2023-03-31-accounts

VICTORIA PARK BAPTIST CHURCH

CHARITY NUMBER 1146557

REPORT AND ACCOUNTS

for the year ended 31 March 202 3

Shruti Soni Limited

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

Contents

	Page
Reference and administrative	1
Trustees' report	2 - 10
Independent examiner’s report	11
Statement of financial activities	12
Balance sheet	13
Notes to the accounts	14-28

VICTORIA PARK BAPTIST CHURCH.

FOR THE YEAR ENDED 31 MARCH 2023

Trustees/Leadership Team

Pauline Facey NVQ Business Studies Elisabeth Morris RGN. RM. DN John Morris BA Dip HE Hilary A Papworth (Treasurer) BEd NPQH (left 5/12/22) Olatokunbo Atanda LLB (Hons) Post grad Diploma in Legal Practice. Solicitor Advocate Becky Gbande BSc. DipEd. MA. PGCE Adilson Braz

Elections are held every November for leaders whose 3-year term has expired. Hilary Papworth moved away in December 2022 and therefore left the Leadership Team. This vacancy was filled by the elections of Anne Broad, Neville Reid and Bolaji Yoloye in November 2023.

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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The Trustees have pleasure in submitting the Report and Accounts for the year to 31 March 2023

How Victoria Park Baptist Church is constituted and its charitable objectives

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 charit y’ s 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 principal 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 may be 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 its 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.

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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 in accordance 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.

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 appoints 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 s 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.

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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 Church Members ’ Meeting. A special church members ’ meeting was held on 05/12/21 to agree to applying for a loan from the 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.

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 .

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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, and 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 external notice boards and website at www.vpbc.org.uk . There is a full children’s programme 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

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benefit to the public. All our activities are open to all members of the public and are not unreasonably restricted by geographical boundaries.

Achievements and Performance Evaluation

1. As a church our job is to proclaim the good news of Jesus and that has been a priority. We had major disruptions as a result of work on our building to replace the roof which started in August 2021 and was not completed until September 2022. We were still able to meet together in the basement space. On completion of the work, we were able to move back to use all areas of our church building.

2. Prayer in many forms both individual and corporate was encouraged; we held a Week of Prayer in the New Year of 2023. This was done online and face to face at the church building, including a prayer walk, and participation was very encouraging.

3. 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 methods 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 2024 and beyond is to further improve access to belonging and participation.

4. 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. The building has undergone a major building work to the roof, which restricted the use of the building for worship and user groups. The user groups have now returned, but some for less hire time as the cost of living hits their clients.

Continuity: April 2023 and beyond

With a brand new roof on our building, the trustees have reflected on how we can best continue to ensure we tell and be Good News in our community.

a) Partnerships.

With our partners in the E123 Welcomes Refugees scheme, we have been involved in helping a 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.

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. London Baptists have negotiated with Paul Unsworth of Kahaila Café Church who is working with VPBC towards this goal.

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• 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. We will also encourage giving through our Thank Offering Initiative.

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 of people have participated by leading our monthly 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) funds have allowed us to pay for a feasibility study for access throughout the building. This has been done and the report is now with the Trustees who will now seek to implement suggestions raised by the report. This will involve 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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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 2023 was £103,121, of which £38,400 was from the rental of the Manse property and a further £10,626 from the rental of VPBC spaces.

Expenditure totalled £341,888 with £293,624 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 Redevelopment Fund was utilised in full and closed in the year. The net deficit amounted to £238,767 before pension fund movements. General Reserves at 31st March 2023: £3,418 deficit, decreased in the year from positive funds of £24,569.

Loans from London Baptist Property Board and the London Baptist Association as at 31[st] March 2023 stand at £288,000, with £9,890 interest levied in the year.

The Annual Thank Offering was historically a seven-week internal appeal period running from Easter to Pentecost when people are encouraged to mark their own thanks to God, in addition to their normal regular giving. No Thank Offering took place in 2020 due to the Covid 19 pandemic. However, the Thank Offering launched at Easter 2021 remained open until March 2022, and this pattern was followed in 2022/23. The Thank Offering incorporates the former Redevelopment Fund, and funds raised were applied towards the cost of replacing the roof.

