HAYWARDS HEATH BAPTIST CHURCH
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 DECEMBER 2020
CHARITY REGISTRATION No: 1131365
Page 1
HAYWARDS HEATH BAPTIST CHURCH
CONTENTS
Page 3 Legal and administrative information Page 4 Report of the trustees Page 8 Independent examiner's report on the accounts Page 9 Statement of financial activities Page 10 Balance sheet
Pages 11 to 22 Notes to the financial statements
Page 2
HAYWARDS HEATH BAPTIST CHURCH
LEGAL AND ADMINISTRATIVE INFORMATION
START OF THE FINANCIAL YEAR
END OF THE FINANCIAL YEAR
1 January 2020 31 December 2020
CUSTODIAN TRUSTEE CUSTODIAN TRUSTEE ADDRESS
The Baptist Union Corporation Limited
PO Box 44 129, Broadway, Didcot Oxfordshire OX11 8RT
CHURCH LEADERSHIP:
MINISTER OTHER TRUSTEES
C Norden
R Biersteker (resigned 10th September 2020) P Gilbert (resigned 15th July 2020))
L Goodchild (Secretary) (appointed 10th September 2020) P Jenkins (appointed 10th September 2020) B Ludlow F Mclachlan C Pearson (resigned 10th September 2020) A Rockett (Secretary) (resigned 1st October 2020) D Ruddock (Treasurer)(appointed 10th September 2020)) A Thompson L Viney
REGISTERED CHARITY Registration number 1131365 PURPOSE The church exists to advance the Christian faith according to the principles of the Baptist denomination and to serve the local community through its work and witness. It may also advance education and carry out other charitable purposes in the UK and other parts of the world.
ADDRESS Sussex Road Haywards Heath West Sussex RH16 4DZ
PRIMARY BANKER CAF Bank plc 25 Kings Hill Avenue West Malling Kent, ME19 4JQ
INDEPENDENT EXAMINER
Brian Jacobs ACA
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HAYWARDS HEATH BAPTIST CHURCH
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020
The Trustees present their report and the audited financial statements of the charity for the year ended 31 December 2020. The trustees have adopted the provisions of the Recommended Practice (SORP) “Accounting and Reporting by Charities” (FRS 102) in preparing Statement of the annual report and financial statements of the charity.
The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the charity’s governing document, the Charities Act 2011 and 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 published on 16 July 2014 (as amended by Update Bulletin 1 published on 2 February 2016).
Objectives and activities for the public benefit
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.
In fulfilling its purpose, the church will engage in a range of activities, either on its own or with others, that will vary from time to time, with activities being initiated, expanded or closed, as appropriate. These activities may include but are not restricted to:
-
regular public worship, prayer, bible study, preaching and teaching;
-
baptism, as defined in the Baptist Union's declaration of principle;
-
the communion of the Lord's supper on a regular basis;
-
evangelism and mission, locally, regionally, nationally and internationally;
-
the teaching, encouragement, welcome and inclusion of young people;
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nurture and growth of Christian disciples;
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education and training for Christian and community service;
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giving and encouraging pastoral care;
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supporting and encouraging charitable social action in the United Kingdom and abroad;
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encouraging relationships with and supporting baptists and other Christians.
The charity acknowledges its requirements to demonstrate clearly that it must have charitable purposes or 'aims' that are for the public benefit. Details of how the charity has achieved this are provided in the review of activities below.
The Trustees confirm that they have paid due regard to the Charity Commission guidance on public benefit before deciding what activities the charity should undertake.
Review of activities in 2020
2020, as for many churches in the UK, was a year of unprecedented change due the COVID-19 pandemic. Despite unexpected challenges and disruption, by God’s grace the church was able to support and encourage one another in the church family and the wider local community through challenging times. Throughout the year we have held onto the church text for the year from Romans 12:12 encouraging us to be “Joyful in hope, patient in affliction and faithful in prayer” selected in December 2019 that has been a prophetic message for a difficult year.
Haywards Heath Baptist Church started the year with a renewed focus on those new to the church family. We had over 40 people committing to and being trained on the Integrate initiative to ensure that the church family was welcoming and inclusive of everyone– no matter their background, age or how long they had been part of the church family.
