QUORN BAPTIST CHURCH
FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 JANUARY 2023
REGISTERED CHARITY NUMBER: 1148704
Cound & Co LLP Chartered Accountants
1 Princes Court Royal Way Loughborough Leics LE11 5XR Tel: 01509 214163
QUORN BAPTIST CHURCH
CONTENTS
Report of the Trustees Independent Examiner’s Report Receipts & Payments Account Statement of Assets and Liabilities Notes to the Accounts |
Page No |
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1 3 4 - 5 6 7 - 9 |
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QUORN BAPTIST CHURCH
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JANUARY 2023
The trustees are pleased to present their report together with the financial statements for the year ended 31 January 2023.
Reference and Administrative Details
Charity Registration Number: 1148704 Principal Office: Quorn Baptist Church, Meeting Street, Quorn, Loughborough, LE12 8AQ Bankers: Santander Bank, 63 Market St, Loughborough LE11 3ER HSBC, 41 Market Place, Loughborough, LE11 3EJ Independent Examiner: Cound & Co LLP, 1 Princes Court, Royal Way, Loughborough LE11 5XR Custodian Trustees: East Midlands Baptist Trust Corporation, 129 Broadway, Didcot, OX11 8RT Trustees:
The trustees during the year were:
Rev I Smith, Minister Miss G Clement, Secretary Mr A Gibb Mr P Vanlint Mr J Stow Mrs H Andrews Mr D Bates, Treasurer Mrs J Lister Mrs R Thomson
Objectives, Activities and Achievements
The principal purpose of the Church is the advancement of the Christian faith according to the principles of the Baptist denomination. The Church may also advance education and carry out other charitable purposes in the United Kingdom and/or other parts of the world.
Details of activities and achievements during 2022/2023 can be found in the Annual Report.
Structure, Governance and Management
The activities of the Church are governed by a trust deed, and a constitution adopted on 3 February 2012.
The Church is managed on a day to day basis by its Minister, Treasurer, Secretary and a number of Deacons. Apart from the Minister, the trustees and officers are elected as Deacons to be in office for three years. Elections take place at a Church members’ meeting, normally the AGM. Members may be nominated for election as trustees by a fellow member and seconded by two other members. Trustees are elected from among the nominations by means of a secret ballot of members.
There are four members’ meetings per annum at which the activities of the trustees may be scrutinised and where decisions may be taken which are beyond the trustees' expenditure authorisation limits.
The trustees have a staggered year for retirement or re-election, so that not all are replaced at the same time, allowing overlap and transfer of information to any newly elected trustees.
The Secretary and Treasurer have the resources of the Baptist Union to keep them abreast of any changes made to charity-related as well as Church related laws.
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QUORN BAPTIST CHURCH
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JANUARY 2023
Financial Review
Activities have restarted and most of the congregation attend in person again following the almost-complete relaxation of covid restrictions. We have also been delighted to welcome new attenders and new members this year.
Compared to the previous financial year, weekly ‘plate’ collections have increased by about £2,000 while offerings paid directly into our bank account have decreased by a similar amount, so offerings overall have remained static.
We have increased support to some missionary and other Christian causes and, over the year, discontinued support for others. Giving for the people of Ukraine and for locally based Ukrainian refugees has been significant and mostly supplied by the congregation through special collections. A generous gift was collected from the congregation for two missionary couples, whom we support, who visited us this year.
The unrestricted funds show a surplus of £9,399 following the surplus of £15,136 in the previous year.
The funding of the Defined Benefit part of the Baptist Pension Scheme has markedly improved and, due to a buy-in with an insurance company, only a nominal sum has been paid since August 2022. The reduction in our contributions has saved over £2000 this year.
We continue to make regular savings in our Extraordinary Repair Fund which we intend to use for the replacement of the church roof. Further building projects are under discussion by the Church membership.
The Trustees are satisfied with the current financial position.
Public Benefit
The Church provides Christian education at its weekly public meetings for worship, and public courses covering the basics of the Christian faith. The Minister and members of the congregation are also involved in the local primary school's assemblies and religious education as well as providing spiritual comfort to the elderly in residential care.
The Church provides the local community with a ‘First Steps’ group for toddlers and ‘Baby Steps’ group for pre-toddlers and activities for children and young people on Sundays and during the week. This year we have been providing a weekly ‘Warm Welcome’ for the local community, which includes a coffee morning, a simple lunch and an afternoon ‘cuppa’. We collect food and donations for a local food-bank and distribute food parcels from the food-bank to people in the village. We also run an annual holiday club. The Minister is made available by the Church to the public, at his discretion and availability, to assist with funerals, weddings, and to visit the bereaved, the sick, and others in need. He also has access to specific funds to assist those in dire financial need. The Church supports local events designed to bring cohesion to the village by providing, for example, refreshments at village events, and, where applicable, by making the facilities of our buildings available to the public or public groups, such as Ranger Guides and the Royal British Legion.
