Report of the Trustees and Unaudited Financial Statements for the Year Ended 315t Drnber 2023 for Testwood 8aptlst Churth
Testwood Baptist Church Contents of the Financial Statements for the Year Ended 31st December 2023 Page Reference and AdmInIratIVe Detalls Report of the Trustees 2 to 6 Independent Examiner's RÈp4>rt Statement of Finanaal Actlvttles Balance Sheet Notès to the Financial Statements 10 to 19
Testwood Baptist Church Reference and Administrative Details for the Year Ended 31st December 2023 TRUSTEES The Revd M Huckle (Senior Pastor) Mr H Francis (Treasurer) Mrs M Murray Mr P Pikè Mr C Ridout Mr J Frowd Mr R King Mr A Price Mr N Tuck Mr M Hones The Revd J A Shepherd IAssociate Pastor) (appointèd 1.7.231 PRINCIPALADDRESS 2833 Salisbury Road Totton Southampton $040 3LZ REGISTERED CHARITY NUMBER 1129913 INDEPENDENT EXAMINER Sheen Sticklarhd Chartered Accountsnts 2 Oriel Court Omega Park Alton Hampshire GU34 2YT BANKERS Uoyds Bank plc 30 Commercial Road Tottorb Southampton PROPERTYTRUSTEES The Baptsst Union Corporation Limited Baptist House 129 Broadway Didcot Oxfordshire OX118RT Page I
Testwood Baptist Church Report of the Trustees for the Year Ended 31st December 2023 The trustee5 present their Annual Report and financial statements in respert of the year ended 31st Dember 2023. OBJECTIVES AND ACTNrnES Charitable Object The Charity is governed by an Approved Governing Document dated 20th March 28 which states that the princlpal purpose of the charity is the advancement of the Christian faith accoiding to the princsples of the Baptist denomination to include the advancement of education. community Servi and such other general charitable purposes in such parts of the United Kin8dom and the world as the Church shall determine. The Church occupies premises, which are held by the Baptist Union Corporation Ltd. on Tnjsts which are entirely compatible with the abovè object. Pa8e 2
Testwood Baptlst Church Report of the Trustees for the Year Ended 315t December 2023 OBJEcfivES AND A1V[rIEs Objectives and Activities In order to achieve the principle objective which is set out above. the Churth provides a varTety of acttvities both to its membersFtip and to the community generalty. The aim is to show the love ofJesu5 Christ in both word and deed and to bring people Into a closer relationship with Him as living Lord. Central to the work and wttness of the Church is the provision of regular public services of Christian worship. These services normally take place in person each Sunday at both 9.30am and 11.15am in the morning and 7.IK)pm in the evenrng. As well as the normal face to face services. as a legacy of Covid, we have further developed our on line capability through the extraordinary teamwork of both staff and volunteer5. In doirbg 50 we reach not only our own ommunity but many more beyond our kxal community. There are also occasional seNices at other times which are advertised on the Church Notice Board. weekly Church Newsletter and the website at www.testwoodbaptist.org. There is usualW a full children'5 programme during the morning services. The Church seeks to be a friendly and welcominB community and everybody is free to attend any of these services. The Church runs a series of house groups for the growth of faith and disCipshiP in the home5 of some members. and further details of these tan be obtsined from the Tnjstees on request. or at any Sunday services of worship. The majority of the groups meet in emberS homes but some continue to use Zoorn, a skill developed during Cowd. House groups provide an excellent support function. The Church is respon5ib5e for a Babies and Toddlers group which meets in the Church premises on Friday mornings, with the purpose of a5S15tingthe community and demonstrating the love oflesus Christ, see TBC Friday below. The Church hosts a very popular State Registered Pre-school which provides Prtrschool education and is available to the whole communitv. The Church runs various events for Young People, including Gid5 Brigade and Youth aubs. as well as groups for those with disabilities. The Church operates systems to ensure that all people workiThg wtth children and vulnerable adults are appropriately vetted with regard to the Disclosure and Barring Ser*ice and safeguarding legislation. See TBC Fridays. The Church has active links woth the local schools and colleges. TBC Fridays launched in September 2021 has continued to go from stren8th to Stn8th- this is a community day for all the family. There are groups for parents and tots. kids, and youth at variou5 times throughout the day. This provide5 great opportunity for parents to come and bring children. hang out with oiher parents and enjoy a nice coffee