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2020-12-31-accounts

Ararat Baptist Church

Year End 31st December 2020

ARARAT BAPTIST CHURCH

REPORT OF THE TRUSTEES

FOR THE YEAR ENDING 31st DECEMBER 2020

The Constitution of the Church was adopted on 25[th] June 2009. The Church registered with the Charity Commission on 19[th] November 2009. Ararat Baptist Church is an unincorporated charity.

Organisational Structure and Decision Making

The Church is governed by the Trustees who are appointed by the Church membership. The Trustees serve for a period of three years. They meet on a monthly basis and are responsible for the strategic direction of the charity. Authority is given to the Ministers and Church Secretary to take decisions and they would seek to make contact with each other before doing so. When appropriate, the specialist expertise of Church members and friends is also utilised to assist in decision making, for example, building matters, safeguarding, finance.

No election for Trustees was held in late 2020 (for 2021 vacancies) because of the difficulties posed by online general meetings and the provision for secret voting. In May 2021, a Special General Meeting was held to amend the Constitution (using guidance supplied by the Baptist Union of Great Britain) to allow meetings to be held in person, by electronic means or by a combination of physical and electronic.

Under normal circumstances, shortly after their meetings the Trustees report to the Church members’ meeting each month (except August and December). During 2020, however, the Trustees held “Zoom” meetings at almost fortnightly intervals but the only members’ meeting in person was in February. Members were, however, provided electronically with a weekly update of relevant matters.

The Trustees review the salaries of staff on an annual basis (without the presence of any member of staff or interested party). The salary of Ararat Ministers is above the stipend recommended by the Baptist Union of Great Britain. When determining ministers’ salaries, Trustees give consideration to the Baptist Union’s suggested annual pay increase. Employees are paid higher than the living wage.

Baptism by immersion upon personal profession of faith is the normal mode of entry into the membership of a Baptist church. But persons seeking membership who have not been baptised in the manner described in the Union’s Declaration of Principle may at the discretion of the Church Members’ Meeting be accepted for full membership based on their own public profession of faith.

Any person who accepts an invitation to stand for election as a Trustee must have been a church member for one continuous year. Before an election those who are eligible to stand will meet with the ministers to discuss the work and responsibilities of trusteeship. Trustees have access to all agreed policies of the church and the Baptist Union of Great Britain’s resources and guidance materials.

All members are encouraged to take part in the spiritual and practical tasks involved in the furtherance of the charitable objectives. The Constitution permits decisions to be made at the Church Meetings by appropriate majorities although the Church seeks to work by consensus wherever possible.

The Finance Team, all volunteers, is responsible to the Trustees for keeping proper accounting records and ensuring compliance with the Charities Act 2011, and the relevant accounting requirements for charities in Annual Financial Statements. These are reviewed and approved by the Trustees and presented for acceptance by the Church members at the Annual General Meeting.

1

Objectives and aims

The principal purpose of the Church is the advancement of the Christian faith according to the principles of the Baptist denomination. The Church may also advance education and carry out other charitable purposes in the United Kingdom and/or other parts of the world. The Church occupies premises that are held by the Baptist Union Corporation Limited on trust which are entirely compatible with the above objectives.

Ararat Baptist Church is committed to enabling as many people as possible to worship at our Church and to become part of our fellowship. Our services and worship put faith into practice through prayer, scripture, music and communion.

Our dual aims remain to provide a facility where Christians, or those who wish to know more about our faith, can come together to worship, learn about their religion and commune together and to provide a community facility open to all the local inhabitants of Whitchurch, Cardiff and to those from further afield.

Public Benefit

The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake and, in particular, the specific guidance for the advancement of religion for the public benefit.

The community facilities at Ararat Baptist Church are widely used by the local community, external organisations, support groups, fitness and exercise classes, etc. Our new extension was funded and built with the aim of providing improved facilities for community use and prior to the lockdowns during 2020 it was usual to have over 1,000 visitors a week.

The public in general can benefit from our facilities as a meeting place in a friendly and supportive environment. We make no restrictions on anyone attending our Church or community activities and give a warm welcome to all visitors and friends.

Even during 2020 with the constraints of Covid-19 we have seen the importance of the extension and The Ark (café) facility enabling us to support those who are lonely and isolated in the community, thereby helping to tackle some of the challenges of lockdown and improve people’s wellbeing and mental health.

Activities and Achievements

As previously mentioned, Ararat Church and Centre aims to be at the centre of the local community. During January and February 2020, our activities included Parent & Toddler groups, weekly Luncheon Club for the elderly and Messy Church for families. Our fairly-new Ark café served refreshments as well as providing a safe space for time alone or with friends. The Renew Wellbeing café, held in the Ark, continued to try and meet the needs of those who would benefit from periods of rest and reflection. An innovation in January was a special celebration of St Dwynwen’s Day, the Welsh Valentine’s Day. Rooms in the Centre were hired out throughout the week to special interest groups and social gatherings from within the community.

In March, the first lockdown came into force and life as we knew it for both Church and Centre came to an end. From the beginning of the lockdown, our aims were to maintain links with the community and to provide support at this unprecedented time. The Trustees’ monthly meetings increased to fortnightly, sometimes weekly, in order to set up ways of achieving these aims.

