BMS WORLD MISSION
Annual report & financial statements
Year ended 31 October 2008
Baptist Missionary Society
Registered charity number: 233782 (England and Wales); SC037767 (Scotland)
INTRODUCTION
BMS World Mission
Introduction
The Board of Trustee
presents its annual report and financial statements for the year ended 31 October 2008.
The financial statements have been prepared in accordance with the requirements of the Statement of
Recommended Practice (
The Trustee is structured as follows:
Section Description Page Reference
1 Reference and administrative details Who we are 1
2 Structure, governance and management How we do things 2 - 5
3 Objectives and activities What we set out to do 6
4 Achievements and performance What we have done so far 7 - 10
5 Financial review About our finances 11 - 12
6 Plans for future periods What we plan to do next 13 - 14
7 Financial statements Our finances in detail 15 - 31
The Trustees wish to put on record their thanks to our supporters, volunteers and staff around the world who
commit their time and skills in helping some of the neediest people in the world.
On behalf of the Board of Trustees
Jeff Taylor
Chairperson
8 April 2009
For more information about the work of BMS World Mission please look at our website:
www.bmsworldmission.org
For the year ended 31 October 2008
BMS World Mission PAGE 1
Reference and administrative details
Who we are
Members of the Board of Trustees
The Trustees who held office during the year were:
Executive Directors
Auditors
BDO Stoy Hayward LLP
Emerald House
East Street
Epsom
Surrey
KT17 1HS
Solicitors
Ashton Graham Solicitors
Waterfront House
Wherry Quay
Ipswich
IP4 1AS
Bankers
Barclays Bank
125 Broadway
Didcot
OX11 8AW
Investment Managers
Rensburg Sheppards
2 Gresham Street
London
EC2V 7QN
Actuaries
BWCI Consulting
Actuaries & Consultants
Albert House
South Esplanade
St Peters Port, Guernsey
Channel Islands
GY1 1AW
Principal offices
Baptist Missionary Society
PO Box 49, Baptist House
129 Broadway, Didcot, OX11 8XA
Telephone: 01235 517700
Fax: 01235 517601
E-mail: [email protected]
Website: www.bmsworldmission.org
Registered charity number: 233782 (England and Wales); SC037767 (Scotland)
Rev David Kerrigan (General Director) (from 1 January
2009)
Rev Kathryn Morgan (to 9 September 2008)
Rev Carol Murray
Mr Samuel Owoo (from 4 May 2008)
Mr Martin Pearse (to 4 May 2008)
Mrs Rebecca Rigden Green (to 2 December 2008)
Rev Jeff Taylor (Chairperson) (from 4 May 2008)
Mrs Caroline Trimble
Rev Stephen Woolley (to 22 August 2008)
Rev Dr Alistair Brown (General Director) (to 17 October
2008)
Rev Don Currie (to 4 May 2008)
Mrs Gillian Davies
Rev Haydn Davies
Rev David Doonan
Rev Tim Edworthy (from 4 May 2008)
Mr Peter Harwood
Mr John Howes (Honorary Treasurer)
Mr Mark Craig (Communications)
Rev David Kerrigan (General Director)
Mr David Locke (Finance & Corporate Services)
Rev Alan Pain (International Mission Centre)
For the year ended 31 October 2008
BMS World Mission PAGE 2
Structure, governance and management
How we do things
1 Charity objects
The object of the charity is to enable the Baptist churches in the British Isles to respond to the call of God by sharing
British Isles.
Our purpose and activities are described in our mission statement:
Enabling them to know Christ
Alleviating suffering and injustice
Improving the quality of life
With people as our primary agent of change motivating, training, sending and resourcing them.
2 Governance
i Governing document
The governing document of the charity is the constitution, which was last revised on 28 April 2006.
ii Restrictions to governing powers
The constitution provides instructions as to the object, membership, annual meetings, Trustee
appointments, property, dissolution of the charity and revision of the constitution. There are no other
specific restrictions to daily operations of the charity.
iii Council of Reference
The Board of Trustees has a covenant with a Council of Reference, made up of approximately eighty
people, representing the three Baptist Unions to whom we relate. The Council meets twice a year.
iv Appointment of new Trustees
New Trustees are elected by the Council of Reference and serve normally for a maximum period of six
years. Those nominated as potential Trustees are reviewed to ensure they have the necessary skills to
ey are put forward for consideration by the Council of
Reference.
v Induction and training of Trustees
When elected, each new Trustee receives an induction pack including the Good Trustee Guide , the Charity
Commission publication CC3 Responsibilities of Charity Trustee and a range of key organisation policies
and documents. All Trustees receive an induction, co-ordinated by the Chair of Trustees and the General
Director, which includes a presentation on the organisation and an opportunity to meet key staff and a
question and answer session. Trustees also have access to a secure Intranet web-based system where
they can access Board papers and other information.
vi Governance structures
The Board have discussed and agreed a Board Manual which is used as a reference guide to good
governance at Board level. To help the Trustees with the governance of the charity on a day to day basis
and in accordance with good governance practice the following committees and advisory groups have
been constituted with specific terms of reference and functions delegated by the Board. These are:
The Finance and Audit Committee
financial accounts, annual estimates, investments, fundraising, property matters including Baptist House,
salaries, mission personnel allowances, pensions and employment matters. They also advise on policy
the balance between the different categories of expenditure. They consider the appointment of the
external auditors and any questions of their resignation or dismissal; discuss with the external auditors
before the audit commences the nature and scope of the audit; re
following completion of their audit work; and review the annual financial statements before submission to
the Board of Trustees.
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BMS World Mission PAGE 3
Structure, governance and management
How we do things
2 Governance (cont)
The Remuneration Committee to advise the Board of Trustees on the appropriate remuneration of the
General Director and Executive Directors and their Terms and Conditions of employment. The Committee
also provides advice to the Board regarding the remuneration policy framework for BMS home staff.
Furthermore the Committee has power to act, under instruction from the Board, as a review body prior to
full Board consideration on recommendations by the General Director and Executive Directors on matters
relating to remuneration and staff terms and conditions of service.
3 Organisation structure
Trustees are the final and top-level decision makers for the charity. The Board currently numbers 11 experienced
and committed people who meet approximately five times per annum. The Executive Directors attend meetings of
the Board but do not vote (with the exception of the General Director).
Because of the size of the charity, staff are employed to carry out the policies set by the Trustees. Within BMS there
are currently five main departments each with its own director:
General Directorate (David Kerrigan) Providing overall leadership for BMS with major
emphasis on theological reflection, strategic thinking and representation.
Department of Finance & Corporate Services (David Locke) Responsible for all the support
functions for BMS including accounting, investments, administration and IT.
Department for World Mission (Director vacancy) Responsible for BMS mission work
overseas. Key roles include recruitment and placement of mission personnel and relationships
with overseas partner bodies.
Department for Communications (Mark Craig) Responsible for the BMS corporate
communications portfolio, including marketing strategy, design, publications, PR and website.
BMS International Mission Centre, Birmingham (Alan Pain) Responsible for the delivery of
training for BMS mission personnel and others. Most of that training is pre-mission service but
there are plans for developing life-long training programmes.
Most departments also have managers and co-ordinators. With the directors they constitute the senior staff team.
Each department has its own internal systems, most with regular meetings of senior staff and all staff.
One of the requirements of the Office of the Scottish Charity Regulator is that we report separately upon the
activities BMS has undertaken in Scotland. During 2007/08, our work included developing ongoing partnerships
Baptist Union of Scotland) and developing a major resource on climate change for use in churches across the
nation.
