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2021-03-31-accounts

HODDESDON BAPTIST CHURCH

REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

Charity Registration No. 1131809

HODDESDON BAPTIST CHURCH

CHARITY INFORMATION

FOR THE YEAR ENDED 31 MARCH 2021

Trustees Kathryn Edmonds (Secretary) David Stott (Treasurer) Alan Adlington (Resigned 30th June 2020) Gill Bickerstaff Edward Delasalle Rosanne Farrell (Appointed 30th June 2020) Janet Ince Simon Pateman Keith Woollgar Governing Document Deed of Trust dated 5th November 1914 Constitution adopted 23rd June 2009 Charity Registration Number 1131809 Principal Address Hoddesdon Baptist Church Burford Street Hoddesdon EN11 8HX Independent Examiner Miriam Hickson FCA CTA Jacob Cavanagh and Skeet 5 Robin Hood Lane Sutton Surrey SM1 2SW Baptist Union Corporation Ltd, PO Box 44, 129 Bankers Broadway, Didcot, OX11 8RT Barclays Bank plc, 51 High Street, Hoddesdon, EN11 8TG CAF Bank Ltd, 25 Kings Hill, West Malling, Kent, ME19 4JQ CCLA Investment Management Ltd, 85 Queen Victoria Street, London, EC4V 4ET

Contents Page
Charity Information 1
Trustees' Annual Report 2-7
Independent Examiner's Report 8
Statement of Financial Activities 9
Balance Sheet 10
Comparative Balance Sheet 11
Notes to the Accounts 12-21
Detailed Statement of Financial Activities with Comparatives 22

Page 1

HODDESDON BAPTIST CHURCH

TRUSTEES' ANNUAL REPORT

FOR THE YEAR ENDED 31 MARCH 2021

The trustees are pleased to present their report together with the financial statements of Hoddesdon Baptist Church (HBC) for the year ended 31st March 2021. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with HBC’s Deed of Trust, its constitution, 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 102.

Objects of the charity

The primary object of HBC is the advancement of the Christian faith according to the principles of the Baptist denomination. In addition HBC may also advance education and carry out other charitable purposes in the United Kingdom and other parts of the world. The trustees confirm that they have referred to the Charity Commission’s guidance on public benefit when reviewing HBC’s aims and objects and in planning future activities.

The Church universal is not a building, but a collection of ordinary people of different ages and backgrounds, whose lives have been changed, or who are seeking to be changed, by Jesus Christ, the Son of God. The churches described in the New Testament were communities of people, who in loving and serving Jesus Christ, were also committed to love and care for each other and to bring blessing to the people around them. The individuals who constitute HBC are committed to the living out of those New Testament principles. HBC is not alone in this; it is one of many churches in the area, country and all over the world that is seeking to demonstrate that same love and service found in the New Testament so that friends, neighbours, family and colleagues may come to know Jesus as Lord, Saviour and friend.

Summary of the charity's main activities and achievements

To further the above objects and vision, the charity's main activities and achievements were as follows:

HBC is a member of both the Baptist Union of Great Britain (BUGB) and of the Central Baptist Association (CBA).

HBC is a member of the Evangelical Alliance, and a member of Churches Together in Hoddesdon, Broxbourne and Wormley (CTHBW). It works closely with the other members of CTHBW on local initiatives.

HBC supports and encourages individuals and organisations engaged in helping people to become disciples of Jesus, both in the UK and overseas. The financial aspect of this is reflected in mission partner support in note 7.

HBC assists All Nations Christian College by taking students on placement and providing appropriate experience and mentoring, when so requested by the College.

Page 2

HODDESDON BAPTIST CHURCH

TRUSTEES' ANNUAL REPORT

FOR THE YEAR ENDED 31 MARCH 2021

Young Life in Hoddesdon is supported in kind by HBC, in conjunction with the Mannamead Trust, by the free provision of the property adjoining the church’s Burford Street premises, as a base for its work amongst the young people of the area.

The fulfilment of HBC’s primary object is only possible through the intentional activity of every individual making Jesus known in their daily lives. The financial resources of HBC, to a very large extent, are given by the individuals; their private assets and equipment are regularly used in the work of HBC. Much of this work is done privately, without recognition; the hours and value of that time cannot be quantified.

HBC demonstrates the love of Christ to the local community by organising groups around particular interests and activities for the benefit of the wider community as well as individuals who are part of HBC.

HBC organises a series of community online events to which neighbours of the church, and friends of church members can be invited.

A programme of teaching for adults and children of all ages on Sundays and in groups that meet at other times during the week is implemented. During the past year this has been a mixture of meeting by video conference and meeting in person as allowed by government guidelines.

Providing support to churches working elsewhere both in the United Kingdom and overseas. This support has primarily been through individuals working full time in mission either in the UK or overseas. During the year HBC has supported missionary work in Belgium, Italy, Russia, Sri Lanka, Tanzania, Zambia and Zimbabwe.

In planning the activities the Trustees have applied the guidance on public benefit issued by the Charity Commission.

Grant making policy

Grants to external organisations and individuals are considered no less than annually by the Trustees on the basis of need and fulfilment of the charitable objects. There are no upper or lower limits of support.

Page 3

HODDESDON BAPTIST CHURCH

TRUSTEES' ANNUAL REPORT

FOR THE YEAR ENDED 31 MARCH 2021

Structure, Governance and Management

Decisions relating to the charitable trust are made by the Deacons, who, as the Trustees of the charitable trust, are responsible for governing the life and teaching of the church. Day to day decisions on expenditure and activities are decided by staff and volunteers in charge of different areas of the church, with the budgets set and monitored by the Trustees. The powers of appointment or removal of Deacons rests with the general meeting of HBC. Deacons are selected from the membership of the church since this means that they are wholeheartedly involved in seeing the mission of the church worked out in practice.

Financial review

The financial result for the year was a surplus of £97,683 (2020: £33,537); Actuarial gains in respect of the charity’s pension liability added £5,925 (2020: £59,495) to this surplus and the overall surplus reported for the year is £103,608 (2020: £93,032).

HBC’s principal source of income is offerings by bank transfer or received during a Sunday service, which in the period under review totalled £116,287 compared with £101,911 in the previous year. This reflects an increase in unrestricted giving to HBC’s continuing funding needs of £3,497, and an increase of £10,879 in restricted giving.

Income from trading activities has decreased by £8,939 to £19,369. This reflects the impact of the various lockdowns due to Covid-19 which means that groups that normally hire our church halls have not been able to hold their activities.

Overall charitable expenditure increased by £1,219 to £77,301. Expenditure on church property, however, decreased by £8,214 reflecting the lower level of use of the buildings during lockdown. Offsetting this was an increase in gifts to mission partners of £10,997 reflecting an increase in restricted gifts received.

