Annual Report and Financial Statements for the Year Ended 31 March 2023
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 17 |
SHOREHAM BAPTIST CHURCH
REFERENCE AND ADMINISTRATIVE DETAILS
Trustees Mike Daintree David Buck Denise Edwards Kevin Leggett Rev Raymond Orr Andrew Lincoln David Rollings John Lillywhite Ian Stainsby (appointed 1 January 2023) Charity Registration 1148191 Number 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 2023.
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
The trustees have assessed the major risks to which the Charity is exposed, in particular those related to the operations and finances of the Charity, and are satisfied that systems and procedures are in place to mitigate exposure to the major 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
The Church began this financial year with the Pastor making a start back to his ministry after time away for personal reasons.
Throughout the year we saw a steady increase in people attending the Church, most of whom have settled in and are very much a part of our Church community.
The appointment of a Premises Manager the year before has seen the buildings virtually redecorated throughout. This has made the premises not only a more comfortable and pleasant place to be in, it has also made them profitable from hiring them out to a whole raft of community groups from, Alcoholics Anonymous to the National Child Trust, and from Singwell Gospel Choir to Love to Move, a gentle exercise class for the Elderly run by Sport England. We have also had the Trussell Trust Food Bank find a home with us as it seeks to serve the Community.
Page 2
SHOREHAM BAPTIST CHURCH
TRUSTEES' REPORT (CONTINUED)
General Church life has been gathering pace too with all our group activities functioning well and our outreach activities being well received. Our recent Alpha Course was the best attended ever with twenty guests enjoying a really good time together over the three month long course.
Plans for future periods
With the restrictions of the COVID crisis behind us, hopefully for good, we plan to continue in the vein of the previous year. With our teams functioning well we can look forward to a year of similar activities that are a blessing and a service to many both inside the church and out in our community.
A Christmas Treasure Hunt and its Easter counterpart is already planned and another Alpha Course in early 2024. Our small group programme and support to our overseas missionaries will, by God’s grace continue, as well as the steady pace of life that sees us through every season.
As of last year we do not expect any major change to take place in the coming year.
Financial review
The deficit made by the Trust in the year amounted to £7,392 (2021 deficit £12,352). The trustees note that the balance of £1,717,564 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.
Policy on reserves
The Church maintains a Reserves Policy to ensure that the Church is able to continue on a good financial basis, meeting its financial commitments. The financial situation is regularly reviewed by the trustees.
Going concern
With the income from hiring our premises and the increase in attendance, along with the generous giving that flows from this, we have seen our finances increase and made the prospect of doing more in our life together and outreach to our community much more possible. As in the previous year we have not needed to use our savings even in the light of the increase in energy costs. So much so we are planning to reduce the balance of our Manse mortgage this year. For these reasons we continue to adopt the going concern basis as we prepare for the year ahead.
Page 3
SHOREHAM BAPTIST CHURCH
TRUSTEES' REPORT (CONTINUED)
Statement of 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 Charities (Accounts and Reports) Regulations 2008, 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 22 June 2023 and signed on its behalf by:
Denise Edwards
Denise Edwards (Jul 1, 2023 16:46 GMT+1)
......................................... Denise Edwards Trustee
Page 4
SHOREHAM BAPTIST CHURCH
INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF SHOREHAM BAPTIST CHURCH
I report to the trustees on my examination of the accounts of Shoreham Baptist Church for the year ended 31 March 2023.
