## **ANNUAL REPORT AND ACCOUNTS**
## **OF**
**WEST WORTHING BAPTIST CHURCH**
**For the Year Ended 31st December 2022**
**WEST WORTHING BAPTIST CHURCH**
## **Legal and Administrative Information**
## **Minister and Diaconate (Trustees):**
**–**
Revd. L Damascena Minister Mr B King Secretary Mrs J Valentine Treasurer Mrs E Clark Mr M Fitzalan-Hawkes Mr I Mann Mr R Saville BA Dip Arch Mr D Standing Resigned 24[th] February 2022 Mrs M Warner Resigned 22[nd] September 2022 Mrs Jean White Appointed 24[th] February 2022
**Property Trustees** The Baptist Union Corporation Limited Baptist House 129 Broadway Didcot Oxfordshire OX11 8RT **Church Address:** West Worthing Baptist Church South Street Tarring Worthing West Sussex BN14 7LU **Bankers:** CAF Bank Limited **Independent Examiner:** Mr T L Burstow. 115 St Andrews Road Worthing West Sussex BN13 1HR
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**WEST WORTHING BAPTIST CHURCH**
## **Report of the Trustees for the year ended 31 December 2022**
The Trustees are pleased to present their annual report together with the accounts for the year ended 31st December 2022 The Trustees have adopted the provisions of the Statement of Recommended Practice (Charity SORP 2021) Accounting and Reporting by Charities FRS 102, and The Charities Act 2011, in preparing the annual report and financial statements of the entity.
## **Charitable Object**
The name of the charity is the West Worthing Baptist Church (hereafter referred to as the Church). The Church had been an excepted Charity, but was registered with the Charity Commission on the 20[th] March 2009, under Charity Number 1128701.The Church meets the definition of a public benefit entity under FRS102.
The Principal purpose of the charity is the advancement of the Christian faith according to the principles of the Baptist denomination to include the advancement of education, community service and such other general charitable purposes in such parts of the United Kingdom and the world, as the Church shall determine.
## **Membership of the Baptist Union of Great Britain**
The Church is a member of the Baptist Union of Great Britain (hereafter called the Union), and as such has lodged with the Union the Trust Deed relating to the use of the premises, which the Church occupies. In accordance with the constitution of the Union, the Church has authority for all matters relating to the running of the Church, provided that any decisions taken do not contravene the provisions of the Trust Deed, including the appointment of Ministers and all financial matters. The Church receives guidance from time to time from the Union on matters relating to its responsibilities as a charitable organisation. The Ministers it appoints must be accredited members of the Register of Ministers held by the Union.
## **Authority for day-to-day running of the Church**
Authority is invested in the Church Meeting where only those who are members of the Church are allowed to vote. The Church has an open membership (the meaning of which is explained in the Church Constitution). The Church meeting elects a body of Deacons known as a Diaconate (who, together with the Minister, act as Trustees) and from whom are chosen a Treasurer and Secretary.
Relevant matters may be submitted to the Church meeting by the Trustees for guidance, or may be raised by members for further consideration by the Trustees. Though the Constitution permits decisions to be made at Church meetings by appropriate majorities, the Church seeks to work by consensus wherever possible.
## **Make-up of Diaconate (Trustees)**
The Diaconate currently consists of seven members. Eight is the normal number but one resigned in September 2022. Members normally serve for a period of three years, three members concluding their current period of service at each AGM.
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**WEST WORTHING BAPTIST CHURCH**
## **Report of the Trustees for the year ended 31 December 2022**
## **Objects and Activities**
## **Mission Statement**
As members of the Christian Church, we meet together for worship, we seek to share the faith, and are here as a community to care
## **Church Attendance and Worship**
In order to achieve the principal objective, which is set out above, the Church provides a variety of activities both for its membership and for the community generally. The aim is to show the love of Jesus Christ in both word and deed and to bring people into a closer relationship with Him and one another in community. These activities are centred around, but not exclusive to the Sunday morning Worship.
During 2022, a baptism class was provided for 4 baptismal candidates. Three of them had their own class as they are teenagers and required a class suitable for their target age. The minister provided classes for the fifth candidate. All five made the decision to be baptised and the meetings for the teenagers have continued until the end of the year. Another group that was created was the Bible Study group, which met monthly.
Two music groups were also formed, thanks to the joining of new members who brought musical talents with them and some experience of church music. These have alternated during services, with half the music still being provided by the organist.
The church as a faith organisation, aims to welcome everyone irrespective of their lifestyle or background. As such, church meeting spent some time during 2022 discussing a declaration that would express the commitment of love and welcome. The final wording of this declaration has been agreed as: _“We promise to welcome, respect and love all people regardless of race, sex, language, ability, social standing and sexual orientation, including members of the LGBT+ community.”_
All people in the statement above are welcome in our church to not only attend services, join homegroups and any events but also to become full members of the church according to their faith in Christ. This includes taking communion, experiencing baptism, opportunities for volunteering, partaking in voting and decision-making during meetings. Members of this church agree to welcome everyone with equal love, friendship and acceptance.
The meeting unanimously agreed to this wording and all new members who have joined during the course of the year have been presented with it and have also been asked to agree at a private meeting with the minister. The church hopes that this statement will prove effective in inviting members of minorities to feel safe and welcome in the church and avoid, where possible, any occurrence of prejudice on the part of members toward newcomers, however unintended that may be.
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**WEST WORTHING BAPTIST CHURCH**
## **Report of the Trustees for the year ended 31 December 2022**
## **Ongoing Pastoral Care and Ministry**
As the first year with only one minister, pastoral care has changed slightly. The minister has counted on the help of deacons and various members for visiting and overall provision of pastoral care, particularly that of elderly people who are either house bound or in care homes.