The first task was to move online our services, weekly times of reflection, children’s activities and the Renew Wellbeing session. When restrictions allowed, the Ark café opened and provided a meeting place for those who had been isolated for long periods. Many members of the community commented

2

on how safe they felt coming to Ararat at this time due to the rigorous safety measures we had put in place. During periods outside of lockdown, soft play sessions were organised by our Children & Families Worker. About 50 sessions were held with up to 40 families attending weekly.

During the summer months, we were able to make use of the lovely grounds in which the Church stands to hold many activities outside. These included Sunday services and a children’s Bear Hunt plus a Sheep Trail. Over 50 children attended these special events together with their families.

Ararat always takes part in the Whitchurch Festival and did so again in 2020. Although the festival format was much-changed due to restrictions, the Church concentrated on helping children and families to enjoy the occasion by distributing 50 bags containing activities for the children.

As Christmas approached an afternoon tea with activities was held for families plus a Christmas tea for adults. Christmas hampers were also distributed to families in need. Sadly, our ‘Bubble up to Bethlehem’ in which people in their respective ‘bubbles’ would move around scenes from the Nativity, had to be cancelled when a further lockdown was announced at short notice. Our candlelight carol service, always well attended by the community, was held online.

Throughout the year Ararat’s Pastoral Team, unable to make visits, kept in touch with people by means of phone calls and letters. This contact was especially appreciated by those who were shielding or self-isolating alone.

It has been an unprecedented year in the life of the Church but many new ways have been found to fulfil our aim of being at the heart of the community – ways which we intend to build on and develop in the days ahead.

Financial Review

The Financial Statements have been prepared in accordance with the accounting policies set out in Note 1 to the Financial Statements and comply with the charity's governing document, the Charities Act 2011 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[st] January 2019)".

The detailed financial results for the year, together with a summary of the accounting policies adopted are set out in the accompanying Financial Statements. The net overall result for the year showed a deficit of £86,455, whereas in 2019 there had been a surplus of nearly £2,314,000 caused primarily by a legacy of £565,000 and an insurance revaluation of assets of £1,738,000. In 2020 the closing the buildings because of the Covid-19 restrictions reduced potential income from personal attendance (envelopes and loose collections) and hiring out rooms by some £55,000 (offset by furlough grants of £11,000). Furthermore, some £73,000 of the expenditure incurred could be solely attributed to the utilisation of legacy funds.

The reserves of the Church at the end of the year were £5,230,804 (2019 £5,317,259).

Members and friends of Ararat donate on a voluntary basis to the charity as part of their commitment to the Church. The Trustees are very grateful to members and friends for their continued generous offerings and donations throughout 2020, despite the effects of the Covid-19 pandemic. No wider public appeal was made for funds.

During the year, the specific fund established for regular offerings from members and friends was utilised, in addition to legacy funds, to repay the Baptist Union loan. Following this, the contributors agreed to continue similarly restricted purpose offerings, to accumulate a Maintenance Fund for future repairs to the buildings.

3

The level of income in 2020 did not require an audit only an independent examination. Steve Ellum of Steve Ellum & Associates Limited, Chartered Accountants, was appointed as Independent Examiner.

Financial Reserves Policy

In early 2021, the Trustees reviewed and amended the financial reserves policy to state that they consider it prudent to hold £35,000 to maintain the religious and charitable work of the Church. This is equivalent to at least two months of essential expenditure. At the year end, although the bank balance of unrestricted funds was less than this at £16,391, the Trustees consider the position satisfactory as there was a further £86,675 immediately available in the Reserve Bank Account. In addition, over £196,000 of the legacy was still to be received from the solicitors as at 31[st] December 2020.

2019 Legacy

During 2020, members approved the use of part of the £400,000 legacy funds actually received in 2019, on the following.

Further strategic plans for the legacy will be considered by the Trustees during 2021.

The outstanding balance of the legacy was received from the solicitors on 23[rd] March 2021.

Risk Management

The Trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error. The Trustees assess the risks to which the Church is exposed and are satisfied that the systems are in place to mitigate exposure to major risks. Internal control risks are minimised by the implementation of procedures for all transactions and projects. Procedures are also in place to ensure compliance with health and safety of staff, volunteers and visitors to the Church, Community Centre and Ark.

Much of 2020 was spent dealing with the risks and operational difficulties of carrying on through Covid-19. In March, action was taken to halt some regular activities at the Church and Community Centre where there were vulnerable young or elderly people taking part: sanitisers and hand wash guidance were provided for all users. When it was legally possible, outdoor Sunday morning services were held with only the permitted numbers attending, and later in the year, these services were held indoors in the Memorial Hall (with social distancing and plastic screens). The Ark was also opened when permissible, but with strict social distancing and anti-infection measures.

