**Charity registration number 1127325** ## **EASTLEIGH BAPTIST CHURCH** **ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024** ## **EASTLEIGH BAPTIST CHURCH** ## **CONTENTS** ||**Page**| |---|---| |Trustees' report|1 - 9| |Independent examiner's report|10| |Statement of financial activities|11| |Balance sheet|12| |Notes to the financial statements|13 - 26| REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity Number 1127325 Principal Address: Eastleigh Baptist Church, Wells Place, Eastleigh SO50 5LJ ## **Deacons/Trustees** : Rev David Ford - Minister, Team Leader and ex-officio trustee Rev 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 Michael Dodd – stood down 27/04/2023 Charles (Tony) Harrison - Church Secretary – stood down 27/04/2023 Paul Wilton Sally James Sara Henry Angela Knight Jonathan Callen Maria Tennent Jason Collins Robert Ryder Peter Dodd Sian Whiffin - appointed 27/04/2023 Olufemi Bodede - appointed 27/04/2023 Lynette Bright – appointed 25/04/2024 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 1 ## **REPORT OF THE TRUSTEES for 1st April 2023 to 31st March 2024** The Trustees present their report with the financial statements of the charity for 1st April 2023 to 31st March 2024. 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’s 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. 2 - 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. ## **ACTIVITIES 1st April 2023 – 31st March 2024** The Secretary’s report for 2023-2024 reflected God’s blessing and provision for the church. The Lent course in 2023 explored the idea of setting agreed values that would sit along-side our God-given vision of being family. This allowed us to adopt 6 values of Listening, Relationships, Welcoming, Recognising, Seeking and Discipleship, all core to being family to each other, and the community of Eastleigh. The year involved Easter 2023 celebration with well supported services, the re-introduction of Sunday evening services from September to February allowing smaller and more informal gatherings, and an incredibly busy Christmas Season. The theme this year was ‘Unbelievable’ Christmas, designed to encourage deeper exploration of the nativity story. The nativity labyrinth encouraged school children to visit over a 3-week period and was the location for 33 Escape Room sessions held in the evenings. This allowed church family to invite friends and family to discuss the Christmas Story. Outreach Community Labyrinth Saturday was a huge success, with over 1,000 people walking through the front doors of the church, being made to feel very welcome. A range of activities included a craft area, prayer table, coffee shop facilities. We also opened our doors and hosted a few market stalls indoors, following short notice of the main Christmas Lights Switch-on events being cancelled due to adverse weather. Christmas was celebrated with Carol Services, and a Christmas Day service, and a ‘Thank You’ to the volunteers Evening which included a quiz, canapes and mocktails, served by the Leadership and Trading Management Teams. The year saw significant changes to the coffee shop with the details being provided under Wells Place Centre changes contained within the report. Gradual growth for the church was experienced, with the volume of children and young people requiring significantly more volunteers. A manned creche was also reintroduced on Sunday mornings. Special events included a Coronation Cream Tea, Days of Plenty Barn Dance and a Harvest Sunday lunch. September 2023 saw discussions around Desborough Hall commence as the hall is well used by the church and room hire to customers, but the Hall has a limited lifespan. There is no 3 specific plan in place currently with regards to how this project will move forward, but large projects of this nature do require full engagement from the whole the church and require a structured approach to manage a project of this size. This will take years to complete. September 23 to January 24 saw a series of monthly prayer events being hosted at different churches across the town, with the aim of soaking different outreach activities in prayer. The year closed with a long-term teaching series ‘The Word’ starting in January 2024, which will continue throughout the year. ## **Church Membership** As of 31st March 2024, the number of Church Members was 204 (with 205 members on 31st March 