Two deacons were tasked with overseeing the pastoral care of members and the wider congregation, carrying greater pastoral responsibility under the leadership of the Minister. They have been invaluable to many who have become home bound or gone into full time care as well as many others. With the arrival of new members and several attendees, with widespread needs for pastoral care, time has become more strained. However, the pastoral deacons spent countless hours visiting, phoning and updating others on the needs of those who were in need of practical help or prayers. Rev Hazel Sherman has also assisted from the hospital, visiting those of the congregation who were receiving hospital care and updating the minister and pastoral deacons of their progress.
As the year drew to a close, one of the pastoral deacons resigned, whilst the remaining pastoral deacon has strengthened his commitment to those who are in need of care. The minister continues to oversee this care, with continued help from deacons and members who understand well the aim of ministry.
The church has recommenced a regular lunch which is now held fortnightly on a Friday and sees not only elderly members of the local community, but also people connected with the church of all ages. A few volunteers were found and after beginning with catered meals at first, with much help from one of the deacons, the Friday lunch has now begun to cook its own meals in house, thus hopefully lowering costs so that meals can be charged on a voluntary donation basis. Several people are involved in assisting with shopping, cooking, washing up and serving and attendance has slowly risen over the course of the year.
Other activities continue as before, such as homegroups, Bible study, Messy church and Sparrow club as well as the coffee bar space which is now a registered “warm space” for anyone who wishes to be in the heated space, unconditionally of making a purchase from the coffee bar.
## **Paid Employees**
The Church adopts the guidance of the Baptist Union in matters relating to its paid employees. This includes meeting or exceeding suggested stipend requirements, annual holiday and pension provision (where this is required and adopted). Any contracts of employment post January 2001 follow guidelines laid down by the Union. Minimum wage requirements are met or exceeded.
## **Volunteers**
The Church depends on the work and support of its volunteers to achieve the aims of the charity.
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**WEST WORTHING BAPTIST CHURCH**
## **Report of the Trustees for the year ended 31 December 2022**
## **Letting and use of Premises**
The Church has a policy of letting its premises for use by external organisations at an equitable rate in order to defray the running expenses of the premises which it occupies. By “external” organisations is meant those not directly connected with, and run by, the Church. These include the letting of a suite of rooms to the local branch of the national charity “Relate” on a long-term lease.
We were also pleased to be able to continue the rent of rooms by Superstar Arts, and to acknowledge a developing relationship in the building whereby we recognised and affirmed our commitment to one another and agreed to make joint grant applications where possible. Whilst some groups who previously used our premises have not returned, many of them have and there are some who have begun using the premises that had not before. However, with the increase in usage by Superstar Arts during lockdowns, SSA continues to be the main user of premises aside from the church itself.
The partnership between the church and Superstar Arts, through the use of the coffee bar, has continued successfully and income has slowly increased. SSA runs the coffee bar on some of the days, whilst the church runs it on other days. All proceeds are shared, with some of the responsibility and costs being shared as well. This partnership has allowed the coffee bar to be opened to the community for longer hours every day. Because of this, we have registered as a “warm space” and welcome anyone who wishes to enjoy the heated area during opening hours irrespective of making a purchase.
Where the aims of any organisation, such as the local branch of Relate, are seen to be in line with the wider purposes of the church in its desire to support the community around it, the church claims exemption from the requirement to charge the full commercial rate for the use which is made of its premises and regards this approach as a way of giving support to that organisation.
## **Achievements and Performance**
The Church does not measure the success of its programmes only in numbers, including financial numbers, but also in less tangible areas like fellowship, worship, learning and encouragement.
The church does not consider this fellowship and encouragement to be geared only to members or friends, but also to users of premises and neighbours who are in the wider community. We have been happy to provide access to the Church through the coffee bar, Sparrows, the mother and toddler group run by the church, and Messy Church. In so doing, the church hopes to be a positive force in the lives of families who are not connected to a place of worship- providing not only a space for them but a source of friendship and care.
These provisions were not without challenge. Namely, the lower numbers of volunteers as some of our people now find themselves older and less energetic. However, there are still many who are strongly dedicated to the community.
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## **Report of the Trustees for the year ended 31 December 2022**
## **Service to the Community**
With the economic crisis that has developed during the year, the church has responded to various pleas from members of the local community for emergency food purchases whilst on a waiting list for a local food bank that struggled to supply food for everyone. These were small tokens of assistance in the form of groceries and several contacts made between the food bank and families by the minister.
The church continues to provide a warm space in the coffee bar to anyone who needs it and provides a space for families with young children via the mother and toddler group and messy church. Occasional events such as the Christmas Fun Day have also taken place again for the first time since the pandemic.
## **Other projects and programs during the year**
We were pleased following the receipt of an Awards For All grant from the National Lottery that the disabled toilet was completely refurbished. The church funded and installed a new radiator, as well as a new cooker in the kitchen, partly funded by SSA.
The many challenges of maintaining a large building with a group of mainly volunteers has led the trustees to appoint one deacon with the responsibility to oversee repairs and maintenance. This person has carried out minor repairs himself, throughout the year, and has arranged for larger repairs to be carried out by external businesses.
Beyond the local, the Church supports the Baptist Missionary Society and the Home Mission Fund with financial contributions and continues its commitment to the national charity Christian Aid.
## **The Day-to- Day running of the Church**
This, as always, relies heavily on volunteers, working alongside the minister and with the help of the Premises Administrator, who holds a part time paid role. Key responsibilities that many people are involved in are to be found in administrating, security, cleaning and maintenance of premises. Throughout this year, one such responsibility was the renewal of Risk Assessments and their amending continued to be a regular feature at deacons’ meetings with the assistance of the Premises Administrator. Some members have taken up security responsibilities, such as checking premises in the evening and locking up when all groups have left.