and a chat. Each week there are drfferent types of activities. Friday Tots run from 10am to 11.30am, Friday Kids Ifor prirn3ry aged children) 5.30pm to 6.45pm and Friday Youth Isecondary age) 7.30pmto 9.Wpm. TBC Fridays has been very successful arbd 4(>80 families attend Friday Tots sessions each week, and on average 100 Kids attend Friday Kids and 100 attend Friday Youth. To enhan this rninistry we employed a Community Pastor and re grateful for the support of Baptist Insurance th this. on a year the Church turn5 Out in forte to run and support the local Totton Family Fun Day which is attended by over 5,000 local inhabitants. The airn 15 to provide a free day of famity fun for everyone. an expression of God's love to the local tommunitv. The Church operates a food parcel facility. "basics bank-. in association with Youth and Familiès Matter, giving emergency food parcels to those identified as in need. Referrals are often received from local agencies through voucher scheme. Ba51C5 Bank supported 2.505 adults and children during 2023. The local community continued to heavily support this project. as well as many organisations and supermarkets, both with food and finan. Page 3
Testwood Baptlst Church Report of the TfUStee5 for the Year Ended 31st December 2023 OBJEcllvES AND AcllviTIE5 The Church normally runs a "Worn &gain- event whereby the local community (an come and selert a Set of clothes lor 50p from the vast amount of'good but used- clothe5 that have been donated by its members arhd other members of the public. These events are open to all the community. Public bÈnÈfit The trustees confinn that they have referred to the Charity Commission's guidaTh on public benefit, and in particular the specific guidance on charilies for the advancement of reliwon. when reviewiThg the aim5 and objective5 of the Church and in planning futuie activities. The trustees believe that the many and varied activities of the Church as detailed above provide both religious and practical care and support both lor the membership and the wider local community. ACHIEVEMENT AND PERFORMANCE Achievements and Performante The Church does not measure the success of r(S Pfogrammes only in numbers, includin8 financial numbers, but also in le55 tarbgible areas like fellowship. encouragement and wellbeing. The Trnstees recogni5e thal these are difficult to measure, but bèlievè that the church brings positNe outcomes to peoples INes. During the year 22 people were eNed into formal church membership and 3 people came out of membership having moved and started worshipping nearer to their new homes. At 31st Dember 2023 the formal membership stood at 303. The Church continues to be much encouraged by its local MP. Town countillor& Heèd Teachers. and other community leaders. who are very p051tive about the Church's impact on the communtty. espeoally the Fun Day which provides day of family fun (including loodl, without charge and 15 therefore accessible by every member of the communitv. Page 4
Testwood Baptist Church Report of the Trustee5 for the Year Ended 31st December 2023 FINANCIAL REVIEW Financial Review The Church continues to raise fund5 which rt need5 to carry on its artivities frorn within its own membership and Congregation. No wider public appeal wa5 made for fijnds forthe church during the year. The most significant ongoing expenses relate to staff costs to support thè ministry of the church and maintenance of the church facilities to support our ministry. The Church expressed its part in the life of the wider churth by making grants to national and international organisations and Societies with Christian aims and objectbves compatible the church's own charitsble purpose. The Church is heavily dependent on its membership working as volunteers in all aspects ol the church's activitie5, many of which run wÈth little or no impact on the church's expendsture. but nevertheless contribute substantially to the achievement of the church's objectwe5. The finantial results for the year. together with a summary of the accounting pol¢cies adopted are set out in the accompanying financial ststÈments. The undèrlying financi31 position remained stable and healthy throughout 2023. The church does not have any outstanding 3rnount5 due on the building and we are mindful of the ongoing need to maintain the upkeep of our well used faciltties. The church also benefrted from the agreement which the Baptist pension scheme signed on 30th June 2022 with insurance company Just Group I'just") to secure DB Plan members. benefits. Just are now providing financial backing for all pen5ion5 provided though the Scheme's DB P5an and following this transaction, the Scheme no longer has a shortfall. An