The Yorkshire Baptist Association (Incorporated)
Company Number: 00181581 Charity Number: 247173
THE YORKSHIRE BAPTIST ASSOCIATION (INCORPORATED)
(A Company Limited by Guarantee)
TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
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Contents
Charity Information .......................................................................................................... 1 Report of the Trustees ...................................................................................................... 2 Independent Auditor’s Report ............................................................................................ 8 Statement of Financial Activities ....................................................................................... 12 Balance Sheet ............................................................................................................... 13 Statement of Cash Flows ................................................................................................. 14 Notes to the Financial Statements .................................................................................... 15
Charity Information The Yorkshire Baptist Association (Incorporated)
The trustees who are also directors of the charity for the purposes of the Companies Act 2006, submit their report and financial statements for the year ended 31 December 2021.
These financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019) as detailed in the accounting policies.
Reference and administrative details of the charity, its trustees and advisors
Charity name The Yorkshire Baptist Association (Incorporated) Charity registration number 247173 Company registration number 00181581
Registered office and principal operating address
17-19 York Place, Leeds, LS1 2EX
The following trustees have held office since 1 January 2021:
Rev Adenike Adebajo (from 26 January 2021) Mrs Liz Allen (until 31 December 2021) Mr Chris Bishop Mr Philip Callow (until 31 August 2021) Mr John Crosse Ms Charlotte Hendy Rev Joseph Kapolyo (from 26 January 2021) Mrs Gill Knowles Mr Kevin Quinton (Chair of Trustees) Mr Dean Thorpe (Treasurer)
Our bankers are: Yorkshire Bank plc 94-96 Briggate Leeds LS1 6NP
The Charities Official Investment Fund 80 Cheapside London EC2V 6DZ
Our auditor is: Azets Audit Services Limited Triune Court Monks Cross York YO32 9GZ
Our investments advisers are: LGT Vestra LLP 14 Cornhill London EC3V 3NR
Our solicitors are: Thursfields Solicitors Neville House Steelpark Road Halesowen B62 8HD
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Report of the Trustees The Yorkshire Baptist Association (Incorporated)
Structure, Governance and Management
The Yorkshire Baptist Association (YBA) has a governing document which contains our Articles of Association. It was updated in 2014 and accepted by both the Charity Commission and Companies House.
The YBA is served by the Executive (trustees and directors) and by three working groups who are appointed by the Executive: Finance, Ministry and Trust groups. Each working group has a Standing Order which outlines the role of the working group and its areas of work. The Standing Orders are reviewed annually. The groups report to the Executive on a regular basis as the Executive has overall responsibility for strategy and policies, financial practice, and partnership. Copies of the governing document and working group Standing Orders can be provided upon request.
Trustees
Our trustees are nominated by the member churches of the Association in a way that gives balance of representation and meets agreed criteria. Some trustees are co-opted to facilitate good balance. The trustees are also directors of the YBA. Trustees are usually appointed for a three-year term resulting in some stepping down each year. A nomination and appointment process is undertaken in consultation with member churches to seek new trustees. Changes to trustees during 2021 are shown on page 1; we were pleased to gain two new trustees at the beginning of 2021. We have adopted a practice of proactively seeking out potential new trustees from amongst our member churches and inviting suitable people to attend 2/3 Executive meetings as observers. This enables them to better understand the work of our trustees and directors before they are nominated by their home church or co-opted to the Executive.
Trustees are given a copy of the Association’s governing document and the Staff & Trustees Handbook which contains information about their roles and responsibilities. The Handbook includes relevant information from the Charity Commission. The Staffing Support Group (a task group set up by the Executive) has responsibility for reviewing and updating the Handbook which is an iterative document that contains a range of employment policies and other guidance that are updated in accordance with revised legislation and best practice. An away day for the trustees and Regional Ministers is held to provide more time for prayer and discussion for the vision and work of the YBA as distinct from the “business” matters considered during Executive meetings.
Association Team
| Association Team | |
|---|---|
| The Association is served by: | |
| Revd Dr Clive Burnard | Regional Minister |
| Revd Ann Chesworth | Property & Legal Officer |
| Julie Crabtree | Administration Assistant |
| Revd Peter Dunn | Discipleship Enabler |
| Revd Graham Ensor | Regional Minister Team Leader |
| Debbie Gamble | Association Administrator |
| Revd Alex Harris | Regional Minister from 1 November 2021 |
| Hannah Harris | Finance Officer from 1 February 2022 |
| Adrian Howe | Finance Officer until 31 January 2022 |
| Revd Kez Robinson | Mission Enabler, then Regional Minister from 1 March 2022 |
| Revd Mary Taylor | Regional Minister until 31 March 2022 |
| Dean Thorpe | Treasurer |
| Jodie Thorpe | Children, Youth & Families Enabler |
Partnerships and Related Parties
The Association works in partnership with Northern Baptist College, St Hild College, Biglife Europe, BMS World Mission, the Northern (NBA) and North Western (NWBA) Baptist Associations and ecumenical bodies across Yorkshire. The Association is a member of the Baptist Union of Great Britain (BUGB) as our related party which means that we receive national guidance on various matters. In the interest of transparency and probity, the Association maintains a register of trustees’ interests and those of close family members. All members of the Executive are invited to declare any matters which might influence their conduct in respect to the Association’s business. This register is open to
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Report of the Trustees The Yorkshire Baptist Association (Incorporated)
public inspection. Declaration of interests is also included as a standing item at every Executive meeting.
During 2021 we have continued to develop these partnerships in practical ways, seeking to be collaborative whilst at the same time bringing YBA focus to the partnerships.
Objectives and Activities
The objects of YBA are the advancement of the Evangelical Christian faith and its practice in Yorkshire or elsewhere according with the principles of the Baptist Denomination.
The YBA is a network of 100 churches, individually and collectively committed to participating in the mission of God. Our vision is to ‘grow healthy churches in Yorkshire’ - we do this by relating, renewing and resourcing the local church, which is the primary agent for God’s mission.
When reviewing the aims and objectives of the charity and in planning future activities, the Trustees have complied with the duty in section 17 of the Charities Act 2011 and have due regard to the public benefit guidance published by the Commission.
Achievements and Performance
The common themes during 2021 have been that of challenge, transition and change. The global Covid-19 pandemic continued to impact the work of the Association and of our member churches; plans and activities were adapted as government regulations and guidance changed during the year. The excellent Baptist church focussed guidance and advice which was made freely available through the Baptist Union of Great Britain was hugely beneficial to our churches and the Association, and we are especially grateful for this practical expression of our partnership.
Relating, renewing, and resourcing continues to underpin the strategic and practical decisions made and action taken as we support our member churches, ministers and leaders in their mission and ministry. Throughout 2021, the trustees and staff team kept their focus on striving to be relevant in today’s culture of permanent transition. Six priorities have been identified which will provide a clear focus for the work of the YBA in the next 5 years:
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Prioritise planting, revitalising, and re-imagining
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Leadership development (Continuing Ministerial Development)
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Develop a pipeline of younger missional leaders
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Create new pathways into missional ministry
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Promote justice and encourage diversity
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Support digital development
One key element for trustees in 2021 was a review of the team in response to the upcoming retirements of Regional Ministers, Mary Taylor and Clive Burnard. The review started in January and continued throughout the year as the trustees and staff team met, prayed, and sought to hear what God is calling us to do, from which plans evolved and decisions were made. The review developed into a “Reshaping Regional Ministry” focus. One of the outcomes of the review was the possibility of appointing a new Regional Minister to the YBA with a focus on Pioneering and Church Planting . A detailed proposal was brought to the trustees following which a robust, accountable appointment process was undertaken including interviews and other meetings involving YBA trustees and ministers from amongst our member churches. Following this, Revd Alex Harris was appointed to this role and formally joined the team in November 2021.
