Annual Report 2020 - 2021
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Annual Report for 2020-21
Moortown Baptist Church
1. Statutory Information
Registered Address
204 King Lane, LEEDS, LS17 6AA. Charity Registration Number: 1128960
Trustees
Revd Graham Brownlee (Minister – until April 2021) Mr Peter Chukwenuweniwe (Appointed May 2017 – until January 2021) Dr Patrick Colling (Appointed March 2021) Mr Nathan Dring (Appointed March 2021) Mr Geoff Fennell (Appointed March 2021) Mr Michael Grayson (Appointed June 2019 – until March 2021) Mrs Julia Hyliger (Appointed February 2018 – until January 2021) Dr Phil Laws (appointed May 2018 – until March 2021)
Ms Susie Newhall (Appointed February 2018 – until January 2021) Ms Helen Pemberton (Appointed May 2017 – until March 2021) Mr Ian Richardson (Appointed June 2015 – until May 2021) Mrs Karen Ross (Appointed March 2021) Revd Shona Shaw (Minister – until April 2021) Mr John Sherbourne (Appointed March 2021) Mrs Bela Singh (Appointed March 2021) Mr Paul Smith (Appointed May 2018 – until March 2021)
Dr John Sturges (Appointed May 2017 – until March 2021)
Property Trustees
The Baptist Union Corporation Limited / The Yorkshire Baptist Association (Incorporated) Baptist House 129 Broadway DIDCOT Oxfordshire OX11 8RT
Bankers
Yorkshire Bank plc Yorkshire Baptist Association Trust Fund
Independent Examiner
Wyatt & Co Chartered Accountants, 125 Main St, Garforth, Leeds, LS25 1AF
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2. Annual Report for 2020/21
The trustees present their Annual Report and financial statements for the year to 31[st] March 2021.
3. Charitable Object
The church is governed by a Constitution which states that the principal purpose of the Church is the advancement of the Christian faith according to the principles of the Baptist denomination. The Church may also advance education and carry out other charitable purposes in the United Kingdom and/or other parts of the world. The Church occupies premises which are held by the Baptist Union Corporation Ltd, on Trust which are entirely compatible with the above object.
4. Public benefit
When reviewing the aims and objectives of the charity, and in planning future activities, the trustees 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.
5. Organisation Structure and Decision making processes
Members of the Church are accepted in accordance with the Constitution which requires them to have been baptised on their profession of faith in Jesus Christ, or (at the discretion of the Church Members meeting) on their own public profession of faith in Jesus Christ.
Governance of a local Baptist church is achieved through the Church Members meeting together to consider matters related to the life and work of the Church. Local Baptist churches nevertheless appoint individuals to responsibilities within the church, so its mission can be advanced through the effective and deliberate sharing of tasks, within a framework of mutual accountability.
In accordance with the Constitution, Deacons have been appointed by the Church Members meeting, who together with the co-Ministers (also appointed by the Church Members meeting) form the church Leadership Team and share the responsibility for the church’s mission and pastoral care. A total of fifteen individuals have served as deacons during the course of the year, six of whom were appointed towards the end of March 2021. The Deacons, Ministers and other members of the Leadership Team are together the Charity Trustees of the church, responsible for governance and administration of the charity. All Church Members are encouraged to take an appropriate part in the spiritual and practical tasks involved in the furtherance of the charitable objective.
The Church Members meeting usually takes place no less than six times per year and is where matters affecting the life and activities of the Church are discussed in the context of worship, including prayer and the reading of Scripture. The intention is that, so far as is possible, practical issues are not perceived as being separate from the spiritual aspects of the Church. Relevant matters may be raised to the Church Members Meeting by the Leadership Team or at the request of Church Members. The Church Members meeting is where overall policy and key decisions of the church are determined. Although the Constitution permits decisions to be made by appropriate
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majorities at Church Members meetings, the Church generally seeks to work by consensus where possible.
6. The impact of Covid 19
The spread of Covid 19 in early 2020 and the consequent lockdowns and restrictions on many activities and on how people could meet together had a significant impact on how the church functioned. The church implemented virtual groups and services, a network and team for support and pastoral care, links with the local community hub to provide food parcels and medicine collections. The programmes offered for seniors, young people and children moved to virtual working from the end of March 2020. Moortots and Oasis went online, young people connected through weekly virtual groups and the Lunch Club offered weekly calls and occasional mailouts. For Sunday services our focus at the beginning of the year was ‘Church at Home’ a Facebook live stream and Youtube playlist supported by a tech and organization team of volunteers and staff. The first such service reached over 2,000 people. A ‘families at Moortown’ stream of programmes and live streamed events was put in place and developed from this time to connect with families previously attending our Oasis and Moortots and MBC church.
Further information on activities is given in the following paragraphs.
7. Resignation of Ministers and Diaconate and Appointment of new Diaconate
Towards the end of the financial year, the entire diaconate resigned leading to the appointment of an entirely new interim diaconate without the usual staged handover and both the ministers handed in their notice.
In the period leading up to that, the two ministers had submitted grievances against a small number of members and, following legal advice, settlement payment to the ministers was agreed by church members when the ministers resigned. A Serious Incident Report was submitted to the Charity Commission although they did not respond.
8. Objectives and Activities
“In planning the activities the Trustees have applied the guidance on public benefit issued by the Charity Commission in December 2008.”
In order to achieve the principal objective which is set out above, the Church provides a variety of activities both to its membership and to the wider community generally. In loving God and living generously, our aim is to show the love of Jesus Christ in both word and deed and to bring people into a closer relationship with Him as living Lord, by following Christ.
– Our shared life Christian worship and discipleship
Moortown Baptist Church (MBC) is an increasingly diverse community of Christians, drawn from neighbourhoods across North and North East Leeds. We seek to apply a vision to Love God, Live Generously and Follow Christ as a church together and in whatever context we find ourselves in our everyday lives. When we gather we seek to provoke Christian living, offer hospitality and equip our members.
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At the heart of this are our Sunday services, in which we share teaching, sung worship, prayer and communion. As described below, we continued our work during the year among seniors, children and young people, home groups and other groups, although lockdown significantly affected how we worked.
In the past year:
Because of lockdown, Sunday services could not continue to be held in the building. Instead, services were streamed online with live streaming each Sunday on facebook as the Ministers and others welcomed people with a mixture of greetings, prayer etc. That was followed each week by pre-recorded material on Youtube prepared by the Ministers, the church’s worship team and other members, the material including sermons, worship, Bible readings and prayers. Maintaining online services and contact in this way was greatly appreciated and many signed in to share in this way.
Most home groups continued to meet on a regular basis virtually over zoom - offering support & friendship as well as some bible teaching to existing members of those groups. Some home groups also occasionally met in person outside under the “rule of 6” when this was allowed under Covid regulations.
Our two co-ministers continued until their departure from the church to offer leadership, care and ministry to support the spiritual life of the church. They worked closely alongside the deacons (Trustees), staff and many volunteers.
Outward Focus
Our local and citywide connections
We are committed to equipping one another in our daily living and work. As a church we partner with others to achieve common goals, through action, campaigning, prayer and financial support. We encourage individuals to get involved with community groups and charities and continue to host open contact groups such as a Monday morning Beacon Cafe. We also offer counselling, which is open to all, through Pathways Christian Counselling.
As a church we have continued our support for Baptists Together Home Mission. Additionally, we continued to support a range of groups including Leeds and Moortown Furniture Store, Grace Gospel Church and Leeds Citizens.
MBC is a member of Leeds Citizens, which is a network of organisations campaigning for justice. During the year we participated in the citywide leadership of Citizens.
The Beacon Wellbeing group, set up to offer free refreshments and a safe space to talk, with opportunity for exploring mindfulness and sharing in craft activities and with a short time of prayer at the end, could not meet because of lockdown.
To help this situation the Church’s pastoral members tried to keep in touch with individuals, who normally attended the groups, either by phone or in person (outside homes).
Contact with the individuals was shared amongst the team and members volunteered to keep an eye on those on their lists. The team prayed for individuals whilst being conscious of confidentiality issues.
Many were facing isolation and welcomed the support.
Some people were phoned daily, others weekly to check all was well.
Some shopping was done by younger people for the older folks and prescriptions collected.
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The craft group became a zoom weekly meeting and was welcomed by all. Members knitted or crocheted whilst they chatted.
Throughout the year Pathways Christian Counselling offered telephone or online counselling to all in the community through its team of trained counsellors and students.
The church maintained its partnership with the Leeds and Moortown Furniture Store through encouraging donations of furniture. In addition, several church members were closely involved either through working for the Store or as trustees.
As the church building was closed, food normally given out weekly from “The Lords Pantry” was taken to the local Foodbank for central distribution.
We were aware that this caused hardships for some but they were directed to the local foodbank. In October we had a drive-through Carpark Harvest which saw the church donate an enormous amount of food, toiletries and cleaning materials to Leeds North and West Food Bank and as 2020 ended a car park drive through was organised called Tin and a Toy. This resulted in a large amount of food which was donated again to the central foodbank whilst Toys were taken to the local area charities.
