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2020-12-31-accounts

Charity Registration No. 1129832

HARROW BAPTIST CHURCH

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

HARROW BAPTIST CHURCH

LEGAL AND ADMINISTRATIVE INFORMATION

Deacons
Trustees Linda Artus
Cristian Dubac
Barbara Etheridge Church Secretary
Doug Etheridge Church Treasurer
Carol Fox
Roger Hughes
Andrew Jackson (Revd) Minister
Julie Jackson-Hales Chair of Finance
Mark Jeffreys Chair of Fabric
Brian Leech
John Newby
Non-Trustees Lizzy Nkolobe Co-opted as advisor on COVID
Sue Whalley Minister in Training
Charity number 1129832
Registered office College Road
Harrow
HA1 1BA
Banks Barclays Bank Triodos Bank
Station Road Deanery Road
Harrow Bristol
HA1 2AW BS1 5AS
Independent examiner Nicholas Corden, Summers Morgan
First Floor, Sheraton House
Lower Road
Chorleywood
Hertfordshire
WD3 5LH
Investment management Rathbone Investment Management Limited
1 Curzon Street
London
W1J 5FB
Property management Carter Jonas
Mayfield House
56 Banbury Road
Summertown
Oxford
OX2 7DE

HARROW BAPTIST CHURCH

CONTENTS

Page
Trustees' report 1 - 9
Independent examiner's report 10
Statement of financial activities 11 - 12
Balance sheet 13
Notes to the financial statements 14 - 29

HARROW BAPTIST CHURCH

TRUSTEES' REPORT

FOR THE YEAR ENDED 31 DECEMBER 2020

The trustees present their report and accounts for the year ended 31 December 2020.

The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the Charity 's governing document, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable in the UK and Republic of Ireland published in October 2019.

Charitable objectives

The Charity is governed by an Approved Governing Document which states that the principal purpose of the charity is the advancement of the Christian faith according to the principles of the Baptist denomination to include the advancement of education, community service and such other general charitable purposes in such parts of the United Kingdom and the world as the church shall determine. In particular, the charity has the purpose of providing for the advancement of the Christian faith in Harrow and beyond, providing instruction for children, young people and adults in the Christian faith, holding public Christian worship, and having Christian fellowship with other Christians.

Governance

Harrow Baptist Church is an unincorporated charity.

The charity is governed in accordance with a Constitution dated 28 November 2008 supplemented by approved relevant notes, a copy of which is available to members of the charity.

The freehold of the church building is held on trust by the London Baptist Property Board, with the church having the beneficial ownership of the premises.

Public Benefit

When planning the church’s activities, the Deacons/Trustees have considered the Charity Commission’s guidance on public benefit and, in particular, the specific guidance on charities for the advancement of religion. The trustees consider that the charity is fulfilling its requirement to deliver a public benefit, as shown by:

The church’s worship services are open to all and we operate an open communion table. The church building is open for much of the week and the premises are used by, or hired to, people of all backgrounds. There is a strong emphasis on providing services to the local community. To allow this to happen, the church employs a warden (resident) and a deputy warden, both trained, to welcome our visitors, to allow the church to be open much of the week, and to provide security to visitors and the premises. All our activities are advertised on the Church website.

The church made its accommodation available to charitable and social causes at a fair cost to cover expenses. These included Rethink and Mind (mental health charities), Diabetes UK, Firm Foundation, and NHS Harrow. The church continued to support a number of charities by means of grants, especially Baptist Home Mission and BMS World Mission, Christian Aid, St Luke’s Hospice and ‘Embrace the Middle East’. Details are included in the Accounts. The church also raised funds for several other charities directly through coffee mornings, concerts, stalls, etc. and indirectly, by giving discounts on hall bookings.

Membership

Members are admitted in accordance with the provisions of the Constitution by vote of the Church Meeting on the basis of their profession of Christian faith, either by Believers’ Baptism or by affirmation. This year we have a membership of 90. The list of members and friends is carefully reviewed as required. Members are encouraged to assist the work of the church by volunteering to help in various organisations of the church.

Gas and electricity supplies and equipment were independently checked and all electrical appliances PAT tested. The lift was assessed by an independent assessor and reports sent to Munich RE, our maintainer.

Trustees

The managing Trustees of the charity are the Minister of the Church (appointed by the Church Meeting for an unspecified period), the Church Secretary and Treasurer and up to twelve deacons (appointed by the Church Meeting for a period of three years). The last election took place in March 2020. The Trustees meet at least nine times per year to review operations, the financial position and any developments to ensure the Church’s objectives are being fulfilled.

HARROW BAPTIST CHURCH

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Fraud Prevention

A Fraud Prevention and Tax Evasion policy is in place to ensure there will be greater awareness of the risks we face in this area, the necessary behaviours we expect from staff and volunteers and ways in which we are seeking to prevent fraud.

Data Protection

A Data Protection policy and procedures are in place to support our compliance with the General Data Protection Regulations (GDPR). This includes privacy notices and consent forms with on-line tools being used as much as possible for easier operation. The church is registered with the Information Commissioner’s Office.

