2022-03-31-accounts

VICTORIA PARK BAPTIST CHURCH

CHARITY NUMBER 1146557

REPORT AND ACCOUNTS for the year ended 31 March 2022

Shruti Soni Limited Chartered Certified Accountants 117A St Johns Road Sevenoaks TN13 3PE

Contents

	Page
Reference and administrative	2
Trustees' report	3 - 10
Independent examiner’s report	11
Statement of financial activities	12
Balance sheet	13
Notes to the accounts	14-28

VICTORIA PARK BAPTIST CHURCH TRUSTEE ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2022

VICTORIA PARK BAPTIST CHURCH.

FOR THE YEAR ENDED 31 MARCH 2022

Trustees/Leadership Team

Pauline Facey NVQ Business Studies Elisabeth Morris RGN. RM. DN John Morris BA Dip HE Hilary A Papworth (Treasurer) BEd NPQH Olatokunbo Atanda LLB (Hons) Post grad Diploma in Legal Practice. Solicitor Advocate Mobolaji Yoloye BEng. MSc. Becky Gbande BSc. DipEd. MA. PGCE

Elections are held every November for leaders whose 3 year term has expired; however the church members agreed that this become flexible in light of disruptions to normal gatherings caused by Covid 19 pandemic and the extensive work on the church building which continues to disrupt activities.

Property Trustees

The London Baptist Property Board Ltd, 235 Shaftesbury Ave, London WC2H 8EP

Governing Document

Deed of Trust dated 23[rd] July 1869 Victoria Park Baptist Church Constitution adopted by the Church Members Meeting on 25[th] May 2011

Charity status

Registered Charity Number No. 1146557

Registered Office

Victoria Park Baptist Church 186 Grove Road Bow, London E3 5TG

Bankers

Barclays

Mile End and Bow Group 240 Whitechapel Road London E1 1BS

Independent Examiner

Shruti Soni Limited 117A St. Johns Hill Sevenoaks, TN1 3PE

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VICTORIA PARK BAPTIST CHURCH TRUSTEE ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2022

The Trustees have pleasure in submitting the Report and Accounts for the year to 31 March 2022

How Victoria Park Baptist Church is Constituted and its charitable Objective

The 1869 Trust document states the Chapel is to be used as a place of public religious worship by the society of Protestant Dissenters called the Particular Baptists. The objective stated in the Trust is regular Sunday worship along with the running of a Sunday or other school or schools. The Church in 1999 adopted the Mission Statement “ Victoria Park Baptist Church aims to tell and be Good News in the community.” The charities values are linked to the five core values for a gospel people of the Baptist Union of Great Britain . These values are: following Jesus as a community which is sacrificial, worshipping, inclusive, prophetic and missionary.

The Victoria Park Baptist Church Constitution of 2011 states “ the principle purpose of the Church is the advancement of the Christian faith according to the principles of the Baptist denomination. The Church may also advance education and carry out other charitable purposes in the United Kingdom and/or other parts of the world.”

Organisational Structure and Decision-making processes.

The church is a registered charity under the provisions of the Charities Act 2011 and is an unincorporated association. Therefore, its premises and any investments are held by other legal bodies acting as our trustees which in our case are the London Baptist Property Board who hold in trust the church building and the manse. Our reserves are also held with the London Baptist Property Board.

In this church it is the Minister(s) if any and the Leadership Team that form the Board of Trustees. (There is a historic use of the term “Deacon” for those on the Leadership Team who are not Ministers). This comprises the Church Secretary, Church Treasurer and other appointed Leaders who act as the Trustees chosen from among those who have been Church Members for at least six months. The maximum number of Leaders//Trustees is agreed from time to time by the Church Members Meeting. The Trustees receive appropriate documentation and are made aware of the legal responsibilities that they are accepting on appointment.

The Church may have a Minister or more than one Minister or no Minister. Where a Minister is appointed it is expected that they will become a Member of the Church.

A Minister of this Church is expected to accept the Baptist Union’s Declaration of Principle and to be in relationship with the Baptist Union and the Association. This is normally expressed by being on the Baptist Union’s Register of Covenanted Persons Accredited for Ministry . The Minister, whether or not they are on the Register will be supportive of the Church’s relationships with other Baptist Churches, the Association and the Baptist Union. The Church recognises that the Minister and the Church are in a covenant relationship based on Christian love and trust and mutual accountability. A Minister is appointed or removed by a resolution of the Church Members at a Special Church Members’ Meeting at any time.

The Trustees/ Leaders are responsible for the governance of the Church and the fulfilment of the purpose through its activities acting according to the will of God as discerned by the Church Members Meeting and subject to any specific or general directions of that Meeting. Worship including prayer and the reading of Scripture shall be key features of any meeting of the Charity Trustees whose leadership and administration of the church is to be through mutual accountability, service, and pastoral care, along with strategic thinking and effective management.

The Trustees have specific power but are subject to any general or specific directions of the Church Members Meeting to apply for and accept grants and to provide security in respect of obligations under grant agreements. They act in accordance with the specific directions of the Church Members’ Meeting in relation to matters relating to church property including any purchase, sale, lease, mortgage or redevelopment of church property. The Charity Trustees have the power to borrow money, receive grants, give guarantees and or security for loans, and to make grants or loans of money. In the event of a charge over land and/or buildings being required this is under the provisions in the trusts for the land and with statute law. The Trustees also have the power to make grants to other charities working elsewhere in the United Kingdom and/or other parts of the world.

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VICTORIA PARK BAPTIST CHURCH TRUSTEE ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2022

The Trustees determine a quorum for their full meetings that is not less than two persons or half of their number whichever is the greater number. They determine when and how frequently they shall meet provided that they shall convene meetings of the whole group not less than once every two months. In addition to regular meetings of the whole group they may meet in such sub-groups as are necessary and convenient. Reports of such subgroup meetings are made to the next full Trustees Meeting. Each Trustee has one vote. Every issue can be determined by a simple majority of votes cast at a meeting of the Trustees but if there is an equality of votes on any matter the resolution will be considered rejected and the matter shall be referred back to the submitter for review and if appropriate resubmission to a subsequent meeting for consideration.

