**Charity registration number: 1130672**
## **Grace Baptist Church, Southport**
**FINANCIAL STATEMENTS AND TRUSTEES REPORT FOR THE YEAR ENDED 31 DECEMBER 2023**
http://gracebaptist.org.uk/
## **GRACE BAPTIST CHURCH, SOUTHPORT**
## **INDEX TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 DECEMBER 2023**
||**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 2023**
|**Trustees:**|Zelda Bentham||
|---|---|---|
||Maciek Stolarski|appointed - 28 February 2023|
||David Sutton|appointed - 28 February 2023|
||Nathan Ward||
|**Treasurer:**|Bill Harrison||
|**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 2023**
The trustees submit their annual report and financial statements for the year ended 31 December 2023. 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 2023**
## **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 2023**
## **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:
- to preserve the financial viability of the Charity in the event that unforeseen and/or
- = 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
- = 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 2023, 3 months unrestricted costs was calculated to be about £28,000, whilst the amount held in unrestricted reserves was £43,027. The trustees appreciate that this level is slightly 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 and have planned spending for 2024 which will utilise some of the reserves.
## **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 2023 income of £127,808 was received (2022 - £129,742). Expenditure during the year totalled £121,074 (2022 - £135,814) which generated a surplus for the year of £6,734 (2022 - £6,072 deficit).
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.
During the year the trustees agreed to review the designated funds and create a legacy fund and tithe fund to replace all other designated funds brought forward. An explanation of these can be found at note 9 to these accounts.
Page 4 of 13
## **GRACE BAPTIST CHURCH, SOUTHPORT**
## **TRUSTEES' REPORT (continued)**
## **FOR THE YEAR ENDED 31 DECEMBER 2023**
## **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:
- a. select suitable accounting policies and apply them consistently;
- b. observe the methods and principals in the Charities SORP;
- c. make judgements and estimates that are reasonable and prudent;
- 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;
- 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 ….................... 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 2023**
I report on the financial statements of the charity for the year ended 31 December 2023, 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:
- (i) examine the accounts under section 145 of the Charities Act,
- (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
- (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:
- a) which gives me reasonable cause to believe that in, any material respect, the requirements:
- to keep accounting records in accordance with section 130 of the Charities Act; and
- 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 2023**
|**Unrestricted**
**Restricted**
**Total**
**funds**
**funds**
**funds**
**2023**
**2023**
**2023**
**Notes**
**£**
**£**
**£**
**INCOMING RESOURCES**
Incoming resources from generated funds:
Voluntary income:
Donations and gifts
**2**
99,958
6,699
106,657
Investment income
**2**
19,270
-
19,270
Other income
**2**
1,715
166
1,881
**TOTAL INCOMING RESOURCES**
120,943
6,865
**127,808**
**RESOURCES EXPENDED**
Charitable activities
**3**
108,545
8,555
117,100
Governance
**4**
3,974
-
3,974
**TOTAL RESOURCES EXPENDED**
112,519
8,555
**121,074**
8,424
(1,690)
**6,734**
Fund balances at 1 January 2023
290,746
52,812
343,558
Fund balances at 31 December 2023
299,170
51,122
**350,292**
**NET INCOMING RESOURCES FOR**
**THE YEAR**|**Total**
**funds**
**2022**
**£**
124,488
4,478
776
**129,742**
135,184
630
**135,814**
**(6,072)**
349,630
**343,558**|
|---|---|
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 2023**
|**Notes**
**CURRENT ASSETS**
Tax reclaim due
Cash at bank and in hand
Prepayments
PAYE refund due
**CURRENT LIABILITIES**
Accruals
PAYE owed
Other creditors
Pensions due
**NET CURRENT ASSETS**
**TOTAL NET ASSETS**
**FUNDS**
Restricted funds
**10**
Designated funds
Unrestricted funds
**TOTAL FUNDS**
Approved and signed on behalf of the board on …..........................
