Charity Registration No. 1133944
CREECH ST MICHAEL BAPTIST CHURCH
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
CREECH ST MICHAEL BAPTIST CHURCH
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees I Kelland M Partridge Revd. M Bradley J Warden B Cavaghan I Tremain C Medlock R Chinnadurai M Bailey M Fox A Law Charity number 1133944 Independent examiner P A Stallard Lentells Limited Ash House Cook Way Bindon Road Taunton Somerset TA2 6BJ
(Appointed 25 April 2022) (Appointed 23 May 2022) (Appointed 23 May 2022)
CREECH ST MICHAEL BAPTIST CHURCH
CONTENTS
| Page | |
|---|---|
| Trustees' report | 1 - 4 |
| Statement of trustees' responsibilities | 5 |
| Independent examiner's report | 6 |
| Statement of financial activities | 7 - 8 |
| Statement of financial position | 9 |
| Statement of cash flows | 10 |
| Notes to the financial statements | 11 - 23 |
CREECH ST MICHAEL BAPTIST CHURCH
TRUSTEES' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
The trustees present their annual report and financial statements for the year ended 31 December 2022.
The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the church's trust deed, 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)” (as amended for accounting periods commencing from 1 January 2016).
Objectives and activities
The objectives of the charity are to advance the Christian faith according to the principles of the Baptist denomination. It also advances education and undertakes other charitable purposes in the UK and other parts of the world.
The activities undertaken include public worship, prayer, bible study, teaching, encouragement, education and pastoral care.
Public Benefit Statement
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the church should undertake.
Grant-making Policy
Grants are approved by the church meeting within the approval of the annual budget with any additional items voted by the same body during the year as the need arises.
Achievements and performance
Review of the past year
The year started positively with many of our young people helping our youth pastor celebrate his 60[th] birthday by raising £3000 for the Children’s Hospice with an event called ‘6 things for 60’ (running, kayaking, paddle boarding, cycling, archery and axe throwing).
As the pandemic restrictions were completely lifted, we welcomed people back into our church building. However, recognising how blessed some have been by being able to watch online while housebound, we continued to stream our services as well.
Sunday morning services have been well-attended both by existing church members and by an encouraging number of new people. Many of these newcomers have become involved in various aspects of church ministry and welcome teas have also helped welcome them into our church family.
We were delighted to see 5 people baptised this year, giving moving testimony as they professed their faith.
In April we welcomed our new pastor, Mark. He brings fresh insight and is working very well with our existing team. This year has also seen our Vision of ‘Seeing Lives Transformed by Jesus’ launched fully, with 2 Vision Days held. The first explained and engaged the church with the vision and what it means, and the second invited the church to look at how we can all play our part, and use our gifts, to help see lives transformed.
Easter time also saw our church join together in person with our local Anglican friends in a walk of witness through the village, as well as our usual Easter services and celebrations.
Our Life Café has returned to the building, and on Thursdays and Fridays welcomes people in to not only share food and drink, but to share encouragement and support. The Life Café also opens for 2 Saturdays per month, often with special events such as Christian book stalls, Traidcraft etc
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CREECH ST MICHAEL BAPTIST CHURCH
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
Our Alpha courses continued to offer the opportunity for anyone to share meals while they ask questions and explore what Christian faith means.
Our Life Groups continued to thrive, with new ones starting, giving members the chance to study the Bible, prayerfully support each other, and have fun.
We continued with our ‘pause for prayer’, which offered the weekly chance via Zoom for people to take time out to pray. We also continued our monthly prayer for the persecuted church throughout the world, again via zoom. Lunchtime clubs in various local primary schools continue to introduce those children to the Christian faith through stories, crafts – and fun. Our pastors and other members are also involved through governing bodies, ethos committees and leading assemblies in our local primary schools.
Throughout 2022, our leadership team/trustees continued to meet together in person twice a month for prayer and to discuss the oversight of the church and its ministries – an away day in September helped us to focus on the vision and set some priorities going forward as well as having a good time of fellowship together. Throughout 2022, we have also continued to be blessed by the contribution of our Ministerial student, who is gaining experience as part of our Ministry Team while continuing her studies at Bristol Baptist College.
Our youth and children’s work continued to reach out to young people, with Sunday morning groups for all ages and various weekday youth groups for ages 11 up. Some of our young people also went on a residential weekend called SPREE where they enjoyed meeting other young Christians through various activities and events. As this was so successful, another weekend is planned for 2023 as well as a second residential weekend through an organisation called Satellites.