The Church Members meet together in a Church Members Meeting under the guidance of the Holy Spirit and under the Lordship of Christ to discern the mind of God in the affairs of the Church. The Church Members Meeting has reserved authority in the appointment and removal of a Minister, the appointment and removal of Charity Trustees, the appointment and removal of staff, and other decisions related to church property including any purchase, sale, lease, mortgage, or redevelopment of property, the administration of the membership list, and the closure of the Church.

The Church Members’ Meeting appoint Leaders/Trustees to be responsible for the governance of the Church and where there is a Minister(s) that person is a Charity Trustee because of their role and responsibilities.

The Church Members’ Meeting arrange for the appointment of a Church Secretary and Church Treasurer (or equivalents). Charity Trustees shall serve so long as they have the support of the Church Members Meeting and (except for those in ministerial office) are actively appointed and reappointed at least once every three years. Voting is by secret ballot at an Ordinary Church Members Meeting

There are two types of formal Church Members Meetings, Ordinary and Special Church Members Meetings.

Ordinary Church Members Meetings are held at regular intervals on not less than four occasions in any calendar year and are an opportunity to consider and review routine matters associated with the life of the Church including issues related to church membership, the appointment and dismissal of the Charity Trustees, the approval of the budget, with opportunities for considering proposals from the Charity Trustees or other Church Members for the development of the Church and the advancement of its purpose through its activities.

One Ordinary Church Members’ Meeting each year includes the Annual Church Members’ Meeting for the Church Members to receive annual accounts and reports, to appoint Auditors or Independent Examiners, and to consider proposals for the strategy and vision of the church in the coming year, with other appropriate matters.

A Special Church Members Meeting is convened when necessary to consider the appointment or dismissal of a minister, matters relating to the purchase, sale, lease, mortgage or redevelopment of church property, the closure of the church, or matters considered by the Charity Trustees to be of sufficient importance to require the calling of a Special Members Meeting. A special church members meeting was held on 05/12/21 to agree to applying for a loan from London Baptist property board for the replacement of the church roof and associated work.

Joining and becoming a church member is normally through Baptism by immersion upon personal profession of faith. The church also operates an open membership so that persons seeking membership who have not been baptised in the manner described in the Union’s Declaration of Principle may at the discretion of the Church Members Meeting be accepted for full membership based on their own public profession of repentance towards God and faith in and obedience to Our Lord Jesus Christ. In November 2021 one member was accepted. Church Membership is open to those who:

• accept the Beliefs of the Church;

• meet the Church’s qualification on Baptism;

• commit themselves to serving Christ within the Church and beyond;

• abide by the decisions of the Church Members Meeting;

• acknowledge their responsibilities as Church Members;

• have their membership application accepted by the Church Members Meeting.

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VICTORIA PARK BAPTIST CHURCH TRUSTEE ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2022

A person wishing to become a Church Member applies to the Church Members Meeting. The Church Members Meeting will consider and vote on the application for membership and if accepted the new member will normally be welcomed publicly.

In order to keep the membership list up to date, this is reviewed at least once every three years when the Church Members Meeting resolves to make any appropriate deletions. At any time, however, in exceptional circumstances where the conduct of a Member is considered to be contrary to the Purpose and Beliefs of the Church and/or disruptive to the relationships between Members then the Leaders/Charity Trustees may recommend to a Church Members Meeting that the membership of that person be reviewed. The Church Members may, after considering the facts, terminate the membership of that person. The Church Member is allowed to hear what is said at the Church Members Meeting, to correct any errors of fact and offer any explanation of the circumstances or reasons for their actions before withdrawing from the meeting so that the Church Members Meeting may prayerfully and carefully consider whether they should resolve to remove that person’s name from the list of Members.

Beliefs and Activities

The Church is a member of the Baptist Union of Great Britain (Baptist Union) and the London Baptist Association (the Association) .

As a Member of the Baptist Union the Church subscribes to the Union’s Declaration of Principle:

That our Lord and Saviour Jesus Christ, God manifest in the flesh, is the sole and absolute authority in all matters pertaining to faith and practice, as revealed in the Holy Scriptures, and that each church has liberty, under the guidance of the Holy Spirit, to interpret and administer His laws.

That Christian Baptism is the immersion in water into the name of the Father, the Son and Holy Spirit, of those who have professed repentance towards God and faith in our Lord Jesus Christ who died for our sins according to the Scriptures; was buried, and rose again on the third day.

That it is the duty of every disciple to bear personal witness to the gospel of Jesus Christ, and to take part in the evangelisation of the world.

In fulfilling the purpose of the Church the church engages in a range of activities either on its own or with others that varies from time to time with activities being initiated, expanded, or closed, as appropriate both to its membership and to the community generally. The aim is to tell and be Good News in the community. We will seek do this by being a living community of faith, love and service.

The Activities may include but are not restricted to:

• regular public worship, prayer, Bible study, preaching and teaching;

• baptism, as defined in the Union’s Declaration of Principle;

• the Communion of the Lord’s Supper which shall normally be observed at least once a month;

• evangelism and mission, locally, regionally, nationally and internationally;

• the teaching, encouragement, welcome and inclusion of young people;

• nurture and growth of Christian disciples;

• education and training for Christian and community service;

• giving and encouraging pastoral care;

• supporting and encouraging charitable social action in the United Kingdom and abroad;

• encouraging relationships with and supporting Baptists and other Christians.

The church also promotes and supports the work of the Baptist Union, the Association and BMS World Mission through prayer, through financial contributions. When it is able the Church also supports local Baptist and ecumenical gatherings.

Central to the work and witness of the Church is the provision of regular public services of Christian worship. These services take place each Sunday currently at 10.30 am. There are also occasional services at other times which are advertised on the church’s internal notice boards and website at www.vpbc.org.uk. There is a full children’s programme

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VICTORIA PARK BAPTIST CHURCH TRUSTEE ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2022

during the morning services. The church seeks to be a friendly and welcoming community and anyone is free to attend any of these services.

The Church runs a series of small groups for the growth of faith and discipleship in the homes of some members and in the church building, and further details of these can be obtained from the Trustees on request, or at the Sunday services of worship, the web page or the monthly diary sheet.

The church has read the Charity Commission guidance on public benefit and is satisfied that the activities outlined above and later in this report clearly demonstrate that the charity is providing a benefit to the public. All our activities are open to all members of the public and are not unreasonably restricted by geographical boundaries.