updated recovery plan was then signed in August 2022 under which recovery contribution5 from each participating employer irb the DB Plan (including the church) reduced to £1 per month from August 2022. Reserves The Trustees coniinue to seek to apply the Reserves policy which balance5 the ongoing commitments of the church with the known levels of regu5ar committed giving and ensuring that the main goal remains to utilise the church resources to meet our objectives.The Trustees continue to monitor the levd of re5eNes to ensure that thi5 objective 15 fulfilled. The Trustees consider that the current level of reserves to be appropriate in the current circumstances. Risk Management The Trustees have made an assessment of the major risks faang the church and are satisfied that there are policies and procedures in place to minimise these risks. srRUCTURE. GOVERNANCE AND MANAGEMEI Organisational Structure and Decision Making Process The Members of the church are accepted in accordan with the Constitution. Church membership is open to all those who have made a public profession of faith in Jesus Christ by being baptised by immersion and who accept the belief5 of the Church. Those who have not been so baptised may still be accepted for membership at the discretion of the Church Members Meeting based on their public PrOfeOn of faith. All applications for membership are subject to acceptance at the Church Members Meeting. Members Meetings normally take place four times a year and have responsibility for the overall polity of the church. In accordance with the Constitution. the members appoint a number of Trustees, (currently 111. including the Senior Pastor, and Treasurer (who are also appointed by the members), and c01lettive known as the Leadership Team. They are responsible for the day io day running of the church's work and witness. and the financial and legal aspects of the charity. All member5 are encouraged to take an appropriate part in the spiritual and practical tasks involved in the furtherance of the charitable objectNe. Relevant matters may be submitted to the Church meeting by the Trusteesfor guidance or may be raised by members in Church meeting for further consideration by the Trustees. Though the Constitution permTt5 decision5 to be made at Church meetings by appropriate majorities. the Church seeks to work by consensus wherever possible. Pagè 5
Testwood Baptist Churth Report of the Trustee5 for the Year Ended 315t Dember 2023 174h oJ.fft.*.rf..1o... andsiwl on Tts behaLfby: Approved by ord¥ofthe [d ol trLee$ on... . Mr H Francis-Trustee Page6
Independent Examiner's Report to the Trtee5 of Testwood Baptist Church Independent e¥zminer's report to the trustees of Testwood Baptist Church I report to the charity trustees on my examination of the accounts of Test*ood Baptist Church (the Trust) for the year ended 31st December 2023. Responsibilities and basis ol report As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charrtie5 Act 20111.the Art'l. I report in respett of my examination of the Trust's accounts carried out under Section 145 of the Act and in carrying out my examination I have followed all applicable Dirertion5 given by the Cornmission under Sertion 14515llbl of the Act. Independent examinerfs Statement Since your charity's gr05s income exceeded £250,CKKI your examiner must be a mernber of a listèd body. I can confirm that l am qualified to undertake the examination because l am a member of Institute of Chartered Accountants in England and Wales, which is one of the listed bodie5. I have completed my examination. I confim) that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respert: accounting records were not kept in respect of the Twst as required by Sertion 130 of the Act,. or the accounts do not accord with those records.. or the accounts do not comply with the applicable requirements conwning the fomi and content of accounts set out in the Charities IAccounts and Reports) Regulations 2(KTr8 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 ofthe accounts to be reached. D A Sanders 8A (Honsl FCA Sheen Stitkland Chartered Accountants 2 Oriel Court Omega Park Alton Hampshire GU34 2 Date: Page 7
Testwood Baptlst Church Statement of Financial Activities for the Year Ended 31st December 2023 2023 Total funds 2022 Total funds Unrestricted Restricted fund funds Notes INCOME AND ENDOWMENTS FROM Donations and legacies 376,716 11.015 387,731 332,159 Charitable activities Charitable activities 4,945 4.945 4,019 Investment income 221 221 13 Totsl 381.882 11.015 392.897 336,191 EXPENDITURE ON Charitable artivities Ministry Establishment Mission The Hub Governance costs 230.441 93.(MXI 55.4EAI 1.573 6,030 11.015 21.649 995 241.456 114,649 56,455 1,573 6,030 192,131 118,071 28,760 1,125 6,704 Totsl 386,504 33,659 420,163 346,791 NET INCOME/IEXPENDrruREI 14,6221 122,6441 127,2661 110.6001 RECONCILIATION OF FUNDS Total funds brought fo¥ward 133.121 748.IYJ5 881.216 891,816 TOTAL FUNDS CARRIED FORWARD 128.499 T15.451 853,950 881,216 The notes form part of these financial statements Page 8