2023). To put this into perspective we had: 8 Members promoted to glory, 3 member resignations. were blessed with 10 new members and had the joy of 4 baptisms this year. 4 weddings also took place during the year. ## **Ministry Team** The Ministry Team comprises of Rev David Ford (Team Leader), Rev Chris Walker (Youth Minister), Toby Dodson (Community Minister), Emma Leggett (Church Operations Manager). ## **Leadership Team Changes** The AGM was held on 27[th] April 2023, and at the meeting we gave thanks for our two retiring deacons/trustees, Mike Dodd and Tony Harrison. At the Church meeting & AGM, 27th April 2023 – Sian Whiffin, Olufemi Bodede and Paul Wilton (re-elected) were elected to serve as Deacons/Trustees on the Leadership Team for a 3-year term. ## **Mission, Evangelism and Outreach** Supported Missions in 2023 - 24: BMS, Pamoja and CAP. ## **Wells Place Centre** 2023/2024 at the Wells Place Centre continued to follow the pattern of the previous year. Conferencing continued at about 50% of pre-covid numbers, therefore less need for conference catering meant a reduction in profit. Lower numbers of customers were also coming to the coffee shop. The large menu of meals and snacks being prepared in the kitchen required higher numbers of staff/volunteers providing a personal and time-consuming service. With the loss of a few key volunteers, there were times when the coffee shop closed. The Trading Management Team took the decision to change the way food is served, adopting a more mainstream coffee shop style, but without the loss of space to chat and find help if required. This was presented to the church meeting, and it was particularly encouraging to see the Church support and declare the need for the coffee shop to continue its ministry as a major outreach of Eastleigh Baptist Church. Another huge encouragement was the generosity shown by way of gifts given to cover the structural work needed to implement the change. 4 ## **Small Group Ministry** Small group ministry remained stable through the year, with one additional group being hosted by Rev David Ford, predominantly being made up of people new to the church. It is the aim of small group ministry to facilitate discipleship in an intentional way, and the coordinating team and group leaders plan to use quarterly meetings for training and equipping small group leaders. ## **Community Ministry** The Baptist model of ministry encourages ministers to take a sabbatical allowing a time of resting, reflecting and recharging. Toby Dobson (Community Minister) took this time during June to August 2023. With Community Ministry supporting a wide number of those in need, either via the foodbank, those left homeless, and those with addiction issues, time was spent with a link Deacon ensuring all areas of responsibilities were covered. This included training, supporting the Coffee Shop Pastors, Recovery Stop meetings, Alpha course hosting, Men’s Breakfasts, Ukrainian Saturday’s, and pastoral visits. EBC have an excellent reputation with the local police, town rangers, and social action agencies as a safe and supporting place to send people with support needs. As a more diverse demographic is experienced, the opportunity to extend support to those newly arrived from other nations, fits easily with our Family Vision. ## **Youth and Children’s Work** **Junior Church** - The creche is fully supervised on a Sunday morning. **Twinklers (3 – 5 years)** – celebrated another brilliant year, with more families joining. There were 7 pre-school to Year R children, representing different cultures and nationalities. The Birthday Present scheme was introduced in October 2023, giving a Christian story book as a gift. The Team consists of 8 volunteers, all blessed with working with the children. **EPIC (School Y1 – Y6)** – celebrated another fantastic year, with an average of 25 children joining us each Sunday, sometimes up to 30 children. The children continue to astound with their knowledge, questions, thoughtful responses and energy. Friendships have blossomed during the year and several social activities outside of a Sunday morning have been enjoyed. These include a Light Party, an EPIC camp, and a bouncy castle afternoon. Sunday morning topics have included Joseph and his brothers, Animals in the bible, Miracles of Jesus and Easter. The Children’s Ministry Team consists of 12 volunteers, all blessed