HAYWARDS HEATH BAPTIST CHURCH
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 DECEMBER 2021
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 1 January 2021 END OF THE FINANCIAL YEAR 31 December 2021 CUSTODIAN TRUSTEE The Baptist Union Corporation Limited CUSTODIAN TRUSTEE ADDRESS PO Box 44 129, Broadway, Didcot Oxfordshire OX11 8RT CHURCH LEADERSHIP: MINISTER C Norden OTHER TRUSTEES L Goodchild (Secretary) P Jenkins B Ludlow F Mclachlan D Ruddock (Treasurer) A Thompson L Viney
REGISTERED CHARITY
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 2021
The Trustees present their report and the audited financial statements of the charity for the year ended 31 December 2021. 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;
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baptism, as defined in the Baptist Union's declaration of principle;
-
the communion of the Lord's supper on a regular basis;
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evangelism and mission, locally, regionally, nationally and internationally;
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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 2021
2021 continued to be a year of upheaval due to the COVID-19 pandemic. Despite continued 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. We shared the hope of the gospel and often came back to our church text for the year from Isaiah 43 v19 ‘See I am doing a new thing! Now it springs up; do you not perceive it?’
The church invested time and energy into communicating, connecting and supporting those in particular need. Our Minister and church family shared God’s love and comfort with those at the end of their earthly journey and provided continuing care to the bereaved. Our partnership with Food Bank grew with a member of the church joining the Board of Trustees. We now host ‘The Feast’, which is an initiative run by another local church to provide friendship and meals to vulnerable members of the local community.
(continued)
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HAYWARDS HEATH BAPTIST CHURCH
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021 (continued)
Review of activities in 2021 (continued)
Town Day 2021 saw us in the local park providing free Christian resources, games and snacks for over 70 children and their families. It has been a challenge to build up our children and youth work and in September we began a new monthly initiative ‘Café Church’ providing all age worship along with breakfast! This has proved popular and we have welcomed new people from across the age spectrum.
Options, a group providing a caring community for the elderly, restarted in person meeting in the church café each month. Several senior people on the fringe of the church have returned to a warm welcome.
A new Ladies Group was formed with the first outing being a breakfast together in November and future outreach events, such as a pottery workshop, are planned in the year ahead.
In the run up to Christmas we provided a group for primary aged children with craft, snacks and teaching about Jesus being enjoyed. The church family supported Link to Hope, an initiative to provide Christmas presents to the most marginalised and disadvantaged in Romania, Bulgaria, Moldova and Ukraine. Gifts were also collected for ‘Christmas Cheer’ a charity supporting those in need in the Brighton area. A Christmas Wreath Making Workshop especially welcoming non-church people, was well attended. The Christmas services saw regulars and visitors alike coming to celebrate Jesus’ birth.
During the year online church prayer meetings have continued on Zoom and in-person, once permitted, with a new Prayer and Praise format being started on a Sunday evening once a month. Mid-week homegroups have returned in person or continue to benefit from Zoom depending on the vulnerability of the group members. These are integral to our sense of family and community.
God has indeed been doing new things!
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 2021, total grants of £17,535 were made to causes including Release International and the local Brighton and Hove City Mission.
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.
We ran two online evangelistic courses, Alpha, for those seeking to know more of the Gospel.
It has been a time of change in staffing levels with our second minister, whose focus was on family and community work, leaving in the summer to undertake a full time Ministerial position. Sadly, our Youth Worker left our employ in November due to long-term sickness.
We were delighted to employ a Part Time Administrator who began work in August 2021.
(continued)
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HAYWARDS HEATH BAPTIST CHURCH
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021 (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 £194,773 (2020: £225,828), of which £144,394 (20120: £170,524) were receive as donations.
Total expenditure for the year was £173,293 (2020: £181,719).
Total funds at the balance sheet date were £1,815,536 (2020: £1,754,096). Of these £1,504,248 (2020: £1,489,773) were held as restricted funds. Within unrestricted funds were £199,011 (2020: £199,011) tied up in tangible fixed assets leaving £112,277 (2020: £105,272 ) of free reserves.
