Charity registration number NIC106654
Company registration number NI000152 (Northern Ireland)
NORTHERN BAPTIST CORPORATION LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
NORTHERN BAPTIST CORPORATION LIMITED
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees Mr S Glasgow Mr R Millar Mr D Nicholl Mr J McCluskey Mr P Smyth Pastor E Ewart Pastor N Watson Secretary Mr D Ramsey Charity number NIC106654 Company number NI000152 Registered office The Baptist Centre 19 Hillsborough Road Moira BT67 0HG Auditor GMcG BELFAST Chartered Accountants & Statutory Auditor Alfred House 19 Alfred Street Belfast BT2 8EQ Bankers Danske Bank Donegall Square West Belfast BT1 6JS Solicitors Johnsons Johnson House 50/56 Wellington Place Belfast BT1 6GF
(Appointed 13 May 2023) (Appointed 20 May 2024)
NORTHERN BAPTIST CORPORATION LIMITED
CONTENTS
| Page | |
|---|---|
| Trustees' report | 1 - 4 |
| Independent auditor's report | 5 - 10 |
| Statement of financial activities | 11 |
| Balance sheet | 12 |
| Notes to the financial statements | 13 - 24 |
NORTHERN BAPTIST CORPORATION LIMITED
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2023
The trustees, who are also directors for the purposes of company law, have pleasure in presenting their report and the financial statements of Northern Baptist Corporation Limited ('the Corporation') for the year ended 31 December 2023.
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Objectives and activities
The Trustees have taken cognisance of the Charity Commission for Northern Ireland's guidance on public benefit as defined in the Charities Act (Northern Ireland) 2008.
Northern Baptist Corporation Limited is established to advance the Christian faith for the public benefit by promoting the interests of Baptist Churches in Ireland. This benefit extends to the public through the member churches of the Association of Baptist Churches in Ireland (Association) and through the work they do together as an Association by making known the Christian Gospel of the Lord Jesus Christ and through the provision of premises for public worship, the provision of opportunity for education of those entering ministry, engagement in Christian mission and delivery of a variety of Christian ministries.
Achievements and performance
Throughout the year the Corporation continued its work on behalf of the churches in the Association, providing trustee, financial and legal services.
Trustee Services
Northern Baptist Corporation Limited continues to operate as property holding trustee for Baptist Churches. One property sale took place during the year, and the Corporation took possession of one building following the closure of a church.
Guarantees
The Corporation continues to assist eight churches by way of guarantee over debt. No new guarantees were issued during the year.
Church Loans
The Corporation has provided loans to seven churches to assist with the purchase or renovation of buildings. Five new loans were issued during the year.
Retired Ministers Housing Scheme
Six properties continue to be employed in the Scheme providing housing to retired ministers. No property additions or disposals were made during the year.
Investment
Interest rates improved significantly during the year, allowing the Corporation to resume earning investment income for churches and departments of the Association. During the year the Corporation placed funds in deposit accounts on behalf of five churches.
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NORTHERN BAPTIST CORPORATION LIMITED
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
Achievements and performance (continued)
Support to Association of Baptist Churches in Ireland
The Corporation continued to promote the interests of Baptist Churches in Ireland through supporting the work they do together as an Association in a variety of ways during the year. Financial support was given to the Insight Magazine and to assist with administration costs associated to the ABCI 2013 Retirement Benefits Scheme. The Corporation continues to allow the Association the use of the Baptist Centre as a facility in which to undertake its work.
Association of Baptist Churches in Ireland Ministry Support
During the year the Corporation provided financial support to sustain the work of the Association Ministry Support. Throughout the year this vital function has provided counsel and guidance to over 50 individuals involved in Pastoral Ministry and also support of churches that are without a pastor. This Scheme has proven to be a great help as assistance and advice is given for a variety of settings.
Income Protection Scheme
This valuable Scheme continued to operate on behalf of the churches. This Scheme provides an insurance for churches whose pastor experiences a period of long term illness. There are currently no ongoing claims under this Scheme.
ABCI 2013 Retirement Benefits Scheme (“the Scheme”)
The Corporation continues to provide a guarantee in favour of the Trustee of the Scheme over the Deficit Reduction Contributions to the Scheme as detailed in the schedule of contributions dated 2 December 2022. The Corporation remains in Contingent Assets agreements with the Trustee of the Scheme under which there will be a charge over two properties owned by Northern Baptist Corporation with carrying value of £332,000 and a charge over £175,000 of funds held in escrow.
Financial review
The results for the year are set out in detail on pages 11 to 24. The Corporation recorded net income for the year of £248,602 (2022 – £316,029).
