OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2020-12-31-accounts

Cornerstone Baptist Church Leeds

(formerly South Parade Baptist Church)

Report of the Managing Trustees and Financial Statements for the year ended 31 December 2020

Charity Registered in England and Wales 1128935

CORNERSTONE BAPTIST CHURCH

Contents

Charity Information 1
Report of the Managing Trustees 2
Report of the Independent Examiner 8
Statement of Financial Activities 9
Balance Sheet 10
Notes to the Financial Statements 11

CORNERSTONE BAPTIST CHURCH CHARITY INFORMATION

Reference and administrative details of the charity, its trustees and advisors

Registered Office 1, South Parade,
Headingley
Leeds
LS6 3LF
Email info@cbcl.org.uk
Website www.cbclorg.uk
Registered charity number 1128935
Banks Yorkshire Bank plc, 94-96 Briggate, Leeds LS1 6NP
CCLA, Senator House, 85 Queen Victoria Street, EC4V 4ET
Cambridge and Counties Bank, Charnwood Court,
5B New Walk, Leicester LE1 6TE
Independent Examiner Laura Masheder FCA DChA
Garbutt & Elliott LLP
Chartered Accountants & Statutory Auditors
33 Park Place, Leeds LS1 2RY
Managing Trustees
Revd Dr P Morden Senior Minister
G D King Minister (retired 30 April 2020)
M Wright Minister (retired 17 April 2021)
S J Burras Elder
B A Crosse Elder
S Halligan Elder (appointed 21 January 2021)
J Jones Elder
G D McLeen Elder and Church Secretary
J F Pelham Elder
T Rowe Elder (retired 21 March 2021)
J S Walsh Elder (retired 21 January 2021)
K M Widdowson Treasurer (retired 30 June 2020)
O Carey Jones Treasurer (appointed 9 August 2020; retired 11 October 2020)

Page 1 of 25

CORNERSTONE BAPTIST CHURCH TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

The Managing Trustees present to you their annual report, along with the financial statements of Cornerstone Baptist Church (CBC, the Church) for the year ended 31 December 2020. The name of the Church was changed on 23 January 2020. It was previously called South Parade Baptist Church. As mentioned in the report for 2019 the name change was made to signal a new phase in the development of the Church and to strengthen our one church identity.

We are delighted to report to you the various activities that have been going on throughout the Church over the last year and hope that you enjoy reading about all that has been achieved and are encouraged as we look forward to being able to share fellowship again face to face without physical constraints.

Despite the restrictions placed on how we engage as a church body this is a great opportunity to look back and thank God for all that he has enabled us as a church to do during 2020 and a chance to look forward to what we hope to do during 2021.

The accounts have been prepared in accordance with the accounting policies set out in Note 1 and comply with the Charities Act 2011, Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Baptist Union of Great Britain Guidelines F03 (10/2020).

Structure, Governance and Management

Structure

The Church is a registered charity, charity number 1128935. The charity was registered on 1 April 2009 with the Charity Commission. The Church is a member of the Baptist Union of Great Britain (BUGB).

The Church operates under an inter-dependent model. This means we have gatherings meeting on three sites – Cragg Hill (Horsforth), Headingley and Connect (Bramley). In addition, members from all these gatherings join at the Sunday evening service in Headingley. There are three leadership teams, one for each site, each including an elder and leader appointed by the whole church meeting.

Managing Trustees

The elders act as the Managing Trustees of the Church. The church members’ meeting appoints elders to be responsible for the governance of the Church and where there are ministers of the Church, they will also be members of the eldership because of their role and responsibilities.

Elders shall (with the exception of a newly appointed minister) be chosen from among church members (provided they have been a church member for a minimum period of six months) with the maximum number being agreed from time to time by the Church members’ meeting. Elders are initially appointed for three years, following which they may be reappointed for three years before they must take at least one-year sabbatical.

The appointment of elders shall be undertaken by processes that are public, clear, and open so that all church members are enabled to consider prayerfully who should be appointed as elders. The process will ensure that notice is given of any forthcoming election so that church members may freely nominate prospective elders. Selection of elders shall be by secret ballot. To be elected a nominee must receive positive votes from two-thirds of those voting.

Page 2 of 25

CORNERSTONE BAPTIST CHURCH TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

The church secretary is appointed from among the eldership by the Church members’ meeting. The church treasurer is appointed from the diaconate by the Church members’ meeting and is an ex-officio member of the eldership.

Induction and training

A ‘welcome pack’ has been collated to ensure that new Managing Trustees understand and meet the eligibility criteria for Managing Trustees, as defined by the Charity Commission, and understand their role and responsibilities to the Church as a Managing Trustee. The pack also includes the most recent Report and Accounts, and minutes from the three latest deacons’ and elders’ meetings.

