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2020-12-31-accounts

African Pastors’ Fellowship

Trustees’ Report and Financial Statements for the year ended 31 December 2020

Registered Charity number 282756

Karen Hanlan Independent Examiner Limited

African Pastors’ Fellowship Financial Statements for the year ended 31 December 2020

Contents

Page
Report of the trustees 3-8
Statement of Trustees responsibilities 9
Report of the independent examiner 10
Statement of financial activities 11
Balance sheet 12
Principle accounting policies 13-15
Notes to the financial statements 16-28

2

African Pastors’ Fellowship Financial Statements for the year ended 31 December 2020

Report of the trustees

The trustees of the African Pastors’ Fellowship (“the Charity”) have pleasure in presenting their report and financial statements for the year ended 31 December 2020. The financial statements comply with the Charities Act 2011, the Constitution and 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 (FRS102) (updated 1 January 2019).

OBJECTIVES AND ACTIVITIES

As set out in its Constitution, the Charity is established for the advancement of the Christian Religion by the provision of financial, spiritual and medical assistance to Church leaders of all denominations and their dependents in Africa, and other such countries as from time to time may be determined, and the training of such leaders. This is achieved by providing:

In shaping the objectives for the year and planning activities, the Trustees have considered the Charity Commission’s guidance on public benefit, including the guidance ‘public benefit: running a charity (PB2)’.

The vision of APF is to empower Christian leaders so as to enable effective ministry that delivers community transformation through the local church.

The mission of APF is to develop the capacity of Christian leaders in partnership with African agencies to provide training, equipment and pastoral care (APF pastor the pastors that pastor the pastors).

The ultimate goal of our charitable objectives is to bring community transformation, mainly in rural sub-Saharan east Africa, through the local church (registered networks, denominations and related partner NGOs). This is achieved largely through investment in capacity building of faith community leaders (both lay and ordained). The future strategy is to resource and release indigenous leaders with vision, capacity and an existing ministry ‘pastoring pastors’ so as to increase, multiply and better culturally contextualise the work. Some projects bring obvious and immediate community transformation (such as sustainable domestic solar technology) while other projects (such as training in family values, entrepreneurship and sustainable farming) will bring lasting benefit in the longer-term.

3

African Pastors’ Fellowship Financial Statements for the year ended 31 December 2020

ACHIEVEMENTS AND PERFORMANCE

Activity

Despite the Covid-19 pandemic APF enjoyed a productive year. Although some aspects of our work were not possible for some or all of the year, notably the expansion and scaling of eVitabu in Africa and gathered training events, the Covid-19 Relief Fund, established as early as April 2020 gained substantial donor support and a large number of Covid-19 related mitigation projects and pastoral grants were disbursed. Highlights from APF’s activities over the course of the year include:

4

African Pastors’ Fellowship Financial Statements for the year ended 31 December 2020

Achievements

The activity outlined above represents a remarkable return on limited resources in exceptionally challenging circumstances. It is hugely valuable in meeting the charity’s core objectives. Although limiting progress on our strategic objectives around eVitabu, the pandemic served as a helpful reminder that a key part of APF’s ministry is pastoral care, which sometimes needs to be expressed in tangible and practical ways.

----- Start of picture text -----
“eVitabu is a library where all the books
I need are in this one app”
Pastor Alex Sokiri, Morobi Refugee Camp
----- End of picture text -----

----- Start of picture text -----
“We have used eVitabu so much and have
seen many lives changed.”
Revd Francis Esomu, Atirir Bible School
----- End of picture text -----

In the UK

APF has an outstanding and dedicated team of full and part-time staff which is supported by an experienced Trustees board. Some of the notable UK activity and achievement during 2020 was as follows:

5

African Pastors’ Fellowship Financial Statements for the year ended 31 December 2020

FINANCIAL REVIEW

Finances in 2020

2020 was a satisfactory year from a financial perspective. Overall, income was down by approximately 10% or £16,000, but this masked a pleasing increase in donations and gifts of £20,000. However, this was offset by a reduction of around £10,000 in grants received and £27,000 in legacies received.

Expenditure was down by 14% or £24,000 reflecting our Covid-19 induced inability to visit Africa as often as we had budgeted or to move ahead with a range of African projects during lockdown periods.

The result of all this is that restricted funds are at a very high level (£44,933). We are acutely aware of this and are budgeting to reduce these funds as soon as it is prudent to do so.

