Company registration number: 00209503 Charity registration number: 247113
North Western Baptist Association
(A company limited by guarantee)
Annual Report and Financial Statements
for the Year Ended 31 December 2020
North Western Baptist Association
Contents
| Reference and Administrative Details | 1 |
|---|---|
| Trustees' Report | 2 to 8 |
| Independent Examiner's Report | 9 |
| Statement of Financial Activities | 10 |
| Balance Sheet | 11 |
| Notes to the Financial Statements | 12 to 21 |
North Western Baptist Association
Reference and Administrative Details
Trustees Reverend G Ayoma Mrs K Banks-Lyon Reverend J Bradbury Reverend E Cirtina Reverend P Jump Mrs D Landriau Mrs S Nutter Reverend S Oxley Mr R Pengelly - Phillips Ms L Quigley Secretary Mr M R Heaton Principal Office Independent Methodist Resource Centre Fleet Street Pemberton Wigan WN5 0DS Company Registration Number 00209503 Charity Registration Number 247113 Bankers Unity Trust Bank Four Brindley Place Birmingham B1 2JB Independent Examiner Barretts 22 Union Street Newton Abbott Devon TQ12 2JS
Page 1
North Western Baptist Association
Trustees' Report
The trustees, who are directors for the purposes of company law, present the annual report together with the financial statements of the charitable company for the year ended 31 December 2020.
Objectives and activities
Objects and aims
The objects of the charity as set out in its Memorandum of Association are:
The advancement of the Christian religion especially by the means of and in accordance with the principles of the Baptist denomination as set out for the time being in the Declaration of Principle of the Baptist Union of Great Britain.
Report on objectives for 2020
When the trustees approved the objectives for 2020, few could have envisaged the sequence of events that would follow, with the impact of the worldwide Covid-19 pandemic. While this report seeks to summarise progress against those original objectives, it should come as no surprise that far fewer of these were met than in previous years, and a number of unplanned initiatives were introduced. Not to have done so, would itself be a cause for concern, as it would indicate that NWBA was unable to adjust to the significantly changed realities. However, although the detail of many of our plans significantly changed – our overall sense of purpose remained – this is reflected in the fact that significant progress way made against many of the objectives that follow, albeit in ways quite different from what was originally envisaged.
Alongside reporting on these established objectives, the trustees were presented with a Covd-19 impact assessment, and a regular update of revised activities and objectives in the light of emerging events.
Enabling Ministry
Supporting churches and ministers through MR, settlement, NAM and Church Life generally. - MET
Team members participated in the operation and development of revised processes to manage these during the pandemic. This largely meant shifting all meetings online and supporting churches in engaging together via online platforms. Arrangements were made for NAM’s who were unable to settle through the usual channels, and in one or two cases, churches and ministers were supported in seeking financial support to mitigate some of the difficulties that were encountered.
Engaging with BUGB Continuing Ministry Development Proposals to enable regional implementation MET
These have now been launched. NWBA Team members have been scheduled to attend online CMD training and work has begun on providing a catalogue of available CMD resources. Initial plans were set for a monthly online CMD gathering.
Supporting Pioneer and Sector ministry - MET
The pioneer network was successfully shifted to an online gathering and has been sustained throughout the year.
Continuing to invest in our leadership development programme - PARTIALLY MET
Only one of the three planned additional hubs has been established. It has proved difficult to maintain overall momentum of this through the challenges of 2020. This remains a priority and will continue to be developed as part of our response to the national CMD initiative.
Page 2
North Western Baptist Association
Trustees' Report
Local Leadership
Particularly seeking to benefit from the appointment of an administrator for the Latchford Centre, consolidate and develop work being done in training and development. – PARTIALLY MET
The Latchford Learning group was successfully re-established as an online gathering and has continued through the year. It has not been possible or feasible to develop this further in 2020 though initial plans were laid for online events in 2021.
Ensuring the ongoing delivery of {Disciple} Young Leaders' Programme for young adults based on around our annual youth weekend. – PARTIALLY MET
Existing participants in the {Disciple} continued to engage with the programme online, but it proved impossible and unrealistic to seek to develop a new cohort of participants.
The Impact youth weekend was successfully offered as an online gathering. It did not attract the usual numbers, but did include a number who had not previously been attracted by the residential events.
