Annual Report and Financial Statements for the Year Ended 31 March 2022
Shoreham Baptist Church
Charity registration number: 1148191
Independent Examiners Ltd 2 Broadbridge Business Centre Delling Lane Bosham Chichester West Sussex PO18 8NF
SHOREHAM BAPTIST CHURCH
Contents
| Reference and Administrative Details | 1 |
|---|---|
| Trustees' Report | 2 to 4 |
| Independent Examiner's Report | 5 |
| Statement of Financial Activities | 6 |
| Balance Sheet | 7 |
| Notes to the Financial Statements | 8 to 18 |
SHOREHAM BAPTIST CHURCH
Reference and Administrative Details
Trustees Chris Leggett (resigned 31 December 2021) Mike Daintree David Buck Brian Hoad (resigned 31 December 2021) Val Lynn (resigned 31 March 2022) Denise Edwards Kevin Leggett (appointed 1 January 2022) Rev Raymond Orr Andrew Lincoln David Rollings John Lillywhite Charity Registration 1148191 Number Elders Rev Ray Orr David Rollings John Lillywhite Andrew Lincoln Principal Office Western Road Shoreham by sea West Sussex BN43 5WD Independent Examiner G W Schulz ACMA Independent Examiners Ltd 2 Broadbridge Business Centre Delling Lane Bosham Chichester West Sussex PO18 8NF Bankers HSBC 1-3 Warwick Street Worthing West Sussex BN11 3DE
Page 1
SHOREHAM BAPTIST CHURCH
Trustees' Report
The trustees present the annual report together with the financial statements of the charity for the year ended 31 March 2022.
Structure, governance and management
Nature of governing document
Shoreham Baptist Church is a registered charity, number 1148191, and is constituted under a Trust deed.
Organisational structure
The Deacons act as Managing Trustees of the Church and are responsible to the Elders for the day to day management of the Church. The Elders are responsible for the spiritual leadership of the Church.
Risk management
Under the Statement of Recommended Practice (SORP) regulations, the Deacons, as Trustees, have completed an ongoing Risk Management review and have acted to minimise all known risks.
Objectives and activities
Objects and aims
The principal object of the charity is the advancement of the Christian faith.
The purpose of the Church is to declare God’s praise, develop Christian disciples and demonstrate Christian love.
Public benefit
The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.
Achievements and performance
We believe the Church has navigated all of the Covid restrictions very well over the last year as they changed. The Church services in the main have now returned into the Church buildings whilst we are still maintaining the online facility for those who are still wary and nervous of returning to face to face meetings. A good sense of normality has returned to the life of the Church and most of the ministry groups have restarted.
Page 2
SHOREHAM BAPTIST CHURCH
Trustees' Report
Financial review
Principal funding sources
The deficit made by the Trust in the year amounted to £12,352 (2020 deficit £17,166). The Trustees note that the balance of £1,724,956 be carried forward as accumulated reserves.
The Baptist Union are the custodial trustees of the church building used by the church which is responsible for the maintenance and upkeep costs. The church building has been included in fixed assets at the insured value of £1,700,000 and is being depreciated at a rate of 2% x 50% x £1,700,000.
Going concern
We had expected at the beginning of the financial year that we would need to use some of our savings to bolster this year’s budget. However after numerous personal donations, the departure of the youth worker, and extra income generated from the hiring of our premises we have ended the year in a much better position than anticipated. We have not had to use any savings to cover expenses and after a serious look at our accounts we believe we can safely move forward with a reasonable expectation that we have adequate resources to continue. For this reason we continue to adopt the going concern basis in preparing the financial statements.
Plans for future periods
Activities planned to achieve aims
The Church has faced another period of somewhat limited activity due to the pandemic restrictions during the year, but a good measure of normality has returned, with some old and some new ministry activities emerging. We do not expect any major changes to take place in the coming year.
Page 3
SHOREHAM BAPTIST CHURCH
Trustees' Report
Statement of Trustees' Responsibilities
The trustees are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations. The law applicable to charities requires the trustees to prepare financial statements for each financial year which give a 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 trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the constitution. The trustees 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.
The annual report was approved by the trustees of the charity on 6 June 2022 and signed on its behalf by:
......................................... Denise Edwards Trustee
Page 4
SHOREHAM BAPTIST CHURCH
Independent Examiner's Report to the trustees of Shoreham Baptist Church
I report to the charity trustees on my examination of the accounts of the charity for the year ended 31 March 2022 which are set out on pages 6 to 18.
