2022-12-31-accounts - East London Tabernacle Baptist Church

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EAST LONDON TABERNACLE BAPTIST CHURCH

Charity Registration Number: 1128266

31 December 2022

Annual Report and Financial Statements

Tandem Accounting Limited Chartered Accountants 17 Heathville Road London N19 3AL

EAST LONDON TABERNACLE BAPTIST CHURCH

Annual Report and Financial Statements 2022 Contents

	Page
Legal and administrative information	2
Annual Report of the Trustees	4
Independent Auditors' report to the Trustees	8
Statement of financial activities	11
Balance sheet	12
Notes to the financial statements	13

EAST LONDON TABERNACLE BAPTIST CHURCH

Legal & Administrative Information For the year ended 31 December 2022

Charity Name	East London Tabernacle Baptist Church.
Charity number	1128266. The church was formally registered with the Charity Commission on 25 February 2009.
Affiliations	The church is an Independent Evangelical Church in association with the Fellowship of
	Independent Evangelical Churches.
Principal Address	East London Tabernacle Baptist Church, Burdett Road, London, E3 4TU
Governing	The Church’s governing documents are as	follows:
Documents	• 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.
Objective	ELT Baptist Church's primary objective is	the advancement of the Christian faith both in the
	United Kingdom and overseas by teaching the Bible and promoting prayer and fellowship
	amongst believers. It also seeks the advancement for public benefit of religious education and the
	care of the aged, poor, sick, and disabled.
Trustees	The Trustees who served during the year or who were serving at the date of this report were:
Managing Trustees:	Adekunle Adeoye Treasurer
	Marc Lapointe
	Alastair Steven (Resigned 1 August 2022)
	Adam Wilson Chairman
	Andrew Kight Assistant Minister (Appointed 1 September 2022)
	Raymond Brown Senior Minister (Appointed 1 January 2022)
Holding Trustee for	London Baptist Property Board Limited
Land & Buildings:	235 Shaftesbury Avenue
	London WC2H 8EP
Key Management	Those in charge of planning, directing, controlling, running, and operating the Charity, including
Personnel	those members of staff who are the senior		management personnel to whom the trustees have
	delegated significant authority or responsibility in the day-to-day running of the charity, are the
	Managing Trustees and the Church Administrator. The key management personnel are
	considered to be the Church elders, pastoral team and deacons.
Bankers	CAF Bank Ltd
	25 Kings Hill Avenue
	Kings Hill, West Malling
	Kent ME19 4JQ
Auditors	Jacob Cavenagh & Skeet
	Chartered Accountants
	5 Robin Hood Lane
	Sutton
	Surrey SM1 2SW

EAST LONDON TABERNACLE BAPTIST CHURCH

Legal & Administrative Information For the year ended 31 December 2022

Solicitor

Carter Lemon Camerons LLP 3[rd] Floor, 20 King Street London EC2V 8EG

EAST LONDON TABERNACLE BAPTIST CHURCH

Annual Report of the Trustees For the year ended 31 December 2022

The Trustees submits its annual report and the financial statements of the Church for the year ended 31 December 2022. The financial statements have been prepared in the format prescribed by the Statement of Recommended Practice: Accounting and Reporting by Charities (SORP2019 (FRS102)) and the Financial Reporting Standard 102. The legal and administrative information set out earlier in this document forms part of this report.

1. Structure, Governance & Management

1.1 Trustees

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 80% majority of the quorum then present. They receive training within trustee meetings.

1.2 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, look after the practicalities of running the Church. . Outputs from their activities/decisions are periodically relayed to the Elders. However, it is the decisions taken at the Church members’ meetings that are preeminent. These are held four times per year.

1.3 Risk Management

The Trustees’ primary concern and objective is the discipling of individuals for the glory of God. Whilst it is the Trustees’ policy to trust wholly in the Lord that He will work out His purpose to this end, the Trustees also acknowledge that it has a responsibility, both as individual Members and as a body of Members, for the identification and proper management of risks faced by the Trustees in achieving their primary aim. The Trustees have therefore assessed the major risks to which the church is exposed, in particular those relating to the specific operational areas of the church, its investments and its finances. The Trustees believe that, by monitoring reserve levels, by ensuring that controls exist over key financial systems, and by examining the operational risks faced by the Trustees, they has established effective systems and procedures to mitigate those risks.

