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2022-12-31-accounts

Brentwood Baptist Church

Annual Report and Accounts For the year ending 31[st] December 2022

Registered Charity No. 1130944

Approved by the Trustees and signed on their behalf by:

Sally McMahon

Sally McMahon – Church Secretary

14 September 2023

Date

Trustees Mick Bastable (As from June 2023) Bryan Dedman (until June 2023) Sean Fountain (As from September 2022) Brian Garner Ruth McMahon (until May 2023) Sally McMahon (As from June 2023) 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.

Organisational Structure

The Church is administered by the Managing Trustees who, for most of 2022, were the deacons, secretary and treasurer as elected by the Church membership in accordance with the Church Constitution. During 2022 the church came out of its pastoral vacancy, when the new minister, the Rev Sean Fountain, was inducted in September 2022 and who then joined the Trustees.

The Trustees hold a monthly meeting and usually a meeting of all Church members is held every two months. Since March 2020, the Trustees have mainly met online with occasional in-person meetings, particularly when interviewing prospective ministers. Likewise, in 2021 members meetings have been via Zoom. This practice continued throughout 2022.

During the times, both of the pastoral vacancy and after the appointment of the Rev Sean Fountain, the Trustees and others have continued to work together to ensure that the work of Brentwood Baptist Church continues. It would be reasonable to indicate that once the restrictions caused by the legislation relating to Covid-19 pandemic had been lifted some changes occurred. An example being; when the congregation was allowed to meet in person, some chose to remain at home and join the regular Sunday morning worship via zoom.

Review of Activities

Central to the work and witness of the Church is the provision of regular public services of Christian worship which has continued either on-line and/or in the building throughout 2022.

Sunday morning services have been held in the building from the time when it was possible to re-open but also we have continued to broadcast them online “live” using Zoom to enable those who are unable, or would prefer not to be in a large congregation, to participate. We are pleased that some new attendees have joined in both formats. Services have usually been led by members and since September by the minister with sermons from the

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minister or before September by visiting preachers or (less frequently) speakers from within the membership. There is now usually a full children's programme during the 10.30am service for ages 0-14 years which runs concurrently with the service.

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. As well as the links arranged through the church, there has been much support provided informally.

The main youth activity outside of our Family Church, which are usually held on Sunday mornings, is the Monday night club. The Hub is for school years 1 to 6 and includes refreshments, games, arts and crafts, and Bible stories and discussion. The Red Balloon Foundation has assisted the church in providing these Monday evening activities for children.

“Women's Own” is a group of ladies who regularly meet on a Tuesday afternoon at 2.30 pm in our Kings Hall for fellowship, worship and mutual encouragement. Having celebrated the century last year the ladies had their annual garden party which was another social occasion. Regular weekly meetings have continued and the occasional social functions such as the garden party and a cream tea have continued. These occasions are much enjoyed and appreciated by members and provide opportunities to enjoy each other’s company.

The Church has continued its involvement with Churches Together in Brentwood and church members are involved with Brentwood Schools Christian Worker Trust (BSCWT). The Church has continued to collect provisions for Brentwood Foodbank and, from the start of December 2022, has become a second distribution hub in Brentwood, opening on Friday mornings. The Church continued its financial support for BSCWT and the Brentwood group of Christians Against Poverty, as well as the Home Mission of the Baptist Union and BMS World Mission. We are linked with two BMS medical missionaries in northern Chad.

Some activities have not recommenced, including Kingfishers Babies & Toddlers . This was a meeting place for all those who had care of a child under 5 - those who attend include mums, dads, grandmas, grandads, childminders and nannies but this activity did not re-start initially due to lack of volunteers. Subsequently, volunteers have come forward and a new group, Little Footsteps, started in September 2022. In the same month, in conjunction with Brentwood Borough Council, the church opens its doors on a Monday morning as part of the established Oasis meeting to provide not only a warm space but also to provide tea and coffee and so those who make use of this have an opportunity to socialise.

The Church has continued to support the training of a former church member, now minister in training at Farnborough Baptist Church, including the payment of college fees at Spurgeon’s College. He will shortly commence his third and final year but has already been called to become a Newly Accredited Minister (NAM) for a 3 year contract from the end of his training with the church to which he was attached while training.

The new ministry, under Rev Sean Fountain commenced in September 2022. It takes time to adjust not only to a new congregation but also to a new home. It is therefore early days in his ministry and we are looking to the future as he settles in and takes stock.

The Church also welcomed a new administrator, Mel Kerrigan, in April 2022.

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Premises

Work on the front of the building started in April 2021 and was completed during 2022 and has met the objective of improved accessibility.

As well as the use of the church building noted above, some external users of the building continued meeting to use the facilities for their clubs/groups.

