LEM//COR011/ID2449829 

The Board of Trustees Cornerstone Baptist Church South Parade Headingley Leeds LS6 3LF 

Dear Trustees 

The following representations are made on the basis of enquiries of management and staff with relevant knowledge and experience such as we consider necessary in connection with your independent examination of the charity’s financial statements for the year ended 31 December 2021.  These enquiries have included inspection of supporting documentation where appropriate and are sufficient to satisfy ourselves that we can make each of the following representations.  All representations are made to the best of our knowledge and belief. 

## **General** 

1. You acknowledge that the work performed by ourselves is substantially less in scope than an audit performed in accordance with International Standards on Auditing (UK) and that we do not express an audit opinion. 

2. You confirm that the charity was entitled to exemption under section 144 of the Charities Act 2011 the requirement to have its financial statements for the financial year ended 31 December 2021 audited. 

3. You have fulfilled your responsibilities as trustees as set out in the terms of your engagement letter dated 6 January 2022, under the Charities Act 2011 for preparing financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), for being satisfied that they give a true and fair view and for making accurate representations to you. 

4. You confirm that all the transactions undertaken by the charity have been properly reflected and recorded in the accounting records. 

5. You confirm that all the accounting records have been made available to you for the purpose of your independent examination.  You have provided us with unrestricted access to all appropriate persons within the charity, and with all other records and related information requested, including minutes of all management and trustee meetings and correspondence with The Charity Commission. 

6. You confirm that the effects of uncorrected misstatements (as set out in the appendix to this letter) are immaterial both individually and in total. 

7. You confirm that, in your opinion, the fair value of the land and buildings is not materially different to the book value. 





## **Assets and liabilities** 

8. You confirm that the charity has satisfactory title to all assets and there are no liens or encumbrances on the charity’s assets, except for those that are disclosed in the notes to the financial statements. 

9. You confirm that all actual liabilities, contingent liabilities and guarantees given to third parties have been recorded or disclosed as appropriate. 

10. You have no plans or intentions that may materially alter the carrying value and where relevant the fair value measurements or classification of assets and liabilities reflected in the financial statements. 

## **Accounting estimates** 

11. Significant assumptions used by you in making accounting estimates, including those measured at fair value, are reasonable. 

## **Legal claims** 

12. You have disclosed to us all claims in connection with litigation that have been, or are expected to be, received and such matters, as appropriate, have been properly accounted for, and disclosed in, the financial statements. 

## **Laws and regulations** 

13. You have disclosed to us all known instances of non-compliance or suspected non-compliance with laws and regulations whose effects should be considered when preparing the financial statements. 

## **Related parties** 

14. Related party relationships and transactions have been appropriately accounted for and disclosed in the financial statements. You have disclosed to us all relevant information concerning such relationships and transactions and are not aware of any other matters which require disclosure in order to comply with legislative and accounting standards requirements. 

## **Subsequent events** 

15. All events subsequent to the date of the financial statements which require adjustment or disclosure have been properly accounted for and disclosed. 

## **Going concern** 

16. You believe that the charity's financial statements should be prepared on a going concern basis on the grounds that current and future sources of funding or support will be more than adequate for the charity's needs.  You have considered a period of twelve months from the date of approval of the financial statements.   You believe that no further disclosures relating to the charity's ability to continue as a going concern need to be made in the financial statements. 



## **Grants and donations** 

17. All grants, donations and other income, the receipt of which is subject to specific terms or conditions, have been notified to us. There have been no breaches of terms or conditions in the application of such income. 

Yours faithfully 

## Azets Audit Services Limited 

## **Azets Audit Services Limited** 

We confirm that the above representations are made on the basis of enquiries of trustees, management and staff with relevant knowledge and experience and, where appropriate, of inspection of supporting documentation, sufficient to satisfy ourselves that we can properly make each of the above representations to you. 

We confirm that we have read and understood the contents of this letter and agree that it accurately reflects the representations made to you by the trustees during the course of the independent examination. 

................................................... Trustee 

18/08/2022 ................................................... Date 




## **Cornerstone Baptist Church Headingley, Leeds** 

**Report of the Managing Trustees and Financial Statements for the year ended 31 December 2021** 

**Charity Registered in England and Wales 1128935** 



## **CORNERSTONE BAPTIST CHURCH** 

**ANNUAL REPORT AND FINANCIAL STATEMENTS** 

**FOR THE YEAR ENDED 31 DECEMBER 2021** 

|**Contents:**||
|---|---|
|Managing Trustees Report|3-10|
|Independent Examiner Report|11|
|Statement of Financial Activities|12|
|Balance Sheet|13|
|Notes to the Financial Statements|14-28|



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## **CORNERSTONE BAPTIST CHURCH MANAGING TRUSTEES’ REPORT** 

## **FOR THE YEAR ENDED 31 DECEMBER 2021** 

The Managing Trustees present to you their annual report, along with the financial statements of Cornerstone Baptist Church (CBC) for the year ended 31 December 2021. 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, to have a name that was not specific to any of our three sites, and to strengthen our one Church identity. 

We are delighted to report to you the various activities that have been going on throughout Cornerstone over the last year and hope that you enjoy reading about all that has been achieved. We hope you are encouraged as we move forward 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 2021 and a chance to look forward to what we hope to do during 2022. 

The accounts 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 1 January 2019) – Charities SORP (FRS102) and the Baptist Union of Great Britain Guidelines F03 (10/2020). 

