DocuSign Envelope ID: 7933771E-0B11-4560-99AF-9AA10B63AC23
BETHEL EVANGELICAL FREE CHURCH
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 DECEMBER 2021
REGISTERED CHARITY NUMBER: 1135831
Cound & Co LLP Chartered Accountants 1 Princes Court Royal Way Loughborough Leics LE11 5XR
Tel: 01509 214163
DocuSign Envelope ID: 7933771E-0B11-4560-99AF-9AA10B63AC23
BETHEL EVANGELICAL FREE CHURCH
REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
CONTENTS
| 1 | - | 4 | Report of the Church officers |
|---|---|---|---|
| 5 | Independent Examiners’ Report | ||
| 6 | Statement of Receipts and Payments | ||
| 7 | Statement of Assets and Liabilities | ||
| 8 | - | 10 | Notes forming part of the financial statements. |
DocuSign Envelope ID: 7933771E-0B11-4560-99AF-9AA10B63AC23
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BETHEL EVANGELICAL FREE CHURCH
REPORT OF THE OFFICERS FOR THE YEAR ENDED 31 DECEMBER 2021
The officers present their report along with the financial statements of the charity for the year ended 31 December 2021. The financial statements have been prepared in accordance with the accounting policies set out on page 8 and comply with the Church’s trust deed and applicable law.
REFERENCE AND ADMINISTRATIVE DETAILS:
Inland Revenue Charity Ref: XN 26557
Charity Number: 1135831
Holding Trustees:
A Davis D Eagles W Easton P Harrison
Church Elders:
Rev D Eagles (Pastor) A Davis W Easton P Harrison
Church Deacons:
(No Deacons serving during the year ended 31 December 2021)
Church Premises:
Burleigh Avenue, Wigston, Leicester, LE18 1FH
Independent Examiners:
Cound & Co LLP Chartered Accountants 1 Princes Court Royal Way Loughborough Leics, LE11 5XR
Bankers:
NatWest plc
DocuSign Envelope ID: 7933771E-0B11-4560-99AF-9AA10B63AC23
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BETHEL EVANGELICAL FREE CHURCH
REPORT OF THE OFFICERS FOR THE YEAR ENDED 31 DECEMBER 2021
STRUCTURE GOVERNANCE AND MANAGEMENT
Until 2010, the Church was constituted under a trust deed dated 9 December 1981, and was an “excepted" charity by virtue of its affiliation to the Fellowship of Independent Evangelical Churches. However, in order to comply with the Charities Act 2006, a new Constitution dated 9 March 2011 using an approved governing document issued by the Fellowship of Independent Evangelical Churches has been adopted and the Church has become a “Registered Charity”.
Appointment of Trustees
In accordance with the constitution, the Managing Trustees comprise those persons appointed as Pastors, Elders and Deacons. There is provision for a minimum of three trustees at any one time. A number of Holding Trustees are appointed from amongst the Managing Trustees to take responsibility for the Church buildings and property.
Trustee Induction and Training
As trustees are drawn solely from the ranks of Church Elders and Deacons, they are already very familiar with the workings of the Church. As such, no specific formal training is given to new trustees, although they are briefed to ensure that they are aware of their responsibilities and duties as trustees.
Organisation
The Holding Trustees and officers who have served during the year and since the year-end are set out on page l. Pastors, Elders and Deacons are Managing Trustees and must all be in full agreement with the Church's doctrinal basis and “Church Matters” policy document:
Pastor: The appointment of a Pastor shall be by the unanimous recommendation of the Elders and Deacons and by the wholehearted spiritual witness of the Church Members’ Meeting, evidenced by the wholehearted approval of at least three quarters of those present at the Church Members’ Meeting.
Elders: Recognising the biblical pattern, the existing Elders are to be the ones who normally identify new Elders, with the membership being invited to give their wholehearted agreement (Titus 1:5) at the Church Members’ Meeting, evidenced by the approval of at least three quarters of those present at the Church Members’ Meeting.
Deacons: Following the biblical pattern, Deacons shall be adult members who conform to the scriptural qualifications (1Tim 3:8-10, 12 and 13 Acts 6:3). Church members will give recommendations to the Elders and Deacons for their consideration. The Elders and Deacons will bring persons with their consent to the membership for their wholehearted agreement at a Church Members’ Meeting, evidenced by the approval of at least three quarters of those present at the Church Members’ Meeting.
The Pastors, Elders and Deacons shall normally serve without time limit up to the age of seventy, unless removed from office. However, Church Officers may be requested to continue in their office past this age, by the agreement of the other Church Officers and with an annual review. The following considerations should be taken into account when agreeing to continuation in office: health, gifts, mental capacity and the individual’s personal circumstances. A Pastor, Elder or Deacon may voluntarily resign by submitting in writing a letter to that effect to the remaining Church Officers. The Pastor will normally retire from office at the statutory retirement age.