Church Members’ Meeting

A meeting of Church members is held 6 times per year. One of the meetings incorporates the constitutional Annual Church Members’ Meeting to receive the annual accounts and report, to appoint an Independent Examiner, and to consider proposals for the strategy and vision of the church in the coming year, along with other appropriate matters. The Budget for the year is discussed and agreed at the first meeting of the year.

During the 2020 Covid-19 restrictions the Church Members’ Meetings were held electronically on Zoom. Votes were by show of “electronic hands”.

The Church Meeting has responsibility for the overall policy of the church, in accordance with the Constitution. Relevant matters may be submitted to the Church Meeting by the Trustees for guidance, or may be raised by members in a Church Meeting for further consideration by the Trustees.

Objectives and activities

Core activities

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 public community. The church’s aim is, by following Jesus’ example, to work to show God’s love to all through worship and service.

Public worship services are held every Sunday morning, usually at 10:30am with communion included on the first Sunday of the month. These were severely interrupted by the COVID-19 pandemic and the subsequent restrictions and lockdown. Following advice, it was agreed that the Minister would prepare the service as usual and make a video recording which could be shown on YouTube. To keep in contact with the congregation, after service Zoom meetings were arranged. Details of the sites were distributed by email. For those members who did not have access to the internet, the full order of service, including the sermon verbatim, was printed and sent by post, with the recommendation to read it at the same time as the usual service. This proved to be very successful, and we understand that members of the public, outside the church membership, used YouTube to join our service.

We were concerned that the church had to be aware of the issues affecting our members and the people of Harrow in general. Our Minister, Andrew, attended the church building on his own to “be there” for people. We were able to set up “WhatsApp” groups for members to keep in touch and these were well used. Other members called others who did not have access to the Internet with regular telephone calls.

When the Government relaxed the lockdown in August, it was decided to open in person services for a limited number. The first trial service was for 12 people on 6th September and proved successful. The church then set up an online booking system for access to the services. This added significant extra work for the Minister as he had to preach the service twice, once for the recording, and then the one live on Sunday morning. These services continued until the next lockdown in December.

HARROW BAPTIST CHURCH

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Sunday School

Sunday School in HBC consists of 3-8 year olds who attend Stars, and 8-13 year olds who attend Galaxy. For the first couple of months this year we followed the ‘Light Series’ written by Scripture Union. We had begun the meeting together for prayers of all the children in Stars and Galaxy, before we went to our separate lessons. This was building a sense of family into our group, and this sense of family continued when we moved online.

Our Sunday School closed in March due to Covid 19. In May 2020, we began an online zoom all-age Sunday School. All of the children attending Stars and Galaxy became part of the online Sunday School Community, and by the Autumn it was thriving. Teachers take it in turn to lead and cover different biblical topics each week. We try to involve the children as much as possible, and often ask them to prepare for Sunday School beforehand by completing a short activity. We play games, read books, do drama and quizzes as we aim to bring them into a deeper knowledge of God.

We pray that when lockdown finally ends, this community will move to Harrow Baptist Church and all the relationships that have been built up will continue to flourish.

Sunday Lunches

Sadly all Sunday lunches ceased in February due to the pandemic.

Church Flowers

Flowers provide an opportunity for anyone in the church to celebrate a special event or remember a loved one. They are also given to those who are sick, bereaved or unable to leave their home. During the lockdown there were no opportunities for our arrangers to place flowers in the church. Flowers were still sent to homes as appropriate.

Churches Together in Central Harrow (CTCH)

There are 5 Churches in our group: Our Lady and St Thomas (Roman Catholic), St John’s (Church of England), Trinity Church (United Reformed and Methodist), St Mary’s on the Hill (Church of England) and Harrow Baptist Church (HBC). The Churches Together Committee met just 2 times at the beginning of the year, due to Covid 19 restrictions. However, the clergy did work together to mark and celebrate important dates in the church calendar.

During 2020, before the March lockdown began, Churches Together shared in worship in the following ways: during the Week of Prayer for Christian Unity in January, a United Service at St. John’s Church and an afternoon with the Sisters at the Niland Centre with talks by ReGen, a local organisation promoting Christian education in schools. Trinity Church and from Ron Jeeves, the founder of the Harrow charity shop, Found. Money was raised for the World Day of Prayer featuring Zimbabwe, with a service hosted by St. Mary’s in early March. HBC organised and hosted a Lent course, How To Pray by Pete Greig, in February, March and April, though the last sessions of the course needed to continue on Zoom

To celebrate Easter, the clergy contributed and shared reflections on Zoom. Our Christmas Carol Service was also on Zoom.

HARROW BAPTIST CHURCH

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

4U

4U is a group of adults between the ages of 20-40 years who have grown and matured in this group for the last 10 years. Most now have families and this is a group where the children come to and play whilst the adults discuss and learn about the Bible and its application to everyday life. Often we will include the children in our activities making it a real family time.

