## Rye Lane Baptist Chapel Registered Charity 1127757
Trustees Annual Report and Financial Statements for the year ended 31[st] December 2020
0
## Rye Lane Baptist Chapel
(more commonly called Rye Lane Chapel – RLC)
|Contents||
|---|---|
|Page 1|Legal and administrative information|
|Page 4|Trustees Report|
|Page 10|Independent Examiner’s report to the Trustees|
|Page 11|Statement of Financial Activities|
|Page 12|Balance Sheet|
|Pages 13 onwards Notes on the Financial Statements||
1
## **RYE LANE BAPTIST CHAPEL, PECKHAM LEGAL AND ADMINISTRATIVE INFORMATION**
Charity Registration Number 1127757
Date of Registration 29 January 2009
Start of Financial year 1[st] January 2020
End of Financial year 31[st] December 2020
Deacons as at 31 December 2020 Frederick Adjemang (also Trustees) Sherine Christie Norma Facey (acting Treasurer) Rupert Hill (Church Secretary) Gabrielle Richards Pastoral Team / Elders Phyllis Barnett (as at 31 December 2020) Ian Bertie Barry Evans Paul Chierico (temporarily stepped down for
this period) Legal Status Registered Charity Governing Instrument Constitution adopted on 20/10/2008 Purpose
The principal purpose of the Church is the advancement of the Christian faith according to the principles of the Baptist denomination. The Church also advances education and carries out other charitable purposes in the United Kingdom and other parts of the world.
Mission statement We are a multi-cultural church, whose mission is to proclaim the Kingdom of God and to demonstrate the principles of the Kingdom to meet the primary needs of the people of Peckham and the wider community.
Correspondence address 59a Rye Lane, Peckham, London, SE15 5EX Telephone number 0207 639 7098 Email address Info@ryelanechapel.com Website www.ryelanechapel.com Bankers Barclays Bank Ltd, Peckham Rye,
2
Care of Leicestershire, LE87 2BB London Baptist Property Board Unit C2, 15 Dock Street, London E1 8JN Independent Examiner Revd. Alan Clements FCIE 15 Carleton Road, Great Knowley, Chorley PR6 9TQ Pastor: Throughout 2020, RLC was without a Pastor and the church roles were undertaken by Deacons and Elders with other volunteer roles taken up by church members. Membership In 2020 the membership was 110 (2019 120)
3
## **Rye Lane Baptist Chapel Trustees Report for year ending 31 December 2020**
The unprecedented year which 2020 proved to be was undertaken without a Pastor, although a moderator (Rev Bruce Stokes) kept a watchful eye giving helpful advice when needed. His input in two key areas was especially appreciated – our Search Committee in looking for a new Pastor, and our Building Committee while we examined possible ways forward for the radical repairs and modifications needed for the building.
## **The impact of Covid19:**
In common with other churches, the pandemic affected the church, its corporate worship, its prayer life, and ways of meaningfully reaching the isolated elderly in our congregation. In the first two weeks of the first ‘lock-down’ we had lost three of our elderly members from Covid infection. A risk assessment was undertaken but government guidance in the initial lockdown left almost no flexibility and services were put together from various components from church members and initially broadcast on you-tube but later on zoom. Church services were re-started in the building in early July 2020, socially distanced with windows opened for increased ventilation, compulsory mask wearing, hand sanitation on entering the building, and individuals with any symptoms possibly Covid related were discouraged from attending church. The very old and the young were especially negatively impacted. Much could be said but we kept within central government requirements and in December 2020 were guided by Baptist Union advice and closed again in response to the delta variant. Initial funerals were restricted to 6 attending (plus organist and minister).
In addition to those dying from Covid within the congregation -
- Several had Covid, some seriously
- Some lost their jobs
- Many were on furlough for most of 2020
- Some lost relatives or close friends
- Some found social isolation especially difficult
- Some deepened their relationship with God, others struggled spiritually.
## **Summary of what was possible with church activities:**
- For the period 01 January to 21 March 2020 church activities were mostly what was ‘usual’ – care/home groups, prayer meetings, two church services each Sunday, outreach, free teas, coffees and sandwiches in a two weekly opening up especially those vulnerable adults with particular needs and an active Sunday School with classes for different age groups and after-school homework clubs.
- The Deacons and Elders groups continued to meet – initially in person and then via zoom.
- Visiting preachers preached following an on-line interview but we did not find anyone who we thought would be the right Pastor for RLC.
4
- Zoom did not seem to be the right medium for Sunday School classes but an attempt was made to renew contact with the families of Sunday School children and a Christmas gift was given to each child. Other than the first two and a half months of the year, no Sunday School activities were run for any of the rest of the year.
## **Church Finances – Overall**
At the end of 2020 our income for the year amounted to £230k and expenditure £183k resulting in a surplus of £47k before actuarial gains of £11k on our pension scheme liability. 2020 was an untypical year with a pandemic, £65k unrestricted legacies, £25k compensation for lack of natural light, £10k one off rent from an empty manse and £141k in property renovations. 2020 was also the first year when we accounted for a pension scheme liability, freehold property and depreciation thereon all of which were to do with needing to implement Financial Reporting Standard 102.
