Mutley Baptist Church Annual Report for 2021
Name of the Charity :
Mutley Baptist Church
Charity registration number :
1127079
Registered Address :
Mutley Plain Plymouth PL4 6LB
Trustees:
Rev N Lear (Minister) – appointed 01/06/2021 Mr M Bailey (Church Secretary) – appointed 01/01/2022 Mr J Dawes Mr T Frost Dr A Gaston Mr T Provost Mrs P Shelmerdine Mrs J Siney – resigned 31/12/2021 Mrs F Spicer – resigned 31/12/2021 Mrs J 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 ME19 4TA
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Mutley Baptist Church
Annual Report for 2021
Independent Examiner :
Ian Barrett FCA FCIE
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 (MBC) occupies premises which are held by the South West Baptist Trust Corporation Ltd, on Trusts which are entirely compatible with the above object. The Minister also occupies premises which are held by the Baptist Union Corporation Limited, on Trusts which are entirely compatible with the above object.
Organisational Structure and Decision-making processes :
Members of MBC 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 Trustees who, together with the Minister, Church Secretary and Treasurer (collectively known as the Eldership) 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.
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Mutley Baptist Church
Annual Report for 2021
Central to the work and witness of the church is the provision of regular public services of Christian worship, primarily on Sundays at 10.00am and 6.00pm and at Easter and Christmas. There is a full programme for children and young people during the 10.00am Sunday service, and also on Thursday evenings in different groups for 5-18 year olds. On most days during the week there are activities for children, for parents with babies and toddlers, and on Thursdays for families as a whole, with food and refreshments available at teatime. Broadcasting of the 10.00am Sunday service on ‘Zoom’, introduced at the start of lockdown, has continued as a way of allowing those unable to attend in person to participate.
Members of the church are active participants in the operation of the Soup Run serving the homeless and street folk of the city of Plymouth, and in supplying Street Pastors on Saturday evenings to give reassurance and assist where needed in the city’s busy nightlife hotspots. On Mondays and Thursday the church premises are used for Bigger Table, providing a hot drink and a meal to the vulnerable, lonely and homeless along with a warm welcome and a listening ear, and the opportunity for prayer if desired. Those attending can also seek financial advice from Money Focus, who have an office within the church, and can arrange longer appointments where complex situations are listened to, investigated and analysed. They may also receive a food parcel once a week from our larder which is restocked by voluntary donations and a subscription from ‘Fare Share’ in Plymouth.
The church runs a series of weekly evening house groups for the growth of faith and discipleship in the homes of some members. Again, continuing the use of ‘Zoom’ has allowed people who can’t physically get there to stay involved and in touch. A Pastoral Team meets weekly to co-ordinate contact with the elderly, sick and lonely members of the fellowship through hospital visits, home visits, phone calls, emails and the sending of cards.
Although primarily serving the needs of the local community in and around Mutley, MBC continues to support a number of missionaries overseas, some financially and all prayerfully. In 2021, couples supported were serving in Uganda, South Africa, Papua New Guinea, Indonesia, China, Nepal and the Middle East.
Achievements and Performance :
2021 started with Covid-19 lockdown restrictions still in force and with a church membership of 202. MBC staff were either working from home or on the furlough scheme. The 10.00am Sunday service was being broadcast on ‘Zoom’ and also recorded for viewing later that day on YouTube. The various house groups were also meeting online via ‘Zoom’. The church was still without a Minister and was being moderated by the Rev. Carl Smethurst of the South West Baptist Association (SWBA). The Rev. Nick Lear had accepted an invitation to become the new Minister but due to his employment as a Regional Minister with the Eastern Baptist Association was not able to start at MBC until the beginning of June.
