The Charity Registration Number is :- 1191792
## _**The Baptist Building Fund For Wales**_
_**Report and Accounts**_
_**31 December 2021**_
_**Cross & Bowen Chartered Accountants 11 Calvert Terrace Swansea SA1 6AT**_
## **The Baptist Building Fund For Wales**
## **Report and accounts for the year ended 31 December 2021**
## **Contents**
||**Page**||
|---|---|---|
|**Charity information**||1|
|**Trustees' Annual Report**||1|
|**Statement of directors' responsibilities**||5|
|**Accountants' report**||6|
|**_Funds Statements:-_**|||
|Statement of Financial Activities||7|
|Statement of total recognised gains and losses||8|
|Movements in funds||9|
|Income and Expenditure account||10|
|**Balance sheet**||11|
|**Cash flow statement**||12|
|**Notes to the accounts**||14|
## **The Baptist Building Fund For Wales**
## **Trustees' Annual Report for the year ended 31 December 2020**
The Trustees present their Report and Accounts for the year ended 31 December 2020.
## **Reference and administrative details**
## _**The charity name.**_
The legal name of the charity is:- The Baptist Building Fund For Wales.
The charity is also known by its operating name, The Baptist Building Fund For Wales. _**The charity's areas operation and UK charitable registration.**_
The charity is registered in England & Wales with the Charity Commission in England & Wales (CCEW) with charity number 1191792.
The charity does not operate in any overseas jurisdictions.
_**Legal structure of the charity**_
The charity is governed in accordance with a scheme established by the Charity Commission for England and Wales on 6th October 2020.
There are no restrictions in the governing documents on the operation of the Charity or on its investment powers other than those imposed by Charity Law.
**The principal operating address, telephone number, email and web addresses of the charity are:-**
Y Llwyfan Heol y Coleg, Caerfyrddin SA31 3EQ Telephone 01267 245660 Email Address judith@ubc.cymru Web address www.buw.wales
**The Trustees in office on the date the report was approved were:-**
The Welsh Baptist Union Corporation Limited
## **Objects and activities of the charity**
## _**The purposes of the charity as set out in its governing document.**_
The charitable object of the charity is primarily to assist churches by advancing loans normally on an interest free basis for constructing, extending, improving or renovating places of worship or other buildings belonging to, or used for the purpose of the Welsh Baptist Denomination and, subject thereto, for such other charitable purposes of the said Denomination as the trustee shall from time to time direct.
1
## **The Baptist Building Fund For Wales**
## **Trustees' Annual Report for the year ended 31 December 2020**
## _**The main activities undertaken in relation to those purposes during the year.**_
During 2021 the main activities have been:
Advancing loans to churches and maintaing properties under its ownership. Facilitating a loan for the purposes of establishing a missional community.
## _**The short term and longer term aims and objectives.**_
To consider how best the Fund might assist churches strategically within the Baptist Union of Wales and to raise awareness about the availability of the Fund.
## **The main achievements and performance of the charity during the year.**
Facilitation of loans.
## _**Fundraising activities during the year.**_
The charity relies on investment income and also receives gifts from other donors whose support is valued, and, on occasion, as ultimate beneficiary of trusts for chapel properties when finally closed for worship.
## _**The difference the charity's performance during the year has made to the beneficiaries of the charity.**_
The performance of the Charity during the year has enabled it to continue to be able to offer interest free loans to its member churches.
## _**The degree to which the achievements and performance during the year have benefited wider society.**_
Interest free loans have enabled some churches to improve their buildings so as to provide services to the community, for example lunch clubs, youth groups and playgroups. A loan is assisting a fellowship to build a new church building and to establish a missional community.
## _**Investment performance against the investment objectives.**_
In the financial review section of this report there is a description of the investment policies and objectives established by the trustees and the extent to which social environmental or ethical considerations are taken into account.
The investment performance achieved against the objectives set was satisfactory.
## **Structure, governance and management of the charity**
The sole trustee is The Welsh Baptist Union Corporation Limited.
2
## **The Baptist Building Fund For Wales**
## **Trustees' Annual Report for the year ended 31 December 2020**
## _**The charity as a part of a wider network.**_
Links between the charity and a wider network are through the associations fostered by the Baptist Union of Wales with Baptist associations throughout the world and with other churches in Wales, for example, Cytun (Churches Together in Wales), Free Church Council of Wales, Federation of Baptists in Britain and Ireland, European Baptist Fellowship and Baptist World Alliance.
## _**The charity's relationships with related parties.**_
The work of the charity is intricately linked both with The Welsh Baptist Union Corporation Limited and also with the Baptist Union of Wales.
Bankers Unity Trust Bank PLC Solicitors Pothecary Witham Weld, 84 Eccleston Square, Pimlico, London SW1V 1PX Investment advisors
Charles Stanley Wealth, 7/8 Park Place, Cardiff CF10 3 DP
Accountants
Cross & Bowen, Chartered Accountants, 11 Calvert Terrace, Swansea, SA1 6AT.
## **Financial review**
## _**The charity's financial position at the end of the year ended 31 December 2021**_
The financial position of the charity at 31 December 2020 and comparatives for the prior period, as more fully detailed in the accounts, can be summarised as follows:-
|**Total Funds**
Unrestricted Revenue Funds available for the general
purposes of the charity
**Net income**|**2021**
**£**
329,216
3,766,192
3,766,192
|**2020**
**£**
107,103
3,436,976
3,436,976|
|---|---|---|
## _**Financial review of the position at the reporting date, 31 December 2021 .**_
The trustees consider the financial performance by the charity during the year to have been satisfactory.
Specific changes in fixed assets are detailed in the notes to the accounts.
## _**Policies on reserves.**_
The policy is to ensure that the Union has sufficient free and available funds to meet at least 3 months of annual budgeted expenditure. In addition the Trustees consider it is prudent to provide for a further 3 months for funding loans to churches and associations.
