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2022-12-31-accounts

REGISTERED CHARITY NUMBER: 1129995

REPORT OF THE TRUSTEES AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

FOR

ORPINGTON BAPTIST CHURCH

ORPINGTON BAPTIST CHURCH

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

Page
Report of the Trustees 1 to 3
Independent Examiner's Report 4
Statement of Financial Activities 5
Balance Sheet 6
Notes to the Financial Statements 7 to 16

ORPINGTON BAPTIST CHURCH

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022

Orpington Baptist Church is an unincorporated charity, registered charity number 1129995.

OBJECTIVES AND ACTIVITIES

Public benefit

Our principle objective is the advancement of the Christian faith. This includes our Christian education and worship for people of all ages but also our commitment to serving the community and being outward looking both locally and internationally.

To enable the better fulfilment of our vision the Church employs, on a full time basis, a Senior Minister, a Youth Worker, a Children's Worker and on a part time basis a Worship Leader, a Café Manager, two Administrators on a jobshare basis, and cleaners as needed. We also have two Ministers in Training taking a very active part in the life of the Church. Many of the groups and activities are also led by a large number of volunteers who give freely of their time and gifts.

Details of all our activities can be found on our website www.orpingtonbaptist.org.uk and through our active Facebook group and Page. When planning our work the Trustees always consider the need for public benefit in line with the Charity Commission guidelines.

ACHIEVEMENT AND PERFORMANCE

Coming out of the coronavirus pandemic has brought many challenges. The Church has shown itself to be resilient and relevant for the times. Live-broadcasting of all our services has continued but our physical congregations have grown considerably with new people. We have also continued to use modern technology to full advantage. Online courses and other broadcasts with use of social media have been a key feature of our communication. We have been especially pleased to grow our multicultural congregation with people coming to the Church from over twenty-five different nations. A full programme of activities reaching out to hundreds of people each week from children to the elderly has been a day feature of our life together. Within the community we have taken a lead through Churches Together in Orpington, and specifically in the programmes offered by Street Pastors, Bromley Foodbank, Christians Against Poverty and Bromley Homeless. We have developed a special concern for those who are vulnerable and disadvantaged within our community. We look also to have an international impact and our support for partner missions include outreach in Zambia, Czech Republic, Romania and Bangladesh. Each week we seek to remember and develop our OBC vision, which stands for O: Outward Looking B: Biblical Teaching C: Contemporary and Relevant.

FINANCIAL REVIEW

Financial position

During the year the Church was the beneficiary of several legacies that totalled £191,441.The deacons determined that this income should be tithed so 10% was forwarded to charities that have been deserving of the Church's support in previous years. Thus the blessing has been shared. The other income has increased in total by

nearly 9%. Expenditure for the year increased by £12,000 in total but this is distorted by the final write off the renovation work completed over ten years ago and which, as it was for only roughly eight months, was £25,000 less in 2022. This means that actual expenditure increased by £37,000 with over half being in respect of the staffing costs. Our levels of worship and outreach resources would be the wish of many other churches. The total reserves at the year end were £1.8million of which £1.35 million relates to the Church buildings and £158,000 to the manse while £65,000 has been designated to future periodic non annual outgoings. The unrestricted reserves were £216,000 which currently exceeds the deacons reserve policy but this is only temporary while the best use of the excess is determined by the Deacons.

Page 1

ORPINGTON BAPTIST CHURCH

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022

FINANCIAL REVIEW

Reserves policy

The trustees have a reserve policy to hold £100,000 held between a Major Project Reserve for major property events and a General Fund for other major costs. At 31 December 2022 the Major Project Reserve stands at £50,000 and the general Fund at £216,436. The Trustees continually review the needs of the present and those of the future and apportion the funds as equitably as possible.

STRUCTURE, GOVERNANCE AND MANAGEMENT

The charity is guided by its Constitution and a Deed of Trust held by the Baptist Union Corporation. The Trustees, including Senior Minister, Officers and Deacons are elected by the Church Members and meet very regularly. Whilst the Baptist Union holds the Custodian Trust Deed the Church is managed on a congregational model. The Trustees have again assessed the major risks facing the Trust and have made sure of appropriate policies in place to minimise any risks. We have also been very careful about safeguarding, appointing a Designated Safeguarding Officer who has a team working with her and also a Safeguarding Trustee. Another Trustee keeps careful consideration of our compliance with GDPR legislation.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Charity number

