Annual Report and Accounts, Watch Tower Bible and Tract Society of Britain (2005)

Download: PDF — Annual Report and Accounts, Watch Tower Bible and Tract Society of Britain (2005)

WATCH TOWER

BIBLE AND TRACT SOCIETY OF BRITAIN

ANNUAL REPORT AND ACCOUNTS 2005

No 3

ACCOUNT

1 3 MAR 2006

RECEIVED BY POST TEAM,

COMPLIANCE DIVISION

COMPANY NO. 3858051 REGISTERED CHARITY NO. 1077961 Charity Information 1

Report of the Trustees 2-4

Report of the Independent Auditors 5

Statement of Financial Activities 6

Balance Sheet 7

Cash Flow Statement 8

Notes to the Financial Statements 9-14

TRUSTEES

R Drage - ChairmanJ DowsonP EllisB Vigo

T P Cruse

REGISTERED OFFICE

IBSA House THE Ridgeway London NW7 1RN

REGISTERED NUMBER

3858051 (England and Wales)

AUDITORS

Calcutt Matthews

2nd Floor Cardine House

30 North Street

Ashford

Kent

TN24 8JR

PRINCIPAL BANKERS

Barclay's Bank plc PO Box 12820 London N20 0WE

INVESTMENT ADVISERS The Board of Trustees present their report and the financial statements of the Society for the year ended 31st August 2005.

The financial statements have been prepared in accordance with current statutory requirements and the charitable company's Memorandum and Articles of Association dated October 25, 1999 and the Statement of Recommended Practice (SORP 2000) - Accounting and Reporting by Charities.

Constitution

The charity was formed as an overseas corporation on 21st May 1953. On the 5th September 1993 it was registered as a Branch of an overseas company. On the 8th October 1999 it was re-registered as a UK Company limited by guarantee with its Memorandum and objects carried over, but updated to reflect current legislation.

Objects and Activities

The objects of the Society, contained in its memorandum, the governing document or the charity, are to advance the Christian religion as practiced by the body of Christian persons known as Jehovah's Witnesses by:

a. preaching the gospel of God's Kingdom under Christ Jesus unto all nations as a witness to the name, word and supremacy of the almighty God, JEHOVAH;

b. producing and distributing Bibles and other religious literature in any medium and educating the public in respect thereof;

c. promoting religious worship;

d. promoting Christian missionary work;

e. advancing religious education;

f. maintaining one or more religious orders or communities of special ministers of Jehovah's Witnesses;

This is accomplished by supporting congregations of Jehovah's Witnesses and others in connection with their spiritual and material welfare, in Britain and abroad, within the charitable purposes of the Society; by the printing and distribution of Bibles and Bible based literature, by making donations primarily in developing countries to local associations of Jehovah's Witnesses and administering the work of Jehovah's Witnesses in Britain.

Our grant making policy is as follows. From time to time we are asked by the Governing Body of Jehovah's Witnesses to consider helping Jehovah's Witnesses in countries where a need exists. We first satisfy ourselves that the expenditure will further the religious work of Jehovah's Witnesses, and after confirming that we have sufficient funds available, we then send the money to the organization caring for Jehovah's Witnesses in that country. Finally, we obtain reports to confirm the money was properly used.

Governance

The Trustees of the Society also have key managerial roles at the charity headquarters. They meet at least four times each year, and are in regular contact from day to day. Trustees are elected annually, by a simple majority of the members present at the AGM.

The recruitment and induction of new trustees is arranged as follows. On an annual basis the trustees review potential candidates. These are required to be appointed as elders in congregations of Jehovah's Witnesses. Their abilities are evaluated by means of the trustees' personal knowledge of the candidates or by a "personal qualifications report" provided by elders with knowledge of the individuals. Training is arranged as part of the meetings of the trustees when the charity's policies are discussed. This is supplemented by an annual training session provided by the auditors.

Internal Controls

These controls ensure that the monthly financial reports accurately represent all transactions; provide reasonable assurance that finances are being used for their intended purpose, verify that proper controls and procedures are in place, and adhered to, so that the figures are recorded accurately and the accounts are in balance.

The internal audit programme has been achieved. The internal auditor (who is a certified accountant) and his assistant, both drawn from the volunteer work force, have a set agenda to pursue throughout the year, and reported in writing to the trustees in November 2005. Approved recommendations were implemented.

