Charity number: 1129360
SOUTHBOROUGH LANE BAPTIST CHURCH
UNAUDITED
TRUSTEES' REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2021
SOUTHBOROUGH LANE BAPTIST CHURCH
| CONTENTS | |
|---|---|
| Page | |
| Reference and administrative details of the charity, its trustees and advisers | 1 |
| Trustees' report | 2 - 5 |
| Independent examiner's report | 6 |
| Statement of financial activities | 7 |
| Balance sheet | 8 |
| Notes to the financial statements | 9 - 23 |
SOUTHBOROUGH LANE BAPTIST CHURCH
REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 30 SEPTEMBER 2021
Trustees
Rev. B R A Marlowe, Chairman Mr. S Fox, Trustee Miss J Edwards, Trustee Mr P R Willans, Treasurer Mr P Wallach, Trustee Mrs J Hirst, Trustee Mr F P Hills, Trustee Mr B Hughes, Trustee
Charity registered number
1129360
Principal office
Southborough Lane, Petts Wood
Independent Examiner
Paul Baker FFA. FAIA, Applied Accountancy Limited, 50A Clifford Way, Maidstone, ME16 8GD
Page 1
SOUTHBOROUGH LANE BAPTIST CHURCH
TRUSTEES' REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2021
The Trustees present their annual report together with the financial statements of the charity Southborough Lane Baptist Church for the year 1 October 2020 to 30 September 2021.
OBJECTIVES AND ACTIVITIES
a. Policies and Objectives
In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the charity commission relating to public benefit and in particular to its supplementary public benefit guidance on places of worship.
Our objective is to engage with all people of all ages, in our community, on an emotional,spiritual and educational basis.
b. Activities for achieving objectives and main activities undertaken to further the Charity's purposes for Public Benefit
We have sought, despite the continued disruption that COVID-19 has brought, to achieve our objectives through maintaining a connection with our various groups and members socially, educationally, pastorally and spiritually.
ACHIEVEMENTS AND PERFORMANCE
a. Key financial performance indicators
The key financial performance indicators identified relate to the comparison of donations received to amounts expended in meeting the church's stated objectives as well as maintaining the integrity of the various funds that are maintained.
b. Review of Activities
During the last twelve months we have continued to endeavour to be a church for all people of all ages, providing spiritual, emotional, physical and educational support, to both those in the church as well as to those from our wider community.
Because of the COVID pandemic we finally reopened properly during January and February 2022.
We have two important groups for mums or dads and their toddlers both of which are flourishing again. Likewise, the range of activities for adults which include Bowls Mornings, Badminton Evenings, Craft Groups and Coffee Mornings have successfully reopened.
We also have a range of small groups who meet for study and discussion, which have helped people to develop in a variety of ways. Some continue to meet via Zoom while others now meet in person again. We have not been able to welcome visitors on Sundays or to our Quiz nights and Community Fun Days, all of which have been curtailed.
In the summer of 2019 we began a sizeable Building Redevelopment Project. This, despite undergoing numerous delays, as a result of COVID, is now complete though the completion certificate was issued on 15 March 2022. It is providing us with additional space to run existing activities and also to instigate some exciting new ventures.
Page 2
SOUTHBOROUGH LANE BAPTIST CHURCH
TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 30 SEPTEMBER 2021
The Petts Wood Mandarin-English Bi-lingual Pre-School that operates out of our premises has recommenced activities and continues to go from strength to strength. The relationship that we have with the school’s proprietors suggests that we will be able to engage in a number of joint ventures for children and families as we move forward.
c. Investment policy and performance
The Church has a long term policy for the investment of funds. Any surplus funds arising from time to time will be held on deposit with either a High-Street Bank Deposit or the London Baptist Property Fund, both of which allow easy access to the funds if required.
FINANCIAL REVIEW
a. Going Concern
After making appropriate enquiries, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies.
