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2022-09-30-accounts

Charity number: 1131202

CHATSWORTH BAPTIST CHURCH

Report and unaudited financial statements

For the year ended 30 September 2022

CHATSWORTH BAPTIST CHURCH

Financial statements for the year ended 30 September 2022

Contents Pages
Legal and administrative information 1
Minister's report 2
Report of the Deacons 3 - 5
Independent examiner’s report 6
Statement of financial activities 7
Balance sheet 8
Statement of Cash Flows 9
Notes to the financial statements 10 - 22

CHATSWORTH BAPTIST CHURCH Reference and administrative details

Status

Chatsworth Baptist Church (the "Church") was established in 1878 as an unincorporated association with its own Statement of belief and Church Rules. The Church registered with the Charity Commission on 19th August 2009, charity number 1131202, having adopted a new constitution on 5th July 2009 (the constitution was amended in 2021 to allow for meetings using electronic technology as well as in person). The Church continues to work in association with the Baptist Union of Great Britain.

Trustees (referred to as the "Deacons" hereafter)

Mr S Alghali Mr B Baya Mr I Bhoorasingh Mrs K Dike-Oduah (resigned 31 December 2022) Ms J Kasule Mr P King Mrs O Lawuyi Rev R Marzetti Mr T McClymont Ms O D Odeli (appointed 1 March 2022) Ms I R Olorunnisomo (appointed 1 March 2022) Mrs P Pitter Ms J Richards (resigned 31 December 2022) Mrs K Spence Mr W Sylvah

Operation address

Chatsworth Way West Norwood London SE27 9HN

Independent examiner

Jacob Cavenagh & Skeet 5 Robin Hood Lane Sutton Surrey SM1 2SW

Key Management Personnel

Mr C Rose (Youth and Children’s Worker) is considered key management personnel in addition to the Deacons.

1

CHATSWORTH BAPTIST CHURCH Minister's re ort for the ear ended 30 Se tember 2022 We continue lo meet each week in the Church lo provide limes of worship and reflection.. and we meet in people's homes and online during the week too. Meeting together has been made more challenging in recent months due to our heating system failing. bul moving lo one of our smaller halls has brought the congregation together and is fostering better fellowship. The ehurch recently called our youth worker. Chris Rose. lo the position of Minister and we had a service of recognition led by our local Regional Minister. We continue lo encourage another chur¢h member as they study for ministry loo, at Spurgeon's College. Whilst we pursue new healing. wiring and other impiovemenls lo our building. we have still hosted various ¢ommunity groups, a long term danee school and as a local election voting venue. The nursery, Sowing & Growing, who lease part of our building. continue lo be very busy. In addition, we've welcomed a health clinic seeking to cater lo our African and Caribbean community.. Fashion Show raising funds for community work in Nigeria., a Jubilee Iljnch for elders, a coffee morning in support of Macmillan Cancer Research,. as well as an Inlemational seTvKe and meal celebrating our different culluie5. We've donated our Harvest offering lo the local Foodbank. walked and shared with other local Wesl Norwood churches at Easter, and provided bags ol food for homeless people supported by The Robe5 Project. In the rneanlime, we've taken funerals for both Members and people in the community.. baplised both young and old mernbers." and provided pastoral care. visiling people in their homes and in hospital. Richard Marzetti Minister

CHATSWORTH BAPTIST CHURCH

Report of the Deacons for the year ended 30 September 2022

The Deacons present their report and the financial statements of Chatsworth Baptist Church for the year ended 30 September 2022, which have been prepared in accordance with the Charities Act 2011, the Charities Statement of Recommended Practice (Charities SORP (FRS 102)) and Financial Reporting Standard 102 (FRS 102).

Structure, Governance and Management

The Church's activities are supervised and managed by the Minister and Deacons, who are the trustees for charity law purposes. Deacons are chosen from among Church members by an election process laid down in the constitution. Induction training is held for all Deacons and other training courses are undertaken as necessary.

During this period the Church employed the Senior Pastor, an Administrative Assistant and a Youth and Children’s Worker. Various part-time staff worked on caretaking duties and in various groups.