Reserves Policy

The Society has a consistent income base through Gift Aid. In addition, the primary activity is the manufacture and distribution of Bible based religious literature on behalf of International Bible Students Association, the cost of which is passed on. Based on this income, we can plan confidently with relatively small reserves. The established policy is to ensure that we have on hand in liquid funds at least 4 months working expenditure. At the year-end, the liquid assets on hand were equivalent to 6.6 months of expenditure (2004: 6.0 months).

Investment Policy

In harmony with paragraphs 4.18 and 4.19 of the Memorandum and Articles, which give power to invest funds in any lawful manner having full regard to the suitability of the investments and the need for diversification. Investments are selected with consideration for our Christian principles. The objective is to preserve capital and achieve a real return of 4% greater than the rate of inflation. This was achieved.

Trustees' Report (cont...)

Relationship with connected charities

The Society works closely with International Bible Students Association, which permits Watch Tower Society to use its facilities for the Society's charitable activities and provides accommodation for volunteers. International Bible Students Association makes a monthly service and maintenance charge to the Society for the facilities it uses and for providing accommodation for volunteers connected with the Society's activities. The Society passes to International Bible Students Association the cost incurred in printing and distributing the Bible-based religious literature manufactured and delivered to destinations on its behalf and all other overhead costs.

Risk Assessment

The major risks to which the charity is exposed have been reviewed, with particular focus on events that would seriously impede the operations of the charity. Strategies and safeguards are in place to reduce, as far as possible, the impact of those risks. The risk register has been reviewed by the trustees and in view of the additional printing requirement; there is a need to plan further safeguards.

Review of the Year and Financial Position

Looking back on the year, there have been many global events, in particular, natural disasters which have affected the activities of the charity. Volunteers working with the charity have continued to respond to the changing global situations as they have arisen and the charity has been able to continue promoting its objects and activities on an international scale which continues to meet the criteria for public benefit. The trustees are pleased to give the following review of the year, including financial developments.

During the course of the year, there have been several international natural disasters, including the Tsunami, affecting Asia in December 2004, hurricanes in the Caribbean occurring approximately over the same period and ongoing requirements for food aid to various countries in Africa affected by abnormal weather conditions. Donations received during the year allowed the charity to donate the sum of £151,783 towards the Asia Tsunami disaster, E313,400 towards relief work following the hurricane disaster in the Caribbean and provide food aid to various countries in Africa in the sum of E60,425.

The charity was also able to make donations to twenty-five countries totaling £4,610,284 specifically for the construction of places of worship for use by local members of Jehovah's Witnesses and members of the public in the areas in which the buildings are located. The areas of the world to which the funds were donated were Eastern Europe, islands of the Pacific, countries in Africa and Asia and islands in the Caribbean and countries in Central America.

The charity was also able to make donations of cash, goods and donated literature to the central organization of Jehovah's Witnesses in twenty-three countries in the sum of £2,723,000. The countries are located in Eastern Europe, Africa, Asia and the Caribbean. The funds were donated to assist in covering the general operating expenses of the local branch of Jehovah's Witnesses. These funds are used to support the charitable activities of the local congregations of Jehovah's Witnesses in the respective countries. The weekly meetings to which the general public are invited offers practical advice on law-abiding citizenship and targeted workable family values for modern living and advises Christian tolerance in a multi-cultural society which has a broad cross community appeal and benefits the local population.

In 2005, the charity made interest-free loans to International Bible Students Association with whom it works closely, in the sum of £3,500,000. This was for the purpose of enabling International Bible Students Association to reduce their indebtedness to their bankers, thereby saving financial costs to the Association. The loan was raised by International Bible Students Association initially to purchase property which is now used by Watch Tower Society.

During the year, the trustees considered ways of making donations to the charity more accessible. In September 2004, the trustees authorized the setting-up of a donation website to enable donations, including tax-effective giving, to be made over the Internet. The site went live in November 2004 and over the period, to the end of the financial year, the trustees were pleased to see that the site has been well used, receiving donations totaling £245,000.

During the year, consideration has been given to the charitable status of congregations in Scotland. It is anticipated that all congregations in Scotland will be required to register with the Office of the Scottish Charity Regulator (OSCR). A meeting was held with the OSCR on behalf of congregations of Jehovah's Witnesses in Scotland, and the charity is continuing to monitor developments on behalf of the local congregations in Scotland to ensure that their current status as charities is maintained.

