ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023
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 to 6 | Trustees' Report |
| Page 7 | Independent Examiner's Report to the Trustees |
| Page 8 | Statement of Financial Activities |
| Page 9 | Balance Sheet |
| Pages 10 to 18 | Notes to the Financial Statements |
| Page 19 | Statement of Cashflows |
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WORTHING BAPTIST CHURCH
LEGAL AND ADMINISTRATIVE INFORMATION
CHARITY REGISTRATION NUMBER 1130541
DATE OF REGISTRATION 14th July 2009 START OF FINANCIAL YEAR 1st January 2023 END OF FINANCIAL YEAR 31st December 2023 LEGAL STATUS Registered Charity CUSTODIAN TRUSTEE The Baptist Union Corporation Limited
TRUSTEES WHO SERVED DURING Revd M Parker Minister THE YEAR TO 31ST DECEMBER 2023 Revd P Heath Assistant Minister Mrs F Ranger Church Secretary M Ramos Mr A Duffield Ms M TaruvingaTreasurer Mrs W Miles
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
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WORTHING BAPTIST CHURCH
TRUSTEES REPORT
FOR THE YEAR ENDED 31ST DECEMBER 2023
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 Festival. 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 complies with the regulations set out by the Baptist Union with regard to safeguarding of children and vulnerable adults, volunteer helpers being DBS-checked.
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WORTHING BAPTIST CHURCH
TRUSTEES REPORT (Continued)
FOR THE YEAR ENDED 31ST DECEMBER 2023
Achievements & Performance
Worthing Baptist Church has continued to support and serve members, regular attendees, and others in the community who have a range of needs. Often the church ministers are the first point of contact for people who need help. The ministers have been able to direct people towards their GP, mental health professionals, counsellors, or Citizens Advice. Through the church's teaching and discussion group resources, many are encouraged to grow in spiritual maturity, spiritual practices, self-awareness, awareness of others' needs locally and globally and to seek help when needed. As one of a small minority of fully LGBT+ affirming Baptist churches registered for same-sex marriage, Worthing Baptist Church seeks to actively work for justice and LGBT+ inclusion in the following places:
1) In the immediate community, for example through our Worthing Pride coffee morning with live worship music. 2) Among South Eastern Baptist Association ministers and churches by initiating and contributing to discussions about LGBT+ affirmation and sharing the story of our church. 3) In the Baptist Union of Great Britain as a whole by challenging rules that prevent ministers in same-sex marriages from serving as accredited ministers.
During the year we also raised awareness within the church and wider about Addiction, mainly through our twelve-week preaching series based on the 12-steps. Our minister also developed our relationship with AA and a related drop-in centre. We also helped promote Black History Month, during which we showed a relevant, challenging movie (Till).
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 continue in a long-term income shortfall, mitigated to a significant extent by reverting to just one paid Minister, with more volunteer members stepping up to assist with achieving our objectives. Nevertheless, the charity’s overall financial position remains healthy, with total funds of £2.33m 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.
In addition, the church receives monthly rental income from a flat situated above the church office, and a threebedroomed terraced property acquired in the latter part of the year with funds from the sale of our former Manse. The remaining proceeds from the sale continue to fund activities as part of our ongoing strategy for the foreseeable future.
General fund income continues to be lower than in pre-Covid years, however there has been an encouraging increase in the percentage of giving being on a Gift Aided basis. The reduction from two ministers to one in the latter part of the year has enabled a reduction in the deficit, the full extent of which will become more apparent from 2024 onwards.
Policies
Risk
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.
Reserves
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.
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WORTHING BAPTIST CHURCH
TRUSTEES REPORT (Continued) FOR THE YEAR ENDED 31ST DECEMBER 2023
Trustees Responsibilities
The Charities Act 2011 require the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the surplus or deficit of the charity for that period. In preparing those financial statements the Trustees are required to:
i) Select suitable accounting policies and apply them consistently
ii) Make judgements and estimates that are reasonable and prudent
iii) Prepare financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in existence.
The Trustees are responsible for keeping proper accounting records, which disclose with reasonable accuracy at any time the financial position of the charity. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by the Trustees on the :
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Signed on their behalf by :
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Print Name:
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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 2023.
