## **Hayling Island Baptist Church**
**ANNUAL REPORT AND STATEMENT OF ACCOUNTS FOR THE YEAR ENDED 31 OF DECEMBER 2020**
Independent Examiners Ltd Unit 2 The Broadbridge Business Centre Dolling Lane Bosham PO18 8NF
1
## **Hayling Island Baptist Church**
## **CONTENTS**
Page 3 Legal and Administrative Information Page 4 to 5 Trustees' Annual Report Pages 6 Independent Examiner's Report on the accounts Page 7 Statement of Financial Activities Page 8 Balance Sheet Pages 9 to 14 Notes to the Financial Statements
2
## **Hayling Island Baptist Church**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
## **CHARITY NUMBER**
1146412
**START OF FINANCIAL YEAR**
01st January 2020
**END OF FINANCIAL YEAR**
31st December 2020
**TRUSTEES SERVING DURING THE YEAR 2020**
Mr Ian Grey Mr Andy Keen - Treasurer Miss Claire Roberts Mrs Mandy Worrall - Secretary - Resigned in March 2020 Mrs Millie Billett Mrs Christy Kalfas Mr Greg Osborne - Resigned in March 2020
## **MODERATOR**
Revd Richard Ellingham
## **FINANCE OFFICER**
Mr Terry Worrall
## **GOVERNING DOCUMENT**
Constitution Document adopted on 23 Nov 2011, revised on the 11th April 2016
**OBJECTIVES** The principal purpose of the Church is the advancement of the Christian faith according to the principals 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.
**REGISTERED ADDRESS** Hayling Island Baptist Church C/O St Andrews Church Southwood Road Hayling Island PO11 9QE
## **BANKING**
Nat West
**INDEPENDENT EXAMINER** Independent Examiners Ltd Unit 2, The Broadbridge Business Centre Delling Lane Bosham PO18 8NF
3
## **Hayling Island Baptist Church**
## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2020**
## **Membership**
We have managed to maintain our membership numbers at 38. In the early part of 2020, the fellowship relocated to Hayling Island Community Centre (HICC) from St Andrews CoE Church. Our service continues to begin at 10:00 and attracts a regular average congregation of 50 people. The overall breakdown by age of our church attendance numbers is as follows:
Children under 11: 3 Young People 11-16: 3 Young Adults 17-20: 5 Adults 21-29: 3 Adults 30-65: 24 Seniors 66+: 30
## **Covid19 Pandemic and National Lockdown**
All the reports which follow are in the context of the CoVid19 Pandemic and consequent lockdown restrictions.
## **The Church Members Meeting**
During 2020 there was 1 church members meeting with an attendance of 32 members which represents 84% of the membership.
## **Young Peoples Work**
## _Sunday Club_
The aim of the Sunday Club (SC) continues to be introducing young hearts and minds to Jesus through Christian teaching based on the Bible. The SC is run by a team of six leaders and four creche helpers. The leaders share the teaching responsibilities. Up until March 2020 we continued to use ‘Go Teach’ materials and follow their prescribed syllabus. The syllabus consists of Bible based lessons with background notes and a suggested lesson presentation. Go Teach also includes a CD with printable downloads to help the children engage with the teaching. The lesson plans cover a range of ages from primaries through to young teens. We now have six children regularly attending SC covering an age range of 9-15. We have one child in the creche.
## _About Life and Faith (ALF)_
We continue to use the resource ‘About Life and Faith’ (ALF) which continues to be popular with those attending. ALF is a Bible course produced by Viz-A-Viz for young people. The course uses a DVD to tell the Bible story and a resource manual packed with teaching ideas, relevant activities, games, and crafts. Until lockdown restrictions commenced ALF was run on a weekly basis taking place on Monday evenings. This remains to be a major part of outreach work to children through which they learn about becoming and being disciples of Jesus. This year we have had six children attending regularly with an age range of 6-16, two of which attend church on a Sunday.
## **The Past Year**
From March 2020 church life was drastically affected by the CoVid19 Pandemic the consequences of which were a national lockdown. The restrictions implemented by the Government meant that the church could no longer gather for Sunday worship, nor could the Diaconate meet face to face for their monthly leadership meetings.