Missionary Support Policy
The Church has continued to support several missionaries, both in the UK and Overseas, through discretionary support and designated gifts. Often, those supported have been sent out from Bethel to their new work and/or previously worked or served at Bethel Church.
DocuSign Envelope ID: 7933771E-0B11-4560-99AF-9AA10B63AC23
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BETHEL EVANGELICAL FREE CHURCH
REPORT OF THE OFFICERS FOR THE YEAR ENDED 31 DECEMBER 2021
OBJECTIVES AND ACTIVITIES
The purposes of the Church shall be:
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The advancement of the Christian faith in accordance with the Basis of Faith primarily but not exclusively within Wigston and the surrounding neighbourhood;
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And such other charitable purposes as shall, in the opinion of the members of the Church in general meeting and the Managing Trustees, further the work of the Church.
The trustees confirm that they have referred to the Charity Commissions guidance on public benefit when reviewing the Charity’s aims and objectives in planning future activities and policies.
ACHIEVEMENTS AND PERFORMANCE
Following the UK Covid outbreak (March 2020), the Church moved all of its Sunday and midweek meetings on line and suspended the other groups. Regular meeting of members and friends was enabled on-line through Zoom. The Sunday morning service reverted to being held in person at the Church premises from June 2021. The service is also still available online or via DVD, for those who still cannot attend in person, although the vast majority of people have now returned to the Church on Sunday.
The Church normally holds one service on a Sunday, as well as mid-week and ad-hoc meetings to teach the Christian faith and to provide opportunities for worship. In addition, the Church hosts activities for all ages, from tots and parents, through children, boys, girls, teenagers, young adults, ladies, men and senior citizens, which combine social activities with opportunities for teaching. The Church also arranges outreach events to raise awareness of the local Church in particular and the Christian faith in general. All the above activities and meetings are open to society in general and are not restricted to members of the Church.
The regular meetings were disrupted (by Covid) throughout the first half of the year, but most activities resumed from the second half of the year, including Weekly Kids at the Corner and Youth Meetings, as well as special opportunities such as the Christmas family services and Carols by Candlelight. The Easter Children’s Holiday Club, Youth Mix and the Bible Exhibition for local schools all restarted in the first half of 2022.
“The Corner” coffee area and refurbished church hall are now used widely by the Church and also to provide an open door to the local community. This now hosts two new regular sessions, Community Night (held on Monday evening) and Friendship Café (held on Thursday morning) which are very well attended.
FINANCIAL REVIEW
Income received during the year totalled £96,835, principally from donations to the Church, and was lower than the corresponding amount received in 2020 (£110,929). The 2021 giving included £15,664 designated for the Building Fund (2020: £25,936). Included in Other income is the receipt from the insurance claim made from the flooding in the Church.
Total payments during the year were £62,403, which was lower than the expenditure in 2020 (£78,994). The 2021 expenditure included a church building and refurbishment costs of £13,830 (2020: £31,028). The “normal” 2021 expenditure of £48,573 is slightly higher than the equivalent 2020 figure of £47,966. Overall, this meant that the Church reported a surplus for the year of £34,432 (2020: £31,935).
DocuSign Envelope ID: 7933771E-0B11-4560-99AF-9AA10B63AC23
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BETHEL EVANGELICAL FREE CHURCH
REPORT OF THE OFFICERS FOR THE YEAR ENDED 31 DECEMBER 2021
RESERVES POLICY
Reserves are set aside to respond to any unforeseen funding difficulties. The Church officers produce a budget each year to forecast the amount of income that the Church expects to receive. Based on this, the Church will plan its expenditure for the future year, so that it keeps normal expenditure pegged to slightly below the level of income.
The overall budget is reviewed during the year at Church officer meetings to ensure that the Church can achieve its targets regarding planned expenditure and make any adjustments as necessary to keep within it.
RISK MANAGEMENT
The officers have examined the major strategic, business and operational risks which the charity faces and confirm that systems have been established to enable regular reports to be produced so that the necessary steps can be taken to lessen these risks.
Trustees’ responsibilities in relation to the financial statements
The laws applicable to charities in England and Wales require the officers to prepare financial statements for each financial year which give a true and fair view of the Church’s financial activities during the year and of its financial position at the end of the year. In preparing those financial statements, the officers are required to:
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select suitable accounting policies and then apply them consistently;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards and statements of recommended practice have been followed
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subject to any 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 Church will continue to function.
The officers are responsible for keeping accounting records which 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. 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.