Testwood Baptist Church Balance Sheet 315t Dember 2023 2023 Total funds 2D22 Totsl funds Unrestricted ReStd fijnd fvnd5 Notes FIXED AS5ET5 Tangible a5sels li 102M12 725,451 827.453 853.124 CURRENT ASSEIS Debtors Cash at bank 12 13.033 19 13,033 19.864 14,776 19,416 31897 31897 34.192 CREDrroRS Amounts fallingd&with1n one year 14 16.4tM)I 16.4(K)I 16,ItKJl NEf CURRENT ASSETS 26.497 26.497 28,092 TOTALASSEfs LESS CURRENT LIA8IUTIES 128.499 725,451 853,950 881.21S NET A55Ef5 128.499 725A51 853,950 881,2L6 FUNDS Unrestricted funds Restricted funds 128,499 725.451 133.121 748.095 TOTAL FUNDS 853,950 881.216 The financial statements We appre by the Bo*d of Tru5tee5 and authorised for Issue on . and were sjned on its behalf bv= Mr H Francls-Tru5tee The notes form part of these finarKial statema)ts Page 9
Testwood Baptlst Church Notes to the Financial Statements for the Year Ended 31st December 2023 ACCOUNTING POUaES 83$1$ of preparing thè flnandal statements The accounts of the charity which is a public benefit Èntity under FRS 102, have been prepared in accordan with "Atcounting and Reporting by Chaiities= Statement of Recomftiended Prartice applicable to charities preparing their accounts in accordance wtth Financial Repothng Standard applicable in the UK and Republic of Ireland IFRS 1021 leffective 1st January 20191 (Chartties SORP IFRS 10211. and the Charities Act 2011. The financial statements have been prepared under the historical cost convention. The attounts have been prepared on a golng concem basis. In the opinion of the trustees, theré are no materièl uncertainties in regard to the Charity's ability to continue a5 a going concern. The trustees do not consider that the effects of the conflict in Ukraine. the Middle East or the current economic 51tuatitsn will impact on the charity's ability to continue to operate. Income retognltlon and donatlons All incoming re50urees are included in the Statement of Financial ArtNitie5 when the charity i5 legally entitled to the incorne after any Performan conditions have been met. the amount can be measured reliably, and it 15 probable the income will be recetved. Donations are accounted for gross when received. Investment income Investment income 15 induded in thè accoLbnts in the year in which IE is receivable. Expenditure reco8nition AIS expenditure is accounted for on an accrua15 basis. Expendtture ts recognised where there is a legal or constructive obligation to make payments to third partie5. It is Probable that settlement will be required. and the amount of the obligation can be measured reliably. Grants payable The church makes grants and donations to other organisations and indiMdua15 whose charitable objectives complement its work. They are accounted for in the year in which they are paid. Support Costs Support Costs are those that assist the work of the church but do not directly represent charitable attivities and rdate to governance t05t5. This represents direct expenditure on the governance of the church. Most of the management is carried out without charge by volunteers. This intangible cost is t)ot included in the Statement of Financi31 Atiivities since there is no measurable cost to the volunteers for their service. Tangible fixed assets The original church buildings are considered to be inalienable and historic fixed assets and are excluded from the balance sheet because reliable c05t information is not available. and valuatiot) would incur significant costs which would be onerous compared to the 3ddition31 benefit gained by the users of the accounts. The Insuran value of the premises is £5.938.393 which includes the new church building which was completed in December 2007. The manse premises are rtated at cost and depreckition has noi been charged, because in the opinion of the trustees, the ressdual value of the asset is not less than the original c05t price. Fumiture and equipment in the church premises are included at cost or net realisable value. Items of equipment are tapit31ised where the purchase price exceeds £5W. As stated above. depreciation has not been charged on the manse premises. Depreciation on other fixed assets is calculated to write off the coston a straight_line basis over their expected useful life at the following rates= Fumiture and fittings Computers and equipment 33% Page 10 continued...