**9**|**Total**
**funds**
**2023**
**£**
6,425
348,102
4,042
-
358,569
7,911
366
-
-
8,277
350,292
**350,292**
51,122
256,143
43,027
**350,292**
by:|**Total**
**funds**
**2022**
**£**
13,855
330,615
-
4,660
349,130
4,609
-
237
726
5,572
343,558
**343,558**
52,812
120,200
170,546
**343,558**|
|---|---|---|
……………………………… **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 2023**
## **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 2023**
## **2 VOLUNTARY INCOME**
|**Unrestricted**
**Restricted**
**Total**
**funds**
**funds**
**funds**
**2023**
**2023**
**2023**
**£**
**£**
**£**
**Donations and gifts:**
Donations received
78,271
6,699
**84,970**
Gift aid recoverable
18,687
-
**18,687**
Legacies received
3,000
-
**3,000**
**Investment income:**
Bank interest received
6,555
-
**6,555**
Church rental income
3,500
-
**3,500**
Manse rental income
9,215
-
**9,215**
**Other income:**
Other income
1,715
166
**1,881**
120,943
6,865
**127,808**
**3**
**Unrestricted**
**Restricted**
**Total**
**funds**
**funds**
**funds**
**2023**
**2023**
**2023**
**£**
**£**
**£**
**Administration costs:**
Wages and salaries
26,653
-
**26,653**
Pension costs
602
-
**602**
Administration
2,872
-
**2,872**
Other costs
8,754
-
**8,754**
**Property costs:**
Repairs and maintenance
17,225
-
**17,225**
Utilities
10,988
-
**10,988**
Insurance
3,868
-
**3,868**
**Mission costs:**
Grants and donations
25,343
8,555
**33,898**
Other ministry activities
2,398
-
**2,398**
Visiting speakers
7,862
-
**7,862**
Youth work
339
-
**339**
Training
455
-
**455**
**Support costs:**
Bank charges
646
-
**646**
Accountancy and bookkeeping
540
-
**540**
108,545
8,555
**117,100**
**COSTS OF CHARITABLE ACTIVITIES**|**Total**
**funds**
**2022**
**£**
95,159
20,186
9,143
1,478
3,000
-
776
**129,742**
**Total**
**funds**
**2022**
**£**
44,930
802
3,184
9,266
8,381
13,898
437
43,967
2,939
5,710
626
-
504
540
**135,184**|
|---|---|
Page 10 of 13
## **GRACE BAPTIST CHURCH, SOUTHPORT**
## **NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **FOR THE YEAR ENDED 31 DECEMBER 2023**
## **4 GOVERNANCE COSTS**
|Independent examination
Legal fees|**Unrestricted**
**Restricted**
**Total**
**funds**
**funds**
**funds**
**2023**
**2023**
**2023**
**£**
**£**
**£**
741
-
**741**
3,233
-
**3,233**
3,974
-
**3,974**|**Total**
**funds**
**2022**
**£**
630
-
**630**|
|---|---|---|
## **5 TRUSTEES REMUNERATION**
No trustee received any remuneration throughout the year.
## **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**|**2023**
**Number**
1
**2023**
**£**
26,653
-
602
**27,255**|**2022**
**Number**
2
**2022**
**£**
44,501
429
802
**45,732**|
|---|---|---|
No employee earned more than £60,000 throughout the year (2022 - none).
Page 11 of 13
## **GRACE BAPTIST CHURCH, SOUTHPORT**
## **NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **FOR THE YEAR ENDED 31 DECEMBER 2023**
## **8 ANALYSIS OF NET ASSETS BETWEEN FUNDS**
**----- Start of picture text -----**
Unrestricted Restricted Total Total
funds funds funds funds
2023 2023 2023 2022
£ £ £ £
Current assets 307,447 51,122 358,569 349,130
Current liabilities (8,277) - (8,277) (5,572)
299,170 51,122 350,292 343,558
**----- End of picture text -----**
## **9 UNRESTRICTED FUNDS**
|General funds:
Designated funds:
Electrical re-wire
Interim Pastor
Scholes interest
Pastor training
Legacy fund
Tithe fund|**Balance at**
**Incoming**
**Resources**
**1 Jan 23**
**Resources**
**Expended**
**Transfers**
**£**
**£**
**£**
**£**
170,546
120,943
(112,519)
(135,943)
20,000
-
-
(20,000)
50,000
-
-
(50,000)
200
-
-
(200)
50,000
-
-
(50,000)
-
-
-
230,529
-
-
-
25,614
290,746
120,943
**(112,519)**
**-**|**Balance at**
**31 Dec 23**
**£**
43,027
-
-
-
-
230,529
25,614
**299,170**|
|---|---|---|
During the year the trustees reviewed legacies that the church has received in the past and allocated those to a new designated legacy fund. The purpose of this designated fund is to separate those generous gifts for special and specific projects rather than be swept up into the general day to day running of the church.
In addition, a designated tithe fund has also been created at the end of the year and 10% of the designated legacy fund has been transferred into it as a starting balance for 2024. The designated tithe fund is setup as a mechanism to set to one side 10% of all income the church receives each year so that its regular giving can be better monitored and taken from that designated fund.
All previous designated funds have been removed and replaced by both the legacy and tithe fund as described above.
Page 12 of 13
**NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **GRACE BAPTIST CHURCH, SOUTHPORT**
**FOR THE YEAR ENDED 31 DECEMBER 2023**
## **10 RESTRICTED FUNDS**
|Bryan Scholes pastor training
Flowers rota
Minibus
Polish literature translation
Mission: -
Christmas card scheme
Compassion Acts - Pantry
Madeira member gifts
Pakistan member gifts
Peru member gifts
Ukraine member gifts|**Balance at**
**Incoming**
**Resources**
**1 Jan 23**
**Resources**
**Expended**
**£**
**£**
**£**
50,000
-
-
62
80
(142)
135
76
-
183
-
-
220
352
(259)
47
257
(304)
-
485
(485)
110
305
-
635
2,080
(2,715)
1,420
3,230
(4,650)
52,812
6,865
(8,555)|**Balance at**
**31 Dec 23**
**£**
**50,000**
**-**
**211**
**183**
**313**
**-**
**-**
**415**
**-**
**-**
**51,122**|
|---|---|---|
Restricted funds represent donations and legacies from church members for specific missional giving as described above.
Page 13 of 13