2022-12-31-accounts

Charity registration number 1132335

Company registration number 07028173 (England and Wales)

VICTORIA BAPTIST CHURCH TRUST

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

VICTORIA BAPTIST CHURCH TRUST

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees	Revd C Short
	Mr R J Kirk
	Mrs P A Burr
	Ms L A Craggs
	Miss F Hall
	Mr S D J Jupp
	Mr S D Francis	(Appointed 22 February
		2023)
	Dr T A King	(Appointed 22 February
		2023)
Charity number	1132335
Company number	07028173
Principal address	Eldon Road
	Eastbourne
	East Sussex
	BN21 1UE
Registered office	Eldon Road
	Eastbourne
	East Sussex
	BN21 1UE
Independent examiner	Alastair Towler BFP ACA DChA
	18 Hyde Gardens
	Eastbourne
	East Sussex
	BN21 4PT

VICTORIA BAPTIST CHURCH TRUST

CONTENTS

	Page
Trustees' report	1 - 3
Statement of Trustees' responsibilities	4
Independent examiner's report	5
Statement of financial activities	6
Statement of financial position	7
Statement of cash flows	8
Notes to the financial statements	9 - 22

VICTORIA BAPTIST CHURCH TRUST

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2022

The trustees present their annual report and financial statements for the year ended 31 December 2022.

The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the Church's Memorandum and Articles of Association, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)”

Objectives and activities

The Church's objects are:

a) the advancement of the Christian faith according to the Bible and the principles of the Baptist denomination.

b) the church may also advance education, relieve poverty and carry out the other charitable purposes in the United kingdom and other parts of the world.

The vision statement of the church is Victoria Baptist Church exists to see Jesus Christ honoured in Eastbourne and beyond (as noted in 2020 Trustees Report). Through the year the church made significant strides in recovering from the COVID pandemic. A wide variety of other gatherings and organisations also meet and operate under the auspices of Victoria Baptist Church in line with its vision and objects.

The trustees have paid due regard to the Public Benefit guidance issued by the Charity Commission in deciding what activities the Church should undertake.

Achievements and performance

Victoria Baptist Church Trust provides a large number of activities which fall within its purpose and aims. As its Governing Document describes, the purpose of the church is the advancement of the Christian faith in accordance with the principles of the Bible and the practices of the Baptist Denomination. These aims are carried out both by a staff team and volunteers serving the church in a variety of different ways.

During the year online services, Bible studies, prayer meetings and youth and children's work were provided. We continued the work of the Christians Against Poverty Debt Centre and advanced the ‘Community Fridge’ ministry, reducing food waste and alleviating food poverty. The pastoral visiting team continued to grow and serve the church, Alpha courses took place and the emphasis on the development of Life Groups within the church continued.

Other organisations such as men's and women's fellowships also continued to provide support to additional sources of worship and teaching which complement the Sunday services. Other projects complement the ministry of the church with events for young people in the locality including Boys' and Girls' Brigades. The church also has a team who provide voluntary marshalling services for many community events in Eastbourne and beyond.

The church continues to fulfil its objectives by supporting local initiatives for the relief of suffering and poverty (i.e. Networx) and a variety of mission projects.

People in the locality continue to make extensive use of the church's buildings and facilities as possible. Many of these began to return after the pandemic and others such as Rock Choir joined them.

The church staff continue to administer and direct this operation under the leadership of the Core Leadership Team. Many volunteers, who give of their time and expertise, are involved in the delivery of these ministries.

Gifts and donations are given to organisations and individuals in accordance with the objectives of the church The church continues to be supported largely by the sacrificial giving of its members and attendees. Gifts and donations in the year are shown in Note 8.

• 1 -

VICTORIA BAPTIST CHURCH TRUST

TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2022

Financial review

The trust recorded a deficit of £21,089 across all funds in the year. This compares with a surplus of £34,145 last year. There was a decrease in regular giving from church members this year, which together with gift aid amounted to a £26,456 decrease in the year.

Reserves policy

A lot of the church's funds are held in land and buildings, which are utilised to carry out the Church's purposes. It is the policy of the church to hold an adequate level of cash and readily accessible reserves deemed sufficient to meet likely and unexpected capital expenditure needs. Subject to any donor's wishes, restricted funds are generally held to meet specific purposes or capital projects.