1129995

Principal address

Station Road Orpington KENT BR6 0RZ

Trustees

Rev Martyn Travers - Senior Minister/Chairperson Paul Cooke - Treasurer Lorraine Dixon - Officer Colin Salzer - Deacon Caroline Percy - Deacon Helen Stockman - Deacon Robin Morris - Deacon Tim Williams - Deacon Helen Pourak- Deacon Liz Salins - Deacon Ekua Stephen, Deacon

Independent Examiner

Grugeon Reynolds Limited Adams and Moore House Instone Road Dartford KENT DA1 2AG

Page 2

ORPINGTON BAPTIST CHURCH

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022

Approved by order of the board of trustees on 18 April 2023 and signed on its behalf by:

Rev M Travers - Trustee

Page 3

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

Independent examiner's report to the trustees of Orpington Baptist Church

I report to the charity trustees on my examination of the accounts of Orpington Baptist Church (the Trust) for the year ended 31 December 2022.

Responsibilities and basis of report

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

I report in respect of my examination of the Trust's accounts carried out under section 145 of the Act and in carrying out my examination I have followed all applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner's statement

Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a registered member of ACCA which is one of the listed bodies.

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

  1. accounting records were not kept in respect of the Trust as required by section 130 of the Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Hakeem Adeleye ACCA Grugeon Reynolds Limited Adams and Moore House Instone Road Dartford KENT DA1 2AG

18 April 2023

Page 4

ORPINGTON BAPTIST CHURCH

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2022

2022
Unrestricted
Restricted
Total
funds
funds
funds
Notes
£
£
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
436,653
7,863
444,516
Charitable activities
Church organisations
25,415
-
25,415
Sundry activities
554
-
554
Youth residential
7,526
-
7,526
Event receipts
853
-
853
Other trading activities
3
9,558
-
9,558
Investment income
4
640
-
640
Total
481,199
7,863
489,062
EXPENDITURE ON
Charitable activities
Church organisations
27,972
-
27,972
Sundry activities
294,516
49,857
344,373
Youth residential
8,027
-
8,027
Total
330,515
49,857
380,372
NET INCOME/(EXPENDITURE)
150,684
(41,994)
108,690
RECONCILIATION OF FUNDS
Total funds brought forward
288,751
1,392,957
1,681,708
TOTAL FUNDS CARRIED FORWARD
439,435
1,350,963
1,790,398
2021
Total
funds
£
242,577
23,721
338
1,640
-
5,530
60
273,866
21,231
347,299
-
368,530
(94,664)
1,776,372
1,681,708

The notes form part of these financial statements

Page 5

ORPINGTON BAPTIST CHURCH

BALANCE SHEET 31 DECEMBER 2022

2022
Unrestricted
Restricted
Total
funds
funds
funds
Notes
£
£
£
FIXED ASSETS
Tangible assets
11
158,000
1,350,000
1,508,000
CURRENT ASSETS
Debtors
12
11,363
-
11,363
Cash at bank and in hand
271,783
962
272,745
283,146
962
284,108
CREDITORS
Amounts falling due within one year
13
(1,710)
-
(1,710)
NET CURRENT ASSETS
281,436
962
282,398
TOTAL ASSETS LESS CURRENT
LIABILITIES
439,436
1,350,962
1,790,398
NET ASSETS
439,436
1,350,962
1,790,398
FUNDS
14
Unrestricted funds
439,436
Restricted funds
1,350,962
TOTAL FUNDS
1,790,398
2021
Total
funds
£
1,558,766
8,858
115,794
124,652
(1,710)
122,942
1,681,708
1,681,708
288,750
1,392,958
1,681,708

The financial statements were approved by the Board of Trustees and authorised for issue on 18 April 2023 and were signed on its behalf by:

M Travers - Trustee

P Cooke - Trustee

The notes form part of these financial statements

Page 6

ORPINGTON BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Tangible fixed assets

The church premises are included in the Balance Sheet at insurance value because reliable cost information is not available, and valuation would incur significant costs which would be onerous compared with the additional benefit gained by the user of the accounts.

The Manse is stated at cost.

The cost of refurbishing the Church is being written off equally over ten years.

Fixtures and fittings are depreciated at 10% on a straight line basis.

Taxation

The charity is exempt from tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Page 7

continued...

