## Cannon Street Memorial Baptist Church
Report and Accounts Year ended 31 March 2023
1 Lamb's Passage, London EC1Y 8AB www.stewardship.org.uk
## **CANNON STREET MEMORIAL BAPTIST CHURCH**
## **CHARITY INFORMATION**
## **FOR THE YEAR ENDED 31 MARCH 2023**
**Trustees** Pastor Bryan Scott (minister and team leader) Durrant Atkinson Donald Campbell Sharon Geohagan-Smith Eileen Harvey (resigned February 2023) Inez Hayles Audrey Jackson (appointed March 2023) Patsy Mair Stephanie McConnell Josephine Molyneux Janet Smith (resigned February 2023) **Other Key Staff** Pastor Leone Martin **Custodian Trustees** Heart of England Baptist Association 480 Chester Road Sutton Coldfield Birmingham B73 5BP **Governing Document** Constitution for a Trust adopted 1 September 2009
**Charity Registration Number** 1134123 **Principal Address** 300 Soho Road Handsworth Birmingham B21 9NA **Independent Examiner** Ajay Rajani FCIE Stewardship 1 Lamb's Passage London EC1Y 8AB
## **Bankers**
Barclays Bank 351-359 Soho Road Handsworth Birmingham B21 9SE
|**Contents**|**Page**|
|---|---|
|Charity Information|1|
|Trustees' Annual Report|2-8|
|Independent Examiner's Report|9|
|Statement of Financial Activities|10|
|Balance Sheet|11|
|Notes to the Accounts|12-19|
|Detailed Statement of Financial Activities with Comparatives|20|
Page 1
## **CANNON STREET MEMORIAL BAPTIST CHURCH**
## **TRUSTEE’S REPORT FOR THE YEAR ENDED 31 MARCH 2023**
2023.
## **Objects of the charity**
The charity is a charitable unincorporated associa�on (namely a Trust) governed by a Cons�tu�on.
The principal purpose of the Church, as set out in the Cons�tu�on is the advancement of the Chris�an faith according to the principles of the Bap�st denomina�on. The Church may also advance educa�on and carry out other charitable purposes in the United Kingdom and/or other parts of the world.
We are a warm, caring and friendly fellowship. Worship styles are a mixture of tradi�onal and modern. We are a black majority inner-city Church, a lively charisma�c-evangelical fellowship striving to ‘empower God’s people’. As bible believing Chris�ans, we minister in a mul�-racial, mul�-faith community. We have a thriving work amongst over 30 young people. We have a luncheon club that serves the community every Tuesday and a soup kitchen that serves every Saturday. People enjoy our lively worship, bible-based preaching and our friendly welcome.
Commission.
## **Mission Statement**
“Empowering God’s People “:
We seek to empower people in the following ways.
- By leading them to a personal knowledge of Jesus Christ, to whom all power has been given in heaven and earth.
-
- direc�on and guidance.
-
- By assis�ng young people especially in spiritual and general educa�on.
- By crea�ng an atmosphere of fellowship, acceptance, and friendship in the Lord.
- By ministering to our community through funerals, weddings, dedica�ons, Olive Branch community outreach and by suppor�ng Community based issues such as health, race and community services.
## **Membership and Church Atendance**
Atendance at our morning worship as picked up since the peak of the pandemic has passed. Our services are lived streamed via Facebook and YouTube. Our membership record stands at over 220
members. We no longer have an in-person evening service on a Sunday but we do have a Sunday evening prayer mee�ng via Zoom.
Administra�on, Olive Branch, Sunday school, Mission and Praise and Worship.
Page 2
## **CANNON STREET MEMORIAL BAPTIST CHURCH**
## **TRUSTEE’S REPORT FOR THE YEAR ENDED 31 MARCH 2023 con�nued**
##
We currently have two full �me Ministers, Team Leader Reverend Bryan Scot and Reverend Leone Mar�n. We also have a part �me caretaker. In addi�on to three paid members of staff we also have several volunteers in the office to help with any general office du�es.
## **Worship**
Our morning worship is a mix of modern and tradi�onal choruses and hymns using the Complete Mission Praise and Redemp�on hymn books and our audio visual screen. It is supported by our musicians and led by our choir and Praise and Worship Team.
## **Sunday school**
Our Sunday school has resumed two Sundays per month post pandemic. Several new volunteers have been recruited to join the team.
## **Evangelism**
We have, for over 20 years, taken part in a ‘Walk of Witness’ which takes place on Good Friday, walking in a procession, together with other Churches in the community, through the heart of Handsworth witnessing to everyone we encounter, neighbours or people just passing through the area, shopping or going about their general business.
We also promote other evangelis�c events such as Open-Air Witness. The word of God is usually preached together with singing, tes�fying and distribu�ng leaflets and also sharing our faith with the community and praying for anyone who may request prayers. This takes place once a month and is supported by a faithful outreach team.
## **Prayer**
Our Wednesday morning prayer mee�ng con�nues to meet weekly in person. We also meet every Sunday evening via Zoom which commenced at the start of 2023. In the fast few years we have had a church wide month of prayer and fas�ng including daily prayer mee�ngs on Zoom in the month of January. We also had a week of prayer and fas�ng as a church in July. Both programmes are scheduled to take place again in 2024.
On a monthly basis we also host our Fresh Fire Service prayer service the second Friday of the month from the 10pm - 1am. A�er a couple of years on Zoom this has now returned to an in person mee�ng.
