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2021-12-31-accounts

Reigate Baptist Church

Report and Accounts

Year ended 31 December 2021

1 Lamb's Passage, London EC1Y 8AB www.stewardship.org.uk

REIGATE BAPTIST CHURCH

CHARITY INFORMATION

FOR THE YEAR ENDED 31 DECEMBER 2021

Trustees Ian Curry Margaret Thomas Dr. John Eglington Glenn Hirchfield Resigned 12th January 2022 Lisa Marie Hopkins Appointed 12th January 2022 Key Staff Mike Williams Senior Pastor Louine Berry Church administrator Governing Document Deed of Trust dated 30th October 1998 Charity Registration Number 1072718 Principal Address Sycamore Walk Reigate RH2 7LR Independent Examiner Archie McDowall Stewardship 1 Lamb's Passage London EC1Y 8AB Bankers CAF Bank Ltd. 25 Kings Hill Avenue West Malling Kent ME19 4JQ

Trustees

Contents Page
Charity Information 1
Trustees' Annual Report 2 - 6
Independent Examiner's Report 7
Statement of Financial Activities 8
Balance Sheet 9
Cashflow Statement 10 - 11
Notes to the Accounts 12 - 21
Detailed Statement of Financial Activities with Comparatives 22

Page 1

REIGATE BAPTIST CHURCH

Sycamore Walk Reigate Surrey RH2 7LR

Trustee’s Report for the year ended 31 December, 2021

1. Objects of the Charity - Principal Activities and Organisation

The church is constituted by a Deed of Trust dated 30 October, 1998 and is registered with the Charity Commission under reference 1072718.

The objects of the Trust are to advance the Christian faith to relieve hardship and to promote and fulfil such other charitable purposes beneficial to the community in the County of Surrey and in such other parts of the United Kingdom or the World as the Trustees think fit. The principal activities carried out in pursuance of these objectives are set out below.

The Trustees who served throughout the year are Mr. Ian Curry, Mrs. Margaret Thomas, Dr. John Eglington and Mr. Glenn Hirchfield. Mr Hirchfield resigned on 12 January 2022, and Mrs Lisa Hopkins was appointed on the same date. The appointment of new Trustees is governed by the Trust Deed, which requires a resolution of the majority of church members voting at a duly constituted church meeting.

2. Financial Review

The total incoming resources for 2021 totaled £527,264 (2020: £417,938) and total expenditure for 2021 totaled £553,150 (2020: £440,793) which produced net outgoing resources for the church of £25,887 (2020: £22,855) before adjusting for revaluation in fixed assets and actuarial valuation of pension schemes. After these adjustments, the net movement in funds was an increase of £161,723 (2020: decrease £26,010), mainly due to the revaluation of the manse property. Income was slightly higher in 2021 compared with 2020, but it is still lower than previous years because of the continuing effects of COVID-19, which prevented the church meeting physically and prevented lettings for part of the year.

Fund balances carried forward amount to £2,297,592 unrestricted funds and £3,406 restricted funds.

3. Review of Activities

Worship and Prayer

Under normal circumstances all are welcome to attend our Sunday morning and regular evening prayer services as well as our Easter and Christmas services. There are presently approximately 225 active members of the church as well as 4 awaiting membership at our next church meeting. Sunday morning attendance is about 300 adults together with children and teenagers attending several age-group meetings, however in accordance with government guidelines physical services were not held from January 2021 until April, when we began meeting physically, but with restricted numbers and online streaming. In September we were able to resume meetings with unrestricted numbers.

Additionally, our regular weekly meetings continued as follows:

Page 2

Outreach and Community

RBC works closely with various outreach projects that benefit the local community and beyond:

Event held:

Events continued online:

In March 2021 the Foodbank was transferred at no cost, to a new charity, Open Hands.

Government guidance relating to COVID-19 has been followed for all events and full Risk Assessments carried out.

Use of the Church Building

The church building is generally used extensively for outreach and community events. Private letting reduced considerably after the COVID-19 restrictions began. Users include:

Page 3

The only bookings that we were able to accommodate during the pandemic (given the restrictions) were:

In planning the activities, the Trustees have had regard to the guidance on public benefit issued by the Charity Commission.

4. Achievements and performance

5. Grant Making Policy

The church tithes approximately 10% of its gross undesignated fund giving to Christian organisations and individuals agreed by the leadership. During the year significant gifts were made to:

6. Future Developments and Funding

There are currently no commitments for future major capital expenditure.

7. Governance and Management

The Trustees are required to meet at least once in every year and in practice do so as often as necessary for the proper management of the Trust. Four ordinary members meetings are scheduled each year, together with occasional extraordinary meetings dedicated to particular matters.

The Trustees review remuneration of all Staff, including the Pastor, annually. This is done with a view to the level of responsibility each member of staff has within the church. Salaries are also reviewed with regard to the current rate of inflation.