We remain very grateful for the generosity of our supporters who continue to provide for the work of APF through regular giving, responding to appeals and from gifts in wills. We also continue to benefit from generous gifts from grant making trusts.

Overall, our finances remain satisfactory, enabling us to move forward with our strategic objectives.

Pension Liabilities and Reserves Policy

As explained below, the accounting policies of FRS102 require us to include as a liability agreed deficit contributions to be paid to the Baptist Pension Scheme over the next 8 years. At the year end, that liability was £42,513 (2019: £47,317).

The effect of this in our accounts is to reduce our reserves by this amount leaving us with funds as follows:

General un-restricted funds
Designated pension reserve
Total un-restricted funds
Restricted funds
Total funds		 £
45,764
(42,513)
3,251
44,933
48,184

As noted above the pension reserve will crystallise over the next 8 years and consequently the Trustees feel it appropriate to exclude this amount from general funds when making decisions regarding the reserves policy and future expenditure. Therefore, the Trustees have agreed that

6

African Pastors’ Fellowship Financial Statements for the year ended 31 December 2020

the current policy remains appropriate, which is to maintain, as a minimum, sufficient general funds to cover at least three months’ unavoidable costs, being approximately £22,000.

The Trustees are confident that the charity will have sufficient cashflows to meet the annual liabilities as they become due, and, at this stage, see no reason to curtail charitable expenditure from planned levels in order to maintain reserves sufficient to meet the liability in full over the next 8 years. The Trustees will, however, continue to monitor this situation carefully.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document

The African Pastors’ Fellowship is a registered charity (No. 282756) and governed by its Constitution originally adopted on 1 June 1981 and subsequently amended on 27 November 1990, 16 June 1999 and 27 March 2003.

Appointment of trustees, induction & training

New Trustees are appointed by invitation to join the Board given that they have the necessary skills and experience to contribute to the Trust’s activities and to be able to discharge their obligations as Trustees.

Management

The Trustees delegate the day to day running and administering of the Charity and its activities to the CEO and UK staff team.

REFERENCE AND ADMINISTRATIVE INFORMATION

Trustees:

Revd Richard Suffern - Chairman Mr John Chambers - Treasurer Revd David J Howard Revd Richard Tucker Revd Andrew North Mr Andrew Richardson Revd John Martin (resigned 20 May 2020) Mrs Florence Anne Lyttle (appointed 25 Nov 2020)

Chief Executive Officer: Revd David Stedman

Projects Coordinator: Mr Geoff Holder

Finance Coordinator: Mrs Michelle Anderson (resigned 31 Aug 2020) Mrs Susan Gollins (appointed 1 Aug 2020)

7

African Pastors’ Fellowship Financial Statements for the year ended 31 December 2020

Charity Number: 282756

Registered Office: Independent Examiner: Station House Karen Hanlan, ACA Station Approach Karen Hanlan Independent Examiner Limited Adisham 12 Waterloo Close Canterbury Wellesbourne CT3 3JE CV35 9JG

Bankers:

Yorkshire Bank CAF Bank Limited CCLA Investment Management 7-11 High Street 25 Kings Hill Avenue Senator House Coventry Kings Hill 85 Queen Victoria Street CV1 5SB West Malling London ME19 4JQ EC4V 4ET

Approved by the Board and signed on its behalf by:

Revd Richard Suffern Date Chairman of Trustees

8

African Pastors’ Fellowship Financial Statements for the year ended 31 December 2020

Statement of trustees’ responsibilities

The Trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and UK Accounting Standards including Statement of Recommended Practice 2015 ‘Accounting and Reporting by Charities’.

The trustees are required to prepare financial statements for each financial year which give a true and fair view of the state of the affairs of the Charity and of the surplus or deficit incurred by the Charity for that year. In preparing those financial statements the trustees are required to:

The trustees have overall responsibility for ensuring that the Charity has an appropriate system of controls, financial and otherwise.

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy, at any time, the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011.

They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities and to provide reasonable assurance that:

9

African Pastors’ Fellowship Financial Statements for the year ended 31 December 2020

Independent Examiner’s Report to the Trustees of the African Pastors’ Fellowship

I report to the trustees on my examination of the accounts of the African Pastors Fellowship (‘the Charity’) for the year ended 31 December 2020 which are set out on pages 11-28.

Responsibilities and basis of report

As the charity trustees you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the 2011 Act’).