Testwood Baptlst Church Notes to the Financial Statements- continued for the Year Ended 31st December 2023 ACCOUNTrNG POLiaES- continu Tanglble flxed assets New Church Building 2% Taxatlon The charity is exempt from tax on tts charttable actNitie nds Unrestrlcted funds are available for use at the discretion of the tnJsteÈs in furtherance of the genèral objectives of the charity and which have not been designated for other purposes. Restricted Funds relates to the 'Building Fund. which was established for a new church building and hence are capital items and the Gordon Tuck Fund which was set up to hold donations given in memory of Gordon Tuck. The fund5 are used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The church received a 8rant of £11,015 from Baptist I[uranCe toward5 the cost of ernploying a Community Pastor. which was feceived and expensed durin8 the year. Pension tosts and other post-retiremerrt beneffts The pension Costs charged in the accounts present the contributions payable by the church during the year in accordance with FRSIO2. Under FR5102 employers that participate in multi-employer defined benefit schemes where there is insufficient information to do full benefit accounting and Whe the employers are not under common control need to recognize a liability to make payments to fund any deficit. This liability was required to be recognized for the first time in the accounts for the year ended 31 December 2016. As. however, this information was not available when the 2016 accounts were prepared no such liability was recognized ai this time. Provision for the full liability due as at 315t December 2017 was trèated as an expense in the 2017 account& Following the agreement with lust Group to secure the the benefrts of the members of the defined benefit scheme. no liability is required to be reco8nised in the accounts and the reduclion Fn the liability as a result of this transaction has been deducted from expenses in the 2022 account5. DONATIONS AND LEGACIES 2023 2022 Offerin8 and donations Gift aid 334,834 52,897 282,181 49,978 387.731 332.159 Page 11 continued...
Testwood Baptist Church Notes to the Flnancial Statements- contlnued for the Year Ended 31st December 2023 INVESThIENT INCOME 2023 2022 8ank interest 221 13 INCOME FROM CHARiTABLE ACTMTIES 2023 2022 Activity Charitable actiwties Charttable actbWties Rents receNed The Hub 3.480 1,465 2,745 1,274 4.945 4,019 GRANTS PAYABLE Unrestrirted Restritted Total 2023 Total 2022 Youth ènd Families Matter Hour of Revival (Dugmoresl Home Mission Fund MAF (Watermansl Amor Europe (Youth Development) Southampton City Mission Baptist Missionary Society Thelma Mills Southern CBA Watermans- donations Moorlands College Jonathan Rhodes- donation linternshipl Dugmore- donations G Tuck- Charlotte Bailey Katrina Elkn"ns- donation Iminisler training) Totton Fun Day- donaiion British Youth for Christ Aid for Ukraine 4,2fKJ 1,SlXI 1,51J) 1.5( 4.200 1.500 1.500 1,500 10.350 1.500 1,500 1,500 1,800 720 300 240 100 3W 240 3( 240 Iix) 31.000 3(X) 500 10.000 995 31.0 5(M) iO.(KK) 995 1,5IKJ 1,020 1.5¢JO 1,020 5.0(K) 750 5.000 55,460 995 56,455 28,760 Page 12 continued...