Achievement and Performance Evaluation.

The unexpected COVID-19 pandemic that struck the world affected all aspects of our church activities. The government regulations prohibiting mass gatherings, social distancing and closure of places of worship disrupted every aspect of church life and we had to adapt quickly.

1. As a church our job is to proclaim the good news of Jesus and that was a priority. We moved our Sunday worship services on line from March 2020.

2. As restrictions eased in July 2020, we carried out risks assessment and planned and opened for in person socially distanced gathering for Sunday worship. We still kept the online worship for those in the fellowship who were not ready to return to worshipping in the building.

3. Prayer in many forms both individual and corporate was encouraged, we held a Week of Prayer in the New Year of 2022, and this was done online due to Covid restriction, the participation was very encouraging. .

4. As a church, we are active 52 weeks of every year and growing a responsive faith community. The pandemic and the need to use online method to reach out to our fellowship meant we had to increase our use of social media. The website and other social media have become a 24/7 tool for communication and advertisement of events and programmes. We maintain paper communication for the decreasing number who do not use a smart phone or PC. The challenge of 2022 and beyond is to further improve access to belonging and participation.

5. We have sustained the link between the E123 churches: ourselves, Bethnal Green Mission Church, E1 Community Church and Stepney Salvation Army. During the year the E123 Partnership has successfully brought over and settled a refugee family under the Community Sponsorship of Refugees scheme in East London – extending a welcome to a Syrian Refugee family with Home Office support.

6. In line with our Core Values, we encourage the Centre and other parts of the building to be hired by groups which benefit the health and wellbeing of the local community. They use the premises at reasonable rates, we benefit from the rent and sharing / caring communities are built. This was hit hard during the pandemic as government restrictions banned these activities from running.

The building has undergone a major building work to the roof. Scaffolding erected inside the building, which restricted the use of the building for worship and user groups. Two of the user groups have now returned. Due to the restriction of space in the Hall, one user group is unable return until the work is completed. We lost income first due the Pandemic closing the building, also restricted access.

The work is due for completion at the end of August 2022. We will return to full use of the building.

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VICTORIA PARK BAPTIST CHURCH TRUSTEE ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2022

Continuity: April 2022 and beyond

The Covid 19 pandemic presented a challenge to the trustees as to how to continue to ensure we tell and be Good News. Our social media platform has come to the fore during this period.

The WhatsApp group set up for Church members and friends to keep in in touch during lockdown has been of great benefit for many and has continued now the lockdown is lifted.

• a) Partnerships.

• With our partners in the E123 Welcomes Refugees scheme, we have been involved in helping the refugee family settle in our community.

• We are hosting Box Up Crime a Dagenham based charity working to prevent gang membership. It is run by the leader of East End Church on a Friday evening with volunteers from other churches. We aim to continue to nurture existing stakeholder partnerships including Chisenhale Ladder (Street Party), Crossroads Counselling, Street Pastors and Bow Food bank. We will be open to explore new potential partnerships which advance the purpose of the church in the community.

• Our previous Minister served on the Boards of Crossroads Counselling, Mission Housing and as Governor of Chisenhale Primary School. The Manse is within the Chisenhale Ladder area of Bow West

• b) Transitioning. We need to be “always reforming” to be relevant in our purpose as a charity for public benefit. In the light of the increase in rental and residential purchasing prices locally we recognise that there is a consistent movement out of East London by some and a movement in by others. We therefore of necessity target to recruit and train new volunteers as Trustees for the future and also volunteers in every area of the church’s life and outreach. We are working with London Baptists on plans to recruit a new Minister in the near future. However, this is complicated by the need for accommodation once we have sold our manse to clear the debt for the roof repairs which are soon to be completed.

• c) Giving. We will achieve our mission by being a living community of faith, love and service. Giving is therefore not just about giving money but a willingness to share time, gifts and skills, friendship and resources. Giving is a choice and costly. We will teach and encourage one another to be a generous people and to each share the resources we have. We have set up a new means of giving by adding a “donate button” to our website.

• d) Worship. We will work and pray to see this constantly refreshed with new participants and leaders in all our Church activities. Our hope and prayer is that it will continue to be EPIC: experiential, participatory, image rich and connective. We will encourage the regular use of African drums and personal expression in Sunday worship. We will provide opportunities for the sharing of silence to develop reflective and contemplative worship as well as offering loud praises! Images and creative arts are increasingly a part of our experience in worship. A number people have participated by leading our weekly Prayers for the World. Worship includes the sharing of time and gifts for the benefit of others in our Church family and our communities. We encourage each other to understand that worship is a way of living life to the full for the glory of God.

• e) Social Media. We are planning to develop our Social Media platforms to help the Church achieve our objectives. In addition to the web page, we have Facebook, Twitter and Instagram channels.

• The lockdown, for better or worse, has enforced increased interaction with our social media platforms and church web page. We will continue to review the social media tools we have in place and improve upon them where necessary.

• f) Access

We have continued to address the need to improve access to the church building for those with disabilities, the elderly and young families. City Bridge Trust (CBT) will carry out a feasibility study for access throughout the building once the roof repair has been completed. This will allow us to develop a strategy for how we can fund raise to improve the access to building for many in the community.

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VICTORIA PARK BAPTIST CHURCH TRUSTEE ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2022

Finance

The church, where possible, seeks to ensure all major community projects and events are fully funded without recourse to limited general funds. This is by a mixture of donations, rental fees and grants as appropriate. Our core funding is from regular and dedicated givers in both small and larger amounts. New donors have been added as others have left but economic austerity has left some with little spare to give.

The Income for 2022 was: £109,141 of which £38,400 was from the rental of the Manse property and a further £11,171 from the rental of VPBC space.

Expenditure totalled £243,245 with £203,192 relating to expenditure for the long overdue repairs on the Church roof. The roof repairs are being funded by the generous donations of Church Members to the redevelopment fund and thank offerings alongside long term loans from the London Baptist Property Board

The net deficit amounted to £134,104 before pension fund movements (2021: surplus £48,098). General Reserves at 31st March 2022: £24,569 decreased in the year from £68,064

Loans from London Baptist Property Board have at 31[st] March 2022 stand at £90,000 with £56 interest levied.

