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2020-12-31-accounts

GORSLEY BAPTIST CHURCH ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENT

YEAR ENDED 31 DECEMBER 2020

Charity Number 1131159

CONTENTS Pages
Annual Report of the Trustees 1
Reference and Administrative Details 1-2
Structure, Governance and Management 2
Objectives and Activities 2
Meetings - adults and families 3
Meetings - youth 4
Meetings - children 5 - 6
Public Benefit, Achievements and Performance 6-8
Staff 8
Facilities and other resources 8
Impact of Coronavirus (Covid-19) 9
Financial Review and Reserves Policy 9
Reserves Policy 10
General Fund 10-11
Development Fund 11-12
Foodbank 12
Designated Funds 12
Global Mission budget 12
Statement of Trustees’ responsibilities in relation to the Financial Statements 13
Independent examiner’s report to the trustees of Gorsley Baptist Church 14
Statement of Financial Activities 15
Balance Sheet 16
Cash Flow Statement 17
Notes forming part of the financial statements 18- 33

GORSLEY BAPTIST CHURCH

REPORT OF THE TRUSTEES

YEAR ENDED 31 DECEMBER 2020

Annual Report of the Trustees

The Trustees present their report and the financial statements for the charity for the year ended 31 December 2020. The financial statements have been prepared in accordance with the accounting policies set out on pages 18 and 19 and comply with the charity's trust deed and applicable law.

Reference and Administrative Details

Gorsley Baptist Church is a charity registered with the Charity Commission in August 2009 (No. 1131159).

Administrative Office: Gorsley Baptist Church Gorsley Ross-on-Wye Herefordshire HR9 7SE

Management Trustees:

Steve Beard Robert Little Richard Cockroft (from March 2021) Diana Mattos (to December 2020) Ruth Davis (to March 2020) Steve Potter Trustee with dispensation (from June 2020) Andrew Stuffins Claire Harrison Colin Taylor (to January 2021) Chris John (to November 2020) Revd David Taylor-Black (Chair) Graham Leaver

Robert Little holds Title to charity property

Senior management and administrative posts: Minister: Revd David Taylor-Black Youth Pastor: Edward Owen Children’s Pastors: Esther Goulding (to December 2020) Chantal Poole Church Administrators: Sandra Bishop Laura Boswell Finance Administrator: Sophie Gauntlett Catering Team Lead: Helen Owen (née Pritchard) Church Secretary: Richard Cockroft (from March 2021) Colin Taylor (to January 2021) Church Treasurer: Andrew Stuffins Bankers: Lloyds Bank plc 19 Eastgate Street Gloucester GL1 1NU

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Independent Examiners:

Joshua Kingston ACA Burton Sweet Chartered Accountants The Clock Tower 5 Farleigh Court Old Weston Road Flax Bourton Bristol BS48 1UR

Structure, Governance and Management

Gorsley Baptist Church (subsequently described simply as the ‘church’) is a charitable unincorporated association governed by a constitution adopted on 17 June 2009 and as amended on 30 November 2011.

Trust property held in connection with Gorsley Baptist Church is a linked charity (No. 1131159-1), its governing document being an indenture dated 13 June 1851.

The minister provides spiritual oversight for the church. The present incumbent, Revd David TaylorBlack, was called to this role by resolution of a church members’ meeting in 2016.

The day to day management of the church is delegated to the trustees, comprising the minister, church secretary, church treasurer, and up to 13 further trustees. The trustees meet at monthly intervals and are joined there by other members of the pastoral team (currently the youth pastor and children’s pastor) together comprising the Gorsley Baptist Church Leadership Team. All the trustees except for the minister are elected by the church members and must either retire by rotation after three years or stand for re-election. Under church rules adopted at a church members’ meeting in November 2017 these same trustees have been designated as either deacons or elders depending on their specific responsibilities.

The trustees are satisfied that systems are in place to mitigate exposure to the major risks to which the church might be exposed. However, a formal risk register is being developed with a view to strengthening the risk management policy.

Objectives and Activities

The aims of the church are contained within its constitution, being modelled on one produced by the Baptist Union of Great Britain and extended in the church rules. The church rules govern the way the church conducts its business in the light of its constitution. 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 concerned to reach out to the community in many different ways. The minister together with the other pastors and trustees strive to arrange services in such a way that members of the community are encouraged to join in worship, praise and prayer.

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Meetings - adults and families

The main structure of community discipleship at the beginning of 2020, prior to the Covid-19 pandemic, was presented at five different meetings, as described below. From the date of the first lockdown in England (23 March), alternative arrangements began to evolve with meetings held on-line via Zoom and teaching and worship being shared via Facebook Live and YouTube. These arrangements continued to evolve over the course of the year as the necessary risk assessments were put into place, guidance developed, experience was gained, and transitions through different levels of controls occurred, including a return to lockdown on 5 November. Membership of the church currently stands at 237 and the total number of members and friends routinely contacted by the leadership is of the order of 30 per month. These numbers have not declined significantly through 2020.

2020, pre-pandemic 2020, pandemic conditions The Sunday morning ‘Gorsley Gathered’ service at This whole-family service has been retained 10.30am is an opportunity for the whole church throughout the pandemic, online. Initially prefamily to join together. This begins by worshiping recorded material was mixed and transmitted to both together; the children and youth then leave for their the Facebook Live and YouTube platforms, but the separate groups whilst further worship continues capability for producing live-stream worship and with scriptural teaching and ministry. The teaching is teaching increased progressively over the course of recorded and uploaded to a website so that those 2020. As noted below, children's and youth who are serving in other activities of the church or ministries were also continued but at different times. could not otherwise attend can catch-up at their When guidance and the provision of appropriate risk convenience. assessments have allowed, small numbers of members and friends have been invited to observe these services, whilst they were being live-streamed from the church. A meeting on Sunday evenings which serves as a Sunday evening prayer meetings have continued to weekly prayer meeting, preceded by a time of operate, either via Zoom or (when guidance has worship. permitted this) through socially distanced gatherings outdoors or indoors, on church premises. There are about 20 ‘Life Groups’ which are small The Life Groups have continued to meet over the group meetings where Christians meet to period of the pandemic by using Zoom. The focus on supplement the weekend Gorsley Gathered meeting. teaching, praying and mutual pastoral support has Pre-pandemic, Life Groups meet in a variety of continued. locations, at peoples’ homes or the church, at various times and days in the week. The emphasis of these groups is to develop friendship and accountability to each other, to study the Bible and to take care of practical and spiritual needs. When Life Groups did not meet every fourth month, Mid-week Bible teaching has been made available to a midweek ‘Reload Service’ gave our Life Group members and friends, via YouTube, throughout the leaders a break and offered a further opportunity for pandemic on a weekly basis up to October. A two people to meet in fellowship, engage in worship and week nightly Bible teaching series was available up to receive further teaching. This meeting provided the Easter 2020. opportunity for people to develop a preaching gift. Before the pandemic, a further service, ‘Classic No direct equivalent to this Sunday afternoon Praise’, was held once a month on Sunday afternoon meeting has been maintained during the pandemic, at 3pm for those who enjoy a traditional style of but care has been taken to ensure that the main service. This meeting favoured those who enjoy Sunday morning services have catered for the full hymns in a quieter setting. range of needs involved.

