**Charity registration number 1127325**
## **EASTLEIGH BAPTIST CHURCH**
## **ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 MARCH 2023**
## _REFERENCE AND ADMINISTRATIVE DETAILS_
Registered Charity Number 1127325
Principal Address: Eastleigh Baptist Church, Wells Place, Eastleigh SO50 5LJ
## **Deacons/Trustees:**
|David Ford|Minister, Team Leader and ex-officio trustee|appointed 01/09/2022|
|---|---|---|
|Christopher Walker|Youth Minister and ex-officio trustee||
|Emma Leggett|Church Operations Manager and ex-officio trustee||
|Toby Dodson|Community Minister and ex officio trustee||
|Bryan Zillwood|Treasurer||
|Paul Wilton|||
|Michael Dodd||stood down 27/04/2023|
|Sally James|||
|Sara Henry|||
|Angela Knight|||
|Jonathan Callen|||
|Maria Tennent||appointed 28/04/2022|
|Jason Collins||appointed 28/04/2022|
|Robert Ryder||appointed 28/04/2022|
|Peter Dodd||appointed 28/04/2022|
|Sian Whiffin||appointed 27/04/2023|
|Olufemi Bodede||appointed 27/04/2023|
|Charles (Tony) Harrison Church Secretary|Charles (Tony) Harrison Church Secretary|stood down 27/04/2023|
|Christine Leaman||stood down 28/04/2022|
|Alan Saunders||stood down 28/04/2022|
|Jennifer Symington||stood down 22/05/2022|
Trustees are nominated from the membership of Eastleigh Baptist Church by the Church Members. These names are then circulated to the membership two weeks before the Annual Church meeting together with a short profile of the individual being nominated. A secret ballot then takes place at the AGM with newly elected trustees being required to receive a majority vote in their favour. Trustees are appointed for a term of 3 years.
## **Property Trust:**
All the property owned by the Church is held in trust by The Baptist Union Corporation of Great Britain
## **Independent Examiner:**
F J Wilde FCCA MBA DChA Warner Wilde 4 Marigold Drive Bisley Surrey GU24 9SF
## **Bank:**
Lloyds Bank Eastleigh, Hampshire, SO50 9YT
Page 1
## **REPORT OF THE TRUSTEES for 1[st] April 2022 to 31[st] March 2023**
The Trustees present their report with the financial statements of the charity for 1[st] April 2022 to 31[st] March 2023.
The Trustees have adopted the provisions of the current Statement of Recommended Practice (SORP) (FRS102) "Accounting and Reporting by Charities".
## **OBJECTIVES AND ACTIVITIES**
## **Objectives**
_“The principal purpose of the Church is the advancement of the Christian faith according to the principles of the Baptist denomination. The Church may also advance education and carry out other charitable purposes in the UK and/or other parts of the world.”_
The Basis of the Baptist Union is:
_**1**_ That our Lord and Saviour Jesus Christ, God manifest in the flesh, is the sole and absolute authority in all matters pertaining to faith and practice, as revealed in the Holy Scriptures, and that each Church has liberty, under the guidance of the Holy Spirit, to interpret and administer His laws.
_**2**_ That Christian Baptism is the immersion in water into the Name of the Father, the Son, and the Holy Ghost, of those who have professed repentance towards God and faith in our Lord Jesus Christ who 'died for our sins according to the Scriptures; was buried, and rose again the third day'.
_**3**_ That it is the duty of every disciple to bear personal witness to the Gospel of Jesus Christ, and to take part in the evangelisation of the world.”
These principles have underlined all the Church has sought to do in the year (see narrative below).
## **RELATED PARTIES**
Churches Together in Eastleigh Baptist Union of Great Britain Evangelical Alliance
## **PUBLIC BENEFIT**
When planning Eastleigh Baptist Church programme of activities for the year, the Ministers & Trustees have considered the Charity Commission’s guidance on public benefit and the specific guidance to charities on the advancement of religion by:
- Offering people the opportunity to gather together for worship, prayer and teaching at our range of Sunday services as well as our programme of midweek meetings
- Providing pastoral care in a variety of ways e.g. visiting the sick, supporting families, providing practical help to people in need
- Delivering a discipleship programme through our network of small groups and church weekends.
- Offering imaginative programmes for the teaching of Youth & Children in parallel with other relevant events.
- Promoting and supporting mission activities whose primary objective is to proclaim Jesus Christ, Saviour and Lord and who show the faith, love and hope of Christ in action at home and abroad.
- Social Action involvement in the Community through membership of Churches Together in Eastleigh.
## **RISK MANAGEMENT**
The trustees have reviewed the work and activities of the church and the risks to which the church is open.
Page 2
## **ACTIVITIES 1[st] April 2022 – 31[st] March 2023**
In the Secretary’s report for 2021 – 22 our outgoing secretary commented on how the Covid pandemic had continued to affect the life of the church and the work it sought to undertake. As we reflect back on the last 12 months as trustees, whilst Covid may no longer be as disruptive to daily life, there are many external factors which have continued to both impact and challenge the life of EBC.