At the year end cash at bank and in hand was £3,780,028 (2022 - £3,648,509). It should be noted that the majority of this balance is represented by deposits held on behalf of Churches, Trusts and Association Departments.
At 31 December 2023, the total funds of the Corporation amounted to £5,681,191 (2022 - £5,436,403). All of the funds of the Corporation are unrestricted funds. However, funds totaling £4,377,665 (2022 - £4,236,786) have been designated by the directors for specific purposes, which are explained in more detail in note 18.
Unrestricted funds are considered to be essential to support the work of the Corporation in promoting the interests of Baptist churches in Northern Ireland, which includes providing financial support to the Association of Baptist Churches in Ireland as required. Unrestricted funds are also essential to provide sufficient funds to cover any unforeseen costs which may arise and to fulfil the legal obligations of the Corporation. The free reserves of the charity at 31 December 2023 are represented by unrestricted and undesignated net current assets and amount to £867,148 (2022 - £781,606).
Conduit funding
The Corporation received £Nil funds from the Dobson Trust during the year which was distributed to a church on behalf of the Dobson Trust. There was no closing balance owing at 31 December 2023 (2022 - £9,625).
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NORTHERN BAPTIST CORPORATION LIMITED
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
Structure, governance and management
Northern Baptist Corporation Limited is a company limited by guarantee and does not have a share capital. It is governed by its Memorandum and Articles of Association, which were most recently updated in February 2018. The liability of each member of the company is limited to an amount not exceeding £1. The Corporation is controlled by the Executive Committee of the Churches' Council of the Association of Baptist Churches in Ireland. Directors are sought according to the needs of the Corporation. New directors are briefed on their legal obligations under charity and company law, the content of the Memorandum and Articles of Association, the committee and decision making process and recent financial performance of the charity.
Responsibility for the day to day running of the charity is delegated to the company secretary, Mr D Ramsey.
The Trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
Mr S Glasgow Mr R Millar Mr D Nicholl Mr J McCluskey Mr P Smyth Mr M Patterson (Resigned 13 May 2023) Mr I Grant (Resigned 11 May 2024) Pastor E Ewart (Appointed 13 May 2023) Pastor N Watson (Appointed 20 May 2024)
Statement of Trustees' responsibilities
The directors, who are also the trustees of Northern Baptist Corporation Limited for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company Law requires the directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
In preparing these financial statements, the directors 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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make judgements and estimates that are reasonable and prudent;
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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; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The directors are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. 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.
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NORTHERN BAPTIST CORPORATION LIMITED TRUSTEES. REPORT (INCLUDING DIRECTORS, REPORT) ICONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Audltor In acrdanC with the company's articles. a resolutlon proposing that GfvlcG BELFAST be reappolnted as auditor of the company will be put * a General Meeting. Small Companles Exemptlon In preparing Ihis report. the directors have taken advantaga of the small companias exemptions provided by section 415A of the Companies Act 2006. Dlsclosure of InforntIOn to audltor Each of Ihe Trustees has confirmed thal Iher8 is no infomlation of %•thich they a aware which Is relevant lo tho audit. but of which the auditor Is unawafe. They have further confirmed that they have laken apprOpal6 slepy to identify such relevant infomiatlon and lo establish that the auditor 18 aware of such infomwtion. The Tru8tee8' report wa8 approved by Ihe Board of Trustees. Mrs la• TfUSte& Mr D Nlcholl Trustee Dated,. Slgl202¢ Dated;.,, 51612ts24