The key management personnel of the Church as listed on page 1 are in charge of directing, controlling, running and operating the Church on a day to day basis. All Deacons give of their time freely and no Deacon received any remuneration in the year. Details of Deacons’ expenses and related party transactions are disclosed in Note 19 to the financial statements. The pay of the minister and other senior staff is reviewed annually taking account of recommendations made by the Baptist Union of Great Britain.

Objectives and Activities

The mission of Chatsworth Baptist Church is “To know, love and serve Christ in the community.” Its charitable purposes are set out in the constitution and include the advancement of the Christian religion and education.

A wide range of activities are undertaken in pursuance of these objectives. More details of activities are provided in the Minister's Report on page 2.

Financial review

During this year the Church returned to normal activities following the disruption of the Coronavirus pandemic. Its two main sources of income – gifts from members and rental income – recovered during the year as more activities resumed. The Church continued to operate as a going concern throughout the financial year.

The Church continues to rely on large gifts from a small number of church members. There can be no assurance that, given the current economic conditions, these large gifts will recur or that giving from other Church members will be maintained at its current level.

Work on the Youth café project was completed during the year. However, in the later part of the financial year, the main Church boilers failed and were deemed to be beyond repair. It also became apparent that many of the mechanical and electrical systems of the Church required complete renewal, since they had not been renewed since the building was constructed over 60 years ago. This is a very large project which will place considerable strain on the finances of the Church for many years. However, following a successful Gift Day, the Church has received gifts and pledges which should be sufficient to fund the majority of the required work. At the time of writing this report, initial work (including removal of asbestos) has been completed and a process to award a contract for the required works is about to be concluded.

Reserves policy

The Church seeks to retain reserves in the General Fund equal to approximately three months’ expenditure. The policy is to increase these reserves over time with a target of one year’s expenditure as well as to increase the balance of the Building Fund to cover planned and unexpected expenditure.

The General Fund reserves stood at a surplus of £62,152 at 30 September 2022 (2021: £217). The Church intends to increase reserves as and when large gifts are received.

The Deacons are confident that the Church can continue to operate as a going concern, despite the effect of the major building project on our finances. This confidence is based on previous experience and on projections taking into account the likely costs to be incurred and the gifts and pledges received.

3

CHATSWORTH BAPTIST CHURCH

Report of the Deacons for the year ended 30 September 2022

Buildings

We have a prominent site in West Norwood and a large suite of buildings there and at our two manses. Maintenance of these buildings, together with the cost of heating, lighting and other services, is a significant part of the church budget.

Our long term aim is to create a sustainable building which can serve the needs of the Church and the surrounding community for many years to come. Achievement of this aim depends on the availability of finance. The project to renew our mechanical and electrical systems is an important part of the building strategy.

A Buildings Group continues to operate and is working on the future strategy for all our buildings, as well as on dealing with the many minor issues which come up all the time.

Public benefit

The Church's activities are considered regularly in the light of the guidance published by the Charity Commission on public benefit. The Deacons have regard to this guidance in exercising their powers and duties. Some examples of the public benefits flowing from the pursuit of the Church's aims and objectives are: the provision of regular services of public worship, providing pastoral care to those with whom the Church has contact, and providing facilities for children's, senior citizens' and other community activities.

Risk review

The Deacons review the risks of the operations of the Church regularly and take appropriate action where possible to mitigate those risks. The key risks which have been identified and key actions which have been taken are shown in the table below.

taken are shown in the table below.
Key risk Mitigating action
The Church is dependent on giving from members,
in particular on regular large gifts from a small
number of members.		 Regular teaching on the importance of Christian
giving; diversification of sources of income to include
more rental income from buildings.
The Church works with children and vulnerable
adults, leading to risks of inadequate safeguarding
practices and possible abuse.		 Employment of trained staff, adoption and regular
renewal of Safeguarding Policy, training of key staff
and volunteers and review at each meeting of the
Deacons
The Church has buildings which are constantly in
need of maintenance and renewal.		 Long term programme of building work with a view
to creating a sustainable building.
The Church is dependent on key staff such as the
Minister and the Youth and Children’s Worker.		 The Deacons seek to follow best practice in
employment of staff as recommended by the Baptist
Union of Great Britain.
The Church is vulnerable to external pressures,
such as changes in legislation which may be
inconsistent with its aims or which may affect its
financial viability.		 Membership of key bodies such as the Baptist Union
of Great Britain and the London Baptist Association
which are able to influence legislation and guidelines
at a national and local level.

