Hornchurch Baptist Church
Report and Accounts Year ended 31 March 2021
1 Lamb's Passage, London EC1Y 8AB www.stewardship.org.uk
HORNCHURCH BAPTIST CHURCH
LEGAL AND ADMINISTRATIVE DETAILS
FOR THE YEAR ENDED 31 MARCH 2021
ADDRESS FOR CORRESPONDENCE
21 North Street Hornchurch Essex RM11 1RL
GOVERNING DOCUMENT
Constitution adopted 17 September 2008 as amended on 14 June 2015
CHARITY REGISTRATION NUMBER 1132574 TRUSTEES RESPONSIBLE FOR Rev Vivienne Alexander (Minister) MANAGING THE CHARITY Akwasi Addai-Diawuo Carole Dooley (resigned November 2021) Jean Hart Mark McConnell Iphii Amadi (appointed August 2020) Lesley Mason (appointed August 2020) Suzanne Humphries (appointed August 2020)
CUSTODIAN TRUSTEES London Baptist Property Board Ltd. BANKERS National Westminster Bank plc INDEPENDENT EXAMINER Jaimée Young Stewardship 1 Lamb's Passage LONDON EC1Y 8AB
INDEX
Page 1 Legal and Administrative Details Pages 2-4 Trustees' Report Page 5 Independent Examiner's Report Page 6 Receipts and Payments Account Page 7 Statement of Assets & Liabilities Pages 8-10 Notes to the Accounts
Page 1
HORNCHURCH BAPTIST CHURCH
REPORT OF THE TRUSTEES
FOR THE YEAR ENDED 31 MARCH 2021
The Trustees have pleasure in submitting the Report and Accounts for the year ended 31 March 2021.
Objects of the charity
The charity, which is a church, is governed by a trust deed and is constituted as a trust. The principal purpose 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 and/or other parts of the world. The Trust seeks to provide information about Jesus Christ to enable enquirers to make an informed choice about accepting Christ as their personal Saviour and to provide a church family to welcome, nurture and support its members.
The Church is not a building, but a gathering of ordinary people of different ages and backgrounds, whose lives have been changed by Jesus Christ, the Son of God. The New Testament reveals the Church as a community of people, properly taught and cared for, who by loving and serving Jesus Christ, are also committed to love and care for each other and to bring a blessing to the area in which they lived.
Hornchurch Baptist Church, its trustees and members, are committed to the restoration of those New Testament principles. It is not alone in this, it is one of many churches in the area, country and all over the world that is rediscovering the excitement of knowing Jesus Christ. The vision is to see the people of Hornchurch and its surrounding area come into this experience of knowing Jesus as their Lord, Saviour and Friend.
Summary of the charity's main activities and achievements
In planning the activities the Trustees have applied the guidance on public benefit issued by the Charity Commission.
Our Pastor has now been with us for almost seven years. She continues to preach regularly and has sought to lead the church further into renewal through sermons and deepening worship and its responses within the fellowship. Our Pastor continues to reach out to non-Christians who attend various groups within the church and to form friendships and bonds with people she encounters through church meetings.
Stepping Stones, our weekly meeting for babies/young children continues to meet in term time and continues to be a successful ministry. The church has found that it enables relationships to begin to develop very early on, as parents/carers begin their parenting experiences, and start to form relationships with people from the church who staff the sessions. A hope and an aim within the church is also for those same children to then become involved in the weekly youth outreach work for teenage children as they grow and develop. Within these settings longer term relationships can develop, and hopefully they also sow seeds so that these families can begin to enter into a personal relationship with Jesus Christ Himself.
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The church continues to support medical work in Nigeria as one of our members pioneers life-saving treatment for premature babies in that country. We also support the charity Stand by Me, instigated by a church member who works for the charity. We continue to support two of our church members who work in Kosovo for the Baptist Missionary Society, and we continue to support two BMS workers from Spain – a long affiliation with them lasting for nineteen years as they work in Southern Spain.
On 17[th] March 2020 the Church was closed, following the directives from BUGB, based on the government advice regarding lockdown due to COVID-19. All activities at the church ceased and the fellowship were kept in contact by email, letters and phone. Our Youth Worker and her husband set up a Mini-service on Sundays via YouTube, until they left in August 2020. Some members of the Diaconate also provided reflections for Sundays, which were posted or emailed to those members who had no access to Zoom. The Saturday Prayer Meeting continued using Zoom, and Deacon’s Meetings were also held in this way., as were some of the Church Member’s Meetings.