CHART8RED ACCOUNTANT8 NORTHERN BAPTIST CORPORATION LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF NORTHERN BAPTIST CORPORATION LIMITED Opinlon We have audlted the financial statements of Northem 8apti$t Corporalion Limited (the 'charitY) for the year ended 31 December 2023 which comprlse the statement of financial activities, the balance sheet and the notes lo the financ5al statements, Including a summary of significant accounting policies. The finanaal i&porting framework that has been appli8d in thelr preparation is applicable law and United Kingdom Accounting Standards, including Financial Reportlng Standard 102 The Financial Reporting Standard applicable In the UK and Republlc of Ireland (United Kingdom Generally Accepted Accounting Practlce). In our ¢plnlon, the financial statemenls: give a true and fair view of the state of the charitable companvs affairs as at 31 December 2023 and of its Incoming resourc8s and applicatlon of resources, for the year then ended,. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and have been prepared in accordance with the requirements of the Companies Act 2006. Basls for oplnlon We conducted our audit in accordance with Internatlonal Standards on Auditing (UK) (ISAS (UK)) and applicable law. Our responslbilities under those slandards are further described in the Auditoffs responsibilities for the audil ol the financlal statemants section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audlt of the accounts In the UK, including the FRC'S Ethlcal Standard, and we have fulfilled our other &thScal responsibilities In accordance with these requlraments. Vve bellèva that the audlt evldence we have obtained is sufficient and approprlate to provide a basis for our opinlon. Concluslon8 r•lating to golng concorn In auditing the financial statements, we hav8 concluded that the Trustees, use of the going concem ba9 of accounting in th8 preparation of the financial statements is appropriate. Based on the work we have perfonned. we have not identified any material uncertaintlès relatlng to events or Conditions that, individually or collectively, may casl Significant doubt on the charity's ability to continue as a golng concem for a period of at least twelve months from when the financial statements are authorised for Issue. Oui rèsponsibilities and the responsibilities of the Trustee8 With respect to golng conc8m are described in the relevant sectlons of this pOrt. Alfred House 19 Ajfred Street BELFAST BT2 8BQ DX3910 NR Belfa8t so Century Flouse 4rfft Crescent Busine&s Pllrk LISBURN B'I'28 2GN 17 fvIandevillc Stro PORTADOWN Craigcivon BT62 3PB Tel: +44 (0)28 9031 1113 +44 (0)28 9031 OTn Tel: +44 (0)28 9260 7355 Fax: +44 (0)28 9260 16.%6 Tel: +44 {0)28 3833 2801 ITax-. +H (0)28 38&fj 0293 i¥itrth4rn8OfGkGGl1UmIfv1. RYNLV. 0fDweti0Tr4]ANeltw1#erI1 AMEthbtrtsrn. Al¥Ale•fldependethAeulknllIFlT
NORTHERN BAPTIST CORPORATION LIMITED INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF NORTHERN BAPTIST CORPORATION LIMITED Other Infomiat5on The Trustees are responslble for the other information. The other informatSon comprises tha information included in the annual report, other than the financial statements and Ouf auditor's report th8reon. Our opinion on the financial statements does not cover the other infomiation and. except to the extent otherwise explicitly stst8d in our report, we do not express any form of assurance conclusion thoreon. In ¢onnactSon wlth our audit of the financial statements, our responsiblllty Is to read the other Information and, in doing so. consider whether the other Information is materially inconsistent with the financi81 statements or our knowledge obtained in the audit or otherwlse appears lo be materialty misstated. If we identify such malerial Inconsistencies ¢r apparent material misstatem8nts, we are required to delemine wheiher there is 8 mat8rial misslatement in the finan(ial 81atemenls or a materlal misstatement of the other information. If, based on the work we have porfomied, we conclude that there is a material misstatement of this other information, we ara required to raport that fact. We have nothlng to report In this re98rd. Oplnlon$ on oth•r matters proscrlbod by th• Compan1•8 Acl 2006 In our oplnlon, based on the work undertaken in the course of our audlt.. the information given in Ihe Trustees, report for tho financial year for which the financial slatements are prepared, which includes the dSrectors' report prepared for the purposes of company law, Is consislent wllh the financial stalements,. and the directors, report included within the Trustee8' report has been prepared in arxordance wilh applicable legal iequirement$. Mal¢•r• on whlch we ar• r•qulr•d to r•port by exceptlon In the light of tha knowledge and understanding of the charlty and its environment obtalned in the course of the audit, we have not Identified mal?rlal misstatements in the directors, report included within the Trustees. Report, We have nothing to report in respect of Ihe followlng matters in relation to whlch the Companigs Act 2006 require us to report to you if. in our opinion: adequate accounting records have not been kept. or relurns adequate for our audit have not been recèlved from branches not visited by us,. or the financial statements are not in agreement with the accountlng records and returns. or certain disclosures Of truslees, remuneration 8peclfied by law are not made,. or we have nol receiv8d all the Information and explanaiions we require for our audit; or the Twstees were not entrtled to prepare the finanaal statements In accordance wllh the small companl&s regime and take advantage of the small companies, exemptions in preparing the Trustees, Report and from the requirement to prepare a strategic report.