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: -

Financial review

The welcome arrival of the minister in September significantly affected the church’s finances. As well as the costs of stipend etc, the manse was no longer let (from February, as a new ministerial appointment seemed probable) and there was expenditure to redecorate and refurbish the mase.

The General Fund was thus only in a small surplus, pre transfers. Receipts were broadly level at £92,958 but payments were substantially higher than 2021 at £91,789. There was reduced rental income from the church building as, from the summer, Kingfishers Pre-school closed and the other major external user moved most of their activity elsewhere. This will have a greater effect in 2023. As noted in note 2, a Gift Aid claim of £4,570 was made in 2022 but not received until 2023 (and thus will be included in the 2023 accounts). Employment costs also increased with the appointment of a church administrator (also welcome!). Costs were incurred as Little Footsteps and Foodbank activities were initiated. However, less was spent than in 2021 on maintenance and repairs of the church building.

The balance of Building Refurbishment Fund was retained to cover the planned external redecoration of part of the church building, now due in 2023. In 2023, additional work at the manse, on the drive and frontage, have been agreed and will be reflected in this fund in future.

At the end of July 2022, the Trustees of the Baptist Pension Scheme advised that they had signed an agreement with an insurance company to secure the DB Plan members pension benefits. This meant that the deficit payments from August 2022 onwards were reduced to £1 per month. (This is subject to certain expectations being met for the transfer of assets. At the time of signing of these accounts, there is no indication this will not be the case). At the end of 2022 the balance of the Pension Deficit Fund was transferred to the General Fund which will bear the £1 per month cost.

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The church is supporting the training of a former church member including payment of college fees. £2,946 was paid from the Fees Fund for this purpose in 2022.

Use of the Communion Fund was less than in previous years. As usual, at year end, a transfer from the General Fund ensured the year-end balance is (almost) zero.

The Other Activities Fund now covers the cash received at Little Footsteps and also the activities of Women’s Own.

Overall, total receipts were £99,684 and payments were £104,112.

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 £311,822 is substantially 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, and particularly now a minister is in place. The Trustees continue to expect to be able to meet payments as they fall due for the foreseeable future.

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Accounts for 2022

(All figures in £)

- Summary of Receipts and Payments (pre transfers)

Unrestricted funds
General Fund
Pension Deficit Fund
Building Refurbishment Fund
Other Activities Fund
Fees Fund
Restricted funds
Communion Fund
Receipts to Forward Fund
Total for 2022		 Receipts
92,958
0
0
1,079
0
25
5,622
99,684		 Payments
91,789
2,777
47
627
2,946
425
5,501
104,112

Details for each fund and comparatives for 2021 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 (7)
Donations and Grant
Other income (3)
Payments
Ministry & Mission (4)
Church Management, admin etc
Donations by the Church (5)
Excess of Receipts over Payments
Transfer to Communion Fund
Transfer to Fees Fund
Transfer from Pension Deficit Fund
Transfer from Other Activities fund
Balance at start of year
Balance at end of year		 2022
73,391
8,398
665
350
5,317
2,196
638
2,003
92,958
25,127
56,417
10,245
91,789
1,169
(399)
0
20,259
290,793
311,822		 2021
74,506
12,698
95
220
9,674
18,174
2,831
118,197
3,790
40,544
11,130
55,464
62,733
(1,888)
(13,000)
0
579
242,365
290,793

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 (8)

A fund for the costs of meeting the pension deficit payments to be paid to the Baptist Pension Scheme under the Recovery Plan, originally established at the end of 2017. At end 2021, the balance was expected to be used for future payments until June 2026. However, from August 2022 the payments were reduced to £1pm – see Report and note 8. At the end 2022 the balance of the Pension Deficit Fund was transferred to the General Fund.

Payments
Deficit payments made
Excess of Receipts over Payments
Transfer to General Fund
Balance at start of year
Balance at year end		 2022
2,777
(2,777)
20,259
23,036
0		 2021
4,686
(4,686)
27,724
23,036

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		 2022
47
(47)
5,851
5,804		 2021
41,548
(41,548)
47,399
5,851

Other Church Activities Fund Designated

Two Church organisations receive money and make payments and this is shown separately. In addition, there are payments for Little Footsteps equipment and materials within the General Fund

Receipts
Women’s Own
Little Footsteps
Total receipts
Payments
Women’s Own
Little Footsteps
Total payments
Excess of Receipts over Payments
Transfer to General Fund from Kingfisher
Babies and Toddlers and Monday nights
Balance at start of year
Balance at year end		 2022
938
141
1079
577
50
627
452
415
867		 2021
361
0
361
611
0
611
(250)
(579)
1,244
415

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Fees Fund Designated

A fund, established in 2021, for payment of college fees of a minister in training (a former member).