HBC has not undertaken a property valuation in recent years. The Burford Street land was purchased in 1902 with the buildings being erected shortly afterwards, the cost is therefore unknown. As allowed under FRS102 the valuation, £1,237,974, at the point of transition to the accounting standard is used as the deemed cost value. The manse was purchased in 1985 and is included in freehold property at the purchase value of £67,500.

Investments

HBC holds a number of unit trust investments. These investments generated income of £1,796 (2020: £1,736) and unrealised capital gains of £43,377 (2020: losses £14,609). For these investments HBC has set a policy of aiming for a balanced return between income and capital growth, to be invested in ethical investments in line with the policy agreed at a general meeting. During the period under review the trustees reviewed the investments. Regular monthly investments are being made to cover future potential liabilities, including the pension deficit, and other potential expenditure.

Page 4

HODDESDON BAPTIST CHURCH

TRUSTEES' ANNUAL REPORT

FOR THE YEAR ENDED 31 MARCH 2021

Pension liabilities

HBC is a member of the Baptist Pension Scheme, which is currently in deficit. HBC’s share of that deficit at the year end was estimated at £37,900 (2020: £50,000) with a discounted present value of £37,000 (2020: £45,831). In common with all employers who are members of the scheme HBC is making additional contributions to eliminate this deficit. The church does not currently have an active member of the scheme, and has been granted a period of grace by the Trustees of the pension scheme and therefore a cessation event has not taken place.

Reserves policy

The Trustees have set a policy of retaining reserves sufficient for the foreseeable needs of HBC. HBC has previously and continues to set aside money into designated funds to build up contingency funds for major expenditure on church properties and possible future staffing costs. These designated funds could, however, be added to the general reserves should this be required. The free reserves are available to meet the costs of normal running of HBC and to ensure HBC can meet the commitments that have been entered into. The level of free reserves required has been set at £88,500 excluding funds set aside to cover the pension deficit.

At the 31[st] March 2021, HBC’s surplus on general funds of £217,096 (2020: £138,268) which includes a defined pension deficit of £37,000 (2020: £45,831). The Trustees of the pension scheme and the member employers have agreed a plan to make deficit contributions up to 2028 with a view to eliminating the deficit.

Excluding the pension deficit there is a surplus on general funds of £254,096. Of the pension deficit, only £3,919 is assessed as being due within the next twelve months. This gives reserves excluding long term liabilities of £250,177, which compares with the free reserves target set of £88,500. On this basis the reserves are higher than the target set. At the balance sheet date the reserves including the long term liabilities was £161,677 ahead of the free reserves target. The Trustees are aware of the uncertainties around the pension deficit and the possibility that it could increase again, and the volatility in the value of investments. They are also aware of the potential for some further significant expenditure requirements in the near term, which are difficult to quantify, therefore the Trustees are not seeking to reduce reserves at this time. HBC also has designated funds (excluding fixed assets) of £125,658 for which no expenditure commitments have been made, and therefore could if necessary be transferred back to the general fund if these assumptions proved optimistic.

Going concern

The Trustees have reviewed the level of reserves held, and are of the view that HBC is a going concern.

Page 5

HODDESDON BAPTIST CHURCH

TRUSTEES' ANNUAL REPORT

FOR THE YEAR ENDED 31 MARCH 2021

Key risks and uncertainties

The charity is exposed to various risks - be they operational, financial or reputational. The trustees review the charity's activities regularly to identify significant risks and, where possible, they take appropriate measures to mitigate those risks.

All major insurable risks are subject to normal Churches’ and Employers’ insurance. Contractual risks are reviewed before being entered into to assess that they could not significantly impact upon HBC’s ability to fulfil its charitable objects.

The current Coronavirus pandemic and resulting lockdown in the UK will continue to have an impact on the ability of HBC to carry out its charitable activities. The Trustees have adjusted the way it operates to carry out as much of its programme as possible as the current circumstances allow, and are also reviewing the programme to respond to new opportunities arising from the current situation.

Additionally the current situation poses risks to the charity on various fronts, including risks to the programme of charitable activities and financial risks. A number of scenarios were modelled at the beginning of the pandemic, and the Trustees have monitored the situation closely. The Trustees have noted that those adverse scenarios that have arisen have not had a material impact on the finances of the church and are satisfied that the reserves are sufficient to cope with a significant loss of income without adversely impacting the activities of the church. The Trustees are monitoring the situation closely.

Plans for the future

It is the intention of the Trustees to continue the activities outlined earlier in this report in the new year. The national social distancing measures in response to the ongoing Coronavirus pandemic, have impacted on many of the charity's activities. The trustees are endeavouring to ensure as much activity as possible takes place in a safe way, and are considering how best to structure a programme of activity once restrictions are fully lifted.

Page 6

HODDESDON BAPTIST CHURCH

TRUSTEES' ANNUAL REPORT

FOR THE YEAR ENDED 31 MARCH 2021

Responsibilities of trustees under charity law

The trustees are responsible for preparing the trustees' annual report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Charity law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of the affairs of the charity as at the balance sheet date and of its incoming resources and application of resources, including income and expenditure, for the financial year. In preparing these financial statements, the trustees are required to:

  1. select suitable accounting policies and apply them consistently;

  2. observe the methods and principles in the Charities SORP;

  3. make judgements and estimates that are reasonable and prudent;

  4. state whether the applicable accounting standards have been followed, subject to any material

departures disclosed and explained in the financial statements; and

  1. prepare the financial statements on a going concern basis unless it is inappropriate to presume

that the charity will continue in operation.

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011 and the Charity (Accounts and Reports) Regulations 2008. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approval

This report was approved by the trustees and signed on their behalf by:

_______ David Stott

Date: 23rd June 2021

Page 7

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF

HODDESDON BAPTIST CHURCH ('the Charity')

I report to the charity trustees on my examination of the accounts of the Charity for the year ended 31 March 2021 on pages 9 to 21 following, which have been prepared on the basis of the accounting policies set out on pages 12 to 13.

Responsibilities and basis of report

As the charity’s trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act').

I report in respect of my examination of the Charity’s accounts carried out under section 145 of the Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner’s statement

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:

  1. accounting records were not kept in respect of the Charity as required by section 130 of the Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair' view which is not a matter considered as part of an independent examination; or

  4. the accounts have not been prepared in accordance with the methods and principles of 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 (FRS 102).

