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 

Page 3 



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; 

- 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 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) 

Page 4 



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) 

Page 5 



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) 

Page 6 



HAYWARDS HEATH BAPTIST CHURCH
REPORTOF THE TRUSTEES
FOR THE YEAR ENDED 31 DECEMBER 2021 Iconllnuedl
Fund Raising Policy
The ChU￿h 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 L*urch doa& nol fomially
monllor compllsnca with tho Codè of FUndraI￿rn9 Practlc•. Th4 churth do•6 not con&idar that any of It$
fundrai￿ng actNit185 conslrf(ulÈ uN￿a8￿Mable intMsK*n on a person's privacy, unr8ason8bty Pe￿IStent
approache$ or undue p￿SSUre 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<)mn*rcial p8ft￿lp3iors or professh)nal
frJndrai3ers.
Approved by the trustees on l Oth M8y 2022 and $igne*J 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 8XamMiat￿Thn 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 ac￿rdanCe
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 aect￿n 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$ $t8t•mènt
I h¥v& complèted my OK8mhalbn. I conflm that no m3t8rial rn2ttars have cotne 10 my att&nttJn Irb
conngctbn wth Ihg pxarn5nat￿n 9Ning L¥USg to bgligve that In any malerial resp8ct'.
l attouThtin9 reo)rd5 W8r8 not k8Pt in vesped of the charity as Rquyed by seCt￿n 130 01 the Act., or
2 th& actounls do not aerA)rd Wrfilh th088 fè￿￿js,. or
3 th8 accounts do fioi (x)mpty wth the 8pplKable requir8ments (y)n￿￿n￿}g the fomi and content of
accounts sel out in Charilts (Accounts and Reportsl Figgulatbn$ 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 examinat￿n to
which attent￿n 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<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>2021<br>_2020_<br>2021<br>2021<br>£<br>£<br>£<br>_£_<br>130,422<br>60,357<br>190,779<br>_224,797_<br>117<br>-<br>117<br>_1,003_<br>4<br>-<br>4<br>_28_<br>3,873<br>-<br>3,873<br>_-_|
|---|---|
||134,416<br>60,357<br>194,773<br>_225,828_|
||-<br>19,159<br>19,159<br>_18,394_<br>74,771<br>240<br>75,011<br>_81,336_<br>16,117<br>-<br>16,117<br>_18,218_<br>10,061<br>52,945<br>63,006<br>_63,771_|
||100,949<br>72,344<br>173,293<br>_181,719_|
||33,467<br>(11,987)<br>21,480<br>_44,109_<br>(26,462)<br>26,462<br>-<br>_-_|
||7,005<br>14,475<br>21,480<br>_44,109_|
||304,283<br>1,489,773<br>1,794,056<br>_1,749,947_|
||311,288<br>1,504,248<br>1,815,536<br>_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. 

Page 12 



HAYWARDS HEATH BAPTIST CHURCH 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 (continued)** 

|**2 INCOME**<br>**a) Donations and legacies**<br>Weekly offerings<br>Donations<br>Income tax recovered<br>Legacies<br>_2020 fund split_<br>**b) Income from charitable activities**<br>Organisations:<br>Chatterbox<br>Youth Groups<br>Women's fellowship<br>Options<br>_2020 fund split_<br>**c) Income from investments**<br>Interest<br>_2020 fund split_<br>**d) Other income**<br>Rental Income<br>_2020 fund split_|Unrestricted<br>Restricted<br>Total<br>_Total_<br>funds<br>funds<br>2021<br>_2020_<br>£<br>£<br>£<br>_£_<br>9,455<br>183<br>9,638<br>_14,655_<br>96,137<br>48,257<br>144,394<br>_170,524_<br>23,402<br>11,918<br>35,320<br>_39,618_<br>1,428<br>1,428<br>-|
|---|---|
||130,422<br>60,357<br>190,779<br>_224,797_|
||_136,085_<br>_88,712_<br>_224,797_<br>1<br>-<br>1<br>_443_<br>-<br>-<br>-<br>_253_<br>-<br>-<br>-<br>_-_<br>116<br>-<br>116<br>_307_|
||117<br>-<br>117<br>_1,003_|
||_1,003_<br>_-_<br>_1,003_<br>4<br>-<br>4<br>_28_|
||4<br>-<br>4<br>28|
||_28_<br>_28_<br>3,873<br>-<br>3,873<br>-|
||3,873<br>-<br>3,873<br>_-_|
||_-_<br>_-_<br>_-_|



