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2021-12-31-accounts

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2021

WORTHING BAPTIST CHURCH

REGISTERED CHARITY NUMBER: 1130541

Independent Examiners Ltd Uni 2 The Broadbridge Business Centre Delling Lane Bosham West Sussex PO18 8NF

1

WORTHING BAPTIST CHURCH

CONTENTS

Page 3 Legal and Administrative Information
Page 4 Independent Examiner's Report to the Trustees
Page 5 to 7 Trustees' Report
Page 8 Statement of Financial Activities
Page 9 Balance Sheet
Pages 10 to 19 Notes to the Financial Statements
Page 20 Statement of Cashflows

2

WORTHING BAPTIST CHURCH

LEGAL AND ADMINISTRATIVE INFORMATION

CHARITY REGISTRATION NUMBER 1130541 DATE OF REGISTRATION 14th July 2009 START OF FINANCIAL YEAR 1st January 2021 END OF FINANCIAL YEAR 31st December 2021 LEGAL STATUS Registered Charity CUSTODIAN TRUSTEE The Baptist Union Corporation Limited TRUSTEES WHO SERVED DURING Revd M Parker Minister THE YEAR TO 31ST DECEMBER 2021 Revd P Heath Assistant Minister Mrs F Ranger Church Secretary M Ramos Mrs K Parker Mr A Duffield Ms M Taruvinga Treasurer (appointed 12th April 2021) Mrs W Miles (appointed 12th April 2021) TRUSTEES APPOINTED AFTER THE None BALANCE SHEET DATE Trustees are elected by ballot of Church members, provided they receive 65% of those voting at the Church Meeting. GOVERNING INSTRUMENT Constitution Adopted on 3rd June 2009 OBJECTS The principal purpose of the Church is the advancement of the Christian Faith, according to the principles of the Baptist Denomination, including the advancement of education, community service and other general charitable purposes in the United Kingdom and the world. CORRESPONDENCE ADDRESS Worthing Baptist Church Christchurch Road Worthing BN11 1JH PRIMARY BANKERS NatWest Bank Limited 27 South Street Worthing West Sussex INDEPENDENT EXAMINER Independent Examiners Ltd Unit 2 The Broadbridge Business Centre Delling Lane Bosham West Sussex PO18 8NF

3

INDEPENDENT EXAMINER’S REPORT ON THE ACCOUNTS

I report to the trustees on my examination of the accounts of the Worthing Baptist Church for the year ended 31st December 2021.

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

Responsibilities and basis of report

I report in respect of my examination of the Charity's accounts carried out under section 145 of the 2011 Act and in carrying out my examination, I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner's statement

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

I have no other 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.

K Gomes MAAT

Independent Examiners Ltd Unit 2 The Broadbridge Business Centre Delling Lane Bosham West Sussex PO18 8NF

Date: ..................................................................... 27.10.22

4

WORTHING BAPTIST CHURCH

TRUSTEES REPORT

FOR THE YEAR ENDED 31ST DECEMBER 2021

Structure, Governance and Management

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.

The Baptist Union Corporation Limited is the custodian trustee for the land and buildings owned by the Church. The Church occupies premises which are held by the Baptist Union Corporation Ltd, on Trusts which are entirely compatible with the above object.

Objective & Activities

The principal purpose of Worthing Baptist Church is the advancement of the Christian Faith, according to the principles of the Baptist denomination - to include the advancement of education, playing a role in the local community and carrying out charitable purposes in the UK and abroad. The church works through associations with the Baptist Union of Great Britain, the Baptist Missionary Society, The Bible Society and other similar Christian charitable organisations within the UK and world-wide.

In order to achieve the principal objective, the Trustees, having had due regard to the guidance (issued by the Charity Commission) on Public Benefit, organise a variety of activities, most of which run throughout the year. Central to the Christian work and witness of the church are the regular public Sunday Worship services at 10.30 a.m. The church is renowned for its friendly welcome to anyone who attends services or comes onto the premises for any other activities (as advertised outside the building and/or on the weekly news sheet and on the website, www.wbch.org.uk). There are other advertised activities which are open to any interested persons.

The church runs a series of mid-week ‘Life Groups’ for the growth of faith, fellowship, knowledge and discipleship - further details can be obtained from the Trustees on request or at Sunday services. Members facilitate weekly coffee mornings after Sunday service, open to the public, with the purpose of assisting the community and demonstrating the love of Jesus Christ. From time to time, the church hosts Alpha courses or groups for people who are new to the church, where any interested individual may attend to learn more about the Christian Faith.