## **Funerals and Baby Dedica�ons**
We also host regular dedica�on and funeral services throughout the year which has turned out to be a very good opportunity for evangelism though funerals are sad occasions. For example, we were advised that several converts had their first encounter with God through their atendance at the church, when atending a funeral.
Page 3
## **CANNON STREET MEMORIAL BAPTIST CHURCH**
## **TRUSTEE’S REPORT FOR THE YEAR ENDED 31 MARCH 2023 con�nued**
## **Social Ac�on**
## Luncheon Club
We have a Luncheon Club that runs every Tuesday 11am-2pm. We also deliver meals to people in their homes and even some meals to the local hospital as and when required or requested. The Birmingham City Council Adult Social Care services also run a surgery at our luncheon club that provides support and advice to the community.
## Soup Kitchen
and cake to those in need within the community. Each week over 70 people benefit from this service.
## Christmas Dinner for the Homeless
The Church has provided and con�nues to provide a full Christmas dinner to the homeless, our seniors and those members of the community who would otherwise be on their own over Christmas. This is provided free of charge. We also provide hampers for those in need. A Christmas atmosphere is provided. This is very much appreciated, well atended and enjoyed immensely by those who atend. This service is provided en�rely by volunteers from within the Church.
## **Premises**
We have various rooms which consists of, the main Church Hall (The Sanctuary), School Room, Olive Branch, Kitchen, and an extension to the Olive Branch Community Centre, Upper floor with a capacity for about 80 people. Our premises are used for a variety of func�ons i.e. Bap�sm, private events, concerts, events for the voluntary and nonvoluntary sector.
## **Church Events**
Annual events at Cannon Street consists of a Family Fun Day, Dads & Lads Away weekend and conferences.
– Family Fun Day This usually takes place on a Saturday in July with various ac�vi�es such as sports, bouncy castles, face pain�ng, stalls, exercise classes, music and food at the Laurel Road Community Centre.
– Dads & Lads Away Weekend It is an opportunity to work and fellowship with boys and young men aged 8 -18yrs, they par�cipate in outdoor adventures such as camping, paint balling, quad bike, bicycle riding and go-car�ng, barbeques and various fun outdoors ac�vi�es.
– Conferences and Training Various throughout the year.
## **Annual Retreat**
Members, friends and families atends, there are normally guest speakers with seminars and workshop throughout this interac�ve weekend. This is a �me to seek the Lord and is usually held at a hotel in the countryside where there is litle or no distrac�ons to take away from purpose of retreat.
Page 4
## **CANNON STREET MEMORIAL BAPTIST CHURCH**
## **TRUSTEE’S REPORT FOR THE YEAR ENDED 31 MARCH 2023 con�nued**
## **Ecumenical Ac�vi�es**
Handsworth & District Chris�an Outreach (Hands Outstretched) is a group of approximately 12 Local Churches who meet to evangelise together e.g. Good Friday Walk of Witness and schools ministry.
The schools team meet together to prepare for schools outreach by going into schools to teach the gospel in a fun way and some�mes take school assemblies. We are looking to extend this ministry to enable us to go into more schools to spread the gospel.
## **House Groups (Cell Groups)**
Cell groups were relaunched in January 2023. There are now c6 rooms that meet at least once a fortnight in homes or at another agreed loca�on. There is also one group that meets on Zoom. In addi�on to cell groups there is also a biweekly Bible study that takes place once per fortnight on Zoom.
## **Achievements and Performance**
As things being to gradually return to normal at the end of another exci�ng and yet busy year, we must give thanks to God for the many blessings he has bestowed on us.
In prepara�on for the Good Friday Walk of Witness we con�nue to have various zoom mee�ngs. Which includes prayer mee�ngs, a fund-raising concert and joint services at the different local Churches taking part.
We also had several candidates who went through the waters of bap�sm during Easter and November.
The Food bank which was set up in conjunc�on with other local churches in the area con�nues to flourish. Food is donated by supermarkets and church members, so it’s kept well stocked. The food bank is maned by volunteers from the churches and serves those in need within the community. This is proving to be a much-needed service in the community.
## **Volunteers**
We would like to thank all the volunteers who con�nue to work �relessly behind the scenes, from week to week. In par�cular: Church cleaners, communion preparers, gardeners, mini-bus drivers, Olive Branch Luncheon Club workers, PA & audio-visual operators, musicians, property maintenance workers, stewards, caretaker, Sunday offering counters, youth worker, Sunday school volunteers and others.
## **Members**
A large number or long-standing members were called to glory during the period April 2022 to March 2023. All will be sadly missed.
New members were welcomed into membership, some were newly bap�sed others came as new members from other fellowship(s).
accommoda�on.
Our membership now stands at 230 paid up with HEBA.
Page 5
## **CANNON STREET MEMORIAL BAPTIST CHURCH**
## **TRUSTEE’S REPORT FOR THE YEAR ENDED 31 MARCH 2023 con�nued**
## **Structure, governance and management**
The appointment of Charity Trustees shall be undertaken by processes that are public, clear and open so that all Church Members are enabled to consider prayerfully who should be appointed as Charity Trustees. The process shall ensure that no�ce is given of any forthcoming elec�on so that Church Members may freely nominate prospec�ve Charity Trustees. These names shall be submited (a�er they have indicated a willingness to be appointed) for decision to the Church Members with the inten�on of ensuring that those appointed have a sufficient level of support from them.