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:
-
the accounting records were not kept in accordance with section 130 of the Charities Act; or
-
the accounts did not accord with the accounting records; or
-
the accounts did 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 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 FCIE MAAT Independent Examiners Ltd Unit 2 The Broadbridge Business Centre Delling Lane Bosham West Sussex PO18 8NF
Signed :
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Date: 29.8.24
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WORTHING BAPTIST CHURCH
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31ST DECEMBER 2023
| 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 2 NET INCOME/(EXPENDITURE) Transfer Between Funds NET MOVEMENT IN FUNDS RECONCILIATION OF FUNDS: Total Funds Brought Forward TOTAL FUNDS CARRIED FORWARD |
Unrestricted Designated Restricted TOTAL TOTAL Funds Funds Funds 2023 2022 £ £ £ £ £ 48,334 - 763 49,097 48,032 20,542 - - 20,542 1,026 - 11,459 - 11,459 10,652 233 - - 233 54 - - - - 7,168 |
|---|---|
| 69,109 11,459 763 81,331 66,932 |
|
| 146,575 428 2,867 149,870 153,522 - 1,372 - 1,372 2,030 6,358 - - 6,358 1,350 |
|
| 152,933 1,800 2,867 157,600 156,902 |
|
| (83,824) 9,659 (2,104) (76,269) (89,970) 72,849 - - 72,849 - (10,975) 9,659 (2,104) (3,420) (89,970) (1,909) - 1,909 - - |
|
| (12,884) 9,659 (195) (3,420) (89,970) 2,294,126 29,954 4,604 2,328,684 2,418,654 |
|
| 2,281,242 39,613 4,409 2,325,264 2,328,684 |
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 18 form part of these financial statements.
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WORTHING BAPTIST CHURCH
BALANCE SHEET
AS AT 31ST DECEMBER 2023
| Notes Fixed Assets Tangible Assets 2 Fixed Asset Investments 2a Current Assets Debtors & Prepayments 8 Cash at Bank and in Hand 7 Total Current Assets 9 NET CURRENT ASSETS TOTAL ASSETSless current liabilities 10 NET ASSETS Funds of the Charity General Funds Designated Funds 5 Restricted Funds 6 Total Funds Creditors: amounts falling due in more than one year Creditors: amounts falling due within one year |
Unrestricted Designated Restricted 31-Dec-23 31-Dec-22 Funds Funds Funds Total Total £ £ £ £ £ 1,239,224 - - 1,239,224 2,005,000 690,445 - - 690,445 228,500 - - - - - 356,666 39,613 4,409 400,688 97,244 |
|---|---|
| 356,666 39,613 4,409 400,688 97,244 |
|
| 5,093 - - 5,093 2,060 351,573 39,613 4,409 395,595 95,184 |
|
| 2,281,242 39,613 4,409 2,325,264 2,328,684 - - - - - |
|
| 2,281,242 39,613 4,409 2,325,264 2,328,684 |
|
| 2,281,242 - - 2,281,242 2,294,126 - 39,613 - 39,613 29,954 - - 4,409 4,409 4,604 |
|
| 2,281,242 39,613 4,409 2,325,264 2,328,684 |
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Approved by the Trustees on the .................................................
Signed on their behalf by ....................................................................................., Trustee Print Name:
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WORTHING BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2023
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.
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WORTHING BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2023
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
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.
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WORTHING BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2023
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-23 Additions Disposals - Manse Cost at 31-Dec-23 Depreciation 01-Jan-23 Charge Disposals Depreciation at 31-Dec-23 Net Book Value 31-Dec-23 Net Book Value 31-Dec-22 |
Fixtures Computer & Freehold Land Fittings & Sound Total & Buildings Equipment Hardware 2023 £ £ £ £ 2,005,000 17,107 25,248 2,047,355 - 9,882 - 9,882 (775,000) - - (775,000) |
|---|---|
| 1,230,000 26,989 25,248 1,282,237 |
|
| - 17,107 25,248 42,355 658 - - 658 - - - - |
|
| 658 17,107 25,248 43,013 |
|
| 1,229,342 9,882 - 1,239,224 |
|
| 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 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 Total Property Property Property Investment 23 Christchurch 3 Sawmills 25 Christchurch Properties Freehold Int £ £ £ 220,000 - 8,500 228,500 - 461,945 - 461,945 - - - - - - - - |
|---|---|
| 220,000 461,945 8,500 690,445 |
The carrying amount that would have been recognised had the investment property been carried at historical cost is as foll
Investment Investment Investment Investment Property Property Property Property 23 Christchurch25a Christchurc 25 Flat 1 25 Christchurch ChristchurchFreehold Interes £ £ £ £ 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.
