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← Gorsley Baptist Church

2023-12-31-accounts

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GORSLEY BAPTIST CHURCH ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2023

Charity Number 1131159

GORSLEY BAPTIST CHURCH

REPORT OF THE TRUSTEES

YEAR ENDED 31 DECEMBER 2023

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CONTENTS Pages
Annual Report of the Trustees 1
Reference and Administrative Details 1
Structure, Governance and Management 2
Objectives and Activities 2-3
Meetings - adults and families 3
Meetings - youth 3-4
Meetings - children 4
Public Benefit, Achievements and Performance 5
Facilities and other resources 6
Financial Review and Reserves Policy 7
Reserves Policy 7
General Fund 7-8
Restricted Funds 8
Designated Funds 8
Global Mission budget 8
Statement of Trustees’ responsibilities in relation to the Financial Statements 9
Independent examiner’s report to the trustees of Gorsley Baptist Church 10
Statement of Financial Activities 11
Balance Sheet 12
Cash Flow Statement 13
Notes forming part of the financial statements 14-28

GORSLEY BAPTIST CHURCH

REPORT OF THE TRUSTEES

YEAR ENDED 31 DECEMBER 2023

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Annual Report of the Trustees

The Trustees present their report and the financial statements for the charity for the year ended 31 December 2023. The financial statements have been prepared in accordance with the accounting policies set out on pages 14 to 15 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 Alison Caligari (from September 2023) Diana Mattos (from September 2023) Andrew Gardner Steve Potter Anthony Howard Cathryn Robinson Ted Kania Dave Thomas (until September 2023) Jonathan Lawrence Nat Thomas (until April 2023)

Robert Little holds Title to charity property

Senior management and administrative posts:

Minister: Vacancy Youth Pastor: Vacancy Children’s Pastor: Chantal Poole Leah Goulding Operations Manager: OCH Manager Ioana Jones Church Secretary: Anthony Howard Church Treasurer: Steve Potter Lloyds Bank plc Bankers: 19 Eastgate Street Gloucester GL1 1NU

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GORSLEY BAPTIST CHURCH

REPORT OF THE TRUSTEES

YEAR ENDED 31 DECEMBER 2023

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Independent Examiner: Joshua Kingston BSc. ACA Burton Sweet Limited Chartered Accountants The Clock Tower 5 Farleigh Court Old Weston Road Flax Bourton Bristol BS48 1UR

Structure, Governance and Management

Gorsley Baptist Church (also known as Gorsley Chapel; subsequently described simply as ‘the church’) is a charitable unincorporated association governed by a constitution adopted on 17 June 2009, as amended both on 30 November 2011 and 29 September 2021. The most recent amendments were made in response to pandemic restrictions and set out the arrangements necessary for the maintenance of online and hybrid business meetings of both members and trustees. These permit the trustees to exercise their judgement over what form (face to face, online or hybrid) of meeting is appropriate.

Gorsley Baptist Church is a member of Baptists Together (previously known as ‘The Baptist Union of Great Britain’) and is also affiliated to the Evangelical Alliance.

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

Leadership of the church is the responsibility of the trustees, comprising the minister (when in post), 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 (typically the youth pastor and children’s pastor), and the operations manager, collectively referred to as 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.

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 in consultation with the Charity Commission. The church rules govern some aspects of 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.

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GORSLEY BAPTIST CHURCH

REPORT OF THE TRUSTEES

YEAR ENDED 31 DECEMBER 2023

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The church is concerned to reach out to the community in many different ways. The leadership strive to arrange services in such a way that members of the community are encouraged to join in worship, praise and prayer.

Meetings - adults and families

Engagement with church ministries has stabilised and begun to recover slowly following the effects of the Covid-19 pandemic and the fallout from the departure of the previous minister in early 2022. Membership of the church stood at 188 as of the end of 2023 and the total number of members and friends routinely in contact with the church in some way is of the order of 250 per month.

The Sunday morning service at 10.30am is an opportunity for the whole church family to join together. This begins by worshipping together; the children and youth then leave for their separate groups whilst further worship continues with scriptural teaching and ministry. Many services are live streamed via YouTube so that those who are unable to come to church in person for health or other reasons can still feel part of the communal worship and teaching. The streamed services are also available later on demand so that those who were serving in other activities of the church or could not otherwise attend or view live can catch-up at their convenience.

On one Sunday evening each month an evening service takes place led by the youth and younger members of the church.

Prayer meetings are held on Wednesday evenings at the Church premises and on Sunday evenings via an online video conferencing application.

