STREATHAM A P T I S T C H U R C H STREATHAM BAPTIST CHURCH ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2024 Charity number 1132313
STREATHAM BAPTIST CHURCH Contents Page Referen and Administrative Details Trustees, Report Independent Auditors, Report Statement of Financial Activities 8-10 11 Balance Sheet 12 Notes to the Financial Statements 13-26
STREATHAM BAPTIST CHURCH REFERENCE AND ADMINISTRATIVE DETAILS Name and address: Streatham Baptist Church, 22 Lewin Road, Streatham, London SW16 6JR Leaders (Trustees) of Streatham Baptist Church: The Leaders of Streatham Baptist Church during the year and at the date the report was approved were.. Rev Nathan Lee McGuire Joint Associate Minister- Missional Inducted to Streatham Baptist 0310912017 Resigned 3010912023 Inducted to Streatham Baptist 1210512019 Rev Christopher Randolph André-watson Interim Minister Mrs Jacqueline Wood Ritter Elected Leader Re-elected on 2610112020 for 2nd 3-year temi, which was extended to end on 3010912023. Term ended 3010912023 Elected 2611112020 for a 3-year term. Term ended 2511112023 Ms Jung Khang Elected Leader Mr Stephen Joseph Elected Leader Elected 2611112020 for a 3-year term. Term ended 2511112023 Elected 3010912021 for 2 3-year term, Re*lected 2610912024 for a 3-year term Elected 2910912022 for a 3-year term Ms Suzann Douglas Elected Leader Mrs Jennifer Mary Dowlen Elected Leader Ms Zeinab Mantau Elected Leader Elected Leader & Treasurer Elected 3010312023 for a 3-year term Elected 3010312023 for a 3-year term Mr Keith Charles Foster Ms Jessica Ogunbiyi Mrs Diane Moore Elected Leader Elected 1810112024 for a 3-year temi Elected 1810112024 for a 3-year term Elected 1810112024 for a 3-year term Elected 1410312024 for a 3-year term Elected 2310512024 for a 3-year term Elected 2310512024 for a 3-year term Elected Leader Mr Peter Grant Elected Leader Mrs Marilyn Holloway Mr Richard Ritter Elected Leader Elected Leader Ms Jackie Dale Elected Leader Bank: Natwest Bank plc, 54 Streatham High Road, London, SW16 1 XE Auditors: JCS Accountants, 5 Robin Hood Lane, Sutton, Surrey, SM12SW Properties: The London Baptist Property Board, Unit C2, 15 Dock Street, London, E18JN holds the titles to our properties.
STREATHAM BAPTIST CHURCH CHURCH LEADERS, REPORT FOR THE YEAR ENDED 31 MARCH 2024 Purpose and Activities The principal purpose of the Church is the advancement of the Christian faith according to the principles of the Baptist denomination. The Church may also advance education and carry out other charitable purposes in the United Kingdom andlor other parts of the world. This is achieved by.. Providing an environment in which Christians can worship God and grow in their faith in the Lord Jesus Christ. Actively encouraging Christians to develop their faith in the Lord Jesus Christ. Actively promoting the Gospel of the Lord Jesus Christ locally, regionally, nationally and internationally. Undertaking social works in the local communty which will assist in meeting the needs of the community and bring the Gospel to those who might not otherwise receive it. Streatham Baptist Church Leaders Can confirm that they are aware of the Charity Commission guidance on public benefit and have complied with their duty to have due regard to the Charity Commission's guidance on public benefit (PB1. PB2 and PB3) when reviewing the Church's objectives, planning its activities and exercising any powers or duties to which the guidance is relevant. The Church's main activities which it carries out to fulfil its charitable purposes for the public benefit, are.. Regular public worship, prayer, Bible study, preaching and teaching" Baptism as defined by the Baptist Union of Great Britain'5 Declaration of Principle., Regular observance of the Communion of the Lord's Supper. Evangelism and Mission, locally, regionally, nationally and internationally- The teaching, encouragement. welcome and inclusion of all people regardless of their background" Expressing God's love to the community through the mission of the Church., Nurture and growth of Christian disciples. Education and training for Christian and community servi, Giving and encouraging pastoral care" Supporting and encouraging charitable social action at home and abroad., Encouraging relationships with and supporting Baptists and other Christians., and Raising finance to further the Purpose by reiving donations, grants and loans. Achievements and Performance Introduction by Chris André-watson, Interim Minister In part of his farewell message to the disciples in John's gospel (John 15.8), Jesus compared his relationship with them, to a grapevine and its branches. The fruitfulness of