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ARARAT BAPTIST CHURCH REPORT OF THE TRUSTEES FOR THE YEAR ENDING 31st DECEMBER 2020 REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity Number. 1132808 Principal Offi¢e: Plas Treoda. ￿rtchurCh. Cardtff, CF14 1PT Trustees as al 31st December 2020 Rev N Dickerson (Minister) Rev G Russelkjones (Minister) Mrs S Conway {Se¢￿tary) Mr P Bumell (Deacon) Mr H Ca￿Y (Deacon) Ms H Capelin (Deacon) term of office ended 3111212020 Mrs H Evans (Deacon) Mrs C Higgins {Deacon) Mrs J Lews (Deacon) Mrs S Rees (Deacon) MrA Pasley {Deacon) term of office ended 3111212020 Mr G Wtts {Deacon) Property Truslees The Baptist Union Corporation Ltd, Baptist House. 129 Broadwdy, Didcot. Oxfordshire OX118RT Bankers The Co-operative Bank plc, P.0. Box 101, 1 Balloon St￿et. Manchester, M60 4EP6. Independent Examiner steve Ellum & Associates LimFted, Chartered Accountants, Adulam House, Glan YrAfon. Llanelli SA15 3QB Approved by order of the Board of Trustsès on 16th August 2021 and signed on its ￿half by Rev N Dickerson and Rev G Russell4ones Rev N Dickerson Rev G Russell4ones

Independent Examiner’s Report To the trustees of Ararat Baptist Church For the Year to 31 December 2020

Independent examiner's report to the trustees on the unaudited financial statements of Ararat Baptist Church.

I report on the accounts of Ararat Baptist Church for the year ended 31 December 2020 set out on pages 1 to 23.

Respective responsibilities of trustees and independent examiner

As the charity's trustees you are responsible for the preparation of the accounts, you consider that the audit requirement of section 144(2) of the Charities Act 2011 (the Act) does not apply and that an independent examination is needed. It is my responsibility to examine the accounts under section 145 of the Act; to follow the procedures laid down in the General Directions given by the Charity Commission under section 145(5)(b) of the Act; and to state whether particular matters have come to my attention.

Basis of independent examiner's statement

My examination was carried out in accordance with the General Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a 'true and fair view' and the report is limited to those matters set out in the statement below.

Independent examiner's statement

In connection with my examination, no matter has come to my attention:

........................................................... Steve Ellum for and on behalf of Steve Ellum & Associates Ltd Chartered Accountants Adulam House Glan Yr Afon SA15 3QB

16 August 2021

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ARARAT BAPTIST CHURCH

STATEMENT OF FINANCIAL ACTIVITIES

YEAR ENDED 31st DECEMBER 2020

Note
Unrestricted Restricted
TOTAL
£
£
£
Income
Donations & Legacies
2.
137,755
8,480
146,235
Charitable Activities
3.
29,074
-
29,074
Investment Income
4.
13,149
453
13,602
Other Income
5.
10,658
-
10,658
Total Income
190,636
8,933
199,569
Expenditure
Raising Funds
6.
-
Charitable Activities
7.
258,195
3,963
262,158
Total Expenditure
258,195
3,963
262,158
Income /(expenditure) for the year
(67,559)
4,970
(62,589)
Other recognised gains / (losses)
Surplus on revaluation of assets
13.,14.
-
-
-
Actuarial gains / (losses) on defined
benefit pension schemes
24.
(23,866)
-
(23,866)
Net Income /(expenditure) for the year
(91,425)
4,970
(86,455)
Transfers between funds
22.,23.
(70,387)
70,387
Net Movement in Funds
(161,812)
75,357
(86,455)
Reconciliation of Funds
Total Funds brought forward
22.,23. 4,687,488
629,771
5,317,259
Total Charity Funds carried forward
22.,23. 4,525,676
705,128
5,230,804		 2019
£
717,553
62,822
12,900
-
793,275
680
264,829
265,509
527,766
1,786,686
(621)
2,313,831
2,313,831
3,003,428
5,317,259

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ARARAT BAPTIST CHURCH BALANCE SHEET YEAR ENDED 31st DECEMBER 2020 Nots Unrestricted Restr TOTAL 2019 Fixed Assets Tangible Fixed Assets Inveslrnents 13. 4,021.475 14. 210,134 4.231,609 697.340 4.718,815 4.697.607 210.134 210,134 897,340 4,928.949 4.907,741 Current Assets Debtors 196.559 107.104 303,663 196.559 114,892 311,451 165.952 379,61S 545,567 Bank 16. 7.788 Current Liabilities due within one year Loan 18. (83,300) 8,648 {9,5961 (91,948) Creditors 19. (9.5961 Net Current Assets 294.067 7,788 301,855 453.619 Net Assets excluding pension liabiltty 4.525.676 70S,128 5.230.804 5.361.360 Defined pension scheme liability 24. (44,101) Total Net Assets 4.525.676 705,128 5.230,804 5,317,259 Charity Funds Total Funds brought foTh¥ard 22..23 4,687,488 629,771 5.317,259 3.003.428 Surplus (deficit) for year (161.812) 75,357 (86.455) 2,313,831 Total Charity Funds carried forward 22.,23 4.52S.676 705,128 5.230,804 5,317.259 The FirFancial Slatements were approved bythe Tnjstees on 16th ust 2021 Rev N Dickerson Rev G Russell4ones