## **Church giving:**
- The church was closed for 22 Sundays in the year. Even when we opened in the period July to October, many were still shielding and did not come out.
- Although some congregants gave on line, many gave via weekly offerings and although some set aside their weekly envelopes, the giving income severely reduced. This resulted in giving (excluding legacies) of £75k compared to £102k in 2019.
## **Church expenditure:**
- The opportunity was taken when the minister’s residence (the manse) was empty due to the Pastoral vacancy to carry out modernisation and necessary repairs to the property (leaking roof, necessary painting and decorating, installing a second bathroom, creating a kitchen-diner by removal of a chimney). This cost a considerable amount (£97k) but necessary for a new minister and family when we found the right person. When this had been carried out the house was let-out short term, pending a Pastor being identified.
- The Builders who had undertaken the work on the manse (1 Cerise Road) then undertook repairs and modification to the adjacent property which the church also owns (2 Cerise Road). It was necessary to undertake roof repairs quickly as leakage back into number 1 Cerise Road was occurring through the party wall at roof level. A second bathroom was also installed in 2 Cerise Road as part of the property’s upgrading. This cost £44k.
- Building work at 61 – 63 Rye Lane restricted the amount of natural light which the Chapel enjoys. Following negotiations by Rapleys, our property advisers at a cost of £5k, £30k one off compensation was received.
## **Getting used to zoom:**
Prayer times, on line Bible studies, meetings of various sorts (Deacons, Elders, Building Committee, Search Committee etc) resulted in a whole new vocabulary and phrases such as ‘you are still on mute’ entered popular use. Mostly it proved a very
5
useful means of keeping the church functioning. However, as previously mentioned, it failed to really benefit the elderly who were non-tech-savvy, and the children with whom the number of restrictions meant that trying to arrange zoom classes proved impossible during 2020. Some non-tech-savvy younger members of the congregation found zoom not easy to use but most younger people did master it eventually. Church member meetings were held partially on line and partially in the church and this seemed to work better than we had initially envisaged.
The quality of zoom for the live service on Sunday mornings was not brilliant and it remained something we wanted to achieve in 2021 with moving onto live streaming which seems to have a higher quality.
## **Aims for the coming year:**
There were several areas in which it is hoped major progress will be made in 2021:
- Finding God’s person to Pastor our church – the search committee will continue its work
- Continuing to progress possible plans for the church building and achieve clarity in feedback to the church on the options and advantages and disadvantages of each option
- Continue to keep the church together through periods of lockdown and help the isolated and lonely especially, and achieve a practical and feasible way of re-contacting Sunday School members to enable classes to begin
- Out of lockdown when the building can be used, continue with risk assessments to enable safe use
- Continue to promote discipleship through preaching, teaching, Bible study and prayer
- Continue to carry out our legal obligations as a Charity.
## **Trustees Responsibilities:**
The Charities Act 2011 require the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the trust for that period. In preparing those financial statements the trustees are required to:
- a) Select suitable accounting policies and apply them consistently
- b) Make judgements and estimates that are reasonable and prudent
- c) Prepare financial statements on the ‘going concern’ basis unless it is
- inappropriate to presume that the trust will continue in existence
They are also required to keep proper accounting records which disclose with reasonable accuracy at any time, the financial position of the trust. They are also responsible for safeguarding the assets of the trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
It is considered that the Trustees and any others who could be understood to be 'managers' in the activities and affairs of the Rye Lane Baptist Chapel - as defined in Schedule 6 of the Finance Act 2010 - have completed declarations confirming that they are 'fit and proper' persons under the terms of the Financial Act 2010.
Where a Trustee is elected for the first time or are elected after an absence of some time they are given a copy of the final report of the previous year, copies of
6
minutes for that year and are invited to discuss any matters with the current trustees in order that they may be thoroughly briefed asto the current situation of the Chapel. Trustee training is available as and when required.
The Trustees are aware of the Charity Commission's guidance on public benefit in their publication 'The Advancement of Religion for Public Benefit' and give regard to it in their administration of the affairs of the Trust.
With regard to 'Risk Assessment' the Trustees recognise that 'risk' is defined as 'the threat of any action or event which will adversely affect an organisation's ability to achieve its objectives and execute its strategies'. It also accepts that the term 'risk' can include any circumstances that may, or do, have an adverse effect, and is wider than financial matters. 'Risks' not only relate to the negative consequences of threat, but also to the impact of not taking advantage of opportunities.
The Trustees recognises it requires a practical Health and Safety Policy covering activities for both the Church, its surrounding grounds and any other buildings associated with the Trust that are owned by the Trust. This is reviewed on a regular basis. An Accident Book is maintained.
The contents and obligations of the Equality Act 2010 and the General Data Protection Regulation are known and complied with to the best of the Trustee's ability.