STREATHAM BAPTIST CHURCH CHURCH LEADERS, REPORT FOR THE YEAR ENDED 31 MARCH 2024 CONTINUED the branches, he stated, was dependent on the intimate and deep connection with the vine. Apart from him, the vine, they could do nothing. But the fruitfulness of the vine is also dependent on God the Father being the gardener and pruning the vine to generate more gr0h. It may seem counterproductive to cut something for growlh, but l am reminded of a foresl walk I took whilst on retreat several years ago and coming across a sign warning that some forestry work was taking place. The sign explained that to ensure the future growth and health of the forest some of the more mature trees had to be felled. This was because the sheer size of their canopy blocked light from getting to the forest floor, thus preventing new trees from emerging. Those two illustrations of deep connection to Jesus and pruning to ensure fruitfulness were applicable to the church as we focused on our relationship with him and one another. The 2024 motto text is based on the church vision and values of being committed to a lifestyle of worship. "God is spirit, and his worshippers must worship in the Spirit and in truth." John 4:24 As we focused on the text Sin the beginning of the year it has been very encouraging to see church members living out this commitment through their setvice. Ministry and Mission The Church is committed to both local and global mission. During 2023124 we continued to engage the local community through the weekly provision of English classes and the Friendly Club for the elderly. The Church is a member of Love Streatham {https."/lwww.lovestreatham.org/) which seeks to support the homelessness in our area and to support community activities, counselling and poverty relief. During the winter months the Church specifically provided "The Vine" as a weekly meal and social evening for homeless people in Streatham. Specific outreach initiatives were held for Easter 2023 (8 April 2023) and Easter 2024 (30 March 2024). These included streel evangelism and a range of activities at the church including a barbecue, activities for children and opportunities for spiritual reflection. Following the Easter 2024 events it was decided that the Church would start a local mission group to go out into the cotnmunity on a monthly basis. This began to function later in 2024. Globally, the Church has continued to support a range of missionaries and Christian projects in the UK and in Peru, Ghana and India. Turkic Belt Ministries, which had been supported by the Church since its inception was dissolved as a charity in September 2023 and the Church ceased its support to this work. During the next year the Church is looking to refresh its international mission strategy and to develop new links for the future. Leadership and Administration The appointment of the new Senior Minister remains the main recruitment priority. Despite two rounds of interviews no appointment was made with the Church voting against the appointment of the latest proposed candidate in November 2023.
STREATHAM BAPTIST CHURCH CHURCH LEADERS, REPORT FOR THE YEAR ENDED 31 MARCH 2024 CONTINUED The 'Wayforward' Steering Group which oversees the appointment prosS, produced an updated version of the Church profile which reflected changes in church life. The profile was resubmitted in April 2024 to the Pastoral Vacancy list of Baptists Together, the website which helps process ministerial appointments for churches. The past year has been challenging for the Staff Team with the departure of our remaining Associate Minister. Responsibilities left by this departure were redistributed amongst the remaining Staff Team, Trustees, and Volunteers. It has been encouraging to see Members stepping up to fulfil these roles. We particularly give thanks for four new Trustees to oversee. Human Resources Safeguarding Mission and Discipleship Enabling. Further work has been done to help the Church to move towards becoming a Charitable Incorporated Organisation. Good progress has been made and the work remains on track. The Church has been kept informed of developments. Challenges and Opportunities With a reduced Staff Team, and the Senior Minister post still vacant, the Church faces some significant challenges. The children's and youth ministry are areas of particular concern for the coming year. However, Church Members have risen to the challenge by offering their support and willingness to serve. The breakdown of our church boilers in December 2023 and the necessity to find a heating system that is fit for purpose and addresses the heating problems experienced in the past added to the challenges we are already facing. But whilst this will have major cost implications, the Church is in the fortunate position to be able to draw on substantial reserves. We all give thanks to God that through the sacrificial giving of Members and his ongoing provision, there continue to be sufficient finan5 to meet the Church's needs. Financial Review Unrestricted Funds The Church adopted a baland budget for the year. Offerings and donations, although bolstered by generous giving in the last month, were well below budget. Fortunately, greater income from hire of premises, together with larger interest payments from bank deposits and a large legacy, helped to offset some of this shortFall. Expenditure was considerably lower than budgeted, principally due to neither a new full- time Senior Minister, nor a part-time Children's Worker, both of which had been allowed for in the budget. being appointed. and Rev Nathan McGuire leaving at the end of September. Due to a complete boiler breakdown in December, our energy cost was considerably below budget. As the boilers and heating system need to be replaced, the Members agreed on 18th January 2024 to move £40,000 into Premises Reserves to fund in part the new system. In addition, considerable efforts were also made to minimise costs. Overall, income exceeded expenditure by £122,368 before transfers and gainsllosses.
