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2021-12-31-accounts

Trustees Annual Report and Financial Statements for the year ended 31 December 2021

Market Street, Mildenhall, Suffolk IP28 7EF

Registered Charity No: 1130724 www.kcm.church

Our Purpose, Governance, Structure and Management

Our Purpose

The Charity is governed by a Constitution 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 Church occupies premises which are held by the Baptist Union Corporation Ltd, on Trusts which are entirely compatible with the above object.

work and witness, and the financial and legal aspects of the charity.

Our Structure and Management

Members of the Church are accepted in accordance with the Constitution which requires them to be or to have been baptised on the profession of faith in Jesus Christ.

The members meeting normally takes place four times per year and has responsibility for the overall policy of the church. All members are encouraged to take an appropriate part in the spiritual and practical tasks involved in the furtherance of the charitable purpose.

Our Governance

King’s Church Mildenhall is governed by Trustees, which in accordance with the Constitution are appointed by the Members of the Church. The Trustees are collectively known as the Leadership, and their meetings are chaired by the Pastor (or the Associate Pastor) of the Church. The Trustees are responsible for the day to day running of the church’s

Relevant matters may be submitted to the Church meeting by the Trustees for guidance, or may be raised by members in Church meeting for further consideration by the Trustees. Though the Constitution permits decisions to be made at Church meetings by appropriate majorities, the Church seeks to work by consensus wherever possible.

Our Objectives and Activities

In order to achieve our principal purpose which is set out above, the Church provides a variety of activities both to its membership and to the community generally. The aim is to show the love of Jesus Christ in both word and deed and to bring people into a closer relationship with Him as living Lord.

Central to the work and witness of the Church is the provision of regular public services of Christian worship. We hold our service each Sunday commencing at 10.30am. There is a full children's programme during the service which includes Sunday Youth Ministry and a Crèche. The church seeks to be a friendly and welcoming community and anybody is free to attend any of our services. From time to time we also hold a Sunday evening service entitled ‘Oasis’. This is generally a more reflective service with time for quiet worship and prayer.

per month to pray together on Saturday mornings and hold occasional joint evening services.

The Church runs a series of Connect groups for the growth of faith and discipleship in the homes of some members. Further details of the Connect groups as well as details of all the other activities that are held in the church each week are available to view of the church website. Once or twice per year the Church runs free courses for people interested in discovering more about Christianity entitled "Alpha” and/or “Christianity Explored” as well as courses for those who are already Christians entitled “Freedom in Christ”.

The Church runs various weekly/monthly groups for Young people including a Toddler Group with the purpose of assisting the community and demonstrating the love of Jesus Christ.

As ‘Churches Together’ with the Anglican, Methodist and St John’s RC churches in the town we meet once

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Our Objectives and Activities (continued)

A weekly Coffee morning is held every Friday during market day when the church is open for the public to come in and have tea, biscuits and a chat.

On Wednesdays we run a weekly Lunch Club with the aim of encouraging people in the town to meet and to enjoy lunch and other activities together, including trips out. Our aim is to reach older lonely people, although the lunch club is open to all.

‘King’s Project’ is a shop in the town that we open on Monday and Friday mornings from 10am to 12 noon. This is a community support facility that provides a free emergency Food Bank (food only available using a

voucher scheme), a Pastoral care team, access to CMA Connect @ King’s (a debt support service) and an opportunity to have a chat over a cup of tea or coffee.

In partnership with an organisation called ‘Sharing Parenting’ and St Mary’s Academy, our premises are used to host and help run Parenting courses. These courses help parents face the challenges in raising children and give an opportunity for open discussions on how these might be handled. Also, in partnership with St Mary’s Academy we occasionally run a course called ‘Rainbows’ for children who have suffered loss, either through death or divorce/separation.

Our Achievements and Performance

Coronavirus and the global pandemic

The onset of Covid-19 during 2020 continued to affect every activity of the church from the start of 2021 onwards. During the 3[rd] national lockdown that started in January our buildings remained closed and no meetings were permitted on our premises.