Testwood Baptist Church Notes to the Flnanclal Statements- continued for the Year Eniled 31st December 2023 INDEPENDENT EXAMINER'S REMUNERATION Governance costs of £6,03012022 - £6,7¢MI represents amounts paid to the independEnt examiner for the examination of the accounts of £4,51#)12022 - £4,4001. fees for other accounting and btsokkeeping services of £1,9 12022- £1,7001 les5 an overprovtsion for fees in respert of the 2022 accounts of £370 12022 underprovision of £6041. TRUSTEES, REMUNERATION AND BENEFfrs There were no trustees, remuneration or other benef for the year ended 31st December 2023 nor for the year ended 31st Dernber 2022. Trustees, expenses There were no trustees, expenses paid for the year ended 31st December 2023 nor for the year ended 31st December 2022. STAFF COSTS 2023 2022 Wages and salaries Social security costs Other pension costs 206,983 12.183 11,860 183,044 10,102 110,6701 231,026 182,476 Throughout 2022 the Churth engèged an associate pastor on a selfemployed basis to assist the Senior Pastor. Payments to the ass(Kiate pastor are included in wages and salaries above. No payments were made in the year ended 31st December 2023. The average monthly number of employee5 during the year wa5 a5 follow5= 2023 io 2022 Employees No employees received emoluments in ex$$ of £60,C(KI. The two Ministers act as church trustees in accordance with the Trust t)eed and received remuneration of £62,923 in the year ended 31st December 2023 whilst arting as tTUStees12022- one minister £42,899). Pension contributions of £5.409 were paid on behalf of the two ministers12022 - one minister- £4,2901. £Nil 12022- £Nill in total was reimbursed to the Trustees in respect of eypenses incurred asTTustees. The Church paid pension contributions for its previous Senior Pastor to the Baptist Pension Scheme IBPSI. which is administered by the PenOn Trustee18aptist Pension Trust Limitedl. The scheme is a separate legal entity and the assets of the scheme are held separately from tho* of the employer and other participating employers. Page 13 tontinued...
Testwood Baptist Church Notes to the Flnancial Statements- contlnued for the Year Ended 31st Decernber 2023 STAFF COSTS. continued For any month, each participating employer in the scheme pays contribution a5 set out the schedule tsf contributions in force at the time. The scheme is considered a multremployer Scheme as described in SÈction 28 of FRS 102. Thi5 is because it is not possible to attribute the stheme's assets and liabilities to specific employers and means the contributions are accoijnted for as if the 5theme was a defined contiibution scheme. The pension costs charged in the year are payable towards benefits and expenses accrued in that year plus any impact of deficiency contribulion5 Isee belowl. For the year ended 31st Dernber 2017. pension costs included the amount of the pension Ihability estimate as at 31st December 2016 as described in note l. Pension costs for the year ended 31st December 2023 did not include an adjustment In respect of a change in the pension scheme deficit12022- credit 01 £20,877). COMPARATIVES FOR THE STATEMENT OF FINANaAL AcnvmES Unrertricted Restricted fund funds Total funds INCOME AND ENDOWMENTS FROM Donations and legacies 332.159 332,159 Charltable artivities Charitable activities 4.019 4.019 Investment income 13 13 Tthal 336,191 336,191 EXPENDITURE ON Charitable arti¥ities Ministry Establishment Mission The Hub Gove¥nance costs 192.131 96.489 26.010 1.125 6.704 192,131 118.071 28.760 1.125 6,704 21,582 2.750 Total 322,459 24.332 346,791 NE[ INCOMEIIEXPENDITUREI 13.732 124,3321 110,6txii RECONCILIATION OF FUNDS Total fund5 brought forward 119.389 772,427 891,816 TOTAL FUNDS CARRIED FORWARD 133.121 748.095 881.216 Page 14 continued...
Testwood Baptist Church Notes to the Financial Statements- continued for the Year Ended 31st December 2023 io. PENSIONS The Church 15 8 participating employer in the Baptist Pension Scheme I'the Stheme'l, which is 3 Separate le8al entity administeréd by the Pénsion Trurtèe (Baptist Pènsion Trust "MIted>. The assets of the Scheme are held separatèly ffom those of the Employer and the other participating efftployers. The Scheme. previously known as the Baptist Ministers. Pension Fund. started in 1925, but Wds closed to future aetrual of defined benefits on 310ecember 2011. Prior to this date the rnain benefit provided through the Defined Benefil IDBI Plan was a pension of one eightieth of final mtnimum pensionable income for each year of pensionable service together wth additional pensson in respect of premiums paid on Pensionable Incomè in excess of Minimum Pensionable Income. From January 2012, pension provision is being made through the Defined Contribution IDCI Plan within the Scheme. In general, member5 pay 8% of their Pensionable Incow* and employers pay 6% of members, Pen5ion3ble Intome into individual pension accounts. which are operated