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 

Page 3 



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; 

- nurture and growth of Christian disciples; 

- education and training for Christian and community service; 

- giving and encouraging pastoral care; 

- supporting and encouraging charitable social action in the United Kingdom and abroad; 

- 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) 

Page 4 



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) 

Page 5 



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) 

Page 6 



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 ft*ntsrs thrDu£h offemgs, spe
appeals and one off donatrjns.
to the ltrriied natu￿ ol Ihe fundrai￿9 actmtks undertaken. the ¢hurth does nol fO￿llY
t7K)nrtor compliance ￿1th the Code of Fundrais•)g Pracfr£. The thurth does not consk1er that any of its
ndralwng actMtEs ttjnstrtute Unreasonab￿ intrU￿n on a petson's pr.vacy, un￿as0nJbIY por5￿tent
app￿acheS 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 p￿less1Onal
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 Prepa￿￿1￿ of the arAY&unis in a¢xtJn1antr %%ith
the requireTr*nts of the ChaiilEs Act 2011 nhe Arti
I rvport in ￿SpeCt of rry exarrin8th)n of the thaiitys arj￿ntS canEd out under seclk¢n 145 of the
Act and In L¥￿Ing out my exarm)at￿n I have lolb*td all the appli8b￿ t*ecUons 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 n*ter01 mtters have con* to ny attentk)n in
onnectrjn Ihe exarnnatknn gfvhg ￿uSe to belEve thai kn any wAterfal rgspert..
1 a¢0)unt￿g 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 le￿rds. or
3 th8 ac¢tsunls do not corrply wth the apPI￿able requ¥en*nt5 W1￿mm9 th6 fomi and content of
accounts set out in the Charit*s 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 exaVrffbat￿n
I have no concèms and have cowe arloss no other ffottets in ¢¢nnedh)n V*tth the exarrknatbn to
whkh altonlkjn shoukl be dr8wi n thk5 rep￿% In ts￿0r 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<br>**INCOME**<br>Donations, legacies and Grants<br>2a<br>Income from charitable activities<br>2b<br>Income from investments<br>2c<br>Other income<br>2d<br>**TOTAL INCOME**<br>**EXPENDITURE**<br>**Charitable expenditure:**<br>Grants payable in furtherance of<br>the charity's objects<br>3a<br>Direct costs of activities in furtherance<br>of the charity's objects<br>3b<br>Support costs<br>3c<br>Expenses for managing and<br>administering the charity<br>3d<br>**TOTAL EXPENDITURE**<br>**NET INCOME / EXPENDITURE**<br>Net transfer between funds<br>9<br>Net movement in funds<br>Total funds brought forward<br>**TOTAL FUNDS CARRIED FORWARD**|Unrestricted<br>Restricted<br>Total<br>_Total_<br>funds<br>funds<br>2020<br>_2019_<br>2020<br>2020<br>£<br>£<br>£<br>_£_<br>136,085<br>88,712<br>224,797<br>_356,560_<br>1,003<br>-<br>1,003<br>_5,262_<br>28<br>-<br>28<br>_80_<br>-<br>-<br>-<br>_-_|
|---|---|
||137,116<br>88,712<br>225,828<br>_361,902_|
||-<br>18,394<br>18,394<br>_31,833_<br>61,391<br>19,945<br>81,336<br>_141,679_<br>18,218<br>-<br>18,218<br>_12,495_<br>10,090<br>53,681<br>63,771<br>_69,285_|
||89,699<br>92,020<br>181,719<br>_255,292_|
||47,417<br>(3,308)<br>44,109<br>_106,610_<br>(16,499)<br>16,499<br>-<br>_-_|
||30,918<br>13,191<br>44,109<br>_106,610_|
||273,365<br>1,476,582<br>1,749,947<br>_1,643,337_|
||304,283<br>1,489,773<br>1,794,056<br>_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 Tr￿re than one year
(79,188}
(153,471)
NET A8SET8
1.794,056
1,749,947
CAPITAL AND RESERVES
Income funds:
General funds
Rest￿ed 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. 

Page 11 



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. 