with watching the children grow and care for the younger ones during activities. **Youth Work (Y7 – Y13)** – The youth (both the young adults, and the leaders) have grown this year and shared several fantastic experiences. EBC are blessed to see the ways in which we see Jesus working through them. 5 Satellites Festival in September 2023 was an amazing experience. Discovering ‘Secret Church’ had an impact on the youth and witnessing the young people worship with hundreds of others was incredible. Exam support, an unseen part of youth ministry, is increasingly vital to the young people. This can be a very challenging time, and the support offered gave encouragement and time for prayer. **#Trending** is a weekly bible study group for 14 – 18-year-olds. The age of the group was raised in 2023, and the location of the meeting was moved to a youth leaders’ house. This has allowed deeper discussions and friendships to form, and time was spend working through Youth Alpha. **The Tuesday Thing** was introduced for 11 – 14-year-olds. The number of youth attending has increased from the original 2 at the beginning. The group continues to grow in their exploration of the bible, the ways in which they interact, write their own worship songs and continue to develop their sessions. **Pulse Lite and Pulse Heavy/TKP** – are now into their 2[nd] year of being split into 2 groups due to the number of young people. The focus for Pulse Heavy has been on hot topics like cults, rest, animal rights and a series on money and what the Bible says about these things and how they impact daily living. Pulse Lite has explored topics like prayer, and the trinity. Sunday night Social is inclusive, has regular weekly activities including sports, board games, and other activities have included fireworks, 80s night, and each term ends with a ball. While primarily a social evening, conversations around life and faith, and building friendships have come to fruition, and has also allowed leaders to provide low-level pastoral care. ## **Easter 2023** The Easter theme was ‘Christus Victor’ (Christ the Victor) which included the usual pattern of services as below: Palm Sunday Service Maundy Thursday Good Friday Service with Churches together in Eastleigh (which included following the story of Easter around various locations in the town) Easter Sunday Sunrise Service from Eastleigh Lakeside Country Park. Easter Sunday Morning Service ## **Christmas 2023** ‘Unbelievable Christmas’ was the Advent series for the season. The Labyrinth Nativity Experience brought much joy to the community, schools, escape room experiences and reflective services. The church pulled together in so many ways to bring this experience together. The church was immersed in the wonderful God given gifts of everyone 6 involved from building and decorating, provision of props, welcoming teams, coffee shop servers, stewards, preparation and planning, prayer and so much more. Friendships were formed, conversations were held, the story of Jesus was shared throughout the community, with the hope to grow God’s Kingdom. The church experienced well attended services throughout the Christmas Season, filled with much love, joy, peace, time to be still, and reflective fulfilment. Reflective Service in the Labyrinth was held on 19/11/2023. Volunteers Evening was hosted by Ministry/Leadership Team on 19/12/2023. Crib Service was at 11.00am on 24/12/2023. Carol Service was at 7.30pm on 24/12/2023. Christmas Day Family Service was at 10.30am on 25/12/2023. ## **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 January 2024, the following policies were reviewed and agreed: - Safe to Belong (Adult at Risk Safeguarding Policy) - Safe to Grow (Children’s Safeguarding Policy) - Safe to Attend (Health & Safety Policy) ## **ACHIEVEMENTS AND PERFORMANCE** Being a church is never about the activity. We are not measured by any other metric other than how faithful we are to the God who has called us. EBC has been faithful to God’s calling over the year. Where time and space has been given for God to work, where we have listened to God speaking to us, and where we have put others first, we have seen our shared life reflecting the nature and the hope of our God. EBC wait patiently and faithfully working with God to build His kingdom in Eastleigh. ## **FINANCIAL REVIEW** 2023/2024 was a year in which we faced the challenges of