Mutley Baptist Church - Annual Report for 2020
Name of the Charity:
Mutley Baptist Church
Charity registration number:
1127079
Registered Address:
Mutley Plain Plymouth Devon PL4 6LB
Trustees:
Rev N Lear (Minister) Mrs P Shelmerdine (Church Secretary) MrJ Dawes Mr T Frost Dr A Gaston Mr T Provost (Assistant Secretary) MrsJ Siney Mrs F Spicer Mrs } Sutton Mrs M Tollins
Property Trustees:
The South West Baptist Trust Corporation Wonford Baptist Chapel 36-38 Wonford Street Exeter EX2 5DL
Bankers:
CAF Bank 25 Kings Hill Avenue Kings Hill West Malling Kent MEI9 4TA
Independent Examiner:
Hugh Rodway
|
Charitable Object:
The charity is governed by an Approved Governing Document which states that 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.
Mutley Baptist Church occupies premises which are held by the South West Baptist Trust Corporation, on Trusts which are entirely compatible with the above object.
Organisational Structure and Decision-making processes:
Members of Mutley Baptist Church are accepted in accordance with the Approved Governing Document which requires them to be or 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.
Members’ meetings normally take place four times per year and the view of the members as expressed in the meeting under the guidance of the Holy Spirit determines the overall policy of the church. In accordance with the constitution, the members appoint up to 12 trustees, who together with the Minister, Church Secretary and Treasurer (all appointed by the members), and collectively known as the eldership, who are responsible for the day to day running of the church’s work and witness, and the financial and legal aspects of the charity. All members are encouraged to take an appropriate part in the spiritual and practical tasks involved in the furtherance of the charitable objective.
Relevant matters may be submitted to the church meeting by the trustees for guidance or may be raised by members in church meeting for further consideration by the trustees. Though the constitution permits decisions to be made at church meetings by appropriate majorities, the church seeks to work by consensus wherever possible.
Objectives and Activities:
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 their living Lord.
Central to the work and witness of the church is the provision of regular public services of Christian worship. From January until mid-March 2020, these services took place each Sunday at 9.00 am, 10.30 a.m. and 6.30 p.m. There were also occasional services at other times which are advertised in the notices and the website at www.mutleybaptist.co.uk. There was a full programme for children and young people during the 10.30 am morning services and during the week. However, with the sudden arrival of COVID-19 and the national restrictions on meeting and movement, things had to change, while maintaining our desire to be a friendly, welcoming
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and inclusive community. Initially all services and other meetings were via ‘Zoom’, with parts of the service then shared on the church YouTube channel, but as restrictions eased, staff and volunteers carried out thorough risk assessments were carried out and COVID-safe arrangements put in place so that the services could resume as soon as possible. In some ways, these arrangements proved more inclusive, as people who were unable to attend services for health or other personal reasons could now take part in services and new ‘coffee and chat’ ‘Zoom’ gatherings, as well as catch up later on YouTube.
On Sunday evenings the church held ‘The Gathering’ which was a smaller and more informal way of being church together, usually meeting at 6pm. During the lockdown this took place online, and once restrictions eased met face to face in the basement of Greenspace, a shop along Mutley Plain that is closely associated with the ministry of Mutley Baptist Church.
Mutley’s weekly contribution to the Plymouth City Soup Run teams - which supports the disadvantaged and vulnerable of the community - continued throughout the year, adopting new COVID-secure ways of operating, ensuring the safety of volunteers and service users. As restrictions eased the church was able to run a cafe during October, November and December. Hot take-away meals were provided and prayer opportunities available. Pastoral support and counselling were given. Mutley was also on the list to offer counselling to NHS staff during the height of the pandemic. The church runs a series of weekly house groups for the growth of faith and discipleship in the homes of some members, and these continued as ‘Zoom’ gatherings; again, the new arrangements had a number of advantages, including people who had previously been unable to attend physically.
The Pastoral Team continued to meet weekly in 2020 and this continued on Zoom during the Lockdowns. They contacted the elderly, sick and lonely members of the fellowship regularly by phone calls, emails and by sending cards. House Group leaders ensured they cared for their members in this way too.
The church has operated children and families’ groups which meet in the church premises throughout the week, with the purpose of assisting the community and demonstrating the love of Jesus Christ: these had to cease as physical gatherings. However, every effort was made to keep in touch via electronic means and provide practical help wherever possible.
The church has also operated a weekly youth programme, which also had to cease meeting face to face following the Covid-!9 restrictions. Support continued online until face to face contact could safely be resumed.
Work with the homeless and disadvantaged has included the operation of a ‘drop in’ cafe but, again, this had to be put on hold, in response to the COVD-19 restrictions.
From March, the church buildings could no longer be used by other community groups and the NHS who have operated regular sessions for blood donors and community nursing in the main hall.
The church has continued to take safeguarding very seriously and operates systems to ensure that people working with children and vulnerable adults are appropriately vetted by the Disclosure and Barring Service (DBS).