The Trustees continue to monitor the impact of Coronavirus on the charity as a whole. Since the cessation of church services in March 2020 the accounts show that there has not been a material reduction in church income. This is because the majority of income arises from regular giving through bank transfers and not through service collections. Cost saving through the closure of church premises or the restriction of activities more than covers any loss of income.
b. Results for the year
Unrestricted
This year Southborough Lane Baptist Church generated a surplus, before transfers, of £9,977 which compared to the previous year's surplus of £11,073, showing a reduction of £1,096. Essentially income has fallen by £5,324 attributable to a fall in donations received which is partially compensated for by an increase in rental income. This overall reduction in income is almost matched by a fall in expenditure of £4,228 when 2021 is compared to 2020. Legal fees incurred in 2020 in respect of leases granted account for almost the entire reduction in expenditure.
Transfers made between funds were primarily in respect of the financing of the Building Refurbishment and Development held in the Building Development Fund. A smaller transfer to Designated Fund was made to enable separate disclosure of funds held within Ministry Support activities.
Restricted
Donations for 2021 totaled £29,478 (2020 - £24,294) of which £29,478 (2020 - £23,889) was in respect of pledges made for the Building Development Fund. There was no fundraising in 2021 (2020 - £405) in respect of the building works which had commenced during the year ended 30 September 2019.
During December 2019 and January 2020 we made full use of a loan facility made available to us for £100,000 from the London Baptist Property Board. This facility was awarded to us August 2019 prior to commencing building work in the main church buildings.
Page 3
SOUTHBOROUGH LANE BAPTIST CHURCH
TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 30 SEPTEMBER 2021
Expenditure totaled £36,458 which comprised mainly depreciation in respect of those buildings which are now complete and brought into usage and comprised the church offices, the rear hall now used by the Petts Wood Mandarin English Bi-lingual Pre School and the refurbished front hall and entrance.
c. RESERVES POLICY
The trustees endeavour to retain sufficient unrestricted funds to cover approximately three month's running costs. This latter sum amounts to £25,441 excluding depreciation (2020 - £26,629).The unrestricted funds, classified as General Funds, excluding the cost of property, both cost and revaluation reserve, at the end of the year amounted to £89,742 (2020 - £75,797) which exceeds the trustees' target for reserves. The level of reserves will continue to be kept under close review.
STRUCTURE, GOVERNANCE AND MANAGEMENT
a. Constitution
The charity is an unincorporated charity governed by a constitution adopted on 28 January 2009.
b. Method of appointment or election of Trustees
The management of the charity is the responsibility of the Trustees who are elected and co-opted under the terms of the Trust deed.
c. Organisational structure and decision making
The charity is governed by a committee of management comprising the Trustees, the Minister, the Elders and the Deacons who are elected by the membership of Southborough Lane Baptist Church. These leaders meet on a regular basis to discuss issues effecting the church and it's work and witness and make appropriate authorised decisions themselves or recommendations to the Church membership for decisions in general meeting.
d. Risk Management
The Trustees have assessed the major risks to which the charity is exposed, in particular those related to the operations and finances of the charity, and are satisfied that systems and procedures are in place to mitigate our exposure to the major risks.
Coronavirus
The trustees have assessed the various risks arising on the easing of Lockdown leading to recommencement of church services. The area's of concern included; Singing during services, social distancing, working surfaces such as door handles, cleaning between services, the dispersal of the congregation after church services as well as other matters.
Page 4
SOUTHBOROUGH LANE BAPTIST CHURCH
TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 30 SEPTEMBER 2021
PLANS FOR FUTURE PERIODS
a. Future Developments
The next twelve months, we hope, will be a time when we are able to press on with our vision to make Southborough Lane Baptist Church a place of welcome and blessing for people of all ages in the Petts Wood community.
We now have a building that is a wonderful resource for staging a variety of events, teaching and support program, thereby allowing us to engage with our community in new and meaningful ways.
This will also make it easier for us to respond to people’s specific needs and offer spiritual, emotional, physical and educational support, as required.
