## **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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**REPORT OF THE TRUSTEES**
## **YEAR ENDED 31 DECEMBER 2020**
## **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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**REPORT OF THE TRUSTEES**
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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:
- a) In reasonably close proximity to the community it serves;
- b) Demonstrably special to a local community and holds a particular local significance, for example because of its beauty, historic significance, recreational value (including as a playing field), tranquillity or richness of its wildlife; and
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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:
- On the proposed designation of the GBC big field, the trustees accepted that the proposed designation was in line with the church’s intentions for the development of that field under the recently approved Landscape Plan, and that all three NPPF criteria for that designation were met; in doing so the trustees also sought to reserve the option for limited development on that field in the future. This position was accepted.
- On the proposed designation of the GBC small field, the trustees objected to the proposal on the grounds that only two of the necessary NPPF criteria for designation (specifically a) and c) above) had been met, whilst also noting that the continuing operations of the church were dependent upon that field for car-parking. This objection was refused, with the planners noting that the continued use of that field for car-parking was not disallowed by the LGS designation.
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).
12
**GORSLEY BAPTIST CHURCH**
**REPORT OF THE TRUSTEES**
## **YEAR ENDED 31 DECEMBER 2020**
## 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:
- Select suitable accounting policies and then apply them consistently;
-
-
- Observe the methods and principles in the Charities SORP;
- Make judgments and accounting estimates that are reasonable and prudent;
- State whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
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|
* Comprises any change in agreed deficit recovery plan and change in assumptions between year-ends.
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