The Trustees are aware of their responsibilities in respect of the Regulatory Reform (Fire Safety) Order 2005 in its requirement to carry out a fire assessment to identify any possible dangers or risks, to take action to minimise the risks and to create a plan to deal with any emergencies, and also to write up and keep a record of its findings and to review the assessment annually. the Trustees have appointed Akeem Diko to be the responsible person to put these things into action.
There is a Protection Policy in place in respect of children and vulnerable adults. Checks have been made with the Disclosure and Barring Service in respect of persons dealing regularly with young people and vulnerable adults. The Trust's appointed officer for this is Zielda Charles. Whilst it is impossible to eliminate all risks and their consequences, efforts are constantly made to minimise such occurrences.
Approved by the Trustees on the 1[st] December 2021
Signed on their behalf by the Acting Honorary Treasurer Norma Facey
Printed name: Norma Facey
7
## **Financial Review**
The Chapel continued to raise the funds which it needs to carry out its activities from within its own membership and congregation.
2020 was the year when the pandemic first hit. Our giving reduced by £27,000 however this was offset by legacies of £65,000 and rent from the Manse during vacancy of £10,000. Major expenditure £141,000 occurred due to renovation the Manse and 2 Cerise Road. It is difficult to make comparisons with previous years due to Covid and the implementation of FRS 102. One thing is certain however at the end of 2020 we had £311,000 in our bank accounts compared to £320,000 in 2019. Looking forward we are able to pay our bills as they fall due and no major property renovations are in hand for 2021. However, should a minister be appointed then expenditure will of course increase.
The Chapel is heavily dependent on its membership working in all aspects of its activities, most of which run having little or no impact on its expenditure, but nevertheless contribute substantially to the achievement of it’s objectives.
The financial results for the year, together with the accounting policies adopted are set out in the accompanying financial statements.
The Chapel is a participating employer within the Defined Benefit section of the Baptist Pension scheme and has been making deficit payments to cover the costs of the past service of its employees within the scheme under a recovery plan. The Chapel understands that if it had left the scheme at the year-end it would have make a one-off payment estimated to be £35,600 to meet its statutory obligations to the scheme. The Chapel has no plan to leave the scheme and expects to continue to make payments to the scheme in line with the recovery plan.
## **Reserves Policy**
The Trustees have established a Reserves Policy to enable the chapel to function effectively and meet its obligations in the event of a decline in our income are a major cost.
Having considered the relevant risks of changes in income and expenditure, the trustees have determined that the appropriate level of reserves is in the range of £110,000 to £120,000 which is six months general fund expenditure in a typical year excluding major property works. Our general fund balance at the end of the year allowing for payment of the pension scheme debt was £238,000 and so exceeds the target.
## **Going Concern**
The accounts of the charity have been prepared on the basis that it is a going concern and will continue its operations in the future. The trustees are aware of no
8
material concerns affecting its future other than those of the continued effects of the pandemic.
9
## **Charities Act 2011.**
## **Independent Examiner’s Report.**
Independent Examiner’s Report to the Trustees of Rye Lane Baptist Chapel, 59A Ryle Lane, London SE15 5EX. (Charity Commission number 1127757.)
I report on the accounts of the Charity for the year ended 31st. December 2020 which are set out on pages 11 to 24 of this Report.
## **Respective responsibilities of the trustees and examiner.**
The charity’s trustees are responsible for the preparation of the accounts. The charity’s trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed.
It is my responsibility to :
examine the accounts under section 145 of the 2011 Act;
follow the procedures laid down in the general Directions given by the Charity
Commissioner under section 145 (5) (b) of the 2011 Act; and
to state whether particular matters have come to my attention.
## **Basis of the independent examiner’s report.**
My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a ‘true and fair view’ and the report is limited to those matters set out in the statement below.
## **Independent examiner’s statement.**
In connection with my examination, no matter has come to my attention:
1. which gives me reasonable cause to believe that in any material respect the requirements
to keep accounting records in accordance with section 130 of the 2011 Act; and
to prepare accounts which accord with the accounting records and comply with
the accounting requirements of the 2011 Act
have not been met, or
Fellow of the Association of Charity Independent Examiners.