increasing costs and a growing deficit. However, we are in a blessed position of having a healthy level of reserves so that we have some time to address this deficit, which we have started, and will continue, to tackle. In our general budget for 2023/2024, we anticipated that our expenses would exceed our income by nearly £16k (our actual 2022/2023 deficit was under £3k). High inflation has had some impact on our expenses, but also this was the first full year of employment for our Ministry Team Leader, so we were expecting our annual staffing costs to be higher than previous years. At the end of the year, the reality was that our general expenses exceeded our general income by over £41k. Our total general expenses were largely in line with our budget, but the growth of our annual deficit was because income from donations was lower than expected. We also 7 received a £12.5k donation (including Gift Aid) for property maintenance and spent it, plus nearly £8k of our designated property maintenance fund, on some unplanned, essential roof, window and stonework repairs. In the first quarter of 2024, we had a sermon series on our ‘Generous’ God. This concluded in March with a Sunday when the church family was asked to consider their responses in the areas of talents, finances and time. Emma Leggett had also shared details of the church’s financial challenges at the church meeting on 3rd March and by email. There was a wonderful response from the church family, including pledges to increase regular giving by over £22k (including Gift Aid) annually. This will obviously help to reduce the deficit, but we are currently receiving a £100k donation spread over 5 years (so £20k per year) which will cease in a few years, so more is still needed to address our deficit in the long-term. Although we had a deficit in our general fund, we were blessed with some very generous restricted donations totalling more than £41k. These included gifts for our Christmas Outreach, Coffee Shop Remodelling, Property Maintenance, and sponsorship of the MA course in Applied Theology being taken by our Church Operations Manager. We are very thankful for all our wonderful supporters who give to the mission of EBC so very generously. At the end of 31st March 2024, the total value of funds held by the charity was £1,837,781. Of this total, £1,539,893 is in fixed assets (property and equipment) and the remaining balance of £297,887 is represented by current assets and liabilities (cash at bank and debtors, less creditors). ## **Reserves policy** Our reserves policy is to maintain unrestricted cash funds at the bank of £103,600. 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 £236.9k of unrestricted cash funds (including designated funds) in our accounts, which is almost £133k more than our target level. In addition to unrestricted cash funds, our bank accounts also held just over £61k 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 at £653k. 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, plus a small amount of profit from our trading activity. 8 Pension Schemes Our accredited ministers are enrolled into the Baptist Penslon scheme. All other staff have the option to enrol into the NEST pension scheme. srRUCTURE, GOVERNANCEAND 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 w8s first registered as a charity under a charitable trust deed. The Approved Governing Document Iconstitutionl was adopted on 23rd October2008 and ￿pdated on 17th March 2022. ORGANISATION STRUCTURE Th6 Managing Trustees have met 9 times during the year to address specific charity business issues and thosts meetings were minuted. Additional meetings were also held to discuss strategi¢lvisionary type matters. Some Trustees have an overseeing role for a particular aspect of the church's ministry. Dètails of transactions with related parties are set out in the notes to the accounts. The Managing Trustees produce an annual prediction of estimated expenditure, collecting and allocating gifts to the church, reclaiming tax from HMRC on gift aided income, paying members of staff. maintaining the financial accounts, and distributing monies to those in need. A paid member of staff conducts the day-to-day administration of the Church. The ManagingTrustees have assessed the major risks to which the Church is exposed and are satisfied that systems are in place to mitigate exposure to major risks. These include having a comprehensive child protection policy, adults at risk policy* health and safety policies and fire policy. All staff and volunteers who work regularly with children and adults at risk have a clear DBS check. ab- DJ- 2L)2S The Trustee's Report was approved by the Trustees on ..................