3
## **The Baptist Building Fund For Wales**
## **Trustees' Annual Report for the year ended 31 December 2020**
## _**Availability and adequacy of assets of each of the funds**_
The Trustees is satisfied that the charity's assets in each fund are available and adequate to fulfil its obligations.
## _**Significant events which have affected the financial performance and the financial position.**_
There have been no significant events during the year that have affected the financial performance or the financial position.
## _**Investment policy and investment objectives.**_
The charity has indicated to its investment advisors an attitude to investment balanced for capital and income, with risk limited as is appropriate for charity trustees, and with clear guidelines on sectors to be preferred or avoided because of ethical considerations.
## _**The major risks to which the Charity is exposed and reviews and systems to mitigate them.**_
The Union recognises that the main risk to which it is exposed is the risk to the value of investments held in global markets.
## _**Factors likely to affect future financial performance .**_
Due to the charity being heavily reliant on investment income, the major factor likely to affect future financial performance is the volatility of the stock market.
## _**Principal funding sources in the year and how these support the key objectives of the charity.**_
The charity's main funding during the year has been from investment income and proceeds from closed churches.
## _**Plans For the Future**_
## **Summary of plans for the future and the trustees' perspective of the future direction of the charity.**
The BBFW is a lasting testimony to those who established the fund for the benefit of Baptist Union of Wales churches. The Fund has assisted many churches to undertake improvements and hopes that it will be able to do so for many years to come.
## **Details of The Independent Examiner**
Mr. Timothy P. Hopkins
Member of Chartered Accountants
11 Calvert Terrace
Swansea
SA1 6AT
4
## **The Baptist Building Fund For Wales**
## **Trustees' Annual Report for the year ended 31 December 2020**
## **Statement of Trustee's Responsibilities**
The charity's trustees are responsible for the preparation of the accounts in accordance with the terms of the Charities Act 2011 and the Charities (Accounts and Reports) Regulations 2008. Notwithstanding the explicit requirement in the extant statutory regulations,the Charities (Accounts and Reports) Regulations 2008, to prepare the financial statements in accordance with the SORP 2005, in view of the fact that the SORP 2005 has been withdrawn, the Trustees determined to interpret this responsibility as requiring them to follow current best practice and prepare the accounts according to the FRS 102 SORP (Statement of Recommended Practice for Accounting and Reporting by Charities) 2015, (as amended by the Bulletin issued in October 2018 and applicable to all accounting periods beginning on or after 1st January 2019), (The SORP), .
In particular, charity law requires the Trustees, if they prepare accounts on an accruals basis, 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 end of the financial year and of the surplus or deficit of the charity. In preparing those financial statements the Trustees are required to :-
- to prepare the accounts in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law).
- select suitable accounting policies and apply them consistently;
- make judgements and estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business;
- state whether applicable accounting standards and statements of recommended practice have been followed, subject to any material
- departures disclosed and explained in the financial statements;
The law requires that the trustees must not approve the accounts unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of the surplus or deficit of the charity for the year.
The Trustees are also responsible for maintaining adequate accounting records which disclose with reasonable accuracy at any time the financial position of the charity and which are sufficient to show and explain the charity's transactions and enable them to ensure that the financial statements comply with regulations made under the Charities Act 2011. 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.
The Trustees are also responsible for the contents of the Trustees' report, and the statutory responsibility of the Independent Examiner in relation to the Trustees' report is limited to examining the report and ensuring that , on the face of the report, there are no material inconsistencies with the figures disclosed in the financial statements.
This report was approved by the board of trustees on 19 May 2022.
REVD JUDITH MORRIS, BA, MPHIL, MTH
On behalf of The Welsh Baptist Union Corporation Limited
5
## **The Baptist Building Fund For Wales**
## **Independent examiner's report to the Trustees of The Baptist Building Fund For Wales.**
I report to the trustees on my examination of the accounts of The Baptist Building Fund For Walesfor the year ended 31 December 2021, which are set out on pages 7 to 28.
## **Respective responsibilities of trustees and examiner**
The charity's trustees are responsible for the preparation of the accounts. The charity's trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed.
It is my responsibility to:
. examine the accounts under section 145 of the 2011 Act;
. to follow the procedures laid down in the General Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act; and
. to state whether particular matters have come to my attention.
## **Basis of independent examiner's report**
My examination was carried out in accordance with the General Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and the seeking of explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and, consequently no opinion is given as to whether the accounts present a 'true and fair view' and the report is limited to those matters set out in the statement below.
## **Independent examiner's statement**
In connection with my examination, no matter has come to my attention:
- 1 which gives me reasonable cause to believe that, in any material respect, the requirements:
- . to keep accounting records in accordance with section 130 of the 2011 Act; and
. to prepare accounts which accord with the accounting records and to comply with the accounting requirements of the 2011 Act
have not been met;
or
2 to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
## **Signed:-**
## **Mr. Timothy P. Hopkins - Independent Accountant**
Cross & Bowen
Chartered Accountants
11 Calvert Terrace
Swansea SA1 6AT
This report was signed on 19 May 2022
6
## **The Baptist Building Fund For Wales - Statement of Financial Activities for the year ended 31 December 2021**
## _**Statement of Financial Activities for the year ended 31 December 2021**_
|**Current year**
**Unrestricted**
**Funds**
**2021**
**£**
**Income & Endowments from:**
Donations & Legacies
A1
3,125
Investments
A4
80,839
Other
A5
42,945
**Total income**
**A**
**126,909**
**Expenditure on:**
Charitable activities
B2
22,855
**Total expenditure**
**B**
**22,855**
Net gains on investments
B4
225,162
**Net income for the year**
**329,216**
**Net income after transfers**
**A-B-C**
**329,216**
**329,216**
**Reconciliation of funds:-**
**E**
**Total funds brought forward**
3,436,976
**Total funds carried forward**
**3,766,192**
**Net movement in funds**
**SORP**
**Ref**|**Current year**
**Restricted**
**Funds**
**2021**
**£**
-
-
-
**-**
-
**-**
-
**-**
**-**
**-**
-
**-**|**Current year**
**Total Funds**
**2021**
**£**
**3,125**
**80,839**
**42,945**
**126,909**
**22,855**
**22,855**
**225,162**
**329,216**
**329,216**
**329,216**
**3,436,976**
**3,766,192**|**Prior Year**
**Total Funds**
**2020**
**£**
250
72,336
133,912
**206,498**
26,713
**26,713**
(72,682)
**107,103**
**107,103**
**107,103**
3,329,873
**3,436,976**|
|---|---|---|---|
The 'SORP Ref' indicated above is the classification of income set out in the formal SORP documents. As required by paragraph 4.60 of the SORP, the brought forward and carried forward funds above have been agreed to the Balance Sheet.