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Miriam Hickson FCA CTA

30th June 2021

Jacob Cavanagh and Skeet 5 Robin Hood Lane Sutton SM1 2SW

Page 8

HODDESDON BAPTIST CHURCH

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 MARCH 2021

Note
INCOME AND ENDOWMENTS FROM:
Donations and legacies
3
Charitable activities
4
Other trading activities
5
Investments
6
Other income
Total income and endowments
EXPENDITURE ON:
Charitable activities
7
Raising funds
8
Other
9
Total expenditure
Net gains/(losses) on investments
12
Net income/(expenditure)
Transfers between funds
18
Other recognised gains/(losses):
Actuarial gains/(losses) on defined
benefit pension schemes
17
Net movement in funds
Reconciliation of funds:
Total funds brought forward
18
Total funds carried forward
18		 General
Designated
Funds
Funds
£
£
87,620
-
225
-
19,369
-
2,750
101
442
-
110,406
101
20,423
28,700
4,708
-
2,859
-
27,990
28,700
43,377
-
125,793
(28,599)
(52,890)
52,630
72,903
24,031
5,925
-
78,828
24,031
138,268
169,127
217,096
193,158
Unrestricted		 Restricted
Funds
£
28,667
-
-
-
-
28,667
28,178
-
-
28,178
-
489
260
749
-
749
3,570
4,319		 Endowment
Funds
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,237,974
1,237,974		 Total
Funds
2021
£
116,287
225
19,369
2,851
442
139,174
77,301
4,708
2,859
84,868
43,377
97,683
-
97,683
5,925
103,608
1,548,939
1,652,547		 Total
Funds
2020
£
101,911
1,411
28,308
3,163
367
135,160
76,082
7,704
3,228
87,014
(14,609)
33,537
-
33,537
59,495
93,032
1,455,907
1,548,939

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing operations.

The notes on page 12-21 form part of these accounts.

Page 9

HODDESDON BAPTIST CHURCH

BALANCE SHEET

AS AT 31 MARCH 2021

Note
FIXED ASSETS
Tangible assets
11
Investments
12
CURRENT ASSETS
Debtors
13
Investments
14
Cash at bank and in hand
15
CREDITORS: Amounts falling
due within one year
16
Net current assets / (liabilities) before pension liability
Defined benefit pension liability
due within one year
17
Net current assets / (liabilities)
Total assets less current liabilities
CREDITORS: Amounts falling due
after more than one year
Defined benefit scheme asset / (liability)
17
TOTAL NET ASSETS
FUND BALANCES
18
Unrestricted Funds
General funds
Pension reserve
Total general funds
Designated funds excluding property
Unrestricted short term funds
Designated funds re property
Restricted Funds
Endowment Funds		 General
Funds
£
1,807
190,276
192,083
4,770
-
61,305
66,075
(4,062)
62,013
(3,919)
58,094
250,177
-
(33,081)
217,096
254,096
(37,000)
217,096
-
217,096
-
217,096
-
-
217,096
Unrest		 Designated
Funds
£
67,500
-
67,500
-
-
125,658
125,658
-
125,658
-
125,658
193,158
-
-
193,158
-
-
-
125,658
125,658
67,500
193,158
-
-
193,158
ricted		 Restricted
Funds
£
-
-
-
449
-
3,870
4,319
-
4,319
-
4,319
4,319
-
-
4,319
-
-
-
-
-
-
-
4,319
-
4,319		 Endowment
Funds
£
1,237,974
-
1,237,974
-
-
-
-
-
-
-
-
1,237,974
-
-
1,237,974
-
-
-
-
-
-
-
-
1,237,974
1,237,974		 Total
Funds
2021
£
1,307,281
190,276
1,497,557
5,219
-
190,833
196,052
(4,062)
191,990
(3,919)
188,071
1,685,628
-
(33,081)
1,652,547
254,096
(37,000)
217,096
125,658
342,754
67,500
410,254
4,319
1,237,974
1,652,547		 Total
Funds
2020
£
1,308,424
119,899
1,428,323
7,937
64,891
97,730
170,558
(4,111)
166,447
(5,714)
160,733
1,589,056
-
(40,117)
1,548,939
184,099
(45,831)
138,268
101,627
239,895
67,500
307,395
3,570
1,237,974
1,548,939

The financial statements were approved by the Trustees on 23rd June 2021 and were signed on its behalf by:

--------------------------------------David Stott

--------------------------------------Kathryn Edmonds

Charity number: 1131809

The notes on page 12-21 form part of these accounts.

Page 10

HODDESDON BAPTIST CHURCH

COMPARATIVE BALANCE SHEET

AS AT 31 MARCH 2020

Note
FIXED ASSETS
Tangible assets
11
Investments
12
CURRENT ASSETS
Debtors
13
Investments
14
Cash at bank and in hand
15
CREDITORS: Amounts falling
due within one year
16
Net current assets / (liabilities) before pension liability
Defined benefit pension liability
due within one year
17
Net current assets / (liabilities)
Total assets less current liabilities
CREDITORS: Amounts falling due
after more than one year
Defined benefit scheme asset / (liability)
17
TOTAL NET ASSETS
FUND BALANCES
18
Unrestricted Funds
General funds
Pension reserve
Total general funds
Designated funds excluding property
Unrestricted short term funds
Designated funds re property
Restricted Funds
Endowment Funds		 General
Funds
£
2,950
119,899
122,849
7,137
20,889
37,335
65,361
(4,111)
61,250
(5,714)
55,536
178,385
-
(40,117)
138,268
184,099
(45,831)
138,268
-
138,268
-
138,268
-
-
138,268
Unrest		 Designated
Funds
£
67,500
-
67,500
-
44,002
57,625
101,627
-
101,627
-
101,627
169,127
-
-
169,127
-
-
-
101,627
101,627
67,500
169,127
-
-
169,127
ricted		 Restricted
Funds
£
-
-
-
800
-
2,770
3,570
-
3,570
-
3,570
3,570
-
-
3,570
-
-
-
-
-
-
-
3,570
-
3,570		 Endowment
Funds
£
1,237,974
-
1,237,974
-
-
-
-
-
-
-
-
1,237,974
-
-
1,237,974
-
-
-
-
-
-
-
-
1,237,974
1,237,974		 Total
Funds
2020
£
1,308,424
119,899
1,428,323
7,937
64,891
97,730
170,558
(4,111)
166,447
(5,714)
160,733
1,589,056
-
(40,117)
1,548,939
184,099
(45,831)
138,268
101,627
239,895
67,500
307,395
3,570
1,237,974
1,548,939		 Total
Funds
2019
£
1,309,709
104,208
1,413,917
8,529
54,214
90,719
153,462
(2,357)
151,105
(7,180)
143,925
1,557,842
-
(101,935)
1,455,907
174,679
(109,115)
65,564
77,170
142,734
71,735
214,469
3,464
1,237,974
1,455,907

Page 11

HODDESDON BAPTIST CHURCH

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2021

1 Statutory Information

The charity is a trust registered with the Charity Commission in England & Wales. The charity's registered number and principal address can be found on the Charity Information page.