Nomina�ons for the role of Charity Trustees other than a Minister shall be made to the Church Secretary (or equivalent) not later than three Sundays (or other regular weekly mee�ng �me when the Church gathers together) before the Ordinary Church Members’ Mee�ng at which the elec�on is to be held. Nomina�ons must be submited in wri�ng with the suppor�ng signature of two other Church Members and the consent of the candidate. No person may nominate more candidates than there are places vacant. Requests for nomina�ons shall be made at all services on the two Sundays (or other regular weekly mee�ng �me when the Church gathers together) immediately before that Sunday [alterna�ve or day] when nomina�ons must cease. In cases of unavoidable absence Church Members may exercise a postal vote where this is permited under clause 13.4 provided that votes are returned before the commencement of the Church Members’ Mee�ng at which the elec�on is to be held.
because insufficient candidates have received votes from at least 50% of those members vo�ng then, if that Church Members’ Mee�ng agrees, the person chairing the Church Members’ Mee�ng shall delete from the names of those who have not been elected those with the lowest number of votes so as to leave as many names as there now are vacancies (he or she may use his or her cas�ng vote where there is a �e). These names shall be submited to that or another Church Members’ Mee�ng for ballo�ng on the remaining places.
purpose through its ac�vi�es ac�ng according to the will of God as discerned by the Church Members’ Mee�ng and subject to any specific or general direc�ons of the Church Members’ Mee�ng in rela�on to the maters set out in clause 9.2 of the Church Cons�tu�on and Rules. Regularity of - The Charity Trustees convene mee�ngs of the whole group ….. See 17.2 of the cons�tu�on.
For maters requiring a decision the Charity Trustees shall, so far as possible, seek consensus on all maters considered at their mee�ngs but where this is not possible a vote shall be taken and the outcome recorded as the resolu�on of the Charity Trustees. The Charity Trustees shall determine when and how frequently they shall meet provided that they shall convene mee�ngs of the whole group not less than once every two months. Minutes shall be prepared of the proceedings at the mee�ngs of the Charity Trustees including any appointments, the names of those present, the decisions taken, and where appropriate the reasons for the decisions and the Charity Trustees shall decide from �me to �me whether all or part of these minutes shall be treated as confiden�al.
## **Key risks and uncertain�es**
review the charity's ac�vi�es regularly to iden�fy significant risks and, where possible, they take appropriate measures to mi�gate those risks.
Page 6
## **CANNON STREET MEMORIAL BAPTIST CHURCH**
## **TRUSTEE’S REPORT FOR THE YEAR ENDED 31 MARCH 2023 con�nued**
## **Financial review**
As explained in the accounts in note 2(a) ‘Restatement of the results reported previously’, during the prepara�on of the accounts it came to light that the amounts spent on improving the church building should not have been capitalised because the charity neither owns, nor has a lease for, the church building. In the previous year’s accounts the church building had a carrying value of £1,351,568 and to correct the error (a�er taking advice from the Heart of England Bap�st Associa�on), the results reported previously have been re-stated. This has had the effect of reducing the charity’s previously reported net assets by £1,352,000 (which was the carrying value of the church building in the previous year’s accounts) to £469,201.
During the year income increased by £22,000 to £252,000, and expenditure increased by £17,000, to £255,000. As a result the deficit for the year was £3,000 (2022: £8,000) and the charity's net assets decreased by £3,000 to £466,000. Net assets comprised tangible assets (mainly residen�al property) of £276,000, cash of £163,000 and other net current assets of £27,000.
## **Reserves policy**
The trustees have determined that the charity should aim to hold unrestricted cash of no less than three months of all expenditure plus a further three months staff costs to allow the church to adapt to any changes in the income or expenditure. This target for reserves amounts to approximately £85,000. At the year end the charity held unrestricted cash of £156,000 and the charity is complying with its reserves policy. It is an�cipated that some of these reserves will be used over the coming year (e.g. to help purchase a new minibus).
## **Responsibili�es of trustees under charity law**
accordance with applicable law and United Kingdom Accoun�ng Standards (United Kingdom Generally Accepted Accoun�ng Prac�ce).
true and fair view of the state of the affairs of the charity as at the balance sheet date and of its incoming resources and applica�on of resources, including income and expenditure, for the financial year. In preparing these financial statements, the trustees are required to:
1. select suitable accoun�ng policies and apply them consistently;
2. observe the methods and principles in the Chari�es SORP;
3. make judgements and es�mates that are reasonable and prudent;
4. state whether the applicable accoun�ng standards have been followed, subject to any material
departures disclosed and explained in the financial statements; and
5. that the charity will con�nue in opera�on.
The trustees are responsible for keeping proper accoun�ng records that disclose with reasonable accuracy at any �me the financial posi�on of the charity and enable them to ensure that the financial statements comply with the Chari�es Act 2011 and the Charity (Accounts and Reports) Regula�ons 2008. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the preven�on and detec�on of fraud and other irregulari�es.
Page 7
## **Approval**
This report was approved by the trustees and signed on their behalf by:
## **Bryan Scott**
……………………………………….
Pastor Bryan Scot – minister and trustee
Date: 18 January 2024
Page 8
## **INDEPENDENT EXAMINER'S REPORT**
## **TO THE TRUSTEES OF**
## **CANNON STREET MEMORIAL BAPTIST CHURCH ('the Charity')**
I report to the charity trustees on my examination of the accounts of the Charity for the year ended 31 March 2023 on pages 10 to 20 following, which have been prepared on the basis of the accounting policies set out on pages 12 and 14.
## **Responsibilities and basis of report**
As the charity’s trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act').
I report in respect of my examination of the Charity’s accounts carried out under section 145 of the 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 Act.
## **Independent examiner’s statement**
Since the Charity’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 Fellow of the Association of Charity Independent Examiners, which is one of the listed bodies.
