Charity registration number: 1130672
Grace Baptist Church, Southport
FINANCIAL STATEMENTS AND TRUSTEES REPORT FOR THE YEAR ENDED 31 DECEMBER 2022
http://gracebaptist.org.uk/
GRACE BAPTIST CHURCH, SOUTHPORT
INDEX TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
| Page | |
|---|---|
| Legal and administrative information | 1 |
| Trustees' report | 2 - 5 |
| Independent examiner's report | 6 |
| Statement of financial activities | 7 |
| Balance sheet | 8 |
| Notes to the financial statements | 9 - 13 |
GRACE BAPTIST CHURCH, SOUTHPORT
LEGAL AND ADMINISTRATIVE INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2022
| Trustees: | Zelda Bentham | appointed - 18 May 2022 |
|---|---|---|
| Rev Stuart Harding | resigned - 31 July 2022 | |
| Maciek Stolarski | appointed - 28 February 2023 | |
| David Sutton | appointed - 28 February 2023 | |
| Nathan Ward | ||
| Treasurer: | Bill Harrison | appointed - 24 September 2022 |
| Steve Wright | died - 29 June 2022 | |
| Charity number: | 1130672 | |
| Charity Address: | 40 Market Street | |
| Southport | ||
| PR8 1HJ | ||
| Charity Website: | http://gracebaptist.org.uk/ | |
| Independent Examiners: | O J GrillsFCA | |
| J A Fell & Co | ||
| 40 Hoghton Street | ||
| Southport | ||
| PR9 0PQ | ||
| Bankers: | Lloyds Bank | |
| 23 London Street | ||
| Southport | ||
| PR9 0UX |
Page 1 of 13
GRACE BAPTIST CHURCH, SOUTHPORT
TRUSTEES' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
The trustees submit their annual report and financial statements for the year ended 31 December 2022. The trustees have adopted the provisions of the Statement of Recommended Practice (SORP) '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)', issued October 2019 in preparing the annual report and financial statements of the charity.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
The organisation is a Charitable Trust which was registered on 22 July 2009 with the Charity Commission (previously excepted registration). It is governed by its Constitution adopted on 10 June 2009 as amended 26 September 2009 and 24 March 2010.
Recruitment and appointment of the trustees
The board seeks to achieve a balance of skills and experience amongst the trustees. In order to maintain this, the board reviews its skill and experience mix each year and seeks to recruit new trustees when necessary who are voted in by a majority vote of the church membership.
In appointing trustees due consideration is given to ensuring that the trustees have, between them, the skills and experience necessary to manage the charity effectively and in accordance with charity law.
Normally, the Elders and Deacons form the Charity Trustees. Since February 2022 the charity had no Elders and only one Deacon, until his resignation in September 2022. Temporary Trustees were appointed to serve until the constitutional provision of Elders and Deacons are satisfactorily established to meet the requirements of the Charities Commission.
Trustee induction and training
The current board of trustees will provide any new trustee with an overview of the timetable of board meetings, copies of the recent minutes of meetings, the recent reports and accounts and explains their general and specific responsibilities.
Ongoing training is provided by the board of trustees as and when the need arises.
Risk management
The trustees are aware of the major risks to which the charity is exposed to and have plans in place to mitigate these as far as possible. These issues included financial controls, health and safety and safeguarding.
Page 2 of 13
GRACE BAPTIST CHURCH, SOUTHPORT
TRUSTEES' REPORT (continued)
FOR THE YEAR ENDED 31 DECEMBER 2022
OBJECTIVES AND ACTIVITIES
Objects of the charity
The trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives and in planning future activities.
The principal object of the charity is the advancement of the Christian faith according to Baptist principles and in accordance with the Basis of Faith. The charity may also carry out other charitable purposes in the United Kingdom and/or other parts of the world but in practice operates almost entirely locally.
ACHIEVEMENTS AND PERFORMANCE
When planning our activities for the year, we consider the public benefit and, in particular, the advancement of true religion. We preach the truths of Scripture to challenge and help ordinary people to live out their faith through worship, prayer, learning about the Bible and developing their personal knowledge of and trust in Jesus.
This is also supported through practical pastoral care and support for members and others in the local area, particularly those attending the regular services.
Grace Baptist Church is committed to encouraging as many people as possible to worship with us and to become part of our community of faith. We provide activities for all age groups, both on Sundays and on week days. These include Bible teaching as well as craft and other more energetic activities. Each week Southport Foodpantry (run in co-operation with Compassion Acts Ltd) uses our premises to supply food to those in longer term need of practical support.