The beginning of August saw the return of our Holiday Club in person. Approximately 100 primary school-aged children came along for a week of silliness, crafts, games, stories, Bible study, prayer, and laughter, run by dozens of church volunteers.
Sadly, this year the world was shaken by the war in Ukraine. Moved by the plight of the Ukrainian people, the church raised money for a love gift that was given to 2 ministries that members had connections to – Kreativity, giving food and practical support in Ukraine, and a Baptist church in Slovakia helping house and care for displaced Ukrainians. We also set up a working group of folk praying for Ukraine and wishing to host and support Ukrainian refugees. Through the year members have welcomed various Ukrainian families, couples, and individuals into their homes. The church as a whole has been enriched by sharing our lives with our Ukrainian friends, and learning more of their culture and traditions, but we all continue to pray for an end to the war so that they can return to their homeland.
Towards the end of the year as our community was affected by the rising cost of living, we opened our church building on Wednesday lunchtimes (after our toddler group) and Friday afternoons as a Warm Space, offering warmth, hot drinks, and company. Twice a month we also provided a Community Feast, offering a simple hot meal to anyone who needed it.
2022 ended with the joyful return of in-person Christmas events – to name a few: the walkabout nativity, which saw our children retell the Christmas story around the village, and was warmly enjoyed; a large Christmas community fayre which we helped organise and host; carols by candlelight returned to our church building and was a moving evening of worship; carols round the tree at our local pub saw a large number of local people gather and have the chance to hear the truth of the Christmas story
Financial review
The attached financial statements show the state of finances of the church and comply with the Charities Act 2011 and the Charities SORP.
The Statement of Financial Activities shows net expenditure for the year of £18,717 after charging depreciation of £13,521.
The balance sheet shows an decrease in net assets to £345,754. Of this figure, £76,449 now relates to the general fund, £22,043 relates to the designated funds and £247,262 relates to restricted funds for outreach, love gifts, mission, church property and building funds.
As pointed out at note 1.12, Brookings Cottage and The Arches are held by a separate charity, the ‘Brookings Trust’. As such, all assets, liabilities, income and expenses of this charity are excluded from the accounts of Creech St Michael Baptist Church.
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CREECH ST MICHAEL BAPTIST CHURCH
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
Reserves Policy
The church has adopted a minimum level of income reserves of three months of budgeted expenditure excluding restricted or designated expenditure. This reserve is adopted in order for the church to meet its financial obligations should there be a sudden reduction in its income. At the year end, the unrestricted net asset balance amounted to £76,449 which comfortably exceeds three months expenditure..
Investment powers and policy
The trustees are responsible for ensuring that sufficient cash is held to cover day to day expenses of the charity and the best returns available are achieved on surplus funds.
Risk management
The trustees have assessed the major risks to which the church is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
Structure, governance and management
The church was established by Trust Deed and has a written constitution, last updated 19 May 2014.
The trustees who served during the year and up to the date of signature of the financial statements were: I Kelland M Partridge D Browse (Resigned 23 May 2022) S Barnes (Resigned 23 May 2022) Revd. M Bradley J Warden B Cavaghan I Tremain C Medlock R Chinnadurai M Bailey (Appointed 25 April 2022) M Fox (Appointed 23 May 2022) A Law (Appointed 23 May 2022)
The Trustees were appointed by the membership of the church in general meeting. Induction and training needs are provided for by other trustees and external guidance is sought when needed.
The Church is a registered charity under registration number 1133944. The church address is Creech St Michael Baptist Church. Creech St Michael, Taunton, Somerset, TA3 5QQ.
Trustees' Expenses and Remuneration
In the current year and the previous year, no remuneration or expenses were paid to the Trustees in their capacity as charity Trustees. However, Revd Bradley, Mr Partridge, Mr Bailey and Mrs Warden all received remuneration for other aspects of their church duties. Remuneration paid to these individuals is shown within the accounts.
Related Charities
The custodian trustee of the church is the Baptist Union Corporation Limited (charity number 249635), which is controlled by the Baptist Union Council. The church is also a member of the Baptist Union of Great Britain.
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CREECH ST MICHAEL BAPTIST CHURCH
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
The trustees' report was approved by the Board of Trustees.
MGBradley Signed on 28/06/23 @ 18:21
.............................. Revd. M Bradley Trustee
Date: .............................................