I report in respect of my examination of the Charity’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner’s statement

I have completed my examination. I can confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

1) accounting records were not kept in respect of the Charity as required by section 130 of the 2011 Act; or

2) the accounts do not accord with those records; or

3) the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair’ view which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Karen Hanlan, Institute of Chartered Accountants, England & Wales Karen Hanlan Independent Examiner Limited 12 Waterloo Close, Wellesbourne, CV35 9JG

Date

10

African Pastors’ Fellowship Financial Statements for the year ended 31 December 2020

Statement of financial activities

Un- Total Total
restricted Restricted funds funds
funds funds 2020 2019
Note £ £ £ £
INCOME FROM:
Donations and legacies 1 81,601 63,843 145,444 162,253
Other trading activities 2 2,391 - 2,391 1,173
Investments 3 - 3 57
────── ────── ────── ──────
TOTAL INCOME 83,995 63,843 147,838 163,483
────── ────── ────── ──────
EXPENDITURE ON:
Raising Funds (19,626) - (19,626) (26,855)
Charitable activities (70,167) (54,693) (124,860) (141,605)
Other expenditure (772) - (772) (1,150)
────── ─────── ─────── ───────
TOTAL EXPENDITURE 3 (90,565) (54,693) (145,258) (169,610)
────── ────── ─────── ───────
Net gains on investments
2,745 - 2,745 7,235
────── ────── ─────── ───────
Net (expenditure)/ income (3,825) 9,150 5,325 1,108
Transfers between funds (9,385) 9,385 - -
Other recognised gains/(losses) 12 1,840 - 1,840 (717)
────── ────── ─────── ───────
NET MOVEMENT IN FUNDS (11,370) 18,535 7,165 391
RECONCILIATION OF FUNDS ────── ───── ────── ──────
Total funds brought forward 14,621 26,398 41,019 40,628
────── ─────── ─────── ───────
Total funds carried forward 3,251 44,933 48,184 41,019
═════ ═════ ═════ ═════

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

11

African Pastors’ Fellowship Financial Statements for the year ended 31 December 2020

Balance sheet

Notes
Fixed Assets
Tangible assets
5
Investments
6
Current Assets
Debtors
7
Cash at bank and in hand
Total current assets
Current Liabilities
Creditors: amounts falling due within one year
8
Net current assets
Creditors: amounts falling due in more than one
year
9
Net assets
Funds of the Charity:
Restricted Funds
10
Unrestricted Funds
-
General
10
-
Designated pension liability
10
Total un-restricted funds
Total funds of the Charity		 2020
2019
£
£
-
-
55,374
52,861
55,374
52,861
18,553
23,408
28,087
14,527
46,640
37,935
(16,387)
(7,447)
30,253
30,488
(37,443)
(42,330)
48,184
41,019
44,933
26,398
45,764
61,938
(42,513)
(47,317)
3,251
14,621
48,184
41,019

The accompanying accounting policies and notes form part of these financial statements.

Approved by the Trustees and signed on their behalf by:

Revd Richard Suffern Chairman of Trustees

Date

12

African Pastors’ Fellowship Financial Statements for the year ended 31 December 2020

Principal accounting policies

Basis of preparation

The financial statements have been prepared in accordance with the Charities Act 2011 and 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) (updated 1 January 2019) – (Charities SORP (FRS102)) and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102).

The Charity meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

Going Concern

The financial statements have been prepared on a going concern basis which assumes that the charity will continue to operate. The validity of this assumption is dependent upon the continuance of support from its donors. The charity’s budget for 2021 shows that the charity will be able to operate in the foreseeable future. Based on this understanding the trustees believe that it remains appropriate to prepare the financial statements on a going concern basis. The financial statements do not include any adjustments, which would result from the basis of preparation being inappropriate.

Funds

General accumulated funds are unrestricted funds available for general purposes and include funds designated for a particular purpose; the use of such funds remains at the discretion of the trustees.

Restricted funds are funds subject to conditions imposed by the donor or by specific terms of the appeal under which the funds are raised. The restrictive conditions are binding upon the Charity.

Income and expenditure

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item of income have been met, it is probable that the income will be received and the amount can be measured reliably. Income relating to future periods is deferred until activity takes place.

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Staff costs are allocated to expenditure categories in accordance with the amount of time spent by staff across the different activities in which the Charity operates.