Investment policy

The Church has no investments. Any surplus cash is invested in bank deposits or deposits with the London Baptist Property Board.

4

CHATSWORTH BAPTIST CHURCH ort of the Deacons for the ear ended 30 Se tember 2022 Deacons. respons•bililies In relation to the financlal statements The Deacons are responsible for preparing the Annual Repjrt and the financial statements in a¢¢ordance with applicable law and regulations. Charity law requires the Deacons to prepare financial slatemenls for ea¢h financial year. Under that law the Deacons have elected to prepare the financial statements In accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable lawl. Under charity law the rnanagemenl committee musl not approve the financial slalemenls unless they are satisfied that they give a true and fair view of the slate of affairs of the charity and of the financial activities of the ¢harity for that period. In prepanng these financial stslemenls. the Deacons are reqLbired to.. select Suitable accounting policies and apply them consislenlly.. make judgements and estimates Ihal afe reasonable and prudent., slate whether applicable UK Accounbng Standards and slalements ol practice have been followed, subject lo any departures disclosed and explained in the financial slalements., and prepare the financial statements on the going ¢on¢ern basis unless It Is inappropriate to presume that the Charity will continue in operation., The Deacons are responsible for keeping adequate accounting ￿ordS that are sufficient to show and explain the charity'$ transactions and disclose with reasonable accufacy al any lime the finan¢ial position of the charity and enable them lo ensure that the financial slalemenls comply with the Charities A¢1 2011. They are also responsible for safeguarding the assets of the eharity and hence for taking reasonable steps lor prevention and detection of fraud and other irregularities. Approved by the Deacons on and signed on their behalf by.. Church Secretary

CHATSWORTH BAPTIST CHURCH Independent Examiner's Report to the Deacons of Chatsworth Ba tist Church I report on the financial stslements of Chatsworth Baptist Church for the year ended 30 September 2021 which comprise the Slatemenl of Financial Activib"es, the Balance Sheet and related notes. Respective responsibilities of trustees and examiner The charity's trustees are responsible for the preparation of the accounts The charity's Injslees consider that an audit Is not required for this year undei seelion 144121 of the Charities Act 2011 Ilhe 2011 Acll and that an independent examination 1$ needed The charity's gross income exceeds £250.000 and l am qualified to undertake the examination by being a qualified member of the 1nstr.tule of Chartered A¢¢ounlanls in England and Wales 11 is my respon51bility to.. examine the accounts under sect￿n 145 of the 2011 Act". to follow the procedures laid down In the general Directsons given by the Charity Commission under section 14515llbl of the 2011 A¢1. and to Stale whether particular matters have come lo my attenlion. 8asls of independent examinerfs report My examination was carried out in accordance with the general Directions given by the Charity Commission An examination includes a review of the a¢counling records kept by the charity and a comparison ol the accounts presented with those records. 11 also Includes Consideration of any unusual items or disclosure5 in the accounts. and seeking explanations from you as truslees Concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion Is given as lo whether the aeeounls present a 'lrve and fair vwi. and the report is limited lo those matters sel out in the slalemenl below. Independent examlnerfs statement In connection with my examination. no matter has come to my attentson.. which gives me reasonable cause lo bel*ve Ihal in any malenal respect the requirements.. to keep a¢¢ounling records in accordance with Section 130 of the 2011 Act", and to prepare accounts which aecord with the accounting ￿OrdS and comply with the accounting requirements of the 2011 Act have not been mel". or 121 lo which. in my opinion, attention should be drawn in order to enable a proper understanding of the a¢¢ounls to be reached. Paul Newtors FCA Jacob Cavenagh & Skeel 5 Robin Hood Lane Sutton Surrey SM1 2SW Date". 13 2023