ARARAT BAPTIST CHURCH

STATEMENT OF CASH FLOWS

YEAR ENDED 31st DECEMBER 2020

Note
£
£
Reconciliation of net cash provided by operating activities
Net income (expenditure)
(86,455)
Adjustments for:
- Depreciation
8.
1,382
- (Increase) / decrease in debtors
15.
(30,607)
- (Decrease) / increase in creditors
19.,24.
(126,453)
Net cash provided by operating activities
(242,133)
Cash flows from investing Activities:
Purchase and revaluation of fixed and
investment assets
13.
(22,590)
Net cash provided by investing activities
(22,590)
Changes in cash and cash equivalents
(264,723)
Cash and cash equivalents brought forward
16.
379,615
Cash and cash equivalents carried forward
16.
114,892
2020		 £
£
2,313,831
(165,952)
(7,370)
2,140,509
(1,786,686)
(1,786,686)
353,823
25,792
379,615
2019		 £
£
2,313,831
(165,952)
(7,370)
2,140,509
(1,786,686)
(1,786,686)
353,823
25,792
379,615
2019
(1,786,686)
353,823
25,792
379,615

9

ARARAT BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31st DECEMBER 2020

1. Accounting Policies

1.1 Charity Information

Ararat Baptist Church is an unincorporated charity whose registered address is Plas Treoda, Whitchurch, Cardiff CF14 1PT

1.2 Basis of Preparation

The Financial Statements have been prepared in accordance with the charity's governing document, the Charities Act 2011 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 Financial Statements have been prepared under the historical cost convention apart from values associated with Church buildings and related fixtures and fittings.

The Church constitutes a Public Benefit Entity as defined by FRS 102.

1.3 Going Concern

The Trustees consider that there are no material uncertainties about the Church’s ability to continue as a going concern.

1.4 Critical Accounting Estimates and Judgements

The preparation of the Financial Statements requires the Trustees to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the Balance Sheet date and the amounts reported for revenues and expenses during the year. The estimates and associated assumptions are based on historical experience and other relevant factors. However, the nature of estimation means that actual outcomes could be different.

1.5 Income Recognition

Income is recognised in the Statement of Financial Activities on the following basis:

1.6 Expenditure Recognition

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ARARAT BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED 31st DECEMBER 2020

1. Accounting Policies (continued)

1.7 Raising funds

Raising funds includes all expenditure incurred by the Church to raise funds for its charitable purposes and includes costs of all fundraising activities, events and non-charitable trading, and an apportionment of support and governance costs.

1.8 Charitable activities

Costs of charitable activities cover all expenditure relating to the furtherance of the Church's objectives, including an apportionment of support and governance costs.

1.9 Support and Governance costs

Support costs are those that assist the work of the Church but do not directly represent charitable activities and include office and associated costs.

Governance costs comprise all costs involving the public accountability of the Church and its compliance with regulation and good practice, including audit and legal fees.

Most of the management of the Church is carried out without charge by volunteers. This intangible cost is not included in the Statement of Financial Activities since there is no measurable cost to the volunteers for their service.

1.10 Apportionment of Support and Governance costs

Support and governance costs have been apportioned to the cost of raising funds and expenditure on charitable activities on a basis consistent with the use of resources.

1.11 Tangible Fixed Assets

All assets costing more than £1,000 are capitalised.

Value of Church Buildings

The Church buildings have historically been accounted for at insurance value. This approach has been adopted because there is no reliable cost information available. As a result of the transition to FRS 102 the Trustees have taken the insurance cost for Church buildings and related Fixtures and Fittings (but excluding the Investment Property) of £2,491,145 as at transition date (1st April 2014) and used this as deemed cost going forward. A full valuation was undertaken by the Church insurers in January 2020, and the Trustees have accepted this as the fair value for Church buildings and related Fixtures and Fittings at 31st December 2019, and at 31st December 2020.

Impairment of 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).

Depreciation

No depreciation is provided on freehold land as insurance valuations are regularly updated.

Furniture, Fixtures, Fittings & Equipment are depreciated over 6 years. Plant is depreciated over 10 years

1.12 Investment Property

The former Church manse at Plas Treoda has been let for rental as two flats for a number of years, and is classed as an investment property. The valuation in the Balance Sheet is consistent with that of the main Church buildings, with the insurance cost £177,440 as at transition date to FRS 102 (1st April 2014) being the deemed cost going forward. A full valuation was undertaken by the Church insurers in January 2020, and the Trustees have accepted this as the fair value for the investment property at 31st December 2019, and at 31st December 2020.

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ARARAT BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED 31st DECEMBER 2020

1. Accounting Policies (continued) 1.13 Taxation

The Church is exempt from tax on its charitable activities.

1.14 Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives of the Church at the discretion of the Trustees.

Designated funds are unrestricted funds put aside for a specific project or aim: they can be returned to the General unrestricted funds at any time provided the decision is taken by a quorum of members at the Church meeting.For reporting purposes they are combined with unrestricted funds and termed "Unrestricted".

Restricted funds can only be used for particular restricted purposes within the objects of the Church. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. Further explanation of the nature and purpose of each fund is included in the Notes to the Financial Statements.

1.15 Pension costs and other post-retirement benefits

The Church operates Defined Contribution plans for its employees, with various separate pension providers. Once the agreed contributions have been paid the Church has no further payment obligations. The contributions are recognised as an expense when they are due: amounts not paid at the year end are shown in creditors in the Balance Sheet.

