## **EAST LONDON TABERNACLE BAPTIST CHURCH** 

**FINANCIAL STATEMENTS** 

**FOR THE YEAR ENDED 31[st] DECEMBER 2020** 

**Charity Registration Number: 1128266 HMRC Charity Reference Number: X83152** 



## **EAST LONDON TABERNACLE BAPTIST CHURCH** 

## **FINANCIAL STATEMENTS** 

**FOR THE YEAR ENDED 31[st] DECEMBER 2020** 

|**Contents**|**Page**|
|---|---|
|Charity Information|1|
|Trustees’ Annual Report|2-5|
|Independent Auditors’ Report|6-8|
|Statement of Financial Activities|9|
|Balance Sheet|10|
|Notes to the Financial Statements|11-18|





**EAST LONDON TABERNACLE BAPITIST CHURCH** 

## CHARITY INFORMATION 

|**Church Elders/Trustees**|Adekunle Adeoye (Treasurer, from July 2021)|
|---|---|
||Ken Brownell (Minister and Chairman, retired 30/09/2021)|
||Marc Rhode Lapointe (Appointed 29/04/2021)|
||Graham Shearer (resigned 03/10/2020)|
||Alastair Steven|
||Adam Wilson|
|**Pastoral Team**|Ken Brownell|
||Andy Mossop|
||Carys Woodbridge|
|**Deacons**|Kayode Adeoye|
||Kehinde Adeoye (appointed 29/01/2021)|
||Andy Mossop|
||George Rae (Treasurer, resigned July 2021)|
||Andre Reis (appointed 29/04/2021)|
||Michaela Stogden|
||Adam Wilson (Secretary)|
|The key management personnel are considered to be the Church elders, pastoral team and deacons.||
|**Charity Registration Number**|1128266|
|**HMRC Charity Number**|X83152|
|**Church Office**|Burdett Road|
||London|
||E3 4TU|
|**Principal address**|Burdett Road|
||London|
||E3 4TU|
|**Independent Auditors**|Jacob Cavenagh & Skeet|
||Chartered Accountants|
||5 Robin Hood Lane|
||Sutton|
||Surrey|
||SM1 2SW|
|**Bankers**|CAF Bank Ltd|
||25 Kings Hill Avenue|
||Kings Hill|
||West Malling|
||Kent|
||ME19 4JQ|
|**Holding Trustee for Land & Buildings**|The London Baptist Property Board Ltd|
||235 Shaftesbury Avenue|
||London|
||WC2H 8EP|



Page 1 



**EAST LONDON TABERNACLE BAPITIST CHURCH** 

## TRUSTEES’ ANNUAL REPORT 

The Trustees present the report and financial statements of East London Tabernacle Baptist Church for the year ended 31 December 2020.  The financial statements have been prepared in accordance with the Charities Statement of Recommended Practice (Charities SORP (FRS 102)). 

## **STRUCTURE, GOVERNANCE AND MANAGEMENT** 

ELT Baptist Church is a registered charity and an Independent Evangelical Church in association with the Fellowship of Independent Evangelical Churches. 

## **Governing Document** 

East London Tabernacle Baptist Church was established under the terms of a trust deed dated 23 April 1872, which sets out the basis of the use of the current building by the Church.  Pursuant to a deed dated 25 April 1977, The London Baptist Property Board Limited was appointed as the Trustee of the freehold land and Church building in Burdett Road. The Church obtained charitable status in March 2009, the Elders of the Church becoming Managing Trustees.  In 2009 the Charity Commission authorised a Scheme to incorporate the 1872 Property Charity and the later Manse Charity within the framework of the Working Funds Charity. 

## **Appointment and Induction of Trustees** 

Recommendations to appoint new Elders are brought to the Church members' meeting by the existing Eldership. They are appointed at a Church meeting via a resolution that must be passed by a 70% majority of the quorum then present. They receive training within trustee meetings. 

## **Organisation** 

The Elders, who are also the Trustees, regularly review, discuss and direct the affairs of the Church, meeting together on a monthly basis.  The Deacons, including the Church Secretary and Treasurer, look after the practicalities of running the Church.  The Church Management Committee (comprising Elders, Deacons and others) meets on a bimonthly basis to discuss matters relating to the practicalities of running the Church.  However, it is the decisions taken at the Church members’ meetings that are pre-eminent.  These are held four times per year. 

## **Risk Management** 

The Trustees have reviewed the major risks which the Church faces and confirm that they have established systems to mitigate those risks, including a reserves policy (see below). 

## **OBJECTIVES AND ACTIVITIES** 

## **Objectives** 

The primary objective of the church is the advancement of the Christian faith both in the United Kingdom and overseas by teaching the Bible, and promoting prayer and fellowship among believers.  It also seeks the advancement for public benefit of religious education and the care of the aged, poor, sick and disabled. 