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:
1. accounting records were not kept in respect of the Charity as required by section 130 of the Act; or 2. the accounts do not accord with those records; or
3. the accounts 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 accounts to be reached.
## **Ajay Rajani**
Ajay Rajani FCIE Fellow of the Association of Charity Independent Examiners Stewardship 1 Lamb's Passage London EC1Y 8AB
Date: 19 January 2024
Page 9
## **CANNON STREET MEMORIAL BAPTIST CHURCH**
## **STATEMENT OF FINANCIAL ACTIVITIES**
## **FOR THE YEAR ENDED 31 MARCH 2023**
|Note
**INCOME AND ENDOWMENTS FROM:**
Donations and legacies
3
Charitable activities
4
Other trading activities
5
Investments: bank interest
**Total income and endowments**
**EXPENDITURE ON:**
Charitable activities
6
**Total expenditure**
**Net income/(expenditure)**
**Transfers between funds**
13
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
**Total funds carried forward**
13|Unrestricted
Funds
£
178,220
12,753
12,000
391
203,363
203,155
203,155
209
(3,338)
(3,129)
456,059
452,930|Restricted
Funds
£
25,370
22,698
-
-
48,068
51,705
51,705
(3,637)
3,338
(299)
13,142
12,843|Total
Funds
2023
£
203,590
35,451
12,000
391
251,432
254,860
254,860
(3,428)
-
(3,428)
469,201
465,773|Restated
Total
Funds
2022
£
194,767
24,263
10,420
226|
|---|---|---|---|---|
|||||229,676|
|||||237,308|
|||||237,308|
||||||
|||||(7,632)
-|
|||||(7,632)
476,833|
|||||469,201|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing operations.
The notes on page 12 to 20 form part of these accounts.
Page 10
## **CANNON STREET MEMORIAL BAPTIST CHURCH**
## **BALANCE SHEET**
## **AS AT 31 MARCH 2023**
|Note
**FIXED ASSETS**
Tangible assets
8
**CURRENT ASSETS**
Debtors
9
Cash at bank and in hand
10
**CREDITORS: Amounts falling**
**due within one year**
11
**Net current assets / (liabilities)**
**TOTAL NET ASSETS**
**FUND BALANCES**
13
Unrestricted Funds
General funds
Designated funds
Restricted Funds|Unrestricted
Funds
£
275,905
275,905
27,821
156,242
184,063
(7,038)
177,025
452,930
177,025
275,905
452,930
-
452,930|Restricted
Funds
£
-
-
14,993
7,172
22,165
(9,322)
12,843
12,843
-
-
-
12,843
12,843|Total
Funds
2023
£
275,905
275,905
42,814
163,414
206,227
(16,360)
189,868
465,773
177,025
275,905
452,930
12,843
465,773|Restated
Total
Funds
2022
£
276,852|
|---|---|---|---|---|
|||||276,852|
|||||39,627
173,670|
|||||213,297
(20,948)|
|||||192,349|
|||||469,201|
|||||179,207
276,852|
|||||456,059
13,142|
|||||469,201|
The financial statements were approved by the Board of Trustees and were signed on its behalf by:
## **Bryan Scott**
--------------------------------------Pastor Bryan Scott - trustee
Date: 18 January 2024
Charity number: 1134123
The notes on page 12 to 20 form part of these accounts.
Page 11
## **CANNON STREET MEMORIAL BAPTIST CHURCH**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **1 Statutory Information**
The charity is Trust registered with the Charity Commission in England & Wales. The charity's registered number and principal address can be found on the Charity Information page.
## **2 Accounting Policies**
These financial statements are prepared on a going concern basis, under the historical cost convention.
These financial statements have been prepared in accordance with the "Statement of Recommended Practice: 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) ("the Charities SORP"), with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland ("FRS 102") and with the Charities Act 2011. The charity meets the definition of a public benefit entity as set out in FRS 102.
The Charities (Accounts and Reports) Regulations 2008 (the '2008 Regulations') requires charities to prepare their accounts in accordance with 'Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005' but this accounting standard has since been withdrawn and has been replaced by the Charities SORP mentioned in the preceding paragraph. The charity has prepared these financial statements in accordance with the new Charities SORP; this departure from the 2008 Regulations is believed to be necessary for these financial statements to give a 'true and fair view'.
The principles adopted in the preparation of the financial statements are set out below.
## a) Restatement of the results reported previously
During the preparation of these accounts two ,material misstatements in the results reported previously came to light:
- i) in previous years the charity had incorrectly capitalised improvements to a church building that it does not own and for which it does not have a formal lease.
- ii) the restricted fund balances reported in the accounts prepared for previous years did not tally with the charity's own records because (a) the restricted fund balances presented in those accounts included unrestricted general funds that had been set aside by the trustees as a reserve (b) because of typographical errors.
To correct these errors the results reported previously have been restated as follows:
|in included in restricted funds
Re-stated fund balances on 31 March
in included in restricted funds
Re-stated fund balances on 31 March
a) Re-statement to exclude the church property
Fund balances reported previously on 31 March 2022
b) Re-statement to correct general funds previously
c) Re-statement to correct typographical errors
Fund balances reported previously on 31 March 2021
a) Re-statement to exclude the church property
b) Re-statement to correct general funds previously|General
Funds
£
89,366
-
94,850
(5,009)
179,207
General
Funds
£
96,051
-
94,850
190,901|Designated
Funds
£
1,628,420
(1,351,568)
276,852
Designated
Funds
£
1,629,367
(1,351,568)
-
277,799|Restricted
funds
£
102,983
-
(94,850)
5,009
13,142
Restricted
funds
£
102,983
-
(94,850)
8,133|At 31.03.22
£
1,820,769
(1,351,568)
-
-|
|---|---|---|---|---|
|||||469,201|
|||||At 31.03.21
£
1,828,401
(1,351,568)
-|
|||||476,833|
With respect to the excluded church property, a corresponding adjustment has been made to the carrying value of the charity's tangible fixed assets.