TRUSTEES' RESPONSIBILITIES STATEMENT
The Trustees are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England & Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the Trustees are required to:
-
select suitable accounting policies and then apply them consistently;
-
observe the methods and principles in the Charities SORP;
-
make judgments and accounting estimates that are reasonable and prudent;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The Trustees are responsible for keeping proper accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
This report was approved by the Trustees, on 11 July 2022 and signed on their behalf by:
Rev. B R A Marlowe, Chairman
Page 5
SOUTHBOROUGH LANE BAPTIST CHURCH
INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2021
INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF SOUTHBOROUGH LANE BAPTIST CHURCH (the 'charity')
I report to the charity Trustees on my examination of the accounts of the charity for the year ended 30 September 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 2011 Act').
I report in respect of my examination of the charity'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 2011 Act.
INDEPENDENT EXAMINER'S STATEMENT
Your attention is drawn to the fact that the charity has prepared the accounts 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) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has been withdrawn.
I understand that this has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.
I have completed my examination. I can confirm that no 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 charity as required by section 130 of the 2011 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.
Signed:
Dated: 11 July 2022
Paul Baker FFA FAIA
Page 6
SOUTHBOROUGH LANE BAPTIST CHURCH
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30 SEPTEMBER 2021
| Unrestricted funds Note 2021 £ INCOME FROM: Donations and legacies 2 99,573 Church activities: Fundraising 3 - Church activities 277 Investments 4 109 Other income - Rents 12,443 TOTAL INCOME 112,402 EXPENDITURE ON: Raising funds 5 - Charitable activities 8 102,425 TOTAL EXPENDITURE 9 102,425 NET INCOME / (EXPENDITURE) BEFORE TRANSFERS 9,977 Transfers between Funds 19 8,779 NET INCOME / (EXPENDITURE) BEFORE OTHER RECOGNISED GAINS AND LOSSES 18,756 NET MOVEMENT IN FUNDS 18,756 RECONCILIATION OF FUNDS: Total funds brought forward 648,297 TOTAL FUNDS CARRIED FORWARD 667,053 |
Restricted funds 2021 £ 29,478 - - - - 29,478 - 36,458 36,458 (6,980) (8,779) (15,759) (15,759) 1,309,585 1,293,826 |
Total funds 2021 £ 129,051 - 277 109 12,443 141,880 - 138,883 138,883 2,997 - 2,997 2,997 1,957,882 1,960,879 |
Total funds 2020 £ 130,011 405 3,328 577 7,699 |
|---|---|---|---|
| 142,020 | |||
| 155 131,309 |
|||
| 131,464 | |||
| 10,556 - |
|||
| 10,556 10,556 1,947,326 |
|||
| 1,957,882 |
The notes on pages 9 to 23 form part of these financial statements.
Page 7
SOUTHBOROUGH LANE BAPTIST CHURCH
BALANCE SHEET AS AT 30 SEPTEMBER 2021
| Note FIXED ASSETS Tangible assets 14 CURRENT ASSETS Debtors 15 Cash at bank and in hand CREDITORS:amounts falling due within one year 16 NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES CREDITORS:amounts falling due after more than one year 17 NET ASSETS CHARITY FUNDS Restricted funds 19 Unrestricted funds 19 TOTAL FUNDS |
£ 24,151 95,771 119,922 (19,197) |
2021 £ 1,937,654 100,725 2,038,379 (77,500) 1,960,879 1,293,826 667,053 1,960,879 |
£ 27,442 69,257 96,699 (21,119) |
2020 £ 1,969,802 75,580 2,045,382 (87,500) 1,957,882 1,309,585 648,297 1,957,882 |
|---|---|---|---|---|
The financial statements were approved by the Trustees on 11 July 2022 and signed on their behalf, by:
Mr P R Willans, Treasurer
Rev. B R A Marlowe, Chairman
The notes on pages 9 to 23 form part of these financial statements.
Page 8
SOUTHBOROUGH LANE BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021
1. ACCOUNTING POLICIES
1.1 Basis of preparation of financial statements
Southborough Lane Baptist Church is an unincorporated organisation, registered as a charity with The Charity Commission with the The Charity Commission number 1129360.