Due to Covid 19, the church followed government guidelines and had its last public service on 15[th] March 2020. From this date, the church was closed for 48 weeks which meant no cash collection was received.

The Annual Thank Offering is usually a seven-week internal appeal period running from Easter to Pentecost where people are encouraged to mark their own thanks to God in addition to their normal regular giving.

The Thank Offering 2020 did not take place due to Covid 19. Many people were concerned about employment and businesses and it did not seem appropriate to request more than the normal donations. However, the Thank Offering launched at Easter 2021 has remained open throughout 2021 and into 2022 – the money raised is going towards the cost of replacing the roof.

The Redevelopment Fund is replenished from occasional and regular small donations, particularly through the coin jar scheme. This year we have merged both the Redevelopment Fund and the Thank Offering to assist in paying for the roof replacement.

The Gift Aid scheme continues to be an important part of the voluntary income raising a significant amount of money. This has been further increased by the Gift Aid Small Donations Scheme. The scheme is managed by a volunteer.

The church has a lettings policy for external groups which seeks to encourage local community use and a sliding scale of charges dependent on whether it is a community-based project, funded voluntary group, statutory service or commercially run organisations. Rental income has at times been steady through the year although during Covid, all groups stopped meeting giving cause to concern regarding the lack of rental income. We are aware that this amounts to approximately 25% of the total income of the church.

One group has stopped meeting due to a lack of available space caused by scaffolding installed in the lower hall for the roof. It is hoped this group will return in due course.

From October 2021 to June 2022, we had a Minister in Training based at the church. The cost in the year to 31[st] March 2022 was £6,432. VPBC have given a gift of £50 to each visiting speaker who has preached at Sunday services during the time we have been without a minister, although some have declined this gift.

The Leaders have let the Manse during the period with no minister, the additional income has allowed VPBC to cover losses of Church letting income due to Covid-19 and to grow reserve funds. However, this has been offset by the lack of rental income and cash offerings due to church closure. These funds have now been used to pay for the roof replacement project.

Various gifts and bursaries were made from our Communion Fund. We have taken collections and made outward donations to our core charity Crossroads Counselling of £156. We agreed to hold special gift Sundays, with presentations and offerings collected.

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VICTORIA PARK BAPTIST CHURCH TRUSTEE ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2022

Direct credits have decreased from last year; however cash offerings are much improved as the Church has remained open during much of 2021/22 versus the lockdown closures in 2020/21.

The rental of the Manse has remained a stable source of income.

The accounts have been prepared in accordance with FRS102 and the relevant SORP, this has required us to provide for the Church’s pension liability with the Baptist Pension Scheme. To facilitate this liability, we have revalued the Manse in the 2022 accounts, giving rise to a large revaluation reserve. The Manse is integral to the Church’s Ministry and strategy.

Reserves policy

The Leadership Team recognise the need to establish and record a reserves policy for the charity, to examine the patterns of income and expenditure and to achieve and maintain a reserve level of between £40,000 and £70,000. We note the Charity Commissions guidance on charity reserves and building in resilience. The largest expense is the church building maintenance and improvements including the cost of renting the manse.

The main form of income for this is voluntary giving and more specifically the core of supporters who give on a regular basis. The Trustees consider that the unrestricted funds reserve should include all of a typical year’s costs eg Ministerial Stipend. The general reserve has dropped from £68,064 in 2021 to £24,569, however the Leaders consider this is sufficient as the Church does not currently employ a minister on a full time basis.

Risk Statement

We have drafted a formal Financial Risk Assessment Policy, which has been reviewed in the year and the Leaders' pay attention to the risks noted.

Through the monthly Leaders meetings, the Leaders/Trustees review and recognise risks where they might occur and are exposed to in the activities of a small charity operating with few employees. Each activity, particularly where it is new/ outdoors, is given regular risk assessments. The work with children has detailed risk assessments linked to Child Protection and Safeguarding, DBS checks, Ofsted voluntary registration and adherence to the Baptist Union safeguarding are in place. Other areas of risk include health and safety procedures particularly around food preparation, lone worker policy, buildings, PAT testing and fire safety and procedures are in place to address these. We have adopted the Baptist Union’s documents on the General Data Protection Regulations from May 2018 until we create our own. There were no related party transactions in the year.

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VICTORIA PARK BAPTIST CHURCH TRUSTEE ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2022

Independent Examiner’s Report to the Trustees of Victoria Park Baptist Church

I report to the trustees on my examination of the financial statements of Victoria Park Baptist Church (‘the charity’) for the year ended 31 March 2022 which comprise the Statement of Financial Activities, the Balance Sheet and related notes.

Responsibilities and basis of report

As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (‘the Act’).

I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner's statement

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

• accounting records were not kept in respect of the charity as required by section 130 of the Act; or

• the financial statements do not accord with those records; or

• the financial statements do not comply with the applicable requirements concerning the form and content of accounts

set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached. Shruti Soni FCCA FCIE Date: 20 December 2022

Shruti Soni Ltd Chartered Certified Accountants 117A St Johns Road Sevenoaks TN13 3PE

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STATEMENT OF FINANCIAL ACTIVITIES AND INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2022

Note Unrestricted funds Restricted funds Endowment funds Total funds 2022 £ £ £ £ Income from: Donations and legacies 2 58,785 335 - 59,120 Charitable Activities 3 Church events 182 - - 182 Rental income and fees 49,571 - - 49,571 Other trading activities 187 - - 187 Investment income 4 81 - - 81 Other Total income 108,806 335 - 109,141 Expenditure on: Charitable activities 5 242,784 461 - 243,245 Total expenditure 242,784 461 - 243,245 Net income/(expenditure) before transfers (133,978) (126) - (134,104) Transfers between funds 15 90,000 - (90,000) - recognised gains and losses (43,978) (126) (90,000) (134,104) Gain on revaluation of fixed asset 660,000 - - 660,000 benefit pension schemes 19 3,527 - - 3,527 Interest cost on DB pension scheme (327) - - (327) Net movement in funds 619,222 (126) (90,000) 529,096 Reconciliation of funds: Total funds brought forward 822,464 1,363 - 823,827 Total funds carried forward 1,441,686 1,237 (90,000) 1,352,923 Actuarial gains on defined Net income / (expenditure) before other	Unrestricted funds Restricted funds Endowment funds Total funds 2021
	£ 33,057 651 - 33,708 4,462 - - 4,462 40,362 - - 40,362 - - - - 16 - - 16
	77,897 651 - 78,548
	29,356 1,094 - 30,450
	29,356 1,094 - 30,450
	48,541 (443) - 48,098 (5,783) 253 5,530 -
	42,758 (190) 5,530 48,098 - - - 11,745 - - 11,745 (893) - - (893)
	53,610 (190) 5,530 58,950 768,854 1,553 (5,530) 764,877
	822,464 1,363 - 823,827

All of the above are derived from continuing activities. There were no other recognised gains or losses other than those stated above.