## b) Going concern
The trustees have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the charity to continue as a going concern. The trustees have made this assessment for a period of at least one year from the date of approval of the financial statements. In particular the trustees have considered the charity's forecasts and projections and the possible implications should projected income and / or expenditure vary unexpectedly. The trustees have concluded that there is a reasonable expectation that the charity has adequate resources to continue to operate for the foreseeable future. The charity therefore continues to adopt the going concern basis in preparing its financial statements.
Page 12
## **CANNON STREET MEMORIAL BAPTIST CHURCH**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **2 Accounting Policies continued**
## c) Income
Income including investment income is recognised in the period in which the charity becomes entitled to receipt, the amount receivable can be measured with reasonable certainty, and receipt is probable. For the most part, income is generally recognised when it is received. Income is only deferred when the charity has to fulfil conditions before becoming entitled to it or where the donor has specified that the income is to be expended in a future period.
Income from donations and legacies includes recoverable gift aid, which is recognised when the related donation is received; gift aid that has not been recovered by the balance sheet date is included as a debtor.
The charity relies on volunteers to carry out many of its activities. However, in accordance with the SORP, the value of these services has not been included in these financial statements as they cannot be reliably measured.
Income from charitable activities represents income receivable from goods, services and facilities supplied in furtherance of the charity's charitable objects. It includes income from church retreats, camps, and other church activities and events. It also includes income from activities that take place at the church's community centre and from dedications, weddings and funerals.
Income from other trading activities represents income receivable from activities undertaken to generate funds for the charity. It includes income from letting residential property that, temporarily, is not being used in the charity's activities and from other commercial lettings.
Investment income represents income generated by the charity's assets and comprises bank interest.
## d) Expenditure
Expenditure, including irrecoverable VAT, is recognised when it is incurred or, if earlier, when a legal or constructive obligation for a payment arises provided that it is probable that settlement will be required and the amount of the obligation can be measured reliably.
The charity makes grants to other institutions and individuals to further its charitable objectives. Grants payable are recognised as constructive obligations arise, which is generally when the charity expresses a commitment to the recipient that can be measured reliably and then only to the extent that any conditions associated with the grant are outside of the control of the charity.
The cost of raising funds is not significant and has not been separately disclosed.
Governance costs, which are included in expenditure on charitable activities but are identified separately in the notes to the accounts, includes costs associated with the independent examination of the financial statements, compliance with constitutional and statutory requirements and any other expenditure incurred on the strategic management of the charity.
## e) Fund accounting
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.
## f) Tangible fixed assets
Items purchased or donated for the charity's own use are capitalised when the cost of purchased items, or the fair value of donated items, is more than £1,000 and the item is expected to benefit the charity over more than one accounting period. Depreciation is charged on a straight line basis so as to write down the value of each asset to its estimated residual value (if any) over its expected useful economic life. To achieve this objective the following rates of depreciation are charged:
Freehold residential properties Over 50 years after taking account of the building's residual value Fixtures, fittings and equipment Over 3 to 7 years Motor vehicles Over 4 years
The residual value of the charity's residential properties is believed to be very high and the cumulative provision for depreciation is not considered to be significant. Therefore no depreciation has been charged in respect of these properties in these financial statements.
The charity has the use of a church building owned by Cannon Street Trust. The charity does not have a lease for the use of this property and all expenditure incurred on the property is charged to the Statement of Financial Activities in the year in which it is incurred.
The carrying values of tangible fixed assets are reviewed for impairment in periods when events or changes in circumstances indicate that the carrying value may not be recoverable.
## g) Leased assets Leases which do not transfer substantially all the risks and rewards of ownership to the charity are classified as operating leases. Operating lease payments are recognised as an expense on a straight-line basis over the lease term.
Page 13
## **CANNON STREET MEMORIAL BAPTIST CHURCH**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **2 Accounting Policies continued**
## h) Pension scheme arrangements
The charity operates defined contribution pension schemes for its employees. Obligations for contributions to these schemes are recognised as an expense when the liability arises. The assets of these schemes are held separately from those of the charity in independently administered funds.
Prior to 2012, pension provision was also made through a multi-employer defined benefit pension scheme. In accordance with FRS 102 Section 28, because it is not possible to identify the assets and liabilities of the Scheme which are attributable to the charity, the Scheme accounted for as a defined contribution scheme.
## i) Taxation
The charity has taken advantage of the various reliefs from taxation available to charities and no tax is payable on the charity's income.
j) Financial instruments The charity's financial assets and financial liabilities all qualify as basic financial instruments, as defined by FRS102. Creditors and debtors are measured at their expected settlement value (normally the amount of cash that the charity expects to pay or receive).
## k) Exemption from preparing a cashflow statement
The charity has taken advantage of an exemption conferred by the Charities SORP and has not prepared a cash flow statement.
## l) Critical accounting estimates and areas of judgement
The trustees do not consider that there are any material sources of estimation or uncertainty at the balance sheet date that could result in a material adjustment to the carrying values of assets and liabilities in the next reporting period.