The structure of this report makes sure we answer all the questions asked by the SORP, in particular: 

1. Administrative details; 

2. The structure under which we operate; 

3. Objectives and activities; 

4. Achievements and performance; 

5. Financial review; and 

6. Plans for future periods. 

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## **CORNERSTONE BAPTIST CHURCH MANAGING TRUSTEES’ REPORT** 

## **FOR THE YEAR ENDED 31 DECEMBER 2021** 

**Reference and Administrative details of the charity, its trustees and advisors:** 

|**Registered Office**|South Parade,|
|---|---|
||Headingley|
||Leeds|
||LS6 3LF|
|**Email**|info@cbcl.org.uk|
|**Website**|www.cbcl.org.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|
||Azets Audit Services Limited|
||Truine Court, Monks Cross Drive, York, YO32 9GZ|
|**Managing Trustees**||
|Revd Dr P Morden|Senior Minister|
|M Wright|Minister (retired 18 April 2021)|
|S J Burras|Elder|
|B A Crosse|Elder|
|S J Halligan|Elder (appointed 21 January 2021)|
|R Hughes|Elder (appointed 26 November 2021)|
|J Jones|Elder|
|G D McLeen|Elder and Church Secretary|
|J F Pelham|Elder (retired 25 November 2021)|
|N Richards|Elder (appointed 26 November 2021)|
|T Rowe|Elder (retired 25 March 2021)|
|S Thresher|Elder (appointed 26 November 2021)|
|J S Walsh|Elder (retired 25 March 2021)|



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**CORNERSTONE BAPTIST CHURCH MANAGING TRUSTEES’ REPORT** 

## **FOR THE YEAR ENDED 31 DECEMBER 2021** 

## **Structure, Governance and Management:** 

## **Structure** 

CBC 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. 

The Church operates under an inter-dependent model, which means we have three gatherings meeting on three sites – Cragg Hill (Horsforth), Headingley and Connect@Copperbeech (Bramley). There are three leadership teams, one for each site, with each leadership team including an Elder and Leader appointed by the whole Church meeting. We are working in Bramley in partnership with the Salvation Army. In January 2022 we started a new outreach initiative at our Headingley site. This is ‘The Lantern’ run in partnership with Leeds Vineyard, which has a special focus on reaching out to the homeless and vulnerable in the Headingley area. 

## **Managing Trustees** 

The Elders act as the Managing Trustees of Cornerstone.  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 re-appointed 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 able 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.  In order to be elected a nominee must receive positive votes from two-thirds of those voting. 

The Church Secretary is appointed from among the Eldership by the Church meeting. 

## **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 CBC as a Managing Trustee.  The pack also includes the most recent Report and Accounts, and minutes from the three latest Elders’ meetings. 

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## **CORNERSTONE BAPTIST CHURCH MANAGING TRUSTEES’ REPORT** 

## **FOR THE YEAR ENDED 31 DECEMBER 2021** 

## **Risk Management** 

After initial discussions towards the end of 2020 it was agreed in the January Church meeting to dissolve the Diaconate and have a trial period during which the Eldership would assume wider responsibilities. This was done to streamline the leadership structure and to facilitate quicker decision making. The main areas of diaconate responsibility had been identified and where appropriate subcommittees would be formed to support the elders, selecting people who could offer their expertise in various areas. The Elders have continued to keep the risk management process for Cornerstone under review but  the risk register was not reviewed in 2021. During 2021 the focus continued to be 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. The risk assessment group comprising an elder and two former deacons continued their work throughout the year. 

## **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 2006 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. 

## **Our Purpose Statement, and core values and a review of some of the activities to achieve them.** 

## **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 Hebrews 12:1b&2a as our verses for the year, which says, “And let us run with perseverance the race marked out for us, fixing our eyes on Jesus, the pioneer and perfecter of our faith.” 

These verses seem particularly apt at this time as people have become weary with long term isolation from family and friends. Our hope and joy as Christians depends on us looking to Jesus and living out our lives as he has shown us. 

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## **CORNERSTONE BAPTIST CHURCH MANAGING TRUSTEES’ REPORT** 

## **FOR THE YEAR ENDED 31 DECEMBER 2021** 

This year has again been very challenging as we faced the third covid-19 lockdown running into the earlier part of the year. This of course placed severe restrictions on us being able to run physical services and other regular activities during the week. 

In April Matt Wright, our second minister, left to pursue a career with The Inspire Movement as a lead missioner and co-dean of their school of discipleship. This left us with a significant challenge of how to cover the workload with a reduced staff team and we are currently re-assessing our needs as a Church as we come out of lockdown.  We recognise this is a crucial time for the Christian community as people have become much more open to exploring faith when many have experienced very difficult personal circumstances, causing them to reflect on their purpose in life. 

We have sent out by email a weekly pastoral update to keep people informed about the various activities running. We also committed to keeping in contact with those of our members who don’t have access to the internet and we have sent out newsletters to these people. We continued to put out daily podcasts during the first quarter of the year, in line with the original plan to do this for twelve months from the first lockdown. This was another way to both keep in touch and encourage bible study. 