A brief summary of the risk register is as follows.

Operational Area	Risk	Management
Security & Safeguarding	There is a major security, safeguarding, or health & safety incident	Safeguarding – there is a safeguarding policy in place and two designated safeguarding officers. All volunteers who have direct contact with children or vulnerable adults as well as Pastoral team members are required to have a DBS, which is renewable every three years; we ensure that insurance policies are up-to-date and cover us for identified risks; we maintain up-to-date incident logs
Finances	Income and expenditure: there is a risk that expenditure could exceed income	To mitigate these potential risks the Trustees have approved an unrestricted funds budget which shows a surplus of income over expenditure. Monthly management accounts are prepared comparing income and expenditure with budget; church officials ensure proper authorisation of expenditure in line with the target operational cash reserves of two months’ budgeted expenditure.
	Potential liabilities: there is an uninsured liability which crystallises	To mitigate this potential risk, we ensure that insurance policies are up-to- date and include employer’s liability, public liability, buildings insurance, contents insurance andpropertyowner’s liability

1.4 Personnel

The Church employed a Minister Raymond Brown and Assistant Minister Andy Kight. It also employed a Woman’s worker, Kim Patterson, a Youth & Community worker, Andy Mossop. 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 an administrator, Portia Omo-Bare (part-time).

EAST LONDON TABERNACLE BAPTIST CHURCH

Annual Report of the Trustees For the year ended 31 December 2022

2. Activities & Strategies

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.

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, 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.
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, South Africa and Namibia;
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.

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 gift-aided, 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.

3. Achievements and Performance

Following the retirement of Kenneth Brownell (September 2021) and Carys Woodbridge (April 2022), the church appointed successors. Raymond Brown succeeded K Brownell as Senior Minister and Kim Patterson succeeded C Woodbridge as ELT’s Women’s Worker. Also appointed in 2022 was an Assistant Minster (Andy Kight).

From January 2022, Raymond Brown as Senior Minister took on the role of lead preacher assisted by Andy Kight. The church’s preaching programme was supported by the other elders, gifted church members and guest preachers.

In 2022, while complying with government’s coronavirus guidance ELT returned to having all its activities/meetings inperson. The church regularly reviewed its risk assessment to ensure it was in-step with any updated government advice.

4. Financial Review

The church’s main sources of funding are the free will offerings of church members and others in attendance at church meetings, and income from hiring out the church’s premises and facilities.

EAST LONDON TABERNACLE BAPTIST CHURCH

Annual Report of the Trustees For the year ended 31 December 2022

4.1 Financial Activity and Financial Position

The Statement of Financial Activities and Balance Sheet can be found on pages 11 and 12 respectively. The Church’s reserves decreased by £41,913 during the year (2021 – increased by £82,841). The balance sheet shows total net assets of £4,186,525 (2021: £4,228,438).

Included in total funds are amounts totalling £38,995 (2021: £79,515) which are restricted. These monies have either been raised for, and their use restricted to, specific purposes, or they comprise donations subject to donor imposed conditions. Full details of these restricted funds can be found in note 10 to the accounts together with an analysis of movements in the year.

4.2 Reserves Policy

The Trustees has examined the requirements for free reserves, i.e. those unrestricted funds not invested in tangible fixed assets and programme related investments. The Trustees considers that, given the nature of the church’s work, free reserves should be equivalent to approximately 6 months’ routine general fund expenditure, plus committed future expenditure on other projects, where funds permit. The Trustees are of the opinion that this provides sufficient flexibility to cover temporary shortfalls in incoming resources and will allow the church to cope and respond to unforeseen emergencies whilst specific action plans are implemented. At 31 December 2022 the church had net free reserves of £222,530 (2021: £185,923) as follows:

Total reserves Less: restricted funds Less: unrestricted fixed assets used for the continuing work of the church Free reserves Free reserves requirement: 6 month’s budgeted routine expenditure	2022	2021 £ 4,228,438 (79,515) (3,963,000) 185,923 150,000
	£

	4,186,525
	(38,995)
	(3,925,000)

	222,530


	150,000

The Trustees are aware that free reserves are in excess of the free reserves requirement and are actively looking at ways in which the gap can be legitimately reduced in accordance with the charitable objectives.