NORTHERN BAPTIST CORPORATION LIMITED INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF NORTHERN BAPTIST CORPORATION LIMITED Réspon8lbllltl•s of Trustees As explained more fully in the statement of Trustees, responsibilitie5, the Trustees, who are also the directors of the charity for the purpose of company law, are responsible for thè preparation of the financial slalemenls and for being satisfied that they give a true and falr view, and for such internal control as the Trustees determlne is necessary to enable the preparation of financial stalaments that are free from material misstatement, whether due to fraud or error. In prepaflng the finan¢lal statements. the Trustees are responsible for assessing tha charity's ability to continue as a going concarn, disclosing, as applicable, matters related lo going concern and using the going concern basis of accounting unless the Trustees either Intend to liquidate the charitable company or to ceas8 Operations. or have no realistic alternative but to do so. Audltorfs re8pon8lbllltle8 for the audit of Ihe flnancial stat•m•nts Our objectives are lo obtain raasonable assurance about whether the financlal statements as a whole afe 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 hlgh level of assurance, but is not a guarantee that an audit conducted in accordance wilh ISAS {UK) wlll always detect a malarial misstatement whén it exists. Misststements can arise from fraud or error and are considered material if. individually or in the aggregate, they could reasonably be expecled to influence the economic decision6 of users taken on the basis of th8se financial stalemenls. The extent to which our procedures are capable of detectlng Irregularllies, including liaud, is detailed below.
NORTHERN BAPTIST CORPORATION LIMITED INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF NORTHERN BAPTIST CORPORATION LIMITED Exlont to which th• audft was con8ldor•d capable of dotéctlng Irr•gularltl•s, Includlng fraud W8 identify and assess the risks of material misstaiement of the financial statements. whether due to fraud or error, and then design and perform audit procedures responsive to those risk5, Induding obtaining audrt evidence that is sufficient and appropriate to provide a basis for our opinion. In Idenllfying and assessing potential risks of material mlsstatement in raspect of irregularllles. including fraud and non-compliances with laws and regulations, we considered the following.. The nature of the industry and sector, control enVInMent and business performance, including the company's remuneration policies for directors, bonus levels and performance targets, if any: Results of our enqulries of management aboul tholr own Klentificatlon and assessment of the risks of irregularltles. Any matters we IdentIfd having obtained and reviewed the company's documentation of their policies and procedures relating to.. Identlfylng, evaluating and complying with laws and regulations and whather they were aware of any instance of non-c¢mpliance: Detecting and responding to the rlsks of fraud and ether they have krThvledge of any actual, suspected or alleged fraud; and The intèrnal controls established to mltlgate risks of fraud or non-compllance wlth laws and regulati¢ns; The matters discussed among the audit engagement team rogardlng how and where fraud might occur in the financial Statements and potential indicators of fraud. As a re8ult of these procedures, we considered th8 Opportunities and incentives that may exisl within the company for fraud and identified the greatest potential for fraud In income recognition. In common with all audits under ISAS (UK), we are al80 required to perform specific procedures to respond to the rlsk of managemant override. We also obtained an undersianding of the legal and regulatory frameworks that the company operales In, focusing on provisions of those laws and regulations that had a direct effed on tho determin8ilon of material amounts and disclosures in the financlal statements. The key laws and regulations we considered in thls context included tha Companies Act 2006, and local tax legislatlon. In addltion, we consldered provlslons of other laws and regulations that do not have a dlr8Ct effeLt on the financial sl8tem8nts bui compllance with which may be fundamental to the company's ability to operate or to avoid a materlal penalty.
NORTHERN BAPTIST CORPORATION LIMITED INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF NORTHERN BAPTIST CORPORATION LIMITED Audtt responso to rlsks Identlfied Our procedures to respond to the risks Identified induded the following: Reviewing the financial statement digclosures and testing to supporting documentation to a•s5 compliance wlth provisions of relevant laws and regulations described as having a direct 8ffect on the financial statement8. Enquiring of management conceming actual and potential liilgation and daim8; Performing analytical procedures to Klentify any unusual or unexpected relationships that may indicate risks of malerial misstatement due to fraud; Reading minutes of meetings of those Charged with govemance and revlevAng correspondence with tax authorities., and In addresslng the risk of Iraud through management override of Controls, testing the appropriateness of Journal entries and other adjuslments; assessing whelher the judgements made in making accounting estimates are indlcative of a potential bias: and 8valuating the business rationale of any slgnificant transactions that are unusual or outside the normal Course of business. We also communi¢8tad relevant Identrfied laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or noTrcompliance with laws and regulations throughout the audit. on9 to the inherant limltatlons of an audit, there 18 an unavoldable risk that we may not have detected some material mis8latemgnts in the financlal statements, even though have properly planned and performed our audit in accordan¢& wlth auditing standards. In addition, as wilh any audit. thera remains a higher risk of non-delection of Irregularities, as they may involve collusion, forgery. intents'onal omissiorbs, misrepre8entations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to delect non- compliance with all la and regulats'ons. A further description of our responsibilfties is available on the Flnanclal Reporting Council's website at.. https:11 w.frc.org,uklauditorsresponslbilities. This description fom)s part of our auditor's report.