The Church operates systems to ensure that all people working with children are appropriately vetted through the Disclosure and Barring Service.
## **Future Aims**
Serious consideration must be given over the next few months, to meet the needs of the now several young people attending worship.
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**WEST WORTHING BAPTIST CHURCH**
## **Report of the Trustees for the year ended 31 December 2022**
## **Financial Matters**
We are very pleased to report a successful year, when we have been able, for the first time in many years, to end the year with a surplus on our general fund of £13,599.
Our Church members and congregation continued their support in monetary terms as well as in fellowship and care for each other and the income from the letting of our premises played a very substantial part in the positive results.
The financial report, our SOFA, shows a surplus for the year of £33,113 after the receipt of a legacy and a donation in memory totalling £3,330, and due to a buy in of the Baptist Pension Scheme with an insurance company, where we were able to write off our pension debt completely..
Many members and friends now contribute to the ongoing work of the church by setting up a regular standing order. Cash offerings are still collected in a plate at the door. The income from Superstar Arts for their use of our premises is a major contribution to our rental income, although we now have many regular bookings with a variety of groups.,
We were able to place 10% of our income from the use of the premises, as agreed by the Church into the Use of Premises Refurbishment Account . This will be used for major projects of refurbishment of which the Church is in great need.
Since the end of 2021, continuing with one Minister, made it a definite aim to make sure that we were able to meet our day to day expenditure in future from current income. It was decided to reduce our giving to the BMS so that, together with our contribution to Christian aid, our home giving and overseas giving were similar vein. We were fortunate that we had obtained fixed rates for Gas and Electricity prior to the energy crisis towards the end of the year. This enables us to go forward into 2023 being able to provide the community with a “warm space” without fear of extensive cost increases.
However, we remain conscious that on present predictions, 2024 will show extensive increases in gas prices which will inevitably increase our expenditure. We also remain conscious that we are very reliant on a small number of very committed members and that a great proportion of our regular givers are advanced in years. Therefore, a reduction in our income from offerings and donations could have a detrimental effect in the future and we remain vigilant to future uncertainties.
An application to the National Lottery, Awards for All, was successful in obtaining a grant for the total refurbishment of the disabled toilet facilities. This grant had been held in the balance sheet as a creditor at the end of last year and following the work completed in January, both the grant and the expenditure have been recognised in this year’s accounts.
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## **Report of the Trustees for the year ended 31 December 2022**
Due to the accounting requirements of FRS102 and SORP2015, where a Church is in a multi employer defined benefit scheme, and where there has been an agreed deficit contribution funding plan, this liability had to be recognised on the balance sheet. However, in the summer of 2022, The Baptist Pension Scheme secured a buy in with an insurance company, with the aim of ascertaining a complete buy out of the scheme as soon as practicable. The result of this, was that the scheme was able to cover the cost of this from the current funding and therefore deficit contributions ceased to be applicable from August 2022. This means that the deficit shown in our balance sheet at the end of 2021 could now be written out and produced an increase in our SOFA accordingly.
Further information with regard to the pension deficit can be found on pages 14 -16
## **Investment Policy**
Funds have been invested for the best return commensurate with their being available to further the Church’s aims and commitments. The Church's reserves are held in Building Society accounts and the Baptist Union, where access is available on giving appropriate notice. Since interest rates are now on the rise, money has been moved between accounts to obtain the best rates available. Our aim to make sure that no account holds more than the maximum covered by the FSCS compensation scheme and therefore where necessary money will be moved accordingly.
The Church also continues to invest some monies with the Baptist Union in order that they are able to help other Churches in their building projects.
## **Reserves Policy and Risk Management; intentions for the future.**
Having regard to advanced age of a number of its members and to the fact that most of its reserves derive from legacy money, the Church believes that it is right to maintain an effective level in its reserves against extraordinary capital expenditure and significantly reduced income.
However, the Church is committed to its work in the community. We remain conscious of the current level of inflation and will review budgets regularly to make sure that we are on top of future cost increases. The Budget reviewed in Autumn 2022 was able to confirm that we are on track to meet our commitments from reserves at least to the end of 2023, ,
The Church is very aware that advancing years and cost inflation can put financial restraints on the commitment of its members and that reliance continues to be made on the letting of its premises in order to contribute to its day to day expenditure.
We also need to be aware that the age and size of our Church premises demands resources for its continual maintenance and major work will need to be undertaken in the not too distant future to this end, funding opportunities are been explored to find ways of making the premises more eco compliant. A reduction in our income from offerings and donations could have a detrimental effect in the future and we remain vigilant to future uncertainties.
Risk assessment is ongoing.
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## **Report of the Trustees for the year ended 31 December 2022**
## **Trustees’ Responsibilities**
The Trustees are required to prepare accounts for each financial year, which give a true and fair view of the state of affairs of the Church and the surplus or deficit for that period. In preparing those accounts, the Trustees are required to:
- Select suitable accounting policies and then apply them consistently,
- Make judgements and estimates that are reasonable and prudent, and
- Prepare the accounts on the going concern basis unless it is inappropriate to presume that the Church will continue in business.
The Trustees are responsible for maintaining proper records, which disclose with reasonable accuracy at any time the financial position of the Church. The Trustees are also responsible for safeguarding the assets of the Church and hence take reasonable steps for the prevention and detection of fraud and other irregularities.
