James Walsh|
|**Treasurer**|Thomas Feather|
|**Secretary**|Adam Holland|
|**Key Staff**|Nick Batt|
||Matt Lloyd|
|**Governing Document**|Constitution dated 8 May 2019|
|**Charity Registration Number**|1183501|
|**Address for Correspondence**|Highland Road|
||Bromley|
||Kent|
||BR1 4AA|
|**Independent Examiner**|Ajay Rajani FCIE|
||Stewardship|
||1 Lamb's Passage|
||London|
||EC1Y 8AB|
|**Bankers**|HSBC|
|**Contents**|**Page**|
|---|---|
|Charity Information|1|
|Trustees' Annual Report|2-4|
|Independent Examiner's Report|5|
|Statement of Financial Activities|6|
|Balance Sheet|7|
|Notes to the Accounts|8-16|
|Detailed Statement of Financial Activities with Comparatives|17|
Page 1
**THE BROMLEY CHRISTIAN WORKERS TRUST TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2020**
The Trustees present their report and the accounts of The Bromley Christian Workers Trust (’the Charity’) for the financial year ended 31 December 2020.
## **INTRODUCTION**
The Charity is a charitable incorporation organisation (‘CIO’) governed by a constitution dated 8 May 2019; the CIO’s registered number is 1183501. The CIO did not undertake any transactions before 24 January 2020 and did not have any assets or liabilities prior to that date. On 24 January 2020 a trust with the same name (The Bromley Christian Workers Trust with charity registered number 1080688 – ‘the Trust’) transferred its net assets and activities to the CIO. The Trust has not operated since 24 January 2020 and steps are being take to wind up the Trust.
The accompanying financial statements have been prepared using the provisions of merger accounting. This year’s results comprise the transactions of the Trust in the period to 24 January 2020 and the transactions of the CIO for the remainder of the year. The results of the Trust are presented as comparatives throughout the accounts.
Christ Church Bromley (‘CCB’) has the power to appoint the Trustees of the Trust and thus the Trust is considered to be a subsidiary of CCB. CCB does not have the power to appoint the Trustees of the CIO and the CIO is not considered to be a subsidiary of CCB. CCB and the CIO continue to have several common Trustees and share the same treasurer. The two charities work closely with each other to further their respective charitable objects; most notably they co-operate with each other to provide Christian biblical and pastoral teaching and training. From time to time the CIO and CCB make grants to each other to support their respective activities. The financial transactions with CCB are disclosed in the notes to the financial statements.
## **CHARITABLE OBJECTS**
The charitable objects of the Charity are:
- to promote and provide Christian biblical and pastoral teaching and training in accordance with the Statement of Faith; and
- to advance the Christian religion in any part of the world.
## **PUBLIC BENEFIT STATEMENT**
The Trustees confirm that they have complied with the duty to have due regard to the public benefit guidance published by the Charity Commission in determining the activities undertaken by the Charity.
## **REVIEW OF ACTIVITIES**
## **Ministry Training Associates Programme**
The BCWT Ministry Training Associates (MTAs) scheme enables volunteers to learn and practice bible ministry, gain formal training with other Associates and undertake practical service within a church (namely CCB) under the supervision of an experienced bible teacher and leader. The future development and growth of the Ministry Training Associate scheme remains reliant on the support of donors (many of whom are members of CCB).
## **Staff Appointments**
Howard Moore (previously an MTA) was appointed as an assistant minister to oversee midweek small groups and ministry amongst the over-60s. Jack Stileman remained as an MTA for the remainder of the year and has subsequently been appointed as an assistant minister to help equip the members of CCB for Evangelism and to assist with youth work. Emily Grieg was appointed as Associate for Women’s Ministry during Summer 2020 to start work in January 2021.
- 2 -
**THE BROMLEY CHRISTIAN WORKERS TRUST TRUSTEES’ ANNUAL REPORT (Continued) FOR THE YEAR ENDED 31 DECEMBER 2020**
## **REVIEW OF ACTIVITIES continued**
## **Supporting Christ Church Bromley**
CCB has a vision, which is “making Jesus known”, and the charity’s staff are working with CCB to help fulfil this vision. In addition to the above, the charity employed two other Associate Ministers with responsibilities for Evangelism and Discipleship. The latter being Ed Rowett who left at the end of August 2020 to take up full-time theological training at Oak Hill College. The ministry support team is led by an Operations Director who oversees an Administrator and Site Manager.