Risk Management

The deacons have continued to keep the risk management process for the Church under review on behalf of the Managing Trustees. A risk register has been compiled to capture and prioritise all the risks to which the Church is subject and this document is reviewed annually. The risks identified are systematically reviewed by the deacons to assess whether any further controls are required to mitigate against the identified risks. During 2020 a specific focus was given to ensuring all physical activities in which we engaged were COVID-19 risk secure and any new risks identified were added to the risk register. To ensure we had a robust process for review of risk assessments a risk assessment group was established during the year comprising an elder and two deacons.

Data Protection

The Church has a Data Protection Policy document which is used to ensure compliance with the UK Data Protection Act 2018 (DPA) which incorporates the requirements of the EU General Data Protection Regulation. Data processing and data protection remain under review to ensure that this remains the case.

Volunteers

In undertaking activities to further the aims and objectives of the Church, significant use is made of volunteers. All activities detailed in the rest of this report are organised and run by teams of volunteers, along with the involvement of the staff employed by the Church.

Public benefit

When reviewing the aims and objectives of the charity, and in planning future activities, the elders have complied with the duty in section 4 of the Charities Act 2011 to have due regard to public benefit guidance published by the Charity Commission, and in particular the guidance for charities for the advancement of religion. The Church proclaims the Gospel of Jesus Christ. This benefit is available to all who come into contact with the Church in any way.

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charity's website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements.

Page 3 of 25

CORNERSTONE BAPTIST CHURCH TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

Objectives and Activities

Purpose statement ‘Passion for God - Love for People - Heart for Mission’

Core values ‘Following Jesus, Word and Spirit, Engaging in Mission, Embracing Adventure, Growing Community, Faithful in Prayer

We adopted Philippians 3:10 as our verse for the year, the first part of which says, “I want to know Christ”.

We explored the deeper meaning of this verse in some of our teaching and spiritual disciplines, examples being:

Achievements and Performance

This year has been very challenging as we faced the first COVID-19 lockdown in March and further lockdowns in November and December continuing through into 2021. This inevitably placed severe restrictions on us being able to run physical services and other regular activities during the week.

Matt Wright joined us during 2019 with a particular emphasis on missional discipleship. Unfortunately, because of personal bereavement, Matt was not able to fulfil work commitments until part way through 2020. However, he has been instrumental in establishing missional discipleship bands using the Inspire Movement material. This has helped individuals who have been involved to grow in faith and their personal commitment to Jesus. Matt has now decided to leave the Church and join the Inspire Movement as a lead missioner and co-dean of their school of discipleship. After a time of prayerful reflection, we will seek a replacement to bring the skills and gifts which we believe we need to complement the ministry team.

To continue to engage with our members and regular church attenders during lockdown, we very quickly developed online weekly Sunday services and the ability for worshippers to talk with each other after the service. As part of online Sunday worship, we also introduced “Zoom into Church” a 15-minute fun time with a leaders’ challenge and bible story for the younger children.

We have sent out an emailed weekly pastoral update to keep people in touch. We also committed to keeping in contact with those of our members who don’t have access to the internet and have sent out regular paper newsletters to these people. We published daily podcasts as we went into lockdown as another way to both keep in touch and encourage bible study.

The planned opening of a café took place in January to serve and minister to the public at the Headingley site. The initial focus was to serve the parents and carers for the Under 5s groups, our church attenders and (increasingly) the wider community. Initial visitor numbers to the café were very encouraging but we had to temporarily close the doors two months later when the first lockdown was put in place. Since that time, the café has only been open for the periods between subsequent lockdowns. Despite these setbacks, we firmly believe that once we are up and running again, the café will provide a great space for outreach within the community of Headingley.

The everyday work of the Church has continued across all parts of our church and does not need reporting here. The life and work of our gatherings has continued, with each seeing new attendees and attempting new forms of mission.

Page 4 of 25

CORNERSTONE BAPTIST CHURCH TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

Several mission projects draw strength from across the whole church and these continued outside of periods of lockdown:

Of course, many of our activities including those above have had to stop during the pandemic but very encouragingly we have seen our online services being viewed by new people. We were able to run some physical services at different points during the year. These included reflective services, worship services (with no congregational singing) and outdoor services (including a carol service) at Cragg Hill, and café services and a live-streamed carol service at Headingley. We are very grateful to the small group who have diligently scrutinised risk assessments for different events, and for all volunteers and staff who have worked hard to put on in-person services in these challenging times.

We have continued with children and youth small group meetings online during the week and have also run a “beta group” online for the older youth which blends a fun activity with a more in-depth bible study.

Page 5 of 25

CORNERSTONE BAPTIST CHURCH TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

Unfortunately, we have not been able to continue with our Rooted community during the pandemic, although early in 2021 we have started to think about how we might reach out to these people again in a COVID-19 secure way.

During lockdown we were able to run several Under 5s sessions with individual families sitting socially distanced in their space within the sanctuary at Headingley. We also held a Christingle service, carol service and Christmas morning service at Headingley. In the lead up to Christmas, we delivered two online nativity services with children from Connect@CopperBeech and the wider church.