At the beginning of September 2020 Sunday Worship began in the church, following a risk assessment and following Government and BU directives. No other activities opened up and in November, again following Government and BU directives, Sunday Worship again ceased in the church and services were set up on Zoom and the message was posted or emailed to those who did not have Zoom.
Our Pastor was off sick for six months, and in September 2020 made a phased return to work and made a full return to work in March 2021.
On Easter Day 2021, the Church was re-opened for Sunday Worship and gradually some of the children’s work was re-opened.
Financial review
During the year income increased by £700, to £67,500, and expenditure decreased by £19,900, to £70,200. As a result the cash held by the charity decreased by £2,700, to £99,700, of which £98,600 is unrestricted and can be used for any charitable purpose.
Reserves policy
The trustees have determined that the charity should aim to hold unrestricted cash between £75,000 and £95,000 (which equates to about 12 months of expected unrestricted expenditure) so that the charity could continue to operate should income and / or expenditure vary adversely. At the year end, the charity held unrestricted cash of £98,600. Funds in excess of the policy are being held in anticipation of a continued shortfall of income to expenditure in the years ahead which will bring down the unrestricted reserves in accordance with the policy.
Governance
The policy and operating decisions of the charity rest with the Trustees who meet regularly to monitor the activities of the charity. The constitution governs the appointment of new Trustees who are elected from the Church membership and stand for a period of three years. They are subject to re-election for a further term of three years and then have a year where they stand down.
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Responsibilities of trustees
Charity law requires us as Trustees to prepare financial statements for each accounting year which record the receipts and payments of the charity for the year.
We are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and enable us to ensure that the financial statements comply with the Charities Act 2011.
We also have a responsibility to safeguard the assets of the charity and to take reasonable steps to prevent fraud or any other irregularities.
Approval
This report was approved by the trustees and signed on their behalf by:
A. Addai-Diawuo
Date: 22 January 2022
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INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF
HORNCHURCH BAPTIST CHURCH
I report to the trustees on my examination of the accounts of Hornchurch Baptist Church ('the charity') for the year ended 31 March 2021 on pages 6 to 10 following.
Responsibilities and basis of report
As the trustees of the charity you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the 2011 Act’).
I report in respect of my examination of the charity’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner’s statement
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect: 1. accounting records were not kept in accordance with section 130 of the 2011 Act; or
- the accounts do not accord with the accounting records.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in order to enable a proper understanding of the accounts to be reached.
Jaimée Young
Stewardship 1 Lamb's Passage LONDON EC1Y 8AB
Date: 25 January 2022
Page 5
HORNCHURCH BAPTIST CHURCH
RECEIPTS AND PAYMENTS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2021
| Notes Income receipts Donations Gift aid receipts Legacies Income from charitable activities Rental income Interest Other Total receipts Payments 2 3 Total payments Transfers between funds 5 Net movement in funds Cash funds as at last year end Cash funds at this year end A Net of receipts / (payments) before transfers Grants paid in relation to charitable activities undertaken by others Payments in relation to charitable activities undertaken directly |
General Designated Funds Funds £ £ 50,332 120 5,898 - - - - - 7,425 - 249 - - - 63,903 120 54,258 - 7,647 - 61,905 - 1,998 120 (4,968) - (2,970) 120 95,995 5,487 93,025 5,607 Unrestricted Funds |
Restricted Funds £ 3,345 143 - - - - - 3,488 5,759 2,500 8,259 (4,771) 4,968 197 919 1,115 |
Total 2021 £ 53,797 6,040 - - 7,425 249 - 67,511 60,017 10,147 70,164 (2,653) - (2,653) 102,401 99,748 |
Total 2020 £ |
|
|---|---|---|---|---|---|
| General Funds £ 50,332 5,898 - - 7,425 249 - 63,903 54,258 7,647 61,905 1,998 (4,968) (2,970) 95,995 93,025 |
|||||
| 43,941 10,637 25 1,261 9,950 748 259 |
|||||
| 66,821 | |||||
| 81,822 8,249 |
|||||
| 90,071 | |||||
| (23,250) - |
|||||
| (23,250) 125,651 |
|||||
| 102,401 |
The notes on pages 8 - 10 form part of these accounts.