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CREECH ST MICHAEL BAPTIST CHURCH
STATEMENT OF TRUSTEES' RESPONSIBILITIES
FOR THE YEAR ENDED 31 DECEMBER 2022
The trustees are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the church and of the incoming resources and application of resources of the church for that year.
In preparing these financial statements, the trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the church and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the church and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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CREECH ST MICHAEL BAPTIST CHURCH
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF CREECH ST MICHAEL BAPTIST CHURCH
I report to the trustees on my examination of the accounts of Creech St Michael Baptist Church (the church) for the year ended 31 December 2022.
Responsibilities and basis of report
As the trustees of the church 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 church’s financial statements carried out under section 145 of the 2011 Act. In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
Since the church’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of ICAEW, which is one of the listed bodies.
Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.
I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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1 accounting records were not kept in respect of the church as required by section 130 of the 2011 Act; or
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2 the financial statements do not accord with those records; or
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3 the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
P A Stallard Chartered Accountant Lentells Limited Ash House Cook Way Bindon Road Taunton TA2 6BJ
PA Stallard
Signed on 29/06/23 @ 07:00
Dated: .........................
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CREECH ST MICHAEL BAPTIST CHURCH
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2022
| Current financial year Unrestricted Unrestricted Restricted funds funds funds general designated 2022 2022 2022 Notes £ £ £ Income from: Donations and legacies 3 214,294 24,526 11,332 Charitable activities 5 1,009 - - Investments 4 269 - - Total income 215,572 24,526 11,332 Expenditure on: Charitable activities 6 187,576 26,390 56,181 Net incoming/(outgoing) resources before transfers 27,996 (1,864) (44,849) Net incoming/(outgoing) resources before transfers 27,996 (1,864) (44,849) Gross transfers between funds (65,540) 5,934 59,606 Net (expenditure)/income for the year/ Net movement in funds (37,544) 4,070 14,757 Fund balances at 1 January 2022 113,993 17,973 232,505 Fund balances at 31 December 2022 76,449 22,043 247,262 |
Total 2022 £ 250,152 1,009 269 251,430 270,147 (18,717) (18,717) - (18,717) 364,471 345,754 |
Total 2021 £ 214,585 379 427 |
|---|---|---|
| 215,391 | ||
| 190,402 | ||
| 24,989 24,989 - |
||
| 24,989 339,482 |
||
| 364,471 |
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
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CREECH ST MICHAEL BAPTIST CHURCH
STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2022
| Prior financial year Unrestricted Unrestricted Restricted funds funds funds general designated 2021 2021 2021 Notes £ £ £ Income from: Donations and legacies 3 196,961 7,382 10,242 Charitable activities 5 379 - - Investments 4 427 - - Total income 197,767 7,382 10,242 Expenditure on: Charitable activities 6 130,326 11,968 48,108 Net incoming/(outgoing) resources before transfers 67,441 (4,586) (37,866) Gross transfers between funds (36,862) 8,049 28,813 Net (expenditure)/income for the year/ Net movement in funds 30,579 3,463 (9,053) Fund balances at 1 January 2021 83,414 14,510 241,558 Fund balances at 31 December 2021 113,993 17,973 232,505 |
Total 2021 £ 214,585 379 427 |
|---|---|
| 215,391 | |
| 190,402 | |
| 24,989 - |
|
| 24,989 339,482 |
|
| 364,471 |
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CREECH ST MICHAEL BAPTIST CHURCH
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2022
| 2022 Notes £ £ Fixed assets Tangible assets 10 232,297 Current assets Debtors 11 9,726 Cash at bank and in hand 109,375 119,101 Creditors: amounts falling due within one year 12 (5,644) Net current assets 113,457 Total assets less current liabilities 345,754 Income funds Restricted funds 13 247,262 Unrestricted funds - designated 22,043 Unrestricted funds - general 76,449 345,754 The financial statements were approved by the Trustees on ......................... .............................. .............................. Revd. M Bradley J Warden Trustee Trustee MGBradley Signed on 28/06/23 @ 18:21 Jane Warden Signed on 28/06/23 @ 23:09 |
2021 £ 9,462 147,577 157,039 (6,723) |
£ 214,155 150,316 |
|---|---|---|
| 364,471 | ||
| 232,505 17,973 113,993 |
||
| 364,471 | ||
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CREECH ST MICHAEL BAPTIST CHURCH
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2022
| Notes Cash flows from operating activities Cash (absorbed by)/generated from operations 17 Investing activities Purchase of tangible fixed assets Investment income received Net cash used in investing activities Net cash used in financing activities Net (decrease)/increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year |
2022 £ (31,663) 269 |
£ (6,808) (31,394) - (38,202) 147,577 109,375 |
2021 £ (4,848) 427 |
£ 38,170 (4,421) - 33,749 113,828 147,577 |
|---|---|---|---|---|
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CREECH ST MICHAEL BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
1 Accounting policies
Charity information
The Church is a registered charity. The charity’s registration number is 1133944. The church address is Creech St Michael Baptist Church, Creech St Michael, Taunton, Somerset TA3 5QQ.