In response to this we decided to move our leadership meetings online with immediate effect. Despite some initial teething problems this became our regular practice. Our biggest concerns were supporting the membership pastorally and spiritually. To address these concerns, we decided to also move our worship services online. We overcame the initial challenges of streaming services live. We were also able to upload our services onto You Tube for those who couldn’t join our streamed services. It was hard work to produce something weekly but with the great dedication of a small number of people we consistently had Sunday corporate worship although it be done remotely. We were the only church on Hayling Island to maintain an online presence throughout the lockdown period.
4
##
##
##
##
##
## **INDEPENDENT EXAMINER'S REPORT ON THE ACCOUNTS**
Report to the trustees/members of Hayling Island Baptist Church on the accounts for the year ended 31st December 2020 set out on pages 7 to 14.
## **RESPECTIVE RESPONSIBILITIES OF TRUSTEES AND EXAMINER**
The charity's trustees consider that an audit is not required for this year (under section 144 (2) of the Charities Act 2011) and that an independent examination is needed.
It is my responsibility to:
- examine the accounts (under section 145 of the 2011 Act),
- to follow the procedures laid down in the General Directions given by the Charity Commission (under section 145(5)(b) of the 2011 Act), and
- to state whether particular matters have come to my attention.
## **BASIS OF INDEPENDENT EXAMINER'S STATEMENT**
My examination was carried out in accordance with General Directions given by the Charity Commissioners. An examination includes a review of the accounting records kept by the organisation 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 EXAMINER'S STATEMENT**
In the course of my examination, no matter has come to my attention
1. which gives me reasonable cause to believe that in, any material respect, the trustees have not met the requirements to ensure that:
- proper accounting records are kept (in accordance with section 130 of the Act); and
- accounts are prepared which agree with the accounting records and comply with the accounting requirements of the Act; or
2. to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
Zita Derbak MAAT AATQB Sign: Independent Examiners Ltd Unit 2, The Broadbridge Business Centre Delling Lane Date: 05.07.2024 Bosham PO18 8NF
6
## **Hayling Island Baptist Church**
## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020**
|Notes
**INCOMING RESOURCES**
**Income and Endowments from:**
Donations and Legacies
2a
Charitable Activities
2b
Investments
2c
Other
2d
**TOTAL**
**RESOURCES EXPENDED**
**Expenditure on:**
Charitable Activities
3a
Other
3b
**TOTAL**
**NET INCOME/(EXPENDITURE) BEFORE**
**INVESTMENT GAINS/(LOSSES)**
**NET INCOME/(EXPENDITURE)**
Transfers between funds
**NET MOVEMENT IN FUNDS**
**RECONCILIATION OF FUNDS:**
Total Funds Brought Forward
**TOTAL FUNDS CARRIED FORWARD**|Unrestricted
Restricted
**TOTAL**
**TOTAL**
Funds
Funds
**2020**
**2019**
£
£
**£**
**£**
32,715
-
32,715
38,248
-
-
-
-
307
-
307
236
-
-
-
-
**33,022**
**-**
**33,022**
**38,484**
500
-
500
430
11,200
-
11,200
5,237
**11,700**
**-**
**11,700**
**5,667**
**21,322**
**-**
**21,322**
**32,817**
**21,322**
**-**
**21,322**
**32,817**
-
-
-
-
**21,322**
**-**
**21,322**
**32,817**
6,600
20,383
26,983
-5,834
**27,922**
**20,383**
**48,305**
**26,983**|
|---|---|
Movements on all reserves and all recognised gains and losses are shown above. All of the organisation's operations are classed as continuing.
The notes on pages 9 to 14 form part of these financial statements.
7
##
|||Unrestricted
Funds|Restricted
Funds|31-Dec-20
Total|31-Dec-19
Total|
|---|---|---|---|---|---|
||Note|||||
|Fixed Assets||||||
|Tangible assets||||||
|Current Assets
Debtors
Cash at bank and in hand
Total Current Assets||11,479
43,795
55,274|20,383
20,383|11,479
64,178
75,657|
5,656
47,967
53,623|
|Creditors:amounts falling due within oneyear|8|-3,552||-3,552|-2,640|
|NETCURRENTASSETS||51,722|20,383|72,105|50,983|
|TOTAL ASSETS less current liabilities||51,722|20,383|72,105|50,983|
|Creditors:amounts falling due in morethan
one year|4,9|-23,800||-23,800|-24,000|
|NET ASSETS||27,922|20,383|
48,305|
26,983|
|Funds of the Charity
General Funds
Restricted Funds|10|27,922|20,383|27,922
20,383|6,600
20,383|
|Total Funds||27,922|20,383|48,305|26,983|
## **Hayling Island Baptist Church NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
## **Basis of preparation:**
The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention.