## **Summer Camps**
The BCWT continued to provide a freelance Coordinator to provide administrative support to the summer camps run (previously) at Oswestry. These camps exist to provide teenagers with fun, friendship and a chance to explore life with Jesus. The camps were not able to run as normal in 2020 due to COVID-19, but online virtual camps were pioneered in their place. The camps are relocating to Gatton Park in 2021 and will be known as ‘Lakeview’. The charity operates a restricted fund which receives donations from individual donors and grant-making trusts. The camps themselves are organised through Ventures, part of the ministry of CPAS.
## **COVID-19**
By God’s providence, the overall impact of COVID-19 on finances in 2020 was marginal. The vast majority of BCWT expenditure is on staff salaries and no staff members were furloughed so expenditure remained roughly as expected. Staff largely continued in their normal roles but adapted to work from home during periods when recommended to do so.
## **FINANCIAL REVIEW**
As explained in the introduction, the Charity co-operates with Christ Church Bromley to further shared charitable objectives and, from time to time, they make grants to each other to support their respective activities.
During the year income fell by £378,000 to £224,000. The previous year’s income included a large grant of £364,000 from CCB and, if this excluded, the accounts show that underlying income has fallen by a more modest £13,000. Expenditure fell by £15,000 to £278,000; expenditure this year included a grant of £7,500 paid to CCB.
After an actuarial pension loss of £1,000 (2019: a gain of £10,000), the Charity has reported a deficit of £55,000. In 2019 the Charity reported a gain of £319,000 (or a deficit of £46,000 without the large grant from CCB).
The Charity ended the year with net assets of £603,000 (2019: £658,000). The Charity’s principal assets were tangible fixed assets (principally a property) with a carrying value of £381,000 (2019: £390,000) and cash of £234,000 (2019: £234,000), of which £7,000 (2019: £3,000) is restricted.
## **RESERVES POLICY**
The Trustees recognise the need to hold free reserves (which the Trustees define as being unrestricted cash) to allow protection of all core activities in the event of income shortfalls and to promote balanced strategic planning. The Trustees aim to hold free reserves equal to three months’ operating costs. For 2020 the benchmark would be £70,000. Free reserves at the end of 2020 stood at £227,000 (2019: £274,000); the excess above £70,000 is being held to fund the expansion of activities and to help provide accommodation to staff who may join the Charity.
## **RISK ASSESSMENT**
In common with other charities, BCWT faces risks: operational, financial and reputational. The Trustees have considered the major areas of risk to which the Charity is exposed, measuring both the likelihood and the impact of a particular event or action, and are satisfied that systems have been established to identify and mitigate exposure to the major risks.
- 3 -
**THE BROMLEY CHRISTIAN WORKERS TRUST TRUSTEES’ ANNUAL REPORT (Continued) FOR THE YEAR ENDED 31 DECEMBER 2020**
## **STATEMENT OF TRUSTEE RESPONSIBILITIES**
The Trustees are responsible for preparing the Trustees' annual report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Charity law requires the Trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the Charity as at the balance sheet date and of its incoming resources and application of resources for the financial year. In preparing these financial statements the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue to operate.
The Trustees are responsible for keeping proper accounting records that 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 Charities Act 2011 and the Charity (Accounts and Reports) Regulations 2008. 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.
Approved by the Trustees and signed on its behalf by
Andrew Nathan Vice Chair
Date: 9 May 2021
- 4 -
## **INDEPENDENT EXAMINER'S REPORT**
## **TO THE TRUSTEES OF**
## **THE BROMLEY CHRISTIAN WORKERS TRUST ('the Charity')**
I report to the charity trustees on my examination of the accounts of the Charity for the year ended 31 December 2020 on pages 6 to 17 following, which have been prepared on the basis of the accounting policies set out on pages 8 to 10.
## **Responsibilities and basis of report**
As the charity’s trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act').