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Meetings - youth

Gorsley Youth exists to engage with Young People in years 6 – 13. Prior to the pandemic this was being done by putting on the four different weekly programs listed below. It is our desire that Young People attending Gorsley Baptist Church will come to know God, grow in their relationship with Him and have a lot of fun at the same time. A lot changed in 2020 as we went in and out of various Covid19 related restrictions, so the table below provides a brief summary of what the ministry looked like for the majority of the year. There were times when one-off events happened, and small groups met in person, but these were short-lived due to the restrictions involved. Gorsley Youth currently engages with approximately 40 young people throughout any given week.

2020, pre-pandemic 2020, pandemic conditions
‘Get Set, Go!’ (GSG) for school years 7-9, runs every
Sunday morning and is designed for our churched
Youth to attend and to access the Bible in a dynamic
and engaging way.		 DMC moved onto Zoom on a Sunday evening and is
now for school years 9-11. It follows the same
teaching as GSG just at a deeper level in relation to
the Youth developing. DMC follows the same
structure as GSG. We still plan to cater for the tough
questions in the summer term.
‘Deep Meaningful Conversations’ (DMC) for school
years 10-13. DMC runs every Sunday evening and is
a chance for our older Youth to discuss the tougher
questions of faith and life in a safe environment.		 DMC moved onto Zoom on a Sunday evening and is
now for school years 9-11. We still plan to cater for
the tough questions in the Summer term.
‘Horizon’ is a new group for 2020/21 and is
specifically designed to help those in year 11-13
discover who God has made them to be, and to help
them excel in that. The sessions are reflective in
nature and encourage the Young People to actively
interact.
‘Going Deeper’ for school years 7-13. Going Deeper
is an opportunity for young people who want to ‘go
deeper’ in their knowledge of the Bible to do so. A
typical evening contains a meal together and a Bible
study. So far, the sessions have got as far as the
Exodus.		 Going Deeper, which is hosted on a Wednesday
evening, also moved onto Zoom during the pandemic
for a few months but ceased to operate when the
team became unavailable during the week. We hope
to restart this when the desire returns from the
Youth. However, many Youth currently have ‘Zoom
Fatigue’.
‘Friday Youth’ for school years 7-13. The evening is
focused on having fun and making church a fun and
safe place to be. Our vision for 2020 was to see un-
churched Young People hearing a lot more about
Jesus and having a specifically designed time each
week forgroupmentoring.		 Friday Youth ceased to operate when the pandemic
hit.

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Meetings - children

Gorsley Baptist Children Ministry’s aims to enable children to know about Jesus and the gospel, and to deepen their relationship/friendship with Jesus through prayer. In 2020, our children and youth age brackets were adjusted so that children now enter youth ministry in school year 6 and this has helped us to deliver a better age-appropriate program of activities and lessons to a narrower age spread. We also provide community and teaching events about Jesus and the gospel through our community and school outreach.

A lot has changed in 2020 as we went in and out of various Covid-19-related restrictions, so the table below provides a summary of what the ministry looked like throughout the year. From the start of the year, we provided Sunday ministry and a weekly community outreach event called Buzz Fridays and a weekly Bible study group for (YR3-YR6) children.

2020, pre-pandemic 2020, pandemic conditions
For 0-3year-olds:
A crèche is run on a Sunday morning and has followed
a similar program of teaching over the past few years
which include: ‘God made me and the world’, ‘God
loves,helps and forgives us’.		 Due to Covid-19 restrictions on numbers attending,
the groups were limited to 15, and required parental
supervision. Generally, the leaders within these
groups being in their 60s, has led to these groups not
being run since March.
Some younger Leaders have helped with other
ministries over the year. Some parents have met
together and created support bubbles during the
pandemic.
‘Acorn’ for toddlers is run on a Thursday morning and
provides a program of play, craft and teaching about
God through stories and singing.
For 3-5 year-olds:
Preschool is run on a Sunday morning and its
activities each week vary and include a Bible story,
crafts, snack time and singing with simple words and
actions.		 To maintain connection and teaching from March our
ministry moved on-line initially through the creation
of a YouTube channel for children from 3-10 years
old. However, this became unsustainable but in
addition other technology was mastered such as
Zoom. So, from August preschool to Yr5 moved onto
Zoom on a Sundaymorningfor 45-minute sessions.
For 5-11year-olds:
Children’s Ministry is run on a Sunday morning and is
following a program of teaching taking the children
through the Old and New Testament. It includes
teaching activities such as Bible stories, drama,
singing, games as well as other activities.		 Zoom could provide an interactive teaching format
and the social interaction that both leaders and
children wanted. We were able to produce age-
appropriate teaching. We had regular attendance
from 20-25 children attending Zoom. However, there
was some negativity regarding Zoom. Some families
were concerned about increased screen time, or that
their child did not want to be on Zoom as it was like
being at school. There have been opportunities to
meet in our church building and on our church field
during the pandemic as restrictions were relaxed,
which did give some families that option which was
taken up. This has created two ‘groups’ during the
pandemic,some families attendingonlyZoom as

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they didn’t feel comfortable attending in-person
events, and other families attending only in-church
events because they had negativity towards Zoom.
A ‘tailored’ program was required to support all
families which has stretched resources such as
children’spastors and volunteer leaders.
‘Buzz Fridays’: ‘Buzz Extreme’ and ‘Buzz Extra’
children’s groups are run on a Friday evening during
school time and are open to the children of our
community. There is a varied program throughout
the year exploring God, and other themes including
sport,science and different festivals.		 Buzz Friday was moved on-line however, it had a low
number of attendees. It was also moved into the
building when restrictions were relaxed but low
numbers were still observed. Buzz may require
rebuilding again once the pandemic is finished and
we can return to normal.
‘Connect’ is run on a Monday evening for children
between the age of 8-11 years old who want to go
into a deeper studyof the Bible.
Evangelistic Community events such as ‘Buzz Blast’,
‘Worship Workshop’, ‘Live Nativity’ and ‘Light Party’
are run on a Saturday throughout the year for
children from the community to come and have fun
learning about God through music, drama, sport
games and art and crafts.		 Light Party and Live Nativity/Christingle were moved
onto a live-streamed pre-recorded video event
shown on our YouTube channel with games, jokes,
teaching and craft activities provided, which had up
to 80 views. This was very encouraging; these events
were well supported byviewers.
Hope bags were also provided for the community and
church children during the pandemic. Bags consisted
of church donated sweets, activities, and crafts.
Approximately 50 bags were collected during each
event run during Easter, Summer, Halloween, and
Christmas festivals. Bags and other events were
advertised through the church and personal
Facebook pages as well as through the school
bookbagor school emails.