A musical fund raiser for those effected by Australian bushfires was organised and held by the youth within the church.
(continued)
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HAYWARDS HEATH BAPTIST CHURCH
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)
Review of activities in 2019 (continued)
In March 2020, due to the national lockdown resulting to limit the spread of COVID-19 pandemic, the church building was closed for communal gatherings. However, despite this challenge the church was still open! Many of the gatherings moved online during this period and the church family was able to welcome new people from more distant locations from Glasgow to South Africa, as well as keeping in regular contact with people isolated by needing to shield for their own safety.
Weekly church meetings were hosted live online using the Zoom video conferencing and were regularly attended by over 100 households either online or, for those without internet access, by phone. Towards the end of 2020, our online meetings were able to be live transcribed for those in the community who are deaf or hard of hearing. The church family was able to support one another by continuing during a time of enforced distancing to see each other on a regular basis, worship and pray together. Including creative and inspiring virtual choirs.
Over the year the online weekly church prayer meeting and the mid-week homegroups has continued to grow and for many in the church family it has been a time of deepened faith.
During both national lockdowns, the church family was pleased to be able to offer Haywards Heath Foodbank the use of the main building to safely meet the needs of increasing number of people who relied on the Foodbank to help provide food during challenging times and to warehouse the huge volume of donations that were given by the local community.
Not all areas of church life were able to continue during 2020. It has been a difficult year for some parts of the church family - particularly for children and youth, who have sorely missed being able to meet up face-toface, and from the more senior people on the fringe of the church, who were unable to join groups such Options that aimed at providing a caring community for the elderly.
In the second half of 2020 there were a few short periods where communal gatherings were able to meet in person and the church was able to hold socially distanced communion services and a few in person youth group activities.
The church continues to respond to humanitarian disasters and appeals that are in line with its own charitable purposes, providing members the opportunity to express the love of Christ through their financial donations. The church also supports Baptist denominational mission and other individuals engaged in mission. During 2020, total grants of £17,828 were made to such causes.
Ministry
It has always been the primary focus of the church to preach the good news of Jesus Christ. This has continued Sunday by Sunday throughout the year, both in person and online, by our ministers and other gifted members of the church. In the summer the church held a well-attended online Alpha course which has allowed the gospel to be spread despite having to communicate differently. The excellent video course and format transitioned well to the online format and provided an environment so people seeking Jesus and exploring questions could do so from the security of their own homes.
For part of the year our second minister, whose focus is on family and community work, was placed on the UK Government furlough scheme. Unfortunately, during this period our ministry to young people has been hampered by our youth worker’s absence due to long-term sickness.
After a review of current activities, the church leaders and members have agreed to recruit an operations manager in order to better fulfil the vision of the church. The role was advertised and interviews were conducted, but the role was not filled.
(continued)
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HAYWARDS HEATH BAPTIST CHURCH
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)
Governance
The church is governed by its constitution.
The minister and deacons are the church trustees providing spiritual leadership, pastoral oversight and the administration of the church. All trustees are elected by the church meeting, requiring a minimum vote of two thirds of the members voting, to secure election. Deacons are eligible to serve two three-year terms, followed by a vacant year when they are not eligible for election.
The trustees meet twice each month, once specifically for prayer and once to conduct the business of the church. A typical business meeting agenda covers pastoral matters, ministry, finance, child and vulnerable adult protection, health and safety, premises and administrative issues.
No remuneration is paid to Trustees for their role as Trustees. The Minister is remunerated by an agreed Stipend.
Financial Review
The trustees maintain a register of financial and operational risks that are regularly reviewed to manage risks that the church is exposed to. The Trustees consider that the major risk facing the church is failure to reach new generation. They have recognised that this needs continued focus, planning and outreach in order to mitigate the potential impact.
Total income for the year was £225,828 (2019: £361,902). The church was also fortunate to receive donations this year of £170,524 (2019: £257,234).
Total expenditure for the year was £181,719 (2019: £255,292). This included a further £19,547 (2019: £50,834) of property and refurbishment costs in connection with the rebuild of the Sussex Road church which were incurred in the year.
