**Charity number: 1136971**
## **MUSWELL HILL BAPTIST CHURCH**
## **REPORT AND FINANCIAL STATEMENTS**
**YEAR ENDED 31 MARCH 2021**
**MUSWELL HILL BAPTIST CHURCH REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021**
## **CONTENTS**
|Legal and administrative information|2|
|---|---|
|Report of the trustees|3-5|
|Independent examiner’s report|6|
|Receipt and payment accounts|7|
|Statements of asset and liabilities|8|
|Notes to the accounts|9-11|
1
**MUSWELL HILL BAPTIST CHURCH REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
|Name|**Muswell Hill Baptist Church**|
|---|---|
||**(Registered charity no. 1136971)**|
|Registered office|Dukes Avenue, Muswell Hill, London N10 2PT|
|Trustees|Rev Alexander John Robert (Chair)|
||John Grant|
||Rosemary Pettman|
||Jonathan Ashley- Norman|
||Trevor Ridout|
||Peter Hill-King|
|Custodian Trustees|London Baptist Property Board Ltd.|
|Bankers|Barclays Bank Plc|
||COIF Charities Deposit Fund|
|Independent examiner|Anthony Epton FCA, CTA, FCIE|
||Goldwins Limited|
||75 Maygrove Road,|
||West Hampstead,|
||London NW6 2EG|
2
**MUSWELL HILL BAPTIST CHURCH REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021**
## **Purpose**
The principal purpose of the Church is _the advancement of the Christian faith according to the principles of the Baptist denomination. The Church may also advance education and carry out other charitable purposes in the United Kingdom and/or other parts of the world._
## Activities
To fulfil the Purpose, the Church engages in a range of activities, either on its own or with others, that vary from time to time with activities being initiated, expanded, or closed, as appropriate.
The Activities may include but are not restricted to:
- Regular public worship, prayer, Bible study, preaching and teaching the Word of God.
- Baptism, as described in the Statement of Faith and the Communion of the Lord’s Supper.
- Evangelism and mission, locally, regionally, nationally and internationally.
- Teaching, encouragement, welcome and inclusion of children and young people in a safe environment.
- Nurturing the growth of Christian disciples; education and training for Christian and community service.
- Giving and encouraging pastoral care.
- Supporting and encouraging charitable social action in the United Kingdom and abroad.
- Developing relationships with and supporting Baptists and other Christians.
In this year most of these activities were greatly limited or entirely prevented by Government action to stem the Covid-19 pandemic. However, some meetings prospered by being moved online. The Church’s Vision
## Vision
To achieve our Purpose more effectively the Church continued its vision focused on **inviting** . This is encapsulated in the strap line _**Inviting a Great City to a Great Saviour**_ **.**
Aims
We will seek to develop
- ✓ **Invitational People**
- ✓ **Invitational Programmes** ✓ **Invitational Premises** ✓ **Invitational Partnerships**
Values
- ➢ We will PRAY and seek the working of the Spirit of God
- ➢ We will be COMMITTED to one another in fellowship and in the vision
- ➢ We will disciple through PREACHING, TEACHING and WORSHIP
## **The Church’s Life**
## Invitational People
While the pandemic prevented most opportunities for people to invite others, we continued to learn together online so that we might be better equipped when the national situation improves. We distributed Christmas cards to the neighbourhood.
The church continued to support members’ and friends’ work in Christian ministries of various kinds in Europe, Africa and among Turkish and East Asian peoples in the United Kingdom. One of our members is a Full-Time Free Church Chaplain in the British Army.
3
**MUSWELL HILL BAPTIST CHURCH REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021**
## Invitational Programmes
People were invited to fill Christmas Shoeboxes for the Samaritan’s Purse charity project Operation Christmas Child. Despite the prevailing limitations, many boxes were completed and delivered for the charity to distribute across the world.
