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2020-12-31-accounts

Brentwood Baptist Church

Annual Report and Accounts For the year ending 31[st] December 2020

Registered Charity No. 1130944

Approved by the Trustees and signed on their behalf by:

B J Dedman

Bryan Dedman – Church Secretary

May 7[th] , 2021 Date

Trustees Jenny Baldwin Christopher Cundy (to 31 December 2020) Bryan Dedman Brian Garner (from 25 February 2021) Ruth McMahon David Moore Kevin Rayfield (from 1 January 2020 to 23 June 2020) Nicholas Tavener Address 91 Kings Road, Brentwood, Essex, CM14 4DR Independent Shaun De Boo Examiner Chartered Accountant

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Annual Report

Church Objectives

The Church operates under its own Constitution and is a member of the Baptist Union of Great Britain and the Eastern Baptist Association. It is also a charity registered with the Charity Commission in England and Wales.

The principal purpose of the Church is the advancement of the Christian faith according to the principles of the Baptist denomination. The Church may also advance education and carry out other charitable purposes in the United Kingdom and/or other parts of the world.

The Church is a member of Churches Together in Brentwood and as a Member of the Baptist Union the Church subscribes to the Union’s Declaration of Principle which is: -

  1. That our Lord and Saviour Jesus Christ, God manifest in the flesh, is the sole and absolute authority in all matters pertaining to faith and practice, as revealed in the Holy Scriptures, and that each church has liberty, under the guidance of the Holy Spirit, to interpret and administer His laws.

  2. That Christian baptism is the immersion in water into the name of the Father, the Son and the Holy Spirit, of those who have professed repentance towards God and faith in our Lord Jesus Christ who died for our sins according to the Scriptures; was buried, and rose again on the third day.

  3. That it is the duty of every disciple to bear personal witness to the gospel of Jesus Christ, and to take part in the evangelisation of the world.

Organisational Structure

The Church is administered by the Managing Trustees who, during 2020, were the deacons, secretary and treasurer as elected by the Church membership in accordance with the Church Constitution. The Trustees hold a monthly meeting and usually a meeting of all Church members is held every two months. Since March, the Trustees have met online and members have joined on-line gatherings rather than formal meetings: this was necessary due to Covid-19 and the associated restrictions. An important change to the church’s constitution was made in December 2020, whereby meetings held, with appropriate procedures, using “suitable electronic means” such as Zoom are now a valid way of holding meetings of Church members.

At the present time the Church is without a minister and the Trustees are working to identify and, with the Church membership, appoint the person God wants to lead the church. This process was delayed by the restrictions associated with Covid-19 from March to the end the year, with periods when the process has been paused. The change to the Church constitution may make this process easier.

During this time of pastoral vacancy the Trustees and others have continued to work together to ensure that the work of Brentwood Baptist Church continues, albeit with considerable differences under Covid-19 restrictions.

Review of Activities

Central to the work and witness of the Church is the provision of regular public services of Christian worship. Usually and in the early part of 2020, these took place at 10.30am on Sunday mornings, once a month on Sunday afternoons and at other times for Christian Festivals and special events. There is usually a full children's programme during the 10.30am service for ages 0-14 years which runs concurrently with the service.

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The restrictions due to Covid 19 in various forms at different times, have had a major impact on the activities that the Church has been able to undertake. Since March, Sunday morning services have been held online “live” using Zoom and we are pleased that some new attendees have joined us during this period. When possible, socially distanced participation at Sunday morning services on Zoom has been arranged at the church building for a limited number, who might otherwise not have been able to participate. These services have been led by members of the Church with either visiting preachers or (less frequently) speakers from within the membership. Sunday morning activities for children were curtailed but materials were provided for use at home.

Weekly prayer meetings have also been maintained with Zoom.

In addition, considerable effort has been made to keep in touch with, and support, all involved in the church as much as is feasible. Where necessary, practical help has been provided (mainly shopping). As well as the links arranged through the church, there has been much support provided informally.

Details of other regular activities are given below.

The main youth activities outside of our Family Church, usually held on Sunday mornings, are the Monday night clubs. The Hub is for years 1 to 6 and the Club for year 7 onwards. Both start with refreshments, followed by a time of games, arts and crafts, and Bible stories and discussion.