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 organisation. Before Covid-19, this provided approximately 25% of the total income of the church, but all groups stopped meeting during the pandemic. Most of them have since returned, but church rental income is about half what it used to be.

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 2023 was £3,312. VPBC has 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 since the former minister ’s retirement , and the additional stable income of £38,400 per annum has helped to cover the losses of cash offerings and Church letting income due to Covid-19. The available surplus was put towards the roof replacement project.

Various gifts and bursaries were made from our Communion Fund. We made outward donations to BMS World Mission of £204 and our core charity Crossroads Counselling of £90, collected on special gift days.

Regular freewill offerings via direct credits were about the same as the previous year, while cash offerings were about £2,000 higher, since the Church was open through the whole of 2022/23. However, other donations and thank-offerings were about £7,000 lower, which may reflect the pressures of the cost-of-living crisis.

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Reserves policy

The Trustees have reviewed the reserves policy for the charity, noting the Charity Commission ’ s guidance on charity reserves and building in resilience. A lower level of reserves is considered sufficient while the Church does not employ a minister, and holding high cash balances would result in paying unnecessary loan interest. The current target level of cash reserves has therefore been reduced to £16,000, after allowing for payment of creditors when they fall due. This is intended to provide a buffer for three months’ operating costs in addition to the balance on restricted funds. The largest operating expenses are the running costs of the church building.

The main form of income for this is voluntary giving and more specifically the core of supporters who give on a regular basis. The general reserve on the balance sheet has dropped from £24,569 in 2022 to a deficit of £3,418. However the Trustees consider that the overall position is sufficient as (i) cash flow is more important than the net balance reported under accruals accounting, (ii) the year-end cash balances of £43,691 are sufficient to pay the creditors as they fall due, and (iii) monthly income regularly exceeds running costs, so that reserves are being replenished at a viable rate.

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 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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Statement of Trustee5' Responsibilltles The Diaconate who are also the Charity Trustees are responsible for preparing financial statements irt atcordance with applicable law and United Kingdom Actounting Standards (United Kingdom Generally Accepted Acco(Intin8 Practicel. The law applicable to charities in England & Wale5 requires the trustees to prepare financial statements for each financial year which 8ive 3 true and fair view of the State of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustee% arè required to.. al select suitable accounting policies and apply them consistently- bl observe the methods and principles in the Charities SORP,. cl make judgments and estimates that are reasonable and prudent.. dl state whether applicable accounting standard5 have been followed, subjett to any material departures disclosed and explained in the financial statements. el prepare thè fin3ncial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position ol the charity and enable them to ensure that the financial Statements comply with the Charities Act 2011, the Charity IAccounts and Reports) ReÉulations 2008 and the provision5 of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. This report was approved by the Diaconate on L g kn Z4¥ and signed on Its behalf. Trustee= Becky Gbande

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 2023 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: 30/01/2024

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 2023

Note Unrestricted funds Restricted funds Endowment funds Total funds 2023 £ £ £ £ Income from: Donations and legacies 2 52,345 1,205 - 53,550 Charitable Activities 3 Church events - - - - Rental income and fees 49,026 - - 49,026 Other trading activities 429 - - 429 Investment income 4 116 - - 116 Other Total income 101,916 1,205 - 103,121 Expenditure on: Charitable activities 5 341,244 644 - 341,888 Total expenditure 341,244 644 - 341,888 Net income/(expenditure) before transfers (239,328) 561 - (238,767) Transfers between funds 15 198,189 (189) (198,000) - recognised gains and losses (41,139) 372 (198,000) (238,767) Gain on revaluation of fixed asset - - - - benefit pension schemes 19 16,884 - - 16,884 Interest cost on DB pension scheme (484) - - (484) Net movement in funds (24,739) 372 (198,000) (222,367) Reconciliation of funds: Total funds brought forward 1,441,686 1,237 (90,000) 1,352,923 Total funds carried forward 1,416,947 1,609 (288,000) 1,130,556 Actuarial gains on defined Net income / (expenditure) before other	Unrestricted funds Restricted funds Endowment funds Total funds 2022
	£ 58,785 335 - 59,120 182 - - 182 49,571 - - 49,571 187 - - 187 81 - - 81
	108,806 335 - 109,141
	242,784 461 - 243,245
	242,784 461 - 243,245
	(133,978) (126) - (134,104) 90,000 - (90,000) -
	(43,978) (126) (90,000) (134,104) 660,000 - - 660,000 3,527 - - 3,527 (327) - - (327)
	619,222 (126) (90,000) 529,096 822,464 1,363 - 823,827
	1,441,686 1,237 (90,000) 1,352,923