Our international links
BMS World Mission
Since the church was unable to meet face to face, our interest and support had to be maintained remotely. A good number of the congregation received 3 editions of the Engage magazine by post and some received prayer letters from our Partner mission workers in France and Northern Chad. The church’s links with our partners in Chad were strengthened. They were stuck in the UK but wanted desperately to get back to their calling in Chad.
The latter came regularly and were added to the online Newsletter and one video from our partners in France was used in the weekly online service play list. Occasional articles by the church BMS Rep were also written for the Newsletter during the year. In these ways we potentially reached a wider audience than usual. The church is very grateful for the faithful work that went into producing the Church Newsletter - a vital form of communication in the pandemic with both home and overseas partners.
The Church’s tithed giving to BMS was maintained and together with one - off donations including some for a Chad appeal, led to the highest annual total raised ever. Something we are very grateful for in this year of no face – to - face services or meetings in the church.
Far East and Chad
During the year the impact on the overseas workers we are in contact with was considerable but contact was maintained in different ways. One of our partners sent us a recorded message about the work she does in the Far East. During the year she stayed in England and attempted to work where possible despite the huge time zone difference.
Our church rep for MAF kept in touch with MAF links and received many prayer diaries listing the difficulties experienced by pilots and their families working overseas with many having to make
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difficult decisions around whether they should continue to stay in the countries they felt God had called them to serve. For some, parts of their families elected to make strategic retreats during the lockdowns to their home countries. We were aware of several families where one member remained at their post (so to speak) while the others went back home. This caused distress on another scale from that experienced here in England. It has not been easy to keep the whole church informed of all those concerns but many individual members quietly carried on their loving support (in prayer and materially) for all those for whom we have made commitments to support over the years.
Work with Asylum Seekers in UK
One of our members has continued to pastor the Ethiopian church and minister to the needs of asylum seekers within the restrictions of covid. The restrictions considerably restricted all face to face activities throughout the year but where possible the Ethiopian church continues to reach out to asylum seekers with God’s love and supply practical and spiritual support.
Romania
MBC has continued to maintain its strong links with the friends in Romania that was formed some 28 years ago.
The two young pastors who spent a year at MBC ten years ago, moved from their small village to live in the nearby larger town of Oderheiu in the region of Hargita to the south of the country. They now both work in the Reformed Church as two of the three pastors that serve a large congregation of nearly 1,000. Although in lockdown, as we were, they continued to do services outside in their carpark and also streamed online. We were able to watch them minister weekly to their flock.
We were able to give advice about communion as they were unable to share a single cup. We gave them links to a company who supplied small disposable wine/bread cups. Cost unfortunately became the issue and we have been working to raise money to help them. Unfortunately both pastors caught Covid and had extended time off. We kept in touch by video with them over the period and also gained news of their parents.
Money was sent to distribute to needy people. We received information on how it was spent with their thanks.
The Pastor who was our original link in Romania retired during the lockdown. We were able to view her last service and see the gifts she received. The stain glass cross we sent her now hangs in her house window. She still prays for us all daily as do many of the people we got to know on our visits over the years. We pray for them too.
In the city of Cluj Napoca the two churches we have links with had similar problems in lockdown and services went on line. We were able to keep discussions open by facetiming individuals and writing to them. We continued to send out money used to support their young people and to help pay for a gypsy Pastor. We received thanks for this and their continued prayers.
It was heartening to see that everywhere people were turning to the churches for comfort in this difficult time. We all shared similar experiences and many felt isolated. As a consequence many people turned to prayer and the churches have had to respond in new and very different ways.
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We look forward to visiting again when we can.
WEC International
Two of our members work with Radio Worldwide, part of WEC International, and we have continued to support them, including through the Church’s tithed giving.
Children, Families & Young People
The year has seen a huge amount of change. Staff met for their last ‘in person’ meeting in March 2020 and from that moment everything needed to take place out of the church building when the first lockdown began. Staff contacted their teams of volunteers and plans were put in place to keep in touch and continue ministry in different ways. All parents/carers of children and youth groups as well as their volunteers had the option to join a what’s app group and these were used to share ideas and resources, pray, plan and hold virtual events. Parents and children were contacted by staff and volunteers on the phone and groups and services went online on zoom, YouTube and Facebook. As restrictions allowed, staff and volunteers were involved in gift and goody bag drop offs as well as garden and park gatherings and 1:1’s on doorsteps and walks.
There were significant staff and leadership changes that affected MBC alongside the pandemic, including the departure of the Pioneer Youth Lead in May 2020. Administration support was furloughed following a period of sick leave and both ministers also took a period of sick leave.
Services and sessions for the under 5’s, children and youth continued, led by the volunteers and the Children and Families lead. Themes were chosen that were perceived to be relevant to the times, as well as being what people perceived God was saying. These included, the life of Jesus, Paul’s letter to the Colossians, Moses in the wilderness and the fruits of the spirit. As restrictions altered, further creative solutions were found to develop discipleship and fellowship including a harvest festival in a carpark, discovery trails around the local woods, a live broadcast of fireworks on Bonfire night, meal drop off’s for new mum’s, virtual Christingle and a Remembrance week outdoor art installation.
The website and use of social media was incredibly important during this time in order to keep people informed and involved. Use of social media and the broadcasting of services on YouTube raised training needs but also led to a sharing of new expertise. Over the year a significant part of the role of the Children and Families Lead was to look for opportunities for intergenerational opportunities as families were mostly gathered within the home at the same time and not scattered across activities or age groups anymore. This also helped with working across the youth and adult community at the same time.
Communication with the remaining members of staff; the Seniors worker and Administrator, as well as with the pastoral lead became even more necessary in order to share information and encourage each other at a challenging time. By the end of the year, the ministers and most of the leadership team had left the church. Services and outreach continued with the support of the new interim leadership team. This time was characterised by building new relationships with the leadership team, continuing the work of the church with families and volunteers but also providing space for people to talk about the last year and to find a way forward.
Seniors
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Our Seniors Worker worked alongside a team of 20 volunteers who supported her in her work with seniors.
For the year 2020/21 Lunchclub, the usual main area of work, were unable to meet because of Covid 19. There are 30 Lunchclub members aged from their 60’s to 90’s who normally attend.
However, the team continued to support the seniors through other means. Members of the team regularly telephoned members of the Lunchclub, who enjoyed these telephone conversations throughout the year. Usually, our Seniors Worker and volunteers made these calls twice a week in order to stay in contact, check that all was well and be able to respond to any problems.
In addition, there were monthly mailouts during the year to both Lunchclub members and other seniors within the church. These included quizzes, activities, information about covid and copies of Shine magazine.
There were also several doorstep visits, deliveries of cakes and treats and Christmas crafts and hampers to seniors and a few of our most isolated members received more regular doorstep visits and support. These were all done in a covid secure way.
We continued to signpost to or liaise with other organisations as appropriate to help people’s particular needs and requests.
The Management Committee and volunteer team continued to meet occasionally during the year either on Zoom or in a covid secure environment.
Pastoral Care
Our church is committed to the pastoral care of its members and those connected with it, and three years ago we established a Pastoral Care Team to develop this essential ministry, under the leadership and guidance of the church’s Leadership. The members of the team were trained by attending an Association of Christian Counsellors Training Course for Pastoral Care and during this period we were fortunate to have 12 members on the team, one of whom was Pastoral Care Lead. As a church and a team, we were committed to offering quality pastoral care even through the challenging lockdown periods. The work that the team engage in is carried out discretely, carefully and behind the scenes with an emphasis on confidentiality as set out in our Statement of Pastoral Care.
During the lockdowns the team worked extremely hard to maintain contact, connection, and communication with over 80 people at MBC, and those connected with our fellowship. These people were identified as those who were more vulnerable, were perhaps more senior in years, and were in addition to those who were contacted by MBC’s Seniors Worker and her Team. We were especially aware of people’s mental wellbeing during this time because of the isolation caused by Covid restrictions. We were also able to temporarily supplement the team with some additional volunteers for this challenging time.
Maintaining connection was an absolute priority during this time. Weekly telephone calls were established, the hand delivery of letters, magazines and ‘thinking of you’ cards, food, meals, small gifts, and the collection of shopping and essential items such as medicines regularly took place. Over the phone prayers were sometimes appropriate. There were doorstep home visits, walks with an individual at a local park according to the safety guidelines, and dropping off essential supplies
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for those who were shielding others or who were themselves shielding. Some home visits, and a few hospital and care home visits were possible, where this was done at the request of a family member and when restrictions once again allowed this.
MBC is blessed with a Pastoral Care Team who have faithfully visited, given practical help, emergency help, support and prayer for those in our fellowship throughout this period.
Team contact and support was enhanced via a Monday Thoughts and Prayers email sent out each week by the Pastoral Care Lead, to encourage the team, and to maintain essential communication. The team was also committed to praying for individuals and families and a Confidential WhatsApp Prayer Link was established where specific prayer requests could be shared. Any items for prayer by the team were held in the strictest confidence and were given only on the explicit instruction of the individuals themselves before being shared.
Health and Safety / Facilities / Data Protection
Our Health and Safety Policy and Practice was monitored by the Health & Safety Deacon working alongside a dedicated Health & Safety team supported by our church administrator.