Respective responsibilities of trustees and examiner
As the charity’s trustees of Shoreham Baptist Church you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the Shoreham Baptist Church's accounts carried out under section 145 of the 2011 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:
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accounting records were not kept in respect of Shoreham Baptist Church as required by section 130 of the Act; or
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the accounts do not accord with those records; or
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the accounts do not comply with the accounting 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 accounts to be reached.
...................................... G W Schulz ACMA
Independent Examiners Ltd 2 Broadbridge Business Centre Delling Lane Bosham Chichester West Sussex PO18 8NF
6 June 2022
Page 5
SHOREHAM BAPTIST CHURCH
Statement of Financial Activities for the Year Ended 31 March 2022
| Note Unrestricted funds £ Income and Endowments from: Donations and legacies 2 89,183 Charitable activities 3 4,459 Investment income 4 188 Total income 93,830 Expenditure on: Charitable activities 5 103,155 Total expenditure 103,155 Net expenditure (9,325) Net movement in funds (9,325) Reconciliation of funds Total funds brought forward 1,611,033 Total funds carried forward 13 1,601,708 |
Restricted funds £ 4,968 6,983 1 11,952 14,979 14,979 (3,027) (3,027) 126,275 123,248 |
Total 2022 £ 94,151 11,442 189 105,782 118,134 118,134 (12,352) (12,352) 1,737,308 1,724,956 |
Total 2021 £ 89,781 11,284 33 |
|---|---|---|---|
| 101,098 | |||
| 118,264 | |||
| 118,264 | |||
| (17,166) | |||
| (17,166) 1,754,474 |
|||
| 1,737,308 |
The notes on pages 8 to 18 form an integral part of these financial statements. Page 6
SHOREHAM BAPTIST CHURCH
Balance Sheet as at 31 March 2022
| Note Fixed assets Tangible assets 8 Current assets Debtors 9 Cash at bank and in hand Creditors: Amounts falling due within one year 10 Net current assets Total assets less current liabilities Creditors: Amounts falling due after more than one year 11 Net assets Funds of the charity: Restricted income funds Restricted funds Unrestricted income funds Unrestricted funds Total funds 13 |
2022 £ 1,709,798 14,762 72,504 87,266 (2,653) 84,613 1,794,411 (69,455) 1,724,956 123,248 1,601,708 1,724,956 |
2021 £ 1,730,147 13,952 67,145 |
|---|---|---|
| 81,097 (2,653) |
||
| 78,444 | ||
| 1,808,591 (71,283) |
||
| 1,737,308 | ||
| 126,275 1,611,033 |
||
| 1,737,308 |
The financial statements on pages 6 to 18 were approved by the trustees, and authorised for issue on 6 June 2022 and signed on their behalf by:
......................................... Denise Edwards Trustee
The notes on pages 8 to 18 form an integral part of these financial statements. Page 7
SHOREHAM BAPTIST CHURCH
Notes to the Financial Statements for the Year Ended 31 March 2022
1 Accounting policies
Statement of compliance
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.
Basis of preparation
Shoreham Baptist Church meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
Going concern
The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.
Income and endowments
Voluntary income including donations, gifts, legacies and grants that provide core funding or are of a general nature is recognised when the charity has entitlement to the income, it is probable that the income will be received and the amount can be measured with sufficient reliability.
Donations and legacies
Donations and legacies are recognised on a receivable basis when receipt is probable and the amount can be reliably measured.
Gift aid
Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Expenditure
All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category.
Page 8
SHOREHAM BAPTIST CHURCH
Notes to the Financial Statements for the Year Ended 31 March 2022
Charitable activities
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
Tangible fixed assets
Individual fixed assets costing £500 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
Depreciation and amortisation
Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:
Asset class Depreciation method and rate Freehold property 2% straight line on building only Computer equipment 25% reducing balance
Debtors
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Liabilities
Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
Page 9
SHOREHAM BAPTIST CHURCH
Notes to the Financial Statements for the Year Ended 31 March 2022
Fund structure
Unrestricted income funds are general funds that are available for use at the trustees's discretion in furtherance of the objectives of the charity.
Designated funds are unrestricted funds set aside for specific purposes at the discretion of the trustees.
Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.
