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2020-12-31-accounts

Charity Reg No. 240979

www.pbfund.org.uk

PARTICULAR BAPTIST FUND

Report and Financial Statements 31 December 2020

PARTICULAR BAPTIST FUND

Report and Financial Statements 2020 Contents

Page
Report of the Executive Committee 1
Independent Auditor’s report 8
Statement of financial activities 10
Balance sheet 11
Cash Flow Statement 12
Notes to the financial statements 13

PARTICULAR BAPTIST FUND

Report of the Executive Committee For the year ended 31 December 2020

The Executive Committee submits its report and the financial statements of the Particular Baptist Fund (“the Fund”) for the year ended 31 December 2020. The financial statements comply with Statement of Recommended Practice (FRS102) “Accounting and Reporting by Charities” issued by the Charity Commission.

1. Reference and Administrative Information

1.1 The Trustees

The Trustees serve on the Executive Committee. The Trustees who served during the year and the Trustees who were serving at the date of the report (unless otherwise stated) were:

D Chapman Vice Chairman (retired 21 April 2021) M O’Mara Vice Chairman E Cousins Treasurer W Randall K Johns G M Trice Chairman G H Jones

Mr D Chapman retired from the Executive Committee at the Annual General Meeting on 21 April 2021, having served on the Committee since April 2005, and as its Vice-Chairman since April 2014. As Executive Committee members are drawn from the Members’ Representatives his service to the Fund dates from earlier than the commencement of his long service on the Committee and all remaining members of the Executive Committee thank him for his long and diligent service and look forward to continuing to work with his as he continues as a Member’s Representative.

Miss M O’Mara was elected to the office of Vice-Chairman on 21 April 2021.

1.2 The Members

The members are certain Churches and individuals. The Churches serving at 31 December 2020, together with their number of registered representatives (including the Minister), each holding one vote, are as follows:

Brentford, Ealing Road (1) Metropolitan Tabernacle, Elephant & Castle (1)
Bromley, Hayes Lane (2) New Addington (2)
Camberwell, Denmark Place (2) New Cross Road (2)
Caterham (2) Tottenham High Road (1)
Croydon West (1) Tring (1)
Greenwich, Village Church (1) Tunbridge Wells, Pantiles (2)
Hyde Heath (2) Walworth, East Street (1)
Islington, Tollington Park (1) Wandsworth, West Hill (2)
Lewisham, College Park (1) Watford, Derby Road (2)
Leyton, Hainault Road (2)

1.3 Principal Office

5 Sandalwood Road Westbury Wiltshire BA13 3UP

1.4 Professional Advisers and Agents

The principal professional advisers and agents employed by the Fund as at the date of this report are as follows:

Solicitors Pothecary Witham Weld Investment Investec Wealth and Investment Bankers CAF Bank Limited
70 St George’s Square Managers 30 Gresham Street 25 Kings Hill Avenue
London SW1V 3RD London Kings Hill
EC2V 7QN West Malling
Kent ME19 4JQ
Auditors Jacob Cavenagh & Skeet Secretary John Edwards
5 Robin Hood Lane 5 Sandalwood Road
Sutton Westbury
Surrey SM1 2SW Wiltshire BA13 3UP

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PARTICULAR BAPTIST FUND

Report of the Executive Committee For the year ended 31 December 2020

2. Structure, Governance & Management

2.1 Charitable Status

The Fund was established in 1717 by six Baptist Churches in London holding the doctrines of Particular Redemption and Believers’ Baptism. The Fund is registered as a charity with the Charity Commission no. 240979.

2.2 The Governing Document

The Fund is governed by a Charity Commission Scheme dated 27 August 2004.

2.3 The Trustees

The Trustees of the Fund are the members of the Executive Committee (“the Executive”). The Executive is appointed by the Members in general meeting. Executive members serve three year terms. The Executive currently meets up to six times per annum and meets with the Members’ Representatives twice per annum.

The induction process for any newly-appointed member of the Executive comprises an initial meeting with the Chair and the Board, followed by a series of short meetings with the Secretary on investments, the grant making process, powers and responsibilities of the Executive. The welcome information pack includes:

2.4 The Members

The Members of the Fund are the Churches. Individuals may be Members, but currently there are no Individual Members. There are both doctrinal and financial requirements for Membership. Doctrinally, Members must hold to the doctrines of Particular Baptists. Financially, Members make an initial contribution to the Fund’s permanent capital and thereafter make continuing contributions by way of an annual offering or donation.

Members’ duties are to:

2.5 Key Management Personnel

The Key Management Personnel of the Fund consists of the Secretary, John Edwards BSc(Econ) to whom all the day to day administrative and accounting functions of the Fund are delegated.