It is a testament to the dedication of all involved that we as a church have continue to move with extraordinary effort, inspiration, initiative and sheer hard work in pulling together to keep rebuilding a sense of community that was somewhat lost in the midst of the pandemic.
The nadir of the pandemic might be behind us but the subsequent challenges and changes to our habits and the wider implications for society continue to have an impact on the working of the church and Wells Place Centre. However, throughout these last 12 months we have seen green shoots bursting forth and blessing not only those within the congregation but the community of Eastleigh.
## **Church Membership**
As of 31[st] March 2023, the number of Church Members was 205 (with 212 members on 31st March 2022).
To put this into perspective we had:
2 Members promoted to glory, 19 member resignations
We were blessed with 14 new members this year.
We had the joy of 2 baptisms this year.
## **Ministry Team**
During the year the Rev. David Ford joined as Team Leader, taking up post on 1[st] Sept. 2022. His induction was held in October 2022.
The Ministry Team therefore now comprises of Rev Chris Walker (Youth Minister), Toby Dodson (Community Minister), Emma Leggett (Church Operations Manager)and Rev David Ford from 1[st] September 2022. (Tony Harrison stepped down from his role as Church secretary at the April AGM.
At the induction we were also able to offer our thanks and heartfelt gratitude to Rev. Jonathan Edwards as he stepped down from his role as Moderator after five years.
## **Leadership Team Changes**
The AGM was moved to April 27[th] 2023 but at that meeting we gave thanks for our two retiring deacons/trustees, Mike Dodd and Tony Harrison.
At the Church meeting & AGM, 27[th] April 2023 – Sian Whiffin, Femi Bodede and Paul Wilton (re-elected) were elected to serve as Deacons/Trustees on the Leadership Team.
## **Mission, Evangelism and Outreach**
_Supported Missions in 2022 - 23:_ BMS, Pamoja, OM and Compassion.
## **Wells Place Centre (Formerly Wells Place Centre CIC)**
The vision set out in 1996 for the Wells Place Centre was recorded as helping the church _“to fulfil its mission and aim and to play a vital part in the life of the community. It is envisaged as a place that is relevant to the needs of Eastleigh today and that seeks to remain so into the new millennium.”_
_“Wells Place Centre is an integral ministry of Eastleigh Baptist Church demonstrating the love of Jesus by serving the needs of the local community and beyond”_
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After one of the toughest times for many trading companies Wells Place, both the coffee shop and room hire have bounced back. The levels of footfall and income are still short of the pre-pandemic numbers but many customers have returned and new ones have found the space both welcoming and conducive for business and practical meetings.
The church’s decision to take Wells Place under the wing of EBC was implemented – the logistics and background work required for this was extraordinary and the Operations team, with considerable input from some expert volunteers worked tirelessly to ensure this did not affect the public facing work of WPC.
The coffee shop continues to be a place where ministry happens – Toby and his team, as well as a raft of volunteers ensure that anyone in the community can be assured of a warm welcome.
**Small Group Ministry** _–_ Our small groups have again done a vital job this year keeping our church family connected supported and providing pastoral care during another difficult season. Currently about half our congregation are part of a small group.
**Community Ministry –** Our Community Ministry Model has continued going from strength to strength over the last 12 months. It is one that seeks to meet people’s basic needs first and in so doing opens a door to be able to go on to share our faith. Many of these folk connect with us through referrals to the Recovery Stop, Choices course or through the Wells Place Coffee Shop. Another key feature of our work with them is the partnership we have with Christian and secular social action initiatives – CAP, Basics Bank, Street Pastors, ARK, Town Rangers, Two Saints, Safe Families for Children, Mens Activity Network and New Foundations...through whom we seek to bring the right kind of help in each different set of circumstances.
A new aspect of community ministry has seen several volunteers open up a Renew Well-being café where the strapline is: “It is ok not to be ok” and many people have found this another helpful space in which to find love and support.
Much of the benefit of this is not easily visible but is manifest in feeling ‘part of’ and in emerging esteem and confidence from those we serve.
## **Youth and Children’s Work**
## Junior Church
Starting with the youngest – we have come to recognise that we suddenly find ourselves surrounded by young babies and have begun the conversation with the church family as to the provision of creche for those youngest members of our family.
Twinklers (3 – 5 years) has continued to provide both a fun, safe and educational setting for children on a Sunday morning. Each week is planned and prepared to ensure both the leaders and the children have a wonderful time together.
## EPIC (School Y1 – Y6)
2022 – 23 was another fabulous year for EPIC. The numbers have continued to grow with attendance between 20 – 35 each week. The children have explored several themes including: finding your way around the Bible, Parables of Jesus, and The Lord’s Prayer.
Their Christmas theme culminated in the children leading the whole church on a Sunday morning with the Christmouse story where 26 children retold the nativity dressed as mice.
