# **FINANCIAL STATEMENTS FOR YEAR ENDED 31ST DECEMBER 2020** # **SOUTHALL BAPTIST CHURCH** # **CHARITY REGISTRATION No: 1147013** Page 2 Legal and Administrative Information Page 3 Trustees', Elders' and Deacons' Report Page 6 Statement of Financial Activities Page 7 Balance Sheet Pages 8 to 13 Notes to the Financial Statements Page 14 Independent Examiner's Report to the Trustees, Elders and Deacons Independent Examiners Ltd 2 Broadbridge Business Centre Delling Lane Bosham West Sussex PO18 8NF 1 ## **SOUTHALL BAPTIST CHURCH TRUSTEES, ELDERS AND DEACONS REPORT FOR THE YEAR ENDED 31ST DECEMBER 2020** ## **LEGAL AND ADMINISTRATIVE INFORMATION** **REGISTERED CHARITY NUMBER** 1147013 **START OF FINANCIAL YEAR** 1st January 2020 **END OF FINANCIAL YEAR** 31st December 2020 **TRUSTEES AT 31 DECEMBER 2020** Boyd Williams Douglas Rundell Christine Streets Lal Masih David Streets Susan Welch **ELDERS** Boyd V Williams Lal Masih David Streets **DEACONS** Douglas Rundell Paul Pervez Shaleem Asghar Kathleen Colemack Sergio Bragga Simro Sidhu Susan Welch Alberio Vieira Wendy Ho Parveen Aneel The Trustees are appointed by church members at an annual church meeting. **CONTACT DETAILS** Mrs Christine Streets Southall Baptist Church Western Road Southall Middlesex UB2 5DS **GOVERNING INSTRUMENT** The church is governed by its own constitution and rules as approved at the church members' meeting. It first became registered with the Charity Commission on 25th April 2012 **OBJECTS** The Church exists to proclaim the Christian faith and to serve the local community through its work and witness. Its purpose is to turn people into fully devoted followers of Jesus Christ. **PRIMARY BANKERS** Barclays Bank Plc Southall Branch Hounslow **INDEPENDENT EXAMINER** P B Robinson MAAT FCIE Independent Examiners Ltd 2 Broadbridge Centre Delling Lane Bosham West Sussex PO18 8NF 2 ## **SOUTHALL BAPTIST CHURCH** ## **TRUSTEES, ELDERS AND DEACONS REPORT FOR THE YEAR ENDED 31ST DECEMBER 2020** ## **OBJECTS AND ACTIVITIES** As a church we have only been open for three months in 2020 this was due to a global pandemic whereby the UK was locked down and churches were not allowed to meet. We have therefore been required to take advantage of today’s technology. We have had to adapt to this new situation. Sunday services have been streamed by YouTube and a mid-week meeting has taken place on Zoom. Very few church meetings have been held and these too have been by Zoom. Members have used online banking to give. Members that are without digital communication have been contacted by telephone and post including a monthly church letter. People have visited the elderly and infirm where they can on a regular basis. Pastoral care of the local congregations has been carried out by the local pastors. We have been unable to carry out our Homeless ministry and the Senior Citizens have been unable to meet. When allowed we are committed to enabling as many people as possible to worship at our church and to become part of the international community of Southall Baptist Church when our services and worship will help put faith into practice through prayer and scripture. The Sunday morning services are normally conducted in English. Other congregations which come under the umbrella of Southall Baptist Church are carried out in their mother tongues of Punjabi/Urdu/Portuguese/Lingala/Kachin. Being aware of the Commissions guidance on public benefit and in particular the specific guidance on Charities for the advancement of religion people are encouraged to live out their faith by taking part in worship and prayer learning about the Gospel and developing their knowledge and trust in Jesus. ## **WORSHIP AND PRAYER** Prayer groups are normally available throughout the week giving people the opportunity for quiet times, but these too have