1.1 Accounting convention
The accounts have been prepared in accordance with the church's trust deed, 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)” (as amended for accounting periods commencing from 1 January 2016). The church is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling, which is the functional currency of the church. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2 Going concern
At the time of approving the financial statements, the trustees have a reasonable expectation that the church has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3 Charitable funds
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes.
Unrestricted designated funds are funds which have been designated for a particular purpose. These funds may be redesignated at the discretion of the church. An analysis of the unrestricted designated funds is given in the notes to the financial statements.
Restricted Income funds are funds which are subject to specific trusts and objects. These comprise specific love gifts, amounts earmarked out of general giving specifically for Outreach and Mission, and the original amounts used for the re-building of the church building. The purposes and uses of the restricted funds are set out in the notes to the accounts.
1.4 Income
Income is recognised when the church is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the church has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Legacies are recognised on receipt or otherwise if the church has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
Lettings income is recognised when the rental is due.
Investment income is accounted for when it is receivable.
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CREECH ST MICHAEL BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
1 Accounting policies
(Continued)
1.5 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
Grants
Grants and donations are accounted for when paid or awarded, if the award creates a binding obligation.
Other Charitable Expenditure
Expenditure that directly relates to a cost category is charged solely to that category. However, where expenditure relates to at least two such categories, the cost is apportioned as necessary. Expenditure is generally recognised when incurred and is accounted for gross.
1.6 Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings 1% straight line (Improvements 5%) Fixtures and fittings 20% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
The deacons believe the historic cost of the freehold property to be £250,000 as incurred between 1983 and 1985. This specifically excludes the historic cost of the land which was gifted in the 1860’s and is certainly immaterial to these accounts.
The original cost of fixtures and equipment at 31 December 1999 was not known. It was not cost effective to value all of the related assets. Therefore, the cost at that date has been taken at its insurance value as per the September 1999 declaration as allowed by the Charities SORP. Fixtures and equipment purchased since that date have been capitalised at cost and subjected to depreciation as above.
1.7 Impairment of fixed assets
At each reporting end date, the church reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
1.8 Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
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CREECH ST MICHAEL BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
1 Accounting policies
(Continued)
1.9 Financial instruments
The church has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the church's balance sheet when the church becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the church’s contractual obligations expire or are discharged or cancelled.
1.10 Employee benefits
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the church is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.11 Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12 Brookings Cottage and The Arches
Both of these properties are held by a separate charity, the ‘Brookings Trust’, and a separate return is made to the Charity Commission. As such, all assets, liabilities, income and expenses of this charity are excluded from the accounts of Creech St Michael Baptist Church.