Prior to 2012 pension provision could be made through a multi-employer defined benefit pension plan ("Baptist Ministers' Pension Scheme"). Where this is in deficit the Church Trustees have agreed to participate in a deficit funding arrangement and the Church recognises a liability for this obligation in the Financial Statements.

The amount recognised is the net present value of the contributions payable under the agreement that relates to the deficit, and is shown as an expense in the Statement of Financial Activities and liability in the Balance Sheet.

1.16 Groups

There are a number of organisations (“Groups”) operating within the church which are consolidated as part of charitable activities, as they provide local outreach from the Church premises. Their funds are classified as Designated. The Church Trustees have overall responsibility for the management of these Groups.

12

ARARAT BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

YEAR ENDED 31st DECEMBER 2020

2. Donations and Legacies
Offerings
Tax refunds
Donations
Legacies
Total
3. Charitable Activities
Children & Families' Ministry
Community Centre – room hire
Income from The Ark
Fees for weddings and funerals
Group activities (Note 20.)
Secondment income
Other charitable income
Total
4. Investment Income
Rent received
Bank interest
Total
5. Other Income
HMRC Furlough grants
6. Raising Funds
Cost of events
Support + Governance costs (Note 9.)
Total
7. Charitable Activities
Ministerial
Mission
Group activities (Note 20.)
Donations / grants (Note 10.)
Establishment
Maintaining investment
Miscellaneous
Support + Governance costs (Note 9.)
Total		 Unrestricted Restricted
TOTAL
£
£
£
82,743
7,040
89,783
18,079
1,429
19,508
6,583
11
6,594
30,350
30,350
137,755
8,480
146,235
£
£
£
3,398
3,398
3,936
3,936
10,965
10,965
2,565
2,565
3,579
3,579
4,500
4,500
131
131
29,074
-
29,074
£
£
£
12,900
12,900
249
453
702
13,149
453
13,602
£
£
£
10,658
10,658
10,658
-
10,658
£
£
£
-
-
-
-
-
-
£
£
£
97,665
97,665
55,337
400
55,737
3,204
3,204
22,500
22,500
48,355
563
48,918
2,289
2,289
2,325
2,325
231,675
963
232,638
26,520
3,000
29,520
258,195
3,963
262,158		 2019
£
115,520
22,354
13,932
565,747
717,553
£
5,442
27,927
9,613
5,563
13,115
-
1,162
62,822
£
12,900
-
12,900
£
-
-
£
562
562
118
680
£
92,610
41,530
11,925
22,500
50,622
1,244
949
221,380
43,449
264,829

13

ARARAT BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED 31st DECEMBER 2020

8. Support Costs
Staffing
Telephone & IT
Postage & stationery
Leases, licences & subscriptions
Equipment & sundry costs
Depreciation
Finance costs
Total
9. Governance Costs
Audit / Independent Examination
Other governance costs
Total
Support + Governance Costs
apportioned (based on use of
resources by cost) to:
Raising Funds
Charitable Activities
10. Donations / Grants
BMS World Mission
Baptist Union Home Mission
South Wales Baptist College		 Unrestricted Restricted
TOTAL
£
£
£
11,687
11,687
4,429
4,429
1,747
1,747
5,541
5,541
558
558
1,382
1,382
36
3,000
3,036
25,380
3,000
28,380
£
£
£
1,140
1,140
-
1,140
-
1,140
£
£
£
-
26,520
3,000
29,520
26,520
3,000
29,520
£
£
£
10,500
10,500
9,500
9,500
2,500
2,500
22,500
-
22,500		 2019
£
20,610
3,670
3,089
6,545
3,958
37,872
£
3,840
1,855
5,695
£
118
43,449
43,567
£
10,500
9,500
2,500
22,500

11. Trustees' Remuneration and Benefits

Rev N Dickerson and Rev G Russell-Jones (Trustees) received remuneration (including gross salary, employer's national insurance and employer's pension contributions) totalling £97,614 (2019 £92,479) for their services as Ministers during the year. From August 2020, Rev Naomi Dickerson was seconded part time to the South Wales Baptist Association to develop Renew Wellbeing Cymru: £4,500 has been received as income for The key management personnel comprise the Trustees and the Ministers.

During the year, no Trustees received expenses in connection with their roles as Trustees. During the year, £11,720 was received in donations from 13 Trustees and related parties (2019 £16,224 11 Trustees and related parties)

12. Employees

Wages and salaries
Social security
Other pension costs		 £
126,211
6,915
10,861
143,987		 £
119,866
7,894
11,308
139,068

No employee received more than £60,000 during the year

14

ARARAT BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED 31st DECEMBER 2020

12. Employees (continued)

The average number of employees during the year was:

Ministerial
Mission
Establishment
Support		 Full Time
2
1		 Part Time
1
1
1		 Total
2
2
1
1
6		 2019
2
2
1
1
3 3 6

Pension contributions are paid to Defined Contribution private pension schemes on behalf of the Ministers. The total amount paid into these schemes by the Church was £8,867 (2019 £7,629) .