The Secretary’s role is part-time and is regarded as a vocation and accordingly remuneration is calculated with reference to two fifths of the Baptist Union of Great Britain Stipend Scale and is reviewed annually towards the end of each year by the Trustees in a meeting, who then set the remuneration for the coming year.

2.6 Risk Management

The Fund’s primary concern and objective is the glory of God. While it is the Fund’s policy to trust wholly in the Lord that he will work out his purpose to this end, the Fund also acknowledges that it has a responsibility for the proper management of the Fund in accordance with applicable laws and accepted good practice and for ensuring that the risks faced by the Fund in achieving its primary aim are addressed and managed as best as possible. The Executive Committee has therefore conducted its own review of the major risks to which the Fund is exposed and systems and procedures have been established in order to manage those risks. This review is repeated annually.

The most significant risks identified and actions undertaken to mitigate them are:

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PARTICULAR BAPTIST FUND

Report of the Executive Committee For the year ended 31 December 2020

3. Objectives, Activities & Strategies

3.1 Objective

The object of the charity is stated as: “the advancement of the Christian religion in Great Britain, Ireland, the Channel Islands and the Isle of Man in accordance with the doctrines of Particular Baptists”.

3.2 Aim

The Trustees aim to achieve this objective by:

These were the Fund’s main objectives for the year.

3.3 Activities

Alongside the governing document, the activities of the Fund are managed under a series of Rules and Regulations formulated by the Executive Committee. Within this framework, the Fund seeks to make:

3.4 Strategies

The Fund is committed to distributing its unrestricted reserves in accordance with its stated objectives and also in accordance with its unrestricted reserves policy. It is also committed to increasing its loan portfolio. To these ends the Executive is committed to:

4. Achievements and Performance

During the year, the Fund continued to make grants and loans in accordance with the Fund’s objectives and in accordance with the grants and loans policies established by the Executive. The Fund continues to report performance in terms of numbers of individuals, institutions and Churches who have been assisted, together with monetary amounts distributed by category of grant.

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PARTICULAR BAPTIST FUND

Report of the Executive Committee For the year ended 31 December 2020

Taking into account the improvement in investment values in the previous year the Executive found it possible to recommence the making of potentially very-long-term-commitment Home Mission Pastoral Grants as well as renewing grants to existing beneficiaries. Consequently the Fund’s grant-making expenditure of £333,718 to 26 different parties shows an increase over the previous year’s expenditure of £287,792 to 24 different parties, as follows:

Educational grants (institutions)
Consents to redundant chapel transfers - related costs
Theological Education Support Grants
Ministerial Internship Grants
Home Mission Pastoral Grants
Project grants
Special Project Grants
Retired ministerial grants
Benevolent Grants
Total		 2020 2020 2019 2019
No. £ No. £
2 25,000 2 30,000
0 6,605 0 1,458
7 67,500 8 87,000
1 10,000 0 -
6 174,663 4 98,034
0 - 1 30,000
1 5,000 1 5,000
8 43,950 8 36,300
1 1,000 0 -
26 333,718 24 287,792

The Fund’s loan profile, disclosed as programme related investments within fixed asset (note 5) and current asset (note 6) investments, is as follows:

New loans
Total loans		 2020 2020 2019 2019
No. £ No. £
- - 2 95,000
12 229,505 14 302,688

4.1 Investment Performance against objectives

The Fund’s investment policy is set out more fully at 6.1 below.

The investments produced dividend income of £171,422 (2019: £126,204)

Net (losses), realised and unrealised, of £(24,352) (2019 gains £342,327) accrued to the Endowment Fund taking the value of the Endowment Fund to £2,162,504 at 31 December 2020, an decrease of 1.1% over the year. In the light of difficult market conditions in the face of world events this is satisfactory against achieving the objective of protecting the Endowment Fund against inflation and generating income.

Net gains, realised and unrealised, of £232,944 (2019 £901,146) accrued to General Funds, so total returns on investments, gains and dividends, amounted to £380,014, 5.3% of the value of investments at the start of the year. The performance of the Fund’s investments was encouragingly positive in the light of the effects of world events in 2020.

4.2 Future Developments

The Trustees are reviewing certain grants to make them more appropriate and relevant in the current climate.

5. Financial Review

The results of the Fund, together with comparative figures for 2019, can be found in the Statement of Financial Activities on page 10. At 31 December 2020, the Fund had net assets of £7,733,308 (2019: £7,310,209). This includes the market value of the Fund’s investments at 31 December 2020.