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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vI￿oRIA PARK BAPTIST CHURCH BALANCE SHEET AS AT MARCH 2023 Note 2023 2022 Fixed a55et5 Tangible asset5 Totolfixed ossets 1,420,370 1,420,370 1.420,643 1,430,643 Current assets Debtors Cash at bafik and in hand rL¥tol current ossets 6,007 43,691 49,698 12.534 31,633 44,167 io Credltors: amounts falling due within one year li 157,5121 (11,487} riet ctsrrent 055ets/fliobilitiesJ 17,8141 32,680 Total assets les5 current liabilities 1,412,556 1.453,323 Creditors.. amount5 falling due after more than one year 12 1282,0001 {84.OOOJ Net assets excludin8 penslon asset/lliabllltyl 1.130.556 1,369,323 Defined benef1t pension scheme asset/lliabilityl 18 116,4QOJ Total net ossets/(Ilobiltities} 15 1,130,556 1.352,923 The funds of the charity.. Endowment fund Restricted funds 1288.0001 1,379 190,0001 1.008 Unrestricted funds.. Designated Revaluation reserve Pension reserve General fund Total unrestricted funds 10,595 1.410,000 23.746 1,410,000 116,400) 24,569 19 13,4181 1,417,177 1,441,915 Total churityfvnds 14 1,130,556 1,352.923 These financial ststements were approved by the Diaconate ILeader5hip Tearnl on 28 January 2024 and signed on its behalf by.. Secretary: Becky Gbande eville Reid

VICTORIA PARK BAPTIST CHURCH

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

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 doubts 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 £-3418 at the year end to be sufficient, along with estimated income in the following year, to continue operating.

Options for repaying the building loan include converting it to a long-term loan, which the church could afford to repay over several years; or selling the church’s large manse, and purchasing a smaller property with the remaining proceeds of sale.

The charity is no longer carrying a significant Pension liability. The Baptist Pension Scheme has employed measures to mitigate the deficit across the whole fund as a "family solution" . 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.

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VICTORIA PARK BAPTIST CHURCH

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

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.

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 unrestricted income unless the donor or the terms of the appeal have specified otherwise.

For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the charity that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is a treated as a contingent asset and disclosed if material.

(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.

15

VICTORIA PARK BAPTIST CHURCH

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

Accounting policies - continued

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.

• 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 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 2012 kitchen 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

16

VICTORIA PARK BAPTIST CHURCH

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

Accounting policies - continued

(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.

(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 £ £ General donations and grants 30,404 - Tax recoverable 9,030 - Thank offerings 12,911 - Other donations and grants - 1,205 52,345 1,205 Income from donations and legacies - prior year comparative General donations and grants 21,490 - Tax recoverable 10,203 - Thank offerings 27,092 - Other donations and grants - 335 58,785 335	Unrestricted Restricted	2023 2022
	£ £ 30,404 - 9,030 - 12,911 - - 1,205	£ £ 30,404 21,490 9,030 10,203 12,911 27,092 1,205 335
	52,345 1,205	53,550 59,120
		2022 21,490 10,203 27,092 335 59,120
	58,785 335