## **Independent Examiner**
The Independent Examiner is Terry Burstow
The report was approved by the Trustees on and signed on their behalf by
## **Brian King**
## **Secretary**
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**WEST WORTHING BAPTIST CHURCH**
## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31[ST] DECEMBER 2022**
|**Note**
**Income and Endowments from:**
**Donations and Legacies**
Offerings
Donations
Legacies
2
**Charitable Activities**
General Fundraising
Rent
3
Use of Premises
Coffee Bar
Other Receipts
Interest
**Other**
Other Income – Furlough / Grant
Other Income – Insurance Claim
**TOTAL INCOMING RESOURCES**
**Expenditure on:**
**Cost of Generating Funds**
**Charitable Activities**
Charitable Grants
4
Charitable Activities
5
**TOTAL RESOURCES EXPENDED**
**Net resources before transfers**
Transfers between Funds
**Net Resources after Transfers**
**Other recognised gains/losses**
Actuarial gains/(losses) on defined
benefit pension schemes
Profit on Disposal of Fixed Assets
**Net Movement in Funds for the year**
**Funds B/Fwd 1st January 2022**
**TOTAL FUNDS C/FWD 31ST DEC. 2022**||**Unrestricted**
**Funds**
**£**|**Unrestricted**
**Funds**
**£**|**Restricted**
**Funds**
**£**|**Restricted**
**Funds**
**£**|**Capital**
**£**|**TOTAL**
**2022**
**£**|**Total**
**2021**
**£**|
|---|---|---|---|---|---|---|---|---|
||||||||||
||||58,133
7,203
3,280
243
6,500
38,235
3,255
1,295
2,357
2,309||4,182
100
9,380||
58,133
11,385
3,280
343
6,500
38,235
3,255
1,295
2,357
9,380
2,309|59,053
17,470
26,051
213
6,500
26,005
1,892
1,284
1,916
1,683|
||||**122,810**||**13,662**||**136,472**|142,067|
||||0
9,445
92,275||4,282
14,946||
0
13,727
107,221|13.797
119,272|
||||**101,720**
**21,090**||**19,228**
**(5,566)**||**120,948**
**15,524**|133,069
8,998|
||||21,090||(5,566)||**15,524**|8,998|
||||17,589||||
17,589
|3,566|
||||38.679
**162,153**||(5,566)
**21,405**|**815000**|33,113
**998,558**|12,564
985,994|
||||**200,832**||**15,839**|**815,000**|**1,031,671**|998,558|
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**WEST WORTHING BAPTIST CHURCH**
## **BALANCE SHEET AS AT THE 31ST DECEMBER 2022**
|**Note**
**FIXED ASSETS**
**Tangible fixed Assets**
**13**
**CURRENT ASSETS**
**Stock**
**Debtors**
**12**
**Cash in hand and at bank**
**10**
**CREDITORS: Amounts falling due within**
**one year**
**11**
**Net Assets excluding pension**
**liability**
**Defined benefit pension**
**scheme**
**Asset or liability**
**TOTAL NET ASSETS**
**CHARITY FUNDS**
**14**
**Unrestricted Funds**
**Designated Funds**
**Restricted Funds**
**Capital Fund**
**TOTAL CHARITY FUNDS**|**2022**
**2021**
**£**
**£**
**£**
**£**
**822,052**
827,594
**822,052**
827,594
**10,414**
10,134
**206,359**
193,433
**216,773**
203,567
**(7,154)**
**209,619**
(15,014)
188,553
**1,031,671**
1,016,147
**0**
(17,589))
**1,031,671**
£998,558
**185,463**
151,445
**15.369**
10,708
**15,839**
**216,671**
21,405
183,558
**815,000**
815,000
**1,031,671**
£998,558|**2022**
**2021**
**£**
**£**
**£**
**£**
**822,052**
827,594
**822,052**
827,594
**10,414**
10,134
**206,359**
193,433
**216,773**
203,567
**(7,154)**
**209,619**
(15,014)
188,553
**1,031,671**
1,016,147
**0**
(17,589))
**1,031,671**
£998,558
**185,463**
151,445
**15.369**
10,708
**15,839**
**216,671**
21,405
183,558
**815,000**
815,000
**1,031,671**
£998,558|
|---|---|---|
|||£998,558|
The notes on pages 11-24 form an integral part of these accounts
The accounts were approved by the Trustees on and signed on their behalf
Secretary signed Brian King
Treasurer signed
Jean Valentine
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## **1. Accounting Policies**
## **a. Basis of Preparation**
The accounts are prepared in accordance with the, Charities Statement of Recommended Practice (Charities SORP 2021), FRS102 and with the Charities Act 2011
## **b. Fund Accounting**
General Funds represent the Funds of the Church that are not subject to any restrictions regarding their use and are available for application on the general purposes of the Church. These include Funds designated for a particular purpose by the Church.
Restricted funds are used in accordance with specific restrictions imposed by the donors or which have been raised by the charity for a particular purpose.
## **c. Incoming Resources**
Offerings and Gift Aid donations have been included with immediate effect.
Income Tax recoverable on Gift Aid Donations has been recognized when claimable.
Legacies have been recognized when notified.
Rental income from the letting of Church premises has been included when earned.
Investment income is included in the accounts in the year in which it is receivable
All other income has been accounted for Gross at the time of receipt.
## **d. Resources expended**
Expenditure is accounted for on an accruals basis and allocated to the appropriate heading in the accounts. Where expenditure is incurred and relates to more than one cost category it is apportioned in a way most appropriate to the purpose for which the expenditure was incurred.
The costs of generating funds relate to any costs associated with raising money for the charity. The Church does not make formal appeals for funds and therefore expenditure on these items is not material.