There are six established ‘Life Groups’ which are small group meetings where Christians meet in a variety of 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 mutual support through shared Bible study and prayer. Only a minority of regular members of the congregation are currently part of a life group and the intention is to rebuild this important ministry.

Meetings - youth

Gorsley Youth exists to engage with young people in school years 7 – 13. We do this by putting on weekly programs on a Sunday and a monthly Friday Night Youth group. It is our heart that the young people we work with would find Gorsley Youth a safe place to be and to develop as teenagers and into young adulthood, while at the same time learning about and meeting Jesus. Gorsley Youth currently engages with approximately 25 young people throughout any given week.

For school years 7-13, a Sunday morning group runs every week and is designed for our churched youth to attend and to access Old and New Testament Bible teaching, worship and prayer delivered in a dynamic and engaging way. A youth worship band has been developed and provides worship twice a month which has been so valuable across the church ministries.

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GORSLEY BAPTIST CHURCH

REPORT OF THE TRUSTEES

YEAR ENDED 31 DECEMBER 2023

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For school years 11-13 a Sunday evening group runs every week and delivers Bible topics and apologetics teaching answering important questions about the Christian faith and life. There are 18 young people attending this group. Some of these young people also attend a Christian leadership program run by Counties.

A Friday evening once a month for school years 7-13 is focused on having fellowship and is a fun and safe place to be. We have a vision for 2023 to return to seeing un-churched young people attending this group having an opportunity to hear about Jesus. In 2022, the young people have invited their unchurched friends.

Meetings - children

The church’s children’s ministry aims to enable children to know Jesus and to deepen their relationship and friendship with him through teaching the gospel and through prayer. We also outreach to the community children through school assembles, TLG coaching, a weekly toddler group and a weekly afterschool club. Our mission into school has been enhanced from the introduction of a coaching and mentoring program by TLG and we have 2 coaches going into local schools.

On average 20 children attending on a Sunday morning but have around 30 registered as some come only occasionally. On Sunday morning we run 3 groups separated according to school year: a manned creche for 0–3-year-olds, a reception-year 2 group and a year 3-6 group. We have had a stable number of approximately 20 volunteers helping to run children’s ministry. All groups have been following a Bible curriculum by Urban Saints Energize, Click and Scripture Union which includes Bible activities indoor and outdoor each week that include a Bible story, crafts, games and singing with actions, and we provide a snack time too.

As outreach to our community, we run a Thursday morning “Acorn Toddler Group” to provide a program of play, craft and teaching about God through Old and New Testament stories and singing. Acorn continues to be popular with around 40-50 children and babies attending each week. We also run a weekly afterschool club on a Friday called “Rooted.” It is well attended, and the children attend with their parent/s. We provide activities based on the Bible and the children’s interests such as sport, natural world, music, arts, and crafts. We have approximately 40 children attending every week. We run annual outreach events at Halloween called the ‘Light Party’ which engaged with around 30 children, and at Christmas and Easter we ran an Easter trail and a Christmas movie.

“Let’s Explore” is an event aimed at under 5s and their families which takes place around key moments in our Christian calendar. The aim of the event is to connect with families from our church and community and help under 5s explore Christian themes in a way that is accessible to them. We do this through sensory play, craft and creative activities and stories. In 2023 we explored the themes of harvest and Christmas, and we have sessions planned in 2024 to explore Easter and summer. Around 30 children attended the events representing approximately 15 families. The events take place on a Sunday afternoon to allow the whole family to attend and enjoy quality time together.

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GORSLEY BAPTIST CHURCH

REPORT OF THE TRUSTEES

YEAR ENDED 31 DECEMBER 2023

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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 offered several weekly activities to the local community. Several of these activities subsequently went into abeyance where either they proved incompatible with guidance, Covid-19 risk assessments proved impracticable, or both.

Since then the church has restarted and built up weekly activities with the local community and the residual effects of the pandemic are now all but passed. All the following are now functioning as before:

In addition, members of the church have continued to support TLG Early Intervention Coaching in Gorsley Goffs and John Masefield Comprehensive School, and this currently involves the support of three children through long term mentoring.

The church has continued to work with the local community in maintaining a community shop and Post Office Local facility within church premises. The Gorsley Community Shop and Post Office are run and managed by a separate Community Interest Company with up to 8 directors, a maximum of 5 being from the church’s membership and 3 being from the local community. As of 31 December 2023, there were 6 directors in place, 3 being from the Church and 3 from the local community. Following the expiry of the initial period of the lease by which the CIC occupies part of church premises, as at 31 December 2023 a new lease was being finalised.