One staff member is in the Baptist Pension Scheme which is a Defined Contribution scheme. The amount paid into this Scheme was £1,994 (2019 £1,975).

The Church paid off its deficiency contribution liability of £65,449 during the year and also £2,518 (2019 £4,548) in relation to former ministers in the Baptist Ministers' Pension Scheme (a Defined Benefit Scheme closed in December 2011). (see Note 24.)

13. Fixed Assets

Cost or valuation
At 1st January 2020
Revaluation
Additions
At 31st December 2020
Depreciation
At 1st January 2020
Charge
At 31st December 2020
Net Book Value
At 31st December 2020
At 31st December 2019
Revaluation 2019
Additions & revaluation to 2018
Deemed Cost 1st April 2014		 Church
Property
(excluding
investment
property)
£
3,831,749		 Restricted
Fixtures,
Fittings,
Equipment
& Plant
Total
Unrestricted
Church
Property
Church
Property
£
£
£
168,518
4,000,267
697,340
22,590
22,590
Unrestricted		 £
4,697,607
22,590
Total Church
Property
(excluding
investment
property)
3,831,749 191,108
4,022,857
697,340		 4,720,197
1,382
1,382		 1,382
- 1,382
1,382
-		 1,382
3,831,749 189,726
4,021,475
697,340		 4,718,815
3,831,749
1,390,309
139,151
2,302,289		 168,518
4,000,267
697,340
110,661
1,500,970
253,022
(130,999)
8,152
444,318
188,856
2,491,145
-		 4,697,607
1,753,992
452,470
2,491,145
Analysis of Revaluation Surplus
2019		 Property (excluding Investment) (as above)
Investment Property (Note 14.)
Total Revaluation Surplus (SOFA)		 1,753,992
32,694
1,786,686

15

ARARAT BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED 31st DECEMBER 2020

13. Fixed Assets (continued)

Accounting Policy 1.11 states that property is shown at insurance value. A valuation undertaken by Ecclesiastical Insurance plc (formerly Baptist Insurance) in January 2020 was used at 31st December 2019 and 31st December 2020, resulting in an increased valuation of £1,643,331 on Church buildings. However, no sub-division was made between the main Church building and Community Centre, and the newer extension for "The Ark". This extension was funded by a restricted use legacy, loan from the Baptist Union Corporation and individual donations, and was classed as Restricted funds in 2017 and 2018. A pro-rata calculation has been made based on the respective values of the main building and extension, as shown in the 2018 Balance Sheet (£2,441,440 + £444,318). The net result is that 84.60% of the increase (£1,390,309) is attributed to the main building (Unrestricted) and 15.40%( £253,022) to the extension (Restricted). The insurance valuation has also been used for fixtures and related fittings rather than the 2014 valuation plus additions less depreciation.

14. Investments

£ Cost or valuation The investment consists of a property – the former manse at Plas Treoda, let At 1st January 2020 210,134 for rental as two flats. Revaluation Accounting Policy 1.12 states that At 31st December 2020 210,134 property is shown at insurance value. A Depreciation valuation undertaken by Ecclesiastical Insurance plc (formerly Baptist At 1st January 2020 Insurance) in January 2020 was used Charge at 31st December 2019 and 31st At 31st December 2020 - December 2020, resulting in an increased valuation of £32,694 on this Net Book Value property. At 31st December 2020 210,134 At 31st December 2019 210,134 Revaluation 2019 32,694 Deemed Cost 1st April 2014 177,440

15. Debtors: amounts falling due within one year:

Trade debtors
Other debtors
Bank Balances
Petty Cash
Current Accounts
Reserve Account		 Unrestricted
Restricted
TOTAL
£
£
£
220
220
196,339
196,339
196,559
-
196,559
£
£
£
100
100
20,329
2,434
22,763
86,675
5,354
92,029
107,104
7,788
114,892		 2019
£
1,205
164,747
165,952
£
41,707
337,908
379,615

16. Bank Balances

16

ARARAT BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED 31st DECEMBER 2020

Unrestricted Unrestricted Restricted TOTAL 2019
£ £ £ £
**17. ** Operating Leases
The following operational leases were in existence at 31st December 2020:
Due in less than 1 year 654 2,900
Due in 2–5 years (per year) - 2,511
**18. ** Loans (Restricted Funds only)
£ £
Loan from Baptist Union Corporation - 83,300
Payable within one year (Note 19.) - 83,300
The loan of £98,000 in 2017 was to part fund the construction of "The Ark" extension,
repayable interest free over 10 years with a gift in lieu of interest at completion. In April 2020, it
was repaid in full, plus a gift of £3,000 in lieu of interest.