Public Benefit, Achievements and Performance

The trustees consider that the activities of the church comply with the guidance issued by the Charity Commissioners regarding Public Benefit.

Prior to pandemic-related lockdown in 2020 the church continued to offer a number of weekly activities to the local community. Several of these activities subsequently were paused where either they proved incompatible with guidance, Covid-19 risk assessments proved impracticable, or both.

2020, pre-pandemic 2020, pandemic conditions
‘CommunityLunch’ and ‘Beehive’ for seniors; Deferred.
‘WASPs’, a social group specifically for widowedand
singlepeopleto meet for mutual support and
encouragement.		 Deferred.
‘Buzz Fridays’, a weekly kids club for children in years
R to y6 in the community, regularly involving 50-60
children,together with some of theirparents.		 See previous table.

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‘Acorn’, a toddler group, which regularly sees over 40
children and their carers.		 See previous table.
‘Joseph and His Technicolour Dream Coat’ is a
community
theatre
project
in
rehearsal
for
presentation in 2020 and has included many children,
young people and adults from the local community.		 Deferred.
A Short Mat Bowls club having social and league
matches.		 Deferred.

In addition, members of the church have continued to support TLG Early Intervention Coaching in Gorsley Goffs and Lea Church of England Primary School and this currently involves the support of 10 children through long term mentoring. These activities have continued during the pandemic in 2020, in so far as school access arrangements have allowed.

During 2020 the church continued to work with the local community in maintaining a Community Shop and Post Office Local facility within church premises. The Community Shop and Post Office are run and managed by a separate Community Interest Company (CIC) with up to 8 directors, a maximum of 5 being from Church membership and 3 being from the local community; there are currently 6 directors in total. The Church leases the premises for the shop to the CIC.

During 2020 development of a coffee shop, to be operated as an extension of the existing ministries of the Church, was completed. The Orchard Coffee House first opened in October. Since then, it has operated as Covid-19 related controls have allowed, largely providing a carry-out service of hot drinks, cake and light lunches. As with the Community Shop and Post Office this coffee shop development follows the findings of a community survey which identified both as community needs. In addition to the coffee shop extension the associated planning approval has permitted the development of two play parks (again aligned with the community survey findings) in the field adjoining, and owned by, the church.

The same planning approval was contingent upon the development and approval of a formal Landscape Plan for the larger of the two fields owned by the church. This has resulted in the development of a Community Orchard, involving footpaths, benches, an orchard and areas of planted wildflower meadow, and a football pitch. Activities on that football pitch, and maintenance of that pitch, are subject to an agreement made between the church and the local Gorsley Village Football Club.

In February 2020 the final consultation over a Bromsash, Gorsley and Linton Neighbourhood Plan was closed. The draft plan had proposed that both of the fields owned by the church (described here as 'GBC big field', that associated with the coffee shop development, and 'GBC small field') be formally designated as Local Green Space with controls on subsequent development and use, under that Neighbourhood Plan, with policies for managing development within a Local Green Space consistent with those for Green Belts. The National Policy Planning Framework (NPPF) states that the Local Green Space designation should only be used where the green space is:

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c) Local in character and is not an extensive tract of land.

The trustees responded to the consultation to the effect that:

A satellite chapel building at Kempley, no longer in use and being at risk of falling into disrepair, was sold during 2020. The membership of that chapel was held in common to that of Gorsley Baptist Church and the former congregation now worship at Gorsley. The sale followed an application for first registration of the premises at Kempley with HM Land Registry in 2019, and a subsequent application to the Commissioners for a scheme to permit the sale of the premises with any proceeds raised to be used for the benefit of the church.

Staff

A number of staff were recruited over the course of the year, both to support the operations of the newly founded Orchard Coffee House and to provide for maintenance and groundsman duties across the width of the premises and the associated Orchard field.

The appointments made were as follows:

Catering Team Lead Helen Owen (nee Pritchard) from 2 March 2020
Assistant Catering Team lead Ioana Jones from 5 October 2020
Chef Penny Harrison from 12 October 2020
Maintenance/groundsman Richard Dunnett from 14 September 2020

Facilities and other resources

The development of the Orchard Coffee House described above, together with the associated playparks, football pitch and community orchard, are allowing a significant increase in the church's engagement with the local community. In addition, the conditions of the Covid-19 pandemic have provoked the development of expertise and acquisition of both equipment and a dedicated 'export' studio to support online and live-streamed production of services and other meetings. As the expectation is that future events will both be live-streamed and face to face, this capability will continue to stand the church in good stead as pandemic related controls ease.

The appointment of a maintenance groundsman has allowed much work to be done to improve the condition of the church premises. In addition, opportunity has been taken during the pandemic to refurbish the electrical systems of the church and improve lighting and ventilation in the main hall, activities that would otherwise have had a significant impact on the routine use of the premises.

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Impact of Coronavirus (Covid-19)

As with all organisations, the control measures for Covid-19 began to impact on the church in early 2020. The trustees carried out a thorough risk review both practical and financial, and arrangements were made to continue the life of the church in worship and service to the community.

As described more fully earlier in this report, worship continues in an online environment, and resources for youth and children are also being made available online which together keep the church community connected. Online meeting spaces are facilitating continuity for various church activities. Pastoral work (as far as possible) also continues via telephone and online and occasionally in person when guidelines have permitted. Members have been encouraged (within government guidelines) to continue neighbourly support delivering food and prescriptions as well as meals.

The community shop which is hosted on the premises is an important link to the community and continues to flourish under social distancing guidelines. Initiatives have been set up to create a virtual community for the local population, and to identify practical needs among those affected by self-isolation and shielding.

The trustees expect that by adapting to the circumstances dictated by Covid-19 the church and its relationship with the local community will continue to flourish and develop.

Financial Review and Reserves Policy

Regular financial reviews in respect of Covid-19 continue to confirm that the church has sufficient financial resources to meet its contractual obligations as they fall due; and the costs of running the charitable activities of the church for a period exceeding six months; and that reserves remain healthy at the year-end; and at the date this report and accounts were signed.

The latest review also confirmed that it is appropriate for the trustees to report on the accounts to 31 December 2020 on a going concern basis (note 1.14). During 2020 the church made use of the government Coronavirus Job Retention Scheme in respect of two part-time employees.

The financial performance of the charity is set out in the Statement of Financial Activities on page 15 and in the subsequent pages of this report.

There are no restrictions on the charity's power to invest. The charity's prime concern with the investment of funds is to ensure that risk is kept to a minimum. The second priority is to ensure that funds are maintained with regard to inflation over the short term. The charity does not rely on investment income to meet its objectives. Having due regard for the cash-flow requirements of the development project, during 2020 the trustees reduced the balance on the church’s interest-bearing deposit accounts with the Baptist Union. Because of continuing low rates of interest on bank balances, the trustees periodically review whether or not to once again increase the amounts on deposit with the Baptist Union.