The Orchard Coffee House continues to function successfully on church premises, as an extension of its existing ministries.

Footfall through the OCH has remained consistent with 2022 and a loyal, regular customer base has generated a healthy increase in revenue (see page 8).

The coffee house is managed by the OCH Manager supported by a full time and a part time deputy, and 6 other part time members of staff. The manager is also supported by a steering group made up of a subset of the trustees, including the church treasurer, and church members with catering expertise. The team is also enriched by a small team of volunteers who support this important ministry to the community. We continue to pray for more volunteers that share our vision to join the team.

The coffee house aims to be a community hub for the people in the nearby areas and share the love of Jesus while providing the best service at affordable prices. We serve a selection of hot and cold beverages, delicious cakes baked on site and light lunches, all on a sit in or takeaway basis.

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GORSLEY BAPTIST CHURCH

REPORT OF THE TRUSTEES

YEAR ENDED 31 DECEMBER 2023

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The coffee house is very popular with young families due to the outdoor playing facilities but also with others attracted by the local Post Office, free parking and fully accessible facilities. We continue to pray that God uses this ministry for His glory and the benefit of those around us.

Both the community shop and Post Office and the Orchard Coffee House developments were prompted by the findings of a community survey which suggested that the provision of these services would meet a well-defined community need. The two play parks (also a need identified by the community survey) are located in the field immediately adjoining, and owned by, the church.

As well as the playgrounds, the landscape plan encompasses a community orchard, involving footpaths, benches, and areas of planted wildflower meadow, with a grassed area set aside and laid out as 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. A public right of way borders one edge of the field, passing directly across the front of the community shop and coffee shop. Additional parking arrangements associated with these developments include bicycle parking facilities and car charging ports.

Facilities and other resources

The presence of the Orchard Coffee House described above, together with the associated playparks, football pitch and community orchard, have resulted in a presence throughout the week on church grounds of both local people and visitors, and a significant increase in the church's engagement with the local community. The facilities have proved particularly attractive to the parents and other carers of local schoolchildren, as well as cyclists, walkers and those who have preferred to shop locally.

The electric vehicle charging points in the car park are used regularly by local people and drivers passing though who have located the facility using online apps.

Maintenance of the facilities has continued through the year according to a schedule developed with the full-time maintenance person and covering all properties across the GBC estate. Following the extensive engineering assessment of the balcony additional steel sub-structure was installed in October 2023. As part of this refurbishment, the flooring was strengthened with additional joists installed. The technical desk was relocated, and the balcony was prepared ready for new seating when required.

A residential property owned by the church and immediately adjoining the main church complex, has been made available for use by a Ukrainian family.

Extensive work has been undertaken on the Manse including remedial internal damp-proofing and external render replacement, in anticipation of the appointment of a new Minister, possibly during 2024. A decision was taken to let the property on a short term let until it was required for a new Minister.

The cover provided under the Church’s insurance policies (all with Baptist Insurance) were reviewed before renewal.

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GORSLEY BAPTIST CHURCH

REPORT OF THE TRUSTEES

YEAR ENDED 31 DECEMBER 2023

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Financial Review and Reserves Policy

Regular financial reviews confirm that the church has sufficient financial resources to meet its contractual obligations as they fall due; and has in hand the costs of running the charitable activities of the church for a period of between three and 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 2023 on a going concern basis (note 1.14).

The financial performance of the charity is set out in the Statement of Financial Activities on page 11 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. There was an improvement during 2023 in the rate of interest received on the church’s bank balances. The trustees maintain interest-bearing deposit accounts for the church with the Baptist Union Corporation Ltd which offer a leading rate of return. Periodically the Treasurer reviews whether or not to vary the amounts on deposit there.

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.

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 £111,500 and £223,000 equal to between 3 and 6 months’ reported expenditure from general funds. At the year end the actual free reserves were £145,515 (2022: £182,153) which is within the target range.

General Fund

There was a retained deficit of £73,551 in the general fund for 2023 (2022: deficit £52,620). 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 decreased to £145,515 (2022: £182,153), excluding the net book value of fixed assets, £834,116 (2022: £871,029). The total balance on the general fund includes the net book value of fixed assets.

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 2023 the average weekly amount of cash collections plus donations direct to the charity’s bank account for the year was £2,325 (2022: £2,534).