As an outreach to the international community, we provide friendly, weekly English classes, attracting up to around 15 non-English speakers from many countries. Examples of our outreach activities are separate ladies and men's meeting, childrens / youth activities and toddler groups. We offer open invitations to events such as barbeques, coffee mornings, craft evenings and walks in the countryside.
The church runs and maintains its own minibus, which provides transport for the elderly and disabled to church meetings on a weekly basis and transporting the youth to activities and Christian summer camps. The minibus is equipped with a tail lift and has space for wheelchairs.
The church relies extensively on the generous support of volunteers who deliver a substantial part of the programme. This includes those who lead and support the various youth activities; transport the older church members; teach English; lead craft activities; provide food for the hungry; help older and sick friends; clean and maintain the buildings; and carry out administrative and financial work.
Page 3 of 13
GRACE BAPTIST CHURCH, SOUTHPORT
TRUSTEES' REPORT (continued)
FOR THE YEAR ENDED 31 DECEMBER 2022
FINANCIAL REVIEW
Principal funding sources
The major source of income for the charity has come from donations from the church congregation to whom the church are very grateful as it supports the charity in accomplishing its objectives more effectively.
Reserves policy
The Charity’s policy on reserves is to generate and maintain a balance which is sufficient:
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to preserve the financial viability of the Charity in the event that unforeseen and/or
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= unavoidable circumstance precipitate a short-term fall in its income; and to enable the Charity, in the interests of meeting its objectives, to undertake from time to time the setting up of new and innovative projects on a pilot basis to demonstrate the
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= viability and potential benefits of such activities as a precursor to securing the external funding necessary to maintain such projects on an on-going basis.
For these purposes the Charity will endeavour to generate and maintain reserves which would equate to at least 3 months expenditure.
As at 31 December 2022, 3 months costs was calculated to be £33,954, whilst the amount held in unrestricted reserves was £290,746. The trustees appreciate that this level is in excess of what is immediately needed but is deemed appropriate for the time being as the trustees consider how to best apply the funding to further achieve its charitable objectives.
Remuneration of Trustees
All trustees act in a voluntary capacity and receive no remuneration or other material benefits from their services to the Charity.
Out-of-pocket expenses necessarily and reasonably incurred by trustees in promoting the purposes of the Charity are reimbursed at cost.
Financial review of the year
In the year to 31 December 2022 income of £129,742 was received (2021 - £232,117). Expenditure during the year totalled £135,814 (2021 - £162,456) which generated a minor shortfall for the year of £6,072 (2021 - £69,661 surplus).
For clarity, whilst the charity receives the benefit of being able to use the property from which it operates to fulfil its charitable objectives, the property asset is held in a separate trust which is why no amount is included in these accounts for this asset.
Page 4 of 13
GRACE BAPTIST CHURCH, SOUTHPORT
TRUSTEES' REPORT (continued)
FOR THE YEAR ENDED 31 DECEMBER 2022
PLANS FOR FUTURE PERIODS
General plans
The charity will continue its operations throughout the year, with a view to further its objectives as much as practical.
STATEMENT OF TRUSTEES' RESPONSIBILITIES
Law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the charity's financial activities during the period and of its financial position at the end of the period. In preparing financial statements giving a true and fair view, the trustees should follow best practice and:
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a. select suitable accounting policies and apply them consistently;
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b. observe the methods and principals in the Charities SORP;
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c. make judgements and estimates that are reasonable and prudent;
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d. state whether applicable UK accounting standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements;
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e. prepare the financial statements on a going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011. 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.
This report was approved by the board of trustees on 18 July 2023 and signed on its behalf by:
……………………………… Zelda Bentham - trustee
Page 5 of 13
GRACE BAPTIST CHURCH, SOUTHPORT
INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF GRACE BAPTIST CHURCH, SOUTHPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
I report on the financial statements of the charity for the year ended 31 December 2022, which are set out on pages 7 to 13.
Respective responsibilities of trustees and examiner
The charity's trustees are responsible for the preparation of the accounts. The charity’s trustees consider that an audit is not required for this year under section 144 of the Charities Act 2011 (the Charities Act) and that an independent examination is needed.