We meet after church on the third Sunday in the month. We begin by having a picnic lunch together where we share food and have fellowship. Then we move to Room 4 for our study. Our minister has been taking us through a series of videos and related discussions entitled Jesus the Game Changer. These have been challenging us about how we relate our faith to such issues as democracy, equality, forgiveness and care. We met for 2 sessions in 2020, when we considered how our faith is to be practised in the midst of the community in which we live. Sadly we closed for the remainder of the year.

Coffee, Cake and Prayers

Coffee, Cake and Prayers met twice a month at a member’s house. It began with coffee, cake and a time of fellowship. The first meeting in the month was a Bible Study led by our Minister and the second meeting was learning about different aspects of prayer which will lead us to pray for our church more effectively.

In the Prayer meeting we have been thinking about different aspects of the Christian life... As we mature as believers, it is important we understand the Bible at an ever-deepening level so we might know the mind of the Lord for HBC, and pray in accordance with His will. Sadly, this group has not met since February 2020.

However, in its place we have held a number of Zoom courses. These included one on the Fruit of the Spirit and a further one called The Character Course.

Prayers

At the beginning of the year there were organised prayer sessions at 11am in the sanctuary of the church on Tuesdays and Thursdays. The sanctuary is open for quiet prayer and contemplation on most weekdays until 1 pm. During the pandemic, the prayer sessions moved to Zoom and continued throughout the year. When allowed, private prayer sessions were arranged for Monday and Thursday lunchtimes, with clear directions to prevent spread of COVID-19.

Publicity and Outreach

Our website www.harrow-baptist.org.uk provides a key source of information to our church members and wider community. Outreach to the community, good publicity for events and providing relevant and interesting information for visitors and church members are important. It is usually the first point of contact for those looking to join activities or book rooms. It also provides information on the Christian faith, which can be read by those who may not wish to come onto church premises. During the COVID-19 crisis the website has been an important means of information of the latest updates regarding church opening times and closures to church members, visitors, those who attend organisations in the church and those who would want to book rooms. Over 14,000 people from all over the world visited our website. This was an increase of 1000 from last year with an average of 38 people per day visiting the site. 40% were from the UK, 24% were from the USA and the remainder were from countries in all the continents. There were over 11,000 new visitors to our site, with an average of 31 new visitors each day, this was an increase of 4000 from last year. Nearly 39,000 pages were viewed during the year, an increase of 6000, the majority of these related to our Welcome page and information on our Covid updates although many other pages throughout the site were read.

HARROW BAPTIST CHURCH

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Korean Church

The church has forged strong links with a Korean Sungkyul church.

CHURCH ACTIVITIES AND COMMUNITY WORK

During the year, the church sought to serve the community in many different ways.

Badminton and Tennis

Badminton is played in the Large Hall on Monday and Thursday evenings.

The church has its own active tennis club with four all-weather tennis courts. The entrance is between 44 and 46 Bonnersfield Lane. There are around 65 adult and 25 junior members. Our Minister is President of the Tennis Club. Play has been very limited this year due to the pandemic, however during lockdowns members have had the opportunity to chat once a week via zoom .

The Church was unable to hold its annual picnic at the Tennis Club.

16th Harrow Brownies, Guides and Rangers

The 16th Harrow Brownies, Guides and Rangers meet at Harrow Baptist Church on Friday evenings until the lockdown. This continued on Zoom.

Brownies

The year started well with 15 girls regularly attending. In February, we joined with the other units in our district to celebrate Thinking Day, when we remember Guiding in other countries. When Covid restrictions closed all meetings, the Girl guiding Association gave us guidelines on how to keep the girls involved. We started using “Zoom” for meetings on a weekly basis doing interactive games and looked at the Innovation badge. For some, this was not enjoyed as the girls were already spending time online with home schooling. After the summer break we continued using Zoom, although our numbers have dropped. We are looking forward to 2021 when face to face meetings can begin again and the girls can renew their friendships.

Guides

We were fortunate to have one of our residential events just before we went into lockdown in March - the Winter Weekend when we stayed in a new Brownie house at Northern Heights, near Elstree. 20 Guides enjoyed the weekend, when we did various crafts, cooking and outdoor activities – zip wire and the climbing wall. The girls continue to enjoy cooking, crafts, challenges and badgework but of course we have had to do all this via Zoom. Girlguiding negotiated with Zoom and we have free Zoom sessions, which is really helpful. Sadly we have lost a few girls, as they don’t like Zoom. It’s hard for them when they are on-line all day for school. We are hoping they will return when we are able to meet face to face again.

HARROW BAPTIST CHURCH

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Rangers

Rangers were able to participate in the Winter Weekend in March just before 1st Covid Lockdown. Following that and for a year, Rangers have been meeting remotely via Zoom.

Christmas Greetings

Barbara Etheridge, the church secretary was unable to sit in the foyer to receive gifts as usual, however the congregation were very generous in sending cheques and bank transfers. £501 was raised for Baptist Home and World Mission, a total of £17,697 since 1993.

Christingle

We had a Christingle service on Zoom. Sunday School children were sent a Christingle kit.

