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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

http://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)



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.




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.




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.




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.



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.



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.





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.





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.





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.



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)



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



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.



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



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



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



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


CASH FLOW STATEMENT



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


NOTES TO THE FINANCIAL STATEMENTS



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.




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




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


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

-

-

-

-

-


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




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




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.




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.




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%




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.




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




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




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




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




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.

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