Connect@CopperBeech, whilst unable to meet at the hub during lockdown, have been busy delivering food to those in need and toys to children at Christmas. They have successfully run online social events to try and stay connected with each other. These included a treasure hunt, a quiz and a bake-off competition.

Finally, we had one believer’s baptism this year.

Fundraising

The Church strives to achieve the highest fundraising standards. The Church stays up to date with developments in charity regulation, data protection and the Fundraising Preference Service (FPS) to make sure it is legally compliant and adhering to all guidelines.

Financial review

During the year, total income amounted to £387,263 (2019: £395,608) of which donations and legacies was the main component and totalled £363,368 (2019: £363,813). Expenditure for the year totalled £360,134 (2019: £392,831), making net income for the year of £27,129 (2019: net income £2,777).

The main components of expenditure are staff costs, donations to mission agencies and individuals, and repairs. The church has an aspiration of using 10% to 11% of its income to support individuals and institutions engaging in activities which mirror the church’s vision and objectives. Currently the level of donations is higher than this, but we will struggle to maintain this, particularly as individual’s patterns of giving have changed with people much more likely to give to specific charitable cause outside of their church giving. In 2020, 12.6% of income (2019: 14.9%) was used in this way.

The pandemic crisis has forced us to consider carefully our financial health, which was already proving a challenge towards the back end of 2019. Very encouragingly, giving by our members and adherents has been maintained at a similar level to 2019. Although the income from the rental of rooms was greatly reduced, we have at least been able to partly mitigate that by taking advantage of the Government’s furlough and Eat Out to Help Out schemes (2020: £19,321, 2019: £Nil) and we have had some savings with our buildings’ costs.

At the balance sheet date, the Church had total net assets of £1,536,702 (2019: £1,509,573). Uncommitted reserves freely available for charitable activities increased by £19,255 to £187,404 (2019: £168,149).

The Managing Trustees consider that the minimum reserves necessary with no reliance on bank financing are 6 weeks of staff costs, that is £24,100 (2019: £23,964) at the year end. Reserves held at the balance sheet date would finance the church’s charitable activities for 26 weeks (2019: 22 weeks).

The Managing Trustees seek to maintain adequate free reserves to be able to meet liabilities as they fall due. Funds not immediately required are deposited with the CCLA Charities Official Investment Fund and/or the Cambridge & Counties Bank.

Page 6 of 25

CORNERSTONE BAPTIST CHURCH TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

Funds held as custodian trustee on behalf of others

Neither the Church nor its Managing Trustees hold funds as custodian trustee on behalf of others.

Plans for future periods

Despite the challenge we currently face with COVID-19 amongst other things, in the immediate future we plan to develop further in the following areas:

None of this works without the dedicated input and energy of the whole church family and we are indebted to the mutual support which operates in all parts of the Church as we seek to build community in Christ.

Peter J. Morden

Peter Morden Senior Pastor

Greg McLeen 6 May 2021

Secretary

Page 7 of 25

CORNERSTONE BAPTIST CHURCH INDEPENDENT EXAMINER’S REPORT

Independent examiner’s report to the trustees of Cornerstone Baptist Church

I report to the trustees on my examination of the accounts of Cornerstone Baptist Church (the charity) for the year ended 31 December 2020.

Responsibilities and basis of report

As the trustees of the charity you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).

I report in respect of my examination of the charity’s accounts carried out under section 145 of the Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner’s statement

Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

  1. accounting records were not kept in respect of the charity as required by section 130 of the Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

This report, including my statement, has been prepared for and only for the charity’s trustees as a body. My work has been undertaken so that I might state to the charity’s trustees those matters I am required to state to them in an independent examiner’s report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body for my independent examination work, for this report, or for the opinions I have formed.

Laura Masheder

10/05/2021

Laura Masheder FCA DChA

Garbutt & Elliott LLP Chartered Accountants & Statutory Auditors 33 Park Place Leeds LS1 2RY

Page 8 of 25

CORNERSTONE BAPTIST CHURCH STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020



Note
Income from:
Donations and legacies
2
Other trading activities
3
Investments - bank interest
Total
Expenditure on:
Charitable activities
4
Total

Net income
Transfers between funds
Reconciliation of funds
Total funds brought forward
At 1 January 2020
Total funds carried forward
At 31 December 2020
17		 2020
2019
Unrestricted Designated Restricted
TotalUnrestricted Designated
Restricted
Total

Funds
Funds
Funds
Funds
Funds
Funds
Funds
Funds
£
£
£
£
£
£
£
£
361,086
- 2,282363,368
361,761
- 2,052 363,813
23,697
- -23,697
29,397
- - 29,397
198
- -198
2,398
- - 2,398
384,981
- 2,282387,263
393,556
- 2,052 395,608
358,575
- 1,559360,134
390,871
- 1,960 392,831
358,575
- 1,559360,134
390,871
- 1,960 392,831
26,406
- 723
27,129
2,685
-
92 2,777
(7,151)
7,151 -
-
4,196 (4,196)
- -
168,149 1,340,419 1,0051,509,573
161,268
1,344,615
913 1,506,796
187,404 1,347,570 1,7281,536,702
168,149
1,340,419 1,005 1,509,573

There are no recognised gains and losses other than those in the statement of financial activities. All the above amounts relate to continuing activities.

