## **HORFIELD BAPTIST CHURCH**
## **ANNUAL REPORT AND FINANCIAL STATEMENTS**
## **Year to 31[st] DECEMBER 2022**
**Charity Number 1126706**
|**CONTENTS**|**PAGES**|
|---|---|
|Reference and Administrative details|**1**|
|Structure, Governance and Management|**2**|
|Objectives and Activities|**3 - 5**|
|Achievements and Performance|**6 - 9**|
|Financial Review|**9**|
|Plans for Future Periods|**11**|
|Independent examiner's report to the trustees|**13**|
|Statement of financial activities|**14**|
|Balance sheet|**15**|
|Notes to the financial statements|**16 - 23**|
## **HORFIELD BAPTIST CHURCH**
## **MINISTER, TRUSTEES AND PROFESSIONAL ADVISERS**
## **REFERENCE AND ADMINISTRATIVE DETAILS**
**Registered charity name** Horfield Baptist Church **Charity number** 1126706 **Registered address** 279 Gloucester Road Bristol BS7 8NY **Trustees** Rev Sarah Phillpot (Pastor) Mrs Christine Brown Mr Matthew Champion (to October 2022) Mrs Esther Newman **Property Trustees** The Baptist Union Corporation Limited Baptist House 129 Broadway Didcot Oxfordshire OX11 8RT **Independent Examiner** Anthony J Faccini Accountants Hatter House Abbotsford Close Woking Surrey GU22 7BJ **Bankers** Co-operative Bank PLC P.O. Box 250 Delf House Southway, Skelmersdale WN8 6WT
## **HORFIELD BAPTIST CHURCH**
## **TRUSTEES ANNUAL REPORT YEAR ENDED 31 DECEMBER 2022**
The trustees present their report and the unaudited financial statements of the charity for the year ended 31 December 2022.
## **STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document**
The original governing document, a deed of trust, was drawn up in 1892 by founder members, the original having been lodged with the Baptist Union Corporation.
A new constitution was drawn up dated 14 October 2008 in line with Baptist Union guidelines and has been lodged with the Charity Commission. A slight amendment to this constitution was drawn up and approved in March 2020 and the Charity Commission notified. Members of the Church are accepted in accordance with the Constitution which normally requires them to have been publicly baptised on the profession of faith in Jesus Christ or following other modes of baptism to renew their public profession of faith in Jesus Christ.
The members meeting normally takes place ten times per year and has responsibility for the overall policy of the Church. In accordance with the constitution, deacons were elected from among the membership of the Church and, for their time of service were considered trustees. Under the amended constitution, Elders are now elected from among the membership of the Church (in place of Deacons) and, for their time of service are considered trustees. Deacons or Elders are responsible under God, with the Pastor, for the pastoral leadership of the Church. All members are encouraged and expected to take an appropriate part in the spiritual and practical tasks involved in the furtherance of the charitable objective.
The charity is controlled by its governing document and constitutes an unincorporated charity
## **Charity status**
Horfield Baptist Church, Gloucester Road, Bristol, BS7 8NY is a registered charity under the Charities Act 1993. The Church registered as a charity on 13 November 2008.
The Church owns one house, 29 Ramsey Road, Horfield, Bristol BS7 0JF, which is occupied as a manse by the pastor, the deeds being held by the West of England Baptist Association Incorporated.
## **OBJECTIVES AND ACTIVITIES**
## **PURPOSE OF THE CHARITY**
The principal purpose of the charity is the advancement of the Christian faith according to the principles of the Baptist denomination to include the advancement of education, community service and such other general charitable purposes in such parts of the United Kingdom and the world as the Church shall determine.
In order to achieve the principal objective, which is set out above, the Church provides a variety of activities both to its membership and to the community generally. The aim is to show the love of Jesus Christ in both word and deed and to bring people into a closer relationship with Him as living Lord.
## **Worship Services**
Central to the work and witness of Horfield Baptist Church is the provision of weekly public services of worship on a Sunday morning at 10.30 am throughout the year which are open to all. There are also occasional services at other times which are advertised in the Church notices and on the Church website at www.horfieldbaptist.net . Age-appropriate activities and teaching for children and young people aged 0-11 are provided during Sunday morning services. We seek to be a friendly and welcoming organisation, and all are welcome to attend any of our services. We will not discriminate against anyone by virtue of age, race, gender, disability or lifestyle choice
## **Home Groups**
The Church runs a small number of home and study groups for the growth of faith and discipleship in the homes of some members and on Church premises. One of these continued through lockdown over Zoom, transforming into a weekly (from bi-weekly) meeting for Jesus Shaped People when other groups were added online and in-person.. For information, please contact the Church office office@horfieldbaptist.net
## **Uniformed Organisations**
Rainbows, Guides, Beavers, Cubs and Scouts all meet on the premises, occasionally attending parade services.
## **Messy Church**
The Church runs Messy Church on the premises six times a year when families and children are welcomed and invited to participate in a relaxed and creative way, and ‘church’ takes place which involves all age groups.