The church provides facilities for, and conducts, Weddings, Dedications for parents of babies and young children, Adult Baptisms and Funerals and prepares people spiritually for these occasions.

The local community actively engages in special events such as BBQs, meals out, tea parties, family picnics, and film nights.

The church has an Equal Opportunities Policy and is committed to the love and inclusion of all people, affirming diversity in sexuality, gender identity, ethnicity, age, physical ability, learning disability, neurodiversity and mental health. Our inclusion statement is published on our website and weekly news sheet.

Fundraising for Christian Mission work in the UK and overseas is an important function, as is the support of Regional and National Baptist events, and national Christian events such as "Big Church Day Out". Church members have given food items and other requisites to the Turning Tides homeless charity throughout the year. Local and overseas Mission is supported regularly, and regular amounts are given to the Baptist Union for World Mission and Home (UK) Mission.

The church and its ministers are also a resource for other local churches exploring becoming LGBT+ affirming. The ministers meet with ministers and trustees of other churches to offer support. Relevant audio recordings, video discussions, and articles created by the ministers of Worthing Baptist Church are made available on the church website to promote inclusion and full participation of LGBT+ people in churches locally and around the world.

These resources also encourage LGBT+ people who have been mistreated in, or excluded from, churches historically.

The church employs a Senior Minister of Religion and an Assistant Minister. All other activities, operations and essential management, finance and administration for the church are planned, organised and carried out by volunteers who give freely of their time. Many of these volunteers are Church Members or Trustees, but we invite newcomers and regular attenders to volunteer in appropriate ways that don’t require DBS checks. Teamwork is important in all our teams, and we’re actively encouraging LGBT+ people to serve on teams.

The church complies with the regulations set out by the Baptist Union with regard to safeguarding of children and vulnerable adults, volunteer helpers being DBS-checked.

5

WORTHING BAPTIST CHURCH

TRUSTEES REPORT (Continued) FOR THE YEAR ENDED 31ST DECEMBER 2021

Achievements & Performance

The church measures the success of its programmes and provision to some extent in numbers of people attending services and events and the revenue - but the Trustees feel that more important by far are the less quantifiable benefits such as:-

Church members and regular attenders with mental health issues and other everyday challenges have described the stability and consistency of church services as helpful. Often the church ministers are a first point of contact for people who need help. The ministers have been able to direct people towards their GP, or mental health professionals, counsellors, or Citizens Advice.

As mentioned, not only is the church actively seeking to include LGBT+ people in worship and activities, we also encourage LGBT+ people to volunteer in teams. This is significant, given that LGBT+ people are often barred from volunteering in many churches. We have also decided together as a church to register our building for same-sex marriage. We will apply for this early next year, and are the only church locally, to our knowledge, which is doing this. Many LGBT+ people in the community have been encouraged by the church’s affirming stance, especially those who have been mistreated in, or excluded from, churches historically.

Financial Review

The trustees have considered the level of reserves they wish to retain appropriate to the charity's needs, the aim being to ensure that the charity will be able to continue to fulfil its charitable objectives.

At present we are in a long-term income shortfall due to the cost of supporting two ministers, seen as essential to the fulfilment of our current objectives. Nevertheless, the charity’s overall financial position remains healthy, with total funds of £1.8m carried forward.

While the above-mentioned income shortfall remains a matter of some concern, the Trustees remain committed to the ongoing review of financial strategy, controls and processes to ensure that they are adequate and fit for purpose. This will enable the charity to continue as a going concern, whilst recognising the need for vigilance.

The principle source of funds remains the regular giving from church members and others attending weekly services. In addition, the church receives monthly rental income from the remaining flat.

The sale of property to boost our reserves and fund the operating deficit for the foreseeable future has continued to be a major strategic activity in this area. Following the sale of the remaining two flats in one property, the church is now actively seeking to divest itself of the freehold in order to free up resources as well as generate further income.

The Covid-19 pandemic has continued to adversely affect our finances this year, resulting in a lower General fund income than in previous years. Whilst there are encouraging signs that this income is increasing, the church’s commitment to support two ministers will see us continue to operate in deficit for the foreseeable future.