Total funds at the balance sheet date were £1,754,096 (2019: £1,749,947). Of these £1,489,773 (2019: £1,476,582) were held as restricted funds. Within unrestricted funds were £199,011 (2019: £199,214) tied up in tangible fixed assets leaving £105,272 (2019: £74,151) of free reserves.
The church has been unable to meet since the Covid 19 Lockdown in March 2020. This has meant that weekly offerings usually made at services have not been collected, which has lead to a reduction in income. However regular donations through standing orders have continued almost unchanged and together with reduced expenditure resulting from the cessation of some activities, the trustees consider the charity to be a viable going concern.
The trustees have considered the level of reserves they wish to retain appropriate to the size of the church, its needs and financial commitments. The trustees' objective is to ensure there are sufficient resources for the church to meet its financial commitments in the event of a temporary shortfall in income or unexpected expenditure. Given the current commitments in respect of the redevelopment of the church building, the trustees consider it appropriate to hold free reserves at the current level. This will be reviewed in light of the prevailing financial circumstances.
(continued)
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HAYWARDS HEATH BAPTIST CHURCH REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020 Icontinuad) Fund Ral8lng Po15cy The fthurth teceNes donath)ns from the IxJngr8gati)n and ftntsrs thrDu£h offemgs, spe appeals and one off donatrjns. to the ltrriied natu ol Ihe fundrai9 actmtks undertaken. the ¢hurth does nol fOllY t7K)nrtor compliance 1th the Code of Fundrais•)g Pracfr£. The thurth does not consk1er that any of its ndralwng actMtEs ttjnstrtute Unreasonab intrUn on a petson's pr.vacy, unas0nJbIY por5tent appacheS or undue pre55ure to gwe and has not reGeNed any coryilaknts In respect of thi5 dumg the y8ar. Requests are onty nwde to those vtho are al?Y and support&tB of the church 3nd peopLg can unsubscrt)e at anyti). The thurth does not wSrk *ith any conyrercial partryatO or pless1Onal ftJndtsi8er5. Approved by the trustee5 on 8 June 2021 and sljned on thew beharf by. •• Lydla Goodchih Church S•aBlary Page 7
HAYWARDS HEATH BAPTIST CHURCH INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF HAYWARDS HEATH BAPTIST CHURCH I report to the trustees on my exarm8tion of the tharity for the yearended 31 Ckcentjer 2020 h are set out on pages g 10 22. R•sponBlbllltlés and b8s1s gl reFrfXt As the charitls trustees you are ¥espOnS) for the Prepa1 of the arAY&unis in a¢xtJn1antr %%ith the requireTrnts of the ChaiilEs Act 2011 nhe Arti I rvport in SpeCt of rry exarrin8th)n of the thaiitys arjntS canEd out under seclk¢n 145 of the Act and In L¥Ing out my exarm)atn I have lolbtd all the appli8b tecUons 9rven by the Charity ComrrissKTrn under Sect)n 14515Xb)of the ACL Indep•nd•nt èxamlnerfs 8tat•ment I have conyleled my exaninatKin. I confTh that no nter01 mtters have con to ny attentk)n in onnectrjn Ihe exarnnatknn gfvhg uSe to belEve thai kn any wAterfal rgspert.. 1 a¢0)untg reo)rds Mere not kept n re5peci of Ihe charfty as requwed by strct&Jn 130 of the ALt: or 2 the accounts do not accord 4th those lerds. or 3 th8 ac¢tsunls do not corrply wth the apPIable requ¥ennt5 W1mm9 th6 fomi and content of accounts set out in the Charits IAr£ounls and Reports) RegulalDns 2008 other Ihan any requtremenl that the accounts gNe a Iwe and faw 15 not a matl¢r ¢onsKJered as part of an Independent exaVrffbatn I have no concèms and have cowe arloss no other ffottets in ¢¢nnedh)n Vtth the exarrknatbn to whkh altonlkjn shoukl be dr8wi n thk5 rep% In ts0r to enabkn a proper understandkng ol the accounts lo be reached. Bbtsn Jacobs ACA. D81è.' li June 2021 Page 8
HAYWARDS HEATH BAPTIST CHURCH
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020