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WORTHING BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2023
| 3. INCOME Notes a) Donations, Legacies & Similar Income Gifts & Donations Gift Aid Tax Refund 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 2023 2022 £ £ £ £ £ 39,357 - 763 40,120 42,490 8,977 - - 8,977 5,542 |
|---|---|
| 48,334 - 763 49,097 48,032 |
|
| 20,542 - - 20,542 1,026 |
|
| 20,542 - - 20,542 1,026 |
|
| - 11,459 - 11,459 10,652 |
|
| - 11,459 - 11,459 10,652 |
|
| 233 - - 233 54 |
|
| 233 - - 233 54 |
|
| - - - - 7,168 |
|
| - - - - 7,168 |
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WORTHING BAPTIST CHURCH NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2023
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 Repairs & Maintenance Travel & Subsistence Sundry Expenses Training Costs Youth Ministry b) Raising Funds Expenditure on Flats c) Governance Costs Independent Examiners Fees Legal & Professional Fees |
Unrestricted Designated Restricted TOTAL TOTAL Funds Funds Funds 2023 2022 £ £ £ £ £ 11,935 - - 11,935 13,020 960 - - 960 1,048 - - 2,721 2,721 3,169 - - - (565) 8,559 - - 8,559 11,115 658 - - 658 - 3,511 - - 3,511 9,106 36 - 146 182 587 6,514 - 6,514 6,395 1,200 - - 1,200 1,184 1,032 - 1,032 1,667 2,138 - - 2,138 1,582 5,204 428 - 5,632 6,384 - - - - 284 - - 284 420 5,380 - - 5,380 (464) 166 - - 166 - |
|---|---|
| 146,575 428 2,867 149,870 153,522 |
|
| - 1,372 - 1,372 2,030 |
|
| - 1,372 - 1,372 2,030 |
|
| 1,800 - - 1,800 1,350 4,558 - - 4,558 - |
|
| 6,358 - - 6,358 1,350 |
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WORTHING BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2023
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-23 Income Expenditure Transfers 31-Dec-23 £ £ £ £ £ 29,586 11,459 1,800 - 39,245 368 - - - 368 |
|
| 29,954 11,459 1,800 - 39,613 |
|
| PREVIOUS YEAR | |
| Balance Balance 01-Jan-22 Income Expenditure Transfers 31-Dec-22 £ £ £ £ £ 22,590 10,652 1,818 (1,838) 29,586 368 - - - 368 |
|
| 22,958 10,652 1,818 (1,838) 29,954 |
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-23 Income Expenditure Transfers 31-Dec-23 £ £ £ £ £ 2,978 763 2,867 - 874 1,626 - - 1,909 3,535 |
|
| 4,604 763 2,867 1,909 4,409 |
|
| PREVIOUS YEAR | |
| Balance Balance 01-Jan-22 Income Expenditure Transfers 31-Dec-22 £ £ £ £ £ 2,697 1,339 1,058 - 2,978 (212) - - 1,838 1,626 |
|
| 2,485 1,339 1,058 1,838 4,604 |
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.
The restricted funds held are wholly represented by the cash reserves and debtors of the charity.