The only activities that continued were filming Sunday services to upload to our church website/YouTube and keeping the foodbank open. Some meetings such as leadership meetings, connect groups and prayer meetings continued on the online ‘Zoom’ platform.

During May after lockdown restrictions were relaxed we re-opened the church building (under government guidelines) for Sunday Worship but only for a limited number of people (using an online booking system). We also continued the online service for those that didn’t wish to meet in the church building.

Our main challenge for 2022

To increase the numbers attending Sunday Services and to build up the ministries that had stopped during the pandemic.

Public benefit:

Having regard to the Charity Commission’s guidance on public benefit, all of our activities are freely open to anyone that would like to attend. We provide a benefit to the public through:

During July after restrictions were completely lifted we stopped running the online booking system and the online service in its ‘lockdown’ form finished.

We were only able to hold one membership meeting for the year in October. At this meeting we were able to re-elect the trustees that retired by rotation and elect new trustees.

However despite the restrictions the following new ministries were conceived/started during the year:

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Our Risk Assessment, Child Protection and Vulnerable Adults Policies

The Trustees have assessed the major risks facing the church and are satisfied that there are policies in place to minimise these risks in conjunction with our Health & Safety Policy. The Church operates

systems to ensure that all people working with children and adults at risk are appropriately vetted with regard to the Disclosure and Barring Service (DBS) and have appropriate Safeguarding training.

Our Finances

Financial Review

The Church continues to raise all the funds which it needs to carry on its activities from within its own membership and congregation. No wider public appeal was made for funds during the year.

The Church had a deficit for the year of £18,123 (2020 surplus of £18,158). Due to the church being closed for a long period of the year we found that families that moved away from the area were not replaced by new families and therefore offerings reduced by 11% compared to 2020.

The Church expressed its part in the life of the wider church by making regular donations to national and international Christian organisations and societies with Christian aims and objectives compatible with the church's own charitable purpose. During 2021 the Church donated 16% of its annual offerings to other charities (2020 13%).

The Church is heavily dependent on its membership working as volunteers in all aspects of the church's activities, many of which run with little or no impact on the church's expenditure, but nevertheless contribute substantially to the achievement of the church's objectives. Indeed, the Church could not operate without these volunteers.

The financial results for the year, together with a summary of the accounting policies adopted are set out in the accompanying financial statements.

Reserves Policy

The Trustees have established a Reserves Policy, and are satisfied that they have sufficient reserves at the Statement of Financial Position date, together with on-going income anticipated, to enable the church to function effectively in the coming year.

Trustees Responsibilities

The Trustees are responsible for preparing the Trustees' Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). The law applicable to charities in England and Wales requires the trustees to prepare accounts for each financial year which give a true and fair view of the state of affairs of the church and of the incoming resources and application of resources of the church for that year. In preparing these accounts, the trustees are required to:

The trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the church and enable them to ensure that the accounts comply with the Charities Act 2011, the applicable Charity (Accounts and Reports) Regulations and the provisions of the trust deed. 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.

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Statement of Financial Activities

for the year ended 31 December 2021

Note
Income and endowments from
Donations and legacies
2
Income from investments
3
Total income and endowments
Expenditure on
Raising funds
Charitable activities
4
Other expenditure
Total Resources Expended
Net income (expenditure)
Transfers between funds
Net movement in Funds
Total Funds brought forward
Total Funds carried forward		 Unrestricted Funds
Total
General
Designated
2021
£
£
£
103,252
4,357
107,609
20,232
0
20,232
123,484
4,357
127,841
0
0
0
141,607
4,357
145,964
0
0
0
141,607
4,357
145,964
(18,123)
0
(18,123)
0
0
0
(18,123)
0
(18,123)
241,667
0
241,667
223,544
0
223,544		 Total
2020
£
131,090
20,032
151,122
0
132,964
0
132,964
18,158
0
18,158
223,509
241,667