been carried out online. As of 31 December 2020, there were 241 church members. These numbers would not necessarily reflect the true attendance at services as these are also attended by non-members. We would normally carry out dedication services for new-born children and adult baptism by immersion following a person becoming a Christian. In normal times we are licensed to register Marriages and Blessing of Marriages (following Registry Office weddings). Funeral services for members of the church family and the community are also taken. ## **CHURCH** Due to the pandemic all proposed renovations to the building has been put on hold until we are allowed to use the building again. ## **PASTORAL CARE** Normally a café is run from the church building which is open two days a week reaches the local community. Fixtures and fitments for this are the responsibility of the church. Fire, Health and Safety regulations are complied with. Sunday schools have met where possible online under supervision. 3 ## **SOUTHALL BAPTIST CHURCH** ## **TRUSTEES, ELDERS AND DEACONS REPORT(continued) FOR THE YEAR ENDED 31ST DECEMBER 2020** ## **MISSION AND EVANGELISM** Several congregations have been set up under the umbrella of Southall Baptist Church where the pastors of these small congregations have needed visas. To encourage these congregations, it has necessitated in the church successfully applying for a further four-year sponsorship licence for Tier 2 Minister of Religion from the UK Border Agency. The ethnic diversity of the church enriches church life. We are closely related to the local Medical Centre. The Kachin Church which meets in the Hammond Road building are trying to buy these premises which we hold in trust. ## **FINANCE** Total receipts of unrestricted funds were £ 84,413. Total receipts of restricted funds were £27,438 these were gifts for specific purposes, the school, Asian Convention, The Baptist World Mission (Birthday Scheme), Seniors, Sunday School and ROPE. We carried forward £289,406 The Building Fund stood at £19,190. For most of the year giving has been made through online banking which has been separately annotated. Due to the pandemic the Christian International Community Hayes (Hayes Methodist Church) have not been able to meet which meant no offerings were taken. The accounts were balanced each month. We were able to make a claim via the Small Donations Gift Aid but although encouraged to use Gift Aid, less than 10% of members have taken this up. By the end of 2020, our Payroll consisted of 6 pastors/workers, one of which is funded through their own congregation giving and passing through the account of Southall Baptist Church. Tax, National Insurance Contributions and Employers National Insurance Contributions were paid through Southall Baptist Church. Two pastors are enrolled on the NEST pension scheme. We were also able to take advantage of the Government Job Retention Scheme for two of our employees who are on furlough. The buildings of the former Baptist Churches at Harmondsworth and Hatton Road, Bedfont continue to be under the umbrella of Southall Baptist Church. The church property at 25 Tilney Road is let to a church family, as is a flat at the rear of the church. All income and payments for the latter two properties are passed through the Church Rent Account. ## **Governance** The church is a member of the London Baptist Association, The Baptist Union of Great Britain and The Evangelical Alliance. Leaders of the main church meet weekly to discuss pastoral matters. The deacons/trustees meet bi-monthly mainly to discuss and implement the administration of the church and its buildings. Due to the pandemic, it has been extremely difficult to have church meetings, but these have where possible been held online after due notice to members. This has not proved very practicable as many members have no access to online facilities. 