## **Ladies’ Breakfast**
Horfield Baptist Church runs a Ladies’ breakfast 5 times a year. This is an opportunity for women from both inside and beyond the Church fellowship to meet together over a relaxed breakfast and to hear a short and encouraging talk with a Christian message. This activity has been started again with enthusiasm after lockdown.
## **Men’s Breakfast**
The Church also occasionally runs a breakfast meeting for men which provides an opportunity for men from the Church fellowship and those on the fringes to meet and chat over a cooked breakfast.
## **Missions**
Horfield Baptist Church regularly supports mission activities at home and abroad. We are in membership with the Baptist Union of Great Britain (BU) through our local association, the West of England Baptist Network (WEBNET) and devote an agreed sum each year to both Home Mission and the Baptist Missionary Society (BMS) amounting to approximately 10% of income. More is collected through special collections.
In addition, Horfield Baptist Church makes regular financial collections and prays for mission organisations both locally and nationally. Our existing mission partner is the Leprosy Mission. We also supported in various ways The Matthew Tree project, Operation Agri and the West of England Baptist Network Christmas appeal, WEBOX.
## **Community Outreach**
The Church organises regular outreach events to which members of the community are invited with the aim of strengthening community links and sharing the Good News of Jesus.
## **Newsletter**
This year the Church has produced a weekly newsletter which is distributed via email and by hand to all within our fellowship. This vital ministry has helped to keep members and attenders in touch and informed. It includes a weekly reflection, news about the fellowship, information on who to contact for a variety of ministries, national support and encouragement and information on and encouragement to get involved with local, national and international mission.
## **Pastoral care and Pastoral Watchers**
Our network of Pastoral Watchers has ensured that everyone receives a regular phone call with a resulting conversation, which may lead to some shopping or other errand being accomplished as a result. Our Prayer Pyramid and Prayer List have been utilised for those who are anxious as well as those who are sick, with the result that the fellowship, has continued to feel supported, loved and cared for.
In addition, the Church seeks to provide:
- Ministerial leading and teaching to enable the Church to fulfil its objects and activities. The pastor represents the Church to wider local and national secular institutions as required;
- Spiritual and moral education for children and young people from birth to adulthood through our pastor, volunteer children’s and youth workers and Church members;
- The regular support of a number of other charitable organisations, including a local food bank (The Matthew Tree Project);
- A safe environment on Church premises for both young people and vulnerable adults by the implementation of agreed protection policies, regularly reviewed and renewed, including complying with guidelines from the BU.
- The support of members and attenders at times of ill health or personal difficulties through pastoral care, visiting at home and hospital, and through prayer and listening.
The Church premises are in use every day of the week, offering a range of facilities and opportunities open to all members of the public for the benefit of people of different ages and backgrounds, both from within the Church membership and the wider community.
The Church’s income is primarily used in paying and accommodating a minister; in maintaining the structure of its extensive premises (which have Grade II listed status); in cleaning and heating the premises to make them suitable for constant Church and community use; and in contributing to the wider Baptist community both at home and abroad through the Baptist Home Mission Fund and BMS World Mission. The Church also employs a part-time administrator, but most of the work of the Church is supported by members on a voluntary basis.
## **Trading Activities**
The current Church premises being large, are used by outside organisations in addition to our own, ranging from Baby Clinic, a toddler singing group, ‘Keep Fit’ classes and various groups associated with our outreach to young families. The buildings are popular amongst our young families as a venue for birthday parties, and family celebrations.
The income is generated mostly by the letting of rooms and the voluntary giving of Church members.
The Church operates systems to ensure that all people working with children and vulnerable adults are appropriately vetted according to the Disclosure and Barring Service. These services moved online during 2020.
The Church has read the Charities Commission guidance on public benefit and is satisfied that the activities outlined above clearly demonstrate that the charity is providing a benefit to the public.
## **ACHIEVEMENTS AND PERFORMANCE**
## **Achievements and Performances for 2022**
The Church does not measure the success of its programmes only in numbers, including financial numbers, but also in less tangible areas like fellowship, encouragement, engagement with the community and deepening faith. The Trustees recognise that these are difficult to measure. Following a year of challenge and change for Horfield Baptist Church. members and attenders have continued being actively involved in caring for one another and intentional about keeping in touch.
## **Worship**
We continue to meet on the premises for worship on a Sunday morning and have been heartened when our numbers have been swelled by those who have come upon our services by chance or by design and chosen to continue to worship with us. This year we have continued to meet in the Tyndale room as it's warmer, more cosy and much cheaper to heat. It's also encouraged our sense of community and the feeling that we are family to one another. After services we retire to the cafe and many of us stay and chat together. This year has been a year of drawing closer in relationship to one another which has been such a blessing after two years of pandemic.
We are still saddened that we have no musicians but manage to sing joyfully in worship using recorded backing tracks. This year has seen the introduction of some new songs which has enhanced our sung worship.
