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2023-03-31-accounts

HEATON BAPTIST CHURCH

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] MARCH 2023

Charity registered number 1132252

HEATON BAPTIST CHURCH

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] MARCH 2023

Page
Report of the Trustees 2 - 5
Report of the Independent Examiner 6
Statement of Financial Activities 7
Balance Sheet 8
Notes to the Financial Statements 9 - 15 
1

HEATON BAPTIST CHURCH

REPORT OF THE TRUSTEES

YEAR ENDED 31[ST] MARCH 2023

The Trustees present their report together with the unaudited financial statements for the year ended 31[st] March 2023

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 DP Tubby Elder (Senior Minister) Mrs A Innes Elder – term ended September 2023 Miss H O’Neill Elder – term ended May 2023 Mrs SM Foster Elder Mr P Smith Elder – resigned March 2023 Mrs RJ Rai Elder – appointed May 2023 Mrs P Daniel Elder – appointed May 2023 Mr TK Howell Elder – appointed May 2023 Mrs K Dews Deacon Mr P Tang Deacon – term ended May 2023 Mr R Wallace Deacon – term ended May 2023 Mr GG Sexton Deacon Mr JP Bird Deacon Mr TS Onions Deacon Mr TJ Fletcher Deacon – appointed May 2023 Mr JP Kenyon *Deacon – appointed May 2023, resigned December 2023 * = Current trustee

Independent Examiner

Joanne Regan FCA, Azets, 32 Brenkley Way, Blezard Business Park, Seaton Burn, Newcastle upon Tyne NE13 6DS

,

Bankers

Lloyds TSB plc, Grey Street, Newcastle upon Tyne. 

2

HEATON BAPTIST CHURCH

REPORT OF THE TRUSTEES

YEAR ENDED 31[ST] MARCH 2023

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, GDPR, cyber security, 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 in place 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. 

3

HEATON BAPTIST CHURCH

REPORT OF THE TRUSTEES

YEAR ENDED 31[ST] MARCH 2023

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’. We have five, established 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.

Over the last year, we have seen a decrease in income and a significant increase in utility costs. These have resulted in us having to make changes to our staffing team in order to maintain financial sustainability. Following a redundancy process under the guidance of the Baptist Union, the trustees recommended to the church that two part-time staff members (caretaker/cleaner and office staff) were made redundant, and that we were not in a position to offer a permanent ministerial role to our Minister-in-Training, who was concluding her training with us.

In October 2022, the membership voted to approve these changes alongside other recommendations from the trustees to trim our expenditure accordingly.

As of March 2023, we have 2 ministerial staff (1 full-time, 1 part-time, whose term is due to conclude at the end of her training in July 2023), one part-time youth ministry leader and a part-time Office Manager.

We have begun to seek grant funding from a number of sources for some of our community work, and have been successful in raising funds to put in place solar panels, to mitigate against the rising utility costs. This has been able to happen because of the generosity of our membership, alongside the success of some significant grant applications. The solar panels were installed in January 2023.

The church has also been increasingly involved in a number of practical community responses to the cost-of-living crisis, and the building is used daily by a vast number of community groups providing support to those in need in the East of Newcastle. This includes a foodbank, cookery course, benefits support, drop-in café, coffee morning, mental health support for teenagers, preschool toddler group and other resources besides. Other groups also regularly use the premises.

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 2023 a balance of £92,497 remains in the General Fund for Church use. 

4

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 £65,000. The balance at the end of the year was consistent with this goal.

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 2024 and authorised to sign on its behalf:

-----------------------------------------DP Tubby, Trustee 

5

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 2023 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; or

  4. The financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standards 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.