Red Balloon Foundation has assisted the church in providing these Monday evening activities for children – initially meetings at the church. Covid 19 restrictions from March inevitably disrupted these activities. When possible, physical meetings were held respecting the guidelines at the time. At other times meetings had to be online. Regrettably, the numbers involved in the Club reduced to the level where it was no longer realistic to meet. We hope to restart this after summer 2021

Kingfishers Babies & Toddlers is a meeting place for all those who have care of a child under 5 - those who attend include mums, dads, grandmas, grandads, childminders and nannies. Meetings were held until mid-March.

For much of the morning there are plenty of toys out for the children to play with, while tea and coffee are served for the adults with opportunities to chat and make new friends. Towards the end of the morning the toys are packed away and drinks and breadsticks offered to the children, and then there is a little sing song to finish with.

Aside from Children’s and Youth Activities Brentwood Baptist Church has midweek groups which cater for adults.

There are several groups that meet in homes during the week for Bible study and prayer. Informal contact amongst these groups has been maintained but in general the meetings were discontinued.

Oasis is an opportunity for our church to open its doors to all who wish to come from our local community on a Friday between 12 noon and 1.30p.m. for coffee, tea, biscuits or to bring their own lunch, and share the company of others. Some people have joined in various activities at Church including the Carols by Candlelight Service. It has not been possible for Oasis to meet since mid-March although contact has been maintained with some who come.

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The “Women's Own” is a group of ladies who regularly meet on a Tuesday afternoon at 2.30pm in our Kings Hall for fellowship and mutual encouragement. Regular meetings at the start of the year were possible but, due to Covid 19 and associated restrictions, the other regular events such as an annual outing to the seaside, spring lunch, garden tea parties, Christmas dinner were not possible and unfortunately, it has not been feasible to continue by Zoom. It was very disappointing that events to celebrate the 100-year anniversary of Women’s Own could not be held, although the event was marked with a

focused Sunday morning service and a celebratory meal is intended when the present situation is resolved.

We were able to hold informal services at Douglas Matthew House, a sheltered housing complex, once a month, on 2 occasions at the start of the year. Douglas Matthew House is one of our Church's close neighbours in Kings Road. The services comprise a time of praise, a short 'thought for the day' and time to share prayer needs and are followed by tea and cakes. We value the privilege of having this facility which gives another opportunity of sharing God's love in our Community and giving spiritual encouragement to people who would not otherwise be able to attend a church service .

Public Benefit

Having regard for the Charity Commission's guidance on public benefit, all our activities are open to anyone who wishes to attend. Through our work we are providing a benefit to the public through: -

Within the limitations of the Covid-19 restrictions, these activities have been continued, as described above.

As well as the limited use of the church building noted above, some external users of the building have continued meetings when possible under the restrictions – notably Kingfisher’s Pre-school have continued to meet since Easter.

The church has been one of Brentwood Council’s community hubs and has provided help in the early part of the restrictions to a small number of local residents whose needs have been notified to the church.

Financial review

The financial outcome for the year was dominated by the impact of Covid 19 restrictions and (again) by the ministerial vacancy. Although presenting challenges, the vacancy has a positive financial effect as the manse is let as well as the costs of a minister being absent. During the year, there was a change in tenants in the manse; this change (including a gap in occupation) reduced receipts from letting the manse.

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Standing orders and similar payments have been substantially maintained. Since March, it has not been possible to receive money through collections at services – some of this has been contributed by cheque but it has not been possible to claim Smaller Donations Gift aid. Gift aid received was abnormally high as it included £10,000 that would normally have been received in 2019. Restrictions on use of the building reduced rental income.

The Covid-19 restrictions affected costs – mainly reductions across a wide range of headings. We increased donations to Baptist causes and those addressing the impact of Covid 19. In addition, we were without an Administrator during the year.

General Fund receipts were £123,016 and payments were £47,125 so there was a surplus before transfers of £75,891. After transfers the General Fund was £242,365 at year end.

The Building Refurbishment Fund was partially used. A new projector and new screens in the sanctuary were installed in February 2020. They have been much appreciated by those present in the building for Zoom services. Progress with the improvement to the frontage of the church building on Kings Road, in particular access, was slowed by the impact of Covid-19 restrictions. Planning and building permission for the preferred option have been obtained and a preferred contractor instructed. Work started in April 2021. During review of the plans by Fire Service staff, it was noted that we should enhance the fire escape at the other end of the main meeting area. Consequently £15,000 was transferred to the fund from the General Fund for this work.