2 Accounting Policies

These financial statements are prepared on a going concern basis, under the historical cost convention as modified by the revaluation of certain assets, which are measured at fair value through the Statement of Financial Activities.

These financial statements have been prepared in accordance with the "Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) ("the Charities SORP"), with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland ("FRS 102") and with the Charities Act 2011. The charity meets the definition of a public benefit entity as set out in FRS 102.

The Charities (Accounts and Reports) Regulations 2008 (the '2008 Regulations') requires charities to prepare their accounts in accordance with 'Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005' but this accounting standard has since been withdrawn and has been replaced by the Charities SORP mentioned in the preceding paragraph. The charity has prepared these financial statements in accordance with the new Charities SORP; this departure from the 2008 Regulations is believed to be necessary for these financial statements to give a 'true and fair view'.

The principles adopted in the preparation of the financial statements are set out below.

a) Going concern The trustees have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the charity to continue as a going concern. The trustees have made this assessment for a period of at least one year from the date of approval of the financial statements. In particular the trustees have considered the charity's forecasts and projections and the possible implications should projected income and / or expenditure vary unexpectedly. The trustees have concluded that there is a reasonable expectation that the charity has adequate resources to continue to operate for the foreseeable future. The charity therefore continues to adopt the going concern basis in preparing its financial statements. b) Income Income including investment income is recognised in the period in which the charity becomes entitled to receipt, the amount receivable can be measured with reasonable certainty, and receipt is probable. For the most part, income is generally recognised when it is received. Income is only deferred when the charity has to fulfil conditions before becoming entitled to it or where the donor has specified that the income is to be expended in a future period. Income from donations and legacies includes: i) Recoverable gift aid. This is recognised when the related donation is received. Gift aid that has not been recovered by the balance sheet date is included as a debtor. ii) Legacies. Income from legacies is recognised when a distribution is received from the estate or, if earlier, when the charity has been notified that a distribution will be made and the amount receivable can be measured reliably.

The charity relies on volunteers to carry out many of its activities. However, in accordance with the SORP, the value of these services has not been included in these financial statements as they cannot be reliably measured. Income from charitable activities represents income receivable from goods, services and facilities supplied in furtherance of the charity's charitable objects. It includes income from church events. Income from other trading activities represents income receivable from activities undertaken to generate funds for the charity. It includes income from the letting of the charity's property.

Investment income represents income generated by the charity's assets and includes income from investments and bank interest.

The charity has taken the view that it has only one charitable activity, namely the advancement of the Christian faith, and all income from donations, legacies and charitable activities is in respect of this one activity. c) Expenditure Expenditure, including irrecoverable VAT, is recognised when it is incurred or, if earlier, when a legal or constructive obligation for a payment arises provided that it is probable that settlement will be required and the amount of the obligation can be measured reliably. The charity makes grants to other institutions and individuals to further its charitable objectives. Grants payable are recognised as constructive obligations arise, which is generally when the charity expresses a commitment to the recipient that can be measured reliably and then only to the extent that any conditions associated with the grant are outside of the control of the charity. Governance costs include costs associated with the independent examination of the financial statements, compliance with constitutional and statutory requirements and any other expenditure incurred on the strategic management of the charity. d) 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. Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. Restricted funds are donations which are to be used in accordance with specific restrictions imposed by donors; they include donations received from appeals for specific activities or projects. Endowment funds are donations that are retained as capital in accordance with the donor's wishes. The nature of the restriction determines whether the endowments represent permanent endowments or expendable endowments.

e) Tangible fixed assets Freehold property comprises:

The church building on Burford Street, which was acquired in 1902. The charity's Trust Deed places restrictions on the use of the property. The Trustees have included the property in the balance sheet at open market value as at 1st April 2016, the date of transition to FRS102, which has been adopted as original cost in accordance with the provisions of the reporting standard. This is because reliable information is not available for the original cost of the building.

A manse which is included in the accounts at its historic cost of £67,500, After reviewing market values for similar properties, the Trustees believe the market value of the property could be between £450,000 and £500,000. No depreciation is charged because the residual value of the building is believed to be at least equal to cost.

Page 12

HODDESDON BAPTIST CHURCH

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2021

Other fixed assets:

Items purchased or donated for the charity's own use are capitalised when the cost of purchased items, or the fair value of donated items, is more than £1,000 and the item is expected to benefit the charity over more than one accounting period. Depreciation is charged on a straight line basis so as to write down the value of each asset to its estimated residual value (if any) over its expected useful economic life. To achieve this objective the following rates of depreciation are charged:

Freehold land Is not depreciated (because it is not consumed by use) Computer equipment Over 3 years Other equipment Over 3 to 5 years

The carrying values of tangible fixed assets are reviewed for impairment in periods when events or changes in circumstances indicate that the carrying value may not be recoverable.

f) Investments Fixed asset investments are held to generate income and / or for their investment potential. The charity's investments are all listed and are valued at their market value at the balance sheet date.

Current asset investments are cash deposit balances with either a notice period in excess of three months, or are fixed term deposits with a term in excess of three months.

g) Cash at bank and in hand

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

h) Pension scheme arrangements

The charity is a participating employer in the Baptist Union Pension Scheme which, prior to January 2012, was a multi-employer defined benefit pension scheme. The charity is unable to identify its share of this scheme's assets and liabilities therefore, as permitted by FRS 102, the entire scheme is being treated as if it were a defined contribution scheme. The last actuarial valuation indicated that the obligation to provide defined benefits gives rise to a funding deficit and the charity, along with other participating employers, must make additional contributions to remedy the deficit. The obligation to make deficit reduction contributions in future years has been included as a liability in these financial statements. Further information about this defined benefits scheme, and the charity's obligation to contribute towards its funding deficit, is disclosed elsewhere in the notes to these accounts.