The Muswell Hill Soup Kitchen, under the able leadership of Martin Stone, secured a van thanks to very generous donations from the community. By this means the Soup Kitchen was able to continue its work by delivery – and this has led to some excellent contacts throughout the Borough. Finance beyond the van’s purchase has been placed into a development project to develop the effectiveness of the van’s usefulness in years to come.
The Church’s _YouTube_ Channel developed over the year and now contains dozens of videos which are accessed both locally and from much farther afield.
## Invitational Premises
The Trustees sought to keep the premises open whenever the Government allowed. This was successfully and safely done. The exception was when the building was closed in January 2021 though not mandated: this closure was requested by the Mayor of London and recommended strongly by the Baptist Union of Great Britain because of the high level of infection and vulnerability to Covid-19 at the time.
## Invitational Partnerships
Nationally and across London our partnerships with the Evangelical Alliance, the London Baptist Association and the Baptist Union of Great Britain helped to resource a difficult year. Locally the church engaged online with churches of the Muswell Hill Churches Forum.
We continued to host the popular Rainbow Preschool and the Fortis Green Kids Club (afterschool provision) both of which were able to use the buildings while still closed for public worship.
## Finance
The Trustees monitored the financial health of the Charity throughout. In the event, the reduction of expenses, the steady income from residential lettings and the regular, committed giving of the congregation (even when they could not meet) meant that finance was one of the least troubling issues we faced. The Trustees remain confident that this will remain true for the coming uncertain year also. The accounts reflect the one-off receipt of donations for the van and the development of its use.
The Church’s Managing Trustees Mr Jonathan Ashley-Norman [Deacon] Mr John Grant [Elder and Treasurer] Mr Peter Hill-King [Deacon] Mrs Rosemary Pettman [Elder and Church Secretary] Mr Trevor Ridout [Deacon] Rev John Roberts [Pastor and Chair of the Trustees]
4
**MUSWELL HILL BAPTIST CHURCH REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021**
## **Responsibilities of trustees**
Charity law requires us as trustee to prepare financial statements for each accounting year which record the receipt and payments of the charity for the year. We are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and enable us to ensure that the financial statements comply with the Charities Act 2011. We are also responsible to safeguard the assets of the charity and to take reasonable steps to prevent fraud or any irregularities.
## **Approval**
This report was approved by the trustee and signed on their behalf by:
## **Rosemary Pettman (Secretary) and John Grant (Treasurer)**
## **Date:**
5
**INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF MUSWELL HILL BAPTIST CHURCH FOR THE YEAR ENDED 31 MARCH 2021**
I report to the trustees on my examination of the accounts of Muswell Hill Baptist Church for the year ended 31 March 2021.
## **Responsibilities and basis of report**
As the trustees of the charity, you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the Trust’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
## **Independent examiner’s statement**
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
1. accounting records were not kept in respect of the Trust 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.
Anthony Epton BA FCA CTA FCIE Goldwins Chartered accountants 75 Maygrove Road West Hampstead London NW6 2EG
6
**Muswell Hill Baptist Church Receipts and payment accounts For the year ended 31 March 2021**
|**Note**
**Income receipts**
Donations and grants
Gift aid receipts
Rental income
Income from charitable activities
Income from church organisation
Bank interest
Other
**Total receipts**
**Payments**
Payments in relation to charitable activities
**2**
Grants paid in relation to charitable activities
undertaken by others
**3**
**Total payments**
**Net receipts/ (payments) for the year**
Transfers between funds
**Net movement in funds**
**Reconciliation of funds:**
Cash funds as at last year end
**Total funds carried forward**|**Unrestricted**
**Funds**
**£**
**66,026**
**12,891**
**79,779**
**-**
**-**
**478**
**515**
**159,689**
**121,460**
**8,878**
**130,338**
**29,351**
**-**
**29,351**
**161,912**
**191,263**|**Restricted**
**Funds**
**£**
**-**
**-**
**-**
**-**
**30,413**
**-**
**-**
**30,413**
**5,860**
**-**
**5,860**
**24,553**
**-**
**24,553**
**13,060**
**37,613**|**2021**
**Total**
**Funds**
**£**
**66,026**
**12,891**
**79,779**
**-**
**30,413**
**478**
**515**
**190,102**
**127,320**
**8,878**
**136,198**
**53,904**
**-**
**53,904**
**174,972**
**228,876**|2020
Total
Funds
£
72,675
14,549
104,359
1,819
8,798
1,227
302|
|---|---|---|---|---|
|||||203,729|
|||||149,109
12,877|
|||||161,986|
|||||41,743
-|
|||||41,743
133,229|
|||||174,972|
The attached notes form part of these financial statements.