Rev’d. A. A. Clements MA, ACIB, FCIE. 15 Carleton Road, Great Knowley, Chorley PR6 8TQ
10
|**Statement of financial activities**
**Income and endowments from:**
Donations and legacies
Income from charitable activities
Investments
Other income
**Total**
Expenditure on
Raising funds
Charitable activities
Ministry
Mission
Establishment
Support
Other
**Total**
Net income/(expenditure)
**Net Income/(expenditure)**
**before transfers**
**Transfers between funds**
Gross transfers between funds - in
Gross transfers between funds - out
**Other recognised gains/(loses)**
Actuarial gains/(losses) on defined
benefit pension schemes
**Net movement in funds**
**Reconciliation of funds**
**Total funds brought forward**
**Total funds carried forward**|**General**
**Designated**
**Restricted Endowment**
**Total**
**Prior Year**
**Fund**
**Funds**
**Funds**
**Funds**
**Funds**
**Total**
**Funds**
**£**
**£**
**£**
**£**
**£**
**£**
140,181
-
-
-
140,181
115,070
89,342
-
-
-
89,342
87,490
584
-
-
-
584
1,332
-
-
-
-
0
6,862
**230,107**
**0**
**0**
**0**
**230,107**
**210,754**
310
-
-
-
310
0
-
-
-
-
-
2,194
-
-
-
2,194
27,573
17,968
-
-
-
17,968
38,187
47,488
-
96,325
-
143,813
144,634
18,923
-
-
-
18,923
11,233
-
-
-
-
-
-|
|---|---|
||**86,883**
**0**
**96,325**
**0**
**183,208**
**221,627**
143,224
0
-96,325
0
46,899
-10,873
9,497
-
140,895
-
150,392
-
-140,895
-9,497
-
-
-150,392
-
10,765
10,765
-484
22,591
-9,497
44,570
-
57,664
-11,357|
||**229,835**
**13,522**
**9,400,236**
**0**
**9,643,593**
**9,654,950**|
||**252,426**
**4,025**
**9,444,806**
**0**
**9,701,257**
**9,643,593**|
The note on pages 13 to 24 form an integral part of these accounts.
11
|**Balance sheet**
**Fixed assets**
Tangible assets
Total fixed assets
**Current assets**
Debtors
Cash at bank and in hand
Total current assets
**Liabilities**
Creditors: Amounts falling due within one year
Net current assets or liabilities
Total assets less current liabilities
Net assets or liabilities excluding pension asset
or liability
Defined benefit scheme asset or liability
**Total net assets**
**The funds of the charity**
**Endowment funds**
**Restricted income funds**
Bookstall
Freehold property
Help in need
Legacy
Mission
Gifts and donations
**Designated - unrestricted funds**
Famine relief
Home
Legacy
**General - unrestricted funds**
**Pension reserve**
**Fund totals**|**General**
**Designated**
**Restricted Endowment**
**Total**
**Prior Year**
**Fund**
**Funds**
**Funds**
**Funds**
**Funds**
**Total**
**Funds**
**£**
**£**
**£**
**£**
**£**
**£**
-
-
9,411,973
-
9,411,973
9,367,403|
|---|---|
||0
0
9,411,973
0
9,411,973
9,367,403|
||-
-
-
-
-
659
274,352
4,025
32,833
0
311,210
320,538|
||274,352
4,025
32,833
0
311,210
321,197|
||400
400
10,555
273,952
4,025
32,833
0
310,810
310,642
273,952
4,025
9,444,806
0
9,722,783
9,678,045
-21,526
-21,526
-34,542|
||**252,426**
**4,025**
**9,444,806**
**0**
**9,701,257 **
**9,643,503**|
||-
-
-
-
-
-
-
-
-
-
-
-
-
-
164
164
164
-
-
9,411,973
9,411,973
9,367,403
-
-
1,000
1,000
1,000
-
-
27,503
27,503
27,503
-
-
2,666
2,666
2,666
-
-
1,500
1,500
1,500
-
-
-
-
0
-
25
-
-
25
25
-
-
-
0
9,497
-
4,000
-
-
4,000
4,000
273,952
-
-
-
273,952
264,287
-21,526
-
-
-
-21,526
-34,542|
||**252,426**
**4,025**
**9,444,806**
**0**
**9,701,257 **
**9,643,503**|
The notes on pages 13 to 24 form an integral part of these accounts These accounts were approved by the Trustees on 1[st] December 2021 and signed on their behalf by:-
Norma Facey
Barry Evans
A Norma Facey, Treasurer
B Barry Evans, Elder
12
## **NOTES TO THE ACCOUNTS YEAR ENDED 31 DECEMBER 2020**
## **1 ACCOUNTING POLICIES**
## **a Basis of preparation**
The accounts are prepared in accordance with the, Charities Statement of Recommended Practice (Charities SORP 2015), FRS102 and with the Charities Act 2011 which were implemented by the charity from 1[st] January 2020 and has necessitated restating the 31 December 2019 accounts.
Rye Lane Baptist is a registered charity, no. 1127757 and meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognized at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
## **b Income recognition**
All incoming resources are included in the Statement of Financial Activities when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.
## **c Donations**
Donations are accounted for gross when received. Fixed asset gifts in kind are recognized when receivable and are included at fair value.
## **d Legacies**
Legacies are accounted for when probate has been completed, the amount of the legacy can be reliably quantified and the conditions of the legacy are within the control of the Chapel.
## **e Investment Income**
Investment income is included in the accounts in the year in which it is receivable.
## **f Expenditure recognition**
All expenditure is accounted for on an accrual's basis. Expenditure is recognized where there is a legal or constructive obligation to make payments to third parties, it is probable that settlement will be required and the amount of the obligation can be measured reliably.
## **g Costs of raising funds**
The Chapel does not make formal appeals for funds, and expenditure on these items is therefore not material, limited to giving envelopes and payment card processing costs.