Joanne Regan FCA Azets 31[st] January 2024

32 Brenkley Way Blezard Business Park Seaton Burn Newcastle upon Tyne NE13 6DS 

6

HEATON BAPTIST CHURCH

STATEMENT OF FINANCIAL ACTIVITIES

YEAR ENDED 31[ST] MARCH 2023

Note Unrestricted
Designated		 Restricted Total
Total
INCOME Funds
Funds		 Funds 2023
2022
£
£		 £ £
£
Weekly offering 34469
27		 180 34676
15535
Gift aid 151671
-		 - 151671
159138
Income Tax Recovered 43261
-		 - 43261
56225
Bank Interest 12 -
-		 76 76
4
Designated 2 60345 - - 60345
3577
Rents/lettings 3 4095 - - 4095
3753
Other income 4 2804 - 2161 4965
10295
_ ___ _____ _____ ____
Total Income 296645
__
27
 2417 299089
248527
EXPENDITURE
Staff Costs 5 136695 - - 136695
158658
Mission 6 26977
-		 - 26977
24528
Upkeep of Church Buildings 7 33023 - - 33023
52261
Giving to other organisations 8 2915 - - 2915
6852
Other 9 1849 - - 1849
1669
Administrative Support Cost 10 19846 - - 19846
10029
Partnership Fund 11 16630
-		 - 16630
21052
Toddlers Group -
-		 1425 1425
1136
______ ___ _____ _____ ____
Total expenditure 237934
_
-
 1425 239359
276186
Net income/(expenditure)
before transfers 58710
27		 992 59729 (27658)
Transfers 5630
(5630)		 - -
-
Fixed asset revaluation -
-		 - -
-
______ ___ _____ _____ ____
Net movement in funds 64340
(5603)		 992 59729
(27658)
_ ___ _____ _____ ____
Reconciliation of Funds
Funds brought forward 1780119
7768		 1348109 3135996
3163654
_ ___ _____ _____ ____
Funds carried forward 1844459
_
2165
 1349101 3195725
3135996

The notes on pages 9 to 15 form part of these financial statements. 

7

HEATON BAPTIST CHURCH

BALANCE SHEET

YEAR ENDED 31[ST] MARCH 2023

Notes
£
Fixed Assets
Tangible assets
13
Current assets
Cash at bank & in hand
14
104199
Prepayments & Accrued Income
51407
__
Total current assets
155606
Creditors: amounts falling
due within one year
15
(6425)
____
Net current assets
Creditors: amounts falling
due after more than one year
Net assets
Funds
General Fund
17
Revaluation Reserve
17
Designated funds
17
Restricted funds
17
Total funds
17		 2023
£
£
3046544
81156
39298
__
120454
(1050)
_
149181
-
_
3195725
__
122449
1722010
2165
1349101
__
3195725
______		 2022
£
3016592
119404
-
_
3135996
_
58109
1722010
7768
1348109
_
3135996
_

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

Approved by the Board of Trustees on 31[st] January 2024 and signed on its behalf by:

------------------------------DP Tubby Trustee

The notes on pages 9 to 15 form part of these financial statements. 

8

HEATON BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31[ST] MARCH 2023

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.

Freehold land and buildings Not depreciated Solar panels 25 years 

9

HEATON BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31[ST] MARCH 2023

2. Designated Offerings and Givings
Church Ministries & Internal Events
External Events/Mission & Special Offerings
Youth & Children’s Work
Various Grants
Solar Panels Giving
Solar Panels Grant

Total General Fund

3. Rents/lettings
Hire of Church Buildings
_		 2023
£
614
3117
830
30837
14947
10000
_
60345

2023
£
4095
__
_4095		 2022
£
1592
1955
30
-
-
-
__
3577
_
2022
£
3753
___
__3753

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
Maternity pay/NI refunds
Total General Fund
Restricted Fund
HBC Toddlers Group		 2023
£
1854
950
__
2804
2161
_
4965
___		 2022
£
5280
4000
__
9280
1015
_
10295
___		 
10

HEATON BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31[ST] MARCH 2023

2023
5. Staff Costs
£
Gross salaries
109911
Social security costs
4286
Pension costs
10591
Other costs
11907
__
136695
_
No employee received emoluments of more than £60000 in either this year or last year.
2023
The average number of employees was:
5
_		 2022
£
119603
9120
14093
15842
______
158658
 2022
£
119603
9120
14093
15842
______
158658
__ _
2022
7
_

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
£
£
£
£
35438
-
4030
914
24124
-
2323
9119
13665
-
650
810
16010
-
780
352
16766
-
815
-
8193
-
394
-
__
_

___
114196
-
8992
11195



 Total
2023
£
40382
35566
15125
17142
17581
8587
______
134383
 Total
2022
£
41111
39800
22401
18044
17952
11134
______
150442

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. 