CHATSWORTH BAPTIST CHURCH

Statement of financial activities for the year ended 30 September 2022

Unrestricted Restricted Unrestricted Restricted
Notes Funds Funds 2022 Funds Funds 2021
£ £ £ £ £ £
Income from:
Donations and legacies 2 146,470 158,525 304,995 167,652 33,815 201,467
Other trading activities 3 63,509 - 63,509 58,994 - 58,994
Investments 4 66 - 66 3
 - 3
Charitable activities 5 159 - 159
-		 -
CJRS Grant 418 - 418 11,195
 - 11,195
Total income 210,622 158,525 369,147 237,844 33,815 271,659
Expenditure on:
Charitable activities 6 211,986 - 211,986 196,250 5,651 201,901
Total resources expended 211,986 - 211,986 196,250 5,651 201,901
Net income/(expenditure) for the year (1,364) 158,525 157,161 41,594 28,164 69,758
Gross transfers between funds 32,737 (32,737) -
 - - -
Net movement in funds 31,373 125,788 157,161 41,594 28,164 69,758
Reconciliation of Funds
Total funds brought forward 2,923,121 31,092 2,954,213 2,881,527 2,928 2,884,455
Total funds carried forward 2,954,494 156,880 3,111,374 2,923,121 31,092 2,954,213

7

CHATSWORTH BAPTIST CHURCH Balance sheet at 30 Se tember 2022 Notes 2022 2021 Flxed assets Tangible assets 2.892.342 2.852.703 Currnnt assets Debtors Cash at bank and in hand 13 28.647 193,563 23,835 100,149 222.210 123,984 Credltors: amounts falling due within one year 14 (3.1781 13,5161 Ngt Current a88ot8 219.032 120,468 Provlslons for Ilabllltles and charygs 20 {18,958) Tota l aseets less currenl Ila bllltles 3.111.374 2,954,213 Fund• Reslricled fijnds Unrestricted fvjnds 15 16 156,880 2.954,494 31,092 2,923.121 Total funds carTled forward 17 3.111,374 2,954,213 Approved by the Deacons on l)Vlol and signed on their behalf. P Klng Church Secretary

CHATSWORTH BAPTIST CHURCH

Statement of cash flows for the year ended 30 September 2022

Net cash provided by operating activities
(see below)
Cash flows from investing activities
Interest received
Payments on fixed asset additions
Net cash (used in) investing activities
Net cash inflow
Cash and cash equivalents at 1 October 2021
Cash and cash equivalents at 30 September
2022
Cash flows from operating activities
Net income for the year
Interest included in investing activities
Depreciation
Defined benefit employer contributions paid
Movement in defined benefit employer deficit
provision
(Increase)/decrease in debtors
(Decrease)/increase in creditors
Net cash provided by operating activities		 £
£
£
£
158,154
89,222
66
3
(64,806)
(5,143)
(64,740)
(5,140)
93,414
84,082
100,149
16,067
193,563
100,149
157,161
69,758
(66)
(3)
25,167
26,403
(3,113)
(3,225)
(15,845)
(11,197)
(4,812)
7,408
(338)
78
158,154
89,222
2022
2021

9

CHATSWORTH BAPTIST CHURCH Notes to the financial statements for the year ended 30 September 2022

1 Accounting policies

Chatsworth Baptist Church is an unincorporated charity registered in England and Wales. The operation address is Chatsworth Way, West Norwood, London SE27 9HN.

a) Basis of accounting

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”), “Accounting and Reporting by Charities” the Statement of Recommended Practice for charities applying FRS 102, the Charities Act 2011 and UK Generally Accepted Accounting Practice as it applies from 1 January 2015. The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared on the historical cost convention, modified to include the revaluation of freehold properties and to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.

b) Going concern

At the time of approving the financial statements, the Deacons have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Deacons continue to adopt the going concern basis of accounting in preparing the financial statements.

c) Income

Voluntary income and donations (including legacies) are accounted for once the charity has entitlement to the income, it is probable the income will be received and the amount of income receivable can be reliably measured. Where material assets are donated to the company for its use, these are capitalised at the estimated market value at the date of the gift and included under income.

Job Retention Scheme government grant income

JRS grant income is recognised in the period to which the underlying furloughed staff costs relate.

d) Expenditure

Expenditure is accrued as soon as a liability is considered probable, discounted to present value for longer term liabilities. Charitable expenditure includes all support costs in respect of the company’s activities.