The Green House cafe opened at the beginning of 2020 ran for part of the year, but like many activities was limited by the second lockdown. One initial focus has been to serve the parents and carers for the under 5’s groups, our church attenders and increasingly the wider community. Despite the disruption caused by the pandemic, numbers attending the café have been really encouraging and during the latter part of the year we have seen several folk coming who are homeless and we see this as a very important 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. Several mission projects draw strength from across the whole church and these continued outside of periods of lockdown: 

- **The Tots bedtime story via Zoom developed towards the end of 2020 was repeated several times in 2021** 

- **The Gathering called “Connect” at Bramley continues to meet and flourish at the local Copper Beech Community Centre owned by the Salvation Army Housing Association.** Our partnership with the Salvation Army is based upon common goals and one Lord. They started the year running virtual events and providing families with home resources through the lockdown to enable the community to stay in touch and connect with each other and with God – these included an online quiz, Easter crafts delivered to families, and Zoom social times. As the year progressed and Covid restrictions were lifted, the community began outdoor meetings, including Church on The Move (small group walks with prayer/spiritual reflections), Connect picnics, family games sessions in the park, and fruit picking at the Hub. By the end of the year, larger group meetings were again taking place, with youth and children’s groups back at the Hub, a busy Christmas programme of events, and a very successful Toy Appeal that saw more than 100 sacks of Christmas gifts delivered to local families. 

- **Cragg Hill Gathering in the Horsforth area** organised to meet the challenge of the second Covid lockdown. During 2020 and through 2021 CBCL broadcast online Sunday services which members of Cragg were encouraged to join. Cragg organised morning and evening prayer 

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## **CORNERSTONE BAPTIST CHURCH MANAGING TRUSTEES’ REPORT** 

## **FOR THE YEAR ENDED 31 DECEMBER 2021** 

meetings and social gatherings on zoom which proved to be a great encouragement particularly to those living alone. A bible study and “The Gospel Explored “course was also run on zoom. 

- Meeting on zoom continued into the spring when the first outdoor service was held in the church garden on Easter Sunday. The Sunday morning services and the Friday “Drop in” continued outdoors through the summer and well into the autumn. 

- With support from Lister Hill Baptist Church Cragg Hill hosted a 10 week Alpha course held at Town Street Tavern in Horsforth. The combined impact of the bible study, Gospel Explored and the Alpha course has resulted in 4 people asking to be baptised. 

- During the summer the local neighbourhood was invited to a community outreach day. This included a skip to clear garden rubbish, a bouncy castle and afternoon tea. 

- In September Kate Burkett and a team of volunteers started a new Tots group on Monday mornings at Cragg Hill. This has proved very popular and is going well. There is a strong emphasis on Christian outreach to the children and the adults with the hope that the gospel can be shared in a clear, practical and compassionate way. Our hope is that the families will become involved in the life of the church and come to know Christ. 

- **Headingley saw some further development as a site.** The launch of the aforementioned Lantern outreach initiative, begun at the beginning of 2022 was a significant moment. The café continues to progress well, and volunteers have been found to enable this to make progress. In the Sunday services, we are seeing new people, some more students than in the previous five years, and the services have an increasing number of people from different backgrounds and cultures coming. The next step is to become both multi-cultural and inter-cultural, with a range of different people involved and shaping the services. 

As a consequence of the pandemic 2021 has been a year of evaluating what is important to us and individuals and as a Church. There are things which we have laid aside and things we have reestablished. As we move forward, we want to take hold of the opportunity to rethink how we interact with our community as we seek to share the Good News. 

CBC encourages and supports individuals (sometimes financially) in a variety of mission and charitable activities including missionaries in Central Africa, Japan, North Africa and Austria taking the gospel, human skills and compassion with BMS World Mission, Serving in Mission, Christar and the Overseas Missionary Fellowship. We also support a member to help overseas parents in their children’s education with SHARE Education Services. One of our members engages in long term mission activities in Guinea Bissau. 

The Church continues to support and encourage Transformations Leeds, a local charity working with churches to reach out to international students in Leeds with God’s love. Their vision and ours is for God to transform international students’ lives so that they go home and transform the nations.  We host two fund raising events a year (a concert and a Ceilidh) and Cornerstone members are active in Transformations Leeds. 

We had further members ‘graduate’ from the Leeds School of Theology this year and our hope is for others to undertake this excellent 2-year part-time course each year on an ongoing basis. 

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## **CORNERSTONE BAPTIST CHURCH MANAGING TRUSTEES’ REPORT** 

## **FOR THE YEAR ENDED 31 DECEMBER 2021** 

Of course, many of our activities including some of those above have had to stop during the pandemic but very encouragingly we have seen our on-line 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, and café services and a live streamed carol service at Headingley. We are very grateful to the small risk assessment 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 the se challenging times. 

We continued with children and youth small group meetings on-line during the week moving back into face-to-face meetings in the latter part of the year. 

Finally, we had 1 believers baptism this year (with three already in 2022). 

## **Financial review** 

During the year, total income amounted to £323,860 (2020: £387,263) of which voluntary income was the main component and totalled £303,826 (2020: £363,368). Expenditure for the year totalled £337,554 (2020: £360,134), making net expenditure for the year of £13,694 (2020: net income £27,129). 

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 donations is higher than this but we will struggle to maintain this level, particularly as individuals’ pattern of giving has changed with people much more likely to give to specific charitable causes outside of their Church giving, rather than include this within their giving to the Church. In 2021 14.0% of donation income (2020: 13.4%) was used in this way. 

As in the previous year we continue to carefully review all of our expenditure with the objective over the short to medium term of minimising any annual net deficit and thus maintaining our unrestricted reserves at a healthy level. In the slightly longer term we do plan to return to annual net surpluses. 