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HORNCHURCH BAPTIST CHURCH
STATEMENT OF ASSETS AND LIABILITIES
FOR THE YEAR ENDED 31 MARCH 2021
| A Cash funds Cash at bank with immediate access Notice deposits Cash and unbanked offerings B Other monetary assets Gift aid due to charity PayPal C Liabilities Falling due within one year: Independent Examination BU pension deficit BU loan Creditors and accruals Falling due after one year: BU pension deficit BU loan Total |
General Designated funds funds £ £ 35,269 5,607 57,462 - 294 - 93,025 5,607 2,915 - 79 - 2,994 - 1,080 - 2,989 - 7,657 - - - 11,726 - 43,011 - 13,961 - 56,972 - 68,698 - Unrestricted Funds |
Restricted funds £ 1,115 - - 1,115 - - - - - - - - - - - - |
Total 2021 £ 41,992 57,462 294 99,748 2,915 79 2,994 1,080 2,989 7,657 - 11,726 43,011 13,961 56,972 68,698 |
Total 2020 £ |
|---|---|---|---|---|
| 19,906 82,220 275 |
||||
| 102,401 | ||||
| 3,760 - |
||||
| 3,760 | ||||
| 1,080 3,898 7,657 264 |
||||
| 12,899 56,102 22,483 |
||||
| 78,585 | ||||
| 91,484 |
The above loan is repayable in monthly instalments over 25 years and is repayable in full by February 2033.
| D Assets retained for charity's own use Freehold buildings Contents and equipment |
Value 2021 £ 544,469 97,199 641,668 |
Value 2020 £ |
|---|---|---|
| 526,776 95,761 |
||
| 622,537 |
The trustees have used insurance values as the trustees are unable to reliably estimate current values; insurance values may differ materially from current values.
The accounts were approved by the trustees and signed on their behalf
by date A. Addai-Diawuo 22 January 2022
The notes on pages 8 - 10 form part of these accounts.
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HORNCHURCH BAPTIST CHURCH
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 MARCH 2021
1 Accounting policies
The accounts have been prepared on a receipts and payments basis and comprise a statement that shows the charity's receipts and payments, a statement that summarises the charity's assets and liabilities and related notes. The accountancy profession have determined that only accounts prepared in accordance with applicable accounting standards present a 'true and fair' view and, as these receipts and payments accounts have not (and cannot) be prepared in accordance with accounting standards, these accounts do not present (and are not intended to present) a 'true and fair' view of the charity's financial activities and state of affairs.
General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity. Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. Restricted funds are donations which are to be used in accordance with specific restrictions imposed by donors; they include donations received from appeals for specific activities or projects.
| 2 Payments in relation to charitable activities undertaken directly Employment costs and expenses Note 4 Church Centre costs Manse and other property costs Mortgage repayments Administration and office costs Governance costs Equipment Costs Pastoral Church Away event Youth 3 Grants and gifts paid to others Organisations: Baptist Missionary Society Baptist Union EBA Organisations < £1,000 Individuals |
Unrestrict | Designated funds £ - - - - - - - - - - - - - - - - ed Funds |
Restricted Funds £ 5,680 - - - 52 - - - - 26 5,759 - - - 2,500 2,500 |
Total 2021 £ 39,932 4,986 5,520 7,657 845 1,050 - - - 26 60,017 2,518 2,668 961 4,000 10,147 |
Total 2020 £ |
|
|---|---|---|---|---|---|---|
| General funds £ 34,252 4,986 5,520 7,657 793 1,050 - - - - 54,258 2,518 2,668 961 1,500 7,647 |
||||||
| 49,591 11,190 7,007 7,657 1,719 874 628 600 463 2,093 |
||||||
| 81,822 | ||||||
| 3,017 2,139 1,468 1,625 |
||||||
| 8,249 |
4 Transactions with related parties
Vivienne Alexander served as church leader and was paid £26,492 [2020: £25,946] for serving in that capacity, not for serving as a trustee; these payments are permitted by the charity's governing document.
In addition the charity incurred expenditure totalling £3,078 [2020: £3,418] in respect of the provision of accommodation (which is customary for ministers) to Vivienne Alexander, who is a trustee so that they could better perform their duties.
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HORNCHURCH BAPTIST CHURCH
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 MARCH 2021
5 Movement of funds
| vement of funds General funds Designated funds Buildings fund Communion (hardship fund) Seniors Restricted funds Missionary Youth Fund Youth Pastor Total funds |
Balance at 31Mar2020 £ 95,995 5,117 - 370 101,482 - 919 - 919 102,401 |
Receipts £ 63,903 - 120 - 64,023 2,500 275 713 3,488 67,511 |
Payments £ (61,905) - - - (61,905) (2,500) (78) (5,680) (8,259) (70,164) |
Transfers £ (4,968) - - - (4,968) - - 4,968 4,968 - |
Balance at 31Mar2021 £ 93,025 5,117 120 370 |
|---|---|---|---|---|---|
| 98,633 | |||||
| - 1,115 - |
|||||
| 1,115 | |||||
| 99,748 |
The Mission Fund relates to funds donated for the purpose of supported missionaries.