The Trustees have attended various seminars and training courses relevant to the role of Trustee.

Decisions as to the day-to-day pastoral work of the church are made by the Eldership, two of whom are

Page 4

also Trustees, but referring to the Trustees in all Financial and Legal matters, including staff appointments and development within their roles.

8. Risk Management

The Trustees and Elders have examined the major strategic business operational and legal risks that the church faces. The Trustees confirm that to the best of their knowledge and belief suitable systems and measures are in place to monitor, manage and mitigate these risks appropriately for the benefit of church members and other users of the premises.

In particular the main risks identified are:

9. Reserves policy

The trustees have determined that the charity should aim to hold unrestricted cash of no less than £60,000 (which equates to 1.5 months of unrestricted expenditure). The current cash reserves are well above this amount.

Measures to safeguard against unauthorised expenditure and to monitor income are constantly reviewed to ensure funds are rigorously protected.

10. Statutory Obligations

The Trustees and Elders have examined the relevant statutory requirements in respect of antidiscrimination, the protection of vulnerable individuals (including children), health & safety, and data protection. The Trustees confirm that to the best of their knowledge and belief the church complies with these obligations and does so in conformity with the objects of the Trust.

11. Responsibilities of Trustees under Charity Law

The Trustees are responsible for preparing the Trustees' Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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 charitable company as at the balance sheet date and of its incoming resources and application of resources, including income and expenditure, for the financial year. In preparing these financial statements, the Trustees are required to:

  1. select suitable accounting policies and apply them consistently;

  2. observe the methods and principles in the Charities SORP;

Page 5

  1. make judgements and estimates that are reasonable and prudent;

  2. state whether the applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

  3. prepare the financial statements on a going concern basis unless it is inappropriate to presume that the charity will continue in operation.

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011 and the Charity (Accounts and Reports) Regulations 2008. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

12. Bankers

The Trust's principal bankers are CAF Bank Limited, 25 Kings Hill Avenue, Kings Hill, West Malling, Kent, ME19 4TA.

13. Independent Examiner

The Trust's independent examiner is Archie McDowall, Stewardship Services, 1 Lamb's Passage, London EC1Y 8AB

This report was approved by the Trustees of Reigate Baptist Church and signed on their behalf by:

Ian Curry

Ian Curry, Trustee

Date: 7 September 2022

Page 6

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF

REIGATE BAPTIST CHURCH ('the Charity')

I report to the charity trustees on my examination of the accounts of the Charity for the year ended 31 December 2021 on pages 8 to 22 following, which have been prepared on the basis of the accounting policies set out on pages 12 and 13.

Responsibilities and basis of report

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

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

Independent examiner’s statement

Since the Charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants of Scotland, which is one of the listed bodies.

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

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

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

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

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

Archie McDowall

Archie McDowall

Institute of Chartered Accountants of Scotland

Stewardship 1 Lamb's Passage London EC1Y 8AB

Date: 27 September 2022

Page 7

REIGATE BAPTIST CHURCH

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 DECEMBER 2021

Note
INCOME AND ENDOWMENTS FROM:
Donations and legacies
3
Charitable activities
4
Other trading activities
5
Investments
Other income
6
Total income and endowments
EXPENDITURE ON:
Charitable activities
7
Total expenditure
Net income/(expenditure)
Transfers between funds
17
Other recognised gains/(losses):
Gains/(losses) on revaluation of fixed assets
Actuarial gains/(losses) on defined
benefit pension schemes
16
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward
17		 Unrestricted
Funds
£
431,017
5,237
35,854
70
41,833
514,011
532,680
532,680
(18,669)
6,640
(12,029)
161,554
26,055
175,580
2,122,012
2,297,592		 Restricted
Funds
£
13,253
-
-
-
-
13,253
20,470
20,470
(7,217)
(6,640)
(13,857)
-
-
(13,857)
17,263
3,406		 Total
Funds
2021
£
444,270
5,237
35,854
70
41,833
527,264
553,150
553,150
(25,887)
-
(25,887)
161,554
26,055
161,723
2,139,275
2,300,998		 Total
Funds
2020
£
348,838
3,621
30,725
251
34,503
417,938
440,793
440,793
(22,855)
-
(22,855)
-
(3,155)
(26,010)
2,165,285
2,139,275

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

All income and expenditure derive from continuing operations.

The notes on page 12-21 form part of these accounts.