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Achievements and Performance:
In December 2019 membership stood at 247; in December 2020 membership stood at 202, largely due to a careful analysis of membership records and contacting people who had not resigned but were, for reasons mainly of geography, unable to benefit from membership.
However, despite the COVID-19 restrictions and the understandable need of many members to minimise risk of infection, the church’s care and outreach has continued in all areas of service, including outreach to and support of the vulnerable and to the wider community.
During 2020, the church bade farewell to Rob Dymond, who had served faithfully for eight years as the voluntary Operations Manager, and Mrs Annie Hortop, who had served for a similar time as the Families Worker. However, the church has been greatly blessed by the appointment of Mrs Hilary Fursdon, as the Office and Operations Manager, and Mrs Beth Hemes, working with both children and families.
During the Pastoral Vacancy from late 2018 to Spring 2020, the church was supported by Rev Chris Fry who was ‘loaned’ to the church by The South West Baptist Association (SWBA). The fellowship is very grateful to her for her wisdom, help and support during that time. In early 2020 the eldership started to lead the church through the process of seeking a new minister. In consultation with the church membership a Church Profile was created and ‘Search Team’ established. During the summer of 2020 the Search Team met several potential ministers on Zoom. In the Autumn of 2020 Rev Nick Lear visited, met with a range of leaders and others and preached on the Sunday. In December 2020 a ‘Preach with a View' weekend was arranged. Nick and his wife Sally met with many members and leaders, answering questions and preaching on the Sunday. A Special Church Meeting was arranged and as a result the membership invited Nick to be the new minister. He accepted the invitation.
Fellowship, teaching and support are not confined to the community in Mutley and Plymouth: in 2020 the church continued to support a number of long-term missionaries overseas, as well as individual members of the church going on short-term mission to various parts of the world. In 2020 couples supported by Mutley Baptist Church were serving in Papua New Guinea, the Middle East and Indo-China.
The church measures the success of its programmes in terms of transformed lives, fellowship and encouragement. The trustees recognise that these are difficult to measure - especially during the Covid-|9 pandemic - but believe that 2020 was another positive year in the life of Mutley Baptist Church.
The church continues to be encouraged by remarks made by members of the local community about the positive part the church plays in the life of the community; members continue to serve as volunteers in other local charities and organisations, including school governing bodies.
Financial Review:
The church continues to raise the majority of the funds needed to carry on its activities from within its own membership and congregation.
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The most significant expenditure relates to salaries of the ministers, other ministry leaders and supporting team. They lead and co-ordinate the church's activities including the Sunday services, many meetings through the week, provide pastoral care for the congregation and other people, and equip and encourage the membership in their life, Christian witness and service.
The church contributes to the life of the wider church by making grants to local, national and international organisations, individuals in training or mission activities who share the Christian aims and objectives of the church's own charitable purposes.
The church is heavily dependent on its membership working as unpaid volunteers in all aspects of the church's activities, many of which run with little or no impact on the church's expenditure but nevertheless contribute substantially to the achievements of the church's objectives.
The financial results for the year, together with a summary of the accounting policies adopted are set out in the accompanying financial statements.
The trustees have established a reserves policy and are satisfied that they have sufficient reserves at the balance sheet date, together with ongoing income anticipated, to enable the church to function effectively in the coming year.
The trustees have made an assessment of the major risks facing the church and are satisfied that there are policies in place to minimise these risks.
The church maintains high standards of safeguarding for children and adults at risk, fully implementing our safeguarding policy in accordance with the national guidelines provided by the Baptist Union of Great Britain.