The trustees have adopted a ‘Purchasing & Payment Procedure’ which sets out the process for the authorisation and payment of invoices, and the responsibilities of those ordering goods, etc.

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Reserves Policy

It is the policy of the charity to maintain a sufficient balance of funds as free reserves within the general fund to enable it to meet all its financial obligations as they fall due. The trustees have decided that the present target range for these free reserves is between £72,500 and £145,000, which is equal to between 3 and 6 months’ reported expenditure from free reserves. At the year end the actual free reserves were £180,139 (2019: £98,231) which exceeds the target range, as a result of reduced activity arising from Covid-19 and deferred property maintenance.

General Fund

There was a retained surplus of £24,028 in the general fund during 2020 (2019: £3,415). This was after transferring the sum of £12,500 to the development fund in accordance with the decision made at the church meeting on 25 November 2020. The balance held on the general fund is reviewed as part of the setting of the annual budget, and proposed increases or decreases in spending are subject to approval by the church membership. At the year end, the balance on the general fund had increased to £214,541 (2019: £192,231), excluding the net book value of fixed assets, £531,698 (2019: £529,980). The total balance on the general fund includes the net book value of fixed assets with the exception of the Orchard Coffee House, Play Park and associated works and equipment which are held in the (restricted) development fund.

The Baptist Pension Scheme deficit recovery plan was revised on 30 September 2020 following additional Baptist Union contributions to the Scheme. This has resulted in a reduction of £10,990 in the church’s liability under the plan and an increase in reserves. £10,990 is included within the retained surplus of £24,028 on the general fund for the year (see above and note 21).

The principal source of income for the charity is donations from members and friends of the church. The level of these donations is therefore a key indicator in appraising the charity’s financial position. During 2020 the average weekly amount of cash collections plus donations direct to the charity’s bank account for the year was £4,250 (2019: £3,980). In addition, the church has been raising monies throughout 2020 for the development of the coffee house referred to above. These additional monies are accounted for within the development fund (see below).

With development works continuing until the end of 2020, the trustees felt that it was prudent to maintain a significant level of reserves and to continue investing surplus cash in higher interest accounts that allow the church access to funds within a reasonably short time frame.

The policy of the church is to plan so that continuing revenue expenditure is made from current revenue income and not made out of the general fund reserve, and to retain that reserve for one-off items of expenditure and to meet the need to facilitate the repair and maintenance obligations and improvement requirements of their property assets.

In 2020, capitalised expenditure on asset purchases made by the general fund amounted to £29,591 (2019: £nil) (see note 10).

During construction work for the Orchard Coffee House, it was decided that additional natural lighting to the Hall needed to be provided by means of six Velux roof windows. The cost of these works was

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£14,989. The trustees decided to transfer the £10,000 balance from the designated fund for repairs and maintenance to help fund these works. (The cost is included within the Fixed Asset purchase value noted above.)

The church meeting held on 24 June 2020 approved a budget of £15,000 to be used within six months for the purchase of media equipment in connection with the streaming of church services online and the production of video content. Media equipment asset purchases from this budget amounted to £11,824. (The cost is included within the capitalised expenditure value noted above.) A further £1,839 was spent on cables, sundries and consumables, and an order with a cost of £372 was approved and placed in December 2020. The total spent from the £15,000 budget was £14,035.

The Orchard Coffee House ministry opened its doors to the community near the end of October, and although subject to Covid-19 restrictions it experienced an average daily footfall of 60 people during the period it was open in 2020. Sales of £10,096 are included under Charitable Activities (note 3) and there was a net ministry cost for the period of £2,503.

Development Fund

The money balance within the development fund at 31 December 2019 was £30,413 within a total fund of £183,090 (see note 14).

Giving to the development fund in 2020 amounted to £76,117 (2019: £151,061) (including gift aid recoverable). A further £190 was pledged and has been received in 2021. £10,361 (2019: £4,145) (included above) has been received on the development fund in 2020 which is nominated for the Play Park.

During the year, the trustees sold Kempley Chapel. The net proceeds of £103,661 (after professional fees had been deducted) were credited to the development fund (see note 4).

In accordance with the decision made at the church meeting on 25 November 2020 the sum of £12,500 has been transferred from the general fund to the development fund on 31 December 2020.

Development fund expenditure which has not been capitalised amounts to £6,252 (2019: £3,456). A further £250,048 (2019: £152,677) has been capitalised in respect of the Orchard Coffee House, Play Park and associated works (see note 10). The money balance within the development fund at 31 December 2020 was a deficit of £34,030 (2019: surplus £30,413) within a total fund of £365,588 (2019: £183,090) (see note 14). This deficit has been funded on a short-term basis by using general fund money balances in accordance with the church members’ meeting held on 6 February 2019.

The trustees plan to clear the deficit by (a) crediting the monies received in 2021 under a legacy donation to the development fund. (The majority of the legacy monies were received in January 2021); (b) a new pledge in 2021 has been received which will clear the remaining development fund deficit.

The construction and fit-out of the Orchard Coffee House development is considered by the trustees to be complete and the development fund will be closed to new donations when the remaining

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monies have been received. The balance of £426 nominated for the provision of EV charging points will be utilised towards the purchase of the charging points themselves, the remainder of which cost will be made from the general fund.

Foodbank

As a response to the impact of the Covid-19, the trustees decided in late March 2020 to implement a Foodbank in support of members and friends of the church and the Gorsley community. Gifts given towards this ministry have been placed in a restricted fund. Donations to this fund amount to £3,300 (including Gift Aid) and expenditure to date is £454 (see note 14).

Designated Funds

At 31 December 2019 the trustees had designated £10,000 for a repairs and maintenance fund in expectation that these costs may exceed the available revenue budget during a single year as a consequence of costs arising from outstanding deferred works. The trustees have allocated this designated fund towards the cost of providing Velux windows in the Hall to improve the amount of available natural light (see above).

The housing fund is a designated fund for rental income and maintenance costs in respect of the bungalows, Suncrest and the Old Manse.

Other than the above funds, the remaining designated funds represent specific areas of the church's activities, and groups within the church. Sufficient balances are maintained in order to fund the activities of each group. Surplus funds within these groups may be donated to other areas of church activities or to other organisations which share the church's objectives.

Global Mission budget

The global mission budget is allocated 10% of general giving to the Church in the prior year. It is administered by the Mission Action Group – a team of church members usually chaired by a trustee. The trustees are grateful to Dr Ruth Davies for chairing the group’s meetings whilst awaiting a new trustee appointment, or designated other, as chair. In 2020 this activity provided support to the Baptist Missionary Society, Peace and Hope, Open Doors, Smiles and the Baptist Home Mission. It also supported Sindangan Evangelical Church in the Philippines and the work of Herefordshire Vennture, TIC+ and Operation Mobilisation, Samaritan’s Purse, TEAR Fund and Scripture Union (see note 7).