The review also resulted in decisions to seek appointments for new specialised roles within the team alongside Regional Ministers – a Younger Adult Lead and a Communications & Digital Lead . These roles have been identified as needed both within the YBA team and by our member churches as areas which would benefit from specific skills and knowledge. It is hoped that these appointments will be made during 2022.
As reported in 2020, we have continued to work closely with St Hild College as they seek to become a Baptist validating college. It has been many years since a new college was granted membership of BUGB, so much time and attention were needed to work towards making an application. Partnering with us in this is our fellow regional association – the East Midlands Baptist Association. Key conversations were held with relevant parties including Northern Baptist College and an accompanying
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Report of the Trustees The Yorkshire Baptist Association (Incorporated)
group were appointed by BUGB. Of necessity this will be a lengthy process, and we will share further details as appropriate in future reports.
Some of the work of Jodie Thorpe, our Children, Youth and Families Enabler , took place online rather than in-person during 2021. Requests for guidance and support from amongst our member churches formed a significant proportion of her work alongside enabling networking among Yorkshire based CYF specialists. And connections with the national CYF Round Table continued to be important for sharing ideas and resources.
2021 was the second year of the partnership between YBA and Biglife Europe. While the year continued to be dominated by the impact of Coronavirus, the partnership continued to thrive with a largely online basis for activity. The vision for making disciples, drawing upon the biblical principles that Biglife is rooted in, continued to be shared with others. Inevitably, some grasped these principles more firmly than others, especially those who began to put them into practice. A number of training opportunities were offered to individual churches and to wider groups of people from across YBA. Following the training, where people wanted to take things forwards, Biglife offered coaching relationships to give continuing support and encouragement to a number of people across Yorkshire. Some people have come to faith in Jesus as a result and others have been encouraged to be more intentional about being disciples and making disciples. More than 40 churches have been engaged in some way within the partnership up to the end of 2021. In addition, Biglife has contributed to the support of the new Farsi worker within YBA and also to the teaching at St Hild College.
Following trustee conversations in 2020, the YBA offered a new resource to our member churches focussing on issues of justice called Just Like Jesus: A YBA journey towards the Holy Justice of God. We see justice as an over-arching motif refining and shaping every aspect of our life and mission as Christian disciples. Several groups used the material throughout the year and were supported in their conversations by Regional Minister, Mary Taylor. Trustees Nike Adebajo and Joe Kapolyo were also available as accompaniers to churches who engaged with the resources. Participants were challenged to consider many aspects of faith and justice as well as implementing changes personally and in their community. The outworking's of this will continue into the years to come.
Ministerial Development Groups facilitated by our Regional Ministers continued, meeting by video conference call when necessary. These small groups of ministers meet regularly for support, continued learning and reflective practice. Feedback has continued to be positive.
The Regional Team continue to look out for opportunities to plant new churches and congregations. One element of this is through our relationship with St Hild College and their Centre for Church Growth, creating support for church planters in the north. We were also pleased to be able to agree grant support for a new church plant based in the former Woodseats building in Sheffield. The plant has come from The Well Baptist Church in Sheffield and our hope is that this will grow to be a selfsustaining church in 5 years.
Following the decision in 2020 to facilitate a Baptists Building Communities project, our Property & Legal Officer, Ann Chesworth, took this forward. Unfortunately, an external funding application was not successful, but the project was brought back to trustees and YBA funding was agreed for a discrete aspect of the project. This enabled a cohort of five member churches to undertake a community audit and assessment of their buildings, and then to work with Masters Architect students from the University of Sheffield on re-imagining the use of their buildings as part of a Live Project. This took place during the second half of 2021 and continues in 2022.
Work on sorting and digitising trust and historic paper files continued as admin time allowed; this has been especially helpful to the work of the Property & Legal Officer in clarifying details of property transactions and trust matters relating to member churches when queries arise.
It is always a great sorrow to the Association when a member church closes, and we are encouraged when potential new member churches contact the Regional Team to explore what it means to be a member of the Yorkshire Baptist Association. Our church application process includes a period of walking alongside each other with interested churches exploring Baptist identity, as well as the necessary formalities with regards to governance, safeguarding and so on. We are sad to report the closure of Longley & Lowerhouses Community Church, Huddersfield at the end of 2021.
Sadly, conflict resolution continued to need support from the Regional Team as they were called in to work with ministers and churches when differences of view or relationship difficulties become a
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Report of the Trustees The Yorkshire Baptist Association (Incorporated)
source of significant conflict. Part of our review included looking at how this work could be supported in other ways, especially using the skills and expertise of The Blackley Centre. After much consultation, the Healthy Church Listening Team was devised. Working with The Blackley Centre we are seeking to build a team of volunteers who can get alongside churches and offer a deep, careful listening service to help churches identify ways forward in conflict situations. Volunteers will be trained and offered appropriate support through The Blackley Centre. It is anticipated that it will take some months to build the team so this initiative will continue in 2022.
Ministry Matters remained a focus for the Regional Ministers, particularly when ministries end requiring pastoral support as situations are worked out and good conclusions enabled. Video conference calls were utilised for BUGB accreditation interviews if circumstances required it. And following BUGB’s introduction of Continuing Ministerial Development (CMD) for accredited ministers, the YBA encouraged and enabled ministers and leaders in the region to engage in this.
Our links with the London Institute for Contemporary Christianity have also continued with 6 churches engaged in a Learning Hub , supported by our Mission Enabler. Remote learning has impacted this initiative which has moved to a 2-year process; however, we are seeing stories of joy and life emerge from this as churches reflect together.
A range of grants are offered through the YBA – Home Mission ministry grants, grants for ministers engaging in learning, special project grants and so on. And the trustees have agreed that funds can be made available for church planting. We were especially pleased to be able to provide grant support for a Farsi Mission Enabler working across three churches in the Association – the focus of this role is to raise and disciple Farsi leaders and to make new disciples.
Governance and Administrative Matters – the trustees agreed to hold an online AGM during 2021. This was well supported and included input from our Executive Chair, YBA Treasurer and the Regional Ministers, as well as providing a space for feedback and questions from those churches who were present.
A full review of the Risk Management Strategy Document was undertaken during the year led by our Risk Management Trustee. A small number of amendments were made and accepted by the trustees.
Safeguarding continued to be a key area of work for the Association with our Safeguarding Trustee supporting the Regional Team Leader and Association Administrator. Alongside providing general advice and guidance to our member churches and ministers, the Association is also available to support churches should a safeguarding incident occur. With limitations on in-person meeting at various times during the year, we did not offer face-to-face safeguarding training to our member churches but continued to encourage them to use an interim video training resource. In the final months of 2021, safeguarding trainers underwent refresher training as we look to holding courses in 2022. The Association also reviewed its own safeguarding policy and practices to ensure that trustees are appropriately trained and have up to date DBS (Disclosure and Barring Service) checks relevant to their role.
Our Regional Ministers continue to provide Vision and Review days for member churches as requested and several fellowships benefitted from this provision – these were offered both virtually and in-person depending on the circumstances at the time.
Financial Review
During the year to 31 December 2021 the YBA had a total income of £497,192 (2020: £784,237). There were gains on the valuations of investments of £204,632 (2020: £139,385). The total expenditure was £418,794 (2020: £380,078). The net result for the year was net movement in funds of £283,030 (2020: £543,544). The trustees are mindful that the closed church buildings and burial grounds carry with them significant but largely unquantifiable costs for repair and maintenance.
The trustees acknowledge with gratitude the financial support received from the following:
Harry Bottom Charitable Trust £30,000 (2020: £30,000).