Many Youth Leaders reported significant difficulties in maintaining local church youth programmes through the pandemic. There will be a need to re-group and re-appraise our youthwork provision going forward, but we believe that the [Disciple] programme will remain its core.
Carrying forward the work begun in 2019 to explore how to better equip those who provide pastoral care within the local church. – NOT MET
Little direct progress was made on this, though we have noted that the shift to online activities has enabled greater participation in retreats and other informal support gatherings.
Purposeful relationship
Continuing to develop the "hub church network" - working with around 12 larger churches to intentionally explore their role in supporting others in mission and ministry. – NOT MET
The planned event for March 2020 was cancelled and little progress in developing the group has been possible. However, informal conversations indicate that the core vision remains, and there have been some positive signs of churches exploring this model in relation to online provision and resourcing.
Exploring the outcomes of the “church audit” to explore where and how further relationships are needed and can be fostered. – PARTIALLY MET
There has not been the capacity to undertake any formal audit, but significant steps have been taken to establish and maintain dynamic support networks led by the Church Life Team. This has largely needed to be bespoke and in reaction to changing events.
Particularly focus on communications and how we better encourage churches to engage with NWBA and each other. MET
NWBA has probably invested more time and energy into communication in 2020 than in any previous year. This though has been largely reactive as events have unfolded. There has been significant learning in this area and we are well positioned to engage in a more proactive approach once this becomes possible.
Examples of new innovations include the NWBA YouTube channel which attracted 64,200 views, 10,300 viewing hours and 439 subscribers, using Zoom to provide online retreats and training and a vastly increased resources section on the website. We have to acknowledge that this has been largely reactive to immediate circumstances.
Page 3
North Western Baptist Association
Trustees' Report
Meaningful Change
Continue a programme of shared learning and research within the MMD team, to explore what resources might be of benefit to local churches seeking and experiencing change. NOT MET
No real progress was made and there is a need to re-asses this objective in the light of how change has been somewhat imposed on churches and leaders.
Continue to invest in supporting and nurturing new relationships and expressions of mission and ministry, particularly seeking to help local ideas be better recognised and affirmed. MET
Circumstances forced significant change in respect of new expressions of mission. It has been encouraging to note that many churches have not just recognised this as a necessary reaction but are considering how this will impact our approach to church life and associating in the years ahead.
Manage a further visit from BUGB president to explore “Where do we grow from here?” with specific focus on considering how to take things forward. NOT MET
This event was cancelled, though discussions have continued with Revd. Ken Benjamin around working with NWBA churches in future years. (Ken is booked as Ministers Conference speaker for 2022)
Engage further with incoming BU President’s vision for intentional outreach. (2020/21) PARTIALLY MET
NWBA hosted a “virtual” president’s visit. This included participation in the NWBA online Sunday gathering and also several churches using a pre-recorded sermon in their own online services.
Build on work done through Seventy-Two Disciple Forming Communities etc. to better engage churches particularly exploring the “Re-Imagine” approach and a similar programme currently offered by BU Scotland. NOT MET
An initial meeting with BU Scotland took place in January 2020 – further plans for April 2020 were cancelled – no further progress has been made.
Providing Resources
Continue the provision of recognised safeguarding training for NWBA churches in accord with the National Safeguarding Group. MET
NWBA team members have been working with BUGB to develop an online training provision which will be introduced in early 2021.
Develop and provide the resource elements of the objectives above MET
Although somewhat reactive – NWBA has been able to produce and curate a significant catalogue of online resources for preaching, reflection and worship.
Deliver outstanding resource objectives from 2019. PARTIALLY MET
The planned “Help I’m a Deacon” workshop took place at Latchford on 8th February. All other events were cancelled.
Page 4
North Western Baptist Association
Trustees' Report
COVID-19 Impact
Covid-19 has a significant impact on the activities of NWBA but does not appear to offer any serious threat to our viability or sustainability. The significant changes that were introduced and the speed with which these were implemented would signal that NWBA has an effective oversight and operational structure that is able to identify and adapt to change.
We are saddened that a number of faithful and much-loved servants of our churches have lost their lives through this pandemic – we thank God for their lives and the hope that is ours in Christ. We can though report that there has been significant feedback from individuals and churches indicating that if anything NWBA has become far more connected and appreciated by the churches we serve. Despite the immediate tragedies, there is reason to be optimistic about our future.