13

African Pastors’ Fellowship Financial Statements for the year ended 31 December 2020

Principal accounting policies (continued)

Irrecoverable VAT is allocated to the expense heading to which it relates in accordance with standard accounting practice

Donated services and facilities

Donated professional services and donated facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item is probable and the economic benefit can be measured reliably. In accordance with the Charities SORP FRS 102, general volunteer time is not recognised.

On receipt, donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay for the for the facilities provided; a corresponding amount is then recognised in expenditure in the period of receipt.

Investment income

Bank interest and dividends are shown on the basis of amounts receivable in the year.

Tangible fixed assets

Depreciation is provided at a rate calculated to write off the cost on a straight-line basis over the estimated useful life of the asset at the following rates:

Office & Computer equipment - 3 years

Fixed assets are capitalised when their cost exceeds £500.

Investments

Investments are initially recognised at cost and subsequently measured at their market value as at the balance sheet date using the closing quoted market price. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year.

Debtors

Trade and other debtors are recognised at the settlement amount due. Prepayments are valued at the amount prepaid net of any trade discounts due.

Creditors

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

Taxation

As a registered charity, no provision is considered necessary for taxation.

14

African Pastors’ Fellowship Financial Statements for the year ended 31 December 2020

Principal accounting policies (continued)

Pensions

The Charity makes contributions to a Pension Scheme at rates determined by the rules of the scheme. Contributions are charged to employee costs in the year in which they are payable.

The Charity also participates in the Baptist Pension Scheme and has been notified of the estimated employer debt on withdrawal from the scheme based on the financial position of the scheme as at 31 December 2016. See note 12 for further information.

15

African Pastors’ Fellowship Financial Statements for the year ended 31 December 2020

Notes to the financial statements

1. Income from donations and legacies

Gifts and donations
Gift Aid receivable
Legacies receivable
Grants
Donated facilities/services
Gifts and donations
Gift Aid receivable
Legacies receivable
Grants
Donated facilities		 2020
Un-
restricted
Restricted
Total
£
£
£
65,456
33,671
99,127
11,150
-
11,150
1,533
3,572
5,105
-
26,600
26,600
3,462
-
3,462
81,601
63,843
145,444
2019
Un-
restricted
Restricted
Total
£
£
£
62,080
17,200
79,280
10,616
-
10,616
29,380
2,500
31,880
2,750
34,727
37,477
3,000
-
3,000
107,826
54,427
162,253

Donated facilities comprise the use of office space provided free of charge.

2. Income from trading activities

Income from trading activities
Fundraising events
Fees receivable		 2020
2019
£
£
1,361
1,173
1,030
-
2,391
1,173

16

African Pastors’ Fellowship Financial Statements for the year ended 31 December 2020

Notes to the financial statements (continued)

3. Analysis of expenditure

Analysis of expenditure
2020
Raising
Charitable		 Other Total
funds activities
Expenditure
£ £ £ £
Investment managers fees 233 - - 233
Salaries (including £8,241 restricted) 18,039 59,669 - 77,708
Printing & publicity 1,354 - - 1,354
African project costs - restricted - 46,453 - 46,453
Africa conference & training - 517 - 517
African visit & travel costs - 2,262 - 2,262
News & Prayer publications - 4,875 - 4,875
UK office costs (including in-kind £3,000) - 5,543 - 5,543
Postage & stationary - 777 - 777
UK travel & hospitality - 1,160 - 1,160
UK Training - 1,950 - 1,950
Website costs - 754 - 754
Independent Examiners' fee - 900 - 900
Trustees meetings and expenses - - - -
Interest cost on pension liability - - 772 772
Total 19,626 124,860 772
145,258
2019
Raising
Charitable		 Other
Total
funds
activities		 Expenditure
£ £ £
£
Investment managers fees 255 - -
255
Salaries (including £7,054 restricted) 18,480 55,436 -
73,916
Printing & publicity 2,026 - -
2,026
Fundraising consultants 5,562 - -
5,562
Fundraising events 532 - -
532
African project costs - restricted - 54,786 -
54,786
African visit & travel costs - 12,464 -
12,464
Impetus (news and prayer letter) publications - 6,123 -
6,123
UK office costs (including in-kind £3,000) - 6,404 -
6,404
Postage & stationery - 1,040 -
1,040
UK travel & hospitality - 3,707 -
3,707
UK training costs - 360 -
360
Independent Examiners' fee - 900 -
900
Trustees meetings and expenses - 385 -
385
Interest cost on pension liability - - 1,150
1,150
Total 26,855
141,605		 1,150
169,610

17

African Pastors’ Fellowship Financial Statements for the year ended 31 December 2020

Notes to the financial statements (continued)

4. Analysis of staff costs, trustee remuneration and expenses

Salaries
National Insurance
Pensions (Baptist Pension Scheme – see note 12)
Pensions (Other schemes)
Total
Average number of employees (full-time equivalent)		 2020
2019
£
£
70,251
66,334
2,745
3,013
4,250
4,166
462
403
77,708
73,916
No.
No.
2
2

No employee had employee benefits in excess of £60,000 (2019: £nil).