## **h Grants payable**
The Chapel makes grants to other organisations whose charitable objects complement its work. They are accounted for when the recipient has been notified of the grant and payment is unconditional.
## **i Support costs**
Support costs are those that assist the work of the Chapel but do not directly represent charitable activities and include office costs and governance cost. For simplicities sake support costs are apportioned 80% to ministry and 20% to establishment (property). Most of the management of the Chapel is carried out without charge by volunteers. This intangible cost is not included in the Statement of Financial Activities since there is no measurable cost to the volunteers for their service.
13
## **j Fixed Assets**
Tangible fixed assets are capitalised if they can be used for more than one year and cost at least £1,000. They are initially recognised at cost, or for donated assets, at a reasonable estimate of their value on receipt.
There is no reliable information available for the cost of the Chapel properties and so on adoption of FRS102, insurance rebuilding valuations have been used as they are deemed to be the worth to the Chapel. The properties are not investment assets so do not have to be held at market value. They are held on trust by the London Baptist Properties Board the terms of which are that if a property is disposed of the proceeds should be restricted to the repair, refurbishment, extension, replacement or rebuilding of the premises. Accordingly, the valuation of the properties has been accounted for in a restricted freehold property fund. The properties are the Chapel, the shop with flat above at 59 Rye Lane, the Manse at 1 Cerise Road and the next door property 2 Cerise Road.
## **k Depreciation**
Depreciation is provided on all fixed assets, other than freehold land, to write off the cost on a straight-line basis over their expected useful life, at the following rates:
|Freehold land|Nil||
|---|---|---|
|Buildings||1%|
|Sanctuary (2003)||2%|
|Furniture and fittings||10%|
|Computers and equipment||33%|
## **l Investment Assets**
Investments are initially stated at cost. Subsequently they are measured at fair value with changes recognized in the Statement of Financial Activities if the shares are publicly traded or their fair value can otherwise be measured reliably. All other investment assets are shown at cost less impairment. At the present time the Chapel has no investment assets.
## **m Funds**
Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.
Designated funds comprise unrestricted funds that have been set aside by the trustees for specific purposes. The aim and use of each designated fund is set out in the notes to the financial statements.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for specific purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements. The principal restricted fund is the freehold property fund where all of the chapel properties held on trust by the London Property Board are accounted for.
Endowment funds represent those assets which must be held permanently by the charity, principally. Income arising on the endowment funds can be used in accordance with the objects of the charity and is included as unrestricted income. Any capital gains or losses arising on the investments form part of the fund. Investment management charges and legal advice relating to the fund are charged against the fund. There are no endowment funds at present.
14
## **n Employee benefits**
The charity operates a defined contribution plan for its employees (none in 2020). A defined contribution plan is a pension plan under which the charity pays fixed contributions into a separate entity. Once the contributions have been paid the charity has no further payments obligations. The contributions are recognised as an expense when they are due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held separately from the charity in an independently administered fund.
Prior to 2012 pension provision was made through multi-employer defined benefit pension plans. Where it is not possible for the charity to obtain sufficient information to enable it to account for a plan as a defined benefit plan, it accounts for the plan as a defined contribution plan.
Where the plan is in deficit and where a charity has agreed, with the plan, to participate in a deficit funding arrangement, the charity recognises a liability for this obligation. The amount recognised is the net present value of the contributions payable under the agreement that relate to the deficit. The unwinding of the discount is recognised as a finance cost and any other change in the measurement of this liability is expensed to the Statement of Financial Activities
15
|**2 Analysis of Income and**
**Expenditure**
**Income and endowments from:**
**Donations and legacies**
Weekly envelopes
Loose plate collections
Bank offerings
Legacies received
Gift Aid
Donations
Other
Funeral
**Donations and legacies Totals**
**Income from charitable activities**
Rent 59a flat
2019 Property Rental Income
Shop rent.