During the year we have often circled back in our preaching series, to the story of the Exodus, as it has given us much encouragement in our own story of being called from the place we have settled. During the summer we spent a Spirit filled six weeks looking at how God views us – that we are forgiven, accepted, loved etc, which seemed to give us the nourishment we so desperately needed at a time when our future appeared uncertain.
Sarah’s absence has provided opportunities for others to lead the service, taking the opportunity to lead cafe style services with informal worship and shared testimony and also prayer services with prayer stations.
## **Childrens and Families**
Sunday morning children’s work has been intermittent with only a small number of children attending, mostly bi-weekly, but later in the year the Jesus shaped people programme provided a structure for when children were present.
Messy Church continued in the spring of the year and a well-attended picnic was held on the common in August but it has struggled in the autumn to find momentum. Many of the families who started with Messy Church have now outgrown its programme and although they wish to still be part of Messy Church we've struggled to find the appropriate activities to encourage them to come along.
## **Pastoral Care**
Since we have once again been able to meet in person on the premises the nature of our pastoral care for one another has altered again. It was decided that the newsletter, which was initially conceived to bring us together whilst we were unable to meet in person, should continue. It has been a useful resource published weekly with news, views, reflections, helpful links and a look at the next week’s Sunday service.
The pastoral watchers network has continued to be invaluably helpful in keeping in touch with the growing number of members who are less able to come to church, those who remain at home or who are in care homes. Members phone each other on a regular basis and then ensure that prayers and needs for help are shared.
On Easter Sunday we had the great joy of holding a baptismal service despite the cold weather, and welcomed another new member into the fellowship. we also re-welcomed a member in the autumn and we mourn the death of a member who died in the winter.
## **Social Events**
In May we held an outreach event as part of the Bristol Noise. On a Sunday afternoon we opened our cafe and the room behind and welcomed in anyone who wanted to join us giving out free tea and coffee and cakes. Games and activities were laid out in the Tyndale room and we spent a joyful 2 hours and more chatting with folks who joined us, some encouraged from the street by members who stood at the bottom of our steps with trays of inviting cakes.
On 8[th] December, Gloucester Road shops near HBC held a Christmas late night shopping evening. A group from HBC, suitably wrapped up in warm clothing, gave out mince pies to passers by and shared Christmas blessings with them.
Although not a ‘church’ event, we were able to welcome in North Bristol Arts Trail once again in November. We opened the café for drinks, sandwiches, soup and cakes and were able to raise
over £900 including room hire over the weekend. Also importantly the organisers expressed a wish to move to the new premises, so hopefully the link will continue.
## **Bible Study**
This year Bible study has continued over Zoom in the morning and the evening on a Thursday. This included an overview of the entire Bible, putting its books in chronological order and following this we started looking at Mark's gospel in the autumn. In October, the morning session became a small group for Jesus Shaped People. Having the facility of Zoom has been invaluable to enable us to talk together when we can't be physically in the same space and spending an hour or so in each other’s presence has helped us to deepen and broaden our understanding of God’s word.
## **Matthew Champion**
Matt has been a church member for around four years. He has been clear during all of this time that he feels that he will eventually ‘work for the church’. During this year, Matt tested his sense of calling through Horfield Baptist Church, Bristol Baptist College and by means of a Residential Selection weekend. This process was a prayerful opportunity for Horfield Baptist Church to come together to discern whether Matt’s sense of calling has also been heard by the church members. I’m pleased to say that Matt’s calling was affirmed unanimously by church meeting. He later was accepted into Bristol Bible College and had his calling affirmed at a residential weekend.
Church was elated for him and we hold him in prayer. However the selection committee suggested that Matt look elsewhere for a church family, to broaden his experience of church. Sadly, Matt stepped down from his role as Elder and he and Abi started to look for another church in the autumn. By Christmas it was looking as if they would settle at Downend Baptist Church. We miss them both but pray regularly that God will reveal his plan for their lives.
## **Jesus Shaped People**
In the autumn we began Jesus Shaped People, a programme which includes preaching, teaching and small group material to help churches to focus on the five priorities of Jesus when he walked on the earth – People, Teaching, Team Building, Prayer and Prophetic Challenge. It has enabled times of reflection on our current practise, including our blind-spots, and will help us to reflect on God’s plan for us in the future. It's also designed to reveal where we might do better at being church. We're looking forward to completing the course, which was paused for Advent and Christmas, the other side of the festive season.
## **Special Services**
The baptism service at Easter was our only special service of 2022. Throughout the year the church was on tenterhooks to exchange contracts on a buildings swap with potential deadlines at Easter, September and Christmas. It was therefore decided not to hold a Carols by Candlelight service this year. We’re looking forward to re-establishing our tradition of special and celebrations services in 2023.
## **The Future of Horfield Baptist Church**
During the course of this year the possibility has arisen of a building swap with a local Anglican church. This has been explored with much help from Alistair Watson from Reveal Projects and Mike Southcombe from the Baptist Union Corporation (BUC).