More than 20 adults have given their time and skills to helping this work grow.
## Youth Work (Y7 – Y13)
Our youth (both the the young people and also the leaders) have grown this year and shared many fantastic experiences. Big events such as Satellites (August 2022), youth weekend away (Oct. 22) were augmented by the regular activities; Pulse Lite and Pulse Heavy (Sunday mornings); Sunday night social (Sunday evenings – obviously); and #trending (Tuesday evenings) as well as one off socials such as fireworks evenings.
The team have worked tirelessly to ensure that the young people are made to feel valued, encouraged to grow and finding joy in socialising with people of all ages.
## **Easter 2022**
Page 4
Palm Sunday Service – Chris W led a service with the theme “Forsaken and Rejected”
Maundy Thursday – a reflective service exploring the question “Who do you say I am?”
Good Friday - We were able to join with Churches Together in Eastleigh for our usual ecumenical Good Friday service. This included following the story of Easter around various locations in the town.
Easter Sunday Sunrise Service from Eastleigh Lakes
Easter Sunday Service continued the theme of “Who do you Say I am?”
## **Christmas 2022 –** Theme ‘Presence’
For the first time in several years EBC hosted the Nativity Experience. This was built during the week of 14[th] November and opened to the public on 19[th] November.
Schools were invited in between 17[th] – 25[th] November. In total, with the schools, escape rooms and 19[th] November open day more than 2,000 people went through the Labyrinth.
Our advent theme of Presence was our theme for our Sunday morning services.
Highlights included our EPIC team leading the Christmouse story, Christmas Eve community carol service and a unique and joyful Christmas Day service.
## **Church Meetings**
In total, 8 church meetings were held to agree and decide matters of strategy, mission, staffing, property and expenditure.
At the Church Meeting 30[th] June 2022 the following policies were reviewed and agreed: Safe to Grow (children)
Safe to Belong (vulnerable adults)
## **Eastleigh Baptist Church Constitution changes**
At the Special Church meeting held on 2nd March 2023 it was agreed to accept revision of the Church Constitution (Governing Document) to change the date of the year end. The proposal was stated thus:
- **The church’s annual financial year will run from the 1[st] April to 31[st] March.**
This was accepted unanimously by the church meeting.
## **ACHIEVEMENTS AND PERFORMANCE**
The work of a church cannot be measured in numbers and "performance" no specific records of people helped each year are kept. Nonetheless the above narrative of activities, events, and involvement in community and social action is indicative of this part of God's church working well and largely meeting its aims and objectives for the long-term hope and future of individuals and families.
## **FINANCIAL REVIEW**
In our general budget for the year, we anticipated that our expenses would exceed our income by nearly £85k. This expected deficit was mainly due to the need to draw upon our reserves to purchase a larger manse for our incoming Ministry Team Leader and his family.
However, at the end of the year were able to report that our expenses only exceeded our income by approximately £2.5k. This significant reduction in our annual deficit was because we sold our previous manse for more than its valuation, we were able to purchase a larger manse for less than we had anticipated, and we received some very generous one-off donations. We are very grateful to the ‘manse search team’ who put in a remarkable amount of time and effort in researching and viewing properties when the housing market was so competitive, and found a great
Page 5
property at a great price in time for the arrival of our incoming minister and his family, with the wonderful help of a member of the church family who gave up their home temporarily to provide accommodation to bridge a small gap before the completion of the purchase.
We were delighted to have successfully concluded our search for a new Ministry Team Leader, with Revd David Ford’s appointment in September 2022. Obviously this has increased the church wage bill but we had only resumed this search on the receipt of pledges to meet 80% of the forecast budget deficit which included the additional staffing costs, so we asked the church family to make good on their pledges when we confirmed David’s appointment. It should be noted that these include a very generous single pledge of £100k which is being given over 5 years, so we know that we will have a significant increase to our budget deficit in a few years, and therefore we are already considering how we might address this.
The trading activity of the church as Wells Place Centre has picked up well since the impact of Covid pandemic and our decision to make Wells Place Centre CIC a dormant company. At the end of the financial year we were able to transfer £29k of trading profit into our general fund, which was another significant factor in the reduction of our budget deficit as we had only expected £7k of trading profit.
At the end of 31[st ] March 2023, the total value of funds held by the charity was £1,885,084. Of this total, £1,561,598 is in fixed assets (property, equipment and shares in Wells Place Centre CIC) and the remaining balance of £323,486 is represented by current assets and liabilities (cash at bank and debtors, less creditors).
## **Reserves policy**
Our reserves policy is to maintain at least £93k of unrestricted cash funds at the bank. The purposes of these reserves are:
1. To enable the Charity to continue relatively unaffected if there was a short term drop in income or increase in expenditure, or if there were some unforeseen and uninsured events
2. To enable the Charity to make decisions based on long-term planning, rather than be restricted by short-term cash flow restrictions.
At the end of the year we had just over £220k of unrestricted cash funds (including designated funds) in our accounts, which is £127k above our target level.