The notes on pages 11 to 25 form part of these financial statements.

Page 9 of 25

CORNERSTONE BAPTIST CHURCH BALANCE SHEET AT 31 DECEMBER 2020


Note
Fixed assets:
Tangible assets
10
Investments
11
Total fixed assets

Current assets:
Debtors
12
Short term deposits
13
Cash at bank and in hand
Total current assets

Liabilities:
Creditors: amounts falling
due within one year
14
Net current assets

Total net assets

The funds of the charity:
Restricted funds
16/17
Unrestricted designated
funds
16/17
Other unrestricted funds
Total charity funds
16/17
1,728		 2020
£
1,347,570
3











1,005		 2019
£
1,340,419
3
1,347,573
15,910
75,422
114,804		 1,340,422
29,291
75,224
87,936
206,136
(17,007)		 192,451
(23,300)
189,129 169,151
1,536,702 1,509,573

1,728


1,534,974
1,005

1,508,568
1,347,570
187,404		 1,340,419
168,149
1,536,702 1,509,573

The financial statements were approved by the Managing Trustees on 6 May 2021 and signed on their behalf by:

Peter J. Morden

Peter Morden Senior Pastor

Greg McLeen Secretary

Page 10 of 25

CORNERSTONE BAPTIST CHURCH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1. Principal accounting policies

Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1st January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Baptist Union of Great Britain Guidelines F03 (10/2020).

Cornerstone Baptist Church meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

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 £1.

Going concern

The trustees have prepared financial projections taking into consideration the current economic climate and its potential impact on the sources of income and planned expenditure. They have a reasonable expectation that adequate financial resources are available to enable the Church to continue in operational existence for the foreseeable future and have adequate contingency plans in the event that income streams are reduced. The financial statements have therefore been prepared on the basis that the Church is a going concern. Whilst the global economy has been significantly impacted by the COVID-19 virus the charity still has reserves sufficient to meet its immediate requirements. Thus, the trustees have continued to adopt the going concern basis of accounting in preparing the financial statements.

Income

Income is recognised when the Church has entitlement to the funds, any performance conditions relating to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably.

Donations, gifts and lettings income are recognised when receivable.

Income from government and other grants is recognised when the charity has entitlement to the funds, and performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably.

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

Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the Church has been notified of the executor's intention to make a distribution.

Expenditure

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount can be measured reliably. All expenditure is accounted for on an accruals basis.

Page 11 of 25

CORNERSTONE BAPTIST CHURCH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

Principal accounting policies (continued)

Expenditure on raising funds comprises fundraising costs incurred in seeking donations, usually for a particular mission project.

Expenditure on ministry includes the costs of preaching the Gospel and care of individuals and communities both within and outside the Church.

Expenditure on mission includes the costs of outreach to children and their families and the communities around our Church buildings and the other sites where the Church meets. Other charitable expenditure promotes the same aims.

Expenditure on administration and support costs includes staff costs of the buildings manager, cleaners and operations manager and the costs of maintaining the Church buildings, equipment and the supply of services within the buildings.

Grants payable

Grants payable are donations to other Christian organisations to further the charitable purposes of the Church around Leeds, the UK and the world, or to individuals connected with the Church to enable them to train for or to exercise their Christian ministry. Details are given in note 19 to the financial statements. Grants are considered carefully when the budget is prepared. There is no certainty that any particular grant will be paid in future years, or that the amount will remain the same.

Land and buildings

The Church premises are incorporated within the financial statements at the historical cost of the Headingley church (£27,037) and the trustees' estimated valuation of the Horsforth church at the time of transfer to South Parade Baptist Church (£1,000,000). The manse properties in Adel and Headingley are stated at cost.

No depreciation is provided on any of the properties as the trustees consider that the residual value of the property is such that any charge would be immaterial. As the expected useful life of these assets is believed to be in excess of fifty years, annual impairment reviews are undertaken by the trustees at each balance sheet date. Any material deficit between the anticipated recoverable amount of the properties and their carrying value in the accounts is recognised in the statement of financial activities.

Equipment

Church equipment is written off in the year of purchase.

Financial instruments

The charity only has financial assets and financial 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 with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

Investments

Investments are initially recognised at their transaction value and subsequently measured at their fair value at the balance sheet date using the closing market price, except for shares in the trading subsidiary company which are carried at cost. The results of the trading subsidiary are not consolidated into those of the Church as total consolidated income does not exceed £1,000,000.