Since January 2012, the charity has been contributing to a defined contribution pension scheme administered by the Baptist Pension Scheme. Obligation for contributions to this scheme are recognised as an expense when the liability arises. The asset of this scheme are held separately from those of the charity in independently administered funds.

i) Taxation

The charity has taken advantage of the various reliefs from taxation available to charities and no tax is payable on the charity's income.

j) Financial instruments The charity's financial assets and financial liabilities all qualify as basic financial instruments, as defined by FRS102. Except for loans, creditors and debtors are measured at their expected settlement value (normally the amount of cash that the charity expects to pay or receive). The charity recognises liabilities for the principal of those loans that remains outstanding at the year end (i.e. the liabilities exclude any interest chargeable on the loans in future years).

k) Exemption from preparing a cashflow statement

The charity has taken advantage of an exemption conferred by the Charities SORP and has not prepared a cash flow statement.

l) Critical accounting estimates and areas of judgement

ln preparing financial statements certain judgements, estimates and assumptions have to be made that affect the amounts recognised in the financial statements. The trustees consider the following to be significant:

3 Donations and legacies

3
Donations and legacies
Gift aided income
Income tax reclaimed
Other tax efficient giving
Non gift aided income
Other grants receivable
Gift Aid Small Donation scheme recoveries
4
Income from charitable activities
Church retreats and events
Community outreach programmes
Book sales		 Unrestricted
Funds
2021
£
54,074
13,600
67,674
6,189
12,639
1,005
113
87,620
Unrestricted
Funds
2021
£
180
-
45
225		 Restricted
Funds
2021
£
19,651
4,872
24,523
1,558
2,586
-
-
28,667
Restricted
Funds
2021
£
-
-
-
-		 Total
2021
£
73,725
18,472
92,197
7,747
15,225
1,005
113
116,287
Total
2021
£
180
-
45
225		 Unrestricted
Funds
2020
£
53,620
13,551
67,171
3,360
11,592
-
2,000
84,123
Unrestricted
Funds
2020
£
90
1,321
-
1,411		 Restricted
Funds
2020
£
9,418
2,266		 Total
2020
£
63,038
15,817
11,684
4,840
1,264
-		 78,855
8,200
12,856
-
2,000
17,788 101,911
Restricted
Funds
2020
£
-
-
-		 Total
2020
£
90
1,321
-
- 1,411

Page 13

HODDESDON BAPTIST CHURCH

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

5
Income from other trading activities
Hall rental
Manse rental
6
Investment income
Bank interest
Investments
BMO Responsible UK Equity income fund
BMO Responsible Sterling Bond fund
EdenTree Amity Sterling Bond fund
Henderson Global Care Equity fund
7
Charitable expenditure
a
Costs incurred directly on specific activities
Ministry and support staff
Teaching and pastoral work
Outreach
Youth work
Other donations
Property costs
Equipment costs
Miscellaneous expenses
Grants payable (note 7b)
b
Grants payable
Grants for UK and overseas mission
Grants for the relief of poverty
The comparatives for the previous year are as follows:
Grants for UK and overseas mission
Grants for the relief of poverty
The charity's principal grants comprised:
Grants for UK and overseas mission
Baptist Union of GB
Central Baptist Association
Samaritans Purse
TEAM
TEAR Fund
Wycliffe Bible Translators
Other individuals
Grants to institutions for less than £1,000 each
Grants for the relief of poverty
Churches together in Hoddesdon
Broxbourne and Wormley
Broxbourne foodbank		 Unrestricted
Funds
2021
£
1,477
3,865
305
418
212
9,621
1,911
2,344
270
20,423
Unrestricted
Funds
2021
£
-
120
-
150
-
270
-
-
-
270		 Unrestricted
Funds
2021
£
2,629
16,740
19,369
Unrestricted
Funds
2021
£
954
-
379
113
1,237
67
2,750
Designated
Funds
2021
£
-
-
-
-
-
-
-
-
28,700
28,700
Designated
Funds
2021
£
-
4,200
-
500
-
4,000
20,000
-
28,700
-
-
-
28,700		 Restricted
Funds
2021
£
-
-
-
Designated
Funds
2021
£
101
-
-
-
-
-
101
Restricted
Funds
2021
£
-
-
-
-
-
-
-
-
28,178
28,178
Institutions
£
18,001
-
18,001
Institutions
£
9,971
115
10,086
Restricted
Funds
2021
£
7,645
861
625
18,997
28,128
-
50
50
28,178		 Total
2021
£
2,629
16,740
19,369
Total
2021
£
1,055
-
379
113
1,237
67
2,851
Total
2021
£
1,477
3,865
305
418
212
9,621
1,911
2,344
57,148
77,301
Individuals
£
39,147
-
39,147
Individuals
£
36,065
-
36,065
Total
2021
£
-
4,200
120
8,145
861
4,625
39,147
-
57,098
-
50
50
57,148		 Unrestricted
Funds
2020
£
2,712
3,777
1,132
515
248
13,600
1,594
2,118
1,069
26,765
Unrestricted
Funds
2020
£
430
-
230
-
409
-
-
-
1,069
-
-
1,069		 Unrestricted
Funds
2020
£
11,568
16,740
28,308
Unrestricted
Funds
2020
£
1,000
-
502
158
972
104
2,736
Designated
Funds
2020
£
-
-
-
-
-
4,235
-
-
27,400
31,635
Designated
Funds
2020
£
4,200
-
500
-
2,000
20,700
-
27,400
-
-
27,400		 Restricted
Funds
2020
£
-
-		 Total
2020
£
11,568
16,740
- 28,308
Designated
Funds
2020
£
427
-
-
-
-
-		 Total
2020
£
1,427
-
502
158
972
104
427 3,163
Restricted
Funds
2020
£
-
-
-
-
-
-
-
-
17,682		 Total
2020
£
2,712
3,777
1,132
515
248
17,835
1,594
2,118
46,151
17,682 76,082
Restricted
Funds
2020
£
-
-
2,020
96
-
15,366
85		 2021
£
57,148
-
57,148
2020
£
46,036
115
46,151
Total
2020
£
430
4,200
230
2,520
505
2,000
36,066
85
17,567
115		 46,036
115
115 115
17,682 46,151

Page 14

HODDESDON BAPTIST CHURCH

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

8 Cost of raising funds

8
Cost of raising funds
Fundraising costs
Cost of sales - hall hire
Cost of sales - manse rental
Investment management costs
9
Other costs
Governance costs
Independent examiner's fee
Other governance costs
Other
10
Gross wages and salaries
Social security
Pension costs
Analysis of staff costs, the cost of key management personnel and trustee remuneration and expenses
No trustees received employment benefits.
No staff received salaries at a rate of more than £60,000 per annum.
The average monthly number of employees during the year was 2 part time (2020: 2 part time). Most of the		 2021
£
131
1,175
2,694
708
4,708
2021
£
1,800
285
774
2,859
2021
£
1,477
-
-
1,477
charity's activities are carried out by volunteers.		 2020
£
90
2,515
4,526
573
7,704
2020
£
2,120
1,043
65
3,228
2020
£
2,712
-
-
2,712