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PARTICULAR BAPTIST FUND

Report of the Executive Committee For the year ended 31 December 2020

6. Financial Policies

The financial policies relating to the Fund are as follows:

6.1 Investment Policy

The assets of the Fund (excluding cash and loans to Churches) are invested in a diversified portfolio to achieve long term growth in capital and income including ensuring the real value of the Endowment Fund is protected against inflation. For details of investments held see notes 5 and 6. The Investment Policy has been extensively reviewed and a new policy including ethical standards was accepted by the member Churches at the AGM in April 2009. In 2018 it was considered appropriate to seek more proactive investment managers and Investec Wealth and Investment were appointed as investment managers and during 2019 investment holdings were transferred to their management.

6.2 Loan Policy

Loans are made to Churches sharing the doctrinal basis of the Members for the purchase of, and building works to, Church buildings and manses, in accordance with the Rules and Regulations. Currently the maximum loan is £50,000. Repayment terms are normally ten years and are interest free. Loans to unincorporated charities are unsecured, but loans to incorporated charities are guaranteed as appropriate. For details of loans, which are accounted for as programme related investments, see notes 5 and 6.

6.3 Grants Policy

Grants are made to educational establishments, Churches and individuals embracing the doctrinal basis of the Members and in accordance with the Rules and Regulations. Details are included below:

The Fund’s aim is to devote 40% of Funds income to Educational Grants, 40% to Mission Grants and 20% to Benevolent Grants with a 5 percentage points tolerance on all three classes.

For details of grants made, see note 3.

6.4 Reserve Policies: Categories and Unrestricted Reserves

6.4.1 Reserve Categories

The Fund’s reserves are classified as follows:

Endowment Fund. This comprises those Funds which must be held permanently by the Fund. Income arising can be used in accordance with the objects of the charity and is included as unrestricted income. Any capital gains or losses arising on general Endowment Fund form part of the Endowment Fund.

The Bathford Fund. This arose from the proceeds of the chapel at Bathford, Somerset, of which the Fund was the ultimate beneficiary. Income arising on the Bathford Fund could be used in accordance with the objects of the charity for the benefit of SW England and has been accounted for as restricted income. The capital of the Bathford Fund was in the nature of an endowment fund. Any capital gains or losses arising on the Bathford Fund formed part of the Fund. The income derived from the Bathford Fund being very modest, during 2018 the Executive resolved to apply the capital of the fund as if it were income. During 2019 the resolution was duly notified to the Charity Commission and no objection received. The restriction that the Bathford Fund should be used for the benefit of SW England remains. Accordingly the whole of the Fund is now accounted for as restricted income and the Executive intend to use it in connection with projects located as near as possible to Bathford. During 2020 it has been possible to apply the Bathford Fund in Melksham, less than 10 miles away.

Restricted Funds amounted to:
Endowment Fund
Bathford Fund - Income		 2020
£
2,162,504
28,772
2,191,276		 2019
£
2,186,855
59,192
2,246,047

Unrestricted Funds. These comprise those Funds which the Executive is free to use in accordance with the objects of the Fund and are:

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PARTICULAR BAPTIST FUND

Report of the Executive Committee For the year ended 31 December 2020

For more details on reserves and reserve balances, see the balance sheet on page 11.

6.4.2 Unrestricted Reserves Policy

The Fund’s unrestricted reserves amount to £5,542,032 at 31 December 2020 (2019: £5,064,162). The Executive seeks to distribute the entire income generated by these Funds, together with the income from the endowment (both restricted and unrestricted) Funds.

The Executive have agreed an unrestricted policy whereby approximately £1,000,000 will be set aside for making loans to Churches for repairs to Church buildings and manses (the “Designated Loan Fund”).

The Executive consider that to ensure the Fund continues to operate in the case of a substantial decline in its income, the balance of the unrestricted reserves should not go below £300,000. In addition, the Executive is concerned not to undertake commitments that are dependent upon capital gains on investments, as those gains could be reversed in future years. It has adopted a ten year plan that seeks to reduce reserves to £300,000 and thereafter to balance expenditure with income.

6.4.3 Primary Funding Sources

The main source of the Fund’s income is its investments.

7. Public Benefit

The Trustees have taken into account the guidance published by the Charity Commission on the provision of public benefit. They confirm that Public Benefit is provided through

6

PARTICULAR BAPTIST FUND

Report of the Executive Committee For the year ended 31 December 2020

8. Impact of COVID-19

The Fund derives its income from, and benefits from gains on, commercial investments and, notwithstanding engaging proactive investment advisers, is subject to overall market conditions. COVID-19 had an adverse impact on financial markets globally and, whilst there was a recovery by the year end noted at 4.1 above, the not-unsatisfactory performance might have been better had the pandemic not occurred, and during the year there was real concern at falling investment values which may have had an unquantifiable cautionary effect on some grant making decisions.

9. Responsibilities of the Executive for the Financial Statements

The Executive is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice. Charity law requires the Executive to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of its financial activities for that period.