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Statement of Financial Position

as at 31 December 2021

Note
Tangible Fixed Assets
5
Current Assets
Bank and cash balances
6
Current Liabilities
Creditors: amounts falling due
within one year
7
Net Current Assets
Creditors: amounts falling due
after more than one year
8
Provisions for liabilities
9
Net Assets
Charitable Funds
Unrestricted General Funds
Revaluation Reserve
10
Pension Reserve
11		 2021
£
£
2,141,058
223,544
0
223,544
0
(38,300)
2,326,302
223,544
2,141,058
(38,300)
2,326,302		 2020
£
£
2,047,428
241,667
0
241,667
0
(48,298)
2,240,797
241,667
2,047,428
(48,298)
2,240,797		 2020
£
£
2,047,428
241,667
0
241,667
0
(48,298)
2,240,797
241,667
2,047,428
(48,298)
2,240,797
2,240,797
241,667
2,047,428
(48,298)
2,240,797

The Annual Report and Financial Statements for the year ended 31 December 2021 were approved by the Trustees on 9th February 2022 and signed on their behalf by

Mr G Matthews (Treasurer)

The Notes on pages 7 to 12 form part of these Financial Statements.

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Notes to the Accounts

1 Accounting Policies

a Basis of preparation

The financial statements are prepared under the historical cost convention and in accordance with the Statement of Recommended Practice ‘Accounting and Reporting by Charities’ (FRS 102) and the Charities Act 2011.

b Fund Accounting

c Donations

d Legacies

e Investment income

Investment income is included in the accounts in the year in which it is receivable.

f Fund raising and publicity costs

The church does not make formal appeals for funds, and expenditure on these items is therefore not material.

g Grants payable

The church makes grants to other organisations whose charitable objects complement its work. They are accounted for in the year in which they are paid.

h Grants receivable

The church receives grants from other organisations. They are accounted for in the year in which they are received.

i Fixed Assets

Land and buildings are included in the Statement of Financial Position at insurance value because reliable cost information is not available, and valuation would incur significant costs which would be onerous compared with the additional benefit gained by for the user of the accounts.

All other fixed assets are written off to the Statement of Financial Activities in the year of expenditure and no items are depreciated.

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Notes to the Accounts (continued)

2
Donations and legacies
Amazon Smile
Energize subscriptions
UEA Free Church Chaplaincy
Foodbank donations
West Suffolk Foodbank grant
Gift Aid Tax refunds
Vision Fund
Legacies
Parish Nurse Donations
Retail, Hospitality and Leisure Grant
Coronavirus Job Retention Scheme
West Suffolk Locality Budget
Offerings
Other gifts/income received
3
Income from investments
Bank interest
Baptist Union Deposit interest
Property rental income
4
Expenditure on Charitable activities
Ministry
Church premises expenses
4 King Street expenses
Manse expenses
Grants payable to other charities
General church administration
Other expenses
Activities of church groups
5
Tangible fixed assets
Valuation
At 1 January 2021
Revaluation
At 31 December 2021		 Unrestricted Funds
Total
General
Designated
2021
£
£
£
5
0
5
0
0
0
0
0
0
0
2,438
2,438
0
700
700
12,376
0
12,376
140
0
140
1,000
0
1,000
0
0
0
0
0
0
1,000
0
1,000
0
0
0
87,580
0
87,580
1,151
1,219
2,370
103,252
4,357
107,609
3
0
3
919
0
919
19,310
0
19,310
20,232
0
20,232
70,633
0
70,633
12,058
0
12,058
7,297
3,138
10,435
22,413
0
22,413
12,632
1,219
13,851
6,535
0
6,535
9,318
0
9,318
721
0
721
141,607
4,357
145,964
Church
4 King Street
Building
Manse
Building
& Contents
Building
& Contents
1,524,007
196,612
326,809
57,741
12,188
23,701
1,581,748
208,800
350,510		 Total
2020
£
12
45
1,800
3,995
0
13,152
1,000
0
20
10,000
92
750
98,747
1,477
131,090
39
683
19,310
20,032
67,402
11,872
7,309
21,571
13,307
6,529
4,282
692
132,964
Total
2,047,428
93,630
2,141,058

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Notes to the Accounts (continued)