I report in respect of my examination of the Charity’s accounts carried out under section 145 of the Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
## **Independent examiner’s statement**
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
1. accounting records were not kept in respect of the Charity as required by section 130 of the Act; or
2. the accounts do not accord with those records; or
3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair' view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Ajay Rajani FCIE Stewardship 1 Lamb's Passage London EC1Y 8AB
10 May 2021
Page 5
## **THE BROMLEY CHRISTIAN WORKERS TRUST**
## **STATEMENT OF FINANCIAL ACTIVITIES**
## **FOR THE YEAR ENDED 31 DECEMBER 2020**
|Note
**INCOME AND ENDOWMENTS FROM:**
Donations and legacies
3
**Total income and endowments**
**EXPENDITURE ON:**
Charitable activities
4
**Total expenditure**
**Net income/(expenditure)**
**Transfers between funds**
11
**Other recognised gains/(losses):**
Actuarial gains/(losses) on defined
benefit pension schemes
10
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
**Total funds carried forward**
11|Unrestricted
Funds
£
216,265
216,265
274,258
274,258
(57,993)
-
(57,993)
(1,000)
(58,993)
654,780
595,787|Restricted
Funds
£
8,177
8,177
4,195
4,195
3,982
-
3,982
-
3,982
3,075
7,057|Total
Funds
2020
£
224,442
224,442
278,453
278,453
(54,011)
-
(54,011)
(1,000)
(55,011)
657,855
602,844|Total
Funds
2019
£
602,008|
|---|---|---|---|---|
|||||602,008|
|||||293,393|
|||||293,393|
||||||
|||||308,615
-|
|||||308,615
10,000|
|||||318,615
339,240|
|||||657,855|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing operations.
The notes on page 8-17 form part of these accounts.
Page 6
## **THE BROMLEY CHRISTIAN WORKERS TRUST**
## **BALANCE SHEET**
## **AS AT 31 DECMEBER 2020**
|Note
**FIXED ASSETS**
Tangible assets
6
**CURRENT ASSETS**
Debtors
7
Cash at bank and in hand
8
**CREDITORS: Amounts falling**
**due within one year**
9
**Net current assets / (liabilities)**
**Total assets less current liabilities**
**Defined benefit scheme asset / (liability)**
10
**TOTAL NET ASSETS**
**FUND BALANCES**
11
Unrestricted Funds
Restricted Funds|Unrestricted
Funds
£
381,241
6,340
227,046
233,386
(14,840)
218,546
599,787
(4,000)
595,787
595,787
-
595,787|Restricted
Funds
£
-
-
7,057
7,057
-
7,057
7,057
-
7,057
-
7,057
7,057|Total
Funds
2020
£
381,241
6,340
234,103
240,443
(14,840)
225,603
606,844
(4,000)
602,844
595,787
7,057
602,844|Total
Funds
2019
£
390,004|
|---|---|---|---|---|
|||||8,469
277,394|
|||||285,863
(12,012)|
|||||273,851|
||||||
|||||663,856
(6,000)|
|||||657,856|
|||||654,780
3,075|
|||||657,855|
The financial statements were approved by the Board of Trustees and were signed on its behalf by:
Andrew Nathan (Vice Chair)
Date: 9 May 2021
Charity number: 1183501
The notes on page 8-17 form part of these accounts.
Page 7
## **THE BROMLEY CHRISTIAN WORKERS TRUST**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 DECEMBER 2020**
## **1 Statutory Information**
The charity is a charitable incorporated organisation registered with the Charity Commission in England & Wales. The charity's registered number and principal address can be found on the Charity Information page.
## **2 Accounting Policies**
These financial statements are prepared under the historical cost convention.
These financial statements have been prepared in accordance with the "Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) ("the Charities SORP"), with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland ("FRS 102") and with the Charities Act 2011. The charity meets the definition of a public benefit entity as set out in FRS 102.
The Charities (Accounts and Reports) Regulations 2008 (the '2008 Regulations') requires charities to prepare their accounts in accordance with 'Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005' but this accounting standard has since been withdrawn and has been replaced by the Charities SORP mentioned in the preceding paragraph. The charity has prepared these financial statements in accordance with the new Charities SORP; this departure from the 2008 Regulations is believed to be necessary for these financial statements to give a 'true and fair view'.
The principles adopted in the preparation of the financial statements are set out below.