B&A the church in question is looking for larger premises. It currently meets in small groups or little churches but wants to find premises large enough to put all of its groups together. Horfield Baptist Church is finding looking after our wonderful but very extensive premises quite overwhelming and has been looking for a way of downsizing. Previously we looked at sharing our premises but had found no organisation which was financially or structurally ready to share the premises with us. The possibility of a building swap seems to be an answer to prayer for both congregations.
During the course of the year we've held many meetings between the two churches, with buildings trustees, and with solicitors. Despite the enthusiasm of both parties it did look in the summer as if this was not going to be a possibility, however after much prayer and some flexibility by both parties the swap is now going ahead. There have been several points during the year at which we had hoped that the swap would be accomplished but the process has proved to be more involved and difficult than we imagined. However God has been faithful and not only shown us ways to progress and proceed but has, by and large, drawn church members and attenders closer into unity. We have believed from the beginning that this is what God has for us and we have persevered on that basis. At the end of the year it's looking increasingly as if the swap will take place in the next three to four months.
Horfield Baptist Church would like to give glory to God for this historic process and his leading and guiding of us. At the beginning of the process we identified two conditions. The first was that the building at 279 Gloucester Road should continue to be used for the glory of God and the furthering of his Kingdom. The second was that whatever was started should come to conclusion - Horfield has a long tradition of drawing up plans but very few if any have been seen all the way through to their conclusion.
If this building swap goes ahead, Horfield Baptist Church will have new and appropriate premises just 200 metres down on the other side of the road, premises that are in good condition and are still in our own community on the Gloucester Road. B&A will have premises which are appropriate for their needs and enable them to meet together all in one place. Our building at 279 Gloucester Road will continue to be used for the glory of God and for the furthering of his Kingdom. We wait in anticipation for God to bring this to a conclusion.
## **FINANCIAL REVIEW**
The Church continues to raise funds which it needs to carry on its activities from voluntary contributions from within the membership, congregation and by rents received from hiring out its substantial premises.
2022 has seen the Church’s income severely limited by the restrictions caused by Covid-19. Although there were no major repair works, the Church buildings continue to cause concern. Blocked gutters caused water ingress and ongoing issues with ageing boilers has meant that damp is causing problems. The heating having been switched to a ‘frost setting’ because of the non-use of the building has exacerbated these problems.
Keeping general repair costs down by a few volunteers from the fellowship becomes more difficult, as like the ageing building the volunteers are not getting younger. We continue to monitor our bills closely aiming to obtain the best deals possible from the market, thus ensuring we are using our monies in the most efficient way to God’s glory.
The Church continues to express its part in the life of the wider church by giving grants to national and international Christian organisations and societies with Christian aims and objectives compatible with the Church’s own charitable purpose.
## **Voluntary Income**
The main source of income is the offerings from members and friends, made either weekly or monthly and in a variety of ways, i.e., using the envelope scheme, standing orders via the bank, or in cash. The offerings received are augmented by recovered income tax, derived from those people who have registered for Gift Aid with the added ability to claim from the “Gift Aid Small Donations Scheme” which added £8,328 in 2022.
The financial results for the year, together with a summary of the accounting policies adopted are set out in the accompanying financial statements.
## **Reserves**
The Church operates a reserves policy to enable the Church to function effectively and meet its obligations in the event of a decline in our income or a major cost. The aim is to maintain free reserves in unrestricted funds at a level which equates to approximately three months of unrestricted charitable expenditure. The trustees consider that this level will ensure that there are enough funds available to cover day to day costs.
Having considered the relevant risks of changes in income and expenditure, the Trustees have determined that the appropriate level of reserves is approximately £12,000 and this amount has been placed in our Savings Account and has given us a little extra interest revenue. As at 31[st] December 2022 the Church held total reserves of £91,195 of which £4,380 were restricted and £6,795 designated. Any reserved monies not immediately needed have been placed into savings accounts. These have been divided between Cambridge and Counties 95-day notice account Baptist Union Deposit Account, to gain some interest until we are ready to use these designated funds either on building repairs; to upgrade our Manse or for outreach. To comply with advice from the Charity Commission we have split our monies to ensure each account is within the guaranteed safety threshold.
## **Collections for other Charities**
|During|2022|the following amount was collected to give to other charities||
|---|---|---|---|
|||Bristol City Church’s Street Life|£195|
|||Matthew Tree|£113|
|||Leprosy Mission|£200|
|||Ukraine|£337|
|||Christian Aid|£113|
|||Children’s Society (collected 2021) £217||
TOTAL £957
|Plus||
|---|---|
|BMS Birthday Scheme|
£455|
|Home Mission|
£1,500|
|BMS|
£1.500|
## **Pension Liability**
A significant improvement in the pension provision was recorded during 2022, such that no further payments are required other than an administration payment of £1 per month. The current minister is not a member of the scheme. The details of the management of the liability arising from the scheme are recorded in the Annual Accounts
## **Funds held as custodian trustee on behalf of others**
Specific gifts for other organisations are recorded as restricted funds and are appropriately controlled and passed on.
## **RESPONSIBILITIES OF THE TRUSTEES**
The charity's 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).