In addition to unrestricted cash funds, our accounts also held just over £49k of restricted funds at the end of the year.
Our reserves also include the value of the properties at 56 Desborough Road and 163 Passfield Avenue which together are valued just over £662k. 56 Desborough Road provides accommodation for our caretaker with one room used as a church office. 163 Passfield Avenue is our manse for providing our Ministry Team Leader and his family with accommodation which is a standard provision for a Baptist minister as part of their terms of appointment.
## **Principal funding sources**
Most of the income for the church is gifts from members and profit from our trading activity.
## **Pension Schemes**
In December 2020 our accredited ministers were enrolled into the Baptist Pension scheme, having previously had contributions paid into their own personal pension plans. All other staff are enrolled into the NEST pension scheme.
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
Eastleigh Baptist Church is located in Wells Place, Eastleigh and is a member of the Baptist Union of Great Britain. The church was founded in 1896 and was first registered as a charity under a charitable trust deed, Approved Governing Document (Constitution), adopted on 23[rd] October 2008 and updated on 17[th] March 2022.
## **ORGANISATION STRUCTURE**
Page 6
ORGANISATION STRiicfiJRE
mitiuted They also sevetal Othe[0¢10$ to disCUS5 Strd1eVISiOljary type Some Trvs*&% bave an
overseeing role for a portiaara$p¢et of th¢ clwrth's miDISIry.
Detail$ of traDsa¢ti¢)ns with related rArties are set out Rn the wt¢s to th¢
The MaDagin8 TnLStees proth aft anml predirtion of estimated eXpdite, comtIng and alktED8 gifts to the
chUh. TYclaiTnin8 tsx form HMRC on gift aided intoe. payin8 Stdff nthintaiDing the foM*ial accouats and
di$tributtDg monies to th¢)5e in need.
Day to day admini5tr8tion is Li£d out by a patd nmor *aff.
The M•)aging TnLStees have &8ses*d the majorrisks which the Cl)wch is ex and aTe satisfied thai systems are
in plac¢ to rnitigatc ¢XP05ur¢ to majoT rig Th¢* include having a ¢ompr¢IwIyc childprotr¢tion poli¢y. adults r5sk
policy, hu]th and safety policy aod Fire Policy.
All a[ volunteets who work regularly with djildten and adults at risk have a clear DBS check.
The Trn$tee's Report was appDvtyJ by the Tntytees on
2oz*.
and OD their bebalf by
Reyd David Ford (Ministerand TAtte)
Page 7
EASTLEIGH BAPTIST CHURCH
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF EASTLEIGH BAPTIST CHURCH
I report to the trustees on my examination ofthe finala1 statemen18 of Easlteigh Baptist Church (the Gharity) for
the year ended 31 March 2023.
Rospon81bllltle• and bas1¥ of r•port
As the trustees of the charity you ar8 r08rthsiblg for tt19 preparauon of the fingncial statam8nts In accordance
wlth tho requyements of the Charities Act 2011 (th8 2011 Act).
I report In respect of my examination of th8 ch•rW$ tlnanclal 6talements carrfad out under section 145 of th¢
2011 Act. In Carrng out my examination I have followed all the applKable Olr8ctkn8 gen by the Charfty
Commission under section 14515llbl of tho 2011 ACL
Independent examlnerfs ¥tatem•nl
Slnce the charlty's gros5 Income exceeded £250.000 your examlner must b8 a memb8r of a body Ilsled In
section 145 of the 2011 Act. I confim that l am qualified to undèrtak8 the gxamination b8c8U88 l am a mgmbgr of
the Association of Charterad Cèrbfwl AcL¥)untants. whlth is of tho listed bodkn.
Your attentlon Is drawn to the fact that th8 charrty has prepared financlal ststoments kn accordance vlth
A¢¢ountlng and Reporting by Charttles preparing their accounts in accordance wth the Financial Reporting
standard appllcablg In the UK and Republlc of Ireland (FRS 1021 in profarance to the AcLY)unling and Reporting
by Charities: Stslemenl of Rec¢Mnmended Pracliee Issued on 1 Aprfl 2005 which is referred to in tho extant
regulauons but has now been withdrawn.
understand that this has been done In order for flnandal statements to provklè a true and falr vl8w In
accordance with Ggnerally Accepted A¢¢ountirvJ Practlce effectrvti for roportlng perlod8 beglnnlng on or after 1
January 2015.
I have completed my examlnation. I confirn that no mattern have m8 to my attentlon Sn connacuon wlth the
¢x8mlnatlon glvlng me cause to bell8Vg that In any materlal respéct
accounting re¢ords were not kept In respect of tho drity as requlred by 8aCtlon 130 of the 2011 Act: or
the financial stslemgnts do not accord wtth th03e rocords; or
the financ4818tatements do not comply with the applicabl& requirements eon¢aming the forn and content of
accounts Set out In the Charfltes IA¢¢ounts arKI Reports) Regulations 2008 other than any requirernenl that
the accounts glve a true and falr view whlch i¥ not a matt8r consid8rad as part of an Indepandenl
6xamlnaUon.