At the balance sheet date, the Church had total net assets of £1,523,008 (2020: £1,536,702). Uncommitted reserves freely available for church charitable activities decreased by £13,625 to £173,779 (2020: £187,404). 

The Managing Trustees consider that the minimum reserves necessary with no reliance on bank financing are 6 weeks of staff costs, that is £23,621 (2020: £22,747) at the year end. Reserves held at the balance sheet date would finance the Church charitable activities for 44 weeks (2020: 27 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. 

## **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. 

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## **CORNERSTONE BAPTIST CHURCH MANAGING TRUSTEES’ REPORT** 

## **FOR THE YEAR ENDED 31 DECEMBER 2021** 

## **Plans for future periods** 

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

- Encourage people to engage in discipleship groups to encourage Christians to grow further in their faith with a small number of individuals who will be mutually supportive and accountable to each other. 

- To seek God’s guidance as to what the next steps should be to develop the work of the Connect@CopperBeech partnership further. 

- For the Headingley gatherings to further develop their mission focus within the local community. Diversity in age and ethnic origins is part of its strength but we want to encourage and develop younger members and non-Caucasians in leadership.  Alongside this there is a need to develop deeper commitment and discipleship among a large part of the congregation who attend irregularly and are not involved in a small group where nurturing and pastoral care can take place. 

- The eldership are currently assessing what staff resources are needed to take the Church forward with a strong missional focus whilst also growing disciples who will be our leaders of the future and this within the added challenge of limited financial resources. 

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. 

## P Morden 

Greg McLeen and Peter Morden 2022 

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## **CORNERSTONE BAPTIST CHURCH INDEPENDENT EXAMINER’S REPORT** 

## **Independent examiner’s report to the trustees of South Parade Baptist Church** 

I report to the trustees on my examination of the accounts of South Parade Baptist Church (the charity) for the year ended 31 December 2021. 

## **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 

Laura Masheder FCA DChA 

Azets Audit Services Limited Triune Court Monks Cross Drive York YO32 9GZ 

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## **CORNERSTONE BAPTIST CHURCH STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2021** 

|**Note**<br>**Income from:**<br>Donations and legacies<br>2<br>Other trading activities<br>3<br>Investments - bank<br>interest<br>**Total**<br>**Expenditure on:**<br>Charitable activities<br>4<br>**Total**<br>**Net income**<br>**Transfers between funds**<br>**Reconciliation of funds**<br>Total funds brought<br>forward<br>At 1 January 2021<br>**Total funds carried**<br>**forward**<br>At 31 December 2021<br>17|**2021**<br>2020<br>**Unrestricted**<br>**Designated**<br>**Restricted**<br>**Total**Unrestricted<br>Designated<br>Restricted<br>Total<br>**Funds**<br>**Funds**<br>**Funds**<br>**Funds**<br>Funds<br>Funds<br>Funds<br>Funds<br>**£**<br>**£**<br>**£**<br>**£**<br>£<br>£<br>£<br>£<br>303,826<br>-<br>-<br>**303,826**<br>361,086<br>-<br>2,282<br>363,368<br>19,978<br>-<br>-<br>**19,978**<br>23,697<br>-<br>-<br>23,697<br>56<br>-<br>-<br>**56**<br>198<br>-<br>-<br>198|
|---|---|
||323,860<br>-<br>-<br>**323,860**<br>384,981<br>-<br>2,282<br>387,263|
||337,485<br>-<br>69<br>**337,554**<br>358,575<br>-<br>1,559<br>360,134|
||337,485<br>-<br>69<br>**337,554**<br>358,575<br>-<br>1,559<br>360,134|
||(13,625)<br>-<br>(69)<br>**(13,694)**<br>26,406<br>-<br>723<br>27,129<br>-<br>-<br>-<br>**-**<br>(7,151)<br>7,151<br>-<br>-<br>187,404<br>1,347,570<br>1,728<br>**1,536,702**<br>168,149<br>1,340,419<br>1,005<br>1,509,573|
||173,779<br>1,347,570<br>1,659<br>**1,523,008**<br>187,404<br>1,347,570<br>1,728<br>1,536,702|



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## **CORNERSTONE BAPTIST CHURCH BALANCE SHEET AS AT 31 DECEMBER 2021** 

|**Note**<br>**Fixed assets:**<br>Tangible assets<br>10<br>Investments<br>11<br>Total fixed assets<br>**Current assets:**<br>Debtors<br>12<br>Short term deposits<br>13<br>Cash at bank and in hand<br>Total current assets<br>**Liabilities:**<br>Creditors: amounts falling<br>due within one year<br>14<br>Net current assets<br>**Total net assets**<br>**The funds of the charity:**<br>Restricted funds<br>16/17<br>Unrestricted designated funds<br>16/17<br>Other unrestricted funds<br>**Total charity funds**<br>16/17|**1,659**|**2021**<br>**£**<br>**1,358,923**<br>**3**|1,728|2020<br>£<br>1,347,570<br>3|
|---|---|---|---|---|
|||**1,358,926**<br>**15,218**<br>**-**<br>**159,687**||1,347,573<br>15,910<br>75,422<br>114,804|
|||**174,905**<br>**(10,823)**||206,136<br>(17,007)|
|||**164,082**||189,129|
|||**1,523,008**||1,536,702|
|||**1,659**<br>**1,521,349**||1,728<br>1,534,974|
||**1,347,570**<br>**173,779**||1,347,570<br>187,404||
|||**1,523,008**||1,536,702|



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

## P Morden 

Peter Morden (Senior Pastor) 

Greg McLeen (Church Secretary) 

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## **CORNERSTONE BAPTIST CHURCH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** 

## **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 1 January 2019) – Charities SORP (FRS102) and the Baptist Union of Great Britain Guidelines F03 (10/2020). 

