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2021-12-31-accounts

Hayling Island Baptist Church

ANNUAL REPORT AND STATEMENT OF ACCOUNTS FOR THE YEAR ENDED 31 OF DECEMBER 2021

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 15 Notes to the Financial Statements

2

Hayling Island Baptist Church

LEGAL AND ADMINISTRATIVE INFORMATION

CHARITY NUMBER

1146412

START OF FINANCIAL YEAR

01st January 2021

END OF FINANCIAL YEAR

31st December 2021

TRUSTEES SERVING DURING THE YEAR 2021

Mr Ian Grey Mr Andy Keen - Treasurer Miss Claire Roberts Mrs Millie Billett Mrs Christy Kalfas Mr Terry Worrall - Appointed on 19/04/2021

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 2021

Membership

The Church currently has a membership of 39. This year we have had 1 new member join the church. This represents an increase of 2.6%. On Sundays we continue to worship in Hayling Island Community Centre (HICC). Our Service begins at 10:00 and attracts an average regular congregation of 45 people. There has been a slight reduction in attendance post lockdown. 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: 2 Adults 30-65: 28 Seniors 66+: 26

The Church Members Meeting

During 2021, due to lockdown restrictions, there were only 2 church members meetings with an average attendance of 28 members, which represents 72%.

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. After lockdown restrictions were eased, 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 12-16. We have one child in the creche.

About Life and Faith (ALF)

ALF did not resume after lockdown.

The Past Year

The early part of the year saw the church operating under lockdown restrictions. Therefore, pre-recorded services continued to be posted on you tube. This involved bringing a number of separately recorded elements together (leading worship songs, preaching, prayers etc) and editing them together to produce a service of Sunday Worship.

When lockdown restrictions were eased, we recommenced gathering at Hayling Island Community Centre for our regular Sunday worship. We followed all Government guidelines, such as monitoring temperature of worshippers on entry to church, taking names and contact details for track and trace purposes, masks were worn until that guideline was later eased, chairs were spaced appropriately, and refreshments were not served. It was evident and understandable that some people were choosing to stay away from church because they were categorised as vulnerable, or they had become used to staying home on Sunday mornings. In order to meet the needs of those staying at home a decision was made to stream live services. This became standard procedure for our church services.

Our moderator, Revd Richard Ellingham RN, has formally expressed an interest in becoming our part-time pastor when he retires from the Royal Navy in August 2022. The leadership team prayerfully considered this and after due consideration informed the church meeting. Richard stated that if he were to become the pastor of the church that he and his wife Pam would like to live on the island – in fact they saw this as crucial for his ministry. He has also said that he would be willing to serve as our pastor on a ‘house for duty basis,’ without a stipend. The idea would be to get us to a point where we can employ a full-time minister in the future.

4

Hayling Island Baptist Church

TRUSTEES' REPORT (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2021

Future Vision

Given Richard’s proposal we need to continue to prayerfully consider and discuss the possibility of employing him as our part time minister. He is clear that this is with a view of growing the church sufficiently to eventually employ someone in a full-time capacity. Initially this would involve the purchase of a manse for Richard and Pam. We need to look at our financial situation and determine a strategy to achieve these things if we think that they are of God’s will for us as a church.

Financial Review and Reserves Policy

The charity’s principal source of funding is from the regular giving of church members and where applicable the corresponding gift aid. Currently the church finances are healthy, a full and detailed financial report is attached.

At the end of the year 2021 the Charity had £79,347 available in cash funds, £15,169 more than in the prior year. The Net assets are in the value of £77,691 in gain, £29,386 more than it was in 2020. This is mainly due to partially written off provision for Baptist Union Pension Liability in prior years and Gift Aid owed from 2019

onwards.

TRUSTEES RESPONSIBILITIES

● Prepare financial statements on the going concern basis unless it is inappropriate to presume that the trust will continue in existence.

The trustees are responsible for keeping proper accounting records, which disclose with reasonable accuracy at

any time the financial position of the trust. They are also responsible for safeguarding the assets of the trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Signed on behalf of the Trustees ....................................................................., Trustee.

Print name: ........................................................

Date: ..................................................

5

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 2021 set out on pages 7 to 15.