4 Related organisations and companies
i Baptist House
The charity has a 50% share in Baptist House Limited. The 50% share of assets and liabilities of this joint
arrangement with the Baptist Union of Great Britain have been included under the appropriate headings of
the Balance Sheet.
in the
ii Overseas partner organisations
The charity works overseas with partner organisations, providing funding by way of grants and/or the
provision of personnel. Details of these partners and grants can be found at Note 7.
5 Grant making policy
In the year the charity awarded grants of £1.2m (2006/2007: £1.3m). The Trustee
against a budget, approved by the Board of Trustees and managed by the Department for World Mission. The policy
of the charity is to give grants on the basis that they are subject to annual review and only renewed on the basis of
meeting set criteria.
For the year ended 31 October 2008
BMS World Mission PAGE 4
Structure, governance and management
How we do things
6 Investment policy
i Investment powers
The Trustees have the power to invest in such assets as they see fit.
ii Investment selection
The Trustees have considered the most appropriate policy for investing funds and use an investment
manager to invest ethically in a mixture of equities, treasury bonds, property and cash. The investment
objective for the general funds has been defined so as to achieve a balance of income and capital growth
from a benchmark comprising an asset allocation of 45% in UK equities, 5% in global equities, 35% in
bonds (UK and overseas), 10% in property and 5% in cash.
iii Investment performance during the year
The investment managers, Rensburg Sheppards, were appointed to manage the charity funds with effect
from 1 November 2002. Investment performance is monitored on a calendar quarterly basis. The
performance results can be seen in the table below (returns expressed in % return per annum).
Over the last 12 months the funds under management have slightly under-performed against the
benchmark. However, given the volatile nature of the markets, and overall performance against the
benchmark since 2002, the Trustees continue to be supportive of the investment managers and the results
to date.
One Year Five Year
Actual Benchmark Difference Actual Benchmark Difference
General Funds -10.8% -9.9% -0.9% 6.7% 6.1% 0.6%
Endowments -16.1% -14.9% -1.2% 6.6% 6.3% 0.3%
7 Reserve policy and levels
As explained the charity carries out a variety of both long-term and short-term programmes. In many cases our
commitment to our mission personnel is long-term. The Trustees have examined the requirement for free reserves
which are those unrestricted reserves not invested in fixed assets, designated for specific purposes or otherwise
committed. The Trustees consider that, given the nature of our work, this should equate to between nine and 12
months of budgeted expenditure equating to a range of £4.7m to £6.3m. This will provide us with the flexibility and
resilience to cover any short-term funding crisis or a medium-term recession.
The free reserves at 31 October 2008 consist of £3.8m, the equivalent of seven months of budgeted expenditure.
The Trustees maintain a financial plan to manage the budget so that the target level of reserves is achieved and
maintained. Such plans will take into account the long- At the
financial year-end under the FRS17 valuation method, including the net pension surplus, the revised level of the
is equal to £4.5m, the equivalent of eight months of budgeted expenditure.
8 Change in activities during the year
No major changes to charitable activities were made during the year.
9 Risk management
i Review of risks
The Trustees actively review on a regular basis the major risks which the charity faces. Working with the
management team they have reviewed and approved an assessment of risks faced by the charity.
ii Systems to manage risks
For each significant risk identified an appropriate action plan over a three-year timescale has been
effected. The Trustees believe that a review of financial, operational and business risks combined with
this plan is an effective system that manages the significant risks.
For the year ended 31 October 2008
BMS World Mission PAGE 5
Structure, governance and management
How we do things
10 Auditors
BDO Stoy Hayward LLP expressed their willingness to continue in office.
11 Statement of Trustee responsibilities
Charity law requires the Trustees to prepare financial statements for each financial year, which give a true and fair
view of the state of affairs of the charity and of its financial activities for that period. The Trustees are responsible
for preparing the annual report and financial statements in accordance with applicable law and UK Generally
Accepted Accounting Practice. In preparing those financial statements the Trustees are required to:
a select suitable accounting policies and then apply them consistently
b make judgements and estimates that are reasonable and prudent
c state whether the policies adopted are in accordance with the appropriate SORP on Accounting by
Charities and the Accounting Regulations and with applicable Accounting Standards, subject to any
material departures disclosed and explained in the financial statements and
d prepare the financial statements on the going concern basis unless it is inappropriate to assume that the
charity will continue in business.
The Trustees are responsible for keeping proper accounting records which disclose, with reasonable accuracy at any
time, the financial position of the charity, and to enable them to ensure that the financial statements comply with
applicable Accounting Standards and Statements of Recommended Practice and the regulations made under S44 of
the Charities Act 1993. They are also responsible for safeguarding the assets of the charity and hence for taking
reasonable steps for the prevention and detection of fraud or other irregularities.
The Trustees confirm that they have complied with these responsibilities in respect of these financial statements.
All the current Trustees have taken all the steps they ought to have taken to make themselves aware of any
ish that the auditors are
aware of that information. The Trustees are not aware of any relevant audit information of which the auditors are
unaware.
For the year ended 31 October 2008
BMS World Mission PAGE 6
Objectives and activities
What we set out to do
1 Our Christian faith
BMS World Mission embodies the conviction that Jesus Christ is the pivotal figure in world history, someone who
alone can redeem all that is lost and broken, who inspires and empowers men and women to make the world a
better place. All that we do is driven by that belief.
Jesus was a radical figure. He welcomed those the world counted of little value. He sided with those who were
perceived as outsiders. He challenged those who held power, and he reserved his righteous anger for those he
considered hypocrites.
There are millions in the world today who are denied access to life in all its fullness because they are not valued, or
they are forgotten, because they are powerless or simply because they have never heard the good news about
Jesus. These realities demand a broad response and to that end our mission is always holistic, seeking to meet
As we live out our faith, we will do everything we can to address these issues irrespective of the background, faiths
or ethnic origin of those concerned, however advantaged or disadvantaged they may be.
2 Our Charitable activities
We live out our Christian faith through the following charitable activities:
i Church-based ministries
We send and resource people to be involved in both starting and developing churches throughout the
world.
ii Partner ministries
We enable the mission of our partners in the worldwide Church through financial support of individuals
and organisations.
iii Compassion ministries
We are committed to sending people and resources in order to alleviate poverty, prevent sickness,
encourage sustainable development and respond in times of disaster.
iv Mission mobilisation
We strive to challenge, support and equip others to be involved in the mission of the worldwide Church.
3 Our values
Our values dictate the manner in which we carry out our work. In January 2007 the Board of Trustees approved an
updated statement of values for the organisation. They describe the fact that we prioritise the poor and
marginalised of this world, that we always work for change that lasts, that integrity will characterise every part of
what we do, and through everything we do we will seek to convey our stewardship for creation and the environment.
A full copy of our values statement is available on request from the office of the General Director, BMS World
Mission.
For the year ended 31 October 2008
BMS World Mission PAGE 7
Achievements and performance
What we have done so far
Activities during the year
1 Church-based ministries
At the heart of our faith lies the convi
make a positive impact in society. Starting churches and strengthening churches is a key part of what we do.
A total of £2.1m was spent in this area in 2007/08 (2006/07: £2.1m).
Many of our personnel in Europe are involved in starting and developing churches in countries across Europe,
including Vlora (Albania), Brussels (Belgium), Rouen (France) and Siracusa (Italy). In addition to personnel from the
UK, we also support national workers in such places as Bulgaria, Croatia and Hungary, and we have been pleased to
support cross-border resourcing, for example Ukrainian workers in Portugal.