ORPINGTON BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022

2.
DONATIONS AND LEGACIES
2022
2021
£
£
Donations
444,516
204,514
interest Receivable
-
38,063
444,516
242,577
3.
OTHER TRADING ACTIVITIES
2022
2021
£
£
Lettings
9,558
5,530
4.
INVESTMENT INCOME
2022
2021
£
£
Deposit account interest
640
60
5.
INCOME FROM CHARITABLE ACTIVITIES
Summary of Results of Church Organisations :
Opening
Expenditure
Closing
Balance
s
Income and Contra
Balances
£
£
£
£
3rd Bromley Boys' Brigade
20,204
12,740
13,151
19,793
1st Orpington Girls' Brigade
11,049
1,845
2,622
10,272
Sanctuary Cafe
5,111
10,463
13,653
1,921
Lunch Club
158
158
Leisure Club
991
991
Tiddlers
595
368
388
575
£38,108
£25,416
£29,814
£33,710
2022
£
444,516
-
444,516
2022
£
9,558
2022
£
640
2022
£
444,516
-
444,516
2022
£
9,558
2022
£
640
2021
£
204,514
38,063
242,577
2021
£
5,530
2021
£
60
2021
£
204,514
38,063
242,577
2021
£
5,530
2021
£
60

Page 8

continued...

ORPINGTON BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022

6. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 December 2022 nor for the year ended 31 December 2021.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 December 2022 nor for the year ended 31 December 2021.

7. SALARIES

SALARIES
2022 2021
£ £
Salaries 148,064 145,271
National Insurance contributions 4,570 5,516
Pension contributions 12,283 14,073
£ 164,917 £ 164,860

The Senior Minister is the Chairperson of the Trustees and the key management personnel and he received a salary as a minster of £40,500 during the year and he has a defined benefit pension and a defined contribution pension. Six other employees have defined contribution pensions. The Church pays pension contributions for its Minister to the Baptist Minsters' Pension fund which is a multi-employee final salary defined benefit scheme, not contracted out of the State scheme. From 1 January 2009 the Minister pays 9% of his pensionable income and the Church 25%.

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).

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 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.

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.

Page 9

continued...

ORPINGTON BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022

7. SALARIES - continued

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 valuation of the DB Plan revealed a deficit of assets compared with the value of liabilities of £18 million. 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

In addition, the Baptist Union of Great Britain contributed a lump sum of £33m in 2018 with a further £0.5m to follow, and changes to the Scheme benefits were agreed. The Recovery Plan envisages deficiency contributions continuing until 31 December 2028.

The Recovery Plan envisages deficiency contributions continuing until June 2026. 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. OBC's deemed current share of the deficit at 22 June 2022 was £17,900 (2021 £47,900, 2020 £76,200, 2019 £76,300, 2018 £115,900) which is subject to revision dependent on subsequent valuations. The next actuarial valuation of the DB Plan within the Scheme is due as at 31 December 2023, however the Pension Fund have reduced the deficit payments being paid by Orpington Baptist Church from August 2022 to £1 per month as the deficit has reached a manageable level.

.

The average monthly number of employees during the year was as follows:

Ministry
Administration
Cafe
Cleaners
2022
5
2
1
3
11
2021
6
2
1
2
11

No employees received emoluments in excess of £60,000.

There are four full-time staff and seven part-time staff. All the employments equate to six full-time equivalent employments.

Page 10

continued...

ORPINGTON BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022

8. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted Restricted Total
funds funds funds
£ £ £
INCOME AND ENDOWMENTS FROM
Donations and legacies 239,125 3,452 242,577
Charitable activities
Church organisations 23,383 338 23,721
Sundry activities 338 - 338
Youth residential 1,640 - 1,640
Other trading activities 5,530 - 5,530
Investment income 60 - 60
Total 270,076 3,790 273,866
EXPENDITURE ON
Charitable activities
Church organisations 20,893 338 21,231
Sundry activities 283,544 63,755 347,299
Total 304,437 64,093 368,530
NET INCOME/(EXPENDITURE) (34,361) (60,303) (94,664)
RECONCILIATION OF FUNDS
Total funds brought forward 323,111 1,453,261 1,776,372
TOTAL FUNDS CARRIED
FORWARD 288,750 1,392,958 1,681,708

9. GRANT MAKING ACTIVITIES

The Church has made grants totalling £57,752 (2021 - £39,536) all related to its object to advance the Christian faith. The largest grants were to the Baptist Mission, both Home and Overseas £19,263 (2021 - £19,263) and their mission statement is "As a Christian mission organisation we aim to share life in all its fullness with the world's people by; enabling them to know Christ; alleviating suffering and injustice; and improving the quality of life, with people as our primary agents of change - motivating, training, sending and resourcing them". No support costs have been attributed to this cost.

