## Hornchurch Baptist Church
Report and Accounts Year ended 31 March 2022
1 Lamb's Passage, London EC1Y 8AB www.stewardship.org.uk
## **HORNCHURCH BAPTIST CHURCH**
## **LEGAL AND ADMINISTRATIVE DETAILS**
## **FOR THE YEAR ENDED 31 MARCH 2022**
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 Lesley Mason Suzanne Humphreys 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 2-3 Trustees' Report Page 4 Independent Examiner's Report Page 5 Receipts and Payments Account Page 6 Statement of Assets & Liabilities Pages 7-8 Notes to the Accounts
Page 1
## **HORNCHURCH BAPTIST CHURCH**
## **REPORT OF THE TRUSTEES**
## **FOR THE YEAR ENDED 31 MARCH 2022**
The Trustees have pleasure in submitting the Report and Accounts for the year ended 31 March 2022.
## **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 it’s 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 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, it’s 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 the experience of knowing Jesus as their Lord, Saviour and Friend.
## **Review of the charity's main activities and achievements**
To further the above objects and vision, the charity's main activities and achievements were as follows: Our Pastor has now been with us for almost eight 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
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.
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 twenty years as they work in Southern Spain.
Page 2
Following Government and BUGB directives the Church has remained open for Sunday Worship since Easter Day 2021. The Saturday morning Prayer Group remains on Zoom but all other meetings, Deacon’s and Member’s reverted back to face-to-face meetings. Gradually the various Children’s and Youth Groups re-opened and the Ladies Bible Study group has re-opened. Cornerstone, the group for older people has not re-opened due to several members passing away and others going into care homes.
There has been a drop in membership since 2020 as some members have been reluctant to return or have passed away. Others have relocated to other churches or are worshipping on-line.
In planning the activities the Trustees have applied the guidance on public benefit issued by the Charity Commission.
## **Financial review**
During the year income decreased by £18,400, to £49,100, and expenditure increased slightly by £400, to £70,600. As a result the cash held by the charity decreased by £21,400, to £78,300, of which £77,400 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 sufficient to cover between 9-12 months of operating costs so that the charity could continue to operate should income and/or expenditure vary adversely. For the coming year 2022-2023 this range was £48,750 - £65,000 and the charity held unrestricted cash of £77,400. 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. This policy will be reviewed on an annual basis
## **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.
## **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:
____________________________ PRINT NAME
Date:_______________________
Page 3
## **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 2022 on pages 5 to 8 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
2. 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:
Page 4
## **HORNCHURCH BAPTIST CHURCH**
## **RECEIPTS AND PAYMENTS ACCOUNT**
## **FOR THE YEAR ENDED 31 MARCH 2022**
||||||||Unrestricted|Funds|||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
||||||||General|Designated||Restricted|Total|Total|
||||||||Funds||Funds|Funds|2022|2021|
|||||||Notes|£||£|£|£|£|
|**_Income receipts_**|||||||||||||
|Donations|||||||28,992||120|395|29,507|53,797|
|Gift aid receipts|||||||7,541||-|-|7,541|6,040|
|Income from charitable activities|||||||-||-|49|49|-|
|Rental income|||||||11,925||-|-|11,925|7,425|
|Interest|||||||120||-|-|120|249|
|**_Total receipts_**|||||||48,577||120|444|49,140|67,511|
|**_Payments_**|||||||||||||
|Payments
in
relation
to
activities undertaken directly||||charitable||2|64,941||-|211|65,152|60,017|
|Grants
paid
in
relation
to
activities undertaken by others||||charitable||3|4,972||60|395|5,427|10,147|
|**_Total payments_**|||||||69,912||60|606|70,579|70,164|
|Net
of
receipts
transfers|/|(payments)|||before||(21,336)||60|(162)|(21,438)|(2,653)|
|Transfers between|funds|||||5|-||-|-|-|-|
|**Net movement in**|**funds**||||||(21,336)||60|(162)|(21,438)|(2,653)|
|Cash funds as at last||year|end||||93,025||5,607|1,115|99,748|102,401|
|**Cash funds at this year end**||||||A|71,689||5,667|953|78,310|99,748|
The notes on pages 7 - 8 form part of these accounts.