Page 12 



HAYWARDS HEATH BAPTIST CHURCH 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)** 

|**2 INCOME**<br>**a) Donations and legacies**<br>Weekly offerings<br>Donations<br>Income tax recovered<br>Legacies<br>Grants<br>_2019 fund split_<br>**b) Income from charitable activities**<br>Organisations:<br>Chatterbox<br>Youth Groups<br>Women's fellowship<br>Options<br>_2019 fund split_<br>**c) Income from investments**<br>Interest<br>_2019 fund split_<br>**d) Other income**<br>Other<br>_2019 fund split_|Unrestricted<br>Restricted<br>Total<br>_Total_<br>funds<br>funds<br>2020<br>_2019_<br>£<br>£<br>£<br>_£_<br>14,144<br>511<br>14,655<br>_18,894_<br>97,971<br>72,553<br>170,524<br>_257,234_<br>23,970<br>15,648<br>39,618<br>_50,282_<br>-<br>-<br>-<br>-<br>-<br>30,150|
|---|---|
||136,085<br>88,712<br>224,797<br>_356,560_|
||_146,952_<br>_209,608_<br>_356,560_<br>443<br>-<br>443<br>_1,990_<br>253<br>-<br>253<br>_2,009_<br>-<br>-<br>-<br>_-_<br>307<br>-<br>307<br>_1,263_|
||1,003<br>-<br>1,003<br>_5,262_|
||_5,262_<br>_-_<br>_5,262_<br>28<br>-<br>28<br>_80_|
||28<br>-<br>28<br>80|
||_80_<br>_80_<br>-<br>-<br>-<br>2|
||-<br>-<br>-<br>_2_|
||_2_<br>_-_<br>_2_|



Page 13 



HAYWARDS HEATH BAPTIST CHURCH 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)** 

|**3 EXPENSES**<br>**a) Grants payable in furtherance of**<br>**the charity's objects**<br>Given to other causes:<br>BU Home Mission<br>BMS World Mission<br>Link missionaries<br>Tearfund (Syrian refugees)<br>YWAM Mozambique<br>Tearfund (Mozambique)<br>International Bible Training Institute<br>Brighton & Hove City Mission<br>Other<br>Gifts from fellowship fund<br>_2019 fund split_<br>**b) Costs of activities in furtherance of**<br>**the charity's objects**<br>Ministry:<br>Ministers' stipends and other salaries<br>National insurance<br>Pension contributions payable<br>Pension deficit adjustment (note 15)<br>Expenses<br>Travel<br>Telephone<br>Manse rent<br>Manse expenses<br>Manse maintenance<br>Other ministry<br>Property/ Refurbishment costs<br>Organisations:<br>Chatterbox<br>Junior church<br>Youth Groups<br>Women's fellowship<br>Options<br>_2019 fund split_|Unrestricted<br>Restricted<br>Total<br>_Total_<br>funds<br>funds<br>2020<br>_2019_<br>_(restated)_<br>£<br>£<br>£<br>_£_<br>-<br>6,318<br>6,318<br>_6,235_<br>-<br>7,974<br>7,974<br>_7,176_<br>-<br>1,336<br>1,336<br>_4,007_<br>-<br>-<br>-<br>_2,379_<br>-<br>-<br>-<br>_1,185_<br>-<br>-<br>-<br>_1,185_<br>-<br>-<br>-<br>_3,084_<br>-<br>500<br>500<br>_316_<br>-<br>1,700<br>1,700<br>_3,816_<br>-<br>566<br>566<br>_2,450_|
|---|---|
||-<br>18,394<br>18,394<br>_31,833_|
||_-_<br>_31,833_<br>_31,833_<br>36,725<br>-<br>36,725<br>_51,278_<br>483<br>-<br>483<br>_1,083_<br>1,353<br>-<br>1,353<br>_2,209_<br>(14,672)<br>-<br>(14,672)<br>_661_<br>3,797<br>-<br>3,797<br>_2,506_<br>829<br>-<br>829<br>_1,713_<br>1,212<br>-<br>1,212<br>_1,325_<br>13,044<br>-<br>13,044<br>_12,744_<br>5,884<br>-<br>5,884<br>_5,429_<br>-<br>-<br>-<br>_2,239_<br>725<br>398<br>1,123<br>_4,401_<br>11,027<br>19,547<br>30,574<br>_50,834_<br>326<br>-<br>326<br>_1,901_<br>-<br>-<br>-<br>_446_<br>302<br>-<br>302<br>_1,802_<br>-<br>-<br>-<br>_-_<br>356<br>-<br>356<br>_1,107_|
||61,391<br>19,945<br>81,336<br>_141,679_|
||_89,680_<br>51,999<br>_141,679_|



Manse rent expenses were incurred in order to provide a suitable ministers' manse. 