-..............................and signed on their behalf by- ......... ## **EASTLEIGH BAPTIST CHURCH** ## **INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF EASTLEIGH BAPTIST CHURCH** I report to the trustees on my examination of the financial statements of Eastleigh Baptist Church (the charity) for the year ended 31 March 2024. ## **Responsibilities and basis of report** As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act). I report in respect of my examination of the charity’s financial statements carried out under section 145 of the 2011 Act. In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act. ## **Independent examiner's statement** Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Association of Chartered Certified Accountants, which is one of the listed bodies. Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn. I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015. I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect: - 1 accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or - 2 the financial statements do not accord with those records; or - 3 the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination. I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached. ## **F J Wilde FCCA MBA DChA** Warner Wilde 4 Marigold Drive Bisley Surrey GU24 9SF Dated: 27th Janaury 2025 - 10 - ## **EASTLEIGH BAPTIST CHURCH** ## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** ## _**FOR THE YEAR ENDED 31 MARCH 2024**_ |**Unrestricted**
**Restricted**
**funds**
**funds**
**2024**
**2024**
**Notes**
**£**
**£**
**Income from:**
Donations and legacies
**3**
283,450
41,110
Charitable activities
**4**
57,144
-
Other trading activities
**5**
56,453
-
Investments
**6**
5,250
213
**Total income**
402,297
41,323
**Expenditure on:**
Raising funds
**7**
-
87
Charitable activities
**8**
444,174
46,662
**Total expenditure**
444,174
46,749
**Net income/(expenditure)**
(41,877)
(5,426)
Transfers between
funds
3,581
(3,581)
**Other recognised**
**gains and losses:**
Revaluation of tangible
fixed assets
-
-
**Net movement in**
**funds**
**11**
(38,296)
(9,007)
**Reconciliation of funds:**
Fund balances at 1 April 2023
946,569
938,515
**Fund balances at 31 March**
**2024**
908,273
929,508|**Total**
**Unrestricted**
**Restricted**
**funds**
**funds**
**2024**
**2023**
**2023**
**£**
**£**
**£**
324,560
339,711
35,343
57,144
106,555
-
56,453
-
-
5,463
2,065
30
443,620
448,331
35,373
87
-
56
490,836
388,625
40,655
490,923
388,625
40,711
(47,303)
59,706
(5,338)
-
-
-
-
10,000
-
(47,303)
69,706
(5,338)
1,885,084
876,863
943,853
1,837,781
946,569
938,515|**Total**
**2023**
**£**
375,054
106,555
-
2,095| |---|---|---| |||483,704| |||56
429,280| |||429,336| |||54,368
-
10,000| |||64,368
1,820,716| |||1,885,084| All income and expenditure derive from continuing activities. - 11 - EASTLEIGH BAPTIST CHURCH BALANCE SHEET ASAT31 MARCH2024 2024 2023 Note5 Fixed assets Tangible assets 15 1,539,893 1,581,598 Currènt assèts Debtors Investments Cash at ballk and in hand 19,544 69,380 17 295,554 269,134 315,100 338,516 Credltors.. amounts falllng du• wlthln one year 18 117,2121 115,0301 Net current assets 297,888 323,486 Total assets less current liabiliti8$ 1,837,781 1.885,084 The fund5 of the charity Reslricled income funds Reslricled funds- revaluation Unrestricted ftjnds Unrestricted hJnds- revaluation 19 19 20 20 801,508 128,000 752,764 155,509 810.515 128.000 791,060 155,509 1,837,781 1.885,084 Th¢ financial sl8lements were approved by the trustees on . B Zillwood Trustee 12- ## **EASTLEIGH BAPTIST CHURCH** ## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 MARCH 2024**_ ## **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 amounts 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 or grantors 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. - 13 - ## **EASTLEIGH BAPTIST CHURCH** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2024**_ ## **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. ## _**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. - 14 - ## **EASTLEIGH BAPTIST