6

WORTHING BAPTW CHURCH R THE YeAR Et40ED 31ST DECEMBER 20ZI The Char￿leS Art 2011 requlre the Trustees to prtpare flfiandal statsmeTrts for flnartièl y whlth gfve a tNe ono f4lr vkw pf the state of afTrdlr5 of the charlty and of the surr4u4 or defidt of the tharity for that penod. In prepat¥vJ thLsse fina￿&?5 statewts thÈ Trustee5 are rmuired 10." l) Selert sUtrab￿ aEEountiw poBdes and appty c0￿$tentty 11} make￿dge{Wnts and estimates that are re￿nablE and prndent 111) Prepare Anzndal statem)ts on the golng concern ba51$ unless ￿ 18 Inappropriate to pr8sume that the tFwy wll c￿￿nue In exence. The Trustses are responslbb for keeping proper accounyng records. whlth dlscb5e ￿th reasonab￿ accuraty at any tsme the fln8￿￿•1 po$thi of the thjrlty. They are also respo￿[b￿ for safeguardlng the assets of the rhartty and hence For tsklng reasonabk Steps for the prtvw)ta)n and dEtettKJn of fraud and other irre9ularlUe5. . iTr-10-aoii S￿ned on trrtir beha￿ by... Ptht Name: LI ffiU7-l H- •1 Ilu v i NJq

WORTHING BAPTIST CHURCH

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31ST DECEMBER 2021

Notes
INCOME FROM:
Donations & Legacies
3a
Investments
3b
Other Trading Activities
3c
Charitable Activities
3d
Other
3e
TOTAL INCOME
EXPENDITURE ON:
Charitable Activities
4a
Raising Funds
4b
Governance Costs
4c
TOTAL EXPENDITURE
NET INCOME/(EXPENDITURE) BEFORE
INVESTMENTS GAINS/(LOSSES)
Gain on disposal of fixed asset
2a
investments
Gain on revaluation of fixed asset
2a
investments
NET INCOME/(EXPENDITURE)
Transfer Between Funds
OTHER RECOGNISED GAINS/(LOSSES):
Gain on revaluation of fixed assets
2
for the charity's own use
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS:
Total Funds Brought Forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
Designated
Restricted
TOTAL
TOTAL
Funds
Funds
Funds
2021
2020
£
£
£
£
£
53,944
-
900
54,844
53,172
394
-
-
394
206
-
12,393
-
12,393
9,569
-
-
-
-
38
16
-
-
16
32
54,353
12,393
900
67,646
63,017
174,323
-
3,153
177,476
130,418
-
3,712
-
3,712
14,254
5,355
-
-
5,355
1,290
179,678
3,712
3,153
186,543
145,962
(125,325)
8,681
(2,253)
(118,897)
(82,945)
-
-
-
-
214,038
-
-
-
-
179,008
(125,325)
8,681
(2,253)
(118,897)
310,101
(2,261)
-
2,261
-
-
-
-
-
-
438,249
(127,586)
8,681
8
(118,897)
748,350
2,520,827
14,277
2,477
2,537,581
1,789,231
2,393,241
22,958
2,485
2,418,684
2,537,581

Movements on all reserves and all recognised gains and losses are shown above. All of the organisation's operations are classed as continuing. The notes on pages 10 to 19 form part of these financial statements.

8

WORTHZIIG BAPYIST CHURCH BALANCE SKE A$ AT 31sr DE¢EMBER 2031 unrethc￿ D￿gnated Funds ¥i-Dec-ii Total Yi-Detr20 Funds Ib￿ Assets F￿e0 Asset Inve5tmerrts 2,005,000 228.500 2.005.ODO 228.500 2.005.000 228,500 ebtors & Prepayments Cash * Bank and h Hand Total Curyent 6.536 302 S58 190 223 958 litors: aThb)unts Fallln9 (hje %Ythln one year S.039 5.039 5.013 159.741 22,958 1,485 185.184 304,081 TOTAL ASSEfs kn current Ilabl1￿e$ 2,393.241 485 1537.581 Crndltors: amounts faww due lry JM)rt than onE year 93 241 2I958 1&684 %537 581 GeneTrl Funds Revalua￿￿￿ Reserve Desig[￿ted Funds RestrKtEd Fund5 2,393,241 2.393,241 2.520,827 22,958 22,958 2,48S L4,2n 2,471 2.485 Totsi Funts 21958 148S 2Ai&r 537,581 Siqr￿d on thdr behatr bv..................... .................... ........................................., Print Name.. PAF¥PJ¥4F ) KJCI)a

WORTHING BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST DECEMBER 2021

Basis of Preparation

The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2015) - (Charities SORP - FRS102) and the Charities Act 2011.

The Charity meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost unless otherwise stated in the relevant accounting policy notes.