As lockdown restrictions eased the church premises gradually started to be used again, with appropriate health and social distancing measures in place. The provision of hot drinks and meals on Thursday
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Mutley Baptist Church
Annual Report for 2021
lunchtimes for vulnerable people recommenced, initially on a takeaway basis. With the help of a grant the opportunity was taken to install racking at the back of the church hall to create a well-stocked food bank, open on Monday and Thursday lunchtimes, and publicised along with the hot meal as the Bigger Table. This started in February and has proved very popular in serving the needs of some of Mutley’s poorer residents. The Sanctuary reopened for Sunday morning worship on 18 April, with a requirement to either book ahead online or sign-in on arrival to comply with NHS Test and Trace protocols. The use of hand sanitiser on arrival was encouraged (and still is) and ample social distancing was put in place, a one-way system, mandatory face coverings and no singing. The Sunday evening meeting – The Gathering – recommenced downstairs in the GreenSpace premises on Mutley Plain.
The church manse in Hartley Park Gardens was a large older property, expensive to maintain and heat, and a decision was taken in 2020 to dispose of it. In March the sale was completed and the sub-team responsible then turned their attention to purchasing a newer, smaller manse better suited to the number of occupants. A detached bungalow was found in the Derriford area of the city which ticked all the boxes apart from its proximity to the church. Properties nearer the church were in short supply, were mainly older buildings and generally more expensive so with the available budget now known, and with the arrival on 1 June of our new Minister, it was decided to press ahead with the purchase, which was duly completed on 8 June. Members of the sub-team were able to redecorate and make repairs where necessary before Nick and wife Sally moved in.
MBC continues to take the issue of safeguarding extremely seriously and a new Safeguarding Policy to incorporate adults at risk as well as children and young people into the same Policy was drafted, and subsequently endorsed and adopted by the church membership. Volunteers and leaders wanting to work with these groups are appropriately vetted by the Disclosure and Barring Service.
Prompted by new food labelling legislation coming into force in October, new Kitchen and Food Safety policies were introduced to ensure hygiene standards are adhered to and maintained. The kitchen has now been awarded a Level 5 Food Hygiene rating.
Other notable achievements during the year were the installation of a new phone and broadband system, for improving communication within the premises and for church mobile phones, and the replacement of the fire alarm system, along with an updated Fire Policy. Rooms within the church building are often hired out to external customers and a new room booking system was introduced to simplify the fee structure, ensure consistency and adequately cover the overheads involved, and provide a transparent record of all bookings. Heating such a large old building has proved problematic over the years and a long-overdue new boiler was installed for the Spurgeon Hall.
The year ended with the church membership down by a quarter to 147. After the difficulties of the previous two years it was felt that things were now starting to turn around, and with a new Minister now in post, resident in a new manse, green shoots of recovery were appearing.
Financial Review :
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Mutley Baptist Church Annual Report for 2021
MBC continues to raise the majority of the funds needed to carry on its activities from within its own membership and congregation. Staff salaries remain the most significant item of expenditure and relate to those of the Minister, pastoral support team and office staff. MBC is heavily dependent on members 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 achieving its objectives.
The financial results for the year, together with a summary of the accounting policies adopted are set out in the accompanying financial statements, but the bottom line for 2021 was a deficit of around £12,000.
The amount of maintenance, repair and renewal required during the year was considerable, such as the need for a new boiler and a new fire alarm system, as referred to above. Consequently the membership approved an interest-free loan from SWBA of £30,000, repayable over 15 years at £2,000 per year, to cover the cost of this work, with the residue going into the buildings and maintenance pot for future use.
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.