A Statement of Total Recognised Gains and Losses is included as a primary statement in these accounts.
All the prior year transactions were unrestricted items, and no further analysis is required
All activities derive from continuing operations
**The notes attached on pages 14 to 28 form an integral part of these accounts.**
7
## **The Baptist Building Fund For Wales - Statement of Financial Activities for the year ended 31 December 2021**
## **Statement of Total Recognised Gains and Losses for the year ended 31 December 2021**
|**Surplus for the year :-**
Realised gains on disposals of social investments which are programme related
**_Income from operations before tax in the Statement of Financial Activites_**
**_Add/(deduct) non income and expenditure items:-_**
Unrealised gains on investments
**Net Movement in funds before taxation**
**Funds generated in the year as shown on Statement of Financial Activities**
Net excess of income over expenditure from operations before tax|**2021**
**£**
104,054
-
**104,054**
225,162
**329,216**
**329,216**|**2020**
**£**
179,785
-
**179,785**
(72,682)
**107,103**
**107,103**|
|---|---|---|
**The notes attached on pages 14 to 28 form an integral part of these accounts.**
**The Baptist Building Fund For Wales - Resources applied in the year ended 31 December 2021 towards fixed assets for Charity use:-**
|Funds generated in the year as detailed in the SOFA
Resources applied on functional fixed assets
Other applications of funds
**Net resources available to fund charitable activities**|**2021**
**£**
329,216
-
-
**329,216**|**2020**
**£**
107,103
(254,500)
-
**(147,397)**|
|---|---|---|
The resources applied on fixed assets for charity use represents the cost of additions less proceeds of any disposals.
**The notes attached on pages 14 to 28 form an integral part of these accounts.**
8
## **The Baptist Building Fund For Wales - Statement of Financial Activities for the year ended 31 December 2021**
## **Movements in revenue and capital funds for the year ended 31 December 2021**
## **Revenue accumulated funds**
|**Unrestricted**
**Restricted**
**Funds**
**Funds**
**2021**
**2021**
**£**
**£**
Accumulated funds brought forward
3,436,976
-
329,216
-
**3,766,192**
**-**
**Closing revenue funds**
**3,766,192**
**-**
**Designated revenue funds included within the unrestricted funds above**
At 1 January
**At 31 December**
**Fixed asset funds**
**Designated**
**Restricted**
**Funds**
**Funds**
**2021**
**2021**
**£**
**£**
At 1 January
-
-
**At 31 December**
**-**
**-**
**Summary of funds**
**Unrestricted**
**Restricted**
**and**
**Funds**
**Designated funds**
**2021**
**2021**
**£**
**£**
Revenue accumulated funds
3,766,192
-
Recognised gains and losses before
transfers
#NAME?
#NAME?|**Total**
**Funds**
**2021**
**£**
3,436,976
329,216
**3,766,192**
**3,766,192**
**Total**
**Funds**
**2021**
**£**
-
-
**Total**
**Funds**
**2021**
**£**
-
**-**
**Total**
**Funds**
**2021**
**£**
**3,766,192**|**Last year**
**Total Funds**
**2020**
**£**
**3,329,873**
107,103
**3,436,976**
**3,436,976**
**Last year**
**Total Funds**
**2020**
**£**
-
-
**Last year**
**Total Funds**
**2020**
**£**
-
**-**
**Last Year**
**Total Funds**
**2020**
**£**
3,436,976|
|---|---|---|
**The notes attached on pages 14 to 28 form an integral part of these accounts.**
9
## **The Baptist Building Fund For Wales - Statement of Financial Activities for the year ended 31 December 2021**
## **The Baptist Building Fund For Wales**
## **Income and Expenditure Account for the year ended 31 December 2021 as required by the Companies Act 2006**
|**_Income_**
Income from operations
Income from investments, other than interest receivable
Interest receivable
Other operating income
**Gross income in the year before exceptional items**
**Gross income in the year including exceptional items**
**_Expenditure_**
Charitable expenditure, excluding depreciation and amortisation
Governance costs
Realised losses on disposals of social investments which are programme related
**Total expenditure in the year**
Tax on surplus on ordinary activities
**Retained surplus for the financial year**
**Net income after tax in the financial year**
**Net income before tax in the financial year**
Investment income|**2021**
**£**
3,125
77,141
3,698
42,945
**126,909**
**126,909**
21,571
1,284
-
**22,855**
**104,054**
-
**104,054**
**104,054**|**2020**
**£**
250
72,019
317
133,912
**206,498**
**206,498**
25,477
1,236
-
**26,713**
**179,785**
-
**179,785**
**179,785**|
|---|---|---|
All activities derive from continuing operations
In accordance with the provisions of the Companies Act 2006, the headings and subheadings used in the Income and Expenditure account have been adapted to reflect the special nature of the charity's activities.