The Church also provides funds for charitable relief and development work in developing countries via the medium of Christian aid agencies. We also support individuals engaged in providing medical care and Christian mission world-wide via charitable agencies. On top of this the Church provides its members with opportunities to take part in nationwide collections for disasters and, this year, for the victims and refugees of the war in Ukraine.
……………………………….
Miss G Clement
21 March 2023
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INDEPENDENT EXAMINER’S REPORT
TO THE TRUSTEES OF QUORN BAPTIST CHURCH
I report on the accounts of the Charity for the year ended 31 January 2023, which are set out on pages 4 to 9.
Respective Responsibilities of Trustees and Examiner
The church officers are responsible for the preparation of the accounts; consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed.
It is my responsibility to:
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examine the accounts under section 145 of the 2011 Act;
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follow the procedures laid down in the General Directions given by the Charity Commissioners under section 145(5)(b) of the 2011 Act; and
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state whether particular matters have come to our attention.
Basis of independent examiner’s statement
My examination was carried out in accordance with the 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 you as trustees concerning any 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:
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which gives me reasonable cause to believe that, in any material respect, the requirements:
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to keep proper accounting records in accordance with section 130 of the 2011 Act; and
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to prepare accounts which accord with the accounting records and comply with the accounting requirements of the 2011 Act
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have not been met; or
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to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
D R Gradon MA FCA Cound & Co LLP Chartered Accountants 1 Princes Court Royal Way Loughborough Leics LE11 5XR 21 March 2023
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QUORN BAPTIST CHURCH
RECEIPTS & PAYMENTS ACCOUNT - FOR THE YEAR ENDED 31 JANUARY 2023
| Unrestricted Restricted Total Unrestricted Restricted Income 2023 2023 2023 2022 2022 Offertories – Plate 5369 - 5369 3505 - Offertories – Regular 66451 - 66451 68649 - Gifts & Donations 3182 - 3182 1397 - New Buildings - 2500 2500 - - Warm Church - 770 770 - - Missions & Other Causes BMS - 316 316 - 209 Funeral Donation 3022 - 3022 1100 - Spurgeons - 829 829 - 372 The Bridge & Carpenter’s Arms - - - - 250 Tear Fund (General) - 559 559 - 376 Tear Fund (Ukraine) - 545 545 - - Rothley (Ukrainian Refugees) - 227 227 - - Rothley (Ukraine) - 454 454 - - Venezuelan Refugees - 125 125 - 150 Peru Children’s Trust - - - - 5 The Bible Society - - - - 267 Toybox Charity - 252 252 - - Manali Hospital - - - - 400 Love-gift for Missionaries - 1300 1300 - - Collection for Ruth Dolma - 750 750 - - Fellowship Activities 50 - 50 60 - Fellowship Fund - - - - 200 Gift Aid Tax Recovery 16228 - 16228 15338 - Interest Received 443 - 443 403 - ChariFund Dividends 1558 - 1558 1195 - _ __ _ TOTAL INCOMING RESOURCES 96303 8627 £104930 91647 2229 _ ___ |
Total 2022 3505 68649 1397 - - 209 1100 372 250 376 - - - 150 5 267 - 400 - - 60 200 15338 403 1195 __ £93876 ____ |
|---|---|
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QUORN BAPTIST CHURCH
RECEIPTS & PAYMENTS ACCOUNT
FOR THE YEAR ENDED 31 JANUARY 2023
| Unrestricted Restricted Expenditure 2023 2023 Minister’s Employment 40910 - Cleaners’ Employment 5553 - Manse Costs 3228 - Ministry Costs 150 - Chapel Utility Bills 3327 - Maintenance and Fabric 5421 - Architect’s Fees and Building Survey 1094 2500 “QBC 250” Celebrations 800 - Running Costs and Consumables 470 - Printing, Publicity & Stationery 976 - I.T. & Sound 297 - Legal and Insurance Costs 1522 - Bank Charges 245 - Subscriptions 736 - Fellowship Activities 2557 - Fellowship Fund - 700 Youth and Children’s Work 176 - Independent Examination Fee 456 - Licence 766 - Safeguarding Course 60 - Treasurer’s Course - - Prison Awareness Course 60 - Missions and Causes (see note 3) 18100 5357 __ TOTAL OUTGOING RESOURCES 86904 8557 NET INCOMING/(OUTGOING) RESOURCES 9399 70 TRANSFERS - - TOTAL FUNDS BROUGHT FORWARD 83283 7343 TOTAL FUNDS CARRIED FORWARD 92682 7413 ___ |
Total Unrestricted Restricted 2023 2022 2022 40910 38732 - 5553 4668 - 3228 3712 - 150 213 - 3327 2703 - 5421 2238 - 3594 - - 800 - - 470 464 - 976 474 - 297 562 - 1522 353 - 246 45 - 736 603 - 2557 961 - 700 - - 176 435 - 456 456 - 766 738 - 60 20 - - 60 - 60 - - 23457 19062 2041 _ __ £95462 76499 2041 _ 9469 15148 188 - (12) 12 90626 68147 7143 £100095 83283 7343 ___ |