NWBA Objectives for 2021
These objectives have been identified at a time when our world continues to be affected by the Covid-19 pandemic, and it remains unclear as to how and when realities beyond the control of NWBA will change. The key concern of the trustees is not so much to predict how and when certain outcomes will be achieved, but to identify the phases that NWBA needs to travel through and support our member churches in encountering. These are as follows:
Continuation of existing support
The trustees recognise the significant work that has been done to adapt to changing circumstances, and see the immediate task for 2021 to continue supporting churches through this. This will require to provision of certain key activities and services through online and other channels, and also working directly with churches to help them navigate ongoing challenges. The duration and precise nature of this response is largely dependant upon external circumstances over which we have little direct control.
Recovery
We do not believe that the impact of recent circumstances on churches, our Association, the communities they serve and the individuals who comprise them, should be underestimated. It will be important that this is recognised and the natural tendency to simply seek to “reset” once events have passed, is avoided. NWBA will have a role in recognising the impact of the pandemic on itself, the churches we serve, helping churches identify the emerging needs of their communities and helping them consider their role in responding to these. This may include enabling communities to mourn the loss of people and opportunities that have been taken from them; supporting key-workers who have been impacted by the continual demands made on them and helping address divisions that may have emerged through how different groups and individuals have responded to recent events.
Consolidation
Recovery is about recognising the personal and corporate cost of recent events, and this is likely to be followed by a period of reflection and learning. NWBA will seek to consider how its own role has changed and how to benefit from exposure to new approaches and technologies. This will also require engagement with churches to identify their ongoing support needs and what response might be required of NWBA. We should remember that the Association is not something distinct from its member churches, but it is comprised of them - so this is not simply a matter of discerning what NWBA might offer to local congregations, but what they might offer to our shared life as an Association. As resources, challenges and opportunities are identified, it is also important to work with churches to recognise the impact on wider society and its implications for our mission and ministry.
Page 5
North Western Baptist Association
Trustees' Report
Response
We envisage reaching a point where NWBA will return to largely define its objectives through strategic planning, but recognise that this is unlikely to occur in 2021. This is not to say that NWBA will not set any strategic objectives for the year, but these are offered in recognition that their implementation will need to take full account of the journey outlined above. Within this framework, NWBA will work towards the following objectives in 2021:
Assessing the impact of our Covid-19 response and identifying how this should shape our future direction and priorities.
Sustaining networks of support for ministers and leaders based on geographic location and specialisms in ministry.
Develop our partnership with Renew Wellbeing to support churches already exploring this ministry, and the part it might play in helping churches support their communities going forward.
Introducing a regular programme of monthly learning events as part of the development of the Latchford Centre.
Working with BUGB to promote and establish the vision for Ministerial Development, including seeking to grow our existing provision in this area.
Re-introducing regular safeguarding training, maximising the potential of online learning opportunities.
Offer an online learning event for churches considering the transition to Charitable Incorporated Organisations. (CIO)
Exploring how NWBA might work in partnership with BUGB to provide key professional services (legal support, book-keeping etc.) to churches struggling to identify these skills within their existing congregation.
FINANCIAL REVIEW
The Charity's main source of annual recurring income is a grant from the Baptist Union of Great Britain. BUGB income consists of Home Mission giving, legacies and other income. Our grant is a predetermined percentage of total income of BUGB in the financial year. An estimation of the total grant is made at the start of the year and adjusted on completion of the year. Total income for 2020 for BUGB was lower than forecast, and our share as a result is overpaid by £39,987. This is shown as a liability in our accounts for this year.
Other sources of income include individual and church donations and the sale proceeds of church buildings.
Due to the unpredictibility of our income sources, the trustees of NWBA are looking at alternative ways to fund our activities and reduce reliance on our main funding source.
Page 6
North Western Baptist Association
Trustees' Report
Notwithstanding the clawback, and the deficit in the year, we have been able to draw on previous years reserves. Reserves are stated below.
Expenditure in the year includes £147,167 of grant payments to churches and projects and continued investing in staffing, mainly part time posts covering a number of different areas of work.
Funds
Unrestricted funds
The Charity's unrestricted reserve consists of a general fund and four designated funds, which at the year-end amounted to £832,675 (2019 £877,614) which the Trustees have allocated as follows:
General fund £266,222 Social investment Property £203,275 One year's running costs £200,000 East Lancashire fund £91,278 Pension reserve £71,900
The pension reserve is to cover the calculated deficit that would be due to the Baptist Ministers Pension Fund for NWBA current and former employees.