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Statement of Trustees’ responsibilities in relation to the Financial Statements

The trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England & Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the income and expenditure of the charity for that period. In preparing these financial statements, 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 charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 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.

This report was approved by the Trustees on 21 April 2021 and signed on their behalf by:

DAVID TAYLOR-BLACK

Chair of Trustees

Date: 21 April 2021

13

GORSLEY BAPTIST CHURCH

REPORT OF THE TRUSTEES

YEAR ENDED 31 DECEMBER 2020

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

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

Responsibilities and basis of report

As the charity trustees of the Charity 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 Charity’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

Since the Charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I a member of the Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.

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 Charity as required by section 130 of the Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination.

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.

JOSH KINGSTON

Joshua Kingston, ACA Burton Sweet Chartered Accountants The Clock Tower 5 Farleigh Court Old Weston Road Flax Bourton Bristol BS48 1UR

Date: 21 April 2021

14

GORSLEY BAPTIST CHURCH

STATEMENT OF FINANCIAL ACTIVITIES

YEAR ENDED 31 DECEMBER 2020

Note
Income from
Donations and Legacies
2
Church Activities
3
Other trading activities
4
Investments
Other income
4
Total income
Expenditure on
Raising funds
5
Church activities
6
Total expenditure
Transfers between funds
16
Net income/(expenditure)
Net movement in funds
Total funds at 1 January
14
Total funds at 31 December
14		 Unrestricted
Restricted
Total Funds
Total Funds
Funds
Funds
2020
2019
£
£
£
£
260,921
79,217
340,138
399,228
14,493
200
14,693
35,588
37,413
-
37,413
44,527
1,277
-
1,277
2,763
8,236
103,661
111,897
-
322,340
183,078
505,418
482,106
16,290
6,252
22,542
30,209
261,618
4,350
265,968
263,420
277,908
10,602
288,510
293,629
(12,366)
12,366
-
-
32,066
184,842
216,908
188,477
32,066
184,842
216,908
188,477
861,743
186,247
1,047,990
859,513
893,809
371,089
1,264,898
1,047,990

The charity has no recognised gains or losses other than the results for the year as set out above. All activities are classed as continuing

Prior year Statement of Financial Activities is shown in note 19

The notes on pages 18 to 33 form part of these financial statements

15

GORSLEY BAPTIST CHURCH

BALANCE SHEET

AT 31 DECEMBER 2020

Note
Fixed Assets
Tangible fixed assets
10
Current Assets
Debtors
11
Stock
12
Cash at bank and in hand
Creditors: amounts falling due
within one year
13
Net current assets
Creditors: amounts falling due
after more than one year
13
Net Assets
15
Funds
Unrestricted funds
14
Restricted funds
14		 £
15,154
944
352,362		 2020
£
930,891
352,079		 £
13,940
-
411,984		 2019
£
682,657
396,536
368,460
(16,381)		 425,924
(29,388)
(18,072)
1,264,898		 (31,203)
1,047,990
893,809
371,089		 861,743
186,247
1,264,898 1,047,990

The financial statements were approved by the trustees on 21 April 2021 and signed on their behalf by:

P A STUFFINS

P Andrew Stuffins Treasurer

The notes on pages 18 to 33 form part of these financial statements

16

GORSLEY BAPTIST CHURCH

CASH FLOW STATEMENT

YEAR ENDED 31 DECEMBER 2020

Note
Net cash inflow from operating activities
22
Non-operational cash flows:
Investing activities
Payments for tangible fixed assets
Proceeds from sales of tangible fixed assets
Investment income (Interest received)
Financing activities
Net cash inflow/(outflow) for the year
23		 2020
£
108,740
(279,639)
110,000
1,277
(168,362)
-
(59,622)		 2019
£
238,185
(152,677)
-
2,763
(149,914)
-
88,271

Cashflow Restrictions

Charity law prohibits the use of net cash inflows on any endowed or other restricted fund to offset net cash outflows on any fund outside its own objects, except on special authority. In practice, this restriction has not had any effect on cash flows for the year.

17

GORSLEY BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2020

1 Accounting Policies

1.1 Accounting convention

The charity is a public benefit entity within the meaning of FRS102. The financial statements have been prepared under the Charities Act 2011, FRS102 and the Statement of Recommended Practice, Accounting and Reporting by Charities (SORP (FRS102)).

The financial Statements have been prepared under the historical cost convention and on a going concern basis and are fully compliant with FRS102, Section 1A. The presentation currency is £ Sterling.

The principal accounting policies adopted in the preparation of the financial statements are as follows:

1.2 Fund Accounting

Funds held by the charity are either:

Unrestricted general funds - these are funds which can be used in accordance with the charitable objects at the discretion of the Trustees Designated funds - these are funds set aside by the Trustees out of unrestricted general funds for specific future prospects or projects. Restricted funds - these are fund that can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for a particular restricted purpose.

Further explanation of the nature and purpose of each restricted fund is included in the notes to the financial statements.

1.3 Income

All income is recognised once the charity has entitlement to that income, there is sufficient certainty of receipt and so it is probable that the income will be received, and the amount can be measured reliably. Interest is included when receivable by the charity.

Income tax recoverable on gift aid donations is recognised when the income is recognised.

Income from offerings and gifts is included as income when these are receivable, except as follows:

When donors specify that donations and grants given to the charity must be used in future accounting periods, the income is deferred until those periods.

When donors specify that donations and grants, including capital grants, are for particular restricted purposes, which do not amount to pre-conditions regarding entitlement, this income is included in incoming resources of restricted funds when receivable.

Legacy gifts are recognised on a case by case basis following the grant of probate when the administrator/executor for the estate has communicated in writing both the amount and the settlement date. Funds raised by events are accounted for gross of expenses. Rental income from letting of church properties is recognised when the rental is due.

1.4 Expenditure

All expenditure is included on an accruals basis and is recognised where there is a legal or constructive obligation to pay for expenditure. All costs have been directly attributed to one of the functional categories within expenditure on the Statement of Financial Activities. The charity is not registered for VAT and accordingly expenditure is shown gross of irrecoverable VAT.

1.5 Grants

Grants and donations are accounted for when paid over, or when awarded, if that award creates a binding obligation on the Trustees. Government grants in respect of the Coronavirus Job Retention Scheme are accounted for on receipt.

18

GORSLEY BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2020

1.6 Fixed Assets

Fixed assets, including freehold land and buildings, are included in the financial statements at cost, less depreciation provided using the straight line method. Amounts are capitalised where they exceed £1,000. The original cost of furniture and equipment, donated to the charity prior to 31st December 1997, is not available. The Trustees consider that the value of these assets is negligible Depreciation rates, excluding freehold land (which is not depreciated), consistently applied are: Building, bungalows, Manse and Hillview 40 years straight line Play Park Equipment 10 years straight line Bespoke Fittings 5 years straight line Furniture and equipment 3 years straight line

1.7 Leasing

Rentals payable under operating leases are charged against income on straight line basis over the lease term.

1.8 Stock

Stock is valued at the lower of cost and net realisable value.