The financial statements have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following Charities SORP (FRS 102) rather than Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn. 

Cornerstone Baptist Church meets the definition of a public benefit entity under FRS102. 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 Managing Trustees have prepared financial projections, which take 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. 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 Managing 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, which 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. 

14 of 28 



## **CORNERSTONE BAPTIST CHURCH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** 

## **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. 

## **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 Managing Trustees’ estimated valuation of the Horsforth church at the time of transfer to the then 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 Managing 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 Managing 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** 

Equipment with an acquisition cost of £5,000 or more is capitalised and depreciated over 5 years, otherwise all 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. 

15 of 28 



## **CORNERSTONE BAPTIST CHURCH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** 

## **Principal accounting policies (continued)** 

## **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. 

## **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 Managing 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 multi-employer scheme, which is unable to identify the assets and liabilities attributable to the Church. In accordance with FRS102, amounts paid to the Scheme are accounted for as if they were those of a defined contribution scheme as there is no former recovery plan in place at Church level. 

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 upon 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. 

16 of 28 



**CORNERSTONE BAPTIST CHURCH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** 

## **Principal accounting policies (continued)** 

## **Critical accounting estimates and judgements** 

In the application of the charity’s accounting policies, the Managing 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 Managing 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.**<br>**Income from donations and legacies**<br>**Unrestricted**<br>Planned giving by standing orders/cheques/weekly<br>envelopes<br>Income tax recoverable<br>Loose cash offerings<br>Church organisations<br>Coronavirus Job Retention Scheme<br>Other income<br>**Restricted**<br>Listed Places of Worship Grants Scheme<br>Special collections for other charities<br>**3.**<br>**Income from other trading activities**<br>Premises lettings<br>Green House café|**2021**<br>2020<br>**£**<br>£<br>242,865<br>276,248<br>54,497<br>59,964<br>220<br>3,387<br>889<br>1,131<br>3,679<br>19,148<br>1,676<br>1,208|
|---|---|
||**303,826**<br>**361,086**|
||-<br>1,559<br>-<br>723|
||-<br>**2,282**|
|||
||**303,826**<br>**363,368**|
||**2021**<br>2020<br>**£**<br>£<br>16,024<br>19,972<br>3,954<br>3,725|
||**19,978**<br>23,697|



All income from other trading activities is unrestricted (2020: all unrestricted). 

17 of 28 



## **CORNERSTONE BAPTIST CHURCH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** 

## **4. Expenditure on charitable activities** 

|Ministry costs<br>Staff costs<br>Staff expenses<br>Resources and events<br>Mission<br>Staff costs<br>Staff expenses<br>Resources and events<br>Administration<br>Staff costs<br>Staff expenses|**Unrestricted**<br>**Designated**<br>**Restricted**<br>**Total**<br>Unrestricted<br>Designated<br>Restricted<br>Total<br>**Funds**<br>**Funds**<br>**Funds**<br>**2021**<br>Funds<br>Funds<br>Funds<br>2020<br>**£**<br>**£**<br>**£**<br>**£**<br>£<br>£<br>£<br>£<br>86,463<br>-<br>-<br>86,463<br>116,107<br>-<br>-<br>116,107<br>506<br>-<br>-<br>506<br>3,873<br>-<br>-<br>3,873<br>7,843<br>-<br>-<br>7,843<br>6,036<br>-<br>-<br>6,036|
|---|---|
||**94,812**<br>-<br>-<br>**94,812**<br>126,016<br>-<br>-<br>126,016|
||55,993<br>-<br>-<br>55,993<br>29,155<br>-<br>-<br>29,155<br>425<br>-<br>-<br>425<br>212<br>-<br>-<br>212<br>4,557<br>-<br>69<br>4,626<br>4,751<br>-<br>-<br>4,751|
||**60,975**<br>-<br>69<br>**61,044**<br>34,118<br>-<br>-<br>34,118|
||62,259<br>-<br>-<br>62,259<br>51,879<br>-<br>-<br>51,879<br>185<br>-<br>-<br>185<br>17<br>-<br>-<br>17|
||**62,444**<br>-<br>-<br>**62,444**<br>51,896<br>-<br>-<br>51,896|