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 the Charities SORP (FRS 102) (effective 1 January 2019) published on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.
The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes to these accounts. The financial statements have been prepared 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 Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and Charities Act 2011.
Southborough Lane Baptist Church meets the definition of a public benefit entity as defined by FRS 102.
1.2 Income
All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor's intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material.
Donated services or facilities are recognised when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use of the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), the general volunteer time of the friends of the church is not recognised.
Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Page 9
SOUTHBOROUGH LANE BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021
1. ACCOUNTING POLICIES (continued)
1.3 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.
Support costs are those costs incurred directly in support of expenditure on the objects of the charity and include project management carried out at Headquarters. Governance costs are those incurred in connection with administration of the charity and compliance with constitutional and statutory requirements.
Costs of generating funds are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds.
Charitable activities and Governance costs are costs incurred on the charity's educational operations, including support costs and costs relating to the governance of the charity apportioned to charitable activities.
Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.
All expenditure is inclusive of irrecoverable VAT.
1.4 Tangible fixed assets and depreciation
All assets costing more than £750 are capitalised.
A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the Statement of financial activities.
Building refurbishment and redevelopment costs are not depreciated until the work on the building is complete and the building has been brought into use.
Assets in the course of construction are included at cost. Depreciation on these assets is not charged until they are brought into use.
Tangible fixed assets are carried at cost, net of depreciation and any provision for impairment. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
| Freehold property | - | Straight Line over the life of the Property |
|---|---|---|
| Plant and machinery | - | 25% Reducing Balance |
| Fixtures and fittings | - | 25% Reducing Balance |
Page 10
SOUTHBOROUGH LANE BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021
1. ACCOUNTING POLICIES (continued)
The Manse is a semi-detached property where the land and the buildings are inseparable. In addition, there is a ready market for the sale of the property. Consequently, no depreciation has been charged on this property as it is considered that the increase in the value of land will more than outweigh any decrease in value of the building through usage.
1.5 Interest receivable
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the Bank.
1.6 Debtors
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
1.7 Cash at Bank and in hand
Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
1.8 Liabilities and provisions
Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised within interest payable and similar charges.
1.9 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.
1.10 Pensions
The charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the charity to the fund in respect of the year.
Page 11
SOUTHBOROUGH LANE BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021
1. ACCOUNTING POLICIES (continued)
1.11 Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.
Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
2. INCOME FROM DONATIONS AND LEGACIES
| Unrestricted funds 2021 £ Donations 99,573 Legacies - Total donations and legacies 99,573 Total 2020 106,122 |
Restricted funds 2021 £ 29,478 - 29,478 23,889 |
Total funds 2021 £ 129,051 - 129,051 130,011 |
Total funds 2020 £ 128,011 2,000 |
|---|---|---|---|
| 130,011 | |||
3. FUNDRAISING INCOME
| Unrestricted funds 2021 £ Fundraising - Total 2020 - |
Restricted funds 2021 £ - 405 |
Total funds 2021 £ - 405 |
Total funds 2020 £ 405 |
|---|---|---|---|
Page 12
SOUTHBOROUGH LANE BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021
4. INVESTMENT INCOME
| Unrestricted funds 2021 £ Investment income - Deposit Accounts 14 HMRC Repayment Supplement 95 109 Total 2020 577 5. COSTS OF RAISING FUNDS Unrestricted funds 2021 £ Building Development Fund - Total 2020 - 6. DIRECT COSTS Ministry activities Wages and salaries National insurance Pension cost Total 2020 |
Restricted funds 2021 £ - - - - Restricted funds 2021 £ - 155 Church activities £ 18,498 46,213 130 7,408 72,249 72,395 |
Total funds 2021 £ 14 95 109 577 Total funds 2021 £ - 155 Total 2021 £ 18,498 46,213 130 7,408 72,249 72,395 |
Total funds 2020 £ 472 105 |
|
|---|---|---|---|---|
| 577 | ||||
| Total funds 2020 £ 155 |
||||
| Total 2020 £ 17,255 47,334 527 7,279 72,395 |
||||
Page 13
SOUTHBOROUGH LANE BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021
7. SUPPORT COSTS
| Office costs Computer costs Support costs Maintenance repairs Legal & Professional Grantmaking Depreciation Total 2020 |
Church support £ 2,462 442 4,397 3,345 - 14,461 662 25,769 33,766 |
Church property £ - - - - - - 36,458 36,458 21,960 |
Total 2021 £ 2,462 442 4,397 3,345 - 14,461 37,120 62,227 55,726 |
Total 2020 £ 2,708 398 4,362 3,498 4,656 15,310 24,794 55,726 |
|---|---|---|---|---|
Included in the 2020 Church property comparative is £4,656 in respect of Pre-School legal cost on the granting of a lease to the Church property.