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Pamela Shelmerdine } oe) es
Church Secretary re = a
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4 October 2021
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MUTLEY BAPTIST CHURCH STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020
| Notes | Unrestricted | Restricted/ | Total | Total | |
|---|---|---|---|---|---|
| Endowment/ | |||||
| Designated | 2020 | 2019 | |||
| £ | £ | £ | £ | ||
| Income | |||||
| Donations and legacies Investmentincome |
2, 3 |
144,027 2.233 |
3,231 312 |
147,259 2,545 |
207,886 14,556 |
| Income fromcharitable activities | 4 | 9,118 | - | 9,118 | 31,382 |
| Total income andendowments | £155,378 | £3,543 | £158,922 | £253,824 | |
| Expenditure | |||||
| Expenditureonraising funds | 5 | - | - | - | - |
| Charitable activities -restricted/unrestricted | 6 | 192,927 | 2,959 | 195,886 | 271,513 |
| Charitable activites -endowment | 6 | - | - | - | - |
| Total expenditure | 192,927 | 2,959 | 195,886 | 271,513 | |
| Netincomebeforedefined benefitfundingplan | (£37,549) | £584 | (£36,965) | (£17,689) | |
| charge | |||||
| Actuarial gainsand(losses)ondefined | 21 | £10,765 | - | £10,765 | (£2,068) |
| benefit scheme Netincome |
(£26,784) | £584 | (£26,200) | (£19.757) | |
| Movement in funds | |||||
| Endowment/ | Unrestricted | Restricted/ | Total | Total | |
| Total fundsbrought forward Netincomingresources |
Designated 223,502 (£947) |
115,337 (£26,784) |
141 £1,531 |
338,980 (£26,200) |
358,737 (£19,757) |
| Transfers Total funds carried forward |
- £222,555 |
- £88,553 |
- £1,672 |
- £312,780 |
. £338,980 |
| Endowment Designated |
222,554 £222,555 |
The notes on pages 7 to 14 form part of these accounts
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MUTLEY BAPTIST CHURCH BALANCE SHEET
31 December 2020
| 31 December 2020 | |||||
|---|---|---|---|---|---|
| Notes | 2020 | 2019 | |||
| £ | £ | £ | £ | ||
| Fixed Assets | |||||
| Tangible fixedassets | 11 | 167,194 | 175,326 | ||
| InvestmentProperty | 12 | + | = | ||
| CurrentAssets | |||||
| Debtorsrepayable innext 12 months | 13 | 13,025 | 14,641 | ||
| Bankand cashbalances | 14 | 182,843 | 185,016 | ||
| 195,868 | 199,657 | ||||
| Current liabilities | |||||
| Creditors: amounts falling duewithinoneyear | 15 | 4,113 | 1,550 | ||
| Netcurrent assets | 191,755 | 198,107 | |||
| Netassets excludingpension liabilities | £358,949 | £373,433 | |||
| Defined benefitscheme liability | 21 | £21,526 | £34,452 | ||
| Totalnetassets | £337,423 | £338,981 | |||
| Charitable Funds | |||||
| Endowment Designated Unrestricted Restricted |
17 18 19 |
1 222,554 88,553 1,672 |
! 223,502 115,337 141 |
||
| £312,780 | £338,981 |
The notes on pages 7 to 14 form an integral part of these accounts. These accounts were approved by the Trustees on 4, (0,21 and signed on their behalf by Trustee \A Vly MACA TH eens eens Secretary . +S“ FAME11 A SREKMMLEAZD INC~
MACA TH eens eens FAME11 A SREKMMLEAZD INC~
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MUTLEY BAPTIST CHURCH NOTES TO THE ACCOUNTS
year ended 31 December 2020
1 Accounting Policies
a Basis of preparation The accounts (financial statements) have been prepared in accordance with the Charities Statement of Recommended Practice (Charities SORP 2015), FRS102 and with the Charities Act 2011.
The church is a registered charity and meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognized at historical cost or transaction value unless otherwise stated in the relevant. accounting policy notes.
b Income recognition
All incoming resources are included in the Statement of Financial Activities when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.
c Donations
Donations are accounted for gross when the donation is received.
d Legacies
Legacies are accounted for on the earlier of notification of an impending distribution and the legacy being received, provided that the legacy can be properly quantified.
e Investment income Investment income is included in the accounts in the year in which it is receivable.
f Expenditure recognition All expenditure is accounted for on an accruals basis. Expenditure is recognized where there is a legal or constructive obligation to make payments to third parties, it is probable that settlement will be required and the amount of the obligation can be measured reliably.
g Fund raising and publicity costs
The Church does not make formal appeals for funds, and expenditure on these items is therefore not material.
h Grants payable The Church makes grants to other organisations whose charitable objects complement its work. They are accounted for in the year in which they are paid or when the recipient has been notified of the grant and payment is unconditional.
i Support costs
Support costs are those that assist the work of the church but do not directly represent charitable activities and include office costs and governance cost. Where support costs cannot be directly attributed to particular headings they have been allocated to the cost of raising funds and expenditure on charitable activities on a basis consistent with the use of resources. This represents direct expenditure on the governance of the church. 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 to the volunteers for their service.
j Fixed Assets Tangible fixed assets are capitalised if they can be used for more than one year and cost at least £1,000. They are initially recognised at cost, or for donated assets, at a reasonable estimate of their value on receipt.
There is no reliable information available for the cost of the church premises and so the carrying value of £1 is used as deemed cost plus building improvements
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MUTLEY BAPTIST CHURCH NOTES TO THE ACCOUNTS (continued) year ended 31 December 2020
1 Accounting Policies (continued)
k Depreciation
Depreciation has not been charged on the 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 of the cost on a straight-line basis over their expected useful life, at the following rates: Freehold land Nil Building improvements 4% Organ 5% Equipment 10% -20% Fixtures and fittings 10%
1 Investment Assets
Investments are initially stated at cost. Subsequently they are measured at fair value with changes recognized in the SOFA, Investment assets are shown at cost less impairment.
m Funds
The church has established various funds as follows:
Unrestrictedfunds
Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.
Endowment
This comprises the building reserve fund and represents the amount originally applied to the building of the church. This amount is held as permanent capital until determined otherwise by the Trustees with the approval of the church members' meeting.
