HEATON BAPTIST CHURCH
REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] MARCH 2022
Charity registered number 1132252
HEATON BAPTIST CHURCH
CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] MARCH 2022
| Page | |
|---|---|
| Report of the Trustees | 2 |
| Report of the Independent Examiner | 6 |
| Statement of Financial Activities | 7 |
| Balance Sheet | 8 |
| Notes to the Financial Statements | 9 |
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HEATON BAPTIST CHURCH
REPORT OF THE TRUSTEES
YEAR ENDED 31[ST] MARCH 2022
The Trustees present their report together with the unaudited financial statements for the year ended 31[st] March 2022
Reference and administrative information
Charity name: Heaton Baptist Church Charity registration number: 1132252 Registered office and operational address: Heaton Road Newcastle upon Tyne NE6 5HN
Trustees
Rev D Tubby Elder (Senior Minister) Mrs A Innes Elder Prof R Taylor Elder – resigned May 2022 Miss H O’Neill Elder Mrs A Girling Elder – resigned May 2022 Mrs SM Foster Elder Mr P Smith Elder – appointed May 2022 Mr R Bird Deacon – resigned May 2022 Mr P Tang Deacon Mr R Wallace Deacon Mr M Stobbs Deacon – resigned June 2022 Ms F Varley Deacon – resigned May 2022 Miss H Wilkin Deacon – resigned May 2022 Mr G Sexton Deacon Mr JP Bird Deacon – appointed May 2022 Mr T Onions Deacon – appointed May 2022 * = Current trustee
Independent Examiner
Mr J Gresham, Azets, New Garth House, Upper Garth Gardens, Guisborough, TS14 6HA.
Bankers
Lloyds TSB plc, Grey Street, Newcastle upon Tyne.
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HEATON BAPTIST CHURCH
REPORT OF THE TRUSTEES
YEAR ENDED 31[ST] MARCH 2022
Structure, Governance and Management
Governing document
The organisation is a charity, governed under a constitution adopted on 1[st] August 2009. The charity registered on 22[nd] October 2009, having previously been an excepted charity.
Recruitment and appointment of the Trustees
Names are brought to the Church members. A quorum of 20% of church members is required to take part in the vote. Confirmation is by secret ballot with at least two thirds of the members voting in favour of the appointment.
Elders and deacons serve for a period of three years, after which they can apply for re-election if they wish.
Trustee Induction and Training
Before appointment potential trustees are supplied with up to date financial information and other documents such as the most recent accounts and a copy of the constitution.
Risk management
The trustees have examined the major risks which could affect the charity as a whole and have developed and implemented procedures to minimise these risks as far as possible. Risks identified by the trustees include child protection issues, health and safety aspects associated with the church premises and activities, fire safety, insurance and other legislative compliance. Risk management is a proactive activity developing with the growth of the charity.
Following the completion of the new Building Project in 2010, a revised governance structure was adopted with the appointment of the ‘The Buildings Management Group’ (BMG), now called the Buildings Advisory Group (BAG). The BAG ensures appropriate inspection and maintenance arrangements are in place for key assets and equipment. Risk assessments are carried on key activities and appropriate safeguards introduced where necessary. A 'health and safety' culture is being developed and encouraged amongst all internal and external users of the premises.
Organisational Structure
The trustees are responsible for administering the church and for its strategic direction. The day to day running of the church building is delegated to the Office Manager.
Related parties
The church does not have any related parties other than the trustees and their immediate families.
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HEATON BAPTIST CHURCH
REPORT OF THE TRUSTEES
YEAR ENDED 31[ST] MARCH 2022
Objectives, activities, achievements and performance
Objectives of the Charity
Heaton Baptist Church is a vibrant family church that seeks to live out and share the Christian faith across its sphere of influence and beyond its walls. Its current focus is to develop its goal of "Growing as healthy disciples of Jesus".
The mission statement of Heaton Baptist Church is: ‘Loving God and Living for Others; Bringing God to people, leading all to maturity in Christ’. In 2022, we established five core values which determine how we seek to live out our faith, namely being: Christ-centred, discipling, generous, missional and welcoming.