18 of 28 



## **CORNERSTONE BAPTIST CHURCH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** 

## **Expenditure on charitable activities** 

**(continued)** 

|Other charitable activities<br>Donations - see note 19<br>Volunteer expenses<br>Conferences and events<br>Green House Café expenses<br>Intern expenses and accommodation<br>Books, resources and materials<br>Other costs<br>Subscriptions<br>Support costs including governance<br>costs<br>Communications and stationery<br>Utilities and council tax<br>Building repairs and maintenance<br>Equipment, furniture and fittings<br>Insurance<br>Legal fees<br>Fees paid to the independent examiner<br>**Total expenditure on charitable**<br>**activities**|**Unrestricted**<br>**Designated**<br>**Restricted**<br>**Total**<br>Unrestricted<br>Designated<br>Restricted<br>Total<br>**Funds**<br>**Funds**<br>**Funds**<br>**2021**<br>Funds<br>Funds<br>Funds<br>2020<br>**£**<br>**£**<br>**£**<br>**£**<br>£<br>£<br>£<br>£<br>42,569<br>-<br>-<br>42,569<br>48,541<br>-<br>-<br>48,541<br>125<br>-<br>-<br>125<br>379<br>-<br>-<br>379<br>1,630<br>-<br>-<br>1,630<br>1,698<br>-<br>-<br>1,698<br>1,136<br>-<br>-<br>1,136<br>2,665<br>-<br>-<br>2,665<br>-<br>-<br>-<br>-<br>5,832<br>-<br>-<br>5,832<br>3,302<br>-<br>-<br>3,302<br>3,843<br>-<br>-<br>3,843<br>1,767<br>-<br>-<br>1,767<br>2,996<br>-<br>-<br>2,996<br>3,273<br>-<br>-<br>3,273<br>3,630<br>-<br>-<br>3,630|
|---|---|
||**53,802**<br>-<br>-<br>**53,802**<br>69,584<br>-<br>-<br>69,584|
||8,927<br>-<br>-<br>8,927<br>10,255<br>-<br>-<br>10,255<br>24,457<br>-<br>-<br>24,457<br>23,848<br>-<br>-<br>23,848<br>13,652<br>-<br>-<br>13,652<br>27,775<br>-<br>1,559<br>29,334<br>4,079<br>-<br>-<br>4,079<br>967<br>-<br>-<br>967<br>10,339<br>-<br>-<br>10,339<br>9,317<br>-<br>-<br>9,317<br>1,982<br>-<br>-<br>1,982<br>2,795<br>-<br>-<br>2,795<br>2,016<br>-<br>-<br>2,016<br>2,004<br>-<br>-<br>2,004|
||**65,452**<br>-<br>-<br>**65,452**<br>76,961<br>-<br>1,559<br>78,520|
||**337,485**<br>**-**<br>**69**<br>**337,554**<br>358,575<br>-<br>1,559<br>360,134|



19 of 28 



**CORNERSTONE BAPTIST CHURCH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** 

## **5. Net income for the year is stated after charging:** 

|**Net income for the year is stated after charging:**||
|---|---|
|Independent examiner's remuneration|**2021**<br>2020<br>**£**<br>£|
||1,680<br>1,600|



## **6. Related parties** 

The custodian trustee of all the Church properties is the Yorkshire Baptist Association (YBA)(Charity number 247173). The YBA occupied offices at the Headingley Site until 1 April 2019 and subsequently rented a room for storage until 21 July 2020. The YBA paid the Church £Nil in rent in 2021 (2020: £1,100). There were no outstanding balances at the year end (2020: £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 (2020: £Nil). 

During the year the wife of one of the Managing Trustees provided maternity cover for the Cragg cleaning post at the usual salary level for the cleaning post. 

The Church's subsidiary company, Adel Baptist Congregation Limited,  did not trade in the year so didn't gift any of its net profit to the Church (2020: £Nil). 

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

## **7. Managing Trustee remuneration and benefits** 

|**Managing Trustee remuneration and benefits**||
|---|---|
|Stipends<br>Employer's National Insurance<br>Pension contributions to DC scheme<br>Council tax and travel expenses<br>Total for the year ended 31 December 2021<br>Total for the year ended 31 December 2020|**Rev Dr P**<br>**Rev M**<br>**Morden**<br>**Wright**<br>**£**<br>**£**<br>27,746<br>8,187<br>2,878<br>725<br>4,291<br>770<br>2,494<br>140|
||**37,409**<br>**9,822**|
||52,303<br>35,069|



The Ministers, who were ex-officio members of the Eldership, were remunerated by the Church during the year and the amounts are shown above. Rev Dr P Morden occupies a manse as part of his conditions of employment. Similarly, Rev M Wright occupied a manse as part of his conditions of employment until he left the Church in April 2021. 

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**CORNERSTONE BAPTIST CHURCH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** 

## **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. 

|with benefits, or paid expenses for services provided to the Church.|||
|---|---|---|
|**Staff costs and emoluments**|**2021**|2020|
||**£**|£|
|Salaries and wages|**172,867**<br>|166,897|
|Employer's National Insurance|**9,046**<br>|9,660|
|Pension contributions to DC schemes|**13,100**<br>|13,434|
|Pension deficiency contributions to DB schemes (note 18)|**9,702**<br>|7,150|
||**204,715**<br>|197,141|



## **9. Staff costs and emoluments** 

The average monthly headcount during the year was 10 (2020: 8). During the year the Church employed two Ministers, three Associate Pastors, a Young Families Co-ordinator, an Operations Manager, a Buildings Manager, a Café Manager and three cleaners. No employee received remuneration of more than £60,000 per annum (2020: 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 £156,641 (2020: £172,894). £7,500 (2020: £NIL) was paid to LCCT in respect of a member of staff on secondment, which is included in salaries and wages. 