## **Staffing** 

The Church employed a senior pastor, Kenneth Brownell, and an associate pastor, Graham Shearer.  It also employed a pastoral worker, Carys Woodbridge; a Youth & Community worker, Andy Mossop; and an assistant minister who has responsibility for a satellite congregation in Newham, Martin Oriakhi. Together these form the Pastoral Team, which maintains a regular ministry and pastoral care for the congregation.  In addition, the Church employed as youth workers, Antonia Sheldrake (full-time) and Amin Mohammed (part-time) and as administrators, Portia Omo-Bare and Neil Scott (both part-time). 

Graham Shearer ended employment with the Church in August 2020. 

Page 2 



**EAST LONDON TABERNACLE BAPITIST CHURCH** 

## TRUSTEES’ ANNUAL REPORT (CONTINUED) 

## **The Church’s ministries** 

The church seeks to provide: 

- a programme of events that aim to deepen the spiritual lives of the individual members and provide opportunities for non-members to hear the Christian gospel, including: 

   - one Sunday morning service and one Sunday evening service; 

   - a Sunday morning Sunday school; 

   - a mid-week programme, including a monthly central Prayer Meeting and Fellowship Groups meeting in various homes; 

   - outreach to local schools, taking assemblies and holding lunchtime meetings; 

   - various other teaching and evangelistic ministries; 

   - a cold weather night shelter in partnership with other churches; 

   - English language classes; 

   - A lunchtime club for the over 60s. 

- encouragement to its members to pray for the wider church and the needs of the world; 

- support for a number of missionary partners, currently  Russia (Siberia), South Africa, Namibia and Madagascar; 

- teaching the English language to people in the community; 

- facilities to enable a Russian, Korean and Brazilian Churches to meet; 

- a recreational facility for young people from the wider community; 

- a building that will adequately provide for Sunday worship and facilitate meetings throughout the week for the encouragement of the Christian faith amongst all ages within the local community; 

- facilities to enable local organisations and individuals to hold meetings; and 

- to support the church plant at the Ridley Community Church in Newham. 

Volunteers are actively involved in assisting with almost all of the Church's activities. 

## **Grant making policy** 

Gifts to external organisations and individuals are considered by the Trustees or delegated committees on the basis of need and fulfilment of the charitable objectives.  There are no upper or lower limits of support. 

The Church also makes gifts from a separate charity, the Archibald Brown Trust (Registration No 228069), which exists to provide support to members of the Church in financial difficulties. 

## **Public Benefit** 

The trustees confirm that they have complied with the duty in section 17(5) of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission and, in particular, the specific guidance on charities for the advancement of religion. 

## **Fundraising** 

The Church engaged in fundraising in the form of receiving free-will offerings and donations, some of which were giftaided, from members and regular attenders of the fellowship. We did not contract the service of any professional fundraisers as defined by section 58 of the Charities Act 1992. Other than publicly inviting an offering at every service, we do not engage in persistent fundraising or intrusive fundraising practices with any of our donors, including vulnerable people, and we never have private or coercive discussions with individuals about their giving. Our fundraising practices are ethical and in accordance with Biblical principles. No complaints were received about our fundraising practices. 

Page 3 



**EAST LONDON TABERNACLE BAPITIST CHURCH** 

TRUSTEES’ ANNUAL REPORT (CONTINUED) 

## **ACHIEVEMENTS AND PERFORMANCE** 

## **Review of the year ended 31 December 2020** 

Since March 2020, due to the Covid-19 pandemic and associated lockdowns, the Church was not able to run many of its usual activities. Sunday services were moved online and then brought back in-person once allowed and under social distancing guidelines, while other activities were run online and/ or in-person within Government guidance. 

- The Church regularly reviewed and updated its risk assessment to take into account Government rules and advice related to the spread of Covid-19, including social distancing, the wearing of masks and not singing in the building. 

- The Church invested in new tech equipment to facilitate live streaming of morning services and Zoom accounts to facilitate evening virtual ‘gatherings’, prayer meetings, fellowship groups and Church members meetings. 

- In light of Kenneth Brownell’s retirement in September 2021 the Church began searching for a new Senior Minister. An open application process was conducted. The deadline for applications was 31st December 2020 

## **Financial Review** 

The Church continues to be dependent on donations and legacies made by the Church members and other donors, which for the year ended 31 December 2020 totalled £284,057 (2019: £284,911). Total income amounted to £341,895 (2019: £337,074). Expenditure on charitable activities amounted to £332,546 (2019: £378,390). Income for the year exceeded expenditure by £9,349 (2019: Expenditure exceeded income by £41,316). Details of the financial position of the Church are set out on pages 9 to 18. 

At the year end, the charity held funds of £4,145,597 of which £97,623 were restricted, £3,919,732 were restricted and £128,242 were unrestricted. 

## **Investment policy** 

The Church holds no assets for long term investment purposes.  Cash balances are held at CAF Bank and balances not expected to be used in the short term are held in a deposit account in order to earn interest. 