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CREECH ST MICHAEL BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
2 Critical accounting estimates and judgements
In the application of the church’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
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CREECH ST MICHAEL BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
3 Donations and legacies
| Unrestricted Unrestricted Restricted funds funds funds general designated 2022 2022 2022 £ £ £ Donations and gifts 214,294 24,526 11,332 Donations and gifts Offerings 159,421 - - Income tax recoverable 29,775 - - Love gifts - - 9,118 Other specified income 10,934 7,144 2,214 Outreach income - 17,382 - Sundry receipts 14,164 - - 214,294 24,526 11,332 |
Total Unrestricted Unrestricted Restricted funds funds funds general designated 2022 2021 2021 2021 £ £ £ £ 250,152 196,961 7,382 10,242 159,421 151,963 - - 29,775 28,216 1 - 9,118 - - 9,045 20,292 16,480 700 1,197 17,382 - 6,681 - 14,164 302 - - 250,152 196,961 7,382 10,242 |
Total 2021 £ 214,585 |
|---|---|---|
| 151,963 28,217 9,045 18,377 6,681 302 |
||
| 214,585 |
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CREECH ST MICHAEL BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
4 Investments
| Unrestricted | Unrestricted | |
|---|---|---|
| funds | funds | |
| general | general | |
| 2022 | 2021 | |
| £ | £ | |
| Interest receivable | 269 | 427 |
| Charitable activities | ||
| 2022 | 2021 | |
| £ | £ | |
| Charitable rental income | 1,009 | 379 |
| Analysis by fund | ||
| Unrestricted funds - general | 1,009 | |
| For the year ended 31 December 2021 | ||
| Unrestricted funds - general | 379 |
5 Charitable activities
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CREECH ST MICHAEL BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
6 Charitable activities
| Staff costs Depreciation and impairment Charitable Giving Property expenditure Church meetings and speaker expenses Youth activities Share of support costs (see note 7) Analysis by fund Unrestricted funds - general Unrestricted funds - designated Restricted funds For the year ended 31 December 2021 Unrestricted funds - general Unrestricted funds - designated Restricted funds |
2022 £ 83,570 13,403 86,648 45,206 4,960 6,848 240,635 29,512 270,147 187,576 26,390 56,181 270,147 |
2021 £ 68,007 11,068 49,739 23,339 5,270 2,522 |
|---|---|---|
| 159,945 30,457 |
||
| 190,402 | ||
| 130,326 11,968 48,108 |
||
| 190,402 |
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CREECH ST MICHAEL BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
7 Support costs
| Staff costs Depreciation Subscriptions Bank charges Catering costs Office running costs Accountancy, payroll & Independent Examination Analysed between Charitable activities |
Support costs Governance costs £ £ 19,668 - 118 - 1,208 - 129 - 2,234 - 3,724 - 2,431 - 29,512 - 29,512 - |
2022 £ 19,668 118 1,208 129 2,234 3,724 2,431 29,512 29,512 |
Support costs Governance costs £ £ 21,841 - 118 - 1,169 - 44 - 621 - 4,475 - 2,189 - 30,457 - 30,457 - |
2021 £ 21,841 118 1,169 44 621 4,475 2,189 |
|---|---|---|---|---|
| 30,457 | ||||
| 30,457 |
8 Trustees
In the current year and the previous year, no remuneration or expenses were paid to the Trustees in their capacity as charity Trustees. However, Revd Bradley, Mr Partridge and Mrs Warden all received remuneration for other aspects of their church duties. Remuneration paid to these individuals is shown in the notes to the financial statements.
9 Employees
The average monthly number of employees during the year was:
| Administrative Pastoral Total Employment costs Wages and salaries Social security costs Other pension costs |
2022 Number 3 3 6 2022 £ 90,956 1,562 10,720 103,238 |
2021 Number 3 2 |
|---|---|---|
| 5 | ||
| 2021 £ 77,999 3,287 8,562 |
||
| 89,848 |
A defined contribution pension scheme is made available to all eligible employees. The employer cost of this scheme is shown above. The outstanding liability at the year end was £1,115 (2021: £857).
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CREECH ST MICHAEL BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
9 Employees
(Continued)
There were no employees whose annual remuneration was more than £60,000.
10 Tangible fixed assets
| Freehold land and buildings Fixtures and fittings £ £ Cost At 1 January 2022 300,831 163,265 Additions - 31,663 At 31 December 2022 300,831 194,928 Depreciation and impairment At 1 January 2022 102,703 147,238 Depreciation charged in the year 5,042 8,479 At 31 December 2022 107,745 155,717 Carrying amount At 31 December 2022 193,086 39,211 At 31 December 2021 198,128 16,027 |
Total £ 464,096 31,663 |
|---|---|
| 495,759 | |
| 249,941 13,521 |
|
| 263,462 | |
| 232,297 | |
| 214,155 |
Generally, all of the fixed assets are used for charitable purposes, though some of the fixtures and equipment are used in the administration function and the church centre is periodically let when under used for other purposes.