In preparing those financial statements, the Executive is required to:

The Executive is responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and enables it to ensure that the financial statements comply with part 8 of the Charities Act 2011. It is 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.

10. Approval

The report of the Executive Committee was approved by the Executive Committee on 15th September 2021 and signed on its behalf by:

Eric Cousins Treasurer

7

PARTICULAR BAPTIST FUND

Independent auditor’s report to the trustees of Particular Baptist Fund For the year ended 31 December 2020

Opinion

We have audited the financial statements of Particular Baptist Fund (the “Charity”) for the year ended 31 December 2020 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Charity’s ability to continue as a going concern for a period of at least 12 months from when the financial statements are authorised for issue.

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

Other information

The other information comprises the information included in the annual report, including the trustees’ report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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

We have nothing to report in this regard.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report.

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

Responsibilities of the trustees

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

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

8

PARTICULAR BAPTIST FUND

Independent auditor’s report to the trustees of Particular Baptist Fund For the year ended 31 December 2020

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 145 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

Based on our understanding of the charity, we identified that the principal risks of non-compliance with laws and regulations related to employment and financial reporting legislation and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the the Charities Act 2011.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by making enquiries of management, considering the internal controls in place and discussion amongst the engagement team.

We determined that the principal risks were related to presentation of separately disclosed items, the recognition of grant expenditure and management override of controls.

In response to the risks identified we designed procedures which included, but were not limited to reviewing trustees’ minutes, evaluating the internal controls, agreeing financial statement disclosures to underlying supporting documentation, and testing journal entries. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the Charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the Charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Jacob Cavenagh & Skeet Statutory Auditor Chartered Accountants

5 Robin Hood Lane Sutton Surrey SM1 2SW

Dated: .........................

Jacob Cavenagh & Skeet is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

9

PARTICULAR BAPTIST FUND

Statement of Financial Activities For the year ended 31 December 2020

2020
Unrestricted
Funds
Designated
Funds
Restricted
Funds
Endowment
Funds
Note
£
£
£
£
Income from:
2
Donations and legacies
10,058
711
-
1
Investments
156,405
15,047
-
Other income
425,000
-
-
-
Total income
591,463
15,758
-
1
Expenditure on:
3
Charitable activities
349,739
12,556
30,420
-
Total expenditure
349,739
12,556
30,420
-
Gains/(losses) on investment assets
186,274
46,670
-
(24,352)
Net income/(expenditure)
427,998
49,872
(30,420)
(24,351)
Transfers between funds
4
43,990
(43,990)
-
-
Net movement in funds
471,988
5,882
(30,420)
(24,351)
Balance brought forward 1 January
3,477,568
1,586,594
59,192
2,186,855
Balance carried forward 31
December
3,949,556
1,592,476
28,772
2,162,504		 Total
Funds
Unrestricted
Funds
Designated
Funds
£
£
£
10,770
40,407
-
171,452
120,036
6,168
425,000
174,162
404,395
607,222
334,605
410,563
392,715
272,096
64,380
392,715
272,096
64,380
208,592
688,940
212,206
423,099
751,449
558,389
-
168,089
(168,089)
423,099
919,538
390,300
7,310,209
2,558,030
1,196,294
7,733,308
3,477,568
1,586,594		 2019
Restricted
Funds
£
-
-
-
-
-
-
-
58,900
58,900
292
59,192		 2019
Restricted
Funds
£
-
-
-
-
-
-
-
58,900
58,900
292
59,192		 Endowment
Funds
£
500
-
-
500
-
-
342,327
342,827
(58,900)
283,927
1,902,928
2,186,855		 Total
Funds
£
40,907
126,204
578,557
745,668
336,476
336,476
1,243,473		 Total
Funds
£
40,907
126,204
578,557
745,668
336,476
336,476
1,652,665
-
1,652,665
5,657,544
7,310,209