Due to the Covid 19 in force during the year, weekly offerings usually made at services have not been collected for the majority of the year. This has lead to a continued reduction in income. However regular donations through standing orders have held up well, which together with reduced expenditure resulting from the continued cessation of some activities lead the trustees to firmly believe 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 REPORTOF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021 Iconllnuedl Fund Raising Policy The ChUh recewe$ rjonations from the congregatlon anfj men7b8rd through weekty offering5, 8pecKic ppeals and one olf donatH)n$ Du& 10 thè limllgd nature of the fundralslng actè4ft1es curTenlbJ undèrtAkèn, thè Lurch doa& nol fomially monllor compllsnca with tho Codè of FUndraIrn9 Practlc•. Th4 churth do•6 not con&idar that any of It$ fundraing actNit185 conslrf(ulÈ uNa8Mable intMsKn on a person's privacy, unr8ason8bty PeIStent approache$ or undue pSSUre to 9Ne and ha5 not receKved any compLaints wi r8$pect ol this ijuring the year. Requests ar8 only rnade lo those vtho a akEarJy members and supporters ol the chuKh and peop caft unsubscnbe al anyline. The chtjrch does not wort with any c<)mnrcial p8ftlp3iors or professh)nal frJndrai3ers. Approved by the trustees on l Oth M8y 2022 and $igneJ on theSr behar t)y'. Lydla Goodchld Church Secretary Pago 7
HAYWARDS HEATH BAPTIST CHURCH INDEPENDENT EXAMINER'S REPORTTOThETRUSTEES OF HAYWARDS HEATH BAPTISTCHURCH I roport to Ihe tIU8tQ88 on my 8XamMiatThn of thg chartty for th• year ended 31 08cember 2021 whlch are sBt out on pao&8 9 10 22. R•$ponslbllltl•s and bas1$ of roport As the ¢harills trngtaès you ar& rnsponGb10 for Ihe preparatkin of the accjjunts in acrdanCe thè requlrgm&nts of tho Charhlas Act 2011 AEt'I. l port in respect ol rny exarninal¥Jn of the cherfly's accounts canied out nder aectn 145 of th Act and in carying out my examiiatts)n I have folbwed all the 8ppIIc8bk Direcltin6 glven by the Charity ConNnisson under secth)n 14515Xbl of the Act. Independent exaffllnorf$ $t8t•mènt I h¥v& complèted my OK8mhalbn. I conflm that no m3t8rial rn2ttars have cotne 10 my att&nttJn Irb conngctbn wth Ihg pxarn5natn 9Ning L¥USg to bgligve that In any malerial resp8ct'. l attouThtin9 reo)rd5 W8r8 not k8Pt in vesped of the charity as Rquyed by seCtn 130 01 the Act., or 2 th& actounls do not aerA)rd Wrfilh th088 fèjs,. or 3 th8 accounts do fioi (x)mpty wth the 8pplKable requir8ments (y)nn}g the fomi and content of accounts sel out in Charilts (Accounts and Reportsl Figgulatbn$ 2008 other than any requir8m8nt th81 the aeeounts give a Inje and fatr vlew, whl¢h i% not a mattar eonsidèlad as part of an inoepandent axamknatknn I have no concems snd have corno across na other rnatte in connection urith the examinatn to which attentn Shou be drawn in this report in order lo enable a proper undarstanding of the accounts lo be reached. Brfan Jacobs ACA. Dète.. / ? 2022 P8g8 8
HAYWARDS HEATH BAPTIST CHURCH
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2021
| 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 2021 2020 2021 2021 £ £ £ £ 130,422 60,357 190,779 224,797 117 - 117 1,003 4 - 4 28 3,873 - 3,873 - |
|---|---|
| 134,416 60,357 194,773 225,828 |
|
| - 19,159 19,159 18,394 74,771 240 75,011 81,336 16,117 - 16,117 18,218 10,061 52,945 63,006 63,771 |
|
| 100,949 72,344 173,293 181,719 |
|
| 33,467 (11,987) 21,480 44,109 (26,462) 26,462 - - |
|
| 7,005 14,475 21,480 44,109 |
|
| 304,283 1,489,773 1,794,056 1,749,947 |
|
| 311,288 1,504,248 1,815,536 1,794,056 |
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 BAPMST CHURCH BALANCE SHEET AS AT31 DECEMBER 2021 31 Dècemb8r 2021 31 December Notes 2020 Fixed a$$•ts Tangible assets 1,805,839 1.858, 784 Curr•nt a#*èt# C>abto Cash at bank and n hand 10,555 67,135 77,690 11,014 60.676 Cr8dstors.' Hmjunts laling due within one year 125.5031 (46,216) NET CURREKf ASSETS 52,187 14,460 TOTAL A8SETS LESS CURRENT LIABILITIES 1.858.026 1,873,244 Cffjdrftor8'. smunts faling dua h than onè yèar 142,4901 179. 188? NET ASSETS 1,815,536 1,794.056 CAPITAL AND RESERVES Income ndE.. Gèneral funds Restricted fund$ 311.288 1.504.248 304.283 7.489. 773 1,815,536 1, 794.056 Apprt)V8d by tho Irustoes on 1 Olh May 2022 and sKJnod on tho¥ bÈhaM by.. Lydia Goodchld Churth Secretary The notas on paggs 11 10 22 lomi part of theso Ilnancbgl $t8tern&nts. Paga 10
HAYWARDS HEATH BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