Further to the note in the Review of the Year and Financial Development for the year ending 31 August 2004, the charity agreed to a reduction in the charge for the production and supply of printed matter by 25% to International Bible Students Association. Taking into account various factors affecting production over the year this has resulted in a 12% reduction in income from the sale of literature and magazines to IBSA. This has however not affected the charity's ability to promote its activities and objects.

A major activity of the charity continues to be the printing and distribution of Bibles and Bible study aids, primarily for International Bible Students Association. The literature is distributed free of charge by IBSA to congregations of Jehovah's Witnesses and then to the public in general. The Society administers the work of Jehovah's Witnesses in Britain and notes that in the year under review, almost 18,000,000 hours were spent by Jehovah's Witnesses in Britain working in their communities helping people morally and spiritually. The Bible study aids printed by the charity offers practical advice on law-abiding citizenship, targeted workable family values for modern living and advises Christian tolerance in a multi-cultural society. Information on such values has a wide appeal as can be seen for the request for more Bibles and Bible study aids by both Jehovah's Witnesses and members of the public.

During the year, a total of 232,000,000 items were printed on the charity's two rotary presses. The main bulk of these items were the Watchtower and Awake journals which had a total printing of approximately 145,000,000. During the year, we increased the number of languages in which the Watchtower and Awake magazines were printed to twenty-eight. The additional languages are for various countries in Africa.

In October 2005, the charity was able to take occupation of a new facility [purchased and renovated by International Bible Students Association]. This facility houses the shipping and warehousing departments of the charity and has released much needed space in IBSA House for printing and finishing of magazines and brochures. The new MAN Roland Rotary Press has lived up to expectations and along with the computer controlled finishing and distribution lines, have enabled the charity to meet its commitments with regard to the introduction of new languages and increasing orders for the printed publications.

The financial result for the year's activity is shown on page 6. Donations received were £9,821,000, 31% higher than in the previous year. The total incoming resources were slightly up on 2004 which has enabled the charity to make substantial donations to Jehovah's Witnesses in other areas of the world while at the same time responding to unexpected natural disasters. The trustees are pleased with the report for the year and believe that both the financial situation and the introduction of new facilities and printing equipment leaves the charity well placed to continue promoting its objects and activities in the coming year.

Volunteers

Over the past year, due to natural disasters and an increase in the normal work of the charity, there has been a need on the part of many volunteers to spend more time than would have otherwise been required in assisting the charity. There has been wholehearted support from the volunteer workforce which has unstintingly given time, skills and energies to ensure that the charitable work of the Society has continued uninterrupted over the past year. We gratefully acknowledge their invaluable support and look forward to it continuing in the coming year.

Statement of Trustees' responsibilities

Company law requires the trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing those financial statements, the directors are required to

select suitable accounting policies and then apply them consistently;

make judgments and estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 1985. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Auditors

The auditors, Calcutt Matthews, Chartered Accountants, will be proposed for re-appointment in accordance with Section 385 of the Companies Act 1985.

ON BEHALF OF THE TRUSTEES:

R Drage

Dated January 2006

Watch Tower Bible and Tract Society of Britain Annual Report and Accounts 2005 We have audited the financial statements of IBSA for the year ended 31st August 2005, which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and the related notes.

These financial statements have been prepared under the historical cost convention and the accounting policies set out therein.

This report is made solely to the charity's trustees, as a body, in accordance with Section 44 of the Charities Act 1993. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of the Watch Tower Society and the independent auditors

The trustees' responsibilities for preparing the Trustees Annual Report and the financial statements in accordance with applicable law and the United Kingdom Accounting Standards are set out in the Statement of Trustees' Responsibilities.

We have been appointed auditors under section 43 of the Charities Act 1993 and report in accordance with regulations made under section 44 of that Act. Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and United Kingdom Auditing Standards.

We report to you our opinion as to whether the financial statements five a true and fair view and are properly in accordance with the Charities Act 1993. We also report to you if, in our opinion, the Trustees Annual Report is not consistent with the financial statements, if the charity has not kept proper accounting records or if we have not received all the information and explanations we require for the audit.