This comprises expenditure on compliance with statutory legal requirements and is included in charitable activities.

e) Fund structure

The funds held by the Church are either:

10

CHATSWORTH BAPTIST CHURCH Notes to the financial statements for the year ended 30 September 2022 (continued)

1 Accounting policies (continued)

f) Tangible fixed assets and depreciation

Tangible fixed assets are included in the balance sheet at cost or at market value at the date of the gift.

Depreciation is provided on all tangible fixed assets at rates calculated to write off the full cost or valuation less estimated residual value of each asset over its estimated useful life. The principal rates in use are:

Freehold buildings 2% on cost Flat roofs 5% on cost Furniture, fixtures and fittings 10% on cost Office equipment 25% on cost

The deacons consider that the properties have a residual value that renders any depreciation immaterial and accordingly no depreciation has been charged in these accounts.

The Church building and two residential properties (valued for insurance purposes at a combined £4.35m) and the Church site are under the custodian trusteeship of the London Baptist Property Board and the church is the beneficial owner.

g) Debtors

Other debtors are included at the settlement amount due. Prepayments are valued at the amount prepaid.

h) Cash and cash equivalents

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

i) Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation arising 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 recognised at their settlement amount. Concessionary loans are included at historic cost.

j) Financial instruments

The charity only has financial assets and 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.

k) Hire purchase and lease transactions

Assets acquired under hire purchase agreements and finance leases are capitalised in the balance sheet and are depreciated in accordance with the company's normal policy. The outstanding liabilities under such agreements less interest not yet due are included in creditors and are also disclosed on the basis of when the liabilities are due within one year, between two and five years and after five years. Interest on such agreements is charged to the profit and loss account over the term of each agreement and represents a constant proportion of the balance of capital repayments outstanding.

l) Pension costs

The church pays contributions to the Baptist Ministers Pension Trust Limited which is a final salary defined benefit scheme. The scheme is a multi-employer scheme and it is not possible to identify the assets and liabilities of the scheme which are attributable to the church. The scheme is therefore accounted for as a defined contribution scheme.

11

CHATSWORTH BAPTIST CHURCH

Notes to the financial statements for the year ended 30 September 2022 (continued)

2 Donations and legacies

Offerings
Other donations
Envelopes
Loose cash
Income tax recoverable
Total
3 Other trading activities
Rent receivable
Fundraising events
Total
4 Income from investments
Interest receivable
Total
5 Income from charitable activities
Youth and children's contributions
Small groups and events
Total		 Unrestricted
Funds
£
78,933
33,749
1,756
7,567
24,465
146,470
Unrestricted
Funds
£
61,415
2,094
63,509
Unrestricted
Funds
£
66
66
Unrestricted
Funds
£
159
-
159		 Restricted
Funds
£
350
158,175
-
-
-
158,525
Restricted
Funds
£
-
-
-
Restricted
Funds
£
-
-
Restricted
Funds
£
-
-
-		 2022
2021
£
£
79,283
82,902
191,924
70,932
1,756
2,730
7,567
3,774
24,465
41,129
304,995
201,467
2022
2021
£
£
61,415
58,994
2,094
-
63,509
58,994
2022
2021
£
£
66
3
66
3
2022
2021
£
£
159
-
-
-
159
-

12

CHATSWORTH BAPTIST CHURCH

Notes to the financial statements for the year ended 30 September 2022 (continued)

6 Expenditure on charitable activities

Activities
Governance
undertaken
costs
directly
(see note 8)
£
£
General fund
190,013
3,180
Building fund
-
-
Total Charitable Activities
190,013
3,180
7 Grants payable
Paid to individuals
Missionaries
Grant payable to institutions
Pioneers UK
World church baptist missionary society
World church home mission fund
Total (see note 6)
8 Governance costs
Direct costs
Independent examination fees (including VAT)		 Grant
funding of
activities
(see note 7)
£
18,793
-
18,793		 2022
2021
£
£
211,986
196,250
-
5,651
211,986
201,901
2022
2021
£
£
10,793
5,399
-
5,394
4,000
2,000
4,000
2,000
18,793
14,793
2022
2021
£
3,180
3,000

13

CHATSWORTH BAPTIST CHURCH Notes to the financial statements for the year ended 30 September 2022 (continued)

9 Employee information

Employee information
2022 2021
£ £
Staff costs
Wages and salaries 97,438 94,106
Social security costs 2,480 2,312
Defined benefit employer pension contributions (see note 20) 3,266 3,188
Movement in defined benefit employer deficit provision (see note 20) (15,845) (11,197)
Defined contribution employer contributions (see note 20) 8,315 8,179
95,654 96,588
The number employees on an average head count basis during the year was as follows:
2022 2021
Number Number
Full time 3 3
Part time 4 4
7 7
There were no employees with emoluments above £60,000.