11 Tangible fixed assets

Cost or valuation
At 1 April 2020
Additions
Gains / (losses) on revaluation
Disposals
At 31 March 2021
Accumulated depreciation
At 1 April 2020
Charge for the year
Eliminated on disposal
At 31 March 2021
Net book value
At 31 March 2021
At 1 April 2020		 Freehold
Property
£
1,305,474
-
-
1,305,474
-
-
-
-
1,305,474
1,305,474		 Fixtures and
fittings
£
109,668
-
-
-
109,668
109,668
-
-
109,668
-
-		 Computers
£
3,013
-
-
-
3,013
3,013
-
-
3,013
-
-		 Other
Equipment
£
34,476
-
-
-
34,476
31,526
1,143
-
32,669
1,807
2,950		 Total
2021
£
1,452,631
-
-
-
1,452,631
144,207
1,143
-
145,350
1,307,281
1,308,424

Page 15

HODDESDON BAPTIST CHURCH

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

12 Fixed asset investments

Fair value brought forward
Purchases during the year
Change in value of investments
Fair value carried forward
The investments are comprised of the following holdings
Aegon Ethical Equity (Class A)
ASI UK Ethical fund (Class I)
BMO Responsible Global Equity fund (Class 1)
BMO Responsible Sterling Bond fund (Class C)
BMO Responsible Sterling Bond fund (Class 1)
BMO Responsible UK Equity Income fund (Class 1)
BMO Responsible UK Equity Income fund (Class 2)
EdenTree Amity Sterling Bond fund (Class B)
Janus Henderson Global Care Growth (Class 1)
13
Debtors
Falling due within one year:
Trade debtors
Tax recoverable
Accrued income
Prepayments
14
Current asset investments
Secure Trust Bank (120 days notice)
Baptist Union Corporation (12 month fixed term deposit)
15
Cash at Bank and in Hand
Cash at bank with immediate access
Notice deposits (with a term of three months or less)
16
Creditors: liabilities falling due within one year
Trade creditors
Accruals
Deferred income		 Equity
funds
2021
£
83,842
18,900
40,565
143,307		 Bond
funds
2021
£
36,057
8,100
2,812
46,969		 Total
2021
£
119,899
27,000
43,377
190,276
2021
No. units
1,221.676
24,644.155
6,742.810
1,929.020
5,439.920
7,473.310
557.110
33,023.180
4,370.210
2021
£
79
1,635
1,158
2,347
5,219
2021
£
-
-
-
2021
£
18,815
172,018
190,833
2021
£
962
2,716
384
4,062		 Equity
funds
2020
£
75,604
21,800
(13,562)
83,842		 Bond
funds
2020
£
28,604
8,500
(1,047)		 Total
2020
£
104,208
30,300
(14,609)
36,057 119,899
2020
No. units
1,424.432
18,950.259
5,590.490
1,929.020
5,439.920
7,473.310
557.110
26,067.145
4,370.210
2020
£
918
4,670
274
2,075
7,937
2020
£
34,641
30,250
64,891
2020
£
11,917
85,813
97,730
2020
£
-
3,670
441
4,111

Page 16

HODDESDON BAPTIST CHURCH NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

17 Pension commitments

The Baptist Union Pension Scheme

Background to the disclosure

The charity 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. The Scheme comprises a Defined Contribution (DC) Plan and a Defined Benefit (DB) Plan.

The DB Plan 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 DB Plan’s assets and liabilities to specific employers and means that contributions are accounted for as if the DB Plan were a defined contribution scheme. The pensions costs charged to the SoFA in the year comprise contributions accruing in the year in respect of the DC Plan plus the impact of deficiency contributions to the DB Plan (see below). The charity is obliged to recognise a liability for its expected future deficiency contributions to the DB Plan.

The Minister is eligible to join the Scheme.

The Defined Contribution Plan

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. In addition, the employer pays a further 4% of Pensionable Income (or 3% if the employer is in the segregated DC section) 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. Members of the Basic Section pay reduced contributions of 5% of Pensionable Income, and their employers also pay a total of 5%.

The Defined Benefit Plan

Benefits in respect of service prior to 1 January 2012 are provided through the Defined Benefit (DB) Plan within the Scheme. The main benefits for pre-2012 service were a defined benefit pension of one eightieth of Final Minimum Pensionable Income for each year of Pensionable Service, together with additional pension in respect of premiums paid on Pensionable Income in excess of Minimum Pensionable Income. The Scheme, previously known as the Baptist Ministers’ Pension Fund, started in 1925, but was closed to future accrual of defined benefits on 31 December 2011.

Actuarial valuation as at 31 December 2019

A formal valuation of the Defined Benefit (DB) Plan was performed at 31 December 2019 by a professionally qualified Actuary using the Projected Unit Method. The market value of the DB Plan assets at the valuation date was £298 million. The valuation of the DB Plan revealed a deficit of assets compared with the value of liabilities of £18 million (equivalent to a past service funding level of 94%). The next actuarial valuation of the DB Plan is due as at 31 December 2022.

Recovery plan

A recovery plan has been agreed to make good the above deficit in assets. Therefore, in addition to the contributions to the DC Plan set out above, the Trustee and the Council agreed to a rate of deficiency contributions from churches and other employers involved in the DB Plan.

For the time being it has been agreed that the standard rate of deficiency contributions from churches and other employers involved in the DB Plan will remain at previously agreed levels, increasing each year in line with increases in the Minimum Pensionable Income. The deficiency contributions are broadly based on 12% of Pensionable Income / Minimum Pensionable Income, reflecting each employer’s contributions in March 2015. Some employers that were involved in the DB Plan for a short period pay lower contributions. The Trustee and the council agreed a 50% reduction for all deficiency contributions payable between 1 July 2020 and 31 December 2020. The Recovery Plan envisages deficiency contributions continuing until 30 June 2026 (2020: 31 December 2028).

As part of the recovery plan, the Baptist Union of Great Britain paid £33m towards the deficit in December 2018 and made a further contribution of £0.5m by 31 December 2020.

Key assumptions

The key assumptions underlying the actuarial valuation of the DB Plan 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 3.2
- Post April 2009 2.50
Pension increases
- Main Scheme pension Pre April 2006 2.70
- Main Scheme pension Post April 2006 2.7

Page 17

HODDESDON BAPTIST CHURCH

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

Basis for determining the DB plan pension liability

The pension liability included in these accounts is based on an estimate of the amount that the charity would be required to pay should the charity decide to settle the debt immediately; the Baptist Pension Scheme (the ‘BPS’) has provided this estimate. The BPS is collecting deficit contributions monthly however these deficit contributions have not been calculated by reference to the charity’s share of the pension deficit and, based on the current schedule of contributions, it is possible that the sum of all future annual deficit contributions will be significantly less than the liability included in these accounts. The charity does not foresee any circumstances that could result in immediate payment of the whole debt, however the trustees believe that the BPS may ask the church to increase its contributions towards the deficit and therefore, to be prudent, they have chosen to recognise a liability for the employer debt in these accounts. In accordance with FRS102, the employer debt has been discounted using an appropriate rate of interest to reflect the fact that it is payable in instalments over the period to 2026; the discount will unwind in subsequent financial periods and this will be accounted for in those accounts as a finance cost.