STREATHAM BAPTIST CHURCH CHURCH LEADERS, REPORT FOR THE YEAR ENDED 31 MARCH 2024 CONTINUED Designated Funds Designated Funds comprise unrestriGted funds that have been set aside by the Trustees for particular purposes. The aim and use of each Designated Fund is set out in Note 11.2 to the accounts. Restricted Funds Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors, or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. Most of these funds exist to manage the financial transactions of self-funding groups operating as part of the ministry and mission of the Church. The purpose and use of each restricted fund is set out in Note 11.3 to the accounts. Reserves The Church's Reserves Policy states the reasons why the Church should hold reserves, the target level for reserves and monitoring and management of the reserves. This policy enables the Church's Trustees to properly manage the Church's finances, including safeguarding the Church's assets and responsibly managing the Church's financial risks in accordance with their legal responsibilities. At the year end, the charity had total funds of £5,358.027, of which £5,175,280 was unrestricted, £135,746 was designated and £47,001 was restricted. The Net Current Assets at the end of the financial year were £442,619. The actual level of free reserves (using the Charity Commission definition) held at 31 March 2024 was £272,035 (£214,958 in March 2023). This is above the target level of £117,988 (one-third of the 2023-2024 Unrestricted Funds Budget) (£133,520 in 2022-23) because of less spending during the aftemiath of lockdown and the smaller than anticipated Staff Team. In setting the level of the reserves the Trustees considered key financial risks in relation to the continuity of the operation of the Church's charitable activities, including maintenance of buildings, and unexpected cash-flow disruption. The designated and restricted funds detailed in Notes 11.2 and 11.3 to the accounts are not included in these free reserves. Fundraising Other than publicly inviting an offering at each worship service, we do not engage In persistent fundraising or intrusive fundraising practices with any of our donors, including vulnerable people, and we never have private or coercive discussions with individuals about their giving. Our fundraising praCtIS are ethical and in accordance with Biblical principles and our Fundraising Policy. No complaints were received about our fundraising practices. Risk Management The Leaders of Streatham Baptist Church acknowledge their responsibilities as Trustees to ensure that the Church has appropriate risk management processes in place for the identification, assessment and management of risks fad by the Church. They strategically oversee a Risk Management Framework which is reviewed annually and intended to embed a planned and effective approach to risk identification, prevention and management across all areas of the Church's activities. One Trustee takes particular
STREATHAM BAPTIST CHURCH CHURCH LEADERS, REPORT FOR THE YEAR ENDED 31 MARCH 2024 CONTINUED responsibility for overseeing key aspects of risk management and works with the Church Manager to ensure that key risk management documents are regularly reviewed, updated as needed, and implemented. This Trustee provides regular reports, advice and information updates to the Trustees as a whole to help them discharge their responsibilities for risk management effectively. The Trustees identified a niimber of risk areas to be addressed during 2023-24: and approved a plan to address them. Following this, the Trustees approved several new and revised risk management policies during the year, including finan policies and HR policies, and updated the Data Protection Policy. Food Safety Policy and Risk Management Policy. In addition, Trustees revised some governance documents, undertook trustee training and approved a further risk management plan for 2024-25, which includes strengthening the Trustee team and review of more policies and procedures. The Church's Leaders, as Trustees, are satisfied that major risks have been reviewed and systems or procedures have been or are being established in order to manage those risks. The Trustees remain alert to any emerging risks and seek to address these by identifying and prioritising key actions as well as monitoring and evaluating existing systems of control or mitigation measures. Structure, Governance and Management The Church was established in its present form by a Deed of Trust on 31 December 1875, which was enrolled at the High Courts of Justice (Chanry Division) on 8 March 1876. The Church was an EXpted Charity until 30 September 2009, when, following changes in Charity Law, a new Constitution was passed by the Church Meeting on 24 September 2009 and the Church was registered as a Charity (number 1132313) on 23 October 2009. A further amended Constitution was passed by the Church Meeting on 6 March 2022 to accommodate online Church Meetings due to the Covid-19 pandemic. The Church is also a member of the Baptist Union of Great Britain and of the London Baptist Association, both of which are Registered Charities.
STREATHAM BAPTIST CHURCH CHURCH LEADERS, REPORT FOR THE YEAR ENDED 31 MARCH 2024 CONTINUED Statement of Church Leaders, l Trustees. responsibilities The Church Leaders are the Charity Trustees and are therefore responsible for the general oversight of the Church and for its strategic direction. The present structure of Church Leadership was introduced on 1 September 1996. Rev Nathan McGuire and Rev Christopher André-watson were appointed Leaders of the Church on account of their ministerial appointments with the Church. The Church Leaders I Trustees are appointed by the Church Members. Meeting. The Trustees are responsible for preparing the Trustees, Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom GenerallyAccepted Accounting Practice). The law applicable to charities in England and Wales requires that the Trustees must not approve the financial statements for each financial year unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of the income and expenditure of the charity for that period. In preparing these financial statements, the Trustees are required to.. select suitable accounting policies and then apply them consistently; observe the methods and principles in the Charities SORP: make judgements and estimates that are reasonable and prudent., state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements" and prepare the financial statements on the going COnM basis unless it is inappropriate to presume that the charity will continue in business. 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, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence fortaking reasonable steps forthe prevention and detection of fraud and other irregularities. Signed on behalf of Leaders of Streatham Baptist Church on Rev, hristopher Randolph André-watson I nterim M inister es Foster reasurer
INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF STREATHAM BAPTIST CHURCH Opinion We have audited the financial statements of Streatham Baptist Church (the "Charity") for the year ended 31 March 2024 which Gomprise the Statement of Financial Activities, the Balance Sheet, and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102.. The Financial Reporting Standard applicable iii tlie UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice) In our opinion, the financial statements- give a true and fair view of the state of the Charity s affairs as at 31 March 2024 and of its incoming resources and application of reSoUrS for the year then ended., have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice,. have been prepared in accordan with the requirements of the Charities Act 2011. Basis for opinion We conducted our audit in accordance with Intemational Standards on Auditing (UK) (ISA5 (UK) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK. including the FRC'S Ethical Standard and the provisions available for small entities and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statements, we have concluded that the trustees. use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed. we have not identified any material uncertainties relating to events or conditions that. individually or collectively, may cast significant doubt on the Charity's ability to continue as a going concern for a period of at least 12 months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. Other information The other infomiation comprises the information included in the annual report, including the trustees, report, other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent othemise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If,
INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF STREATHAM BAPTIST CHURCH based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Matters on which we are required to report by exception In the light of the knowledge and understanding of the Charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustee5' report. We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 requires us to report to you if. in our opinion- adequate and proper accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or the financial statements are not in agreement with the accounting records and returns., or certain disclosures of trustees, remuneration specified by law are not made", or we have not received all the information and explanations we require for our audit. Responsibilities of the trustees As explained more fully in the trustees. responsibilities statement, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement. whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the Charity's ability to continue as a going concern, disclosing: as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the Charity or to cease operations, or have no realistic alternative but to do so. Auditor's responsibilities for the audit of the financial statements We have been appointed as auditor under section 145 and report in accordance with the Act and relevant regulations made or having effect thereunder. Our objectives are to obtain reasonable assuran about whether the financial statements as a whole are free from material misstatement. whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assuran is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.. Based on our understanding of the charity, we identified that the principal risks of non- compliance with laws and regulations related to employment. financial reporting legislation and health and safety regulations and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities Act 2011.
INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF STREATHAM BAPTIST CHURCH We assessed the SUSptibl1itY of the charity's financial statements to material misstatement, including obtaining an underslanding of how fraud might occur. by making enquiries of management, considering the internal controls in place and discussion amongst the engagement team. We determined that the principal risks were related to valuation of fixed asset properties, management bias in accounting estimates, presentation of separately disclosed items and management override of controls. In response to the risks identified we designed procedures which included, but were not limited to reviewing property valuations, challenging significant accounting estimates, agieeing financial statement disclosures to underlying supporting documentation, identifying and testing journal entries, reviewing Trustees, minutes and evaluating the charity's intemal controls. There are inherent limitations in the audrt procedures described above. The more removed that laws and regulations are from financial transactions. the less likely it is that we would become aware of non-compliance. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: wMv.frc.org.uklauditorsresponsibilities. This description forms part of our auditor's report. Use of our report This report is made solely to the Charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the Charity's trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law. we do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed. Jacob Cavenagh & Skeet 5 Robin Hood Lane Statutory Auditor Sutton Chartered Accountants Surrey Date: 2q 2024 SM12SW Jacob Cavenagh & Skeet is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006. 10-
4•ffjW comn(o ioNr£JcisfDo oino CTiCCINO ¢3) ro CN Z5 i ¢r) co i) Z5 ¢D¢Da)fDO O¢Q¢7)0C (NO0¢ COO*LOff)V WJ a)Tr4CD YJW i ¢Jfo a) rcqp CYJOZ cu èc CLtn (u O ty 0> o) Ca U o£tLLLLL >_ X£SSnOOOO
STREATHAM BAPTIST CHURCH BALANCE SHEET AS AT 31 MARCH 2024 Notes As at 3110312024 As at 3110312023 Fixed assets Tangible assets 4,915,408 4,917.046 4,915,408 4,917,046 Current assets Debtors Cash at bank and in hand 65,264 392,258 25,623 302,938 457,522 328,561 Current liabilities Creditors: Amounts falling due in one year (14.903) (9,948) Net current assets 442,619 318,613 Total assets less current liabilities 5,358,027 5,235,659 Provision for liabilities and charges Net assets 10 5 358 027 5,235 659 Represented by Funds Unrestricted - General fund 11.1 5,175.280 5,119,840 Designated funds 11.2 135.746 87,940 Restricted funds 11.3 47.001 27.879 Total funds 5,358,027 5,235,659 Signed on behalf of Leaders of Streatham Baptist Church on Rev ristopher Randolph André-watson I nterim Minister Mr Keith C Tre 12-
STREATHAM BAPTIST CHURCH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 1. Accounting policies Charity information Streatham Baptist Church is an unincorporated charity (No 1132313). The Church is based at 22 Lewin Road. Streatham, SW16 6JR. 1.1. Basis of preparation These accounts have been prepared on an accruals basis (under the historic cost convention as modified by the revaluation of land and property) and in accordance with the Charities Act 2011, the Charities Statement of Recommended Practice (Charities SORP (FRS 102)) and the Financial Reporting Standard 102 (FRS 102). The Church has taken advantage of the exemption in the SORP from the requirement to produce a cashflow statement on the grounds that it does not qualify as a larger charity. The Church meets the definition of a public benefit entity under FRS 102. The accounts are prepared in pounds sterling rounded to the nearest pound. 1.2. Going concern At the time of approving the financial statements. the Church Leaders have a reasonable expectation that the Church has adequate reSoUrS to continue in operational existence for the foreseeable future. Thus, the Church Leaders continue to adopt the going concern basis of accounting in preparing the financial statements. The Church is working towards becoming a Charitable Incorporated Organisation. The Trustees have made an application to the Charity Commission in the 2024-25 financial year. 1.3. Fund Accounting The funds held by the Church are either: Unrestricted general funds - these are funds which can be used in accordance with the Church's objects at the discretion of the Trustees. Designated funds these are funds set aside by the Trustees out of unrestricted general funds for specific future purposes or projects. Restricted funds these are funds that can only be used for particular restricted purposes within the objects of the Church. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. 1.4. Income Donations and other income (including legacies) are included in the Statement of Financial Activities (SOFA) when the charity has entitlement to the income, it is probable the income will be received and the amount of income receivable can be reliably measured. 1.5. Expenditure This is included in the Statement of Financial Activities on an acGruals basis, inclusive of all VAT (which is not recoverable)- Expenditure which is directly attributable to specific activities has been included in these cost categories. Where significant costs are attributable to more than one activity, they have been apportioned across the cost categories on a basis consistent with the use of these resources. 13-