4.3 Investment Policy

The Church holds an investment property which it plans to re-establish for the use of staff. 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.

4.4 Grants 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.

5. Plans for Future Periods

During 2023, 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
continue activities for young people in the community
develop links with the local Muslim community

EAST LONDON TABERNACLE BAPTIST CHURCH

Annual Report of the Trustees For the year ended 31 December 2022

6. Responsibilities of Trustees for the Financial Statements

The trustees are responsible for preparing the Trustees' Annual Report and the financial statements in accordance 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 (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England & Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the income and expenditure of the charity for that period. In preparing these financial statements, the trustees 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;
state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements, and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.

The trustees are responsible for maintaining proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial 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 trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

7. Approval

The report of the Trustees was approved by the Trustees on 31st October 2023 and signed on its behalf by:

Trustee

EAST LONDON TABERNACLE BAPTIST CHURCH

Report of the Independent Auditor to the Trustees of East London Tabernacle Baptist Church

We have audited the financial statements of East London Tabernacle Baptist Church (the “Charity”) for the year ended 31 December 2022 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 2022 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.

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.

EAST LONDON TABERNACLE BAPTIST CHURCH

Report of the Independent Auditor to the Trustees of East London Tabernacle Baptist Church

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.

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 the valuation of investment property and recognition of legacy income.

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 and agreeing financial statement disclosures to underlying supporting documentation.

EAST LONDON TABERNACLE BAPTIST CHURCH

Report of the Independent Auditor 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 transactions, the less likely it is that we would become aware of non-compliance. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the Charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the Charity’s trustees those matters we are required to state 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 charity and the charity’s trustees 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 SM1 2SW

31 October 2023 Dated: ............................................

Jacob Cavenagh & Skeet 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 the Companies Act 2006.

EAST LONDON TABERNACLE BAPTIST CHURCH

Statement of Financial Activities For the year ended 31 December 2022

Unrestricted Funds 2022 £ 234,097 858 36,760 18,645		Unrestricted Funds 2021 £ 213,666 575 25,395 16,221
	Total
	2022
	£

	261,563
	2,758
	36,760
	18,645

290,360		255,857
	319,726

6,679 272,969 279,648 (38,000) (27,288) 25,895 (1,393) 4,148,923 4,147,530		2,769 209,708

	6,739
	316,900

		212,477
	323,639

		63,000
	(38,000)

		106,380
	(41,913)

		(5,431)
	0

		100,949 4,047,974
	(41,913)

	4,228,438

		4,148,923

	4,186,525

EAST LONDON TABERNACLE BAPTIST CHURCH

Balance Sheet As at 31 December 2022

Note Fixed Assets Tangible Assets 6 Investments 7 Current Assets Debtors 8 Cash At Bank And In Hand Creditors - Amounts Falling Due Within One Year 9 Net Current Assets Net Assets Represented by: Restricted Income Funds 10 Unrestricted Income Funds 11 Total Funds	Unrestricted Funds 2022 £ 3,625,220 325,000 3,950,220 94,055 112,439 206,494 9,184 197,310 4,147,530 - 4,147,530 4,147,530		Restricted Funds 2022 £ - - 0 - 38,995 38,995 - 38,995 38,995 38,995 - 38,995			Total 2021 £ 3,633,568 363,000
				Total
				2022
				£

				3,625,220
				325,000

						3,996,568 106,675 132,288
				3,950,220

				94,055
				151,434

						238,963 7,093
				245,489

				9,184

						231,870
				236,305

						4,228,438
				4,186,525

						79,515 4,148,923


				38,995
				4,147,530

						4,228,438
				4,186,525

The financial statements were approved by the Trustees on 31st October 2023 and signed on its behalf by:

Trustee

EAST LONDON TABERNACLE BAPTIST CHURCH

Notes to the Financial Statements For the year ended 31 December 2022

1. Accounting Policies

East London Tabernacle is an unincorporated charity. The registered office is Burdett Road, London E3 4TU.