Key management personnel comprise the Chief Executive Officer and the Trustees. Employee benefits for key management personnel total £50,481 including pension contributions.

The charity Trustees were not paid nor received any other benefits from employment or provision of professional services in the year (2019 £nil). Travel expenses and training course costs totalling £471.80 were reimbursed to two Trustees in 2019 (2020 £nil). One trustee undertook a trip to Rwanda in 2019 on APF’s behalf and some of his subsistence costs for that trip were covered by the charity.

5. Tangible fixed assets

Cost
At beginning and end of year
Depreciation
At beginning and end of year
Net Book Value
At 31 December 2019 and 2018		 Office
Equipment
£
3,501
3,501
-

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African Pastors’ Fellowship Financial Statements for the year ended 31 December 2020

Notes to the financial statements (continued)

6. Investments

At beginning of the year
Additions
Disposals
Revaluations
At end of year
Historical cost
Investments comprised:
Listed investment funds
Cash awaiting investment
7. Debtors
Prepayments
Gift aid receivable
Legacies receivable
Other income receivable
8. Creditors: amounts falling due within one year
Accruals
Other creditors including taxation and social security
Deferred income
Liability for pension fund deficit contributions (see note 12)		 2020
2019
£
£
52,526
55,280
-
11
-
(10,000)
2,745
7,235
55,271
52,526
48,000
48,000
55,271
52,526
103
335
55,374
52,861
2020
2019
£
£
1,493
-
40
1,158
17,020
22,000
-
250
18,553
23,408
2020
2019
£
£
1,950
905
1,767
1,555
7,600
-
5,070
4,987
16,387
7,447

Deferred income relates to grants received for the benefit of the next financial year.

19

African Pastors’ Fellowship Financial Statements for the year ended 31 December 2020

Notes to the financial statements (continued)

9. Creditors: amounts falling due in more than one year

Liability for pension fund deficit contributions (see note 12) 2020
2019
£
£
37,443
42,330

10. Funds

Restricted funds
- Local Language Bibles
- eVitabu
- Bicycles
- Pastoral Care
- Training
- St Paul’s TC (Kapsabet)
- Children’s Workers Training
- Growing Greener
- Jubilee Trees
- Other Solar projects
- Daily Bread (Solar oven)
- Atirir Bible School
- Covid Relief
- Mozambique Partnerships
Unrestricted funds
- General fund
- Designated pension reserve
Total		 Balance at
beginning
of year
Income
2020
Expenditure
Transfers
Gains/
(losses)
Balance
at end
of year
£
£
£
£
£
£
6,278
6,500
(957)
-
-
11,821
2,754
22,723
(10,486)
-
-
14,991
3,872
901
(102)
-
-
4,671
-
5,030
(6,026)
4,900
-
3,904
-
950
(9,701)
8,751
-
-
-
3,000
(2,434)
-
-
566
-
3,572
(921)
-
-
2,651
625
6,000
(7,260)
635
-
-
2,563
1,907
(3,171)
-
-
1,299
1,921
-
(813)
1,284
-
2,392
8,145
-
-
(8,145)
-
-
-
928
(101)
-
-
827
-
12,332
(12,721)
1,960
-
1,571
240
-
-
-
-
240
26,398
63,843
(54,693)
9,385
-
44,933
61,938
83,995
(89,793)
(13,121)
2,745
45,764
(47,317)
-
(772)
3,736
1,840
(42,513)
41,019
147,838
(145,258)
-
4,585
48,184

Transfers to restricted funds relate to spending on projects from general funds where project funding was insufficient. Other transfers relate to a reallocation of funds to a different project on agreement of the relevant funder.