I have no concems and have como acr088 no other mattern In ¢onngckn wllh the examinalkjn to which att&nllon
should be drawn in this report In order to enab a prop8r under8tandlro of the financlal slatomants to be
reathed.
F J Wllde FCCA MBA DChA
Wamer Wildg
4 Marigokl Drivo
Bisl•y
Surr8y
GU24 9SF
LOL
## **EASTLEIGH BAPTIST CHURCH**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 31 MARCH 2023**_
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2023**
**2023**
**Notes**
**£**
**£**
**Income from:**
Donations and legacies
**3**
339,711
35,343
Charitable activities
**4**
106,555
-
Investments
**5**
2,065
30
**Total income**
448,331
35,373
**Expenditure on:**
Raising funds
**6**
-
56
Charitable activities
**7**
388,625
40,655
**Total expenditure**
388,625
40,711
Gross transfers
between funds
-
-
**Net incoming/(outgoing)**
**resources**
59,706
(5,338)
**Other recognised gains and losses**
Revaluation of tangible
fixed assets
10,000
-
**Net movement in funds**
69,706
(5,338)
Fund balances at 1 April 2022
876,863
943,853
**Fund balances at 31 March**
**2023**
946,569
938,515|**Total Unrestricted**
**Restricted**
**funds**
**funds**
**2023**
**2022**
**2022**
**£**
**£**
**£**
375,054
357,788
2,438
106,555
58,216
-
2,095
18,215
1
483,704
434,219
2,439
56
2,016
-
429,280
397,444
26,485
429,336
399,460
26,485
-
13,000
(13,000)
54,368
47,759
(37,046)
10,000
111,532
-
64,368
159,291
(37,046)
1,820,716
717,572
980,899
1,885,084
876,863
943,853|**Total**
**2022**
**£**
360,226
58,216
18,216
436,658
2,016
423,929
425,945
-
10,713
111,532
122,245
1,698,471
1,820,716|
|---|---|---|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The current period is 12 months and the prior period was 15 months. This should be noted when considering comparative figures.
- 9 -
EASTLEIGH BAPTIST CHURCH
BALANCE SHEET
ASAT31 MARCH 2023
2023
2022
FIx8d assets
Tangible as58ts
11
1,1.598
1.525.272
Currnnt assèts
Debtors
Investments
Cash 81 bank and In hand
12
13
69.380
29.097
269.134
296.851
338.516
325.950
Cr•dltors: anUnts falllng du• wlthln
one year
14
115,0301
{8,3811
Net cuThent assets
323.486
317.569
Total as$8ts le$s currnnt liabillties
1.885,084
1.842,841
Cr•dllors: amounts falllng du• aft•r
mor& than one year
15
(18.700}
Provision$ for liabiliti
{3.4251
Net assets
1.885.084
1.820.716
Income funds
General restricted fur
Revaluation reserve
810.515
128.000
815,853
128.000
17
9M515
943.853
stri
General unrestn.cted funds
Revaluation serve
791.060
155,509
609.822
267,041
946.569
876.863
1.885.084
1.820.716
The financial statements were approved by the Trustees on ...
B Zillwood
Troa$uror
io-
## **EASTLEIGH BAPTIST CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **1 Accounting policies**
## **Charity information**
Eastleigh Baptist Church is an association, constituted 23 October 2008.
## **1.1 Accounting convention**
The financial statements have been prepared in accordance with the charity's governing document, the Charities Act 2011, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.
The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.
The financial statements are prepared in sterling , which is the functional currency of the charity . Monetary a mounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
## **1.2 Going concern**
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
## **1.3 Charitable funds**
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.
## **1.4 Income**
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
- 11 -
## **EASTLEIGH BAPTIST CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **1 Accounting policies**
**(Continued)**
## **1.5 Expenditure**
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
## **1.6 Tangible fixed assets**
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings 2%-5% on cost or valuation Fixtures and fittings 10%-20% on cost
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities .
## **1.7 Impairment of fixed assets**
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) .
## **1.8 Cash and cash equivalents**
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
## **1.9 Financial instruments**
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity 's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
- 12 -
## **EASTLEIGH BAPTIST CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **1 Accounting policies**
## **(Continued)**
## _**Basic financial assets**_
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
## _**Basic financial liabilities**_
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
## _**Derecognition of financial liabilities**_
Financial liabilities are derecognised when the charity ’s contractual obligations expire or are discharged or cancelled.
## **1.10 Provisions**
Provisions are recognised when the charity has a legal or constructive present obligation as a result of a past event, it is probable that the charity will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision i s measured at present value , the unwinding of the discount is recognised as a finance cost in net income/(expenditure) in the period in which it arises.