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 2021 (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 2021 (continued)
| 2 INCOME a) Donations and legacies Weekly offerings Donations Income tax recovered Legacies 2020 fund split b) Income from charitable activities Organisations: Chatterbox Youth Groups Women's fellowship Options 2020 fund split c) Income from investments Interest 2020 fund split d) Other income Rental Income 2020 fund split |
Unrestricted Restricted Total Total funds funds 2021 2020 £ £ £ £ 9,455 183 9,638 14,655 96,137 48,257 144,394 170,524 23,402 11,918 35,320 39,618 1,428 1,428 - |
|---|---|
| 130,422 60,357 190,779 224,797 |
|
| 136,085 88,712 224,797 1 - 1 443 - - - 253 - - - - 116 - 116 307 |
|
| 117 - 117 1,003 |
|
| 1,003 - 1,003 4 - 4 28 |
|
| 4 - 4 28 |
|
| 28 28 3,873 - 3,873 - |
|
| 3,873 - 3,873 - |
|
| - - - |
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HAYWARDS HEATH BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 (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 Release International Brighton & Hove City Mission Other Gifts from fellowship fund 2020 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 2020 fund split |
Unrestricted Restricted Total Total funds funds 2021 2020 £ £ £ £ - 6,942 6,942 6,318 - 9,593 9,593 7,974 - - - 1,336 - 500 500 500 - 500 500 500 - - - 1,200 - 1,624 1,624 566 |
|---|---|
| - 19,159 19,159 18,394 |
|
| - 18,394 18,394 42,787 - 42,787 36,725 - - - 483 1,311 - 1,311 1,353 (1,069) - (1,069) (14,672) 1,656 - 1,656 3,797 243 - 243 829 1,307 - 1,307 1,212 13,320 - 13,320 13,044 5,819 - 5,819 5,884 6,934 - 6,934 - 1,199 240 1,439 1,123 776 - 776 30,574 130 - 130 326 - - - - 267 - 267 302 - - - - 91 - 91 356 |
|
| 74,771 240 75,011 81,336 |
|
| 61,391 19,945 81,336 |
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 2021 (continued)
| 3 EXPENSES (continued) c) Support costs Premises: Gas Electricity Water Insurance Telephone/internet Cleaning, maintenance and repairs 2020 fund split d) Expenses for managing and administering the charity Administration: Photocopier 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) 2020 fund split |
Unrestricted Restricted Total Total funds funds 2021 2020 £ £ £ £ 1,108 - 1,108 461 2,593 - 2,593 2,700 388 - 388 (125) 3,729 - 3,729 3,596 967 - 967 1,242 7,332 - 7,332 10,344 |
|---|---|
| 16,117 - 16,117 18,218 |
|
| 18,218 - 18,218 11 - 11 415 1,495 - 1,495 1,260 629 - 629 524 151 - 151 679 663 - 663 175 1,285 - 1,285 1,454 1,680 - 1,680 3,308 - 52,945 52,945 53,148 3,516 - 3,516 1,214 - - - - 263 - 263 91 - - - 736 368 - 368 767 |
|
| 10,061 52,945 63,006 63,771 |
|
| 10,090 53,681 63,771 |
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 2021 (continued)
4 TANGIBLE FIXED ASSETS
| Cost 01-Jan-21 Additions Disposals Cost at 31-Dec-21 Depreciation 01-Jan-21 Charge Depreciation at 31-Dec-21 Net book value 31-Dec-21 Net book value 31-Dec-20 |
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 |
|
| - 56,700 43,084 72,236 172,020 - 28,350 24,595 52,945 |
|
| - 85,050 43,084 96,831 224,965 |
|
| 199,000 1,605,278 11 1,550 1,805,839 199,000 1,633,628 11 26,145 1,858,784 |
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 2021 £ 61,872 - 2,085 3,178 67,135 31 December 2021 £ 2,613 7,942 10,555 31 December 2021 £ 6,621 5,110 9,772 - 4,000 - 25,503 |
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 |
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HAYWARDS HEATH BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 (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 £ £ South East Baptist Assoc. 32,000 - Members Loans 58,000 - |
31 December 2021 31 December 2020 (restated) £ £ - - 24,000 28,000 - 26,800 18,490 24,388 42,490 79,188 Interest Repayment Balance £ £ £ - 4,000 28,000 - 58,000 - |
31 December 2020 (restated) £ - 28,000 26,800 24,388 |
|---|---|---|
| 79,188 |
The South East Baptist Association loan is interest free and is repayable over 7 years.
| 9 RESTRICTED FUNDS Balance at 1 January 2021 Income: Donations & Grants Tax recovered Interest Total income Transfer from general fund Sub total Expenditure Balance at 31 December 2021 |
Total Mission Fellowship Building restricted £ £ £ £ 2,441 3,527 1,483,805 1,489,773 |
|---|---|
| 880 183 47,377 48,440 193 - 11,725 11,918 - - - |
|
| 1,072 183 59,102 60,357 16,462 - 10,000 26,462 |
|
| 19,976 3,709 1,552,907 1,576,592 17,775 1,624 52,945 72,344 |
|
| 2,201 2,085 1,499,962 1,504,248 |
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 £16,462 was made, in respect of 2021.