The church has an agreed GDPR policy and privacy statement and is registered with the Information Commissioner’s Office.
Leadership Team and Church
During the year the Leadership Team, while having to ensure the continuing ministry and mission of the church, were also faced with having to manage two major issues. Firstly, the impact of Covid 19 and secondly the situation described in paragraph 6 above.
As previously mentioned, a new diaconate was appointed towards the very end of the year. The six people elected were appointed initially for a period of six months with a view to getting the church once more on a sound footing before handing over to a longer term diaconate. They would be working alongside the Childrens and Families Lead to this aim.
Online and electronic communications
Throughout 2020/21 much of MBC’s work transferred online. At the first lockdown a Covid 19 “notice board” was created on the Church’s website’s Homepage. At its height this notice board contained literally dozens of names, addresses and contact details of individuals and
voluntary/statutory organisations offering help and support locally, regionally and nationally. This was regularly refreshed with content ranging from NHS and government rules and regulations to supermarket opening hours and warnings of some highly sophisticated scams.
Alongside the Church’s website (visited in 2020/21 more than twice as many times as in any previous year) the Church’s Social Media platform mirrored much of the website’s content. On lockdown, Sunday services and children’s programmes were moved online, as previously described. Likewise, information regarding logging in, viewing and commenting on MBC’s Sunday Facebook/YouTube programme was readily available on both platforms.
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Throughout 2020/21 the church’s online E-Newsletter also grew in popularity. This not only gave recipients access to current stories but also to the content that was saved on the MBC website.
The Pandemic and Future Plans
Although there are indications that churches will be allowed to meet again inside the buildings there are no signs that the Covid pandemic is coming to a close. With that in mind Moortown Baptist Church is continuing to explore ways of keeping members safe including continuing infection control measures (such as face mask wearing, signing into services with contact details, hand sanitisation, some social distancing) as well as continuing to offer online services for those too vulnerable to be able to join us in person. We will continue to offer pastoral support via our dedicated pastoral team, a vital service in times of increased social isolation. We may need to adapt how we offer outreach depending on national rules at any time.
The other main focus is on rebuilding leadership and focus for Moortown Baptist Church. Towards the end of the financial year almost the entire leadership team resigned leading to the appointment of an entirely new leadership team without the usual staged handover and both the ministers handed in their notice. MBC will finalize the settlement between ourselves and our former ministers as a result of their decision to end their ministries with us prematurely. We are not looking to appoint a new minister in the foreseeable future.
At the same time the new leadership team will seek to clarify the members who remain within the fellowship and focus on restoring right relationships to build a community centred on Christ. Part of this will be agreeing a Code of Conduct to set out how we relate to each other and examining our constitution to better deal with any future disagreements. Much of this will be undertaken by a small group of members who will then present their recommendations to the church meeting. We are offering safeguarding level 1 training to all members that covers how we relate to each other, to help restore relationships.
We will continue to be outward looking by offering outreach to our local community (Beacon cafe, Seniors), across our wider city (Leeds Citizens, Grace Gospel Church, Leeds and Moortown Furniture store) and supporting mission across the world (for example BMS and WEC). In short we aim to continue to be Christ to our neighbours both near and far.
9. Financial Review
The Church continues to raise the funds needed to carry out its activities primarily through voluntary giving from within its own membership and congregation, from our charitable activities and from tax refunds through the Gift Aid scheme.
The year saw a reduction in income for the church although this was partly offset by a reduction in expenditure. Despite these fluctuations the church was able to make grants of £23,787 to individuals and other organisations. An actuarial revaluation of its pension fund liabilities reduced those liabilities. However, the settlement payments due to the two ministers and associated costs referred to in paragraph 6 above and as shown in the financial statements meant that there was an overall negative net movement in funds to the extent of £53,471.
The financial results for the year, together with a summary of the accounting policies adopted, are set out in the accompanying financial statements.
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The trustees will be continuing to report the ongoing financial situation to the whole church including the need to replenish reserves.
10. Reserves
The Trustees have established a Reserves Policy to hold six months worth of running coats. However, the settlement payments to the ministers as agreed by the church members towards the end of the year, as shown in the financial statements, have significantly reduced the church’s reserves.
Nevertheless, the trustees are satisfied that they have sufficient cash reserves at the Balance Sheet date together with anticipated ongoing income and previously designated reserves but which the church meeting in February 2021 agreed should be used to fund the ministers’ settlements, to enable the church to function effectively in the coming year. The Trustees have made an assessment of the major risks facing the church, and are satisfied that there are policies and plans in place to minimise these risks.
11. Trustees’ Responsibilities
Charity law requires us as Trustees to prepare financial statements for each accounting year which give a true and fair view of the state of the charity and of its income and expenditure for the year. We are required to:
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Select suitable accounting policies and apply them consistently.
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Make judgements and estimates that are reasonable and prudent.
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State whether the applicable accounting standards have been followed, subject to any material departures disclosed and explained in the accounts.
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Prepare the financial statements on a going concern basis unless it is inappropriate to presume that the charity will continue in business.
We are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and enable us to ensure that the financial statements comply with the Charities Act 1993.
We also have a responsibility to safeguard the assets of the charity and to take reasonable steps to prevent fraud or any other irregularities.
12. Approval
This report was approved by the Trustees at their meeting on 23[rd] August 2022 and signed on their behalf by:
Geoff Fennell (Treasurer and Trustee)
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13/09/2022
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John Sherbourne (Deacon and Trustee)
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08/09/2022
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Charity Registration Number: 1128960
Moortown Baptist Church Annual Accounts Year Ended 31 March 2021
| Contents: | Page |
|---|---|
| Independent Examiner’s Report | 2 |
| Statement of Financial Activities | 3 |
| Balance Sheet | 4 |
| Notes to the Accounts | 5–19 |
Moortown Baptist Church 204 King Lane Leeds LS17 6AA
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Independent Examiner's Report to the Trustees of Moortown Baptist Church
I report to the trustees on my examination of the accounts of Moortown Baptist Church (the Trust) for the year ended 31 March 2021 on pages 3 to 19 following, which have been prepared on the basis of the accounting policies set out on pages 5 and 6.
Responsibilities and basis of report
As the charity trustees of the Trust 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 Trust’s accounts carried out under section 145 of the 2011 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.
The charity's gross income did not exceed £250,000 and I am qualified to undertake the examination.
Independent examiner’s statement
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:
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accounting records were not kept in respect of the Trust as required by section 130 of the Act; or
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the accounts do not accord with those records; or
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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.
Nigel Wyatt B.Sc, FCA Independent Examiner
125 Main Street Garforth Leeds LS25 1AF
31/08/2022
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Statement of Financial Activities for the year ended 31 March 2021
| Notes Income & endowments from: Donations & legacies 5 Charitable activities 6 Investments 7 Other 8 Total Expenditure on: Costs of generating funds Charitable activities 9 Total Net income/(expenditure) Ministers' Settlement & Costs 2,12 Transfer between funds 20 Actuarial revaluation of defined benefit pension scheme liability 22 Net movement in funds Total funds brought forward Total funds carried forward |
General Designated Restricted Endowment Total Funds Funds Funds Funds 2021 £ £ £ £ £ 163,709 13,230 176,939 263 12,532 12,795 388 31 419 5,920 5,920 170,280 31 25,762 - 196,073 - 180,944 25,520 206,464 180,944 - 25,520 - 206,464 (10,664) 31 242 - (10,391) (53,274) - (53,274) 50,788 (50,788) - 10,194 10,194 (2,956) (50,757) 242 - (53,471) 18,642 50,757 3,404 125,191 197,994 15,686 - 3,646 125,191 144,523 |
Total 2020 £ 216,649 20,843 938 - |
|---|---|---|
| 238,430 | ||
| - 252,286 |
||
| 252,286 | ||
| (13,856) 11,854 |
||
| (2,002) 199,996 |
||
| **197,994 ** |
The notes on pages 5 to 19 form an integral part of these accounts.
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Balance Sheet at 31 March 2021
| Note Tangible Fixed Assets 13 Current Assets Debtors 14 Cash at Bank 15 Current Liabilities Creditors falling due within one year 16 Net Current Assets Creditors falling due after one year 17 Net Assets The funds of the charity: General Funds Restricted Funds 19 Designated Funds 20 Endowment Funds 18 Total Funds |
2021 £ £ 125,191 13,559 98,019 111,578 (57,489) 54,089 (34,757) 144,523 15,686 3,646 0 125,191 144,523 |
2020 £ £ 126,750 14,067 116,189 130,256 (9,553) 120,703 (49,459) 197,994 18,642 3,404 50,757 125,191 197,994 |
2020 £ £ 126,750 14,067 116,189 130,256 (9,553) 120,703 (49,459) 197,994 18,642 3,404 50,757 125,191 197,994 |
|---|---|---|---|
| 111,578 (57,489) |
130,256 (9,553) |
||
| 197,994 | |||
| 18,642 3,404 50,757 125,191 |
|||
| 197,994 |
The notes on pages 5 to 19 form an integral part of these accounts.
23/08/2022
These accounts were approved by the Trustees on …………………… 2022 and signed on their behalf by:
Geoff Fennell John Sherbourne --------------------------Treasurer Deacon
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Notes to the Accounts
1. Accounting Policies
Basis of preparation
The accounts have been prepared under the historic cost convention, in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014; and with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2015.