## **10. Tangible assets** 

|**Cost or valuation**<br>At 1 January 2021<br>Additions in year<br>At 31 December 2021<br>**Depreciation**<br>At 1 January 2021<br>Depreciation charge for the year<br>At 31 December 2021<br>**Net book value**<br>At 1 January 2021<br>At 31 December 2021|**Freehold**<br>**Land and**<br>**Buildings**<br>**CTI/AV**<br>**Equipment**<br>**Total**<br>**£**<br>**£**<br>**£**<br>**1,347,570**<br>**-**<br>**1,347,570**<br>**-**<br>**12,852**<br>**12,852**|
|---|---|
||**1,347,570**<br>**12,852**<br>**1,360,422**|
||**-**<br>**-**<br>**-**<br>**-**<br>**1,499**<br>**1,499**|
||**-**<br>**1,499**<br>**1,499**|
||**1,347,570**<br>**-**<br>**1,347,570**|
||**1,347,570**<br>**11,353**<br>**1,358,923**|



Freehold land and buildings comprises 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. 

CTI/AV Equipment comprises the cost of all equipment purchases with a unit value in excess of £5,000 or with a significant expected life. 

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**CORNERSTONE BAPTIST CHURCH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** 

|**11.**<br>**Fixed Asset Investment**<br>Subsidiary company<br>Adel Baptist Congregation Limited|**2021**<br>2020<br>**£**<br>£<br>3<br>3|
|---|---|
||3<br>3|



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 trafe in October 2018 and is in the process of being removed from the Companies House Register. 

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 summarised as follows: 

|Income<br>Expenditure<br>(Loss) for the year<br>Total net assets and shareholders' funds<br>**12.**<br>**Debtors**<br>Other debtors<br>Prepayments and accrued income<br>**13.**<br>**Short term deposits**<br>CCLA Charities Deposit Fund<br>**14.**<br>**Creditors: amounts falling due within one year**<br>Trade creditors<br>Social security costs and other taxes<br>Other creditors<br>Accruals and deferred income|**2021**<br>2020<br>**£**<br>£<br>**-**<br>**-**<br>**-**<br>**211**|
|---|---|
||**-**<br>**(211)**|
||**3**<br>**3**|
||**2021**<br>2020<br>**£**<br>£<br>**9,305**<br>8,527<br>**5,913**<br>7,383|
||**15,218**<br>15,910|
||**2021**<br>2020<br>**£**<br>£<br>**-**<br>75,422|
||**-**<br>75,422|
||**2021**<br>2020<br>**£**<br>£<br>**1,909**<br>8,934<br>**3,274**<br>3,385<br>**-**<br>80<br>**5,640**<br>4,609|
||**10,823**<br>17,008|



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**CORNERSTONE BAPTIST CHURCH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** 

## **15. Commitments under operating leases** 

|**Commitments under operating leases**||
|---|---|
|Total minimum lease payments under non-cancellable<br>operating leases fall due as follows:<br>Other leases - within one year<br>Other leases - within two to five years|**2021**<br>2020<br>**£**<br>£<br>469<br>1,023<br>-<br>1,275|
||**469**<br>2,298|



## **16. Movement in funds during the year** 

|**Current year**<br>**Restricted funds**<br>Cragg Hill drop-in<br>Listed Places of Worship Grant<br>Scheme<br>South Africa Fundraising<br>**Unrestricted Funds**<br>General<br>Designated funds:<br>Property Fund<br>**Total Funds**|**Transfers**<br>**Balance**<br>**between**<br>**Balance**<br>**1 Jan 2021**<br>**Income**<br>**Expenditure**<br>**funds**<br>**31 Dec 2021**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>674<br>-<br>(69)<br>-<br>**605**<br>-<br>-<br>-<br>-<br>**-**<br>1,054<br>-<br>-<br>-<br>**1,054**|
|---|---|
||1,728<br>-<br>(69)<br>**-**<br>**1,659**|
||187,404<br>323,860<br>(337,485)<br>-<br>**173,779**<br>1,347,570<br>-<br>-<br>-<br>**1,347,570**|
||1,534,974<br>323,860<br>(337,485)<br>-<br>**1,521,349**|
|||
||1,536,702<br>323,860<br>(337,554)<br>-<br>**1,523,008**|



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## **CORNERSTONE BAPTIST CHURCH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** 

## **Movement in funds during the year (continued)** 

|**Previous year**<br>**Restricted funds**<br>Cragg Hill drop-in<br>Listed Places of Worship Grant<br>Scheme<br>South Africa Fundraising<br>**Unrestricted Funds**<br>General<br>Designated funds:<br>Property Fund<br>**Total Funds**<br>**Purpose of Restricted Funds**<br>Cragg Hill Drop-In<br>South Africa Fundraising|**Transfers**<br>**Balance**<br>**between**<br>**Balance**<br>**1 Jan 2020**<br>**Income**<br>**Expenditure**<br>**funds**<br>**31 Dec 2020**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>674<br>-<br>-<br>-<br>**674**<br>-<br>1,559<br>(1,559)<br>-<br>**-**<br>331<br>723<br>-<br>-<br>**1,054**|
|---|---|
||1,005<br>2,282<br>(1,559)<br>-<br>**1,728**|
||168,149<br>384,981<br>(358,575)<br>(7,151)<br>**187,404**<br>1,340,419<br>-<br>-<br>7,151<br>**1,347,570**|
||1,508,568<br>384,981<br>(358,575)<br>-<br>**1,534,974**|
|||
||1,509,573<br>387,263<br>(360,134)<br>-<br>**1,536,702**|
||For the benefit of the Drop-In activities at the Cragg Hill site.<br>Raising funds to support mission trips to Sethani, South Africa|



**Purpose of Designated Fund** Property Fund 

This represents the holding value of the Church properties. 

