## Hornchurch Baptist Church
Report and Accounts Year ended 31 March 2023
1 Lamb's Passage, London EC1Y 8AB www.stewardship.org.uk
## **HORNCHURCH BAPTIST CHURCH**
## **LEGAL AND ADMINISTRATIVE DETAILS**
## **FOR THE YEAR ENDED 31 MARCH 2023**
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 (resigned June 2023) MANAGING THE CHARITY Akwasi Addai-Diawuo Ifeoma Amadi Jean Hart Nigel Hooton (appointed November 2022) Suzanne Humphreys Mark McConnell (resigned November 2022) Lesley Mason Susan Pannell (appointed November 2022) Howard Thomas (appointed November 2022) 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 8-9 Notes to the Accounts
Page 1
## **HORNCHURCH BAPTIST CHURCH**
## **REPORT OF THE TRUSTEES**
## **FOR THE YEAR ENDED 31 MARCH 2023**
The Trustees have pleasure in submitting the Report and Accounts for the year ended 31 March 2023.
## **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 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 [HBC], 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 the experience of knowing Jesus as their Lord, Saviour and Friend.
## **Review 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.
On-site church services restarted after Covid lockdown (during which online services were provided for the church community).
A number of members did not return but a smaller number joined the church as regular attendees. Services were well led and supported by our minister and worship group providing fellowship, teaching and encouragement to deepen Christian understanding and faith.
The church has provided Sunday school classes for the children where they learn about the Bible and Christian teachings in an engaging and fun way, doing crafts and playing games as well as learning by reading and talking.
The Young People’s group, Hothouse, has also met during the service on most Sundays allowing the 11–18 year-olds to discuss, to form friendships and share with their leaders. Some of the young people have been trained to use the sound desk and learn new skills.
One of the church members has started organising regular Games Afternoons on Saturday afternoons where families with younger children can meet to socialise and form deeper friendships. These have been well attended and much appreciated by some families who do not regularly come to church on Sundays.
The church has held some more informal café-style services, initially for special occasions such as the Jubilee and Coronation as well as a visit from our link missionaries in Kosovo. These have proved popular and provided a good way to build relationships within the fellowship as well as being appealing to those who don’t attend regularly.
Our Parent/carer and Toddler group continues weekly and is very popular. The leaders continue to build positive relationships and to provide support to families with young children from the local area.
Page 2
The Women's Bible study group has been meeting weekly and has increased in number. This group provides fellowship and friendship for women within the church but has also welcomed some new members who do not normally attend HBC.
The weekly prayer meeting, held in church and on Zoom on Saturday mornings, continues to meet faithfully to pray for the church, the community and the wider world. This group seeks God’s guidance for the future of the church and also provides Bible study and fellowship.
Three new Deacons were elected in Nov 2022, and one stood down after serving faithfully for 6 years. The church secretary retired in Nov 2022 and a new deacon took on the role. The church also appointed a Treasurer who is supported by a new Finance Team which meets regularly.
The church building has been occasionally used by outside groups such as Citizens' Advice, a local charity "Stand by Me", Street Pastors and occasionally by other churches who have used our building for baptism services.
The church continued to support (financially and in prayer and encouragement) the work of Stand by Me, our two members working for BMS in Kosovo and our church member who is pioneering life-saving treatments and technology for neonates in Nigeria.
During the year our Pastor announced her retirement and she left in June 2023. We have been appointed a moderator (Rev. Andy Drake) who will guide and support us through the process of finding a new minister. Thus, the year has been one of preparing for this and for reflecting and looking forward.
## **Financial review**
During the year income increased by £2,600, to £51,800, and expenditure decreased by £7,300, to £63,300. As a result the cash held by the charity decreased by £11,600, to £66,700, of which £65,800 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 9-12 months of operating costs 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 £65,800.
The charity faces a Ministerial interregnum from mid-2023 onwards. This decreases operating costs by a substantial amount and improves the net income figure accordingly. Reflecting this, the 2023-24 budget anticipates that operating costs for the financial year will be about £43,000. This would imply a reserves target range of £32,000 -£43,000 (equivalent to 9-12 months of operating costs). However, as Trustees do not intend for the Ministerial vacancy to be long-term, they propose “looking through” these temporary distortions and instead setting a target range as if a full-time Minister continues to be in post. The trustees have settled on a reserves target range of £47,000 - £62,000 .
Whilst the charity is currently holding free reserves in excess of this policy and the budget indicates that this may increase further over the short-term, the charity is facing material costs associated with refurbishment of the manse or its sale/replacement. These costs have not been budgeted for but have the potential to materially deplete the free reserves held by the charity and/or result in a loan facility being sought.
Given such uncertainties, the Trustees do not propose any short-term actions to return free reserves towards the target range of £47,000 - £62,000. Trustees will monitor the charity’s reserves position closely. They will update the reserves policy when decisions have been made and costed with respect to the manse and/or when it is known that a new Minister is to be appointed. The reserves policy will also be reviewed and as necessary updated if there are other material changes in circumstances and at least on an annual basis.