The YBA has been blessed through many financial and other generous gifts of time and expertise.
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Report of the Trustees The Yorkshire Baptist Association (Incorporated)
The YBA’s reserves policy continues to comprise two elements: firstly, the YBA maintains a general reserve equivalent to approximately six months’ General Fund expenditure, and secondly, the YBA only maintains restricted reserves where the purpose is evidently practical. If any restricted reserve ceases to be active the YBA takes the appropriate administrative, legal and/or regulatory steps to wind up the reserve and transfer remaining balances into the general fund.
Target reserves will be achieved by maintaining a significant cash balance in addition to invested assets of relatively easily realisable nature. The charity’s free reserves at 31 December 21 excluding restricted funds and fixed assets totalled £283,518 (2020: £804,944).
The YBA’s Executive group is responsible for annually reviewing and approving an investment policy statement which sets out a strategy and policies for risk, ethics, delegation of authority, reporting and training and guidance, with respect to the YBA’s cash management and investments. The policy, which complies with the Charity Commission recommended best practice ensures that the YBA is able to control and utilise its funds effectively in a controlled framework. The YBA’ objective is to generate income and capital returns, which will enable the YBA to at least maintain current levels of activity, particularly staffing levels. In practice, this policy means that the YBA aims to grow income over the medium term at least in line with average earnings growth and at least maintain the real capital value of the portfolio so that the base from which income is derived is maintained in real terms. The YBA seeks to employ investment managers to ensure proper management of the assets and to obtain the returns required within acceptable levels of risk.
The YBA engages in effective treasury management (maximisation of the short-term cash balance through effective of debtors, creditors and payroll) so as to identify surplus cash available for investment, and to maximise the return on that money while minimising the associated risk. The overriding principle of the YBA’s investment policy is to avoid risk rather than to maximise return, whilst meeting the liquidity needs of the YBA. The key criteria for assessing the desirability of any potential investment, therefore, is security, liquidity and yield respectively. All short-term investments are place with organisations that have a credit rating of A1/A+ or above and no single investment is placed for a period greater than 2 years. Total investments with any one organisation will not normally exceed £1 million. Investments for periods in excess of three months will be placed to provide a spread of maturity throughout the year to meet liquidity.
Fundraising
YBA strives to achieve the highest fundraising standards. YBA stays up to date with developments in charity regulation, data protection and the Fundraising Preference Service (FPS) to make sure it is legally compliant and adhering to all guidelines. YBA does not actively raise funds from the public either directly or via use of an agent, accordingly no such amounts are presented in the financial statements for the year under review.
The charity has received no complaints in relation to fundraising activity for the year under review.
Plans for 2022
Looking to the future, our key plans for 2022 will include:
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Developing a Healthy Church Listening Team
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Appointing a Younger Adult Lead and a Communications & Digital Lead
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Maintaining our focus on matters of justice and enabling ministers and churches to become places of welcome for all
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Review our Baptists Building Communities project and look to next steps
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Making an application for St Hild College to be accepted as a member college of BUGB
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The re-introduction of in-person safeguarding training
As always, the trustees wish to say a big thank you to the many people who contribute to Association life during the year. Without the support of the many volunteers who serve on our groups and who support the work of the Association Team in practical and prayerful ways, we would not be able to report on such a diverse and wide-ranging scope of activity and work.
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Report of the Trustees The Yorkshire Baptist Association (Incorporated)
Funds Held as Custodian Trustee
The YBA, as Custodian Trustee, holds certain assets for member churches and associated charities. The trustees do not have any direct title to the funds but administer these investments within the framework of the Charities Act in consultation with our investment advisers and the objectives of the individual churches. The objects of the churches and charities are in line with the objects of the Association shown in this Trustees’ Report.
The details of the assets of each custodian fund held on behalf of the church or charity are set out in Note 18 in the financial statements.
Auditor
Azets Audit Services Limited were appointed as auditors to the charity following their acquisition of the trade of Garbutt & Elliott Audit Limited on 1 December 2021. They have confirmed their willingness to be re-appointed at the next annual general meeting.
Statement of Responsibilities of the Trustees
Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company as at the end of the financial year and of the surplus or deficit of the charitable company for that year.
In preparing those financial statements the trustees are required to:
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Select suitable accounting policies and then apply them consistently;
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Observe the methods and principles in the Charities SORP;
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State whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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Make judgements and estimates that are reasonable and prudent;
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Prepare the financial statements on the going concern basis unless it is appropriate to presume that the charitable company will continue in business.
The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking steps for the prevention and detection of fraud and other irregularities.
Small Company Rules
This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies. It was approved by the Board on 17 May 2022 and signed on its behalf by:
…………………………………………… ………………………………………………
Kevin Quinton Trustee and Chair of Trustees
Dean Thorpe Trustee and Treasurer
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Independent Auditor’s Report The Yorkshire Baptist Association (Incorporated)
Opinion
We have audited the financial statements of The Yorkshire Baptist Association (Incorporated) for the year ended 31 December 2021 which comprise the statement of financial activities, the balance sheet, the cash flow statement and notes to the financial statements (including a summary of accounting policies). The financial reporting framework that has been applied in their preparation is applicable law and UK Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (UK Generally Accepted Accounting Practice).
In our opinion, the financial statements:
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give a true and fair view of the state of the Charity’s affairs as at 31 December 2021 and of its surplus for the year then ended;
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have been properly prepared in accordance with UK Generally Accepted Accounting Practice;
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have been prepared in accordance with the requirements of the Companies Act 2006.
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 twelve 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 Trustees are responsible for the other information. The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. 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.
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
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Independent Auditor’s Report The Yorkshire Baptist Association (Incorporated)
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Trustees’ report (incorporating the Directors’ report) for the financial year for which the financial statements are prepared is consistent with the financial statements; and
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the Trustees’ report (incorporating the Directors’ report) have been prepared in accordance with applicable legal requirements.
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’ Annual Report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
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adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us;
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the financial statements are not in agreement with the accounting records and returns;
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certain disclosures of Trustees’ remuneration specified by law are not made; or
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we have not obtained all the information and explanations necessary for the purposes of our audit.
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.
Auditor’s responsibilities for the audit of the financial statements
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.
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Independent Auditor’s Report The Yorkshire Baptist Association (Incorporated)
Extent to which the audit was considered capable of identifying irregularities, including fraud
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, through discussion with the Trustees and other management, and from inspection of the charity’s regulatory and legal correspondence. We discussed with the Trustees and other management the policies and procedures regarding compliance with laws and regulations. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance during the audit.
The charity is subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related companies and charities legislation), pensions legislation, taxation legislation and further laws and regulations that could indirectly affect the financial statements, comprising employment legislation and fundraising regulations. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any. These procedures did not identify any potentially material actual or suspected non-compliance.
To identify risks of material misstatement due to fraud we considered the opportunities and incentives and pressures that may exist within the charity to commit fraud. Our risk assessment procedures included: enquiry of the Trustees and other management to understand the high level policies and procedures in place to prevent and detect fraud, reading Board minutes and considering performance targets and incentive schemes in place for management. We communicated identified fraud risks throughout our team and remained alert to any indications of fraud during the audit.
As a result of these procedures, we identified the greatest potential for fraud in the following areas:
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income recognition and in particular the risk that income is recognised in the wrong reporting period and/or that restrictions have not been recognised; and
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subjective accounting estimates, and
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review of the recognition of and disclosure around custodian assets.
Fraud risks arise due to desire to present results in a differing light to meet management objectives. As required by auditing standards we also identified and addressed the risk of management override of controls.
We performed the following procedures to address the risks of fraud identified:
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identifying and testing high risk journal entries through vouching the entries to supporting documentation;
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assessing significant accounting estimates for bias;
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testing the recognition of income and in particular that it was appropriately recognised or deferred and correctly classified;
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reviewing the reconciliation of, and disclosure around, the custodian assets and the vouching of source documents.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it.