7
## **Muswell Hill Baptist Church Statements of assets and liabilities For the year ended 31 March 2021**
|**Unrestricted**
**funds**
**Note**
**£**
**Cash Funds**
Current accounts
**21,005**
Deposit accounts
**170,258**
**191,263**
**Other monetary assets**
Gift aid due to charity
**5,046**
**5,046**
**Liabilities**
-
Pension deficit
**2,740**
**1,750**
Accrued expenses
**-**
**4,490**
Pension deficit
**37,060**
**37,060**
Total liabilities
**41,550**
Church Buildings, Dukes Avenue, London NW10 2PT
2 Dukes Avenue (currently 3 flats)
Manse at 71 Grasmere Road
Content of church premises (Including organ)
Due in over one year:
**Assets retained for charity's own use**
Due in under one year:
Missionary Distributions agreed but not paid
Fees for Independent Examination|**Unrestricted**
**funds**
**£**
**21,005**
**170,258**|**Restricted**
**funds**
**£**
**36,070**
**1,543**|**Total 2021**
**£**
**57,075**
**171,801**|Total 2020
£
21,749
153,223|
|---|---|---|---|---|
||**191,263**|**37,613**|**228,876**|174,972|
||**5,046**|**-**|**5,046**|8,017|
||**5,046**|**-**|**5,046**|8,017|
||-
**2,740**
**1,750**
**-**|-
**-**
**-**
**-**|**-**
**2,740**
**1,750**
**-**|3,578
3,573
1,800
2,977|
||**4,490**
**37,060**|**-**
**-**|**4,490**
**37,060**|11,928
51,927|
||**37,060**|**-**|**37,060**|51,927|
||**41,550**|**-**|**41,550**|63,855|
||||||
||||**7,706,764**|7,577,954|
The trustee have used insurance values as the trustees are unable to reliably estimate current values; insurances values may differ materially from current values.
Approved by the trustees on ……………………………… ..2022. and signed on their behalf by:
**John Grant Treasurer**
**Rosemary Pettman Secretary**
## **Charity registration no. 1136971**
The attached notes form part of the financial statements.
8
**Muswell Hill Baptist Church Notes to the financial statements For the year ended 31 March 2021**
## **1 Accounting policies**
The financial statements have been prepared on a receipts and payments basis and comprise a statements that shows the charity's receipts and payments, a statements that summarise the charity's assets and liabilities and related notes. The accountancy profession have determined that only accounts prepared in accordance with applicable accounting standard present a 'true and fair' view and, as these receipts and payments accounts have not (and cannot) be prepared in accordance with accounting standards, these accounts do not present (and are not intended to present) a 'true and fair' view of the charity's financial activities and state of affairs.
Unrestricted funds are funds which are available for use at the discretion of the trustees in furtherance of the general objectivities of the charity. Restricted funds are donations which are to be used in accordance with specific restrictions imposed by donors; they include donations received from appeals and specific activities and projects.