Page 8

REIGATE BAPTIST CHURCH

BALANCE SHEET

FOR THE YEAR ENDED 31 DECEMBER 2021

Note
FIXED ASSETS
Tangible assets
9
CURRENT ASSETS
Stock
10
Debtors
11
Cash at bank and in hand
12
CREDITORS: Amounts falling
due within one year
13
Net current assets / (liabilities)
Total assets less current liabilities
CREDITORS: Amounts falling due
14
after more than one year
Net assets / (liabilities) excluding
pension asset / (liability)
Defined benefit scheme asset / (liability)
16
TOTAL NET ASSETS
FUND BALANCES
17
Unrestricted Funds
General funds
Restricted Funds		 Unrestricted
Funds
£
2,224,013
2,224,013
-
16,052
155,511
171,563
(12,194)
159,369
2,383,383
(23,691)
2,359,692
(62,100)
2,297,592
2,297,592
2,297,592
-
2,297,592		 Restricted
Funds
£
-
-
-
-
3,406
3,406
-
3,406
3,406
3,406
-
3,406
-
-
3,406
3,406		 Total
Funds
2021
£
2,224,013
2,224,013
-
16,052
158,917
174,969
(12,194)
162,775
2,386,789
(23,691)
2,363,098
(62,100)
2,300,998
2,297,592
2,297,592
3,406
2,300,998		 Total
Funds
2020
£
2,063,725
2,063,725
390
10,135
208,562
219,087
(20,599)
198,489
2,262,213
(28,738)
2,233,475
(94,200)
2,139,275
2,122,012
2,122,012
17,263
2,139,275

The financial statements were approved by the Board of Trustees and were signed on its behalf by:

Ian Curry

Ian Curry, Trustee Date: 7 September 2022

Charity number: 1072718

The notes on page 12-21 form part of these accounts.

Page 9

REIGATE BAPTIST CHURCH

FOR THE YEAR ENDED 31 DECEMBER 2021

CASH FLOW STATEMENT

Note
Cash flows from operating activities:
Net cash provided by (used in) operating activities
a
Cash flows from investing activities:
Dividends, interest and rents from investments
Purchase of property, plant and equipment
Net cash provided by/(used in) investing activities
Cash flows from financing activities:
Repayments of borrowing
Payments made to BU towards pension deficit
Net cash provided by/(used in) financing activities
b
b
Cash and equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Change in cash and equivalents in the reporting period		 2021
£
(25,103)
70
(13,590)
(13,520)
(4,977)
(6,045)
(11,021)
(49,645)
208,562
158,917		 2020
£
(2,383)
251
(7,203)
(6,952)
(4,857)
(4,455)
(9,312)
(18,647)
227,209
208,562

Analysis of changes in net debt:

Cash
Bank loans:
Falling due within one year
Falling due after one year
Finance lease obligations:
Falling due within one year
Falling due after one year
Total net funds / (debt)		 At start of
year
£
208,562
(4,000)
(8,000)
(885)
(20,738)
174,939		 Cash-flows
£
(49,645)
-
(4,000)
71
(1,047)
(54,621)		 At end of
year
£
158,917
(4,000)
(4,000)
(956)
(19,691)
130,270

Page 10

REIGATE BAPTIST CHURCH

FOR THE YEAR ENDED 31 DECEMBER 2021

NOTES TO THE CASH FLOW STATEMENT

Note a: Reconciliation of net income/(expenditure) to net cash flow from operating activities

Adjustments for:
Depreciation charges and provisions for impairment
Dividends, interest and rents from investments
Loss/(gain) on the revaluation of fixed assets
Increase/(decrease) in defined benefit pension liability
(Increase)/decrease in stocks
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Net cash provided by (used in) operating activities
Note b: Analysis of cash and cash equivalents
Cash at bank with immediate access
Notice deposits (with a term of three months or less)
Petty cash
Total cash and cash equivalents
Net income/(expenditure) for the reporting period (as per the statement of financial
activities)		 2021
£
161,723
14,855
(70)
(161,554)
(26,055)
390
(5,916)
(8,476)
(25,103)
2021
£
58,517
100,250
150
158,917		 2020
£
(26,010)
25,822
(251)
-
3,155
(390)
624
(5,333)
(2,383)
2020
£
108,162
100,250
150
208,562

Page 11

REIGATE BAPTIST CHURCH

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2021

1 Statutory Information

The charity is a trust registered with the Charity Commission in England & Wales. The charity's registered number and principal address can be found on the Charity Information page.

2 Accounting Policies

These financial statements are prepared on a going concern basis, under the historical cost convention.

These financial statements have been prepared in accordance with the "Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) ("the Charities SORP"), with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland ("FRS 102") and with the Charities Act 2011. The charity meets the definition of a public benefit entity as set out in FRS 102.

The Charities (Accounts and Reports) Regulations 2008 (the '2008 Regulations') requires charities to prepare their accounts in accordance with 'Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005' but this accounting standard has since been withdrawn and has been replaced by the Charities SORP mentioned in the preceding paragraph. The charity has prepared these financial statements in accordance with the new Charities SORP; this departure from the 2008 Regulations is believed to be necessary for these financial statements to give a 'true and fair view'.