STREATHAM BAPTIST CHURCH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 1. Accounting policies (continued) 1.5. Expenditure {continued) All expenditure is accrued as soon as a liability is considered probable, discounted to present value for longer term liabilities and has been classified under headings that aggregate all costs related to the category. Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them. Governance costs are those costs associated with meeting the constitutional and statutory requirements of the charity and include accountants, fees and costs linked to the strategic management of the charity. These have been allocated directly to charitsble expenditure. 1.6. Grants Paid Grants and donations are accounted for when paid over. or when awarded, if that award creates a binding obligation on the church. 1.7.Pensions The church pays contributions to the Baptist Pension Scheme which is a defined contribution scheme. Contributions were paid in the period in which they were due. 1.8. Taxation The Church is not liable for tax on ils charitable activities. 1.9. Tangible fixed assets Freehold property is stated at fair value at the balan sheet date and the gain or loss in the year is reflected in the Statement of Financial Activities. Freehold land is not depreciated. Where the carrying value of freehold buildings is in excess of the residual value. no depreciation is charged. Other fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation. Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases= Church, Office. and Kitchen Equipment incl. Computers >£500 33.3 % Fixtures (e.g. boilers. noticeboards) 10.O'/D 1.10. Debtors Grants receivable and other debtors are included at the settlement amount due. Prepayments are valued at the amount prepaid. 1.11. Short-term deposits Short-term deposits include cash and short term highly liquid investments with a maturity of beMeen three and e1ve months from the date of the opening of the deposit. 14-
STREATHAM BAPTIST CHURCH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 1.12. Cash at bank and in hand Cash at bank and in hand includes cash and short-temi highly liquid investments with a short maturity of three months or less. Deposits are held at call with banks, Baptist Union, and London Baptist Property Board. 1.13. Creditors and provisions Creditors and provisions are reGognised when the charity has a present obligation arising from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are recognised at their settlement amount. Provisions have been calculated at the best estimate of the settlement amount and then discounted back to present value at the reporting date. 1.14. Financial instruments The Gharity only ha5 financial assets and liabllllles of a kind thai qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. 15-
p) ( T) tn T)W tn E5DtdO O ¢Dc o o (rj CTJ (N ry ¢r• D( i r 3 i (O Tt cm G 5ts10 TJU£dfD ¢D Cfj O 00
STREATHAM BAPTIST CHURCH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 3. Expenditure Charitable activities 2024 2023 Unrestricted Designated Restricted funds funds funds Total Total Ministry Costs Staff costs Other ministry costs Volunteers Staff training 51.583 3,045 2,737 374 57.739 51,583 106,211 4,534 7,230 2,737 1,243 374 4.551 59.228 119.235 1.489 1.489 Mission Staff costs Mission grants Youth work Other mission costs 7,909 9,100 1,871 2.797 21.677 7,909 12,580 5,943 4,308 30,740 7,330 15,776 8,894 6,817 38,817 3,480 4.072 1,511 1,511 7,552 Upkeep of Premises Staff costs Utilities Church running costs Church and manse repairs Depreceation 24,241 15,704 7.590 30.381 1.638 79,554 24,241 15,704 7,906 54,515 1.638 16 104.004 22,710 15,197 7.747 39,638 2.004 87.296 300 24.134 24.434 Office Staff Staff costs 63.368 63,368 60.029 Office running costs Office Supplies Telephone IT Contract. Hardware and Software Subscriptions & Licences Communications 4.664 3,826 8,170 4,664 3,826 8,170 3,257 3,359 6,731 6,002 1.711 24,373 6.002 1,711 24,373 6.587 2,632 22.566 Governance costs and other expenditure Audit Fees Bank charges Legal fees Accounts support 5.940 973 961 2.400 10,274 5,940 973 961 2,400 10,274 6,000 1,030 7,030 Total expenditure 256,985 25,945 9.057 291,987 334,973 17-
STREATHAM BAPTIST CHURCH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 4. Net income l (expenditure) Net income l (expenditure) includes depreciation of £1.638 (2.(X)4 in 2023). 5. Staff costs 2024 2023 Wages and salaries Social security costs Pension costs Travel Housing Telephone Book Allowance Other Total 123.005 5.397 12,086 425 5,036 888 114 150 147 101 185,486 11,945 15,508 461 4.328 677 276 300 218 981 The average monthly number of remuneraled Staff members (FTE) during the year was: 2024 2023 Ministry and Pastoral Mission Premises Administration Total 0.25 0.25 3.65 5.75 No employees were paid over £60.000 (2023: None). 18-