Responsibilities and basis of report
As the charity 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
22 June 2023
Page 5
SHOREHAM BAPTIST CHURCH
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2023
| Note Unrestricted funds £ Income and Endowments from: Donations and legacies 2 87,925 Charitable activities 3 10,694 Investment income 4 267 Total income 98,886 Expenditure on: Charitable activities 5 107,169 Net (expenditure)/income (8,283) Net movement in funds (8,283) Reconciliation of funds Total funds brought forward 1,601,708 Total funds carried forward 13 1,593,425 |
Restricted funds £ 8,346 10,276 40 18,662 17,771 891 891 123,248 124,139 |
Total 2023 £ 96,271 20,970 307 117,548 124,940 (7,392) (7,392) 1,724,956 1,717,564 |
Total 2022 £ 94,151 11,442 189 |
|---|---|---|---|
| 105,782 118,134 |
|||
| (12,352) | |||
| (12,352) 1,737,308 |
|||
| 1,724,956 |
The notes on pages 8 to 17 form an integral part of these financial statements. Page 6
SHOREHAM BAPTIST CHURCH
BALANCE SHEET AS AT 31 MARCH 2023
| 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 |
2023 £ 1,689,453 1,689,453 15,099 77,193 92,292 (3,880) 88,412 1,777,865 (60,301) 1,717,564 124,139 1,593,425 1,717,564 |
2022 £ 1,709,798 |
|---|---|---|
| 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 |
The financial statements on pages 6 to 17 were approved by the trustees, and authorised for issue on 22 June 2023 and signed on their behalf by:
Denise Edwards
Denise Edwards (Jul 1, 2023 16:46 GMT+1)
.........................................
Denise Edwards Trustee
The notes on pages 8 to 17 form an integral part of these financial statements. Page 7
SHOREHAM BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
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. The accounts (financial statements) have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts.
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.
Grants receivable
Grants are recognised when the charity has an entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant and are yet to be met, the income is recognised as a liability and included on the balance sheet as deferred income to be released.
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.
Page 8
SHOREHAM BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (CONTINUED)
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 institution with whom the funds are deposited.
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.
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.
Taxation
The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
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
Freehold property Computer equipment
Depreciation method and rate 2% straight line on building only 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.
Page 9
SHOREHAM BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (CONTINUED)
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.
Fund structure
Unrestricted income funds are general funds that are available for use at the trustees 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 2023 (CONTINUED)
2 Income from donations and legacies
| Unrestricted funds General £ Donations and legacies; Donations 72,826 Gift aid reclaimed 15,099 Grants, including capital grants; Government grants - Grants from other charities - 87,925 3 Income from charitable activities Unrestricted funds General £ Fees, grants and subscriptions - Other income 10,694 10,694 4 Investment income Unrestricted funds General £ Interest receivable and similar income; Interest receivable on bank deposits 267 |
Restricted funds £ 5,346 - - 3,000 8,346 Restricted funds £ 10,276 - 10,276 Restricted funds £ 40 |
Total 2023 £ 78,172 15,099 - 3,000 96,271 Total 2023 £ 10,276 10,694 20,970 Total 2023 £ 307 |
Total 2022 £ 76,170 15,619 2,362 - |
|---|---|---|---|
| 94,151 | |||
| Total 2022 £ 6,983 4,459 |
|||
| 11,442 | |||
| Total 2022 £ 189 |
Page 11
SHOREHAM BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (CONTINUED)
5 Expenditure on charitable activities
| Unrestricted funds Note Designated £ General £ Speakers and worship leaders - 1,250 Subscriptions and conferences - 1,259 Youth and children's work - 2,394 Special events 1,025 - Tithes and donations - 14,737 CAP expenses - 3,600 Training and pastoral - 1,473 Insurance - 3,114 Telephone - 610 Printing and stationery - 1,171 Postage and sundries - 142 Room hire - - Building maintenance - 4,966 Equipment maintenance - 2,143 Light and heat - 9,645 Rates and water - 2,945 Cleaning - 782 Professional fees - 222 Mortgage interest - 2,922 Independent examination - 1,500 Depreciation - 17,015 Staff costs 7 - 34,254 1,025 106,144 |
Restricted funds £ - - - - 5,970 7,879 - - - 92 - 500 - - - - - - - - 3,330 - 17,771 |
Total 2023 £ 1,250 1,259 2,394 1,025 20,707 11,479 1,473 3,114 610 1,263 142 500 4,966 2,143 9,645 2,945 782 222 2,922 1,500 20,345 34,254 124,940 |
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 |
Page 12
SHOREHAM BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (CONTINUED)
6 Trustees remuneration and expenses
No trustees, nor any persons connected with them, have received any remuneration from the charity during the year.