Manse - 1 Cerise Road Rent while vacancy
2 Cerise Road Flat 1 Rent
2 Cerise Road Flat 2 Rent
2 Cerise Road Flat 3 Rent
2 Cerise Road Flat 4 Rent
True Sharp VCV Chapel
Hall hire
Sanctuary Hire
**Income from charitable activities Totals**
**Investments**
Bank Interest
**Investments Totals**
**Other income**
2019 Other Income
**Other income Totals**
**Income and endowments Grand totals**|**General**
**Designated**
**Restricted Endowment**
**Total**
**Prior**
**Year**
**Fund**
**Funds**
**Funds**
**Funds**
**Funds**
**Total**
**Funds**
**£**
**£**
**£**
**£**
**£**
**£**
10,912
-
-
-
10,912
24,151
8,506
-
-
-
8,506
48,078
29,701
-
-
-
29,701
0
65,411
-
-
-
65,411
13,319
8,732
-
-
-
8,732
11,702
16,670
-
-
-
16,670
17,459
158
-
-
-
158
0
90
-
-
-
90
361|
|---|---|
||**140,181**
**0**
**0**
**0**
**140,181**
**115,070**
19,500
-
-
-
19,500
0
-
-
-
74,590
38,952
-
-
-
38,952
0
10,000
-
-
-
10,000
0
2,790
-
-
-
2,790
0
4,400
-
-
-
4,400
0
4,800
-
-
-
4,800
0
1,130
-
-
-
1,130
0
2,000
-
-
-
2,000
0
5,630
-
-
-
5,630
12,900
140
-
-
-
140
0|
||**89,342**
**0**
**0**
**0**
**89,342**
**87,490**
584
-
-
-
584
1,332|
||**584**
**0**
**0**
**0**
**584**
**1,332**
-
-
-
-
-
6,862
**0**
**0**
**0**
**0**
**0**
**6,862**|
||**230,107 **
**0**
**0**
**0**
**230,107 **
**210,754**|
16
|**Expenditure on:**
**Raising funds**
Go Cardless
Envelope Systems
**Ministry**
Ministers Stipend
Visiting Speaker
Council Tax Manse
Sunday School and Youth Ministry
Anniversary and Celebrations
**Mission**
Grant making programme
Grant to 2K Plus
World Vision
Help-in-need/Community
Gifts and Donations Paid
**Establishment**
Project Support
Cleaning
2019 Utilities
2019 Premises
Compensation for future increased lighting costs
Heating
Gas 2 Cerise
Gas - Chapel
Electricity - Chapel
Tenants contribution to 1 Cerise Road Ho
Energy – 1 Cerise (dual fuel)