Charitable grants relate to sums agreed by the members to be donated from general funds in support of other charities, together with sums specifically donated by members and friends in direct support of the individual charities concerned. The charities, which are supported by the Church, are those organisations whose charitable objects are complementary to its work.
Volunteers carry out, most of the management without charge. This intangible cost is not included in the Statement of Financial Activities since there is no measurable cost to the volunteers for their service.
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## **e. Tangible Fixed Assets and depreciation**
## i. Land and Buildings
The Church premises are included at an estimated market value, rather than the exorbitant insured value required for a possible rebuild. This is because a continual professional revaluation would incur significant costs, which would be onerous, compared with the additional benefit, gained by the user of the accounts. The Manse premises 36 Upton Road was purchased in July 2018. The building is included at cost
Depreciation has not been charged on the Church or Manse premises, because in the opinion of the Trustees, the residual value of the asset is not less than the original cost price.
## ii. Fixtures, Fittings and Equipment
All Fixtures, Fittings and Equipment used within the Church premises have been depreciated on a straight line basis over four years, with the exception of the Organ.. Any individual item with a purchase price of £3,000 or less has been written off during the year.
## iii. Organ
A new Organ was purchased at the end of 2003 and was being depreciated over ten years. This was fully depreciated at the end of 2013.
## iv Projector/ Sound System/Camera for Streaming
The Church purchased a new laser projector for the sanctuary in October 2019 and this was depreciated over four years. Fundraising was completed on the raising of the total cost early in 2020. The amount raised was held in a restricted account to cover the cost of depreciation as it became due. The final cost for depreciation is included in this year’s accounts
A decision was made in November 2020 to purchase a new sound system. This was installed in February 2021. The fund for music was used towards the cost and fundraising meant that the total cost was covered by May 2021. The amount raised is held in a restricted account to cover the cost of depreciation as it becomes due.
Anonymous donations were received to cover the cost of the installation of a Camera and system to facilitate the live streaming of services. This was installed in early November 2021. The amount raised is held in a restricted account to cover the cost of depreciation as it becomes due.
## **f. Pensions**
The Church is an employer participating in a pension scheme known as the Baptist Pension Scheme (“the Scheme”), which is a separate legal entity administered by the Pension Trustee (Baptist Pension Trust Limited). The assets of the Scheme are held separately from those of the Employer and the other participating employers.
The Scheme,. Previously know as the Baptist Ministers’ Pension Fund, started in 1925, but was closed to future accrual of defined benefits on 31 December 2011. Prior to this date the main benefit provided through the Defined Benefit (DB) Plan was a pension of one eightieth
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## **WEST WORTHING BAPTIST CHURCH**
of final minimum pensionable income for each year of pensionable service together with additional pension in respect of premiums paid on Pensionable Income in excess of Minimum Pensionable Income.
From January 2012, pension provision is being made through the Defined Contribution (DC) Plan within the Scheme. In general, members pay 8% of their Pensionable Income and employers pay 6% of members’ Pensionable Income into individual pension accounts, which are operated and managed on behalf of the Pension Trustee by Broadstone Corporate Benefits Ltd. In addition, the employer pays a further 4% of Pensionable Income to cover Death in Service Benefits, administration costs, and an associated Insurance policy which provides Income Protection for Scheme members if they are unable to work due to long-term incapacity. This income protection policy has been insured by the Baptist Union of Great Britain with Aviva Limited. Members of the Basic Section pay reduced contributions of 5% of Pensionable Income, and their employers also pay a total of 5%.
**Actuarial valuation as at 31 December 2019**
A formal valuation of the Defined Benefit (DB) Plan was performed at 31 December 2019 by a professionally qualified Actuary using the Projected Unit Method. At the valuation date the market value of the DB Plan assets was £298 million, whilst the level of the assets needed to pay benefits was £316 m, giving a deficit of £18m (equivalent to a past service funding level of 94%) The Church and the other participating employers in the DB Plan are collectively responsible for funding this deficit.
The key assumptions underlying the valuation were as follows:
|**Type of Assumption**|**% p.a.**|
|---|---|
|RPI price inflation assumption|3.20|
|CPI price inflation assumption|2.70|
|Minimum Pensionable Income Increase Adjustment (above CPI)|0.50|
|Pre-retirement assumed investment returns (gilt yield plus 1.75% pa)|2.95|
|Post retirement assumed investment returns (including benefits|1.70|
|matched by the insurance policy((gilt yield plus 0.5% pa)||
|Minimum Pensionable Income increases (CPI plus 0.5%)|3.20|
|Deferred pension increases (based on RPI)||
|Pre April 2009|3.20|
|Post April 2009|2.50|
|Pension increases||
|Based on CPI with an annual floor of 0% and annual cap of 5%|2.70|
Mortality is assumed in accordance with 80% of the S3NA standard mortality table. Future improvements projected from 2013 in line with the “CMI 2019” projection with a long-term rate improvement of 1.75% p.a. for males and 1.5% p/a/ for females with the core smoothing parameter and with additional initial mortality improvement factor A=0.5%.
The next actuarial valuation of the DB Plan within the Scheme will commence in 2023 to reflect the position as at 31[st] December 2022
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Registered Charity No 1128701 JMV/LD 2-Feb-23
**WEST WORTHING BAPTIST CHURCH**
## **Recovery Plan**
In addition to the contributions to the DC Plan set out above, where a valuation of the DB Plan reveals a deficit the Trustee and the Council agree to a rate of deficiency contributions from churches and other employers involved in the DB Plan.