The trustees have complied with the duty in section 17 of the Charities Act 2011 to have due regard to public benefit guidance published by the Charity Commission.
Activities and achievements during the year
Heaton Baptist Church is a welcoming and inclusive church that hosts a range of activities that are part of our mission as well as providing a home for a variety of user groups. Our premises are used extensively.
There have been a number of changes during our recovery from Covid. The Partnership Fund, co-ordinated by three church-elected trustees and which sought to support those involved in ministry within the church, formally closed. The trustees subsequently developed a new structure, co-ordinated through representatives from the leadership, to support missional activity, both local and further afield.
The trustees also established that each trustee would oversee an area of ministry within the church. There are currently 2 ministerial staff (1 full-time, 1 part-time), a part-time youth ministry leader, a part-time children’s ministry leader, 2 part-time office staff and a cleaner.
The church has been involved in a variety of practical community responses during Covid, and has also developed a new, online presence in that time. We host the local foodbank on a weekly basis, as well as providing a free, regular community café.
Financial review
The Statement of Financial Activities on page 6 of these financial statements details all incoming and outgoing resources during the year. The Trustees consider the charity’s affairs to be satisfactory. At 31[st] March 2022 a balance of £58,109 remains in the General Fund for Church use.
Reserves Policy
The Trustees have retained the reserves policy agreed during previous Financial Years. Free reserves are those unrestricted reserves not committed or invested in tangible fixed assets. The goal over the next few years will be to reach a minimum reserve equivalent to three months of expenditure cover, which is around £58,109. The balance at the end of the year was consistent with this goal.
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Investment Policy
The Trustees have agreed an investment policy which is to gain maximum interest with minimum risk on money held on reserve, the balance of the accounts currently being such that no money is held in high risk investments.
Approved by the Board of Trustees on 31[st] January 2023 and authorised to sign on its behalf:
DP Tubby, Trustee
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INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF
HEATON BAPTIST CHURCH
I report on the accounts of the charity for the year ended 31[st] March 2022 which are set out on pages 7 to 15.
Responsibilities and basis of report
As the charity trustees 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 material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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Accounting records were not kept in respect of the charity as required by section 130 of the Act; or
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The accounts do not accord with those records; or
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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.
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.
Mr J Gresham FCCA Azets 31[st] January 2023
New Garth House Upper Garth Gardens Guisborough TS14 6HA
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HEATON BAPTIST CHURCH
STATEMENT OF FINANCIAL ACTIVITIES
YEAR ENDED 31[ST] MARCH 2022
| Note | Unrestricted | Designated | Restricted | Total | Total | |
|---|---|---|---|---|---|---|
| INCOME | Funds | Funds | Funds | 2022 | 2021 | |
| £ | £ | £ | £ | £ | ||
| Weekly offering | 14745 | 440 | 350 | 15535 | 14140 | |
| Gift aid | 159138 | - | - | 159138 | 173511 | |
| Income Tax Recovered | 56225 | - | - | 56225 | 44709 | |
| Bank Interest | 12 | - | - | 4 | 4 | 2 |
| Designated | 2 | 3577 | - | - | 3577 | 15382 |
| Rents/lettings | 3 | 3753 | - | - | 3753 | 1198 |
| Other income | 4,12 | 9280 | - | 1015 | 10295 | 51515 |
| _ ___ _____ | _____ | ____ | ||||
| Total Income | 246718 __ |
440 | 1369 | 248527 | 300457 | |
| EXPENDITURE | ||||||
| Staff Costs | 5 | 158658 | - | - | 158658 | 139534 |
| Mission | 6 | 24528 | - | - | 24528 | 36355 |
| Upkeep of Church Buildings | 7 | 52261 | - | - | 52261 | 39724 |
| Giving to other organisations | 8 | 6852 | - | - | 6852 | 3482 |
| Other | 9 | 1669 | - | - | 1669 | 1562 |
| Administrative Support Cost | 10 | 10029 | - | - | 10029 | 10153 |
| Partnership Fund | 11 | - | 21052 | - | 21052 | 18894 |
| Toddlers Group | - | - | 1136 | 1136 | 711 | |
| __ __ ____ | _____ | ____ | ||||
| Total expenditure | 253997 _ |
21052 | 1136 | 276185 | 250415 | |
| Net income/(expenditure) | ||||||
| before transfers | (7279) | (20612) | 233 | (27658) | 50042 | |
| Transfers | (15988) | 18988 | (3000) | - |
- | |
| Fixed asset revaluation | - | - | - | - | - | |
| __ __ ____ | _____ | ____ | ||||
| Net movement in funds | (23267) | (1624) | (2767) | (27658) |
50042 |
|
| _ ___ _____ | _____ | ____ | ||||
| Reconciliation of Funds | ||||||
| Funds brought forward | 1803386 | 9392 | 1350876 | 3163654 | 3113612 | |
| _ ___ _____ | _____ | ____ | ||||
| Funds carried forward | 1780119 _ |
7768 | 1348109 | 3135996 | 3163654 |
The notes on pages 9 to 15 form part of these financial statements.