## **1.11 Employee benefits**
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
## **1.12 Retirement benefits**
The charity contributes to the Baptist Union Pension Scheme or the National Employment Savings Trust (NEST) for our ministers and other employees. Contributions payable are charged to the Statement of Financial Activities in the period to which they relate. See note 22 for further information on pension liabilities.
- 13 -
## **EASTLEIGH BAPTIST CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **2 Critical accounting estimates and judgements**
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
## **3 Donations and legacies**
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2023**
**2023**
**£**
**£**
Donations and gifts
339,711
35,343
**Donations and gifts**
Donations and Gifts
280,452
28,395
Gift Aid
59,258
6,948
Transfer of Activities
from Wells Place Centre
CIC
-
-
Other
1
-
339,711
35,343
**4**
**Charitable activities**
**EBC**
**WPC**
**2023**
**2023**
**£**
**£**
Sales within charitable
activities
3,621
61,123
G rants
-
-
Coffee Shop
-
27,037
Income from trading
-
14,774
3,621
102,934|**Total**Unrestricted
Restricted
funds
funds
**2023**
2022
2022
**£**
£
£
375,054
357,788
2,438
308,847
268,206
2,000
66,206
54,467
438
-
35,115
-
1
-
-
375,054
357,788
2,438
**Total**
**2023**
**EBC**
**WPC**
**2022**
**2022**
**£**
**£**
**£**
64,744
1,313
-
-
-
3,858
27,037
-
16,287
14,774
-
36,758
106,555
1,313
56,903|Total
2022
£
360,226
270,206
54,905
35,115
-
360,226
**Total**
**2022**
**£**
1,313
3,858
16,287
36,758
58,216|
|---|---|---|
||||
- 14 -
## **EASTLEIGH BAPTIST CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **5 Investments**
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2023**
**2023**
**£**
**£**
Rental income
-
-
Interest receivable
2,065
30
2,065
30|**Total**Unrestricted
Restricted
funds
funds
**2023**
2022
2022
**£**
£
£
-
17,500
-
2,095
715
1
2,095
18,215
1|Total
2022
£
17,500
716
18,216|
|---|---|---|
## **6 Raising funds**
||**Restricted**|Unrestricted|
|---|---|---|
||**funds**|funds|
||**2023**|2022|
||**£**|£|
|Fundraising and publicity|||
|Other fundraising costs|56|2,016|
||56|2,016|
- 15 -
## **EASTLEIGH BAPTIST CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **7 Charitable activities**
|Staff costs
Depreciation and
impairment
Missions and donations
Staff training and
expenses
Premises
Management and admin
Communications
Equipment
Outreach, youth and
children
Service resources and
events
Sundry expenses
Catering
Share of governance costs
(see note 8)
**Analysis by fund**
Unrestricted funds
Restricted funds|**EBC**
**2023**
**£**
154,513
29,773
27,881
15,842
85,807
11,317
1,921
2,070
17,658
6,964
-
-
353,746
1,713
355,459
314,804
40,655
355,459|**WPC**
**2023**
**£**
49,252
-
-
465
-
1,894
-
-
-
-
155
22,040
73,806
15
73,821
73,821
-
73,821|**Total**
**2023**
**£**
203,765
29,773
27,881
16,307
85,807
13,211
1,921
2,070
17,658
6,964
155
22,040
427,552
1,728
429,280
388,625
40,655
429,280|**EBC**
**2022**
**£**
167,831
73,418
35,997
16,829
50,139
11,094
2,168
1,740
4,841
7,431
-
-
371,488
3,387
374,875
348,390
26,485
374,875|**WPC**
**2022**
**£**
34,738
-
-
48
519
2,290
-
-
-
-
56
11,403
49,054
-
49,054
49,054
-
49,054|**Total**
**2022**
**£**
202,569
73,418
35,997
16,877
50,658
13,384
2,168
1,740
4,841
7,431
56
11,403
420,542
3,387
423,929
397,444
26,485
423,929|
|---|---|---|---|---|---|---|
- 16 -
## **EASTLEIGH BAPTIST CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
|**8**
**Support costs**
**Support**
**costs**
**Governance**
**costs**
**£**
**£**
Legal and professional
-
228
Independent Examiner
-
1,500
-
1,728
Analysed between
Charitable activities
-
1,728|**2023**
Support
costs
Governance
costs
**£**
£
£
228
-
2,122
1,500
-
1,265
1,728
-
3,387
1,728
-
3,387|2022
£
2,122
1,265
3,387
3,387|
|---|---|---|
Governance costs includes payments to the Independent Examiner of £ 1,500 including VAT for accounts preparation and independent examination (2022- £ 1,500, which was paid 2023/24 ) .
## **9 Trustees**
None of the trustees were reimbursed by the charity during the year for their work as trustees (2022: none).
Payments totalling £ 1,698 were paid during the year to 3 trustees in respect of reimbursed expenses (20 22 : £ 2,389 to 5 trustees , plus 1 trustee received a leaving gift to the value of £25). 3 trustees also received employment benefits totalling £5,815.