## a) Change of legal structure
The charity (the 'CIO') was dormant until 24 January 2020 and, until that date, the CIO's activities were undertaken by a trust with the same name (The Bromley Christian Workers Trust with charity registration number 1080688). On 24 January 2020 the trust transferred its net assets and its activities to the CIO. As permitted by the Charities SORP, this transfer has been accounted for as a merger because it qualifies as a charity reconstruction (whereby the charity has simply changed its legal form). In accordance with the requirements of merger accounting, the net assets of the trust were transferred at book value , not fair value, to the CIO. These financial statements present the combined results of the trust and the CIO for the year ended 31 December 2020 and the comparatives are the results of the trust for the year ended 31 December 2019. More information about the merger is given in note 14 'Use of merger accounting'.
## b) Going concern
The trustees have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the charity to continue as a going concern. The trustees have made this assessment for a period of at least one year from the date of approval of the financial statements. In particular the trustees have considered the charity's forecasts and projections and the possible implications should projected income and / or expenditure vary unexpectedly. The trustees have concluded that there is a reasonable expectation that the charity has adequate resources to continue to operate for the foreseeable future. The charity therefore continues to adopt the going concern basis in preparing its financial statements. In making this assessment the trustees have considered how Covid-19 might affect projections.
## c) Income
Income including investment income is recognised in the period in which the charity becomes entitled to receipt, the amount receivable can be measured with reasonable certainty, and receipt is probable. For the most part, income is generally recognised when it is received. Income is only deferred when the charity has to fulfil conditions before becoming entitled to it or where the donor has specified that the income is to be expended in a future period.
Income from donations and legacies includes:
- i) Recoverable gift aid. This is recognised when the related donation is received. Gift aid that has not been recovered by the balance sheet date is included as a debtor.
- ii) Donated facilities, which are recognised at their value to the charity when they are received. With respect to these donated facilities, an expense is charged to the Statement of Financial Activities as they are used.
The charity relies on volunteers to carry out many of its activities. However, in accordance with the SORP, the value of these services has not been included in these financial statements as they cannot be reliably measured.
Page 8
## **THE BROMLEY CHRISTIAN WORKERS TRUST**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 DECEMBER 2020**
## **2 Accounting Policies continued**
## d) Expenditure
Expenditure, including irrecoverable VAT, is recognised when it is incurred or, if earlier, when a legal or constructive obligation for a payment arises provided that it is probable that settlement will be required and the amount of the obligation can be measured reliably.
The charity sometimes makes grants to other institutions and individuals to further its charitable objectives. Grants payable are recognised as constructive obligations arise, which is generally when the charity expresses a commitment to the recipient that can be measured reliably and then only to the extent that any conditions associated with the grant are outside of the control of the charity.
Governance costs, which are included in expenditure on charitable activities but are identified separately in the notes to the accounts, includes costs associated with the independent examination of the financial statements, compliance with constitutional and statutory requirements and any other expenditure incurred on the strategic management of the charity.
## e) Fund accounting
Unrestricted funds are funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity. Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. Restricted funds are donations which are to be used in accordance with specific restrictions imposed by donors; they include donations received from appeals for specific activities or projects.
## f) Tangible fixed assets
Items purchased or donated for the charity's own use are capitalised when the cost of purchased items, or the fair value of donated items, is more than £2,000 and the item is expected to benefit the charity over more than one accounting period. Depreciation is charged on a straight line basis so as to write down the value of each asset to its estimated residual value (if any) over its expected useful economic life. To achieve this objective the following rates of depreciation are charged:
Leasehold property Over the remaining term of the lease Equipment Over 3 to 7 years
The carrying values of tangible fixed assets are reviewed for impairment in periods when events or changes in circumstances indicate that the carrying value may not be recoverable.
## g) Leased assets
Leases which do not transfer substantially all the risks and rewards of ownership to the charity are classified as operating leases. Operating lease payments are recognised as an expense on a straight-line basis over the lease term (unless another systematic basis is more representative of use).
## h) Pension scheme arrangements
The charity operates defined contribution pension schemes for its employees. Obligations for contributions to these schemes are recognised as an expense when the liability arises. The assets of these schemes are held separately from those of the charity in independently administered funds.
The charity also contributes to the Church of England Funded Pension Scheme, which is a multi-employer defined benefit pension scheme. The charity is unable to identify its share of this scheme's assets and liabilities therefore, as permitted by FRS 102, it is being treated as if it were a defined contribution scheme. The last actuarial valuation indicated that the obligation to provide defined benefits gives rise to a funding deficit and the charity, along with other participating employers, must make additional contributions to remedy the deficit. The obligation to make deficit reduction contributions in future years has been included as a liability in these financial statements. Further information about this defined benefits scheme, and the charity's obligation to contribute towards its funding deficit, is disclosed elsewhere in the notes to these accounts.