The charity constitutes a public benefit entity as defined by FRS 102.
## **Changes to accounting estimates**
No changes to accounting estimates have occurred in the reporting period.
## **Material prior period errors**
No material prior year error have been identified in the reporting period.
## **1. ACCOUNTING POLICIES**
The particular accounting policies adopted are set out below.
## **INCOME**
## _**Recognition of Income**_
These are included in the Statement of Financial Activities (SOFA) when:
- the charity becomes entitled to the income;
- it is more likely than not that the trustees will receive the resources; and
- the monetary value can be measured with sufficient reliability.
## _**Offsetting**_
There has been no offsetting of assets and liabilities, or income and expenses, unless required or permitted by the FRS 102 SORP or FRS 102.
## _**Grants and Donations**_
Grants and donations are only included in the SoFA when the general income recognition criteria are met (5.10 to 5.12 FRS 102 SORP).
## _**Tax Reclaims on Donations and Gifts**_
Gift Aid receivable is included in income when there is a valid declaration from the donor. Any Gift Aid amount recovered on a donation is considered to be part of that gift and is treated as an addition to the same fund as the initial donation unless the donor or the terms of the appeal have specified otherwise.
## _**Contractual Income and Performance Related Grants**_
This is only included in the SoFA once the charity has provided the related goods or services or met the performance related conditions.
## _**Gifts in Kind**_
Gifts in kind for use by the charity are included in the SoFA as income from donations when receivable.
## _**Legacies**_
Legacies are included in the SOFA when receipt is probable, that is, when there has been grant of probate, the executors have established that there are sufficient assets in the estate and any conditions attached to the legacy are either within the control of the charity or have been met.
## _**Donated goods**_
Donated goods are measured at fair value (the amount for which the asset could be exchanged) unless impractical to do so.
9
## **Hayling Island Baptist Church NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 DECEMBER 2020**
## _**Donated goods (continued)**_
The cost of any stock of goods donated for distribution to beneficiaries is deemed to be the fair value of those gifts at the time of their receipt and they are recognised on receipt. In the reporting period in which the stocks are distributed, they are recognised as an expense at the carrying amount of the stocks at distribution.
Donated goods for resale are measured at fair value on initial recognition, which is the expected proceeds from sale less the expected costs of sale, and recognised in 'Income from other trading activities' with the corresponding stock recognised in the balance sheet. On its sale the value of stock is charged against 'Income from other trading activities' and the proceeds from sale are also recognised as 'Income from other trading activities'.
Goods donated for on-going use by the charity are recognised as tangible fixed assets and included in the SoFA as incoming resources when receivable.
## _**Donated Services and Facilities**_
Donated services and facilities are included in the SOFA when received at the value of the gift to the charity provided the value of the gift can be measured reliably.
Donated services and facilities that are consumed immediately are recognised as income with an equivalent amount recognised as an expense under the appropriate heading in the SOFA.
## _**Volunteer Help**_
The value of any voluntary help received is not included in the accounts but is described in the Directors' annual report.
## _**Income from interest, royalties and dividends**_
This is included in the accounts when receipt is probable and the amount receivable can be measured reliably.
## _**Investment Gains and Losses**_
This included any gain or loss on the sale of investments and any gain or loss resulting from revaluing investments to market value at the end of the year.
## _**Insurance claims**_
Insurance claims are only included in the SoFA when the general income recognition criteria are met (5.10 to 5.12 FRS 102 SORP) and are included as an item of other income in the SoFA.
## _**Income from membership subscriptions**_
Membership subscriptions received in the nature of a gift are recognised in Donations and Legacies.
Membership subscriptions which gives a member the right to buy services or other benefits are recognised as income earned from the provision of goods and services as income from charitable activities.
## **Expenditure and liabilities**
The charity has opted to prepare its accounts using natural categories.
## _**Liability Recognition**_
Liabilities are recognised where it is more likely than not that there is a legal or constructive obligation committing the charity to pay out resources and the amount of the obligation can be measured with reasonable certainty.
## _**Governance and Support Costs**_
Support costs represent the cost of central functions, for example governance costs, payroll administration, information technology. Governance costs are those support costs which relate to public accountability of the charity and its compliance with regulation and good practice.