**The notes attached on pages 14 to 28 form an integral part of these accounts.**
10
## **The Baptist Building Fund For Wales - Balance Sheet as at 31 December 2021**
|Note
**SORP**
**Ref**
**Fixed assets**
A
Tangible assets
5
A2
Investments held as fixed assets
6
A4
**Total fixed assets**
**Current assets**
B
Debtors
7
B2
Cash at bank and in hand
B4
**Total current assets**
**Creditors: amounts falling due within one**
**year**
8
C1
**Net current assets**
**The total net assets of the charity**
**Restricted funds**
**Unrestricted Funds**
Unrestricted Revenue Funds
12
D3
**Designated Funds**
**Total charity funds**
**The total net assets of the charity are funded by the funds**|**2021**
**£**
609,238
2,506,864
3,116,102
418,194
235,645
653,839
(3,749)
650,090
**3,766,192**
-
3,766,192
3,766,192
**3,766,192**
**of the charity, as follows:-**|**2020**
**£**
609,238
2,481,702
3,090,940
139,860
207,420
347,280
(1,244)
346,036
**3,436,976**
-
3,436,976
3,436,976
**3,436,976**|
|---|---|---|
The 'SORP Ref' indicated above is the classification of Balance Sheet items as set out in the formal SORP documents. As required by paragraph 4.60 of the SORP, the brought forward and carried forward funds above have been agreed to the SOFA..
The Trustees acknowledge their responsibilities for complying with the requirements of charity legislation with respect to accounting records and the preparation of accounts.
The Trustees are satisfied that, although the charity is not registered under the Companies Acts, if it were so registered, it would be eligible to prepare accounts in accordance with the provisions in Part 15 of the Companies Act 2006. applicable to companies subject to the small companies regime.
## **REVD JUDITH MORRIS, BA, MPHIL, MTH**
Trustee
Approved by the board of trustees on 19 May 2022
**The notes attached on pages 14 to 28 form an integral part of these accounts.**
11
## **The Baptist Building Fund For Wales**
## **Cash Flow Statement for the year ended 31 December 2021**
|**Cash flows from operating activities**
**A**
**_Cash flows from investing activities_**
Interest received
Other investment income, including rents from investments
Proceeds from sales of investments
Purchase of property, plant and equipment
Purchase of investments
**Net cash provided by investing activities**
**B**
**_Cash flows from financing activities_**
Net cash provided by operating activities as shown below|**2021**
**£**
(252,614)
3,698
77,141
200,000
-
-
**280,839**|**2020**
**£**
40,167
317
72,019
-
(254,500)
(12,501)
**(194,665)**|
|---|---|---|
||||
|**Net cash provided by financing activities**
**C**
**Overall cash provided by all activities**
**Cash movements**
Change in cash and cash equivalents from activities in the year
ended 31 December 2021
Cash and cash equivalents at 1 January 2021
Change in cash and cash equivalents due to exchange rate movements
**A+B+C**
**Cash at bank and in hand less overdrafts at 31 December**|**-**
**28,225**
28,225
207,420
-
**235,645**|**-**
**(154,498)**
(154,498)
361,918
-
**207,420**|
12
## **The Baptist Building Fund For Wales**
## **Cash Flow Statement for the year ended 31 December 2021**
## **The Baptist Building Fund For Wales**
## **Cash Flow Statement for the year ended 31 December 2021 - Continued**
## **Reconciliation of net income to net cash flow from operating activities**
|Net income as shown in the Statement of Financial Activities
**_Adjustments for :-_**
Write downs of investments
Net unrealised (gains)losses on investment assets
Dividends, interest and rents from investments
(Increase)Decrease in debtors
Increase in creditors, excluding loans
**Net cash provided by operating activities**
**A**
**Analysis of cash and cash equivalents**
Cash in hand at for the year ended 31 December 2021
Notice deposits - (less than 3 months)
**Total cash and cash equivalents**|329,216
-
(225,162)
(80,839)
(278,334)
2,505
**(252,614)**
**2021**
**£**
235,645
-
**235,645**|107,103
-
72,682
(72,336)
(67,778)
496
**40,167**
**2020**
**£**
207,420
-
**207,420**|
|---|---|---|
## **The Baptist Building Fund For Wales**
## **Cash Flow Statement for the year ended 31 December 2021 - Continued**
## **Analysis of change in net debt**
|Cash
**Total**|**_At start_**
**_of year_**
207,420
207,420|**_Cash_**
**_Flows_**
28,225
28,225|**_At end_**
**_of year_**
235,645
235,645|
|---|---|---|---|
13
## **The Baptist Building Fund For Wales**
## **Notes to the Accounts for the year ended 31 December 2021**
## **1 Accounting policies**
## _**Policies relating to the production of the accounts.**_
## **Basis of preparation and accounting convention**
The accounts have been prepared on the accruals basis, under the historical cost convention, and in accordance with the Financial Reporting Standard 102, (effective 1st January 2016) and 'FRS 102 SORP (Statement of Recommended Practice for Accounting and Reporting by Charities) 2015, (as amended by the Bulletin issued in October 2018 and applicable to all accounting periods beginning on or after 1st January 2019), (The SORP), published by the Charity Commission in England & Wales (CCEW) , effective January 2016, , and in accordance with all applicable law in the charity's jurisdiction of registration, except that the charity has prepared the financial statements in accordance with the FRS 102 SORP (Statement of Recommended Practice for Accounting and Reporting by Charities) 2015, (as amended by the Bulletin issued in October 2018 and applicable to all accounting periods beginning on or after 1st January 2019), (The SORP), in preference to the previous SORP, the SORP 2005, which has been withdrawn, notwithstanding the fact that the extant statutory regulations, the Charities (Accounts and Reports) Regulations 2008 refer explicitly to the SORP 2005. This has been done to accord with current best practice.
## **Going Concern**
The Trustee is satisfied that, at the time of approving the financial statements, it is appropriate to adopt the going concern basis in preparing the financial statements.The Trustee is not aware of any material uncertainites about the charity's ability to continue as a going concern.