4 SOUTHALL BAPTIsf CHURCH TRUSTEES, ELDERS AND DEACONS REPORT(continued) FOR THE YEAR ENDED 31ST DECEMBER 2020 Trustees Responslbilities The ChaNtSes Act 2011 requlre the trustees to prepare financial statements for each financial year which glve a true and falr vlew of the state of affalrs of the trust and of the surplus of the trust for that period. In p￿parIng those financial statements the trustees are required to: Selert sultable accounting policies and apply thern consistently • Make Judgements and estimates that are reasonable and p￿dent Prepare financial statements on the going concern basts unle5S it Is Inappropriate to presume that the trust will continue in existen￿. The trustees are responsible for keeplng proper accountlng records, whlch dlsclose wlth reasonable accuracy at any time the financlal position of the trust. They are also ￿ponSIble for safeguarding the assets of the trust and hert￿ for taking reasonable steps for the preventlon and detection of fraud ano other irregularities. Approved by the elders and deacons on ........................--................................ Signed on their behalf by Mr B V Williams (Pastor) ## **SOUTHALL BAPTIST CHURCH** ## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31ST DECEMBER 2020** |**INCOME AND ENDOWMENT FROM:**
Notes
Donations and Legacies
3a
Trading Activities
3b
Investments
3c
Other Income
3d
**TOTAL INCOME**
**EXPENDITURE ON:**
Charitable Activities
4
**TOTAL EXPENDITURE**
**NET INCOME/ EXPENDITURE**
Transfers
5
Total Funds Brought Forward
**TOTAL FUNDS CARRIED FORWARD**|Unrestricted Restricted
TOTAL
TOTAL
Funds
Funds
2020
2019
£
£
£
£
69,067
7,438
76,505
127,415
10,200
0
10,200
10,800
63
0
63
98
5,083
0
5,083
0
**84,413**
**7,438**
**91,851**
**138,313**
75,900
10,305
86,205
135,000
**75,900**
**10,305**
**86,205**
**135,000**
**8,513**
**-2,867**
**5,646**
**3,313**
0
0
0
0
246,297
37,463
283,760
280,447
**254,810**
**34,596**
**289,406**
**283,760**| |---|---| Movements on all reserves and all recognised gains and losses are shown above. All of the charity's operations are classed as continuing. The notes on pages 8 to 13 form part of these financial statements. 6 SOUTHALL BAPTIST CHURCH BALANCE SHEET AS AT 31 DECEMBER 2020 31-D•e 2020 Total 31-D 2019 Total Vnrestrtcted Restrfcte(J Funds Funds Notes Fixed Assets Tanglble assets 185.800 185,800 185,800 Current Assets Debtors Cash at bank and in hand 70.270 34,596 104.866 99,208 Total Currnnt Assets 70,270 104 866 Creditors: amounts falling due within one year 1,260 1,260 1,248 NET CURRENT ASSETS 69,010 34,596 103,606 97,960 TOTAL ASSETS les5 current liabilltles 254.810 34,596 289.406 283,760 NET ASSErs 254.810 4,596 289.40 ,760 Funds of the Charity General Funds Restricted Funds 254,810 254,810 34,596 246,297 37,463 34,596 Total Funds 254,810 34,596 289,406 283,760 Approved by the elders and deacons on 2LV Sa 21 Signed on their behalf by Mr B V Williams { Pastor) ## **SOUTHALL BAPTIST CHURCH** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2020** ## **1. ACCOUNTING POLICIES** ## **a) Basis of Preparation** The financial statements have been prepared on the historical cost convention (as modified to include the revaluation of investments) in accordance with the Charities Act 2011, Statement of Recommended Practice - "Accounting and Reporting by Charities" (SORP 2015), applicable accounting standards. The accounts have been prepared on a going concern basis. The charity meets the definition of a public benefit entity under FRS 102, and being a small charity has claimed exemption under Section 1a not to prepare a cash flow statement. - **b)** Donations are accounted for gross when received. ## **c) Legacies** Legacies are accounted for when their receipt is certain and can be