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WORTHING BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2023
7. CASH AT BANK AND IN HAND
| 7. CASH AT BANK AND IN HAND | |
|---|---|
| Cash at Bank and in Hand | Unrestricted Designated Restricted Total Total Fund Fund Fund 31-Dec-23 31-Dec-22 £ £ £ £ £ 356,666 39,613 4,409 400,688 97,244 |
| 356,666 39,613 4,409 400,688 97,244 |
8. DEBTORS AND PREPAYMENTS
| Prepayments Gift Aid Tax Recoverable |
Unrestricted Designated Restricted Total Total Fund Fund Fund 31-Dec-23 31-Dec-22 £ £ £ £ £ - - - - - - - - - - |
|---|---|
| - - - - - |
9. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
| Independent Examiners Fees Member Loans Accounts Payable |
Unrestricted Designated Restricted Total Total Fund Fund Fund 31-Dec-23 31-Dec-22 £ £ £ £ £ 420 - - 420 60 2,000 - - 2,000 2,000 2,673 - - 2,673 - |
|---|---|
| 5,093 - - 5,093 2,060 |
10. CREDITORS: AMOUNTS FALLING DUE IN MORE THAN ONE YEAR
The Charity held no long term liabilities during this or the previous financial period.
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WORTHING BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31ST DECEMBER 2023
11. STAFF COSTS AND NUMBERS
| 2023 £ Gross Wages and Salaries 82,105 Gross Wages and Salaries (prior year, paid this year) - Employer's National Insurance Costs 7,045 Pension Contributions 9,848 98,998 Employees who were engaged in each of the following activities: 2023 Activities in furtherance of organisation's objects 2 |
2022 £ 79,875 - 6,216 12,785 |
|---|---|
| 98,875 | |
| 2022 2 |
The organisation operates a PAYE scheme to pay all employed members of staff and no employees received emoluments in excess of £60,000 (2022: None). The two employees consist of the Minister and Assistant Minister who are also
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 | Legal authority | Legal authority | Amounts paid or | benefit value | |||
|---|---|---|---|---|---|---|---|
| Remuneration | Employer NI | 2023 | 2022 | ||||
| and Pension | Total | Total | |||||
| £ | £ | £ | £ | ||||
| Rev Mike Parker (Minister) | Governing document | 43,069 | 10,816 | 53,885 | 55,107 | ||
| Rev Peter Heath (Assistant | Governing document | 25,417 | 6,077 | 31,494 | 32,009 | ||
| Minister) | 68,486 | 16,893 | 85,379 | 87,116 | |||
| 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 | Amounts | paid or benefit value | |||||
| Manse | Training | Accommodatio | General | 2023 | 2022 | ||
| utilities | course | n | expenses | Total | Total | ||
| £ | £ | £ | £ | £ | £ | ||
| Rev Mike Parker (Minister) | - | - | 18,120 | 2,053 | 20,173 | 9,191 | |
| Rev Peter Heath (Assistant Minister) | - | 11,935 | 2,722 | 14,657 | 13,569 | ||
| M Tauvinga | - | - | - | 28 | 28 | - | |
| F Ranger | - | - | - | 3,219 | 3,219 | - | |
| - | - | 30,055 | 8,022 | 38,077 | 22,760 |
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.
17
WORTHING BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31ST DECEMBER 2023
13. 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.
14. 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.
18
WORTHING BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2023
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.
(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
The next actuarial valuation of the DB Plan within the Scheme is due to take place not later than as at 31 December
| 2023 £ Cash used in operating activities (a) (84,037) Cash used from investing activities Proceeds from the sale of investment property - Purchase of investments - Rent from investments 11,459 Cash provided by (used in) investing activities 11,459 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 (72,578) Cash and cash equivalents at the start of the year 313,314 TOTAL cash and cash equivalents at the end of the year (b) 240,736 (a) Reconciliation of net movement in funds to net cash flow from operating activities 2023 £ Net movement in funds as per Statement of Financial Activities (76,269) Add back depreciation charge 658 Deduct rent from investments (11,459) Decrease/(increase) in debtors - Increase/(decrease) in creditors 3,033 (84,037) Net cash used in operating activities (b) Analysis of cash and cash equivalents 2023 £ Cash at bank and in hand 400,688 Total cash and cash equivalents 400,688 |
2022 |
|---|---|
| (100,622) | |
| - - 10,652 |
|
| 10,652 | |
| - | |
| - | |
| (89,970) | |
| 403,284 | |
| 313,314 | |
| 2022 (89,970) - (10,652) - - |
|
| (100,622) | |
| 2022 97,244 |
|
| 97,244 |
19