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:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- 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:
1. accounting records were not kept in respect of Shoreham Baptist Church as required by section 130 of the Act; or
2. the accounts do not accord with those records; or
3. 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
Page 13
## **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|
Page 14
## **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|
Page 18