Remuneration is authorised under section 20 of the Constitution in respect of the Ministers who are also trustees. They may receive reasonable remuneration for their employment in the service of the church notwithstanding that they are trustees of the church. Employment and remuneration of other trustees is permitted under the Constitution with the approval of the Church Members’ Meeting.
The following amounts were paid:-
|The following amounts were paid:-|||
|---|---|---|
||Total 2023|Total 2022|
|Youth Minister - Christopher Walker|41,083|50,405|
|Community Minister - Toby Dodson|39,882|49,723|
|Operations Manager - Emma Leggett|34,182|36,411|
|Minister - David Ford|19,644|Nil|
## **10 Employees**
The average monthly number of employees during the year was:
|**2023**|**2022**|
|---|---|
|**Number**|**Number**|
|11|9|
- 17 -
## **EASTLEIGH BAPTIST CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
|**10**
**Employees**
**Employment costs**
Wages and salaries
Social security costs
Other pension costs|**(Continued)**
**2023**
**2022**
**£**
**£**
195,537
178,836
8,469
14,283
(241)
9,450
203,765
202,569|
|---|---|
In the 2022 accounts, a liability was recorded in respect of the BU pension scheme shortfall. As of June 2022, the scheme no longer had a shortfall so this liability was derecognised against other pension costs.
There were no employees whose annual remuneration was more than £60,000.
## **11 Tangible fixed assets**
|**Freehold land**
**and buildings**
**Fixtures and**
**fittings**
**£**
**£**
**Cost**
At 1 April 2022
1,562,000
149,833
Additions
435,000
1,099
Disposals
(380,000)
-
Revaluation
10,000
-
At 31 March 2023
1,627,000
150,932
**Depreciation and impairment**
At 1 April 2022
50,206
136,355
Depreciation charged in the year
24,640
5,133
At 31 March 2023
74,846
141,488
**Carrying amount**
At 31 March 2023
1,552,154
9,444
At 31 March 2022
1,511,794
13,478|**Total**
**£**
1,711,833
436,099
(380,000)
10,000
1,777,932
186,561
29,773
216,334
1,561,598
1,525,272|
|---|---|
T he church's main property was revalued as at 31 December 2019, by S Farndell MRICS and S Knight MRICS of Jones Lang Lasalle , on a fair value basis at £950,000 , which the trustees believe d to be a reasonable estimate of the value to the church . For depreciation purposes , the valuation has been apportioned £185,000 to the land and the remainder between the various buildings.
- 18 -
## **EASTLEIGH BAPTIST CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
|**12**
**Debtors**
**Amounts falling due within one year:**
Trade debtors
Other debtors
Prepayments and accrued income|**2023**
**£**
6,611
59,409
3,360
69,380|**2022**
**£**
9,037
17,191
2,869
29,097|
|---|---|---|
The significant increase in Other debtors as at 31st March 2023 is due to a gift aid claim for the period April 2022 to February 2023 of approximately £55,200, which was received in April 2023. **13 Current asset investments**
|**Notes**
Investments in subsidiaries
**20**
**14**
**Creditors: amounts falling due within one year**
Other taxation and social security
Trade creditors
Other creditors
Accruals and deferred income|**2023**
**£**
2
**2023**
**£**
3,433
613
5,157
5,827
15,030|**2022**
**£**
2
**2022**
**£**
2,262
-
3,243
2,876
8,381|
|---|---|---|
## **15 Creditors: amounts falling due after more than one year**
|Other creditors
**Provisions for liabilities**
Manse Rent|**2023**
**£**
-
**2023**
**£**
-|**2022**
**£**
18,700
**2022**
**£**
3,425|
|---|---|---|
- 19 -
## **EASTLEIGH BAPTIST CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **17 Restricted funds**
The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:
|**Balance at**
**1 April 2021**
**£**
Freehold property
944,550
Phase 2 Building Funds
24,695
Delvin Knower Mission Fund
4,197
Specific Charities and Misc Gifts
7,457
980,899|**Movement in funds**
**Incoming**
**resources**
**Resources**
**expended**
**£**
**£**
-
(23,063)
-
-
1
-
2,438
(3,422)
2,439
(26,485)|**Movement in funds**
**Transfers**
**Balance at**
**1 April 2022**
**Incoming**
**resources**
**Resources**
**expended**
**Balance at**
**31 March 2023**
**£**
**£**
**£**
**£**
**£**
(13,000)
908,488
12,507
(30,957)
890,038
-
24,695
-
-
24,695
-
4,197
12,531
-
16,728
-
6,473
10,335
(9,754)
7,054
(13,000)
943,853
35,373
(40,711)
938,515|
|---|---|---|
The Specific Charities and Miscellaneous Gifts Fund represents monies collected for other specific charitable causes and purposes. The restricted funds are held as bank balances, other than the freehold property .
The Phase 2 Building Fund represents donations held towards the building costs of phase 2 of the development of Wells Place Centre. The Delvin Knower Mission Fund is for funding of mission work, both home and abroad.