The policy of the church is to budget 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. However, the budget agreed by members for

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GORSLEY BAPTIST CHURCH

REPORT OF THE TRUSTEES

YEAR ENDED 31 DECEMBER 2023

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2023 again anticipated a deficit for the year. During the year, members also agreed to commence work on two projects that were outside the agreed General Fund budget. These were the refurbishment of Hillview (see Designated Funds below), and essential safety and strengthening works to the balcony area in the church sanctuary. The cost of these balcony works absorbed in 2023 is £4,153 and an additional £5,896 is included in the capitalised expenditure reported below. The project was substantially complete by the end of the year, but some work (and associated costs) continued into 2024.

In 2023, capitalised expenditure on asset purchases made by the General Fund amounted to £18,399 (2022: £21,863) (see note 10).

The Orchard Coffee House ministry continues to develop. The average daily footfall has remained consistent at around 110 (2022: 110), peaking above 150 (2022: 130) daily. Sales of £147,872 (2022: £123,635) are included under Charitable Activities (note 3) and there was a net ministry surplus for the year of £9,387 (2022: deficit of £6,150). This ministry surplus does not include depreciation or unanalysed shared costs.

Restricted Funds

The church’s Foodbank Fund is in place to help relieve hardship among members and friends of the church and the Gorsley community. Donations to this fund in 2023 amounted to £370 (2022: £nil) and expenditure for the year is £1,277 (2022: £100) (see note 14).

In April 2023, an appeal was made for funds to establish a memorial (by way of a bench and planting in the field/community orchard) to our previous pastor Rev John Lewis who died in 2018. The ideas for the orchard and community space on the church field stem from his leadership of the vision for the purchasing of the field. Donations to this Fund in 2023 amounted to £635 and expenditure for the year is £181 (see note 14).

A Gift Day was also held in April 2023 to raise funds for the refurbishment and updating of the Creche. Donations to this Fund in 2023 amounted to £9,743. Work on this project has yet to commence, and there is no expenditure for the year (see note 14).

Designated Funds

The Housing Fund is a designated fund for rental income and maintenance costs in respect of the bungalows, Suncrest and the Old Manse (see note 14).

During 2023, part of the Fund was re-designated to the extensive refurbishment of Hillview. These costs came to £36,552.

Other than the above Fund, 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 chaired by a trustee or coopted person. In 2023 this activity provided support to the Baptist Missionary Society, The Peace and Hope Trust, The Smiles Foundation (Smiles) and the Baptist Home Mission. Grants were made to support young people from the church on a short-term mission trip with Smiles. It also supported (amongst others) Herefordshire Vennture, TIC+, Samaritan’s Purse, and Scripture Union (see note 7).

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GORSLEY BAPTIST CHURCH

REPORT OF THE TRUSTEES

YEAR ENDED 31 DECEMBER 2023

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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 xxx 2024 and signed on their behalf by:

ANTHONY HOWARD

Anthony C Howard Church Secretary

Date: 5 June 2024

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GORSLEY BAPTIST CHURCH

INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES

YEAR ENDED 31 DECEMBER 2023

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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 2023.

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.

JOSHUA KINGSTON

Date: 5 June 2024

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

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GORSLEY BAPTIST CHURCH

STATEMENT OF FINANCIAL ACTIVITIES

YEAR ENDED 31 DECEMBER 2023

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Note
Income from
Donations and Legacies
2
Church Activities
3
Other trading activities
4a
Investments
Other income
4b
Total income
Expenditure on
Raising funds
5
Church activities
6
Total expenditure
Net income/(expenditure)
Transfers between funds
14
Net movement in funds
Total funds at 1 January
14
Total funds at 31 December
14		 Unrestricted
Restricted
Total Funds
Total Funds
Funds
Funds
2023
2022
£
£
£
£
144,537
11,456
155,993
160,026
160,996
-
160,996
134,939
53,741
-
53,741
49,855
11,813
-
11,813
4,415
7,446
-
7,446
2,450
378,533
11,456
389,989
351,685
16,253
-
16,253
19,122
429,832
2,760
432,592
356,511
446,085
2,760
448,845
375,633
(67,552)
8,696
(58,856)
(23,948)
-
-
-
-
(67,552)
8,696
(58,856)
(23,948)
1,246,938
3,838
1,250,776
1,274,724
1,179,386
12,534
1,191,920
1,250,776

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 14 to 28 form part of these financial statements

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GORSLEY BAPTIST CHURCH

BALANCE SHEET

AS AT 31 DECEMBER 2023

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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
Funds
Unrestricted funds
15
Restricted funds
15		 £
14,499
2,382
364,762		 2023
£
834,116
363,753		 £
11,095
2,148
393,514		 2022
£
871,029
379,747
381,643
(17,890)		 406,757
(27,010)
(5,949)
1,191,920		 -
1,250,776
1,179,386
12,534		 1,246,938
3,838
1,191,920 1,250,776