Electricity 2 Cerise Road
Council Tax 59a_Flat
Electricity 59a_Flat
Gas 59a_Flat
Repairs 59a_Flat
Insurance
Repairs 2 Cerise Road
All Bldgs - Water
Hygiene
Professional
Chapel Regeneration Project
Chapel Repairs|**General**
**Designated**
**Restricted Endowment**
**Fund**
**Funds**
**Funds**
**Funds**
**£**
**£**
**£**
**£**
150
-
-
-
159
-
-
-
**310**
**0**
**0**
**0**
-
-
-
-
732
-
-
-
1,436
-
-
-
27
-
-
-
0
-
-
-|**Total**
**Prior**
**Year**
**Funds**
**Total**
**Funds**
**£**
**£**
150
0
159
0|
|---|---|---|
|||**310**
**0**
0
25,735
732
0
1,436
0
27
1,568
0
270|
||**2,194**
**0**
**0**
**0**
14,400
-
-
-
2,520
-
-
-
289
-
-
-
759
-
-
-
0
-
-
-|**2,194**
**27,573**
14,400
28,331
2,520
0
289
0
759
3,761
0
6,095|
||**17,968**
**0**
**0**
**0**
3,972
-
-
-
2,675
-
-
-
0
-
-
-
0
-
-
-
-30,000
-
-
-
4,814
-
-
-
908
-
-
-
673
-
-
-
634
-
-
-
-976
-
-
-
1,536
-
-
-
2,849
-
-
-
0
-
-
-
0
-
-
-
130
-
-
-
0
-
-
-
16,962
-
-
-
0
-
-
-
1,156
-
-
-
2,444
-
-
-
0
-
-
-
28,600
-
-
-
1,200
-
-
-|**17,968**
**38,187**
3,972
0
2,675
0
0
12,446
0
103,601
-30,000
0
4,814
0
908
0
673
0
634
0
-976
0
1,536
0
2,849
0
0
0
0
0
130
0
0
0
16,962
0
0
0
1,156
0
2,444
0
0
25,948
28,600
0
1,200
0|
17
|Property Upgrade
Council Tax 2 Cerise Rd
Chapel - Caretaking
Caretaking for hall hires
61 - 63 Rye Lane loss of light fees
2020 Property Upgrade
City Fire
Verisure Alarm
Depreciation on renovation of Sanctuary in 2003
Freehold Property Depreciation
Support
Interest cost - BU Closed DB Pension Sche
2019 Music..
Music Leader Retainer
Music - CCLI
Administration
Conference
2019 Office Costs
Telephone - 8120
Telephone - 7098
Internet
Equipment
Photocopier lease and consumables
Sundries
Stationery
Support for Weddings and Funerals
Subscriptions
Professional fees - Governance
2019 Accounts Adjustments
**Expenditure Grand Totals**|**General**
**Designated**
**Restricted Endowment**
**Total**
**Prior**
**Year**
**Fund**
**Funds**
**Funds**
**Funds**
**Funds**
**Total**
**Funds**
**£**
**£**
**£**
**£**
**£**
**£**
0
-
-
-
0
0
1,436
-
-
-
1,436
0
0
-
-
-
0
0
345
-
-
-
345
0
5,400
-
-
-
5,400
0
0
-
-
-
0
0
1,745
-
-
-
1,745
0
987
-
-
-
987
0
0
-
1,882
-
1,882
2,639
0
-
94,443
-
94,443
0|
|---|---|
||**47,488**
**0**
**96,325**
**0**
**143,813**
**144,634**
563
-
-
-
563
0
0
-
-
-
0
985
2,600
-
-
-
2,600
0
834
-
-
-
834
0
4,800
-
-
-
4,800
0
363
-
-
-
363
60
0
-
-
-
0
1,351
1,617
-
-
-
1,617
0
58
-
-
-
58
0
32
-
-
-
32
0
0
-
-
-
0
4,675
845
-
-
-
845
0
1,651
-
-
-
1,651
0
74
-
-
-
74
0
1,697
-
-
-
1,697
0
3,293
-
-
-
3,293
3,232
400
-
-
-
400
930
96
-
-
-
96
0|
||**18,923**
**0**
**0**
**0**
**18,923**
**11,233**|
||**86,883**
**0**
**96,325**
**0**
**183,208**
**221,627**|
## **3 Support Expenditure Allocation**
|Raising funds
Ministry
Mission
Establishment|**Direct**
**Allocated**
**Charitable**
**Support**
**Expenditure**
**Costs**
**£**
**£**
310
0
2,194
15,138
80%
17,968
0
20%
143,813
3,785
**164,285**
**18,923**|
|---|---|
18
|**4 Tangible Fixed Assets**
Cost
1 January 2020
Additions
Disposal
31 December 2020
Depreciation
1 January 2020
Charge for the year
On disposals
31 December 2020
Net book value
1 January 2020
31 December 2020
31 December 2029
**5 Analysis of net assets**
Endowment funds
Restricted income funds
Designated - unrestricted funds
General - unrestricted funds|**Chapel**
**Manse**
**Shop**
**and**
**and**
**flat**
**house**
**£**
**£**
**£**
**8,185,069**
**718,000**
**400,348**
**140,895**|**Sanctuary**
**Equipment**
**£**
**£**
94,096
10,125|**Total**
**£**
9,407,638
140,895
0|
|---|---|---|---|
||**8,185,069**
**858,895**
**400,348**|94,096
10,125|9,548,533|
||0
0
0
81,851
8,589
4,003
0
0
0|30,110
10,125
1,882
0
0
0|40,235
96,325
0|
||**81,851 **
**8,589**
**4,003**|**31,992 **
**10,125**|**136,560**|
||8,185,069
718,000
400,348|63,986
0|9,367,403|
||**8,103,218**
**850,306**
**396,345**|**62,104**
**0**|**9,411,973**|
||**Tangible**
**Current**
**Current**
**Assets**
**Assets**
**Liabilities**
**£**
**£**
**£**
9,411,973
32,833
-
-
4,025
-
-
274,352
400|**63,986**
Pension
Total
Scheme
Liability
£
£
0
9,444,806
4,025
21,526
252,426||
||||**63,986**|
|||||
||**9,411,973**
**311,210**
**400**|**21,526**
**9,701,257 **||
## **6 Net income for the year**
|**Net income for the year**|||
|---|---|---|
||**2020**|**2019**|
|**Net income for the year**|||
|Net income for the year is stated after charging/(crediting)|||
|Auditors/independent examiners’ remuneration:|||
|Audit/independent examination|400|930|
|Taxation work|||
|Other services|||
19
**7 Staff costs and Trustees expenses**
**2020**
**2019**
## **Staff costs and Trustees expenses**
Salaries Gross salary Social security costs Employers’ national insurance Employers’ pension Pension costs contributions Council tax, water, telephone Other costs (not motor) **Total** nil 25,735
The average number of employees during the year was 2020 nil, 2019 one.
No employee received total emoluments in excess of £60,000 during the year.
The Minister acts as one of the Chapel's trustees in accordance with e.g. the Trust deed and received remuneration of £ni and other benefits in respect of his/her services as Minister, including the provision of manse accommodation owned by the chapel as a Minister was in post.
£nil in total was reimbursed to the Trustees in respect of expenses incurred as Trustees (2019 £nil).
The Chapel pays pension contributions for its Minister to the Baptist Ministers Pension Trust Limited, which is a final salary defined benefit scheme, which is not contracted out of the State second pension. The scheme is a multi-employer scheme and it is not possible to identify the assets and liabilities of the scheme which are attributable to the Chapel. Therefore, in accordance with FRS102 Section 28, the scheme is accounted for as a defined contribution scheme.