Page 12 of 25

CORNERSTONE BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)

Principal accounting policies (continued)

Cash and deposits

Cash at bank and in hand includes cash in hand and deposits repayable within 24 hours without penalty at the balance sheet date. Short term deposits includes deposits with a short maturity of three months or less from the date of acquisition or opening of the deposit account.

Operating leases

Costs in respect of operating leases are charged on a straight-line basis over the lease term.

Fund accounting

Unrestricted funds are available to spend on activities that further any of the purposes of the Church.

Designated funds are unrestricted funds which the trustees have decided at their discretion to set aside for a particular purpose.

Restricted funds are funds which the donor has specified are to be used solely for a particular area of the Church's work or for purchases of specific assets for use by the Church.

Taxation

As a registered charity, Cornerstone Baptist Church is exempt from taxation in respect of income or capital gains to the extent that such income or gains are applied exclusively to charitable purposes. The Church receives no similar exemption for VAT, except that under the terms of the Listed Places of Worship grant scheme the Church can recover the VAT incurred on repairs to the fabric of its churches, which are both listed buildings.

Pension costs

As explained in note 18, the Church participates in The Baptist Pension Scheme, a multiemployer scheme which is unable to identify the assets and liabilities attributable to the Church. In accordance with FRS 102 amounts paid to the Scheme are accounted for as if they were those of a defined contribution scheme.

The Church also participates in a defined contribution scheme. Amounts due in respect of such schemes are charged to the Statement of Financial Activities.

Recognition and valuation of donated services

The Church's activities are dependent on volunteers in all areas. Occasionally, travel expenses are reimbursed but there is no recognition in these accounts of the time donated by volunteers.

Current asset measurement

Trade and other debtors are recognised at the settlement amount due. Prepayments are valued at the amount prepaid. Tax recoverable is included at the amount receivable at the balance sheet date.

Creditors are recognised where there is a present obligation resulting 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 are recognised at the settlement amount.

Page 13 of 25

CORNERSTONE BAPTIST CHURCH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)

Principal accounting policies (continued)

Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The trustees are of the opinion that there are no estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities.

2. Income from donations and legacies

Unrestricted
Planned giving by standing orders/cheques/weekly envelopes
Income tax recoverable
Loose cash offerings
Church organisations
Coronavirus Job Retention Scheme
Donation from trading subsidiary
LCC grant for Free Family Fun Day
Other income
Restricted
Cragg Hill Drop In donations
Listed Places of Worship Grants Scheme
Special collections for other charities
 2020
2019
£
£
276,248
274,157
59,964
63,944
3,387
12,819
1,131
3,413
19,148
-
-
5,660
-
600
1,208
1,168
361,086
361,761
-
1,189
1,559
634
723
229
2,282
2,052
363,368
363,813

3. Income from other trading activities

Premises lettings
Green House café		 2020
2019
£
£
19,972
29,191
3,725
206
23,697
29,397

All income from premises lettings and fundraising is unrestricted (2019: all unrestricted).

Page 14 of 25

CORNERSTONE BAPTIST CHURCH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)

4. Expenditure on charitable activities

Ministry costs
Staff costs
Staff expenses
Resources and events
Mission
Staff costs
Staff expenses
Resources and events
Administration
Staff costs
Staff expenses		 Unrestricted Designated
Restricted
TotalUnrestricted
Designated
Restricted
Total
Funds
Funds
Funds
2020
Funds
Funds
Funds
2019
£
£
£
£
£
£
£
£
116,107 - - 116,107 116,614 - - 116,614
3,873 - - 3,873 17,194 - - 17,194
6,036 - - 6,036 5,833 - - 5,833
126,016 - -126,016139,641 - - 139,641
29,155 - - 29,155 26,707 - - 26,707
212 - - 212
287 - - 287
4,751 - - 4,751 14,422 - 837 15,259
34,118 - -34,11841,416 - 837 42,253
51,879 - - 51,879 48,774 - - 48,774
17 - - 17
109 - - 109
51,896 - -51,89648,883 - - 48,883

Page 15 of 25

CORNERSTONE BAPTIST CHURCH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)

Expenditure on charitable activities (continued)