GRANTMAKING
| Overseas Mission The Michael Project Samara's Aid LBA/Home Mission Food Bank Spurgeon's College Total |
2021 £ 3,350 4,500 1,875 4,560 176 - 14,461 |
2020 £ 4,000 4,500 2,000 4,560 - 250 |
|---|---|---|
| 15,310 |
Grants to individuals totaled £997, (2020 - £684) and because they live locally these grants are included in ministry activities.
8. GOVERNANCE COSTS
| Unrestricted funds 2021 £ Independent examiners fees 1,380 Payroll Bureau Services 312 Loan interest (LBPB) 2,715 4,407 |
Restricted funds 2021 £ - - - - |
Total funds 2021 £ 1,380 312 2,715 4,407 |
Total funds 2020 £ 1,320 - 1,868 |
|---|---|---|---|
| 3,188 |
Page 14
SOUTHBOROUGH LANE BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021
9. ANALYSIS OF EXPENDITURE BY EXPENDITURE TYPE
| Expenditure on raising voluntary income Costs of raising funds Ministry activities and support Building Maintenance Charitable activities Expenditure on governance Total 2020 |
Staff costs Depreciation Other costs 2021 £ 2021 £ 2021 £ - - - - - - 53,751 662 43,605 - 36,458 - 53,751 37,120 43,605 - - 4,407 53,751 37,120 48,012 55,140 24,794 51,530 |
Total 2021 £ - - 98,018 36,458 134,476 4,407 138,883 131,464 |
Total 2020 £ 155 155 |
|---|---|---|---|
| 110,817 17,304 128,121 |
|||
| 3,188 131,464 |
|||
10. NET INCOME/(EXPENDITURE)
This is stated after charging:
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Depreciation of tangible fixed assets: | ||
| - owned by the charity | 37,120 | 24,795 |
| Payroll Bureau Services | 312 | - |
During the year, one Trustee received remuneration totalling £36,960 (2020- £36,775). During the year, one Trustee received benefits in kind of £5,091 (2020 - £4,901). During the year, no Trustees received any reimbursement of personal expenses (2020 - £NIL).
The trustee concerned is the Rev. Ben Marlowe who has served as minister since his appointment in May 2016. The benefits-in-kind include the running expenses of the manse which is provided for his work as well as £3,841 (2020 - £3,787) in respect of pension contributions paid on his behalf.
11. INDEPENDENT EXAMINER'S FEES
The Independent Examiner's fees amounts to an Independent Examination fee of £1,380 (2020 - £1,320), and other services of £ -(2020 - £ -).
Page 15
SOUTHBOROUGH LANE BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021
12. STAFF COSTS
Staff costs were as follows:
| Wages and salaries Social security costs Other pension costs |
2021 £ 46,213 130 7,408 53,751 |
2020 £ 47,334 527 7,279 |
|---|---|---|
| 55,140 |
The average number of persons employed by the charity during the year was as follows:
| Minister Office and Ministry Support Staff |
2021 No. 1 2 3 |
2020 No. 1 2 |
|---|---|---|
| 3 |
No employee received remuneration amounting to more than £60,000 in either year.
13. TRUSTEES' REMUNERATION
During the year retirement benefits were accruing to 1 Trustee (2020 - 1) in respect of defined contribution pension schemes.