The principles adopted in the preparation of the financial statements are set out below.

a) Going concern

The trustees have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the charity to continue as a going concern. The trustees have made this assessment for a period of at least one year from the date of approval of the financial statements. In particular the trustees have considered the charity's forecasts and projections and the possible implications should projected income and / or expenditure vary unexpectedly. The trustees have concluded that there is a reasonable expectation that the charity has adequate resources to continue to operate for the foreseeable future. The charity therefore continues to adopt the going concern basis in preparing its financial statements.

In making this assessment the trustees have considered the impact of Covid-19 and have concluded that its impact on net income will not be material.

b) Income

Income including investment income is recognised in the period in which the charity becomes entitled to receipt, the amount receivable can be measured with reasonable certainty, and receipt is probable. For the most part, income is generally recognised when it is received. Income is only deferred when the charity has to fulfil conditions before becoming entitled to it or where the donor has specified that the income is to be expended in a future period.

Income from donations and legacies includes:

Recoverable gift aid. This is recognised when the related donation is received. Gift aid that has not been recovered by the balance sheet date is included as a debtor.

The charity relies on volunteers to carry out many of its activities. However, in accordance with the SORP, the value of these services has not been included in these financial statements as they cannot be reliably measured.

When donated goods, services and facilities are distributed or consumed, an expense in respect of those items is included in the Statement of Financial Activities. At the year end any goods that have not been distributed or consumed are recognised as stock.

Income from charitable activities represents income receivable from goods, services and facilities supplied in furtherance of the charity's charitable objects. It includes income from church events.

Income from other trading activities represents income receivable from activities undertaken to generate funds for the charity. It is primarily income received from property rentals.

The charity has taken the view that it has only one charitable activity, namely the advancement of the Christian faith, and all income from donations, legacies and charitable activities is in respect of this one activity.

c) Expenditure

Page 12

REIGATE BAPTIST CHURCH

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2021

The charity makes grants to other institutions and individuals to further its charitable objectives. Grants payable are recognised as constructive obligations arise, which is generally when the charity expresses a commitment to the recipient that can be measured reliably and then only to the extent that any conditions associated with the grant are outside of the control of the charity.

The Charities SORP requires charities with income over £500,000 to allocate costs to the various activities undertaken by the charity. The nature of the work of the church is considered to be so integrated that the core charitable activity costs are considered to be for the one activity.

Governance costs, which are included in expenditure on charitable activities but are identified separately in the notes to the accounts, includes costs associated with the independent examination of the financial statements, compliance with constitutional and statutory requirements and any other expenditure incurred on the strategic management of the charity.

d) Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity. Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. There are no designated funds as at the year end. Restricted funds are donations which are to be used in accordance with specific restrictions imposed by donors; they include donations received from appeals for specific activities or projects.

e) Tangible fixed assets

Items purchased or donated for the charity's own use are capitalised when the cost of purchased items, or the fair value of donated items, is more than £500 and the item is expected to benefit the charity over more than one accounting period. Depreciation is charged on a straight line basis so as to write down the value of each asset to its estimated residual value (if any) over its expected useful economic life. To achieve this objective the following rates of depreciation are charged:

Freehold land Is not depreciated (because it is not consumed by use) Are not depreciated on the grounds that they have very long useful lives and the assets will Freehold buildings be maintained in such condition that there residual values are not materially different from the amounts shown in the balance sheet. Equipment Over 4 years

The carrying values of tangible fixed assets are reviewed for impairment in periods when events or changes in circumstances indicate that the carrying value may not be recoverable.

f) Pension scheme arrangements

The charity is a participating employer in the Baptist Union Pension Scheme which, prior to January 2012, was a multi-employer defined benefit pension scheme. The charity is unable to identify its share of this scheme's assets and liabilities therefore, as permitted by FRS 102, the entire scheme is being treated as if it were a defined contribution scheme. The last actuarial valuation indicated that the obligation to provide defined benefits gives rise to a funding deficit and the charity, along with other participating employers, must make additional contributions to remedy the deficit. The obligation to make deficit reduction contributions in future years has been included as a liability in these financial statements. Further information about this defined benefits scheme, and the charity's obligation to contribute towards its funding deficit, is disclosed elsewhere in the notes to these accounts.

g) Taxation

The charity has taken advantage of the various reliefs from taxation available to charities and no tax is payable on the charity's income.

h) Financial instruments The charity's financial assets and financial liabilities all qualify as basic financial instruments, as defined by FRS102. Except for loans, creditors and debtors are measured at their expected settlement value (normally the amount of cash that the charity expects to pay or receive). The charity recognises liabilities for the principal of those loans that remains outstanding at the year end (i.e. the liabilities exclude any interest chargeable on the loans in future years).