Designated
Church members may designate or undesignate a fund for a particular purpose. The members have designated an amount for the purpose of holding manses or providing an additional manse if required by a future minister.
Restricted Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial] statements.
n Employee benefits
The charity operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the charity pays fixed contributions into a separate entity. Once the contributions been paid the charity has no further payment obligations. The contributions are recognised as an expense when they are duc. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held separately from the charity in an independently administered fund.
Prior to 2012 pension provision was made through multi-employer defined benfit pension plans. Where it is not possible for the charity to obtain sufficient information to enable it to account for a plan as a defined benefit plan, it accounts for the plan as a defined contribution plan.
Where the plan is in deficit and where the charity has agreed, with the-plan, to particpate in a deficit funding arrangement, the charity recognises a liability for this obligation. The amount recognised is the net present value of the contributions payable under the agreement that relates to the deficit. This amount is expensed in the SOFA. The unwinding of the discount is recognised as a finance cost.
| 2 Donations and legacies | Unrestricted | Restricted | 2020 | 2019 |
|---|---|---|---|---|
| £ | £ | £ | £ | |
| Offerings | 142,027 | 3,231 | 145,258 | 176,709 |
| Tax refunds | 2,000 | - | 2,000 | SLUT |
| Legacies Total |
- £144,027 |
- £3,231 |
. £147,258 |
. £207,886 |
in the previous year £2,594 of donations were restricted income with the balance being unrestricted.
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MUTLEY BAPTIST CHURCH NOTES TO THE ACCOUNTS (continued)
year ended 31 December 2020
| MUTLEY BAPTIST CHURCH NOTES TO THE ACCOUNTSTHE ACCOUNTSACCOUNTS (continued) year endedended 31 December 20202020 |
|||||
|---|---|---|---|---|---|
| 3 Investmentincome Bankinterest Rental income |
Unrestricted 160 2,073 —ian_ |
Designated 2020 312 472 - 2073 aS |
2019 £1,181 13,375 C4SSC |
||
| 4 Incomingresourcesfromcharitable activities | Unrestricted £ |
Restricted £ |
2020 £ |
2019 £ |
|
| Eventandroomhire Youthandfatnilies Otherincomingresources Total |
5,668 3,235 215 £9,118 |
“ - . - |
5,668 3,235 215 £9,118 |
8,964 20,163 2,255 £31,382 |
|
| 5Costs ofGeneratingfunds | Unrestricted | Restricted | 2020 | 2019 | |
| Overseas missionteamfundraising costs | - | - | a | = | |
| 6 Charitable Activities | Unrestricted | Restricted/ | 2020 | 2019 | |
| £ | Designated £ |
£ | £ | ||
| Ministry Salaries,wagesandvisitingpreachers Mansecostsandrental Expenses Supportcosts Pensionfund deficitfinancecost |
Note9 Note21 |
50,063 1,139 1,115 38,362 563 £91,242 |
. - . - - - |
50,063 1,139 1,115 38,362 563 £91,242 |
78,789 3,604 4,552 48,287 838 £136,070 |
| Mission Youthandfamily Other localcommunity support |
6043 1,021 |
- 994 |
6,043 2,015 |
27,542 1,363 |
|
| Overseas missionteams travel Grantsmade |
Note 8 | - 39.920 £46,984 |
. 706 £1,700 |
- 40,626 £48,684 |
- 46,453 £75,358 |
| Establishment Salariesand wages Heatlightandwater Insurance CouncilTax Repairsandmaintenance Depreciation |
18,429 12,109 7,270 1,460 8,560 6,873 £54,701 |
- - - - “ 1,259 £1,259 |
18,429 12,109 7,270 1,460 8,560 $,132 £55,960 |
21,014 14,640 6,708 1,405 7,750 8,568 £60,085 |
|
| Total | £192,927 | £2,959 | £195,886 | £271,513 | |
| 7Totalresourcesexpended | Charitable activities £ |
Grant Funding £ |
Support costs £ |
Total 2020 ce |
Total 2019 £ |
| Ministry Mission Establishment Cost ofgeneratingfunds |
52,880 8,058 55,960 - |
- 40,626 - - |
38,362 - - - |
91,242 48,684 55,960 - |
136,070 75,358 60,085 - |
| Governance costs- independent examination | - £116,898 |
- £40,626 |
. £38,362 |
- £195,886 |
- £271,513 |
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MUTLEY BAPTIST CHURCH NOTES TO THE ACCOUNTS (continued)
year ended 31 December 2020
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|||||||||||
|---|---|---|---|---|---|---|---|---|---|
|8|Grants|payable|
|Unrestricted|Restricted/|Total|Total|
|2020|2019|
|Local|£|£|£|£|
|Baptist|10,500|-|10,500|11,839|
|Home|Missionary Society|3720|706|4,426|5,433|
|Mission|4200|-|4,200|4,000|
|Student|sponsorship|-|<|.|608|
|Full|time|overseas|21500|=|21,500|24,250|
|Other|world mission|-|-|-|323|
|9|Support|costs|£39,920|£706|£40,626|£46,453|
|Unrestricted|Restricted/|Total|Total|
|2020|2019|
|£|£|£|£|
|Administrative|staff|16,130|-|16,130|21,613|
|Telephone and postage|2,676|-|2,676|2,437|
|Printing and|stationery|2,206|-|2,206|2,478|
|Internal organisation costs|8,713|=|8,713|13,794|
|Equipment|and web services|6,584|-|6,584|2,819|
|Conferences,|events and|training|1,068|-|1,068|1,154|
|Hospitality at events|650|-|650|1,895|
|Sundry expenses|335|-|335|2,097|
|10|Staff costs|and|transactions|with|trustees|£38,362|-|£38,362|£48,287|
|2020|2019|
|£|£|
|Salaries and|wages|76,181|110,160|
|Social|security|costs|.|818|
|Pension|costs|Note 21|6,533|6,500|
|Other costs|1,139|3,604|
|Total|£83,853|£121,082|
|The average number of full time equivalent employees was|-|6|
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No employee received emoluments in excess of £60,000 during the year (2019 none).