The law applicable to charities in England and Wales 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 the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP (Statement of Recommended Practice);
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the 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 1993 and the Charity (Accounts and Reports) Regulations 2008. The trustees 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.
## **INDEPENDENT EXAMINER**
Tony Faccini of Anthony J Faccini was thanked for his assistance in the preparation & examination of these accounts.
## HORFIELD BAPTIST CHURCH STATEMENT OF FINANCIAL ACTIVITIES YEAR ENDED 31 DECEMBER 2022
|**Notes Unrestricted**
**Designated**
**Restricted**
**Endowment**
**Year to**
**Dec. 2022**
**Year to**
**Dec. 2021**
**Incoming resources**
**£**
**£**
**£**
**£**
**£**
Voluntary income
2
45,308
8,470
-
53,778
38,465
Investment income
3
1,317
-
-
1,317
634
-
-
Incoming resources from
charitable activities
4
28,375
-
76
-
28,451
10,457
-
Other incoming resources
-
-|**Notes Unrestricted**
**Designated**
**Restricted**
**Endowment**
**Year to**
**Dec. 2022**
**Year to**
**Dec. 2021**
**Incoming resources**
**£**
**£**
**£**
**£**
**£**
Voluntary income
2
45,308
8,470
-
53,778
38,465
Investment income
3
1,317
-
-
1,317
634
-
-
Incoming resources from
charitable activities
4
28,375
-
76
-
28,451
10,457
-
Other incoming resources
-
-|
|---|---|
|Total incoming resources|75,000
-
8,546
-
83,546
49,556|
|**Resources expended**
Charitable activities
5
Governance costs
1(g)
Pension Liability Interest|22,525
22,525
78,609
157
891
-
79,657
82,000
605
-
-
-
605
475
329
329
270|
|Total resources expended
6|102,068
157
891
-
103,116
82,745|
|**Net operating income/(expenditure)**
**before transfers**
Gross transfers between funds15-17
**Net income/(expenditure) for the**
**year & endowment movements**
Adjustment to previous year
Other recognised gains/(losses)
on defined benefit pension schemes
(actuarial)
18
Surplus on Revaluation of Manse|
(27,068)
(157)
7,655
(19,570)
(33,189)
8,153
-
(8,153)
-
-
-
15,437
15,437
(801)|
|**Net movement in Funds**
**Total Funds brought forward**|(3,478)
(157)
(498)
-
(4,133)
(33,990)
-
-
83,191
6,952
5,704
5,849,141
5,944,988
5,978,978
-|
|**Total Funds carried forward**|79,713
6,795
5,206
5,849,141
5,940,855
5,944,988|
## **Explanatory Notes: Funds**
**Unrestricted** are those funds that the church is not legally bound to use for any particular purpose. **Designated** is a type of unrestricted fund which has been set aside by the Trustees for a special purpose. **Restricted** are restricted in their use by the terms of an appeal, or by the donor. **Endowment** is the permanent capital of the church. Their use is determined by the terms of the Trust Deed.
Page 15
## HORFIELD BAPTIST CHURCH BALANCE SHEET YEAR ENDED 31 DECEMBER 2022
**----- Start of picture text -----**
Notes 2022 2022 2021 2021
£ £ £ £
Tangible Fixed Assets 10 5,851,900 5,851,296
Current Assets
Debtors 11 2,736 1,060
Bank & cash 12 91,963 111,274
94,699 112,334
Current Liabilities
Creditors : amounts falling due within one year 13 5,205 1,342
Net Current Assets 89,494 110,992
Deferred Liabilities (Pension Liability)
Creditors : amounts falling due after one year 18 0 -17,300
Net Assets 5,941,394 5,944,988
Charitable Funds
Endowment 14 5,849,141 5,849,141
Restricted 15 4,380 5,704
Designated 16 6,795 6,952
Unrestricted 17 80,539 83,191
5,940,855 5,944,988
**----- End of picture text -----**
The notes on pages 13 to 19 form an integral part of these accounts
These accounts were approved by the Trustees on 16th April 2023 and signed on their behalf by:
Sarah Phillpot ________________________________________________ Minister
Page 16
HORFIELD BAPTIST CHURCH NOTES TO THE ACCOUNTS YEAR ENDED 31 DECEMBER 2022
## **1 ACCOUNTING POLICIES**
## **a Basis of preparation**
The accounts are prepared under Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard (FRS)102.
## **b Recognition of income**
These are included in the Statement of Financial Activities (SoFA) when:
- the charity becomes entitled to the resources;
- it is more likely than not that the trustees will receive the resources; and
- the monetary value can be measured with sufficient reliability.
## **c Grants and Donations**
Grants and donations are only included in the SoFA when the general income recognition criteria are met.
## **d Tax reclaims on donations and gifts**
Gift Aid receivable is included in income when there is a valid declaration from the donor. Any Gift Aid amount recovered on a donation is considered to be part of that gift and is treated as an addition to the same fund as the initial donation unless the donor or the terms of the appeal have specified otherwise.