Approved by the trustees and church officers on 14 June 2022 and signed on their behalf by:
………………………………………. A Davis Treasurer
DocuSign Envelope ID: 7933771E-0B11-4560-99AF-9AA10B63AC23
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INDEPENDENT EXAMINERS’ REPORT TO THE OFFICERS OF
BETHEL EVANGELICAL FREE CHURCH
I report on the accounts of the Church for the year ended 31 December 2021, which are set out on pages 6 to 10
Respective responsibilities of the Church officers and examiners
The Church officers are responsible for the preparation of the accounts. The Church officers consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the Charities Act) and that an independent examination is needed.
It is my responsibility to:
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examine the accounts under section 145 of the Charities Act;
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to follow the procedures laid down in the General Directions given by the Charity Commissioners under section 145(5)(b) of the Charities Act; and
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to state whether particular matters have come to our attention.
Basis of independent examiners’ report
My examination was carried out in accordance with the General Directions given by the Charity Commissioners. An examination includes a review of the accounting records kept by the Church and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as officers concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a “true and fair view” and the report is limited to those matters set out in the statement below.
Independent examiners’ statement
In connection with my examination, no matter has come to my attention:
-
1) which gives me reasonable cause to believe that, in any material respect the requirements:
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to keep accounting records in accordance with section 130 of the Charities Act; and
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to prepare accounts which accord with the accounting records and comply with the accounting requirements of the Charities Act
have not been met; or
- 2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
D R Gradon Cound & Co LLP Chartered Accountants 1 Princes Court Royal Way Loughborough Leics, LE11 5XR 14 June 2022
DocuSign Envelope ID: 7933771E-0B11-4560-99AF-9AA10B63AC23
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BETHEL EVANGELICAL FREE CHURCH
STATEMENT OF RECEIPTS AND PAYMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
| Receipts: Donations and legacies Charitable activities: Use of Church facilities Other income Investment income Payments: Charitable activities: Pastoral ministry Evangelism and outreach Establishment costs Total Payments Net receipts/(payments) Transfers Surplus/(deficit) for the year Bank balances at 1 January 2021 Surplus/(deficit) for the year Bank balances at 31 December 2021 |
2021 2021 Other 2021 Designated Designated General Building Notes Funds Funds Funds - 78827 15664 - - - - 2344 - - - - _ - 81171 15664 _ 2 - 37441 - 3 - 170 - 4 - 10962 13830 _ - 48573 13830 _ - 32598 1834 - - - _ - 32598 1834 _ - 42053 3854 - 32598 1834 _ - 74651 5688 _ |
2021 Total 94491 - 2344 - _ 96835 37441 170 24792 62403 _ 34432 - 34432 45907 34432 _ 80339 ___ |
2020 Total 110813 50 - 66 _ 110929 ____ |
2020 Total 110813 50 - 66 _ 110929 ____ |
2020 Total |
|---|---|---|---|---|---|
| 37970 937 40087 _ 78994 ___ |
|||||
| 31935 - _ 31935 ___ |
|||||
| 13972 31935 _ 45907 ___ |
DocuSign Envelope ID: 7933771E-0B11-4560-99AF-9AA10B63AC23
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BETHEL EVANGELICAL FREE CHURCH
STATEMENT OF ASSETS AND LIABILITIES AS AT 31 DECEMBER 2021
| 2021 Other Designated Note Funds FIXED ASSETS Freehold land and buildings 5 - Fixtures and fittings 5 - _ - CURRENT ASSETS Prepayments - Bank balances - _ - CURRENT LIABILITIES Creditors and Accruals - _ NET CURRENT ASSETS - TOTAL NET ASSETS - _ FUND BALANCES General Fund 6 - Restricted Fund 6 - Designated Funds: Building Fund 6 - Other Funds - - ____ |
2021 2021 Designated General Building Funds Funds 285712 - 4365 - __ 290077 - __ - - 74651 5688 _ 74651 5688 _ 1020 - _ 73631 5688 _ 363708 5688 __ 363708 - - - - 5688 - - __ 363708 5688 __ __ |
2021 Total Funds 285712 4365 __ 290077 _ - 80339 80339 _ 1020 79319 369396 __ 363708 - 5688 - _ 369396 ___ |
2020 Total Funds 271882 4989 __ 276871 ____ |
2020 Total Funds |
|---|---|---|---|---|
| - 45907 _ 45907 2820 __ 43087 _ 319958 ____ |
- 45907 _ 45907 ___ |
|||
| 2820 _____ |
||||
| 43087 _____ |
||||
| 316104 - 3854 - __ 319958 ____ |
The Financial Statements on pages 6 to 10 were approved by the trustees on 14 June 2022 and signed on their behalf by:
………………………………..
A Davis
DocuSign Envelope ID: 7933771E-0B11-4560-99AF-9AA10B63AC23
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BETHEL EVANGELICAL FREE CHURCH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
1 ACCOUNTING POLICIES
a) Funds
General funds represent the funds of the Church that are not subject to any restrictions regarding their use and are available for application on the general purposes of the Church.