| Notes INCOME Donations, legacies and Grants 2a Income from charitable activities 2b Income from investments 2c Other income 2d TOTAL INCOME EXPENDITURE Charitable expenditure: Grants payable in furtherance of the charity's objects 3a Direct costs of activities in furtherance of the charity's objects 3b Support costs 3c Expenses for managing and administering the charity 3d TOTAL EXPENDITURE NET INCOME / EXPENDITURE Net transfer between funds 9 Net movement in funds Total funds brought forward TOTAL FUNDS CARRIED FORWARD |
Unrestricted Restricted Total Total funds funds 2020 2019 2020 2020 £ £ £ £ 136,085 88,712 224,797 356,560 1,003 - 1,003 5,262 28 - 28 80 - - - - |
|---|---|
| 137,116 88,712 225,828 361,902 |
|
| - 18,394 18,394 31,833 61,391 19,945 81,336 141,679 18,218 - 18,218 12,495 10,090 53,681 63,771 69,285 |
|
| 89,699 92,020 181,719 255,292 |
|
| 47,417 (3,308) 44,109 106,610 (16,499) 16,499 - - |
|
| 30,918 13,191 44,109 106,610 |
|
| 273,365 1,476,582 1,749,947 1,643,337 |
|
| 304,283 1,489,773 1,794,056 1,749,947 |
Movements on all reserves and all recognised gains and losses are shown above. All the charity's operations are classed as continuing.
The notes on pages 11 to 22 form part of these financial statements.
Page 9
HAYWARDS HEATH &4PTIST CHURCH BALANCE SHEET AS AT 31 DECEMBER 2020 31 Oecertier 2020 31 Decembèr 2019 Notes Flyed assets Tangible assets 1.858.784 1.911,932 Current assets Deblo Cash al bank and kn hand 11,014 4.538 60,676 52,098 Creditors.. anx)unts falling due thin one year 146.216) (60,612) NET CURRENT ASSETS 14.46Q (8.514J TOTAL ASSETS LESS CURRepff LIA3IUTIES 1,873,244 1.903,418 Creditors.. al)Unts f311in9 due h Trre than one year (79,188} (153,471) NET A8SET8 1.794,056 1,749,947 CAPITAL AND RESERVES Income funds: General funds Rested fvnds 304,283 1.489,773 273,365 1.476,582 1.794,056 1.749.947 Approved by the tnjstees on 8 June 2021 and siJned on therbehaff by. LydK3 Goodchik Church Secreiary The not8s on pages 11 to 22 fom) part of these thancwl statements. Page 10
HAYWARDS HEATH BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
1. ACCOUNTING POLICIES
General information
Haywards Heath Baptist Church is an unincorporated charity limited by guarantee and registered in England and Wales. The registered address and charity number of the charity can be found in the legal and administrative information page.
a) Basis of preparation
The financial statements have been prepared on the historical cost basis of accounting in accordance with the Charities Act 2011 and in accordance with applicable accounting standards.
The 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 the Charities SORP (FRS 102) published on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.
Haywards Heath Baptist Church meets the definition of a public benefit entity under FRS 102. The financial statements are prepared in Sterling (£) and rounded to the nearest £1. A summary of the significant accounting policies is set out below. These policies have been consistently applied to all years presented unless otherwise stated.
b) Donations
Donations are accounted for gross when received.
c) Legacies
Legacies are accounted for when their receipt is probable and can be properly quantified.
d) Investment income
Investment income is included in the accounts in the year it is receivable.
e) Fund raising and publicity costs
The church does not make formal appeals for funds; expenditure on these items is therefore not material.
f) Grants payable
The church makes grants to other organisations whose charitable objects complement its work. They are accounted for in the year in which they are paid as no legal or constructive obligation arises prior to this.
g) Costs of charitable activities
These are the costs incurred on running the charity's operations. They include the direct costs of the ministry and organisations as well as the premises support costs and the administration costs. Expenditure is shown inclusive of VAT.
h) Governance costs
This represents direct expenditure on the governance of the church. Most of the management is carried out without charge by volunteers. This intangible cost is not included in the statement of financial activities since there is no measurable cost to volunteers for their service.
i) Fixed assets
The church and manse premises are included in the balance sheet at cost. Furniture in the church premises is included at cost or net realisable value.