Payments of £3,453 were made from the Pension Deficit Fund. There has been a reduction in the period of time over which these payments are expected, following the latest actuarial valuation. Consequently £17,174 was transferred to the General Fund. Payments were halved in the second half of the year, as a general measure for all contributing churches, to reflect the financial pressure on some churches.

Use of the Communion Fund was much higher than previous years. A substantial part of this was the result of payments from the fund for purchases of shopping for those isolating, when these were arranged by the church. Almost all was reimbursed, increasing receipts. At year end, a transfer from the General Fund ensured the year end balance is zero. The Trustees expect that greater transfers from the General Fund may be needed in 2021.

There were reduced receipts and payments for the Other Activities Fund as there was reduced activity by the relevant organisations.

Overall, receipts totalled £129,341 and payments totalled £68,736. The Trustees are grateful for the financial support of the church members and attendees as well as their significant contributions in many other ways.

Reserves Policy

The Trustees have a policy to maintain a reserve of £30,000 in unrestricted funds in case of an unexpected significant expenditure or a significant reduction in receipts. This policy objective has been met.

The General Fund balance of £242,365 is sustainably in excess of this. This has arisen primarily during the ministerial vacancy with its cost savings and receipts from renting the manse. The Trustees expect that this excess will be utilised in the work of the church in coming years, in particular once a minister is in place.

While there have been impacts on the receipts (and payments) of the church through the impact of Covid restrictions, the Trustees continue to expect to be able to meet payments as they fall due.

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Accounts for 2020

(All figures in £)

- Summary of Receipts and Payments (pre transfers)

Unrestricted funds
General Fund
Pension Deficit Fund
Building Refurbishment Fund
Other Activities Fund
Restricted funds
Communion Fund
Receipts to Forward Fund
Total for 2020		 Receipts
123,016
343
3,536
2,446
129,341		 Payments
47,125
3,453
11,601
323
3,965
2,269
68,736

Details for each fund and comparatives for 2019 are shown below

General FundUnrestricted
Receipts
Regular giving
Tax reclaimed (2)
Contributions to church expenses
Legacies or Gifts in memory
Rental income – church building
Rental income – manse (8)
Other income (3)
Payments
Ministry & Mission (4)
Church Management, admin etc
Donations by the Church (5)
Soul Survivor (6)
Excess of Receipts over Payments
Transfer to Communion Fund
Transfer to Building Redevelopment Fund
Transfer from Pension Deficit Fund
Transfer from Other Activities fund
Balance at start of year
Balance at end of year		 2020
71,004
22,615
722
1,000
8,977
15,456
3,242
123,016
5,751
27,517
13,857
0
47,125
75,891
(429)
(15,000)
17,174
164,729
242,365		 2019
82,702
5,990
2,914
13,401
19,590
2,820
127,420
28,081
39,379
12,872
816
81,156
46,264
(1,457)
(15,429)
150
135,201
164,729

A fuller analysis of the payments from the General Fund by activity can be found in note (7).

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Pension Deficit Fund Designated note (9)

A fund for the costs of meeting the pension deficit payments to be paid to the Baptist Pension Fund under the Recovery Plan, originally established at the end of 2017. The latest actuarial valuation has resulted in a decrease in the time period over which pension deficit payments are expected. The amount no longer required was transferred to the General Fund. Annual increases in line with increases in Minimum Pensionable Income are assumed at 3.2% pa from the start of 2021.

Payments
Deficit payments made
Excess of Receipts over Payments
Transfer to General Fund
Balance at start of year
Balance at year end		 2020
3,453
(3,453)
(17,174)
48,351
27,724		 2019
4,505
(4,505)
52,856
48,351

Building Refurbishment Fund Designated

A fund to cover the expected costs of building work (to manse and Church building) which has been planned but had not yet taken place.

Payments
Expenditure on buildings
Excess of Receipts over Payments
Transfer from General Fund
Balance at start of year
Balance at year end		 2020
11,601
(11,601)
15,000
44,000
47,399		 2019
6,886
(6,886)
15,429
35,457
44,000

Other Church Activities Fund Designated

Two (three in 2019) Church organisations receive money and make payments and are shown separately.