The financial statements were approved by the trustees on 5 June 2024 and signed on their behalf by:

STEVEN POTTER

Steven J Potter Treasurer

The notes on pages 14 to 28 form part of these financial statements

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GORSLEY BAPTIST CHURCH

CASH FLOW STATEMENT

YEAR ENDED 31 DECEMBER 2023

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Note
Net cash inflow/(outflow) from operating activities
21
Non-operational cash flows:
Investing activities
Payments for tangible fixed assets
Investment income (Interest received)
Net cash inflow/(outflow) for the year
22
Cashflow Restrictions		 2023
£
(22,166)
(18,399)
11,813
(6,586)
(28,752)		 2022
£
28,536
(21,863)
4,415
(17,448)
11,088

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.

The notes on pages 14 to 28 form part of these financial statements

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GORSLEY BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2023

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1 Accounting Policies 1.1 Accounting convention The financial statements have been prepared in accordance with the historical cost convention (except for investments which have been included at fair value and in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued in October 2019 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2019. The accounts (financial statements) have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn. The charity is a public benefit entity within the meaning of FRS102. The financial statements have been prepared on a going concern basis. 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. The charity registered for VAT during 2022 and accordingly income is shown net of chargeable VAT where applicable.

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 registered for VAT during 2022 and accordingly expenditure is shown net of recoverable VAT where applicable.

14

GORSLEY BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2023

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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 and Local Authority grants are accounted for on receipt.

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, Old 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 Minister while in post. 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 again considered the residual impact 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.

15

GORSLEY BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2023

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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
Orchard Coffee House
Miscellaneous
4a. Other trading activities
Unrestricted funds
Rents received.:
Other properties
Bungalows
Use of premises
Electricity charges		 Unrestricted
Restricted
funds
funds
£
£
120,886
9,664
23,651
1,792
-
-		 2023
Total
£
130,550
25,443
-
155,993
2022
Total
£
133,438
26,288
300
160,026
2023
Total
£
1,497
4,943
295
5,807
147,872
582
160,996
2022
Total
£
896
1,304
213
5,112
123,635
3,779
134,939
2023
2022
Total
Total
£
£
13,650
10,888
32,980
34,335
1,503
375
5,608
4,257
144,537
11,456
Unrestricted
Restricted
funds
funds
£
£
131,647
1,791
26,063
225
300
-
158,010
2,016
Unrestricted
Restricted
funds
funds
£
£
1,497
-
4,943
-
295
-
5,807
-
147,872
-
582
-
160,996
-
Unrestricted
Restricted
funds
funds
£
£
896
-
1,304
-
213
-
5,077
35
123,635
-
3,779
-
134,904
35
53,741
49,855

16

GORSLEY BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2023

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4b. Other Income
Unrestricted funds
Herefordshire Council Grants - Homes for Ukraine
Gain on sale of assets		 2023
2022
Total
Total
£
£
6,650
2,450
796
-
7,446
2,450

5. Cost of raising funds

Insurance
Council tax
Water rates
Electricity and oil
Maintenance and repairs
Other Housing Admin Costs
Depreciation
Bank charges		 Unrestricted
Restricted
2023
funds
funds
Total
£
£
£
2,325
-
2,325
(1,717)
-
(1,717)
1,724
-
1,724
3,182
-
3,182
4,697
-
4,697
960
-
960
4,998
-
4,998
84
-
84
16,253
-
16,253
Prior year comparatives
Insurance
Council tax
Water rates
Electricity and oil
Maintenance and repairs
Depreciation
Bank charges		 Unrestricted
Restricted
2022
funds
funds
Total
£
£
£
1,989
-
1,989
2,815
-
2,815
1,545
-
1,545
1,655
522
2,177
4,830
684
5,514
4,998
-
4,998
84
-
84
17,916
1,206
19,122