In addition the provision at 31 March 2019 included the "cessation event" liability of £45,115 determined when Rev. Chris Densham left the church in February 2006. During the course of 2019/20 the church entered into a legal agreement with the Baptist Union of Great Britain and the Baptist Pension Scheme trustees to cancel this debt. The table below shows the relevant figures.

2021 2020
£ £
At current values
Total Scheme deficit 37,900 50,000
Of which due within one year 3,919 5,714
Of which due in more than one year 33,981 44,286
At discounted values
Total Scheme deficit 37,000 45,831
Of which due within one year 3,919 5,714
Of which due in more than one year 33,081 40,117

Consequent upon the departure of the Minister in Training from the Church in 2018, the Church currently has no active employees in the scheme. The church has applied for and the scheme trustees have agreed a Period of Grace, so a cessation event is not considered to have taken place and the church is not liable to pay its share of the deficit at this time.

Movement in Balance Sheet liability

ement in Balance Sheet liability
In respect of the DB Plan:
In respect of the DC Plan:
Aggregate balance sheet liability at the end of the year
Balance sheet liability at start of the year
Minus deficiency contributions paid
Interest cost (recognised in SoFA)
Remaining change to balance sheet liability* (recognised in SoFA)
Balance sheet liability at the end of the year
Balance sheet liability at start of the year
Pension contributions payable for the year (recognised in SoFA)
Pension contributions paid in the year
Balance sheet liability at the end of the year
Cessation event debt cancellation (recognised in SoFA)		 2021
£
45,831
(2,906)
-
(5,925)
37,000
-
-
-
-
37,000		 2020
£
109,115
(3,789)
(45,115)
(14,380)
45,831
-
-
-
-
45,831

This liability represents the present value of the deficit contributions agreed as at the accounting date and has been valued using a discount rate of 1% (2020: 1%).

Page 18

HODDESDON BAPTIST CHURCH

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2021

18 Funds

During the year the movements in the charity's funds were as follows:

Opening
balance
2021
General Unrestricted Funds
General funds excluding pension
184,099
Pension
(45,831)
Total general funds
138,268
Designated Funds excl fixed assets
Mission partner support
1,101
Buildings repairs and refurbishment
74,636
Future stipends
25,890
Total designated funds excl fixed assets
101,627
Total Unrestricted Short term Funds
239,895
Designated funds - fixed assets
67,500
Restricted Funds
Mission partner support
3,012
Gifts to pass on
-
Major repairs and equipment purchase
558
3,570
Endowment Funds
Permanent
Revaluation reserve
1,237,974
1,237,974
Aggregate of funds
1,548,939		 Income
2021
110,406
-
110,406
-
101
-
101
110,507
-
28,667
-
-
28,667
-
-
139,174		 Expenditure
2021
(27,990)
-
(27,990)
(28,700)
-
-
(28,700)
(56,690)
-
(28,178)
-
-
(28,178)
-
-
(84,868)		 Transfers
in the year
2021
(52,890)
-
(52,890)
29,430
17,200
6,000
52,630
(260)
-
260
-
-
260
-
-
-		 Unrealised
Gains and
losses
2021
43,377
-
43,377
-
-
-
-
43,377
-
-
-
-
-
-
-
43,377		 Fixed asset
revaluation
2021
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 Actuarial
surplus
2021
(2,906)
8,831
5,925
-
-
-
-
5,925
-
-
-
-
-
-
-
5,925		 Closing
balance
2021
254,096
(37,000)
217,096
1,831
91,937
31,890
125,658
342,754
67,500
3,761
-
558
4,319
1,237,974
1,237,974
1,652,547

The transfers referred to above were made for the following reasons:

a) Annually the trustees set aside some of the charity's income for grant giving to institutions and individuals who undertake activities that further the charity's own objects. Most of th funds designated for this purpose are distributed within the financial year, but any surplus at year end will be distributed in the new financial year.

c) The Trustees are currently setting aside some of the charity's income which would normally be spent on the stipend of a minister to cover future stipends. d) The Trustees made a transfer to a restricted fund to cover duplicated payments which were not recoverable.

Analysis of net assets by fund

The assets and liabilities of the various funds were as follows:

Tangible fixed assets
Fixed asset investments
Debtors
Investments held as current assets
Cash at bank and in hand
Creditors falling due within one year
Defined benefit pension schemes liabilities		 General
funds
£
1,807
190,276
4,770
-
61,305
(4,062)
-
254,096		 Unrestrict Designated
ex fixed assets
funds
£
-
-
-
-
125,658
-
-
125,658
ed Funds		 Designated
fixed assets
funds
£
67,500
-
-
-
-
-
-
67,500		 Restricted
funds
£
-
-
449
-
3,870
-
-
4,319		 Endowment
funds
£
1,237,974
-
-
-
-
-
-
1,237,974		 2021
£
1,307,281
190,276
5,219
-
190,833
(4,062)
(37,000)
Pension
£
-
-
-
-
-
-
(37,000)
(37,000)
1,652,547

Page 19

HODDESDON BAPTIST CHURCH

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2021

In the previous year the movements in the charity's funds were as follows:

Opening
balance
2020
£
General Unrestricted Funds
General funds excluding pension
174,679
Pension
(109,115)
Total general funds
65,564
Designated Funds excl fixed assets
Mission partner support
271
Buildings repairs and refurbishment
57,009
Future stipends
19,890
Total designated funds excl fixed assets
77,170
Total Unrestricted Short term Funds
142,734
Designated funds - fixed assets
71,735
Restricted Funds
Mission partner support
2,906
Gifts to pass on
-
Major repairs and equipment purchase
558
3,464
Endowment Funds
Permanent
Revaluation reserve
1,237,974
1,237,974
Aggregate of funds
1,455,907		 Income
2020
£
116,945
-
116,945
-
427
-
427
117,372
-
17,672
116
-
17,788
-
-
135,160		 Expenditure
2020
£
(37,697)
-
(37,697)
(27,400)
-
-
(27,400)
(65,097)
(4,235)
(17,566)
(116)
-
(17,682)
-
-
(87,014)		 Transfers
in the year
2020
£
(51,430)
-
(51,430)
28,230
17,200
6,000
51,430
-
-
-
-
-
-
-
-
-		 Unrealised
Gains and
losses
2020
£
(14,609)
-
(14,609)
-
-
-
-
(14,609)
-
-
-
-
-
-
-
(14,609)		 Fixed asset
revaluation
2020
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 Actuarial
surplus
2020
£
(3,789)
63,284
59,495
-
-
-
-
59,495
-
-
-
-
-
-
-
59,495		 Closing
balance
2020
£
-
184,099
(45,831)
138,268
1,101
74,636
25,890
101,627
239,895
67,500
3,012
-
558
3,570
1,237,974
1,237,974
1,548,939