Page 11

continued...

ORPINGTON BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022

10. INDEPENDENT EXAMINER'S FEES

The total fees paid to the Independent Examiner was £1,710 (2021 - £1,710). These fees were for both the preparation of the annual accounts and the independent examination.

11. TANGIBLE FIXED ASSETS

Freehold
property
£
COST
At 1 January 2022 and
31 December 2022
2,252,653
DEPRECIATION
At 1 January 2022
695,210
Charge for year
49,443
At 31 December 2022
744,653
NET BOOK VALUE
At 31 December 2022
1,508,000
At 31 December 2021
1,557,443
12.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Sundry debtors
13.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Sundry creditors
Fixtures
and
fittings
£
33,399
32,076
1,323
33,399
-
1,323
2022
£
11,363
2022
£
1,710
Totals
£
2,286,052
727,286
50,766
778,052
1,508,000
1,558,766
2021
£
8,858
2021
£
1,710

Page 12

continued...

ORPINGTON BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022

14. MOVEMENT IN FUNDS

Unrestricted funds
General fund
Major Projects Reserve
Building Fund
Manse
Minibus replacement fund
Restricted funds
Church premises
Mission World
Building fund
Food Bank
Birthday fund
Ukraine appeal / Project Ruth
Love in a Box
Harvest
Pakistan appeal
TOTAL FUNDS
At 1/1/22
£
57,049
50,000
8,702
158,000
15,000
288,751
1,350,000
892
42,065
-
-
-
-
-
-
1,392,957
1,681,708
Net
movement
At
in funds
31/12/22
£
£
159,387
216,436
-
50,000
(8,702)
-
-
158,000
-
15,000
150,685
439,436
-
1,350,000
(892)
-
(42,065)
-
40
40
25
25
832
832
25
25
20
20
20
20
(41,995)
1,350,962
108,690
1,790,398

Page 13

continued...

ORPINGTON BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022

14. MOVEMENT IN FUNDS - continued

Net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Building Fund
Restricted funds
Mission World
Building fund
Food Bank
Birthday fund
Zambia fish project
Ukraine appeal / Project Ruth
Love in a Box
Harvest
Pakistan appeal
London City mission
Tear fund
TOTAL FUNDS
Incoming
resources
£
481,199
-
481,199
-
-
40
1,634
570
3,963
25
20
20
910
681
7,863
489,062
Resources
expended
£
(321,812)
(8,702)
(330,514)
(892)
(42,065)
-
(1,609)
(570)
(3,131)
-
-
-
(910)
(681)
(49,858)
(380,372)
Movement
in funds
£
159,387
(8,702)
150,685
(892)
(42,065)
40
25
-
832
25
20
20
-
-
(41,995)
108,690

Page 14

continued...

ORPINGTON BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022

14. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

Unrestricted funds
General fund
Major Projects Reserve
Building Fund
Manse
Minibus replacement fund
Restricted funds
Church premises
Mission World
Building fund
TOTAL FUNDS
At 1/1/21
£
76,460
50,000
23,651
158,000
15,000
323,111
1,350,000
-
103,261
1,453,261
1,776,372
Net
movement
At
in funds
31/12/21
£
£
(19,412)
57,048
-
50,000
(14,949)
8,702
-
158,000
-
15,000
(34,361)
288,750
-
1,350,000
893
893
(61,196)
42,065
(60,303)
1,392,958
(94,664)
1,681,708

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Building Fund
Restricted funds
Mission World
Building fund
Food Bank
TOTAL FUNDS
Incoming
resources
£
270,076
-
270,076
3,690
-
100
3,790
273,866
Resources
expended
£
(289,488)
(14,949)
(304,437)
(2,797)
(61,196)
(100)
(64,093)
(368,530)
Movement
in funds
£
(19,412)
(14,949)
(34,361)
893
(61,196)
-
(60,303)
(94,664)

The Building funds were to finance the refurbishment of the building.

The Major project reserve (formerly called Property fund) is to finance the major periodic repair and replacement cost of the building.

The Manse fund represents the funds financing the minister's residence.

The Church premises fund represents the funds financing the church building.

The Mission funds were the restricted donation received and payments made in accordance with the donors' wishes.

Page 15

continued...

ORPINGTON BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022

14. MOVEMENT IN FUNDS - continued

The Minibus replacement fund is to finance a replace vehicle when this becomes necessary.

15. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 December 2022.

Page 16