We are not required to consider whether the statement in the Trustees' Report concerning the major risks to which the charity is exposed covers all existing risks and controls, or to form an opinion on the effectiveness of the charity's risk management and control procedures.

We read other information contained in the Directors' Annual Report, and consider whether it is consistent with the audited financial statements. We consider the implications for our report if we become aware of any apparent misstatements or material inconsistencies with the financial statements. Our responsibilities do not extend to any other information.

Basis for opinion

We conduct our audit in accordance with United Kingdom Auditing Standards 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 judgments 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 consider 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 of the state of the charity's affairs as at 31 August 2005 and of its incoming resources and application of resources in the year then ended and have been properly prepared in accordance with the Charities Act 1993 and Companies Act 1985.

Calcutt Matthews

2nd Floor Cardine House

30 North Street

Ashford

Kent

TN24 8JR Dated: January 2006

Watch Tower Bible and Tract Society of Britain Annual Report and Accounts 2005 Statement Of Financial Activities

Unrestricted funds

Restricted funds

Total Funds 2005

Total Funds 2004

Incoming Resources

Notes

£000

£000

£000

£000

Donations and contributions

7,039

2,782

9,821

7,496

Legacies

1,640

1,663

2,209

Activities in furtherance of the charity's objectives

Income from literature

6,970

6,970

8,498

Investment income

1,155

1,290

Interest and dividends receivable

Total incoming resources

16,804

2,940

19,744

19,070

Resources expended

Cost of activities in furtherance of charity's objectives:

Ministry costs

1,114

Donations and aid to branches

2,723

5,136

7,859

4,294

Expenditure on literature

5,939

5,939

6,196

Support costs:

Charges from a connected charity for residential provision and other facilities

3,565

3,565

3,409

Management and administration

Total resources expended

13,613

5,198

18,811

15,916

Net (outgoing)/incoming resources

3,191

(2,258)

3,154

Net gains investments

Transfers

(48)

Net movement in funds

3,442

(2,306)

1,136

3,443

Fund balances brought forward at 1st September 2004

21,472

11,114

32,586

29,143

Fund balances carried forward at 31st August 2005

24,914

8,808

33,722

32,586

None of the charity's activities were acquired or discontinued during the current and previous years.

All gains and losses recognised in the year are included above.

The surplus for the year for Companies Act purposes comprises the net incoming resources for the year together with the realised gains on investments of £927,377 (2004: £3,443,292).

Fixed Assets

Notes

£000

£000

£000

£000

Tangible assets

7,269

7,913

Investments

16,968

13,468

Current Assets

Stocks

Debtors

5,155

5,749

Investments

25,303

27,582

Cash at bank and in hand

32,030

34,136

Creditors

Amounts falling due within one year

13,200

15,664

Net Current Assets

18,830

18,472

Total Assets Less Current Liabilities

43,067

39,853

Creditors

Amounts falling due after more than one year

9,345

7,267

Net Assets

33,722

32,586

Funds

24,914

21,472

Unrestricted funds

8,808

11,114

Restricted funds

33,722

32,586

Total funds

These financial statements on pages 6 to 14 were approved by the trustees on January 2006 and signed on their behalf by:

R. Drage

P. Ellis Cash Flow Statement

Notes

£000

£000

Net cash inflow from operating activities

Returns on investments and servicing of finance

(3500)

(2874)

Capital expenditure & financial investment

(3746)

Increase / (Decrease) in cash in the period

(74)

Reconciliation Of Net Cash Flow To Movement In Net Funds

Increase / (Decrease) in cash in the period

(74)

Movement In Net Funds In The Period

Net Funds At 1st September 2004

Net Funds At 31st August 2005

Accounting Policies

Accounting Convention

The financial statements have been prepared under the historical cost convention. The financial statements have been prepared in accordance with the Statement of Recommended Practice (SORP), "Accounting and Reporting by Charities" published in October 2000, the Companies Act 1985 and applicable accounting standards.

Fund Accounting

The charity has only general and restricted funds. General funds are unrestricted funds and are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes. Restricted funds are funds raised that are raised for specific purposes.

Incoming Resources

All incoming resources are included in the Statement of Financial Activities (SOFA) when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy. No income is deferred. Donations are from the public, congregations and other connected charities. Income from literature arise from literature sold to International Bible Students Association (IBSA), a connected charity on a cost basis in line with the charity's objects. Entitlement to legacies is the earlier of the charity being notified of an impending distribution or the legacy being received.