10

PARTICULAR BAPTIST FUND

Balance Sheet

Balance Sheet
As at 31 December 2020 Registered Charity No. 240979
FIXED ASSETS
Investments
5
CURRENT ASSETS
Investments
6
Debtors – falling due within
one year
7
Cash at bank and in hand
CREDITORS
Falling due within one year
8
NET CURRENT
ASSETS/(LIABILITES)
CREDITORS
Falling due after one year
8
NET ASSETS
FUNDS
10
Unrestricted Funds
Restricted Funds
Endowment Fund		 General
Fund
£
3,834,271
459,294
(22,411)
436,883
204,015
232,868
117,583
3,949,556
3,949,556
-
-
3,949,556		 Designated
Funds
£
1,167,312
41,633
5,272
425,334
472,239
26,310
445,929
20,765
1,592,476
1,592,476
-
-
1,592,476		 Restricted
Fund
-
51,587
51,587
10,140
41,447
12,675
28,772
-
28,772
-
28,772		 Endowment
Fund
£
2,140,309
22,195
22,195
-
22,195
-
2,162,504
-
-
2,162,504
2,162,504		 Total
2020		 General
Fund
£
3,742,760
-
46,533
18,709
65,242		 Designated
Funds
£
1,190,778
49,633
2,391
439,227
491,251		 Restricted
Fund
-
-
59,192
59,192		 Endowment
Fund
£
2,175,987
-
10,868
10,868		 Total
2019
£
£
7,141,892 7,109,525
41,633 49,633
464,566 48,924
476,705 527,996
982,904 626,553
240,465 227,159 48,360 - - 275,519
742,439 (161,917) 442,891 59,192 10,868 351,034
151,023 103,275 47,075 - -
150,350
7,733,308 3,477,568
3,477,568
-
-
3,477,568		 1,586,594
1,586,594
-
-
1,586,594		 59,192
-
59,192
-
59,192		 2,186,855
-
-
2,186,855
2,186,855		 7,310,209
5,542,032 5,064,162
28,772 59,192
2,162,504 2,186,855
7,733,308 7,310,209

The financial statements were approved by the Executive Committee on 15 September 2021 and signed on its behalf by:

Eric Cousins Treasurer

11

Cash Flow Statement For the year ended 31 December 2020

PARTICULAR BAPTIST FUND

2020 2020 2019
£ £
Cash flows from operating activities (370,926) 193,489
Cash flows from investing activities
Interest received 30 -
Dividends received 171,422 77,280
Proceeds on disposal of fixed asset investments to create manged - 6,770,247
portfolio
(Purchase) of fixed asset investments-creation of managed - (6,530,132)
portfolio
Repayment from fixed asset investment managed portfolio 75,000 -
New programme related investments granted–loans advanced - (95,000)
Repayment of programme related investments – loan repayments 73,183 44,412
Net cash generated by investing activities 319,635 266,807
(Decrease)/Increase in cash and cash equivalents during the (51,291) 460,296
year
Cash and cash equivalents as at 1 January 527,996 67,700
Cash and cash equivalents as at 31 December 476,705 527,996
Reconciliation of net movement in funds to cash used in 2020 2019
operating activities
£ £
Net movement in funds 423,099 1,652,665
Adjustments for:
(Interest received) (30) -
(Dividends received) (171,422) (77,280)
Investment (gains)/losses (208,592) (1,243,473)
Management charges borne within managed portfolio 36,042 -
(Increase)/Decrease in debtors – income receivable (415,642) (48,924)
(Decrease)/Increase in creditors (34,381) (89,499)
Net cash provided by operating activities (370,926) 193,489

12

PARTICULAR BAPTIST FUND

Notes to the Financial Statements For the year ended 31 December 2020

1. ACCOUNTING POLICIES

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

Accounting convention

The financial statements have been prepared under the Charities Act 2011 and in accordance with the Charities Statement of Recommended Practice (Charities SORP (FRS 102)) and Financial Reporting Standard 102 (FRS 102). The financial statements are drawn up on the historical cost basis of accounting, as modified by the revaluation of investment properties and other investments. There are no material uncertainties about the charity’s ability to continue in operation. The accounts are stated in pounds sterling and rounded to the nearest pound. The Particular Baptist Fund meets the definition of a public benefit entity under FRS 102.

Fund accounting

The General Fund is an unrestricted Fund which is available for use at the discretion of the Executive in furtherance of the general objectives of the charity and which has not been designated for other purposes. The Designated Loan Fund is an unrestricted Fund which has been set aside by the Executive for particular purposes. The Endowment Fund represents those Funds which must be held permanently by the Fund. Investment income is allocated to the General Fund. Gains and losses held by the General and Designated Funds are allocated proportionally to the appropriate Fund. Gains and losses on Endowment Fund investments are allocated directly to the Endowment Fund.

Income

Voluntary income and donations (including collections and legacies) are accounted for once the charity has entitlement to the income, it is probable the income will be received and the amount of income receivable can be reliably measured. Investment income is accounted for on an accruals basis.

Grants and other expenditure

Grants payable are charged in the year when the offer is conveyed to the recipient except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year-end are noted as a commitment, but not accrued as expenditure.

A provision for a multi-year grant is recognised at its present value where settlement is due over more than one year from the date of the award, there are no unfulfilled performance conditions under the control of the Fund to avoid making the future payment(s), settlement is probable, and the effect of discounting is material. The discount rate used is the rate offered on government bonds (Gilts) for a commensurate or similar time period offered in the year in which the grant award is made

Other expenditure is accrued as soon as a liability is considered probable, discounted to present value for longer term liabilities. Expenditure includes attributable VAT which cannot be recovered. Governance costs are now allocated to grant activities.