Embrace the Middle East

The church continues to sponsor children/students from disadvantaged families in the Middle East. Cards, letters and gifts are sent at Christmas and Easter and we receive school reports and updated photos. The details of the Embrace activities are included in the church weekly notice sheet, and donations were received.

Operation Agri

Our Harvest Thanksgiving service was held on Zoom and concentrated on the Operation Agri video, Tanzania Time for Trees. Donations were sent to the church and £620 was raised and sent to the charity.

Coffee Mornings

Sadly, we were totally inactive for more than three quarters of the year, since the coffee mornings are totally dependent upon use of the halls being available to us, and as a result of the national lockdowns from mid-March the church premises have been closed for the purposes of our activities. There is, in consequence, very little to report.

We had, up to the time of closure, paid over our normal sum of £500 (plus donations) to the Cardio-Myopathy Association, although most of that sum was actually raised during the 2019 year. We had started collecting for London’s Air Ambulance Charity when the closure was forced upon us. However, we had managed to complete, in February and March, our annual two-week fundraising stint in support of Fairtrade Fortnight.

The organisation of the coffee mornings is overseen by a committee of volunteers. At the time of writing the committee has not taken a view on when, or even if, our activities can be resumed after the premises re-open, as it was agreed not to open discussions on a hypothetical basis. That debate will therefore take place only once the lockdown is lifted, but it should be noted that before the enforced closure we were finding it difficult to keep the coffee mornings staffed, and we had noted a very real and steady decrease in our customer base, so it is by no means certain that a re-opening of the church building would bring with it an automatic resumption of the coffee morning activities.

HARROW BAPTIST CHURCH

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Fairtrade Church

We continued to support Traidcraft and in February/March supported Fairtrade Fortnight by having the Traidcraft stall at the coffee mornings during these two weeks. The money raised at these coffee mornings was donated to Traidcraft. The lockdown in March closed the Church and so the monthly stalls were not available for the rest of the year.

FirmFoundation

FirmFoundation ran a drop-in session, on Monday afternoons, for people who are homeless or suffering from alcohol or drug addiction. They provided a hot meal, shower facilities, clean clothes and much-needed advice and help. During lockdown, there were occasional meetings to provide advice and medical help.

Harrow Music Club

Harrow Music Club is now in its 16th year and normally meets on the first Wednesday of each month (except August) in Room 4 of the Church. The aim of the Club is to promote the enjoyment and appreciation of recorded music. The outbreak of coronavirus and the consequent widespread lockdowns has meant that the club has not met since March 2020. During 2020 therefore we have had only three presentations, all by our own members and all very enjoyable. Our total membership for the year ended December 2020 remained at 11. At some point in the future the club will have to consider what its future holds and of course members’ wishes and concerns will be fundamental in arriving at any decision. Any ongoing Government advice and health and safety requirements implemented by the Church particularly relating to the use of venues will be key to any decision to proceed. In the meantime the Club remains grateful for the support of Harrow Baptist Church and its staff.

Harrow Street Pastors

Harrow Baptist Church has been the meeting point and prayer centre for the Harrow Street Pastors Scheme for several years. Traditionally patrols started at 10.00 pm on a Friday and concluded around 4.00am on the Saturday, returning at intervals during the night/morning for respite and refreshments. During the current Covid 19 restrictions the church has not been able to function in that way, although it still accommodates a cupboard-full of equipment, blankets and spare clothing awaiting the time when normal conditions can be resumed.

Zoom meetings, hosted by Quinton Stowell, are held most Fridays from 8.30 pm to about 9.45 pm so that the teams of Street Pastors and prayer pastors can keep in touch and continue to exercise a ministry of care and prayer for the homeless and other street users in Harrow. As lock-down conditions allow, restricted Street Patrols are now being undertaken starting and ending at the Debenhams car park. Since these overlap with the Zoom meetings, the Zoom meeting is kept in touch with the restricted Patrol and some members will remain on Zoom until the restricted Patrol ends around 10.30 pm. One member of the church is a trained Street Pastor and one was a frequent supporter as a prayer partner. The defibrillator owned by the SP’s (Street Pastors) is still located on the wall of the vestry and is available in an emergency when the church is open.

St Luke’s Hospice Charity walk

Due to the Covid pandemic the Long Distance Charity Walk for St Luke’s Hospice was cancelled. As Chris Hughes knew the hospice would be in even greater need of money, she undertook to walk a Million Steps before the end of May. She was very well supported and raised just over £2,500, which was paid directly to St Luke’s.

.

HARROW BAPTIST CHURCH

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Young Ones Toddler Group

The toddler group offers a space for parents/carers and children to meet in a friendly caring environment. Activities include creative opportunities, singing and free time with a range of toys and play equipment.

Many of the families live in flats in central Harrow, so appreciate the space to play and interact with each other. We began the school year in Sept 2019 averaging 40 children each week and finished in December with a Christmas story in the church alongside the pre-season school followed by a party.

Numbers were retained at the beginning of 2020 but by the beginning of March they had dropped due to reports of the pandemic, and we had to close when the church closed.

We have had some enquiries about re-opening, but this is a discussion to have when the church can open again. Any available information will be related via the church website.