NORTHERN BAPTIST CORPORATION LIMITED INDEPENDENT AUDITOR'S REPORT {CONTINUED) TO THE MEMBERS OF NORTHERN BAPTIST CORPORATION LIMITED U60 of our roport This report is made solely to the charitable company's members, 85 8 body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit vffjrk has been undertaken so that we might state to the charItae company's mefflbers 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 charitable company and the charitable company's members as a body. for our audit work. for this report, or for the opinions we have formed. Mr Nlgel FCA (S•nlor Statutory Audltor) for and on behalf of GMGG BELFAST Chartornd Accountanls Statutory Audltor Alfred House 19 Alfred Street Belfast BT2 8EQ 10-
NORTHERN BAPTIST CORPORATION LIMITED
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
| Unrestricted Unrestricted | Unrestricted Unrestricted | ||
|---|---|---|---|
| funds | funds | ||
| 2023 | 2022 | ||
| Notes | £ | £ | |
| Income and endowments from: | |||
| Donations and legacies | 3 | 198,740 | 310,000 |
| Charitable activities | 4 | 184,584 | 183,474 |
| Investments | 5 | 61,146 | 30,513 |
| Other income | 6 | 12,547 | 2,980 |
| Total income | 457,017 | 526,967 | |
| Expenditure on: | |||
| Charitable activities | 7 | 208,415 | 210,938 |
| Net income for the year/ | |||
| Net incoming resources | 248,602 | 316,029 | |
| Other recognised gains and losses | |||
| Other gains or losses | 13 | (3,814) | 11,913 |
| Net movement in funds | 244,788 | 327,942 | |
| Fund balances at 1 January 2023 | 5,436,403 | 5,108,461 | |
| Fund balances at 31 December 2023 | 5,681,191 | 5,436,403 |
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
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NORTHERN BAPTIST CORPORATION LIMITED BALANCE SHEET AS AT 31 DECEMBER 2023 2023 2022 Not•$ Flxed assets Tangible assets Investments 14 16 3,923.549 105.952 3,793,697 105,952 4,029,501 3,899,649 Curr•nt a8•ets Debtors falllng due after one year Debtors falling due wilhin one year Cash at bank and in hand 16 16 863,776 158,429 3,780,028 350.502 97.602 3.648.509 4.802,233 4.096,613 Crodltorn.. amount• falllng due wlthln on• y•ar 17 (3.1 $0,543) (2,559,859) Net current assels 1,651,690 1.536,754 Total as$•ts l••• curfent Ilabllltle• 5.681,191 S,436,403 Incom• fund• Unrestricted lunds Designated lunds General unrestricted funds 4,377,665 1,303.526 4,238,788 1,199.617 5.681,191 5,436.403 5,681.191 5,438,403 These financial slalemenls have bean wepared in accordance with the provisions appll¢able lo companies sublect to the small companies reglm8. The finandal stataments werè approved by the Trustees on .. Mr Gla Tru$t•• Mf D Nltholl TrugQo• Company Reglstratlon No. NIIM>0152 12-
NORTHERN BAPTIST CORPORATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
1 Accounting policies
Charity information
Northern Baptist Corporation Limited is a private company limited by guarantee incorporated in Northern Ireland. The registered office is The Baptist Centre, 19 Hillsborough Road, Moira, Co Down, BT67 0HG.
1.1 Accounting convention
The financial statements have been prepared in accordance with the charity's Memorandum and Articles of Association, the Companies Act 2006 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 (FRS 102) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
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 £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2 Going concern
These financial statements have been prepared on a going concern basis.
The charity has net assets of £5,681,191 at 31 December 2023, including free reserves of £867,148.
The trustees are of the opinion that the charity has adequate resources to continue in operation for at least the next twelve months and that it is appropriate for the financial statements for the year ended 31 December 2023 to be prepared on a going concern basis.
1.3 Charitable funds
Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.
Designated funds comprise funds which have been set aside at the discretion of the Trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements.
1.4 Incoming resources
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
Assets for distribution are recognised only when distributed. Assets given for use by the charity are recognised when receivable. Stocks of undistributed donated goods are not valued for balance sheet purposes.
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NORTHERN BAPTIST CORPORATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
1 Accounting policies (Continued)
Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.
Where funding is received and subsequently distributed to other organisations in accordance with the donor's instructions it is treated as conduit funding and, therefore, is not recognised in the Statement of financial activities.
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the company; this is normally upon notification of the interest paid or payable by the Bank.
1.5 Resources expended
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and hared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.