CHURCH** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2024**_ ## **1 Accounting policies** ## **(Continued)** ## _**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 payments 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 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. ## **1.11 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. ## **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 Income from donations and legacies** ||**Unrestricted**|**Restricted**|**Total**|**Unrestricted**|**Restricted**|**Total**| |---|---|---|---|---|---|---| ||**funds**|**funds**||**funds**|**funds**|| ||**2024**|**2024**|**2024**|**2023**|**2023**|**2023**| ||**£**|**£**|**£**|**£**|**£**|**£**| |Donations and gifts|283,450|41,110|324,560|339,711|35,343|375,054| - 15 - ## **EASTLEIGH BAPTIST CHURCH** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2024**_ |**3**
**Income from donations and legacies**
**Unrestricted**
**Restricted**
**funds**
**funds**
**2024**
**2024**
**£**
**£**
**Donations and gifts**
Donations and Gifts
232,664
32,917
Gift Aid
51,329
8,193
283,450
41,110|**Total**
**Unrestricted**
**Restricted**
**Total**
**funds**
**funds**
**2024**
**2023**
**2023**
**2023**
**£**
**£**
**£**
**£**
**(Continued)**
265,581
280,452
28,395
308,847
59,522
59,259
6,948
66,207
324,560
339,711
35,343
375,054|**Total**
**Unrestricted**
**Restricted**
**Total**
**funds**
**funds**
**2024**
**2023**
**2023**
**2023**
**£**
**£**
**£**
**£**
**(Continued)**
265,581
280,452
28,395
308,847
59,522
59,259
6,948
66,207
324,560
339,711
35,343
375,054| |---|---|---| |||375,054| ## **4 Income from charitable activities** ||**Unrestricted**||**Unrestricted**| |---|---|---|---| ||**funds**||**funds**| ||**2024**||**2023**| ||**£**||**£**| |**EBC**|||| |Sales|6,033||3,621| |**WPC**|||| |Sales|5,327||61,123| |Ancillary trading income|25,639||27,037| |Charitable rental income|20,145||14,774| ||57,144||106,555| |**Income from other trading activities**|||| ||**Unrestricted**||**Unrestricted**| ||**funds**||**funds**| ||**2024**||**2023**| |||**£**|**£**| |Rental income|44,970||-| |Other income|11,483||-| |Other trading activities|56,453||-| ## **5 Income from other trading activities** - 16 - ## **EASTLEIGH BAPTIST CHURCH** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2024**_ ## **6 Income from investments** ||**Unrestricted**|**Restricted**|**Total**|**Unrestricted**|**Restricted**|**Total**| |---|---|---|---|---|---|---| ||**funds**|**funds**||**funds**|**funds**|| ||**2024**|**2024**|**2024**|**2023**|**2023**|**2023**| ||**£**|**£**|**£**|**£**|**£**|**£**| |Interest receivable|5,250|213|5,463|2,065|30|2,095| ## **7 Expenditure on raising funds** ||**Restricted**|**Restricted**| |---|---|---| ||**funds**|**funds**| ||**2024**|**2023**| ||**£**|**£**| |**Fundraising and publicity**||| |Other fundraising costs|87|56| - 17 - ## **EASTLEIGH BAPTIST CHURCH** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 MARCH 2024**_ ## **8 Expenditure on charitable activities** |**EBC**
**WPC**
**2024**
**2024**
**£**
**£**
**Direct costs**
Staff costs
190,437
60,750
Depreciation and
impairment
34,129
772
Missions and donations
26,823
-
Staff training and
expenses
10,693
666
Premises
81,422
11,623
Management and admin
11,963
2,003
Communications
1,951
-
Equipment
4,530
-
Outreach, youth and
children
16,252
-
Service resources and
events
8,832
-
Sundry expenses
-
285
Catering
-
23,741
Bank charges
490
736
387,522
100,576
Gifts given
425
-
**Share of support and governance costs (see note 10)**
Governance
1,848
465
389,795
101,041
**Analysis by fund**
Unrestricted funds
343,150
101,024
Restricted funds
46,645
17
389,795
101,041|**Total**
**2024**
**£**
251,187
34,901
26,823
11,359
93,045
13,966
1,951
4,530
16,252
8,832
285
23,741
1,226
488,098
425
2,313
490,836
444,174
46,662
490,836|**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| ## **9 Grants payable** |**Grants payable**|| |---|---| ||**EBC**| ||**2024**| ||**£**| |Grants to institutions:|| |Other|425| - 18 - ## **EASTLEIGH BAPTIST CHURCH** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 MARCH 2024**_ ## **10 Support costs allocated to activities** |Governance
**Governance costs comprise:**
Accountancy
Legal and professional
Independent examination
**11**
**Net movement in funds**
The net movement in funds is stated after charging/(crediting):
Depreciation of owned tangible fixed assets|**EBC**