17

VICTORIA PARK BAPTIST CHURCH

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

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 Church 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 Church activity Church property Church roof Manse property Depreciation 8 Grants payable 5 c	Unrestricted Restricted	2023 2022
	£ £ - - 10,626 - 38,400 - 429 -	£ £ 0 182 10,626 11,171 38,400 38,400 429 187
	49,455 -	49,455 49,940
	182 - 11,171 - 38,400 - 187 -	2022 182 11,171 38,400 187 49,940 2023 2022
	49,940 -
	Unrestricted Restricted
	£ £ 116 -	£ £ 116 81
	81 -
	£ £ £ £ 7,833 - 7,833 12,589 2,035 - 2,035 1,896 26,139 - 26,139 14,091 293,624 293,624 203,192 7,028 - 7,028 5,639 273 - 273 665 - 644 644 461
	336,932 644 337,576 238,533

The refurbishment of the Church roof is written off in the year as it replaces the existing roof.

(b) Administration and governance Administrative costs Independent examination fee Combined charitable activity cost	Unrestricted Restricted 2023 2022
	£ £ £ £ 2,632 - 2,632 3,164 1,680 - 1,680 1,548
	4,312 - 4,312 4,712
	341,244 644 341,888 243,245

18

VICTORIA PARK BAPTIST CHURCH

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

(c) Grants Missionary support Relief of poverty Other grants	Institutions Individuals 2023 2022 £ £ £ £ 204 - 204 - - 350 350 305 90 - 90 156
	294 350 644 461

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:

The main features of the grants made were to: Baptist Home Mission Baptist World Mission Crossroads CCS 5(a) Direct Charitable Costs - prior year comparative Employee costs 7 Church activity 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 (c) Grants Relief of poverty Other grants

2023 2022 £0 £0 £204 £0 £90 £156 Unrestricted Restricted 2022 £ £ £ 12,589 - 12,589 1,896 - 1,896 14,091 - 14,091 203,192 203,192 5,639 - 5,639 665 - 665 - 461 461 238,072 461 238,533 Unrestricted Restricted 2022 £ £ £ 3,164 - 3,164 1,548 - 1,548 4,712 - 4,712 242,784 461 243,245 Institutions Individuals 2022 £ £ £ - 305 305 156 - 156 156 305 461

19

VICTORIA PARK BAPTIST CHURCH

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

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	2023 2022 £ £ 273 665 9,890 56 1,680 1,548
	11,843 2,269
	2023 2022 £ £ 6,081 8,248 209 326 1,258 3,709 285 306
	7,833 12,589

The charity has no full time equivalent employed staff at the year end, with 0.5 employed staff in the first financial quarter of the year (2022:0.5).

No staff received salaries at a rate of more than £60,000 per annum (2022: nil)

The Minister retired during 2020 and a minister in training was in post until June 2022 working half time, half the full stipend was paid £3,019 (2022: £6,126 ) and pension contributions were made of £293 (2022: £306).

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 2023

8 Tangible fixed assets Cost At 1 April 2022 Additions At 31 March 2023 Accumulated Depreciation At 1 April 2022 Charge for the year At 31 March 2023 Net book value At 31 March 2023 At 31 March 2022	Building Equipment Total refurbishment & fittings Manse 2023 £ £ £ £ 13,647 24,178 1,414,000 1,451,825 - - - -
	13,647 24,178 1,414,000 1,451,825
	3,004 24,178 4,000 31,182 273 - - 273
	3,277 24,178 4,000 31,455
	10,370 - 1,410,000 1,420,370
	10,643 - 1,410,000 1,420,643

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 Sundry debtors Tax recoverable Prepayments 10 Cash at bank and in hand Bank operating accounts Bank deposits	2023 2022 £ £ 1,783 1,163 3,000 10,217 1,224 1,154
	6,007 12,534
	2023 2022 £ £ 37,517 15,575 6,174 16,058
	43,691 31,633