One employee of the Church was appointed as a trustee at a meeting of church members on 7th December 2015. The annual remumeration in 2020 was £16,890 (2019 £16,890 ) and was set before their appointment
No sums were reimbursed to Trustees for their work as Trustees (2019 none).
The church pays pension contributions for its Ministers to the Baptist Ministers Pension Trust Limited, which is a final salary defined benefit Scheme, which is not contracted out of the State second pension. The scheme is a multi-employer scheme and it is not possible to identify the assets and liabilities of the scheme which are attributable to the church. In accordance with FRS102 Section 28, the scheme is accounted for as a defined contribution scheme.
The total amount of donations received from trustees was £26,549 (2019 £1 6,640). No conditions were attached.
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MUTLEY BAPTIST CHURCH NOTES TO THE ACCOUNTS (continued)
year ended 31 December 2020
| 11Tangible FixedAssets | Church Premises |
Church Premises |
Church Premises |
Building Improve- ments |
Manse | Fixtures/ Organ Equipment |
Total |
|---|---|---|---|---|---|---|---|
| Cost 01 January2020 |
61,730 | 134,396 | §2:151 | ||||
| Additions 30December2020 |
- | £1 | - £61,730 |
- £134,396 |
- £52,151 |
- 248,278 |
|
| Depreciation 01 January2020 Charge fortheyear 30December2020 |
- - - |
37,110 3,178 £40,288 |
5,669 1,259 £6,928 |
30,173 3,695 £33,868 |
72,952 8,132 £81,084 |
||
| Net Book value | |||||||
| 30December2020 | £1 | £21,442 | £127,468 | £18,283 | £167,194 | ||
| 30 December2019 | £1 | £24,620 | £128,727 | £21,978 | £175,326 | ||
| All ofthe fixed assets are used for direct charitable purpose Thechurchpremisesareinsured for£8,663,960, theLodge |
for£149,922, | £149,922, and theManse for£400,020. | £400,020. | ||||
| 14 thvestmentproperty | 2020 | 2019 | |||||
| £ | £ | ||||||
| Carrying value (marketvalue) 1stJanuary2019 | - | - | |||||
| Net(joss) onrevaluation | - | - | |||||
| Disposals. Carryingvalue (marketvalue) 31stDecember2019 |
- - |
- - |
|||||
| 13Debtors | 2020 | 2019 | |||||
| £ | £ | ||||||
| GiftAid Prepayments Other |
6,804 6,014 207 ——F13,025 5 |
7,721 5,800 1,120 «£14,647 i u |
|||||
| 14 Bankandcash balances | 2020 | 2019 | |||||
| £ | £ | ||||||
| CAF General fundsdepositaccount BaptistUnion NewMinistriesdepositaccounts Mission Youth Buildings Families Fxaccount LiveWires Cash |
6,800 45,361 95,087 2,206 16,325 9,577 1,690 3,544 1,830 334 89 £182,843 |
4,573 45,220 94,775 12,199 13,288 5,832 771 5,917 2,000 243 198 £185,016 |
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MUTLEY BAPTIST CHURCH NOTES TO THE ACCOUNTS (continued)
year ended 31 December 2020
15 Creditors: amounts falling due within one year
| 15 Creditors: amounts falling duedue within one year | ||
|---|---|---|
| 2020 | 2019 | |
| £ | 3 | |
| Accruals | 4,113 | 1,550 |
| Other creditors | ~ | - |
| £4,113 | £1,550 |
16 Contingent Assets
The church, MBC, holds a 64% share in a property at 55 Ker Street, being a Manse used by the members of Devonport Community Baptist Church (‘DCBC’), upon the following conditions:
a. DCBC may, at its discretion, sell the Manse and invest the full proceeds of sale into a new frechold or long leasehold property for use as an alternative manse or building for other DCBC purposes. Any such building purchased in future would be held on trust which reflected the shares of the purchase price provided from MBC.
b. If DCBC ceases to operate as a Baptist Church then the MBC share of the sale proceeds of the Manse or any substituted property will be held by South West Baptist Trust Corporation upon the present trusts applicable to them it being the intention of MBC that these be used for church planting in Plymouth or elsewhere as agreed by the members of MBC.