Page 14 



HAYWARDS HEATH BAPTIST CHURCH 

## **NOTES TO THE FINANCIAL STATEMENTS** 

## **FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)** 

|**3 EXPENSES (continued)**<br>**c) Support costs**<br>Premises:<br>Gas<br>Electricity<br>Water<br>Insurance<br>Telephone/internet<br>Cleaning, maintenance and repairs<br>Transition Costs<br>_2019 fund split_<br>**d) Expenses for managing and**<br>**administering the charity**<br>Administration:<br>Photocopier<br>Minibus<br>Delegates and subscriptions<br>Catering<br>Church material<br>Publicity<br>Copyright licence<br>Sundry equipment<br>Depreciation<br>Professional fees<br>Independent examination fee<br>Miscellaneous<br>Finance costs:<br>Mortgage interest<br>Pension liability interest cost (note 15)<br>_2019 fund split_|Unrestricted<br>Restricted<br>Total<br>_Total_<br>funds<br>funds<br>2020<br>_2019_<br>_(restated)_<br>£<br>£<br>£<br>_£_<br>461<br>-<br>461<br>_846_<br>2,700<br>-<br>2,700<br>_304_<br>(125)<br>-<br>(125)<br>_358_<br>3,596<br>-<br>3,596<br>_1,342_<br>1,242<br>-<br>1,242<br>_383_<br>10,344<br>-<br>10,344<br>_722_<br>-<br>-<br>_6,327_|
|---|---|
||18,218<br>-<br>18,218<br>_10,282_|
||_10,282_<br>_-_<br>_10,282_<br>415<br>-<br>415<br>_288_<br>-<br>-<br>-<br>_25_<br>1,260<br>-<br>1,260<br>_2,246_<br>524<br>-<br>524<br>_486_<br>679<br>-<br>679<br>_238_<br>175<br>-<br>175<br>_751_<br>1,454<br>-<br>1,454<br>_920_<br>3,308<br>-<br>3,308<br>_7,669_<br>203<br>52,945<br>53,148<br>_24,224_<br>1,214<br>-<br>1,214<br>_251_<br>-<br>-<br>-<br>_1,860_<br>91<br>-<br>91<br>_399_<br>-<br>736<br>736<br>_602_<br>767<br>-<br>767<br>_1,888_|
||10,090<br>53,681<br>63,771<br>_41,847_|
||_17,428_<br>_24,419_<br>_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. 

Page 15 



HAYWARDS HEATH BAPTIST CHURCH 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)** 

## **4 TANGIBLE FIXED ASSETS** 

|Cost<br>01-Jan-20<br>Additions<br>Disposals<br>Cost at<br>31-Dec-20<br>Depreciation<br>01-Jan-20<br>Charge<br>Depreciation at<br>31-Dec-20<br>Net book value<br>31-Dec-20<br>_Net book value_<br>31-Dec-19|Premises<br>Premises<br>Equipment<br>Equipment<br>Unrestricted<br>Restricted<br>Unrestricted<br>Restricted<br>funds<br>funds<br>funds<br>funds<br>Total<br>£<br>£<br>£<br>£<br>199,000<br>1,690,328<br>43,095<br>98,381<br>2,030,804<br>-<br>-<br>-<br>-<br>-<br>-<br>-|
|---|---|
||199,000<br>1,690,328<br>43,095<br>98,381<br>2,030,804|
||-<br>28,350<br>42,881<br>47,641<br>118,872<br>-<br>28,350<br>203<br>24,595<br>53,148|
||-<br>56,700<br>43,084<br>72,236<br>172,020|
||199,000<br>1,633,628<br>11<br>26,145<br>_1,858,784_<br>_199,000_<br>_1,661,978_<br>_214_<br>_50,740_<br>_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**<br>Bank accounts<br>BU Corporation Deposit accounts<br>Building society accounts<br>Organisations<br>**6 DEBTORS AND PREPAYMENTS**<br>Tax recoverable<br>Prepayments and accrued income<br>**7 CREDITORS: AMOUNTS FALLING DUE**<br>**WITHIN ONE YEAR**<br>Accruals<br>Accrued pension deficit recovery payments (note 15)<br>Other creditors<br>Baptist Union Corporation<br>South East Baptist Association<br>Members Loans|31 December<br>2020<br>£<br>42,704<br>_-_<br>3,527<br>3,431<br>49,662<br>31 December<br>2020<br>£<br>3,116<br>7,898<br>11,014<br>31 December<br>2020<br>£<br>5,769<br>4,949<br>298<br>-<br>4,000<br>31,200<br>46,216|_31 December_<br>_2019_<br>_£_<br>_53,884_<br>_-_<br>_4,054_<br>_2,195_|
|---|---|---|
|||_60,133_|
|||_31 December_<br>_2019_<br>_£_<br>_11,459_<br>_1,843_|
|||_13,302_|
|||_31 December_<br>_2019_<br>_£_<br>_1,892_<br>_4,842_<br>112,293<br>10,080<br>4,000<br>-|
|||_133,107_|