11

HEATON BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31[ST] MARCH 2023


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
Short term bursaries
Grow Baby
Food Ministries
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		 2023

£
7900
8000
3376
1574
200
1070
408
83
151
3139
1076
__
26977
_
2023
£
4645
11064
4687
5382
138
-
7107

33023

2023
£
2415
500
___
2915
 2022
£
7900
8000
2540
422
550
2334
471
-
-
-
2311
__
24528
_
2022
£
10821
8781
5502
13264
2036
424
11433

52261

2022
£
6712
140
___
6852
 
12

HEATON BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31[ST] MARCH 2023

9. Other

Hardship Fund
Leaving Gifts
Catering
Students
10. Administrative Support Costs
Printing, computing, office supplies and postage
Telephones
Affiliation fees/ Leadership development
Bank Charges
Independent Examiners Fee
Depreciation
11. Partnership Fund
Payments to Church Members working in missions abroad
Bank charges and sundry expenses		 _
 2023
£
50
1018
713
68
_
1849

2023
£
11535
1636
2857
1400
1170
1248

19846
_
2023
£
16630
-

16630
 2022
£
121
816
732
-
__
1669
_
2022
£
2484
1652
3907
906
1080
-

10029

2022
£
21025
27

21052
___



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.

Bank Interest
Transfers
 2023
£
76
__-
76
_____		 2022
£
4
__(3000)
(2996)
_		 
13

HEATON BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31[ST] MARCH 2023

13. Tangible Fixed Assets

The tangible fixed assets relate to Freehold Land and Buildings at deemed cost (Church Buildings: Heaton Road/Mundella terrace £2714543 and Manse: 29 Ivymount Road £302049) and Solar Panels which are depreciated over their useful economic life.

Freehold Land and
Buildings
Solar Panels
Cost
£
£
As 1 April 2022
3016592
-
Additions
-
31200
_
________

At 31 March 2023
3016592
31200
_
________

Depreciation
As 1 April 2022
-
-
Charge for the year
-
1248
_
________

At 31 March 2023
-
1248
_
________

Carrying amount
At 31 March 2023
3016592
29952
_
_
At 31 March 2022
3016592
-
_
_
14. Cash at Bank
2023
£
Treasurer’s (Current) Account
53299
Deposit Account
40375
Partnership Fund Account
-
Building Fund Account
8596
HBC Toddlers Account
1929
__
104199
_
2023
15. Creditors: amounts falling due within one year
£
Accruals
1100
Other creditors
5325

6425
___		 Total
£
3016592
31200
_
3047792
_
-
1248
_
1248
_
3046544
_
3016592
_
2022
£
25646
40298
5603
8416
1193
__
81156
_
2022
£
1050
-

1050
___
__ 
14

HEATON BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31[ST] MARCH 2023

Unrestricted Unrestricted Restricted Restricted Total
Funds Funds Funds
16. Analysis of net assets between funds £ £ £
Tangible fixed assets 1722010 1324534 3046544
Net current assets 124614 24566 149181
Creditors: amounts falling due after more than one year - - -
______ ______ ______
1846624 1349100 3195725
______ ______ ______
17. Movement in funds 1st Incoming Resources 31st
April Resources Expended Transfers Revaluation March
2022 2023
£ £ £ £ £ £
Unrestricted funds
General funds 58109 296644 (237934)
5630		 - 122449
Property revaluation reserve 1722010 - - - - 1722010
Designated funds
Partnership Fund 7768 27 - (5630)
-		 2165
______ ______ ______ ______ ______ ______
Total unrestricted funds 1787887 296671 (237934)
-		 - 1846624
______ ______ ______ ______ ______ ______
Restricted Funds
Building Fund 1306699 180 - - - 1306879
HBC Toddlers 1192 2161 (1425)
-		 - 1928
Pearson Legacy 40218 76 - - - 40294
______ ______ ______ ______ ______ ______
Total restricted funds 1348109 2417 (1425)
-		 - 1349101
______ ______ ______ ______ ______ ______
Total funds 3135996 299088 (239359)
-		 - 3195725
_ ______ ______ ______ ______ ______

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 one member still pays 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 £5630 was transferred from the Partnership Fund to the General Fund. 

15