Governance costs are those incurred in connection with administration of the company and compliance with constitutional and statutory requirements.
Charitable activities and Governance costs are costs incurred on the company's operations, including support costs and costs relating to the governance of the company apportioned to charitable activities.
1.6 Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
| Freehold land and buildings | 1 - 2% per annum straight line |
|---|---|
| Leasehold land and buildings | Nil |
| Fixtures and fittings | 10% per annum straight line |
| Computer equipment | 33% per annum straight line |
| Motor vehicles | 25% per annum straight line |
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
No depreciation is charged on the company's long-term leasehold property. Due to the nature of the company's share in the ownership of the relevant properties the company is guaranteed to recover its cost of acquisition. Any depreciation charge is therefore considered to be immaterial.
1.7 Fixed asset investments
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.
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NORTHERN BAPTIST CORPORATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
1 Accounting policies (Continued)
1.8 Impairment of fixed assets
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
1.9 Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.10 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.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
1.11 Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in net income/(expenditure) for the period.
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NORTHERN BAPTIST CORPORATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
2 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Key sources of estimation uncertainty
Fixed assets
The annual depreciation charge on fixed assets depends primarily on the estimated lives of each type of asset and estimates of residual values. The directors regularly review these asset lives and change them as necessary to reflect current thinking on remaining lives in light of prospective economic utilisation and physical condition of the assets concerned. Changes in asset lives can have a significant impact on depreciation and amortisation charges for the period. Detail of the useful lives is included in the accounting policies.
Debtors
Debtors are measured at transaction price, less any impairment. Impairment of such debtors involves some estimation uncertainty.
3 Donations and legacies
| **Unrestricted ** | Unrestricted | |
|---|---|---|
| funds | funds | |
| 2023 | 2022 | |
| £ | £ | |
| Donations and gifts | 198,740 | 310,000 |
| Donations and gifts | ||
| Charles Barron Terrace property | - | 120,000 |
| Downpatrick/Bellaghy property | - | 190,000 |
| Orangefield property | 195,000 | - |
| Other | 3,740 | - |
| 198,740 | 310,000 |
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NORTHERN BAPTIST CORPORATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
4 Charitable activities
| Unrestricted | Unrestricted | ||
|---|---|---|---|
| funds | funds | ||
| 2023 | 2022 | ||
| £ | £ | ||
| Promoting the Interests of Baptist Churches in N. Ireland | 184,584 | 183,474 | |
| 5 | Investments | ||
| **Unrestricted ** | Unrestricted | ||
| funds | funds | ||
| 2023 | 2022 | ||
| £ | £ | ||
| Investment income | 61,146 | 30,513 | |
| 6 | Other income |
| **Unrestricted ** | Unrestricted | |
|---|---|---|
| funds | funds | |
| 2023 | 2022 | |
| £ | £ | |
| Net gain on disposal of tangible fixed assets | 12,408 | 2,826 |
| Other Income | 139 | 154 |
| 12,547 | 2,980 |
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NORTHERN BAPTIST CORPORATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
7 Charitable activities
| Unrestricted | Unrestricted |
|
|---|---|---|
| Funds | Funds | |
| 2023 | 2022 | |
| £ | £ | |
| Depreciation and impairment | 58,093 | 55,552 |
| Retired Ministers' Housing Scheme expenses | 2,650 | 18,477 |
| Income protection premium | 39,888 | 33,145 |
| Baptist Centre repairs and maintenance | 15,577 | 5,160 |
| Shankill Community Fellowship | - | 1,550 |
| Printing, postage and stationery | 323 | 397 |
| Legal and professional fees | 813 | 2,218 |
| Motor expenses | - | 342 |
| Bank charges | 442 | 394 |
| North Belfast Christian Fellowship | 14,900 | 20,900 |
| Management charges | 30,000 | 30,000 |
| Other property expenses | 8,560 | 5,247 |
| Amounts donated to ABCI | 23,879 | 29,540 |
| Other charitable expenditure | 9,870 | 4,967 |
| 204,995 | 207,889 | |
| Share of governance costs (see note 8) | 3,420 | 3,049 |
| 208,415 | 210,938 |
The nature of the charitable company is such that all expenditure on charitable activities supports the work of the Association of Baptist Churches in Ireland in promoting the interests of baptist churches in Northern Ireland. There is no clear distinction between costs incurred directly and those incurred in support of charitable activities.