In addition, as with any audit, there remained a higher risk of non-detection of fraud, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
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Independent Auditor’s Report The Yorkshire Baptist Association (Incorporated)
Use of our report
This report is made solely to the Charity’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Charity’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charity’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Laura Masheder For and on behalf of Azets Audit Services Limited
……………………………………………
Chartered Accountants Senior Statutory Auditor
Triune Court Monks Cross Drive York YO32 9GZ
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The Yorkshire Baptist Association (Incorporated)
Statement of Financial Activities for the year ended 31 December 2021 (Including Income and Expenditure Account)
| Note | Unrestricted | Restricted | Total | Unrestricted | Restricted | Total | |
|---|---|---|---|---|---|---|---|
| Funds | Funds | Funds | Funds | Funds | Funds | ||
| 2021 | 2020 | ||||||
| £ | £ | £ | £ | £ | £ | ||
| Income from: | |||||||
| Donations and legacies | 2 | 31,094 | 11,716 | 42,810 | 31,000 | - | 31,000 |
| Charitable activities | 3 | 435,128 | - | 435,128 | 734,810 | - | 734,810 |
| Investments | 18,891 | 363 | 19,254 | 17,965 | 462 | 18,427 | |
| Total income | 485,113 | 12,079 | 497,192 | 783,775 | 462 | 784,237 | |
Expenditure on: |
|||||||
| Raising Funds | 4 | 25,415 | - | 25,415 | 38,881 | - | 38,881 |
| Charitable activities | 5 | 381,126 | 12,253 | 393,379 | 340,641 | 556 | 341,197 |
| Total expenditure | 406,541 | 12,253 | 418,794 | 379,522 | 556 | 380,078 | |
| Net income before other recognised gains |
78,572 | (174) | 78,398 | 404,253 | (94) | 404,159 | |
Other recognised gains |
|||||||
| Net gains on investments | 200,939 | 3,693 | 204,632 | 137,635 | 1,750 | 139,385 | |
| Net movement in funds | 7 | 279,511 | 3,519 | 283,030 | 541,888 | 1,656 | 543,544 |
Balance brought forward |
13/14 | 3,946,096 | 151,875 | 4,097,971 | 3,404,208 | 150,219 | 3,554,427 |
| Balance carried forward | 13/14 | 4,255,607 | 155,394 | 4,381,001 | 3,946,096 | 151,875 | 4,097,971 |
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The notes on pages 15 to 31 form part of these statement. The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
Page 12 of 31
The Yorkshire Baptist Association (Incorporated)
Balance Sheet as at 31 December 2021
| 2021 | 2021 | 2020 | 2020 | ||
|---|---|---|---|---|---|
| Note | £ | £ | £ | £ | |
| Fixed assets | |||||
| Tangible assets | 9 | 1,394,352 | 827,304 | ||
| Investments | 10 | 2,669,968 | 2,429,779 | ||
| 4,064,320 | 3,257,083 | ||||
| Current assets | |||||
| Debtors | 11 | 108,768 | 83,423 | ||
| Cash at bank and in hand | 409,219 | 781,181 | |||
| 517,987 | 864,604 | ||||
| Liabilities | |||||
| Creditors: Amounts falling due within oneyear |
12 | (201,306) | (23,716) | ||
| Net current assets | 316,681 | 840,888 | |||
| Total assets less current liabilities | 4,381,001 | 4,097,971 | |||
| Total net assets | 4,381,001 | 4,097,971 | |||
Funds |
|||||
| Restricted funds | 13/14 | 155,394 | 151,875 | ||
| Unrestricted funds | 13/14 | 4,225,607 | 3,946,096 | ||
| 4,381,001 | 4,097,971 |
The financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 applicable to small companies.
These financial statements were approved by the board on 17 May 2022 and signed on its behalf by:
Kevin Quinton Dean Thorpe Trustee and Chair of Trustees Trustee and Treasurer
The notes on pages 15 to 31 form part of these financial statements.
Company number: 00181581
Page 13 of 31
The Yorkshire Baptist Association (Incorporated)
Statement of Cash Flows for the Year Ended 31 December 2021
| 2021 | 2020 | ||
|---|---|---|---|
| Note | £ | £ |
|
| Cash Flows from operating activities: | |||
| Net cash (used in)/ provided by operating activities | 18 | (546,469) | 113,084 |
| Cash Flows from investing activities: | |||
| Dividends, interest and rents from investments | 19,254 | 18,427 | |
| Proceeds from the sale of fixed assets | 190,810 | 283,454 | |
| Proceeds from sale of investments | 1,213,140 | 717,340 | |
| Purchase of investments | (1,248,697) | (723,095) | |
| Net cash provided by investing activities | 174,507 | 296,126 | |
| Change in cash and cash equivalents in the year | (371,962) | 409,210 | |
| Cash and cash equivalents at the beginning of the year | 781,181 | 371,971 | |
| Cash and cash equivalents at the end of the year | 409,219 | 781,181 |
The Charity had no debt in this or the previous year.
The Charity also holds cash in investments of £189,960 (2020: £39,491), this is held for investing purposes and accordingly is not included in the cash balances above.
Page 14 of 31
The Yorkshire Baptist Association (Incorporated)
Notes to the Financial Statements for the Year Ended 31 December 2021
Accounting policies
The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:
Charity Information
The Yorkshire Baptist Association is a charitable company. The registered office is 17-19 York Place, Leeds, LS1 2EX. The organisation’s Charity Number is 247173 and its company number is 00181581.
Basis of preparation
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) (“Charities SORP (FRS 102)”), the Companies Act 2006 and the Charities Act 2011.
The Yorkshire Baptist Association meets the definition of a public benefit entity under FRS 102.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £1.
The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.
Going concern
The trustees have prepared financial projections, taking into consideration the current economic climate and its potential impact on the sources of income and planned expenditure. They have a reasonable expectation that adequate financial resources are available to enable the charity to continue in operational existence for the next 12 to 18 months and have adequate contingency plans in the event that income streams are reduced. Consequently, the financial statements have therefore been prepared on the basis that the charity is a going concern. Whilst there is considerable economic uncertainty particularly over the impact of inflation, the charity continues to maintain considerable cash reserves, more than sufficient to meet its immediate requirements, and the ability to reduce grants awarded in the future. Thus, the trustees have continued to adopt the going concern basis of accounting in preparing the financial statements.
Income
Income is recognised when the charity has entitlement to the funds, any performance conditions have been met, it is probable that the income will be received and the amount can be measured reliably.
Income from closed churches represents the fair value of assets transferred to the charity upon closure of a church. Any excess or deficit on sale is recognised as Profit on Sale of Closed Church Buildings.
Income from Government and other grants, whether ‘capital’ grants or ‘revenue’ grants is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.
Entitlement to legacies is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Charity that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material.
Page 15 of 31
The Yorkshire Baptist Association (Incorporated)
Notes to the Financial Statements for the Year Ended 31 December 2021
Accounting policies (continued)
Donated services and facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, and the receipt of economic benefit can be measured reliably. In accordance with the Charities SORP (FRS102), general volunteer time is not recognised. Refer to the trustees’ annual report for more information about their contribution. Investment income is included when receivable and the amount can be measured reliably by the charity.
Fund accounting
Unrestricted funds are available to spend on the activities that further any purposes of charity;
Restricted funds represent income which the donor has specified to be solely used for particular areas of the Charity’s work.
Expenditure
Expenditure, which includes irrecoverable VAT, is recognised once there is a legal or constructive obligation to make payment to a third party, it is probable that settlement will be required and the amount of the obligations can be measured reliably.