Resources Expended

All expenditure is accounted for on an accruals basis and has been classified under the headings that aggregate all costs related to that category. Where costs cannot be directly attributed to particular headings they all have been allocated to activities on a basis consistent with the use of resources. Costs of residential provision and other facilities comprise the costs of providing, maintaining accommodation and associated support costs are charged at an at cost basis by IBSA, a connected charity. Management and administration costs comprise depreciation on overseas properties and interest payable. All other administrative costs are re-charged.

Our grant making policy (donations) is as follows. From time to time the charity is asked by the Governing Body of Jehovah's Witnesses to consider helping Jehovah's Witnesses in countries where a need exists. The charity first consider whether the budget permits. If this is the case the charity satisfies itself that the expenditure will further the religious work of Jehovah's Witnesses and the charity then send the money to the organization caring for Jehovah's Witnesses in that country. Finally, the charity obtain reports to confirm the money was properly used.

Tangible Fixed Assets

All expenditure on computers and all other items individually with a cost of £1,000 or more is capitalised. Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life:

Freehold Land - Nil

Freehold Buildings -50 years straight line

Plant and machinery - 3-10 years straight line

Motor vehicles -4 years reducing balance

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Stocks

Conditional Donations

The charity receives some donations where the donor reserves the right to receive the funds back. Experience has shown that only a small percentage are returned, but prudently the charity provides for fifty percent.

Transactions are on an arms length and accruals basis. Note 13 sets out the relationship with IBSA. Most other countries have a branch office of Jehovah's Witnesses.

Connected Charities

Donations Receivable

£000

£000

Literature from headquarters

From individuals

From congregations

From others

Watch Tower Bible and Tract Society of Britain Annual Report and Accounts 2005 Notes to the Financial Statements

Literature Account

£000

£000

Value of literature and magazines donated overseas

Value of literature and magazines sold to IBSA

Income from literature

Value of literature donated by HQ(and other branches)

Shipment/Production expenses

Increase in literature stock

(202)

Expenditure on literature

Net income from literature

Unrestricted

Restricted

Total 2005

Donations Made

£000

£000

£000

£000

Analysis by Purpose:

Distress Relief

Construction of Kingdom Halls

Branch facilities and Missionary homes

Analysis by Geography:

Europe

Africa

Asia

Other

Total donations made

*All cash, goods and literature were for the benefit of the work of Jehovah's Witnesses for countries in need, and in line with the objects of the Society.

Analysis Of Total Resources Expended

Other costs£000

Depreciation£000

Total£000

Total£000

Cost of literature

5,153

5,939

6,196

Ministry costs

1,616

Donations

7,859

7,859

3,792

Charges from connected charity for residential provision and other facilities

3,565

3,565

3,409

Management and Administration

17,780

1,031

18,811

15,916

Watch Tower Bible and Tract Society of Britain Annual Report and Accounts 2005 Notes to the Financial Statements

Tangible Fixed Assets

Land&Buildings£000

Plant andMachinery£000

MotorVehicles£000

Total£000

Cost:

At 1st September 2004

11210

Additions

Disposals

(631)

(482)

(1113)

At 31 August 2005

10673

Depreciation:

At 1st April 2004

Charge for the year

Eliminated on disposals

(544)

(380)

(924)

At 31st March 2005

Net Book Value:

At 31st March 2005

At 31st March 2004

Fixed Asset Investments

2005£000

2004£000

At 1st September 2004

13,468

9,438

Further advance

3,500

4,030

At 31st August 2005

16,968

13,468

The loan is to IBSA, a connected charity (see note 13) and is made interest free but secured by promissory notes.