## **3 Donations and legacies**
|Donations of cash and similar
Grants receivable for the provision of community facilities at Laurel Road
Income tax recoverable
**4**
**Income from charitable activities**
Church retreats, activities and events
Activities at Olive Branch Community centre (principally income from sales of food)
Dedications, weddings and funerals
**5**
**Income from other trading activities**
Letting of residential property|2023
£
156,648
22,093
24,849
203,590
2023
£
17,174
6,687
11,590
35,451
2023
£
12,000
12,000|2022
£
153,624
19,133
22,010|
|---|---|---|
|||194,767|
|||2022
£
23,643
620
-|
|||24,263|
|||2022
£
10,420|
|||10,420|
Page 14
## **CANNON STREET MEMORIAL BAPTIST CHURCH**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **6 Charitable expenditure**
|**a**
**Costs incurred directly on specific activities**
Ministry expenses
Staff costs (salaries, employer's national insurance and pension contributions)
Church retreats, activities and events
Dedications, weddings and funerals
Visiting speakers and musician fees
Reachout Network charity
Training
Motor and travel expenses
Baptist Union
Olive Branch Community Centre operating expenses
Other church and minister's expenses
Property expenses
Light and heat
Insurances
Repairs and renewals
Church roof repairs
Equipment and equipment leasing
Depreciation
Grants payable (note 6c)
**b**
**Costs incurred on support & administration**
Governance costs:
Independent examiner's fee for preparing and examining the accounts
Staff costs (salaries, employer's national insurance and pension contributions)
Telephone
Printing, postage and stationary
Software
Other administrative expenses
Professional fees including bookkeeping and accountancy
**Total expenditure**
**c**
**Grants payable**
Grants for UK and overseas mission
Grants for the relief of poverty and other charitable purposes
The charity's principal grants to institutions comprised:
Baptist Union for Home Mission
Baptist Missionary Society for World Mission
Olive Branch 2 C.I.C. (which runs the Laurel Road Community Sports Centre)
Compassion
Various other smaller grants|Institutions
£
12,985
23,427
36,412|2023
£
77,528
40,136
5,404
6,960
-
2,242
1,617
-
5,851
8,161
147,900
21,661
5,584
6,157
-
5,574
947
39,923
40,542
**228,365**
2,820
11,856
1,745
4,191
1,463
5,060
(640)
26,495
**254,860**
Individuals
£
2,750
1,380
4,130
2023
£
5,815
5,500
21,593
1,584
1,920
36,412|2022
£
78,900
2,414
-
3,150
2,368
3,223
2,559
2,682
577
6,609|
|---|---|---|---|
||||102,482|
||||7,818
3,269
6,337
20,987
4,391
947|
||||43,749|
||||36,101|
||||**182,332**|
||||-
28,550
3,507
5,123
2,804
6,541
8,451|
||||54,976|
||||**237,308**|
||||2023
£
15,735
24,807|
||||40,542|
||||2022
£
5,500
5,500
19,133
-
5,968|
||||36,101|
Page 15
## **CANNON STREET MEMORIAL BAPTIST CHURCH**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **7 Analysis of staff costs, the cost of key management personnel and trustee remuneration**
|**ysis of staff costs, the cost of key management personnel and trustee remuneration**|||
|---|---|---|
|Gross wages and salaries
Social security
Pension costs|2023
£
77,710
2,533
9,141
89,384|2022
£
87,894
7,009
12,453|
|||107,356|
The average monthly number of employees during the year was 3 (2022: 4). Most of the charity's activities are carried out by volunteers.
No staff (2022: none) received salaries at a rate of more than £60,000 per annum.
The charity's key management comprise the trustees and other key staff named on page 1 'Charity Information'. Total employment benefits payable to key management for the year were as follows:
|Wages,
Other
Employer
salaries
employment
pension
and fees
benefits
contributions
Pastor Bryan Scott, who is a trustee
35,686
5,601
3,399
Other members of key management|2023
£
44,686
36,071|
|---|---|
||80,757|
Pastor Bryan served as a church leader and received the above payments for serving in that capacity, not for serving as a trustee; these payments are permitted by the charity's governing document.
## **8 Tangible fixed assets**
|Cost
At 1 April 2022
Additions
At 31 March 2023
Accumulated depreciation
At 1 April 2022
Charge for the year
At 31 March 2023
Net book value
At 31 March 2023
At 31 March 2022
**Debtors**
Gift aid recoverable
Prepayments and other debtors
**Cash at Bank and in Hand**
Church bank balances
Church organisations bank balances
Petty cash|Residential
property
£
271,490
-
271,490
-
-
-
271,490
271,490|Fixtures,
fittings and
equipment
£
54,882
-
54,882
49,520
947
50,467
4,415
5,362|Motor
vehicles
£
25,000
-
25,000
25,000
-
25,000
-
-
2023
£
24,999
17,815
42,814
2023
£
144,822
17,476
1,116
163,414|Total
2023
£
351,372
-|
|---|---|---|---|---|
|||||351,372|
|||||74,520
947|
|||||75,467|
|||||275,905|
|||||276,852|
|||||2022
£
38,574
1,053|
|||||39,627|
|||||2022
£
160,528
13,142
-|
|||||173,670|
## **9 Debtors**
## **10 Cash at Bank and in Hand**
Page 16
## **CANNON STREET MEMORIAL BAPTIST CHURCH**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **11 Creditors: liabilities falling due within one year**
|**itors: liabilities falling due within one year**|||
|---|---|---|
|Taxation and social security
Other creditors
Accruals
Deferred income|2023
£
2,718
-
4,320
9,322
16,360|2022
£
1,795
10,232
8,921
-|
|||20,948|
Deferred income comprises income received in advance for a church retreat that took after the year end when the receipts were recognised as income.