The policy of the church is that a Charity Reserve Fund equivalent to 3 months expenditure should be maintained, holding cash which has not been designated for any specific purpose. The trustees consider that reserves of £82,000 will ensure that, in the event of a significant drop in funding, they will be able to continue the Church's current activities, while consideration is given to ways in which additional funds may be raised. This amount has been designated, leaving £140,474 in unrestricted reserves. Of these unrestricted funds, general unrestricted funds represent free reserves of £19,930.

Victoria Baptist Church Trust faced two unusual financial challenges in 2022. The first was the sharp increase in heating costs resulting from the war in Ukraine. The second was a repair of an area of the roof which cost c.£35,000. That the church was able to absorb these costs, while extending other areas of mission is a testament to the generosity of the church family.

Any excess reserves above the minimum level shown above represent funds which need to be accumulated for major capital projects & building works in the future.

Investment policy

The majority of monies are invested in deposit accounts with financial institutions, the Baptist Union and M&G Charifund Income Units. The Trust seeks to obtain the highest possible returns consistent with a cautious attitude to risk and short term availability of such monies. The Trust has for a number of years held M & G Charifund Units, which are subject to stock market fluctuations. These investments are easily realisable and the church is satisfied with the performance of these investments.

The trustees have considered the major risks to which the Church is exposed in particular those related to the operations and finances of the Church. They are satisfied that appropriate systems are in place to mitigate the Church's exposure to such risks, to safeguard the assets of the Church and should prevent and/or detect fraud and other irregularities.

Structure, governance and management

The Church is a company limited by guarantee and incorporated on the 23rd September 2009 and commenced activities on the 1 January 2010 with the transfer of assets and funds from Victoria Baptist Church, an unincorporated charity. Victoria Baptist Church is affiliated to the Baptist Union Corporation, who are sole custodian trustees of the church land, church buildings and two manse properties on behalf of the church.

Full legal and administrative information is displayed on the flysheet to the accounts. The trustees, who are also the directors for the purpose of company law, and who served during the year were:

Mr K A Pamphilon (Resigned 3 October 2022) Revd C Short Mr R J Kirk Mrs P A Burr Ms L A Craggs Miss F Hall Mr S D J Jupp Mr S D Francis (Appointed 22 February 2023) Dr T A King (Appointed 22 February 2023)

• 2 -

VICTORIA BAPTIST CHURCH TRUST

TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2022

The church is managed on a day to day basis by the ministerial team in liaison with Church pastoral and administrative staff. The oversight and leadership of the church is governed by the core leadership team who are the trustees.

The trustees are appointed by the church at a general meeting as dictated by the governing document and appropriate training is given to the trustees.

None of the trustees, other than the Senior Minister, has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £10 in the event of a winding up.

These accounts have been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006.

The Trustees' report was approved by the Board of Trustees.

Revd C Short

Trustee Dated: 7 August 2023

• 3 -

VICTORIA BAPTIST CHURCH TRUST

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 DECEMBER 2022

The trustees, who are also the directors of Victoria Baptist Church Trust for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Church and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

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 UK 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 concern basis unless it is inappropriate to presume that the Church will continue in operation.

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the Church and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Church and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

• 4 -

VICTORIA BAPTIST CHURCH TRUST

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF VICTORIA BAPTIST CHURCH TRUST

I report to the trustees on my examination of the financial statements of Victoria Baptist Church Trust (the Church) for the year ended 31 December 2022.

Responsibilities and basis of report

As the trustees of the Church (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).

Having satisfied myself that the financial statements of the Church are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the Church’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

Since the Church’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.

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

• 1 accounting records were not kept in respect of the Church as required by section 386 of the 2006 Act; or

• 2 the financial statements do not accord with those records; or

• 3 the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act 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 Standard applicable in the UK and Republic of Ireland (FRS 102).