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HEATON BAPTIST CHURCH
BALANCE SHEET
YEAR ENDED 31[ST] MARCH 2022
| Notes £ Fixed Assets Tangible assets 13 Current assets Cash at bank & in hand 14 81156 Prepayments & Accrued Income 39298 __ Total current assets 120454 Creditors: amounts falling due within one year 14 (1050) ____ Net current assets Creditors: amounts falling due after more than one year 15 Net assets Funds General Fund 17 Revaluation Reserve 17 Designated funds 17 Restricted funds 17 Total funds 17 |
2022 £ £ 3016592 126554 21528 __ 148082 (1020) _ 119404 - _ 3135996 __ 58109 1722010 7768 1348109 __ 3135996 ______ |
2021 £ 3016592 147062 - _ 3163654 _ 81376 1722010 9392 1350876 _ 3163654 _ |
|---|---|---|
The accounts have been prepared in accordance with the Financial Reporting Standard for Smaller Entities (effective January 2015).
Approved by the Board of Trustees on 31[st] January 2023 and signed on its behalf by:
------------------------------DP Tubby Trustee
The notes on pages 9 to 15 form part of these financial statements.
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HEATON BAPTIST CHURCH NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31[ST] MARCH 2022
1. Accounting Policies
Charity information
Heaton Baptist Church is a registered charity in England and Wales. The registered office is Heaton Road, Newcastle upon Tyne, NE6 5HN.
Accounting convention
These accounts have been prepared in accordance with FRS102 “The Financial Reporting Standard applicable in the UK and Ireland’ (“FRS102”), “Accounting and Reporting by Charities” the Statement of Recommended Practice for Charities applying FRS102 and UK Generally Accepted Accounting Practice as it applies from 1[st] January 2015. The charity is a Public Benefit Entity as defined by FRS102.
The accounts are prepared in sterling which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The accounts have been prepared under the historical cost convention modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
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a) All income becoming available to the charity during the year is recognised in the Statement of Financial Activities when they are receivable.
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b) Grants, including grants for the purchase of fixed assets, are recognised in full in the Statement of Financial Activities in the year in which they are receivable.
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c) Expenditure is recognised in the period in which it is incurred. Expenditure includes attributable VAT which cannot be recovered. All expenditure is allocated to the particular activity to which that cost relates.
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d) Fixed assets are initially capitalised at cost. Land and buildings, which are all for charity use, are included in the accounts at deemed cost. Freehold land is not depreciated. The deemed cost of the freehold buildings less the estimated residual value is considered to be immaterial and for this reason no provision for depreciation is made in these accounts. This is kept under constant review by the trustees.
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f) Pension costs – The charity makes contributions to a defined contributions scheme. The pension costs charged represents contributions payable to the scheme.
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g) Unrestricted funds are incoming resources receivable or generated by the charity for its objects without further specified purpose and are available as general funds.
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h) Designated funds are unrestricted funds which have been allocated by the trustees for a particular purpose.
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i) Restricted funds are to be used for specific purposes laid down by the donor. Expenditure meeting these criteria is charged to the fund along with a fair allocation of management costs. The Building Project consists of gifts made to the Church by members and others, as agreed at Church meetings and grants from other organisations which can be used only for the Building Project.
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j) 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 be able to continue as a going concern.