and managed on behalf of the Pension Trustee by Broadstone Corporate Benefits Ltd. In addition. the employer pays a further 4% of Pensionable Income to cover Death in Service Benefits. administration costs and an associated insurance policy which provide5 income protection for Scheme members if they are unable to work due to long-term incapacity- Thi5 income protection poliLY h35 been insured by the Baptirt Union of Great Britain with Awva mited. Members of the Basic Seciion pay reduced contributions of S% of Pensionable Income, and their employers also pay a total of 5%. The Scheme is considered to be a multi-employer Scheme as described in Section 28 of FRS 102. Because it is not possible to attribute the Scheme'5 a55ets and liabiltties to 5pecthc employers. the scheme is accounted for as rf the Scheme weie a defined contribution scheme. The Ministers and some members of the church staff are eligible to N)in the Schèmè. ArtU3ri31 valuation as at 31 Oecember 2019 A formal valuation of the OB Plan as at 31 December 2019 was carried out by a professionally qualified Actuary usin8 the Projected Unit Method. At the valuation dale the market value of the DB Plan assets was £298 million, whilst the level of assets needed to pay benefits was £316m. giving a deficit of £18m lequivalent to a past service funding level of 94%). The Church and the other paniopating employers in the DB Plan are collectively responsible for funding this defictt. The key finanoal assumptions underlyirtg the valuation were as follows Type assumption RPS price inflation assumption 3.20 CPI price inflation assumption 2.70 Minimum Pensionable Income Increase Adjustment (above CPI) 0.50 PTe-retirement assumed investment return5 Igilt yield plus 1.75% pal 2.95 P05t-retirement assumed investment return5 (including benefft5 matched by the insurance policyl Igslt yield plus 0.5% pal Minimum Pensionablè Income increases ICPI plus O.5%1 Deferred pension increases (based on RPII Pre April 2009 Post April 2009 Pension increases Based on CPI with an annual floor of 0% and annual cap of 5% 1.70 3.20 3.20 2.50 2.70 Page 15 continued...
Testwood Baptist Church Notes to the Flnancial Statements- continued for the Year Ended 31st December 2023 io. PENSIONS- continued Mortality was assumed in accordance with 80% of the $3NA standard mortality table. Future improvements projected from 2013 in line with the'CMI 2019" projection with a lon8-term rate of improvement of 1.75% p.a. for males and 1.5% p.a. for female5 Wlth the core Smoothing parameter and with additional initial mortality improvement fartor A=0.5%. The next actuarial valuation of the DB Plan within the Scheme was due to take place not later than as at 31 December 2022. However, the DB Plan is to be wound up, and the ptocessto wind it up was stsrted with effect from 31 March 2024 and therefore no forrnal valuation is due to take place. Recovery Plan In addition to the contributions to the DC Plan Set out above. where a valuation of the DB Plan reveals a deficit the Trustee and the Couftcil agree to a rate of deficiency contributions from churches and other employers involved in the 08 Plan. Following the 2019 valuation a Recovery Plan was siEned in September 2020 under which deficiency contributions are payable until 30June 2026. On 30th June 2022 the Bapt15t Pension Scheme signed an agreemeni Just Group I"Just"I to secure DB plan members. pension benefits. Just are now providing financial backing for all pensions provided through the Scheme'5 D8 PSan. and following this transaction, the Scheme no longer has a shortfall. An updated Recovery Plan was then signed in August 2022 under which recovery contributK)n5 from each participating employer in the DB plan reduced to £1 per month from August 2022. These contribution5 are payable under the recovery plan until June 2026. The outstanding deficiency contributions dve der the Recovery Plan are not considered material 3nd therefore have not been included in the balance sheet. Movement in Balance Sheet liability Section 28.IIA of FRS 102 requires agreed deficit recovery payments to be recognised as a liability. The movement in the provision is Set out in the tsble below. 31.12.23 31.12.22 Balance sheet Ilability at year start Minu5 deficiency contributions paid Interest cost Irecognised in SOFA) Remaining change to balance sheet liability Irecognised in SOFA) 23.900 13.0231 448 121,3251 Balance Sheet liabilrty at year end Compri5e5 any thange in agreed deficit recovery plan and change in assumptions between yearends. Where relevant, the liability repsents the present value of tke defiat contributions agreed as at the accounting date and ha5 been valued using the followng assumptions set by reference to the duration of the deficit recovery payments.. Accounting date 31.12.23 31.12.22 31.12.21 Discount Tate NIA NIA 2.0% Future increases to Minimum Pensionable Irhcome NIA NIA 4.1% Page 16 continued...