i) Critical accounting estimates and areas of judgement

Page 13

REIGATE BAPTIST CHURCH

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2021

3
Donations and legacies
Donations of cash and similar
Donations in kind
Income tax recoverable
Donations in kind comprise the following:
Goods donated for:
Distribution to beneficiaries
For use by the charity
4
Income from charitable activities
Church retreats and events
5
Income from other trading activities
Rental income
6
Other income
Job Retention Scheme grant
Insurance claim
Other miscellaneous income
7
Charitable expenditure
a
Costs incurred directly on specific activities
Ministry
Ministers' staff costs
Training and conferences
Ministers' housing costs
External speakers
Youth and children including staff costs
Church events & courses
Other ministry costs
Buildings
Staff costs
Utility costs
Cleaning
Repairs and maintenance
Costs of letting
Other buildings costs
Outreach
Evangelism and events
Literature and publicity
Foodbank - donations in kind expensed
Grants (see note 6c)		 2021
£
312,292
75,695
56,284
444,270
2021
£
72,410
3,285
75,695
2021
£
5,237
5,237
2021
£
35,854
35,854
2021
£
19,971
21,006
856
41,833
2021
£
167,954
2,851
28,486
2,548
16,783
952
7,924
65,398
11,819
2,480
27,334
3,422
2,060
7,128
2,075
72,800
46,885
468,898		 2020
£
268,037
32,390
48,411
348,838
2020
£
32,390
-
32,390
2020
£
3,621
3,621
2020
£
30,725
30,725
2020
£
17,505
16,723
275
16,998
2020
£
136,982
793
16,592
2,050
10,842
-
12,247
69,625
13,589
1,660
14,393
2,075
1,219
6,655
2,460
32,000
25,106
348,288

Page 14

REIGATE BAPTIST CHURCH

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2021

NOTES TO THE ACCOUNTS
REIGATE BAPTIST CHURCH
FOR THE YEAR ENDED 31 DECEMBER 2021
b
Costs incurred on support & administration
Governance costs
Independent examiner's fee
Staff costs
Transport
Catering
Office running expenses
Equipment, repairs and maintenance
Depreciation
Insurance
Mortgage interest
Miscellaneous
Total expenditure		 3,360
3,360
34,542
241
4,271
5,560
9,641
14,855
5,634
533
5,615
84,252
553,150		 4,680
4,680
32,816
193
2,037
6,349
11,005
25,822
5,722
670
3,211
92,505
440,793

Total expenditure

The fee payable to the independent examiner for preparing and examining the accounts was £3,600 (2020: £4,200); no other fees were payable to Stewardship for any other services provided.

c Grants payable

Grants for UK and overseas mission
Grants for the relief of poverty
The comparatives for the previous year are as follows:
Grants for UK and overseas mission
Grants for the relief of poverty
The charity's principal grants to institutions comprised:
Open Hands
Westvale Community Church
Foodbank
Sparkfish
Mission 24
Anchor
South East Baptist Association
Baptist Missionary Society
Evangelical Alliance
Dnipro Hope Mission
Renewed Hope Trust
Barnabas
Grants to institutions for less than £1,000 each		 Institutions
£
23,664
18,517
42,182
Institutions
£
9,844
8,762
18,606		 Individuals
£
3,660
1,043
4,703
Individuals
£
6,000
500
6,500
2021
£
11,401
10,000
6,346
4,500
3,664
2,000
1,000
1,000
1,000
50
-
-
1,221
42,182		 2021
£
27,324
19,560
46,885
2020
£
15,844
9,262
25,106
2020
£
-
-
1,784
4,500
-
2,000
1,000
-
-
1,000
5,000
1,000
2,322
18,606

Page 15

REIGATE BAPTIST CHURCH

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2021

8 Analysis of staff costs, the cost of key management personnel and trustee remuneration and expenses

Gross wages and salaries
Social security
Pension costs		 2021
£
239,691
13,607
14,965
268,263		 2020
£
213,938
11,335
13,638
238,910

The average monthly number of employees during the year was 16 (2020: 17). Most of the charity's activities are carried out by volunteers.

During the year the church's key management were the Senior Pastor and the Church Administrator. The total employment benefits (excluding housing allowance) for those members of staff were £60,064 (2020: £57,115).

In addition the charity incurred expenditure totalling £16,686 (2020: £16,592) in respect of the customary provision of accommodation to Mike Williams, who is a member of key management, so that they could better perform their duties. This total includes the payment of a housing allowance of £14,400 (2020: £14,400) administered though the payroll.

No trustees or connected parties received employment benefits in either the current or preceding year.