The notes on the following pages form part of these accounts.

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	Note	2A22		2027
		f	f	e	f
Ffred6ssts
Tangibleassets	o		1,420,643		76L348
Toulfirdase6			1,420,643		76L,3a8
curreEtass€ts
Debtors	I	72,534		3,279
Cashat bank and inhand	10	31,633		84,087
Fotr,c.rr"Ertosseb		44,167		87366
&editons:amountsfallingdu€
rrithinoneyear	11	(11,487i		{s,247}
llretcurreatossex/$iabilkies.l			3?"680		82,779
Totalassets lesscurrentliabilities			L,453,323		&42427
Creditors: arnaunts fallingdue
aftermore than oneyear	a2				{3,530)
Netassetsexcludingpensionassetl{liability}			1.369,323		843,427
Deflnedbenefitpensionschemeassetr'(liability)	18		i16,4OS)		{3"9-6trl
Iotnloet ossets/(tiabilities)	15		1,352,S23		823,827
Thefundrofthectarity:
Endourrnentfund			t90,0oo)
Eestrictedfunds			1,ffi8		1,134
{.lnrestricted funds:
Designated		23,746		24,229
Revaluation reserye		1,410,offi		750,Afi0
Fension reserve	19	{16,40O}		{B,60A}
Generalfund		?4s59		68,A64
TotaIu*restrictedfunds			1,441,915		822,653
Totatclwrityfurds	14		1,352,523		823,827

VICTORIA PARK BAPTIST CHURCH

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022

1 Accounting policies

The principal accounting policies are summarised below. The accounting policies have been applied consistently throughout the year and in the preceding year.

(i) Basis of accounting

The accounts (financial statements) have been prepared in accordance with the Church Accounting regulations 2006 together with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) 1 January 2019, and the Charities Act 2011 and UK Generally Accepted Practice. The accounts (financial statements) have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note. The functional currency of the Church is sterling.

The financial statements have been prepared under the historical cost convention, except for the valuation of investment assets, which are shown at market value.

(ii) Public benefit entity

The charity meets the definition of a public entity under FRS 102.

(iii) Going concern

The trustees consider that there are no material circumstances about the charity's ability to continue as a going concern. Large projects are only undertaken when the funding is certain.

The trustees consider the general reserve of £24569 at the year end to be sufficient, along with estimated income in the following year, to continue operating.

The charity is carrying a significant Pension liability. The Baptist Pension Scheme is employing measures to mitigate the deficit across the whole fund as a "family solution" over the next 2 decades. The trustees have taken advice from the Pension Scheme regarding the management of the deficit beyond the retirement of the Minister and are making deficit contribution payments as advised.

The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material to the carrying amounts of assets and liabilities within the next reporting period.

14

VICTORIA PARK BAPTIST CHURCH

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022

Accounting policies - continued

(iv) Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.

Income from government and other grants, whether 'capital' grants or 'revenue' grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

(v) Donations of gifts, services and facilities

Donated professional services and donated facilities are recognised as income when the charity has control over the item or received the service, any conditions associated with the donation have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), volunteer time is not recognised so refer to the trustees’ annual report for more information about their contribution.

Other income and income from trading activities

Rental income from the letting of church premises and the church Manse property is recognised when the rental is due.

(vi) Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

(vii) Fund accounting

Unrestricted Funds are donations and other incoming resources received or generated for the charitable purposes.

Designated funds are unrestricted funds earmarked by the trustees for particular purposes. Restricted funds are are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund.

The financial statements include all transactions, assets and liabilities for which the Church is responsible in law. They do not include the financial statements of church groups that owe their main affiliation to another body, nor those that are informal gatherings of church members.

(viii) Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

• Costs of raising funds relate to the costs incurred by the charity in inducing third parties to make voluntary

• contributions to it, as well as the cost of any activities with a fundraising purpose.

15

VICTORIA PARK BAPTIST CHURCH

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022

Accounting policies - continued

• Expenditure on charitable activities includes the costs of delivering services and other activities undertaken to further the purposes of the charity and their associated support costs

• Grants payable are accounted for when due.

• Other expenditure represents those items not falling into any other heading.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

(ix) Allocation of support and governance costs

Support and governance costs are allocated to unrestricted funds.

• Governance costs are the costs associated with the governance arrangements of the charity. These costs are associated with constitutional and statutory requirements and include any costs associated with the strategic management of the charity's activities.

(x) Fixed assets and depreciation:

Fixed assets acquired for use by the charity are capitalised and depreciated over their estimated useful life to their estimated residual value, unless they cost less than £1,000 when they are written off on purchase.

Depreciation periods are as follows:

Freehold land

Freehold land Not depreciated but valued at NIL since originally purchased in the 19th century. Freehold buildings Over 50 years, and hence the church property is fully depreciated since it is over 50 years old. The Manse has previously been depreciated at 2% on estimated cost over its estimated useful life of 50 years and is fully depreciated on that original basis at Mar 2017. Since 2016 the Trustees have had a policy of revaluing the property every 5 years. The Trustees feel that an online search of like local properties is sufficient for revaluation purposes.

The current valuation was carried out in 2022. The property valuation cannot be realised by the Church, only by the London Baptist Property Board.

No depreciation is provided as the estimated residual value is not materially different from the carrying value and its estimated useful life is so long to result in depreciation being immaterial. Refurbishment The ceiling refurbishment is depreciated at 2% on cost over its estimated useful life of 50 years. Equipment Between 3 and 7 years for items costing over £1000

(xi) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

16

VICTORIA PARK BAPTIST CHURCH

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022

Accounting policies - continued

(xii) Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. Cash balances exclude any funds held on behalf of service users.