Expenditure is classified under the following activity headings:
-
Expenditure on raising funds comprises the costs associated with fund raising activity;
-
Expenditure on charitable activities includes the costs of activities undertaken to further the purpose of the charity and their associated support costs;
-
Other expenditure represents those items not falling into any other heading.
All costs are allocated between the expenditure categories of the SOFA on a basis designed to reflect the use of the resource. Costs relating to a particular activity are allocated directly, others are apportioned on an appropriate basis.
Grants payable are commitments (including payments) made to third parties in the furtherance of the charitable objectives of the charity.
Allocation of support costs
Support costs are those functions that assist the work of the charity but do not directly relate to charitable activities. Support costs include back-office costs, finance, personnel, payroll and governance costs which support the Trust’s activities. These costs have been allocated between cost of raising funds and expenditure on charitable activities. The basis on which support costs have been allocated are set out in note 6.
Operating leases
Rentals applicable in respect of operating leases where substantially all the benefits and risks of ownership remain with the lessor are charged to the Statement of Financial Activities as incurred.
Staff Costs
The costs of short-term employee benefits are recognised as a liability and an expense where settlement of obligations does not fall within the same period.
Pensions
The charitable company contributes to the Baptist Pension Scheme which is a multiemployer defined benefit pension scheme. As explained in note 17, the Yorkshire Baptist Association is unable to identify the assets and liabilities attributable to them in the scheme and there is no formal deficit recovery plan in place. In accordance with FRS 102 amounts paid to the Scheme are accounted for as if they were those of a defined contribution scheme.
Page 16 of 31
The Yorkshire Baptist Association (Incorporated)
Notes to the Financial Statements for the Year Ended 31 December 2021
Accounting policies (continued)
Tangible fixed assets and depreciation
Individual fixed assets costing £1,000 or more are capitalised. Tangible fixed assets are stated at cost less accumulated depreciation. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value over their expected useful lives as follows:
Freehold land and buildings Not depreciated
Freehold land and buildings comprise three manses, office space and two closed church buildings which are held with a view to furthering the objects of the charity. No depreciation is charged against these assets on the basis that the trustees consider that the residual value is at least equal to the carrying value.
Fixed asset investments
Investments are a form of basic financial instrument.
Listed investments are stated at market value at the balance sheet date. The listed investment portfolio is held to generate returns and gains for the charity and accordingly is designated as fair value through profit and loss (“FVTPL”). Under this designation, the portfolio is revalued at each period end to its fair value, as determined by reference to quoted market prices and values determined by independent fund managers, with any gains or losses going through the SOFA.
Loans to churches
Loans made by the YBA to member churches are accounted for as mixed motive investments which are measured at historical cost less impairment, subsequent repayments and any accrued interest. These investments are mixed motive in nature and in accordance with the Charities SORP (FRS 102) amounts expensed are accounted for as grants to churches.
Where interest is charged on loans made to churches, the rate is 0.5% lower than that published by the Baptist Union Corporation. The rate at 31 December 2021 was 3.25% (2020: 3.1%).
Stock
No account is taken of the stock of books and pamphlets, which are written off in the year of purchase and are of minimal value.
Financial Instruments
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Cash at bank and in hand
Cash at bank and cash in hand includes cash and short term highly liquid investments with a maturity within the 12 months after the balance sheet date.
Debtors
Debtors are recognised at the settlement amount. Prepayments are valued at the amount prepaid net of any discounts due.
Creditors and Provisions
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfers of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement value after allowing for any discounts which may be due.
Financial liabilities are only derecognised when, and only when, the charity’s obligations are discharged, cancelled or they expire.
Amounts recognised as provisions are best estimates of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation.
Page 17 of 31
The Yorkshire Baptist Association (Incorporated)
Notes to the Financial Statements for the Year Ended 31 December 2021
Accounting policies (continued)
Exceptional items
Exceptional items are material items, deriving from events or transactions within the ordinary activities of the charity, and which individually or in aggregate are disclosed because of their size or incidence in order that the financial statements give a true and fair view.
Taxation
The Yorkshire Baptist Association is a registered charity and as such is a charity within the meaning of schedule 6 of the Finance Act 2010. Accordingly, the Charity is potentially entitled to tax exemption under part 11 of the Corporation Tax Act 2010 or section 256 of the Taxation of Chargeable Gains Act 1992 in respect of income and gains arising.
Critical Accounting Estimates and Judgements
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
No depreciation is charged on freehold land and buildings including closed church buildings which are held with a view to furthering the objects of the charity. No depreciation is charged against these assets on the basis that the trustees consider that the residual value is at least equal to the carrying value.
2. Income from donations and legacies
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Sundry donations and legacies (unrestricted) | 31,094 | 31,000 |
| Sundry donations and legacies (restricted) | 11,716 | - |
| 42,810 | 31,000 |
Donations and legacies in the year ended 31 December 2021 include:
| Bottom Trust | 30,000 |
|---|---|
| Biglife India Appeal | 11,716 |
| HollandLegacy | 1,094 |
| 42,810 |
The Charity benefits greatly from the involvement and enthusiastic support of a number of volunteers, details of which are given in our annual report. In accordance with FRS 102 the economic contribution of volunteers is not recognised in the financial statements.
Page 18 of 31
The Yorkshire Baptist Association (Incorporated)
Notes to the Financial Statements for the Year Ended 31 December 2021
3. Income from charitable activities
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| BUGB core funding | 179,426 | 203,597 |
| Interest on loans to churches | 12,803 | 13,810 |
| Income from churches for services rendered | 2,338 | 3,027 |
| Closed churches income | 237,114 | 512,597 |
| Other Income | 3,447 | 1,779 |
| 435,128 | 734,810 |
All Income from charitable activities are unrestricted in both the current and previous financial year.
4. Expenditure on raising funds
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Office costs | 13,056 | 14,382 |
| Closed church property costs | 12,359 | 24,499 |
| 25,415 | 38,881 |
5. Expenditure on charitable activities
| Activity or programme | Activities undertaken directly |
Grant funding of activities |
Support Costs (note 6) |
2021 |
|---|---|---|---|---|
| £ | £ | £ | £ | |
| Ministry | 2,275 | - | 293,239 | 295,514 |
| Mission | - | 97,865 | - | 97,865 |
| 2,275 | 97,865 | 293,329 | 393,379 | |
| Activity or programme | Activities undertaken directly |
Grant funding of activities |
Support Costs (note 6) |
2020 |
| £ | £ | £ | £ | |
| Ministry | 2,016 | - | 264,250 | 266,266 |
| Mission | - | 74,931 | - | 74,931 |
| 2,016 | 74,931 | 264,250 | 341,197 |
Page 19 of 31
The Yorkshire Baptist Association (Incorporated)
Notes to the Financial Statements for the Year Ended 31 December 2021
5. Expenditure on charitable activities (continued)
| Charitable Activity costs include the following grants: | 2021 | 2020 |
|---|---|---|
| £ | £ | |
| Grants to institutions: | ||
| Mission Grants | 64,827 | 45,235 |
| Biglife | 22,038 | 17,696 |
| NCPRIR, Blackley | 11,000 | 12,000 |
| 97,865 | 74,931 |
Expenditure on charitable activities was £393,379 (2020: £341,197) of which £381,126 was unrestricted (2020: £340,641) and £12,253 was restricted (2020: £556).
