Trustees’ Annual Report for the period
From: 1[st] October 2021 To: 30[th] September 2022
Charity name: Strood Gospel Mission Church (SGMC)
Charity registration number: 1137729
Objectives and Activities
| SORP reference | ||
|---|---|---|
| Summary of the purposes of the charity as set out in its governing document |
Para 1.17 | The principal purpose of the Church is the advancement of the Christian faith. SGMC may also advance education and carry out other charitable purposes in the UK and/or other parts of the world. |
| Summary of the main activities in relation to those purposes for the public benefit, in particular, the activities, projects or services identified in the accounts. |
Para 1.17 and 1.19 |
Regular public worship, prayer, bible study, preaching, teaching and baptism. Education and training for Christian and community service. Giving and encouraging pastoral care. Supporting and encouraging social action. Supporting and caring for the local community. |
| Statement confirming whether the trustees have had regard to the guidance issued by the Charity Commission on public benefit |
Para 1.18 | The Trustees confirm that they have complied with their duty to have due regard to the Commission’s public benefit guidance when exercising any powers or duties to which the guidance is relevant. |
Achievements and Performance
| SORP reference | ||
|---|---|---|
| Summary of the main achievements of the charity, identifying the difference the charity’s work has made to the circumstances of its beneficiaries and any wider benefits to society as a whole. |
Para 1.20 | All of our groups and activities at SGMC were fully open and accessible, and we retained our livestream capability so that people always have an opportunity to access our Sunday services, either physically or online. Given the enhanced sense of loneliness, isolation and anxiety that some people have felt during and since the pandemic, we feel our use of technology has allowed us the opportunity to meet the needs of people, many of whom we know are local to the area. SGMC has also sought to engage with the local community in a safe, helpful and encouraging way by introducing a number of initiatives. These have included our “Grassroots” project, which has gone from strength to strength. It is a clothing (and other small, non-electrical, household items) project where clothes are donated, then laundered and made freely available to anyone. Anyone can come into the church building and take what they need, for free. If they choose to make a donation, these are collected and 100% of these donations are then given to local good causes, currently, Medway Foodbank and Medway Hospice. £704.52 in total was donated to these two organisations in the financial year, via members of the community. SGMC covers all the costs of operating the project. The project is proving very beneficial - recycling clothing and goods that might otherwise go to landfill, which is helping people, particularly young families starting off in life, to obtain what they need in difficult times with cost-of-living pressures; and recycling all donations to assist worthy local causes. We also held our popular Christmas Christingle and candle-lit Carol Services, as well as Easter and Light Parties, and these were well supported by the community. We have also made our “Hope Hut”, which is a converted wheelie bin store and placed outside the church building, a permanent feature. The Hut has a display inside with a perspective front and lighting, and so the display is visible 24 hours a day, |
with arresting and colourful tableaux regularly changed through the year. There are activities for the community, being held in the church, almost every day of the week, including fun activities for young people (J Club), a Parents and Toddlers group, a coffee morning (Coffee Stop), a Quilting Group for those that enjoy sewing, quilting, crochet, embroidery, and a Crafty Crafters group for those that enjoy all forms of craft, as well as a good natter! These are in addition to our Sunday services (which include a Sunday School and a Bible Class) as well as a number of informal small groups that meet at various times during the day and evening to suit different working schedules. A highlight of the year was the Jubilee Street Party, which we held in Hone Street, just outside the church, to commemorate the late Queen’s Platinum Jubilee. Free food and drinks were provided, as well as many activities, and fun and games. We invited the community to join us and over 400 people came during the day. We received a lot of positive feedback and thanks for organising the event.