Assessment of Going Concern

Preparation of the accounts is on a going concern basis. The trustees consider that there are no material uncertainties about the Charity’s ability to continue as a going concern.

The charity has opted to prepare its accounts using natural categories.

Changes to accounting estimates

No changes to accounting estimates have occurred in the reporting period.

Material prior period errors

No material prior year error have been identified in the reporting period.

The particular accounting policies adopted are set out below.

1. ACCOUNTING POLICIES

Income

Recognition of Income

These are included in the Statement of Financial Activities (SOFA) when:

▪ the charity becomes entitled to the income;

▪ it is more likely than not that the Directors will receive the resources; and

▪ the monetary value can be measured with sufficient reliability

Offsetting

There has been no offsetting of assets and liabilities, or income and expenses, unless required or permitted by the FRS 102 SORP or FRS 102.

Grants and Donations

Grants and donations are only included in the SoFA when the general income recognition criteria are met (5.10 to 5.12 FRS 102 SORP).

Tax reclaims on Donations and Gifts

Gift Aid receivable is included in income when there is a valid declaration from the donor. Any Gift Aid amount recovered on a donation is considered to be part of that gift and is treated as an addition to the same fund as the initial donation unless the donor or the terms of the appeal have specified otherwise.

Gifts in Kind

Gifts in kind for use by the charity are included in the SoFA as income from donations when receivable.

Legacies

Legacies are included in the SOFA when receipt is probable, that is, when there has been grant of probate, the executors have established that there are sufficient assets in the estate and any conditions attached to the legacy are either within the control of the charity or have been met.

Government Grants

The charity has not received any government grants in the reporting period.

Donated goods

Donated goods are measured at fair value (the amount for which the asset could be exchanged) unless impractical to do so.

The cost of any stock of goods donated for distribution to beneficiaries is deemed to be the fair value of those gifts at the time of their receipt and they are recognised on receipt. In the reporting period in which the stocks are distributed, they are recognised as an expense at the carrying amount of the stocks at distribution.

Goods donated for on-going use by the charity are recognised as tangible fixed assets and included in the SoFA as incoming resources when receivable.

Donated Services and Facilities

Donated services and facilities are included in the SOFA when received at the value of the gift to the charity provided the value of the gift can be measured reliably.

10

WORTHING BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31ST DECEMBER 2021

1. ACCOUNTING POLICIES (continued)

Donated services and facilities that are consumed immediately are recognised as income with an equivalent amount recognised as an expense under the appropriate heading in the SOFA.

Volunteer Help

The value of any voluntary help received is not included in the accounts but is described in the Directors' annual report.

Income from interest, royalties and dividends

This is included in the accounts when receipt is probable and the amount receivable can be measured reliably.

Expenditure and Liabilities

Liability recognition

Liabilities are recognised where it is more likely than not that there is a legal or constructive obligation committing the charity to pay out resources and the amount of the obligation can be measured with reasonable certainty.

Governance Costs

Support costs represent the cost of central functions, for example governance costs, payroll administration, information technology. Governance costs are those support costs which relate to public accountability of the charity and its compliance with regulation and good practice.

Employee benefits

Short term benefits including holiday pay are recognised as an expense in the period in which the service is received.

Redundancy cost

The charity made no redundancy payments during the reporting period.

Deferred income

No material item of deferred income has been included in the accounts.

Creditors

The charity has creditors which are measured at settlement amounts less any trade discounts. Debtors Debtors (including trade debtors and loans receivable) are measured on initial recognition at settlement amount after any trade discounts or amount advanced by the charity. Subsequently, they are measured at the cash or other consideration expected to be received. Taxation

Worthing Baptist Church is not registered for Value Added Tax and therefore expenditure is shown inclusive of Value Added Tax. Funds

Funds held consist of: ▪ Unrestricted General Funds which are used for general running of the charity ▪ Designated Funds which have been ring-fenced for a specific purpose by the Trustees ▪ Restricted Funds which must only be used for the purpose specified by the donor of those funds Tangible fixed assets for use by the charity:

These are capitalised if they can be used for more than one year, and cost at least £500. They are valued at cost or, if gifted, at the value to the charity on receipt.

The Trustees have chosen to adopt a policy in 2020 of revaluing the freehold land and buildings class of fixed assets. The Trustees intend to review the values over a 5 year rolling period for impairment.