STREATHAM BAPTIST CHURCH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 6. Tangible fixed assets Freehold property Church Equipment Office Equipment Kitchen Equipment Total Cost I Valuation At 1 April 2023 Additions 4.915,000 137,057 32,070 23,591 5,107,718 Disposals Revaluation (20,988) {9,949} (4,122) (35.059) At 31 March 2024 4,915,000 116,069 22,121 19,469 5,072,659 Depreciation and impairment At 1 April 2023 Depreciation charged in the year Eliminated in respect of disposals 135,011 32,070 23,591 190,672 1,638 1,638 20,988 9.949 4.122 35,059 At 31 March 2024 115 661 19.469 157 251 Carrying amount At 31 March 2024 4,915,000 408 4,915,408 At 31 March 2023 4,915,000 2.046 4.917,046 The Church Buildings were valued at £3,500,000 al 31 st March 2023 by independent chartered surveyors (Land Commercial Surveyors Ltd) based on fair value The Trustees consulted Land Commercial Surveyors Ltd and. based on their feedback, concluded that the value at 31 st March 2024 should be unchanged from that at 31st March 2023, i.e. £3,500,000. The Church also owns properties in Christian Fields (the Manse) and Lewin Road. Christian Fields was revalued at 31 st March 2023 at £815,000 by independent chartered surveyors (Gateway Surveyors} based on fair value. Lewin Road was revalued at 31 st March 2023 at £600.000 by independent chartered surveyors {Gateway Surveyors) based on fair value. The Trustees consulted the Nationwide House Price Index which indicated an increase in price for both properties of 1.60/0 between Q12023 and Q12024. They decided that given this immaterial change it would be poor use of the charity's funds to pay for further formal valuations after only twelve months and concluded that the value of each propety at 31st March 2024 should be unchanged from 31st March 2023, i.e. Christian Fields £815,000 and Lewin Road £600.000. The original cost of the properlies is not known. 19-
STREATHAM BAPTIST CHURCH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 7. Debtors 2024 2023 Amounts falling due within one year: Income tax recoverable (Gift Aid} Other debtors Prepayments and accrued income 14,375 40.853 10,036 65.264 15,118 180 10,325 25,623 8. Creditors 2024 2023 Amounts falling due within one year: Accruals and deferred income 14,903 9,948 9. Provisions for liabilities and charges 2024 2023 Liability at 1 April Deficiency contributions paid in year Interest Cost Actuarial {gains)Ilosses on re-measurement of liability Liability at 31 March (See note 12 in respect of pension liabilities.) 22,700 (1,744) 659 (21,615) 10. Analysis of net assets between funds 2024 General Fund Designated Funds Restricted Funds Total Fund balances at 31 March 2024 are represented by". Tangible assets Current assets Liabilities 4,903.245 286,512 (14,477) 12,163 123,715 (132 4,915.408 457,522 {14,903 47,295 294 5,175.280 135.746 47,001 5,358,027 2023 General Fund Designated Funds Restricted Funds Total Fund balances al 31 March 2023 are represented by: Tangible assets Current assets Liabilities 4.904,882 228.493 13.535 12.164 73,739 2,037 4,917,046 328,561 9.948 26,329 1,550 5,119,840 87,940 27,879 5,235,659 -20-
STREATHAM BAPTIST CHURCH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 11. Funds 11.1 Unrestricted General Funds Balance at 1 April 2023 Income Expenditure Transfvr5 Gainslllosses) Balance at 31 March 2024 General fund 5.119,840 348.925 1256.985) {36.5)1 136.500} 5,175.280 5.119.840 348.925 1256.9851 5,175,280 Balance * 1 April 2022 Income Expenditure Transfer5 Gainslllosses) Balance at 31 March 2023 General fund 5,139.710 345.978 {299.926} {5,922) {60.oooi 160,0001 5,119,840 5.139,71 r) 345.978 {299.9261 {5.9221 5.119.840 11.2 Designated Funds Balance at 1 April 2023 Balance at 31 March 2024 Income ExFenditure Transfers Christian Fields 16.420 28.980 112,8491 115.0001 17,551 EquipmentAcuual 15.750 5.000 20.750 Events 105 Fees - Paid lo People for FutionS Harvest Offenng 2(K) 240 (3001 {1,0971 140 50 1.047 Photocopier ArUar Premises Reserve 7.500 1.500 9,DOO 41.235 15,4171 45,000 80.818 Christmas 30 {4141 Lewin Road 6.650 6.600 15,868} 7,382 87.940 37.251 25.945 36,500 135.746 Balance at 1 April 2022 Balance at 31 March 2023 Income Expenditure Transfers Christian Fields 1,947 31,2¢X) {1,7271 115.0001 16.420 Equipment AGGrual 11.750 4.000 15,750 Events 105 105 Fees - Paid to People for FunclJ"olls 150 700 16501 200 Harvest Offering Photocopier Accrual Premises Reserve 50 2,039 (2,0391 50 6.lJ)O 1,500 7,500 31.716 17.153) {3701 16,672 41.235 Christmas 30 Lewin Road 11.840 6.600 {11.7) 6,650 63.558 40.939 3.729 7,172 87.940 21
STREATHAM BAPTIST CHURCH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 11.2 Designated Funds (continued) Christian Fields The purF)ose of this fund is to manage the rental income and property management outgoings of this property during our interregnum period. Surplus funds will be returned to the General Fund- Photnc.opier and Equipment Accrual Funds The purpose of these funds is to facilitate planned purchases of equipment e.g.. photocopier accrual" Events- This fund contains monies collected for specific events (e.g. fares for travel to an external event) Hire Funds - The purpose of these funds is to enable good management of hire fees and deposits held on a temporary basis. Harvest Offering- This fund receives the annual Harvesl Offering prior to distribution to the charities which have been selected to benefit that year Premises Reserve- The purpose of this fund is to enable major repairs and renovations lo Church premises to be well managed without regard to the financial year end, Christmas This fund contains the Christmas Day Collection which is donated as a Christmas gift to missionaries associated with the Church- Lewin Road - The purpose of this fund is to manage Ihe rental income and property management outgoings of this mixed-use property. Surplus funds are returned to the General Fund which provided the resources for substantial renovation on this property. 11.3 Restricted Funds Balance at 1 April 2023 Balance at 31 March 2024 Income Expenditu Transfers Conferences 1.552 1100) 1,452 Jelly Tots 1.284 1.284 LDne Parent Men's Meebngs 80 Mi5SIDn 750 {7901 25 Specified Gifts Women's meeb.ngs Young Adults Missional Community 6,575 22.145 12.689) (2501 26.031 434 800 475 (8871 388 Youth 1,337 1,337 Friendly Club 15.502 4.809 14.3411 15,970 27,879 28.179 9.057 47.001 -22-