Pensions and other post retirement obligations
The charity operates a defined contribution pension scheme which is a pension plan under which fixed contributions are paid into a pension fund and the charity has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised in the Statement of Financial Activities when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Page 10
SHOREHAM BAPTIST CHURCH
Notes to the Financial Statements for the Year Ended 31 March 2022
2 Income from donations and legacies
| Unrestricted funds General £ Donations and legacies; Donations 71,202 Gift aid reclaimed 15,619 Grants, including capital grants; Government grants 2,362 89,183 3 Income from charitable activities Unrestricted funds General £ Fees, grants and subscriptions - Other income 4,459 4,459 4 Investment income Unrestricted funds General £ Interest receivable and similar income; Interest receivable on bank deposits 188 |
Restricted funds £ 4,968 - - 4,968 Restricted funds £ 6,983 - 6,983 Restricted funds £ 1 |
Total 2022 £ 76,170 15,619 2,362 94,151 Total 2022 £ 6,983 4,459 11,442 Total 2022 £ 189 |
Total 2021 £ 73,949 13,952 1,880 |
|---|---|---|---|
| 89,781 | |||
| Total 2021 £ 8,009 3,275 |
|||
| 11,284 | |||
| Total 2021 £ 33 |
Page 11
SHOREHAM BAPTIST CHURCH
Notes to the Financial Statements for the Year Ended 31 March 2022
5 Expenditure on charitable activities
| Unrestricted funds Restricted Note Designated £ General £ funds £ Preachers and speakers - 1,100 - Subscriptions and conferences - 1,311 - Youth and children's work - (28) 995 Special events 377 - - Tithes and donations - 15,790 3,566 CAP expenses - 3,900 6,866 College fees - 183 - Insurance - 3,157 - Telephone - 586 - Printing and stationery - 560 22 Postage and sundries - 71 - Room hire - - 200 Building maintenance - 6,200 - Equipment maintenance - 1,554 - Light and heat - 3,940 - Rates and water - 2,887 - Cleaning - 250 - Professional fees - 101 - Mortgage interest - 3,106 - Independent examination - 1,500 - Depreciation - 17,019 3,330 Staff costs 7 - 39,591 - 377 102,778 14,979 |
Total 2022 £ 1,100 1,311 967 377 19,356 10,766 183 3,157 586 582 71 200 6,200 1,554 3,940 2,887 250 101 3,106 1,500 20,349 39,591 118,134 |
Total 2021 £ - 1,152 424 315 18,564 14,213 259 3,015 579 920 - - 2,780 1,265 1,798 3,003 66 144 3,232 1,500 20,356 44,679 |
|---|---|---|
| 118,264 |
Page 12
SHOREHAM BAPTIST CHURCH
Notes to the Financial Statements for the Year Ended 31 March 2022
6 Trustees remuneration and expenses
During the year, 1 Trustee received remuneration amounting to £5,560 (2021 - £5,441). The only other payments made to the Trustees, or any person connected with them, consisted of reimbursements of expenditure incurred on behalf of the charity in furthering the charity's objects.
7 Staff costs
The aggregate payroll costs were as follows:
| 7 Staff costs The aggregate payroll costs were as follows: |
||
|---|---|---|
| Staff costs during the year were: Wages and salaries Pension costs |
2022 £ 36,435 3,156 39,591 |
2021 £ 41,579 3,100 |
| 44,679 |
The monthly average number of persons (including senior management team) employed by the charity during the year expressed as full time equivalents was as follows:
| Employees | 2022 No 3 |
2021 No 3 |
|---|---|---|
No employee received emoluments of more than £60,000 during the year
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SHOREHAM BAPTIST CHURCH
Notes to the Financial Statements for the Year Ended 31 March 2022
8 Tangible fixed assets
| Cost At 1 April 2021 At 31 March 2022 Depreciation At 1 April 2021 Charge for the year At 31 March 2022 Net book value At 31 March 2022 At 31 March 2021 |
Land and buildings £ 1,885,000 1,885,000 86,930 88,330 175,260 1,709,740 1,798,070 |
Computer equipment £ 6,675 6,675 6,598 19 6,617 58 77 |
Total £ 1,891,675 |
|---|---|---|---|
| 1,891,675 | |||
| 93,528 88,349 |
|||
| 181,877 | |||
| 1,709,798 | |||
| 1,798,147 |
The freehold property at 18/19 Buckingham Mews, Shoreham by Sea was purchased during 1995 at a cost of £91,500. In September 2000 it was professionally revalued at £185,000, and this amount is included in the accounts as its deemed cost under the new accounting framework. The building portion of the valuation, £166,500, is depreciated at the rate of 2% per annum.
The Church property at 1A Western Road,Shoreham by Sea, has been included in fixed assets at its insured value of £1,700,000. The building portion of the building estimated at half of the total is being depreciated over 50 years.