21

VICTORIA PARK BAPTIST CHURCH

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

11 Creditors: liabilities falling due within one year Sundry creditors Payroll taxes Interest on loan London Baptists long term loans Accruals 12 Creditors: liabilities falling due after one year London Baptists long term loans Due after one year Total balance due	2023 2022 £ £ 45,458 2,932 - 27 3,634 - 6,000 6,056 2,420 2,472
	57,512 11,487
	2023 2022 £ £ 282,000 84,000
	282,000 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 monthly 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 £201,000 (2022: £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/propertyboard. 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 2023

14 Movements in funds

Endowment fund Restricted funds Other restricted funds Communion Fund 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 2022 £ (90,000) 923 85	At 1 April 2022 £ (90,000) 923 85	Incoming resources £ - 434 770	Outgoing resources £ - (434) (210)	At 31 March Transfers 2023 £ £ (198,000) (288,000) (189) 734 - 645
		1,008	1,204	(644)	(189) 1,379
		12,878 10,643	-	- (273)	(12,878) 0 10,370
		23,521	-	(273)	- 10,370
		225	-	-	- 225
		23,746	-	(273)	- 10,595
	(16,400) 1,410,000 24,569		- - 101,917	16,400 - (340,971)	- 0 - 1,410,000 211,067 (3,418)
	1,441,915		101,917	(324,844)	211,067 1,417,177
	1,352,923		103,121	(325,488)	12,878 1,130,556

Purpose of endowment funds

When the Church borrows money from London Baptists 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.

Endowment Funds are requried to match the Church's loans, therefore a transfer from General Funds to Endowment Funds is necessary.

23

VICTORIA PARK BAPTIST CHURCH

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

14 Movements in funds - continued

Purpose of designated funds

The Redevelopment Fund was fully utilised in 2023 and closed.

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.

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 2023

Movements in funds - prior year Endowment fund Restricted funds Other restricted funds Communion Fund 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 £ -	At 1 April 2021 £ -	Incoming resources £ -	Outgoing resources £ -	At 31 March Transfers 2022 £ £ (90,000) (90,000)	At 31 March Transfers 2022 £ £ (90,000) (90,000)
		846 288	233 102	(156) (305)	-	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

25

VICTORIA PARK BAPTIST CHURCH

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

15 Analysis of net assets between funds at 31 March 2023

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

Restricted funds Church funds 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 £ £ £ £ £ - 1,379 - - 1,379
	- 1,379 - - 1,379
	- - - (288,000) (288,000) 10,370 225 - - 10,595 - - - - - 1,410,000 - - - 1,410,000 - 42,087 (51,505) 6,000 (3,418)
	1,420,370 42,312 (51,505) (282,000) 1,129,177
	1,420,370 43,691 (51,505) (282,000) 1,130,556

Analysis of net assets between funds - prior year 31 March 2022

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

Restricted funds Church funds 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 (100,344) 1,352,979

16 Related party transactions

During the year and prior to becoming a trustee, one trustee, A Braz, received a total of £810 (2022: nil) for regular cleaning in the Church.

There are no other related party transactions for 2023 (2022: none).

In the year an aggregate of £18,970 was donated to the Church by Trustees, (2022 £24,300).

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 2023

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 long-term 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 2023

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.

At the end of June 2022 the Baptist Pension Scheme signed an agreement with the insurance company Just Group (‘Just’) to secure members’ pension benefits under the Defined Benefit (‘DB’) Plan. As a result, the Scheme no longer has a shortfall. A revised statement of contributions was announced in July 2022 with deficit contributions from each participating employer in the DB Plan reducing to just £1 per month from August 2022.

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 2023		31 March 2022
Balance sheet liability at year start		£16,400		£19,600
Minus deficiency contributions paid		-£1,258		-£3,709
Interest cost (recognised in SoFA)		£484		£327
Remaining change to balance sheet liability* (recognised in SoFA)		-£15,626		£182
Balance sheet liability at year end		£0		£16,400

• 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 2023	30 March 2022		31 March 2021
Discount rate	5.6%	3.0%		1.8%
Future increases to Minimum Pensionable Income	0.0%	3.2%		3.3%

28