8 Governance costs
| Governance costs | |||
|---|---|---|---|
| Audit fees Analysed between Charitable activities |
Support costs Governance costs £ £ - 3,420 - 3,420 - 3,420 |
2023 £ 3,420 3,420 3,420 |
2022 £ 3,049 |
| 3,049 | |||
| 3,049 |
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NORTHERN BAPTIST CORPORATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
| 9 | Net movement in funds | 2023 | 2022 |
|---|---|---|---|
| £ | £ | ||
| Net movement in funds is stated after charging/(crediting) | |||
| Fees payable to the company's auditor for the audit of the company's financial | |||
| statements | 3,420 | 3,049 | |
| Depreciation of owned tangible fixed assets | 58,093 | 55,552 | |
| Profit on disposal of tangible fixed assets | (12,408) | (2,826) |
10 Trustees
None of the Trustees (or any persons connected with them) received any remuneration, benefits in kind or reimbursement of expenses from the charity during the year.
11 Employees
The average monthly number of employees during the year was:
| 2023 | 2022 | |
|---|---|---|
| Number | Number | |
| Total | - | - |
There were no employees whose annual remuneration was more than £60,000.
12 Taxation
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
13 Other gains or losses
| Other gains or losses | ||
|---|---|---|
| Unrestricted | Unrestricted | |
| funds | funds | |
| 2023 | 2022 | |
| £ | £ | |
| Foreign exchange loss/(gain) | 3,814 | (11,913) |
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NORTHERN BAPTIST CORPORATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
14 Tangible fixed assets
| Freehold land and buildings £ Cost At 1 January 2023 3,798,577 Additions 195,000 Disposals (35,000) At 31 December 2023 3,958,577 Depreciation and impairment At 1 January 2023 327,500 Depreciation charged in the year 51,314 Eliminated in respect of disposals - At 31 December 2023 378,814 Carrying amount At 31 December 2023 3,579,763 At 31 December 2022 3,471,077 |
Leasehold land and buildings Fixtures and fittings £ £ 310,417 307,896 - 800 - - 310,417 308,696 - 306,316 - 271 - - - 306,587 310,417 2,109 310,417 1,580 |
Computer equipment Motor vehicles £ £ 159,760 25,495 - 31,925 - (25,495) 159,760 31,925 159,760 14,872 - 6,508 - (20,715) 159,760 665 - 31,260 - 10,623 |
Total £ 4,602,145 227,725 (60,495) 4,769,375 808,448 58,093 (20,715) 845,826 3,923,549 3,793,697 |
|---|---|---|---|
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NORTHERN BAPTIST CORPORATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
| 15 Fixed asset investments Cost or valuation At 1 January 2023 & 31 December 2023 Carrying amount At 31 December 2023 At 31 December 2022 16 Debtors Amounts falling due within one year: Other debtors Prepayments and accrued income Amounts falling due after more than one year: Other debtors Total debtors 17 Creditors: amounts falling due within one year Balances held for Trust funds, Departments and Churches Accruals and deferred income |
Other investments £ 105,952 105,952 105,952 2023 2022 £ £ 90,862 41,512 67,567 56,090 158,429 97,602 2023 2022 £ £ 863,776 350,502 1,022,205 448,104 2023 2022 £ £ 3,147,968 2,557,284 2,575 2,575 3,150,543 2,559,859 |
|---|---|
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NORTHERN BAPTIST CORPORATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
18 Designated funds
The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:
| Balance at 1 January 2022 £ Corporation Churches Capital Fund 801,719 Corporation Baptist Centre Capital Fund 1,453,417 Corporation Baptist Centre Revenue Fund 58,111 Corporation Churches Fund 13,039 Corporation Income Protection Fund 91,123 Corporation Property Capital Fund 293,406 Retired Ministers' Housing Revenue Fund 150,705 Retired Ministers' Housing Capital Fund 1,303,390 Trust Fund Revenue Fund 123 Corporation Churches Loan Fund - 4,165,033 |
Movement in funds Incoming resources Resources expended Transfers Balance at 1 January 2023 £ £ £ £ - (8,838) - 792,881 - (30,000) - 1,423,417 6,069 (6,121) - 58,059 157,240 (21,956) - 148,323 34,137 (45,415) - 79,845 - (1,150) - 292,256 13,790 (20,966) - 143,529 813 (8,027) (140,000) 1,156,176 - - - 123 2,177 - 140,000 142,177 214,226 (142,473) - 4,236,786 |
Movement in funds Incoming resources Resources expended Balance at 31 December 2023 £ £ £ 195,000 (9,338) 978,543 - (30,000) 1,393,417 9,596 (17,641) 50,014 6,153 (15,351) 139,125 41,809 (49,888) 71,766 - (1,779) 290,477 21,423 (5,468) 159,484 859 (8,027) 1,149,008 - - 123 3,531 - 145,708 278,371 (137,492) 4,377,665 |
Movement in funds Incoming resources Resources expended Balance at 31 December 2023 £ £ £ 195,000 (9,338) 978,543 - (30,000) 1,393,417 9,596 (17,641) 50,014 6,153 (15,351) 139,125 41,809 (49,888) 71,766 - (1,779) 290,477 21,423 (5,468) 159,484 859 (8,027) 1,149,008 - - 123 3,531 - 145,708 278,371 (137,492) 4,377,665 |
|---|---|---|---|
| 4,377,665 |
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NORTHERN BAPTIST CORPORATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
19 Explanatory note to the funds
General funds
This fund is expendable at the discretion of the Directors for the general purposes of the charity. In addition, funds may be held in order to finance capital investment and essential working capital.