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MUTLEY BAPTIST CHURCH STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2021
| Income Donations and legacies Investment income Income from charitable activities Government grants Profit on disposal of Manse Total income and endowments Expenditure Expenditure on raising funds Charitable activities -restricted/unrestricted Charitable activites - endowment Total expenditure Net income before defined benefit funding plan charge Actuarial gains and (losses) on defined benefit scheme Net income Movement in funds Total funds brought forward Net incoming resources Transfers Total funds carried forward Endowment Designated |
Notes Unrestricted Restricted/ Total Total Endowment/ Designated 2021 2020 £ £ £ £ 2 175,730 3,907 179,637 171,901 3 2,007 138 2,145 2,545 4 9,296 - 9,296 9,118 5 5,096 - 5,096 - - 284,465 284,465 - £192,129 £288,510 £480,639 £183,564 - - - - 6 205,523 4,011 209,534 195,887 6 - - - - 205,523 4,011 209,534 195,887 (£13,394) £284,499 £271,105 (£12,323) 21 £609 - £609 £10,765 (£12,785) £284,499 £271,714 (£1,558) Endowment/ Unrestricted Restricted/ Total Total Designated 222,555 113,196 1,672 337,423 338,980 £284,603 (£12,785) (£104) £271,714 (£1,558) (£141,875) £141,875 - - - £365,283 £242,286 £1,568 £609,137 £337,422 1 365,282 £365,283 |
|---|---|
The notes on pages 7 to 14 form part of these accounts
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MUTLEY BAPTIST CHURCH BALANCE SHEET 31 December 2021
| MUTLEY BAPTIST CHURCH BALANCE SHEET 31 December 2021 |
|||||
|---|---|---|---|---|---|
| Notes | 2021 | 2020 | |||
| £ | £ | £ | £ | ||
| Fixed Assets | |||||
| Tangible fixed assets | 11 | 411,892 | 167,194 | ||
| Current Assets | |||||
| Debtors repayable in next 12 months | 12 | 29,872 | 13,025 | ||
| Bank and cash balances | 13 | 217,687 | 182,843 | ||
| 247,559 | 195,868 | ||||
| Current liabilities | |||||
| Creditors: amounts falling due within one year | 14 | 5,184 | 4,113 | ||
| Net current assets | 242,375 | 191,755 | |||
| Creditorsdue in more than 12 months | 15 | (27,829) | - | ||
| Net assets excluding pension liabilities | £626,438 | £358,949 | |||
| Defined benefit scheme liability | 21 | £17,301 | £21,526 | ||
| Total net assets | £609,137 | £337,423 | |||
| Charitable Funds | |||||
| Endowment | 17 | 1 | 1 | ||
| Designated | 18 | 365,282 | 222,554 | ||
| Unrestricted | 242,286 | 113,196 | |||
| Restricted | 19 | 1,568 | 1,672 | ||
| £609,137 | £337,423 |
The notes on pages 7 to 14 form an integral part of these accounts. These accounts were approved by the Trustees on and signed on their behalf by
Trustee
Secretary
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MUTLEY BAPTIST CHURCH NOTES TO THE ACCOUNTS year ended 31 December 2021
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 2021
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:
| Depreciation on other fixed assets useful life, at the following rates: |
is calculated to write of | the cost on a straight-line basis | over their exp |
|---|---|---|---|
| Freehold land | Nil | Building improvements | 4% |
| Organ | 5% | Equipment | 10% -20% |
| Fixtures and fittings | 10% |
l 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:
Unrestricted funds
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 due. 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 Offerings Tax refunds Legacies Total |
Unrestricted Restricted 2021 2020 £ £ £ £ 143,637 3,907 147,544 145,258 32,093 - 32,093 24,643 - - - 2,000 £175,730 £3,907 £179,637 £171,901 |
|---|---|
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 2021
| 3 Investment income | Unrestricted | Designated | 2021 | 2020 | ||
|---|---|---|---|---|---|---|
| Bank interest | 407 | 138 | 545 | £472 | ||
| Rental income | 1,600 | - | 1600 | 2,073 | ||
| £2,007 | £138 | £2,145 | £2,545 | |||