## **Risks and future assumptions**
The accounts have been prepared on a going concern basis and the Trustee confirms that there are no key assumptions concerning the future, and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period. The charity is a public benefit entity
## _**Policies relating to categories of income and income recognition.**_
## **Nature of income**
Gross income represents the value, net of value added tax and discounts, of goods provided to customers and work carried out in respect of services provided to customers.
## **Categories of Income**
Income is categorised as income from exchange transactions (contract income) and income from non-exchange transactions (gifts), investment income and other income.
**Income from exchange transactions** is received by the charity for goods or services supplied under contract or where entitlement is subject to fulfilling performance related conditions. The income the charity receives is approximately equal in value to the goods or services supplied by the charity to the purchaser.
**Income from a non-exchange transaction** is where the charity receives value from the donor without providing equal value in exchange, and includes donations of money, goods and services freely given without giving equal value in exchange.
14
## **The Baptist Building Fund For Wales**
## **Notes to the Accounts for the year ended 31 December 2021**
## **Income recognition**
Income, whether from exchange or non exchange transactions, is recognised in the statement of financial activities (SOFA) on a receivable basis, when a transaction or other event results in an increase in the charity’s assets or a reduction in its liabilities and only when the charity has legal entitlement, the income is probable and can be measured reliably.
Dividends are accrued when the shareholder’s right to receive payment is established.
Income subject to terms and conditions which must be met before the charity is entitled to the resources is not recognised until the conditions have been met.
All income is accounted for gross, before deducting any related fees or costs.
## **Accounting for deferred income and income received in advance**
Where terms and conditions relating to income have not been met or uncertainty exists as to whether the charity can meet any terms or conditions otherwise within its control, income is not recognised but is deferred as a liability until it is probable that the terms or conditions imposed can be met.
Any grant that is subject to performance-related conditions received in advance of delivering the goods and services required by that condition, or is subject to unmet conditions wholly outside the control of the recipient charity, is accounted for as a liability and shown on the balance sheet as deferred income. Deferred income is released to income in the reporting period in which the performance-related or other conditions that limit recognition are met.
When income from a grant or donation has not been recognised due to the conditions applying to the gift not being wholly within the control of the recipient charity, it is disclosed as a contingent asset if receipt of the grant or donation is probable once those conditions are met.
Where time related conditions are imposed or implied by a funder, then the income is apportioned to the time periods concerned,and, where applicable, is accounted for as a liability and shown on the balance sheet as deferred income. When grants are received in advance of the expenditure on the activity funded by them, but there are no specific time related conditions, then the income is not deferred.
Any condition that allows for the recovery by the donor of any unexpended part of a grant does not prevent recognition of the income concerned, but a liability to any repayment is recognised when repayment becomes probable.
## **Income from legacies**
Income from legacies is recognised when the charity has sufficient evidence that a gift has been left to them, that where required, probate has been granted, the executor is satisfied that the property in question will not be required to satisfy claims in the estate, that it is probable that the amount will be received by the charity, and the amount to be received can be estimated with sufficient accuracy, and that any conditions attached to the legacy are either within the control of the charity or have been met.
Where a payment is received from an estate or is notified as receivable by the executors after the reporting date and before the accounts are authorised for issue but it is clear that the payment had been agreed by the executors prior to the end of the reporting period, then the amount concerned is treated as an adjusting event and accrued as income in the accounting period if receipt is probable.
Where the charity has established entitlement to a legacy but there is uncertainty as to the amount of the payment, details of the legacy aredisclosed as a contingent asset until the criteria for income recognition are met. Where a legacy is subject to the interest of a life tenant, the legacy is not recognised as income until the death of the life tenant.
If it is doubtful that full settlement of a legacy debtor will be received, then an adjustment is made to reduce the amount of the legacy debtor and legacy income rather than charging the adjustment as expenditure in the Statement of Financial Activities
15
## **The Baptist Building Fund For Wales**
## **Notes to the Accounts for the year ended 31 December 2021**
## **Donated goods, facilities and services**
**Donated fixed assets** are recognised at the current fair value. All such donations are recognised as donation income, and debited to fixed assets.
**Donated goods that are not fixed assets** are accounted for at a fair value, unless it is impractical to reliably measure the value of the donated items.
In the absence of any direct evidence of fair value of donated goods, then a value is derived from the cost of the item to the donor or, in the case of goods that are expected to be sold, the estimated resale value after deducting any anticipated costs of sales.
If it is impracticable to measure the fair value of goods donated for resale, or the costs of valuation outweigh the benefits, the donated goods are recognised as income when sold, with an equivalent amount being recognised as an expense.
The costs of goods donated for distribution to beneficiaries is deemed to be the fair value of those goods upon receipt. When the goods are distributed freely or for a nominal consideration, then the carrying amount is adjusted at the time of sale, to the value at the point of distribution and the adjustment is shown as a cost of donations made.
The carrying amount of any stock held for distribution is assessed for impairment at the reporting date. All donated goods are recognised as donation income, and debited to trading stock.When trading stock is subsequently sold, or appropriated to meet an expense, then the carrying value of the stock is recognised as an expense. In accordance with the SORP, goods donated for distribution to beneficiaries, or for consumption by the charity are included in _'legacies and donations_ '. Goods donated for resale are included in _'Income from other trading activities'_
The cost of any stock of goods donated for distribution to beneficiaries is deemed to be the fair value of those gifts at the time of their receipt. If the goods held are to be distributed freely or for a nominal consideration, then the carrying amount is subsequently adjusted to reflect the lower of deemed cost adjusted for any loss of service potential and replacement cost. Replacement cost is the economic cost incurred if the charity was to replace the service potential of the donated goods at its own expense in the most economic manner.
**Donated services and facilities** (including seconded staff and use of property) are included in the accounts on the basis of the value of the gift to the charity.