The beneficial interest in this property rests with DCBC unless and until the condition at b above is satisfied. Accordingly, as this condition has not been satisfied, it is not practicable to reflect any financial effects in these statements.
17 Endowment Funds
| 2020 | 2019 | ||
|---|---|---|---|
| £ | £ | ||
| Church | premises | £1 | fl, |
In addition the contingent asset detailed in note 16 is considered part of the Endowment Funds
18 Designated funds
| 18 Designated funds | |||||
|---|---|---|---|---|---|
| 2020 | 2019 | ||||
| £ | £ | ||||
| Mansereserve at ] January2020 | 223,501 | 223,957 | |||
| Interestonmansereserve depositwith Baptist Union | 312 | 803 | |||
| Additions lessdepreciation onmanse fixturesand equipment Manse reserve at31 December2020 |
(£1,259) 222,554 |
(£1,259) £223,501 |
|||
| 19 Restricted Funds | |||||
| Designated donations to third party charities | Brought forward - |
Incoming resources 706 |
Resources expended 706 |
Carried Forward - |
|
| Designated donationschurch activities Mexico Mission |
. | 141 | 2,525 - |
994 - |
1,531 141 |
| £141 | £3,231 | £1,700 | £1,672 |
Throughout the year offerings are taken to support third party charitable activities both locally and overseas.
All restricted giving was applied to the purpose for which it was given in the year other than the balances carried forward as at 31 December 2020 as shown above.
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MUTLEY BAPTIST CHURCH NOTES TO THE ACCOUNTS (continued) year ended 31 December 2020 ended 31 December 2020 31 December 2020 December 2020 2020
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year ended 31 December 2020 ended 31 December 2020 31 December 2020 December 2020 2020 Defined
20 Analysis of net assets of net assets net assets assets benefit
Fixed Investment Current scheme Total
Funds: Assets Assets Assets _ liability
Endowment Note 17 1 - - - 1
Designated Note 18 127,467 - 95,087 - 222,554
Restricted Note 19 - - 1,672 - 1,672
Unrestricted 39,726 - 94,997 (£21,526) 113,197
£167,194 - £191,756 (£21,526) £337,423
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20 Analysis of net assets of net assets net assets assets
21 Pensions
The Church is an employer participating in a pension scheme known as the Baptist Pension Fund (‘The Scheme’) which is administered by the Pension Trustee (Baptist Pension Trust Limited). The Scheme is a separate legal entity atid the assets of the Scheme are held separately from those of the Employer and the other particpating employers. 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. Prior to this date the main benefit provided through the Defined Benefit (‘DB’) Plan was a 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.
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 long-term incapacity. This income protection policy has been insured by the Baptist Union of Great Britain with Aviva Limited. Members ofthe Basic section pay reduced contrinutions of 5% of Pensionable Income, and their employer pays a total of 5%.
The Scheme is considered to be a multi-employer scheme as described in Section 28 of FRS102. This is because it is not possible to attribute the Scheme's asset and liabilities to specific employers and means that contributions are accounted for as if the Scheme were a defined contribution scheme.
The Minister and some staff are eligible to join the Scheme.
Actuarial valuation as at 31 December 2019
A formal valuation of the DB Plan was performed at 31 December 2019 by a professionally qualified Actuary using the Projected Unit Method. At the valuation date the market value of the DB Plan assets at the valuation date was £298m whilst the level of assets needed to pay benefits was £316m, giving a deficit of £18m (equivalent to a past service funding level of 94%). The Church and other particpating employers in the DB Plan are collectively responsible for funding this deficit.
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|---|---|---|---|---|---|---|---|---|
|The key|financial assumptions|underlying|the valuation|were|as|follows:|
|Type ofassumption|%pa|
|RPI price|inflation assumption|3.20|
|CPI price|inflation assumption|2.70|
|Minimum Pensionable Income increases|0.50|
|Assumed|investment|returns:|
|Pre retirement|(gilt yield|plus|1.75%|pa)|2.95|
|Post retirement|(including|benefits|matched by the|insurance|policy)|1.70|
|(gilt|yield plus 0.5%|pa)|
|Minimum Pensionable|Income|increases|(CPI|plus|0.5%)|3.20|
|Deferred|pension|increases|(based|on|RPT)|
|Pre|April 2009|3.20|
|Post|April|2009|2.50|
|Pension|increases|
|Based on CPI|with|an annual|floor of 0%|and|annual|cap|of 5%|2.70|
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13
MUTLEY BAPTIST CHURCH NOTES TO THE ACCOUNTS (continued) year ended 31 December 2020
Mortality is assumed in accordance with 80% of the S3NA standard mortality table. Future improvements projected from 2013 in line with the "CMI 2019" projection with a long-term rate of improvement of 1.75% pa for males and 1.5% for females with the core smoothing parameter and with additiomal initial mortality improvement factor A=0.5%.