Investments

Listed investments are stated at quoted market value. Realised and unrealised gains and losses on investments are reflected through the Statement of Financial Activities. Programme related investments, being loans to Churches, are stated at the amount loaned, adjusted for any repayments, accrued interest and any irrecoverable amount.

Debtors

Amounts owed to the charity for goods and services and other debtors are included at the settlement amount due. Prepayments are valued at the amount prepaid.

Cash at bank and in hand

Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of opening of the deposit.

Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation arising from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are recognised at their settlement amount.

Financial instruments

The charity only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

13

PARTICULAR BAPTIST FUND

Notes to the Financial Statements For the year ended 31 December 2020

2.
INCOME FROM
Donations and legacies
Collections & donations
from Members
Gifts from beneficiaries
Other gifts
Investments
Dividends
Bank interest
Other income
Redundant Churches
Total income		 2020
General
Fund
£
1,004
8,109
945
10,058
156,375
30
156,405
425,000
591,463		 2020
Loan Fund
£
-
-
-
12,967
-
12,967
-
12,967		 2020
Welsh
Fund
2020
Endow
ment
Fund
£
1
711
-
-
711
1
2,080
-
-
-
2,080
-
-
2,791
1		 2020
Total
£
1,005
8,820
945
10,770
171,422
30
171,452
425,000
607,222		 2019
Total
£
1,562
5,178
34,167
40,907
126,204
-
126,204
578,557
745,668

14

PARTICULAR BAPTIST FUND

Notes to the Financial Statements For the year ended 31 December 2020

  1. EXPENDITURE
Charitable activities
Grants
Grants to Institutions
Educational grants
Angus Library
Spurgeon’s College
Minsterial Internship Grant
Abingdon
Special Project Grants
Folkestone
Y GRWP
Project Grants
Pembrokeshire Missioner (Welsh Fund)
Pastoral Support Grants
Arann
Aberdeen
Chingford
Didcot
Melksham (Bathford Fund)
Noddfa (Welsh Fund)
Spen Valley
Wakefield
Gift in Specie
Redeemer Church Cardiff – Splott Chapel
Grants to Individuals
Educational grants
Theological Education Support Grants
Retired ministerial grants
Benevolent Grants
Secretary’s honorarium
(see note below)
Investment Management
Advertising
Office Running Costs
Travel costs
Forex (Gain)/Loss
Legal & professional
Audit/Independent
examination
Meeting expenses
Other
Total expenditure		 2020
£
15,000
10,000
10,000
5,000
-
-
11,519
76,500
(20,000)
53,724
30,420
-
22,500
-
6,605
67,500
43,950
1,000
333,718
10,725
35,685
720
1,189
482
1,034
3,890
4,500
178
594
392,715		 2019
£
15,000
15,000
-
-
5,000
-
30,000
19,789
-
28,800
-
-
34,380
-
15,065
1,458
87,000
36,300
-
287,792
10,358
27,233
-
185
3,910
103
-
4,380
915
1,600
336,476

4

Included within Travel costs are amounts totalling £nil (2019: £1,046) which no ( 2019: 4) members of the Executive received for costs incurred in furtherance of the Fund’s activities other than in connection with governance. Also included in Travel expenses are amounts totalling £216 (2019: £1,290) which 6 (2019: 6) members of the Executive received for costs in connection with governance. In total 6 members of the Executive claimed travelling expenses totalling £216 (2019: 6 members claimed a total of £2,336) . No member of the Executive received remuneration in the year or preceding year.

Total Governance Costs amounted to
There was one employee(2019: one):
Gross salary (inc. in lieu Pension Contributions)
Employer’s National Insurance		 4,894
10,725
-
10,725		 6,585
10,358
-
10,358

15

PARTICULAR BAPTIST FUND

Notes to the Financial Statements For the year ended 31 December 2020

4. TRANSFERS BETWEEN FUNDS

During the year a transfer of £43,990 from the Designated Loan Fund to the General Fund (2019: £168,089 from the Designated Loan Fund) was made in order to reflect the wishes of the Executive to keep the Designated Loan Fund at £1,000,000.