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

Alastair Towler BFP ACA DChA

18 Hyde Gardens Eastbourne East Sussex BN21 4PT

Dated: 24 August 2023

• 5 -

VICTORIA BAPTIST CHURCH TRUST

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 DECEMBER 2022

Unrestricted Restricted funds funds 2022 2022 Notes £ £ Income from: Donations and legacies 3 311,935 - Charitable activities 4 4,388 - Other trading activities 5 20,056 - Investments 6 6,518 - Total income 342,897 - Expenditure on: Charitable activities 7 355,710 - Net gains/(losses) on investments 12 (8,276) - Net movement in funds (21,089) - Fund balances at 1 January 2022 243,563 234,942 Fund balances at 31 December 2022 222,474 234,942	Total Unrestricted Restricted funds funds 2022 2021 2021 £ £ £ 311,935 346,278 - 4,388 4,859 - 20,056 12,426 - 6,518 5,790 - 342,897 369,353 - 355,710 346,640 - (8,276) 11,432 - (21,089) 34,145 - 478,505 209,418 234,942 457,416 243,563 234,942	Total 2021 £ 346,278 4,859 12,426 5,790
		369,353
		346,640
		11,432
		34,145 444,360
		478,505

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

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

• 6 -

VICTORIA BAPTIST CHURCH TRUST

STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2022

Notes Fixed assets Property, plant and equipment 14 Investments 15 Current assets Trade and other receivables 16 Cash at bank and in hand Current liabilities 17 Net current assets Total assets less current liabilities Income funds Restricted funds 18 Unrestricted funds Designated funds 19 General unrestricted funds	2022 £ 14,483 69,503 83,986 (20,918) 202,544 19,930	£ 299,181 95,167 394,348 63,068 457,416 234,942 222,474 457,416	2021 £ 13,092 21,081 34,173 (10,748) 174,811 68,752	£ 311,637 143,443
				455,080 23,425
				478,505
				234,942 243,563
				478,505

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2022.

The Trustees' have responsibility for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing accounts which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to accounts, so far as applicable to the company.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

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

The financial statements were approved by the Trustees on 7 August 2023

Revd C Short Trustee

Company Registration No. 07028173

• 7 -

VICTORIA BAPTIST CHURCH TRUST

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2022

Notes Cash flows from operating activities Cash generated from operations 21 Investing activities Purchase of property, plant and equipment Purchase of investments Proceeds from disposal of investments Investment income received Net cash generated from/(used in) investing activities Net cash used in financing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year	2022 £ (4,681) - 40,000 6,518	2021 £ £ £ 6,585 49,552 (11,573) (50,000) - 5,790 41,837 (55,783) - - 48,422 (6,231) 21,081 27,312 69,503 21,081

• 8 -

VICTORIA BAPTIST CHURCH TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

1 Accounting policies

Charity information

Victoria Baptist Church Trust is a private company limited by guarantee incorporated in England and Wales. The registered office is Eldon Road, Eastbourne, East Sussex, BN21 1UE.

1.1 Accounting convention

The financial statements have been prepared in accordance with the Church's Memorandum and Articles of Association, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The Church is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the Church. 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 investments and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the Church has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds include donations and other incoming resources receivable or generated for the objects of the Church without further specified purposes and are available as general funds.

Designated funds are unrestricted funds earmarked by the Trustees for particular purposes.

Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure that meets these criteria is charged to the fund together with the appropriate management and support costs.

1.4 Income

Income is recognised when the Church is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Voluntary income and donations are accounted for as received by the Church. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the Church has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

Grants are recognised in full in the Statement of Financial Activities in the year in which they are receivable.

Monies received are allocated to the period to which they relate. Any income which is received but relates to a subsequent period is deferred and subsequently released in the relevant accounting period.

• 9 -

VICTORIA BAPTIST CHURCH TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

1 Accounting policies

(Continued)

1.5 Expenditure

Resources expended are recognised in the period to which the costs relate.

The main cost centres are:

• Charitable activities - which cover the running expenses of the charity including church & office operations.

• Building costs - which include the cost of running the main church building and the two manses,

• Donations - including gifts to local organisations and activities held at the church (Boys and Girls Brigade).

• Governance costs - include those costs associated with fulfilling the charity's statutory obligations.

The charity is not registered for VAT and therefore all expenditure is recorded inclusive of non-recoverable VAT.

Governance costs are allocated 100% to direct charitable activities in relation to the running of the church and its operations.