All donated services and facilities are recognised as donation income when received,(provided the value of the gift can be measured reliably) and recognised as an expense with an equivalent value.
16
## **The Baptist Building Fund For Wales**
## **Notes to the Accounts for the year ended 31 December 2021**
## _**Policies relating to expenditure on goods and services provided to the charity.**_
## **Recognition of liabilities and expenditure**
A liability, and the related expenditure, is recognised when a legal or constructive obligation exists as a result of a past event, and when it is more likely than not that a transfer of economic benefits will be required in settlement, and when the amount of the obligation can be measured or reliably estimated..
Liabilities arising from future funding commitments and constructive obligations, including performance related grants, where the timing or the amount of the future expenditure required to settle the obligation are uncertain, give rise to a provision in the accounts, which is reviewed at the accounting year end. The provision is increased to reflect any increases in liabilities, and is decreased by the utilisation of any provision within the period, and reversed if any provision is no longer required. These movements are charged or credited to the respective funds and activities to which the provision relates.
## **Allocating costs to activities**
Direct costs that are specifically related to an activity are allocated to that activity. Shared direct costs and support costs are apportioned between activities.
The basis for apportionment, which is consistently applied, and proportionate to the circumstances, is :-
**Premises related costs** - on the proportion of floor area occupied by a particular activity.
**Non specific support costs** - on the basis of the usage of resources, in terms of time taken, capacity used, request made or other measures
## **Volunteers**
In accordance with the SORP, and in recognition of the difficulties in placing a monetary value on the contribution from volunteers, the contribution of volunteers is not included within the income of the charity.
However, the trustees value the significant contribution made to the activities of the charity by unpaid volunteers and this is described more fully in Note0.
## _**Policies relating to assets, liabilities and provisions and other matters.**_
## **Fixed Asset Investments**
Fixed asset investments in quoted shares, traded bonds, investment properties and similar investments are shown initially at cost upon acquisition and at their market value at the balance sheet date at the end of the financial period. Investment properties are not depreciated.
Fixed asset investments in unlisted equities are shown at the balance sheet date at the best estimate of their market value, where practicable. Where valuation techniques are considered unreliable or where, in the opinion of the trustees, the costs outweigh the benefits to the users of the accounts, the investment is included at cost, and a review is undertaken at each year end as to whether the asset should be written down.
All gains on fixed asset investments, whether realised or unrealised, are included in row B4 of the Statement of Financial Activities.
17
## **The Baptist Building Fund For Wales**
## **Notes to the Accounts for the year ended 31 December 2021**
## _**Tangible fixed assets**_
Tangible fixed assets are measured at their original cost value, or subsequent revaluation, or if donated, as described above. Cost value includes all costs expended in bringing the asset into its intended working condition.
A regular annual review of the likelihood of asset impairment is undertaken.
## **Debtors**
Debtors are measured at their recoverable amounts at the balance sheet date.
## **Cash and bank balances**
Cash held by the charity is included at the amount actually held and counted at the year end. Bank balances, whether in credit or overdrawn, are shown at the amounts properly reconciled to the bank statements.
## **2 Liability to taxation**
The Trustees consider that the charity satisfies the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 for UK corporation tax purposes. Accordingly, the Charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by chapter 3 part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively on the specific charitable objects of the charity and for no other purpose.
## **3 Winding up or dissolution of the charity**
If upon winding up or dissolution of the charity there remain any assets, after the satisfaction of all debts and liabilities, the assets represented by the accumulated fund shall be transferred to some other charitable body or bodies having similar objects to the charity.
|**4**
**Investment gains**
**_Current Year_**
**_Unrealised gains /(losses) and writing down of carrying values_**
Listed investments - Unrealised
**Total unrealised gains/(losses) etc**
**Total realised and unrealised gains**|**Current year**
**Unrestricted**
**Funds**
**2021**
**£**
225,162
**225,162**
**225,162**|**Current year**
**Restricted**
**Funds**
**2021**
**£**
-
**-**
**-**|**Current year**
**Total Funds**
**2021**
**£**
**225,162**
**225,162**
**225,162**|**Prior Year**
**Total Funds**
**2020**
**£**
**(72,682)**
**(72,682)**
**(72,682)**|
|---|---|---|---|---|
All the gains and losses in the prior year was unrestricted.
18
## **The Baptist Building Fund For Wales**
## **Notes to the Accounts for the year ended 31 December 2021**
## **5 Tangible fixed assets**
|**_Current Year_**
**Cost**
At 1 January 2021
**At 31 December 2021**
**Depreciation**
**At 31 December 2021**
**Net book value**
**At 31 December 2021**
**At 31 December 2020**
**_Prior Year_**
**Cost**
02 January 2020
Additions
**31 December 2020**
**Depreciation**
**Net book value**
**31 December 2020**
**01 January 2020**|**Land and**
**Buildings**
£
609,238
**609,238**
**-**
**609,238**
**609,238**
**Land and**
**Buildings**
£
354,738
254,500
**609,238**
**609,238**
**354,738**|**Plant &**
**Machinery**
£
-
**-**
**-**
**-**
**-**
**Plant &**
**Machinery**
£
**-**
**-**
**-**|**Motor**
**Vehicles**
£
-
**-**
**-**
**-**
**-**
**Motor**
**Vehicles**
£
-
-
**-**
**-**
**-**|**Total**
£
609,238
**609,238**
**-**
**609,238**
**609,238**
**Total**
£
354,738
254,500
**609,238**
**609,238**
**354,738**|
|---|---|---|---|---|
19
## **The Baptist Building Fund For Wales**
## **Notes to the Accounts for the year ended 31 December 2021**
## **6 Investments held as fixed assets**
|**Carrying values of investments**
At 1 January 2021
Revaluation at 31 December 2021
Disposals
**At 31 December 2021**
**Analysis between fair value and historical cost**
Investments as above held at fair value
**7**
**Debtors**
Other debtors
**8**
**Creditors: amounts falling due within one year**
Accruals
Other creditors
**9**
**Income and Expenditure account summary**
**At 1 January 2021**
Surplus after tax for the year
**At 31 December 2021**|**Investments in**
**subsidiaries**
**£**
-
-
-
**-**
-|**Listed**
**investments**
**£**
2,481,702
225,162
(200,000)
**2,506,864**
2,506,864|**Other Classes**
**of Investment**
**£**
**-**
**-**
**-**
**-**
-
**2021**
**£**
418,194
**2021**
**£**
1,291
2,458
**3,749**
**2021**
**£**
3,509,658
104,054
**3,613,712**|**Total**
**£**
2,481,702
225,162
(200,000)
**2,506,864**
2,506,864
**2020**
**£**
139,860
**2020**
**£**
1,244
-
**1,244**
**2020**
**£**
3,329,873
179,785
**3,509,658**|
|---|---|---|---|---|
## **10 No related party transactions**
There were no transactions with related parties in the year , except with regard to trustees' remuneration, trustees' expenses and transactions with subsidiaries which are fully disclosed in the notes above.