Depreciation is calculated at a rate to write off the cost of tangible fixed assets on a straight line basis over their estimated useful lives. The rates applied per annum are as follows:

Fixtures, Fittings & Equipment 20% Straight Line Basis Computer and Sound Hardware 20% Straight Line Basis Freehold land and buildings Not depreciated

No depreciation is charged to freehold property as the residual value (based on prices at the time of revaluation in March 2021) is not materially different from the carrying amount of the asset and the asset is considered to have a very long useful life. The Trustees intend to review the value over a 5 year rolling period for impairment. Freehold land and buildings are primarily used for charitable purposes.

11

WORTHING BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2021

Fixed asset investments:

Investment properties are measured at fair value. The fair value at 31st December 2020 was determined by reference to a valuation for charity accounting purposes carried out in March 2021 by Crickmay Chartered Surveyors. This valuation consisted of the Church building and attached investment property. The fair value stated in these financial statements has been apportioned between the Church and the Manse according to the professional valuation conducted by Crickmay Chartered Surveyors. The Trustees are of the opinion that the value at 31st December 2020 is unlikely to be materially different to that of the valuation carried out in March 2021 and have therefore opted to use that figure.

2. TANGIBLE FIXED ASSETS

Cost
01-Jan-21
Additions
Disposals
Cost at
31-Dec-21
Depreciation
01-Jan-21
Charge
Disposals
Depreciation at
31-Dec-21
Net Book Value
31-Dec-21
Net Book Value
31-Dec-20		 Fixtures
Computer &
Freehold Land
Fittings &
Sound
Total
& Buildings
Equipment
Hardware
2020
£
£
£
£
2,005,000
17,107
25,248
2,047,355
-
-
-
-
-
-
-
-
2,005,000
17,107
25,248
2,047,355
-
17,107
25,248
42,355
-
-
-
-
-
-
-
-
-
17,107
25,248
42,355
2,005,000
-
-
2,005,000
2,005,000
-
-
2,005,000

The fair value of the freehold land and buildings are based on a valuation by an independent RICS valuer from Crickmay Chartered Surveyors on 23rd March 2021.

The carrying amount that would have been recognised had the freehold land and buildings been carried at historical cost is as follows:

Church £ 1,421,750 Manse £ 142,000

2.a) FIXED ASSET INVESTMENTS

2.a) FIXED ASSET INVESTMENTS
Carrying/(fair) value at beginning of period
Add: additions to investments
Less: disposals at carrying/fair value
Add: net gain on disposal
Carrying/(fair) value at end of year		 Investment
Investment
Investment
Investment
Property
Property
Property
Property
23 Christchurch 25a Christchurch
25 Flat 1
25 Christchurch
Christchurch
Freehold Interest
£
£
£
£
220,000
-
-
8,500
-
-
-
-
-
-
-
-
-
-
-
-
220,000
-
-
8,500

The carrying amount that would have been recognised had the investment property been carried at historical cost is as follows:

Investment Investment Investment Investment
Property Property Property Property
23 Christchurch 25a Christchurch 25 Flat 1 25 Christchurch
Christchurch Freehold Interest
£ £ £ £
At historical cost 49,492 22,931 22,931 0

The fair value of the investment properties are based on a valuation by an independent RICS valuer from Crickmay Chartered Surveyors on 23rd March 2021.

12

WORTHING BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2021

3. INCOME

Notes
a) Donations, Legacies & Similar Income
Gifts & Donations
Gift Aid Tax Refund
Legacies
b) Investments
Bank Interest
c) Other Trading Activities
Premises Hire
d) Charitable Activities
Activities & Events
e) Other
Sundry Income		 Unrestricted
Designated
Restricted
TOTAL
TOTAL
Funds
Funds
Funds
2021
2020
£
£
£
£
£
53,944
-
431
54,375
52,880
-
-
469
469
292
-
-
-
-
-
53,944
-
900
54,844
53,172
394
-
-
394
206
394
-
-
394
206
-
12,393
-
12,393
9,569
-
12,393
-
12,393
9,569
-
-
-
-
38
-
-
-
-
38
16
-
-
16
32
16
-
-
16
32