## **e Legacies**
Legacies are included in the SoFA when receipt is probable, that is, when there has been grant of probate, the executors have established that there are sufficient assets in the estate and any conditions attached to the legacy are either within the control of the charity or have been met.
## **f Grants payable**
The church makes grants to other organisations whose charitable objects further or complement its work.
They are accounted for when the decision to pay them has been made by the church.
## **g Governance and Support costs**
Support costs have been allocated between governance costs and other support. Governance costs comprise all costs involving public accountability of the charity and its compliance with regulation and good practice.
Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, eg allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage.
Most of the management is carried out without charge by volunteers. This intangible cost is not included in the Statement of Financial Activities since there is no measurable cost for the service of the volunteers.
## **h Creditors**
The charity has creditors which are measured at settlement amounts less any trade discounts.
Page 17
HORFIELD BAPTIST CHURCH NOTES TO THE ACCOUNTS- contd YEAR ENDED 31 DECEMBER 2022
## **1 ACCOUNTING POLICIES Ctd…/**
## **i Tangible Fixed Assets for Use by the Charity & Depreciation**
These are capitalised if they can be used for more than one year. They are valued at cost.
The depreciation rates and methods used are in line with BU Guidelines. Depreciation has not been charged on the Church or Manse premises, because in the opinion of the Trustees, the residual value of the asset is not less than the original cost price.
Depreciation on other fixed assets is calculated to write off the cost less residual value of each asset even over its expected useful life, at the following rates:- Fixture, fittings and equipment 20% on the reducing balance basis. This is a policy in line with BU Guidelines and current practice. Please see note 10.
## **j Debtors**
Debtors (including trade debtors and loans receivable) are measured on initial recognition at settlement amount after any trade discounts or amount advanced by the charity. Subsequently, they are measured at the cash or other consideration expected to be received.
|**£**
**£**
**£**
**£**
**£**
**£**
36,085
-
36,085
27,849
9,189
237
9,426
6,355
34
7,161
7,195
3,724
116
116
-
-
-
-
956
956
537
Offerings
Gift Aid & VAT refunds
Donations etc
Grants
**2. Voluntary Income**
**Unrestricted Designated**
**Restricted**
**Endowment**
**Year to**
**Dec 2022**
**Year to**
**Dec 2021**
Legacies
Raised for other causes|
|---|
|45,308
-
8,470
-
53,778
38,465|
|**£**
**£**
**£**
**£**
**£**
**£**
1,317
-
-
1,317
634
**Year to**
**Dec 2021**
**Endowment**
**Restricted**
**3. Investment Income**
Bank etc interest
**Year to**
**Dec 2022**
**Designated**
**Unrestricted**|
|1,317
-
-
-
1,317
634|
|Fund-raising Events - Building Fund
76
76
15
Miscellaneous Income
-
-
-
985
-
985
200
27,390
-
27,390
10,242
**4. Incoming resources from charitable activities**
Other activity(Café)
Rent receivable:Church rooms|
|28,375
-
76
-
28,451
10,457|
|Ministry
34,447
157
-
34,604
34,920
5,401
891
-
6,292
4,643
Establishment
57,570
-
-
-
57,570
34,412
**5. Costs of activities in furtherance of the charity's objectives**
Mission|
|97,418
157
891
-
98,466
73,975|
Page 18
## HORFIELD BAPTIST CHURCH NOTES TO THE ACCOUNTS- contd YEAR ENDED 31 DECEMBER 2022
|34,604
-
6,292
57,031
-
539
-
-
-
98,466
-
**7. Grants payable**
BUGB Home Mission
1,500
BMS World Mission
1,500
Other grants (under £1000)
891
3,000
-
891
Other administrative costs
4,107
4,107
Salaries & Stipends
Social security costs
Pension costs
**8. Support costs**
**9. Staff costs and Trustee expenses**
Governance costs (Accountant & Inspection Costs
**Unrestricted**
**Designated**
**Restricted **
Ministry
Mission
Establishment (Water Rates; Cleaning Costs &
Main Purchases)
Depreciation
**Charitable**
**activities**
**Grant**
**Funding**
**6. Total resources expended**|-
34,604
3,502
9,794
-
57,031
-
539
605
605
4,107
102,573
1,500
1,500
891
-
3,891
4,107
4,107
39,998
-
5,188
45,186
**Year to**
**Dec 2022**
**Endowment**
**Year to**
**Dec 2022**
**Support**
**Costs**
**Year to**
**Dec 2022**|34,920
12,403
33,873
539
475
82,210
1,200
1,200
759
3,159
8,794
8,794
37,401
6,918
44,319
**Year to**
**Dec 2021**
**Year to**
**Dec 2021**
**Year to**
**Dec 2021**|
|---|---|---|
The average number of employees during the period was 2 (Yr. 2022:) No employee received emoluments in excess of £60000 during the period Nil (2021: Nil) No sums were reimbursed to the Trustees for their work as Trustees Nil (2021: Nil)
The church pays pension contributions into the Pension Deficit plan plus Pension to its current Minister to the Baptist Ministers' Fund (now the DB plan within the scheme). The pension deficit cost to the church in 2022 was £2,192. The Pension deficit scheme is now fully funded and only a nominal payment of £1 per month is made until the scheme closes. Full details of the Pension scheme are in Note 18.