## i) Taxation
The charity has taken advantage of the various reliefs from taxation available to charities and no tax is payable on the charity's income.
Page 9
## **THE BROMLEY CHRISTIAN WORKERS TRUST**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 DECEMBER 2020**
## **2 Accounting Policies continued**
## j) Financial instruments
The charity's financial assets and financial liabilities all qualify as basic financial instruments, as defined by FRS102. Creditors and debtors are measured at their expected settlement value (normally the amount of cash that the charity expects to pay or receive).
## k) Critical accounting estimates and areas of judgement
ln preparing financial statements certain judgements, estimates and assumptions have to be made that affect the amounts recognised in the financial statements. The annual depreciation charge for property, plant and equipment is sensitive to changes in the estimates for useful economic life and residual value. These estimates are reassessed annually and, when necessary, adjusted to reflect current circumstances.
## **3 Donations and legacies**
|**ations and legacies**|||
|---|---|---|
|Donations of cash and similar
Grants from Christ Church Bromley
Donated facilities (see below)
Income tax recoverable|2020
£
187,571
-
5,400
31,471
224,442|2019
£
196,342
364,208
7,500
33,958|
|||602,008|
During the year, a supporter let a property to the charity for use by its staff at less than market rent; the value of this donation to the charity is estimated to be £5,400 (2019: £7,500). A charge for rent equal to this donation is included in the rent disclosed in note 4(a) below.
|**4**
**Charitable expenditure**
**a**
**Costs incurred directly on specific activities**
Ministry staff costs
Training
Rent
Other property costs
Depreciation
Mission grants payable to Christ Church Bromley
Mission grants payable to individuals
**b**
**Costs incurred on support & administration**
Governance costs
Independent examiner's fee for preparing and examining the accounts
Legal and professional fees
Other administrative expenses
**Total expenditure**|2020
£
199,571
13,380
19,702
7,502
8,763
7,500
14,500
270,918
2,640
1,729
4,369
3,166
7,535
278,453|2019
£
227,557
17,969
18,000
7,232
10,961
-
9,334|
|---|---|---|
|||291,053|
|||2,340
-|
|||2,340
-|
|||2,340|
|||293,392|
Page 10
## **THE BROMLEY CHRISTIAN WORKERS TRUST**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 DECEMBER 2020**
## **5 Analysis of staff costs, the cost of key management personnel and trustee remuneration and expenses**
|Gross wages and salaries
Social security
Pension costs
Defined benefit schemes
Defined contribution schemes|2020
£
166,968
12,353
6,760
9,295
195,376|2019
£
187,563
14,598
6,567
10,778|
|---|---|---|
|||219,507|
The average monthly number of employees during the year was 6 (2019: 7). Most of the charity's activities are carried out by volunteers.
No staff received salaries at a rate of more than £60,000 per annum.
The charity's key management comprise the trustees and the key staff named on the Charity Information page. During the year key management received employment benefits totalling £59,154 (2019: £60,065).
In addition the charity made the following payments in respect of the customary provision of accommodation to members of key management (who both serve as ministers) so that they could better perform their duties:
|Matt Lloyd
Nick Batt (including rent)|2020
£
1,704
14,584
16,288|2019
£
1,625
12,410|
|---|---|---|
|||14,035|
No trustees received employment benefits in either the current or preceding year.
## **6 Tangible fixed assets**
|**Tangible fixed assets**||||
|---|---|---|---|
|Cost
At 1 January 2020
Additions
At 31 December 2020
Accumulated depreciation
At 1 January 2020
Charge for the year
At 31 December 2020
Net book value
At 31 December 2020
At 31 December 2019|Leasehold
Property
£
377,220
-
377,220
37,720
2,853
40,573
336,647
339,500|Equipment
£
54,497
-
54,497
3,993
5,910
9,903
44,594
50,504|Total
2020
£
431,717
-|
||||431,717|
||||41,713
8,763|
||||50,476|
||||381,241|
||||390,004|
Christ Church Bromley uses, free of charge, the equipment owned by the charity.