9 Tangible fixed assets

Tangible fixed assets
Cost
At 1 January 2021
Additions
Gains / (losses) on revaluation
Disposals
At 31 December 2021
Accumulated depreciation
At 1 January 2021
Charge for the year
Eliminated on disposal
At 31 December 2021
Net book value
At 31 December 2021
At 31 December 2020		 Church
Freehold
Property
£
1,796,445
1,796,445
-
-
-
-
1,796,445
1,796,445		 Manse
Freehold
Property
£
238,446
161,554
400,000
-
-
-
-
400,000
238,446		 Furniture
and
equipment
£
238,136
1,865
(17,235)
222,766
209,302
14,855
(17,235)
206,923
15,843
28,834		 Vehicles
£
11,725
11,725
-
11,725
-		 Total
2021
£
2,273,027
13,590
161,554
(17,235)
2,430,936
209,302
14,855
(17,235)
206,923
2,224,013
2,063,725

The Manse freehold property was valued at £400,000 on 29 March 2022 by an independent qualified valuer at open market value assuming vacant possession. If freehold property had not been revalued, its carrying value at historical cost would have been £238,446 (2020: £238,446). The Church freehold property is held at cost as valuation is not possible due to the restricted use of the site and lack of comparable properties in the area.

10 Stock

Donated goods for foodbank
11
Debtors
Tax recoverable
Other debtors
Rental income receivable
Prepayments & accrued income		 2021
£
-
-
2021
£
3,762
2,190
2,859
7,240
16,052		 2020
£
390
390
2020
£
4,234
-
3,112
2,789
10,135

Page 16

REIGATE BAPTIST CHURCH

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2021

12 Cash at Bank and in Hand

Cash at bank with immediate access
Notice deposits (with a term of three months or less)
Petty cash
itors: liabilities falling due within one year
Accruals
Loans
Mortgage liability		 2021
£
58,517
100,250
150
158,917
2021
£
7,238
4,000
956
12,194		 2020
£
108,162
100,250
150
208,562
2020
£
15,714
4,000
885
20,599

13 Creditors: liabilities falling due within one year

14 Creditors: amounts falling due after more than one year

itors: amounts falling due after more than one year
Loans
Mortgage liability		 2021
£
4,000
19,691
23,691		 2020
£
8,000
20,738
28,738

15 Mortgage and other loans

The liabilities for the mortgage and further loans referred to in notes 13 and 14 fall due for repayment as follows:

Repayable:
Within one year
Between one and five years
After five years
Repayable:
Within one year
Between one and five years		 2021
2020
£
£
956
885
4,108
4,012
15,582
16,726
20,647
21,623
2021
2020
£
£
4,000
4,000
4,000
8,000
8,000
12,000
Concessionary loans
Bank loans		 2021
2020
£
£
956
885
4,108
4,012
15,582
16,726
20,647
21,623
2021
2020
£
£
4,000
4,000
4,000
8,000
8,000
12,000
Concessionary loans
Bank loans
12,000

The mortgage referred to in the above notes is secured on 16 Sycamore Walk by way of a fixed and floating charge on the property. Interest is payable at a variable rate, which at the balance sheet date was 2.85%. The loan was being repaid in monthly instalments but was fully redeemed on 28th February 2022.

The concessionary loan referred to in the above notes is unsecured and interest free. It has been provided by the South East Baptist Association and is repayable in instalments of £2,000 twice each year.

16 Pension commitments

The Baptist Union Pension Scheme

Background to the disclosure

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

Page 17

REIGATE BAPTIST CHURCH

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2021

The DB Plan is considered to be a multi-employer scheme as described in Section 28 of FRS 102. This is because it is not possible to attribute the DB Plan’s assets and liabilities to specific employers and means that contributions are accounted for as if the DB Plan were a defined contribution scheme. The pensions costs charged to the SoFA in the year comprise contributions accruing in the year in respect of the DC Plan plus the impact of deficiency contributions to the DB Plan (see below). The charity is obliged to recognise a liability for its expected future deficiency contributions to the DB Plan.

Ministers and some members of the church staff are eligible to join the Scheme.

The Defined Contribution Plan

From January 2012, pension provision is being made through the Defined Contribution (DC) Plan within the Scheme. In general, members pay 8% of their Pensionable Income and employers pay 6% of members’ Pensionable Income into individual pension accounts, which are operated and managed on behalf of the Pension Trustee by Legal and General Life Assurance Society Limited. In addition, the employer pays a further 4% of Pensionable Income (or 3% if the employer is in the segregated DC section) to cover Death in Service Benefits, administration costs, and an associated insurance policy which provides income protection for Scheme members in the event that they are unable to work due to long-term incapacity. This income protection policy has been insured by the Baptist Union of Great Britain with Aviva. Members of the Basic Section pay reduced contributions of 5% of Pensionable Income, and their employers also pay a total of 5%.