It is my responsibility to:
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(i) examine the accounts under section 145 of the Charities Act,
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(ii) to follow the procedures laid down in the general Directions given by the Charity Commission (under section 145(5)(b) of the Charities Act, and
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(iii) to state whether particular matters have come to my attention.
Basis of independent examiner's statement
My examination was carried out in accordance with general directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a ‘true and fair’ view and the report is limited to those matters set out in the statement below.
Independent examiner's statement
In connection with my examination, no matter has come to my attention:
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a) which gives me reasonable cause to believe that in, any material respect, the requirements:
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to keep accounting records in accordance with section 130 of the Charities Act; and
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to prepare accounts which accord with the accounting records and comply with the accounting requirements of the Charities Act
have not been met; or
- b) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
OJ Grills FCA (Independent examiner)
Dated: ….........................
for and on behalf of JA Fell and Company 40 Hoghton Street, Southport, PR9 0PQ
Page 6 of 13
GRACE BAPTIST CHURCH, SOUTHPORT
STATEMENT OF FINANCIAL ACTIVITIES
FOR THE YEAR ENDED 31 DECEMBER 2022
| Unrestricted Restricted Total funds funds funds 2022 2022 2022 Notes £ £ £ INCOMING RESOURCES Incoming resources from generated funds: Voluntary income: Donations and gifts 2 121,859 2,629 124,488 Investment income 2 4,478 - 4,478 Other income 2 776 - 776 TOTAL INCOMING RESOURCES 127,113 2,629 129,742 RESOURCES EXPENDED Charitable activities 3 127,184 8,000 135,184 Governance 4 630 - 630 TOTAL RESOURCES EXPENDED 127,814 8,000 135,814 (701) (5,371) (6,072) Fund balances at 1 January 2022 291,447 58,183 349,630 Fund balances at 31 December 2022 290,746 52,812 343,558 NET INCOMING RESOURCES FOR THE YEAR |
Total funds 2021 £ 225,865 5,170 1,082 232,117 161,844 612 162,456 69,661 279,969 349,630 |
|---|---|
The notes on pages 9 - 13 form part of these financial statements.
Page 7 of 13
GRACE BAPTIST CHURCH, SOUTHPORT
BALANCE SHEET
AS AT 31 DECEMBER 2022
| Notes CURRENT ASSETS Tax reclaim due Cash at bank and in hand PAYE refund due CURRENT LIABILITIES Accruals PAYE owed Other creditors Pensions due NET CURRENT ASSETS TOTAL NET ASSETS FUNDS Restricted funds 10 Unrestricted funds 9 TOTAL FUNDS |
Total funds 2022 £ 13,855 330,615 4,660 349,130 4,609 - 237 726 5,572 343,558 343,558 52,812 290,746 343,558 |
Total funds 2021 £ 4,884 346,231 - 351,115 612 769 - 104 1,485 349,630 349,630 58,183 291,447 349,630 |
|---|---|---|
Approved and signed on behalf of the board on 18 July 2023 by:
……………………………… Zelda Bentham - trustee
The notes on pages 9 - 13 form part of these financial statements.
Page 8 of 13
GRACE BAPTIST CHURCH, SOUTHPORT
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
1 ACCOUNTING POLICIES
a Basis of preparation
The financial statements have been prepared under the historical cost convention and in accordance with the FRSSE Statement of Recommended Practice (FRSSE SORP), "Accounting and Reporting by Charities" published in March 2015.
b Fund accounting
Unrestricted funds are funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements where relevant.
c Incoming resources
All incoming resources are included in the SOFA when the charity is legally entitled to the income and can be quantified with reasonable accuracy. For legacies, entitlement is the earlier of the charity being notified of an impending distribution or the legacy being received. No amounts are included in the financial statements for services donated by volunteers.
d Resources expended
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs 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 the resources.
Fund raising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities. Support costs are those costs incurred directly in support of expenditure on the objects of the charity and include project management costs. Management and administration costs are those incurred in connection with the administration of the charity and compliance with constitutional and statutory requirements.
e Fixed assets and depreciation
Tangible fixed assets costing more than £500 are capitalised and included at cost including and incidental expenses of acquisition.