- 20 -
## **EASTLEIGH BAPTIST CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
|**18**
**Analysis of net assets between funds**
**Unrestricted**
**funds**
**Restricted**
**funds**
**2023**
**2023**
**£**
**£**
Fund balances at 31
March 2023 are
represented by:
Tangible assets
671,560
890,038
Current assets/
(liabilities)
275,009
48,477
Long term liabilities
-
-
Provisions
-
-
946,569
938,515|**Total**Unrestricted
funds
**2023**
2022
**£**
£
1,561,598
616,785
323,486
282,203
-
(18,700)
-
(3,425)
1,885,084
876,863|Restricted
funds
2022
£
908,487
35,366
-
-
943,853|Total
2022
£
1,525,272
317,569
(18,700)
(3,425)
1,820,716|
|---|---|---|---|
## **19 Related party transactions**
The following disclosable related party transactions occurred during the year - None.
## 2022:
T he church was charged £6,949 by Wells Place Centre CIC for the use of the photocopier, utilities and other facilities, against which the peppercorn rent of £700 and other charges of £37 were offset.
The son of a trustee, Paul Wilton, served as an unpaid intern with our Youth Minister. He was reimbursed £225 for various expenses incurred while working in this capacity.
The wife of a trustee, Paul Wilton , was employed by Wells Place Centre on a salary commensurate with her role and was made redundant in September 2021, receiving a redundancy payment of £2,601.
The wife of a trustee, Michael Dodd, served as a worship leader in the church and was reimbursed £150 in training expenses for this role.
## **20 Subsidiaries**
These financial statements are separate charity financial statements for Eastleigh Baptist Church.
Details of the charity's subsidiaries at 31 March 2023 are as follows:
|**Name of undertaking**|**Registered**|**Nature of business**|**Class of**|**% Held**|
|---|---|---|---|---|
||**office**||**shares held**|**Direct Indirect**|
|Wells Place Centre CIC|UK|Dormant|Ordinary|100.00 100.00|
The aggregate capital and reserves and the result for the year of subsidiaries excluded from consolidation was as follows:
|**Name of undertaking**|**Profit/(Loss)**|**Capital and**|
|---|---|---|
|||**Reserves**|
||**£**|**£**|
|Wells Place Centre CIC|0|2|
- 21 -
## **EASTLEIGH BAPTIST CHURCH**
**NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **20 Subsidiaries**
**(Continued)**
Wells Place Centre CIC is a dormant company as at 31 March 2023, the activity and assets having been transferred to Eastleigh Baptist Church during the prior accounting period.
- 22 -
**EASTLEIGH BAPTIST CHURCH**
**NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **21 Pensions**
The Church is a participating employer the Baptist Pension Scheme (“the Scheme”), which is a separate legal entity administered by the Pension Trustee (Baptist Pension Trust Limited). The assets of the Scheme are held separately from those of the Employer and the other participating 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 Broadstone Corporate Benefits Ltd. 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 if 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 contributions of 5% of Pensionable Income, and their employers also pay a total of 5%.
The Scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. Because it is not possible to attribute the Scheme’s assets and liabilities to specific employers, the scheme is accounted for as if the Scheme were a defined contribution scheme.
## **Actuarial valuation as at 31 December 2019**
A formal valuation of the DB Plan as at 31 December 2019 was carried out by a professionally qualified Actuary using the Projected Unit Method. At the valuation date the market value of the DB Plan assets was £298 million, 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 the other participating 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**|**% p.a.**|
|---|---|
|RPI price inflation assumption|3.20|
|CPI price inflation assumption|2.70|
|Minimum Pensionable Income Increase Adjustment (above CPI)|0.50|
|Pre-retirement assumed investment returns (gilt yield plus 1.75% pa)|2.95|
|Post retirement assumed investment returns (including benefits
matched by the insurance policy) (gilt yield plus 0.5% pa)|
1.70|
|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 annual floor of 0% and annual cap of 5%|2.70|
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% p.a. for males and 1.5% p.a. for females with the core smoothing parameter and with additional initial mortality improvement factor A=0.5%.
- 23 -
## **EASTLEIGH BAPTIST CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **22 Pensions (continued)**
## **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. Following the 2019 valuation a Recovery Plan was signed in September 2020 under which deficiency contributions are payable until June 2026. These contributions were broadly based on each employer's membership at 31 December 2014 and increase annually in line with increases to Minimum Pensionable Income as defined in the Rules.
On 30th June 2022 the Baptist Pension Scheme signed an agreement with the insurance company Just Group (“Just”) to secure DB Plan members’ pension benefits. Just are now providing financial backing for all pensions provided through the Scheme’s DB Plan and following this transaction, the Scheme no longer has a shortfall. An updated Recovery plan was then signed in August 2022 under which recovery contributions from each participating employer in the DB Plan reduced to £1 per month from August 2022.
- 24 -