Financial Review
| Review of the charity’s financial position at the end of the period |
Para 1.21 | SGMC posted a deficit of £4,893.03 for the financial year, compared to a deficit of £2,967.90 for the previous financial year. £5,000 was transferred from Reserves to partially cover these deficits. Total income fell by 19%, compared to 2020/21, principally due to a reduction in donations, and reverting back to one Gift Aid application per year, as two claims were made in 2020/21, given none were made in 2019/20 (due to the previous Treasurer being terminally ill). Total expenditure also fell, by 15%, primarily due to a reduction in payroll, as we no longer had the costs associated with our Interim Minister, and less maintenance was required at the church premises at Brompton Lane. SGMC is the beneficial owner (subject to the relevant trusts) of the church building at Brompton Lane as well as the Manse, the legal title to which is held by the Church’s custodian and holding trustee, the Property Trustees. These |
|---|---|---|
| properties are together insured for £1.38m. The principal long-term liability of the Church is its membership as a participating employer of the Baptist Pension Scheme, the Defined Benefit Plan. At the last formal valuation of the Plan in December 2019, there was a deficit of £18m and the Church, and the other participating employers in the DB Plan, are collectively responsible for funding this deficit. The Trustee of the Scheme informed all churches in the Scheme that an agreement had been signed, on 30th June 2022, with the insurance company Just Group, to secure DB Plan members’ pension benefits. Just Group are now providing financial backing for all DB pensions provided through the Scheme’s DB Plan, and the transaction takes the Scheme out of a shortfall position for the first time in two decades. Because the Just Group policies cover the overwhelming majority of the DB Plan’s liabilities, the risks to employers are substantially reduced. The Trustee of the Scheme and the Baptist Union expect the assets of the DB Plan will be sufficient to cover all the costs and liabilities that remain, however this is not certain until the completion of the buy-out process (which is the setting up of annuities for each member of the DB Plan). In view of this, deficit recovery contributions from each participating employer have been reduced, but will continue at a nominal amount of £1 per month until completion. |
||
|---|---|---|
| Statement explaining the policy for holding reserves stating why they are held |
Para 1.22 | When setting and/or reviewing the appropriate level of reserves, the Church takes into account the level of funds required to cover immediate commitments and planned expenditure, as well as an analysis of future needs, opportunities, contingencies and risks that are not likely to be met out of forecast income, and the consequences of not being able to meet them. At just over £115,000, the level of reserves covers over 18 months of current expenditure, but expenditure will increase from 2023/24, as we have made the decision to appoint a full-time minister from the 1st October 2023. Given this, and in addition, given the ages of the Church building and the Manse, and the likely need of significant maintenance expenditure over the coming years, as well as the reliance on |
| a relatively small number of donors, the level of reserves is felt appropriate to ensure that SGMC can meet commitments when they fall due. |
||
|---|---|---|
| Amount of reserves held | Para 1.22 | Total reserves have reduced to £115,871,95. Within these reserves, we hold reserves of £8,872.19 designated for use in Youth Work. In addition, we also hold £8,272.88 in a restricted legacy reserve, held in a separate account, to be used for Mission and Outreach. |
Structure, Governance and Management
| Description of charity’s trusts: |
||
|---|---|---|
| Type of governing document (trust deed, royal charter) |
Para 1.25 | Constitution |
| How is the charity constituted? (e.g unincorporated association, CIO) |
Para 1.25 | Charitable Unincorporated Association |
| Trustee selection methods including details of any constitutional provisions e.g., election to post or name of any person or body entitled to appoint one or more trustees |
Para 1.25 | Trustees are appointed and removed by the Church Members, as detailed under the Constitution. This process is public, clear and open, but the vote is undertaken by way of a secret ballot of the membership of the Church. The Church membership will also vote for the appointment to the roles of Minister, Minister-in-Training, Church Secretary, Church Treasurer, Elder and Deacon. |
Reference and Administrative details
| Charity name | Strood Gospel Mission Church |
|---|---|
| Other name the charity uses | N/A |
| Registered charity number | 1137729 |
| Charity’s principal address | Brompton Lane, Strood, Rochester, Kent. ME2 3BQ |
| Correspondence address | 58 King Arthurs Drive, Frindsbury, Rochester, Kent. ME2 3NB |
Names of the charity trustees who manage the charity
| ~~ee ee~~ | ~~ee ee~~ | ~~ee~~ | ~~ee~~ |
|---|---|---|---|
| Trustee name ~~ee ee~~ ~~PO~~ ~~ns~~ |
Office (if any) ~~ee ee~~ |
Dates acted if not for whole year ~~ee~~ |
Name of person (or body) entitled to appoint trustee (ifany) ~~ee~~ |
| 1 Nigel Briston ~~ee ee~~ ~~PO~~ ~~ns~~ |
Deacon ~~ee ee~~ |
5.12.21 to 30.9.22 ~~ee~~ |
~~ee~~ |
| Hayley Prestidge- Briston ~~PO~~ ~~ns~~ ~~es~~ |
Minister-in-Training ~~es~~ |
~~es~~ | ~~es~~ |
| 3 Stephen Gee ~~ns~~ ~~es~~ ~~PO~~ |
Treasurer & Deacon ~~es~~ |
~~es~~ | ~~es~~ |
| 4 Diana Morgan ~~es~~ ~~PO~~ ~~es~~ |
Deacon ~~es~~ ~~es~~ |
~~es~~ ~~es~~ |
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| 5 Rick Morgan ~~PO~~ ~~es~~ ~~PO~~ |
Deacon ~~es~~ |
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| 6 Femi Okanlawon ~~es~~ ~~PO~~ ~~es~~ |
Deacon ~~es~~ ~~es~~ |
5.12.21 to 30.9.22 ~~es~~ ~~es~~ |
~~es~~ ~~es~~ |
| 7 Marion Hollebon ~~PO~~ ~~es~~ ~~es~~ |
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| 8 Mark Wicker ~~es~~ ~~es~~ |
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| 9 Karen Charles ~~es~~ ~~PO~~ ~~es~~ |
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Declarations
The trustees declare that they have approved the trustees’ report above.