20
## **The Baptist Building Fund For Wales**
## **Notes to the Accounts for the year ended 31 December 2021**
## **11 Particulars of how particular funds are represented by assets and liabilities**
|**At 31 December 2021**
Tangible Fixed Assets
Investments at valuation:-
_Fixed asset investments_
Current Assets
Current Liabilities
**At 1 January 2021**
Tangible Fixed Assets
Investments at valuation:-
Fixed asset investments
Current Assets
Current Liabilities|**Unrestricted**
**funds**
**£**
609,238
2,506,864
653,839
(3,749)
**3,766,192**
**Unrestricted**
**funds**
**£**
609,238
2,481,702
347,280
(1,244)
**3,436,976**|**Designated**
**funds**
**£**
-
-
-
**-**
**Designated**
**funds**
**£**
-
**-**|**Restricted**
**funds**
**£**
-
-
-
-
**-**
**Restricted**
**funds**
**£**
-
-
-
-
**-**|**Total**
**Funds**
**£**
**609,238**
**2,506,864**
**653,839**
**(3,749)**
**3,766,192**
**Total**
**Funds**
**£**
**609,238**
**2,481,702**
**347,280**
**(1,244)**
**3,436,976**|
|---|---|---|---|---|
## **12[Change in total funds over the year as shown in Note 11 , analysed by individual funds]**
|**_Unrestricted and designated funds:-_**
Unrestricted Revenue Funds
**Total unrestricted and designated funds**
**Total charity funds**|**Funds brought**
**forward from**
**2020**
**£**
3,436,976
**3,436,976**
**3,436,976**|**Movement in**
**funds in 2021**
**See Note 13**
**£**
329,216
**329,216**
**329,216**|**See Note 0**
**£**
**-**
**-**
**-**
**Transfers**
**between funds**
**in 2021**|**Funds carried**
**forward to**
**2022**
**£**
**3,766,192**
**3,766,192**
**3,766,192**|
|---|---|---|---|---|
21
## **The Baptist Building Fund For Wales**
## **Notes to the Accounts for the year ended 31 December 2021**
## **13 Analysis of movements in funds over the year as shown in Note 12**
|**_Unrestricted and designated funds:-_**
Unrestricted Revenue Funds|**Income**
**2021**
**£**
126,909
**126,909**|**Expenditure**
**2021**
**£**
(22,855)
**(22,855)**|**Other**
**Gains &**
**Losses**
**2021**
**£**
225,162
**225,162**|**Movement**
**in funds**
**2021**
**£**
**329,216**
**329,216**|
|---|---|---|---|---|
22
## **The Baptist Building Fund For Wales**
**Detailed analysis of income and expenditure for the year ended 31 December 2021 as required by the SORP 2015**
## _**This analysis is classsified by conventional nominal descriptions and not by activity.**_
## **14 Donations, Grants and Legacies**
|**Donations, Grants and Legacies**|||||
|---|---|---|---|---|
|**Donations and gifts from individuals**
**Total Donations, Grants and Legacies**
**Total Donations, Grants and**
**Legacies**
**A1**
Personal, Association & Church gifts
Small donations individually less than £1000
**Total donations and gifts from individuals**|**Current year**
**Unrestricted**
**Funds**
**2021**
**£**
-
3,125
**3,125**|**Current year**
**Restricted**
**Funds**
**2021**
**£**
-
-
**-**|**Current year**
**Total Funds**
**2021**
**£**
**-**
**3,125**
**3,125**|**Prior Year**
**Total Funds**
**2020**
**£**
250
-
**250**
**250**|
||||||
||**3,125**|**-**|**3,125**||
23
## **The Baptist Building Fund For Wales**
**Detailed analysis of income and expenditure for the year ended 31 December 2021 as required by the SORP 2015**
## **15 Investment income**
|Property Rental Income
Bank Interest Receivable
Other Investment Income
**Total investment income**
**A4**
**16 Other income and gains**
**_Current year_**
**Total other income**
**A5**
Proceeds from closed chapels|**Current year**
**Unrestricted**
**Funds**
**2021**
**£**
10,560
3,698
66,581
**80,839**
**Current year**
**Unrestricted**
**Funds**
**2021**
**£**
42,945
**42,945**|**Current year**
**Restricted**
**Funds**
**2021**
**£**
-
-
-
**-**
**Current year**
**Restricted**
**Funds**
**2021**
**£**
-
**-**|**Current year**
**Total Funds**
**2021**
**£**
**10,560**
**3,698**
**66,581**
**80,839**
**Current year**
**Total Funds**
**2021**
**£**
**42,945**
**42,945**|**Prior Year**
**Total Funds**
**2020**
**£**
10,560
317
61,459
**72,336**
**Prior Year**
**Total Funds**
**2020**
**£**
133,912
**133,912**|
|---|---|---|---|---|
## **17 Expenditure on charitable activities - Charitable trading**
|**_Current Year_**
**Total charitable trading costs**
**B2b**
Cost of charitable letting of non
investment property|**Current year**
**Unrestricted**
**Funds**
**2021**
**£**
**5,301**
**5,301**|**Current year**
**Restricted**
**Funds**
**2021**
**£**
**-**
**-**|**Current year**
**Prior Year**
**Total Funds**
**Total Funds**
**2021**
**2020**
**£**
**£**
**5,301**
**5,807**
**5,301**
**5,807**|
|---|---|---|---|
24