Restricted funds
There are three restricted funds:
Ministerial Emergency Fund:
This is funded by donations and is used to enable study grants and financial support for ministers in need. Grants of £296 (2019 - £1,200) have been made during the year.
Merseyside Fund
A donation of £80,000 was given in 2011 from the sale proceeds of Cornerstone Baptist Church for work in Merseyside.
The remaining balance of £8,970 has been utilised in the year.
Skelmersdale
Grants provided for this refurbishment were administered by NWBA.
Investment Powers and Restrictions
The Association uses the services of an investment manager for both Association and Church investments. The policy is to maximise return on investment within a secure base, on a sound ethical platform.
Investment performance achieved against investment objectives set
NWBA seeks to gain appropriate returns on investments within the following criteria: Financial and equity investments should be made within an ethical framework;
Where possible capital investments, particularly housing stock should be useable to further the mission purposes of the Association.
The investment performance achieved against the objectives set was considered satisfactory.
Page 7
North Western Baptist Association
Trustees' Report
Loans and grants
The Association no longer makes loans available to churches due to changes in legislation. No loans are outstanding at the year end.
In addition to Home Mission grant funding, we do on occasion award grants to churches on application for Mission and Equipment and to cover deficits on the Baptist Ministers Pension Fund (defined benefit scheme).
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
The Company is governed by its Articles of Association dated 28th March 2019, as approved at the Special General Meeting of member churches.
Supporting the Articles are procedures on electing trustees.
Trustees serve for up to a three year period and a maximum nine years.
Further sub committees are appointed when and if required by Council for specific purposes.
Annual General Meeting
Due to COVID we were not able to hold an AGM in 2020; however we are scheduled to hold one in April 2021.
Risk Assessment
The Trustees have introduced a risk management process to assess business risks and implement systems to mitigate these risks.
The procedures will be periodically reviewed to ensure that they still meet the needs of the Charity.
Custodian trusteeship
The NWBA is a Custodian Trustee for many churches in its membership. It holds property, stocks and shares and bank accounts in its position as trustee. Deeds to properties are held with the Baptist Union Corporation, other assets are held separately from Association own assets.
Small companies provision statement
This report has been prepared in accordance with the small companies regime under the Companies Act 2006.
The annual report was approved by the trustees of the charity on 20 May 2021 and signed on its behalf by:
......................................... Reverend P Jump Trustee
Page 8
North Western Baptist Association
Independent Examiner's Report to the trustees of North Western Baptist Association
I report to the charity trustees on my examination of the accounts of the charity for the year ended 31 December 2020 which are set out on pages 10 to 21.
Respective responsibilities of trustees and examiner
As the charity’s trustees of North Western Baptist Association (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).
Having satisfied myself that the accounts of North Western Baptist Association are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner’s statement
Since North Western Baptist Association's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the ICAEW and ACIE, which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
-
accounting records were not kept in respect of North Western Baptist Association as required by section 386 of the 2006 Act; or
-
the accounts do not accord with those records; or
-
the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair view' which is not a matter considered as part of an independent examination; or
-
the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)].
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
...................................... Ian Barrett FCA FCIE Barretts 22 Union Street Newton Abbott Devon TQ12 2JS
23 August 2021
Page 9
North Western Baptist Association
Statement of Financial Activities for the Year Ended 31 December 2020 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)
| Note Income: Donations 3 Charitable activities 4 Investment income 5 Total income Expenditure on: Raising funds 6 Charitable activities 7 Total expenditure Net gains on investments Gains/losses on investment assets Net (expenditure)/income Transfers between funds Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward 16 |
Unrestricted funds £ 348,593 12,256 765 361,614 (6,974) (430,100) (437,074) 21,551 - (53,909) 8,970 (44,939) 877,614 832,675 |
Restricted funds £ 11,296 - - 11,296 - (11,240) (11,240) - - 56 (8,970) (8,914) 12,967 4,053 |
Total 2020 £ 359,889 12,256 765 372,910 (6,974) (441,340) (448,314) 21,551 - (53,853) - (53,853) 890,581 836,728 |
Unrestricted funds £ 383,583 13,819 1,293 398,695 (8,769) (428,125) (436,894) 17,625 64,330 43,756 - 43,756 833,858 877,614 |
Restricted funds £ 180 - - 180 - (87,653) (87,653) - - (87,473) - (87,473) 100,440 12,967 |
Total 2019 £ 383,763 13,819 1,293 |
|---|---|---|---|---|---|---|
| 398,875 | ||||||
| (8,769) (515,778) |
||||||
| (524,547) 17,625 64,330 |
||||||
| (43,717) - |
||||||
| (43,717) 934,298 |
||||||
| 890,581 |
All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2020 is shown in note 16.