STREATHAM BAPTIST CHURCH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 11.3 Restricted Funds (continued) Balance at 1 April 2022 Balance at 31 March 2023 Income Expenditure Transfers confenCeS 2.120 15681 1,552 Jelly Tols Lone Parent 1.284 1.284 183 11831 Men's Meets'ngs Mission 139 1591 80 725 16631 {1,863} 65 Specified Gifts Women's Meetings Young Adults Missional Community Youth 5,628 4.060 {1,2501 6,575 684 1.702 100 11.0021 800 1.300 1.250 11.2131 1,337 Friendly Club 15.666 5,603 15,7671 15,502 28.709 11.738 11.3181 1.250 Conferences- This fund accounts for all church conferen$ income and expenditure., Jelly Tots This fund accounts for all the financial transactions of this caring adults and toddler group 27,879 Lone Parent- This fund accounts for the financial transactions of the self-funding Parenling Alone Group, which aims to support and encourage lone parents. Men's Meetings - This fund accounts for all the financial transactions of the Men of Destiny Group which is self-funding and meets with the aim of providing support and encouraging spiritual growth and fellowship for the men of the Church through various events., Missionary Fund The purpose of this fund is to ensure that all gifts (and any associated lax recovery) given by Church Members and friends to missionary charities and mission trips specified by them are passed on to the specified beneficiaries. Specified Gifts- The purpose of this fund is to ensure that all gifts (and any associated tax recovery) given by Church Members and friends to charities and other good causes specified by them are passed on to the specified beneficiaries. After contacling donors in 2022 £1,250 given lo support people during Covid was transferred to the General Fund- Women's Meetings- This fund accounts for all the financial trans3Ctions of the Women of Purpose Group which is self-funding and meets wilh the airn of encouraging spiritual growth and fellowship among the women of the Church., Young Adults - This fund accounts for the financial transactions of On the Edge, which 15 a self- funding group that aims to meet the spiritual needs of people aged 18-35 who may find il difficult to engage in conventional church expressions- Youth Holidays - This fund accounts for all the financial transactions associated with holidays and other outings that will benefit Ihe spiritual, physical and emotional well-being of those attending Church youth activities, Friendly Club - This fund accounts for all the financial transactions of this weekly club which is self- funding and aims to provide activities for older persons which stimulate their physical, mental and spiritual life in a supportive and friendly almospheie. 23-
STREATHAM BAPTIST CHURCH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 12 Pensions Defined Benefit Scheme The Church is a p2rticipaling employer in the Baptisl Pension Scheme ("Ihe Scheme"), which is a separate legal entity administered by the Pension Trustee (Baptisl Pension Trust Limited}. The assets of the Scheme are held separately from those of the Employer and the other participating employers. The Scheme, previously known as the Baptist Ministers. Pension Fund, started in 1925, but was closed to future accru81 of defined benefits on 31 December 2011. Prior to this date the main benefit provided through the Defined Benefit (DB) Plan was a pension of one eightieth of final minimum pensionable income for each year of pensionable service together with additional pension in respect of premiums paid on Pensionable Income in excess of Minimum Pensionable Income. From January 2012. pension provision is being made through the Defined Contribution (DCI Plan within the Scheme. In general, members pay 8% of their Pensionable Income and employers pay 6% of members, Pensionable Income into individual pension accounts. which are operated and managed on behalf of the Pension Trustee by Broadstone Corporate Benefils Ltd. In addition, the employer pays a further 410 of Pensionable Income to cover Death in Service Benefits. administration cost5. and an associated insurance policy which provides income protection for Scheme members if they are unable to work due to long-term incapacity. This income protection policy has been insured by the Baptist Union of Great Britain with Aviva Limited. The Scheme is considered to be a multiemployer scheme as described in Section 28 of FRS 102. Because it is not possible to attribute the Scheme's assets and liabilities to specific employers, the Scheme is accounted for as if it was a defined contribLStion scheme. Actuarial valuation at 31 December 2019 Aformal valuation of the DB Plan as at 31 December 2019 was carried out by a professionally qualified Actuary using the Projected Unil Method. At the valuation date the market value of Ihe DB Plan assets was £298 million, whilst Ihe level of assets needed to pay benefits was £31 Sm, giving a deficit of £18 (equivalent to a past service funding level of 940/.). The Church and the other participating employers in the DB Plan are collectively responsible for funding this deficit. The key financial assumptions underlying the valuations were as follows= RPI price inflation assumption CPI price inflation assumption Minimum Pensionable Income increases (CPI plus 0.5(/ko pa) 3.20 % pa Assumed investment returns Pre-retirement Post retiremenl 1.70/opa Deferred pension increases Pre April 2009 3.200/0 pa Post April 2009 2.500/0 pa Pension increases Main Scheme pension 2.70 % pa -24-