13

WORTHING BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2021

4. EXPENDITURE:

Note
a) Charitable Activities
Accommodation Costs
Catering Costs
Charitable Missions
Church Activities & Events
Cleaning, Utilities & Council Tax
Depreciation Expense
Equipment Costs
Gifts & Donations
Insurance Costs
Licenses & Subscriptions
Ministry Expenses
Office Costs
Pulpit Supplies
Repairs & Maintenance
Salaries & Wages
10
Travel & Subsistence
Sundry Expenses
Training Costs
Youth Ministry
b) Raising Funds
Expenditure on Flats
c) Governance Costs
Independent Examiners Fees
9
Legal & Professional Fees		 Unrestricted
Designated
Restricted
TOTAL
TOTAL
Funds
Funds
Funds
2021
2020
£
£
£
£
£
10,800
-
-
10,800
10,800
480
-
-
480
64
18
-
3,057
3,075
2,147
-
-
96
96
335
10,741
-
-
10,741
10,013
-
-
-
-
-
927
-
-
927
1,996
160
-
160
259
6,086
-
-
6,086
5,686
1,050
-
-
1,050
1,080
1,108
-
1,108
992
1,848
-
-
1,848
2,449
-
-
-
-
49,829
-
49,829
11,565
90,946
-
-
90,946
81,604
-
-
-
-
-
-
-
-
330
-
-
330
1,400
-
-
-
-
28
174,323
-
3,153
177,476
130,418
-
3,712
-
3,712
14,254
-
3,712
-
3,712
14,254
1,320
-
-
1,320
1,290
4,035
-
-
4,035
-
5,355
-
-
5,355
1,290

14

WORTHING BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31ST DECEMBER 2021

5. DESIGNATED FUNDS

5. DESIGNATED FUNDS
Fabric Fund
New Look - Church Development Fund
Fabric Fund
New Look - Church Development Fund		 CURRENT YEAR
Balance
Balance
01-Jan-21
Income
Expenditure
Transfers
31-Dec-21
£
£
£
£
£
13,909
12,393
3,712
-
22,590
368
-
-
-
368
14,277
12,393
3,712
-
22,958
PREVIOUS YEAR
Balance
Balance
01-Jan-20
Income
Expenditure
Transfers
31-Dec-20
£
£
£
£
£
18,594
9,569
14,254
-
13,909
368
-
-
-
368
18,962
9,569
14,254
-
14,277

The designated funds held are represented by the Charity's Cash reserves.

6. RESTRICTED FUNDS

6. RESTRICTED FUNDS
Auxiliaries Fund
Mission Fund
Auxiliaries Fund
Mission Fund		 CURRENT YEAR
Balance
Balance
01-Jan-21
Income
Expenditure
Transfers
31-Dec-21
£
£
£
£
£
2,689
900
3,153
2,261
2,697
(212)
-
-
-
(212)
2,477
900
3,153
2,261
2,485
PREVIOUS YEAR
Balance
Balance
01-Jan-20
Income
Expenditure
Transfers
31-Dec-20
£
£
£
£
£
2,701
38
50
-
2,689
(212)
-
-
-
(212)
2,489
38
50
-
2,477

Auxiliaries Fund - The fund accounts for the organisations and activities run under the aegis of the Charity, for the benefit of members and organisations and the wider community and is administered by the auxiliary organisations.

Mission Fund – The fund exists to process donations made by members and friends (and associated tax refunds) and the onwards transmission for the purpose of mission, both in the UK and overseas.

During 2019, a refund had to be made of donations to a project that could not be continued.

The restricted funds held are wholly represented by the cash reserves and debtors of the charity.

15

WORTHING BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2021

7. CASH AT BANK AND IN HAND

Cash at Bank and in Hand Unrestricted
Designated
Restricted
Total
Total
Fund
Fund
Fund
31-Dec-21
31-Dec-20
£
£
£
£
£
164,780
22,958
2,485
190,223
302,558
164,780
22,958
2,485
190,223
302,558

8. DEBTORS AND PREPAYMENTS

Prepayments
Gift Aid Tax Recoverable		 Unrestricted
Designated
Restricted
Total
Total
Fund
Fund
Fund
31-Dec-21
31-Dec-20
£
£
£
£
£
-
-
-
-
1,490
-
-
-
-
5,046
-
-
-
-
6,536

9. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Independent Examiners Fees
Member Loans
Accrued Payroll Taxes
Accounts Payable		 Unrestricted
Designated
Restricted
Total
Total
Fund
Fund
Fund
31-Dec-21
31-Dec-20
£
£
£
£
£
30
-
-
30
1,290
2,000
-
-
2,000
2,000
-
-
-
-
1,723
3,009
-
-
3,009
-
5,039
-
-
5,039
5,013

10. CREDITORS: AMOUNTS FALLING DUE IN MORE THAN ONE YEAR

The Charity held no long term liabilities during this or the previous financial period.