Page 10
North Western Baptist Association
(Registration number: 00209503) Balance Sheet as at 31 December 2020
| Note Fixed assets Other investments 13 Social investments 13 Current assets Debtors 14 Cash at bank and in hand Creditors: Amounts falling due within one year 15 Net current assets Net assets Funds of the charity: Restricted income funds Restricted funds Unrestricted income funds Unrestricted funds Total funds 16 |
2020 £ 621,611 203,275 824,886 - 55,014 55,014 (43,172) 11,842 836,728 4,053 832,675 836,728 |
2019 £ 656,476 203,676 |
|---|---|---|
| 860,152 | ||
| 3,191 33,128 |
||
| 36,319 (5,890) |
||
| 30,429 | ||
| 890,581 | ||
| 12,967 877,614 |
||
| 890,581 |
For the financial year ending 31 December 2020 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
-
The members have not required the charity to obtain an audit of its accounts for the year in question in accordance with section 476; and
-
The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements on pages 10 to 21 were approved by the trustees, and authorised for issue on 20 May 2021 and signed on their behalf by:
......................................... Reverend P Jump Trustee
Page 11
North Western Baptist Association
Notes to the Financial Statements for the Year Ended 31 December 2020
1 Charity status
The charity is limited by guarantee, incorporated in , and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exceeding £10 towards the assets of the charity in the event of liquidation.
The address of its registered office is: Independent Methodist Resource Centre Fleet Street Pemberton Wigan WN5 0DS
These financial statements were authorised for issue by the trustees on 20 May 2021.
2 Accounting policies
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). They also comply with the Companies Act 2006 and Charities Act 2011.
Basis of preparation
North Western Baptist Association meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
Going concern
The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern nor any significant areas of uncertainty that affect the carrying value of assets held by the charity.
Exemption from preparing a cash flow statement
The charity is exempt from preparing a cash flow statement..
Income and endowments
All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of the income receivable can be measured reliably.
Page 12
North Western Baptist Association
Notes to the Financial Statements for the Year Ended 31 December 2020
Donations
Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance by the charity before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that these conditions will be fulfilled in the reporting period.
Grants receivable
Grants are recognised when the charity has an entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant and are yet to be met, the income is recognised as a liability and included on the balance sheet as deferred income to be released.
Expenditure
All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.
Raising funds
These are costs incurred in attracting voluntary income, the management of investments and those incurred in trading activities that raise funds.
Charitable activities
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
Grant provisions
Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty about either the timing of the grant or the amount of grant payable.
Governance costs
These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees’s meetings and reimbursed expenses.
Taxation
The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company 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 to charitable purposes.
Page 13
North Western Baptist Association
Notes to the Financial Statements for the Year Ended 31 December 2020
Programme related investments
Programme related investments are made in furtherance of the charity's objects and any investment return is secondary to the charitable purpose supported by the investment. Such investments are included at their cost. Any loss or impairment arising from such investments is charged as part of charitable activities within the Statement of Financial Activities.
Fixed asset investments
Fixed asset investments, other than programme related investments, are included at market value at the balance sheet date. Realised gains and losses on investments are calculated as the difference between sales proceeds and their market value at the start of the year, or their subsequent cost, and are charged or credited to the Statement of Financial Activities in the period of disposal.
Unrealised gains and losses represent the movement in market values during the year and are credited or charged to the Statement of Financial Activities based on the market value at the year end.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables.
Fund structure
Unrestricted income funds are general funds that are available for use at the trustees's discretion in furtherance of the objectives of the charity.
Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.