STREATHAM BAPTIST CHURCH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 12 Pensions (continued) Post-retirement mortality in accordance with 80 % of Ihe S3NFA and S3NMA tables, with allowance for future improvements in mortality rates from 2013 in line with the CMI 2019 core projections, wilh a long- term annual rate of improvement of 1.75 % for rnales and 1.50/. for females, with the core smoothing parameter and with additional initial mortality improvement faclorA=0.5 /0. An acluarial valuation of the DB Plan within the Scheme was due to take place not later than 31 December 2022. Recove lan In addition to the contributions to the DC Plan set out above, where a valuation of the DB Plan reveals a deficit the Trustee and the Council agree to a rate of deficiency contributions from churches and other employers involved in the DB Plan. On 30th June 2022 the Baptist Pension Scheme signed an agreement with the insurance company Just Group ("Just") to secure DB Plan members, pension benefits. Just are now providing financial backing for all pensions provided through the Scheme's DB Plan and following this transaction, the Scheme no longer has a shortfall. An updated Recovery plan was then signed in August 2022 under which recovery contributions from each participating employer in Ihe DB Plan reduced to £1 per month from August 2022. Exit of Strea ham Ba tist Church from the DB Sch Following payment of £1.000 to cover expenses the Church received a letter dated 15 November 2023 from the Trustee of the DB Scheme to confirm the Church's exit from the Scheme.. "Exit of Streatham Baptist Church fmm the Baptist Pension Scheme" 'Further to previous discussion. this letter is to confirm." With effeGt from 4th September 2023. Strealham Baptist Church has given written notice that it shall cease to participate in Ihe non-segregated section of the Scheme, Streatham Baptist Church no longer employs any contributing members of Ihe non- segregated section of the Scheme. Streatham Baplist Church is not in an active Period of Grace or Deferred Debt Arrangement and has not agreed to a Flexible Apportionment Arrangement,. If the scheme had had an overall 'buy-out deficit" on that date, this would mean Ihal an exit deDf would be payable.. However, the Tnistee is satisfied that there was no buyout deficit in the Scheme at that date i.e. the value of the Scheme's assets was greater than the value of its liabilities. calculated in accordance with the requirements of the Occupational Pension Schemes (Employer Debt) Regulations,. The Trustee has received payment of expenses of £1,000 in relation to Streatham Baptist Church exit from the non-segregated section of the Scheme. "I can Gonfirm that Streatham Baptist Church has paid all outstanding deficiency recovery payments to the Scheme. As such Streatham Baptist Church has no further liability to the non- segregated section of the Scheme.- Defined Contribution Scheme Since April 2017 all eligible Slaff have been automatically enrolled in the Defined Contribulions {DC) Scheme, which is not contracted out of the State Second Pension. In March 2024, five members of Staff were enrolled in the Scheme. The Church makes conlributions to this DC Scheme. The assets of the Scheme are held separately from those of the Church in independently administered fijnds. The pension cost and charge represent contributions payable by the Church into these funds and amounted to £12,086 {2023.. £15,508) -25-
STREATHAM BAPTIST CHURCH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 13 Related party transactions Two Trustees who are both ministers received payment as they are paid members of staff of the charity. Section 23 of the Church Constitution states that,"Notwithstanding that a Minister or Ministers appoinled by the Church are Charity Truslees Ihey will be entitled to be paid an agreed remuneration or stipend out of the general funds of the Church." The amounts below include pension contributions, travel & mileage, mobile phones, book allowance, accommodation for Rev Nathan McGuire and housing allowance for Rev Rachel Waitt from April 2022- February 2023. 2024 2023 Rev Chris André-watson Rev Rachel Waitt Rev Nathan McGuire 29,230 27,668 40,812 17.817 47,047 95.976 Total remuneration of Key Management Personnel. which comprises the total remuneration of the above Trustees, amounted to £47,047 (2023.. £95,976). In addition, thirteen Trustees {2023.' eight) including ministers received expenses totalling £98 (2023: £341) in respect of training and books. The Trustees gave unrestricted donations tolalling £46.250 {2023= £33,385) to the charity. There were no other related party transaclions_ -26-