The next actuarial valuation of the DB Plan within the Scheme is due to take place not later than as at 31 December 2022
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.
Under the current Recovery Plan signed in September 2020, deficiency contributions are payable until June 2026. These contributions are broadly based on the employer's membership at 31 December 2014 and increase annually in line with increases to Minimum Pensionable Income as defined in the Rules.
Movement in Balance Sheet liability
Section 28.11A of FRS102 requires agreed deficit recovery payments to be recognised as a liability. The movement in the provision is set out in the table below.
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|---|---|---|---|---|---|---|---|---|---|---|---|
|2020|2019|
|Balance|sheet|liability|at|start|of|year|34,452|35,099|
|Minus|deficiency|contributions|(£2,724)|(£3,553)|
|Interest cost|(recognised|in SOFA)|563|838|
|Remaining change|to balance|sheet|liability|(recognised|in|SOFA)|(£10,765)|£2,068|
|Balance|sheet|liability|at year|end|£|21,526|£|34,452|
|The|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|defict|recovery payments:|
|2020|2019|2018|
|Discount|rate|0.4%|2.2%|24%|
|Future|increases|to Minimum Pensionable|Income|3.0%|3.1%|3.3%|
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The church has been advised that the cost for the church to buyout their Pension Scheme liabilities at 18 December 2020 was approximately £87,900 (2019 £474,000)
22 Related charities
The custodian trustee of the church is The Baptist Union Corporation Limited, charity number 249635.
The church is also a member of the Baptist Union of Great Britain, and the South West Baptist Association,
The church made donations to the Baptist Union Home Mission Scheme as set out in Note 8.
23 Statement of cash flows
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|---|---|---|---|---|---|---|---|
|2020|2019|
|Cash flowsfrom|operating|activities|£|£|
|Net income|(£26,200)|=|(£19,757)|
|Adjustments|for:|
|-|depreciation|£8,132|£8,546|
|-|interest|and|other|income|from investments|(£2,545)|(£14,556)|
|-|(increase)/decrease|in|debtors|£1,616|£12,228|
|-|(decrease)/increase|in creditors|(£10,363)|(£147)|
|Net cash provided|by operating|activities|(£29,360)|(£13,686)|
|Cash flowsfrom|investing|activities|
|Interest|received|£2,545|£14,556|
|Expenditure|on fixed|assets|£0|(£5,575)|
|£2,545|£8,981|
|Net decrease|in|cash and|cash|equivalents|(£26,815)|(£4,705)|
|Cash|equivalents|at|beginning|of year|£185,016|£243,132|
|Cash|equivalents|at end|of|year|£158,201|£238,427|
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14
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Hugh S Rodway
21 Maudlin Drive
Teignmouth
Devon
TQ14 8RZ
01626 778328.
Email: hughr@tiscali.co.uk
TO THE TRUSTEES and DEACONS OF
MUTLEY BAPTIST CHURCH
Of the Accounts for the year ending 31%t December 2020
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11" November 2021 BACKGROUND | was asked in the Autumn if | could possibly examine and finish the accounts of Mutley Baptist Church for the year ending 315 December 2020 as Nicholas Maxwell who had been appointed as the examiner was unable to complete the work due to personal circumstances In the meantime the Church had applied to the Charity Commission and was granted a two month dispensation from filing the figures until the 318t December 2021 On receipt of the documents, it became apparent that Nicolas had done the majority of the work and prepared the accounts to a high standard in accordance with SORP 2015 as the turnover in the previous years had been above the £250,000 threshold although he has pointed out that if the income was not likely to succeed this in the immediate future then a much simplified set of accounts could be prepared at least in the short term. The reason whyI highlight this is because I do not have the required qualifications to sign off the accounts for charities that are above this limit although | am more than content to verify that in my opinion the accounts are accurately represented and can find no other areas of concern or questions that have been previously raised and addressed
FORMAT of ACCOUNTS
Independent examination at a glance. To maintain public confidence in the work of charities, charity law requires most charities to have an external scrutiny of their accounts. Provided a charity is not required by law or its governing document to have an audit then trustees may choose a simpler and less expensive form of external scrutiny called an independent examination. For financial years ending on or after 31 March 2015, trustees may opt for an independent examination instead of an audit provided their charity's gross income is not more than £1m, or where gross income exceeds £250,000, its gross assets are not more than £3.26 million. An independent examination is a simpier form of scrutiny than an audit but it still provides trustees, funders, beneficiaries, stakeholders and the public with an assurance that the accounts of the charity have been reviewed by an independent person. All charities with an income of more than £25,000 that opt not to have an audit must have to have an examination. Whether acting as a volunteer or being paid a fee for their work, the role of the independent examiner is important and they must follow certain steps in carrying out the examination and makea report to the trustees setting out particular matters once they have finished their examination. There is a process to be followed and separate guidance - Independent examination of charity accounts: examiners (CC32) - is available which takes the examiner through the Directions which set the procedures that the examiner must follow, explains their reporting duties and provides the examiner with practical advice at every stage. Whilst in most cases the examiner will be reviewing receipts and payments accounts and so will not need to be a qualified accountant to carry out a proper independent examination, the examiner still needs a certain level of ability and knowledge to undertake a competent examination and to set out their report in the way that is required by the 2008 Regulations. Where gross income is more than £250,000 charity law requires the examiner to be a member of a body listed in the Charities Act.