17

GORSLEY BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2023

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6. Church Activities
a) Work and ministry of the church
Staff costs
Global Mission (note 7)
Fellowship
Youth work
Children
Local Mission
Orchard Coffee House
Administration
Depreciation
Marketing
Governance (Note 8)
Compliance
b) Operational costs
Insurance
Electricity and gas
Oil
Water
Equipment replacement and repairs
Building and site maintenance
Hygiene
Kitchen supplies
Other Miscellaneous
Total		 Unrestricted
Restricted
2023
funds
funds
Total
£
£
£
198,040
-
198,040
16,094
-
16,094
5,152
2,078
7,230
5,806
-
5,806
2,170
-
2,170
3,560
544
4,104
38,662
-
38,662
12,893
-
12,893
50,314
-
50,314
820
-
820
4,068
-
4,068
3,492
-
3,492
341,071
2,622
343,693
Unrestricted
Restricted
2023
funds
funds
Total
£
£
£
6,863
-
6,863
21,113
-
21,113
3,626
-
3,626
1,530
-
1,530
4,151
-
4,151
45,904
138
46,042
5,149
-
5,149
340
-
340
85
-
85
88,761
138
88,899
429,832
2,760
432,592

18

GORSLEY BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2023

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6. Church Activities - Prior year comparatives
a) Work and ministry of the church
Staff costs
Global Mission (note 7)
Fellowship
Youth work
Children
Local Mission
Orchard Coffee House
Administration
Depreciation
Marketing
Governance (Note 8)
Compliance
b) Operational costs
Insurance
Electricity and gas
Oil
Water
Equipment replacement and repairs
Building and site maintenance
Hygiene
Kitchen supplies
Total		 Unrestricted
Restricted
2022
funds
funds
Total
£
£
£
160,522
-
160,522
22,000
125
22,125
5,143
769
5,912
1,875
-
1,875
1,430
-
1,430
5,480
720
6,200
35,492
-
35,492
11,258
-
11,258
49,294
-
49,294
2,369
-
2,369
1,718
-
1,718
2,518
-
2,518
299,099
1,614
300,713
Unrestricted
Restricted
2022
funds
funds
Total
£
£
£
6,551
-
6,551
16,951
-
16,951
7,734
-
7,734
1,099
-
1,099
6,854
-
6,854
11,586
-
11,586
4,679
-
4,679
344
-
344
55,798
-
55,798
354,897
1,614
356,511

Special Collections during the year amounting to £ 1,247 (2022: £726) were paid over to the nominated beneficiaries on whose behalf they had been collected. The amount of £ 293 (2022: £285) is included in liabilities in respect of 2023 Special Collections not yet paid over as at 31 December 2023.

19

GORSLEY BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2023

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7. Global Mission
Unrestricted Funds
Baptist Missionary Society
Carolyn C-R de Souza
Dynamis Adventures
Home Mission (HEBA)
MAF
Open Doors
Operation Mobilisation
The Peace and Hope Trust
Rob Newton - Care for the Family internship
Samaritan's Purse
Scripture Union
Sindangan / Pikiumpungan Church Philippines
[The Smiles Foundation] - Grants made to GBC young people on short term mission
The Smiles Foundation - Luke Wathen
TIC+ (Teens in Crisis)
Herefordshire Vennture
Total Mission Action Group grants made
Short Term Mission Trip Expenses re Romania (Smiles)
Peace and Hope Trust
Total Global Mission Grants and Expenses
Restricted Funds
Baptist Missionary Society - Good Land Appeal (Harvest)		 2023
2022
£
£
3,100
4,400
-
500
-
1,000
1,750
2,500
-
500
-
1,000
-
1,000
3,100
4,400
-
800
500
1,000
200
300
-
1,000
2,250
1,300
1,135
800
1,350
1,000
1,350
500
14,735
22,000
763
-
596
-
16,094
22,000
2023
2022
£
£
-
125
-
125
8. Governance costs
Unrestricted funds
Independent examiner's fees:
- for independent examination
Professional fees		 2023
2022
£
£
1,914
1,718
2,154
-
4,068
1,718

20

GORSLEY BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2023

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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
Adjustment re BU Pension Deficit (see note 20)
Other staff costs		 2023
2022
No.
No.
15
14
8
8
2023
2022
£
£
177,023
161,993
6,662
5,180
3,120
3,876
5,949
(15,275)
5,286
4,748
198,040
160,522

No employee earned £60,000 or more (2022 - nil) in the year.

The key management personnel of the charity comprise the trustees, the Minister (not in post at 31 December 2023), and Children's Pastor. The total employee benefits of the key management personnel of the charity were £27,589 (2022 - £40,401).