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HAYWARDS HEATH BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)
1. ACCOUNTING POLICIES (continued)
j) Depreciation
Depreciation has not historically been charged on church or manse premises because, in the opinion of the trustees, the residual value of the asset is not less than the original cost price. Following the completion of the new church building, the cost less the land will be depreciated over the estimated useful life of 50 years
Depreciation on other fixed assets is calculated to write off the cost on a straight line basis over their expected useful life at the following rates: Computers and equipment 25%
k) Fund Accounting
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
l) Going Concern
The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to continue as a going concern.
m) Financial Instruments
The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments, including debtors and creditors are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
n) Pensions
The charity participates in a funded multi-employer defined benefit scheme. It has not been possible to identify the share of underlying assets and liabilities belonging to individual participating employers. The charge to the income and expenditure represents the employer contribution payable to the scheme for the accounting period. Contributions payable from the charity to the scheme under the terms of its funding agreement for past deficits are recognised as a liability within provisions in the balance sheet.
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HAYWARDS HEATH BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)
| 2 INCOME a) Donations and legacies Weekly offerings Donations Income tax recovered Legacies Grants 2019 fund split b) Income from charitable activities Organisations: Chatterbox Youth Groups Women's fellowship Options 2019 fund split c) Income from investments Interest 2019 fund split d) Other income Other 2019 fund split |
Unrestricted Restricted Total Total funds funds 2020 2019 £ £ £ £ 14,144 511 14,655 18,894 97,971 72,553 170,524 257,234 23,970 15,648 39,618 50,282 - - - - - 30,150 |
|---|---|
| 136,085 88,712 224,797 356,560 |
|
| 146,952 209,608 356,560 443 - 443 1,990 253 - 253 2,009 - - - - 307 - 307 1,263 |
|
| 1,003 - 1,003 5,262 |
|
| 5,262 - 5,262 28 - 28 80 |
|
| 28 - 28 80 |
|
| 80 80 - - - 2 |
|
| - - - 2 |
|
| 2 - 2 |
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HAYWARDS HEATH BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)
| 3 EXPENSES a) Grants payable in furtherance of the charity's objects Given to other causes: BU Home Mission BMS World Mission Link missionaries Tearfund (Syrian refugees) YWAM Mozambique Tearfund (Mozambique) International Bible Training Institute Brighton & Hove City Mission Other Gifts from fellowship fund 2019 fund split b) Costs of activities in furtherance of the charity's objects Ministry: Ministers' stipends and other salaries National insurance Pension contributions payable Pension deficit adjustment (note 15) Expenses Travel Telephone Manse rent Manse expenses Manse maintenance Other ministry Property/ Refurbishment costs Organisations: Chatterbox Junior church Youth Groups Women's fellowship Options 2019 fund split |
Unrestricted Restricted Total Total funds funds 2020 2019 (restated) £ £ £ £ - 6,318 6,318 6,235 - 7,974 7,974 7,176 - 1,336 1,336 4,007 - - - 2,379 - - - 1,185 - - - 1,185 - - - 3,084 - 500 500 316 - 1,700 1,700 3,816 - 566 566 2,450 |
|---|---|
| - 18,394 18,394 31,833 |
|
| - 31,833 31,833 36,725 - 36,725 51,278 483 - 483 1,083 1,353 - 1,353 2,209 (14,672) - (14,672) 661 3,797 - 3,797 2,506 829 - 829 1,713 1,212 - 1,212 1,325 13,044 - 13,044 12,744 5,884 - 5,884 5,429 - - - 2,239 725 398 1,123 4,401 11,027 19,547 30,574 50,834 326 - 326 1,901 - - - 446 302 - 302 1,802 - - - - 356 - 356 1,107 |
|
| 61,391 19,945 81,336 141,679 |
|
| 89,680 51,999 141,679 |
Manse rent expenses were incurred in order to provide a suitable ministers' manse.