Other charitable activities

Other charitable activities
Donations - see note 19
 48,541 - - 48,541 58,832 -
 229 59,061
Volunteer expenses
 379 - - 379
 483 - - 483
Conferences and events
 1,698 - - 1,698 5,897 -
 260 6,157
Green House Café expenses
 2,665 - - 2,665 293 - - 293
Intern expenses and accommodation
 5,832 - - 5,832 4,077 - - 4,077
Books, resources and materials
 3,843 - - 3,843 4,789 - - 4,789
Other costs
 2,996 - - 2,996 1,427 - - 1,427
Subscriptions
 3,630 - - 3,630 3,955 - - 3,955
69,584 - -69,584 79,753 -
 489 80,242
Support costs including governance costs
Communications and stationery
 10,255 - - 10,255 10,817 - - 10,817
Utilities and council tax
 23,848 - - 23,848 21,305 - - 21,305
Building repairs and maintenance
 27,775 - 1,559 29,334 24,387 -
 634 25,021
Equipment, furniture and fittings
 967 - - 967 15,268 - - 15,268
Insurance
 9,317 - - 9,317 7,361 - - 7,361
Legal fees
 2,795 - - 2,795 276 - - 276
Fees paid to the independent
examiner
 2,004 - - 2,004 1,764 - - 1,764
76,961 - 1,55978,520 81,178 -
 634 81,812
Total expenditure on charitable
activities
 358,575 - 1,559 360,134 390,871- 1,960 392,831

Page 16 of 25

CORNERSTONE BAPTIST CHURCH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)

5. Net income for the year is stated after charging

5.
Net income for the year is stated after charging
2020 2019
£ £
Independent examiner's remuneration 1,600
 1,470

6. Related parties

The custodian trustee of all the church properties is the Yorkshire Baptist Association (YBA) (Charity number 247173). The YBA occupied offices on the South Parade site until 1 April 2019 and subsequently rented a room for storage until 31 July 2020. The YBA paid the church £1,100 in rent (2019: £1,000). There were no outstanding balances at the year end (2019: £Nil). Both the Church and the YBA are members of the Baptist Union of Great Britain. Donations made to the Baptist Union Home Mission Fund by the Church are shown in note 19: there were no outstanding balances at the year end (2019: £Nil).

The Church’s subsidiary company, Adel Baptist Congregation Limited, though not trading, in previous years gifted some of its net profit to the Church (2019: £5,660).

Related party transactions relating to the ministers are shown in note 7.

7. Managing Trustee remuneration and benefits

Stipends
Employer's National Insurance
Pension contributions to DC scheme
Council tax, manse rental and travel expenses
Total for the year ended 31 December 2020
Total for the year ended 31 December 2019		 Morden
King
Wright
£
£
£
35,883 8,000 24,000
3,254 530 1,736
4,213 528 3,018
8,953 4,604 6,315
52,303 13,662 35,069
52,215 36,349 16,800

The Ministers, who were ex-officio members of both the Diaconate and the Eldership, were remunerated by the Church during the year. The amounts are shown above. Rev Dr P Morden and Rev M Wright occupy manses as part of their conditions of employment. Provision of housing is customary for ministers of religion, so the church rented a house from Mr and Mrs G King while Mr G King was a minister, under a formal lease arrangement.

8. Managing Trustees’ expenses

On occasion the Managing Trustees act as agents for the Church and make purchases on its behalf and are reimbursed for this expenditure, e.g., payment for stationery or catering. Such expenditure is not related to the services provided by the Managing Trustees and so is not disclosed. Apart from such expenditure and that disclosed in note 7, none of the Managing Trustees were remunerated, provided with benefits, or paid expenses for services provided to the Church.

Page 17 of 25

CORNERSTONE BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)

9. Staff costs and emoluments

Salaries and wages
Employer's National Insurance
Pension contributions to DC schemes
Pension deficiency contributions to DB schemes (note 18)		 2020
2019
£
£
166,897
159,447
9,660
10,332
13,434
12,988
7,150
9,328
197,141
192,095

The average monthly headcount during the year was 8 (2019: 8).

During the year, the Church employed three ministers, an associate pastor, a young families coordinator, an operations manager, a buildings manager, a café manager and a cleaner. No employee received remuneration of more than £60,000 per annum (2019: no employee) and there were no employee benefits other than those disclosed above.

The Trustees consider the key management personnel are the Trustees and the ministry team. The employee benefits of the key personnel total £172,894 (2019: £181,523).

10. Tangible assets

Cost or valuation
At 1 January 2020
Additions - Headingley manse
At 31 December 2020

Net book value
At 1 January 2020
At 31 December 2020		 Freehold
Land and Buildings
Total
£
£
1,340,4191,340,419
7,1517,151
1,347,5701,347,570
1,340,4191,340,419
1,347,5701,347,570

Freehold land and buildings comprise two churches and associated halls at South Parade in Headingley and Cragg Hill in Horsforth, together with two manses. The manses and the Headingley church are included at cost and the Horsforth church at the Trustees’ valuation at date of transfer. The Church is the beneficial owner of the property, but legal title is held by the YBA as custodian trustee.

11. Fixed Asset Investment

Subsidiary company
Adel Baptist Congregation Limited		 2020
2019
£
£
3
3
3
3

Page 18 of 25

CORNERSTONE BAPTIST CHURCH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)

Fixed Asset Investment (continued)

The Church holds 3 shares of £1 each in its wholly owned subsidiary company Adel Baptist Congregation Limited, a company registered in England (Company number 3829942). These are the only shares allotted, called up and fully paid. The company ceased to trade in October 2018 and is currently dormant.

