Hayling Island Baptist Church
ANNUAL REPORT AND STATEMENT OF ACCOUNTS FOR THE YEAR ENDED 31 OF DECEMBER 2022
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
1st January 2022
END OF FINANCIAL YEAR
31st December 2022
TRUSTEES SERVING DURING THE YEAR 2022
Mr Ian Grey - Secretary Mr Andy Keen Miss Claire Roberts Mrs Millie Billett Mrs Christy Kalfas Mr Terry Worrall - Treasurer
MODERATOR
Revd Richard Ellingham
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 274 Sea Front Hayling Island PO11 0AZ
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 2022
Membership
The Church currently has a membership of 44. This year we have had 5 new members join the church. This represents an increase of 13%. 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 52 people. The overall breakdown by age of our church attendance numbers is as follows:
Children under 11: 1 Young People 11-16: 0 Young Adults 17-20: 1 Adults 21-29: 0 Adults 30-65: 30 Seniors 66+: 32
The Church Members Meeting
During 2022 there were 5 church members meetings, including a ‘special church meeting’ with an average attendance of 34 which represents 77%.
Young Peoples Work
Sunday Club
The aim of the Sunday Club is to introduce young hearts and minds to Jesus through Christian teaching based on the Bible. The Sunday Club consists of eight helpers, including a young adult aged 17, who share this responsibility. Currently we only have one child aged 5 that attends on a weekly basis. During 2022 we used stories from ‘The Jesus Story Book Bible.’ The medium of teaching is varied from the use of a DVD to tell the story, self-created craft ideas, work sheets and a variety of relevant games. All are used to apply the topic of the day to the lives of the young people we are trying to nurture for Jesus. When the 5-year-old child is absent then the team spend time with the young adult working through a Navigators Discipleship Course.
The Past Year
Appointment of part time minister
At the April church meeting Rev Richard Ellingham RN was appointed as our part time minister. He will work 50% of the week (Sunday through to Wednesday lunch time). The church voted to appoint Richard on the basis that we will need to purchase a manse. A target date of January 2023 has been set as a start date.
Purchase of manse
At a special church meeting it was decided that the church will purchase a manse. This is possible because of some very generous donations from the membership. Several generous gifts totalling £53,200 were made by church members. One church member stated that if the church were interested that she would be willing to sell her existing property to the church, (current value £170,000) for £130,000. This property is in Gorseway Park Retirement Village on Sea Front, Hayling Island. It was agreed to purchase the property. If the sale does not go through in time for Richard to take up his appointment there is a plan to temporarily house the Ellingham’s on the island.
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 2022 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:
-
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
-
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
-
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:11.10.2024 Bosham PO18 8NF
6
Hayling Island Baptist Church
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2022
| 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 2022 2021 £ £ £ £ 53,102 53,200 106,302 31,220 - 17,277 17,277 12,831 891 - 891 262 - - - - 53,993 70,477 124,470 44,313 615 - 615 500 -587 14,809 14,222 14,427 28 14,809 14,837 14,927 53,965 55,668 109,633 29,386 53,965 55,668 109,633 29,386 - - - - 53,965 55,668 109,633 29,386 48,696 28,995 77,691 48,305 102,661 84,663 187,324 77,691 |
|---|---|
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
| Unrestricted Funds |
Restricted Funds |
31-Dec-22 Total |
31-Dec-21 Total |
||
|---|---|---|---|---|---|
| Note | € | ||||
| Fixed Assets | |||||
| Tangible assets | |||||
| Current Assets Debtors Cash at bank and in hand TotalCurrentAssets |
41,120 66,951 108,071 |
84,663 84,663 |
41,120 151,614 192,734 |
19,066 79,347 98,413 |
|
| Creditors:amounts falling due within oneyear | 10 | -5,410 | -5,410 | -4,422 | |
| NET CURRENT ASSETS | 102,661 | 84,663 | 187,324 | 93,991 | |
| TOTAL ASSETS less current labilities | 102,661 | 84,663 | 187,324 | 93,991 | |
| Creditors: amounts falling due in more than one year |
4,1 | -16,300 | |||
| NET ASSETS | 102,661 | 84,663 | 187,324 | 77,691 | |
| Funds of the Charity General Funds Restricted Funds |
12 | 102,661 | 84,663 | 102,661 84,663 |
48,696 28,995 |
| Total Funds | 102,661 | 84,663 | 187,324 | 77,691 |
Hayling Island Baptist Church NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
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 2022