Page 16 



HAYWARDS HEATH BAPTIST CHURCH 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)** 

|**8 CREDITORS: AMOUNTS FALLING DUE**<br>**IN MORE THAN ONE YEAR**<br>Baptist Union Corporation<br>South East Baptist Association<br>Members Loans<br>Accrued pension deficit recovery payments (note 15)<br>**8a LOANS**<br>Balance<br>Drawdown<br>£<br>£<br>Baptist Union Corporation<br>67,884<br>37,062<br>South East Baptist Assoc.<br>36,000<br>-<br>Members Loans<br>16,000<br>69,000|31 December<br>2020<br>_31 December_<br>_2019_<br>_(restated)_<br>£<br>_£_<br>-<br>63,359<br>28,000<br>32,000<br>26,800<br>16,000<br>24,388<br>42,112<br>79,188<br>153,471<br>Interest<br>Repayment<br>Balance<br>£<br>£<br>£<br>736<br>105,682<br>-<br>-<br>4,000<br>32,000<br>-<br>27,000<br>58,000|_31 December_<br>_2019_<br>_(restated)_<br>_£_<br>63,359<br>32,000<br>16,000<br>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<br>Income:<br>Donations & Grants<br>Tax recovered<br>Interest<br>Total income<br>Transfer from general fund<br>Sub total<br>Expenditure<br>Balance at 31 December 2020|Total<br>Mission<br>Fellowship<br>Building<br>restricted<br>£<br>£<br>£<br>£<br>2,819<br>3,582<br>1,470,180<br>1,476,582|
|---|---|
||1,150<br>511<br>71,403<br>73,064<br>198<br>-<br>15,450<br>15,648<br>-<br>-<br>-|
||1,348<br>511<br>86,853<br>88,712<br>16,499<br>-<br>-<br>16,499|
||20,667<br>4,093<br>1,557,033<br>1,581,793<br>18,226<br>566<br>73,228<br>92,020|
||2,441<br>3,527<br>1,483,805<br>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. 

Page 17 



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<br>Youth Groups<br>Womens Fellowship<br>Options<br>Payments by church:<br>Junior church<br>Awaken / Fortify|At 1 January<br>2020<br>Income<br>£<br>£<br>877<br>443<br>2,098<br>253<br>-<br>437<br>307|Expenditure<br>At 31<br>December<br>2020<br>£<br>£<br>326<br>994<br>302<br>2,049<br>356<br>388|
|---|---|---|
||3,412<br>1,003|984<br>3,431|
|||-<br>-<br>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<br>Monetary assets<br>Liabilities (due in more than one year)|Unrestricted<br>Restricted<br>31<br>December<br>2020<br>_31 December_<br>_2019_<br>funds<br>funds<br>Total<br>_Total_<br>£<br>£<br>£<br>_£_<br>199,011<br>1,659,773<br>1,858,784<br>_1,911,932_<br>129,660<br>(115,200)<br>14,460<br>_(8,515)_<br>(24,388)<br>(54,800)<br>(79,188)<br>_(153,471)_|
|---|---|
||304,283<br>1,489,773<br>1,794,056<br>_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. 

Page 18 



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<br>|
|---|---|---|
|Carl Pearson|£|72<br>|
|David Ruddock|£|1,912<br>|



|**Ministers**<br>The following payments were made to ministers:<br>Stipend<br>Expenses and travel|2020<br>£<br>38,316<br>4,626<br>42,942|_2019_<br>_£_<br>_41,168_<br>_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**<br>Gross salaries<br>Salaries recovered from Insurers<br>Employer's national insurance costs<br>Employment allowance<br>Employer's pension contributions payable<br>Pension contributions recovered from Insurers<br>Pension deficit adjustment (see note 15)|2020<br>£<br>45,132<br>(6,826)<br>3,239<br>(2,756)<br>3,673<br>(2,320)<br>14,672<br>54,814|_2019_<br>_£_<br>_53,095_<br>_(1,818)_<br>_3,839_<br>_(2,756)_<br>2,209<br>(618)<br>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. 

Page 19 



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. 

Page 20 



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):**<br>Balance sheet liability at start of year<br>Deficiency contributions paid in year<br>Interest cost (note 3d)<br>Remaining change to balance sheet liability* (note 3b)<br>Balance sheet liability at year end|31 December<br>2020<br>£<br>46,954<br>(3,712)<br>767<br>(14,672)<br>29,337|_31 December_<br>_2019_<br>_£_<br>_49,993_<br>_(4,842)_<br>_1,142_<br>_661_|
|---|---|---|
|||_46,954_|



* Comprises any change in agreed deficit recovery plan and change in assumptions between yearends. 

Page 21 



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 

Page 22