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HAYWARDS HEATH BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)
| 3 EXPENSES (continued) c) Support costs Premises: Gas Electricity Water Insurance Telephone/internet Cleaning, maintenance and repairs Transition Costs 2019 fund split d) Expenses for managing and administering the charity Administration: Photocopier Minibus Delegates and subscriptions Catering Church material Publicity Copyright licence Sundry equipment Depreciation Professional fees Independent examination fee Miscellaneous Finance costs: Mortgage interest Pension liability interest cost (note 15) 2019 fund split |
Unrestricted Restricted Total Total funds funds 2020 2019 (restated) £ £ £ £ 461 - 461 846 2,700 - 2,700 304 (125) - (125) 358 3,596 - 3,596 1,342 1,242 - 1,242 383 10,344 - 10,344 722 - - 6,327 |
|---|---|
| 18,218 - 18,218 10,282 |
|
| 10,282 - 10,282 415 - 415 288 - - - 25 1,260 - 1,260 2,246 524 - 524 486 679 - 679 238 175 - 175 751 1,454 - 1,454 920 3,308 - 3,308 7,669 203 52,945 53,148 24,224 1,214 - 1,214 251 - - - 1,860 91 - 91 399 - 736 736 602 767 - 767 1,888 |
|
| 10,090 53,681 63,771 41,847 |
|
| 17,428 24,419 41,847 |
All church expenses are in support of its activities as a whole and it is not appropriate to relate them to any particular category of income.
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HAYWARDS HEATH BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)
4 TANGIBLE FIXED ASSETS
| Cost 01-Jan-20 Additions Disposals Cost at 31-Dec-20 Depreciation 01-Jan-20 Charge Depreciation at 31-Dec-20 Net book value 31-Dec-20 Net book value 31-Dec-19 |
Premises Premises Equipment Equipment Unrestricted Restricted Unrestricted Restricted funds funds funds funds Total £ £ £ £ 199,000 1,690,328 43,095 98,381 2,030,804 - - - - - - - |
|---|---|
| 199,000 1,690,328 43,095 98,381 2,030,804 |
|
| - 28,350 42,881 47,641 118,872 - 28,350 203 24,595 53,148 |
|
| - 56,700 43,084 72,236 172,020 |
|
| 199,000 1,633,628 11 26,145 1,858,784 199,000 1,661,978 214 50,740 1,911,932 |
The church is the beneficial owner of the following freehold properties in Haywards Heath: church premises in Sussex Road, 9 Sussex Road and a manse at 14 Pinewood Way. The church uses the combined site in Sussex Road for its work and ministry in the local community. All three properties are held in trust on behalf of the church by The Baptist Union Corporation Limited.
The church has no annual commitments under non-cancelling operating leases.
| 5 CASH AT BANK AND IN HAND Bank accounts BU Corporation Deposit accounts Building society accounts Organisations 6 DEBTORS AND PREPAYMENTS Tax recoverable Prepayments and accrued income 7 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Accruals Accrued pension deficit recovery payments (note 15) Other creditors Baptist Union Corporation South East Baptist Association Members Loans |
31 December 2020 £ 42,704 - 3,527 3,431 49,662 31 December 2020 £ 3,116 7,898 11,014 31 December 2020 £ 5,769 4,949 298 - 4,000 31,200 46,216 |
31 December 2019 £ 53,884 - 4,054 2,195 |
|---|---|---|
| 60,133 | ||
| 31 December 2019 £ 11,459 1,843 |
||
| 13,302 | ||
| 31 December 2019 £ 1,892 4,842 112,293 10,080 4,000 - |
||
| 133,107 |
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HAYWARDS HEATH BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)
| 8 CREDITORS: AMOUNTS FALLING DUE IN MORE THAN ONE YEAR Baptist Union Corporation South East Baptist Association Members Loans Accrued pension deficit recovery payments (note 15) 8a LOANS Balance Drawdown £ £ Baptist Union Corporation 67,884 37,062 South East Baptist Assoc. 36,000 - Members Loans 16,000 69,000 |
31 December 2020 31 December 2019 (restated) £ £ - 63,359 28,000 32,000 26,800 16,000 24,388 42,112 79,188 153,471 Interest Repayment Balance £ £ £ 736 105,682 - - 4,000 32,000 - 27,000 58,000 |
31 December 2019 (restated) £ 63,359 32,000 16,000 42,112 |
|---|---|---|
| 153,471 |
The Baptist Union Corporation loan was repaid in July2020
The South East Baptist Association loan is interest free and is repayable over 8 years. Members Loans are interest free and repayable over 2 years.