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**CORNERSTONE BAPTIST CHURCH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** 

## **17. Analysis of net assets between funds at the year end** 

|**Current year**<br>**Analysis of net assets between funds**<br>Tangible fixed assets<br>Investments<br>Net current assets<br>**Total net assets**<br>**Previous year**<br>**Analysis of net assets between funds**<br>Tangible fixed assets<br>Investments<br>Net current assets<br>**Total net assets**|**Unrestricted Funds**<br>**Restricted**<br>**Total**<br>**General**<br>**Designated**<br>**Funds**<br>**Funds**<br>**£**<br>**£**<br>**£**<br>**£**<br>-<br>1,358,923<br>-<br>**1,358,923**<br>3<br>-<br>-<br>**3**<br>162,423<br>-<br>1,659<br>**164,082**|
|---|---|
||162,426<br>1,358,923<br>1,659<br>**1,523,008**|
||**Unrestricted Funds**<br>**Restricted**<br>**Total**<br>**General**<br>**Designated**<br>**Funds**<br>**Funds**<br>**£**<br>**£**<br>**£**<br>**£**<br>-<br>1,347,570<br>-<br>**1,347,570**<br>3<br>-<br>-<br>**3**<br>187,401<br>-<br>1,728<br>**189,129**|
||187,404<br>1,347,570<br>1,728<br>**1,536,702**|



## **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. 

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**CORNERSTONE BAPTIST CHURCH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** 

## **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 £298 million, whilst the level of assets needed to pay benefits was £316 million, giving a deficit of £18 million (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, there is no recovery plan at individual church level. 

The key financial assumptions underlying the valuation were as follows: 

|recovery plan at individual church level.<br>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 Penionable Income Increase Adjustment (above CPI)|0.50|
|Pre-retirement assumed investment returns (gilt yield plus 1.75%|2.95|
|p.a.)||
|Post retirement assumed investment returns (including benefits matched by the insurance|1.70|
|policy) (gilt yield plus 0.5% p.a.)||
|Minimum Pensionable Income increases (CPI plus|3.20|
|0.5%)||
|Deferred pension increases (based on RPI)||
|Pre April 2009|3.20|
|Post April 2009|2.50|
|Pension increases based on CPI with an annual floor of 0% and annual cap of|2.70|
|5%||



Mortality is assumed in accordance with 80% of the S3NA standard mortality table. Future improvements projected from 2013 in line with the "CMI 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. 

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**CORNERSTONE BAPTIST CHURCH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** 

## **Pensions (continued)** 

## **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**<br>DC contributions for<br>ministers<br>DC contributions for staff<br>DB deficit payments|**2021**<br>2020<br>**£**<br>£<br>**5,060**<br>7,752<br>**8,040**<br>5,682<br>**9,702**<br>7,150|
|---|---|
||**22,802**<br>22,316|



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 2021, of £117,700 (2020: £180,000). 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**<br>**Grants to individuals**<br>Gnanakan, Dorothy & Chris<br>Partnership funding<br>Young, Alison<br>Support in Christian training<br>**Total grants to individuals**|**2021**<br>2020<br>**£**<br>£<br>**-**<br>4,300<br>165|
|---|---|
||**165**<br>4,300|



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**CORNERSTONE BAPTIST CHURCH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** 

## **Donations made during the year (continued)** 

|**Purpose of donation**<br>**Grants to institutions**<br>BMS World Mission<br>Support of worldwide mission activities<br>CARE<br>Support to Christian poverty action charity<br>Fellowship Fund<br>Available for use at ministers' discretion<br>Fusion<br>Student mentoring and support<br>Home for Good<br>Promoting fostering and adoption<br>Home Mission Fund<br>Support of national Baptist activities<br>Horsforth Churches Together<br>Local ecumenical activities<br>International Students Club<br>Mission work with international students<br>LCCT<br>Support for the work of Duncan Stow<br>Leeds Arts Uni CU<br>Work with students<br>Leeds Beckett Uni CU<br>Work with students<br>Leeds College of Music CU<br>Work with students<br>Leeds Faith in Schools<br>Support for local schools’ work<br>Leeds School of Theology<br>Support for Leeds School of Theology<br>Leeds University CU<br>Work with students<br>OMF<br>Mission work in Japan (Levi Booth)<br>Other<br>Children's Christmas gifts<br>St George's Crypt<br>Work with Leeds homeless<br>Salvation Army<br>Work in Bramley with Connect<br>Scripture Union<br>Children’s mission work<br>SIM<br>Mission work in Chad<br>Teach Beyond<br>Work with missionary families<br>TLG<br>Work with vulnerable children<br>Transformations Leeds<br>Mission work with international students<br>UCCF<br>Work with students<br>**Total grants to institutions**<br>**Total donations**|**2021**<br>2020<br>**£**<br>£<br>6,120<br>6,000<br>**-**<br>200<br>467<br>1,791<br>150<br>150<br>16<br>-<br>6,120<br>6,000<br>200<br>400<br>300<br>300<br>3,000<br>3,000<br>**-**<br>125<br>**-**<br>150<br>**-**<br>125<br>3,540<br>3,540<br>1,000<br>-<br>100<br>150<br>6,000<br>6,000<br>28<br>-<br>3<br>-<br>3,000<br>3,000<br>**-**<br>50<br>6,000<br>6,000<br>6,000<br>6,000<br>**-**<br>500<br>360<br>360<br>**-**<br>400|
|---|---|
||**42,404**<br>44,241|
||**42,569**<br>48,541|



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