We are in the process of setting up a mission centre in South Africa, in partnership with the national Baptist
involvement, through personnel from the UK and funded local partner workers, in supporting the church in Guinea.
We have now established a mission centre in Ecuador which can, in part, be used as a base for teams from UK to
share in local church outreach projects and the benefit of the wider community. We are also supporting theological
and lay training for churches through our personnel based in Brazil, Ecuador and Peru.
Our personnel are helping to strengthen the work of the Church in countries such as Thailand, training others to
develop their own God-given skills, especially women and young people. Others are involved in the production of
broadcasting materials to support small churches and dispersed Christians throughout the Middle East.
2 Partner ministries
The shift in the centre of gravity of world Christianity from north to south is not reflected in the world Church by a
similar shift in financial resources. It is a core value to BMS that we release our resources to empower the Church
beyond our shores to fulfil its God-given potential for the good of so many people around the world.
In 2007/08 we spent a total of £1.1m in support of partner ministries (2006/07: £1.1m).
A key part of our mission workforce is the 218 workers employed by our partners and supported by BMS funding. As
referred to above, many of them work in church planting assignments, but others are engaged in key roles within
partner programmes. For example, we have supported partner staff in strategic leadership roles in Nepal, one as an
integral mission adviser, another as a leadership development coordinator. We have also funded the role of a
country director of a Christian broadcasting company in the Middle East.
We have a long legacy of medical work in the Democratic Republic of Congo. One of the more recent aspects has
been the development of funding work among people living with HIV/Aids in Kinshasa, initiated by local Baptist
churches. This has involved professional healthcare but also pastoral and social support to benefit individuals and
wider communities. Last year, BMS grants facilitated the employment of two staff and some of the resources needed
for the programme.
Holistic mission has been a key part of the work we fund in several projects in Peru. The dire social deprivation of
the city of Iquitos in the Amazon basin and its geographical isolation have created an opportunity for churches there
to be supported in their social mission and ministry. Funding provided through BMS by British churches is helping
to resource and equip a mission extension programme, reaching out into Amazonian riverside communities.
The holistic nature of our partnerships extends into Europe, and we have supported the pastoral work and social
action of Bulgarian Baptists as they minister to the Roma people.
Training the next generation is a key part of our international commitments and we have invested significantly in
scholarship funding over the year. Among many, students in Lebanon, Indonesia, Sri Lanka, Angola, Zimbabwe,
Jamaica, and the Czech Republic have benefited and will hopefully emerge as future Christian leaders.
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BMS World Mission PAGE 8
Achievements and performance
What we have done so far
3 Compassion ministries
In 2007/08 we spent £2.1m on compassion ministries (2006/07: £2.3m).
The story of the Good Samaritan is known all around the earth. Care for those whom others might simply pass-by
characterises our compassion ministries. Compassion ministries fall into two categories of intervention planned
and emergency.
In 2007/08, our planned interventions continued in countries across the globe. Our team in Afghanistan grew to 18
people working in various programmes in different parts of the country. Care and compassion go hand in hand with
risk and security in this conflict-torn land and our team, which includes children, remains for us a high prayer
priority. Our largest team, comprising 27 adults, is based in Nepal, another country emerging from internal conflict
with a fledgling democracy. Our personnel there are involved in supporting Nepali people by initiatives in health,
education and community development.
Emergency interventions follow disasters and the aim is always to bring help quickly and effectively to people in
need. During 2007/08, we were able to provide relief supplies to thousands affected by a cyclone in Burma,
hurricanes in Haiti, an earthquake in China and floods in Brazil and in Uganda. We were also able to respond to
those suffering as a result of conflict and persecution and oppression in such places as Georgia, India and
Zimbabwe.
A major intervention in the early part of the year followed the devastation caused in Bangladesh by Cyclone Sidr.
Through our local contacts, we were able to channel grants totalling £80,000 through four different partners,
ranging from emergency supplies of food and water, to the reconstruction of cyclone-resistant housing.
Occasionally, we are able to give into situations where there is fresh hope and opportunity and, during the year, one
of our relief grants was used in Uganda to help with the resettling of 500 households. These people were wishing to
return to villages from which they had previously fled to escape harm at the hands of rebel groups. The grant
enabled farmers to be re-equipped with tools and seeds, with clothing and schoolbooks for children, Bibles for
churches and even bicycles for the local pastors.
4 Mission mobilisation
As one of the longest established Christian mission agencies, BMS has a long history of working with Christians to
through the continuing engagement and equipping of over 2,500 Baptist churches and tens of thousands of
supporters in the UK and worldwide.
In 2007/08, we committed £1:0m to this work (2006/07: £1.0m).
A continuing theme for BMS is the involvement of partners in developing key resources to engage the support and
understanding of the churches and wider community. One example of this has been in the development of a
resource on creation care to be titled FutureShape? and scheduled for release in March 2009. The lengthy
development process has for the first time involved the release of draft materials to churches for them to comment
on as the resource was being refined. This has seen a large and enthusiastic take-up, as churches and others have
chosen to get involved with th
every stage.
We continue, on the broadest scale, to respond to issues of public interest, and to develop resources to enable
churches and individuals to appropriately express their Christian concern for the world. In the aftermath of the
Burma cyclone, resources for churches to understand the scale of the disaster were prepared within hours, and
giving from churches (totalling some £200k) enabled partners already on the ground to offer immediate and longer
term assistance.
We were asked to offer technical assistance to the 2008 World Youth Conference in Leipzig, organised by the
Baptist World Alliance. With thousands of young people attending from dozens of countries around the world, BMS
was able to make a significant contribution. That conference has resulted in many well-informed mission
presentations being made by young people across the world, including an outstanding and powerful contribution by
Glasgow youngsters to the Baptist Assembly in Scotland.
Our redeveloped website had record numbers of hits as we reported live from inside the Olympic stadium during the
Beijing Games. A media-accredited BMS partner filed daily reports, including interviews with leading athletes on the
relevance of their faith.
For the year ended 31 October 2008
BMS World Mission PAGE 9
Achievements and performance
What we have done so far
4 Mission mobilisation (cont)
From
missi
leaders, bringing a Christian voice and Christian ethics into a critical strata of national economies.
With the support of partners in Nazareth and Bethlehem, we prepared a Christmas resource
which featured contributions from both Israeli and Palestinian Christians. Feedback shows that the resource was
widely used, and has helped foster a deeper understanding of the Christian dynamics in that part of the world,
where most Christians, on both sides of the divide, are Arab.
Our annual Harvest resource this year took a thematic approach the highly topical issue of food security. Using
Bangladesh as an example, we helped churches see how critical that issue is in many parts of the world.
We have successfully expanded the 24:7 Partners programme, introduced last year to allow more individuals to
support BMS, and now have more than 1,500 Partners in the programme. Our programme of mobilising Christian
concern for mission continues through these and many other initiatives.
5 Working and volunteering with BMS
During the year, 139 (2006/07: 152) mission personnel were fully supported by BMS, while a further 26 people
(2006/07: 27) were involved in the partly-supported mid-term worker programme. This has been further
supplemented over the year by 218 (2006/07: 224) supported partner workers, 56 (2006/07: 60) volunteers and 150
(2006/07: 190) others involved through short-term teams.
The Trustees are very grateful for the essential support given to BMS by many volunteers. These include volunteers
consultative bodies. The hard work of BMS Birthday Scheme secretaries raised £335k (2006/07: £316k) while the
BMS Stamp Bureau contributed a further £14k (2006/07: £10k).