**2024**
**£**
2,313
**2024**
**£**
210
465
1,638
2,313
**2024**
**£**
34,901|**Total**
**2023**
**£**
1,728| |---|---|---| |||**2023**
**£**
-
228
1,500| |||1,728| |||**2023**
**£**
29,773| ## **12 Trustees** Payments totaling £1,291.46 were paid during the year to 4 trustees in respect of reimbursed expenses. A gift of thanks to the value of £28 was given to Tony Harrison who stepped down from being a trustee. The ministry team also received support for Council tax, Water, Mobile phones and Mentoring which totalled £8,109.00 during the year. Toby Dobson received £293.00 for a personal retreat as part of a sabbatical. Emma Leggett MA course is being funded by the church. The fees for 2023/2024 were £3,407. 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:-||| |---|---|---| ||Total 2024|Total 2023| |Youth Minister - Christopher Walker|43,736|41,083| |Community Minister - Toby Dodson|42,451|39,882| |Operations Manager - Emma Leggett|36,553
|34,182| |Minister - David Ford|36,035|19,644| David Ford is provided with accommodation (the church manse) as part of his employment. - 19 - ## **EASTLEIGH BAPTIST CHURCH** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2024**_ ## **13 Employees** The average monthly number of employees during the year was: |**Employment costs**
Wages and salaries
Social security costs
Other pension costs|**2024**
**Number**
12
**2024**
**£**
221,911
10,903
18,373
251,187|**2023**
**Number**
11| |---|---|---| |||**2023**
**£**
195,537
8,469
(241)| |||203,765| There were no employees whose annual remuneration was more than £60,000. ## **Remuneration of key management personnel** The remuneration of key management personnel was as follows: The key management personnel costs for 2024 was £154,666.89. Key management personnel: Youth Minister, Community Minister, Operations Manager and Minister who are also trustees. ## **14 Taxation** The charity is exempt from taxation on its activities because all its income is applied for charitable purposes. ## **15 Tangible fixed assets** |**Freehold land**
**and buildings**
**Fixtures and**
**fittings**
**£**
**£**
**Cost**
At 1 April 2023
1,627,000
150,932
Additions
-
13,196
At 31 March 2024
1,627,000
164,128
**Depreciation and impairment**
At 1 April 2023
74,846
141,488
Depreciation charged in the year
27,570
7,331
At 31 March 2024
102,416
148,819
**Carrying amount**
At 31 March 2024
1,524,584
15,309
At 31 March 2023
1,552,154
9,444|**Total**
**£**
1,777,932
13,196| |---|---| ||1,791,128| ||216,334
34,901| ||251,235| ||1,539,893| ||1,561,598| - 20 - ## **EASTLEIGH BAPTIST CHURCH** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2024**_ ## **15 Tangible fixed assets** ## **(Continued)** The 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 believed 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. |**16**
**Debtors**
**Amounts falling due within one year:**
Trade debtors
Other debtors
Prepayments and accrued income
**17**
**Current asset investments**
**Notes**
Investments in subsidiaries
**23**
**18**
**Creditors: amounts falling due within one year**
Other taxation and social security
Trade creditors
Other creditors
Accruals and deferred income|**2024**
**£**
10,178
6,136
3,230
19,544
**2024**
**£**
2
**2024**
**£**
3,799
4,682
3,782
4,949
17,212|**2023**
**£**
6,611
59,409
3,360| |---|---|---| |||69,380| |||**2023**
**£**
2| |||**2023**
**£**
3,433
613
5,157
5,827| |||15,030| - 21 - ## **EASTLEIGH BAPTIST CHURCH** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2024**_ ## **19 Restricted funds** The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used. ||**At 1 April**|**Incoming**|**Resources**|**Transfers**|**At 31 March**| |---|---|---|---|---|---| ||**2023**|**resources**|**expended**||**2024**| ||**£**|**£**|**£**|**£**|**£**| ||-|-|-|-|-| |Freehold property|762,038|12,500|(30,951)|-|743,587| |Delvin Knower Mission fund|16,729|1,465|-|-|18,194| |Specific charities and misc gifts|7,054|18,958|(11,551)|-|14,461| |Phase 2 building funds|24,695|-|-|-|24,695| |Coffee shop remodelling|-|8,400|(4,247)|(3,581)|572| ||810,515|41,323|(46,749)|(3,581)|801,508| |Revaluation reserve|128,000|-|-|-|128,000| |**Previous year:**|**At 1 April**|**Incoming**|**Resources**|**Transfers**|**At 31 March**| ||**2022**|**resources**|**expended**||**2023**| ||**£**|**£**|**£**|**£**|**£**| |Freehold property|780,488|12,507|(30,957)|-|762,038| |Phase 2 Building Funds|24,695|-|-|-|24,695| |Delvin Knower Mission Fund|4,197|12,531|-|-|16,728| |Specific Charities and Misc|||||| |Gifts|6,473|10,335|(9,754)|-|7,054| ||815,853|35,373|40,711|-|810,515| |Revaluation reserve|128,000|-|-|-|128,000| 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. - 22 - ## **EASTLEIGH BAPTIST CHURCH** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2024**_ ## **20 Unrestricted funds** The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes. |General funds