Page 13 



HAYWARDS HEATH BAPTIST CHURCH 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 (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>Release International<br>Brighton & Hove City Mission<br>Other<br>Gifts from fellowship fund<br>_2020 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>_2020 fund split_|Unrestricted<br>Restricted<br>Total<br>_Total_<br>funds<br>funds<br>2021<br>_2020_<br>£<br>£<br>£<br>_£_<br>-<br>6,942<br>6,942<br>_6,318_<br>-<br>9,593<br>9,593<br>_7,974_<br>-<br>-<br>-<br>_1,336_<br>-<br>500<br>500<br>_500_<br>-<br>500<br>500<br>_500_<br>-<br>-<br>-<br>_1,200_<br>-<br>1,624<br>1,624<br>_566_|
|---|---|
||-<br>19,159<br>19,159<br>_18,394_|
||_-_<br>_18,394_<br>_18,394_<br>42,787<br>-<br>42,787<br>_36,725_<br>-<br>-<br>-<br>_483_<br>1,311<br>-<br>1,311<br>_1,353_<br>(1,069)<br>-<br>(1,069)<br>_(14,672)_<br>1,656<br>-<br>1,656<br>_3,797_<br>243<br>-<br>243<br>_829_<br>1,307<br>-<br>1,307<br>_1,212_<br>13,320<br>-<br>13,320<br>_13,044_<br>5,819<br>-<br>5,819<br>_5,884_<br>6,934<br>-<br>6,934<br>_-_<br>1,199<br>240<br>1,439<br>_1,123_<br>776<br>-<br>776<br>_30,574_<br>130<br>-<br>130<br>_326_<br>-<br>-<br>-<br>_-_<br>267<br>-<br>267<br>_302_<br>-<br>-<br>-<br>_-_<br>91<br>-<br>91<br>_356_|
||74,771<br>240<br>75,011<br>_81,336_|
||_61,391_<br>19,945<br>_81,336_|



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 2021 (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>_2020 fund split_<br>**d) Expenses for managing and**<br>**administering the charity**<br>Administration:<br>Photocopier<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>_2020 fund split_|Unrestricted<br>Restricted<br>Total<br>_Total_<br>funds<br>funds<br>2021<br>_2020_<br>£<br>£<br>£<br>_£_<br>1,108<br>-<br>1,108<br>_461_<br>2,593<br>-<br>2,593<br>_2,700_<br>388<br>-<br>388<br>_(125)_<br>3,729<br>-<br>3,729<br>_3,596_<br>967<br>-<br>967<br>_1,242_<br>7,332<br>-<br>7,332<br>_10,344_|
|---|---|
||16,117<br>-<br>16,117<br>_18,218_|
||_18,218_<br>_-_<br>_18,218_<br>11<br>-<br>11<br>_415_<br>1,495<br>-<br>1,495<br>_1,260_<br>629<br>-<br>629<br>_524_<br>151<br>-<br>151<br>_679_<br>663<br>-<br>663<br>_175_<br>1,285<br>-<br>1,285<br>_1,454_<br>1,680<br>-<br>1,680<br>_3,308_<br>-<br>52,945<br>52,945<br>_53,148_<br>3,516<br>-<br>3,516<br>_1,214_<br>-<br>-<br>-<br>-<br>263<br>-<br>263<br>_91_<br>-<br>-<br>-<br>_736_<br>368<br>-<br>368<br>_767_|
||10,061<br>52,945<br>63,006<br>_63,771_|
||_10,090_<br>_53,681_<br>_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. 

Page 15 



HAYWARDS HEATH BAPTIST CHURCH 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 (continued)** 