A new approach for us has been the facilitation of short-term Church Teams, whereby we help with training and
debriefing of team members, but where the sending church takes responsibility for the mission placement and
programme. During 2007/08, three teams (comprising around 30 members in total) were facilitated in this way.
For the year ended 31 October 2008
BMS World Mission PAGE 10
Achievements and performance
What we have done so far
6 Public benefit statement
The Charity Commission on its website provides a brief description of public benefit as follows: public benefit
means that the purposes of a charity what it is set up to do are for the benefit of the public, or for a sufficient
BMS is a good example of a charity that has consistently delivered public benefits for over two centuries
tish Isles in making
known the gospel of Jesus Christ throughout
We do this with people as our primary agent of change and
accomplish our mission through a variety of practical activities including:
bringing compassionate help to the suffering and disadvantaged
enabling sustainable development
standing against injustice
offering emergency relief aid
Some facts help to put our charitable work and public benefits into context:
Publicly funded the charitable work of BMS World Mission is financed by over £6m of public donations per
annum. The vast majority comes from churches and individuals representing communities throughout the UK and a
support base of over 300,000 committed individuals from across society.
Benefiting the poor and marginalised the work of BMS is undertaken in 34 countries of the world. We distribute
relief aid and undertake sustainable development without prejudice, irrespective of caste or creed. Through the
charity each year thousands of hungry people are fed, illiterate people taught to read, those with illness brought
medical care and those in despair brought hope through sharing our faith in Jesus Christ.
With the help of God and through the work of BMS over the last 200 years, the lives of millions of people, in some of
the world s neediest countries, have been immeasurably improved, enriched and transformed.
For the year ended 31 October 2008
BMS World Mission PAGE 11
Financial review
About our finances
1 Expenditure
Total expenditure for 2007/08 was £6.7m of which £6.3m was committed to supporting and developing the various
charitable objects of BMS this represents 94% of total expenditure.
How we spent charitable expenditure of £6.3m
2 Income
The total income was £7.3m, this compared with a total income in 2006/07 of £6.4m. £6.8m was received as
voluntary income from donations from BMS supporters, churches and other supporting groups, charitable trusts
are very grateful to God for the prayerful support that these donations represent.
The six year history of underlying donation income (excluding that for our ad hoc emergency appeal and relief work)
is shown below. One can see how, in the period from 2003 to 2004, donation income rose above inflation. In the
next three-year period to 2007 real (ie net of inflation) donation income declined. This was a cause of concern for
the Trustees of the charity and this challenge was shared with our supporters early in 2008. Consequently, giving
from individuals and churches rallied during the last six months of the financial year to restore the level of real
giving. This magnificent response was a wonderful answer to prayer.
Six-year history of donation income (excluding relief)
For the year ended 31 October 2008
BMS World Mission PAGE 12
Financial review
About our finances
3 Effectiveness of fundraising activities
During the year the charity received donations, including legacy income, from churches and individuals totalling
£6.8m (2006/07: £5.7m).
We continue to be pleased at the effectiveness of our fundraising activities in that our fundraising costs represent
4p in every £ received by the charity as donations (including legacy income). This compares favourably with other
charities in the sector.
Where does every p in the £ go?
4 Material transactions during the year
No unusually large or material transactions were made during the year.
5 Post year-end events
In December 2008 we received £684,000 from the sale of a property in India.
6 Net movement in funds
Taking
2008, a net loss of £1.0m from the depreciation in value of the investment portfolio held by the charity and an
actuarial loss on the defined benefits pension scheme of £0.9m. The overall position was therefore a net decrease
in total reserves of £1.3m.
Charitable activities
95p Governance 1p
Fundraising 4p
For the year ended 31 October 2008
BMS World Mission PAGE 13
Plans for future periods
What we plan to do next
1 Our Strategy objectives
Our Strategy guides the organisation as to how we will achieve our charitable objectives. In 2007, our Trustees
utilising business initiatives in mission, developing prayer ministries, and seeking new sources of funding for our
relief and development initiatives. The major strategic themes contained in this document are summarised below
and are supported by a detailed action plan.
2 Continuing strategic themes
i Making Jesus known
BMS is dedicated to sharing the gospel of Jesus Christ with the world. We will pioneer evangelism in
wholly unreached areas and partner in evangelism with local Christians in places where most have still not
heard of Jesus. Our focus and our resources of money and personnel will be concentrated on those parts
of the world where Christ is largely unknown.
Hearing the good news that Jesus is Saviour and Lord is the birthright of all people. Hence we aim to make
this good news known to all people. Five out of six people have no living Christian faith, so the task
remains large. We are not prisoners of our history, so, when appropriate, we will move our work from
the world.
ii Caring ministries
BMS aims that all should have the essentials of an abundant life on this earth. That is why we tell the
good news of Jesus, but also why we will ensure people have food to eat, offer education to eager minds,
bring rescue to wrecked lives, work for healing for sick bodies, stand alongside those denied help or
justice, and undertake other caring ministries that are building blocks of a life of worth on this earth.
Jesus fed the hungry, healed the sick, and stood against accusers of the weak. So we will too. It can be as
basic as rushing emergency food to starving people caught in a famine or digging latrines to provide safe
sanitary facilities. It can be as sophisticated as drilling through a mountain to generate electricity or giving
highe
iii Speaking out
BMS will speak out on causes of significance, and will inform and enable other Christians to work for the
good and stand against the bad. Failing to care for creation threatens all of us, but the first to suffer will
be the poor. Unpayable debt blights many nations, and money desperately needed for health, education
or other basic development needs is being diverted in vain attempts to pay bills owed to already affluent
banks and nations. Causes like these are concerns for BMS.
We cannot and should not take up all causes: i) because no-one can; ii) because others are specialists in
their field and therefore better; iii) because we also have other work to do. But we can do this: a) speak
out of our special experience in dealing with the poor of the world; b) speak into the lives of our supporter
constituency so they are aware and equipped to take up the biggest of causes.
iv People in mission
People are the primary agents of change and we aim to enable them to engage effectively in mission,
whether sent from the UK or working in their own national context. So we will constantly bring the mission
imperative to our member churches in the UK, motivating, training, equipping and sending those we
recognise as called to work overseas with BMS. We will seek and support workers from partner church
bodies overseas where their indigenous missionary approach is effective.
We will strive to educate and challenge churches about mission, work towards excellence in our
preparation for mission of those who offer for work overseas, and ensure they have adequate provision for
personal, family and ministry needs while overseas. Our support of indigenous mission personnel will
have similar high standards as appropriate within the culture and context from which they are drawn.
v Effectiveness and efficiency
BMS will be careful, adaptable and rigorous in its structures, administration, marketing and use of
technology to ensure our background work is as effective and efficient as possible. We will commit
adequate funds and personnel to background functions to the extent necessary to do good work without
undue stress on staff, but always remember the goal of our work is largely among the poor of the world.
For the year ended 31 October 2008
BMS World Mission PAGE 14
Plans for future periods
What we plan to do next
3 Conclusion
We regard this Strategy as a living document, and other versions will follow which take us toward 2011, 2012 and on
through the years. And, in the final outcome, this will never be more than a partial document of strategy themes
come along and have to be fitted in to the plan. We prefer to say the Holy Spirit blows where he wills not where we
think he will, and so we remain open to the unexpected. We are not at all slaves to a piece of paper. We rejoice at
what has been revealed and anticipate God has yet more for us.