| 4 Incoming resources from charitable activities | Unrestricted | Restricted | 2021 | 2020 | ||
| Event and room hire | £ 6,523 |
£ - |
£ 6,523 |
£ 5,668 |
||
| Youth and families | 2,693 | - | 2,693 | 3,235 | ||
| Other incoming resources | 80 | - | 80 | 215 | ||
| Total | £9,296 | - | £9,296 | £9,118 | ||
| 5 Government grants | ||||||
| Government grants received during Covid-19 | pandemic | Unrestricted £5,096 |
Restricted - |
2021 £5,096 |
2020 - |
|
| 6 Charitable Activities | ||||||
| Ministry | Unrestricted £ |
Restricted/ Designated £ |
2021 £ |
2020 £ |
||
| Salaries, wages and visiting preachers | 58,194 | - | 58,194 | 50,063 | ||
| Manse costs and rental | 2,076 | - | 2,076 | 1,139 | ||
| Expenses | 720 | - | 720 | 1,115 | ||
| Removal costs | 3,798 | - | 3,798 | - | ||
| Support costs | Note 9 | 33,221 | - | 33,221 | 38,362 | |
| Pension fund deficit finance cost | Note 21 | 79 | - | 79 | 563 | |
| £98,088 | - | £98,088 | £91,242 | |||
| Mission | ||||||
| Youth and family | 5013 | - | 5,013 | 6,043 | ||
| Other local community support | 7,471 | 1,531 | 9,002 | 2,015 | ||
| Grants made | Note 8 | 39,020 | 480 | 39,500 | 40,626 | |
| £51,504 | £2,011 | £53,515 | £48,684 | |||
| Establishment | ||||||
| Salaries and wages | 18,740 | - | 18,740 | 18,429 | ||
| Heat light and water | 13,871 | - | 13,871 | 12,109 | ||
| Insurance | 7,563 | - | 7,563 | 7,270 | ||
| Council Tax | 1,533 | - | 1,533 | 1,460 | ||
| Repairs and maintenance | 10,182 | 2,000 | 12,182 | 8,560 | ||
| Depreciation | 4,042 | - | 4,042 | 8,132 | ||
| £55,931 | £2,000 | £57,931 | £55,960 | |||
| Total | £205,523 | £4,011 | £209,534 | £195,886 | ||
| 7 Total resources expended | ||||||
| Ministry | Charitable activities £ 64,867 |
Grant Funding £ - |
Support costs £ 33,221 |
Total 2021 £ 98,088 |
Total 2020 £ 91,242 |
|
| Mission | 14,014 | 39,500 | - | 53,514 | 48,684 | |
| Establishment | 57,931 | - | - | 57,931 | 55,960 | |
| Cost of generating funds | - | - | - | - | - | |
| Governance costs- independent examination | - | - | - | - | - | |
| £136,812 | £39,500 | £33,221 | £209,534 | £195,886 |
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MUTLEY BAPTIST CHURCH NOTES TO THE ACCOUNTS (continued) year ended 31 December 2021
8 Grants payable
| MUTLEY BAPTIST CHURCH NOTES TO THE ACCOUNTS (continued) year ended 31 December 2021 8 Grants payable |
|||||
|---|---|---|---|---|---|
| Unrestricted | Restricted/ | Total | Total | ||
| 2021 | 2020 | ||||
| £ | £ | £ | £ | ||
| Local | 11,500 | - | 11,500 | 10,500 | |
| Baptist Missionary Society | 4,020 | 480 | 4,500 | 4,426 | |
| Home Mission | 4,500 | - | 4,500 | 4,200 | |
| Full time overseas | 19,000 | - | 19,000 | 21,500 | |
| £39,020 | £480 | £39,500 | £40,626 | ||
| 9 Support costs | |||||
| Administrative staff | Unrestricted £ 16,029 |
Restricted/ £ - |
Total 2021 £ 16,029 |
Total 2020 £ 16,130 |
|
| Telephone and postage | 2,800 | - | 2,800 | 2,676 | |
| Printing and stationery | 1,970 | - | 1,970 | 2,206 | |
| Internal organisation costs | 8,350 | - | 8,350 | 8,713 | |
| Equipment and web services | 835 | - | 835 | 6,584 | |
| Conferences, events and training | 675 | - | 675 | 1,068 | |
| Hospitality at events | 1,763 | - | 1,763 | 650 | |
| Sundry expenses | 799 | - | 799 | 335 | |
| £33,221 | - | £33,221 | £38,362 | ||
| 10 Staff costs and transactions with trustees | |||||
| Salaries and wages | 2021 £ 86,324 |
2020 £ 76,181 |
|||
| Social security costs | - | - | |||
| Pension costs | Note 21 | 6,539 | 6,533 | ||
| Other costs | 2,076 | 1,139 | |||
| Total | £94,939 | £83,853 | |||
| The average number of full time equivalent employees was | 5 ~~5~~ |
4 |
No employee received emoluments in excess of £60,000 during the year (2020 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 2021 was £17,794 (2020 £16,890 ) and is approved by independent trustees.