Signed on behalf of the charity’s trustees
Signature(s) Been ~~Se]~~ Full name(s) Stephen Gee ~~ee~~ Position (e.g., Secretary, Treasurer & Trustee Chair, etc) ~~a~~ Date 12th March 2023 ~~PF~~
STROOD GOSPEL MISSION CHURCH
FINANCIAL STATEMENT FOR THE YEAR ENDED 30 SEPTEMBER 2022
GENERAL RECEIPTS & PAYMENTS ACCOUNT
| Note Income Sunday Offerings Regular Giving Rental Income Designated Mission Giving Sundry Income Interest Received Gift Aid Recovery Legacies Total Income Expenditure Payroll Tithe Fund Mileage Designated Mission Gifts Outreach & Publicity Training & Teaching Materials Preaching Gifts Sundries Licenses & Website Photocopier Resources Youth Work Property Church Utilities Church Technology College Accommodation & Travel Pastor’s Discretionary Fund Property Frindsbury Utilities Frindsbury Property Manse Total Expenditure Net income / (expenditure) for the year 1 Transfers to/from Reserve Accounts Balance at previous year end Balance at current year end |
2022 2021 5,862.37 7,591.30 25,027.00 31,299.50 12,006.14 11,433.83 740.43 134.40 1,047.68 43.00 659.97 678.35 7,635.51 - 14,317.97 - 52,979.10 65,498.35 19,822.06 27,258.20 3,890.38 2,751.59 - - 740.43 134.40 1,346.75 649.80 50.00 1,133.05 472.66 - 1,335.43 149.56 5,283.86 2,447.01 - 3,356.94 500.00 11,400.00 3,062.29 2,231.91 842.57 313.30 30.00 654.52 719.59 95.04 2,216.18 22.00 11,144.67 3,198.15 1,287.33 225.89 100.00 11,400.00 3,081.06 2,991.76 57,872.13 68,466.25 (4,893.03) (2,967.90) 5,000.00 - 22,623.36 25,591.26 22,730.33 22,623.36 |
|---|---|
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STATEMENT OF ASSETS AND LIABILITES AT 30 SEPTEMBER 2022
| Note Assets Bank and other cash balances Current Account Reserves Account Restricted Legacy Account (Mission) Charity Bank Account United Trust Account Other monetary assets: Debtors Loans made Gift aid claimed but not received Investment Assets Assets Held for Church’s own use 2 Total Assets Liabilities Current Liabilities Long Term Loans Pension Scheme liability 3 Other liabilities Total Liabilities* |
2022 2021 20,608.81 21,161.81 36,658.14 8,272.88 41,638.10 8,269.42 52,718.50 35,367.50 52,449.53 35,000.00 - - - - - - - - 1,451,750 1,354,401 |
|---|---|
| 1,605,375.83 1,512,919.86 - - - - 45.00 17,553.15 - - |
|
| 45.00 17,553.15 |
- Included within the Reserves Account is a figure of £8,872.19 representing the outstanding balance from the closure of the Playgroup, and is to be used for Youth Work.
The accounts and statement of assets and liabilities relating to the year ending 30[th] September 2022 are as approved by the Charity Trustees, and by the Members at the AGM of 4[th] December 2022.
Signed: Stephen Gee, Treasurer & Trustee (authorised to sign on behalf of the Charity Trustees)
Date: 4.12.2022
NOTES TO THE ACCOUNTS
1. Basis of accounts
These accounts have been prepared on a ‘receipts and payments’ basis and in accordance with Section 133 Charities Act 2011.