(xiii) Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

(xiv) Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

(xv) Pension costs:

The charity is part of the Baptist Union Pension Scheme for certain of its employees. Pension premiums are paid to this defined contribution scheme to fulfil the local church's responsibilities and charged to expenditure as they fall due.

2 Income from donations and legacies Unrestricted Restricted 2022 2021 £ £ £ £ General donations and grants 21,490 - 21,490 25,778 Tax recoverable 10,203 - 10,203 6,589 Thank offerings 27,092 - 27,092 1,327 Other donations and grants - 335 335 14 58,785 335 59,120 33,708 Income from donations and legacies - prior year comparative 2021 General donations and grants 25,778 - 25,778 Action 4 Bow - - 0 Tax recoverable 6,589 - 6,589 Thank offerings 690 637 1,327 Other donations and grants - 14 14 33,057 651 33,708	Unrestricted Restricted 2022 2021	Unrestricted Restricted 2022 2021
	£ £ £ £ 21,490 - 21,490 25,778 10,203 - 10,203 6,589 27,092 - 27,092 1,327 - 335 335 14
	58,785 335 59,120 33,708
		2021 25,778 0 6,589 1,327 14 33,708
	33,057 651

17

VICTORIA PARK BAPTIST CHURCH

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022

3 Charitable activities Advancement of religion and education Church events Rental income and fees Church Rental income Manse Other trading activities Charitable activities - prior year comparative Church events Rental income and fees Rental income Manse Other trading activities 4 Investment income Bank interest Investment income - prior year comparative Bank interest 5(a) Direct Charitable Costs Employee costs 7 Volunteer costs Church activity Church events and projects Church property Church roof Manse property Depreciation 8 Grants payable 5 c (b) Administration and governance Administrative costs Independent examination fee Combined charitable activity cost	Unrestricted Restricted	2022 2021
	£ £ 182 - 11,171 - 38,400 - 187 -	£ £ 182 4,462 11,171 3,631 38,400 36,731 187.00 -
	49,940 -	49,940 44,824
	4,462 - 3,631 36,731 - - -	2021 4,462 3,631 36,731 - 44,824 2022 2021
	44,824 -
	Unrestricted Restricted
	£ £ 81 -	£ £ 81 16
	16 -
	£ £ £ £ 12,589 - 12,589 4,761 - - - - 1,896 - 1,896 2,217 - - - 14,091 - 14,091 12,867 203,192 203,192 - 5,639 - 5,639 3,871 665 - 665 1,216 - 461 461 971
	238,072 461 238,533 25,903
	Unrestricted Restricted 2022 2021
	£ £ £ £ 3,164 - 3,164 3,047 1,548 - 1,548 1,500
	4,712 - 4,712 4,547
	242,784 461 243,245 30,450

18

VICTORIA PARK BAPTIST CHURCH

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022

		**Institutions **	Individuals	2022		2021
(c) Grants		£	£	£	£
Missionary support				-		394
Relief of poverty			305	305		577
Other grants		156		156		-
		156	305	461		971
The church supports missionaries in the UK and internationally. Where a particular				missionary has
been supported by the church for a number of years, strict compliance with the Charities' Statement
of Recommended Practice (SORP) may regard some arrangements as constituting constructive
obliations such that future years' support is accounted for in these accounts as a liability. Whilst the
support has no final end date in some cases, the church officers assess missionary funding on an
annual basis and are confident that the missionaries would not view their support as open ended
obligations by the Church.
The main features of the grants made were to:				2022		2021
	Baptist Home Mission			£0		£394
	Baptist World Mission			£0		£0
	Crossroads CCS			£156		£0
(a) Direct Charitable Costs - prior year comparative		Unrestricted	Restricted	2021
		£	£	£
Employee costs	7	4,761	-	4,761
Volunteer costs		-	-	-
Church activity		2,094	123	2,217
Church events and projects				-
Church property		12,867	-	12,867
Manse property		3,871	-	3,871
Depreciation	8	1,216	-	1,216
Minor equipment and repairs		-	-	-
Electrical works		-		-
Grants payable	5 c	-	971	971
		24,809	1,094	25,903
(b) Administration and governance		Unrestricted	Restricted	2021
		£	£	£
Administrative costs		3,047	-	3,047
Independence examination fee		1,500	-	1,500
		4,547	-	4,547
Combined charitable activity cost		29,356	1,094	30,450
		Institutions	Individuals	2021
(c) Grants		£	£	£
Missionary support		394	-	394
Relief of poverty		-	577	577
Other grants		-	-	-
		394	577	971

19

VICTORIA PARK BAPTIST CHURCH

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022

6 Net income/(expenditure) for the year This is stated after charging/(crediting) Depreciation Interest payable Independent examiners' fee 7 Staff and trustees Staff costs were as follows: Salaries and wages (includes casual workers) Other employment costs Employer deficiancy contributions to defined benefit scheme Employer contributions to defined contribution pension scheme Total	2022 2021 £ £ 665 1,216 56 214 1,548 1,500
	2,269 2,930
	2022 2021 £ £ 8,248 2,021 326 - 3,709 2,740 306 -
	12,589 4,761

The charity has 0.5 full time equivalent employed staff (2021:0).

No staff received salaries at a rate of more than £60,000 per annum (2021: nil)

The Minister retired during 2020 a minister in training is currently in post working half time, half the full stipend was paid £6,126 (2021: nil) and pension contributions were made of £306 (2021: nil).

The Trustees are the Key Management Personnel.

No remuneration or reimbursement of expenses were paid to any other trustee during the year nor to any person connected to them.

20

VICTORIA PARK BAPTIST CHURCH

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022

8 Tangible fixed assets Cost At 1 April 2021 Additions At 31 March 2022 Accumulated Depreciation At 1 April 2021 Charge for the year At 31 March 2022 Net book value At 31 March 2022 At 31 March 2021	Building Equipment Total refurbishment & fittings Manse 2022 £ £ £ £ 13,647 24,178 754,000 791,825 - - 660,000 660,000
	13,647 24,178 1,414,000 1,451,825
	2,731 23,786 4,000 30,517 273 392 - 665
	3,004 24,178 4,000 31,182
	10,643 - 1,410,000 1,420,643
	10,916 392 750,000 761,308

Freehold land - church Valued at NIL since originally purchased in the 19th century.