19. Creditors: amounts falling due within one year

**19. ** Creditors: amounts falling due within one year
£ £ £ £
Loan (Note 18.) - 83,300
Other taxation and social security - 2,426
Other creditors 1,033 1,033 213
Trade creditors and accruals 8,563 8,563 6,009
9,596 - 9,596 91,948
**20. ** Group Activities (Designated Funds only)
Designated 2019
Income Expenditure TOTAL
£ £ £ £
Luncheon Club 2,382 1,819 563 10
Mid Week Meeting 1,157 1,186 (29) (95)
Christians Against Torture 40 399 (359) (25)
3,579 3,404 175 (110)
less gifts to Church (deemed as internal
transactions) (200) 200 1,300
3,579 3,204 375 1,190
The activities of Groups are considered to be integral to the activities of the Church for local
outreach.
Luncheon Club
Mid Week Meeting
Christians Against Torture		 Bank
Balance /
Reserves
£
3,289
609
40
3,938		 2019
£
2,726
638
399
3,763

17

ARARAT BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED 31st DECEMBER 2020

21. Analysis of Net Assets Between Funds

Tangible Net Assets
Investments
Bank
22. Movement in Unrestricted Funds
Unrestricted Funds
General
Designated Funds
Group Activities
Legacy
Total Unrestricted Funds
Other net current assets		 Unrestricted
Restricted
TOTAL
£
£
£
4,021,475
697,340
4,718,815
210,134
210,134
107,104
7,788
114,892
186,963
186,963
4,525,676
705,128
5,230,804
01/01/2020
Incoming
Resources
Resources
Expended
Transfers
£
£
£
£
4,358,725
186,808
(278,857)
168,387		 2019
£
4,697,607
210,134
379,615
29,903
5,317,259
31/12/2020
£
4,435,063
4,358,725
186,808
(278,857)
168,387		 4,435,063
01/01/2020
Incoming
Resources
Resources
Expended
Transfers
£
£
£
£
3,763
3,579
(3,204)
(200)
325,000
249
(238,574)		 31/12/2020
£
3,938
86,675
328,763
3,828
(3,204)
(238,774)		 90,613
01/01/2020
Incoming
Resources
Resources
Expended
Transfers		 31/12/2020
4,687,488
190,636
(282,061)
(70,387)		 4,525,676

Comparative figures for 2019 are in Note 27.

Description of funds

Unrestricted Funds

General:

These are funds available to the Church for unrestricted use in the furtherance of its charitable aims and objectives. These funds may be revenue (income & expenditure) items or tied up in assets, e.g. the Church buildings, extensions and renovations, fixture and fittings, computer equipment.

Designated Funds

These funds outlined below have been designated by the Trustees for the purposes shown whereas, legally, they are unrestricted. For reporting purposes throughout these Financial Statements they are therefore combined together as "Unrestricted".

Groups: These Groups provide local outreach from the Church premises and have their own (Note 20.) bank accounts administered by their officers. The Trustees have overall responsibility for the management of the Groups.

Legacy: A substantial legacy was received in 2019, and with approval of Church members, the Trustees decided to set aside a significant portion of it to be available for future projects, yet to be determined.

18

ARARAT BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED 31st DECEMBER 2020

23. Movement in Restricted Funds

Movement in Restricted Funds
Restricted Funds
Sycamore Fund
Renovation & Building		 01/01/2020
Incoming
Resources
Resources
Expended
Transfers
31/12/2020
£
£
£
£
£
2,823
11
(400)
2,434
626,948
8,922
(3,563)
70,387
702,694
629,771
8,933
(3,963)
70,387
705,128

Comparative figures for 2019 are in Note 27.

Description of funds

Restricted Funds

Sycamore: This is a Restricted fund bequeathed by Doris and Burt Brewer to the Church for use in supporting members of the Church in need, and which is regularly replenished by donations at Communion Services.

Renovation and Building:

This is the net value of Church property financed by funds provided for that specific purpose only. Such restricted funds have been legacies, donations and gifts, grants, loans received (plus contributions towards their repayment) and, currently, offerings for ongoing maintenance (Maintenance Fund).

Transfers between funds

In 2020 there are two separate elements:

▪The portion of the legacy transferred from Unrestricted to Designated and the subsequent reverse transfer to Unrestricted in order to fund approved expenditure (see Note 22.). This expenditure may be of a revenue or capital nature (e.g. acquisition of an asset or extinguishing of a liability), both reflected in the SOFA.as a total of £70,187.

▪The donation of £200 from one of the Groups to the Renovation and Building Fund treated as an internal transfer, by reduction of both Group expenditure (Designated) and offerings received (Restricted) (see Note 20.).

24. Retirement Pension Schemes

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.

For any month, each participating employer in the Scheme pays contributions as set out in the Schedule of Contributions in force at that time.

The Scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. This is because it is not possible to attribute the Scheme’s assets and liabilities to specific employers and means that contributions are accounted for as if the Scheme were a defined contribution scheme. The pension costs charged to the SOFA in the year are contributions payable towards benefits and expenses accrued in that year, plus any impact of deficiency contributions (see table below).

At the year end there was one member of staff in the Scheme.

19

ARARAT BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED 31st DECEMBER 2020

24. Retirement Pension Schemes (continued)

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 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 plc.

Defined Benefit (DB) Plan

Benefits in respect of service prior to 1st 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 31st December 2011.

Actuarial valuation as at 31st December 2019

A formal valuation of the Defined Benefit (DB) Plan was performed at 31st 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 Church and the other employers supporting the DB Plan are collectively responsible for funding this deficit.