## **7 Debtors**
|Gift aid tax recoverable
Other debtors|2020
£
4,955
1,385
6,340|2019
£
8,469
-|
|---|---|---|
|||8,469|
Page 11
## **THE BROMLEY CHRISTIAN WORKERS TRUST**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 DECEMBER 2020**
## **8 Cash at Bank and in Hand**
|**8**
**Cash at Bank and in Hand**|||
|---|---|---|
|Cash at bank with immediate access
**9**
**Creditors: liabilities falling due within one year**
Accruals
Grant obligations|2020
£
234,103
2020
£
3,840
11,000
14,840|2019
£
277,394|
|||2019
£
2,678
9,334|
|||12,012|
- **10 Pension commitments**
## _**The Church of England Funded Pension Scheme**_
The charity participates in the Church of England Funded Pensions Scheme for stipendiary clergy. This scheme is administered by the Church of England Pensions Board, which holds the assets of the schemes separately from those of the Responsible Bodies.
Each participating Responsible Body in the scheme pays contributions at a common contribution rate applied to pensionable stipends.
The scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. This means it is not possible to attribute the Scheme’s assets and liabilities to each specific Responsible Body, and this means contributions are accounted for as if the Scheme were a defined contribution scheme. The pensions costs charged to the SoFA in the year are contributions payable towards benefits and expenses accrued in that year (2020: £6,760, 2019: £6,567), plus the figures highlighted in the table below as being recognised in the SoFA, giving a total charge of £7,760 for 2020 (2019: a credit of £3,433).
A valuation of the Scheme is carried out once every three years. The most recent Scheme valuation completed was carried out at as 31 December 2018. The 2018 valuation revealed a deficit of £50m, based on assets of £1,818m and a funding target of £1,868m , assessed using the following assumptions:
· An average discount rate of 3.2% p.a.;
· RPI inflation of 3.4% p.a. (and pension increases consistent with this);
· Increase in pensionable stipends of 3.4% p.a.; · Mortality in accordance with 95% of the S3NA_VL tables, with allowance for improvements in mortality rates in line with the CMI2018 extended model with a long term annual rate of improvement of 1.5%, a smoothing parameter” of 7 and an initial addition to mortality improvements of 0.5% pa.
Following the 31 December 2018 valuation, a recovery plan was put in place until 31 December 2022 and the deficit recovery contributions (as a percentage of pensionable stipends) are as set out in the table below.
|% of pensionable stipends|January|January|
|---|---|---|
||2018 to|2021 to|
||December|December|
||2020|2022|
|Deficit repair contributions|11.90%|7.10%|
As at 31 December 2019 and 31 December 2020 the deficit recovery contributions under the recovery plan in force were as set out in the above table.
For senior office holders, pensionable stipends are adjusted in the calculations by a multiple, as set out in the Scheme’s rules.
Page 12
## **THE BROMLEY CHRISTIAN WORKERS TRUST**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 DECEMBER 2020**
## **10 Pension commitments continued**
Section 28.11A of FRS 102 requires agreed deficit recovery payments to be recognised as a liability. The movement in the balance sheet liability over 2019 and 2020 is set out in the table below.
|sheet liability over 2019 and 2020 is set out in the table below.||||
|---|---|---|---|
|||**2020 £**
6,000
(3,000)
-
1,000
**4,000**|**2019 £**|
|Balance sheet liability at 1 January
Deficit contribution paid
Interest cost (recognised in SoFA)
Balance sheet liabilityat 31 December
Remaining change to the balance sheet liability* (recognised in SoFA)|||19,000
(3,000)
-
(10,000)|
||||**6,000**|
* Comprises change in agreed deficit recovery plan, and change in discount rate and assumptions between year-ends.
This liability represents the present value of the deficit contributions agreed as at the accounting date and has been valued using the following assumptions set by reference to the duration of the deficit recovery payments:
||Dec-20|Dec-19|Dec-18|
|---|---|---|---|
|Discount rate|0.2% pa|1.1% pa|2.1% pa|
|Price inflation|3.1% pa|2.8% pa|3.1% pa|
|Increase to totalpensionablepayroll|1.6%pa|1.3%pa|1.6%pa|
The legal structure of the scheme is such that if another Responsible Body fails, the charity could become responsible for paying a share of that Responsible Body’s pension liabilities.