Receipts
Kingfisher Babies and Toddlers
Women’s Own
Monday night children and youth activities
Total receipts
Payments
Kingfisher Babies and Toddlers
Women’s Own
Monday night children and youth activities
Total payments
Excess of Receipts over Payments
Transfer to General Fund from Kingfisher
Babies and Toddlers
Balance at start of year
Balance at year end		 2020
68
275
343
43
280
323
20
1,224
1,244		 2019
281
1,111
270
1,662
136
1,098
257
1,491
171
(150)
1,204
1,224

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Restricted Receipts to Forward Fund

During the year the church receives money identified specifically for other charities or people which the church supports and for gratuities given by the members of the congregation. These are recorded separately and passed directly to the identified charity or person. The following amounts were received and passed on in this way. Previously this was called the Agency Fund.

Baptist Missionary Society – Op Agri
Baptist Missionary Society
Baptist Missionary Society – Beirut Appeal
Foodbank
Home Mission
Samaritans Purse
Thank offering 2019
Floods appeal
Baptist Missionary Society – Op Agri
Baptist Missionary Society
Baptist Missionary Society – Relief
Home Mission
Soul Survivor
Thank offering 2018
Thank offering 2019
Floods appeal		 2020
received
1,490
191
214
119
254
10
118
50
2,446
2019
received
50
379
50
197
1,733
1,171
968
1,485
6,033		 2020
paid
1,490
175
214
119
261
10
2,269
2019
paid
50
388
50
190
1,733
1,171
1,086
1,535
6,203		 End 2020
balance
7
7
End 2019
balance
(9)
7
(118)
(50)
(170)

The Thank Offering which would normally have been held in the last quarter of 2018 was held in the first quarter of 2019.

The delay in making the Gift Aid claims, described in note 2, means that Gift Aid for some payments was not available before 2019 year end. Nonetheless the payments made included the amounts of this Gift Aid, so there were negative balances in relation to the causes shown. These were covered when the Gift Aid was received in 2020.

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Communion Fund Restricted

A restricted fund for use by the minister to support members of the congregation, and others, at their discretion. In the pastoral vacancy, these decisions are currently made by the Church Secretary. In 2020, includes receipt from Brentwood Borough Council for acting as a Community Hub during the pandemic and repayment of the same.

Receipts
Giving
Grant from Brentwood Council
Payments
Support given
Repayment of council grant
Excess of Receipts over Payments
Transfer from General Fund
Balance at start of year
Balance at year end		 2020
3,036
500
3,536
3,465
500
3,965
(429)
429
0		 2019
306
306

696
696
(390)
1,457
(1,067)
0

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Statement of Assets and Liabilities


Bank accounts
Instant Access
Notice – 60 day
Notice – 1 year
Other activities accounts
Cash		 2020
65,148
70,362
181,987
962
282
318,740		 2019
53,175
52,630
151,105
922
302
258,134
Represented by
Unrestricted funds
General Fund
Pension Deficit Fund
Building Refurbishment Fund
Other Church Activities Fund
Restricted funds
Communion Fund
Receipts to Forward Fund		 2020
242,365
27,724
47,399
1,244
0
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318,740		 2019
164,729
48,351
44,000
1,224
0
(170)
258,134

The Church is the beneficial owner (subject to the relevant trusts) of the following assets, the legal title to which is held by the church’s custodian trustee (the London Baptist Property Board Limited)

Church premises at Kings Road, Brentwood, CM14 4DR valued at £2,175,532 (insurance amount)

(£2,016,248) Church manse at 16 Doddinghurst Road, Brentwood, CM15 9EH valued at £350,387 (insurance amount) (£324,733)

The Church also owns

• fixtures, furniture and equipment in the Church building valued at £168,500 (insurance amount) (£143,933)

The Church has a liability to make pension scheme deficit payments of £25,773 as at 31st December 2020, calculated as the current rate per month multiplied by the number of months remaining in the current Schedule of Contributions. The Pension Deficit Fund is higher than this as it includes an allowance for the assumed increase in payments. Please see note (9).

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NOTES TO THE ACCOUNTS

1. Basis of the accounts: These accounts have been prepared on a ‘receipts and payments’ basis in accordance with section 133 of the Charities Act 2011.