Pensions and other post retirement obligations
The charity operates a defined contribution pension scheme which is a pension plan under which fixed contributions are paid into a pension fund and the charity has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised in the Statement of Financial Activities when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Page 14
North Western Baptist Association
Notes to the Financial Statements for the Year Ended 31 December 2020
3 Income from donations
| Donations Grants Other income Grants received, included in the above, ar Baptist Union of Great Britian Other grants |
Unrestricted funds General £ 24,548 207,565 116,480 348,593 e as follows: 207,565 - 207,565 |
Restricted funds £ - - 11,296 11,296 - - - |
Total 2020 £ 24,548 207,565 127,776 359,889 207,565 - 207,565 |
Total 2019 £ 27,948 272,110 83,705 |
|---|---|---|---|---|
| 383,763 | ||||
| 267,610 4,500 |
||||
| 272,110 |
4 Income from charitable activities
| Youth activities - resources Ministers conference 5 Investment income Unlisted investment income Listed investment income Interest receivable Social Investments loans |
Unrestricted funds General £ 2,148 10,108 12,256 Unrestricted funds General £ 200 558 7 765 |
Total 2020 £ 2,148 10,108 12,256 Total 2020 £ 200 558 7 765 |
Total 2019 £ 559 13,260 |
|---|---|---|---|
| 13,819 | |||
| Total 2019 £ 200 1,068 25 |
|||
| 1,293 |
Page 15
North Western Baptist Association
Notes to the Financial Statements for the Year Ended 31 December 2020
6 Expenditure on raising funds
a) Investment management costs
| Portfolio management 7 Expenditure on charitable activities Home Mission Grant NWBA Grants 8 Net incoming/outgoing resources Net outgoing resources for the year include: Independent Examiner’s remuneration |
Unrestricted funds General £ 6,974 6,974 Unrestricted funds General £ 131,367 15,800 147,167 |
Total 2020 £ 6,974 6,974 Total 2020 £ 131,367 15,800 147,167 2020 £ 960 |
Total 2019 £ 8,769 |
|---|---|---|---|
| 8,769 | |||
| Total 2019 £ 124,168 52,568 |
|||
| 176,736 | |||
| 2019 £ 750 |
Independent Examiner’s remuneration
9 Trustees remuneration and expenses
Directors salaries of £36,288 (2019: £32,829) were paid during the year. These are authorised by the Memorandum and Articles.
Housing payments of £11,397 (2019: £10,833) and travelling and other expenses of £4,384 (2019: £15,515) were paid to the Regional Ministers.
Page 16
North Western Baptist Association
Notes to the Financial Statements for the Year Ended 31 December 2020
10 Staff costs
The aggregate payroll costs were as follows:
| The aggregate payroll costs were as follows: | ||
|---|---|---|
| Staff costs during the year were: Wages and salaries Social security costs Pension costs |
2020 £ 171,019 11,870 15,229 198,118 |
2019 £ 158,509 9,240 14,431 |
| 182,180 |
The monthly average number of persons (including senior management team) employed by the charity during the year expressed as full time equivalents was as follows:
| Mission and evangelism Administration |
2020 No 9 1 10 |
2019 No 9 1 |
|---|---|---|
| 10 |
No employee received emoluments of more than £60,000 during the year.
11 Taxation
The charity is a registered charity and is therefore exempt from taxation.