Page 9 of 13
GRACE BAPTIST CHURCH, SOUTHPORT
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 DECEMBER 2022
2 VOLUNTARY INCOME
| Unrestricted Restricted Total funds funds funds 2022 2022 2022 £ £ £ Donations and gifts: Donations received 92,530 2,629 95,159 Gift aid reclaimed 20,186 - 20,186 Legacies received 9,143 - 9,143 Investment income: Bank interest received 1,478 - 1,478 Rental income 3,000 - 3,000 Other income: Other income 776 - 776 127,113 2,629 129,742 3 Unrestricted Restricted Total funds funds funds 2022 2022 2022 £ £ £ Administration costs: Wages and salaries 44,930 - 44,930 Pension costs 802 - 802 Administration 3,184 - 3,184 Other costs 9,266 - 9,266 Property costs: Repairs and maintenance 8,381 - 8,381 Utilities 13,898 - 13,898 Insurance 437 - 437 Property - - - Mission costs: Grants and donations 44,616 8,000 52,616 Youth work 626 - 626 Training - - - Support costs: Bank charges 504 - 504 Accountancy and bookkeeping 540 - 540 127,184 8,000 135,184 COSTS OF CHARITABLE ACTIVITIES |
Total funds 2021 £ 104,022 18,084 103,759 2,170 3,000 1,082 232,117 Total funds 2021 £ 56,389 2,952 3,053 10,095 23,417 9,438 4,297 3,971 46,443 942 348 499 - 161,844 |
|---|---|
Page 10 of 13
GRACE BAPTIST CHURCH, SOUTHPORT
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 DECEMBER 2022
4 GOVERNANCE COSTS
| Independent examination | Unrestricted Restricted Total funds funds funds 2022 2022 2022 £ £ £ 630 - 630 630 - 630 |
Total funds 2021 £ 612 612 |
|---|---|---|
5 TRUSTEES REMUNERATION
No trustee received any remuneration throughout the year except for Rev Stuart Harding and his wife who received a combined total of £17,240 (2021 - £31,264) for their role as church pastor and administrator but not in connection with his role as trustee.
6 EMPLOYEES
The average number of employees during the year were:
| Number (head count) 7 Wages and salaries Social security costs Pension costs EMPLOYMENT COSTS |
2022 Number 2 2022 £ 44,501 429 802 45,732 |
2021 Number 3 2021 £ 56,389 - 2,952 59,341 |
|---|---|---|
No employee earned more than £60,000 throughout the year (2021 - none).
Page 11 of 13
GRACE BAPTIST CHURCH, SOUTHPORT
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 DECEMBER 2022
8 ANALYSIS OF NET ASSETS BETWEEN FUNDS
----- Start of picture text -----
Unrestricted Restricted Total Total
funds funds funds funds
2022 2022 2022 2021
£ £ £ £
Current assets 296,318 52,812 349,130 351,115
Current liabilities (5,572) - (5,572) (1,485)
290,746 52,812 343,558 349,630
----- End of picture text -----
9 UNRESTRICTED FUNDS
| General funds: Designated funds: Electrical re-wire Interim Pastor Scholes interest Pastor training |
Balance at Incoming Resources 1 Jan 22 Resources Expended Transfers £ £ £ £ 291,447 127,113 (127,814) (120,200) - - - 20,000 - - - 50,000 - - - 200 - - - 50,000 291,447 127,113 (127,814) - |
Balance at 31 Dec 22 £ 170,546 20,000 50,000 200 50,000 290,746 |
|---|---|---|
During the year the trustees decided upon the major future costs that they plan to spend in the coming years and have designated amounts that they believe to best represent what is likely to be spent on those projects as described above.
The Scholes interest designated fund has been set up to attribute interest that has been received against the restricted fund until it is used. The restricted fund has no stipluation that investment income it generated was also to be restricted but the trustees decided that is was fair to designate an element of interest based on the average interest rate they have enjoyed throughout the year to this fund until it is used.
Page 12 of 13
GRACE BAPTIST CHURCH, SOUTHPORT
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 DECEMBER 2022
10 RESTRICTED FUNDS
| Bryan Scholes pastor training Flowers rota Minibus Polish literature translation Mission: - Christmas card scheme Compassion Acts - Pantry Pakistan member gifts Peru member gifts Ukraine member gifts |
Balance at Incoming Resources 1 Jan 22 Resources Expended £ £ £ 50,000 - - - 62 - - 135 - 8,183 - (8,000) - 220 - - 47 - - 110 - - 635 - - 1,420 - 58,183 2,629 (8,000) |
Balance at 31 Dec 22 £ 50,000 62 135 183 220 47 110 635 1,420 52,812 |
|---|---|---|
Restricted funds represent donations and legacies from church members for specific missional giving as described above.
Page 13 of 13