At the time of this report, work is taking place on the development of a new three-year strategy. As part of the
strategic review extensive consultation is taking place with Trustees, all staff, supporters and other stakeholders.
The new strategy should be finalised by Autumn 2009.
Jeff Taylor
Chairperson
8 April 2009
For the year ended 31 October 2008
BMS World Mission PAGE 15
REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF BMS WORLD MISSION
We have audited the financial statements of BMS World Mission for the year ended 31 October 2008 which comprise the
statement of financial activities, balance sheet, cash flow statement and the related notes. The financial statements have
been prepared under the accounting policies set out therein.
Respective responsibilities of Trustees and auditors
The Trustee t and the financial statements in accordance with applicable
law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) are set out in the
Statement of Trustees' Responsibilities.
We have been appointed as auditors under section 43 of the Charities Act 1993 and section 44(1)(c) of the Charities and
Trustee Investment (Scotland) Act 2005 and report in accordance with regulations made under those Acts. Our
responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and
International Standards on Auditing (UK and Ireland).
We report to you our opinion as to whether the financial statements give a true and fair view and are properly prepared in
accordance with the Charities Act 1993, the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the
Charities Accounts (Scotland) Regulations 2006.
We also report to you if, in our opinion, the information given in the Trustees' Annual Report is not consistent with those
financial statements, if the charity has not kept sufficient accounting records, if
agreement with these accounting records, if we have not received all the information and explanations we require for our
transactions with the charity is not disclosed.
We read the Trustee
misstatements or material inconsistencies with the financial statements.
Our report has been prepared pursuant to the requirements of the Charities Act 1993 and the Charities and Trustee
Investment (Scotland) Act 2005 and for no other purpose. No person is entitled to rely on this report unless such a person
is a person entitled to rely upon this report by virtue of and for the purpose of the Charities Act 1993 or the Charities and
Trustee Investment (Scotland) Act 2005 or has been expressly authorised to do so by our prior written consent. Save as
above, we do not accept responsibility for this report to any other person or for any other purpose and we hereby expressly
disclaim any and all such liability.
Basis of audit opinion
We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing
Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the
financial statements. It also includes an assessment of the significant estimates and judgements made by the Trustees in
the preparation of the financial statements, and of whether the accounting policies are appropriate to the charity's
circumstances, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we considered necessary
in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from
material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the
overall adequacy of the presentation of information in the financial statements.
Opinion
In our opinion
the financial statements give a true and fair view, in accordance with United Kingdom Generally Accepted
Accounting Practice, of the state of affairs of the charity as at 31 October 2008, and of its incoming resources and
application of resources, including its income and expenditure, for the year then ended; and
the financial statements have been properly prepared in accordance with the Charities Act 1993, the Charities and
Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations.
Signed:
BDO Stoy Hayward LLP date
Chartered Accountants and Registered Auditors
Eligible to act as an auditor in terms of section 25 of the Companies Act 1989
STATEMENT OF FINANCIAL ACTIVITIES
For the year ended 31 October 2008
BMS World Mission PAGE 16
Notes
Unrestricted
Funds
Restricted
Income
Funds
Endowment
Funds
Total
2008
Total
2007
£000 £000 £000 £000 £000
Incoming resources from generated funds
Voluntary income:
Donations and gifts 2 4,555 1,062 - 5,617 4,958
Legacies
1,127 82 - 1,209 780
Investment income
Incoming resources from charitable
activities
3 207 40 - 247 256
Resource sales
17 - - 17 46
Other income 181 12 - 193 394
Total incoming resources 6,087 1,196 - 7,283 6,434
Resources expended
Cost of generating funds:
Cost of generating voluntary income 280 - - 280 343
Investment management fees 13 2 5 20 22
293 2 5 300 365
Net incoming resources available for
charitable activities
5,794
1,194
(5)
6,983
6,069
Charitable activities :
Church-based ministries 1,905 206 - 2,111 2,121
Partner ministries 864 250 - 1,114 1,146
Compassion ministries 1,357 781 - 2,138 2,317
Mission mobilisation 981 - - 981 1,018
Total charitable activity costs 5,107 1,237 - 6,344 6,602
Governance costs 6 50 - 50 53
Total resources expended 4,5 5,450 1,239 (5) 6,694 7,020
Net incoming/(outgoing) resources before
transfers
637 (43) (5) 589 (586)
Transfers between funds 8 34 (35) 1 - -
Net incoming/ (outgoing) resources 671 (78) (4) 589 (586)
Net (losses)/gains on investment assets (648) (52) (332) (1,032) 217
Actuarial (losses)/gains on defined
pension scheme
(870)
-
-
(870)
1,733
Net movement in funds (847) (130) (336) (1,313) 1,364
Fund balances at 1 November 12,885 1,126 1,349 15,360 13,996
Fund balances at 31 October 12,038 996 1,013 14,047 15,360
All the above results are derived from continuing activities. All gains and losses recognised in the year are included above.
The notes on pages 19 to 31 also form part of these financial statements.
BALANCE SHEET
For the year ended 31 October 2008
BMS World Mission PAGE 17
Notes 2008 2007
£000 £000
Fixed assets
Tangible assets 9 7,800 7,867
Investments 10 3,732 5,309
11,532 13,176
Current assets
Stock 11 9
Debtors 11 1,575 984
Short term deposits 425 310
Cash at bank and in hand 241 192
2,252 1,495
Creditors: amounts falling due within one
year
12
(458)
(546)
Net current assets excluding pension
asset
1,794
949
Defined benefit pension scheme
asset
721
1,235
Net assets
14,047
15,360
Funds
8
Endowment 1,013 1,349
Restricted 996 1,126
Unrestricted
Pension reserve 721 1,235
Designated funds 7,516 7,599
General funds (free reserves) 3,801 4,051
14,047 15,360
The financial statements on pages 17 to 32 were approved by the Trustees on 8 April 2009 and signed on their
behalf by:
Chairperson:
Honorary Treasurer:
Date: 8 April 2009
The notes on pages 19 to 31 also form part of these financial statements.
CASH FLOW STATEMENT
For the year ended 31 October 2008
BMS World Mission PAGE 18
Note
2008
2007
£000 £000
Net cash outflow from operating activities 17 (515) (1,340)
Returns on investments and servicing of finance
Investment income 247 256
Capital expenditure and financial investment
Payments to acquire tangible fixed assets (213) (465)
Proceeds from sale of tangible fixed assets 100 925
Purchase of investments (311) (63)
Proceeds from sales of investments 891 649
467 1,046
Cash inflow/(outflow) before increase in liquid resources and
financing
199
(38)
Management of liquid resources
(Increase)/decrease in short term deposits (115) 289
Increase in cash in the year
84 251
The notes on pages 19 to 31 also form part of these financial statements.
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 October 2008
BMS World Mission PAGE 19
1 Accounting policies
a Basis of preparation
The financial statements have been prepared under the historical cost convention as modified by the inclusion of
investments at market value and in accordance with applicable accounting standards. In preparing the financial
statements the charity has complied with the requirements of the Charities Act 1993 and the Statement of
Recommended Practice 2005 Accounting and Reporting by Charities (SORP 2005).
b Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of
the objectives of the charity and which have not been designated for other purposes.
Designated funds comprise unrestricted funds, which have been set aside by the Trustees for particular
purposes. The aim and use of each designated fund is set out in the notes to the financial statements.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by the donors or
which have been raised by the charity for particular purposes. The aim and use of each restricted fund is set out
in the notes to the financial statements.