Page 3
## **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:
____________________________ Howard Thomas
22 November 2023 Date:_______________________
Page 4
## **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 2023 on pages 6 to 9 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: 08 December 2023
Page 5
## **HORNCHURCH BAPTIST CHURCH**
## **RECEIPTS AND PAYMENTS ACCOUNT**
## **FOR THE YEAR ENDED 31 MARCH 2023**
||||||||Unrestricted|Funds|||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
||||||||General|Designated||Restricted|Total|Total|
||||||||Funds||Funds|Funds|2023|2022|
|||||||Notes|£||£|£|£|£|
|**_Income receipts_**|||||||||||||
|Donations|||||||29,155||120|498|29,773|29,507|
|Gift aid receipts|||||||5,136||-|-|5,136|7,541|
|Income from charitable activities|||||||-||-|-|-|49|
|Rental income|||||||15,667||-|-|15,667|11,925|
|Interest|||||||1,181||-|-|1,181|120|
|**_Total receipts_**|||||||51,139||120|498|51,757|49,140|
|**_Payments_**|||||||||||||
|Payments
in
relation
to
activities undertaken directly||||charitable||2|57,483||-|-|57,483|65,152|
|Grants
paid
in
relation
to
activities undertaken by others||||charitable||3|5,343||-|498|5,841|5,427|
|**_Total payments_**|||||||62,826||-|498|63,324|70,579|
|Net
of
receipts
/
transfers||(payments)|||before||(11,688)||120|-|(11,568)|(21,438)|
|Transfers between funds||||||5|-||-|-|-|-|
|**Net movement in funds**|||||||(11,688)||120|-|(11,568)|(21,438)|
|Cash funds as at|last|year|end||||71,689||5,667|953|78,310|99,748|
|**Cash funds at this year end**||||||A|60,002||5,787|953|66,742|78,310|
The notes on pages 8 - 9 form part of these accounts.
Page 6
## **HORNCHURCH BAPTIST CHURCH**
## **STATEMENT OF ASSETS AND LIABILITIES**
## **FOR THE YEAR ENDED 31 MARCH 2023**
|**A Cash funds**
Cash at bank with immediate access
Notice deposits
PayPal balance
Petty cash
**B**
**Other monetary assets**
Gift aid due to charity
**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 loan
**Total**|General
Designated
funds
funds
£
£
16,158
5,787
43,726
-
22
-
96
-
**60,002**
**5,787**
3,755
-
**3,755**
**-**
876
-
-
-
7,457
-
-
-
8,333
-
-
-
-
-
**8,333**
**-**
Unrestricted Funds|Restricted
funds
£
953
-
-
-
**953**
-
**-**
-
-
-
-
-
-
-
**-**|Total
2023
£
22,898
43,726
22
96
**66,742**
3,755
**3,755**
876
-
7,457
-
8,333
-
-
**8,333**|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**|
The above loan is repayable in monthly instalments over 25 years and is expecting to be repaid in full by the 2024/5 financial year.
|**D**
**Assets retained for charity's own use**
_Freehold buildings [church building and two residential properties]_
Contents and equipment|Value
2023
£
-
111,150
**111,150**|Value
2022
£|
|---|---|---|
|||-
100,405|
|||**100,405**|
The trustees have used insurance values as the trustees are unable to reliably estimate current values; insurance values may differ materially from current values.
_Current values have not been quoted for freehold buildings because reliable valuations are not available (and disclosure is not mandatory)._
The accounts were approved by the trustees and signed on their behalf
by date _____________________________Howard Thomas 22 November 2023_________________
The notes on pages 8 - 9 form part of these accounts.
Page 7
## **HORNCHURCH BAPTIST CHURCH**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **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
Note 4
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
£
-
-
-
-
-
-
-
-
-
-
-
-
-
ed Funds|Restricted
Funds
£
-
-
-
-
-
-
-
-
-
-
298
200
498|Total
2023
£
34,527
5,745
8,095
7,657
620
840
-
57,483
1,472
1,472
1,198
1,700
5,841|Total
2022
£|
|---|---|---|---|---|---|---|
|||General
funds
£
34,527
5,745
8,095
7,657
620
840
-
57,483
1,472
1,472
900
1,500
5,343|||||
|||||||37,869
5,950
11,633
7,657
752
1,080
211|
|||||||65,152|
|||||||1,471
1,286
900
1,770|
|||||||5,427|
## **4 Transactions with related parties**
Vivienne Alexander served as church leader and was paid £28,198 [2022: £27,306] 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 £4,727 [2022: £3,462] 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 any other trustees or persons related to them, except for reimbursement of expenses paid out on behalf of the charity.
Page 8
## **HORNCHURCH BAPTIST CHURCH**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 MARCH 2023**
|**5**
**Movement of funds**
General funds
Designated funds
Buildings fund
Communion (hardship fund)
Seniors
Restricted funds
Missionary
Stand by Me
Harvest Appeal
Youth Fund
Total funds|Opening
balance
£
71,689
5,117
180
370
77,357
-
-
-
953
953
78,310|Receipts
£
51,139
-
120
-
51,259
200
158
140
-
498
51,757|Payments
£
(62,826)
-
-
-
(62,826)
(200)
(158)
(140)
-
(498)
(63,324)|Transfers
£
-
-
-
-
-
-
-
-
-
-
-|Closing
balance
£|
|---|---|---|---|---|---|
||||||60,002
5,117
300
370|
||||||65,789|
||||||-
-
-
953|
||||||953|
|||||||
||||||66,742|
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.
Page 9