## **Summary of pension contributions payable for year:**
The charity's pension contributions were as follows
|Church of England Funded Pension Scheme (see above)
charged in respect of service in year
contributions towards funding deficit
Pension contributions to other defined contribution schemes
**Summary of pension liabilities at the year end:**
The charity's pension liabilities at the end of the year were as follows:
in respect of defined benefit pension arrangements (see above)
in respect of defined contribution pension arrangements|2020
£
6,760
3,000
9,760
9,295
19,055
2020
£
4,000
-
4,000|2019
£
6,567
3,000|
|---|---|---|
|||9,567
10,778|
|||20,345|
|||2019
£
6,000
-|
|||6,000|
Page 13
## **THE BROMLEY CHRISTIAN WORKERS TRUST**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 DECEMBER 2020**
## **11 Funds**
During the year the movements in the charity's funds were as follows:
||Opening|||Transfers|Gains and|Closing|
|---|---|---|---|---|---|---|
||balance|Income|Expenditure|in the year|losses|balance|
||2020|2020|2020|2020|2020|2020|
||£|£|£|£|£|£|
|_Restricted funds_|||||||
|Oswestry fund|3,075|8,177|(4,195)|-|-|7,057|
|Staff accommodation fund|-|5,400|(5,400)|-|-|-|
||3,075|13,577|(9,595)|-|-|7,057|
|_Unrestricted Funds_|654,780|216,265|(274,258)|-|(1,000)|595,787|
|Aggregate of funds|657,855|229,842|(283,853)|-|(1,000)|602,844|
## **Analysis of net assets by fund**
The assets and liabilities of the various funds were as follows:
|assets and liabilities of the various funds were as follows:||||
|---|---|---|---|
|Tangible fixed assets
Debtors
Cash at bank and in hand
Creditors falling due within one year
Defined benefit pension schemes liabilities|Unrestricted
funds
£
381,241
6,340
227,046
(14,840)
(4,000)
595,787|Restricted
funds
£
-
-
7,057
-
-
7,057|2020
£
381,241
6,340
234,103
(14,840)
(4,000)|
||||602,844|
In the previous year the movements in the charity's funds were as follows:
|_Restricted funds_
Equipment fund
Oswestry fund
Staff accommodation fund
_Unrestricted funds_
_Aggregate of funds_|Opening
balance
2019
£
-
2,982
-
2,982
336,258
339,240|Income
2019
£
49,886
7,944
7,500
65,330
536,678
602,008|Expenditure
2019
£
-
(7,851)
(7,500)
(15,351)
(278,042)
(293,393)|Transfers
in the year
2019
£
(49,886)
-
-
-
49,886
49,886|Gains and
losses
2019
£
-
-
-
-
10,000
10,000|Closing
balance
2019
£
-
3,075
-|
|---|---|---|---|---|---|---|
|||||||3,075
654,780|
|||||||657,855|
Page 14
## **THE BROMLEY CHRISTIAN WORKERS TRUST**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 DECEMBER 2020**
## **11 Funds continued**
## _**Analysis of net assets by fund**_
In the previous year, the assets and liabilities of the various funds were as follows:
|e previous year, the assets and liabilities of the various funds were as follows:||||
|---|---|---|---|
|Tangible fixed assets
Debtors
Cash at bank and in hand
Creditors falling due within one year
Defined benefit pension schemes liabilities|Unrestricted
funds
£
390,004
8,469
274,319
(12,012)
(6,000)
654,780|Restricted
funds
£
-
-
3,075
-
-
3,075|2019
£
390,004
8,469
277,394
(12,012)
(6,000)|
||||657,855|
The **Equipment** fund was created from grants received from Christ Church Bromley to help the charity purchase of audio visual equipment.
The **Oswestry** fund was created from donations received to help cover the administration costs incurred for Christian Summer camps.
The **Staff Accommodation** fund represents the donated facility referred to in note 3 above and the related charge for rent. The property was let to the charity at below market rent to help the charity provide accommodation to some of its staff.
## **12 Operating lease commitments**
The charity has operating leases for residential accommodation. The minimum amount payable in respect of these leases is as follows:
|Within one year
Between one and five years
Payments falling due:|2020
£
14,400
13,200
27,600|2019
£
1,050
-|
|---|---|---|
|||1,050|
During the year the charity was charged £13,800 (2019: £10,500) for its operating leases.