16

WORTHING BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31ST DECEMBER 2021

11. STAFF COSTS AND NUMBERS

11. STAFF COSTS AND NUMBERS
Gross Wages and Salaries
Gross Wages and Salaries (prior year, paid this year)
Employer's National Insurance Costs
Pension Contributions
Employees who were engaged in each of the following activities:
Activities in furtherance of organisation's objects		 2021
£
66,540
-
6,392
13,150
86,083
2021
2		 2020
£
63,465
-
6,353
11,786
81,604
2020
2

The organisation operates a PAYE scheme to pay all employed members of staff and no employees received emoluments in excess of £60,000 (2020: None). The two employees consist of the Minister and Assistant Minister who are also Trustees.

12. PAYMENTS TO TRUSTEES AND RELATED PARTY TRANSACTIONS

In this financial period the charity has paid trustees remuneration and benefits (including Employer NI and Employer Pension contributions) for their roles as Church Minister and Assistant Church Minister as follows:

Name of Trustee
Rev Mike Parker(Minister)
Rev Peter Heath(Assistant Minister)		 Legal authority
Governing document
Governing document		 Amounts paid or benefit value
Remuneration
Employer NI
2021
2020
and Pension
Total
Total
£
£
£
£
41,156
13,687
54,843
52,158
25,384
5,856
31,239
30,610
66,540
19,542
86,083
82,768

No trustees were remunerated for their role as a trustee.

In this financial period, in addition to the remuneration and benefits stated above, the following payments were made:

Name of Trustee
Rev Mike Parker(Minister)
Rev Peter Heath(Assistant Minister)		 Manse utilities Training course Accommodation General expense
2021
2020
Total
Total
£
£
£
£
£
£
2,500
1,500
2,291
6,291
5,284
-
-
10,800
657
11,457
12,320
Amounts paid or benefit value
2,500
0
12,300
2,948
17,748
17,604

These above payments were made to trustees in their capacity as Minister and Assistant Minister of Worthing Baptist Church, in furthering the Charity's objects.

The only other payments made to the trustees consisted of reimbursements for items purchased on behalf of the Church in furthering the Charity's objects.

No other payments were made to trustees or any persons connected with them during this financial year. No other material transactions took place between the organisation and a trustee or any person connected with them. No other trustees received any remuneration or benefits in kind during the financial year.

13. RISK ASSESSMENT

The trustees actively review the major risks which the charity faces on a regular basis and believe that maintaining the free reserves stated, combined with the annual review of the controls over key financial systems carried out on an annual basis will provide sufficient resources in the event of adverse conditions. The trustees have also examined other operational and business risks which they face and confirm that they have established systems to mitigate the significant risks.

17

WORTHING BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31ST DECEMBER 2021

14. RESERVES POLICY

The trustees have considered the level of reserves they wish to retain, appropriate to the charity's needs. This is based on the charity's size and the level of financial commitments held. The trustees aim to ensure the charity will be able to continue to fulfil its charitable objectives even if there is a temporary shortfall in income or unexpected expenditure. The trustees will endeavour not to set aside funds unnecessarily.

15. PUBLIC BENEFIT

The charity acknowledges its requirement to demonstrate clearly that it must have charitable purposes or ‘aims’ that are for the public benefit. Details of how the charity has achieved this are provided in the Trustees report. The Trustees confirm that they have paid due regard to the Charity Commission guidance on public benefit before deciding what activities the charity should undertake.

16. PENSIONS

The Church is an employer participating in a pension scheme known as the Baptist Pension Scheme (“the Scheme”), which was known as the Baptist Ministers’ Pension Fund until 31 December 2011 (“The Ministers’ Fund”). The Scheme is a separate legal entity which is administered by the Pension Trustee (Baptist Pension Trust Limited).

The Minister(s) is / are eligible to join the Scheme, which was not contracted out of the State Second Pension. In addition, from 1[st ] January 2012 some members of the church staff are also eligible to join the scheme.

The main benefits provided by the Ministers ‘ Fund for service prior to 1 January 2012 are 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. From 1 January 2009 Ministers paid 8% of their Pensionable Income and the employer paid 16%. The Fund started in 1925, but was closed to future accrual of defined benefits on 31 December 2011.

From January 2012, pension provision is being made through the Defined Contribution (DC) Plan within the Scheme. Members pay 8% of their Pensionable Income and employers pay 6% of members’ Pensionable Income into individual pension accounts which are operated and managed on behalf of the Pension Trustee by Legal and General Life Assurance Society Limited. In addition, the employer pays a further 4% of Pensionable Income to Cover Death in Service Benefits, the administration of the DC Plan, and an associated insurance policy which provides income protection for Scheme members in the event that they are unable to work due to long-term incapacity. This income protection policy has been insured by the Baptist Union of Great Britain with Unum Limited.