No sums were reimbursed to Trustees for their work as Trustees (2020 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 £32,120 (2020 £26,549). No conditions were attached.
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MUTLEY BAPTIST CHURCH NOTES TO THE ACCOUNTS (continued) year ended 31 December 2021
11 Tangible Fixed Assets
| 11 Tangible Fixed Assets | |||||
|---|---|---|---|---|---|
| Church | Building | Manse | Fixtures/ | Total | |
| Premises | Improve- | Organ | |||
| ments | Equipment | ||||
| Cost | |||||
| 01 January 2021 | 1 | 61,730 | 134,396 | 52,151 | 248,278 |
| Additions | - | - | 365,282 | 10,926 | £376,208 |
| Disposals | - | - | (£134,396) | - | (£134,396) |
| 31 December 2021 | £1 | £61,730 | £365,282 | £63,077 | £490,090 |
| Depreciation | |||||
| 01 January 2021 | - | 40,288 | 6,928 | 33,868 | 81,084 |
| Charge for the year | - | (£743) | - | 4,785 | 4,042 |
| Disposals | - | - | (£6,928) | - | (£6,928) |
| 31 December 2021 | - | £39,545 | - | £38,653 | £78,198 |
| Net Book value | |||||
| 31 December 2021 | £1 | £22,185 | £365,282 | £24,424 | £411,892 |
| 30 December 2020 | £1 | £21,442 | £127,468 | £18,283 | £167,194 |
| All of the fixed assets are used for direct charitable purpose | |||||
| The church premises are insured for | £8,992,215 the Lodge for | £153,669 and the | Manse for £369,383. |
12 Debtors
| Gift Aid Prepayments Other 13 Bank and cash balances CAF General funds deposit account Baptist Union New Ministries deposit accounts Mission Youth Buildings Families Fx account Live Wires Cash 14 Creditors: amounts falling due within one year South West Baptist Association Memorial Fund loan for manse Accruals Other creditors |
2021 2020 £ £ 23,594 6,804 6,229 6,014 49 207 £29,872 £13,025 2021 2020 £ £ 418 6,800 117,286 45,361 49,534 95,087 206 2,206 16,325 16,325 11,087 9,577 17,122 1,690 3,544 3,544 1,772 1,830 304 334 89 89 £217,687 £182,843 2021 2020 £ £ 2,004 - 3,180 4,113 - - £5,184 £4,113 |
|---|---|
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MUTLEY BAPTIST CHURCH NOTES TO THE ACCOUNTS (continued) year ended 31 December 2021
2021 2020 £ 27,829 -
15 Creditors: amounts due in more than 12 months
South West Baptist Association Memorial Fund loan for manse
The loan is interest free and repayable over 15 years
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 freehold 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
| 17 Endowment Funds | ||
|---|---|---|
| Church premises | 2021 2020 £ £ £1 £1 |
|
| In addition the contingent asset detailed in note 16 is considered part of the Endowment Funds | ||
| 18 Designated funds | ||
| Manse reserve at 1 January 2021 | 2021 2020 £ £ 222,554 223,501 |
|
| Interest on manse reserve deposit with Baptist Union | 138 312 |
|
| Profit on disposal of Manse | 284,465 - |
|
| Additions less depreciation on manse fixtures | - (£1,259) |
|
| Transfer to unrestricted reserves | (£141,875) - |
|
| Manse reserve at 31 December 2021 | £365,282 £222,554 |
|
| 19 Restricted Funds | ||
| Designated donations to third party charities | Brought Incoming forward resources - 480 |
Resources Carried expended Forward 480 - |
| Designated donations church activities | 1,531 3,427 |
3,531 1,427 |
| Mexico Mission | 141 - |
- 141 |
| £1,672 £3,907 |
£4,011 £1,568 |
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 2021 as shown above.