Analysis of net assets by fund

In the previous year, the assets and liabilities of the various funds were as follows:

Tangible fixed assets
Fixed asset investments
Debtors
Investments held as current assets
Cash at bank and in hand
Creditors falling due within one year
Defined benefit pension schemes liabilities		 General
funds
£
2,950
119,899
7,137
20,889
37,335
(4,111)
-
184,099		 Unrestrict Designated
ex fixed assets
funds
£
-
-
-
44,002
57,625
-
-
101,627
ed Funds		 Designated
fixed assets
funds
£
67,500
-
-
-
-
-
-
67,500		 Restricted
funds
£
-
-
800
-
2,770
-
-
3,570		 Endowment
funds
£
1,237,974
-
-
-
-
-
-
1,237,974		 2020
£
1,308,424
119,899
7,937
64,891
97,730
(4,111)
(45,831)
Pension
funds
£
-
-
-
-
-
-
(45,831)
(45,831)
1,548,939

Page 20

HODDESDON BAPTIST CHURCH

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2021

The Trustees have set up the following designated funds:

Mission partner support

Annually the trustees set aside some of the charity's income for grant giving to institutions and individuals who undertake activities that further the charity's own objects. It is anticipated that all of the funds designated for this purpose will be distributed in the year of designation and that any remaining funds are distributed in the new financial year.

Building repairs and refurbishment

This fund is available to cover major repairs to buildings which may be required, and which are larger in scope than can be paid for out of our normal annual income. This fund also contains a provision for repairs to and redecoration of the manse when the current tenant moves out. The Trustees also set aside some of the charity's income to increase this funds.

Future stipends

This fund is available to cover future stipends of ministers. It is also available to cover the relocation expenses of a new minister when appointed.

Fixed assets

The Trustees have set up a designated fund to contain the value of the other tangible fixed assets owned by the church, where they are not included in the endowment fund, (see below).

The following restricted funds exist:

Mission partner support and other gifts

The church receives additional gifts in support of specific mission partners or others who are supported by the church.

Major repairs and equipment purchases

These funds are the balance remaining from a previous appeal to raise funds for major building repairs. It is intended that they will be used for the next major building refurbishment.

The following endowment fund exists:

Fixed assets funds

The Trust Deed founding the church made a gift of land to the church with a stipulation that is used to provide a building for the church. Subsequent gifts were given to erect buildings on the land. As the Trustees do not have a separate valuation of the buildings and the land, the entire value of the church buildings and land are treated as endowment funds.

19 Transactions with related parties

During the year the charity:

a) received donations as set out below from related parties (which includes trustees, any other members of key management and anyone closely connected to them).

Gift aided income
Income tax reclaimed
Other tax efficient giving
Non gift aided income		 Unrestricted
Funds
2021
£
21,905
5,476
27,381
3,966
9
31,356		 Restricted
Funds
2021
£
3,690
923
4,613
1,448
-
6,061		 Total
2021
£
25,595
6,399
31,994
5,414
9
37,417		 Unrestricted
Funds
2020
£
18,457
4,614
23,071
2,076
-
25,147		 Restricted
Funds
2020
£
2,580
645		 Total
2020
£
21,037
5,259
3,225
2,620
-		 26,296
4,696
-
5,845 30,992

Donations to restricted funds were only for those purposes where the church had previously set up a restricted fund.

b) No expenses (2020: nil) were paid to, or for, the trustees.

During the year the charity also made the following payments to or for related parties:

a) The church has use of a building adjacent to the church premises which is owned by the Mannamead Christian Trust. The Trustees of the Mannamead Christian Trust are also members of Hoddesdon Baptist Church.

b) HBC is a member of the Baptist Union of GB, to which it pays an annual subscription.

c) HBC is also a member of the Central Baptist Association, to which it made a donation as set out in note 7.

d) HBC is a member of Churches Together in Hoddesdon, Broxbourne and Wormley to which an annual subscription was paid and in the prior year a donation was also made to them as set out note 7.

Page 21

HODDESDON BAPTIST CHURCH

DETAILED STATEMENT OF FINANCIAL ACTIVITIES WITH COMPARATIVES

FOR THE YEAR ENDED 31 MARCH 2021

Note
INCOME AND ENDOWMENTS FROM:
Donations and legacies
3
Charitable activities
4
Other trading activities
5
Investments
6
Other income
Total income and endowments
EXPENDITURE ON:
Charitable activities:
7
Raising funds
8
Other
9
Total Expenditure
Net gains/(losses) on investments
Net income/(expenditure)
Transfers between funds
18
Other recognised gains/(losses):
Gains/(losses) on revaluation of fixed assets
17
Net movement in funds
Reconciliation of funds:
18
Total funds carried forward
18
Total funds brought forward
Actuarial gains/(losses) on defined benefit pension
schemes		 Unrestric Designated
2021
£
-
-
-
101
-
101
28,700
-
-
28,700
-
(28,599)
52,630
24,031
-
-
24,031
169,127
193,158
ted funds		 Restricted
2021
£
28,667
-
-
-
-
28,667
28,178
-
-
28,178
-
489
260
749
-
-
749
3,570
4,319		 Endowment
2021
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,237,974
1,237,974		 Total
2021
£
116,287
225
19,369
2,851
442
139,174
77,301
4,708
2,859
84,868
43,377
97,683
-
97,683
-
5,925
103,608
1,548,939
1,652,547		 General
2020
£
84,123
1,411
28,308
2,736
367
116,945
26,765
7,704
3,228
37,697
(14,609)
64,639
(51,430)
13,209
-
59,495
72,704
65,564
138,268
Unrestric		 Unrestric Designated
2020
£
-
-
-
427
-
427
31,635
-
-
31,635
-
(31,208)
51,430
20,222
-
-
20,222
148,905
169,127
ted funds		 Restricted
2020
£
17,788
-
-
-
-
17,788
17,682
-
-
17,682
-
106
-
106
-
-
106
3,464
3,570		 Endowment
2020
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,237,974
1,237,974		 Total
2020
£
101,911
1,411
28,308
3,163
367
135,160
76,082
7,704
3,228
87,014
(14,609)
33,537
-
33,537
-
59,495
93,032
1,455,907
1,548,939

Page 22