Key Management Personnel (including the Deacons) received remuneration of £59,111 (2021: £57,340) during the year.

10 Net income

This is stated after charging:

Staff costs
Independent Examination Fee
Depreciation of owned assets		 2022
£
95,654
3,180
25,167		 2021
£
96,588
3,000
26,403

11 Taxation

The Church is exempt from tax on its charitable activities.

14

CHATSWORTH BAPTIST CHURCH

Notes to the financial statements for the year ended 30 September 2022 (continued)

12 Tangible fixed assets

Cost:
At 1 October 2021
Additions
Disposals
At 30 September 2022
Depreciation:
At 1 October 2021
Provision for the year
Adjustments for disposals
At 30 September 2022
Net book value:
At 30 September 2022
At 30 September 2021		 Freehold
Freehold
property
improvements
£
£
2,734,394
830,663
-
58,153
-
-
2,734,394
888,816
601,349
124,750
-
22,048
-
-
601,349
146,798
2,133,045
742,018
2,133,045
705,913		 Office
equipment
£
79,371
-
-
79,371
76,364
922
-
77,286
2,085
3,007		 Furniture
& Fittings
Total
£
£
107,257
3,751,685
6,653
64,806
-
-
113,910
3,816,491
96,519
898,982
2,197
25,167
-
-
98,716
924,149
15,194
2,892,342
10,738
2,852,703

The trustees have reviewed the remaining useful economic life and residual value of the freehold properties, with the result that no depreciation has been charged during the year on the unrestricted freehold property and improvements.

13 Debtors

Other debtors
Prepaid expenses and accrued income		 2022
2021
£
£
16,784
13,663
11,863
10,172
28,647
23,835

14 Creditors: amounts falling due within one year

Accruals and deferred income 2022
2021
£
£
3,178
3,516
3,178
3,516

15

CHATSWORTH BAPTIST CHURCH Notes to the financial statements for the year ended 30 September 2022 (continued)

15 Restricted funds

2022:

Pastoral fund
Wates Foundation fund
Building fund
Youth Café
2021:
Pastoral fund
Wates Foundation fund
Building fund
Youth Café		 Balance at
1 Oct 2021
£
163
1,294
4,893
24,742
31,092
Balance at
1 Oct 2020
£
163
1,294
1,471
-
2,928		 Income
£
-
-
150,530
7,995
158,525
Income
£
-
-
9,073
24,742
33,815		 Expenditure
£
-
-
-
-
-
Expenditure
£
-
-
(5,651)
-
(5,651)		 Balance at
Transfers
30 Sep 2022
£
£
-
163
-
1,294
-
155,423
(32,737)
-
(32,737)
156,880
Balance at
Transfers
30 Sep 2021
£
£
-
163
-
1,294
-
4,893
-
24,742
-
31,092

2021:

16

CHATSWORTH BAPTIST CHURCH

Notes to the financial statements for the year ended 30 September 2022 (continued)

16 Unrestricted funds

2022:

General fund
Designated Funds
General fixed asset fund
Building fund
Accompanied Groups
2021:
General fund
Designated Funds
General fixed asset fund
Building fund
Accompanied Groups		 Balance at
1 Oct 2021
£
217
2,852,703
70,201
-
2,923,121
Balance at
1 Oct 2020
£
(32,390)
2,873,963
42,714
(2,760)
2,881,527		 Income
£
208,419
-
-
2,203
210,622
Income
£
237,844
-
-
-
237,844		 Expenditure
£
(180,599)
(25,167)
-
(6,220)
(211,986)
Expenditure
£
(169,847)
(26,403)
-
-
(196,250)		 Balance at
Transfers
30 Sep 2022
£
£
34,115
62,152
64,806
2,892,342
(70,201)
-
4,017
-
32,737
2,954,494
Balance at
Transfers
30 Sep 2021
£
£
(35,390)
217
5,143
2,852,703
27,487
70,201
2,760
-
-
2,923,121