Endowment funds are those where donations are required to be retained as capital in accordance with the
permanent or expendable according to the nature of the restriction.
Investment income and gains are allocated to the appropriate fund.
c Incoming resources
All incoming resources are included in the Statement of Financial Activities when the charity is legally entitled to
the income and the amount can be quantified with reasonable accuracy. In accordance with this policy, legacies
are included when an entitlement arises during the year and the charity agrees the final estate accounts within
two months of the year end. Where estate accounts have not been agreed but a material entitlement has been
notified within this time period an estimate of the entitlement is shown in a note to the accounts but not included
in the statement of financial activities.
d Resources expended
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all
costs related to the category. Cost of generating funds are those costs incurred in seeking voluntary
s investments. They do not include the costs of
with the governance arrangements of the charity and include the cost of the annual audit of the accounts, the
expenses of Trustee meetings and the costs of staff involved in supporting these activities.
e Tangible fixed assets and depreciation
Tangible fixed assets costing more than £500 are capitalised and included at cost including any incidental
expenses of acquisition.
Depreciation is calculated to write down the original costs of the fixed assets over their estimated useful lives as
follows:
Buildings over 50 years
Computer over 3 years
Furniture and fittings over 3 - 5 years
f Freehold land and buildings
Land and buildings are shown at original historical cost, probate value or subsequent valuation prior to the
implementation of FRS 15 Tangible Fixed Assets. The transitional arrangements of FRS15 have been adopted
where properties held at 31 October 2000 were revalued prior to that date. The charity is not continuing its
revaluation policy in relation to such assets.
g Investments
Investments are stated at market value at the balance sheet date. The Statement of Financial Activities includes
the net gains and losses arising on revaluations and disposals throughout the year.
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 October 2008
BMS World Mission PAGE 20
1 Accounting policies (cont)
h Joint arrangement
The charity has entered into a joint arrangement with the Baptist Union of Great Britain for the management of
Baptist House, its headquarters building. Under the terms of this arrangement, the property is legally vested in
corporate representatives of the two bodies and management of the property assigned to a management
committee nominated by the two charities. The arrangement was undertaken to enable two unincorporated
charities to jointly own and manage one property. The charity accounts for this arrangement by recognising its
share of the relevant assets and liabilities, income and expenditure arising from this arrangement in the Balance
Sheet and Statement of Financial Activities respectively. Transactions between the charity and the joint
arrangement are eliminated on incorporating these amounts into the accounts of the charity.
i Stock
Stock is valued at the lower of cost and estimated net realisable value.
j Pensions
In accordance with Financial Reporting Standard 17 Retirement Benefits (FRS17) the current service cost, past
service costs and any gains and losses on settlements and curtailments are charged in resources expended in
the Statement of Financial Activities. The interest costs and the expected return on assets are shown as a net
amount of other finance costs or credits and included in resources expended. Actuarial gains and losses are
.
The defined benefit scheme is funded, with the assets of the scheme held separately from those of the charity, in
separate Trustee-administered funds. Pension scheme assets are measured at fair value and liabilities are
measured on an actuarial basis using the projected unit method and discounted at a rate equivalent to the
current rate of return on a high quality corporate bond of equivalent currency and term to the s
The actuarial valuations are obtained at least triennially and are updated at each balance sheet date. The
resulting defined benefit asset or liability is presented separately after other net assets on the face of the balance
sheet.
k Foreign currencies
Transactions in foreign currencies are translated into sterling at the rate ruling at the date of the transaction.
Monetary assets and liabilities are retranslated at the rate of exchange ruling at the Balance Sheet date. Any gain
or loss on exchange is taken to the Statement of Financial Activities at that time.
2 Donations and gifts
2008
£000
2007
£000
General work 4,823 4,414
Medical work
Birthday scheme 335 316
Other 70 74
5,228 4,804
Emergency relief fund 389 154
5,617 4,958
3 Investment income
2008
2007
£000 £000
UK investment dividends 187 196
Interest on cash deposits 39 41
Bank and other interest 21 19
247 256
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 October 2008
BMS World Mission PAGE 21
4 Total resources expended
Activities
undertaken
directly
Grant funding of
activities
Support
costs
Total
2008
Total
2007
£000 £000 £000 £000 £000
Cost of generating funds
Cost of generating
voluntary income
255
-
25
280
343
Investment
management fees
20
-
-
20
22
Charitable activities
Church-based ministries 1,725 - 386 2,111 2,121
Partner ministries 139 830 145 1,114 1,146
Compassion ministries 1,499 330 309 2,138 2,317
Mission mobilisation 855 - 126 981 1,018
Governance costs 29 - 21 50 53
4,522 1,160 1,012 6,694 7,020
5 Analysis of support costs
Mission
Team
Communications
Team
Central
Services
Total
2008
Total
2007
£000 £000 £000 £000 £000
Cost of generating funds
Cost of generating
voluntary income
-
-
25
25
27
Investment
management fees
-
-
-
-
-
Charitable activities
Church-based ministries 68 30 288 386 396
Partner ministries - 7 138 145 148
Compassion ministries 39 25 245 309 324
Mission mobilisation - - 126 126 127
Governance costs - - 21 21 24
107 62 843 1,012 1,046
Support costs have been allocated to activity cost categories on a basis consistent with the use of resources. Some have
been apportioned on the proportion of floor area occupied by the activity whereas others have been apportioned on staff
numbers, time used for the activity or proportion of direct costs involved.
6 Governance costs
2008
2007
£000 £000
Audit fee 23 22
Board of Trustees 6 7
Support costs 21 24
50 53
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 October 2008
BMS World Mission PAGE 22
7 Grants payable
Relief
£000
Capacity
Building
£000
Medical
£000
Total
2008
£000
Overseas partners
Asia and Middle East
Afghanistan
13
-
-
13
Bangladesh
Bangladesh Baptist Church Sangha
Mennonite Central Committee
Partner
-
49
10
12
-
36
-
-
-
12
49
46
Social, Health, Education and Development Board 19 12 4 35
India
Baptist Church of Mizoram 6 1 - 7
Baptist Church Trust Association - 15 - 15
Bengal Baptist Union - 6 - 6
Church of North India 26 - - 26
Kerapatan Gereja Baptist Indonesia - 18 - 18
Lebanon
Arab Baptist Theological Seminary - 19 - 19
Lebanese Society for Educational & Social
Development 1 20 - 21
Myanmar Baptist Convention 15 - - 15
Nepal
United Mission to Nepal - 12 - 12
Thailand
Thailand Baptist Missionary Fellowship - 5 - 5
Karen Baptist Convention
- 10 - 10
Africa
Angola Evangelical Baptist Church - 28 114 142
Democratic Republic of the Congo
Baptist Community of the River Congo - 36 25 61
Vorsi - - 17 17
South Africa Baptist Convention - 15 - 15
Uganda
Baptist Union of Uganda 28 19 - 47
- 5 - 5
National Baptist Convention of Zimbabwe
23 8 - 31
Latin America & Caribbean
Brazil, Baptist Conventions (9) 51 - 42
Ecuador Baptist Convention - 5 - 5
Jamaica, Baptist Union - 7 - 7
Peru, Evangelical Baptist Convention
Europe
- 11 - 11
Union of Baptist Churches in Belgium - 54 - 54
Baptist Union of Bulgaria - 13 - 13
Czech Republic, International Baptist Theological
Seminary - 11 - 11
Baptist Union of Croatia - 46 - 46
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 October 2008
BMS World Mission PAGE 23
7 Grants payable (cont)
Relief
£000
Capacity
building
£000
Medical
£000
Total
2008
£000
Federation of Evangelical Baptist Churches of France - 13 - 13
Georgia, Evangelical Baptist Church 20 - - 20
Hungarian Baptist Union - 9 - 9
Baptist Evangelical Christian Union of Italy - 7 - 7
Baptist Union of Portugal - 9 - 9
Other partners
22 100 3 125
Overseas individuals
- 33 - 33
International organisations
Amity Christian Foundation (China) 10 - - 10
Asia Pacific Baptist Federation 23 - - 23
Development Association International 10 - - 10
European Baptist Federation - 14 - 14
Hungarian Baptist Aid 15 - - 15
Operation Mobilisation 15 - - 15
SAT-7 - 21 - 21
UK organisations
Global Connections - 5 - 5
Haiti Hospital Appeal 6 - - 6
Micah Challenge UK - 5 - 5
Other organisations/partners 1 4 - 5
303 694 163 1,160
8 Statement of funds
Balance
at 1.11.07
Incoming
resources
Resources
expended
Realised
and
unrealised
gains
Transfers
Balance
at
31.10.08
£000 £000 £000 £000 £000 £000
Endowment funds
Cyril Edwards Trust 517 - 2 (150) - 365
Jane Mursell Trust 558 - 3 (161) - 394
Joy Bushon Sircar Trust 224 - - (13) - 211
Other endowment funds 50 - - (8) 1 43
1,349 - 5 (332) 1 1,013
The income of the Cyril Edwards Trust is available to be used in any field where the charity operates.