Following the 2019 valuation a Recovery Plan was signed in September 2020 under which deficiency contributions are payable until June 2026. These contributions were broadly based on each employer’s membership at 31 December 2014 and increase annually in line with increases to Minimum Pensionable Income as defined by the Rules,
On the 30[th] June 2022 the Baptist Pension Scheme signed an agreement with the insurance company Just Group (“Just”) to secure DB Plan members’ pension benefits. Just are now providing financial backing for all pensions provided through the Scheme’s DB Plan and following this transaction, the Scheme no longer has a shortfall. An updated Recovery plan was then signed in August 2022 under which recovery contributions from each participating employer in the DB Plan reduced to £1 per month from August 2022.
## **Movement in Balance Sheet Liability**
Section 28.11A of FRS 102 requires agreed deficit recovery payments to be recognised as a liability. The movement in the provision is set out in the table below.
|Balance sheet liability at the year start
Minus deficiency contributions paid
Interest costs (recognised in SOFA)
Actuarial (gains)/losses on re-measurement
of liability (recognised in (SOFA)
Balance sheet liability at year end|**2022**
**£**
**2021**
**£**
**17,589**
**21,155**
**(2,193)**
**(3,695)**
**214**
**212**
**(15,610)**
**(83)**|
|---|---|
||**0**
**17,589**|
**Table of Assumptions for calculating the liability**
|**Accounting Date**|**31 Dec 2022**|**31 Dec 2021**|**31 Dec 2020**|
|---|---|---|---|
|Discount rate|**5.3%**|**1.3%**|**1.1%**|
|Future increases to Minimum|**0.0%**|**4.0%**|**3.1%**|
|Pensionable income||||
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Registered Charity No 1128701 JMV/LD 2-Feb-23
**WEST WORTHING BAPTIST CHURCH**
## **2. Legacies and Donations in Memory**
During the year the following legacies and donations were received
|**Legacies :-**
Howard Kent
**Donations in Memory:-**
Scott Avinou|**2022**
**£**
**3,280**|**2022**
**2021**
**£**
**3,280**
26,051
**50**
556|
|---|---|---|
||**50**||
||||
|||**3,330**
26,607|
## **3. Rents**
The current lease with Relate, who have offices within our premises, is due to expire in July 2024
|Relate|**£**
**£**
**2022**
**2021**
**6,500**
6,500|
|---|---|
||**6,500**
6,500|
## **Charitable Activities**
## **4. Charitable Grants**
|Baptist World Mission
Home Mission
Christian Aid
Safe in Sussex
Worthing Food Foundation
Operation Agri
Other Charitable Giving
Legacy gifts|**Unrestricted Funds**
**2022**
2021
**£**
£
**2,500**
4,500
**4,600**
4,500
**1,500**
1,500
**845**
1,000
**9,445**
11,500|**Restricted Funds**
**2022**
2021
**£**
£
**1,996**
752
**1,055**
785
330
**671**
**560**
410
20
**4,282**
2,297|**Restricted Funds**
**2022**
2021
**£**
£
**1,996**
752
**1,055**
785
330
**671**
**560**
410
20
**4,282**
2,297|
|---|---|---|---|
||||2,297|
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Registered Charity No 1128701 JMV/LD 2-Feb-23
**WEST WORTHING BAPTIST CHURCH**
## **5. Charitable Activities**
|**Unrestricted Funds**
**2022**
2021
**£**
£
**Ministry and Outreach**
Minister's stipend &
expenses
**25,431**
39,705
NI and Pension costs
**3.123**
6,156
Pension Deficit Cont.
**2.192**
3,695
Pulpit/Organist
**346**
Manse costs
**4,970**
14,109
Delegates fees and Subs
**427**
521
Flowers
Social Activities
Lunches
**1,242**
Hospitality
**186**
120
Training:
coffee bar/safeguarding
**206**
168
**Children and Families Work**
Messy Church/Sparrows
/social events
**454**
107
**Premises**
Staff Costs
**20,142**
16,603
Utility Charges
**6,551**
5,667
Insurance
**4.968**
4,358
Fabric and Equipment
**13.325**
12,720
Equipment depreciation
Cleaning Materials and
Equip.
**3,034**
1,780
Coffee bar furniture
5,862
Disabled Toilet
New Oven
**2,994**
**Administration**
Computer
Equip./software
**609**
111
Postage and Telephone
**655**
792
Print/stationery and
Leaflets
**269**
108
Photocopying
**353**
286
Professional Fees
**798**
812
**92.275**
113,680|**Restricted Funds**
**2022**
2021
**£**
£
**24**
49
**5,542**
5,543
**9,380**
**14,946**
5,592|**Restricted Funds**
**2022**
2021
**£**
£
**24**
49
**5,542**
5,543
**9,380**
**14,946**
5,592|
|---|---|---|
|||5,592|
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Registered Charity No 1128701 JMV/LD 2-Feb-23
## **WEST WORTHING BAPTIST CHURCH**
## **6. Staff Costs**
The average number of full time equivalent employees for the year was 1.8, made up of one full time and two part-time staff.
|full time and two part-time staff.||
|---|---|
|.
Wages & Salaries
National Insurance
Pension Costs
Ministers' Expenses
Redundancy
Other costs (manse costs)|**2022**
2021
**£**
£
**44,130**
55,218
**0**
0
**6,078**
10,436
**681**
505
**4,970**
14,110|
||**55,859**
80,269|
National Insurance costs were covered completely under the £5,000 rebate allowed under the current government initiative
No employees were paid emoluments in excess of £60,000 during the year.
## **7. Trustees’ Remuneration and Expenses**
The Minister acts as one of the church’s trustees in accordance with e.g. the Trust deed and received remuneration and other benefits in respect of her services as Minister, including the provision of manse accommodation.