1.6 Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

The church premises at Eldon Road, Eastbourne are held on trust by The Baptist Union Corporation Limited. There is no record of original cost and as such, this property is not reflected in the financial statements.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings 0% (see below) Fixtures, fittings & equipment 5 or 10 years straight line

The manses at 35 Baldwin Avenue and 90 Longland Road, Eastbourne are held on trust by The Baptist Union Corporation Limited. The Church has a beneficial interest in these properties and they are, therefore, included in the financial statements. They are stated at cost and are not subject to depreciation. It is the trustees' policy to maintain all the buildings to such a standard that their residual value is not less than cost at any given time.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

All equipment costing in excess of £250 is capitalised.

1.7 Non-current investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

The Fixed asset investments included in the accounts represent a listed investment portfolio. The year end balance is restated to its Open Market Value with any increase/decrease in value shown in the Statement of Financial Activities.

• 10 -

VICTORIA BAPTIST CHURCH TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

1 Accounting policies

(Continued)

1.8 Impairment of non-current assets

At each reporting end date, the Church reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.9 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.10 Financial instruments

The Church has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Church's balance sheet when the Church becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including trade and other payables and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Church’s contractual obligations expire or are discharged or cancelled.

• 11 -

VICTORIA BAPTIST CHURCH TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

1 Accounting policies

(Continued)

1.11 Employee benefits

If material, the cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the Church is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

The Church contributes to defined contribution pension schemes on behalf of some staff. The contributions payable for the year are charged in the financial statements as part of Staff costs.

1.12 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

The Church pays pension contributions for its Minister to the Baptist Ministers Pension Trust Limited, which is a final salary defined benefit scheme, which is not contracted out of the State second pension. The scheme is a multi-employer scheme and it is not possible to identify the assets and liabilities of the scheme which are attributable to the church. Therefore, in accordance with FRS102 Section 28, the scheme is accounted for as a defined contribution scheme.

1.13 Stock

The Church considers that the small value of stocks in hand at each year end is insignificant and no adjustment has been made to the Financial Statements to reflect these items.

1.14 Taxation

The Church is not liable to taxation on its activities.

2 Critical accounting estimates and judgements

In the application of the Church’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3 Donations and legacies

	**Unrestricted **	Unrestricted
	funds	funds
	general	general
	2022	2021
	£	£
Donations and gifts	288,710	297,586
Legacies receivable	23,225	35,429
Government Grant income - Furlough payments	-	13,263
	311,935	346,278

• 12 -

VICTORIA BAPTIST CHURCH TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

4 Charitable activities

	Church	Church
	operations	operations
	2022	2021
	£	£
Sales within charitable activities	4,388	4,859

5	Other trading activities
		**Unrestricted **	Unrestricted
		funds	funds
		general	general
		2022	2021
		£	£
	Other ancillary trading income	20,056	12,426
6	Investments

	**Unrestricted **	Unrestricted
	funds	funds
	general	general
	2022	2021
	£	£
Interest receivable	6,518	5,790

• 13 -

VICTORIA BAPTIST CHURCH TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

7 Charitable activities

Church operations Supporting the worldwide church £ £ Staff costs 170,250 - Depreciation and impairment 17,137 - Other direct costs 33,359 - Rent and rates 10,641 - Insurance costs 5,569 - Light and heat 34,121 - Repairs and renewals 25,098 - Telephone costs 2,357 - Printing, postage, stationery and computer costs 4,671 - Sundry and other expenses 6,319 - 309,522 - Grant funding of activities (see note 8) - 43,238 Share of governance costs (see note 9) 2,950 - 312,472 43,238 Analysis by fund Unrestricted funds - general 312,472 43,238 312,472 43,238 For the year ended 31 December 2021 Unrestricted funds - general 311,642 34,998 311,642 34,998	Total £ 170,250 17,137 33,359 10,641 5,569 34,121 25,098 2,357 4,671 6,319 309,522 43,238 2,950 355,710 355,710 355,710	Total 2021 £ 182,926 16,200 40,073 8,090 5,223 16,602 28,112 2,060 5,005 4,849
		309,140 34,998 2,502
		346,640
		346,640
		346,640