## **Reserves policy** 

The Church seeks to maintain sufficient reserves to meet on-going liabilities for a minimum of a three-month period with no income.  A separate fund exists for an on-going project of refurbishment and adaptation of the building to meet current and future requirements. 

## **Plans for the Future** 

Covid-19 and subsequent lockdowns have continued to impact the activities of the Church, but many have been running where possible.  During 2021, the Church expects: 

- to continue efforts to bring the message of the Bible to adults and children in the community by means of special meetings and events; 

- to continue activities for young people in the community; 

- to develop links with the local Muslim community; 

- Kenneth Brownell to retire in September 2021 

Already in 2021 the Church has: 

- voted to appoint Raymond Brown as a new senior minister. He will move into the Church manse at Sharon Gardens by December and begin his role in January 2022; 

- begun meeting again on Sundays with only limited Covid-19 restrictions in line with Government guidance 

Page 4 



EAST LONDON TABERNACLE BAPITIST CHURCH
TRUSTEES, ANNUAL REPORT (CONTINUED)
Related Parties
The Elders of East London Tabernacle Baptist Church are all trustees of the Archibald Brown Trust The Trust,
established by the first minister of the Church. exists lo provide financial relief lo members and regular allendees of the
Church when they are in financial cjifficulty.
STATEMENT OF TRUSTEES, RESPONSIBILITIES
The trustees are responsible for preparing the Trustees, Annual Report and the financial slalemenls in 2ccordance with
applicable law and United Kingdom Accounting Standards including Financial Reporting Standard 102." The Financial
Reporting Standard applicable in the UK and Republic of Ireland Iuniled Kingdom Generally Accepted Accounting
Praclicel.
The law applicable to charities in England & Wales requires the Iruslees lo prepare financial statements for each financial
year which give a true and fair view of the slate ol affairs ol the charity and of the income and expenditure of the charity
for that period. In preparing these financial slalemenls. the Iruslees are required to..
select Suitable accounting policies and then apply them consistently.,
observe the methods and principles in the Charities SORP.,
make judgments and accounting estimates that are reasonable and prudent,.
stale whether applicable aecounling standards have been followed. subject to any material departures disclosed
and explained in the financi81 slalemenls, and
prepare the financial stslemenls on the going concern basis unless il is inappropriate lo presume that the charity
will continue in business.
The trustees are responsible for maintaining proper accounting records which disclose with reasonable accuracy al any
lime the financial position of the charity and enable them lo ensure that the Iinancial statements comply with the Charities
Act 2011. the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also
responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and
detection of fraud and other irregularities.
The Iruslees are responsible for the maintenance and integrity of the charity and financial information included on the
charity's website. Legislation in the United Kingdom goveming the preparation and dissemination of linanei81 statements
may differ from legislation in other jurisdictions.
Alastair Steven
On behalf of the Trustees
Adam Wilson
sl,.I,
Date..
2112/LI
Page 5

INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF **EAST LONDON TABERNACLE BAPTIST CHURCH** 

## **Opinion** 

We have audited the financial statements of East London Tabernacle Baptist Church (the “Charity”) for the year ended 31 December 2020 which comprise the Statement of Financial Activities, the Balance Sheet and the related notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). 

In our opinion, the financial statements: 

- give a true and fair view of the state of the Charity’s affairs as at 31 December 2020 and of its incoming resources and application of resources for the year then ended; 

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; 

- have been prepared in accordance with the requirements of the Charities Act 2011. 

## **Basis for opinion** 

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and the provisions available for small entities, in the circumstances set out in note 14 to the financial statements, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 

## **Conclusions relating to going concern** 

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate. 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Charity’s ability to continue as a going concern for a period of at least 12 months from when the financial statements are authorised for issue. 

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. 

## **Other information** 

The other information comprises the information included in the annual report, including the trustees’ report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information 

We have nothing to report in this regard. 

Page 6 



INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF **EAST LONDON TABERNACLE BAPTIST CHURCH** 

## **Matters on which we are required to report by exception** 

In the light of the knowledge and understanding of the Charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report. 

We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 requires us to report to you if, in our opinion: 

- adequate and proper accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or 

- the financial statements are not in agreement with the accounting records and returns; or 

- certain disclosures of trustees’ remuneration specified by law are not made; or 

- we have not received all the information and explanations we require for our audit. 

## **Responsibilities of the trustees** 

As explained more fully in the trustees’ responsibilities statement, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. 

In preparing the financial statements, the trustees are responsible for assessing the Charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the Charity or to cease operations, or have no realistic alternative but to do so. 

## **Auditor’s responsibilities for the audit of the financial statements** 

We have been appointed as auditor under section 145 and report in accordance with the Act and relevant regulations made or having effect thereunder. 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. 

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: 

Based on our understanding of the company, we identified that the principal risks of non-compliance with laws and regulations related to charity, employment and health & safety and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities Act 2011. 