5. FIXED ASSET INVESTMENTS

Commercial
Investments
at market
value
Programme
related
investments
at cost
£
£
At 1 January 2020
6,856,470
253,055
Additions within managed portfolio
1,153,376
-
Disposals within managed portfolio
(1,202,418)
-
Cash recycled in managed portfolio
49,042
Realised (deficits) absorbed in managed portfolio
(268,751)
Charges borne within managed portfolio
(36,042)
Cash withdrawn from managed portfolio
(75,000)
Net surplus (deficit) on revaluation
477,343
-
Transfers to current asset investments
-
(65,183)
At 31 December 2020
6,954,020
187,872
Commercial investments at market value include
cash held with investments as part of a managed
portfolio
170,460
-
Commercial investments at original cost
Henderson New Star
Quoted Securities Portfolio managed by Investec		 Total 2020
£
7,109,525
1,153,376
(1,202,418)
49,042
(268,751)
(36,042)
(75,000)
477,343
(65,183)
7,141,892
170,460
2020
£
-
6,093,363
6,093,363		 Total 2019
£
6,054,799
6,625,132
(5,752,415)
225,642
(43,633)
7,109,525
231,096
2019
£
75,697
6,291,912
6,367,609		 Total 2019
£
6,054,799
6,625,132
(5,752,415)
225,642
(43,633)
7,109,525
231,096
2019
£
75,697
6,291,912
6,367,609
7,109,525
231,096
2019
£
75,697
6,291,912
6,367,609

Programme related investments are loans made to Churches for building works to Churches and Church manses. All investments are held within the UK.

6. CURRENT ASSET INVESTMENTS

Programme
related
investments
at cost
2020
£
At 1 January 2020
49,633
Transfers from fixed asset investments
65,183
Disposals
(73,183)
At 31 December 2020
41,633
DEBTORS
2020
£
Accrued dividend income
39,293
Accrued redundant chapel proceeds
425,000
Donations receiveable
273
464,566		 2019
£
50,413
43,633
(44,413)
49,633
2019
£
48,924
-
-
48,924

7. DEBTORS

16

PARTICULAR BAPTIST FUND

Notes to the Financial Statements For the year ended 31 December 2020

8. CREDITORS

Notes to the Financial Statements
For theyear ended 31 December 2020
8. CREDITORS
2020
£		 2019
£
Amounts falling due within one year:
Constructive Obligations
Project Grants:
Ebbsfleet
Mission Enabler
Special Project Grants
Folkestone
Pastoral Support Grants
Aberdeen
Arann
Chingford
Didcot
Grangetown
Melksham
Noddfa
Oldham
Portsmouth
Spen Valley
Wakefield
Wick
Educational Grants
Other taxes and social security
Accruals
Amounts falling due after one year:
Project Grants:
Ebbsfleet
Mission Enabler
Pastoral Support Grants
Aberdeen
Chingford
Didcot
Grangetown
Melksham
Noddfa
Oldham
Portsmouth
Spen Valley
Wakefield
Wick
Educational Grants		 8,750
7,500
5,000
25,500
2,892
-
15,875
7,350
10,140
11,460
4,900
12,500
6,800
4,875
5,400
91,767
220,709
125
19,631
240,465
-
13,125
44,625
-
32,958
-
12,675
7,640
-
-
12,500
-
-
27,500
151,023		 15,000
7,500
-
-
8,183
9,600
-
29,400
3,300
11,460
8,400
15,000
15,200
19,500
21,600
96,338
260,481
-
15,038
275,519
8,750
20,625
-
19,200
-
7,350
-
19,100
4,900
12,500
-
4,875
5,400
47,650
150,350

GRANTS AGREED BUT NOT YET QUANTIFIABLE

As previously reported, during 2015 the Fund agreed to grant two further Pastoral Support Grants for Ackhill Baptist Church and Formby Baptist Church. These grants did not become quantifiable during the past year and, having regard to potential changes in circumstances during the lengthy period which has elapsed since they were awarded, the Fund has decided any grants to these beneficiaries would be subject to a new application and no obligations currently remain to these beneficiaries.

SPECIAL PROJECTS

Ebbsfleet is a new style Church project in a new town within the Thames Gateway in North Kent led by the Association of Grace Baptist Churches (South East). The project started in 2012 and the Fund’s support is reviewed every two years. The Fund confirmed its fourth period of support in 2018. The total amount of grant, after the review, allocated is £150,000 of which £141,250 had been paid as at 31 December 2020 (2019: £126,250). £8,750 remains to be paid in in 2021. There will be no further grant allocated to this project.

17

PARTICULAR BAPTIST FUND

Notes to the Financial Statements For the year ended 31 December 2020

Mission Enabler is a project in Pembrokeshire, Wales led by Pembrokeshire Baptist Association (English Wing) to encourage and enable local communities to engage in local mission activities. The project started in October 2013 for three years and support was agreed for another three years in 2016. The grant was reviewed in 2019 and support was agreed for the remaining 4 years of the maximum 10 year term of this grant. The total amount of grant allocated is £73,500 of which £52,875 has been paid as at 31 December 2020 (2019: £45,375) and £7,500 remains to be paid in 2021, £7,500 in 2022, and £5,625 in 2023.