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

Basis of accounting

The financial statements have been prepared under the Charities Act 2011 and in accordance with the Charities Statement of Recommended Practice (Charities SORP (FRS 102)) and Financial Reporting Standard 102 (FRS 102). The financial statements are drawn up on the historical cost basis of accounting except for the revaluation of investment properties which are shown at market value.

The financial statements include all transactions, assets and liabilities for which the Church is responsible in law. They do not include the accounts of church groups that owe an affiliation to another body or those that are informal gatherings of church members.

The Church meets the definition of a public benefit entity under FRS 102.

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 £.

Going Concern

There are no material uncertainties about the charity’s ability to continue as a going concern and accordingly the accounts have been drawn up on a going concern basis.

Income recognition

Voluntary income and donations (including legacies) are accounted for once the Church has entitlement to the income, it is probable the income will be received, and the amount of income receivable can be reliably measured. Income from the recovery of tax on gift aided donations is accounted for in the period to which the relevant donation is received. Grant income is recognised on a receivable basis.

The income from trading activities includes rental income from the letting of church premises and freehold land and buildings which is accounted for when earned.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Church; this is normally upon notification of the interest paid or payable by the bank.

Expenditure recognition

Expenditure is accrued as soon as a liability is considered probable, and the amount of obligation can be measured reliably. The Church is not registered for VAT and accordingly expenditure includes VAT where appropriate.

Charitable expenditure includes those costs in fulfilling the Church’s principal objects, as outlined in the Report of the Trustees. These include grants payable and governance costs:

Grants payable are payments made to third parties in furtherance of the Church’s objects. In the case of an unconditional grant offer this is accrued once the recipient has been notified of the grant award. The notification gives the recipient a reasonable expectation that they will receive the grant. Grants awards that are subject to the recipient fulfilling performance conditions are only accrued when the recipient has been notified of the grant and any remaining unfulfilled condition attaching to that grant is outside of the control of the Church.
Governance costs comprise all costs involving the public accountability of the Church and its compliance with regulation and good practice. These costs include costs related to the independent examination and legal fees.

Rentals under operating leases are charged as incurred over the term of the lease.

EAST LONDON TABERNACLE BAPTIST CHURCH

Notes to the Financial Statements For the year ended 31 December 2022

1. Accounting Policies (continued)

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.

Tangible Fixed Assets

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

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.

Investments

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, based on publicly available local sales information.

Debtors

Debtors are included at the settlement amount due. Prepayments are valued at the amount prepaid.

Cash at bank and in hand

Cash at bank and in hand 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.

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.

Financial instruments

The charity only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

Fund accounting

The funds held by the charity are either:

Unrestricted general funds - these are funds which can be used in accordance with the charitable objects at the discretion of the trustees.
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 - these are funds that can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

EAST LONDON TABERNACLE BAPTIST CHURCH

Notes to the Financial Statements

For the year ended 31 December 2022

2. Income

Unrestricted Funds 2022 £ Donations & legacies Offerings and donations 207,027 Income tax reclaimed 26,865 Grants - Legacies 205 234,097 Charitable activities Away days 858 Children & Youth subscriptions - 858 Other trading activities Hall rental income 31,828 Spring Fayre - Other income 4,932 36,760 Investment income Property rental income 18,328 Bank Interest 317 18,645 290,360	Restricted Funds 2022 £ 3,146 - 24,320 - 27,466 - 1,900 1,900 - - - 0 - - 0 29,366				Total 2021 £ 232,104 - 25,657 -
			Total
			2022
			£


			210,173
			26,865
			24,320
			205

					257,761 - 575
			261,563

			858
			1,900

					575 21,017 8,029 4,378
			2,758

			31,828
			-
			4,932

					33,424 15,800 421
			36,760

			18,328
			317

					16,221
			18,645

					307,981
			319,726

3. Expenditure – Raising Funds

3. Expenditure – Raising Funds
Advertising Ennerdale House Hire caretaking fees Collecting agent fees and charges	Unrestricted Funds 2022 £ Restricted Funds 2022 £ 538 60 5,761 - 175 - 205 - 6,679 60		Total 2021 £ - 2,769 - -
		Total
		2022
		£