2021
6
Bank balances
Unrestricted funds
Lloyds Current account
3,664
Lloyds Deposit account
18,278
Baptist Union Deposit account
201,602
223,544
7
Current liabilities: Amounts falling due within 1 year
0
8
Current liabilities: Amounts falling due after more than 1 year
0
9
Provisions for liabilities
Pension deficit recovery payments
38,300
38,300
10
Revaluation reserve
At 1 January 2021
2,047,428
Revaluation
93,630
At 31 December 2021
2,141,058
11
Pension reserve
At 1 January 2021
48,298
Revaluation
(9,998)
At 31 December 2021
38,300
12
Staff costs and Trustees expenses
Wages & Salaries
62,288
Social security costs
849
Pension costs
15,148
Other costs
4,913
83,198
The average number of employees during the year was 5 (2020 5).
No employee received emoluments in excess of £60,000 during the year (2020 none).		 2020
3,709
37,275
200,683
241,667
0
0
48,298
48,298
2,024,579
22,849
2,047,428
77,362
(29,064)
48,298
61,342
1,216
12,854
4,618
80,030

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Notes to the Accounts (continued)

13 Staff costs and Trustees expenses (continued)

Two Trustees, who are also employees, lived in housing on a leaseback agreement with the church.

No sums were reimbursed to the Trustees for their work as Trustees (2020 none).

14 Related Charities

The custodian Trustee of the church is the Baptist Union Corporation Limited which is charity number 249635, and which is controlled by the Baptist Union Council. The church is also a member of the Baptist Union of Great Britain, and the Eastern Baptist Association.

15 Pensions

The Church is a participating employer in the Baptist Pension Scheme (“the Scheme”), which is a separate legal entity administered by the Pension Trustee (Baptist Pension Trust Limited). The assets of the Scheme are held separately from those of the Employer and the other participating employers.

The Scheme, previously known as the Baptist Ministers’ Pension Fund, started in 1925, but was closed to future accrual of defined benefits on 31 December 2011. Prior to this date the main benefit provided through the Defined Benefit (DB) Plan was a 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 January 2012, pension provision is being made through the Defined Contribution (DC) Plan within the Scheme. In general, members pay 8% of their Pensionable Income and employers pay 6% of members’ Pensionable Income into individual pension accounts, which are operated and managed on behalf of the Pension Trustee by Broadstone Corporate Benefits Ltd. In addition, the employer pays a further 4% of Pensionable Income to cover Death in Service Benefits, administration costs, and an associated insurance policy which provides income protection for Scheme members if they are unable to work due to long-term incapacity. This income protection policy has been insured by the Baptist Union of Great Britain with Aviva Limited.

The Scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. Because it is not possible to attribute the Scheme’s assets and liabilities to specific employers, the scheme is accounted for as if the Scheme were a defined contribution scheme.

The Ministers are eligible to join the Scheme.

Actuarial valuation as at 31 December 2019

A formal valuation of the DB Plan as at 31 December 2019 was carried out by a professionally qualified Actuary using the Projected Unit Method. At the valuation date the market value of the DB Plan assets was £298 million, whilst the level of assets needed to pay benefits was £316m, giving a deficit of £18m (equivalent to a past service funding level of 94%). The Church and the other participating employers in the DB Plan are collectively responsible for funding this deficit.

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Notes to the Accounts (continued)

The key assumptions underlying the valuation were as follows:

Type of assumption % pa
RPI price inflation assumption 3.20
CPI price inflation assumption 2.70
Minimum Pensionable Income Increase Adjustment (above CPI) 0.50
Pre-retirement assumed investment returns (gilt yield plus 1.75% pa) 2.95
Post retirement assumed investment returns (including benefits matched
by the insurance policy) (gilt yield plus 0.5% pa)		 1.70
Minimum Pensionable Income increases (CPI plus 0.5%) 3.20
Deferred pension increases (based on RPI)
Pre April 2009 3.20
Post April 2009 2.50
Pension increases
Based on CPI with an annual floor of 0% and annual cap of 5% 2.70

Mortality is assumed in accordance with 80% of the S3NA standard mortality table. Future improvements projected from 2013 in line with the “CMI 2019” projection with a long-term rate of improvement of 1.75% p.a. for males and 1.5% p.a. for females with the core smoothing parameter and with additional initial mortality improvement factor A=0.5%.