The accounts have been prepared on the going concern basis, as there are no material uncertainties about the charity’s ability to continue. Based on the adequacy of the charity’s reserves as at the balance sheet date, along with their knowledge of the charity’s ability to meet bills, payments and other liabilities as they fall due, the trustees have a reasonable expectation that the charity has sufficient resources to continue in operational existence for the foreseeable future.
The following are the accounting policies which have been applied in dealing with material items:-
Income
All incoming resources are recognised once the charity has entitlement to the resources, it is probable that the resources will be received, and the monetary value of incoming resources can be measured with sufficient reliability.
Donated income and grants receivable are taken into account when received by the charity. Income received in circumstances where a claim for repayment of tax has been or will be made to HM Revenue & Customs is grossed up for the tax recoverable. Any amount of tax reclaimed from HM Revenue & Customs but not yet received is shown within the charity's debtors. Income from donated goods is accounted for on the basis of the value of average donation times no. donations received.
The charity has relied significantly upon volunteers in carrying out its activities during the year. In accordance with paragraph 6.18 of the SORP, the role of volunteers has not been recognised as income from donated services in the accounts.
Investment income is taken into account when receivable and expenditure, including irrecoverable VAT, when incurred by the charity, regardless of when payment is made.
Fund raising and publicity costs
The Church does not make formal appeals for funds and expenditure on these items is therefore not material.
Grants payable
The church makes grants to other organisations whose charitable objects complement its work. Grants payable are taken into account at the earlier of when they are paid or become constructive obligations.
Governance costs
Other than the costs of independent examination of the accounts, direct expenditure on the governance of the church is not material. Most of the management of the church is carried out without charge by volunteers. This intangible cost is not included in the Statement of Financial Activities since there is no measurable cost to the volunteers for their service.
Funds
General funds are donations and other income received or generated for the objects of the charity without specified purpose and are available for purposes as directed by the trustees. Restricted funds are amounts received where the donor has specified the purpose for which they should be used.
5
1. Accounting Policies (continued)
Fixed Assets
The church premises are included in the balance sheet at £125,191 based on a valuation at 1 January 1977.
Furniture and equipment in the church premises is included at the lower of cost and net realisable value. Assets costing less than £500 are not capitalised.
Depreciation
Depreciation has not been charged on the church premises because, in the opinion of the Trustees, the residual value of the asset is not less than the original cost price.
Depreciation on other fixed assets is calculated to write off the cost on a straight-line basis over their expected useful life, at the following rates:
| Computer hardware | 33% |
|---|---|
| Furniture and Equipment: | 20% |
Pension liability
The church accounts were prepared under the accounting standard FRS102 for the first time for the year ended 31 March 2017 following the withdrawal of the Financial Reporting Standard for Smaller Entities. As result of this change the church is required to include on its balance sheet a liability representing its share of the pension deficit relating to the defined benefit section of the Baptist Pension Scheme. The liability shown in the church accounts is based on the Employer Debt that would be due on a cessation event. This figure has been provided by the pension scheme actuaries. As no cessation event is anticipated the liability has been discounted to reflect the time value of money on the assumption it will be paid over the period for which deficit contributions are expected to be paid.
2. Going Concern
It is the view of the Trustees that the church will continue to operate as a going concern (i.e. that the church will be able to continue operating as a charity without threat or intention of liquidation) for at least 12 months from the date these accounts were signed.
Ministers Settlement
Having taken legal advice, and with the approval of Church members, the trustees entered into settlement agreements with the departing ministers. These have been accounted for in full in 2020/21 and have been funded largely by the use of re-allocated designated funds (see also notes 11 and 19).
Pension Liability
As shown in note 19, there are positive net assets, both current and overall, notwithstanding the current and long-term amounts due to the pension scheme. Payment of the full employer debt to the pension scheme would only be triggered by a cessation event, such as the Church still not employing a member of the Baptist Pension Scheme by March 2023. Even if this were the case, the trustees are confident of being able to meet any pension liability within the required legal timeframe.
The Trustees expect the church to be able to continue to meet its obligations to pay deficit contributions to the pension scheme out of net income each year and to meet all other liabilities as they fall due.
3. Independent Examination Costs
Net income for the year is stated after charging £500 (2020; £500) for the costs of independent examination.
4. Government Grants
Central government grants of £5,920 (2020;nil) were received in the year from the Government’s furlough scheme in respect of two staff who were furloughed in accordance with the scheme.
6
5. Income from Donations & Legacies
| General Designated Restricted Endowment Total Funds Funds Funds Funds 2021 £ £ £ £ £ Offerings 136,795 11,730 148,525 Tax Refunds 26,914 1,500 28,414 Totals 163,709 - 13,230 - 176,939 Total by Fund 2020 204,749 - 11,900 - 216,649 6. Income from charitable activities General Designated Restricted Endowment Total Funds Funds Funds Funds 2021 £ £ £ £ £ Youth Work - - Childrens Work - - Toddlers Groups - - Seniors Groups - - Counselling Service - 12,532 12,532 Room Hire 263 263 Totals 263 - 12,532 - 12,795 Total by Fund 2020 7,962 12,881 20,843 |
Total 2020 £ 179,404 37,245 |
|---|---|
| 216,649 | |
| Total 2020 £ 84 656 2,777 - 12,881 4,445 |
|
| 20,843 | |
7
7. Income from Investments
| Bank Interest Interest on Yorkshire Baptist funds Totals Total by Fund 2020 |
General Designated Restricted Endowment Total Funds Funds Funds Funds 2021 £ £ £ £ £ 388 388 31 31 388 31 - - 419 661 277 - - 938 |
Total 2020 £ 661 277 |
|---|---|---|
| 938 | ||
8. Income from other sources
| Furlough Income Totals Total by Fund 2020 |
General Designated Restricted Endowment Total Funds Funds Funds Funds 2021 £ £ £ £ £ 5,920 5,920 5,920 - - - 5,920 - - |
Total 2020 £ - |
|---|---|---|
| - | ||
8
9. Expenditure on Charitable Activities
| Ministry, Fellowship & Outreach Youth Work Childrens & Toddlers Work Seniors Work Counselling Service Totals |
Direct Grant Support Total Activities Funding Costs 2021 (note 11) (note 10) £ £ £ £ 92,624 23,787 28,821 145,232 7,323 1,813 9,136 20,661 5,116 25,777 9,160 2,268 11,428 14,891 - 14,891 144,659 23,787 38,018 206,464 |
Total 2020 £ 178,003 18,515 29,184 10,760 15,825 |
|---|---|---|
| 252,287 |
The counselling service operates largely independently which is why no support costs are allocated there.
Restricted funds included above are:
| Ministry, Fellowship & Outreach Counselling Service Totals 10. Support costs |
Direct Grant Total Activities Funding 2021 (note 10) £ £ £ 5,005 7,983 12,988 12,532 12,532 |
|---|---|
| 17,537 7,983 25,520 |
|
| 10. Support costs | ||
|---|---|---|
| Administrator Printing, Stationery, Telephone Governance Costs Buildings Costs Other Costs Totals Total by Fund 2020 |
General Designated Restricted Endowment Total Funds Funds Funds Funds 2021 £ £ £ £ £ 11,284 11,284 2,000 2,000 8,442 8,442 12,915 12,915 3,377 3,377 38,018 - -- 38,018 44,064 44,064 |
Total 2020 £ 10,793 2,371 840 25,276 4,784 |
| 44,064 | ||
9
11. Grant funding
| Recipient BMS World Mission Christian Aid Christians Against Poverty Citizens UK Crisis at Christmas Counselling Services Grace Gospel Church Kidz Klub Leeds & Moortown Furniture Store Leeds Faith in Schools Leeds Womens Aid MBC Daycare MBC Romania Fund MBC Special Needs Fund Mission Aviation Fellowship Radio Worldwide Simon on the Streets Street Angels Street Pastors Tear Fund Youth For Christ YBA Home Mission Totals Total by fund for 2020 |
General Restricted Designated Endowment Total Funds Funds Funds Funds 2021 £ £ £ £ £ 6,600 4,120 10,720 0 0 0 0 0 3,000 3,000 0 0 0 0 150 150 2,430 2,430 0 0 1,200 763 1,963 0 0 0 0 500 500 5,004 20 5,024 15,804 7,983 0 0 23,787 21,904 12,129 0 0 34,033 |
Total 2020 £ 11,450 609 500 800 533 1,421 3,750 500 500 500 533 0 2,460 887 530 1,700 200 300 300 450 500 5,609 |
|---|---|---|
| 34,033 | ||
The organisations to which grants have been given serve the following purposes:
-
BMS World Mission: a Baptist missionary society that works worldwide to share the Christian faith
-
Christian Aid: an international relief organisation
-
Christians Against Poverty: a charity that helps people who are struggling with debt
-
Citizens UK: organisation that campaigns on social issues
-
Counselling Services: support for a counselling service based at the church
-
Crisis at Christmas: a charity providing particular support for people struggling over Christmas
-
Grace Gospel Church: a Leeds church that works mainly with Ethiopian immigrants and refugees
-
Kidz Klub: sharing the Christian faith with children throughout Leeds
-
Leeds & Moortown Furniture Store: a charity that provides donated furniture free of charge to those who could not afford to buy it
-
Leeds Faith in Schools: an organisation that works to share the Christian faith in Leeds schools
-
Leeds Womens Aid: helps protect women and families suffering from domestic violence and abuse
-
MBC Daycare – a lunchclub for seniors held at the church
-
MBC Romania Fund: providing support to two partner churches in Romania
-
MBC Special Needs: providing one-off financial grants to people with emergency needs
-
Missionary Aviation Fellowship: an organisation that flies missionaries and relief into remote areas throughout the world that would not otherwise be accessible
-
Radio Worldwide: a missionary organisation that shares the Christian faith through radio and media
-
Simon on the Streets: working on the streets to support the homeless and vulnerable
10
-
Street Angels: working on the streets to support homeless people
-
Street Pastors: helping people on the streets who are faced with crime and safety issues
-
Tear Fund: an international relief organisation
-
Youth For Christ: works to share the Christian faith with young people throughout the country
-
YBA Home Mission: Association of Yorkshire Baptist churches that supports churches in carrying out their work including with new initiatives
11
12. Staff costs and Trustees expenses
| All Staff Salaries Social Security Costs Pension Costs - Current Pension costs - deficit contributions Settlement costs (notes 2 and 20) Settlement costs - Ex-gratia payments (notes 2 and 20) Other Costs Totals The average number of employees during the year was: The full time equivalent number of staff was: |
2021 2020 £ £ 87,941 101,542 1,667 3,712 5,810 6,385 4,406 5,746 44,052 - 7,542 - 29,618 32,065 181,036 149,450 6 8 3.8 5 |
|---|---|
Two employees received emoluments between £60,000 and £70,000 during the year (2020 none).