## **The Baptist Building Fund For Wales**
## **Detailed analysis of income and expenditure for the year ended 31 December 2021 as required by the SORP 2015**
## **18 Support costs for charitable activities**
|**_Current Year_**
**_Administrative overheads_**
**_Professional fees paid to advisors other than the auditor_**
**_Financial costs_**
**Support costs before reallocation**
**Total support costs - Current Year**
Admin costs spare (1)
Bank charges
Legal fees|**Current year**
**Unrestricted**
**Funds**
**2021**
**£**
13,078
**_or examiner_**
3,150
42
**16,270**
**16,270**|**Current year**
**Restricted**
**Funds**
**2021**
**£**
-
-
-
**-**
**-**|**Current year**
**Total Funds**
**2021**
**£**
**13,078**
**3,150**
**42**
**16,270**
**16,270**|**Prior Year**
**Total Funds**
**2020**
**£**
**12,987**
**6,640**
**43**
**19,670**
**19,670**|
|---|---|---|---|---|
## **19 Other Expenditure - Governance costs**
|**_Current Year_**
Independent Examiner's fees
**Total Governance costs**|**Current year**
**Unrestricted**
**Funds**
**2021**
**£**
1,284
**1,284**|**Current year**
**Restricted**
**Funds**
**2021**
**£**
-
**-**|**Current year**
**Total Funds**
**2021**
**£**
**1,284**
**1,284**|**Prior Year**
**Total Funds**
**2020**
**£**
**1,236**
**1,236**|
|---|---|---|---|---|
All the expenditure in the prior year was unrestricted.
25
## **The Baptist Building Fund For Wales**
**Detailed analysis of income and expenditure for the year ended 31 December 2021 as required by the SORP 2015**
**20 Total Charitable expenditure**
|**_Current Year_**
Total charitable trading costs
**B2b**
Total support costs
**B2d**
Total Governance costs
**B2e**
**Total charitable expenditure**
**B2**
All the expenditure in the prior year was unrestricted.
**_Prior Year_**
Total charitable trading costs
**B2b**
Total support costs
**B2d**
Total Governance costs
**B2e**
**Total charitable expenditure**
**B2**|**Current year**
**Unrestricted**
**Funds**
**2021**
**£**
5,301
16,270
1,284
**22,855**
**Prior Year**
**Unrestricted**
**Funds**
**2020**
**£**
5,807
19,670
1,236
**26,713**|**Current year**
**Restricted**
**Funds**
**2021**
**£**
-
-
-
**-**
**Prior Year**
**Restricted**
**Funds**
**2020**
**£**
-
-
-
**-**|**Current year**
**Total Funds**
**2021**
**£**
**5,301**
**16,270**
**1,284**
**22,855**
**Prior Year**
**Total Funds**
**2020**
**£**
**5,807**
**19,670**
**1,236**
**26,713**|**Prior Year**
**Total Funds**
**2020**
**£**
**5,807**
**19,670**
**1,236**
**26,713**|
|---|---|---|---|---|
26
## **The Baptist Building Fund For Wales**
## **Activity analysis of Income and expenditure for the for the year ended 31 December 2021**
## _**This analysis is classsified by activity and not by conventional nominal descriptions.**_
|**21 Analysis of income by activity**
**SOFA ref**
**_Summary of Total Income, including the items above_**
Donations & Legacies
**A1**
Investment income
**A4**
Other income
**A5**
**Total income as shown in the SOFA**
**A**
**_Categories of income_**
Income from exchange transactions
**Activity**|**2021**
**£**
3,125
80,839
42,945
**126,909**
126,909|**2020**
**-**
250
72,336
133,912
**206,498**
206,498|
|---|---|---|
## **22 Analysis of charitable expenditure by activity**
## **Activity**
## **Summary of charitable costs by activity**
|Total Baptist Building Fund for Wales
Total Governance costs as detailed in Note
19
**Total charitable expenditure**|**Direct costs**
**2021**
**£**
5,301
-
**5,301**|**Support**
**costs**
**2021**
**£**
16,270
1,284
**17,554**|**Grant**
**funding of**
**activities**
**2021**
**£**
-
-
**-**|**Total**
**2021**
**£**
21,571
1,284
**22,855**|**Total**
**2020**
**£**
25,477
1,236
**26,713**|
|---|---|---|---|---|---|
The basis of allocation of costs between activities is described under accounting policies
The breakdown of this expenditure by type of spending (ie nominal classification) is detailed in note 20
## **Analysis of support and governance costs by charitable activities**
|**Activity**
Baptist Building Fund for Wales
**Grand Total**|**Governance**
1,284
1,284|**Finance**
43
43|**Human**
**Resources**
-
-|**Other**
**Overheads**
19,579
19,579|**Total**
20,906
20,906|
|---|---|---|---|---|---|
27
**The Baptist Building Fund For Wales**
**Activity analysis of Income and expenditure for the for the year ended 31 December 2021**
**23 Analysis of non charitable expenditure by activity**
## **Activity**
|**_Governance costs_**|**Governance**
**costs**|**Governance**
**costs**|
|---|---|---|
||**2021**|**2020**|
||**£**|**£**|
|Other Expenditure - Governance costs as detailed in Note 19|1,284|1,236|
28