College Road Pre-school

The church encourages the College Road Pre-school, which is run by fully-paid, trained staff, for children aged from 2 years 6 months to 5-years-old. They hire our premises every weekday morning during term time (at a significantly discounted rate, agreed with the Trustees). The church feels it is being an open door to the community by having a pre-school on our premises.

Emergency Rest Centre

Harrow Baptist Church is on Harrow Council’s list of Emergency Rest Centres .

Harrow Foodbank

There are regular donations to Harrow Foodbank and a collecting box for food items is prominently displayed in the church foyer.

Malcolm Craig Computer Group

This is for older people interested in improving their computer skills. There were no meetings in 2020 due to the Covid pandemic. It is unlikely that there will be any Computer Group meetings before 2022.

Walks

Church members organise various guided walks during the year. There were no walks in 2020 owing to the Covid pandemic. It is hoped that walks will resume in 2021.

Financial review

Treasurer’s Report, 2020

As has been commented before, 2020 has been a difficult year. However, there have been highlights on the Finance side. Many of our members responded well to the church’s request and arranged for their donations and tithes to be paid by bank transfer or cheque. It also gave an opportunity to target a few who were persuaded to allow the church to claim gift aid.

As the church was closed, there was no income from hall lettings. However, the Pre-school reopened early for children of essential workers, and were able to pay their rent. Our minister worked full time on full stipend. Our staff were put on furlough and some worked part time to support the Preschool, the private prayer sessions, and the general maintenance of the building. All were paid full salaries. We took advantage of the government’s furlough grants for the time that was not worked.

There was extra expenditure on anti-COVID sprays, signs and partitions.

It also gave an opportunity to get much needed redecoration of rooms which are normally fully booked. This is shown in the increased costs of maintenance in the accounts.

Although the accounts for the year show a significant deficit, the majority of this is due to the low value of our share portfolio. Discussions with our broker show that we can expect there to be a recovery during 2021.

Another shock for the church was the decision of the tenants of the shop in Malmesbury not to renew their lease in November 2020. It has left the church with limited income for 2021, and severe increased costs. The membership must decide what action to take with the property, but it is likely that we will try to sell and buy something more local, and helpful to the community in Harrow.

Free reserves at the end of the year, which comprise unrestricted and undesignated funds held in readily available assets amounted to £777,788 (2019 - £870,784).

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

HARROW BAPTIST CHURCH

The Trustees approved the Annual Report for 2020 by Zoom.

Barbara Etheridge Secretary Dated: 5 April 2021

Revd Andrew Jackson Minister

Doug Etheridge Treasurer

HARROW BAPTIST CHURCH

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF HARROW BAPTIST CHURCH

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

Responsibilities and basis of report

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

I report in respect of my examination of the charity’s financial statements carried out under section 145 of the 2011 Act . 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

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

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 financial statements to be reached.

Nicholas Corden ACA

for and on behalf of Summers Morgan

First Floor, Sheraton House Lower Road Chorleywood Hertfordshire WD3 5LH

Dated: 29 October 2021

HARROW BAPTIST CHURCH

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2020

Current financial year
Unrestricted Unrestricted
Restricted
funds
funds
funds
general d esignated
2020
2020
2020
Notes
£
£
£
Income from:
Donations and legacies
3
89,461
-
4,828
Charitable activities
4
15,918
-
183
Investments
5
54,604
-
-
Total income
159,983
-
5,011
Expenditure on:
Raising funds
6
8,052
-
-
Charitable activities
7
196,034
1,983
2,580
Total resources expended
204,086
1,983
2,580
Net gains/(losses) on investments
12
(367,644)
-
-
Net movement in funds
(411,747)
(1,983)
2,431
Fund balances at 1 January 2020
3,669,400
21,306
1,930
Fund balances at 31 December
2020
3,257,653
19,323
4,361		 Total
2020
£
94,289
16,101
54,604
164,994
8,052
200,597
208,649
(367,644)
(411,299)
3,692,636
3,281,337		 Total
2019
£
70,110
49,761
72,446
192,317
7,823
192,764
200,587
(143,877)
(152,147)
3,844,783
3,692,636

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

HARROW BAPTIST CHURCH

STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2020

Prior financial year

Unrestricted Unrestricted
Restricted
funds
funds
funds
general d esignated
2019
2019
2019
Notes
£
£
£
Income from:
Donations and legacies
3
67,314
-
2,796
Charitable activities
4
45,920
927
2,914
Investments
5
72,446
-
-
Total income
185,680
927
5,710
Expenditure on:
Raising funds
6
7,823
-
-
Charitable activities
7
187,252
1,600
3,912
Total resources expended
195,075
1,600
3,912
Net gains/(losses) on investments
12
(143,877)
-
-
Gross transfers between funds
(313)
1,280
(967)
Net movement in funds
(153,585)
607
831
Fund balances at 1 January 2019
3,822,985
20,699
1,099
Fund balances at 31 December 2019
3,669,400
21,306
1,930		 Total
2019
£
70,110
49,761
72,446
192,317
7,823
192,764
200,587
(143,877)
-
(152,147)
3,844,783
3,692,636