## _**Grants with Performance Conditions**_
Where the charity gives a grant with conditions for its payment being a specific level of service or output to be provided, such grants are only recognised in the SOFA once the recipient of the grant has provided the specified service or output.
## _**Grants Payable without Performance Conditions**_
Where there are no conditions attaching to the grant that enables the donor charity to realistically avoid the commitment, a liability for the full funding obligation must be recognised.
10
## **Hayling Island Baptist Church**
## **NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 DECEMBER 2020**
## _**Employee benefits**_
Short term benefits including holiday pay are recognised as an expense in the period in which the service is received.
## _**Redundancy cost**_
The charity made no redundancy payments during the reporting period.
## _**Deferred income**_
No material item of deferred income has been included in the accounts.
## _**Creditors**_
The charity has creditors which are measured at settlement amounts less any trade discounts.
## _**Provisions for liabilities**_
A liability is measured on recognition at its historical cost and then subsequently measured at the best estimate of the amount required to settle the obligation at the reporting date
## _**Fixed Assets**_
These are capitalised if they can be used for more than one year, and are valued at cost or, if gifted, at the value to the charity on receipt.
## _**Depreciation Expense**_
Depreciation is provided at rates calculated to write off the cost less residual value of each asset over its expected useful life.
## _**Debtors**_
Debtors (including trade debtors and loans receivable) are measured on initial recognition at settlement amount after any trade discounts or amount advanced by the charity. Subsequently, they are measured at the cash or other consideration expected to be received.
|**2. ANALYSIS OF INCOME**
**a) Donations and Legacies**
Donations received - Regular
Gift Aid
**b) Charitable Activities**
None
**c) Investments**
Interest received
**d) Other Income**
Other income
Donations received - Collections/Offering|Unrestricted
Restricted
**TOTAL**
**TOTAL**
Funds
Funds
**2020**
**2019**
£
£
**£**
**£**
24,293
-
24,293
23,625
2,599
-
2,599
10,067
5,823
-
5,823
4,556
**32,715**
**-**
**32,715**
**38,248**
-
-
-
-
**-**
**-**
**-**
**-**
307
-
307
236
**307**
**-**
**307**
**236**
-
-
-
-
**-**
**-**
**-**
**-**|
|---|---|
11
## **Hayling Island Baptist Church NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 DECEMBER 2020**
|**3. ANALYSIS OF EXPENDITURE**
Notes
**a) Charitable Activities**
Minister's Stipend Cost
Speaker Fees and Expenses
**b) Other**
Rent
Printing, Postage, Stationery
It Software and Consumable
Telephone & Mobile & Internet
Equipment & repairs
Legal & Professional fees
Insurance
Pension Deficit Cost
9
Training
Charitable donations
General expenses
Subscriptions
**4. STAFF COSTS AND NUMBERS**
Gross Wages
Employer's National Insurance Costs
Pension Contributions|Unrestricted
Restricted
**TOTAL**
**TOTAL**
Funds
Funds
**2020**
**2019**
£
£
**£**
**£**
500
-
500
-
-
-
-
430
**500**
**-**
**500**
**430**
2,108
-
2,108
5,088
171
-
171
142
271
-
271
-
115
-
115
206
826
-
826
2,958
1,057
-
1,057
2,048
273
-
273
281
2,644
-
2,644
18,021
-
-
-
-
80
2,400
-
2,400
9,973
607
-
607
1,443
728
-
728
1,039
**11,200**
**-**
**11,200**
**5,237**
**2020**
**2019**
**£**
**£**
500
-
-
-
-
-
500
-|
|---|---|
No employee received emoluments in excess of £60,000 for the period.
Employees were engaged in the following activities:
|Charitable Activities|**2020**
**2019**
**TOTAL**
**TOTAL**
1
-
1
-|
|---|---|
12
## **Hayling Island Baptist Church NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 DECEMBER 2020**
## **5. Defined contribution pension scheme or defined benefit pension plan**
## Defined Contribution Pension Scheme
Amount of contributions recognised in the SOFA as an expense in 2020 was £2,644. (2019: £3,563) All of those relate to the trustees remuneration and are therefore recognised in the general fund under charitable activities.