10. Tangible fixed assets

Tangible fixed assets
Cost
At 1 January 2023
Additions
Disposals
At 31 December 2023
Depreciation
At 1 January 2023
Charge for the year
Eliminated on disposals
At 31 December 2023
Net book values
At 31 December 2023
Net book values
At 31 December 2022		 Land and
Play Park
Bespoke
Furniture and
Buildings
Equipment
Fittings
Equipment
Total
£
£
£
£
£
1,322,674
58,782
12,909
281,813
1,676,178
6,250
-
-
12,149
18,399
-
-
-
(2,410)
(2,410)
1,328,924
58,782
12,909
291,552
1,692,167
533,395
12,736
5,595
253,423
805,149
29,726
5,877
2,582
17,127
55,312
-
-
-
(2,410)
(2,410)
563,121
18,613
8,177
268,140
858,051
765,803
40,169
4,732
23,412
834,116
789,279
46,046
7,314
28,390
871,029

21

GORSLEY BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2023

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11. Debtors
Accounts Receivable
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
Accounts Payable
Other Creditors
Accruals and deferred income
HMRC VAT
b) Creditors: amounts falling due after more than one year
BU Pension Deficit Liability re Deferred Debt Arrangement
Note 20		 2023
2022
£
£
1,869
1,494
5,313
3,045
7,317
6,556
14,499
11,095
2023
2022
£
£
2,382
2,148
2,382
2,148
2023
2022
£
£
6,619
6,997
313
325
6,070
6,977
4,888
12,711
17,890
27,010
2023
2022
£
£
5,949
-

22

GORSLEY BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2023

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14. Movement in Funds
Current year
Restricted funds
WASPS
European Workers Fellowship
Foodbank
Specific Gifts
Creche Refurb
John Lewis Mem
Unrestricted funds
General funds
Designated Funds
Previous year
Restricted funds
WASPS
European Workers Fellowship
Foodbank
Specific Gifts
Unrestricted funds
General funds
Designated Funds		 At
At
1-Jan
Income
Expenditure
Transfers
31-Dec
2023
2023
£
£
£
£
£
1,457
-
(758)
-
699
26
-
-
-
26
2,355
370
(1,277)
-
1,448
-
708
(544)
-
164
-
9,743
-
-
9,743
-
635
(181)
-
454
3,838
11,456
(2,760)
-
12,534
1,053,182
316,903
(392,033)
1,579
979,631
193,756
61,630
(54,052)
(1,579)
199,755
1,246,938
378,533
(446,085)
-
1,179,386
1,250,776
389,989
(448,845)
-
1,191,920
At
At
1-Jan
Income
Expenditure
Transfers
31-Dec
2022
2022
£
£
£
£
£
2,126
-
(669)
-
1,457
26
-
-
-
26
2,455
-
(100)
-
2,355
-
2,051
(2,051)
-
-
4,607
2,051
(2,820)
-
3,838
1,105,802
298,013
(352,133)
1,500
1,053,182
164,315
51,621
(20,680)
(1,500)
193,756
1,270,117
349,634
(372,813)
-
1,246,938
1,274,724
351,685
(375,633)
-
1,250,776

23

GORSLEY BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2023

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14. Movement in Funds (continued)

Purposes of restricted funds

Creche Refurbishment

This Fund has been established to facilitate needed improvement work in the Creche area.

John Lewis Memorial

Donations were invited for the provision of a bench and other items in recognition of the vision and ideas of Rev John Lewis (a former pastor of the church) for the orchard and community space on the church field.

Foodbank

During the Covid-19 pandemic this Fund was established to provide food or food vouchers in cases of hardship in the local and church community.

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

During 2023 donations were received to enable a hardship grant for household equipment to be made within the community.

Purposes of designated funds

Housing

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 2023 was £196,553 (2022: £191,060).

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 2023 was £2,959 (2022: £2,453).

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 2023 was £243 (2022: £243).

15. Analysis of net assets between funds

Year ended 31 December 2023
Fund balances at 31 December 2023
as represented by:
Tangible fixed assets
Current assets
Current liabilities
Long Term Liabilities		 Unrestricted
Restricted
funds
funds
Total
£
£
£
834,116
-
834,116
369,109
12,534
381,643
(17,890)
-
(17,890)
(5,949)
-
(5,949)
1,179,386
12,534
1,191,920

24

GORSLEY BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2023

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15. Analysis of net assets between funds (continued)

Year ended 31 December 2022
Fund balances at 31 December 2022
as represented by:
Tangible fixed assets
Current assets
Current liabilities		 Unrestricted
Restricted
funds
funds
Total
£
£
£
871,029
-
871,029
402,919
3,838
406,757
(27,010)
-
(27,010)
1,246,938
3,838
1,250,776

16. Transfers between funds

There were no transfers between Restricted Funds and Unrestricted Funds during the year.