6. Support costs
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Staff costs (note 8) | 233,868 | 221,118 |
| Regional Minister | 18,992 | 9,522 |
| Trust officer | 10,902 | 10,561 |
| Legal expenses | 5,057 | 7,451 |
| Governance | 8,264 | 8,448 |
| Other | 16,156 | 7,150 |
| 293,239 | 264,250 |
7. Net income for the year is stated after charging:
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Auditor's remuneration - Audit | 4,830 | 4,375 |
| - Accountancy | 1,800 | - |
| 6,630 | 4,375 |
8. Analysis of staff costs, staff numbers, financial statements remuneration and expenses and the cost of key management personnel
The average monthly number of employees analysed by function was:
| 2021 | 2020 | |
|---|---|---|
| Mission | 2 | 2 |
| Ministry | 7 | 7 |
| 9 | 9 |
Page 20 of 31
The Yorkshire Baptist Association (Incorporated)
Notes to the Financial Statements for the Year Ended 31 December 2021
8. Analysis of staff costs (continued)
| Staff costs during the year were as follows: | 2021 | 2020 |
|---|---|---|
| £ | £ | |
| Salaries | 166,989 | 159,697 |
| Social security costs | 10,410 | 9,674 |
| Pension costs | 27,835 | 24,468 |
| Other costs (Council Tax, Water charges, Accommodation) | 28,634 | 27,279 |
| 233,868 | 221,118 |
No employees earned £60,000 or more during the year (2020: no employee).
Pension Costs are allocated to activities in proportion to the related staffing costs incurred and are wholly charged to unrestricted funds.
The Executive are in charge of directing and controlling the charity, with the Chairs of the working groups and the Regional Minister Team Leader comprising the key management personnel and running and operating the charity on a day-to-day basis. The total employee benefits of the key management personnel of the charity were £59,235 (2020: £59,313).
No trustees received remuneration for their services during the current or previous financial year. Two trustees received reimbursed expenses during the year of £175 (2020: one trustee, £147).
In addition to the staff costs shown, Revd Ann Chesworth, part time YBA Trust Officer, is on secondment from Harrogate Baptist Church and has been charged at £12,985 (2020: £10,223).
9. Tangible assets
| Closed Church Properties |
Freehold Land & Buildings |
Total | |
|---|---|---|---|
| £ | £ | £ | |
| Cost or valuation: | |||
| At 1 January 2021 | 362,500 | 464,804 | 827,304 |
| Additions at Cost | 200,000 | 529,548 | 729,548 |
| Disposals | (162,500) | - | (162,500) |
| At 31 December 2021 | 400,000 | 994,352 | 1,394,352 |
| Depreciation: | |||
| At 1 January 2021 | - | - | 2,338 |
| Charge for the year | - | - | - |
| Disposals | - | - | (2,338) |
| At 31 December 2021 | - | - | - |
| Net book value | |||
| At 31 December 2021 | 400,000 | 994,352 | 1,394,352 |
| Net book value | |||
| At 31 December 2020 | 362,500 | 464,804 | 827,304 |
Page 21 of 31
The Yorkshire Baptist Association (Incorporated)
Notes to the Financial Statements for the Year Ended 31 December 2021
9. Tangible assets (continued)
Included within land and buildings is one ‘restricted’ freehold property with a historical cost of £93,761 (2020: £93,761). This represents restricted funds used towards providing a manse for Buttershaw Baptist Church.
At 31 December 2021 there were two closed church properties under the stewardship of the Yorkshire Baptist Association, Slack Lane Baptist Church and Longley and Lowerhouses Baptist Church. At the balance sheet date, the market value of the properties have been included at a value of £400,000 on the balance sheet, these assets are likely to be realised within 12 months of the balance sheet date.
10. Investments
| Listed Investments |
Bonds | Mixed Motive Investments |
Cash | 2021 | |
|---|---|---|---|---|---|
| £ | £ | £ | £ | £ | |
| Cost/value brought forward |
1,938,646 | 80,000 | 371,642 | 39,491 | 2,429,779 |
| Additions | 1,005,625 | - | 92,603 | 150,469 | 1,248,697 |
| Disposals | (1,156,093) | - | (57,047) | - | (1,213,140) |
| Realised and unrealised gains |
204,632 | - | - | - | 204,632 |
| Cost/value carried forward |
1,992,810 | 80,000 | 407,198 | 189,960 | 2,669,968 |
| Listed Investments |
Bonds | Mixed Motive Investments |
Cash |
2020 | |
|---|---|---|---|---|---|
| £ | £ | £ | £ | £ | |
| Cost/value brought forward | 1,696,881 | 44,000 | 401,887 | 141,871 | 2,284,639 |
| Additions | 650,620 | 36,000 | 36,475 | - | 723,095 |
| Disposals | (548,240) | - | (66,720) | (102,380) | (717,340) |
| Realised and unrealised gains |
139,385 | - | - | - | 139,385 |
| Cost/value carried forward |
1,938,646 | 80,000 | 371,642 | 39,491 | 2,429,779 |
At 31 December 2021 £55,211 (2020: £52,310) is included in debtors in respect of the mixed motive investments. These amounts represent loans to churches which total £462,409 (2020: £423,952). The historical cost of listed investments is £1,843,187 (2020: 1,657,866). Bonds and mixed motive investments which comprise loans to churches are carried at cost less any provision for impairment.
Page 22 of 31
The Yorkshire Baptist Association (Incorporated)
Notes to the Financial Statements for the Year Ended 31 December 2021
11. Debtors
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Trade debtors | 53,557 | 31,113 |
| Short term element of mixed motive loans to churches | 55,211 | 52,310 |
| 108,768 | 83,423 |
12. Creditors amounts falling due within one year
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Accruals | 7,956 | 5,520 |
| Other Creditors | 193,350 | 18,196 |
| 201,306 | 23,716 |
Page 23 of 31
The Yorkshire Baptist Association (Incorporated)
Notes to the Financial Statements for the Year Ended 31 December 2021
13. Analysis of movement in charitable funds
| Balance 31 | |||||
|---|---|---|---|---|---|
| Balance 1 | Net gains on | December | |||
| Year ended 31 December 2021 | January 2021 | Income | Expenditure | investment | 2021 |
| £ | £ | £ | £ | £ | |
| Unrestricted Funds | |||||
| General | 3,946,096 | 485,113 | (406,541) | 200,939 | 4,225,607 |
| Restricted Funds | |||||
| Temperance | 2,100 | - | - | - | 2,100 |
| Closed Churches | 149,775 | 12,079 | (12,253) | 3,693 | 153,294 |
| Total restricted funds | 151,875 | 12,079 | (12,253) | 3,693 | 155,394 |
| Total funds | 4,097,971 | 497,192 | (418,794) | 204,632 | 4,381,001 |
| Balance 31 | |||||
|---|---|---|---|---|---|
| Balance 1 | Net gains on | December | |||
| Year ended 31 December 2020 | January 2020 | Income | Expenditure | investment | 2020 |
| £ | £ | £ | £ | £ | |
| Unrestricted Funds | |||||
| General | 3,404,208 | 783,775 | (379,522) | 137,635 | 3,946,096 |
| Restricted Funds | |||||
| Temperance | 2,100 | - | - | - | 2,100 |
| Closed Churches | 148,119 | 462 | (556) | 1,750 | 149,775 |
| Total restricted funds | 150,219 | 462 | (556) | 1,750 | 151,875 |
| Total funds | 3,554,427 | 784,237 | (380,078) | 139,385 | 4,097,971 |
Page 24 of 31
The Yorkshire Baptist Association (Incorporated)
Notes to the Financial Statements for the Year Ended 31 December 2021
13. Analysis of movement in charitable funds (continued)
Purpose of Restricted Funds:
Temperance Fund – the Temperance Fund was established for the purposes of making grants to churches for purposes of temperance.