The income of the Joy Bushon Sircar Trust is to be used to benefit specific educational and church work in the Barisal area
of Bangladesh. The Trust is invested in US dollar securities which have been converted into sterling at the rate ruling at 31
October 2008.
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 October 2008
BMS World Mission PAGE 24
8 Statement of funds (cont)
Balance at
1.11.07
Incoming
resources
Resources
expended
Realised
and
unrealised
gains
Transfers
Balance
at
31.10.08
£000 £000 £000 £000 £000 £000
Restricted funds
Emergency relief fund 140 401 310 - - 231
Angola and Democratic Republic of
Congo medical fund 409 20 171 (52) (26) 180
Medical - 476 527 - 51 -
Restricted fixed assets reserve 345 - - - (5) 340
Restricted property funds 227 13 - - - 240
Other restricted funds 5 286 231 - (55) 5
1,126 1,196 1,239 (52) (35) 996
The emergency relief fund represents funds received for relief and disaster response around the world primarily where the
charity is involved.
The Angola and Democratic Republic of Congo medical fund is available for medical work in Angola and the Democratic
Republic of Congo.
The transfer to the medical fund is from general reserves to cover the excess of that expenditure over income received.
The restricted fixed assets reserve represents the value of properties which have been left to the charity with restricted
use.
Restricted property funds are held following the sale, approved by the Charity Commission, of a property left to the charity
with restricted use.
Balance at
1.11.07
Incoming
resources
Resources
expended
Realised and
unrealised
gains
Transfers
Balance at
31.10.08
£000 £000 £000 £000 £000 £000
Unrestricted funds
Pension reserve 1,235 (870) - - 356 721
Designated
Fixed assets reserve 7,522 - - - (61) 7,461
Other designated funds 77 - 20 - (2) 55
7,599 - 20 - (63) 7,516
General funds
Free reserves 4,051 6,087 5,786 (648) 97 3,801
12,885 5,217 5,806 (648) 390 12,038
The fixed assets reserve represents amounts set aside equivalent to the net book value of property, equipment and
vehicles used by the charity and purchased from unrestricted funds. The transfer from the fixed assets reserve is to the
general fund to bring the reserve into line with the value of the fixed assets at the year end.
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 October 2008
BMS World Mission PAGE 25
9 Tangible fixed assets
Land and
buildings
Furniture and
equipment
Motor
vehicles
Total
£000 £000 £000 £000
Cost
1 November 8,604 964 - 9,568
Additions 191 22 - 213
Revaluations - - - -
Disposals (101) (62) - (163)
31 October 8,694 924 - 9,618
Depreciation
1 November 800 901 - 1,701
Charge for year 140 40 - 180
Disposals (2) (61) - (63)
31 October 938 880 - 1,818
Net book value
31 October 2008 7,756 44 - 7,800
31 October 2007 7,803 64 - 7,867
10 Fixed asset investments
2008
2007
£000 £000
Analysis of movements in the year
Market value at 1 November 4,584 4,953
Add acquisitions at cost 311 63
Less proceeds of disposal (891) (649)
Net gains for the year (1,032) 217
2,972 4,584
Cash deposits 760 725
Market value at 31 October 3,732 5,309
Historical cost at 31 October 3,807 4,079
Analysis of investments held at 31 October
UK listed investments
Direct investments 2,260 3,412
Indirect investments 406 493
2,666 3,905
Non-UK listed investments
Direct investments - -
Indirect investments 306 679
306 679
Cash deposits 760 725
3,732 5,309
The following investments exceeded 5% of the total portfolio
Charities Property Fund 12.5%
Treasury Conversion 9% Stock 2011 7.3%
8% Treasury Stock 2015 7.1%
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 October 2008
BMS World Mission PAGE 26
11 Debtors
2008
2007
£000 £000
Trade debtors 1 2
Other debtors 483 461
Prepayments 66 80
Prepaid pension contributions 286 321
Accrued income 739 120
1,575 984
Other debtors include secured loans of £286,399 not due for repayment within the next year; all other debts are due
within one year.
12 Creditors: amounts falling due within one year
2008
2007
£000 £000
Loans 4 4
Trade creditors and accruals 190 236
Other creditors 152 160
Grants approved but not paid 112 146
458 546
13 Staff costs
The costs of mission personnel and other employees of the charity during the year
were as follows:
2008
2007
£000 £000
Allowances and salaries 2,804 2,741
Pension contributions 520 511
National Insurance contributions 166 157
Relocation payments 12 2
3,502 3,411
No employee earned in excess of £60,000 during the year.
Average number of employees:
Mission personnel 115 118
Other employees 71 71
186 189
During the year the following employees had secured loans from the charity:
Amount of loan Amount of loan
At 1.11.07 At 31.10.08 Purpose of loan
£ £
Mr D Clark 7,500 7,500 House purchase
Mr M Craig - 96,385 House purchase
Rev E Penman 84,585 83,832 House purchase
Mr M J Quantick
Rev J Smith
43,377
77,585
27,995
73,386
House purchase
House purchase
Loans for house purchase are repayable on or before resignation or retirement from the service of the charity. The interest
for the year ended 31 October 2008 was
based on the iBoxx AA Corporate Bond yield at 30 September plus 0.5% for administration costs.
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 October 2008
BMS World Mission PAGE 27
14 Trustee
No emoluments were paid to the Trustees, with the exception of the General Director, Rev Dr Alistair Brown, who was
employed by the charity and was remunerated on the same basis as other employees but received no remuneration for his
duties as a Trustee. The constitution makes particular provision for the General Director to be an employee of the charity
nts during the year were £47,392 (2007:
£47,874). He was also reimbursed for all necessary expenses incurred in carrying out his duties as an employee of the
charity, a total of £2,772 (2007: £2,444
£9,578 (2007: £9,675) were paid by the charity during the year. His benefits accruing within the scheme, as for any other
employee, are on an eightieths basis.