Designated Funds
Corporation Churches Capital Fund
This fund enables the Corporation to hold and maintain church property.
Corporation Baptist Centre Capital Fund
This fund relates to the value of the Baptist Centre property.
Corporation Baptist Centre Revenue Fund
Funds designated for the maintenance and repair of the Baptist Centre.
Corporation Churches Fund
This fund represents church funds held by the Corporation that have been designated for use in gospel endeavours.
Corporation Income Protection Fund
This represents funds that are held as part of an Income Protection Scheme to provide cover for Pastors experiencing long term illness.
Corporation Property Capital Fund
This fund represents properties owned and held by the Corporation for Investment.
Retired Ministers' Housing Revenue Fund
The Retired Ministers' Housing Scheme provides housing for retired Pastors who have no accommodation.
Retired Ministers' Housing Capital Fund
The Retired Ministers' Housing Scheme provides housing for retired Pastors who have no accommodation.
Trust Fund Revenue Fund
This fund holds, as separate from the capital, the undisbursed interest and income held for Churches and the Association.
Corporation Churches Loan Fund
This fund represents funds held by the Corporation to provide loans to churches for capital projects.
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NORTHERN BAPTIST CORPORATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
20 Analysis of net assets between funds
| Fund balances at 31 December 2023 are represented by: Tangible assets Investments Current assets/(liabilities) |
Total 2023 £ 3,923,549 105,952 1,651,690 5,681,191 |
Total 2022 £ 3,793,697 105,952 1,536,754 |
|---|---|---|
| 5,436,403 |
21 Financial commitments, guarantees and contingent liabilities
The company has given guarantees in relation to bank borrowings of member churches within the Association of Baptist Churches in Ireland. At 31 December 2023 the total amount of outstanding debt for which guarantees have been given was £2,303,360 (2022 - £3,200,854). The relevant churches have given Resolutions of Indemnity to the company in relation to these guarantees. The total value of the property over which the Resolution of Indemnities have been provided is in excess of the outstanding debt at the year end.
The company is providing the Trustee of the ABCI 2013 Retirement Benefits Scheme with a Guarantee of Contributions to guarantee payment of the contributions required under the schedule of contributions dated 2 December 2022.
In addition NBC has entered into a number of contingent asset agreements with the Trustee of the ABCI 2013 Retirement Benefits Scheme under which there is charge over two properties owned by Northern Baptist Corporation with carrying value of £332,200 and a charge over £175,000 of funds held in escrow.
The value of the guarantee and properties in the contingent asset agreements remain included within Northern Baptist Corporation's tangible fixed assets on the balance sheet.
22 Related party transactions
Trustees
No remuneration was paid to key management personnel in the current or prior year.
Association of Baptist Churches in Ireland
The charitable company is controlled by the Executive Committee of the Churches' Council of the Association of Baptist Churches in Ireland. During the year the company paid management charges and made donations totaling £53,879 (2022 - £59,540) to the Association of Baptist Churches in Ireland. The company also received £11,702 (2022 - £10,859) for expenses paid on behalf of the Association of Baptist Churches in Ireland.
Included in other creditors at the year end is a balance of £860,546 (2022 - £811,031) due to the Association of Baptist Churches in Ireland. The balance has arisen due to funds that are held by NBC but are controlled by the Association. The balance is repayable on demand and no interest is charged on outstanding amounts.
Southern Baptist Corporation Company Limited by Guarantee
The charitable company is under common control with Southern Baptist Corporation Company Limited by Guarantee, a charitable company registered in the Republic of Ireland. During a prior year a loan of £190,020 was advanced to Southern Baptist Corporation Company Limited by Guarantee. At 31 December 2023 a balance of £141,398 (2022 - £149,648) remained due from Southern Baptist Corporation Company Limited by Guarantee. No interest is charged on the outstanding amount.
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