## **12 Pension commitments**
## **The Baptist Union Pension Scheme**
The charity is a participating employer the Baptist Pension Scheme (“the Scheme”), which is a separate legal entity administered by the Pension Trustee (Baptist Pension Trust Limited). The assets of the Scheme are held separately from those of the Employer and the other participating employers.
The Scheme, previously known as the Baptist Ministers’ Pension Fund, started in 1925 but was closed to future accrual of defined benefits on 31 December 2011. Prior to this date the main benefit provided through the Defined Benefit (DB) Plan was a 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.
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 Broadstone Corporate Benefits Ltd. 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 if 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 Limited.
The Scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. Because it is not possible to attribute the Scheme’s assets and liabilities to specific employers, the scheme is accounted for as if the Scheme were a defined contribution scheme.
## Actuarial valuation as at 31 December 2019
A formal valuation of the DB Plan as at 31 December 2019 was carried out by a professionally qualified Actuary using the Projected Unit Method. At the valuation date the market value of the DB Plan assets was £298 million, whilst the level of assets needed to pay benefits was £316m, giving a deficit of £18m (equivalent to a past service funding level of 94%). The charity and the other participating employers in the DB Plan are collectively responsible for funding this deficit.
The key financial assumptions underlying the valuation were as follows:
|
oyers in the DB Plan are collectively responsible for funding this deficit.
key financial 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 Increase Adjustment (above CPI)|0.50|
|Pre-retirement assumed investment returns (gilt yield plus 1.75% pa)|2.95|
|Post retirement assumed investment returns (including benefits matched by the|1.70|
|Minimum Pensionable Income increases (CPI plus 0.5%)|3.20|
|Deferred pension increases||
|- Pre April 2009|3.20|
|- Post April 2009|2.50|
|Pension increases (based on CPI with an annual floor of 0% and annual cap of 5%)|2.70|
Mortality is assumed in accordance with 80% of the S3NA standard mortality table. Future improvements projected from 2013 in line with the “CMI 2019” projection with a long-term rate of improvement of 1.75% p.a. for males and 1.5% p.a. 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 will commence in 2023 to reflect the position as at 31 December 2022.
Page 17
## **CANNON STREET MEMORIAL BAPTIST CHURCH**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **12 Pension commitments 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. Following the 2019 valuation a Recovery Plan was signed in September 2020 under which deficiency contributions are payable until June 2026. These contributions were broadly based on each employer's membership at 31 December 2014 and increase annually in line with increases to Minimum Pensionable Income as defined in the Rules.
On 30th June 2022 the Baptist Pension Scheme signed an agreement with the insurance company Just Group (“Just”) to secure DB Plan members’ pension benefits. Just are now providing financial backing for all pensions provided through the Scheme’s DB Plan and following this transaction, the Scheme no longer has a shortfall. An updated Recovery plan was then signed in August 2022 under which recovery contributions from each participating employer in the DB Plan reduced to £1 per month from August 2022.
## Accounting for the funding deficit
When a charity has an obligation to contribute towards a funding deficit, it should recognise a liability in the accounts for the expected value of future contributions towards the deficit. Following the agreement with Just, the expected value of future deficit contributions is not considered significant (being just £1 per month until the transfer to Just is complete) and so no liability has been included in these accounts. At 31 March 2022 (i.e. prior to the agreement with Just) the liability for expected future deficit contributions would have been significant. The trustees note that the 2021/22 accounts did not include this liability but, as the liability no longer exists, there would be nothing to be gained from trying to correct the omission in the 2021/22 accounts. During the year the charity paid contributions totalling £2,606 towards the funding deficit and these payments are included in this year's pension cost (see note 7 'Analysis of staff costs')
## **13 Funds**
During the year the movements in the charity's funds were as follows:
|_Designated Funds_
Fixed asset fund
_General Unrestricted Funds_
**Total Unrestricted Funds**
_Restricted Funds_
Olive Branch Community Centre fund
CYPC fund
Communion fund
Retreat fund
Special offerings
Laurel Road Community Sports
Centre fund
Car parking fund
**Aggregate of funds**|Opening
balance
2023
£
276,852
179,207
**456,059**
6,398
2
465
6,277
-
-
-
**13,142**
**469,201**|Incoming
resources
2023
£
-
203,363
**203,363**
6,687
-
1,773
16,011
1,504
22,093
-
**48,068**
**251,432**|Outgoing
resources
2023
£
(947)
(202,208)
**(203,155)**
(5,851)
(2)
(1,828)
(21,011)
(1,420)
(21,593)
-
**(51,705)**
**(254,860)**|Transfers
in the year
2023
£
-
(3,338)
**(3,338)**
-
-
-
658
-
-
2,680
**3,338**
**-**|Gains and
losses
2023
£
-
-
**-**
-
-
-
-
-
-
-
**-**
**-**|Closing
balance
2023
£
275,905
177,025|
|---|---|---|---|---|---|---|
|||||||**452,930**|
|||||||7,234
-
410
1,935
84
500
2,680|