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

HARROW BAPTIST CHURCH

BALANCE SHEET

AS AT 31 DECEMBER 2020

Notes
Fixed assets
Tangible assets
13
Investment properties
14
Investments
15
Current assets
Debtors
16
Investments
17
Cash at bank and in hand
Creditors: amounts falling due within
one year
18
Net current assets
Total assets less current liabilities
Income funds
Restricted funds
19
Unrestricted funds-general
Designated funds
20
General unrestricted funds		 2020
£
£
1,960,542
500,000
603,715
3,064,257
14,740
193,788
12,752
221,280
(4,200)
217,080
3,281,337
4,361
19,323
3,238,330
3,257,653
3,281,337		 2019
£
£
1,977,310
800,000
653,944
3,431,254
21,841
193,830
49,194
264,865
(3,483)
261,382
3,692,636
1,930
21,306
3,648,094
3,669,400
3,692,636

The financial statements were approved by the Trustees on 5 April 2021

Doug Etheridge Trustee

HARROW BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

Charity information

Harrow Baptists Church is an unincorporated Charity registered with the Charity commission in England and Wales (number 1129832) ; its principle address is detailed within the legal and administration section of the trustees report.

1.1 Accounting convention

These accounts have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”), “Accounting and Reporting by Charities” the Statement of Recommended Practice for charities applying FRS 102, the Charities Act 2011 and UK Generally Accepted Accounting Practice as it applies from 1 January 2015. The charity is a Public Benefit Entity as defined by FRS 102.

The accounts are prepared in sterling , which is the functional currency of the Charity . Monetary a mounts in these financial statements are rounded to the nearest £.

1.2 Going concern

At the time of approving the accounts, the trustees have a reasonable expectation that the Church has adequate resources to continue in operational existence for the foreseeable future. Thus the Church continues to adopt the going concern basis of accounting in preparing the accounts.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the accounts.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.

1.4 Income

Income is recognised when the church is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the church has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected.

1.5 Expenditure

Expenditure is recognised on an accruals basis. Grants and donations paid are accounted for when paid out.

HARROW BAPTIST CHURCH

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

1 Accounting policies

(Continued)

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off cost less estimated residual value of each asset over its expected useful life, as follows:

Land and buildings 1% on freehold buildings Plant and machinery between 10% and 33% Fixtures, fittings & equipment between 10% and 33%

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.

1.7 Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.

1.8 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year . Transaction costs are expensed as incurred.

1.9 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.10 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

HARROW BAPTIST CHURCH

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

1 Accounting policies

(Continued)

Basic financial liabilities

Basic financial liabilities, including trade and other payables, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.11 Employee benefits

None of the trustees have been paid any remuneration or received any other benefits from an employment with their charity or related entity.

1.12 Tax Status

Harrow Baptist Church is a registered charity and therefore it is not assessable to income tax on any charitable funds with the scope of Section 505 of the Income and Corporation taxes Act 1988.

2 Critical accounting estimates and judgements

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

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

HARROW BAPTIST CHURCH

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

3 Donations and legacies

Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds
general general
2020 2020 2020 2019 2019 2019
£ £ £ £ £ £
Donations and loose
cash 10,463 4,828 15,291 11,050 1,853 12,903
Gift aided donations 43,484 - 43,484 42,298 643 42,941
Gift aid Refund 14,888 - 14,888 9,795 - 9,795
Donations from
organisations 5,290 - 5,290 3,902 300 4,202
Furlough grants 15,336 - 15,336 269 - 269
89,461 4,828 94,289 67,314 2,796 70,110
Charitable activities
Unrestricted
Restricted		 Total Unrestricted
funds
funds		 2020 funds
2020
2020		 2019
£
£		 £ £
St Luke's coffee morning -
183		 183 827
Other coffee mornings 492
-		 492 2,087
Lunches and suppers 191
-		 191 460
Hall bookings 15,235
-		 15,235 46,027
Other -
-		 - 360
15,918
183		 16,101 49,761
Analysis by fund
Unrestricted funds - general 15,918
-		 15,918 45,920
Unrestricted funds - designated -
-		 - 927
Restricted funds -
183		 183 2,914
15,918
183		 16,101 49,761

4 Charitable activities

HARROW BAPTIST CHURCH

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

5 Investments

Unrestricted Unrestricted
funds funds
general general
2020 2019
£ £
Rental income 32,400 40,400
Income from listed investments 16,284 30,496
Interest receivable 5,920 1,550
54,604 72,446
Raising funds
Unrestricted Unrestricted
funds funds
general general
2020 2019
£ £
Investment management costs 8,052 7,823
8,052 7,823

6 Raising funds

HARROW BAPTIST CHURCH

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

7 Charitable activities

Charitable Charitable
Activities Activities
2020 2019
£ £
Staff costs 67,426 70,820
Depreciation and impairment 16,768 17,186
Ministry 45,642 44,968
Visiting ministers 100 1,050
Organist/pianist 700 2,430
Mission 1,726 4,665
Fees 3,990 1,165
Insurance 10,464 9,066
Office costs 1,547 2,989
Maintenance 19,956 4,857
Heating and light 12,443 12,917
Other 36 150
180,798 172,263
Grant funding of activities (see note 8) 10,341 13,076
Share of support costs (see note 9) 5,258 5,213
Share of governance costs (see note 9) 4,200 2,212
200,597 192,764
Analysis by fund
Unrestricted funds - general 196,034 187,252
Unrestricted funds - designated 1,983 1,600
Restricted funds 2,580 3,912
200,597 192,764

Ministry costs comprise the salary of the minister and the costs of the manse.