2. Assets Held for the Church’s own use
The Church is the beneficial owner (subject to the relevant trusts) of the following assets, the legal title to which is held by the Church’s custodian trustee, the Property Trustees:
-
Church premises at Brompton Lane valued in the accounts at £969,394 insured value.
-
Church manse at 1 Weston Road valued in the accounts at £416,745 insured value.
-
The Church also owns fixtures, furniture and equipment with an insured value of £65,611
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3. Pension Scheme Liabilities
The Church is a participating employer in 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. Since 1 January 2012, benefits have been provided through a Defined Contribution (DC) Plan.
There was a formal valuation of the DB Plan as at 31 December 2019 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 Church and the other participating employers in the DB Plan are collectively responsible for funding this deficit. The next actuarial valuation of the DB Plan within the Scheme was due to take place not later than as at 31 December 2022.
Under the Schedule of Contributions, the Church makes a monthly payment in respect of the DB scheme deficit, and historically these increased in line with increases in Minimum Pensionable Income. The Schedule of Contributions foresaw these contributions continuing until June 2026.
During the financial year, the Baptist Union informed all churches in the Baptist Pension Scheme that they and the Trustee of the Scheme had signed an agreement, on 30[th] June 2022, with the insurance company Just Group, to secure DB Plan members’ pension benefits. This agreement is referred to as a “buy-in policy” and means that Just Group are now providing financial backing for all DB pensions provided through the Scheme’s DB Plan.
The costs of such policies are largely driven by financial markets and these moved substantially in the Scheme’s favour to allow the transaction to take place. The transaction takes the Scheme out of a shortfall position for the first time in two decades.
The Trustee has sold most of the DB Plan’s investments assets and used the proceeds to pay the initial premium for the insurance policy from Just Group. Because the Just Group policies cover the overwhelming majority of the DB Plan’s liabilities, the risks to employers are substantially reduced. In view of this, the Baptist Union and the Trustee agreed that the deficit recovery contributions from each participating employer in the DB Plan should be reduced to £1 per month from August 2022.
However, there remain elements of the DB Plan’s finances that are uncertain prior to the completion of the buy-out process (which is the setting up of annuities for each member of the DB Pan). These uncertainties include: the sale values that will be achieved in the disposal of the residual investment assets; the costs of operating the DB Plan until the completion of the buy-out process; the costs of the buy-out process itself, and the cost of making any amendments to the DB Plan to enable the buy-out to proceed.
The Baptist Union and the Trustee of the Scheme expect the assets of the DB Plan will be sufficient to cover all the costs and liabilities that remain. However, it is possible that this will not be the case and that further funds will be needed from employers. It is not possible for the Baptist Union and the Trustee of the Scheme
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to quantify or estimate these funds at this time, but the direct debit mandates remain in place should there be a need to collect additional monies in the future.
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Independent examiner's report on the accounts CHARITY COMMISSION FOR ENGLAND AND WALES Section A Independent Examiner's Report Report to the trusteesl members of rity trl. Strood Gospel Mission Church On accounts for the year ended 30 September 2022 Charity no (if any) 1137729 Set out on pages General Receipts & Payments Account, Statement of Assets and Liabilities and Notes to the Accounts 1-3 (reniember to include the Daae numbers of addition21 sheetgl Respective responsibilities of trustees and examiner The charity's trustees are responsible for the preparation of the accounts. The charity's trustees consider that an audit is not required for this year under section 144 of the Charities Act 2011 ("the Charities Act") and that an independent examination is needed. It is my responsibility to: examine the accounts under section 145 of the Charities Act, to follow the procedures laid down in the general Directions given by the Charity Commission (under section 145(5)(b) of the Charities Act, and to state whether particular matters have come to my attention. Basis of independent My examination was carried out in accordance with general Directions given examiner's statement by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts and seeking explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a 'true and fair, view and the report is limited to those matters set out in the statement below. Independent In connection with my examination, no matter has come to my attention examiner's statement 1. which gives me reasonable cause to believe that in, any material respect, the requirements: to keep accounting records in accordance with section 130 of the Charities Act; and to prepare accounts which accord with the accounting records and comply with e accounting requirements of the Charities Act have not been m 2. to which, in proper un n, attention should be drawn in order to enable a the accounts to be reached. Signed: Date: 10 February 2023 Name: Lionel Robbins Relevant professional qualification(s) or body (if any): IER