		598
		5,761
		175
		205

			2,769
		6,739

EAST LONDON TABERNACLE BAPTIST CHURCH

Notes to the Financial Statements

For the year ended 31 December 2022

4. Expenditure on Charitable Activities

Unrestricted Funds 2022 £ Provision of Ministers and of support staff (see note 4a) 164,282 Church life & outreach 22,987 Gifts & grants (see note 4b) 15,879 Office costs 15,130 Provision of Church building and facilities 49,856 Governance 4,835 272,969	Restricted Funds 2022 £ 12,490 13,634 6,019 84 11,704 - 43,931				Total 2021 £ 158,538 41,892 33,174 14,648 30,937 6,182
			Total
			2022
			£

			176,772
			36,621
			21,898
			15,214
			61,560
			4,835

					285,371
			316,900

Included within Provision of Ministers and of support staff are the ministers’ accommodation costs of £9,600.

4a Staff Costs

Included within Expenditure on Charitable Activities are the following staff costs: Gross salaries Employer’s National Insurance Employer’s Annual Allowance Pension contributions Of which the following salaries and pension contributions were in relation to Key Management Personnel: Gross salaries National Insurance Pension contributions No employee received emoluments in excess of £60,000 during the year. The average number of employees during the year: Full time workers Part time workers		2022		2021
		£		£

		152,903		145,773
		12,597		11,128
		(5,000)		(4,000)
		6,672		5,637

		167,172		158,538



		88,305		103,564
		8,860		10,037
		4,352		7,632


		2022		2021
		Number		Number

		5		5
		2		3

		7		8

No employee received emoluments in excess of £60,000 during the year.

EAST LONDON TABERNACLE BAPTIST CHURCH

Notes to the Financial Statements For the year ended 31 December 2022

4. Expenditure on Charitable Activities (continued)

4b. Gifts to organisations and individuals

Included within Expenditure on Charitable Activities are the following gifts to organisations and individuals:

Unrestricted Funds 2022 £ Restricted Funds 2022 £ Gifts to organisations Alex & Nadia Richardson 6,309 - Christ Church Care Centre – South Africa 200 3,480 Crosslinks – J&C Hooker 8,170 700 Unevangelised Field Mission – A McRoy - 1,200 14,679 5,380 Gifts to individuals 1,200 639 15,879 6,019				Total 2021 £ - 11,710 7,820 2,600
		Total
		2022
		£

		6,309
		3,680
		8,870
		1,200

				22,130 11,044
		20,059

		1,839

				33,174
		21,898

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

5. Net (Deficit)/Surplus

Net (deficit)/surplus is stated after charging:

Unrestricted Funds 2022 £ Restricted Funds 2022 £ Independent auditor’s remuneration 4,835 - Other fees paid to independent auditor - - Depreciation – owned assets 8,349 - Hire of office equipment under operating leases 2,526 -				Total 2021 £ 3,906 2,276 12,952 2,544
		Total
		2022
		£

		4,835
		-
		8,349
		2,526

EAST LONDON TABERNACLE BAPTIST CHURCH

Notes to the Financial Statements For the year ended 31 December 2022

6. Tangible Fixed Assets

Freehold land & buildings: Church £ Freehold land & buildings: Manses £ Fixtures, fittings & equipment £ Cost At 1 January 2022 3,300,000 300,000 294,719 Additions - - - Disposals - - - At 31 December 2022 3,300,000 300,000 294,719 Depreciation At 1 January 2022 - - 261,150 Charge For Year - - 8,349 Disposals - - - At 31 December 2022 0 0 269,499 Net Book Value At 31 December 2022 3,300,000 300,000 25,220 At 31 December 2021 3,300,000 300,000 33,569	Tota £ 3,894,719 - -
	3,894,719
	261,150 8,349 -
	269,499
	3,625,220
	3,633,569

All of the fixed assets are used for charitable purposes. The church’s properties are as follows:

	31 December 2022
ELT Baptist Church, Burdette Road, E3 4TU	3,300,000
9 Sharon Gardens,London,E9 7RX	300,000
	3,600,000

7. Fixed Asset Investments

nvestment property. At 1 January Revaluation Disposals/redemptions At 31 December		2022		2021 £ 363,000 - -
		£

		363,000
		(38,000)
		-

				363,000
		325,000

The church’s investment property is: Flat 23 Ennerdale House, Hamlets Way, London, E3 4TY. The trustees have valued the property at fair value at the balance sheet date by reviewing online valuations for comparable properties in the same area.