We assessed the susceptibility of the charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by making enquiries of management, considering the internal controls in place and discussion amongst the engagement team. 

We determined that the principal risks were related to valuation of investment property, recognition of legacy income and government grants. 

In response to the risks identified we designed procedures which included but were not limited to reviewing third party evidence of investment property valuations, discussions with management, review of legacy correspondence, testing the calculation of claims made under the Coronavirus Job Retention Scheme and agreeing financial statement disclosures to underlying supporting documentation. 

Page 7 



INDEPENDENT AUDITORS, REPORT
TO THE TRUSTEES OF
EAST LONDON TABERNACLE BAPTIST CHURCH
There are inherent limitations in the audit procedures described above. The more removed that laws and regulations are from
financial Iransa¢lions, the less likely il is that we would become aware of non-compliance. Material misslalemenls that arise
due to fraud can be harder lo delect than those that arise from error as they may involve deliberate concealment or collusion.
A further des¢riplion of our responsibilities fDr the audit of the financial slalemenls is located on the FinarKial Reporting
CouncAI's website al.. wwN.frc.org.uklaudilorsresponsibililies. This description forms part of our auditor's report.
Use of our report
This report is made solely to the Charity's Iruslees, as a body. in accordance with Part 4 of the Charities (Accounts and
Reports) Regulations 2008. Our 8ud11 work has been undertaken so that we might $18le lo the Charity's trustees those matters
we are reqLJired lo slate to them in an auditor's report and for no other purpose_ To the fullest extent permitted by law, we do
not accept or assume responsibility to anyone other than the charrty and the charity's Iruslees as a body, for our audit work,
for this report. or for the opinions we have formed.
Jacob Cavenagh & Skeet
Statutory Auditor
Chartered Accountants
5 Robin Hood Lane
Sutton
Surrey
SM12SW
Dated..
Jacob Cavenagh & Skeel is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as
auditor of a company under section 1212 of th& Comp8nies Act 2006.
Page 8

**EAST LONDON TABERNACLE BAPTIST CHURCH** STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31[st] DECEMBER 2020 

|**Note**<br>**Income from:**<br>Donations and legacies:<br>2<br>Charitable activities<br>3<br>Other trading activities<br>Investments<br>HMRC JRS Grant<br>**Total income**<br>**Expenditure on:**<br>Charitable activities<br>4<br>**Total expenditure**<br>Net gains on investments<br>**Net income/(expenditure)**<br>Transfers between funds<br>**Net movement in funds**<br>**Reconciliation of funds**<br>**Total funds brought forward**<br>**Total funds carried forward**|**Unrestricted**<br>**Fund**<br>**Designated**<br>**Funds**<br>**Restricted**<br>**Funds**<br>**2020**<br>**Total**<br>**Unrestricted**<br>**Fund**<br>**Designated**<br>**Funds**<br>**Restricted**<br>**Funds**<br>**2019**<br>**Total**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>242,070<br>-<br>41,987<br>284,057<br>202,161<br>-<br>82,750<br>284,911<br>5,849<br>-<br>5,603<br>11,452<br>9,264<br>-<br>2,613<br>11,877<br>43,862<br>-<br>-<br>43,862<br>40,180<br>-<br>-<br>40,180<br>12<br>-<br>-<br>12<br>106<br>-<br>-<br>106<br>2,512<br>-<br>-<br>2,512<br>-<br>-<br>-<br>-|
|---|---|
||294,305<br>-<br>47,590<br>341,895<br>251,711<br>-<br>85,363<br>337,074|
||303,914<br>-<br>28,632<br>332,546<br>290,938<br>-<br>87,452<br>378,390|
||303,914<br>-<br>28,632<br>332,546<br>290,938<br>-<br>87,452<br>378,390|
||-<br>-<br>-<br>-<br>-<br>-<br>-<br>-|
||(  9,609)<br>-<br>18,958<br>9,349<br>(39,227)<br>-<br>(2,089)<br>(41,316)<br>(7,787)<br>-<br>7,787<br>-<br>(11,986)<br>-<br>11,986<br>-|
||(17,396)<br>-<br>26,745<br>9,349<br>(51,213)<br>-<br>9,897<br>(41,316)|
||145,638<br>3,919,732<br>70,878<br>4,136,248<br>196,851<br>3,919,732<br>60,981<br>4,177,564|
||**128,242**<br>**3,919,732**<br>**97,623**<br>**4,145,597**<br>**145,638**<br>**3,919,732**<br>**70,878**<br>**4,136,248**|



Page 9 



EAST LONDON TABERNACLE BAPTIST CHURCH
BALANCE SHEET
AS AT 31" DECEMBER 2020
Note
2020
2019
Fixed assets
Tangible fixed assets
Investment properties
3,643,753
300 000
3,943.753
3,662,053
300 000
3,962.053
Current assets
Debtors
Cash al bank and in hand
113,519
62,207
130 834
193.041
213.396
Creditors
Amounts falling due within one year
10
1115521
118 8461
Net current assets
201 844
174 195
Net assets
Funds
Unreslricled funds
Designated funds
Restricted funds
128,242
3,919,732
145,638
3.919,732
11
12
13
414
Approved by the Trustees and signed on their behall by..
Alastair Steven
Adam Wilson
s/,.l.
Dale..
¥IL/C(
Page 10

**EAST LONDON TABERNACLE BAPTIST CHURCH** NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[st] DECEMBER 2020 

## **1 ACCOUNTING POLICIES** 

The principal accounting policies are set out below and have been adopted consistently throughout the year. 