|Net Book Valueat 31 December 2022
at 31 December 2021
Additions/Disposals
**Cost or Valuation**
At 1st January 2022
**10. Tangible Fixed Assets**
Charge for the year
On Disposals
As at 31st December 2022
**Depreciation**
Revaluation Surplus
As at 31st December 2022
At 1st January 2022|**£**
**£**
5,849,141
31,822
604
-
5,849,141
32,426
-
29,667
-
539
-
-
-
30,206
5,849,141
2,220
5,849,141
2,155
**Freehold**
**Property**
**Fixtures, Fittings**
**and Equipment**|**Total**
**£**
5,880,963
604
-
5,881,567
29,128
539
-
29,667
5,851,900
5,851,296|
|---|---|---|
Page 19
## HORFIELD BAPTIST CHURCH NOTES TO THE ACCOUNTS- contd YEAR ENDED 31 DECEMBER 2022
**----- Start of picture text -----**
10. Tangible Fixed Assets Ctd…/
Insured
Freehold Property Date Valuation Cost
Value
£ £ £
Church buildings at Gloucester Road 2004-2013 5,000,000 499,141 13,192,277
Manse, 29 Ramsey Road, Horfield BS7 0JF 2019 350,000 182,141
5,350,000 499,141 13,374,418
Year to Year to
11. Debtors
Dec 2022 Dec 2021
Tax recoverable 907 783
Prepayments and other debtors 1,875 277
2,782 1,060
12. Bank and cash balances
Co-operative Community Plus Account 12,547 5,382
Baptist Union Deposit Account 23,404 1,000
Triodos Treasurer's Reserve Account - 39,276
-
Virgin Charity Deposit Account 10,493
Cambridge & Counties 95 day Notice Account 55,798 54,899
Bank Float 14 24
Cash in Pastoral and Maintenance Floats 200 200
91,963 111,274
13. Creditors : amounts falling due within one year Dec. 2022 Dec. 2021
Accruals 5,205 1,342
Incoming Resources Surplus on
14. Endowment Funds 01/01/2022 Transfers 31/12/2022
Resources Expended Revaluation
Endowment fund 5,849,141 - 5,849,141
- - - -
5,849,141 5,849,141
Incoming Resources Gains and
15. Restricted Funds 01/01/2022 Transfers 31/12/2022
resources expended Losses
- -
Future Building Projects 1,055 6,099 (7,154)
William Short Legacy Fund 456 - 456
Specific appeals Fund 325 916 (242) (999) -
Leprosy Mission - 200 (200) -
Youth work Grant Fund 41 116 (58) 99
Flower Fund 9 - (54) 45 -
Fellowship Fund 420 - - (45) 375
Projector Fund 2,839 760 -604 2,995
BMS Birthday Scheme 559 455 (559) 455
-
5,704 8,546 (1,717) (8,153) 4,380
**----- End of picture text -----**
Page 20
HORFIELD BAPTIST CHURCH NOTES TO THE ACCOUNTS- contd YEAR ENDED 31 DECEMBER 2022
## **15. Restricted Funds** Ctd…/
## **Restricted Income Funds Definition**
**Future Building Projects** has been created to save for major alterations/repairs on our 100+ year old grade II listed buildings
**William Short legacy** reflects funds which, under the terms of the will, are for the purpose of benefiting the poor of the church and local community.
**Specific Appeals Fund.** A Restricted fund for the receipt of donations for specific purposes as identified by the donor at the time of giving.
**Youth Work Grants Fund** has been used for youth work at the church.
**Flower Fund.** A Restricted fund for the purpose of providing flowers as identified by the benefactor(s).
**Fellowship Fund.** A Restricted fund set up by our members to help those in urgent need of financial assistance, decided by the Pastor, officers and deacons.
**BMS Birthday Fund.** A Restricted fund for the purposes of the BMS Birthday Scheme. The scheme provides support of world mission through giving, to celebrate a birthday.
**Projector Fund** created and restricted in 2018. Funds received for the Pastors services in connection with Weddings and Funerals will be used to pay for audio and visual projection.
|**16. Designated Funds**
**01/01/2022**
**£**
6,952
-
6,952
**17. Analysis of net assets by fund**
Endowment Funds
Restricted Funds
Designated Funds
Unrestricted Funds
Manse Fund|**Incoming**
**Resources**
**Resources**
**Expended**
**Transfers**
**31/12/2022**
**£**
**£**
**£**
**£**
-
(157)
6,795
-
-
-
(157)
-
6,795
**Fixed asset**
**Current Assets**
**Deferred**
**Liabilities**
**Total**
**£**
**£**
**£**
**£**
5,849,141
5,849,141
4,380
-
4,380
-
6,795
6,795
2,220
78,319
-
80,539
5,851,361
89,494
-
5,940,855|
|---|---|
Page 21
HORFIELD BAPTIST CHURCH NOTES TO THE ACCOUNTS- contd YEAR ENDED 31 DECEMBER 2022
## **18. Pensions**
The Church 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.