It has been agreed by the Church in that the Minister’s husband, a qualified plumber with his own business, ,Go-To Plumbing and Heating, be engaged in any plumbing and heating requirement at the Church excluding the industrial boilers. It was felt that this was in the Church’s best interests and recorded as such in the minutes of the meeting.
No other remuneration or expenses have been paid to any other Trustee or to any person connected to them.
## **8. Independent Examiners Remuneration**
An accrual has been shown in the accounts for a token gift to be given to the Independent Examiner in lieu of any remuneration
## **9. Indemnity Insurance**
The Church Insurance Policy includes protection against any loss arising from the neglect or defaults of any Trustee or Employee and also to indemnify Trustees and Officers against the consequences of any neglect or default on their part. This is included at no increase of the normal premium and has been authorized by the Charity Commission.
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Registered Charity No 1128701 JMV/LD 2-Feb-23
## **WEST WORTHING BAPTIST CHURCH**
## **10. Cash and Bank and Building Society and In Hand**
|CAF Bank Cheque Account
CAF Bank Gold Account
Baptist Union Fixed interest account
Baptist Union Fixed interest account
Baptist Union 7 day notice account
Cambridge and Counties Bank
Family Building Society
Flower cash in hand|**2022**
2021
**£**
£
**100**
124
**38.939**
34,752
**21,678**
21,549
**20,002**
**27,596**
**85,664**
84,820
**12,217**
52,001
**163**
187|
|---|---|
||**206,359**
193,433|
An automatic transfer is set up with CAF Bank Ltd between the gold account and the cheque account so that money is only moved when a payment is cleared. This allows interest to accrue on the money held by CAF Bank.
The Church endeavours to hold its reserves in accounts to generate the best possible interest, whilst aiming that no account holds over the maximum amount applicable for compensation by the FSCS. Interest rates increased in the latter part of the year and money is being moved as appropriate. We now hold accounts as follows, interest rates are at the end of December 2022 -
The Cambridge and Counties Bank 95 days notice account currently of 2.6%
The Family Building Society. Interest is the lowest rate and is therefore being moved to reflect this, whilst keeping the account for future use. Current rate is 1.5%. It requires 45 days notice,
The Church also continues to invest in the Baptist Union. Two fixed accounts were opened in the early part of the year. One fixed interest deposit pays 1.25% to the end of April 2023 and a second one pays 2% to the end of June 2023. With bank of England rates rising, a 7 day notice account was opened at the end of April 2022 with the Baptist Union which currently pays the same rate as the Bank of England, since December 2022 3.5%
## **11. Creditors: amounts falling due within one year**
|Accruals – Utilities
Inland Revenue
Awards for All Grant
Other Creditors|**2022**
2021
**£**
£
**1,530**
997
**1,306**
1,326
9,380
**4,318**
3,311|
|---|---|
||**7,154**
15,014|
A Grant was received from the National Lottery, Awards for All to enable the refurbishment of the toilet for the disabled. This was held in the balance sheet at the end of 2021 and work was undertaken in January 2022.
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Registered Charity No 1128701 JMV/LD 2-Feb-23
## **WEST WORTHING BAPTIST CHURCH**
## **12. Debtors**
|Prepayments – Utilities
Accrued Income - Gift Aid Tax
Accrued Income - Interest
Other Debtors -|**2022**
2021
**£**
£
**4,737**
4,255
**2,412**
2,720
**1,965**
1,009
**1.300**
2,150|
|---|---|
||**10,414**
10,134|
## **13. Fixed Assets**
|**Gross Book Value**
- at 1st January 2022
Additions
Sales and scrap
- at 31st December
2022
-
**Depreciation**
- at 1st January 2022
Sales and scrap
- Charge for the Year
- at 31st December
2022
**Net Book Value**|**Land and**
**Buildings**
**FF and**
**Equipment**
**Investments**
**Total**
**£**
**£**
**£**
**£**
815,000
98,589
0
913,589|
|---|---|
||815,000
98,589
913,589
0
(85,995)
0
(85,995)
(5,542)
(5,542)
0
(91,537)
(91,537)|
||**815,000**
**7,052**
**822,052**|
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Registered Charity No 1128701 JMV/LD 2-Feb-23
## **WEST WORTHING BAPTIST CHURCH**
## **14. Statement of Funds**
|**Unrestricted Funds**
General Church Fund
Legacy Reserve
Margaret Knight Legacy
Reserve
Defined benefit liability
**Designated Funds**
UOP refurbishment
Oven Project
Social and ministry
Margaret Knight
Pastoral Fund
**Total Unrestricted**
**Funds**
**Restricted Funds**
Refurbishment a/c
Music/ sound Project
Awards for All
Projector Fund
Camera Project
Flower Gifts
Christian Aid
Baptist World Mission
Home Mission
Other Charitable
Giving
**Total Restricted**
**Funds**
**Capital Fund**
**Total Funds**|**At 1 Jan**
**2022**
**Income**
**Expenditure**
**Transfers**
**Revaluation/**
**Asset gain**
**At 31 Dec**
**2022**
**£**
**£**
**£**
**£**
**£**
37,828
110,629
(97,030)
51,427
101,007
3,330
(500)
103,837
30,199
30,199
(17,589)
17.589
0
2,597
3,825
6,422
2,494
(2,994)
500
0
3,595
2,532
(1,696)
4,431
4,516
4,516|
|---|---|
||**162,153**
**122,810**
**(101,720)**
**0**
**17,589**
**200,832**
**£**
**£**
**£**
**£**
**£**
8,500
8,500
5,084
(1,694)
3,390
0
9,380
(9,380)
0
2,017
(2,017)
0
5,494
(1,831)
3,663
267
(24)
243
0
1,055
(1,055)
0
0
1,996
(1,996)
0
43
1,231
(1,231)
43|
||**21,405**
**13,662**
**(19,228)**
**15,839**|
||815,000
815,000
**998,558**
**136,472**
**(120,948)**
**17589**
**1,031,671**|
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Registered Charity No 1128701 JMV/LD 2-Feb-23
**WEST WORTHING BAPTIST CHURCH**
The General Reserve represents the free funds of the charity, which are not designated for particular purposes.