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 2022
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 2022
| Unrestricted | Restricted | TOTAL | TOTAL | ||
|---|---|---|---|---|---|
| 2. ANALYSIS OF INCOME | Funds | Funds | 2022 | 2021 | |
| £ | £ | £ | £ | ||
| a) Donations and Legacies | |||||
| Donations received - Regular | 12 | 24,353 | - | 24,353 | 21,145 |
| Donations received - Collections/Offering | 6,025 | - | 6,025 | 2,205 | |
| Gift Aid | 22,029 | - | 22,029 | 7,570 | |
| Gifts - Other | 695 | 53,200 | 53,895 | 300 | |
| 53,102 | 53,200 | 106,302 | 31,220 | ||
| b) Charitable Activities | |||||
| Hayling Holiday Lunches | 12 | - | 17,277 | 17,277 | 12,831 |
| - | 17,277 | 17,277 | 12,831 | ||
| c) Investments | |||||
| Interest received | 891 | - | 891 | 262 | |
| 891 | - | 891 | 262 | ||
| d) Other Income | |||||
| Other income | - | - | - | - | |
| - | - | - | - | ||
| 3. ANALYSIS OF EXPENDITURE | Unrestricted | Restricted | TOTAL | TOTAL | |
| Notes | Funds £ |
Funds £ |
2022 £ |
2021 £ |
|
| a) Charitable Activities | |||||
| Minister's Stipend Cost | 4 | 500 | - | 500 | 500 |
| Community Activities | 115 | - | 115 | - | |
| 615 | - | 615 | 500 | ||
| b) Other | |||||
| Rent | 4,098 | - | 4,098 | 3,815 | |
| Printing, Postage, Stationery | 259 | - | 259 | 45 | |
| It Software and Consumable | 752 | - | 752 | 178 | |
| Telephone & Mobile & Internet | 124 | - | 124 | 224 | |
| Equipment & repairs | 824 | - | 824 | 2,590 | |
| Legal & Professional fees | 1,239 | - | 1,239 | 1,047 | |
| Insurance | 276 | - | 276 | 278 | |
| Pension Deficit Cost | 5 | -13,952 | - | -13,952 | -3,685 |
| Training | 120 | - | 120 | - | |
| Charitable donations | 3,625 | - | 3,625 | 3,300 | |
| General expenses | 456 | - | 456 | 312 | |
| Subscriptions | 974 | - | 974 | 1,104 | |
| Website cost | 618 | 618 | - | ||
| Hayling Holiday Lunches | 12 | - | 14,809 | 14,809 | 5,219 |
| -587 | 14,809 | 14,222 | 14,427 |
12
Hayling Island Baptist Church NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 DECEMBER 2022
4. STAFF COSTS AND NUMBERS
| 4. STAFF COSTS AND NUMBERS Gross Wages Employer's National Insurance Costs Pension Contributions |
2022 2021 £ £ 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: |
2022 2021 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 2022 was £2,359. (2021: £3,815) All of those relate to the minister's 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 totalling to £13,952 was written back in the year leaving a year end balance of £0 (2021: £16,300).
6. TRUSTEES AND OTHER RELATED PARTIES
No trustee was paid for any additional roles in this financial year. (2021:Nil) No transactions took place between trustees and related parties in the financial year. (2021: Nil)
In this period the charity paid three trustees a total of £648 to reimburse them for their out-of-pocket expenses in relation to resources, teaching material, equipment, subscription costs (2021: £3,681).
| 7. TANGIBLE FIXED ASSETS EQUIPMENT Cost 01-Jan-22 Additions Cost at 31-Dec-22 Depreciation 01-Jan-22 Charge Depreciation at 31-Dec-22 Net Book Value 31-Dec-22 Net Book Value 31-Dec-21 |
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 2022 : None 31st December 2021: None
13
Hayling Island Baptist Church NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 DECEMBER 2022
| 8. DEBTORS AND PREPAYMENTS Notes Other Debtors Gift Aid 9. CASH AT BANK AND IN HAND Current Account Deposit Account Independent Examiners Fees Payroll Accrual Provision for BU Pension Liability 4 10. CREDITORS AND ACCRUALS: AMOUNTS FALLING DUE WITHIN ONE YEAR 11. CREDITORS: AMOUNTS FALLING DUE IN MORE THAN ONE YEAR |
Unrestricted Restricted Total Total Fund Fund 31-Dec-22 31-Dec-21 £ £ £ £ 1,142 - 1,142 1,117 39,978 - 39,978 17,949 41,120 - 41,120 19,066 Unrestricted Restricted Total Total Fund Fund 31-Dec-22 31-Dec-21 £ £ £ £ 65,625 84,663 150,288 27,412 1,326 - 1,326 51,935 66,951 84,663 151,614 79,347 Unrestricted Restricted Total Total Fund Fund 31-Dec-22 31-Dec-21 £ £ £ £ 5,352 - 5,352 4,422 58 - 58 - 5,410 - 5,468 4,422 Unrestricted Restricted Total Total Fund Fund 31-Dec-22 31-Dec-21 £ £ £ £ - - - 16,300 - - - 16,300 |
|---|---|
14
Hayling Island Baptist Church NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 DECEMBER 2022
12. RESTRICTED FUNDS
| CURRENT REPORTING PERIOD Manse Deposit Hayling Holiday Lunches PREVIOUS REPORTING PERIOD Manse Deposit Hayling Holiday Lunches |
Balance Balance 01-Jan-22 Income Expenditure Transfers 31-Dec-22 £ £ £ £ £ 21,383 53,200 - - 74,583 7,612 17,277 14,809 - - 10,080 28,995 70,477 14,809 - - 84,663 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 |
|---|---|
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 2022 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