Revaluation reserve
**Previous year:**
General funds
Revaluation reserve|**At 1 April**
**2023**
**Incoming**
**resources**
**Resources**
**expended**
**£**
**£**
**£**
791,060
402,297
(444,174)
155,509
-
-
**At 1 April**
**2022**
**Incoming**
**resources**
**Resources**
**expended**
**£**
**£**
**£**
731,354
448,331
(388,625)
145,509
-
-|**Transfers**
**At 31 March**
**2024**
**£**
**£**
3,581
752,764
-
155,509
**Transfers**
**At 31 March**
**2023**
**£**
**£**
-
791,060
-
155,509| |---|---|---| ## **21 Analysis of net assets between funds** |**Unrestricted**
**Restricted**
**funds**
**funds**
**2024**
**2024**
**£**
**£**
**At 31 March 2024:**
Tangible assets
668,305
871,588
Current assets/(liabilities)
239,968
57,920
908,273
929,508
**Unrestricted**
**Restricted**
**funds**
**funds**
**2023**
**2023**
**£**
**£**
**At 31 March 2023:**
Tangible assets
671,560
890,038
Current assets/(liabilities)
275,009
48,477
946,569
938,515|**Total**
**2024**
**£**
1,539,893
297,888| |---|---| ||1,837,781| ||**Total**
**2023**
**£**
1,561,598
323,486| ||1,885,084| - 23 - ## **EASTLEIGH BAPTIST CHURCH** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2024**_ ## **22 Related party transactions** The following disclosable related party transactions occurred during the year: Robert Walker (father of Rev Chris Walker) and Claire Harrison (wife of Charles Harrison) occasionally received a free lunch while working as volunteer helpers in the coffee shop. Other coffee shop volunteers are also entitled to a free lunch. Flowers costing £37 were gifted to Rikki Walker (mother of Rev Chris Walker) when she stepped down from her role as Worship Team Leader. The trustees agreed a budget of £1000 with Rev David Ford for the replacement of the cooker in the manse. David bought one costing £1360, including installation and recycling of the old cooker, so the trustees agreed to purchase this from David for £1000. The aggregated sum of donations from related parties for 2023/24 is £77,885. 2023: None ## **23 Subsidiaries** These financial statements are separate charity financial statements for Eastleigh Baptist Church. Details of the charity's subsidiaries at 31 March 2024 are as follows: |**Name of undertaking**|**Registered**|**Nature of business**|**Class of**|**% Held**|**% Held**| |---|---|---|---|---|---| ||**office**||**shares held**|**Direct **|**Indirect**| |Wells Place Centre CIC|UK|Dormant|Ordinary|100.00|100.00| 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. - 24 - ## **EASTLEIGH BAPTIST CHURCH** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2024**_ ## **24 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. 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. The Ministers are eligible to join the 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: |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|
1.70| |matched by the insurance policy) (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 annual floor of 0% and annual cap of 5%|2.70| Mortality was 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 femaleswith the core smoothing parameter and with additional initial mortality improvement factor A=0.5%. The next actuarial valuation of the DB plan within the Scheme was due to take place not later than as at 31 December 2022. However, the DB Plan is to be wound up, and the process to wind it up was started with effect from 31 March 2024 and therefore no formal valuation is due to take place. - 25 - ## **EASTLEIGH BAPTIST CHURCH** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2024**_ ## **25 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. 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. These contributions are payable under the recovery plan until June 2026. The outstanding deficiency contributions due under the recovery plan are not considered material and therefore have not been included in the balance sheet. - 26 -