properly quantified. ## **d) Investment Income** Investment income is included in the accounts in the year it is receivable. ## **e) Fund Raising and Publicity Costs** The church does not make formal appeals for funds, and expenditure on these items is therefore not material. ## **f) Grants Payable** The church makes grants to other organisations whose charitable objects complement its work. They are accounted for in the year in which they are paid. ## **g) Governance Costs** This represents direct expenditure on the governance of the church. Most of the management is carried out without charge by volunteers. This intangible cost is not included in the Statement of Financial Activities since there is no measurable cost to volunteers for their service. ## **h) Fixed Assets** The church premises are included in the balance sheet at Insurance value because reliable cost information is not available, and valuation would incur significant costs which would be onerous compared with the additional benefit gained by the user of the accounts. Furniture and Equipment in the church premises is included at cost or net realisable value. ## **i) Depreciation** Depreciation has not been charged on the Church or Manse premises, because in the opinion of the Trustees, the residual value of the asset is not less than the original cost price. Depreciation on other fixed assets are calculated to write off the cost on a reducing balance basis over their expected useful life, at the following rates: Equipment 25% ## **j) Investment Assets** Quoted investments are stated at market value. All other investment assets are shown at cost price. ## **k) Changes in Accounting policies and previous accounts** There has been no change to the accounting policies (variation rules and methods of accounting) since last year, and no changes to the previous accounts. 8 ## **SOUTHALL BAPTIST CHURCH** ## **NOTES TO THE FINANCIAL STATEMENTS(continued) FOR THE YEAR ENDED 31ST DECEMBER 2020** |**BLE FIXED ASSETS**||Buildings|Equipment|Total| |---|---|---|---|---| |||£|£|£| |Cost|01-Jan-20|185,800|33,549|215,627| |Additions||0|0|0| |Cost at|31-Dec-20|185,800|33,549|215,627| |Depreciation|01-Jan-20|0|33,549|22,882| |Charge||0|0|0| |Depreciation at|31-Dec-20|0|33,549|22,882| |Net Book Value|31-Dec-20|**185,800**|**0**|**185,800**| |Net Book Value|31-Dec-19|185,800|0|185,800| ## **2. TANGIBLE FIXED ASSETS** All fixed assets are used for direct charitable purposes. Some of the furniture, computers and equipment is used both for direct charitable purposes and the management and administration of the church. The annual commitments under non-cancelling operating leases and capital commitments are as follows: 31st December 2020 : None (31st December 2019: None) |**3. INCOME AND ENDOWMENTS FROM:**
Note
**a) Donations and Legacies**
General Offerings and Donations
Sundry Offerings
Unrestricted Gift Aid BGC
Restricted Income:
5
Building Fund
Earmarked Accounts
Other Churches
Subsidary Accounts
Rents
**c) Investments**
Bank Interest
**b) Trading Activities**|Unrestricted Restricted
TOTAL
TOTAL
Funds
Funds
2020
2019
£
£
£
£
13,078
13,078
52,546
2,203
2,203
4,251
51,702
51,702
29,269
2,463
2,463
14,444
2,832
2,832
5,251
2,084
1,600
3,684
20,515
543
543
1,139
**69,067**
**7,438**
**76,505**
**127,415**
10,200
10,200
10,800
**10,200**
**0**
**10,200**
**10,800**
**63**
**0**
**63**
**98**| |---|---| 9 ## **SOUTHALL BAPTIST CHURCH** ## **NOTES TO THE FINANCIAL STATEMENTS(continued) FOR THE YEAR ENDED 31ST DECEMBER 2020** |**3. INCOME AND ENDOWMENTS FROM:**
Note
**(Continued)**
**d) Other Income**
HMRC JRS Grant
**4. EXPENDITURE ON:**
**Charitable Activities**
Bedfont
Catering
Cleaning
Depreciation
Fabric
Gifts
Legal Fees
Other Churches
Home Mission Fund & Baptist Missionary Society
Independent Examiners Fee
Insurance
Mission
Office