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

Recovery Plan

In addition to the contributions to the DC Plan set out above, where a valuation of the DB Plan reveals a deficit the Trustee and the Council agree to a rate of deficiency contributions from churches and other employers involved in the DB Plan.

Under the current Recovery Plan signed in September 2020, deficiency contributions are payable until June 2026. These contributions are broadly based on the employer's membership at 31 December 2014 and increase annually in line with increases to Minimum Pensionable Income as defined in the Rules.

Movement in Balance Sheet liability

Section 28.11A of FRS 102 requires agreed deficit recovery payments to be recognised as a liability. The movement in the provision is set out in the table below.

Accounting date (year ending): 31 December 2021 31 December 2020
Balance sheet liability at year start £48,298 £77,362
Minus deficiency contributions paid -£8,291 -£6,116
Interest cost £606 £1,263
Remaining change to balance sheet liability* -£2,313 -£24,211
Balance sheet liability at year end £38,300 £48,298

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Notes to the Accounts (continued)

This liability represents the present value of the deficit contributions agreed as at the accounting date and has been valued using the following assumptions set by reference to the duration of the deficit recovery payments:

Accounting date 31 December 2021 31 December 2020 31 December 2019
Discount rate 2.0% 1.4% 2.1%
Future increases to Minimum
Pensionable Income		 4.1% 2.1% 2.8%

The Church has been advised that the cost for the church to buyout their Pension Scheme liabilities at 31 December 2021 was approximately £40,300.

16 Trustee and related party donations

Aggregate donations, excluding Gift Aid tax refund, of £25,941 were received by the charity from Trustees and their spouses (2020 - £27,228).

17 Summaries of accounts of other church organisations

Balance 1 January 2021
Receipts
Payments
Balance 31 December 2021		 Coffee Communion
Lunch
Morning
Fund
Club
744
732
1,717
100
0
1,336
(120)
(300)
(1,651)
724
432
1,402

These accounts are not administered by the Church Treasurer and not examined by the Independent Examiner.

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Independent Examiner’s Report to the Trustees and Members of King’s Church Mildenhall

I report on the Financial Statements of King’s Church Mildenhall for the year ended 31 December 2021 which are set out on pages 5 to 9.

Respective responsibilities

The church is responsible for the preparation of the financial accounts and considers that the audit requirement of Section 144(2) of the Charities Act 2011 (the Act) does not apply. It is my responsibility to state, on the basis of procedures specified in the General Directions given by the Charity Commissioners under Section 145 (5)(b) of the Act, whether particular matters have come to my attention.

Basis of Independent Examiner's report

My examination was carried out in accordance with the General Directions of the Charity Commissioners. An examination includes a review of the accounting records kept by the church and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeking explanations concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently I do not express an audit opinion on the view given by the financial statements.

Independent Examiner's statement

In connection with my examination of the church funds, nothing came to my attention which gave me cause to believe otherwise than that the financial statements accord with the accounting records of the church, and that those records satisfied the requirements of the Act. I am not aware of any matter to which attention should be drawn in order to enable a proper understanding of the financial statements to be reached.

Mr R Copsey 12th February 2022

Reference and Administrative Details

Charity name

King’s Church Mildenhall

Charity number

1130724

Registered office

King’s Church Mildenhall Market Street, Mildenhall Suffolk IP28 7EF

Property Trustees

The Baptist Union Corporation Ltd Baptist House, 129 Broadway Didcot, Oxfordshire OX11 8RT

Trustees

Rev T Bright (Associate Pastor) Mr D Chambers Rev P Finnis (Lay Pastor) Mr P Giddings (resigned 14/10/21) Mrs S Giddings Mr M Green Mr T James (appointed 14/10/21) Mr G Matthews (Treasurer) Rev C Morehouse (Pastor) Mrs A Quin Miss E Reeves (resigned 14/10/21) Mr G Slack

Independent examiner

Mr R Copsey

Bankers

Lloyds Bank plc High Street, Mildenhall, Suffolk IP28 7DZ

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