Page 16
SOUTHBOROUGH LANE BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021
14. TANGIBLE FIXED ASSETS
| Cost At 1 October 2020 Additions At 30 September 2021 Depreciation At 1 October 2020 Charge for the year At 30 September 2021 Net book value At 30 September 2021 At 30 September 2020 |
Freehold property £ 2,047,769 2,734 2,050,503 102,825 30,347 133,172 1,917,331 1,944,944 |
Audio Visual Equipment £ 32,594 - 32,594 8,148 6,111 14,259 18,335 24,446 |
Fixtures and fittings £ 66,752 2,238 68,990 66,340 662 67,002 1,988 412 |
Total £ 2,147,115 4,972 |
|---|---|---|---|---|
| 2,152,087 | ||||
| 177,313 37,120 |
||||
| 214,433 | ||||
| 1,937,654 | ||||
| 1,969,802 |
In accordance with FRS102 the church buildings have been revalued by the trustees and where appropriate the surplus arising has been taken to a Revaluation Reserve, refer to note 18.
Building works as part of the Refurbishment and Development of the Church Site relating to the new church offices, the refurbishment of the front and rear hall and the Audio Visual system have now been depreciated as work on them has now been completed and they have been brought into use.
It has been decided that the costs and related depreciation of the Audio Visual system be disclosed separately even though they are an integral part of the building. This is to show clarity as well as the impact of the shorter life of these assets when compared to the building.
15. DEBTORS
| Income Tax recoverable Other debtors Prepayments and accrued income |
2021 £ 21,719 980 1,452 |
2020 £ 22,324 42 5,076 |
|---|---|---|
| 24,151 | 27,442 |
Page 17
SOUTHBOROUGH LANE BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021
16. CREDITORS: Amounts falling due within one year
| Other loans (see note 17) Other taxation and social security Other creditors |
2021 £ 10,000 - 9,197 19,197 |
2020 £ 12,500 802 7,817 |
|---|---|---|
| 21,119 |
The current portion of the loan described in note 17 is £10,000 comprisnig four quarterly installments of £2,500 which will be repaid during the year ended 30 September 2022.
Included in Other Creditors is an amount of £3,000 in respect of a Rent deposit given by a MandarinEnglish Bi-Lingual Pre-school prior to commencing activities in the church's newly refurbished rear hall
17. CREDITORS: Amounts falling due after more than one year
| 2021 £ Other loans 77,500 Included within the above are amounts falling due as follows: 2021 £ Between two and five years Other loans 40,000 Over five years Other loans 37,500 Creditors include amounts not wholly repayable within 5 years as follows: 2021 £ Repayable by instalments 37,500 |
2020 £ 87,500 |
|---|---|
| 2020 £ 40,000 |
|
| 47,500 | |
| 2020 £ 47,500 |
During the year ended 30 September 2020 the church was awarded a ten year loan facility of £100,000 from the London Baptist Property Board to provide funds to complete the property refurbishment and development works which were currently under way. The Loan is to be repaid in equal quarterly installments of £2,500. Interest is charged quarterly at a variable rate the current level being 2.75% and the loan is secured on the property.
Page 18
SOUTHBOROUGH LANE BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021
18. FINANCIAL INSTRUMENTS
| FINANCIAL INSTRUMENTS | ||
|---|---|---|
| 2021 | 2020 | |
| £ | £ | |
| Financial assets measured at fair value through income and | ||
| expenditure | 95,771 | 69,257 |
Financial assets measured at fair value through income and expenditure comprise a number of bank accounts held within High Street Banks and the London Baptist Property Board.