Designated funds are unrestricted funds that have been designated for a particular use, in this case representing the Church’s Buildings fund.
Restricted funds are those funds that must be spent on the restricted purposes as specified by the donor.
2 PASTORAL MINISTRY AND MISSIONARY SUPPORT
| 2021 2021 Other 2021 Designated Designated General Building Funds Funds Funds Pastoral remuneration and expenses - 35927 - Employer’s Pension Contributions - 891 - Employer’s NIC - - - Visiting preachers - 170 - Missionary support - - - Training Costs - 453 - _ - 37441 - _ _____ |
2021 Total Funds 35927 891 - 170 - 453 _ 37441 ___ |
2020 Total Funds |
|---|---|---|
| 35927 891 817 35 300 - _ 37970 ___ |
The Church employs a Pastor. All of the Elders (including the Pastor) and Deacons are Managing Trustees, as they are all included in making decisions on how the charity’s funds are expended. To avoid a conflict of interest, the Pastor continues to be excluded from all discussions relating to him and his remuneration. The Pastor is the only trustee to receive any remuneration or expenses; however other trustees have been reimbursed during the year for expenditure they have incurred on behalf of the Church.
3 EVANGELISM AND OUTREACH
| EVANGELISM AND OUTREACH | |||
|---|---|---|---|
| 2021 2021 Other 2021 Designated Designated General Building Funds Funds Funds Bible exhibitions - - - Outreach expenses - 170 - _ _ - 170 - _ _ |
2021 Total Funds - 170 _ 170 _ |
2020 Total Funds |
|
| 426 511 _ 937 _ |
DocuSign Envelope ID: 7933771E-0B11-4560-99AF-9AA10B63AC23
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BETHEL EVANGELICAL FREE CHURCH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
4 ESTABLISHMENT COSTS
| 4 | ESTABLISHMENT COSTS | ||
|---|---|---|---|
| 5 | 2021 2021 Other 2021 Designated 2021 Designated General Building Total Funds Funds Funds Funds Rates and water - 933 - 933 Insurance - 1409 - 1409 Light and heat - 2391 - 2391 Repairs and maintenance - 1829 - 1829 Cleaning - 190 - 190 Telephone - 488 - 488 Postage, stationery and photocopying - - - - FIEC affiliation fees - 750 - 750 Catering - - - - DBS Checks - 146 - 146 Other miscellaneous costs - 6 - 6 Independent examination and payroll fee - 2820 - 2820 Fixed Asset Purchases - - 13830 13830 _ _ - 10962 13830 24792 __ _ FIXED ASSETS Freehold Fixtures Land and and Cost Buildings Fittings At 1 January 2021 271882 22654 Additions 13830 - At 31 December 2021 285712 22654 Depreciation At 1 January 2021 - 17665 Charge for the year - 624 __ At 31 December 2021 - 18289 Net Book Value at 31 December 2021 285712 4365 __ _ Net Book Value at 31 December 2020 271882 4989 __ |
2020 Total Funds 1307 1279 2763 2229 - 438 40 750 107 - 146 - 31028 _ 40087 Total 294536 13830 308366 17665 624 __ 18289 _ 290077 _ 276871 ___ |
2020 Total Funds |
| 1307 1279 2763 2229 - 438 40 750 107 - 146 - 31028 _ 40087 ___ |
DocuSign Envelope ID: 7933771E-0B11-4560-99AF-9AA10B63AC23
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BETHEL EVANGELICAL FREE CHURCH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
The Church’s freehold properties comprise:
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a) The Church buildings situated in Burleigh Avenue, Wigston (acquired 14 October 1950).
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b) The Church hall, bookshop and flat situated at the corner of Burleigh Avenue and The Crescent, Wigston (acquired 24 November 1955).
The Church officers estimate that the market value of the Church’s properties following the refurbishment project is about £750,000.
6 ANALYSIS OF NET ASSETS BY FUND
| ANALYSIS OF NET ASSETS BY FUND | ||||
|---|---|---|---|---|
| 2021 Other Designated Funds Fixed Assets - Current Assets - Current Liabilities - _ - _ Designated Funds are represented by: B/Fwd 2020 Building Fund 3854 Other Funds - _ 3854 ___ |
2021 General Funds 290077 74651 (1020) __ 363708 _ Income 15664 - __ 15664 _____ |
2021 Designated Building Funds - 5688 - _ 5688 _ Expenditure (13830) - _ (13830) ___ |
2021 Total Funds 290077 80339 (1020) __ 369396 _ Transfers - - __ - _____ |
2020 Total Funds 276871 45907 (2820) _ 319958 _ C/Fwd 2021 5688 - 5688 ___ |
The Building Fund represents money received from a legacy in 2014 together with donations, which have been set aside for a project to redevelop the Church’s buildings. Work on the buildings commenced in 2018 and was completed in 2021.