1.9 Pensions

The charity makes contributions to a multi-employer defined contribution scheme on behalf of a current senior employee. The charity also makes contributions for the benefit of employees to a NEST Pensions auto enrolment scheme.

1.10 Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

1.11 Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

1.12 Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

1.13 Creditors and Provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

1.14 Going concern

The trustees have reviewed the ongoing future of the charity and consider that there are plans in place to continue the charity's operation. Having considered the effects of Covid-19, there are no other material uncertainties that may cast significant doubt on the charity's ability to continue as a going concern.

1.15 Provisions

Provisions are set up only where it is probable that a present obligation exists as a result of an event prior to the balance sheet date and that a payment will be required in settlement that can be estimated reliably. Where material provisions are calculated on a discounted basis.

19

GORSLEY BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2020

2. Donations and legacies
Offerings and gifts
Income tax recoverable
Legacies and funeral donations
Prior year comparatives
Offerings and gifts
Income tax recoverable
Legacies and funeral donations
3. Church activities
Fellowship
Youth work
Children
Local Mission income
Orchard Coffee House
Miscellaneous
Prior year comparatives
Fellowship
Youth work
Children
Local Mission income
Miscellaneous		 Unrestricted
Restricted
2020
funds
funds
Total
£
£
£
221,148
76,589
297,737
39,773
2,628
42,401
-
-
-
260,921
79,217
340,138
Unrestricted
Restricted
2019
funds
funds
Total
£
£
£
207,068
127,010
334,078
40,924
22,226
63,150
2,000
-
2,000
249,992
149,236
399,228
Unrestricted
Restricted
2020
funds
funds
Total
£
£
£
369
-
369
1,105
-
1,105
681
-
681
1,735
-
1,735
10,096
-
10,096
507
200
707
14,493
200
14,693
Unrestricted
Restricted
2019
funds
funds
Total
£
£
£
10,618
-
10,618
11,820
-
11,820
2,215
-
2,215
8,360
-
8,360
630
1,945
2,575
33,643
1,945
35,588

4. Other trading activities

Unrestricted funds
Rents received.:
Other properties
Bungalows
Use of premises
Electricity charges		 2020
2019
Total
Total
£
£
9,290
17,738
25,828
23,401
800
2,182
1,495
1,206
37,413
44,527

20

GORSLEY BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2020

4. contd - Other Income
Government Grants
Corona Virus Job Retention Scheme + Covid SSP Rebate
Proceeds of sale of Kempley Chapel
(Kempley Chapel was a historic asset without a
carrying net book value in Fixed Assets)
5. Cost of raising funds
Site development
Insurance
Council tax
Water rates
Electricity and oil
Maintenance and repairs
Depreciation
Bank charges		 Unrestricted
Restricted
2020
2019
funds
funds
Total
Total
£
£
£
£
1,897
-
1,897
-
6,339
103,661
110,000
-
8,236
103,661
111,897
-
Unrestricted
Restricted
2020
funds
funds
Total
£
£
£
-
6,252
6,252
1,800
-
1,800
426
-
426
1,456
-
1,456
1,096
-
1,096
6,411
-
6,411
5,011
-
5,011
90
-
90
16,290
6,252
22,542
Prior year comparatives
Site development
Insurance
Council tax
Water rates
Electricity and oil
Maintenance and repairs
Depreciation
Bank charges		 Unrestricted
Restricted
2019
funds
funds
Total
£
£
£
-
3,456
3,456
1,405
-
1,405
-
-
-
1,452
-
1,452
596
-
596
18,223
-
18,223
4,998
-
4,998
79
-
79
26,753
3,456
30,209

21

GORSLEY BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2020

6. Church Activities
a) Work and ministry of the church
Staff costs
Global Mission
Fellowship
Youth work
Children
Local Mission
Orchard Coffee House
Administration
Depreciation
Marketing
Governance (Note 8)
Compliance costs
Miscellaneous
b) Operational costs
Insurance
Electricity and gas
Oil
Water
Equipment replacement and repairs
Building and site maintenance
Hygiene
Kempley Chapel
Kitchen supplies
Total		 Unrestricted
Restricted
2020
funds
funds
Total
£
£
£
138,882
-
138,882
24,790
-
24,790
2,506
569
3,075
1,480
-
1,480
3,247
-
3,247
3,690
250
3,940
4,583
-
4,583
8,654
-
8,654
22,863
3,531
26,394
3,115
-
3,115
8,061
-
8,061
2,548
2,548
14
14
224,433
4,350
228,783
Unrestricted
Restricted
2020
funds
funds
Total
£
£
£
5,635
-
5,635
5,658
-
5,658
3,507
-
3,507
673
-
673
5,472
5,472
12,061
-
12,061
3,105
-
3,105
529
529
545
-
545
37,185
-
37,185
261,618
4,350
265,968

22

GORSLEY BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2020

6. Church Activities - Prior year comparatives
a) Work and ministry of the church
Staff costs
Global Mission
Fellowship
Youth work
Children
Local Mission
Administration
Depreciation
Marketing
Governance (Note 8)
Compliance costs
Miscellaneous
b) Operational costs
Insurance
Electricity and gas
Oil
Water
Equipment replacement and repairs
Building and site maintenance
Hygiene
Kempley Chapel
Kitchen supplies
Total		 Unrestricted
Restricted
2019
funds
funds
Total
£
£
£
115,471
-
115,471
24,525
-
24,525
13,948
1,447
15,395
13,606
208
13,814
4,645
-
4,645
7,821
275
8,096
5,416
-
5,416
25,602
-
25,602
2,303
-
2,303
3,063
-
3,063
3,801
-
3,801
893
-
893
221,094
1,930
223,024
Unrestricted
Restricted
2019
funds
funds
Total
£
£
£
5,693
-
5,693
7,137
-
7,137
6,188
-
6,188
861
-
861
4,132
-
4,132
10,610
-
10,610
2,232
-
2,232
2,100
-
2,100
1,443
-
1,443
40,396
-
40,396
261,490
1,930
263,420

Special Collections during the year amounting to £685 (2019: £1,061) were paid over to the nominated beneficiaries on whose behalf they had been collected. The amount of £ nil (2019: £650) is included in liabilities in respect of 2020 Special Collections not yet paid over as at 31 December 2020.