Closed churches - the Closed Churches Fund arises from churches which have closed and now have no members. The assets have, in accordance with the Trust Deed, been transferred into the control of the Association within the restrictions placed upon the Association by reason of the Trust Deed or order of the Charity Commissioners. In some cases, the only restriction is for purposes connected with the Baptist denomination, as the Association shall direct, in which case these are treated as unrestricted funds.
14. Analysis of net assets by fund
| Year ended 31 December 2021 | General | Restricted | 2021 |
|---|---|---|---|
| £ | £ | £ | |
| Fixed assets - Tangible assets | 1,300,591 | 93,761 | 1,394,352 |
| Investments | 2,641,498 | 28,470 | 2,669,968 |
| Net current assets | 283,518 | 33,163 | 316,681 |
| 4,225,607 | 155,394 | 4,381,001 | |
| Year ended 31 December 2020 | General | Restricted | 2020 |
| £ | £ | £ | |
| Fixed assets - Tangible assets | 733,543 | 93,761 | 827,304 |
| Investments | 2,407,609 | 22,170 | 2,429,779 |
| Net current assets | 804,944 | 35,944 | 840,888 |
| 3,946,096 | 151,875 | 4,097,971 |
15. Related party transactions
Baptist Union of Great Britain
The Association is a member of the Baptist Union of Great Britain (BUGB). During the year, it received grants from the BUGB as shown:
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| BUGB Core Funding | 179,426 | 203,597 |
The YBA receives donations from churches for onward submission to the BUGB Home Mission Fund. The YBA is not beneficially entitled to these funds but is merely acting as agent for BUGB and accordingly the charitable company does not recognise these amounts in income or expenses. The monies are held in a separate bank account and paid over to the BUGB periodically during the year.
Page 25 of 31
The Yorkshire Baptist Association (Incorporated)
Notes to the Financial Statements for the Year Ended 31 December 2021
15. Related party transactions (continued)
The money collected and paid over during the year is detailed below:
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Donations to the BUGB Home Mission Fund from Association member churches |
178,096 | 189,964 |
Baptist Churches in Yorkshire
Baptist Churches in Yorkshire are in most cases members of the YBA and the transactions that took place between the YBA and those churches, during the year, are detailed below.
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| When the Association carries out work for such churches, fees | ||
| are charged and the resulting income is shown as_Income from_ | ||
| churches for services rendered. | 2,338 | 3,027 |
| Loans made to churches during the year | 100,000 | 40,000 |
| Loan repayments received from churches during the year | 59,718 | 30,245 |
| Interest on loans received from churches during the year | 12,803 | 13,810 |
| Fee paid to a church in respect of trust officer secondment | 13,798 | 10,561 |
| Grants made to churches during the year | 58,936 | 41,866 |
| Rent paid to a church in respect of the Association’s offices | - | 1,100 |
16. Legal status of the charitable company
The charitable company is limited by guarantee, the liability of each member of the company being wound up while they are members or within one year after they cease to be a member shall not exceed £10.
17. Pension costs
The YBA is a participating employer in the Baptist Pension Scheme (“the Scheme”), which is a separate legal entity administered by the Pension Trustee (Baptist Pension Trust Limited). The assets of the Scheme are held separately from those of the YBA and the other participating employers.
The Scheme, previously known as the Baptist Ministers’ Pension Fund, started in 1925, but was closed to future accrual of defined benefits on 31 December 2011. Prior to this date, the main benefit provided through the Defined Benefit (DB) Plan was a pension of one eightieth 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.
From January 2012, pension provision is being made through the Defined Contribution (DC) Plan within the Scheme. In general, members pay 8% of their Pensionable Income and employers pay 6% of members’ Pensionable Income into individual pension accounts, which are operated and managed on behalf of the Pension Trustee by Broadstone Corporate Benefits Ltd.
Page 26 of 31
The Yorkshire Baptist Association (Incorporated)
Notes to the Financial Statements for the Year Ended 31 December 2021
17. Pension costs (continued)
In addition, the employer pays a further 4% of Pensionable Income to cover Death in Service Benefits, administration costs, and an associated insurance policy which provides income protection for Scheme members if they are unable to work due to long-term incapacity. This income protection policy has been insured by the Baptist Union of Great Britain with Aviva Limited.
The Scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. Because it is not possible to attribute the Scheme’s assets and liabilities to specific employers, the scheme is accounted for as if the Scheme were a defined contribution scheme. YBA staff members are eligible to join the Scheme.
Actuarial valuation as at 31 December 2019
A formal valuation of the DB Plan as at 31 December 2019 was carried out by a professionally qualified Actuary using the Projected Unit Method. At the valuation date the market value of the DB Plan assets was £298m, whilst the level of assets needed to pay benefits was £316m, giving a deficit of £18m (equivalent to a past service funding level of 94%). The YBA and the other participating employers in the DB Plan are collectively responsible for funding this deficit.
The key financial assumptions underlying the valuation were as follows:
| The key financial assumptions underlying the valuation were as follows: | |
|---|---|
| Type of assumption | % p.a. |
| RPI price inflation assumption | 3.20 |
| CPI price inflation assumption | 2.70 |
| Minimum Pensionable Income Increase Adjustment (above CPI) | 0.50 |
| Pre-retirement assumed investment returns (gilt yield plus 1.75% p.a.) | 2.95 |
| Post retirement assumed investment returns (including benefits | |
| matched by the insurance policy) (gilt yield plus 0.5% p.a.) | 1.70 |
| Minimum Pensionable Income increases (CPI plus 0.5%) | 3.20 |
| Deferred pension increases (based on RPI) | |
| Pre April 2009 | 3.20 |
| Post April 2009 | 2.50 |
| Pension increases based on CPI with an annual floor of 0% and annual cap of 5% | 2.70 |
Mortality is assumed in accordance with 80% of the S3NA standard mortality table. Future improvements projected from 2013 in line with the “CMI 2019” projection with a long-term rate of improvement of 1.75% p.a. for males and 1.5% p.a. for females with the core smoothing parameter and with additional initial mortality improvement factor A = 0.5%.
The next actuarial valuation of the DB Plan within the Scheme is due to take place not later than as at 31 December 2022.
Recovery plan
In addition to the contributions to the DC Plan set out above, where a valuation of the DB Plan reveals a deficit the Trustee and the Council agree to a rate of deficiency contributions from churches and other employers involved in the DB Plan. Under the current Recovery Plan signed in September 2020, deficiency contributions are payable until June 2026. These contributions are broadly based on the employer's membership at 31 December 2014 and increase annually in line with increases to Minimum Pensionable Income as defined in the Rules.
Pension cost for the year
| DC contributions DB deficit contributions |
2021 2020 £ £ 18,707 17,741 9,128 6,727 |
|---|---|
| 27,835 24,468 |
Page 27 of 31
The Yorkshire Baptist Association (Incorporated)
Notes to the Financial Statements for the Year Ended 31 December 2021
17. Pension costs (continued)
Deficit payments of £8,970 per year have been agreed to clear the deficit by 2035, however there is no formal payment plan in place.
The Scheme has provided an estimate of the employer debt that the YBA would need to pay if it were to exit the DB Plan of the Scheme at 31 December 2021 of £65,100 (2020: £100,000). This is for information only, as it is not payable until the YBA ceases to employ any active members of the Scheme, which eventuality is considered to be extremely unlikely.
18. Reconciliation of Net Movements in funds to Net Cash Flow from Operating Activities
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Net movement in funds | 283,030 | 543,544 |
| (Gains) on investments | (204,632) | (139,385) |
| Investment income | (19,254) | (18,427) |
| (Profit) on the sale of fixed assets | (28,310) | (83,454) |
| Purchase of tangible fixed assets | (529,548) | - |
| Assets transferred at fair value | (200,000) | (200,000) |
| (Increase)/decrease in debtors | (25,345) | 10,310 |
| Increase in creditors | 177,590 | 496 |
| (546,469) | 113,084 |
Page 28 of 31
The Yorkshire Baptist Association (Incorporated)
Notes to the Financial Statements for the Year Ended 31 December 2021
19. Custodian trust assets
The Association holds as Custodian Trustees certain assets for the churches and associated charities within the Association. The Trustees do not have any direct title to these funds but administer their investments within the general framework of the Charities Act in consultation with their Financial Advisors, Brewin Dolphin and the objectives of the individual churches.