The Defined Benefit Plan

Benefits in respect of service prior to 1 January 2012 are provided through the Defined Benefit (DB) Plan within the Scheme. The main benefits for pre-2012 service were a defined benefit pension of one eightieth of Final Minimum Pensionable Income for each year of Pensionable Service, together with additional pension in respect of premiums paid on Pensionable Income in excess of Minimum Pensionable Income. The Scheme, previously known as the Baptist Ministers’ Pension Fund, started in 1925, but was closed to future accrual of defined benefits on 31 December 2011.

Actuarial valuation as at 31 December 2019

A formal valuation of the Defined Benefit (DB) Plan was performed at 31 December 2019 by a professionally qualified Actuary using the Projected Unit Method. The market value of the DB Plan assets at the valuation date was £298 million. The valuation of the DB Plan revealed a deficit of assets compared with the value of liabilities of £18 million (equivalent to a past service funding level of 94%). The next actuarial valuation of the DB Plan is due as at 31 December 2022.

Recovery plan

A recovery plan dated 30 September 2020 has been agreed to make good the above deficit in assets. Therefore, in addition to the contributions to the DC Plan set out above, the Trustee and the Council agree to a rate of deficiency contributions from churches and other employers involved in the DB Plan.

It has been agreed that the standard rate of deficiency contributions from churches and other employers involved in the DB Plan will remain at previously agreed levels, increasing each year in line with increases in the Minimum Pensionable Income. The deficiency contributions are broadly based on 12% of Pensionable Income / Minimum Pensionable Income, reflecting each employer's contributions in March 2015. Some employers that were involved in the DB Plan for a short period pay lower contributions. The Trustee and the Council agreed a 50% reduction in all deficiency contributions payable between 1 July 2020 and 31 December 2020. The Recovery Plan envisages deficiency contributions continuing until June 2026.

In addition, the Baptist Union of Great Britain contributed a lump sum of £0.5m in 2020.

Key assumptions

The key assumptions underlying the actuarial valuation of the DB Plan were as follows:

assumptions
key assumptions underlying the actuarial valuation of the DB Plan were as follows:
Type of financial assumption % pa
RPI price inflation assumption 3.20
CPI price inflation assumption 2.70
Minimum Pensionable Income increases (CPI plus 0.75% pa) 3.20
Assumed investment returns
- Pre-retirement 2.95
- Post retirement 1.70
Deferred pension increases
- Pre April 2009 3.20
- Post April 2009 2.50
Pension increases 2.70

Page 18

REIGATE BAPTIST CHURCH

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2021

NOTES TO THE ACCOUNTS
REIGATE BAPTIST CHURCH
FOR THE YEAR ENDED 31 DECEMBER 2021
In respect of the DB Plan:
Due within 1 year
Due after 1 year
Minus deficiency contributions paid
Interest cost (recognised in SoFA)
Remaining change to balance sheet liability* (recognised in SoFA)
Balance sheet liability at the end of the year
Movement in Balance Sheet liability
Balance sheet liability at start of the year		 2021
£
94,200
(6,045)
-
(26,055)
62,100
6,045
56,055
62,100		 2020
£
95,500
(4,455)
-
3,155
94,200
4,455
89,745
94,200

17 Funds

During the year the movements in the charity's funds were as follows:

General Unrestricted Funds
Total Unrestricted Funds
Restricted Funds
Sierra Leone Children's work
Coffee Cart
Foodbank
Hardship Fund
Gifts for individuals
Total Restricted Funds
Aggregate of funds		 Opening
balance
2021
£
2,122,012
2,122,012
370
3,750
13,143
-
-
17,263
2,139,275		 Incoming
resources
2021
£
514,011
514,011
-
3,841
4,603
4,219
590
13,253
527,264		 Outgoing
resources
2021
£
(532,680)
(532,680)
(370)
(721)
(17,746)
(1,043)
(590)
(20,470)
(553,150)		 Transfers
in the year
2021
£
6,640
6,640
-
(6,640)
-
-
-
(6,640)
-		 Other
recognised
gains/losses
2021
£
187,609
187,609
-
-
-
-
-
-
187,609		 Closing
balance
2021
£
2,297,592
2,297,592
-
230
-
3,176
-
3,406
2,300,998

Analysis of net assets by fund

The assets and liabilities of the various funds were as follows:

ysis of net assets by fund
assets and liabilities of the various funds were as follows:
Tangible fixed assets
Stock
Debtors
Cash at bank and in hand
Creditors falling due within one year
Creditors falling due after one year
Defined benefit pension schemes liabilities		 General
funds
£
2,224,013
-
16,052
155,511
(12,194)
(23,691)
(62,100)
2,297,592
Unrestricted		 Restricted
funds
£
-
-
-
3,406
-
-
-
3,406		 2021
£
2,224,013
-
16,052
158,917
(12,194)
(23,691)
(62,100)
2,300,998