EAST LONDON TABERNACLE BAPTIST CHURCH

Notes to the Financial Statements

For the year ended 31 December 2022

8. Debtors

Prepayments Youth work grant debtors Gift Aid Receivable Other Debtors		2022		2021 £ 5,585 5,667 84,868 10,555
		£

		6,881
		-
		82,476
		4,698

				106,675
		94,055

9. Creditors - Amounts Falling Due Within One Year

Accruals Trade creditors Other creditors including tax and social security		2022		2021 £ 5,700 1,393 -
		£

		4,800
		4,326
		58

				7,093
		9,184

10. Restricted Funds

At 1 January 2022 £ 2,146	Income £ Expenditure £ Transfers £ - - (2,146)	Income £ Expenditure £ Transfers £ - - (2,146)	Income £ Expenditure £ Transfers £ - - (2,146)	Gains/ (losses) £ -	At 31	At 31
					December
						2022
						£
						0
22,430	3,040	(5,703)	-	-		19,767
7,350	22,865	(30,020)	-	-		195
-	1,680	(1,043)	-	-		637
4,150	1,126	(1,738)	-	-		3,538
2,055	-	(107)	(1,796)	-		152
1,998	-	-	(1,998)	-		0
5,380	-	(5,380)	-	-		0
155	135	-	-	-		290
8,416 11,539 13,896 - 79,515	- - - 520 29,366	- - - - (43,991)	(8,416) (11,539) - - (25,895)	- - - - 0		0
						0
						13,896
						520


						38,995

The transfers to the general fund are to correct historic errors where costs had not been allocated to restricted funds in the year they were incurred.

EAST LONDON TABERNACLE BAPTIST CHURCH

Notes to the Financial Statements For the year ended 31 December 2022

10. Restricted Funds (continued)

10b Prior year Basketball Camp Church Youth Work Community Youth Work Holiday Club Ken Brownell Retirement Gifts Lebanon Appeal Missionary Gifts Muslim Outreach Project Night Shelter Ridley Community Church Russian School Spring Fayre Sunday School Thank Offering and Building	At 1 January 2021 £ 1,902 14,755 6,924 4,567 - 1,998 3,933 - - 28,109 11,539 - 10,000 13,896 97,623	At 1 January 2021 £ 1,902 14,755 6,924 4,567 - 1,998 3,933 - - 28,109 11,539 - 10,000 13,896 97,623		Income £ Expenditure £ Transfers £ 244 - - 10,542 (2,867) - 16,081 (15,655) - 271 (688) - 3,590 (1,535) - - - - 2,947 (1,500) - 5,004 (10,435) 5,431 155 - - 5,261 (24,954) - - - - 8,029 (8,029) - - (10,000) - - - - 52,124 (75,663) 5,431	Income £ Expenditure £ Transfers £ 244 - - 10,542 (2,867) - 16,081 (15,655) - 271 (688) - 3,590 (1,535) - - - - 2,947 (1,500) - 5,004 (10,435) 5,431 155 - - 5,261 (24,954) - - - - 8,029 (8,029) - - (10,000) - - - - 52,124 (75,663) 5,431	Income £ Expenditure £ Transfers £ 244 - - 10,542 (2,867) - 16,081 (15,655) - 271 (688) - 3,590 (1,535) - - - - 2,947 (1,500) - 5,004 (10,435) 5,431 155 - - 5,261 (24,954) - - - - 8,029 (8,029) - - (10,000) - - - - 52,124 (75,663) 5,431	Gains/ (losses) £ - - - - - - - - - - - - - - 0	At 31	At 31
								December
									2021
									£

									2,146
									22,430
									7,350
									4,150
									2,055
									1,998
									5,380
									0
									155
									8,416
									11,539
									0
									0
									13,896