9 RESTRICTED FUNDS
| Balance at 1 January 2020 Income: Donations & Grants Tax recovered Interest Total income Transfer from general fund Sub total Expenditure Balance at 31 December 2020 |
Total Mission Fellowship Building restricted £ £ £ £ 2,819 3,582 1,470,180 1,476,582 |
|---|---|
| 1,150 511 71,403 73,064 198 - 15,450 15,648 - - - |
|
| 1,348 511 86,853 88,712 16,499 - - 16,499 |
|
| 20,667 4,093 1,557,033 1,581,793 18,226 566 73,228 92,020 |
|
| 2,441 3,527 1,483,805 1,489,773 |
Mission fund
The mission fund is used to receive gifts made specifically for mission causes or for named beneficiaries involved in mission work, which can be individuals or organisations, and to distribute such monies to beneficiaries (or as directed by them, unless such direction is contrary to the stated wishes of the donor). The fund is also the vehicle through which the church's budgeted giving to mission is effected, a transfer from general fund of £21,502 was made, in respect of 2019.
Fellowship fund
Gifts for this fund are to assist any church member or regular attender who is in short-term financial need. Disbursements from this fund are made at the discretion of the members appointed from time to time for this purpose by the church meeting.
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HAYWARDS HEATH BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)
9 RESTRICTED FUNDS (continued)
Building fund
The purpose of this fund is to allow Haywards Heath Baptist Church (HHBC) to obtain a building or buildings for use by HHBC or HHBC organisations for Christian worship and church activities and/or for community service. Such buildings can be obtained on a freehold or leasehold basis and can be for a shared purpose approved by HHBC. If a congregation planted by HHBC wishes to become a member of the Baptist Union as an independent church, HHBC can decide suitable terms by which to transfer to that congregation the building that it is using. For clarity, the term 'building' includes the provision of equipment such as seats, catering facilities etc. which enables it to fulfil its function. The fund is not available to meet running costs of buildings.
10 ORGANISATIONS (DESIGNATED FUNDS)
| Chatterbox Youth Groups Womens Fellowship Options Payments by church: Junior church Awaken / Fortify |
At 1 January 2020 Income £ £ 877 443 2,098 253 - 437 307 |
Expenditure At 31 December 2020 £ £ 326 994 302 2,049 356 388 |
|---|---|---|
| 3,412 1,003 |
984 3,431 |
|
| - - 984 |
Of the £5,256 an amount of £1,212 was expended from the church's general funds
11 ANALYSIS OF NET ASSETS BY FUND
| Fixed assets and investments Monetary assets Liabilities (due in more than one year) |
Unrestricted Restricted 31 December 2020 31 December 2019 funds funds Total Total £ £ £ £ 199,011 1,659,773 1,858,784 1,911,932 129,660 (115,200) 14,460 (8,515) (24,388) (54,800) (79,188) (153,471) |
|---|---|
| 304,283 1,489,773 1,794,056 1,749,946 |
12 RELATED PARTIES
The custodian trustee of the church is The Baptist Union Corporation Limited which is a registered charity (no. 249635) and which is controlled by the Baptist Union Council. The church is also a member of the Baptist Union of Great Britain and the South Eastern Baptist Association. The Home Mission Fund is the principal working fund of that Union.
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HAYWARDS HEATH BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)
13 PAYMENTS TO TRUSTEES AND MINISTERS
Trustees
The Church made donations to the Baptist Union Home Mission Fund as set out in note 3a.
The following trustees were reimbursed for expenditure incurred on behalf of the church.
| Paul Gilbert | £ | 1,685 |
|---|---|---|
| Carl Pearson | £ | 72 |
| David Ruddock | £ | 1,912 |
| Ministers The following payments were made to ministers: Stipend Expenses and travel |
2020 £ 38,316 4,626 42,942 |
2019 £ 41,168 4,219 |
|---|---|---|
| 45,387 |
The stipend figures shown above are not in addition to those in note 14 (Staff costs and numbers) and do not include salary payments to a part-time youth worker.