Debtors

2005£000

2004£000

Trade debtors

Other debtors

Due from congregations

Prepayments and accrued income

Due from connected charity

Due from overseas branches

Total

Notes to the Financial Statements

Current Asset Investments

Cash equivalents

Narrow range investments

Total 2005

£000

£000

£000

Market Value at 1st September 2004

6,799

20,783

27,582

Additions

4,146

4,146

Disposal proceeds

(1,188)

(5,440)

(6,628)

Net investment gains

Market Value at 31st August 2005

5,611

19,692

25,303

Historical Cost at 31st August 2005

5,611

19,038

24,649

The investments at market value comprise:

UK bonds and cash

17,641

European bonds

7,662

Total Market Value

25,303

Creditors: Amounts Falling Due Within One Year

£000

£000

Trade Creditors

1,036

Other Creditors

2,425

Deposits (see note 11)

11,875

11,747

Conditional donations

Accruals

Due to connected charity

Total creditors falling due within one year

13,200

15,664

Creditors: Amounts Falling Due After More Than One Year

£000

£000

Other loans*

4,443

2,197

Deposits**

4,902

5,070

Total creditors falling due after more than one year

9,345

7,267

*Other loans represent monies held in investments due to Watch Tower Bible and Tract Society in Spain.

**Congregations, circuits, and individuals deposit monies currently not needed by themselves with the charity so that the Society may benefit from the use of the funds whilst not needed.

Notes to the Financial Statements

12a. Funds

At 1 Sept2004£000

IncomeIncludinggains£000

Expenditure£000

Transfers£000

At31Aug2005£000

Unrestricted:

General fund

21,472

17,007

13,613

24,914

Restricted:

Travelling overseers assistance arrangement

(48)

Kingdom Hall assistance arrangement

2,696

3,125

The Society Kingdom Hall fund

8,323

1,192

4,610

4,905

Distress Relief fund

Eastern Europe fund

Total restricted funds

11,114

2,940

5,198

(48)

8,808

Total funds

32,586

19,947

18,811

33,722

This fund was formerly named the Ministers car fund and was set up for the provision of motor vehicles for travelling ministers in the British field. For the past three years the appeal was closed and vehicles were purchased through the General fund. However, in 2004, the trustees once again sent out an appeal re-opening the fund with the name change. The fund has been established with an option to use funds in excess of requirements to unrestricted funds.

Kingdom Hall assistance arrangement

The Kingdom Hall upkeep and assistance arrangement exists to give aid where losses and damages have been suffered by congregations or individuals.

The Society Kingdom Hall fund

The Society Kingdom Hall fund was set up to provide monies to assist with the purchase of places of worship. As explained in note 4, during the year significant funds were sent overseas for Kingdom Hall building.

Distress Relief fund

This fund exists for the purpose of giving support to areas experiencing distress or natural disaster.

Eastern Europe fund

This fund was established to help contribute towards the purchase of places of worship and of branch facilities in Eastern Europe.

12b. Assets by Fund

Unrestricted£000

Restricted£000

Total£000

2004£000

Tangible fixed assets

7,269

7,269

7,913

Loans

16,968

16,968

13,468

Net Current assets

10,022

8,808

18,830

18,472

Creditors: falling due after more than one year

(9,345)

(9,345)

(7,267)

24,914

8,808

33,722

32,586

Transactions With Trustees And

Connected Parties

The trustees confirm that they have not been involved with any transactions of the charity. The Society has close connections with International Bible Students Association which is a registered charity and has similar objects. This charity has the same registered office as that of the Society.

Trustees

The trustees of Watch Tower receive no payments or reimbursements in their capacity as trustees. The trustees are also volunteer workers at the Association's premises, they receive personal expense allowances of £80 per month and a personal expense gift of £300 per year with free board and lodging as indeed do all volunteers.

Watch Tower Bible and Tract Society of Britain Annual Report and Accounts 2005

Reconciliation Of Changes In Resources To Net Inflow From Operating Activities

2005£000

2004£000

Net incoming resources and investment gains

1,136

3,154

Investment gains/(losses)

(867)

(Increase)/Decrease in Stocks

(208)

(Increase)/Decrease in Debtors

Increase/(Decrease) in Creditors

(585)

2,165

Depreciation

1,031

1,101

Net cash inflow from operating activities

2,102

6,546

Returns On Investment and Servicing Of Finance

2005£000

2004£000

Investment income

Loan to IBSA

(3,500)

(4,030)

Investment gains

(3,500)

(2,874)

Analysis Of Cash Flow From Capital

Expenditure In The Cash Flow Statement

2005£000

2004£000

Capital Expenditure And Financial Investment:

Loan Advances

Purchase Of Tangible Fixed Assets

(576)

(2,035)

Sale Of Tangible Fixed Assets

Net outlay on investments

2,279

(2,160)

1,957

(3,746)