19. STATEMENT OF FUNDS
STATEMENT OF FUNDS - CURRENT YEAR
| Designated funds Designated Funds - Manse (cost) Designated Fund Manse - Revaluation Reserve Ministry Support Activities General funds General Funds - all funds Total Unrestricted funds Restricted funds Church Site Church Site Revaluation Church Site Redevelopment Church Car Park Building Development Fund Website Development Fund Total of funds |
Balance at 1 October 2020 £ 110,000 462,500 - 572,500 75,797 648,297 532,091 518,169 62,596 3 194,949 1,777 1,309,585 1,957,882 |
Income Expenditure £ £ - - - - 2,855 (2,853) 2,855 (2,853) 109,547 (99,572) 112,402 (102,425) - (7,560) - (7,340) - (21,558) - - 29,478 - - - 29,478 (36,458) 141,880 (138,883) |
Transfers in/out £ - - 4,809 4,809 3,970 8,779 - - 215,651 (3) (224,427) - (8,779) - |
Balance at 30 Sept 2020 £ 110,000 462,500 4,811 577,311 |
|---|---|---|---|---|
| 89,742 | ||||
| 667,053 | ||||
| 524,531 510,829 256,689 - - 1,777 1,293,826 |
||||
| 1,960,879 |
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SOUTHBOROUGH LANE BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021
19. STATEMENT OF FUNDS (continued)
Church Properties
The properties, which had already been revalued a number of years ago, were subjected to a detailed review by the trustees when preparing the accounts for the year ended 30 September 2017. Any adjustments made to produce a Fair Value were included in the Accounts and a revaluation reserve was created to disclose the extent of this revaluation in the accounts.
The land that the buildings stand on is owned by the London Baptist Property Board and which Southborough Lane Baptist Church holds on trust. The Main Church Site by a Trust Deed dated 5 June 1974 and the Manse by a Trust Deed dated 14 February 1977.
Under the terms of the Trust Deeds, the Main Church Site can only be used for a place of worship so that all buildings erected will be classed as Restricted Fund Assets and for the Manse the eventual proceeds can be used for any charitable purpose consistent with the Baptist Denomination, consequently it is disclosed as a Designated Fund Asset.
Church Property Redevelopment
The Building Redevelopment Fund is a restricted fund that receives funds to finance the redevelopment of several buildings on the Church Site. Once work is completed and the building brought into use the costs are transferred to the Church Site Redevelopment Fund, which is also a restricted fund. Depreciation of the redevelopment costs of the building is charged to this fund. £224,427 of building costs were transferred during the year ended 30 September 2021 on completion of the project.
Website Development Fund
This fund comprises a single gift received to cover the cost of redeveloping the Church's website following completion of the building works. Initially these funds were included in the General Fund in error but have now been transferred to a restricted fund created for the gift's intended purpose.
General Fund
During the year ended 30 September 2021 a transfer of £8,779. was made to the General Fund from the Building Development Fund and the Church Site Redevelopment Fund in respect of the overall costs of the redevelopment of the Church Site.
Designated Fund
This year the church's Ministry Support Activities have been shown separately within Designated Funds, previously they had been shown as included in the General Fund. This change of presentation is for greater clarity and to recognise the work of these support activities.