• 14 -

VICTORIA BAPTIST CHURCH TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

8 Grants payable

	Supporting	Supporting
	the	the
	worldwide	worldwide
	church	church
	2022	2021
	£	£
Grants to institutions:
Baptist Missionary Society	13,500	13,500
Baptist Union Home Mission	14,004	14,004
George Ebdy	1,277	600
Essential Christian Mission (Lebedyn)	13,386	-
Salvation Army	250	-
Boys and Girls Brigades	821	1,373
Living Life	-	200
Bramber Bakehouse	-	1,000
Old Town Churches	-	42
Other	-	4,279
	43,238	34,998

9 Support costs

Support costs Governance costs £ £ Accountancy - 2,950 - 2,950 Analysed between Charitable activities - 2,950	2022 £ 2,950 2,950 2,950	2021 Basis of allocation £ 2,502 Governance 2,502 2,502

Accountancy fees listed above includes payments to the Independent Examiner for accountancy and Independent Examination services. Approximately £1,320 of this fee can be attributed to the Independent Examination (2021: £1,200).

• 15 -

VICTORIA BAPTIST CHURCH TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

10 Trustees

None of the trustees (or any persons connected with them) received any remuneration during the year.

Travel and other direct expenses totalling £1,381 (2021: £2,192) were reimbursed to two trustees in the year.

Other expenses totalling £104 were reimbursed to two trustees and their related parties (2021: two trustees and their related parties were reimbursed £517). These were operating expenses paid for by the trustees on behalf of the trust, in carrying out its activities.

Total donations received from the trustees amounted to £18,411 during the year (2021: £23,836). This excludes any cash donations which were paid into the weekly offerings as these are not separately identifiable. One related party of a trustee also donated £25.

Trustees Indemnity insurance was purchased during the year, at a cost of £653.

The Minister acts as one of the church's trustees in accordance with the Trust deed and received remuneration of £30,661 and other benefits in respect of his services as Minister, including the provision of manse accommodation free of charge.

There were no other disclosable related party transactions.

11 Employees

The average monthly number of employees during the year was:

Charitable activities Employment costs Wages and salaries Social security costs Other pension costs	2022 Number 10 2022 £ 153,739 7,533 8,978 170,250	2021 Number 9
		2021 £ 164,633 8,948 9,345
		182,926

Total aggregate remuneration paid to key management personnel during the year was £55,519 (2021: £64,323).

Pension contributions, into defined contribution pension schemes, amounted to £8,978 (2021: £9,345).

In addition to the paid members of staff, many volunteers give their time and expertise in the delivery of our ministries.

There were no employees whose annual remuneration was more than £60,000.

• 16 -

VICTORIA BAPTIST CHURCH TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

12 Net gains/(losses) on investments

	Unrestricted Unrestricted	Unrestricted Unrestricted
	funds	funds
	general	general
	2022	2021
	£	£
Revaluation of investments	(5,613)	11,432
Gain/(loss) on sale of investments	(2,663)	-
	(8,276)	11,432

13 Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

14 Property, plant and equipment

Freehold land and buildings Fixtures, fittings & equipment £ £ Cost At 1 January 2022 234,942 155,874 Additions - 4,681 At 31 December 2022 234,942 160,555 Depreciation and impairment At 1 January 2022 - 79,179 Depreciation charged in the year - 17,137 At 31 December 2022 - 96,316 Carrying amount At 31 December 2022 234,942 64,239 At 31 December 2021 234,942 76,695	Total £ 390,816 4,681
	395,497
	79,179 17,137
	96,316
	299,181
	311,637

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VICTORIA BAPTIST CHURCH TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

15 Fixed asset investments

	Listed
	investments
	£
Cost or valuation
At 1 January 2022	143,443
Valuation changes	(8,276)
Disposals	(40,000)
At 31 December 2022	95,167
Carrying amount
At 31 December 2022	95,167
At 31 December 2021	143,443

Fixed asset investments revalued

The investments are included at their Open Market Value at the year end. The historic cost of the portfolio is £102,293 (2021: £145,595).

16 Trade and other receivables

Amounts falling due within one year: Trade receivables Other receivables Prepayments and accrued income Current liabilities Other taxation and social security Other payables Accruals and deferred income	2022 £ 312 9,866 4,305 14,483 2022 £ 4,131 1,700 15,087 20,918	2021 £ 1,220 - 11,872
		13,092
		2021 £ 4,091 4,239 2,418
		10,748

17 Current liabilities

Other payables consist of balances relating to the Events Team.