A formal valuation of the Ministers’ Fund was performed at 31 December 2010 by a professionally qualified Actuary using the Projected Unit Method. The market value of the Fund’s assets at the valuation date was £129,866,000.

That valuation of the Ministers’ Fund revealed a deficit of assets compared with the value of liabilities of £69,700,000 (equivalent to a past service funding level of 65%). As a result of the valuation, in addition to the contributions to the DC Plan set out above, deficiency contributions from employers to the Ministers’ Fund (now the DB Plan within the Scheme) were set at 8.4% of Pensionable Income for 2012 and 11% of Pensionable Income for 2013 onwards. The Recovery Plan envisaged deficiency contributions being required for 24 years.

A full valuation of the DB Plan takes place every three years. The valuation on 31 December 2019 showed that the estimated deficit has reduced to £18,000,000. There have been positive developments over the last three-year period that have led to a significant reduction in debt. Consequently it is now expected that contributions might cease in June 2026; and there was a temporary reduction of 50% to the deficit recovery contributions put in place for the second half of 2020 to alleviate some of the additional financial pressure on employers during the Coronavirus pandemic.

Movements in the deficit in 2020

There are two substantial developments coming into play since December 2019 that have an impact on DB Plan funding:

Although mitigated to some extent by the Trustee’s relatively low-risk investment strategy, the Coronavirus pandemic has impacted financial markets and led to a reduction in the value of some DB Plan investments.

The Government is currently consulting on how and when to change how the Retail Prices Index (RPI) is calculated to bring it more into line with the, generally lower, Consumer Prices Index (CPI) It is anticipated that this change will lead to a lower value for some of the RPI-linked assets held by the DB Plan. This impact is partially offset by an assumed reduction in the cost of providing deferred benefits which are revalued up to retirement in line with RPI.

The DB Plan’s actual financial position moves daily with changes in financial market conditions. However, in the agreed deficit recovery contributions an allowance has been made for a £10m deterioration in the deficit since 31 December 2019 to take account of the current impact of the two items above.

18

WORTHING BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2021

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 schemes, the profit and loss charge for the period represents the employer contributions payable. The total pension cost for the Church is £13,150(2020: £12,950).

(Consequent upon the departure of the Minister from the church in 2009, the church had a cessation event under Section 75 of the Pensions Act 1995. This makes the church liable for the proportion of the overall deficit (assessed by reference to the cost of securing benefits by the purchase of annuities) applicable to its previous Ministers who were members of the Fund. It is not possible to quantify this debt without an actuarial calculation. In order, to avoid the cost of such calculation and because the church may not be able to continue its charitable activities following payment of the employer debt which arises upon a cessation event, the Pension Fund Trustee (after consulting the Pensions Regulator) is not currently pursuing the employer debt, but is instead permitting the church to pay the ongoing deficiency contributions outlined above. However, the Pension Trustee has the right to quantify and seek payment of the debt at any time at its discretion.)

The next actuarial valuation of the DB Plan within the Scheme is due to take place not later than as at 31 December 2022.

2021
£
Cash used in operating activities
(a)
(124,728)
Cash used from investing activities
Proceeds from the sale of investment property
-
Purchase of investments
-
Rent from investments
12,393
Cash provided by (used in)
investing activities
12,393
Cash flows from financing activities
Introduction/(Repayment) of long term borrowing
-
Cash used in financing activities
-
Increase/(decrease) in cash and
cash equivalents in the year
(112,335)
Cash and cash equivalents at the
start of the year
1,351,452
TOTAL cash and cash equivalents
at the end of the year
(b)
1,239,117
(a) Reconciliation of net movement in funds to net cash flow from operating activities
2021
£
Net movement in funds as per Statement of Financial Activities
(118,897)
Add back depreciation charge
-
Deduct rent from investments
(12,393)
Decrease/(increase) in debtors
6,536
Increase/(decrease) in creditors
26
(124,728)
Net cash used in operating activities
(b) Analysis of cash and cash equivalents
2021
£
Cash at bank and in hand
190,223
Total cash and cash equivalents
190,223		 2020
738,781
259,900
-
9,569
269,469
-
-
1,008,250
343,202
1,351,452
2020
748,350
0
(9,569)
0
0
738,781
2020
302,558
302,558

19