GENERAL OVERVIEW.
| will however make a couple of observations as a general overview
CHURCHES, CHARITIES and INCORPORATION Even though the Church has an income in excess of £100,000 | note that the Church continues to operate under the excepted charities legislation which had been expected to end in March 2021 but due to the pandemic has been extended by 10 years. However regardless of the extension, | am assuming that the Church will have started to make preparations (if they haven't already done so) to apply for a new Charity number and presumably at that time change to a Charity Incorporated Organization (CIO) status
More and more Churches have started the process of changing to ClO status which is a new form of legal structure that is now available to charities that want to incorporate and Baptist Together have produced two Guideline Leaflets C11 and C12 for Churches who may be considering this option and there have been several WEBINARS on line which are still available ,
There are a number of advantages of adopting this status (eg.particularly protecting the Charity Trustees from Potential Personal Liability) but equally some disadvantages, as well as tricky areas such as Lease Backs. Endowments, Loans/Mortgages
Even when all the paperwork has been completed it is invariable that this the process takes some time so In order to avoid any additional costs such as having to undertake two sets of accounts in the same financial year, it is recommended that the new structure is put in place but not implemented until the close of the accounting year with the new Church charity operating from the first day of the subsequent year.
There is however some good news in this respect as most of the financial institutions (ie Banks) are now content for the charity to continue to operate with the same account numbers without the need to set up new accounts. The Inland Revenue are also content that Gift Aid declarations which have been made under the existing charity number can continue without the donor having to complete a new form.
GiFT AID RECOVERY
Gift Aid continues to be a valuable resource for any Church and since April 2016 the amount which can qualify for Small Cash Donations increased from £5000 to £8000 which means that the amount that Churches can claim has similarly increased from £1250.00 to £2000.00 pa and | note that the Church received the full entitlement in the year ending 31/12/20
- e However only cash payments from individuals who are unable to complete a gift aided declaration are eligible for this entitlement and whilst it is encouraging that some contributors will have switched their contributions during the pandemic to standing orders direct to the Bank by standing order or by using cheques neither of these methods qualify despite representations from charities to the HMRC
BANKING & INTEREST RATES
The Church banks with CAF Bank, where it operates a General and Deposit account and has £95K on deposit with the BAPTIST UNION which despite interest rates being at an all time low continues to offer a reasonable rate of return compared with many other financial institutions.
NEW WAYS of GIVING
The pandemic has resulted in many changes as to how people are conducting financial transactions with many donors particularly the younger generation tending to use their mobile phones and IPADS to do most of their banking. There are many New Ways of giving which are now being offered to Charities and Churches to keep pace with the changing lifeStyle. In this context Software suppliers have started to market MY GIVING APPS and CONTACTLESS donation terminals and although this may be some way off for many our Churches, | have no doubt that many of our larger congregations may well be considering introducing something similar in the very near future. The only reason that | mention this is that | am currently evaluating the various products which are available to Churches along with their cost and once | have concluded my investigations, | will happily send you the results of my findings. COMPUTER SYSTEM adequately| am not sure what system is used for the accounts and my viewis if it is doing the task easier then | see no reason for a change but anything to make the work of the person which is always welcome and there are a number of good software packages available have been specifically designed for Churches such as Data Developments PENSIONS
In Note 21 there is a detailed explanation of the Baptist Pension scheme and the Administers of the scheme produce a monthly update on the employers Hub which gives the deficiency payment required to settle the outstanding liability which at the 31% December had reduced to approx.£87900. Whilst it is hoped that deficit contributions to the fund will no longer be required beyond 2028 at the present time it still represents a significant figure
SUMMARY & RECOMMENDATION
In concluding my report may | now suggest that the examined accounts as prepared by Nicholas together with the Trustees Report Page 1-4 are agreed by the Trustees and signed in order that they can be filed on the CC website. May| take this opportunity of trusting God’ for His blessing on the fellowship especially in these continuing uncertain times
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Blessings
Mel J han
Hugh S Rodway ~/
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