PHS/ADT (Water heater/Alarm system)
Rent:
Council Tax
Property Expenses
Professional Fees
Bank Charges
Restricted Expenditure:
5
Building Fund
Earmarked Accounts
Other Churches
Subsidary Accounts
Speakers
Sundry Expenditure
Telephone
Utilities:
Gas
Electric
Water
Wages & Salaries
9|Unrestricted Restricted
TOTAL
TOTAL
Funds
Funds
2020
2019
£
£
£
£
5,083
5,083
0
**5,083**
**0**
**5,083**
**0**
262
262
247
356
356
1,924
2,676
2,676
2,236
0
0
0
7,347
7,347
3,675
0
1,153
0
0
5,719
5,719
16,004
1,800
1,800
1,800
1,260
1,260
1,248
2,421
2,421
2,366
3,283
3,283
3,256
888
888
1,459
1,236
1,236
1,089
1,043
1,043
1,003
1,390
1,390
10,248
4,053
4,053
5,587
284
284
447
4,770
4,770
19,733
2,741
2,741
12,048
1,746
1,746
3,009
1,048
1,048
1,444
391
391
650
582
582
268
1,185
1,185
1,085
3,237
3,237
4,825
1,535
1,535
3,000
1,484
1,484
925
33,468
33,468
34,271
**75,900**
**10,305**
**86,205**
**135,000**| |---|---| 10 ## **SOUTHALL BAPTIST CHURCH** ## **NOTES TO THE FINANCIAL STATEMENTS(continued) FOR THE YEAR ENDED 31ST DECEMBER 2020** ## **5. RESTRICTED FUNDS** |**Building Fund**
**Earmarked Accounts**
Carpet
Convention/Glory TV
Feeding the Homeless
Harlesden Church Balance
In Memory of Vera
Ladies Teas
Loan (orginally £1,500)
Loan to Airport Church
New Key Deposit (DF)
ROPE (GA)
Seniors
Sunday School/ Youth
Transport
Worship
**Other Churches**
Harmondsworth
**Subsidiary Accounts**
B M S
Love in Action
**TOTAL**|Balance
Balance
01-Jan-20
Income
Expenditure
Transfers
31-Dec-20
£
£
£
£
£
**21,497**
**2,463**
**4,770**
**0**
**19,190**
0
150
0
0
150
1,669
0
700
0
969
206
1,278
0
0
1,484
1,523
0
0
0
1,523
0
400
400
0
0
64
0
0
0
64
-2,800
0
0
0
-2,800
-810
0
0
0
-810
50
0
0
0
50
0
290
240
0
50
2,045
651
1,082
0
1,614
1,528
63
319
0
1,272
200
0
0
0
200
80
0
0
0
80
**3,755**
**2,832**
**2,741**
**0**
**3,846**
9,696
1,600
1,746
0
9,550
**9,696**
**1,600**
**1,746**
**0**
**9,550**
0
493
483
0
10
2,515
50
565
0
2,000
**2,515**
**543**
**1,048**
**0**
**2,010**
**37,463**
**7,438**
**10,305**
**0**
**34,596**| |---|---| The restricted funds are wholly represented by cash reserves of the charity. 11 ## **SOUTHALL BAPTIST CHURCH** ## **NOTES TO THE FINANCIAL STATEMENTS(continued) FOR THE YEAR ENDED 31ST DECEMBER 2020** |**6. CASH AT BANK AND IN HAND**
General
Business Premium
High Interest Account
No 2 Account (Sudbury Church)
No 3 Account (payroll for one associated Pastor)
No 4 Account (Hayes Church)
Earmarked
Rent Account
LBPB*|**31-Dec**
**31-Dec**
**2020**
**2019**
**£**
**£**
9,689
11,504
23,138
27,885
27,673
21,659
0
0
0
0
20,045
21,611
3,175
3,173
20,226
12,459
920
917
**104,866**
**99,208**| |---|---| * London Baptist Property Board hold these funds on behalf of Southall Baptist Church and can be drawn upon at any time. |**7. DEBTORS AND PREPAYMENTS**
Debtors and Prepayments|**31-Dec**
**31-Dec**
**2020**
**2019**
**£**
**£**
0
0| |---|---| ||**0**
**0**| |**8. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
Independent Examiners Fees|**£**
**£**
1,260
1,248| ||**1,260**
**1,248**| |**9. STAFF COSTS AND NUMBERS**
Net Wages and Salaries
Employer's NIC less allowance
Employer Pension Contributions|**£**
**£**
32,532
31,286
163
164
773
714| ||**33,468**
**32,164**| Average number of employees who were engaged in each of the following activities during the year: |Activities in furtherance of the charities objects|**2020**
**2019**
TOTAL
TOTAL
5