2. Gift Aid: in 2019, only one of the usual three claims in a year for Gift Aid refunds from HMRC were made. Approximately £10,000 of Gift Aid relating to gifts received up to 30 November 2019 had not been claimed at 31 December 2019, which would usually have been claimed within the year. It has been claimed, was received in April 2020 and is included in the accounts for 2020.

3. Other Income comprises

her Income comprises
Use for Minibus
Interest
Sale of books		 2020
25
3,148
69
3,242		 2019
221
2,533
66
2,820

4. Payments / Ministry & Mission – Salaries and employer NI and pension costs of Minister, Administrator and Children’s and Youth worker and the cost of external Support for Youth activities.

5. Donations by the Church . Gifts were made to the following:-

Baptist Missionary Society
Home Mission inc Eastern Baptist
Association
Brentwood Schools Christian
Worker Trust
Christians Against Poverty
Brentwood Foodbank
Open doors
TEAR fund
Kaniki Trust
Bentley Baptist Church
Barnabas Fund
Manna Meals
Hopetowns
Samaritans Purse
Community Heartbeat
Mission Aviation Fellowship
Reach Across (UK)		 2020
2,800
4,530
1,800
1,800
500
200
500
500
500
328
200
200
13,858		 2019
2,700
2,630
2,743
1,800
500
375
750
500
500
375
13,102

6. The amount shown in General Fund payments in 2019 is for subsidies given to attend Soul Survivor and Warrior Camp.

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7. Detail of payments by the church

Detail of payments by the church
2020
360
5,160
5,454
231
6,052
1,509
1,939
2,173
797
652
120
3,966
1,009
50
2,210
1,297
13,858
100
100
83
47,125		 2019
0
0
17,214
2,275
210
3,770
10,657
3,936
1,843
1,962
4,347
225
1,447
526
5,546
3,314
3,427
5,078
1,175
12,872
123
129
14
91
151
816
Minister's salary, pension (8)
Minister's expenses
Children/Youth Worker's salary
Children/Youth Worker's expenses
External support for Youth
activities
Cleaning
Administrator's salary
Utilities
Speakers' fees
Insurance
Church repairs & maintenance
Manse repairs & maintenance (8)
Printing & Copying
Youth/family church
Administration costs
Minibus
Outreach
Equipment
Moderator
Donations from the Church (5)
Sundries
Sundries gifts
Training
Resources/Books
Bible notes purchased
Soul Survivor (6)
81,156

8. In 2020, minister’s salary and pension were the costs of an Interim Member of the pension scheme .

In 2020, manse income and manse repairs both include £569 paid for repairs arranged by the letting agents at the request of the church. This was deducted from the rent received by the letting agents before the rent was paid to the church. Fees and costs contractually due to the letting agents for their services were also deducted from the rent before it was paid to the church but are not included in these accounts (£4,731).

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9. Pension Scheme Liabilities

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. Since 1 January 2012, benefits have been provided through a Defined Contribution (DC) Plan.

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

Under the Schedule of Contributions, the church makes a monthly payment in respect of the DB scheme deficit, currently £390, which will increase in line with increases in Minimum Pensionable Income. The Schedule of Contributions foresees these contributions continuing until June 2026. The pension scheme liability shown in the Statement of Assets and liabilities is calculated as the current rate per month multiplied by the number of months remaining in the current Schedule of Contributions, which amounted to £25,774 as at 31st December 2020.

The Church has been advised that the estimated cost for the church to buyout their Pension Scheme liabilities at 31 December 2020 was £84,300 .

10. Payment to trustees

Trustees were reimbursed for purchases made on behalf of the Church for Church activities. No other payments were made to the Trustees.

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Independent examiner’s report to the trustees of Brentwood Baptist Church

I report to the trustees on my examination of the accounts of the Brentwood Baptist Church (the Church) for the year ended 31 December 2020.

Responsibilities and basis of report

As the charity trustees of the Church you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).

I report in respect of my examination of the Church’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 giving me cause to believe that in any material respect:

  1. accounting records were not kept in respect of the Church as required by section 130 of the Act; or

  2. the accounts do not accord with the accounting records.

I have no 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.

S V De Boo

Shaun De Boo Chartered Accountant

Address: 40 Sebastian Avenue, Date: 11 May 2021

Shenfield, Essex, CM15 8PW

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