Total aggregate remuneration paid to key management personnel during the year was £nil (2019 £25,735)
## **8 Debtors**
|**8 Debtors**|||
|---|---|---|
|Accrued income
Prepayment and other debtors
31 December|**2020**
**£**
**-**
**-**
**-**|**2019**
**£**
**-**
**659**|
|||**659**|
## **Cash and bank balances**
|Barclays Premier Deposit Account
London Baptist Property Board Account
Barclays Current Account
31 December|**2020**
**£**
207,788
101,942
1,480
**311,210**|**2019**
**£**
241,247
71,642
7,649|
|---|---|---|
|||**320,538**|
20
## **Creditors: amounts falling due within one year**
|Loans and overdrafts
Other creditors
Accruals
31 December
**9 Movement of funds**
**Unrestricted**
General
Sub total
**Designated**
Famine Relief
Home Mission
Legacy
Sub total
**Restricted**
Bookstall
Freehold Property
Help In Need
Legacy
Mission
Gift and Donations
Sub total
**Totals**|**Balances**
**b/fwd**
**01/01/2020**
**£**
229,835|**2020**
**£**
**-**
400
-
**400**
**Incoming**
**Outgoing**
**Resources**
**Resources**
**£**
**£**
230,107
76,118|**2019**
**£**
**-**
700
9,855
**10,555**
**Transfers**
**Balances**
**c/fwd**
**31/12/2020**
**£**
**£**
131,398
252,426|
|---|---|---|---|
||229,835|230,107
76,118|131,398
252,426|
||25
9,497
4,000||25
9,497
0
4,000|
||13,522|0
0|9,497
4,025|
||164
9,367,403
1,000
27,503
2,666
1,500|96,325|164
140,895
9,411,973
1,000
27,503
2,666
1,500|
||9,400,236|0
96,325|140,895
9,444,806|
|||||
||**9,643,593**|**230,107**
**172,443**|**281,790**
**9,701,257**|
Freehold Property is a new fund created during 2020 to hold the Chapels five freehold properties held on trust for it by the London Baptist Property Board namely – Chapel, Flat, Shop, Manse and 2 Cerise Road.
21
|**10 Analysis of net assets**
Endowment funds
Restricted income funds
Designated - unrestricted funds
General - unrestricted funds
**31 December**|**Tangible**
**Current**
**Current**
**Pension**
**Total**
**Assets**
**Assets**
**Liabilities**
**Scheme**
**Liability**
**£**
**£**
**£**
**£**
**£**
0
9,411,973
32,833
-
9,444,806
-
4,025
-
4,025
-
274,352
400
21,526
252,426|
|---|---|
||**9,411,973**
**311,210**
**400**
**21,526**
**9,701,257**|
## **11 Pensions**
The Chapel 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.
The Minister(s) are eligible to join the Scheme.
## **Actuarial valuation as at 31 December 2020**
A formal valuation of the DB Plan as at 31 December 2020 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 Chapel 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%|2.95|
|pa)||
22
|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 an annual floor of 0% and annual cap of|2.70|
5%
Mortality is assumed in accordance with 80% of the S3NA standard mortality table. Future improvements projected from 2013 in line with the “CMI 2020” 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 is due to take place not later than as at 31 December 2022.
## **Recovery Plan**
In addition to the contributions to the DC Plan set out above, where a valuation of the DB Plan reveals a deficit the Trustee and the Council agree to a rate of deficiency contributions from Chapeles and other employers involved in the DB Plan.
Under the current Recovery Plan signed on 5[th] March 2019, deficiency contributions are payable until June 2026. These contributions are broadly based on the employer's membership at 31 December 2014 and increase annually in line with increases to Minimum Pensionable Income as defined in the Rules.
## **Movement in Balance Sheet liability**
Section 28.11A of FRS 102 requires agreed deficit recovery payments to be recognised as a liability. The movement in the provision is set out in the table below.
|Balance sheet liability at year start
Minus deficiency contributions paid
Interest cost (recognised in SoFA)
Remaining change to balance sheet liability* (recognised in
SOFA)
Balance sheet liability at year end|**2020**
**2019**
**£**
**£**
34,452
36,683
-2,724
-3,553
563
838
-10,765
484|
|---|---|
||21,526
34,452|
This liability represents the present value of the deficit contributions agreed as at the accounting date and has been valued using the following assumptions set by reference to the duration of the deficit recovery payments:
|ecovery payments:||||
|---|---|---|---|
||**31 Dec 2020**|**31 Dec 2019**|**31 Dec 2018**|
|Discount rate|0.4%|1.7%|2.4%|
|Future increases to Minimum Pensionable
Income|3.0%|3.2%|3.3%|
The Chapel has been advised that the cost for the Chapel to buyout their Pension Scheme liabilities at 31 December 2020 was approximately £35,600. This is known as Estimated Employer Debt.
23
## **Cessation Event**
Consequent upon the departure of the Minister from the Chapel in March 2019, the Chapel had a cessation event under Section 75 of the Pensions Act 1995. This makes the Chapel liable for the proportion of the overall deficit (assessed by reference to the cost of securing benefits by the purchase of annuities) applicable to its previous Ministers who were members of the Scheme. At present the Chapel is paying the ongoing deficiency contributions outlined above, and the balance sheet liability below is based on those deficiency contributions. However, the Pension Scheme Trustee has the right to quantify and seek payment of the debt at any time.
## **12 Related Charities**
The custodian Trustee of the Chapel is the London Baptist Property Board which is charity number 249768, and controlled the London Baptist Association. The Chapel is also a member of the Baptist Union of Great Britain, and the London Baptist Association.
There were no transactions between the Chapel and its related charities during the year apart from interest received on its London Baptist Property Board deposit account.
24