Page 20
SOUTHBOROUGH LANE BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021
19. STATEMENT OF FUNDS (continued)
STATEMENT OF FUNDS - PRIOR YEAR
| Designated funds Designated Funds - Manse (cost) Designated Fund Manse - Revaluation Reserve General funds General Funds - all funds Total Unrestricted funds Restricted funds Church Site Church Site Revaluation Church Site Redevelopment Church Car Park Building Development Fund Website Development Fund Total of funds |
Balance at 1 October 2019 £ 110,000 462,500 176,501 749,001 539,651 525,509 - 3 133,162 - 1,198,325 1,947,326 |
Income £ - - 117,726 117,726 - - - - 24,294 - 24,294 142,020 |
Expenditure £ - - (106,653) (106,653) (7,560) (7,340) (9,757) - (154) - (24,811) (131,464) |
Transfers in/out £ - - (111,777) (111,777) - - 72,353 - 37,647 1,777 111,777 - |
Balance at 30 Sept 2020 £ 110,000 462,500 |
|---|---|---|---|---|---|
| 75,797 | |||||
| 648,297 | |||||
| 532,091 518,169 62,596 3 194,949 1,777 1,309,585 |
|||||
| 1,957,882 |
SUMMARY OF FUNDS - CURRENT YEAR
| Designated funds General funds Restricted funds |
Balance at 1 October 2020 £ 572,500 75,797 648,297 1,309,585 1,957,882 |
Income Expenditure £ £ 2,855 (2,853) 109,547 (99,572) 112,402 (102,425) 29,478 (36,458) 141,880 (138,883) |
Transfers in/out £ 4,809 3,970 8,779 (8,779) - |
Balance at 30 Sept 2020 £ 577,311 89,742 667,053 1,293,826 1,960,879 |
|---|---|---|---|---|
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SOUTHBOROUGH LANE BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021
19. STATEMENT OF FUNDS (continued)
SUMMARY OF FUNDS - PRIOR YEAR
| Designated funds General funds Restricted funds |
Balance at 1 October 2019 £ 572,500 176,501 749,001 1,198,325 1,947,326 |
Income Expenditure £ £ - - 117,726 (106,653) 117,726 (106,653) 24,294 (24,811) 142,020 (131,464) |
Transfers in/out £ - (111,777) (111,777) 111,777 - |
Balance at 30 Sept 2019 £ 572,500 75,797 |
|---|---|---|---|---|
| 648,297 1,309,585 |
||||
| 1,957,882 |
20. ANALYSIS OF NET ASSETS BETWEEN FUNDS
ANALYSIS OF NET ASSETS BETWEEN FUNDS - CURRENT YEAR
| Unrestricted funds 2021 £ Tangible fixed assets 574,488 Current assets 101,762 Creditors due within one year (9,197) Creditors due in more than one year - 667,053 |
Restricted funds 2021 £ 1,363,166 18,160 (10,000) (77,500) 1,293,826 |
Total funds 2021 £ 1,937,654 119,922 (19,197) (77,500) 1,960,879 |
|---|---|---|
ANALYSIS OF NET ASSETS BETWEEN FUNDS - PRIOR YEAR
| Unrestricted funds 2020 £ Tangible fixed assets 572,912 Current assets 84,004 Creditors due within one year (8,619) Creditors due in more than one year - 648,297 |
Restricted funds 2020 £ 1,396,890 12,695 (12,500) (87,500) 1,309,585 |
Total funds 2020 £ 1,969,802 96,699 (21,119) (87,500) 1,957,882 |
|---|---|---|
Page 22
SOUTHBOROUGH LANE BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021
21. CAPITAL COMMITMENTS
During the year ended 30 September 2021 Southborough Lane Baptist Church completed the redevelopment of it buildings. This project which started in June 2019 consisted of the refurbishment of the rear hall and the development and refurbishment of the front hall. In addition, a new Audio-visual system was installed as well as a new church frontage which included the landscaping of the front of the church site.
The objective of the building works is to develop and enhance our children’s work as well as the work of our general ministry by making the buildings more accessible and community friendly.
At the date of signing the accounts outstanding commitments under the contract to re-develop the buildings totaled £6,468. Building works were signed off on 15 March 2022 when this final invoice was issued.
22. PENSION COMMITMENTS
The charity operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the charity in an independently administered fund operated by the Baptist Union. The pension cost charge represents contributions payable by the charity to the fund and amounted to £4,183. (2020 - £4,122). There were arrears of contributions at the year end of £120 (2020 - £120) which has now been cleared.
In addition to the present scheme contributions were made to an existing scheme referred to as The Defined Benefit Plan (The DB Plan) for employees in employment up to the plan's closure on 31 December 2011. Actuarial review indicates that the pension scheme is in deficit and deficiency payments are due from those churches who are in the scheme. The present level of payment is 12% of the employees' salary. During the year ended 30 September 2021 a total of £3,225 (2020 - £3,158) was paid into the closed scheme. Under arrangements entered into by the pension scheme trustees the employers deficit contributions will be cleared by 2028. Under present arrangements the annual deficiency payments payable during the year ended 30 September 2022 will be £3,695..
Page 23