The results of this company are not required to be consolidated with those of the Church, however the activity and results of this company are summarized as follows:

Income
Expenditure
(Loss) for the year
Total net assets and shareholders' funds
12.
Debtors
Other debtors
Prepayments and accrued income
13.
Short term deposits
CCLA Charities Deposit Fund
14.
Creditors: amounts falling due within one year

Trade creditors
Social security costs and other taxes
Other creditors
Accruals and deferred income		 2020
2019
£
£
-
-
211
(5,674)
(211)
(5,674)
3
214
2020
2019
£
£
8,527
11,086
7,383
18,205
15,910
29,291
2020
2019
£
£
75,422
75,224
75,422
75,224
2020
2019
£
£
8,934
6,764
3,385
3,571
80
1,525
4,608
11,440
17,007
23,300

Page 19 of 25

CORNERSTONE BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)

15. Commitments under operating leases

Total minimum lease payments under non-cancellable operating
leases fall due as follows:
Land and buildings - within one year
Other leases - within one year
Other leases - within two to five years		 2020
2019
£
£
-
3,300
939
939
391
1,330
1,330
5,569

16. Movement in funds during the year

Current year
Restricted funds
Cragg Hill drop-in
Listed Places of
Worship Grant Scheme
South Africa
Fundraising


Unrestricted Funds
General
Designated funds:
Property Fund


Total Funds		 Transfers
Balance
between
Balance
1 Jan 2020
Income
Expenditure
funds 31 Dec 2020
674 -
-
-
674
- 1,559 (1,559)
-
-
331
723
-
-1,054
1,005 2,282 (1,559)
- 1,728
168,149 384,981 (358,575)
(7,151)
187,404
1,340,419 -
- 7,1511,347,570
1,508,568 384,981 (358,575)
-1,534,974
1,509,573 387,263 (360,134)
-1,536,702

Page 20 of 25

CORNERSTONE BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)

Movement in funds during the year (continued)

Previous year
Restricted funds
Cragg Hill drop-in
Listed Places of
Worship Grant Scheme
Special collections
South Africa
Fundraising

Unrestricted Funds
General
Designated funds:
Property Fund
Future Projects Fund


Total Funds		 Transfers
Balance
between
Balance
1 Jan 2019
Income
Expenditure
funds 31 Dec 2019
582 1,189 (1,097)
-
674
- 634
(634)
-
-
- 229
(229)
-
-
331 -
-
-
331
913 2,052 (1,960)
- 1,005
161,268 393,556 (390,871)
4,196168,149
1,142,237 -
-
198,1821,340,419
202,378 -
-(202,378)
-
1,505,883 393,556 (390,871)
- 1,508,568
1,506,796 395,608 (392,831)
- 1,509,573

Purposes of restricted funds:

Cragg Hill Drop-In South Africa fundraising

For the benefit of the Drop-In activities at Cragg Hill Raising funds to support mission trips to Sethani, South Africa

Purpose of designated funds:

Property Fund This represents the holding value of the church properties Future Projects Fund This fund held monies set aside from the sale of a manse in 2014, now used to purchase the Headingley manse

Page 21 of 25

CORNERSTONE BAPTIST CHURCH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)

17. Analysis of net assets among funds at the year end

Current year
Analysis of net assets between funds
Tangible fixed assets
Investments
Net current assets
Total net assets

Previous year
Analysis of net assets between funds
Tangible fixed assets
Investments
Net current assets
Total net assets		 Unrestricted Funds
Restricted
Total
General
Designated
Funds
Funds
£
£
£
£
- 1,347,570 -1,347,570
3 - -3
187,401 - 1,728189,129
187,404 1,347,570 1,7281,536,702
Unrestricted Funds
Restricted
Total
General
Designated
Funds
Funds
£
£
£
£
- 1,340,419 -1,340,419
3 - -3
168,146 - 1,005169,151
168,149 1,340,419 1,0051,509,573

18. Pensions

The Church is a participating employer in 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 Church and the other participating employers.

The Scheme, previously known as the Baptist Ministers’ Pension Fund, started in 1925, but was closed to future accrual of defined benefits on 31 December 2011. Prior to this date, the main benefit provided through the Defined Benefit (DB) Plan was a pension of one eightieth of final minimum Pensionable Income for each year of pensionable service together with additional pension in respect of premiums paid on Pensionable Income in excess of Minimum Pensionable Income.

From January 2012, pension provision is being made through the Defined Contribution (DC) Plan within the Scheme. In general, members pay 8% of their Pensionable Income and employers pay 6% of members’ Pensionable Income into individual pension accounts, which are operated and managed on behalf of the Pension Trustee by Broadstone Corporate Benefits Ltd.

In addition, the employer pays a further 4% of Pensionable Income to cover Death in Service Benefits, administration costs, and an associated insurance policy which provides income protection for Scheme members if they are unable to work due to long-term incapacity.