Page 5
## **HORNCHURCH BAPTIST CHURCH**
## **STATEMENT OF ASSETS AND LIABILITIES**
## **FOR THE YEAR ENDED 31 MARCH 2022**
|**A**
**Cash funds**
Cash at bank with immediate access
Notice deposits
Petty cash
**B**
**Other monetary assets**
Gift aid due to charity
PayPal
**C**
**Liabilities**
**Falling due within one year:**
Independent Examination
BU pension deficit
Note 6
BU loan
Creditors and accruals
**Falling due after one year:**
BU pension deficit
Note 6
BU loan
**Total**|General
Designated
funds
funds
£
£
13,927
5,667
57,580
-
183
-
**71,689**
**5,667**
2,124
-
-
-
**2,124**
**-**
1,080
-
1,364
-
7,657
-
554
-
10,654
-
-
-
6,887
-
6,887
-
**17,542**
**-**
Unrestricted Funds|Restricted
funds
£
953
-
-
**953**
-
-
**-**
-
-
-
-
-
-
-
-
**-**|Total
2022
£
20,547
57,580
183
**78,310**
2,124
-
**2,124**
1,080
1,364
7,657
554
10,654
-
6,887
6,887
**17,542**|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**|
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
2022
£
575,291
100,405
**675,696**|Value
2021
£|
|---|---|---|
|||544,469
97,199|
|||**641,668**|
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
The notes on pages 7 - 8 form part of these accounts.
Page 6
## **HORNCHURCH BAPTIST CHURCH**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 MARCH 2022**
## **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
Church Centre costs
Manse and other property costs
Mortgage repayments
Administration and office costs
Governance costs
Youth
**3**
**Grants and gifts paid to others**
Organisations:
Baptist Missionary Society
Baptist Union EBA
Organisations < £1,000
Individuals||Unrestrict|Designated
funds
£
-
-
-
-
-
-
-
-
-
-
-
60
60
ed Funds|Restricted
Funds
£
-
-
-
-
-
-
211
211
185
-
-
210
395|Total
2022
£
37,869
5,950
11,633
7,657
752
1,080
211
65,152
1,471
1,286
900
1,770
5,427|Total
2021
£|
|---|---|---|---|---|---|---|
|||General
funds
£
37,869
5,950
11,633
7,657
752
1,080
-
64,941
1,286
1,286
900
1,500
4,972|||||
|||||||39,932
4,986
5,520
7,657
845
1,050
26|
|||||||60,017|
|||||||2,518
2,668
961
4,000|
|||||||10,147|
## **4 Transactions with related parties**
Vivienne Alexander served as church leader and was paid £27,306 [2021: £26,492] 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 £3,462 [2021: £3,078] 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.
No payments were made to trustees or persons related to them, except for reimbursement of expenses paid out on behalf of the charity.
Page 7
## **HORNCHURCH BAPTIST CHURCH**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 MARCH 2022**
|**5**
**Movement of funds**
General funds
Designated funds
Buildings fund
Communion (hardship fund)
Seniors
Restricted funds
Missionary
Harvest Appeal
Youth Fund
Total funds|Opening
balance
£
93,025
5,117
120
370
98,633
-
-
1,115
1,115
99,748|Receipts
£
48,577
-
120
-
48,697
210
185
49
444
49,140|Payments
£
(69,912)
-
(60)
-
(69,972)
(210)
(185)
(211)
(606)
(70,579)|Transfers
£
-
-
-
-
-
-
-
-
-|Closing
balance
£|
|---|---|---|---|---|---|
||||||71,689
5,117
180
370|
||||||77,357|
||||||-
-
953|
||||||953|
|||||||
||||||78,310|
The Mission Fund relates to funds donated for the purpose of supported missionaries.
## **6 The Baptist Pension Scheme**
Previously the Baptist Pension Scheme’s now closed defined benefit scheme had been reporting a funding deficit and the charity had been making contributions to help make good the shortfall. The Baptist Pension Scheme provided estimates for the charity’s share of the funding deficit and the estimate at the year end was included as a monetary liability in the Statement of Assets and Liabilities.
In July 2022, the Baptist Pension Scheme reached an agreement with an insurance company, called Just, to secure the benefits payable under the now closed defined benefit pension scheme (‘DB Scheme’). The premium payable to Just was favourable and, after the transaction with Just, the DB Scheme no longer has a funding deficit. It will take some time to complete the process and, until it is complete, some risks remain. Based on current values the Baptist Pension Scheme believes it has sufficient assets to complete the process without requiring additional contributions from participating employers but, because some risks do remain, the charity has been asked to make a nominal monthly contribution of £1 to the DB Scheme from August 2022.
The liability included in these accounts for future contributions towards the funding deficit represents deficit contributions paid between the year-end and 31 July 2022 before they then reduced to £1 in August 2022.
Page 8