For any month, each participating employer in the Scheme pays contributions as set out in the Schedule of Contributions in force at that time.
The Scheme 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 Scheme’s assets and liabilities to specific employers and means that contributions are accounted for as if the Scheme were a defined contribution scheme. The pensions costs charged to the SoFA in the year are contributions payable towards benefits and expenses accrued in that year, plus any impact of deficiency contributions (see below).
The Minister is eligible to join the Scheme.
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 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 longterm incapacity. This income protection policy has been insured by the Baptist Union of Great Britain with Unum Limited. Members of the Basic Section pay reduced contributions of 5% of Pensionable Income, and their employers also pay a total of 5%.
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.
Continued .../
Page 22
## HORFIELD BAPTIST CHURCH NOTES TO THE ACCOUNTS- contd YEAR ENDED 31 DECEMBER 2022
## Additions
**----- Start of picture text -----**
Type of assumption % pa
RPI price inflation assumption 4.36
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
- Main Scheme pension 2.70
**----- End of picture text -----**
The key assumptions underlying the valuation were as follows:
Post–retirement mortality in accordance with 80% of the S1NFA and S1NMA tables, with allowance for future improvements in mortality rates from 2013 in line with the CMI 2019 core projections, with a long term annual rate of improvement of 1.75% for males and 1.5% for females.
## **Recovery Plan**
In addition to the contributions to the DC Plan set out above, where a valuation of the DB Plan reveals a deficit the Trustee and the Council agree to a rate of deficiency contributions from churches and other employers involved in the DB Plan.
At the end of June 2022 the Baptist Pension Scheme signed an agreement with the insurance company Just Group (‘Just’) to secure members’ pension benefits under the Defined Benefit (‘DB’) Plan. As a result, the Scheme no longer has a shortfall. A revised statement of contributions was announced in July 2022 with deficit contributions from each participating employer in the DB Plan reducing to just £1 per month from August 2022.
Under the current Recovery Plan dated 30 September 2020, deficiency contributions are payable until 30 June 2026, currently at £1 per month.
## **Movement in Balance Sheet liability**
Section 28.11A of FRS 102 requires agreed deficit recovery payments to be recognised as a liability. The movement in the provision is set out in the table below.
Continued .../
Page 23
HORFIELD BAPTIST CHURCH NOTES TO THE ACCOUNTS- contd YEAR ENDED 31 DECEMBER 2022
**Pensions** Ctd…/
**----- Start of picture text -----**
Accounting date (year ending): 31 December 2022 31 December 2021
Balance sheet liability at year start £17,300 £21,526
Minus deficiency contributions paid (£2,192) (£3,695)
Interest cost (recognised in SoFA) £329 £270
Remaining change to balance sheet
(£15,437) (£801)
liability* (recognised in SoFA)
Balance sheet liability at year end £0 £17,300
**----- End of picture text -----**
* Comprises any change in agreed deficit recovery plan and change in assumptions between year-ends.
This liability represents the present value of the deficit contributions agreed as at the accounting date and has been valued using the following assumptions set by reference to the duration of the deficit recovery payments:
**----- Start of picture text -----**
Accounting date 31 December 2022 31 December 2021 31 December 2020
Discount rate 4.2% 2.0% 1.4%
Future increases to Minimum Pensionable
0.0% 4.1% 3.2%
Income
**----- End of picture text -----**
## **19. Related Charities**
## **Baptist Union/West of England Baptist Association**
The church is a member of the Baptist Union of Great Britain, and the West of England Baptist Association.
The church made donations to the Baptist Union Home Mission Scheme of
£1,500
Page 24
## **HORFIELD BAPTIST CHURCH**
## **INDEPENDENT EXAMINER'S REPORT TO THE CHURCH MEMBERS**
I report on the financial statements for the year ended 31[st] December 2022, which are set out on pages 15 to 24.
## RESPONSIBILITIES OF THE EXAMINER
It is my responsibility to:
- Examine the accounts under section 145 of the Charities Act 2011,
- To follow the procedures laid down in the General Directions given by the Charity Commission (under section 145(5)(b) of the Charities Act), and
- To state whether particular matters have come to my attention
## BASIS OF INDEPENDENT EXAMINER'S STATEMENT
My examination was carried out in accordance with the General Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from the trustees concerning such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a true and fair view and the report is limited to those matters set out in the statement below.
## INDEPENDENT EXAMINER'S STATEMENT
In connection with my examination, no matter has come to my attention:
- 1) Which gives me reasonable cause to believe that in any material respect the requirements:
---- to keep accounting records in accordance with section 130 of the Act;
---- to prepare accounts which accord with the accounting records and to comply with the accounting requirements of the Act have not been met; or
2) To which, in my opinion, attention should be drawn in order to to enable a proper understanding of the accounts to be reached.
Anthony J. Faccini Hatter House
Abbotsford Close Woking Surrey GU22 7BJ
Page 14