17. Related party disclosures

Related party disclosures
2023 2022
Salary Employers NI Pension Total Total
£ £ £ £ £
Management Trustee
Minister - left May 2022 - - - - 16,415

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 (2022 - £nil).

Missionary grants (note 7) were paid to Dan Lawrence £250 (2022 - £260), Matt Little £nil (2022 - £260). No amounts were owed to them at 31 December 2023 (2022 - £ nil).

Gorsley Community Shop CIC - see details on Page 5.

Aggregate donations received from the charity's trustees and their related parties amounted to £25,620 (2022 - £22,692).

18. Obligations under operating leases

At 31 December 2023 the charity had annual commitments under non-cancellable operating leases as follows:

2023 2022
Expiry date £ £
Within 1 year 1,737 1,737
Between 2-5 years 868 2,605

25

GORSLEY BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2023

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19. Comparative Statement of Financial Activities
Income from
Donations and Legacies
Church Activities
Other trading activities
Investments
Other income
Total income
Expenditure on
Raising funds
Church activities
Total expenditure
Net income/(expenditure)
Transfers between funds
Net movement in funds
Total funds at 1 January
Total funds at 31 December		 Unrestricted
Restricted
Total Funds
Funds
Funds
2022
£
£
£
158,010
2,016
160,026
134,904
35
134,939
49,855
-
49,855
4,415
-
4,415
2,450
-
2,450
349,634
2,051
351,685
17,916
1,206
19,122
354,897
1,614
356,511
372,813
2,820
375,633
(23,179)
(769)
(23,948)
-
-
-
(23,179)
(769)
(23,948)
1,270,117
4,607
1,274,724
1,246,938
3,838
1,250,776

26

GORSLEY BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2023

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20. 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).

From January 2012, pension provision is being made through the Defined Contribution (DC) Plan within the Scheme. In general, members pay 8% of their Pensionable Income and employers pay 6% of members’ Pensionable Income into individual pension accounts, which are operated and managed on behalf of the Pension Trustee by Broadstone Corporate Benefits 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.

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 Pension 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 were 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.

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

Cessation Event

A Cessation Event makes the Church liable for the proportion of the overall deficit of the Baptist Pension Scheme (assessed by reference to the cost of securing benefits by the purchase of annuities) applicable to its previous Ministers who were members of the Scheme. The Church is required to pay the ongoing deficiency contributions outlined above.

Consequent upon the resignation of the previous Minister from the Church effective May 2022, the Church entered a 'period of grace' (POG) such that the effect of a Cessation Event under Section 75 of the Pensions Act 1995 (Section 75) was initially to be deferred for a period of 3 years ending 9 May 2025.

The Pension Scheme Trustee retained the right to quantify and seek payment of the debt at any time should the POG lapse, or the POG expire.

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GORSLEY BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2023

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20. FRS 102 Pensions Disclosure (continued)

Deferred Debt Arrangement

The Baptist Union has confirmed its intention to Buy Out the Scheme liabilities, and under the legislation (known as Section 75) the Pension Scheme Trustee can no longer manage Cessation Events and the resulting pension debts by way of a POG.

The POG for Gorsley Baptist Church has been brought to an end by the Trustees entering into a Deferred Debt Arrangement (DDA) under the terms of The Occupational Pension Schemes (Employer Debt) Regulations 2005 with the Pension Scheme Trustee. There were no fees associated with setting up the DDA.

By the terms of the DDA, Gorsley Baptist Church can continue as a Participating Employer in the Scheme, paying Deficit Reduction Contributions, until such time as the remaining Participating Employers are discharged from their Scheme responsibilities to fund the Defined Benefit section of the Scheme.

At 31 December 2022, the Trustees considered that there was a contingent liability in respect of a potential debt arising from the lapsing or ending of the POG amounting to £5,650 (note 20 to the 2022 accounts). Since this was regarded as a contingent liability it was therefore not recognised within the accounts.

The DDA has crystallised the church's liability which is estimated to be £5,949 (note 9 and note 13(b)).

21. 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)
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		 2023
£
(58,856)
(11,813)
55,312
(9,120)
5,949
(3,404)
(234)
(22,166)		 2022
£
(23,948)
(4,415)
54,292
14,412
(13,782)
2,541
(564)
28,536

22. Analysis of changes in cash during the year

Cash at bank and in hand
Cash at bank and in hand		 2023
2022
Change
£
£
£
364,762
393,514
(28,752)
2022
2021
Change
£
£
£
393,514
382,426
11,088

28