20

African Pastors’ Fellowship Financial Statements for the year ended 31 December 2020

Notes to the financial statements (continued)

Restricted funds
- Other literature (OM Bibles)
- eVitabu (e-training tablet)
- Transport (Bikes)
- Pastoral Care
- Training Uganda
- Growing Greener Malawi
- Jubilee Trees
- Let There Be Light (Solar
project)
- Daily Bread (Solar oven)
- Atirir Bible School
- Africa Hope (Project Malawi)
- Mozambique Partnerships
Unrestricted funds
- General fund
- Designated pension reserve
Total		 Balance at
beginning of
year
Income
2019
Expenditure
Transfers
Gains/
(losses)
Balance
at end
of year
£
£
£
£
£
£
1,010
7,000
(1,732)
-
-
6,278
-
16,090
(13,336)
-
-
2,754
5,028
3,268
(4,424)
-
-
3,872
-
822
(2,044)
1,222
-
-
400
11,409
(26,249)
14,440
-
-
-
7,269
(6,644)
-
-
625
-
5,048
(2,485)
-
-
2,563
1,921
-
-
-
-
1,921
8,581
-
(436)
-
-
8,145
-
3,691
(3,885)
194
-
-
1,015
(410)
(605)
-
-
-
-
240
-
-
-
240
17,955
54,427
(61,840)
15,856
-
26,398
72,997 109,056
(106,620)
(20,730)
7,235
61,938
(50,324)
-
(1,150)
4,874
(717)
(47,317)
40,628
163,483
(169,610)
-
6,518
41,019

Transfers to restricted funds relate to spending on projects from general funds where project funding was insufficient.

21

African Pastors’ Fellowship Financial Statements for the year ended 31 December 2020

Notes to the financial statements (continued)

Funds are for the following purposes:

Local Language Bibles (previously ‘Other literature (OM Bibles)’) – Across rural Africa, church leaders have very limited access to Bibles, especially in their own languages. Funding has been used to purchase and distribute Bibles to churches in remote areas through APF partners, for example to Pokot and Ilchamus people groups in western Kenya. Funding was provided through OM Special Projects.

eVitabu (previously ‘eVitabu (e-training tablet)’)– Funding is allocated for research, development, production and delivery of eVitabu, an e-training mobile app. Remaining true to APF’s pioneering heritage and focus on training, eVitabu places an entire library of text, audio and video resources into the hands of African church and community leaders. eVitabu can be installed on Android devices popular in Africa and contains resources from academic institutions, development agencies, publishers and prominent Christian leaders in a range of languages. 2020 funding for eVitabu includes sponsorship of users and grants from the Deo Gloria Trust, Hinchley Charitable Trust, Tufton Charitable Trust, River Trust, Souter Charitable Trust, Radstock Trust, Seedfield Trust and others.

Bicycles (previously ‘Transport (Bikes)’) – Bicycles are an invaluable tool in rural Africa enabling church leaders to visit the communities they serve more easily, transport crops to and from market and generate additional household income. Funding in 2020 came from individual donors and St Luke’s Church, Grayshott. During 2020, a bicycle grant was made to a partner in Uganda.

Pastoral Care – The Pastoral Care Fund enables APF to respond quickly when church leaders and their families experience serious and unforeseen difficulties or require travel grants and educational fees. Examples of how Pastoral Care grants were used during 2020 includes covering emergency medical costs in Uganda, income generation schemes for those in financial trouble in Kenya and supporting a land purchase in South Sudan when a church faced eviction.

Training (previously ‘Training Uganda’) – Funding supports theological education and pastoral formation training workshops in marginalised communities. Examples include workshop series run by partners in hard-to-reach areas of western Kenya and north-west Tanzania where most rural pastors have no formal training. Funding was also allocated to Rwanda where government regulations require pastors to have accredited theological qualifications through Wisdom Bible School and Église Évangélique de la Bonne Volonté au Rwanda.

St Paul’s TC (Kapsabet) – A three-way partnership between APF, St Barbara’s Church in Coventry and St Paul’s Theological College in Kapsabet, Kenya. Funding is allocated for infrastructure improvements at St John’s Theological College and to make good theological education more accessible across the region.

22

African Pastors’ Fellowship Financial Statements for the year ended 31 December 2020

Notes to the financial statements (continued)

Children’s Workers Training – ‘In memory’ gifts used for children’s and youth leader training in Rwanda through Word of Life in Western Province and Église Évangélique de la Bonne Volonté au Rwanda in Northern Province.