## **a) Basis of accounting** 

The accounts are prepared under the historical cost convention and in accordance with the Charities Act 2011 and the Charities Statement of Recommended Practice (Charities SORP (FRS 102)) and Financial Reporting Standard 102 (FRS 102). 

East London Tabernacle meets the definition of a public benefit entity under FRS 102. 

## **b) Fund accounting** 

General funds represent the funds of the church that are not subject to any restriction regarding their use and are available for application on the general purposes of the church. 

The designated funds represent the assessed rebuilding cost used for insurance purposes of the three properties held in Trust for the use of East London Tabernacle Baptist Church, and any legacy income received during the year, to be used for refurbishment and maintenance of premises. 

Restricted funds are monies to be used in accordance with specific restrictions imposed by donors. The aim and nature of each restricted fund is set out in the note 10. 

The accounts include all transactions, assets and liabilities for which the church is responsible by law. They do not include the accounts of church groups that owe their main affiliation to another body nor those that are informal gatherings of church members. 

## **c) Incoming resources** 

All incoming resources are included in the Statement of Financial Activities when the church is legally entitled to the income and the amount can be quantified with reasonable accuracy. 

For Job Retention Scheme government grant income, the income is recognised in the period to which the underlying furloughed staff costs relate to. 

## **d) Legacies** 

Legacies are included when the charity has entitlement to the income, it is probable the income will be received and the amount can be reliably measured. 

## **e) Resources expended** 

Expenditure is accounted for on an accruals basis and has been analysed between: 

- Grants, which are recognised as a liability when the church is under obligation to make a payment or the grant is paid over; 

- Activities directly relating to the work of the church; and 

- Governance costs of the charity which includes all expenditure to comply with statutory and legal requirements. 

## **f) Pensions** 

A stakeholder pension scheme is available to all staff. Contribution rates are agreed on an individual basis, and are made to the stakeholder pension scheme, or personal pension schemes held by employees. All contributions are made on a defined contribution basis. 

Page 11 



**EAST LONDON TABERNACLE BAPTIST CHURCH** NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31[st] DECEMBER 2020 

## **1 ACCOUNTING POLICIES (continued)** 

## **g) Tangible fixed assets and depreciation** 

Tangible fixed assets costing more than £1,000 are capitalised, and stated at cost less accumulated depreciation. In 2007, the properties were included in the accounts at an assessed rebuilding cost used for insurance purposes. In accordance with the SORP, this cost is treated as the initial carrying amount and is not regarded as a revaluation. 

Depreciation is provided at rates calculated to write off the cost or valuation of the fixed asset, less their estimated residual value, over their expected useful lives on the following bases: 

No depreciation is provided on Land and Buildings. The charity adopts a policy of maintaining properties to a high standard, which prolongs their useful lives and enhances their residual value. As such the trustees feel that any depreciation arising is immaterial. All maintenance costs are written off as expenditure in the Statement of Financial Activities. 

Office Equipment 33.3% on cost Fixtures and Fittings 10% on cost 

## **h) Investment properties** 

Properties not held for charitable use and instead for investment return are shown as fixed asset investments. Fixed asset investments are stated at market value and revalued each year. 

## **i) Cash and current asset investments** 

Cash includes cash and short term highly liquid investments with a short maturity of three months or less from the date of opening of the deposit. 

## **j) Creditors and provisions** 

Creditors and provisions are recognised where the charity has a present obligation arising from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are recognised at their settlement amount. 

## **2 DONATIONS AND LEGACIES** 

|**Unrestricted Restricted**<br>**Funds**<br>**Funds**<br>**£**<br>**£**<br>**Youth work Grants and Donations**<br>Central Foundation Girl’s School<br>-<br>-<br>East End Homes<br>-<br>8,167<br>London Youth<br>-<br>-<br>London Borough of Tower Hamlets<br>-<br>-<br>St Paul’s Way Trust School<br>-<br>840<br>The Jack Petchey Foundation<br> -<br>850<br>**Total Youth work Income**<br>-<br>9,857<br>**Grants**<br>-<br>-<br>**Donations**<br>223,570<br>32,130<br>**Legacies**<br>18,500<br> -<br>242,070<br>41,987|**Total**<br>**2020**<br>**£**<br>-<br>8,167<br>-<br>-<br>840<br>850<br>9,857<br>-<br>255,700<br>18,500<br>284,057|**Total**<br>**2019**<br>**£**<br>1,260<br>7,564<br>600<br>6,000<br>900<br>1,500<br>17,824<br>25,000<br>237,178<br>4,909<br>284,911|
|---|---|---|