Page 19

REIGATE BAPTIST CHURCH

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2021

In the previous year the movements in the charity's funds were as follows:

General Unrestricted Funds
Total Unrestricted Funds
Restricted Funds
Building project
Sierra Leone Children's work
Coffee Cart
Foodbank
Aggregate of funds		 Opening
balance
2020
£
2,163,885
2,163,885
1,030
370
-
-
1,400
2,165,285		 Incoming
resources
2020
£
401,011
401,011
-
-
2,000
14,927
16,927
417,938		 Outgoing
resources
2020
£
(439,009)
(439,009)
-
-
-
(1,784)
(1,784)
(440,793)		 Transfers
in the year
2020
£
(720)
(720)
(1,030)
-
1,750
-
720
-		 Actuarial
Adjustment
2020
(3,155)
(3,155)
-
-
-
-
-
(3,155)		 Closing
balance
2020
£
2,122,012
2,122,012
-
370
3,750
13,143
17,263
2,139,275

Analysis of net assets by fund

In the previous year, the assets and liabilities of the various funds were as follows:

lysis of net assets by fund
e previous year, the assets and liabilities of the various funds were as follows:
Tangible fixed assets
Debtors
Cash at bank and in hand
Creditors falling due within one year
Creditors falling due after one year
Defined benefit pension schemes liabilities		 General
funds
£
2,063,725
10,135
191,299
(20,599)
(28,738)
(94,200)
2,122,012
Unrestricted		 Restricted
funds
£
-
-
17,263
-
-
-
17,263		 2020
£
2,063,725
10,135
208,562
(20,599)
(28,738)
(94,200)
2,139,275

The Building project is a fund established for use in conjunction with a future anticipated extension to the church building. During 2020 money was transferred in to cover expenditure on a building survey in 2019 which should have been funded by unrestricted funds, and the outstanding balance was transferred to the Coffee Cart Fund with the permission of the donor.

The Sierra Leone children's work fund has been established to support children's work in Sierra Leone. Grants are made in support of this work in most years.

The Coffee Cart fund represents donations to purchase a coffee cart. The funds transfer to general funds in 2021 is the result of the purchase of the cart which is held as an unrestricted fixed asset.

The Foodbank fund is for the support of the Foodbank. This was transferred to a separate charity, Open Hands, during the year.

The Hardship Fund is to support those in need.

Gifts to Individuals represents funds raised for specific people.

Page 20

REIGATE BAPTIST CHURCH

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2021

18 Transactions with related parties

On 25th November 2020, the Foodbank run by the Renewed Hope Trust was transferred to Reigate Baptist Church at no cost. In March 2021 this was transferred at no cost to a new charity, Open Hands. Michelle Hirchfield, the wife of Glenn Hirchfield a Trustee, was herself a Trustee of Renewed Hope Trust and Open Hands at this time. She has since resigned from both charities.

Except as disclosed above and in note 7 'Analysis of staff costs', there have been no other transactions with related parties during the year.

Page 21

REIGATE BAPTIST CHURCH

DETAILED STATEMENT OF FINANCIAL ACTIVITIES WITH COMPARATIVES

FOR THE YEAR ENDED 31 DECEMBER 2021

Note
INCOME AND ENDOWMENTS FROM:
Donations and legacies
3
Charitable activities
4
Other trading activities
5
Investments
Other income
Total income and endowments
EXPENDITURE ON:
Charitable activities:
7
Total Expenditure
Net income/(expenditure)
Transfers between funds
17
Other recognised gains/(losses):
Gains/(losses) on revaluation of fixed assets
16
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward
17
Actuarial gains/(losses) on defined benefit
pension schemes		 Unrestricted
2021
£
431,017
5,237
35,854
70
41,833
514,011
532,680
532,680
(18,669)
6,640
(12,029)
161,554
26,055
175,580
2,122,012
2,297,592		 Restricted
2021
£
13,253
13,253
20,470
20,470
(7,217)
(6,640)
(13,857)
(13,857)
17,263
3,406		 Total
2021
£
444,270
5,237
35,854
70
41,833
527,264
553,150
553,150
(25,886)
-
(25,886)
161,554
26,055
161,723
2,139,275
2,300,998		 Unrestricted
2020
£
331,911
3,621
30,725
251
34,503
401,011
439,009
439,009
(37,998)
(720)
(38,718)
(3,155)
(41,873)
2,163,885
2,122,012		 Restricted
2020
£
16,927
16,927
1,784
1,784
15,143
720
15,863
15,863
1,400
17,263		 Total
2020
£
348,838
3,621
30,725
251
34,503
417,938
440,793
440,793
(22,855)
-
(22,855)
-
(3,155)
(26,010)
2,165,285
2,139,275

Page 22