9. PASTORAL SUPPORT GRANTS

Since the inception of this Grant, awards now exceeding £1M have been allocated and will be paid as follows:

Year Paid up to Paid up to Total
commenced 31 Dec 2020 Due 2021 Due 2022 Due 2023 allocated
£ £ £ £ £
Aberdeen 2020 6,375 25,500 25,500 19,125 76,500
Arann 2014 137,566 2,183 139,749
Chelmondiston 2012 69,235 69,235
Chingford 2014 73,786 73,786
Didcot 2020 4,890 15,876 21,972 10,986 53,724
Grangetown 2018 80,850 7,350 88,200
Manchester 2014 55,386 55,386
Melksham 2017 47,205 10,140 10,140 2,535 70,020
Noddfa 2016 72,880 11,460 7,640 91,980
Oldham 2018 20,300 4,900 25,200
Portsmouth 2015 95,500 12,500 108,000
Southampton 2011 92,266 92,266
Spen Valley 2017 71,600 6,800 7,500 5,000 90,900
Wakefield 2018 45,110 4,875 49,985
Wick 2018 59,400 5,400 64,800
Total allocated 1,149,731

10. FUND MOVEMENTS In 2020 the movements of the various Funds in the year were as follows:

General
Fund
Brought forward reserves
3,477,568
Income
591,463
Expenditure
(349,739)
Transfers between Funds
43,990
Investment gains/(losses)
186,274
Total carried forward reserves
3,949,556
In 2019 the movements of the various Funds in
Brought forward reserves
2,558,030
Income
334,605
Expenditure
(272,096)
Transfers between Funds
168,089
Investment gains/(losses)
688,940
Total carried forward reserves
3,477,568		 Loan
Fund
1,000,000
12,967
(3,682)
(43,990)
34,705
1,000,000
the year wer
1,000,000
-
-
(168,089)
168,089
1,000,000		 Welsh
Mission
Fund
Cambourne
Fund
198,572
388,022
2,791
-
(8,874)
-
-
-
11,965
-
204,454
388,022
e as follows:
196,294
-
22,541
388,022
(64,380)
-
-
-
44,117
-
198,572
388,022		 Endowment
Funds
2,186,855
1
-
-
(24,352)
2,162,504
1,902,928
500
-
(58,900)
342,327
2,186,855		 Bathford Fund
59,192
(30,420)
-
-
28,772
292
-
-
58,900
-
59,192		 Total
7,310,209
607,222
(392,715)
-
208,592
7,733,308
5,657,544
745,668
(336,476)
-
1,243,473
7,310,209

18

PARTICULAR BAPTIST FUND

Notes to the Financial Statements For the year ended 31 December 2020

Unrestricted Funds.

These comprise those Funds which the Executive is free to use in accordance with the charitable objects of the Fund and are:

Endowment Fund.

Income arising on the general endowment Fund can be used in accordance with the objects of the charity and is included as unrestricted income. Any capital gains or losses arising on general endowment Funds form part of the endowment Fund. When churches become member churches of the fund they are required to make a capital contribution to the Fund and these contributions are added to the Endowment Fund.

Bathford Fund

Income arising on the Bathford Fund can be used in accordance with the objects of the charity for the benefit of SW England and will be included as restricted income. Any capital gains or losses arising on the Bathford Funds form part of the Fund. The income derived from the Bathford Fund being very modest, during 2018 the Executive resolved to apply the capital of the fund as if it were income. During 2019 the resolution was duly notified to the Charity Commission and no objection received. The restriction that the Bathford Fund should be used for the benefit of SW England remains. Accordingly the whole of the Fund is now accounted for as restricted income. The Executive intend to use it in connection with projects located as near as possible to Bathford, so when the Home Mission Pastoral Grant to Melksham, just a few miles from Bathford, was renewed in 2020, this was funded from the Bathford Fund.

11. FINANCIAL COMMITMENTS

At 31 December 2020 there were no programme related investments authorised but not yet taken up (2019: £0).

12. RELATED PARTY TRANSACTIONS

Margaret O’Mara and David Chapman were also Trustees of the Association of Grace Baptist Churches (South East). The Association of Grace Baptist Churches (South East) leads the Ebbsfleet project. The Particular Baptist Fund is supporting this project financially. Details of the financial support given can be seen in Note 7 under special projects.

David Chapman is an Elder at Akeman Street Baptist Church, Tring. The church was granted an interest free loan of £50,000 towards the redevelopment of the church. The loan was drawn in 2016 and will be repayable over the next 10 years on the Fund’s standard terms.

There were no other related party transactions in the year.

13. ADMINISTRATION

The Fund is an unincorporated charity, governed by a Charity Commission Scheme dated 27 August 2004. The address of the registered office is 5 Sandalwood Road Westbury Wiltshire BA13 3UP.

19