Growing Greener – APF partner New Life Christian Church runs a church-community poverty reduction and climate change adaptation project in rural southern Malawi called Growing Greener. The initiative combines community-based training in sustainable agriculture alongside a gospel message. Funding for Growing Greener comes from individual donations, an annual grant from Operation Agri grant and from Maranatha Community Church, Trowbridge. During 2020, the project was also piloted in Zambia by new APF partner Word of God Ministries.

Jubilee Trees – Working in partnership with the Baptist Union of Uganda and Climate Stewards, APF’s Jubilee Trees project is planting thousands of indigenous trees around local Ugandan churches to provide shade, timber and fruit, and improve soils, water retention and ecosystems. By capturing carbon in the atmosphere, the trees are combatting climate change. Alongside donations from individual supporters and several UK churches, Climate Stewards match fund 50% of the project’s budget.

Other Solar projects – APF works with church partners in Morogoro Diocese, Tanzania and Kigeme Diocese, Rwanda to provide household solar lighting and mobile phone charging income generation opportunities for church leaders. Using a small percentage of their mobile phone charging profits, pastors are paying back into the schemes so more solar units can be bought and others can benefit.

Daily Bread (Solar Oven) – With the agreement of donors, funding restricted to supporting a solar oven project for Atirir Bible School in Uganda was reallocated to Pastoral Care and Other Solar Projects categories. This was because efforts by the project partner to purchase the solar oven and build the required infrastructure had been unsuccessful.

Atirir Bible School – Funding supports theology students attending Atirir Bible School in rural north-eastern Uganda. Funding sources for 2020 includes individual donations and Canterbury Baptist Church.

Covid Relief – Established in April 2020, APF’s Covid-19 relief campaign gained substantial donor support for a wide range of coronavirus and lockdown hardship related mitigation measures. Following a successful social media campaign, over 40 grants were made to African partners and contacts who applied for Covid-19 funding of between £50 and £500. Examples of grants made include food relief to vulnerable families via the Central Rift Baptist Convention in Kenya, the purchase of hygiene and sanitation resources in Uganda and South Sudan and PPE equipment in Burundi.

Mozambique Partnerships – Initial links were made to begin working more closely with the Baptist Convention in Mozambique and a team of IT contacts in the country.

23

African Pastors’ Fellowship Financial Statements for the year ended 31 December 2020

Notes to the financial statements (continued)

11. Analysis of net assets between funds

Fund balances at 31 December 2020 are represented by:
Fixed Assets
Investments
Current assets
Current liabilities
Long term liabilities
Total		 Unrestricted
Funds
Restricted
Funds
Total
Funds
£
£
£
-
-
-
55,374
-
55,374
1,707
44,933
46,640
(16,387)
-
(16,387)
(37,443)
-
(37,443)
3,251
44,933
48,184
Fund balances at 31 December 2019 are represented by:
Fixed Assets
Investments
Current assets
Current liabilities
Long term liabilities
Total		 Unrestricted
Funds
Restricted
Funds
Total
Funds
£
£
£
-
-
-
52,861
-
52,861
11,537
26,398
37,935
(7,447)
-
(7,447)
(42,330)
-
(42,330)
14,621
26,398
41,019

12. Pension commitments

Baptist Pension Scheme

The Charity is an employer participating in a pension scheme known as the Baptist Pension Scheme (“the Scheme”), which is administered by the Pension Trustee (Baptist Pension Trust Limited). The Scheme is a separate legal entity and the assets of the Scheme are held separately from those of the Employer and other participating employers.

For any month, each participating employer in the Scheme pays contributions as set out in the Schedule of Contributions in force at that time.

The Scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. This is because it is not possible to attribute the Scheme’s assets and liabilities to specific employers and means that contributions are accounted for as if the Scheme were a defined

24

African Pastors’ Fellowship Financial Statements for the year ended 31 December 2020

Notes to the financial statements (continued)

contribution scheme. The pensions costs charged to the SOFA in the year are contributions payable towards benefits and expenses accrued in that year, plus any impact of deficiency contributions (see below).

One member of staff is eligible to join the Scheme, which is not contracted out of the State Second Pension.

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 Legal and General Life Assurance Society Limited. 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 in the event that 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 Unum Limited. Members of the Basic Section pay reduced contributions of 5% of Pensionable Income, and their employers also pay a total of 5%. The further 4% contribution rate is reduced to 3% for Employer contributions made to the Segregated DC Arrangement.

Benefits in respect of service prior to 1 January 2012 are provided through the Defined Benefit (DB) Plan within the Scheme. The main benefits for pre-2012 service were a defined benefit 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. 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.