## **2 Payments in relation to charitable activities undertaken directly**
|Employment costs, training and expenses
Church ministry costs
Property costs
Major repair & restoration expenditure
Other organisations
Other costs
Admin/sundry|**£**
**39,289**
**6,364**
**42,147**
**21,033**
**4,777**
**-**
**7,850**
**121,460**
**Unrestricted**
**Funds**|**£**
**-**
**-**
**-**
**-**
**5,860**
**-**
**-**
**5,860**
**Restricted**
**Funds**|**2021**
**Total**
**Funds**
**£**
**39,289**
**6,364**
**42,147**
**21,033**
**10,637**
**-**
**7,850**
**127,320**|2020
Total
Funds
£
40,248
8,867
37,642
20,988
17,864
18,968
4,532|
|---|---|---|---|---|
|||||149,109|
## **3 Grants paid in relation to charitable activities undertaken by others**
|Organisations:
Winchester Vineyard
OMF
Grants < £1,000
Gifts to individuals
**Total**
Baptist Union|**£**
**2,959**
**2,959**
**2,959**
**-**
**-**
**8,878**
**Unrestricted**
**Funds**|**£**
**-**
**-**
**-**
**-**
**-**
**-**
**Restricted**
**Funds**|**2021**
**Total**
**Funds**
**£**
**2,959**
**2,959**
**2,959**
**-**
**-**
**8,878**|2020
Total
Funds
£
4,060
4,060
4,060
257
440|
|---|---|---|---|---|
|||||12,877|
## **4. Transactions with related parties**
The Rev, Alexander John Roberts was paid £30,714 (2020: £29,830) plus £5,835 (2020: £5,835) pension contribution during the year in his capacity as a church leader, not for serving as a trustee, these payments are permitted by the charity's governing document.
In addition the charity incurred expenditure totalling £6,100 (2020: £6,172) in respect of the provision of accommodation (which is customary for ministers) to Rev. Roberts, who is a trustee so that they could better perform their duties.
9
**Muswell Hill Baptist Church Notes to the financial statements For the year ended 31 March 2021**
## **5 Movements in funds**
|**Restricted funds:**
Tuesday Fellowship
Soup kitchen
Little people
Junior Church (incl Sunday School)
**Total restricted funds**
**Total unrestricted funds**
**Total funds**|**£**
**2,839**
**8,111**
**207**
**1,903**
**At the start**
**of the year**|**£**
**763**
**28,054**
**-**
**1,596**
**Incoming**
**resources**
**& gains**|**£**
**(58)**
**(5,052)**
**-**
**(750)**
**Outgoing**
**resources &**
**losses**|**Transfers**
**£**
**-**
**-**
**-**
**-**|**£**
**3,544**
**31,113**
**207**
**2,749**
**At the end**
**of the year**|
|---|---|---|---|---|---|
||**13,060**|**30,413**|**(5,860)**|**-**|**37,613**|
|||||||
|||||||
||**161,912**|**159,689**|**(130,338)**|**-**|**191,263**|
|||||||
||**174,972**|**190,102**|**(136,198)**|**-**|**228,876**|
Tuesday Fellowship
Meeting for refreshment and devotional time from 2-4pm 40 weeks of year with occasional lunches this grop provide friendship and fellowship to members and others.
Soup kitchen
Little people
Next meal
Junior Church (incl Sunday School)
Five nights of a week for 46 weeks of year aound 10,000 meals are provided for homeless and those in need for food. It is staffed by volunteers from MHBC and other local churches and others seeking to help
This was a voluntary parents and tots group for members and friends which has ceased to operate.
This was a development of the Soup Kitchen under the control of the church until its inception in April 2019 as a separate charity with its own structure.
This for young childern from 4-11 years to provide Christian teaching for them whilst their parents are attending church service.
## **6 The Baptist Pension Scheme**
## **Background to the disclosure**
The Church is an employer participating in a pension scheme known as the Baptist Pension Scheme ("the Scheme"), which is administered by the Pension Trustee (Baptist Pension Trust Umited). The Scheme is a separate legal entity and the assets of the Scheme are held separately from those of the Employer and the other participating employers. The Scheme comprises a Defined Contribution Plan and a Defined Benefit Plan.