Income from Legacies, and donations given in memory, for general Church use are paid directly into this fund and then used for specific expenditure as agreed by the Church Meeting. A legacy of £500 given in memory of a previous cook, was requested that it be used for an item in the kitchen. This was transferred to our Oven project when the cooker was replaced during the year.
The Margaret Knight Legacy money was put aside in this fund in order to provide interest for use by the main Church fund. However this money can be spent as and when decided appropriate by the Church meeting.
The Use of Premises Refurbishment Fund receives 10% of the income from our use of premises, to help with maintenance costs. This fund is now held for major items of fabric when needed.
The social and ministry fund represents monies put aside from the Olive James legacy, which was designated for social and ministry events to which any related income is also incorporated. It has been agreed that this account will receive all income and cover expenditure from all youth work as well as church lunches and other church social events.
The Margaret Knight Pastoral Fund contains a sum of money put aside to be used in accordance with the lady’s letter of wishes. No payments were made during this year. This money could be used in the future for other purposes if agreed by the Church meeting.
The Refurbishment account is money donated specifically or transferred for special items of fabric expenditure agreed by the church meeting. This is to be kept for major emergency repairs where appropriate.
We received an Award for All grant from the National Lotters to enable the complete refurbishment of the disabled toilet. This was completed in January 2022.
The Music Project purchased a new sound system in February 2021. As a capital item, it will be depreciated over four years. The cost is now held in this account until fully depreciated.
A Projector Fund was set up in 2019 with the requirement to purchase a new laser projector for the sanctuary in order to enhance worship. It was agreed that this would be paid for by gifts and fund raising. As a capital item, it will be depreciated over four years so the cost for this will be shown in this account until fully depreciated, This has been fully depreciated in 2022.
The Camera project enabled the purchase and installation of a camera and system to enable the live streaming of Church services. The total was donated anonymously. As a capital item, it will be depreciated over four years so the cost for this will be shown in this account until fully depreciated
The flower fund is monies donated and allocated for the Church’s flower ministry. This was suspended in March 2020 at the time of the first lockdown. The cost relates to providing flowers for special events. The costs were incurred at Harvest.
The Christian Aid Fund is for monies donated and allocated for onward transmission to this charity.
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Registered Charity No 1128701 JMV/LD 2-Feb-23
**WEST WORTHING BAPTIST CHURCH**
The Baptist World Mission Fund is for monies donated for onward transmission to this charity.
The Home Mission Fund is for monies donated for onward transmission to this charity.
The Fund for other charitable giving is for monies donated for onward transmission to other charities as specified in note 4.
## **15. Analysis of net assets between funds**
|Tangible Fixed
Assets
Current Assets
Current
Liabilities|**Unrestricted**
**Funds**
**Designated**
**Funds**
**Restricted**
**Funds**
**Total**
**2022**
**Total**
**2021**
**822.053**
**822,053**
827,594
**184.893**
**15,369**
**16,510**
**216,772**203,567
**(6,483)**
**(671)**
**(7,154)**
(32.603)|
|---|---|
||**1,000,463**
**15,369**
**15,839**
**1,031,671**988,588|
## **16. Related Charities**
The custodian Trustee of the Church is the Baptist Union Corporation Limited which is charity number 249635 and which is controlled by the Baptist Union Council. The Church is also a member of the Baptist Union of Great Britain, and the South Eastern Baptist Association.
The Church made a donation to the Baptist Union Home Mission Scheme as set out in note 4.
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Registered Charity No 1128701 JMV/LD 2-Feb-23
**WEST WORTHING BAPTIST CHURCH**
## **Independent Examiner’s Report to the Trustees (Diaconate) of West Worthing Baptist Church**
I report on the accounts of the Church for the year ended 31 December 2022, which are set out on pages 11 to 24
## **Respective responsibilities of Trustees ( Diaconate) and Examiner**
The charity’s Trustees are responsible for the preparation of the accounts. The charity’s Trustees consider that an audit is not required for this year (under section 144) of the Charities Act 2011 (the Charities Act) and that an independent examination is needed.
It is my responsibility to:
- Examine the accounts under section 145of the Charities Act;
- To follow the procedures laid down in the General Directions given by the Charity Commissioners under section 145(5)(b) of the Charity Act; and
- To state whether particular matters have come to my attention.
## **Basis of Independent Examiner’s Statement**
My examination was carried out in accordance with the General Directions given by the Charity Commissioners. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and the seeking of explanations from the Trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and, consequently no opinion is given as to whether the accounts present a ‘true and fair view’ and the report is limited to those matters set out in the statement below.
## **Independent Examiner’s Statement**
In connection with my examination, no material matters have come to my attention which gives me cause to believe that in, any material respect:
- accounting records were not kept in accordance with section 130 of the Charities Act or
- the accounts do not accord with the accounting records
- the accounts do not comply with the applicable requirements covering the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a "true and fair" view which is not a matter considered as part of an independent examination.
I have come across no other matters in connection with the examination to which attention should be drawn in order to enable proper understanding of the accounts to be reached.
## **Independent Examiner:**
**Date:**
Terry Burstow 115 St Andrews Road, Worthing, BN13 1HR
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Registered Charity No 1128701 JMV/LD 2-Feb-23