No trustees have received any reimbursed expenses or any other benefits from the charity during the year.
7 Staff costs
The aggregate payroll costs were as follows:
| Staff costs during the year were: Wages and salaries Pension costs |
2023 £ 31,211 3,043 34,254 |
2022 £ 36,435 3,156 |
|---|---|---|
| 39,591 |
The monthly average number of persons (including senior management / leadership team) employed by the charity during the year expressed as full time equivalents was as follows:
| Employees | 2023 No 2 |
2022 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 2023 (CONTINUED)
8 Tangible fixed assets
| Land and buildings £ Cost At 1 April 2022 1,885,000 At 31 March 2023 1,885,000 Depreciation At 1 April 2022 175,260 Charge for the year 20,330 At 31 March 2023 195,590 Net book value At 31 March 2023 1,689,410 At 31 March 2022 1,709,740 9 Debtors Accrued income 10 Creditors: amounts falling due within one year Bank loans Accruals 11 Creditors: amounts falling due after one year Bank loans |
Land and buildings £ 1,885,000 |
Computer equipment £ 6,675 |
Total £ 1,891,675 1,891,675 181,877 20,345 202,222 1,689,453 1,709,798 2022 £ 14,762 |
||
|---|---|---|---|---|---|
| 1,885,000 | 6,675 | ||||
| 175,260 20,330 |
6,617 15 |
||||
| 195,590 | 6,632 | ||||
| 1,689,410 | 43 | ||||
| 1,709,740 | 58 | ||||
| 2023 £ 15,099 2023 £ 2,923 957 3,880 2023 £ 60,301 |
|||||
| 2022 £ 1,693 960 |
|||||
| 2,653 | |||||
| 2022 £ 69,455 |
Page 14
SHOREHAM BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (CONTINUED)
12 Pension and other schemes
Defined contribution pension scheme
The charity operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the charity to the scheme and amounted to - £3,043 (2022 £3,156).
13 Funds
| Unrestricted funds General General Funds Designated Reserve Funds Small Designated Funds Total unrestricted funds Restricted funds Messenger Choir Fund Building Fund Christians Against Poverty Bosnia work and child support Love to Move Total funds |
Balance at 1 April 2022 £ 1,581,691 18,500 1,517 20,017 1,601,708 797 113,587 8,864 - - 123,248 1,724,956 |
Incoming resources £ 98,886 - - - 98,886 4,417 - 9,475 1,770 3,000 18,662 117,548 |
Resources expended £ (106,144) - (1,025) (1,025) (107,169) (4,492) (3,330) (7,879) (1,770) (300) (17,771) (124,940) |
Balance at 31 March 2023 £ 1,574,433 18,500 492 |
|---|---|---|---|---|
| 18,992 | ||||
| 1,593,425 | ||||
| 722 110,257 10,460 - 2,700 |
||||
| 124,139 | ||||
| 1,717,564 |
Page 15
SHOREHAM BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (CONTINUED)
| 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 2023 (CONTINUED)
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 £ 1,579,196 - 59,418 18,992 (3,880) - (60,301) - 1,574,433 18,992 Unrestricted funds General £ Designated £ 1,596,211 - 57,588 20,017 (2,653) - (69,455) - 1,581,691 20,017 |
Restricted funds £ 110,257 13,882 - - 124,139 Restricted funds £ 113,587 9,661 - - 123,248 |
Total funds at 31 March 2023 £ 1,689,453 92,292 (3,880) (60,301) |
|---|---|---|---|
| 1,717,564 | |||
| Total funds at 31 March 2022 £ 1,709,798 87,266 (2,653) (69,455) |
|||
| 1,724,956 |
Page 17