									79,515

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

Descriptions of the restricted funds are as follows:

Basketball Camp fund: 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.
Community Youth Work and Church Youth Work: receive donations and grants towards the work of the Church on community and youth-based projects.
Holiday Club fund: receives donations and grants to offset the cost of running a one-week summer club for local children.
Ken Brownell Retirement Gifts Fund: was made up of collections for gifts on Ken Brownell’s retirement.
Lebanon Appeal: related to collections that were passed on to the Barnabas Fund in relation to the Beirut explosion in August 2020.
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.
Muslim Outreach Project fund: is for donations received towards the costs of a gospel outreach project to the Muslim community in Mile End.
Night Shelter project: is for donations received towards the running costs of holding a Night Shelter in partnership with other local churches.
Ridley Community Church fund: receives grants and donations towards supporting the salary of an Assistant Pastor at Ridley Community Church. Since it became independent in April 2021, we will support Ridley Community Church financially with a regular contribution for the next three years.
Russian School: fund receives income towards the running costs of the Russian classes.
Spring Fayre: fund receives income towards donations made to the Christ Church Care Centre.
Sunday School: contributes towards the salary of the children’s worker.
Fellowship fund: receives income towards the support of members in financial need that the Church assists.
Thank Offering and Building fund: receives income towards the maintenance and refurbishment of the Church building.

EAST LONDON TABERNACLE BAPTIST CHURCH

Notes to the Financial Statements

For the year ended 31 December 2022

11. Unrestricted Funds

11. Unrestricted Funds
11a Current year General Designated Funds East London Tabernacle 9 Sharon Gardens, Hackney 23 Ennerdale House 11b Prior year General Designated Funds East London Tabernacle 9 Sharon Gardens, Hackney 23 Ennerdale House Capital Investment (Legacy) Reserve		At 1 January 2022 £ 185,923 3,300,000 300,000 363,000		Income £ Expenditure £ Transfers £ 290,360 (279,648) 25,895 - - - - - - - - - 0 0 - 290,360 (279,648) 25,895	Gains/ (losses) £ - - - (38,000) (38,000) (38,000)	At 31
						December
							2022
							£

							222,530


							3,300,000
							300,000
							325,000

		3,963,000
						3,925,000

		4,148,923
						4,147,530


			Income £ Expenditure £ Transfers £ 255,857 (212,477) 14,301 - - - - - - - - - - - (19,732) 0 0 (19,732) 255,857 (212,477) (5,431)		Gains/ (losses) £ - - - 63,000 - 63,000 63,000
	At 1 January 2021 £ 128,242 3,300,000 300,000 300,000 19,732 3,919,732 4,047,974						At 31
						December
							2021
							£

							185,923


							3,300,000
							300,000
							363,000
							0


						3,963,000


						4,148,923

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.

12. Operating Lease Commitments

The total future minimum lease payments under non-cancellable operating leases are payable:

Not later than one year Later than one year and not later than five years		2022		2021 £ 2,496 1,248 3,744
		£

		2,328
		6,790

		9,118

EAST LONDON TABERNACLE BAPTIST CHURCH

Notes to the Financial Statements

For the year ended 31 December 2022

13. Related Party Transactions

Raymond Brown, a Managing Trustee, received gross remuneration of £36,000 (2021: £nil) and pension contributions of £1,350 (2021: £nil) during the year in his employed capacity as Minister. Raymond Brown also occupied the church manse, rent free, as part of his contract of employment for the better performance of his duties. Remuneration is authorised by clause 10 of the church’s governing constitution.

Andy Kight, a Managing Trustee appointed on the 1[st] of September 2022, received gross remuneration of £9,000 (2021: £nil) and pension contributions of £113 (2021: £nil) in his employed capacity as Assistant Minister. Andy Kight also occupied manse accommodation provided by the church, as part of his contract of employment for the better performance of his duties. Remuneration is authorised by clause 10 of the church’s governing constitution.

During the year a total of £797 (2021: £nil) in expenses was reimbursed to two Trustees for books and a conference on behalf of the Church.

The Trustees gave a total of £21,048 (2021: £17,449) in unrestricted offerings and donations during the year.