9 Debtors
| 9 Debtors |
||
|---|---|---|
| Accrued income 10 Creditors: amounts falling due within one year Bank loans Accruals |
2022 £ 14,762 2022 £ 1,693 960 2,653 |
2021 £ 13,952 |
| 2021 £ 1,693 960 |
||
| 2,653 |
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SHOREHAM BAPTIST CHURCH
Notes to the Financial Statements for the Year Ended 31 March 2022
11 Creditors: amounts falling due after one year
| Bank loans | 2022 £ 69,455 |
2021 £ 71,283 |
|---|---|---|
12 Pension and other schemes
Defined contribution pension scheme
The charity is an employer participating in a pension scheme known as the Baptist Pension Scheme ("the Scheme"), The Scheme is a separate legal entity which is administered by the Pension Trustee (Baptist Pension Trust Limited). The pension cost charge for the year represents contributions payable by the charity to the scheme and amounted to £3,156 (2021 - £3,100).
Page 15
SHOREHAM BAPTIST CHURCH
Notes to the Financial Statements for the Year Ended 31 March 2022
13 Funds
| Unrestricted funds General General Funds Designated Reserve Funds Small Designated Funds Total unrestricted funds Restricted funds Children and Youth Group Open house Messenger Choir Fund Building Fund Christians Against Poverty Bosnia work and child support Total funds |
Balance at 1 April 2021 £ 1,586,137 18,500 6,396 24,896 1,611,033 820 70 232 116,917 8,236 - 126,275 1,737,308 |
Incoming resources £ 93,830 - - - 93,830 - 139 2,287 - 7,494 2,032 11,952 105,782 |
Resources expended £ (102,778) - (377) (377) (103,155) (820) (209) (1,722) (3,330) (6,866) (2,032) (14,979) (118,134) |
Transfers £ Balance at 31 March 2022 £ 4,502 1,581,691 - 18,500 (4,502) 1,517 (4,502) 20,017 - 1,601,708 - - - - - 797 - 113,587 - 8,864 - - - 123,248 - 1,724,956 |
Transfers £ Balance at 31 March 2022 £ 4,502 1,581,691 - 18,500 (4,502) 1,517 (4,502) 20,017 - 1,601,708 - - - - - 797 - 113,587 - 8,864 - - - 123,248 - 1,724,956 |
|---|---|---|---|---|---|
| 20,017 | |||||
| 1,601,708 | |||||
| - - 797 113,587 8,864 - |
|||||
| 123,248 | |||||
| 1,724,956 |
Page 16
SHOREHAM BAPTIST CHURCH
Notes to the Financial Statements for the Year Ended 31 March 2022
| Unrestricted funds General General Funds Designated Reserve Funds Small Designated Funds Total unrestricted funds Restricted funds Children and Youth Group Open house Messenger Choir Fund Building Fund Christians Against Poverty Gift towards mortgage repayment Bosnia work and child support Total funds |
Balance at 1 April 2020 £ 1,596,240 18,500 6,519 25,019 1,621,259 913 139 255 120,247 8,935 2,726 - 133,215 1,754,474 |
Incoming resources £ 90,497 - 192 192 90,689 - 19 - - 8,014 - 2,376 10,409 101,098 |
Resources expended £ (100,600) - (315) (315) (100,915) (93) (88) (23) (3,330) (8,713) (2,726) (2,376) (17,349) (118,264) |
Balance at 31 March 2021 £ 1,586,137 18,500 6,396 |
|---|---|---|---|---|
| 24,896 | ||||
| 1,611,033 | ||||
| 820 70 232 116,917 8,236 - - |
||||
| 126,275 | ||||
| 1,737,308 |
Page 17
SHOREHAM BAPTIST CHURCH
Notes to the Financial Statements for the Year Ended 31 March 2022
14 Analysis of net assets between funds
| Tangible fixed assets Current assets Current liabilities Creditors over 1 year Total net assets Tangible fixed assets Current assets Current liabilities Creditors over 1 year Total net assets |
Unrestricted funds General £ Designated £ 1,614,077 - 39,722 20,017 (2,653) - (69,455) - 1,581,691 20,017 Unrestricted funds General £ Designated £ 1,615,077 - 44,996 24,896 (2,653) - (71,283) - 1,586,137 24,896 |
Restricted funds £ 95,721 27,527 - - 123,248 Restricted funds £ 115,070 11,205 - - 126,275 |
Total funds at 31 March 2022 £ 1,709,798 87,266 (2,653) (69,455) |
|---|---|---|---|
| 1,724,956 | |||
| Total funds at 31 March 2021 £ 1,730,147 81,097 (2,653) (71,283) |
|||
| 1,737,308 |
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