The key assumptions underlying the valuation were as follows:

Type of financial assumption % pa
RPI price inflation assumption 3.20
CPI price inflation assumption 2.70
Minimum Pensionable Income increases (RPI) 3.50
Type of financial assumption (continued) % pa
Assumed investment returns
- Pre-retirement 2.95
- Post retirement 1.70
Deferred pension increases
- Pre April 2009 3.20
- Post April 2009 2.50
Pension increases
- Main Schemepension 2.70

▪Post–retirement mortality in accordance with 80% of the S3NFA and S3NMA tables, with allowance for future improvements in mortality rates from 2013 in line with the CMI 2019 core projections, with a long term annual rate of improvement of 1.75% for males and 1.5% for females, with the core smoothing parameter and with additional initial mortality improvement factor A=0.5%..

The next actuarial valuation of the DB Plan within the Scheme is due to take place not later than as at 31st December 2022.

20

ARARAT BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED 31st DECEMBER 2020

24. Retirement Pension Schemes (continued)

Recovery Plan

In addition to the contributions to the DC Plan set out above, where a valuation of the DB Plan reveals a deficit the Trustee and the Council agree to a rate of deficiency contributions from churches and other employers involved in the DB Plan.

Under the previous Recovery Plan dated 16th December 2018 and not superseded until 30th September 2020 , deficiency contributions were payable until 31st December 2028. These contributions were broadly based on the employer's membership at 31st December 2014 and increased annually in line with increases to Minimum Pensionable Income as defined in the Rules.

Movement in Balance Sheet liability

Section 28.11A of FRS 102 requires agreed deficit recovery payments to be recognised as a liability. The movement in the provision is set out in the following table.

Year ended:
Buy out of liabilities
Balance sheet liabilityatyear end
Interest cost (recognised in the SoFA)
Remaining change to balance sheet liability*
(recognised in the SoFA)
Balance sheet liability at year start
Minus deficiency contributions paid		 31/12/2020
£
44,101
(2,518)
(65,449)
23,866
-		 31/12//2019
£
46,955
(4,548)
1,073
621
44,101
* Comprises any change in agreed deficit recovery plan and change in assumptions between year-ends.

During the year the Trustees agreed to buy out their Pension Scheme liabilities at a cost of £65,449. The excess of this amount over the calculated Balance Sheet liability at the start of the year was £21,348, and this is recorded in the SoFA as £23,866 (including the deficiency contributions of £2,518 already paid during the year)

25. Related Parties

21

ARARAT BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED 31st DECEMBER 2020

25. Related Parties (continued)

26. Post Balance Sheet Event

The impact of the Covid-19 pandemic during the year and for 2021 is described in the Trustees' Annual Report. The Trustees believe that the reserves of the Church are sufficient to meet the demands of this exceptional situation.

27. COMPARATIVE STATEMENT OF MOVEMENT IN FUNDS

YEAR ENDED 31st DECEMBER 2019

Movement in Funds
Unrestricted Funds
General
Revaluation
Designated Funds
Group Activities
Legacy
Total Unrestricted Funds
Restricted Funds
Sycamore Fund
Renovation & Building
Revaluation		 01/01/2019
Incoming
Resources
Resources
Expended
Transfers
31/12/2019
£
£
£
£
£
2,631,908
770,631
(252,478)
(325,000)
2,825,061
1,533,664
1,533,664
2,631,908
2,304,295
(252,478)
(325,000)
4,358,725
01/01/2019
Incoming
Resources
Resources
Expended
Transfers
31/12/2019
£
£
£
£
£
3,873
13,115
(11,925)
(1,300)
3,763
325,000
325,000
3,873
13,115
(11,925)
323,700
328,763
01/01/2019
Incoming
Resources
Resources
Expended
Transfers
31/12/2019
2,635,781
2,317,410
(264,403)
(1,300)
4,687,488
01/01/2019
Incoming
Resources
Resources
Expended
Transfers
31/12/2019
£
£
£
£
£
3,995
555
(1,727)
2,823
363,652
8,974
1,300
373,926
253,022
253,022
367,647
262,551
(1,727)
1,300
629,771

22

ARARAT BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED 31st DECEMBER 2020

28. COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES

YEAR ENDED 31st DECEMBER 2019

Income
Donations & Legacies
Charitable Activities
Investment Income
Total Income
Expenditure
Raising Funds
Charitable Activities
Total Expenditure
Net income /(expenditure) for the year
Other recognised gains / (losses)
Surplus on revaluation of assets
Actuarial gains / (losses) on defined benefit
Transfers between funds
Net Movement in Funds
Reconciliation of Funds
Total Funds brought forward
Total Funds carried forward		 Unrestricted Restricted
TOTAL
£
£
£
708,024
9,529
717,553
62,822
62,822
12,900
12,900
783,746
9,529
793,275
680
680
263,102
1,727
264,829
263,782
1,727
265,509
519,964
7,802
527,766
1,533,664
253,022
1,786,686

(621)
(621)
2,053,007
260,824
2,313,831
(1,300)
1,300
2,051,707
262,124
2,313,831
2,635,781
367,647
3,003,428
4,687,488
629,771
5,317,259		 2018
£
154,675
46,640
12,900
214,215
430
232,464
232,894
(18,679)
33,195
14,516
14,516
2,988,912
3,003,428

23