The Minister, G Brownlee, and the Second Minister, S Shaw, who are defined in charity law as Trustees, received salary during the year for their employed roles as Ministers, as allowed by the Church’s constitution and also received settlement costs. The total amount paid to them is shown below. None of the Deacons who served the church was paid in an employment capacity. No sums were reimbursed to the Trustees for their work as Trustees (2020 none).
| Salaries Social Security Costs Pension Costs Settlement costs Settlement costs - Ex-gratia payments Other Costs Totals |
Minister 2021 2020 £ £ 22,083 23,588 1,936 2,064 1,592 1,634 22,027 - 3,771 - 14,820 15,942 66,230 43,229 |
Second Minister 2021 2020 £ £ 22,083 23,588 1,936 2,064 1,592 1,634 22,025 - 3,771 - 14,798 16,122 |
|---|---|---|
| 66,206 43,409 |
Ex gratia payments to the ministers were included in the legal settlement agreements to cover the amount of statutory deductions from salaries paid as part of the settlement under the agreements.
The total remuneration of employees considered key management personnel is £132,436 (2020; £86,638).
The church pays pension contributions for various employees into defined contribution arrangements. Further information about the Baptist pension scheme is given in note 22.
Gifts by trustees
The total value of monetary gifts given by trustees (and their connected persons), to the church during the year ended 31 March 2021 is £21,410 (2020: £24,075).
12
13. Tangible Fixed Assets
----- Start of picture text -----
Church Premises Fixtures, Fittings Total
& Equipment
£ £ £
Cost
1 April 2020 125,191 67,429 192,620
Additions -
Disposals -
31 March 2021 125,191 67,429 192,620
Depreciation
1 April 2020 65,870 65,870
Additions 1,559 1,559
Disposals -
31 March 2021 - 67,429 67,429
Net Book Value
31 March 2021 125,191 - 125,191
31 March 2020 125,191 1,559 126,750
----- End of picture text -----
The Church premises are included at a valuation undertaken on 1 January 1977. The current insurance value of the property (as at May 2020) is £2,144,344.
All of the fixed assets are used for direct charitable purposes.
14. Debtors
| Gift Aid Recoverable Totals Bank and cash balances Cash at Bank and In Hand Yorkshire Baptist Association Totals |
2021 2020 £ £ 13,559 14,067 |
|---|---|
| 13,559 14,067 |
|
| 2021 2020 £ £ 47,231 65,433 50,788 50,757 |
|
| 98,019 116,189 |
15. Bank and cash balances
13
16. Creditors: amounts falling due within one year
| General Accruals Ministers' Settlement & Costs Creditor (HMRC) Pension Liability Totals |
2021 2020 £ £ 2,907 1,990 46,905 - 1,734 1,723 5,943 5,841 |
|---|---|
| 57,489 9,553 |
Further information in respect of the pension liability is given in note 22.
17. Creditors: amounts falling due after more than one year
| Pension Liabilty Totals |
2021 2020 £ £ 34,757 49,459 |
|---|---|
| 34,757 49,459 |
Further information in respect of the pension liability is given in note 22.
18. Endowment Funds
The assets making up this fund are the Church premises, represented in the balance sheet as fixed assets.
19. Restricted Funds
| Donations for specific grants Donations for ministers and youth leader Donations for specific expenditure Childrens and youth work fund Counselling service Totals |
1 April 2020 Incoming Resources Gains & Transfers Resources Expended Losses £ £ £ £ £ 3,138 8,145 (7,983) 0 2,435 (2,435) 0 2,400 (2,400) 266 250 (170) 0 12,532 (12,532) 3,404 25,762 (25,520) 0 0 |
31 March 2021 3,300 0 0 346 0 3,646 |
|---|---|---|
The assets making up these funds are represented in the balance sheet as current assets.
14
20. Designated Funds
| Yorkshire Baptist Designated Funds Totals |
1 April 2020 Incoming Resources Gains & Transfers 31 March 2021 Resources Expended Losses £ £ £ £ £ £ 50,757 31 (50,788) 0 |
|---|---|
| 50,757 31 0 0 (50,788) 0 |
The funds held in trust by the Yorkshire Baptist Association (YBA) on behalf of Moortown Baptist Church arose from the sales of Kaulin House and 7 Edgbaston Close in previous years. The trusts under which the funds were held did not restrict their use. In February 2021, the Church’s members resolved to apply these funds towards the costs of the departing ministers’ settlement agreement.
21. Analysis of net assets
| At 31 March 2021 Endowment Funds Restricted Funds Designated Funds General Funds Totals At 31 March 2020 Endowment Funds Restricted Funds Designated Funds General Funds Totals |
Fixed Net Current Asset Assets £ £ 125,191 3,647 0 0 50,442 125,191 54,089 125,191 3,404 50,757 1,559 66,543 126,750 120,703 |
Creditor Due after one year £ (34,757) (34,757) (49,459) (49,459) |
Total £ 125,191 3,647 0 15,686 |
|---|---|---|---|
| 144,523 | |||
| 125,191 3,404 50,757 18,642 |
|||
| **197,994 ** |
15
22. Pensions
Baptist Ministers' Pension Scheme
Background to the disclosure
The Church is an employer participating in a pension scheme known as the Baptist Pension Scheme (“the Scheme”), which is administered by the Pension Trustee (Baptist Pension Trust Limited). The Scheme is a separate legal entity and the assets of the Scheme are held separately from those of the Employer and the other participating employers.
For any month, each participating employer in the Scheme pays contributions as set out in the Schedule of Contributions in force at that time.
The Scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. This is because it is not possible to attribute the Scheme’s assets and liabilities to specific employers and means that contributions are accounted for as if the Scheme were a defined contribution scheme. The pensions costs charged to the SoFA in the year are contributions payable towards benefits and expenses accrued in that year, plus any impact of deficiency contributions (see below).
The Minister and Second Minister are eligible to join the Scheme.
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 Legal and General Life Assurance Society Limited. 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 in the event that 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 Unum Limited. Members of the Basic Section pay reduced contributions of 5% of Pensionable Income, and their employers also pay a total of 5%. The further 4% contribution rate is reduced to 3% for Employer contributions made to the Segregated DC Arrangement.
Benefits in respect of service prior to 1 January 2012 are provided through the Defined Benefit (DB) Plan within the Scheme. The main benefits for pre-2012 service were a defined benefit 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. 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.
16
Actuarial valuation as at 31 December 2019
A formal valuation of the Defined Benefit (DB) Plan was performed at 31 December 2019 by a professionally qualified Actuary using the Projected Unit Method. The market value of the DB Plan assets at the valuation date was £298 million. The valuation of the DB Plan revealed a deficit of assets compared with the value of liabilities of £18 million (equivalent to a past service funding level of 94%). The Church and the other employers supporting the DB Plan are collectively responsible for funding this deficit.
The key assumptions underlying the valuation were as follows:
| Type of financial assumption | % pa |
|---|---|
| RPI price inflation assumption | 3.20 |
| CPI price inflation assumption | 2.70 |
| Minimum Pensionable Income increases | 3.20 |
| Assumed investment returns | |
| - Pre-retirement | 2.95 |
| - Post retirement | 1.70 |
| Deferred pension increases | |
| - Pre April 2009 | 3.20 |
| - Post April 2009 | 2.50 |
| Pension increases | |
| - Main Scheme pension | 2.70 |
Post–retirement mortality in accordance with 80% of the S3NFA and S3NMA tables, with allowance for future improvements in mortality rates from 2013 in line with the CMI 2019 core projections, with a long term annual rate of improvement of 1.75% for males and 1.5% for females, with the core smoothing parameter and with additional initial mortality improvement factor A=0.5%.