## **13 Transactions with related parties**
As mentioned elsewhere, The Bromley Christian Workers Trust ('BCWT') (registered charity number 1080688) transferred its net assets and its activities to a new charitable incorporated organisation (registered charity number 1183501) with the same name on 24 January 2020. The Trustees of Christ Church Bromley ('CCB') had the power to appoint the Trustees of the predecessor charity but do not have this same power in the successor charity. While the successor charity has some Trustees which are members of the PCC, they no longer have a controlling interest or the ability to influence how the BCWT operates in the event of a conflict of interest between the two charities. BCWT is therefore considered to be an independent party. BCWT and CCB make grants to each other and support their respective charitable activities in various ways. The financial transactions with CCB have been disclosed in the above notes.
During the year the charity received donations totalling £11,420 (2019: £19,718) from related parties (which includes Trustees, any other members of key management and anyone closely connected to them).
Except for the reimbursement of expenses incurred when acting as agent for the charity, no expenses (2019: £nil) were paid to, or for, the Trustees.
Except as disclosed in note 5 'Analysis of staff costs', there have been no other transactions with related parties during the year.
Page 15
## **THE BROMLEY CHRISTIAN WORKERS TRUST**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 DECEMBER 2020**
## **14 Use of merger accounting**
As explained in note 2(a) 'Change of legal structure', during the year a Trust (The Bromley Christian Workers Trust with charity registration number 1080688) transferred its net assets and its activities to this charity (the 'CIO') on 24 January 2020. The provisions of merger accounting have been used in the preparation of these financial statements. These financial statements present the combined results of the Trust and the CIO for the year ended 31 December 2020. The CIO did not undertake any transactions prior to 24 January 2020 and had no assets or liabilities before the transfer. The comparatives presented in these financial statements are the results of the Trust for the year ended 31 December 2019.
The year's results can be analysed as follows:
|year's results can be analysed as follows:|||||
|---|---|---|---|---|
|Total income
Total expenditure
Net income / expenditure
Other gains / (loses)
Net movement in funds|Trust
£
14,726
(15,897)
(1,171)
-
(1,171)
pre-merger|CIO
£
-
-
-
-
-
pre-merger|Combined
Charity
post-merger
£
209,716
(262,556)
(52,840)
(1,000)
(53,840)|Combined
total
£
224,442
(278,453)|
|||||(54,011)
(1,000)|
|||||(55,011)|
The aggregate carrying value of the net assets of the respective charities at the date of the merger, were as follows:
|Net assets
Represented by:
Unrestricted funds
Restricted funds|Trust
£
656,684
653,805
2,879
656,684|CIO
£
-
-
-
-|Combined
total
£
656,684|
|---|---|---|---|
||||653,805
2,879|
||||656,684|
Page 16
## **THE BROMLEY CHRISTIAN WORKERS TRUST**
## **DETAILED STATEMENT OF FINANCIAL ACTIVITIES WITH COMPARATIVES**
## **FOR THE YEAR ENDED 31 DECEMBER 2020**
|Note
**INCOME AND ENDOWMENTS FROM:**
Donations and legacies
3
**Total income and endowments**
**EXPENDITURE ON:**
Charitable activities:
4
**Total Expenditure**
**Net income/(expenditure)**
**Transfers between funds**
11
**Other recognised gains/(losses):**
10
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
**Total funds carried forward**
11
Actuarial gains/(losses) on defined benefit
pension schemes||Unrestricted
funds
2020
£
216,265
216,265
274,258
274,258
(57,993)
-
(57,993)
(1,000)
(58,993)
654,780
595,787|Restricted
2020
£
8,177
8,177
4,195
4,195
3,982
-
3,982
-
3,982
3,075
7,057|Total
2020
£
224,442
224,442
278,453
278,453
(54,011)
-
(54,011)
(1,000)
(55,011)
657,855
602,844|||Unrestricted
funds
2019
£
536,678
536,678
278,042
278,042
258,636
49,886
308,522
10,000
318,522
336,258
654,780|Restricted
2019
£
65,330
65,330
15,351
15,351
49,979
(49,886)
93
-
93
2,982
3,075|Total
2019
£
602,008
602,008
293,393
293,393
308,615
-
308,615
10,000
318,615
339,240
657,855|
|---|---|---|---|---|---|---|---|---|---|
Page 17