11 Debtors
| Amounts falling due within one year: Other debtors Prepayments and accrued income |
2022 £ 5,000 4,726 9,726 |
2021 £ 5,000 4,462 |
|---|---|---|
| 9,462 |
12 Creditors: amounts falling due within one year
| Other taxation and social security Accruals and deferred income |
2022 £ 2,096 3,548 5,644 |
2021 £ 3,592 3,131 |
|---|---|---|
| 6,723 |
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CREECH ST MICHAEL BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
13 Restricted funds
The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:
| Balance at 1 January 2021 r £ Love Gifts & Mission Fund 9,133 Other Specified Fund 3,532 Church Property & Building Fund 224,893 New Wine Fund 4,000 241,558 |
Movement in funds Incoming esources Resources expended £ £ 9,044 (38,225) 1,198 (291) - (9,592) - - 10,242 (48,108) |
Transfers Balance at 1 January 2022 r £ £ 28,813 8,765 - 4,439 - 215,301 - 4,000 28,813 232,505 |
Movement in funds Incoming esources Resources expended £ £ 9,118 (38,947) 2,214 (2,199) - (13,035) - (2,000) 11,332 (56,181) |
Transfers Balance at 31 December 2022 £ £ 29,670 8,606 - 4,454 29,936 232,202 - 2,000 59,606 247,262 |
Transfers Balance at 31 December 2022 £ £ 29,670 8,606 - 4,454 29,936 232,202 - 2,000 59,606 247,262 |
|---|---|---|---|---|---|
| 247,262 |
The Outreach and Mission Funds receive and disburse specified proportions of unspecified offerings received including tax recoverable. The proportions for the current year amounted to 3% for Outreach (2021: 3%) and 15% for Mission (2021: 15%).
The Love Gifts and Other Specified Fund receives and disburses specific gifts.
The Church Property and Building Fund relates to the funds used for the re-building and improvement of the church and the centre.
The New Wine fund and the llfracombe BC fund were created in 2019 for specific giving.
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CREECH ST MICHAEL BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
14 Designated funds
The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:
| Movement in funds | Movement in funds | Movement in funds | Movement in funds | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Balance at | Incoming | Resources | Transfers | Balance at | Incoming | Resources | Transfers | Balance at | |
| 1 January 2021 | resources | expended | 1 January 2022 | resources | expended | 31 December | |||
| 2022 | |||||||||
| £ | £ | £ | £ | £ | £ | £ | £ | £ | |
| Youth Fund | 1,793 | - | - | - | 1,793 | - | - | - | 1,793 |
| Fellowship Fund | 168 | 684 | (791) | - | 61 | 7,144 | (7,082) | - | 123 |
| Outreach Life Cafe | - | 6,698 | (8,984) | 2,286 | - | 17,169 | (14,872) | - | 2,297 |
| Outreach/Local Mission Fund | 12,549 | - | (2,193) | 5,763 | 16,119 | 214 | (4,437) | 5,934 | 17,830 |
| 14,510 | 7,382 | (11,968) | 8,049 | 17,973 | 24,527 | (26,391) | 5,934 | 22,043 |
The Youth Fund receives amounts given to support Youth activities and those families working with young people in the local community. The Special Mission fund is to help individuals with specific training and support.
The Fellowship Fund receives amounts from the General Fund for use in particular cases of need and hardship within the fellowship.
The Outreach Life Cafe was set up in 2016. Surplus funds generated are distributed to good causes.
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CREECH ST MICHAEL BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
15 Analysis of net assets between funds
| Analysis of net assets between funds | ||
|---|---|---|
| Unrestricted Funds Unrestricted Designated Funds Restricted Funds 2022 2022 2022 £ £ £ Fund balances at 31 December 2022 are represented by: Tangible assets 95 - 232,202 Current assets/(liabilities) 76,354 22,043 15,060 76,449 22,043 247,262 |
Total Unrestricted Funds Unrestricted Designated Funds Restricted Funds 2022 2021 2021 2021 £ £ £ £ 232,297 5,062 368 208,725 113,457 108,931 17,605 23,780 345,754 113,993 17,973 232,505 |
Total 2021 £ 214,155 150,316 |
| 364,471 |
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CREECH ST MICHAEL BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
16 Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
| 2022 | 2021 | |
|---|---|---|
| £ | £ | |
| Aggregate compensation | 81,552 | 65,468 |
Transactions with related parties
In the current year and the previous year, no remuneration or expenses were paid to the Trustees in their capacity as charity Trustees. However, Revd Bradley, Mr Partridge, Mr Bailey and Mrs Warden all received remuneration for other aspects of their church duties. Remuneration paid to these individuals is shown within the accounts.
17 Cash generated from operations
| Cash generated from operations 2022 £ (Deficit)/surpus for the year (18,717) Adjustments for: Investment income recognised in statement of financial activities (269) Depreciation and impairment of tangible fixed assets 13,521 Movements in working capital: (Increase)/decrease in debtors (264) (Decrease)/increase in creditors (1,079) Cash (absorbed by)/generated from operations (6,808) |
2021 £ 24,989 (427) 11,186 240 2,182 |
|---|---|
| 38,170 |
18 Analysis of changes in net funds
The church had no debt during the year.
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