|||||||**12,843**|
|||||||**465,773**|
## **Analysis of net assets by fund**
The assets and liabilities of the various funds were as follows:
|**ysis of net assets by fund**
assets and liabilities of the various funds were as follows:||||
|---|---|---|---|
|Tangible fixed assets
Debtors
Cash at bank and in hand
Creditors falling due within one year|General
Designated
funds
funds
£
£
-
275,905
27,821
156,242
-
(7,038)
-
**177,025**
**275,905**
Unrestricted Funds|Restricted
funds
£
-
14,993
7,172
(9,322)
**12,843**|2023
£
275,905
42,814
163,414
(16,360)|
||||**465,773**|
Page 18
## **CANNON STREET MEMORIAL BAPTIST CHURCH**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **13 Funds continued**
In the previous year the movements in the charity's funds were as follows:
|_Designated funds_
Fixed asset fund
_General Unrestricted Funds_
**_Total Unrestricted Funds_**
_Restricted Funds_
Olive Branch Community Centre fund
CYPC fund
Communion fund
Retreat fund
**_Aggregate of funds_**|Opening
balance
2022
£
277,799
190,901
**468,700**
6,355
2
65
1,711
**8,133**
**476,833**|Incoming
resources
2022
£
-
222,994
**222,994**
620
-
400
5,662
**6,682**
**229,676**|Outgoing
resources
2022
£
(947)
(234,688)
**(235,635)**
(577)
-
-
(1,096)
**(1,673)**
**(237,308)**|Transfers
in the year
2022
£
-
-
**-**
-
-
-
-
**-**
**-**|Gains and
losses
2022
£
-
-
**-**
-
-
-
-
**-**
**-**|Closing
balance
2022
£
276,852
179,207|
|---|---|---|---|---|---|---|
|||||||**456,059**|
|||||||6,398
2
465
6,277|
|||||||**13,142**|
|||||||**469,201**|
## _**Analysis of net assets by fund**_
In the previous year, the assets and liabilities of the various funds were as follows:
|Tangible fixed assets
Debtors
Cash at bank and in hand
Creditors falling due within one year|General
Designated
funds
funds
£
£
-
276,852
39,627
160,528
-
(20,948)
**179,207**
**276,852**
Unrestricted Funds|Restricted
funds
£
13,142
**13,142**|2022
£
276,852
39,627
173,670
(20,948)|
|---|---|---|---|
||||**469,201**|
## **Designated funds**
The designated **Fixed Asset** fund represents the net book value of the charity's fixed assets and represents resources that cannot be used to meet day to day operating expenses.
## **Restricted funds**
The restricted **Olive Branch Community Centre** fund was created from income received to provide meals and activities for the local community.
The restricted **CYPC** fund was created from income received to help support the church's work among children and young people. The restricted **Communion** fund was created from income received to help support those in need.
The restricted **Retreat** fund was created from income received to help run a weekend retreat for those who come to the church.
The restricted **Special offering** fund was created from donations received in response to various small appeals and will, or have, been used to make grants.
The restricted **Laurel Road Community Sports Centre** fund was created from grants received to help support the operation of a community sports centre. The grants received have been used to make grants to Olive Branch 2 Community Interest Company ('C.I.C'), which runs the Community Centre. The grants made to the C.I.C. are only being used by the C.I.C. for activities that fall within the charity's charitable objects.
The restricted **Car parking** fund was created from a donation received in previous year to help provide car parking near the church building. This fund balance was omitted from the previous years accounts and a transfer has been made from the general unrestricted funds to restricted funds to rectify the omission.
## **14 Transactions with related parties**
During the year the charity:
- a) received donations totalling £17,631 from related parties (which includes trustees, any other members of key management and anyone closely connected to them).
- b) paid grants totalling £18,893 to Olive Branch 2 C.I.C.; Pastor Bryan Scott, who is a trustee of the charity, is also one of the C.IC.'s three directors.
Except for the reimbursement of expenses incurred when acting as agent for the charity, or incurred when undertaking employment duties, no expenses were paid to (or for) the trustees.
Except as disclosed in note 7 'Analysis of staff costs', there have been no other transactions with related parties during the year.
Page 19
## **CANNON STREET MEMORIAL BAPTIST CHURCH**
## **DETAILED STATEMENT OF FINANCIAL ACTIVITIES WITH COMPARATIVES**
## **FOR THE YEAR ENDED 31 MARCH 2023**
|Note
**INCOME AND ENDOWMENTS FROM:**
Donations and legacies
3
Charitable activities
4
Other trading activities
5
Investments: bank interest
**Total income and endowments**
**EXPENDITURE ON:**
Charitable activities:
6
**Total Expenditure**
**Net income/(expenditure)**
**Transfers between funds**
13
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
**Total funds carried forward**
13||General
Designated
2023
2023
£
£
178,220
-
12,753
-
12,000
-
391
-
203,363
-
202,208
947
202,208
947
1,156
(947)
(3,338)
-
(2,182)
(947)
179,207
276,852
177,025
275,905
Unrestricted funds|Restricted
2023
£
25,370
22,698
-
-
48,068
51,705
51,705
(3,637)
3,338
(299)
13,142
12,843|Total
2023
£
203,590
35,451
12,000
391
251,432
254,860
254,860
(3,428)
-
(3,428)
469,201
465,773|||General
Designated
2022
2022
£
£
194,367
-
17,981
-
10,420
-
226
-
222,994
-
234,688
947
234,688
947
(11,694)
(947)
-
-
(11,694)
(947)
190,901
277,799
179,207
276,852
Unrestricted funds|Restricted
2022
£
400
6,282
-
-
6,682
1,673
1,673
5,009
-
5,009
8,133
13,142|Restated
Total
2022
£
194,767
24,263
10,420
226
229,676
237,308
237,308
(7,632)
-
(7,632)
476,833
469,201|
|---|---|---|---|---|---|---|---|---|---|
Page 20