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VICTORIA BAPTIST CHURCH TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

18 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

			Movement		Movement
			in funds		in funds
		Balance at	Incoming	Balance at	Incoming	Balance at
	1	January 2021	resources	1 January 2022	resources	31 December
						2022
		£	£	£	£	£
Buildings fund		234,942	-	234,942	-	234,942

• Buildings Fund shows the cost of the church's two manse properties.

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VICTORIA BAPTIST CHURCH TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

19 Designated funds

The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:

Balance at 1 January 2021 r £ Allocations fund 6,962 Bookstall fund 2,437 Catering fund 125 Charity reserve fund 70,000 Investment fund 25,681 Maintenance fund 1,996 Projects fund 2,000 Events fund 379 Fellowship/Family fund 6,473 Mission fund 297 Functional Fixed Assets fund - Specified Gifts Fund 18,585 134,935	Movement in funds Incoming esources Resources expended Transfers Revaluations, gains and losses Balance at 1 January 2022 r £ £ £ £ £ 1,019 (6,349) 10,200 - 11,832 1,009 (359) - - 3,087 - (4,104) 3,980 - 1 - - 12,000 - 82,000 - - - 11,432 37,113 - (26,738) 24,750 - 8 35,429 - (37,429) - - 2,125 (1,416) - - 1,088 5,124 (2,350) - - 9,247 4,137 (28,104) 39,960 - 16,290 - - - - - 2,450 (13,432) 6,542 - 14,145 51,293 (82,852) 60,003 11,432 174,811	Movement in funds Incoming esources Resources expended £ £ - - - - - - - - - - - - - (15,618) - - 6,272 (6,403) 5,282 (49,773) - - - - 11,554 (71,794)	Transfers Balance at 31 December 2022 £ £ (11,832) - (3,087) - (1) - - 82,000 (37,113) - (8) - 41,008 25,390 (1,088) - - 9,116 50,000 21,799 64,239 64,239 (14,145) - 87,973 202,544	Transfers Balance at 31 December 2022 £ £ (11,832) - (3,087) - (1) - - 82,000 (37,113) - (8) - 41,008 25,390 (1,088) - - 9,116 50,000 21,799 64,239 64,239 (14,145) - 87,973 202,544
				202,544

During 2022, it was decided to reduce the number of designated funds to six:

• The Charity Reserve Fund, holding 3 months running costs in line with the Charity Commission recommended reserves policy.

• The General Fund from which the day to day running and maintenance costs of the church are met.

• The Mission Fund to which are allocated income and expenditure for home and overseas mission activities (i.e. CAP, Community Fridge, BMS, Home Mission, Charitable Gifts etc.).

• The Projects Fund to provide for specific projects (including building projects, ministry development and equipment upgrades).

• The Functional Fixed Assets Fund is where the value of equipment already purchased is held and not available for use.

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VICTORIA BAPTIST CHURCH TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

20 Analysis of net assets between funds Unrestricted funds Designated funds Restricted funds 2022 2022 2022 £ £ £ Fund balances at 31 December 2022 are represented by: Property, plant and equipment - 64,239 234,942 Investments 95,167 - - Current assets/(liabilities) (75,237) 138,305 - 19,930 202,544 234,942	Total Unrestricted funds Designated funds Restricted funds 2022 2021 2021 2021 £ £ £ £ 299,181 76,695 - 234,942 95,167 - 143,443 - 63,068 (7,943) 31,368 - 457,416 68,752 174,811 234,942	Total 2021 £ 311,637 143,443 23,425
		478,505

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VICTORIA BAPTIST CHURCH TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

21	Cash generated from operations	2022	2021
		£	£
	(Deficit)/surpus for the year	(21,089)	34,145
	Adjustments for:
	Investment income recognised in statement of financial activities	(6,518)	(5,790)
	Loss on disposal of investments	2,663	-
	Fair value gains and losses on investments	5,613	(11,432)
	Depreciation and impairment of property, plant and equipment	17,137	16,200
	Movements in working capital:
	(Increase)/decrease in trade and other receivables	(1,391)	13,506
	Increase in trade and other payables	10,170	2,923
	Cash generated from operations	6,585	49,552

22 Analysis of changes in net funds

The Church had no debt during the year.

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