HARROW BAPTIST CHURCH

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

8 Grants payable

Charitable Charitable
Activities Activities
2020 2019
£ £
Grants to institutions (22 grants):
Baptist World Mission (BMS) 5,380 -
Home mission 2,841 -
Biblelands 1,500 -
Other 620 13,076
10,341 13,076

9 Support costs

Support
costs
Governance
costs
£
£
Office Costs
5,258
-
Cleaning Contract
-
-
Independent
examination
-
2,040
Accountancy
-
2,160
5,258
4,200
Analysed between
Charitable activities
5,258
4,200		 2020
Support
costs
Governance
costs
£
£
£
5,258
3,648
-
-
1,565
-
2,040
-
2,212
2,160
-
-
9,458
5,213
2,212
9,458
5,213
2,212		 2019
£
3,648
1,565
2,212
-
7,425
7,425

10 Trustees

None of the trustees (or any persons connected with them) received any remuneration during the year.

HARROW BAPTIST CHURCH

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

11 Employees

The average monthly number of employees during the year was:

Minister
Mission and administration
Total
Employment costs
Wages and salaries
Social security costs
Other pension costs		 2020
Number
1
4
5
2020
£
89,559
6,828
13,555
109,942		 2019
Number
1
4
5
2019
£
91,508
6,710
13,260
111,478

There were no employees whose annual remuneration was £60,000 or more.

12 Net gains/(losses) on investments

Unrestricted Unrestricted
funds funds
general general
2020 2019
£ £
Revaluation of investments (360,782)
(200,000)
Gain/(loss) on sale of investments (6,862)
56,123
(367,644)
(143,877)

HARROW BAPTIST CHURCH

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

13 Tangible fixed assets

Cost
At 1 January 2020
At 31 December 2020
Depreciation and impairment
At 1 January 2020
Depreciation charged in the year
At 31 December 2020
Carrying amount
At 31 December 2020
At 31 December 2019		 Land and
buildings
£
1,924,472
1,924,472
19,126
1,676
20,802
1,903,670
1,905,346		 Plant and
machinery
£
134,381
134,381
82,453
8,280
90,733
43,648
51,928		 Fixtures,
fittings &
equipment
£
288,823
288,823
268,787
6,812
275,599
13,224
20,036		 Total
£
2,347,676
2,347,676
370,366
16,768
387,134
1,960,542
1,977,310
14
Investment property
Fair value
At 1 January 2020
Net gains or losses through fair value adjustments
At 31 December 2020		 2020
£
800,000
(300,000)
500,000

Investment property comprises shop premises in Malmesbury. The fair value of the investment property has been arrived at on the basis of an informal estimate of value by a local firm of Chartered Surveyors, who are not connected with the charity. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.

If investment properties were stated on an historical cost basis rather than a fair value basis, the amounts would have been included as follows:

Cost
Accumulated depreciation
Carrying amount		 2020
£
246,430
-
246,430		 2019
£
246,430
-
246,430

HARROW BAPTIST CHURCH

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

14
Investment property
Freehold
Long leasehold
Short leasehold
15
Fixed asset investments
Cost or valuation
At 1 January 2020
Additions
Valuation changes
Disposals
At 31 December 2020
Carrying amount
At 31 December 2020
At 31 December 2019
16
Debtors
Amounts falling due within one year:
Other debtors
17
Current asset investments
Unlisted investments		 (Continued)
2020
2019
£
£
250,000
400,000
-
-
-
-
Listed
investments
£
653,944
66,817
(58,661)
(57,654)
604,446
604,446
653,944
2020
2019
£
£
14,740
21,841
2020
2019
£
£
193,788
193,830

HARROW BAPTIST CHURCH

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

18 Creditors: amounts falling due within one year
2020 2019
£ £
Accruals and deferred income 4,200 3,483

HARROW BAPTIST CHURCH

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

19 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Movement in funds Movement in funds Movement in funds Movement in funds
Balance at Incoming Resources Transfers Balance at Incoming Resources Balance at
1 January 2019 resources expended 1 January 2020 resources expended 31 December
2020
£ £ £ £ £ £ £ £
Embrace Middle East - 760 - 25 785 1,163 - 1,948
Baptist World Mission (BMS) 8 613 (576) - 45 1,380 (1,380)
45
Baptist Union Home Mission - 97 (81) - 16 961 (961)
16
St Lukes General - 100 - - 100 210 - 310
St Lukes Coffee morning 41 826 - - 867 183 - 1,050
Other intitutions 1,050 3,314 (3,255) (992)
117		 1,114 (239)
992
1,099 5,710 (3,912) (967)
1,930		 5,011 (2,580)
4,361