This income protection policy has been insured by the Baptist Union of Great Britain with Aviva Limited. Some Church members of staff are members of the Basic Section of the Scheme; members pay reduced contributions of 3.4% of Pensionable Income, and the Church pays a total of 6.6%. There is no income protection insurance for members of the Basic Section.

Page 22 of 25

CORNERSTONE BAPTIST CHURCH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)

Pensions (continued)

The Scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. Because it is not possible to attribute the Scheme’s assets and liabilities to specific employers, the scheme is accounted for as if the Scheme were a defined contribution scheme. The Ministers and members of the church staff are eligible to join the Scheme.

Actuarial valuation as at 31 December 2019

A formal valuation of the DB Plan as at 31 December 2019 was carried out by a professionally qualified Actuary using the Projected Unit Method. At the valuation date the market value of the DB Plan assets was £298m, whilst the level of assets needed to pay benefits was £316m, giving a deficit of £18m (equivalent to a past service funding level of 94%). The Church and the other participating employers in the DB Plan are collectively responsible for funding this deficit.

The key financial assumptions underlying the valuation were as follows:

The key financial assumptions underlying the valuation were as follows:
Type of assumption % p.a.
RPI price inflation assumption 3.20
CPI price inflation assumption 2.70
Minimum Pensionable Income Increase Adjustment (above CPI) 0.50
Pre-retirement assumed investment returns (gilt yield plus 1.75% p.a.) 2.95
Post retirement assumed investment returns (including benefits
matched by the insurance policy) (gilt yield plus 0.5% p.a.) 1.70
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 of 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 is due to take place not later than as at 31 December 2022.

Recovery plan

In addition to the contributions to the DC Plan set out above, where a valuation of the DB Plan reveals a deficit the Trustee and the Council agree to a rate of deficiency contributions from churches and other employers involved in the DB Plan. Under the current Recovery Plan signed in September 2020, deficiency contributions are payable until June 2026. These contributions are broadly based on the employer's membership at 31 December 2014 and increase annually in line with increases to Minimum Pensionable Income as defined in the Rules.

Pension cost for the year

DC contributions for ministers
DC contributions for staff
DB deficit payments		 2020
2019
£
£
7,752
6,480
5,682
6,508
7,150
9,328
20,584
22,316

Page 23 of 25

CORNERSTONE BAPTIST CHURCH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)

Pensions (continued)

The Scheme has provided an estimate of the employer debt that the church would need to pay if it were to exit the DB Plan of the Scheme at 31 December 2020, of £180,000 (2019: £174,100). This is for information only, as it is not payable until the church ceases to employ any active members of the Scheme, which eventuality is considered to be extremely unlikely.

19. Donations made during the year

Purpose of donation
Grants to individuals
Bartram, Dave
Support in Christian training
Gnanakan, Dorothy & Chris
Partnership funding
Stow, Duncan
Support in Christian training
Whitman, Tom
Support for overseas project
Church interns
Support in Christian training
Total grants to individuals		 2020
2019
£
£
-993
4,3005,000
-1,150
-250
-120
4,3007,513

Page 24 of 25

CORNERSTONE BAPTIST CHURCH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)

Donations made during the year (continued)

Purpose of donation
Grants to institutions
BMS World Mission
Support of worldwide mission activities
CARE
Support to Christian poverty action charity
CT in Headingley
Local ecumenical activities
Fellowship Fund
Available for use at ministers' discretion
Fusion
Student mentoring and support
Home Mission Fund
Support of national Baptist activities
Horsforth Churches
Together
Local ecumenical activities
Horsforth Live At
Home Scheme
Local care for elderly support
International Students
Club
Mission work with international students
June Project
Work with students in the community
LCCT
Support for the work of Duncan Stow
Leeds Arts Uni CU
Work with students
Leeds Beckett Uni CU
Work with students
Leeds College of
Music CU
Work with students
Leeds Faith in Schools
Support for local schools’ work
Leeds University CU
Work with students
OMF
Mission work in Japan (Levi Booth)
Salvation Army
Work in Bramley with Connect
Scripture Union
Children’s mission work
Sethani
Work with children in South Africa
SIM
Mission work in Chad
Teach Beyond
Work with missionary families
TLG
Work with vulnerable children
The Bible Project
Online Bible resources and videos
Toilet Twinning -
Restricted
Provide safe toilets
Transformations
Leeds
Mission work with international students
UCCF
Work with students
Total grants to
institutions

Total donations		 2020
2019
£
£
6,00010,000
200200
-50
1,791300
150150
6,0009,214
400500
-250
300300
-100
3,0003,000
125-
150200
125-
3,5403,540
150480
6,0006,062
3,0003,000
50200
-600
6,0006,014
6,0006,000
500300
-99
-229
360360
400400
44,24151,548
48,54159,061

Page 25 of 25