5| |---|---| The church operates a PAYE scheme to pay all employed members of staff. The average number of staff employed was 5 over 2020 (2019:5). No employees received emoluments in the range of £50,000 to £60,000. (2019:None) 12 ## **SOUTHALL BAPTIST CHURCH** ## **NOTES TO THE FINANCIAL STATEMENTS(continued) FOR THE YEAR ENDED 31ST DECEMBER 2020** ## **10. PAYMENTS TO TRUSTEES, MINISTERS AND RELATED PARTIES** ## **Custodian Trustees** The custodian trustee of the church is the Baptist Union Corporation Limited which is a registered charity (number: 249635), and which is controlled by the Baptist Union Council. The church is also a member of the Baptist Union of Great Britain, and the London Baptist Association. No payments were made to the custodian trustees or any persons/organisations connected with them during this financial period. No material transaction took place between the charity and the custodian trustee or any person/organisation connected with them. ## **Ministers , Elders and Deacons** Mr Boyd Williams received remuneration for his role as Pastor. This amount is included in Gross Wages and Salaries in note 9. No other payments were made to Ministers, Elders, Deacons or any persons connected with them during this financial period. No material transaction took place between the charity and a ministers, elders, deacons or any person connected with them. ## **11. RISK ASSESSMENT** The trustees, elders and deacons actively review the major risks which the charity faces on a regular basis and believe that maintaining the free reserves stated, combined with the annual review of the controls over key financial systems carried out on an annual basis will provide sufficient resources in the event of adverse conditions. The trustees, elders and deacons have also examined other operational and business risks which they face and confirm that they have established systems to mitigate the significant risks. ## **12. RESERVES POLICY** The trustees, elders and deacons have considered the level of reserves they wish to retain, appropriate to the charity's needs. This is based on the charity's size and the level of financial commitments held. The trustees, elders and deacons aim to ensure the charity will be able to continue to fulfil its charitable objectives even if there is a temporary shortfall in income or unexpected expenditure. The trustees, elders and deacons will endeavour not to set aside funds unnecessarily. 13 ## **INDEPENDENT EXAMINERS REPORT TO THE** ## **TRUSTEES, ELDERS AND DEACONS OF SOUTHALL BAPTIST CHURCH** Report to the members of Southall Baptist Church on the accounts for the year ended 31st December 2020 set out on pages 6 to 13. ## **Respective responsibilities of trustees and examiner** The charity's trustees are responsible for the preparation of the accounts. The trustees consider that an audit is not required this year under section 144 of the Charities Act 2011 (the Act) and that an independent examination is needed. It is my responsibility to: - examine the accounts under section 145 of the Act; - to follow the procedures laid down in the General Directions given by the Charity Commission under section 145(5)(b) of the Act, and; - to state whether particular matters have come to my attention. ## **Basis of independent examiner's statement** My examination was carried out in accordance with general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from the trustees concerning such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a 'true and fair' view and the report is limited to those matters set out in the statement below. ## **Independent examiner's statement** In connection with my examination, no matter has come to my attention: 1. which gives me reasonable cause to believe that in, any material respect, the trustees have not met the requirements to ensure that: - proper accounting records are kept (in accordance with section 130 of the Act); and - accounts are prepared which agree with the accounting records and comply with the accounting - requirements of the Act; or 2. to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached. P B Robinson MAAT FCIE Independent Examiners Ltd 2 Broadbridge Business Centre Delling Lane Bosham W. Sussex PO18 8NF Dated: 25th October 2021 14