Freehold buildings - church The church property is fully depreciated since it is over 50 years old.

Freehold buildings - Manse The Manse was valued at estimated original cost in 1967 of £4,000.

In 2022 the building was revalued using average value from an online valuation tool, valuing the property at c£1,410,000. The Manse cannot be sold without the purchase of equivalent accomodation.

The properties are believed to be held as endowment property (see notes 14&15). The endowment fund matches to loans raised against the properties to carry out refurbishment works.

9 Debtors and prepayments

9 Debtors and prepayments Sundry debtors Tax recoverable Prepayments 10 Cash at bank and in hand Bank operating accounts Bank deposits	2022 2021 £ £ 1,163 86 10,217 3,133 1,154 60
	12,534 3,279
	2022 2021 £ £ 15,575 78,110 16,058 5,977
	31,633 84,087

21

VICTORIA PARK BAPTIST CHURCH

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2022

11 Creditors: liabilities falling due within one year

11 Creditors: liabilities falling due within one year Sundry creditors Payroll taxes Baptist Union long term loan Accruals 12 Creditors: liabilities falling due after one year Baptist Union long term loan Due after one year Total balance due	2022 2021 £ £ 2,932 2,774 27 - 6,056 - 2,472 2,473
	11,487 5,247
	2022 2021 £ £ 84,000 -
	84,000 -

The Church took out a loan of £60,000 for the purpose of replacing the Church roof. This loan is interest free & repayable over 10 years in quarterly installments.

The Church took out a further drawdown loan of £500,000 also for the purpose of replacing the Church roof. During the year the Church drew down £30,000 of this £500,000 loan. The loan will carry interest at the LBPB's variable rate as shown on the LBA website https://www.londonbaptist.org.uk/property-board. The interest is payable quarterly. The capital is to be repaid within 2 years. The LBPB, as Church trustee, is authorised to sell, mortgage or charge all or any part of the Church's properties in order to raise or secure such principal sum and interest as may be outstanding.

13 Pension schemes

The Church is an employer participating in a pension scheme known as the Baptist Pension Scheme ("the Scheme"). See below note 19 for the pensions disclosure note in full.

22

VICTORIA PARK BAPTIST CHURCH

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022

14 Movements in funds

Endowment fund Restricted funds Good Start Breakfast Club Other restricted funds Communion Fund Outreach Total restricted funds Unrestricted funds Designated funds Long term funds Redevelopment fund Capital values fund Short term funds Church events Total designated funds Pension reserve Revaluation reserve General reserves Total unrestricted funds Total funds	At 1 April 2021 £ - - 846 288 -	Incoming resources £ - - 233 102 -	Outgoing resources £ - - (156) (305) -	At 31 March Transfers 2022 £ £ (90,000) (90,000) - - 923 85 - -
	1,134	335	(461)	- 1,008
	12,696 11,308	182	- (665)	- 12,878 10,643
	24,004	182	(665)	- 23,521
	225	-	-	- 225
	24,229	182	(665)	- 23,746
	(19,600) 750,000 68,064	- 660,000 108,624	3,200 - (242,119)	- (16,400) - 1,410,000 90,000 24,569
	822,693	768,806	(239,584)	90,000 1,441,915
	823,827	769,141	(240,045)	- 1,352,923

Purpose of endowment funds

When the Church borrows money from London Baptish Property Board to carry out essential repairs and refurbishment to the church, an amount equivalent to the loan is transferred to an endowment fund which is reduced each year by an amount equivalent to the amount of loan repaid.

Under the terms of the original endowment, it is believed that the proceeds of sale of the assets, should this occur, could only be used for equivalent capital purchases such as the repayment of property loans or the purchase of new buildings.

23

VICTORIA PARK BAPTIST CHURCH

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2022

14 Movements in funds - continued

Purpose of designated funds

The Redevelopment Fund is an unrestricted fund designated by the trustees to allow for future expenditure on improvement, refurbishment or redevelopment of the church property.

Capital Values Fund represents the accounting value of refurbishment works for the endowment property (the Church building and Manse).

The revaluation reserve reflects the average market value of the Manse property in July 2022.

The Pension reserve is to reflect the DB Pension liability required under FRS102.

Any Gift Aid recoverable on unrestricted income is itself unrestricted and these have been allocated to general funds within the general Gift Aid tax receivable in note 2.

Purpose of restricted funds

The restricted funds represent amounts received for specific purposes.

Transfers represent amounts moved to and from general reserve to fund specific activities per the terms of the funds.

24

VICTORIA PARK BAPTIST CHURCH

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022

Movements in funds - prior year Endowment fund Restricted funds Good Start Breakfast Club Other restricted funds Communion Fund Outreach Total restricted funds Unrestricted funds Designated funds Long term funds Redevelopment fund Capital values fund Short term funds Church events Total designated funds Pension reserve Revaluation reserve General reserves Total unrestricted funds Total funds	At 1 April 2020 £ (5,530)	Incoming resources £ -	Outgoing resources £ -	At 31 March Transfers 2021 £ £ 5,530 -
	0 738 586 -	- 622 29 -	- (644) (327) (123)	- 130 846 288 123 -
	1,324	651	(1,094)	253 1,134
	8,234 12,524	4,462	-1,216	12,696 11,308
	20,758	4,462	-1,216	- 24,004
	157	-	40	28 225
	20,915	4,462	-1,176	28 24,229
	(30,452) 750,000 28,620	- - 73,435	10,852 - (28,180)	- (19,600) - 750,000 (5,811) 68,064
	769,083	77,897	(18,504)	(5,783) 822,693
	764,877	78,548	(19,598)	- 823,827

25

VICTORIA PARK BAPTIST CHURCH

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2022

15 Analysis of net assets between funds at 31 March 2022

The assets and liabilities represented by the various funds are as follows:

Restricted funds Church funds Good Start Breakfast Club Endowment funds Unrestricted funds Designated funds Pension reserve Revaluation reserve General funds Total funds	Fixed Bank and Other net Long-term Total assets cash assets liabilities £ £ £ £ £ - 1,008 - - 1,008 - - - - -
	- 1,008 - - 1,008
	- - - (83,944) (83,944) 10,643 13,103 - - 23,746 - - - (16,400) (16,400) 1,410,000 - - - 1,410,000 - 17,522 1,047 - 18,569
	1,420,643 30,625 1,047 (100,344) 1,351,971
	1,420,643 31,633 1,047 (100,400) 1,352,923