Actuarial valuation as at 31 December 2016

A formal valuation of the Defined Benefit (DB) Plan was performed at 31 December 2016 by a professionally qualified Actuary using the Projected Unit Method. The market value of the DB Plan assets at the valuation date was £219 million.

The valuation of the DB Plan revealed a deficit of assets compared with the value of liabilities of £93 million (equivalent to a past service funding level of 70%). The Charity and the other employers supporting the DB Plan are collectively responsible for funding this deficit.

25

African Pastors’ Fellowship Financial Statements for the year ended 31 December 2020

The key assumptions underlying the valuation were as follows:

The keyassumptions underlyingthe valuation were as follows:
Type of assumption **%pa **
RPIprice inflation assumption 3.50
CPIprice inflation 2.75
Minimum Pensionable Income increases(CPIplus 1.0%pa) 3.50
Assumed investment returns
-
Pre-retirement		 3.50
-
Post retirement		 2.25
Deferredpension increases
-
Pre April 2009		 3.50
-
Post April 2009		 2.50
Pension increases
-
Main Schemepension Pre-April 2006		 3.70
-
Main Schemepension Post April 2006		 2.00

The next actuarial valuation of the DB Plan within the Scheme is due to take place not later than as at 31 December 2019.

As there are a large number of contributing employers participating in the Scheme, the Charity is unable to identify its share of the underlying assets and liabilities of the schemes. Accordingly, due to the nature of the Scheme, the profit and loss charge for the period represents the employer contributions payable. The total pension cost for the Charity in relation to this scheme is £4,250 (2019 £4,166), excluding deficiency contributions.

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.

Consequent upon the departure of the previous Director in 2010, the Charity had a cessation event under Section 75 of the Pensions Act 1995. This makes the Charity liable for the proportion of the overall deficit (assessed by reference to the cost of securing benefits by the purchase of annuities) applicable to its previous Director who was a member of the Scheme. At present the Charity is paying the ongoing deficiency contributions outlined above, and the balance sheet liability below is based on those deficiency contributions. However, the Pension Scheme Trustee has the right to quantify and seek payment of the debt at any time.

26

African Pastors’ Fellowship Financial Statements for the year ended 31 December 2020

Notes to the financial statements (continued)

Movement in balance sheet liability

Section 28.11A of FRS102 requires agreed deficit recovery payments to be recognised as a liability. The movements in the provision are set out below:

Balance sheet liability at start of year
Deficiency contributions paid
Interest cost
Other recognised (gains)/losses *
Balance sheet liability at end of year		 2020
2019
£
£
47,317
50,324
(3,736)
(4,874)
772
1,150
(1,840)
717
42,513
47,317

This liability represents the present value of the deficit contributions agreed as at 31 December 2020 and has been valued using the following assumptions set by reference to the duration of the deficit recovery payments:

Discount rate
Future increases to minimum pensionable income		 2020
2019
1.4%
1.7%
2.9%
3.2%

13. Transactions with related parties

There were the following transactions with related parties during the year:

Donations and gifts, without conditions, from 5 Trustees - £6,160 (2019: £7,305)

14. Controlling Interests

The Charity is controlled by the Trustees.

27

African Pastors’ Fellowship Financial Statements for the year ended 31 December 2020

Notes to the financial statements (continued)

15. Prior Year Comparative Statement of Financial Activities for 2019

Restricted Unrestricted Total
funds funds funds
£ £ £
Income:
Donations and legacies 54,527 107,826 162,253
Other trading activities - 1,173 1,173
Investment income – bank interest - 57 57
────── ────── ──────
Total income 54,527 109,056 163,483
────── ────── ──────
Expenditure on:
Raising Funds - (26,855) (26,855)
Charitable Activities (61,840) (79,765) (141,605)
Other expenditure - (1,150) (1,150)
─────── ─────── ───────
Total expenditure (61,840) (107,770) (169,610)
─────── ────── ───────
Net gains on investments - 7,235 7,235
─────── ────── ───────
Net (expenditure)/ income (7,413) 8,521 1,108
Transfers between funds 15,856 (15,856) -
Other recognised gains/losses - (717) (717)
────── ───── ──────
Net movement in funds 8,443 (8,052) 391
────── ───── ──────
Reconciliation of funds
Total funds at beginning of year 17,955 22,673 40,628
─────── ─────── ───────
Total funds at end of year 26,398 14,621 41,019
══════ ═══════ ══════

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