The pension cost shown in the Receipts and Payments Statement comprises contributions to the Defined Contribution Plan and deficiency contributions to the Defined Benefit Plan (see below).
The Minister is eligible to join the Scheme.
## **The Defined Benefit Plan**
Benefits in respect of service prior to 1 January 2012 are provided through the Defined Benefit (DB) Plan within the Scheme. The main benefits for pre-2012 service were a defined benefit pension of one eightieth of Final Minimum Pensionable Income for each year of Pensionable Service, together with additional pension in respect of premiums paid on Pensionable Income in excess of Minimum Pensionable Income. The Scheme, previously known as the Baptist Ministers Pension Fund, started in 1925, but was dosed to future accrual of defined benefits on 31 December 2011.
10
**Muswell Hill Baptist Church Notes to the financial statements For the year ended 31 March 2021**
Actuarial valuation as at 31 December 2019
A formal valuation of the Defined Benefit (DB) Plan was performed at 31 December 2019 by a professionally qualified Actuary using the Projected Unit Method. The market value of the DB Plan assets at the valuation date was £300 million. The valuation of the DB Plan revealed a deficit of assets compared with the value of liabilities of £18 million. The next actuarial valuation of the DB Plan is due to take place not later than as at 31 December 2022.
## Recovery plan
A recovery plan has been agreed to make good the above deficit in assets. Therefore, in addition to the contributions to the DC Plan set out above, the Trustee and the Council agree to a rate of deficiency contributions from churches and other employers involved in the DB Plan.
For the time being it has been agreed that the standard rate of deficiency contributions from churches and other employers involved in the DB Plan will remain at previously agreed levels, increasing each year in line with increases in the Minimum Pensionable Income. The deficiency contributions are broadly based on 12% of Pensionable Income / Minimum Pensionable Income, reflecting each employer's contributions in March 2015. Some employers that were involved in the DB Plan for a short period pay lower contributions. The Recovery Plan envisages deficiency contributions continuing until 30 June 2026.
To support the DB Plan’s reduced income over 2020, BUGB has agreed to bring forward a payment of £0.5m that it was due to make by the end of 2023.
## Key assumptions
The key assumptions underlying the actuarial valuation of the DB Plan were as follows:
|Key assumptions
The key assumptions underlying the actuarial valuation of the DB Plan were as follows:|||
|---|---|---|
|Type of financial assumption
RPI price inflation assumption
CM price inflation assumption
Minimum Pensionable Income increases (CPI plus 0.75% pa)
Assumed investment returns
- Pre-retirement
- Post retirement
Deferred pension increases
- Pre April 2009
- Post April 2009
Pension increases
- Main Scheme pension Pre April 2006
- Main Scheme pension Post April 2006
Payments made in the year
Defined Contribution Plan:
Employee contributions
Employer contributions
Deficiency contributions to Defined Benefit Plan
Basis for determining the DB plan pension liability|**2021**
**£**
**1,200**
**4,635**|% pa
3.50
2.75
3.50
3.50
2.25
3.50
2.50
2.70
2.00
2020
£
1,200
4,635|
||**5,835**
**2,740**|5,835
3,573|
||**8,575**|9,408|
||||
The pension liability disclosed in the Statement of Assets and Liabilities in respect of the DB Plan is based on an estimate of the amount that the charity would be required to pay should the charity decide to settle the debt immediately; the Baptist Pension Scheme (the 'BPS') have provided this estimate. The BPS is collecting deficit contributions monthly however these deficit contributions have not been calculated by reference to the charity's share of the pension deficit and, based on the current schedule of contributions, it is possible that the sum of all future annual deficit contributions will be significantly less than the liability disdosed in the Statement of Assets and Liabilities. The charity does not foresee any circumstances that could result in immediate payment of the whole debt however the trustees believe that the BPS may ask the church to increase its contributions towards the deficit and therefore, to be prudent, they have chosen to disclose a liability for the employer debt in the Statement of Assets and Liabilities.
11