The church uses a payroll service provided by West of England Baptist Association to operate a PAYE scheme in respect of staff costs. The church paid into a pension scheme on behalf of its ministers and also paid certain manse costs.
The church paid rent of £13,044 (2019: £12,744) to F Norden, wife of C Norden, for use of her property as a manse as part of ministers' manse provision.
No other payments were made to ministers or any persons connected with them during this financial period. No other material transaction took place between the charity and a minister or any person connected with them.
| 14 STAFF COSTS AND NUMBERS Gross salaries Salaries recovered from Insurers Employer's national insurance costs Employment allowance Employer's pension contributions payable Pension contributions recovered from Insurers Pension deficit adjustment (see note 15) |
2020 £ 45,132 (6,826) 3,239 (2,756) 3,673 (2,320) 14,672 54,814 |
2019 £ 53,095 (1,818) 3,839 (2,756) 2,209 (618) 661 |
|---|---|---|
| 54,613 |
The staff costs above are included within note 3b.
The charity employed three people during the year as follows.
No. No. Activities in furtherance of the charity's objects 3 3
There were no employees who received employee benefits of more than £60,000 in either year.
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HAYWARDS HEATH BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)
15 PENSIONS
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 Ministers and some members of the church staff are 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. Members of the Basic Section pay reduced contributions of 5% of Pensionable Income, and their employers also pay a total of 5%. 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.
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.
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HAYWARDS HEATH BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)
15 PENSIONS (continued)
The key assumptions underlying the valuation were as follows:
| The key assumptions underlying the valuation were as follows: | |
|---|---|
| Type of financial assumption | % pa |
| RPI price inflation assumption | 3.20 |
| CPI price inflation assumption | 2.70 |
| Minimum Pensionable Income increases (CPI plus 0.75% pa) | 3.20 |
| Assumed investment returns | |
| - Pre-retirement | 2.95 |
| - Post retirement | 1.70 |
| Deferred pension increases | |
| - Pre April 2009 | 3.20 |
| - Post April 2009 | 2.50 |
| Pension increases | |
| - Main Scheme pension | 2.70 |
Post–retirement mortality in accordance with 80% of the S2NFA and S2NMA 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.
Under the current Recovery Plan dated 30th September 2020, deficiency contributions are payable until 30th June 2026. These contributions are broadly based on the employer's membership at 31 December 2014 and increase annually in line with increases to Minimum Pensionable Income as defined in the Rules. However, the Trustees and the Council agreed a 50%reduction for all deficiency contributions payable between 1 July and 31 December 2020.
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.
| Accounting date (year ending): Balance sheet liability at start of year Deficiency contributions paid in year Interest cost (note 3d) Remaining change to balance sheet liability* (note 3b) Balance sheet liability at year end |
31 December 2020 £ 46,954 (3,712) 767 (14,672) 29,337 |
31 December 2019 £ 49,993 (4,842) 1,142 661 |
|---|---|---|
| 46,954 |
- Comprises any change in agreed deficit recovery plan and change in assumptions between yearends.
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HAYWARDS HEATH BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)
15 PENSIONS (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:
| 31 | |||
|---|---|---|---|
| Accounting date | 31 December | December | 31 December |
| 2020 | 2019 | 2018 | |
| Discount rate | 0.4% | 1.7% | 2.4% |
| Future increases to Minimum Pensionable Income | 3.0% | 3.2% | 3.3% |
Consequent upon the departure of the Minister from the church in 2007, the Church had a cessation event under Section 75 of the Pensions Act 1995. This makes the Church liable for the proportion of the overall deficit (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. At present the Church is paying the ongoing deficiency contributions outlined above, and the balance sheet liability shown is based on those deficiency contributions. However, the Pension Scheme Trustee has the right to quantify and seek payment of the debt at any time.
16 CAPITAL COMMITMENTS
There were no outstanding capital commitments as at 31st December 2020
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