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 2021 (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 Youth Groups |
At 1 January 2021 Income £ £ 994 1 2,048 - - 388 116 |
Expenditure At 31 December 2021 £ £ 131 864 147 1,901 92 412 |
|---|---|---|
| 3,431 117 |
370 3,178 |
|
| - - |
-
- 370
11 ANALYSIS OF NET ASSETS BY FUND
| Fixed assets and investments Monetary assets Liabilities (due in more than one year) |
Unrestricted Restricted 31 December 2021 31 December 2020 funds funds Total Total £ £ £ £ 199,011 1,606,828 1,805,839 1,858,784 130,767 (78,580) 52,187 14,460 (18,490) (24,000) (42,490) (79,188) |
|---|---|
| 311,288 1,504,248 1,815,536 1,794,056 |
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 2021 (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.
| L Goodchild | £ | 127 |
|---|---|---|
| David Ruddock | £ | 2,453 |
| L Viney | £ | 18 |
| Ministers The following payments were made to ministers: Stipend Expenses and travel |
2021 £ 33,927 1,899 35,826 |
2020 £ 38,316 4,626 |
|---|---|---|
| 42,942 |
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 £13,0320 (2020: £13,044) 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) |
2021 £ 50,146 (7,360) 3,018 (3,018) 3,253 (1,941) (1,069) 43,029 |
2020 £ 45,132 (6,826) 3,239 (2,756) 3,673 (2,320) 14,672 |
|---|---|---|
| 54,814 |
The staff costs above are included within note 3b.
The charity employed four people during the year as follows.
No. No. Activities in furtherance of the charity's objects 4 4
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 2021 (continued)
15 PENSIONS
The Church is a participating employer the Baptist Pension Scheme (“the Scheme”), which is a separate legal entity administered by the Pension Trustee (Baptist Pension Trust Limited). The assets of the Scheme are held separately from those of the Employer and the other participating employers.
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. Prior to this date the main benefit provided through the Defined Benefit (DB) Plan was a 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.
From January 2012, pension provision is being made through the Defined Contribution (DC) Plan within the Scheme. In general, members pay 8% of their Pensionable Income and employers pay 6% of members’ Pensionable Income into individual pension accounts, which are operated and managed on behalf of the Pension Trustee by Broadstone Corporate Benefits Ltd. 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 if 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 Limited. [Members of the Basic Section pay reduced contributions of 5% of Pensionable Income, and their employers also pay a total of 5%.]
The Scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. Because it is not possible to attribute the Scheme’s assets and liabilities to specific employers, the scheme is accounted for as if the Scheme were a defined contribution scheme.
The Minister(s) [and some members of the church staff] is / are eligible to join the Scheme.
Actuarial valuation as at 31 December 2019
A formal valuation of the DB Plan as at 31 December 2019 was carried out by a professionally qualified Actuary using the Projected Unit Method. At the valuation date the market value of the DB Plan assets was £298 million, whilst the level of assets needed to pay benefits was £316m, giving a deficit of £18m (equivalent to a past service funding level of 94%). The Church and the other participating employers in 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 2021 (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 increase adjustment (above CPI) | 0.50 |
| Pre-retirement assumed investment returns (gilt yield plus 1.75% pa) | 2.95 |
| Post-retirement assumed investment returns (including benefits | 1.70 |
| matched by the insurance policy) (gilt yield plus .5% pa) | |
| Minimum Pensionable Income increases (CPI plus .5% pa) | 3.20 |
| Deferred pension increases (based on RPI) | |
| - Pre April 2009 | 3.20 |
| - Post April 2009 | 2.50 |
Mortality is assumed in accordance with 80% of the S3NA standard mortality table. Future improvements projected from 2013 in line with the “CMI 2019” projection with a long-term rate of improvement of 1.75% p.a. for males and 1.5% p.a. for femaleswith 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 signed in September 2020, deficiency contributions are payable until 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.
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 2021 £ 29,337 (5,036) 368 (1,069) 23,600 |
31 December 2020 £ 46,954 (3,712) 767 (14,672) |
|---|---|---|
| 29,337 |
- 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 2021 (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 |
| 2021 | 2020 | 2019 | |
| Discount rate | 2.0% | 1.4% | 2.1% |
| Future increases to Minimum Pensionable Income | 4.1% | 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
The deacons have committed to improvement works to the church manse at 14 Pinewood Way of £6,000
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