The estimated deficit on the scheme in the 2019 actuarial valuation was £18m, down from £93m three years previously. The report included the expectation for when deficit recovery contributions might cease, to be two and a half years earlier, now June 2026. The next valuation of the DB plan within the scheme is due to take place not later than 31st 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 Recovery Plan dated 30 September 2020, deficiency contributions are payable until 30 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. However, the Trustee and the Council agreed a 50% reduction for all deficiency contributions payable between 1 July 2020 and 31 December 2020.
17
Movement in Balance Sheet liability
Section 28.11A of FRS 102 requires agreed deficit recovery payments to be recognised as a liability. The movement in the provision is set out in the table below.
| Accounting date (year ending): Balance sheet liability at year start Minus deficiency contributions paid Interest cost Remaining change to balance sheet liability (recognised in SoFA) Balance sheet liability at year end* |
31-Mar-21 31-Mar-20 £55,300 £72,900 (£4,406) (£5,746) - - (£10,194) (£11,854) |
|---|---|
| £40,700 £55,300 |
- Comprises any change in agreed deficit recovery plan and change in assumptions between year-ends.
This liability represents the present value of the deficit contributions agreed as at the accounting date and has been valued using the following assumptions set by reference to the duration of the deficit recovery payments:
| Accounting date | 31-Mar-21 | 31-Mar-20 |
|---|---|---|
| Discount rate | 2.30% | 2.30% |
| Future increases to Minimum Pensionable Income | 3.20% | 3.20% |
Pension cost charged in respect of the Baptist Minister's Pension Scheme:
Total pension cost in respect of the Baptist Minister's Pension Scheme was as follows:
| Accounting date Contributions to DC scheme for current employees Deficit contributions Administration Costs |
31-Mar-21 31-Mar-20 £5,185 £3,564 £4,406 £5,746 £2,431 £2,376 |
|---|---|
| £12,022 £11,686 |
18
23. Related Charities and Parties
The Custodian Trustee of the Church is the Baptist Union Corporation Limited which is charity number 249635. The Church is also a member of the Baptist Union of Great Britain and the Yorkshire Baptist Association (YBA).
The church made donations to the following related charities: YBA Home Mission Fund - £5,024 (2020 £5,609) of which £5,004 (2020: £5,404) was from general funds
The Church also made payments to the YBA for various administrative and training services including conferences.
The church did not have any transactions with any related family members, businesses or companies during the year.
19
Charity Registration Number: 1128960
Moortown Baptist Church Annual Accounts Year Ended 31 March 2021
| Contents: | Page |
|---|---|
| Independent Examiner’s Report | 2 |
| Statement of Financial Activities | 3 |
| Balance Sheet | 4 |
| Notes to the Accounts | 5–19 |
Moortown Baptist Church 204 King Lane Leeds LS17 6AA
1
Independent Examiner's Report to the Trustees of Moortown Baptist Church
I report to the trustees on my examination of the accounts of Moortown Baptist Church (the Trust) for the year ended 31 March 2021 on pages 3 to 19 following, which have been prepared on the basis of the accounting policies set out on pages 5 and 6.
Responsibilities and basis of report
As the charity trustees of the Trust 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 Trust’s accounts carried out under section 145 of the 2011 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.
The charity's gross income did not exceed £250,000 and I am qualified to undertake the examination.
Independent examiner’s statement
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:
-
accounting records were not kept in respect of the Trust as required by section 130 of the Act; or
-
the accounts do not accord with those records; or
-
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.
Nigel Wyatt B.Sc, FCA Independent Examiner
125 Main Street Garforth Leeds LS25 1AF
31/08/2022
2
Statement of Financial Activities for the year ended 31 March 2021
| Notes Income & endowments from: Donations & legacies 5 Charitable activities 6 Investments 7 Other 8 Total Expenditure on: Costs of generating funds Charitable activities 9 Total Net income/(expenditure) Ministers' Settlement & Costs 2,12 Transfer between funds 20 Actuarial revaluation of defined benefit pension scheme liability 22 Net movement in funds Total funds brought forward Total funds carried forward |
General Designated Restricted Endowment Total Funds Funds Funds Funds 2021 £ £ £ £ £ 163,709 13,230 176,939 263 12,532 12,795 388 31 419 5,920 5,920 170,280 31 25,762 - 196,073 - 180,944 25,520 206,464 180,944 - 25,520 - 206,464 (10,664) 31 242 - (10,391) (53,274) - (53,274) 50,788 (50,788) - 10,194 10,194 (2,956) (50,757) 242 - (53,471) 18,642 50,757 3,404 125,191 197,994 15,686 - 3,646 125,191 144,523 |
Total 2020 £ 216,649 20,843 938 - |
|---|---|---|
| 238,430 | ||
| - 252,286 |
||
| 252,286 | ||
| (13,856) 11,854 |
||
| (2,002) 199,996 |
||
| **197,994 ** |
The notes on pages 5 to 19 form an integral part of these accounts.
3
Balance Sheet at 31 March 2021
| Note Tangible Fixed Assets 13 Current Assets Debtors 14 Cash at Bank 15 Current Liabilities Creditors falling due within one year 16 Net Current Assets Creditors falling due after one year 17 Net Assets The funds of the charity: General Funds Restricted Funds 19 Designated Funds 20 Endowment Funds 18 Total Funds |
2021 £ £ 125,191 13,559 98,019 111,578 (57,489) 54,089 (34,757) 144,523 15,686 3,646 0 125,191 144,523 |
2020 £ £ 126,750 14,067 116,189 130,256 (9,553) 120,703 (49,459) 197,994 18,642 3,404 50,757 125,191 197,994 |
2020 £ £ 126,750 14,067 116,189 130,256 (9,553) 120,703 (49,459) 197,994 18,642 3,404 50,757 125,191 197,994 |
|---|---|---|---|
| 111,578 (57,489) |
130,256 (9,553) |
||
| 197,994 | |||
| 18,642 3,404 50,757 125,191 |
|||
| 197,994 |
The notes on pages 5 to 19 form an integral part of these accounts.
23/08/2022
These accounts were approved by the Trustees on …………………… 2022 and signed on their behalf by:
Geoff Fennell John Sherbourne --------------------------Treasurer Deacon
4
Notes to the Accounts
1. Accounting Policies
Basis of preparation
The accounts have been prepared under the historic cost convention, in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014; and with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2015.
The accounts have been prepared on the going concern basis, as there are no material uncertainties about the charity’s ability to continue. Based on the adequacy of the charity’s reserves as at the balance sheet date, along with their knowledge of the charity’s ability to meet bills, payments and other liabilities as they fall due, the trustees have a reasonable expectation that the charity has sufficient resources to continue in operational existence for the foreseeable future.
The following are the accounting policies which have been applied in dealing with material items:-
Income
All incoming resources are recognised once the charity has entitlement to the resources, it is probable that the resources will be received, and the monetary value of incoming resources can be measured with sufficient reliability.
Donated income and grants receivable are taken into account when received by the charity. Income received in circumstances where a claim for repayment of tax has been or will be made to HM Revenue & Customs is grossed up for the tax recoverable. Any amount of tax reclaimed from HM Revenue & Customs but not yet received is shown within the charity's debtors. Income from donated goods is accounted for on the basis of the value of average donation times no. donations received.
The charity has relied significantly upon volunteers in carrying out its activities during the year. In accordance with paragraph 6.18 of the SORP, the role of volunteers has not been recognised as income from donated services in the accounts.
Investment income is taken into account when receivable and expenditure, including irrecoverable VAT, when incurred by the charity, regardless of when payment is made.
Fund raising and publicity costs
The Church does not make formal appeals for funds and expenditure on these items is therefore not material.
Grants payable
The church makes grants to other organisations whose charitable objects complement its work. Grants payable are taken into account at the earlier of when they are paid or become constructive obligations.
Governance costs
Other than the costs of independent examination of the accounts, direct expenditure on the governance of the church is not material. Most of the management of the church is carried out without charge by volunteers. This intangible cost is not included in the Statement of Financial Activities since there is no measurable cost to the volunteers for their service.
Funds
General funds are donations and other income received or generated for the objects of the charity without specified purpose and are available for purposes as directed by the trustees. Restricted funds are amounts received where the donor has specified the purpose for which they should be used.
5
1. Accounting Policies (continued)
Fixed Assets
The church premises are included in the balance sheet at £125,191 based on a valuation at 1 January 1977.
Furniture and equipment in the church premises is included at the lower of cost and net realisable value. Assets costing less than £500 are not capitalised.
Depreciation
Depreciation has not been charged on the church premises because, in the opinion of the Trustees, the residual value of the asset is not less than the original cost price.