2021:

17

CHATSWORTH BAPTIST CHURCH

Notes to the financial statements for the year ended 30 September 2022 (continued)

17 Analysis of net assets among funds

2022:

Fixed
assets
Cash
£
£
Fund balances at 30 September 2022 are represented by:
General fund
-
54,760
Designated Funds
General fixed asset fund
2,892,342
-
Building fund
-
-
Accompanied Groups
-
-
Restricted Funds
Pastoral fund
-
-
Wates Foundation fund
-
-
Building fund
-
138,803
Youth Café
-
-
2,892,342
193,563
2021:
Fixed
assets
Cash
£
£
Fund balances at 30 September 2021 are represented by:
General fund
-
25,743
Designated Funds
General fixed asset fund
2,852,703
-
Building fund
-
70,201
Accompanied Groups
-
-
Restricted Funds
Pastoral fund
-
-
Wates Foundation fund
-
-
Building fund
-
4,205
Youth Café
-
-
2,852,703
100,149		 Other
net
assets
£
16,989
-
-
-
-
-
8,480
-
25,469
Other
net
assets
£
673
-
-
-
-
-
688
-
1,361		 Balance
between
funds
Total
£
£
(9,597)
62,152
-
2,892,342
-
-
-
-
163
163
1,294
1,294
8,140
155,423
-
-
-
3,111,374
Balance
between
funds
Total
£
£
(26,199)
217
-
2,852,703
-
70,201
-
-
163
163
1,294
1,294
-
4,893
24,742
24,742
-
2,954,213

18

CHATSWORTH BAPTIST CHURCH Notes to the financial statements for the year ended 30 September 2022 (continued)

18 Leasing commitments

Operating leases

At 30 September 2022, the outstanding commitments for non-cancellable operating leases fall due as follows:

Within one year
Within two to five years
Total lease payments in the year		 2022
2021
£
£
1,503
1,503
3,759
5,262
5,262
6,765
751
751

19 Related party transactions

Expenses totalling £1,354 (2021: £759) were reimbursed to 1 (2021: 2) Deacons.

The following Deacons were associated with the following recipients of grants:

2022 2021
£ £
Deacon Association
P King Pioneers UK 5,394 5,394

The following Deacons received remuneration in the year, as permitted by section 23 of the Constitution:

Deacon
Occupation
Rev R Marzetti
Pastor		 2022
2021
£
£
31,862
30,967
31,862
30,967

During the year, total restricted income of £4,560 was received from the Deacons towards the various restricted funds.

19

CHATSWORTH BAPTIST CHURCH Notes to the financial statements for the year ended 30 September 2022 (continued)

20 Pension commitments and other post-retirement benefits

Defined benefit scheme

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 pensions 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 is eligible to join 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.

20

CHATSWORTH BAPTIST CHURCH Notes to the financial statements for the year ended 30 September 2022 (continued)

20 Pension commitments and other post-retirement benefits (continued)

The key assumptions underlying the valuation were as follows:

Type of 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%.

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. Following the 2019 valuation a Recovery Plan was signed in September 2020 under which deficiency contributions are payable until June 2026. These contributions were broadly based on each employer's membership at 31 December 2014 and increase annually in line with increases to Minimum Pensionable Income as defined in the Rules.

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

Section 28.11A of FRS 102 requires agreed deficit recovery payments to be recognised as a liability. The movement in the provision is set out in the table below.

Balance sheet liability at the start of the year
Minus deficiency contributions paid
Interest cost (recognised in SoFA)
Remaining change to balance sheet liability* (recognised in SoFA)
Balance sheet liability at the end of the year		 2022
2021
£
£
18,958
33,380
(3,113)
(3,225)
191
83
(16,036)
(11,280)
-
18,958

21

CHATSWORTH BAPTIST CHURCH

Notes to the financial statements for the year ended 30 September 2022 (continued)

20 Pension commitments and other post-retirement benefits (continued)

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:

payments:
2022 2021 2020
Discount rate 6.5% 1.1% 0.4%
Future increases to Minimum Pensionable Income 0.0% 3.9% 3.1%

22