During the year a total of £8,551 (2007: £8,791) was reimbursed to 16 Trustees (2007: 15) in respect of committee
expenses. One Trustee had a close family member who was employed as a mission worker during the year and pension
contributions totalling £3,309 (2007: £3,429) were made into the scheme in respect of their employment. One Trustee was
a previous employee of the charity and has rights within the BMS Pension Scheme.
15 Pension costs
a BMS Pension scheme
The charity operates a final salary defined benefit scheme for its permanent employees, which is not contracted out of the
State Earnings Related Pension Scheme. The assets of the scheme are held separately from those of the charity and are
Trustee, the Baptist Missionary Society Pension Trust Limited, in consultation with their
investment managers. The contributions are determined on the advice of a qualified actuary on the basis of a triennial
valuation, the most recent valuation being as at 31 December 2006.
The valuation of the scheme as at 31 December 2006 showed the market value of the assets to be £19,883,000,
representing 104.9% contributions to the scheme were 15% of
g the year ended 31 October 2008 the charity made payments totalling £484,505 to
the scheme (2007: £475,417).
b FRS 17 Retirement benefits
The Scheme is a funded defined benefit arrangement which provides retirement benefits based on final pensionable
salary.
The valuation used for FRS17 disclosures has been based on a full assessment of the liabilities of the Scheme, the present
values of the defined benefit obligation, the related current service cost and any past service costs (if applicable) were
measured using the projected unit method.
The amounts recognised in the Balance Sheet are as follows:
At 31.10.08 At 31.10.07
£000 £000
Fair value of Scheme assets 15,286 20,690
Present value of funded obligations (14,565) (19,455)
721 1,235
At 31.10.08
At 31.10.07
£000 £000
Amounts in the Balance Sheet
Assets 721 1,235
Liabilities - -
Net pension asset 721 1,235
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 October 2008
BMS World Mission PAGE 28
15 Pension costs (cont)
The amounts recognised in the Statement of Financial Activities
are as follows:
At 31.10.08 At 31.10.07
£000 £000
Current service cost 451 574
Interest on obligation 1,110 969
Expected return on Scheme assets (1,430) (1,320)
Expense recognised in Statement of Financial Activities 131 223
Actual return on Scheme assets 5,485 1,273
Changes in the present value of the defined benefit obligation
are as follows:
At 31.10.08 At 31.10.07
£000 £000
Opening defined benefit obligation 19,455 20,100
Service cost 451 574
Interest cost 1,110 969
Contributions by members 232 228
Actuarial gains * (6,045) (1,781)
Benefits paid (638) (635)
Closing defined benefit obligation 14,565 19,455
* includes changes to the actuarial assumptions
Changes in the fair value of Scheme assets are as follows:
At 31.10.08 At 31.10.07
£000 £000
Opening fair value of Scheme assets 20,691 19,348
Expected return 1,430 1,320
Actuarial losses (6,916) (48)
Assets distributed on settlements - -
Contributions by employer 487 477
Contributions by member 232 228
Assets acquired in a business combination - -
Exchange differences on foreign schemes - -
Benefits paid (638) (635)
Closing fair value of Scheme assets 15,286 20,690
At 31.10.08
At 31.10.07
£000 £000
Total Actuarial (losses)/gains recognised in SOFA (870) 1,734
Cumulative amount of loss recognised in SOFA (1,177) (306)
The Employer expects to contribute £476,060 to the Scheme from 1 November 2008 to 31 October 2009
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 October 2008
BMS World Mission PAGE 29
15 Pension costs (cont)
The major categories of Scheme assets as a percentage of the total Scheme assets are as follows :
At 31.10.08 At 31.10.07
% %
Equities 65 64
Corporate Bonds 22 25
Property 10 10
Other assets 3 1
Principal actuarial assumptions at the Balance Sheet date (expressed as weighted averages (where applicable)):
At 31.10.08 At 31.10.07
% pa %pa
Discount rate at 31 October 7.6 5.8
Expected return on Scheme assets at 31 October ( for following year) 7.8 7.4
Rate of increase in pensionable salaries for home staff 4.2 4.4
Rate of increase in pensionable salaries for overseas staff 3.7 3.9
Rate of increase in deferred pensions 3.2 3.4
Rate of increase in pensions in respect of service before 6 April 2006 3.2 3.3
Rate of increase in pensions in respect of service after 5 April 2006 3.2 3.3
Mortality assumptions
The mortality assumptions are based on standard mortality tables which allow for future mortality improvements. The
assumptions are that a member aged 65 will live on average until age 87 if they are male and until 90 if female. For a
member currently aged 45 the assumptions are that if they attain age 65 they will live on average until age 87 if they are
male and until 90 if female.
Description of the basis used to determine return
The Employer adopts a building block approach in determining the expecte
Historic markets are studied and assets with high volatility are assumed to generate higher returns consistent with widely
accepted capital market principles.
Each different asset class is given a different expected rate of return. The overall rate of return is then derived by
aggregating the expected return for each asset class over the actual asset allocation for the Scheme at disclosure year end.
Amounts for the current and previous periods are as follows:
31.10.08
£
31.10.07
£
31.10.06
£
31.10.05
£
31.10.04
£
Defined benefit obligation 14,565 19,455 20,100 17,653 15,524
Scheme assets 15,286 20,690 19,348 16,655 14,348
Surplus/(deficit) 721 1,235 (752) (998) (1,176)
Experience (losses)/gains on Scheme assets (6,916) (48) 1,593 1,352 (10)
Experience gains/(losses) on Scheme liabilities 697 341 (148) 193 910
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 October 2008
BMS World Mission PAGE 30
16 Analysis of net assets between funds
Fund balances at 31 October are represented by:
Unrestricted
Funds
Designated
Funds
Restricted
Funds
Endowment
Funds
Total
2008
Total
2007
£000 £000 £000 £000 £000 £000
Tangible fixed
assets
-
7,461
339
-
7,800
7,867
Investments 2,007 55 657 1,013 3,732 5,309
Current assets 2,252 - - - 2,252 1,495
Current
liabilities
(458)
-
-
-
(458)
(546)
Pension fund 721 - - - 721 1,235
4,522 7,516 996 1,013 14,047 15,360
It is considered that each fund is held in a form appropriate to any restrictions applying.
17 Reconciliation of net incoming resources to net cash outflow from operating activities
Total
2008
Total
2007
£000 £000
Net incoming/(outgoing) resources 589 (586)
Investment income (247) (256)
Profit from sale of fixed assets - (229)
Depreciation 180 194
Increase in stocks (2) -
Increase in debtors (591) (128)
Decrease in creditors (88) (81)
Increase in pension fund asset (356) (254)
Net cash outflow from operating activities (515) (1,340)
18 Reconciliation of net cash flow to movement in net funds
2008
2007
£000 £000
Increase in cash in the year 84 251
Cash outflow/(inflow) from increase/(decrease)in liquid resources 115 (289)
Movement in net funds in the year 199 (38)
Net funds at 1 November 2007 1,227 1,265
Net funds at 31 October 2008 1,426 1,227
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 October 2008
BMS World Mission PAGE 31
19 Analysis of net funds
At 1
November
2007
Cash
flows
At 1
November
2008
£000 £000 £000
Cash at bank and in hand 192 49 241
Cash held in investment portfolio 725 35 760
Short term deposits 310 115 425
1,227 199 1,426
20 Post year-end events
In December 2008 we received £684,000 from the sale of a property in India.