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:

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:

  2. proper accounting records are kept (in accordance with section 130 of the Act); and

  3. accounts are prepared which agree with the accounting records and comply with the accounting requirements of the Act; or

  4. 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: 02.09.2024 Bosham PO18 8NF

6

Hayling Island Baptist Church

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2021

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
2021
2020
£
£
£
£
30,220
1,000
31,220
32,715
-
12,831
12,831
-
262
-
262
307
-
-
-
-
30,482
13,831
44,313
33,022
500
-
500
500
9,208
5,219
14,427
11,200
9,708
5,219
14,927
11,700
20,774
8,612
29,386
21,322
20,774
8,612
29,386
21,322
-
-
-
-
20,774
8,612
29,386
21,322
27,922
20,383
48,305
26,983
48,696
28,995
77,691
48,305

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 15 form part of these financial statements.

7

Hayling Island Baptist Church BALANCE SHEET AS AT 31 DECEMBER 2021

Note
Fixed Assets
Tangible assets
7
Current Assets
Debtors
8
Cash at bank and in hand
9
Total Current Assets
Creditors:amounts falling due within one year
10
NET CURRENT ASSETS
TOTAL ASSETSless current liabilities
Creditors:amounts falling due in more than
4, 11
one year
NET ASSETS
Funds of the Charity
General Funds
Restricted Funds
12
Total Funds
Unrestricted
Restricted
31-Dec-21
31-Dec-20
Funds
Funds
Total
Total
£
£
£
£
-
-
-
-
19,066
-
19,066
11,479
50,352
28,995
79,347
64,178
69,418
28,995
98,413
75,657
-4,422
-
-4,422
-3,552
64,996
28,995
93,991
72,105
64,996
28,995
93,991
72,105
-16,300
-
-16,300
-23,800
48,696
28,995
77,691
48,305
48,696
-
48,696
27,922
-
28,995
28,995
20,383
48,696
28,995
77,691
48,305

The financial statements on pages 7 and 8 were approved by the trustee, and authorised for issue on:

Date: …............................................................

8

Hayling Island Baptist Church NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

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:

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 2021

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.

10

Hayling Island Baptist Church

NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 DECEMBER 2021

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.

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

Fixed assets are recognised when it is probable that future economic benefits will flow to the charity, and the cost of the asset can be measured reliably. The cost of a fixed asset includes its purchase price and any directly attributable costs of bringing the asset to working condition for its intended use. Fixed assets are only capitalised if the cost of the individual asset exceeds £2,000. Any purchase of an asset with a value of £2,000 or less will be treated as an expense in the financial year of purchase and will not be capitalised.

Depreciation Expense

Capitalised fixed assets will be depreciated over their useful economic lives, commencing from the date the asset is available for use. The charity will use a straight-line method for depreciation unless another method is deemed more appropriate for the specific asset. Depreciation rates will be reviewed periodically to ensure they remain appropriate.

Impairment

The charity will review the carrying value of its fixed assets annually to determine whether there is any indication of impairment. If an asset's carrying value exceeds its recoverable amount, an impairment loss will be recognised.

Disposal of assets

When a fixed asset is disposed of, the cost and accumulated depreciation will be removed from the balance sheet. Any gain or loss on disposal will be recognised in the Statement of Financial Activities.

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.

11

Hayling Island Baptist Church NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 DECEMBER 2021

Unrestricted Restricted TOTAL TOTAL
2. ANALYSIS OF INCOME Funds Funds 2021 2020
£ £ £ £
a) Donations and Legacies
Donations received - Regular 12 20,145 1,000 21,145 24,293
Donations received - Collections/Offering 2,205 - 2,205 2,599
Gift Aid 7,570 - 7,570 5,823
Gifts - Other 300 - 300 -
30,220 1,000 31,220 32,715
b) Charitable Activities
Hayling Holiday Lunches 12 - 12,831 12,831 -
- 12,831 12,831 -
c) Investments
Interest received 262 - 262 307
262 - 262 307
d) Other Income
Other income - - - -
- - - -
3. ANALYSIS OF EXPENDITURE Unrestricted Restricted TOTAL TOTAL
Notes Funds
£
Funds
£
2021
£
2020
£
a) Charitable Activities
Minister's Stipend Cost 4 500 - 500 500
Speaker Fees and Expenses - - - -
500 - 500 500
b) Other
Rent 3,815 - 3,815 2,108
Printing, Postage, Stationery 45 - 45 171
It Software and Consumable 178 - 178 271
Telephone & Mobile & Internet 224 - 224 115
Equipment & repairs 2,590 - 2,590 826
Legal & Professional fees 1,047 - 1,047 1,057
Insurance 278 - 278 273
Pension Deficit Cost 5 -3,685 - -3,685 2,644
Training - - - -
Charitable donations 3,300 - 3,300 2,400
General expenses 312 - 312 607
Subscriptions 1,104 - 1,104 728
Hayling Holiday Lunches 12 - 5,219 5,219 -
9,208 5,219 14,427 11,200

12

Hayling Island Baptist Church NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 DECEMBER 2021

4. STAFF COSTS AND NUMBERS

4. STAFF COSTS AND NUMBERS
Gross Wages
Employer's National Insurance Costs
Pension Contributions
2021
2020
£
£
500
500
-
-
-
-
500
500

No employee received emoluments in excess of £60,000 for the period.