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k) The entity transitioned to FRS102 on 1[st] April 2015, there were no transitional adjustments required.
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HEATON BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31[ST] MARCH 2022
| 2. Designated Offerings and Givings Church Ministries & Internal Events External Events/Mission & Special Offerings Youth & Children’s Work Total General Fund 3. Rents/lettings Hire of Manse Hire of Church Buildings _ |
2022 £ 1592 1955 30 _ 3577 2022 £ - 3753 __ 3753 |
2021 £ 13620 1747 15 __ 15832 _ 2021 £ - 1198 ___ 1198 |
|---|---|---|
4. Other Income
During a financial year, the Church will receive a number of gifts which are donations towards the costs for services that our members have used or to which they would like to donate.
| Miscellaneous gifts/offerings Telephone, photocopying, postages Maternity pay/NI refunds Total General Fund Restricted Fund HBC Toddlers Group |
2022 £ 5280 - 4000 __ 9280 1015 ____ 10295 |
2021 £ 4303 - 4000 __ 8303 0 ____ 8303 |
|---|---|---|
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HEATON BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31[ST] MARCH 2022
| 2022 5. Staff Costs £ Gross salaries 119603 Social security costs 9120 Pension costs 14093 Other costs 15842 __ 158658 _ No employee received emoluments of more than £60000 in either this year or last year. 2022 The average number of employees was: 7 _ |
2021 £ 112273 8994 12125 6142 ______ 139534 |
2021 £ 112273 8994 12125 6142 ______ 139534 |
|---|---|---|
| __ | _ 2021 6 _ |
Included above are the following amounts in respect of trustees of the charity. The constitution permits the employment and remuneration of trustees for performance of other duties for the charity as described in brackets below.
| D Tubby (Senior Minister) A Innes (Assistant Minister) A Girling (Youth Director) H Rogers (Children’s Worker) E Watts (Office Manager) L Fletcher (Comms/Admin Assistant) Total |
Salary Housing Pension Expenses Allowance £ £ £ £ 36137 - 3911 1063 24898 - 2295 12607 20359 - 937 1105 16321 - 771 952 17145 - 807 - 10614 - 520 - __ _ ___ 125474 - 9241 15727 |
Total 2022 £ 41111 39800 22401 18044 17952 11134 ______ 150442 |
Total 2021 £ 39292 30277 27373 14952 17530 5945 ______ 135369 |
|---|---|---|---|
Dave Tubby was appointed as Senior Minister and began in August 2018. He is living in the Church Manse, wholly owned by the church, which was rented out during the period where no senior minister was in post. No sums were reimbursed to Trustees for their work as Trustees.
The Church pays pension contributions for its Senior Minister to the Baptist Ministers Pension Fund which was a final salary defined benefit scheme. It is not contracted out of the State second pension. As the scheme is a multi-employer scheme, it is not possible to identify the assets and liabilities which are attributable to the church. As it is in deficit, payments continue even with no senior minister in post. In accordance with UK GAAP the scheme is accounted for as a defined contribution scheme. This became on 1 January 2013 a Defined Contribution Scheme for future service into which the Church and Minister pay. The other members of staff also contribute to this pension scheme, with the matched church payments as per the scheme rules.