Page 12 



**EAST LONDON TABERNACLE BAPTIST CHURCH** NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31[st] DECEMBER 2020 

## **3 INCOME FROM CHARITABLE ACTIVITIES** 

|**Unrestricted Restricted**<br>**Funds**<br>**Funds**<br>**£**<br>**£**<br>Spring Fayre<br>-<br>5,603<br>Other Income<br>5,849<br> -<br>5,849<br>5,603<br>**4**<br>**RESOURCES EXPENDED**<br>**Unrestricted Restricted**<br>**Support**<br>**£**<br>**£**<br>**£**<br>**Cost of charitable activities**<br>Church ministry<br>227,087<br>18,232<br>4,995<br>Establishment costs<br>36,629<br>-<br>760<br>Grants and gifts to Mission and<br>Christian causes<br>29,440<br>10,400<br>-<br>Governance costs<br>5,003<br> -<br> -<br>298,159<br>28,632<br>5,755|**Total**<br>**2020**<br>**£**<br>5,603<br>5,849<br>11,452<br>**2020**<br>**£**<br>250,314<br>37,389<br>39,840<br>5,003<br>332,546|**Total**<br>**2019**<br>**£**<br>2,613<br>9,264<br>11,877<br>**2019**<br>**£**<br>303,527<br>46,605<br>23,401<br>4,857<br>378,390|
|---|---|---|



Support costs have been allocated to unrestricted church ministry and establishment costs at a rate of 2% of total expenditure in these areas (including restricted costs) to estimate the amount of management time. Most support functions in the Church, such as finance, IT and personnel were carried out by volunteers. 

Establishment costs are those incurred maintaining the church properties, for utilities and for property insurance. This also includes depreciation of £20,244 (2019: £24,423). 

Governance costs includes fees payable to the auditor (including VAT) of £3,384 (2019: £3,204) relating to the audit and £1,619 (2019: £1,652) relating to other services. 

## **5 GRANTS AND GIFTS TO MISSION AND CHRISTIAN CAUSES** 

|**Institutional grants**<br>Christ Church Care Centre – South Africa<br>Crosslinks – J&C Hooker<br>Crosslinks (R&R Brown)<br>Unevangelised Field Mission – A McRoy<br>**Individual grants and gifts**<br>**Total grants and gifts**|**2020**<br>**£**<br>9,901<br>9,335<br>635<br>2,101<br>21,972<br>17,868<br>39,840|**2019**<br>**£**<br>8,431<br>6,716<br>-<br>2,201<br>17,348<br>6,053<br>23,401|
|---|---|---|



All grants are given either for the advancement of the Christian faith, or the relief of poverty. 

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**EAST LONDON TABERNACLE BAPTIST CHURCH** NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31[st] DECEMBER 2020 

## **6 STAFF COSTS** 

|Wages and salaries<br>Social security costs<br>Pension costs<br>Average number of employees (including paid trustees)|**2020**<br>**£**<br>185,485<br>10,093<br>8,088<br>203,666<br>**2020**<br>**No.**<br>10|**2019**<br>**£**<br>202,306<br>12,529<br>9,934<br>224,769<br>**2019**<br>**No.**<br>11|
|---|---|---|



No minister or employee was paid in excess of £60,000 during the year (2019: Nil). No related party transactions took place. 

A total of £nil expenses incurred on behalf of the Church was reimbursed trustees during the year to 31st December 2020 (2019: £nil) in relation to travel. 

The minister and assistant minister, who both serve as trustees, were paid the following amounts (including pension contributions and benefits in kind) for their service to the Church in this capacity. Remuneration is authorised by clause 10 of the church’s governing constitution. 

|**Kenneth Brownell** **(Minister)**<br>Wages and salaries<br>Social security costs<br>Pension costs|**2020**<br>**£**<br>23,687<br>2,466<br>1,080<br>27,233|**2019**<br>**£**<br>35,027<br>3,650<br>1,440<br>40,117|
|---|---|---|



The total remuneration of the key management personnel of the charity listed on page 1, was as follows: 

|Wages and salaries<br>Social security costs<br>Pension costs|**2020**<br>**£**<br>72,154<br>6,741<br>5,776<br>84,671|**2019**<br>**£**<br>82,720<br>7,864<br>4,969<br>95,553|
|---|---|---|



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**EAST LONDON TABERNACLE BAPTIST CHURCH** NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31[st] DECEMBER 2020 