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MUTLEY BAPTIST CHURCH NOTES TO THE ACCOUNTS (continued) year ended 31 December 2021
| 20 Analysis of net assets Funds: Endowment Note 17 Designated Note 18 Restricted Note 19 Unrestricted |
Defined benefit Fixed Investment Current scheme Total Assets Assets Assets liability 1 - - - 1 365,282 - - - 365,282 - - 1,568 - 1,568 46,609 - 212,978 (£17,301) 242,286 £411,892 - £214,546 (£17,301) £609,137 |
|---|---|
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 and 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 of the 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.
| The key financial assumptions underlying the valuation were as follows: | |
|---|---|
| Type of assumption | %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 RPI) | |
| 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 |
13
MUTLEY BAPTIST CHURCH NOTES TO THE ACCOUNTS (continued) year ended 31 December 2021
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.
| Balance sheet liability at start of year Minus deficiency contributions Interest cost (recognised in SOFA) Remaining change to balance sheet liability (recognised in SOFA) Balance sheet liability at year end The liability represents the present value of the deficit contributions agreed as valued using the following assumptions set by reference to the duration of the Discount rate Future increases to Minimum Pensionable Income |
2021 2020 21,526 34,452 (£3,695) (£2,724) 79 563 (£609) (£10,765) 17,301 £ 21,526 £ at the accounting date and has been defict recovery payments: 2021 2020 2019 0.4% 0.4% 2.2% 3.0% 3.0% 3.1% |
|---|---|
The church has been advised that the cost for the church to buyout their Pension Scheme liabilities at 20 December 2021 was approximately £50,761 (2020 £87,900)
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
| Cash flows from operating activities Net income Adjustments for: - depreciation - profit on disposal of manse - interest and other income from investments - (increase)/decrease in debtors - (decrease)/increase in creditors Net cash provided by operating activities Cash flows from investing activities Interest received Proceeds from sale of manse Expenditure on new manse and other fixed assets Cash inflows/ (outflows) from financing activities Net bank loans granted/ (repaid) Net increase/( decrease) in cash and cash equivalents Cash equivalents at beginning of year Cash equivalents at end of year |
2021 2020 £ £ £271,714 (£1,558) £4,042 £8,132 (£284,465) - (£2,145) (£2,545) (£16,847) £1,616 (£5,158) (£10,363) (£32,859) (£4,718) £2,145 £2,545 £411,933 - (£376,208) - £37,870 £2,545 £29,833 - £34,844 (£2,173) £182,843 £185,016 £217,687 £182,843 |
|---|---|
14
Independent Examinerfs Reportto theTee5 of Mutley Baptlst Church Charlty no. 1127079 I report to the trustees on my examination of the accountsof Mutley Baptist Church (the Church) for the year ended 31. December 2021. Responslbllltles and basls of the report As the charlty trustees of the church you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (the Act). I report In respect of my examination of the church's accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Direction5 given by the Charity Commission under section 14515llb) of the Act. Since the church's gross income exceeded £250,0 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that l am qualified to undertake the examination because l am a member of the Institute of Chartered Accountants in England & Wales and the Association of Charity Independent Examiners. both of which are listed bodies. Independent examlnerf5 Statement I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any mateFial respect: l. Accounting records were not kept in respect of the church as required by settion 130 of the Act; or 2. The accounts do not accord with those records,. or 3. The accounts do not comply with the applicable requirements concerning the form and content of the accounts set out in the Charities {Accounts and Reportsl Regulations 2008 otherthan any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination. I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understa of the accounts to be reached. lan Barrett FCA FCIE Barretts Chartered Accountants and Chartered Tax Advisers 22 Union Street Newton Abbot TQ12 2JS 20 October 2022