## **4 TANGIBLE FIXED ASSETS** 

|Cost<br>01-Jan-21<br>Additions<br>Disposals<br>Cost at<br>31-Dec-21<br>Depreciation<br>01-Jan-21<br>Charge<br>Depreciation at<br>31-Dec-21<br>Net book value<br>31-Dec-21<br>_Net book value_<br>31-Dec-20|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>56,700<br>43,084<br>72,236<br>172,020<br>-<br>28,350<br>24,595<br>52,945|
||-<br>85,050<br>43,084<br>96,831<br>224,965|
||199,000<br>1,605,278<br>11<br>1,550<br>_1,805,839_<br>_199,000_<br>_1,633,628_<br>_11_<br>_26,145_<br>_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**<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>2021<br>£<br>61,872<br>_-_<br>2,085<br>3,178<br>67,135<br>31 December<br>2021<br>£<br>2,613<br>7,942<br>10,555<br>31 December<br>2021<br>£<br>6,621<br>5,110<br>9,772<br>-<br>4,000<br>-<br>25,503|_31 December_<br>_2020_<br>_£_<br>_42,704_<br>_-_<br>_3,527_<br>_3,431_|
|---|---|---|
|||_49,662_|
|||_31 December_<br>_2020_<br>_£_<br>_3,116_<br>_7,898_|
|||_11,014_|
|||_31 December_<br>_2020_<br>_£_<br>_5,769_<br>_4,949_<br>298<br>-<br>4,000<br>31,200|
|||_46,216_|



Page 16 



HAYWARDS HEATH BAPTIST CHURCH 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 (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>South East Baptist Assoc.<br>32,000<br>-<br>Members Loans<br>58,000<br>-|31 December<br>2021<br>_31 December_<br>_2020_<br>_(restated)_<br>£<br>_£_<br>-<br>-<br>24,000<br>28,000<br>-<br>26,800<br>18,490<br>24,388<br>42,490<br>79,188<br>Interest<br>Repayment<br>Balance<br>£<br>£<br>£<br>-<br>4,000<br>28,000<br>-<br>58,000<br>-|_31 December_<br>_2020_<br>_(restated)_<br>_£_<br>-<br>28,000<br>26,800<br>24,388|
|---|---|---|
|||79,188|



The South East Baptist Association loan is interest free and is repayable over 7 years. 

|**9 RESTRICTED FUNDS**<br>Balance at 1 January 2021<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 2021|Total<br>Mission<br>Fellowship<br>Building<br>restricted<br>£<br>£<br>£<br>£<br>2,441<br>3,527<br>1,483,805<br>1,489,773|
|---|---|
||880<br>183<br>47,377<br>48,440<br>193<br>-<br>11,725<br>11,918<br>-<br>-<br>-|
||1,072<br>183<br>59,102<br>60,357<br>16,462<br>-<br>10,000<br>26,462|
||19,976<br>3,709<br>1,552,907<br>1,576,592<br>17,775<br>1,624<br>52,945<br>72,344|
||2,201<br>2,085<br>1,499,962<br>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. 

Page 17 



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<br>Youth Groups<br>Womens Fellowship<br>Options<br>Payments by church:<br>Junior church<br>Youth Groups|At 1 January<br>2021<br>Income<br>£<br>£<br>994<br>1<br>2,048<br>-<br>-<br>388<br>116|Expenditure<br>At 31<br>December<br>2021<br>£<br>£<br>131<br>864<br>147<br>1,901<br>92<br>412|
|---|---|---|
||3,431<br>117|370<br>3,178|
|||-<br>-|



- - 370 

## **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>2021<br>_31 December_<br>_2020_<br>funds<br>funds<br>Total<br>_Total_<br>£<br>£<br>£<br>_£_<br>199,011<br>1,606,828<br>1,805,839<br>_1,858,784_<br>130,767<br>(78,580)<br>52,187<br>_14,460_<br>(18,490)<br>(24,000)<br>(42,490)<br>_(79,188)_|
|---|---|
||311,288<br>1,504,248<br>1,815,536<br>_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. 

Page 18 



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<br>|
|---|---|---|
|David Ruddock|£|2,453<br>|
|L Viney|£|18<br>|



|**Ministers**<br>The following payments were made to ministers:<br>Stipend<br>Expenses and travel|2021<br>£<br>33,927<br>1,899<br>35,826|_2020_<br>_£_<br>_38,316_<br>_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**<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)|2021<br>£<br>50,146<br>(7,360)<br>3,018<br>(3,018)<br>3,253<br>(1,941)<br>(1,069)<br>43,029|_2020_<br>_£_<br>_45,132_<br>_(6,826)_<br>_3,239_<br>_(2,756)_<br>3,673<br>(2,320)<br>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. 

Page 19 



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. 

Page 20 



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):**<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>2021<br>£<br>29,337<br>(5,036)<br>368<br>(1,069)<br>23,600|_31 December_<br>_2020_<br>_£_<br>_46,954_<br>_(3,712)_<br>_767_<br>_(14,672)_|
|---|---|---|
|||_29,337_|



* 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 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 

Page 22