Depreciation on other fixed assets is calculated to write off the cost on a straight-line basis over their expected useful life, at the following rates:
| Computer hardware | 33% |
|---|---|
| Furniture and Equipment: | 20% |
Pension liability
The church accounts were prepared under the accounting standard FRS102 for the first time for the year ended 31 March 2017 following the withdrawal of the Financial Reporting Standard for Smaller Entities. As result of this change the church is required to include on its balance sheet a liability representing its share of the pension deficit relating to the defined benefit section of the Baptist Pension Scheme. The liability shown in the church accounts is based on the Employer Debt that would be due on a cessation event. This figure has been provided by the pension scheme actuaries. As no cessation event is anticipated the liability has been discounted to reflect the time value of money on the assumption it will be paid over the period for which deficit contributions are expected to be paid.
2. Going Concern
It is the view of the Trustees that the church will continue to operate as a going concern (i.e. that the church will be able to continue operating as a charity without threat or intention of liquidation) for at least 12 months from the date these accounts were signed.
Ministers Settlement
Having taken legal advice, and with the approval of Church members, the trustees entered into settlement agreements with the departing ministers. These have been accounted for in full in 2020/21 and have been funded largely by the use of re-allocated designated funds (see also notes 11 and 19).
Pension Liability
As shown in note 19, there are positive net assets, both current and overall, notwithstanding the current and long-term amounts due to the pension scheme. Payment of the full employer debt to the pension scheme would only be triggered by a cessation event, such as the Church still not employing a member of the Baptist Pension Scheme by March 2023. Even if this were the case, the trustees are confident of being able to meet any pension liability within the required legal timeframe.
The Trustees expect the church to be able to continue to meet its obligations to pay deficit contributions to the pension scheme out of net income each year and to meet all other liabilities as they fall due.
3. Independent Examination Costs
Net income for the year is stated after charging £500 (2020; £500) for the costs of independent examination.
4. Government Grants
Central government grants of £5,920 (2020;nil) were received in the year from the Government’s furlough scheme in respect of two staff who were furloughed in accordance with the scheme.
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5. Income from Donations & Legacies
| General Designated Restricted Endowment Total Funds Funds Funds Funds 2021 £ £ £ £ £ Offerings 136,795 11,730 148,525 Tax Refunds 26,914 1,500 28,414 Totals 163,709 - 13,230 - 176,939 Total by Fund 2020 204,749 - 11,900 - 216,649 6. Income from charitable activities General Designated Restricted Endowment Total Funds Funds Funds Funds 2021 £ £ £ £ £ Youth Work - - Childrens Work - - Toddlers Groups - - Seniors Groups - - Counselling Service - 12,532 12,532 Room Hire 263 263 Totals 263 - 12,532 - 12,795 Total by Fund 2020 7,962 12,881 20,843 |
Total 2020 £ 179,404 37,245 |
|---|---|
| 216,649 | |
| Total 2020 £ 84 656 2,777 - 12,881 4,445 |
|
| 20,843 | |
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7. Income from Investments
| Bank Interest Interest on Yorkshire Baptist funds Totals Total by Fund 2020 |
General Designated Restricted Endowment Total Funds Funds Funds Funds 2021 £ £ £ £ £ 388 388 31 31 388 31 - - 419 661 277 - - 938 |
Total 2020 £ 661 277 |
|---|---|---|
| 938 | ||
8. Income from other sources
| Furlough Income Totals Total by Fund 2020 |
General Designated Restricted Endowment Total Funds Funds Funds Funds 2021 £ £ £ £ £ 5,920 5,920 5,920 - - - 5,920 - - |
Total 2020 £ - |
|---|---|---|
| - | ||
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9. Expenditure on Charitable Activities
| Ministry, Fellowship & Outreach Youth Work Childrens & Toddlers Work Seniors Work Counselling Service Totals |
Direct Grant Support Total Activities Funding Costs 2021 (note 11) (note 10) £ £ £ £ 92,624 23,787 28,821 145,232 7,323 1,813 9,136 20,661 5,116 25,777 9,160 2,268 11,428 14,891 - 14,891 144,659 23,787 38,018 206,464 |
Total 2020 £ 178,003 18,515 29,184 10,760 15,825 |
|---|---|---|
| 252,287 |
The counselling service operates largely independently which is why no support costs are allocated there.
Restricted funds included above are:
| Ministry, Fellowship & Outreach Counselling Service Totals 10. Support costs |
Direct Grant Total Activities Funding 2021 (note 10) £ £ £ 5,005 7,983 12,988 12,532 12,532 |
|---|---|
| 17,537 7,983 25,520 |
|
| 10. Support costs | ||
|---|---|---|
| Administrator Printing, Stationery, Telephone Governance Costs Buildings Costs Other Costs Totals Total by Fund 2020 |
General Designated Restricted Endowment Total Funds Funds Funds Funds 2021 £ £ £ £ £ 11,284 11,284 2,000 2,000 8,442 8,442 12,915 12,915 3,377 3,377 38,018 - -- 38,018 44,064 44,064 |
Total 2020 £ 10,793 2,371 840 25,276 4,784 |
| 44,064 | ||
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11. Grant funding
| Recipient BMS World Mission Christian Aid Christians Against Poverty Citizens UK Crisis at Christmas Counselling Services Grace Gospel Church Kidz Klub Leeds & Moortown Furniture Store Leeds Faith in Schools Leeds Womens Aid MBC Daycare MBC Romania Fund MBC Special Needs Fund Mission Aviation Fellowship Radio Worldwide Simon on the Streets Street Angels Street Pastors Tear Fund Youth For Christ YBA Home Mission Totals Total by fund for 2020 |
General Restricted Designated Endowment Total Funds Funds Funds Funds 2021 £ £ £ £ £ 6,600 4,120 10,720 0 0 0 0 0 3,000 3,000 0 0 0 0 150 150 2,430 2,430 0 0 1,200 763 1,963 0 0 0 0 500 500 5,004 20 5,024 15,804 7,983 0 0 23,787 21,904 12,129 0 0 34,033 |
Total 2020 £ 11,450 609 500 800 533 1,421 3,750 500 500 500 533 0 2,460 887 530 1,700 200 300 300 450 500 5,609 |
|---|---|---|
| 34,033 | ||
The organisations to which grants have been given serve the following purposes:
-
BMS World Mission: a Baptist missionary society that works worldwide to share the Christian faith
-
Christian Aid: an international relief organisation
-
Christians Against Poverty: a charity that helps people who are struggling with debt
-
Citizens UK: organisation that campaigns on social issues
-
Counselling Services: support for a counselling service based at the church
-
Crisis at Christmas: a charity providing particular support for people struggling over Christmas
-
Grace Gospel Church: a Leeds church that works mainly with Ethiopian immigrants and refugees
-
Kidz Klub: sharing the Christian faith with children throughout Leeds
-
Leeds & Moortown Furniture Store: a charity that provides donated furniture free of charge to those who could not afford to buy it
-
Leeds Faith in Schools: an organisation that works to share the Christian faith in Leeds schools
-
Leeds Womens Aid: helps protect women and families suffering from domestic violence and abuse
-
MBC Daycare – a lunchclub for seniors held at the church
-
MBC Romania Fund: providing support to two partner churches in Romania
-
MBC Special Needs: providing one-off financial grants to people with emergency needs
-
Missionary Aviation Fellowship: an organisation that flies missionaries and relief into remote areas throughout the world that would not otherwise be accessible
-
Radio Worldwide: a missionary organisation that shares the Christian faith through radio and media
-
Simon on the Streets: working on the streets to support the homeless and vulnerable
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-
Street Angels: working on the streets to support homeless people
-
Street Pastors: helping people on the streets who are faced with crime and safety issues
-
Tear Fund: an international relief organisation
-
Youth For Christ: works to share the Christian faith with young people throughout the country
-
YBA Home Mission: Association of Yorkshire Baptist churches that supports churches in carrying out their work including with new initiatives
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12. Staff costs and Trustees expenses
| All Staff Salaries Social Security Costs Pension Costs - Current Pension costs - deficit contributions Settlement costs (notes 2 and 20) Settlement costs - Ex-gratia payments (notes 2 and 20) Other Costs Totals The average number of employees during the year was: The full time equivalent number of staff was: |
2021 2020 £ £ 87,941 101,542 1,667 3,712 5,810 6,385 4,406 5,746 44,052 - 7,542 - 29,618 32,065 181,036 149,450 6 8 3.8 5 |
|---|---|
Two employees received emoluments between £60,000 and £70,000 during the year (2020 none).
The Minister, G Brownlee, and the Second Minister, S Shaw, who are defined in charity law as Trustees, received salary during the year for their employed roles as Ministers, as allowed by the Church’s constitution and also received settlement costs. The total amount paid to them is shown below. None of the Deacons who served the church was paid in an employment capacity. No sums were reimbursed to the Trustees for their work as Trustees (2020 none).
| Salaries Social Security Costs Pension Costs Settlement costs Settlement costs - Ex-gratia payments Other Costs Totals |
Minister 2021 2020 £ £ 22,083 23,588 1,936 2,064 1,592 1,634 22,027 - 3,771 - 14,820 15,942 66,230 43,229 |
Second Minister 2021 2020 £ £ 22,083 23,588 1,936 2,064 1,592 1,634 22,025 - 3,771 - 14,798 16,122 |
|---|---|---|
| 66,206 43,409 |
Ex gratia payments to the ministers were included in the legal settlement agreements to cover the amount of statutory deductions from salaries paid as part of the settlement under the agreements.
