## **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:
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.
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.
- a) All income becoming available to the charity during the year is recognised in the Statement of Financial Activities when they are receivable.
- 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.
- 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.
- 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.
- f) Pension costs – The charity makes contributions to a defined contributions scheme. The pension costs charged represents contributions payable to the scheme.
- 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.
- h) Designated funds are unrestricted funds which have been allocated by the trustees for a particular purpose.
- 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.
- 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.
- 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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