## **7 TANGIBLE FIXED ASSETS** 

|**Cost**<br>At 1stJanuary 2020<br>Additions<br>At 31stDecember 2020<br>**Accumulated depreciation**<br>At 1stJanuary 2020<br>Charge for the year<br>At 31stDecember 2020<br>**Net Book Value**<br>At 31stDecember 2020<br>At 31stDecember 2019<br>**8**<br>**INVESTMENT PROPERTIES**<br>**Fair Value:**<br>At January 2020<br>Revaluation<br>At 31 December 2020<br>**9**<br>**DEBTORS**<br>**Due within one year:**<br>Income tax recoverable<br>Legacies receivable<br>Other debtors and prepayments<br>**10**<br>**CREDITORS**<br>**Amounts falling due within one year:**<br>Other creditors and accruals|**Freehold**<br>**Land &**<br>**Buildings**<br>**£**<br>3,600,000<br> -<br>3,600,000<br>-<br> -<br> -<br>3,600,000<br>3,600,000|**Fixtures**<br>**&**<br>**Office**<br>**Fittings**<br>**Equipment Total**<br>**£**<br>**£**<br>**£**<br>271,785<br>18,223<br>3,890,008<br>1,944<br> -<br>1,944<br>273,729<br>18,223<br>3,891,952<br>210,922<br>17,033<br>227,955<br>19,648<br>596<br>20,244<br>230,570<br>17,629<br>248,199<br>43,159<br> 594<br>3,643,753<br>60,863<br>1,190<br>3,662,053<br>**2020**<br>**2019**<br>**£**<br>**£**<br>300,000<br>300,000<br> -<br> -<br>300,000<br>300,000<br>**2020**<br>**2019**<br>**£**<br>**£**<br>87,349<br>58,335<br>18,500<br>-<br>7,670<br>3,872<br>113,519<br>62,207<br>**2020**<br>**2019**<br>**£**<br>**£**<br>11,552<br>18,846<br>11,552<br>18,846|
|---|---|---|



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**EAST LONDON TABERNACLE BAPTIST CHURCH** NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31[st] DECEMBER 2020 

## **11 UNRESTRICTED FUNDS** 

|**General**<br>**Designated**<br>East London Tabernacle,<br>Burdett Road, Mile End<br>9 Sharon Gardens,<br>Hackney<br>23 Ennerdale House<br>Capital Investment (Legacy) Reserve<br>**General**<br>**Designated**<br>East London Tabernacle,<br>Burdett Road, Mile End<br>9 Sharon Gardens,<br>Hackney<br>23 Ennerdale House<br>Capital Investment (Legacy) Reserve|**Balance at**<br>**Balance at**<br>**1st Jan 20**<br>**Income**<br>**Expenditure Transfers 31st Dec 20**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>145,638<br>294,305<br>(303,914)<br>(7,787)<br>128,242<br>3,300,000<br>-<br>-<br>-<br>3,300,000<br>300,000<br>-<br>-<br>-<br>300,000<br>300,000<br>-<br>-<br>-<br>300,000<br>19,732<br> -<br> -<br> -<br>19,732<br>3,919,732<br> -<br> -<br> -<br>3,919,732<br>**Balance at**<br>**Balance at**<br>**1st Jan 19**<br>**Income**<br>**Expenditure Transfers 31st Dec 19**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>196,851<br>251,711<br>(290,938)<br>(11,986)<br>145,638<br>3,300,000<br>-<br>-<br>-<br>3,300,000<br>300,000<br>-<br>-<br>-<br>300,000<br>300,000<br>-<br>-<br>-<br>300,000<br>19,732<br> -<br> -<br> -<br>19,732<br>3,919,732<br> -<br> -<br> -<br>3,919,732|
|---|---|



The designated funds represent the assessed rebuild cost used for insurance purposes of the properties held in Trust for the use of the Church, and any amounts designated by the trustees for refurbishment and maintenance of the premises. 

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**EAST LONDON TABERNACLE BAPTIST CHURCH** NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31[st] DECEMBER 2020 