The total remuneration of employees considered key management personnel is £132,436 (2020; £86,638).
The church pays pension contributions for various employees into defined contribution arrangements. Further information about the Baptist pension scheme is given in note 22.
Gifts by trustees
The total value of monetary gifts given by trustees (and their connected persons), to the church during the year ended 31 March 2021 is £21,410 (2020: £24,075).
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13. Tangible Fixed Assets
----- Start of picture text -----
Church Premises Fixtures, Fittings Total
& Equipment
£ £ £
Cost
1 April 2020 125,191 67,429 192,620
Additions -
Disposals -
31 March 2021 125,191 67,429 192,620
Depreciation
1 April 2020 65,870 65,870
Additions 1,559 1,559
Disposals -
31 March 2021 - 67,429 67,429
Net Book Value
31 March 2021 125,191 - 125,191
31 March 2020 125,191 1,559 126,750
----- End of picture text -----
The Church premises are included at a valuation undertaken on 1 January 1977. The current insurance value of the property (as at May 2020) is £2,144,344.
All of the fixed assets are used for direct charitable purposes.
14. Debtors
| Gift Aid Recoverable Totals Bank and cash balances Cash at Bank and In Hand Yorkshire Baptist Association Totals |
2021 2020 £ £ 13,559 14,067 |
|---|---|
| 13,559 14,067 |
|
| 2021 2020 £ £ 47,231 65,433 50,788 50,757 |
|
| 98,019 116,189 |
15. Bank and cash balances
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16. Creditors: amounts falling due within one year
| General Accruals Ministers' Settlement & Costs Creditor (HMRC) Pension Liability Totals |
2021 2020 £ £ 2,907 1,990 46,905 - 1,734 1,723 5,943 5,841 |
|---|---|
| 57,489 9,553 |
Further information in respect of the pension liability is given in note 22.
17. Creditors: amounts falling due after more than one year
| Pension Liabilty Totals |
2021 2020 £ £ 34,757 49,459 |
|---|---|
| 34,757 49,459 |
Further information in respect of the pension liability is given in note 22.
18. Endowment Funds
The assets making up this fund are the Church premises, represented in the balance sheet as fixed assets.
19. Restricted Funds
| Donations for specific grants Donations for ministers and youth leader Donations for specific expenditure Childrens and youth work fund Counselling service Totals |
1 April 2020 Incoming Resources Gains & Transfers Resources Expended Losses £ £ £ £ £ 3,138 8,145 (7,983) 0 2,435 (2,435) 0 2,400 (2,400) 266 250 (170) 0 12,532 (12,532) 3,404 25,762 (25,520) 0 0 |
31 March 2021 3,300 0 0 346 0 3,646 |
|---|---|---|
The assets making up these funds are represented in the balance sheet as current assets.
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20. Designated Funds
| Yorkshire Baptist Designated Funds Totals |
1 April 2020 Incoming Resources Gains & Transfers 31 March 2021 Resources Expended Losses £ £ £ £ £ £ 50,757 31 (50,788) 0 |
|---|---|
| 50,757 31 0 0 (50,788) 0 |
The funds held in trust by the Yorkshire Baptist Association (YBA) on behalf of Moortown Baptist Church arose from the sales of Kaulin House and 7 Edgbaston Close in previous years. The trusts under which the funds were held did not restrict their use. In February 2021, the Church’s members resolved to apply these funds towards the costs of the departing ministers’ settlement agreement.
21. Analysis of net assets
| At 31 March 2021 Endowment Funds Restricted Funds Designated Funds General Funds Totals At 31 March 2020 Endowment Funds Restricted Funds Designated Funds General Funds Totals |
Fixed Net Current Asset Assets £ £ 125,191 3,647 0 0 50,442 125,191 54,089 125,191 3,404 50,757 1,559 66,543 126,750 120,703 |
Creditor Due after one year £ (34,757) (34,757) (49,459) (49,459) |
Total £ 125,191 3,647 0 15,686 |
|---|---|---|---|
| 144,523 | |||
| 125,191 3,404 50,757 18,642 |
|||
| **197,994 ** |
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22. Pensions
Baptist Ministers' Pension Scheme
Background to the disclosure
The Church is an employer participating in a pension scheme known as the Baptist Pension Scheme (“the Scheme”), which is administered by the Pension Trustee (Baptist Pension Trust Limited). The Scheme is a separate legal entity and the assets of the Scheme are held separately from those of the Employer and the other participating employers.
For any month, each participating employer in the Scheme pays contributions as set out in the Schedule of Contributions in force at that time.
The Scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. This is because it is not possible to attribute the Scheme’s assets and liabilities to specific employers and means that contributions are accounted for as if the Scheme were a defined contribution scheme. The pensions costs charged to the SoFA in the year are contributions payable towards benefits and expenses accrued in that year, plus any impact of deficiency contributions (see below).
The Minister and Second Minister are eligible to join the Scheme.
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 Legal and General Life Assurance Society Limited. 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 in the event that 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 Unum Limited. Members of the Basic Section pay reduced contributions of 5% of Pensionable Income, and their employers also pay a total of 5%. The further 4% contribution rate is reduced to 3% for Employer contributions made to the Segregated DC Arrangement.
Benefits in respect of service prior to 1 January 2012 are provided through the Defined Benefit (DB) Plan within the Scheme. The main benefits for pre-2012 service were a defined benefit 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. 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.
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Actuarial valuation as at 31 December 2019
A formal valuation of the Defined Benefit (DB) Plan was performed at 31 December 2019 by a professionally qualified Actuary using the Projected Unit Method. The market value of the DB Plan assets at the valuation date was £298 million. The valuation of the DB Plan revealed a deficit of assets compared with the value of liabilities of £18 million (equivalent to a past service funding level of 94%). The Church and the other employers supporting the DB Plan are collectively responsible for funding this deficit.
The key assumptions underlying the valuation were as follows:
| Type of financial assumption | % pa |
|---|---|
| RPI price inflation assumption | 3.20 |
| CPI price inflation assumption | 2.70 |
| Minimum Pensionable Income increases | 3.20 |
| Assumed investment returns | |
| - Pre-retirement | 2.95 |
| - Post retirement | 1.70 |
| Deferred pension increases | |
| - Pre April 2009 | 3.20 |
| - Post April 2009 | 2.50 |
| Pension increases | |
| - Main Scheme pension | 2.70 |
Post–retirement mortality in accordance with 80% of the S3NFA and S3NMA tables, with allowance for future improvements in mortality rates from 2013 in line with the CMI 2019 core projections, with a long term annual rate of improvement of 1.75% for males and 1.5% for females, with the core smoothing parameter and with additional initial mortality improvement factor A=0.5%.
The estimated deficit on the scheme in the 2019 actuarial valuation was £18m, down from £93m three years previously. The report included the expectation for when deficit recovery contributions might cease, to be two and a half years earlier, now June 2026. The next valuation of the DB plan within the scheme is due to take place not later than 31st 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 Recovery Plan dated 30 September 2020, deficiency contributions are payable until 30 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. However, the Trustee and the Council agreed a 50% reduction for all deficiency contributions payable between 1 July 2020 and 31 December 2020.
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Movement in Balance Sheet liability
Section 28.11A of FRS 102 requires agreed deficit recovery payments to be recognised as a liability. The movement in the provision is set out in the table below.
| Accounting date (year ending): Balance sheet liability at year start Minus deficiency contributions paid Interest cost Remaining change to balance sheet liability (recognised in SoFA) Balance sheet liability at year end* |
31-Mar-21 31-Mar-20 £55,300 £72,900 (£4,406) (£5,746) - - (£10,194) (£11,854) |
|---|---|
| £40,700 £55,300 |
- Comprises any change in agreed deficit recovery plan and change in assumptions between year-ends.
This liability represents the present value of the deficit contributions agreed as at the accounting date and has been valued using the following assumptions set by reference to the duration of the deficit recovery payments:
| Accounting date | 31-Mar-21 | 31-Mar-20 |
|---|---|---|
| Discount rate | 2.30% | 2.30% |
| Future increases to Minimum Pensionable Income | 3.20% | 3.20% |
Pension cost charged in respect of the Baptist Minister's Pension Scheme:
Total pension cost in respect of the Baptist Minister's Pension Scheme was as follows:
| Accounting date Contributions to DC scheme for current employees Deficit contributions Administration Costs |
31-Mar-21 31-Mar-20 £5,185 £3,564 £4,406 £5,746 £2,431 £2,376 |
|---|---|
| £12,022 £11,686 |
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23. Related Charities and Parties
The Custodian Trustee of the Church is the Baptist Union Corporation Limited which is charity number 249635. The Church is also a member of the Baptist Union of Great Britain and the Yorkshire Baptist Association (YBA).
The church made donations to the following related charities: YBA Home Mission Fund - £5,024 (2020 £5,609) of which £5,004 (2020: £5,404) was from general funds
The Church also made payments to the YBA for various administrative and training services including conferences.
The church did not have any transactions with any related family members, businesses or companies during the year.
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