Charitable Activities
Employees were engaged in the
following activities:
2021
2020
TOTAL
TOTAL
1
1
1
1

5. DEFINED CONTRIBUTION PENSION SCHEME AND DEFINED BENEFIT PENSION PLAN

Defined Contribution Pension Scheme

Amount of contributions recognised in the SOFA as an expense in 2021 was £3,815. (2020: £2,644) 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 £16,300 (2020: £23,800), and its net present value calculated using the RPI is £16,300 (2020: £23,800).

6. TRUSTEES AND OTHER RELATED PARTIES

No trustee was paid for any additional roles in this financial year. (2020:Nil) No transactions took place between trustees and related parties in the financial year. (2020: Nil)

In this period the charity paid three trustees a total of £3,681 to reimburse them for their out-of-pocket expenses in relation to resources, teaching material, equipment, subscription costs (2020: £1,041). Spouse of T Worrall, trustee, received £238 to reimburse out-of-pocket expenses in relation to gifts, PAYE etc.

7. TANGIBLE FIXED ASSETS
EQUIPMENT
Cost
01-Jan-21
Additions
Cost at
31-Dec-21
Depreciation
01-Jan-21
Charge
Depreciation at
31-Dec-21
Net Book Value
31-Dec-21
Net Book Value
31-Dec-20
Unrestricted
Restricted
Total
£
£
£
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

The annual commitments under non-cancelling operating leases and capital commitments are as follows:

31st December 2021 : None

31st December 2020: None

13

Hayling Island Baptist Church

NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 DECEMBER 2021

8. DEBTORS AND PREPAYMENTS
Notes
Other Debtors
Gift Aid
9. CASH AT BANK AND IN HAND
Current Account
Deposit Account
Independent Examiners Fees
Provision for BU Pension Liability
4
11. CREDITORS: AMOUNTS FALLING DUE IN
MORE THAN ONE YEAR
10. CREDITORS AND ACCRUALS: AMOUNTS
FALLING DUE WITHIN ONE YEAR
Unrestricted
Restricted
Total
Total
Fund
Fund
31-Dec-21
31-Dec-20
£
£
£
£
1,117
-
1,117
1,100
17,949
-
17,949
10,379
19,066
-
19,066
11,479
Unrestricted
Restricted
Total
Total
Fund
Fund
31-Dec-21
31-Dec-20
£
£
£
£
27,412
-
27,412
32,505
22,940
28,995
51,935
31,673
50,352
28,995
79,347
64,178
Unrestricted
Restricted
Total
Total
Fund
Fund
31-Dec-21
31-Dec-20
£
£
£
£
4,422
-
4,422
3,552
4,422
-
4,422
3,552
Unrestricted
Restricted
Total
Total
Fund
Fund
31-Dec-21
31-Dec-20
£
£
£
£
16,300
-
16,300
23,800
16,300
-
16,300
23,800

14

Hayling Island Baptist Church NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 DECEMBER 2021

12. RESTRICTED FUNDS

CURRENT REPORTING PERIOD
Manse Deposit
Hayling Holiday Lunches
PREVIOUS REPORTING PERIOD
Manse Deposit
Balance
Balance
01-Jan-21
Income
Expenditure
Transfers
31-Dec-21
£
£
£
£
£
20,383
1,000
-
-
21,383
-
12,831
-5,219
-
7,612
20,383
13,831
-5,219
-
28,995
Balance
Balance
01-Jan-20
Income
Expenditure
Transfers
31-Dec-20
£
£
£
£
£
20,383
-
-
-
20,383
20,383
-
-
-
20,383

Manse Deposit is restricted amount for the purchase of manse property.

Hayling Holiday Lunches was set up to provide weekly food supplies to local families during school holidays whose children would normally receive free school meals.

The restricted funds are wholly represented by cash reserves of the charity.

13. EVENTS AFTER THE END OF THE REPORTING PERIOD

The accounts for 2021 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.

14. 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.

15. 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.

16. 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.

15