Page 17
North Western Baptist Association
Notes to the Financial Statements for the Year Ended 31 December 2020
12 Fixed asset investments
| Cost At 1 January 2020 Revaluation Additions Disposals At 31 December 2020 Net book value At 31 December 2020 At 31 December 2019 |
Listed investments £ 652,471 21,551 50,558 (106,974) 617,606 617,606 652,471 |
Unlisted investments £ 4,005 - - - 4,005 4,005 4,005 |
Total £ 656,476 21,551 50,558 (106,974) |
|---|---|---|---|
| 621,611 | |||
| 621,611 | |||
| 656,476 |
13 Programme related investments
| Cost At 1 January 2020 Disposals At 31 December 2020 Provision At 31 December 2020 Net book value At 31 December 2020 At 31 December 2019 |
Loans £ 401 (401) - - - 401 |
Other investments £ 203,275 - 203,275 - 203,275 203,275 |
Total £ 203,676 (401) |
|---|---|---|---|
| 203,275 - |
|||
| 203,275 | |||
| 203,676 |
Page 18
North Western Baptist Association
Notes to the Financial Statements for the Year Ended 31 December 2020
14 Debtors
| Other debtors 15 Creditors Accruals 16 Funds Unrestricted funds General Fund Social investments - property Social investments - loans One year's running costs East Lancashire Fund Pension reserve Restricted funds Ministerial Emergency Fund Merseyside Fund Skelmersdale Church refurbishment Total funds |
Balance at 1 January 2020 £ 302,133 203,275 400 200,000 102,006 69,800 877,614 3,997 8,970 - 12,967 890,581 |
Incoming resources £ 361,607 - 7 - - - 361,614 296 - 11,000 11,296 372,910 |
Resources expended £ (426,346) - - - (10,728) - (437,074) (240) - (11,000) (11,240) (448,314) |
2020 £ - 2020 £ 43,172 Transfers £ Other recognised gains/(losses) £ 7,277 21,551 - - (407) - - - - - 2,100 - 8,970 21,551 - - (8,970) - - - (8,970) - - 21,551 |
2019 £ 3,191 |
|
|---|---|---|---|---|---|---|
| 2019 £ 5,890 |
||||||
| Balance at 31 December 2020 £ 266,222 203,275 - 200,000 91,278 71,900 |
||||||
| 832,675 | ||||||
| 4,053 - - |
||||||
| 4,053 | ||||||
| 836,728 |
Page 19
North Western Baptist Association
Notes to the Financial Statements for the Year Ended 31 December 2020
| Unrestricted funds General Fund Social investments - property Social investments - loans One year's running costs East Lancashire Fund Pension reserve Restricted funds Ministerial Emergency Fund Merseyside Fund Sale of Fishergate Church Preston Skelmersdale Church refurbishment Total funds |
Balance at 1 January 2019 £ 199,088 203,275 910 200,000 127,185 103,400 833,858 5,017 22,082 52,568 20,773 100,440 934,298 |
Incoming resources £ 398,670 - 25 - - - 398,695 180 - - - 180 398,875 |
Resources expended £ (411,715) - - - (25,179) - (436,894) (1,200) (13,112) (52,568) (20,773) (87,653) (524,547) |
Transfers £ Other recognised gains/(losses) £ 34,135 81,955 - - (535) - - - - - (33,600) - - 81,955 - - - - - - - - - - - 81,955 |
Balance at 31 December 2019 £ 302,133 203,275 400 200,000 102,006 69,800 |
|---|---|---|---|---|---|
| 877,614 | |||||
| 3,997 8,970 - - |
|||||
| 12,967 | |||||
| 890,581 |
17 Related party transactions
There were no related party transactions in the year, except as disclosed in Note 9.
18 Baptist pension scheme
The Association is an employer participating in the Baptist Pension Scheme (BPS). This is a separate legal entity administered by the Pension Trustee (Baptist Pension Trust Limited).
The Ministers employed by the Association are eligible to join the Scheme.
From January 2012, pension provision has been made through the Defined Contribution plan within the BPS. Other employees pension provision is with companies external to the BPS.
Benefits for one employee (2019: 1) in respect of service prior to 1st January 2012 are provided through the Defined Benefit (DB) Plan within the BPS. The main benefits: a defined benefit pension of 1/80th of Final Minimum Pensionable Income for each year of Pensionable Service, together with additional pension in respect of premiums paid on pensionable income in excess of minimum pensionable income. The BPS closed to future accrual of defined benefits on 31st December 2011.
Page 20
North Western Baptist Association
Notes to the Financial Statements for the Year Ended 31 December 2020
A formal valuation of the DB plan relating to all employers was performed at 31 December 2019 by a professionally qualified Actuary using the Projected Unit Method. The market value of DB Plan assets at the valuation date was £298m.
The valuation of the DB plan revealed a deficit of assets compared with the value of liabilities of £18m (equivalent to a past funding level of 94%). As a result of the valuation the standard rate of deficiency contributions payable by churches and other employers involved in the DB Plan would remain at 12% of pensionable income. The recovery plan envisages deficiency contributions continuing until 30 June 2026.
The expenditure for the year represents the employer contributions payable.
Designated fund
At the year end date the BPS has calculated an estimated employer debt of the Association of £71,900 assuming cessation on that date. A designated fund has been established to cover this estimated debt. The assumptions on which this calculation is based are not directly comparable with the above.
Page 21