Analysis of net assets between funds - prior year 31 March 2021

The assets and liabilities represented by the various funds are as follows:

Restricted funds Church funds Good Start Breakfast Club Endowment funds Unrestricted funds Designated funds Pension reserve Revaluation reserve General funds Total funds	Fixed Bank and Other net Long-term Total assets cash assets liabilities £ £ £ £ £ - 1,134 - - 1,134 - - - - -
	- 1,134 - - 1,134
	- - - - - - 11,308 12,921 - - 24,229 - - - (19,600) (19,600) 750,000 - - - 750,000 - 70,032 (1,968) - 68,064
	761,308 82,953 (1,968) (19,600) 822,693
	761,308 84,087 (1,968) (19,600) 823,827

16 Related party transactions

There are no related party transactions for 2022 (2021: none)

In the year an aggregate of £24,300 was donated to the Church by Trustees, (2021 £13,660).

17 Taxation

The charity is exempt from corporation tax as all of its income is charitable and is applied for charitable purposes.

18 Contingent Asset

Helen Cammish left a legacy to VPBC to be fulfilled when the property she jointly owned is sold. This is noted as a contingent asset in VPBC accounts, but as the legacy will not be received until an undetermined time in the future, it cannot be quantified.

26

VICTORIA PARK BAPTIST CHURCH

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022

19 FRS102 pensions disclosure

Background to the disclosure

The Church is an employer participating in a pension scheme known as the Baptist Pension Scheme (“the Scheme”), which is administered by the Pension Trustee (Baptist Pension Trust Limited). The Scheme is a separate legal entity and the assets of the Scheme are held separately from those of the Employer and the other participating employers.

For any month, each participating employer in the Scheme pays contributions as set out in the Schedule of Contributions in force at that time.

The Scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. This is because it is not possible to attribute the Scheme’s assets and liabilities to specific employers and means that contributions are accounted for as if the Scheme were a defined contribution scheme. The pensions costs charged to the SoFA in the year are contributions payable towards benefits and expenses accrued in that year, plus any impact of deficiency contributions (see below).

The Minister(s) is eligible to join the Scheme.

From January 2012, pension provision is being made through the Defined Contribution (DC) Plan within the Scheme. In general, members pay 8% of their Pensionable Income and employers pay 6% of members’ Pensionable Income into individual pension accounts, which are operated and managed on behalf of the Pension Trustee by Legal and General Life Assurance Society Limited. In addition, the employer pays a further 4% of Pensionable Income to cover Death in Service Benefits, administration costs, and an associated insurance policy which provides income protection for Scheme members in the event that they are unable to work due to longterm incapacity. This income protection policy has been insured by the Baptist Union of Great Britain with Unum Limited. The further 4% contribution rate is reduced to 3% for Employer contributions made to the Segregated DC Arrangement.

Benefits in respect of service prior to 1 January 2012 are provided through the Defined Benefit (DB) Plan within the Scheme. The main benefits for pre-2012 service were a defined benefit pension of one eightieth of Final Minimum Pensionable Income for each year of Pensionable Service, together with additional pension in respect of premiums paid on Pensionable Income in excess of Minimum Pensionable Income. The Scheme, previously known as the Baptist Ministers’ Pension Fund, started in 1925, but was closed to future accrual of defined benefits on 31 December 2011.

Actuarial valuation as at 31 December 2019

A formal valuation of the Defined Benefit (DB) Plan was performed at 31 December 2019 by a professionally qualified Actuary using the Projected Unit Method. The market value of the DB Plan assets at the valuation date was £298 million.

The valuation of the DB Plan revealed a deficit of assets compared with the value of liabilities of £18 million (equivalent to a past service funding level of 94%). The Church and the other employers supporting the DB PLan are collectively responsible for funding this deficit.

27

VICTORIA PARK BAPTIST CHURCH

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2022

The actuarial valuation of the DB Plan within the Scheme is due to take place not later than as at 31 December 2022.

Assumptions

4.95% Annual future increase in Pensionable income 3.18% Assumption for annual increase in Pensionable income used for prior year 3.29% Assumption for annual increase in Pensionable income for 2 years prior 3.02% Discount Rate at financial year end date 1.84% Discount Rate assumption used in accounts for prior year 3.06% Discount Rate assumption used in accounts for 2 years prior

Recovery Plan

In addition to the contributions to the DC Plan set out above, where a valuation of the DB Plan reveales a deficit the Trustee and the Council agree to a rate of deficiency contributions from churches and other employers involved in the DB Plan.

Under the current Recovery Plan dated 16 December 2020, deficiency contributions are payable until 30 June 2026. These contributions are broadly based on the employer's membership at 31 December 2014 and increase annually in line with increases to Minimum Pensionable Income as defined in the Rules. However, the Trustees and the Council agreed a 50% reduction for all deficiency contributions payable between 1 July 2020 and 31 December 2020.

Movement in Balance Sheet liability

Section 28.11A of FRS 102 requires agreed deficit recovery payments to be recognised as a liability. The movement in the provision is set out in the table below.

Accounting date (year ending):		31 March 2022		31 March 2021
Balance sheet liability at year start		£19,600		£30,452
Minus deficiency contributions paid		-£3,709		-£2,740
Interest cost (recognised in SoFA)		£327		£893
Remaining change to balance sheet liability* (recognised in SoFA)		£182		-£9,005
Balance sheet liability at year end		£16,400		£19,600

• Comprises any change in agreed deficit recovery plan and change in assumptions between year-ends.

This liability represents the present value of the deficit contributions agreed as at the accounting date and has been valued using the following assumptions set by reference to the duration of the deficit recovery payments:

Accounting date 30 March 2022 31 March 2021 31 March 2020	Accounting date 30 March 2022 31 March 2021 31 March 2020	Accounting date 30 March 2022 31 March 2021 31 March 2020	Accounting date 30 March 2022 31 March 2021 31 March 2020
Discount rate Future increases to Minimum Pensionable Income	3.0% 4.9%	1.8% 3.2%	3.1% 3.3%

28