Testwood Baptist Church Notes to the Financial Statements- continued for the Year Ended 31st December 2023 ii. TANGIBLE FIXED ASSEfs Fumtture and rittings Church premises Computers & equipment Manse Totals COST At 1st january 2023 and 31st December 2023 1.061.713 97.( 101,442 49,662 1,309,817 DEPRECIATION At 1st January 2023 Charge for year 315.395 21.234 95,717 1,173 45,581 3,264 456.693 25,671 At 31st December 2023 336.629 96,8 48,845 482,364 NET BOOK VALUE At 315t December 2023 725.084 97.1 4,552 817 827,453 At 31st December 2022 746.318 97.(KKI 5.725 4,081 853,124 All of the fixed assets are used for dirert tharitsble purposes. 12. DEBTORS: AMOUNTS FALUNG OUE wrtHIN OP4E YEAR 2023 2022 Atcrued income- Gift 13,033 14.776 13. CASH AT BANK 2023 Total funds 2022 Total funds Lloyds Current Account- No I Uoyd5 Current Account- No 2 Hub Account 8,040 11,281 543 3,530 15,235 651 Total 19.864 19.416 Page 17 continued...
Testwood Baptist Church Notes to the Financial Statements- continued for the Year Ended 31st Decernber 2023 14. CREDITORS: AMOUNTS FAWNG DUE WITHIN ONE YEAR 2023 2022 Accruals and deferred income 6,IlX) 15. MOVEMENTIN FUNDS Net movement in funds At 31.12.23 At 1.1.23 Unrestrirted funds General fund 133.121 14,6221 128.499 Restricted funds Building fund Gordon Tuck Fund 747.INh) 1.095 121.5491 11.0951 725.451 748.095 122,6441 725,451 TOTAL FUNDS 881,216 127,2661 853.950 Net movement in funds. included in the above are as follows: Incoming resources Resources expended Movement in funds Unrestrirted funds General fund 381,882 1386,5041 14,6221 Restricted funds Building fund Gordon Tuck Fund Baptist Insurance grant for Comrnunity Pastor 121.5491 11.0951 121.5491 11,0951 11,015 111.0151 11,015 133.6591 122.6441 TOTAL FUNDS 392.897 1420,1631 127.2661 Page 18 continued...
Testwood Baptlst Church Notes to the Financial Statements- continued for the Year Ended 31st December 2023 15. MOVEMENT IN FUNDS- contlnued Comparatfves for movement in lunds Net movement in funds At 31.12.22 At 1.1.22 Unrestrirted funds General fund 119.389 13.732 133,121 Restrirted funds Building fund Gordon Tuck Fund 768,582 3,845 121.5821 12.7501 747.(K)O 1.095 772.427 124.3321 748.095 TOTAL FUNOS 891,816 110.61K)I 881.216 Comparative rhet 0vement in funds. included in the above are as fdlows.. Incoming resources Resources expended Movement in funds Unrestrirted funds General fund 336.191 1322,4591 13,732 Restrlcted funds Building fund Gordon Tuck Fund 121,5821 12.7501 121,5821 12,7501 124.3321 124.3321 TOTAL FUND5 336,191 1346,7911 110.6(X)I 16. RELATED PARTY DISCLOSURES The custodian Trusiee of the church is the Baptist Union Corporation knmited which is charity number 249635 and which 15 controlled by the Baptist Union Council. The church is also a member of the Bapt15t Union of Great Britain and the Southérn Counties Baptist Association. The church made a grant to the Baptist Missionary Society as Set out irb note 5 to the financial statements. Revd M Huckle. the senior pastor and a trustee of the charity. was appointed a tTUStee of The Southern Counties Baptist Association on 6th November 2023. The church made 3 grènt to this char4ty as set out in note 5 to the financial statements. Mr H Frarbcis. a trustee of the charity. 15 a director of The Baptist Insuran Company plc. a provider of insurance services to the church. All insurance ServiS provided by the company are on an arms length basis. Page 19