The objects of the churches and charities are in line with the objects of the Association shown in the Trustees’ report. The investments are kept in safe custody and controlled by means of an Investment Register and the Cash Deposits controlled by means of a Financial Statements Ledger, which are periodically reconciled.
The following schedule shows the assets of each custodian fund held on behalf of the church or charity. Investments are shown at their market value at 31 December 2021 and 2020:
| Investments | Cash Deposits |
Total | Investments | Cash Deposits |
Total | |
|---|---|---|---|---|---|---|
| 2021 | 2021 | 2021 | 2020 | 2020 | 2020 | |
| £ | £ | £ | £ | £ | £ | |
| Barnsley - Sheffield Road | - | 19,735 | 19,735 | - | 19,733 | 19,733 |
| Barnsley‐Ward Green | - | 268,421 | 268,421 | - | 268,392 | 268,392 |
| Bingley | 7,223 | 279,210 | 286,433 | 6,352 | 3,952 | 10,304 |
| Blackley | - | 100,201 | 100,201 | - | 20,418 | 20,418 |
| Bradford‐Buttershaw | - | 5,804 | 5,804 | - | 18,803 | 18,803 |
| Bradford‐Clayton | 3,600 | 7,693 | 11,293 | 3,849 | 7,692 | 11,541 |
| Bradford‐Tetley Street | - | 40,890 | 40,890 | - | 40,886 | 40,886 |
| Bradford‐Westgate | 10,676 | 20,236 | 30,912 | 9,416 | 20,234 | 29,650 |
| Bridlington | - | 9,553 | 9,553 | - | 9,551 | 9,551 |
| Conisbrough | - | 1,262 | 1,262 | - | 1,262 | 1,262 |
| Dewsbury | 42,445 | 28,952 | 71,397 | 37,416 | 28,949 | 66,365 |
| Carried Forward | 63,944 | 781,957 | 845,901 | 57,033 | 439,872 | 496,905 |
Page 29 of 31
The Yorkshire Baptist Association (Incorporated)
Notes to the Financial Statements for the Year Ended 31 December 2021
19. Custodian trust assets (continued)
| 19. Custodian trust assets (continued) | ||||||
|---|---|---|---|---|---|---|
| Investments | Cash Deposits |
Total | Investments | Cash Deposits |
Total | |
| 2021 | 2021 | 2021 | 2020 | 2020 | 2020 | |
| £ | £ | £ | £ | £ | £ | |
| Brought forward | 63,944 | 781,957 | 845,901 | 57,033 | 439,872 | 496,905 |
| Doncaster‐Chequer Road | - | 15,914 | 15,914 | - | 15,912 | 15,912 |
| Earby | - | 3,564 | 3,564 | - | 3,563 | 3,563 |
| Farsley | 8,621 | 599,753 | 608,374 | 7,604 | 599,315 | 606,919 |
| Gildersome | - | - | - | - | 2,707 | 2,707 |
| Golcar | 8,304 | 5,374 | 13,678 | 8,654 | 5,373 | 14,027 |
| Guiseley | - | 3,273 | 3,273 | - | 3,272 | 3,272 |
| Hebden Bridge – Hope | - | 2,651 | 2,651 | - | 2,651 | 2,651 |
| Huddersfield‐Birkby | - | 76,247 | 76,247 | - | 81,239 | 81,239 |
| Huddersfield‐Milnsbridge | - | 10,243 | 10,243 | - | 10,242 | 10,242 |
| Huddersfield‐New North Road | - | 14,576 | 14,576 | - | 14,575 | 14,575 |
| Huddersfield‐Oakes | - | 33,579 | 33,579 | - | 33,575 | 33,575 |
| Huddersfield‐Salendine Nook | 1,016 | 7,602 | 8,618 | 750 | 7,601 | 8,352 |
| Hull‐Boulevard | - | 50,490 | 50,490 | - | 50,484 | 50,484 |
| Hull‐Priory | - | 29,957 | 29,957 | - | 29,957 | 29,957 |
| Keighley | 51,967 | 36,866 | 88,833 | 47,726 | 36,862 | 84,587 |
| Leeds‐Armley | 18,025 | 1,409 | 19,434 | 16,115 | - | 16,115 |
| Leeds‐Blenheim | - | 295,434 | 295,434 | - | 295,403 | 295,403 |
| Leeds‐Bramley | - | 4,615 | 4,615 | - | 4,614 | 4,614 |
| Leeds‐Moortown | - | 50,793 | 50,793 | - | 50,787 | 50,787 |
| Leeds‐Revive | - | 4,701 | 4,701 | - | 4,700 | 4,700 |
| Carried Forward | 151,877 | 2,028,998 | 2,180,875 | 137,882 | 1,692,704 | 1,830,586 |
Page 30 of 31
The Yorkshire Baptist Association (Incorporated)
Notes to the Financial Statements for the Year Ended 31 December 2021
19. Custodian trust assets (continued)
| 19. Custodian trust assets (continued) | ||||||
|---|---|---|---|---|---|---|
| Investments | Cash Deposits |
Total | Investments | Cash Deposits |
Total | |
| 2021 | 2021 | 2021 | 2020 | 2020 | 2020 | |
| £ | £ | £ | £ | £ | £ | |
| Brought forward | 151,877 | 2,028,998 | 2,180,875 | 137,882 | 1,692,704 | 1,830,586 |
| Leeds‐York Road | - | 3,744 | 3,744 | - | 3,744 | 3,744 |
| ME Iredale Trust | - | 13,245 | 13,245 | - | 13,243 | 13,243 |
| Meltham | - | 10,998 | 10,998 | - | 10,998 | 10,998 |
| Mexborough | - | 7,408 | 7,408 | - | 7,407 | 7,407 |
| Mirfield | 22,378 | 71,264 | 93,642 | 19,738 | 81,256 | 100,994 |
| Normanton | - | 109,447 | 109,447 | - | 109,435 | 109,435 |
| Queensbury | - | 44,078 | 44,078 | - | 44,073 | 44,073 |
| Rawdon | - | 43,478 | 43,478 | - | 43,473 | 43,473 |
| Rotherham | - | 5,268 | 5,268 | - | 5,267 | 5,267 |
| Rothwell | - | 38,276 | 38,276 | - | 38,272 | 38,272 |
| Salterforth | - | 3,696 | 3,696 | - | 3,695 | 3,695 |
| Scapegoat Hill | - | 318,963 | 318,963 | - | 270,925 | 270,925 |
| Scarborough‐Albemarle | - | 21,033 | 21,033 | - | 21,031 | 21,031 |
| Sheffield‐Cemetery Road | 11,000 | 406,136 | 417,136 | 11,000 | 711 | 11,711 |
| Sheffield‐Darnall Road | - | 18,153 | 18,153 | - | 18,151 | 18,151 |
| South Craven | 118,573 | 20,475 | 139,048 | 102,713 | 26,597 | 129,310 |
| Todmorden‐Roomfield | - | 4,525 | 4,525 | - | 4,525 | 4,525 |
| Todmorden‐Vale | - | 25,964 | 25,964 | - | 25,961 | 25,961 |
| Total | 303,828 | 3,195,149 | 3,498,977 | 271,333 | 2,421,468 | 2,692,801 |
Page 31 of 31