6 The Baptist Pension Scheme
Background to the disclosure
The Church is an employer participating in a pension scheme known as the Baptist Pension Scheme (“the Scheme”), which is administered by the Pension Trustee (Baptist Pension Trust Limited). The Scheme is a separate legal entity and the assets of the Scheme are held separately from those of the Employer and the other participating employers. The Scheme comprises a Defined Contribution Plan and a Defined Benefit Plan.
The pension cost shown in the Receipts and Payments Statement comprises contributions to the Defined Contribution Plan and deficiency contributions to the Defined Benefit Plan (see below).
The Minister and Youth Worker are eligible to join the Scheme.
The Defined Contribution Plan
From January 2012, pension provision is being made through the Defined Contribution (DC) 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 Legal and General Life Assurance Society Limited. In addition, the employer pays a further 4% of Pensionable Income (or 3% if the employer is in the segregated DC section) to cover Death in Service Benefits, administration costs, and an associated insurance policy which provides income protection for Scheme members in the event that 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. Members of the Basic Section pay reduced contributions of 5% of Pensionable Income, and their employers also pay a total of 5%.
The Defined Benefit Plan
Benefits in respect of service prior to 1 January 2012 are provided through the Defined Benefit (DB) Plan within the Scheme. The main benefits for pre-2012 service were a defined benefit 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. The Scheme, previously known as the Baptist Ministers’ Pension Fund, started in 1925, but was closed to future accrual of defined benefits on 31 December 2011.
Actuarial valuation as at 31 December 2019
A formal valuation of the Defined Benefit (DB) Plan was performed at 31 December 2019 by a professionally qualified Actuary using the Projected Unit Method. The market value of the DB Plan assets at the valuation date was £298 million. The valuation of the DB Plan revealed a deficit of assets compared with the value of liabilities of £18 million (equivalent to a past service funding level of 94%). The next actuarial valuation of the DB Plan is due as at 31 December 2022.
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HORNCHURCH BAPTIST CHURCH
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 MARCH 2021
Recovery plan
A recovery plan dated 30 September 2020 has been agreed to make good the above deficit in assets. Therefore, in addition to the contributions to the DC Plan set out above, the Trustee and the Council agree to a rate of deficiency contributions from churches and other employers involved in the DB Plan.
It has been agreed that the standard rate of deficiency contributions from churches and other employers involved in the DB Plan will remain at previously agreed levels, increasing each year in line with increases in the Minimum Pensionable Income. The deficiency contributions are broadly based on 12% of Pensionable Income / Minimum Pensionable Income, reflecting each employer's contributions in March 2015. Some employers that were involved in the DB Plan for a short period pay lower contributions. The Trustee and the Council agreed a 50% reduction in all deficiency contributions payable between 1 July 2020 and 31 December 2020. The Recovery Plan envisages deficiency contributions continuing until June 2026.
In addition, the Baptist Union of Great Britain agreed to contribute a lump sum of £0.5m by 31 December 2020.
Key assumptions
The key assumptions underlying the actuarial valuation of the DB Plan were as follows:
| Defined Contribution Plan: Employee contributions Employer contributions Deficiency contributions to Defined Benefit Plan Payments made in the year Pension increases Deferred pension increases - Pre April 2009 - Post April 2009 - Post retirement Type of financial assumption RPI price inflation assumption CPI price inflation assumption Minimum Pensionable Income increases (CPI plus 0.75% pa) Assumed investment returns - Pre-retirement |
% pa 3.20 2.70 3.20 2.95 1.70 3.20 2.50 2.70 2021 £ 3,108 3,924 7,032 2,989 10,021 |
2020 £ 3,153 3,783 |
|---|---|---|
| 6,936 3,898 |
||
| 10,834 |
Basis for determining the DB plan pension liability
The pension liability disclosed in the Statement of Assets and Liabilities in respect of the DB Plan is based on an estimate of the amount that the charity would be required to pay should the charity decide to settle the debt immediately; the Baptist Pension Scheme (the ‘BPS’) have provided this estimate. The BPS is collecting deficit contributions monthly however these deficit contributions have not been calculated by reference to the charity’s share of the pension deficit and, based on the current schedule of contributions, it is possible that the sum of all future annual deficit contributions will be significantly less than the liability disclosed in the Statement of Assets and Liabilities. The charity does not foresee any circumstances that could result in immediate payment of the whole debt however the trustees believe that the BPS may ask the church to increase its contributions towards the deficit and therefore, to be prudent, they have chosen to disclose a liability for the employer debt in the Statement of Assets and Liabilities.
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