HARROW BAPTIST CHURCH

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

20 Designated funds

The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:

Movement in funds Movement in funds
Balance at Incoming Resources Transfers
Balance at		 Resources Balance at
1 January 2019 resources expended 1 January 2020 expended 31 December
2020
£ £ £ £
£		 £ £
Christmas
Fund 950 927 - -
1,877		 (1,827)
50
Evening
Collection 2,667 - (300) -
2,367		 (156)
2,211
Florence
Nurse Fund 17,032 - - -
-		 - -
Reserves
and Legacies
30		 - - -
17,032		 - 17,032
Maintenance
Fund 20 - (1,300) 1,280
30		 - 30
20,699 927 (1,600) 1,280
21,306		 (1,983)
19,323

The Christmas Fund covers our activities over a Christmas period, sale of cards, cakes and handicraft which can be purchased by visitors as well as members. The membership can also exchange Greetings on the Church notice board, and make a gift instead of postage. It has been a tradition that these funds should be given to Charities, and the Church Members continue to uphold this tradition. Thus these gifts are collected in this fund and allocated during the year. In 2020, with the COVID restrictions, the church had no events, so no additional income .

The Evening Collection is another continuing tradition. Whenever the church has an evening service, less often these days, there is a closing voluntary collection. This fund is used to support special or urgent requests for funds by a charity in need. It is not often used, and was not added to in 2020. However the church considers this an important fund.

The Reserves and Legacies, as the name implies, is a fund set up to take any legacies the church receives. Yet another tradition is that a legacy should not just be added to the general fund and should be used for a specific activity to help the church meet its objectives. For instance the chairs in our meeting room were provided from this fund. The “Reserves” in the title are the remnants of any other fund which was unspent on the task. An example is the money in the Boiler Fund which was not used. It is likely that as the Maintenance Fund has not been used it will become part of this during 2021.

HARROW BAPTIST CHURCH

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

21 Retirement benefit schemes

The Church is an employer participating in a pension scheme known as the Baptist Pension Scheme (“the Scheme”). The Scheme is a separate legal entity which is administered by the Pension Trustee (Baptist Pension Trust Limited).

The Minister and some members of the church staff are eligible to join the Scheme.

Since January 2012, pension provision has been 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. In addition, the employer pays a further 4% of Pensionable Income (or 3% if the employer is in the segregated DC section) 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 Aviva. Members of the Basic Section pay reduced contributions of 5% of Pensionable Income, and their employers also pay a total of 5%.

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.

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%). As a result of the valuation, in addition to the contributions to the DC Plan set out above, it was agreed that the standard rate of deficiency contributions from churches and other employers involved in the DB Plan will remain at previously agreed levels, increasing each year in line with increases in the Minimum Pensionable Income. The deficiency contributions are broadly based on 12% of Pensionable Income/ Minimum Pensionable Income, reflecting each employer’s contributions in March 2015. Some employers that were involved in the DB Plan for a short period pay lower contributions. The Trustee and the Council agreed a 50% reduction for all deficiency contributions payable between 1 July 2020 to 31 December 2020.

In addition, the Baptist Union of Great Britain agreed to contribute a lump sum of £0.5m by 31 December 2020. The current Recovery Plan dated 30 September 2020 envisages deficiency contributions continuing until 30 June 2026.

The key financial assumptions underlying the valuation were as follows:

Type of assumption % pa RPI price inflation assumption 3.20 CPI price inflation assumption 2.70 Minimum Pensionable Income increases (CPI plus 0.75% pa) 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 2.70

As there is a large number of contributing employers participating in the Scheme, the Church is unable to identify its share of the underlying assets and liabilities of the scheme. Accordingly, due to the nature of the Scheme, the profit and loss charge for the period represents the employer contributions payable. The total pension cost for the Church is £13,555 (2019 £ 13,260 ).

T he next actuarial valuation of the DB Plan within the Scheme is due as at 31 December 2022.

HARROW BAPTIST CHURCH

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

22
Analysis of net assets between funds
Unrestricted
funds
Designated
funds
Restricted
funds
2020
2020
2020
£
£
£
Fund balances at 31 December 2020 are
represented by:
Tangible assets
1,960,542
-
-
Investment properties
500,000
-
-
Investments
603,715
-
-
Current assets/(liabilities)
193,396
19,323
4,361
3,257,653
19,323
4,361		 TotalUnrestricted
funds
Designated
funds
2020
2019
2019
£
£
£
1,960,542
1,977,310
-
500,000
800,000
-
603,715
653,944
-
217,080
238,146
21,306
3,281,337
3,669,400
21,306		 Restricted
funds
2019
£
-
-
-
1,930
1,930		 Total
2019
£
1,977,310
800,000
653,944
261,382
3,692,636

HARROW BAPTIST CHURCH

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

23 Related party transactions

There were no disclosable related party transactions during the year (2019 - none).