## Defined Benefit Pension Plan
The charity was enrolled in the Baptist Unions defined benefit pension scheme which is a multi company pension scheme and is in deficit. The proportion of the deficit which is apportioned to Hayling Island Baptist Church stands at £23,800 (2019: £24,000), and its net present value calculated using the RPI is £23,800 (2019: £24,000).
## **6. TRUSTEES AND OTHER RELATED PARTIES**
No trustee was paid for any additional roles in this financial year. (2019:Nil)
In this period the charity paid three trustees a total of £1,041 to reimburse them for their out-of-pocket expenses in relation to resources, teaching material, equipment, subscription costs (2019: £1,443). Husband of M Worrall, trustee, received £350 to reimburse out-of-pocket expenses in relation to subscriptions, gifts, equipment.
|**7. DEBTORS AND PREPAYMENTS**
Notes
Other Debtors
Gift Aid
**8. CASH AT BANK AND IN HAND**
Current Account
Deposit Account
Independent Examiners Fees
Provision for BU Pension Liability
4
**9. CREDITORS AND ACCRUALS: AMOUNTS**
**FALLING DUE WITHIN ONE YEAR**
**10. CREDITORS: AMOUNTS FALLING DUE IN**
**MORE THAN ONE YEAR**|Unrestricted
Restricted
**Total**
**Total**
Fund
Fund
**31-Dec-20**
**31-Dec-19**
£
£
**£**
**£**
1,100
-
1,100
1,100
10,379
-
10,379
4,556
**11,479**
**-**
**11,479**
**5,656**
Unrestricted
Restricted
**Total**
**Total**
Fund
Fund
**31-Dec-20**
**31-Dec-19**
£
£
**£**
**£**
32,505
-
32,505
16,601
11,290
20,383
31,673
31,366
**43,795**
**20,383**
**64,178**
**47,967**
Unrestricted
Restricted
**Total**
**Total**
Fund
Fund
**31-Dec-20**
**31-Dec-19**
£
£
**£**
**£**
3,552
-
3,552
2,640
**3,552**
-
**3,552**
**2,640**
Unrestricted
Restricted
**Total**
**Total**
Fund
Fund
**31-Dec-20**
**31-Dec-19**
£
£
**£**
**£**
23,800
-
23,800
24,000
**23,800**
-
**23,800**
**24,000**|
|---|---|
13
## **Hayling Island Baptist Church NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 DECEMBER 2020**
## **11. RESTRICTED FUNDS**
|CURRENT REPORTING PERIOD
Manse Deposit
PREVIOUS REPORTING PERIOD
Manse Deposit|Balance
Balance
01-Jan-20
Income
Expenditure
Transfers
31-Dec-20
£
£
£
£
£
20,383
-
-
-
20,383
**20,383**
**-**
-
-
**20,383**
Balance
Balance
01-Jan-19
Income
Expenditure
Transfers
31-Dec-19
£
£
£
£
£
19,383
1,000
-
-
20,383
**19,383**
1,000
-
-
**20,383**|
|---|---|
Manse Deposit is restricted amount for the purchase of manse property.
The restricted funds are wholly represented by cash reserves of the charity.
## **12. EVENTS AFTER THE END OF THE REPORTING PERIOD**
The accounts for 2020 and subsequent years were re-examined in January 2024 when a number of errors and omissions were found in prior years.
These accounts supersede any previous financial reports.
## **13. RISK ASSESSMENT**
The trustees actively review the major risks which the charity faces on a regular basis and believe that maintaining the free reserves stated, combined with the annual review of the controls over key financial systems carried out on an annual basis will provide sufficient resources in the event of adverse conditions. The trustees have also examined other operational and business risks which they face and confirm that they have established systems to mitigate the significant risks.
## **14. RESERVES POLICY**
The trustees have considered the level of reserves they wish to retain, appropriate to the charity's needs. This is based on the charity's size and the level of financial commitments held. The trustees aim to ensure the charity will be able to continue to fulfil its charitable objectives even if there is a temporary shortfall in income or unexpected expenditure. The trustees will endeavour not to set aside funds unnecessarily.
## **15. PUBLIC BENEFIT**
The charity acknowledges its requirement to demonstrate clearly that it must have charitable purposes or ‘aims’ that are for the public benefit. Details of how the charity has achieved this are provided in the Trustees report. The trustees confirm that they have paid due regard to the Charity Commission guidance on public benefit before deciding what activities the charity should undertake.
14