23

GORSLEY BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2020

7. Global Mission
Amy Little - Internship Redeemer Church Winchester
Baptist Missionary Society
Home Mission (HEBA)
Open Doors
Operation Mobilisation
Peace and Hope Trust
Samaritan's Purse
Scripture Union
Sindangan / Pikiumpungan Church Philippines
Smiles Foundation
Smiles Foundation - Luke Wathen
South Uist & Benbecula Free Church
TEAR Fund
TIC+ (Teens in Crisis)
Vennture
WEC International
Winchester CU
8. Governance costs
Unrestricted funds
Independent examiner's fees:
- for independent examination
- for other services
Professional fees		 2020
2019
£
£
500
-
4,960
4,905
2,400
2,800
2,000
2,200
800
500
4,960
4,905
1,000
-
500
-
2,000
4,100
1,000
-
800
600
-
500
1,000
1,500
1,370
952
1,500
900
-
163
-
500
24,790
24,525
2020
2019
£
£
1,500
1,980
-
6,561
1,083
8,061
3,063

24

GORSLEY BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2020

9. Employees

Number of employees

The average number of full and part time staff employed during the year was:

All were employed to further the work and ministry of the church
Estimate number of full time equivalent staff
Employment costs
Wages and salaries
Social Security costs
Other pension costs		 2020
2019
No.
No.
10.0
8.0
7.0
5.0
2020
2019
£
£
132,952
101,915
4,824
3,745
5,357
4,713
143,133
110,373

No employee earned £60,000 or more (2019 - nil) in the year.

The key management personnel of the charity comprise the trustees, the Minister, the youth Pastor and Children's Pastors. The total employee benefits of the key management personnel of the charity were £85,646 (2019 - £85,032)

10. Tangible fixed assets

Tangible fixed assets
Cost
At 1 January 2020
Reclassified from In course of construction
Additions
Disposals
At 31 December 2020
Depreciation
At 1 January 2020
Charge for the year
Eliminated on disposals
At 31 December 2020
Net book values
At 31 December 2020
Net book values
At 31 December 2019		 Land and
Play Park
Bespoke
Furniture and
Buildings
Equipment
Fittings
Equipment
Total
£
£
£
£
£
980,575
-
-
221,220
1,201,795
152,677
-
-
-
152,677
178,682
58,782
12,909
29,266
279,639
-
-
-
-
-
1,311,934
58,782
12,909
250,486
1,634,111
457,752
-
-
214,063
671,815
21,724
982
431
8,268
31,405
-
-
-
-
-
479,476
982
431
222,331
703,220
832,458
57,800
12,478
28,155
930,891
675,500
-
-
7,157
682,657

At 1 January 2020 there was an asset in course of construction with an opening cost and NBV of £152,677. The asset was completed and brought into use in October 2020, and the cost has been reclassified to Land and Buildings above.

25

GORSLEY BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2020

11. Debtors
Other debtors
Prepayments and accrued income
12. Stock
Orchard Coffee House - Ingredients and Items for resale
13. (a) Creditors: amounts falling due within one year
Other Creditors
Accruals and deferred income
BU Pension Deficit Liabilty
Note 21		 2020
2019
£
£
8,114
7,722
7,040
6,218
15,154
13,940
2020
2019
£
£
944
-
944
-
2020
2019
£
£
3,265
1,449
9,997
24,864
3,119
3,075
16,381
29,388

Accruals and deferred income includes the amount of £6,459 in respect of advance ticket sales for Joseph 2020, the income from which has not been recognised in these accounts. This production has been put back from 2020 as a consequence of Covid-19. Tickets remain valid for when the performances actually take place in 2021.

(b) Creditors: amounts falling due after more than one year
BU Pension Deficit Liabilty
Note 21		 2020
2019
£
£
18,072
31,203

26

GORSLEY BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2020

14. Movement in Funds
Current year
Restricted funds
Development fund
WASPS
European Workers Fellowship
Foodbank
Specific Gifts
Unrestricted funds
General funds
Designated Funds
Previous year
Restricted funds
Development fund
WASPS
European Workers Fellowship
Specific Gifts
Unrestricted funds
General funds
Designated Funds		 At
At
1-Jan
Income
Expenditure
Transfers
31-Dec
2020
2020
£
£
£
£
£
183,090
179,778
(9,780)
12,500
365,588
2,997
-
(368)
-
2,629
160
-
-
(134)
26
-
3,300
(454)
-
2,846
-
-
-
-
-
186,247
183,078
(10,602)
12,366
371,089
722,211
285,916
(249,822)
(12,066)
746,239
139,532
36,424
(28,086)
(300)
147,570
861,743
322,340
(277,908)
(12,366)
893,809
1,047,990
505,418
(288,510)
-
1,264,898
At
At
1-Jan
Income
Expenditure
Transfers
31-Dec
2019
2019
£
£
£
£
£
10,486
150,498
(3,456)
25,562
183,090
3,969
-
(972)
-
2,997
435
-
(275)
-
160
-
683
(683)
-
-
14,890
151,181
(5,386)
25,562
186,247
718,796
267,473
(240,404)
(23,654)
722,211
125,827
63,452
(47,839)
(1,908)
139,532
844,623
330,925
(288,243)
(25,562)
861,743
859,513
482,106
(293,629)
-
1,047,990

27

GORSLEY BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2020

14. Movement in Funds (continued)

Purposes of restricted funds

Development Fund

The church has established a Coffee Shop, Children's Play Park and Orchard for the community (note 10). Nominated gifts in respect of the Children's Play Park amount to £10,361 (2019: £4,145).

Foodbank

The Covid-19 pandemic is causing financial pressure on members and friends of Gorsley Baptist Church and the local community, and a Fund has been established to provide food or food vouchers where they can help alleviate those pressures.

Widowed and Single People

The group was started as an opportunity for people on their own to meet socially. The funds are used to cover the costs of meetings.

European Workers Fellowship

Volunteers continue to engage socially with European workers on an ad hoc basis to help their English conversation skills. In 2018, £1,000 was donated by HSBC Voluntary Partnership Scheme to support the project and placed in this restricted fund.

Specific gifts

In previous years gifts were given (2019: £683) with the wish that they were used in support of specific ministries of the church (2020: £ nil).

Purposes of designated funds

Housing Fund

The housing fund is a designated fund for rental income and maintenance costs in respect of the bungalows, Suncrest and the Old Manse. The balance on this fund at 31 December 2020 was £144,673 (2019: £126,045)

Repairs & Maintenance Fund

The fund has been allocated during the year towards the cost of 6 new Velux windows installed in the Hall area. The balance on this fund at 31 December 2020 was £ nil (2019: £10,000).

Church Members Groups

These funds report on the income, expenditure and balances relating to several member organised groups each of which hold small money balances to support their activities. The balance on these funds at 31 December 2020 was £2,662 (2019: £2,958).

Legacy Activity Funds

From 1 January 2019, budgetary controls in respect of income and expenditure replaced several small designated funds as a means of day to day financial control. Legacy designated funds are being run down rather than closed and transferred to general fund. The balance on the remaining fund at 31 December 2020 was £243 (2019 (2): £529).