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HEATON BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31[ST] MARCH 2022
6. Mission Baptist Missionary Society(BMS) Home mission Fund(HMF) Junior Church/Creche/Youth Activities (Incl Romania) Evangelism (Incl International Work) Visiting Speakers Worship/PA Equipment Prayer Meeting Point Short term bursaries External events Freshstreams Conferences (not incl Freshstreams) Internal events/General 7. Upkeep of Church Buildings Manse (29 Ivymount Road) Church Buildings Gas Electricity and Water Insurances Maintenance and Repairs Replacements/Refurbishment Health and safety Relief Caretaking/Cleaning and Materials 8. Giving to Other Organisations External Ministry Organisations Heaton Churches Together/Festival |
2022 £ 7900 8000 2540 422 550 2334 471 - - - - - 2311 __ 24528 _ 2022 £ 10821 8781 5502 13264 2036 424 11433 52261 2022 £ 6712 140 ___ 6852 |
2021 £ 7900 8000 2212 505 315 15645 19 5 - - 330 - 1424 __ 36355 _ 2021 £ 4918 7699 3950 11326 200 - 11631 39724 2021 £ 3470 12 ___ 3482 |
|---|---|---|
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HEATON BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31[ST] MARCH 2022
9. Other
| Hardship Fund Leaving Gifts Catering Miscellaneous-other Students 10. Administrative Support Costs Printing, computing, office supplies and postage Telephones Affiliation fees/ Leadership development Bank Charges Independent Examiners Fee 11. Partnership Fund Payments to Church Members working in missions abroad Bank charges and sundry expenses |
_ |
2022 £ 121 816 732 - - _ 1669 2022 £ 2484 1652 3907 906 1080 10029 _ 2022 £ 21025 27 21052 |
2021 £ 960 369 118 - 115 __ 1562 _ 2021 £ 5600 1804 1222 507 1020 10153 2021 £ 18894 - 18894 ___ |
|---|---|---|---|
12. Pearson Legacy
During 2020 the church received a legacy from Dorothy and Mary Pearson. The use of it was not defined by the giver but it was agreed that any use would be decide case by case by the members and not treated as part of the General Fund. Therefore it has been treated as a Restricted Fund and held in the separate Deposit Account. Expenditure against this will be highlighted separately in future years.
| Legacy payment Bank Interest Transfers |
2022 £ 0 4 (3000) (2996) ____ |
2021 £ 43212 2 _- 43214 _ |
|---|---|---|
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HEATON BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31[ST] MARCH 2022
13. Tangible Fixed Assets
The tangible fixed assets relate entirely to Freehold Land and Buildings at deemed cost.
| 2022 At deemed cost £ Church Buildings (Heaton Road/Mundella terrace) 2714543 Manse (29 Ivymount Road) 302049 __ 3016592 __14. Cash at Bank 2022 £ Treasurer’s (Current) Account 25646 Deposit Account 40298 Partnership Fund Account 5603 Building Fund Account 8416 HBC Toddlers Account 1193 _ 81156 2022 15. Creditors: amounts falling due within one year £ Other creditors and accruals 1050 1050 Unrestricted Restricted Funds Funds 16. Analysis of net assets between funds £ £ Tangible fixed assets 1722010 1294582 Net current assets 65877 53527 Creditors: amounts falling due after more than one year - - ___ 1787887 1348109 |
2021 £ 2714543 302049 __ 3016592 _ 2021 £ 66653 43294 7227 8066 1314 _ 126554 2021 £ 1020 1020 Total Funds £ 3016592 119404 - ___ 3135996 |
|---|---|
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HEATON BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31[ST] MARCH 2022
| 17. Movement in funds Unrestricted funds General funds Property revaluation reserve Designated funds Partnership Fund Total unrestricted funds Restricted Funds Building Fund HBC Toddlers Pearson Legacy Total restricted funds Total funds |
1st Incoming Resources 31st April Resources Expended Transfers Revaluation March 2021 2022 £ £ £ £ £ £ 81376 246718 (253997) (15988) - 58109 1722010 - - - - 1722010 9392 440 (21052) 18988 - 7768 __ _ 1812778 247158 (275049) 3000 - 1787887 1306349 350 - - - 1306699 1313 1015 (1136) - - 1192 43214 4 - (3000) - 40218 1350876 1369 (1136) (3000) - 1348109 ___ 3163654 248527 (276185) - - 3135996 |
|---|---|
Designated Fund
The designated fund is called the Partnership Fund and is used for supporting members of the Church in full time training or ministry. It has a separate bank account and is administered by 3 trustees who are members of the church and are voted into that role.
Restricted Funds
The Building Project was completed in 2009. The loan payments and gifts received to pay for this project have been handled separately. The loans are now paid off in full but two members still pay into the fund. The income received by the Toddler group is also restricted and is managed by a dedicated group on behalf of the Church. During 2020 the Pearson Legacy was received by the Church and is treated as a restricted fund – see note 12 above.
Transfers
During the year £15988 was transferred from the General Fund to the Partnership Fund. £3000 was transferred from the Pearson Legacy Fund to the Partnership Fund.
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