Payments
Payment of fees made
Excess of Receipts over Payments
Transfer from General Fund
Balance at start of year
Balance at year end		 2022
2,946
(2,946)
7,078
4,132		 2021
5,922
(5,922)
13,000
0
7,078

Restricted Receipts to Forward Fund

During the year the church receives money identified specifically for other charities or people which the church supports. 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 – Ukraine
Baptist Missionary Society
Foodbank
Home Mission
Thank offering 2022
Josh Waldock training
Baptist Missionary Society – Op Agri
Baptist Missionary Society
Foodbank
Home Mission
Josh Waldock training		 2022
received
3,807
290
130
176
1,094
125
5,622
2021
received
246
315
320
320
500
1,701		 2022
paid
3,807
456
230
183
700
125
5,501
2021
paid
246
322
320
311
500
1,699
 End 2022
balance
0
(166)
(100)
2
394
0
130
End 2021
balance
0
0
0
9
0
9

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Communion Fund Restricted

A restricted fund for use by the minister to support members of the congregation, and others, at his discretion. In the pastoral vacancy, these decisions were made by the Church Secretary.

Receipts
Giving (inc Gift Aid)
Payments
Support given
Excess of Receipts over Payments
Transfer from General Fund
Balance at start of year
Balance at year end		 2022
25
25
425
425
(400)
399
1
0		 2021
125
125
2,011
(2,011)
(1886)
1888
0
1

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Statement of Assets and Liabilities


Bank accounts
Instant Access
Notice – 60 day
Notice – 1 year or over
Other activities accounts
Cash		 2022
68,077
83,945
169,866
281
586
322,755		 2021
73,656
83,521
169,590
281
134
327,183
Represented by
Unrestricted funds
General Fund
Pension Deficit Fund
Building Refurbishment Fund
Fees Fund
Other Church Activities Fund
Restricted funds
Communion Fund
Receipts to Forward Fund		 2022
311,822
0
5,804
4,132
867
0
130
322,755		 2021
290,793
23,036
5,851
7,078
415
1
9
327,183

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 £2,423,608 (insurance amount)

(£2,197,287)

Church manse at 16 Doddinghurst Road, Brentwood, CM15 9EH valued at £390,342 (insurance amount)

(£353,891)

The Church also owns

At 31 December 2022, a Gift Aid claim of £4,570 had been made but had not been paid by HMRC. It was received on 5 January 2023. £150 is due to other charities.

At 31[st] December 2022, the Church held £396 which was due to other charities and a liability to make pension scheme deficit payments of £1 per month.

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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: for 2022, £4,570 of Gift Aid that was normally been received was not received until 5 January 2023, and will be included in 2023 accounts.

3. Other Income comprises

her Income comprises
Donations for Minibus
Interest
Sale of books
Fees		 2022
163
1,828
10
2
2,003		 2021
91
2,675
65
2,831

4. Payments / Ministry & Mission – Salaries, employer NI and pension costs of Minister and Administrator 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)
TEAR fund
Compassion Uk
London City Mission
Love Purfleet
Leprosy Mission
Community Heartbeat		 2022
1,920
3,210
1,800
1,800
1,000
100
100
100
100
115
10,245		 2021
2,700
4,030
1,800
1,800
450
350
0
0
0
0
11,130

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6. Detail of payments by the church

Detail of payments by the church
2022
11,244
6,612
3,355
5,150
10,528
6,690
2,213
2,737
2,687
17,060
516
183
5,276
1,530
684
1,315
847
10,245
1,991
100
35
13
394
387
91,789		 2021
710
0
0
0
3,080
5,664
6,828
1,768
2,049
8,934
3,095
709
256
6,544
913
327
1,410
1,466
11,130
0
403
0
138
38
Minister's salary, pension (7)
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 (7)
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
Little Footsteps
Foodbank
55,464

7. In 2021 and until 1 September 2022, minister’s salary and pension were the costs of an Interim Member of the pension scheme .

In 2022, manse income and manse repairs both include £90 paid for repairs arranged by the letting agents at the request of the church. This was deducted from the money received by the letting agents before it was paid to the church. Fees and costs of £156 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. In 2021, the corresponding figures were £600 and £3,672.

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8. Pension Scheme Liabilities

The Church is a participating employer 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 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.

On 30th June 2022 the Baptist Pension Scheme signed an agreement with the insurance company Just Group (“Just”) to secure DB Plan members’ pension benefits. Just are now providing financial backing for all pensions provided through the Scheme’s DB Plan and following this transaction, the Scheme no longer has a shortfall. An updated Recovery plan was then signed in August 2022 under which recovery contributions from each participating employer in the DB Plan reduced to £1 per month from August 2022

9. Payment to trustees

Trustees were reimbursed for purchases made on behalf of the Church for Church activities.

The Minister acts as one of the church's trustees and receives remuneration and other benefits in respect of his services as Minister, including the provision of manse accommodation.

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 2022.

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, Shenfield, Essex, CM15 8PW

Date: 17 September 2023

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