15. Analysis of net assets between funds

Year ended 31 December 2020
Fund balances at 31 December 2020 as
represented by:
Tangible fixed assets
Current assets
Current liabilities
Long Term Liabilities		 Unrestricted
Restricted
funds
funds
Total
£
£
£
531,698
399,193
930,891
396,564
(28,104)
368,460
(16,381)
-
(16,381)
(18,072)
-
(18,072)
893,809
371,089
1,264,898

28

GORSLEY BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2020

15. Analysis of net assets between funds (continued)

Year ended 31 December 2019
Fund balances at 31 December 2019 as
represented by:
Tangible fixed assets
Current assets
Current liabilities
Long Term Liabilities		 Unrestricted
Restricted
funds
funds
Total
£
£
£
529,980
152,677
682,657
374,344
51,580
425,924
(11,378)
(18,010)
(29,388)
(31,203)
-
(31,203)
861,743
186,247
1,047,990

16. Transfers between funds

At the Church Members' Meeting held on 25 November 2020 it was decided to transfer the surplus on General Fund for the period 1 January 2020 to 31 December 2020 to the Development Fund. This amounted to £12,500 (see note 14).

The European Workers Fellowship Restricted Fund transferred £134 to General Fund in respect of church Youth and Local Mission.

17. Related party disclosures

Management Trustee
David Taylor-Black		 2020
2019
Salary
Employers NI
Pension
Total
Total
£
£
£
£
£
32,890
3,332
3,903
40,125
39,848

The approved constitution of the charity contains the legal authority in its clause 23 upon which this remuneration is paid.

Other than disclosed above, no trustee received any payment during the year. There were no trustee expenses paid or waived.

Expenses accrued for and owed to the management trustee or to the senior manager amounted to £ nil (2019 - £106).

Missionary grants (note 7) were paid to Amy Little £500 (2019 - £500 to Amy Little (Winchester CU)). No amounts were owed to them at 31 December 2020 (2019 - £ nil).

Gorsley Community Shop CIC - see details on Page 4.

Aggregate donations received form the charity's trustees and their related parties amounted to £75,749 (2019 - £80,670).

18. Obligations under operating leases

At 31 December 2020 the charity had annual commitments under non-cancellable operating leases as follows:

Expiry date
Within 1 year
Between 2-5 years		 2020
2019
£
£
1,027
955
2,488
1,877

29

GORSLEY BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2020

19. Comparative Statement of Financial Activities
Income from
Donations and Legacies
Church Activities
Other trading activities
Investments
Other income: profit on sale
Total income
Expenditure on
Raising funds
Church activities
Total expenditure
Transfers between funds
Net income/(expenditure)
Total funds at 1 January
Total funds at 31 December		 Unrestricted
Restricted
Total Funds
Funds
Funds
2019
£
£
£
249,992
149,236
399,228
33,643
1,945
35,588
44,527
-
44,527
2,763
-
2,763
-
-
-
330,925
151,181
482,106
(26,753)
(3,456)
(30,209)
(261,490)
(1,930)
(263,420)
(288,243)
(5,386)
(293,629)
(25,562)
25,562
-
17,120
171,357
188,477
844,623
14,890
859,513
861,743
186,247
1,047,990

20. Capital Commitments

At the year end, the charity had contracted capital commitments of £ nil (2019: £94,000).

30

GORSLEY BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2020

21. FRS 102 Pensions Disclosure

Background to the disclosure

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

For any month, each participating employer in the Scheme pays contributions as set out in the Schedule of Contributions in force at that time.

The Scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. This is because it is not possible to attribute the Scheme's assets and liabilities to specific employers and means that contributions are accounted for as if the Scheme were a defined contribution scheme. The pension costs charged to the SoFA in the year are contributions payable towards benefits and expenses accrued in that year, plus any impact of deficiency contributions (see below).

The Minister of Gorsley Baptist Church is a member of the Scheme.

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 Legal and General Life Assurance Society Limited. 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 in the event that 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 plc. The further 4% contribution rate is reduced to 3% for Employer contributions made to the Segregated DC Arrangement.

Benefits in respect of service prior to 1 January 2012 are provided through the Defined Benefit (DB) Plan within the Scheme. The main benefits for pre-2012 service were a defined benefit 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. 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.

Actuarial valuation as at 31 December 2019

A formal valuation of the Defined Benefit (DB) Plan was performed at 31 December 2019 by a professionally qualified Actuary using the Projected Unit Method. The market value of the DB Plan assets at the valuation date was £298 million.

The valuation of the DB Plan revealed a deficit of assets compared with the value of liabilities of £18 million (equivalent to a past service funding level of 94%). The Church and the other employers supporting the DB Plan are collectively responsible for funding this deficit.

The key assumptions underlying the valuation were as follows:

Type of financial assumption % pa
RPI price inflation assumption 3.20
CPI price inflation assumption 2.70
Minimum Pensionable Income increases
(CPI plus 0.75% pa) 3.20
Assumed investment returns
- Pre-retirement 2.95
- Post retirement 1.70
Deferred pension increases
- Pre April 2009 3.20
- Post April 2009 2.50
Pension increases
- Main Scheme pension 2.70

• Post-retirement mortality in accordance with 80% of the S3NFA and S3NMA tables, with allowance for future improvements in mortality rates from 2013 in line with the CMI 2019 core projections, with a long term annual rate of improvement of 1.75% for males and 1.5% for females, with the core smoothing parameter and with additional initial mortality improvement factor A=0.5%.

31

GORSLEY BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2020

21. FRS 102 Pensions Disclosure (continued)

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 dated 30 September 2020, deficiency contributions are payable until 30 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. However, the Trustee and the Council agreed a 50% reduction for all deficiency contributions payable between 1 July 2020 and 31 December 2020.

Movement in Balance Sheet Liability

Section 28.11A of FRS102 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)
Balance Sheet liability at year start
Minus deficiency contributions paid
Interest cost (recognised in SoFA)
Remaining change to balance sheet liability*
(recognised in SoFA)
Balance Sheet liability at year end		 31 Dec 2020
31 Dec 2019
31 Dec 2018
£
£
£
34,278
36,683
64,684
(2,724)
(3,553)
(3,452)
627
838
1,385
(10,990)
310
(25,934)
21,191
34,278
36,683

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 Dec 2020 31 Dec 2019 31 Dec 2018
Discount rate 1.2% 1.9% 2.4%
Future increases to Minimum
Pensionable Income 3.3% 3.3% 3.3%

32

GORSLEY BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2020

22. Reconciliation of net movement in funds to net cash inflow from operating activities

Statement of Financial Activities: Net movement in funds
Investment income (Interest Received)
Investment income (Sale of Fixed Asset)
Depreciation
(Decrease)/Increase in creditors: current liabilities
(Decrease)/increase in creditors: non-current liabilities
Decrease / (increase) in debtors
(Increase) / decrease in stock
Net cash (outflow)/inflow from operating activities
23. Analysis of changes in cash during the year
Cash at bank and in hand
Cash at bank and in hand		 2020
£
216,908
(1,277)
(110,000)
31,405
(13,007)
(13,131)
(1,214)
(944)
108,740
2020
2019
£
£
352,362
411,984		 2019
£
188,477
(2,763)
-
30,600
20,240
(2,766)
4,397
-
238,185
Change
£
(59,622)
2019
2018
£
£
411,984
323,713		 Change
£
88,271

33