## **12 RESTRICTED FUNDS** 

|**RESTRICTED FUNDS**|||||||
|---|---|---|---|---|---|---|
||**Balance at**|||||**Balance at**|
||**1st Jan 20**|**Income**|**Expenditure**|**Transfers**||**31st Dec 20**|
||**£**|**£**|**£**|**£**||**£**|
|Missionary Gifts|||||||
|(special appeals and regular giving)|1,450|2,483|-||-|3,933|
|Community Youth Work|3,553|10,834|(  7,463)||-|6,924|
|Church Youth Work|9,647|5,108|-||-|14,755|
|Thank Offering and Building|13,396|500|-||-|13,896|
|Russian School|11,539|-|-||-|11,539|
|Sunday School|10,000|-|-||-|10,000|
|Spring Fayre|-|5,603|(  9,900)|4,297||-|
|Basketball Camp|1,902|-|-||-|1,902|
|Fellowship|-|-|(     500)||500|-|
|Muslim Outreach Project|-|7,424|(10,414)|2,990||-|
|Ridley Community Church|14,824|13,640|(355)||-|28,109|
|Lebanon Appeal|-|1,998|-||-|1,998|
|Holiday Club|4,567|-|-||-|4,567|
||70,878|47,590|(28,632)|7,787||97,623|
||**Balance at**|||||**Balance at**|
||**1st Jan 19**|**Income**|**Expenditure**|**Transfers**||**31st Dec 19**|
||**£**|**£**|**£**|**£**||**£**|
|Missionary Gifts|||||||
|(special appeals and regular giving)|1,300|150|-||-|1,450|
|Community Youth Work|16,585|18,729|(31,761)||-|3,553|
|Church Youth Work|-|9,647|-||-|9,647|
|Thank Offering and Building|13,396|-|-||-|13,396|
|Russian School|11,539|-|-||-|11,539|
|Training Grant|-|-|(     654)||654|-|
|Mozambique Appeal|-|1,981|(  2,160)||179|-|
|Sunday School|-|10,000|-||-|10,000|
|Crossteach|-|1,000|(  3,250)|2,250||-|
|Spring Fayre|-|2,613|(  8,430)|5,817||-|
|Basketball Camp|1,902|-|-||-|1,902|
|Fellowship|-|-|(     250)||250|-|
|Muslim Outreach Project|4,722|4,929|(10,466)||815|-|
|Night Shelter|-|125|(  1,390)|1,265||-|
|Ridley Hall|5,963|10,274|(  1,413)||-|14,824|
|Ridley Christian Centre Support|-|25,000|(25,756)||756|-|
|Holiday Club|5,574|915|(1,922)||-|4,567|
||60,981|85,363|(87,452)|11,986||70,878|



## _**Transfers**_ 

The transfers from the general fund represent shortfalls in the income received over relevant expenditure. _**Funds**_ 

- The Missionary Gifts fund is made up of a variety of smaller funds where specific donations have been received for the support of individuals or mission projects. 

- The Community Youth Work fund receives donations and grants towards the work of the Church on community and youth-based projects. 

- The Thank Offering and Building fund receives income towards the maintenance and refurbishment of the Church building. 

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**EAST LONDON TABERNACLE BAPTIST CHURCH** NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31[st] DECEMBER 2020 

## **12  RESTRICTED FUNDS (continued)** 

- The Russian School fund receives income towards the running costs of the Russian classes. 

- The Spring Fayre fund receives income towards donations made to the Christ Church Care Centre. 

- The Basketball Camp is a youth outreach activity held annually in the school summer holidays. It is focused on getting young people aged 13 -18 years old to understand things like leadership, team-working and we introduce the gospel to them. It is run by members of the church with support from an ex National Basketball Association (NBA) member. 

- The Fellowship fund receives income towards the support of members in financial need that the Church assists. 

- The Muslim Outreach Project is for donations received towards the costs of a gospel outreach project to the Muslim community. In Mile End. 

- The Night Shelter project is for donations received towards the running costs of holding a Night Shelter in partnership with other local churches. 

- The Ridley Community Church fund is a grant received towards the supporting the salary of an Assistant Pastor at Ridley Christian Centre. 

- The Lebanon Appeal related to collections that were passed on to the Barnabas Fund in relation to the Beirut explosion in August 2020. 

- The Holiday Club fund receives donations and grants to offset the cost of running a one-week summer club for local children. 

## **13 ANALYSIS OF NET ASSETS BETWEEN FUNDS** 

|**Unrestricted Designated Restricted**<br>**£**<br>**£**<br>**£**<br>Fixed Assets<br>Land and Buildings<br>-<br>3,600,000<br>-<br>Fixtures, Fittings and Equipment<br>43,753<br>-<br>-<br>Investment Properties<br>-<br>300,000<br>-<br>Current Assets<br>Debtors<br>113,519<br>-<br>-<br>Cash at Bank and in Hand<br>(  17,478)<br>19,732<br>97,623<br>Current Liabilities<br>(11,552)<br> -<br> -<br><br>Net Assets<br>128,242<br>3,919,732<br>97,623|**Total**<br>**£**<br>3,600,000<br>43,753<br>300,000<br>113,519<br>99,877<br>(11,552)<br>4,145,597|
|---|---|



## **14 OTHER PROFESSIONAL SERVICES PROVIDED BY THE AUDITORS** 

In common with many other entities of our size and nature we use the auditor to assist with the preparation of our financial statements. 

## **15 LEASING COMMITMENTS** 

## **Operating leases** 

The total future minimum lease payments under operating leases at 31 December 2020 were payable as set out below: 

|Within one year<br>Within two to five years<br>The operating lease charges for the year were:<br>Hire of office equipment||**2020**<br>**£**<br>2,496<br>3,744<br>6,240<br> <br>2,496<br>2,496||**2019**<br>**£**<br>2,496<br>6,240<br>8,736<br>4,299<br>4,299|
|---|---|---|---|---|
||<br>||<br>||
||||||



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