Total 2022 38732 4668 3712 213 2703 2238 - - 464 474 562 353 45 603 961 - 435 456 738 20 60 - 21103 _ £78540 _ |
Total 2022 |
|---|---|---|---|
| 15336 - 75290 __ £90626 _____ |
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QUORN BAPTIST CHURCH
STATEMENT OF ASSETS AND LIABILITIES AS AT 31 JANUARY 2023
| CURRENT ASSETS Investments HSBC Bank Accounts Santander Bank Accounts First Steps Balance Cash in Hand Stewardship Account Debtors TOTAL CURRENT ASSETS CURRENT LIABILITIES TOTAL CURRENT LIABILITIES NET CURRENT ASSETS TOTAL NET ASSETS CHARITABLE FUNDS Restricted Designated Unrestricted |
NOTE 4 5 6 |
2023 43534 39874 14994 1574 119 - - _ £100095 _ - _ £- _ 100095 _ £100095 _ 7413 33534 59148 _ £100095 _ |
2022 38975 35587 14975 710 329 50 - _ £90626 _ - _ £- _ 90626 _ £90626 _ 7343 28975 54308 _ £90626 _ |
|---|---|---|---|
Approved by the Church Officers on 21 March 2023 and signed on their behalf by;
………..………………………
Dr D Bates Treasurer
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QUORN BAPTIST CHURCH
NOTES TO THE ACCOUNTS – FOR THE YEAR ENDED 31 JANUARY 2023
1 ACCOUNTING POLICIES
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a) These accounts have been prepared on a cash basis and include income and expenditure as cash is received or paid.
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b) The accounts have been prepared in accordance with:
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i) The Charities Act 2011.
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ii) The historic cost basis of accounting.
2 PENSION COSTS
The church 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).
From January 2012, pension provision is being made through the Defined Contribution (DC) Plan within the Scheme. In general Members pay 8% of their Pensionable Income and employers pay 6% of members’ Pensionable Income into individual pension accounts which are operated and managed on behalf of the Pension Trustee by Legal and General Life Assurance Society Limited. In addition, the employer pays a further 4% of Pensionable Income to cover Death in Service Benefits, administration costs and an associated insurance policy which provides income protection for Scheme members in the event that they are unable to work due to long-term incapacity. The income protection policy has been insured by the Baptist Union of Great Britain with Unum Limited. Members of the Basic Section pay reduced contributions of 5% of Pensionable Income, and their employers also pay a total of 5%.
Benefits in respect of service prior to 1 January 2012 are provided through the Defined Benefit (DB) Plan within the Scheme. The main benefits for pre 2012 service were a defined benefit pension of one eightieth of Final Minimum Pensionable Income for each year of Pensionable Service, together with additional pension in respect of premiums paid on Pensionable Income in excess of Minimum Pensionable Income. The Scheme, previously known as the Baptist Ministers’ Pension Fund, started in 1925, but was closed to future accrual of defined benefits on 31 December 2011.
A formal valuation of the Ministers’ Fund was performed at 31 December 2013 by a professionally qualified Actuary using the Projected Unit Method. The market value of the DB Plan assets at the valuation date was £162 million.
The valuation of the DB Plan revealed a deficit of assets compared with the value of liabilities of £84 million (equivalent to a past service funding level of 66%). As a result of the valuation, in addition to the contributions to the DC Plan set out above, it has been agreed to increase the standard rate of deficiency contributions from churches and other employers involved in the DB Plan from 11% of Pensionable Income/Minimum Pensionable income to 12% from 1 January 2017. The contributions will be based on each church’s or other employer’s position at March 2017. Some churches and other employers that were only involved in the DB Plan for a short period will pay less than 12%. As at 31 December 2018 the estimated deficit on a technical provision basis has reduced to around £50m.
The key financial assumptions underlying the valuations were as follows:
| Type of assumption | % pa |
|---|---|
| RPI price inflation assumption | 3.60 |
| CPI price inflation assumption | 2.85 |
| Minimum Pensionable Income Increases (CPI plus 1.0% pa) | 3.85 |
| Assumed investment returns | |
| - Pre retirement | 5.10 |
| - Post retirement | 3.95 |
| Deferred pension increases | |
| - Pre April 2009 | 3.60 |
| - Post April 2009 | 2.50 |
| Pension increases | |
| - Main Scheme pension Pre April 2006 | 3.40 |
| - Main Scheme pension Post April 2006 | 2.30 |
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QUORN BAPTIST CHURCH
NOTES TO THE ACCOUNTS – FOR THE YEAR ENDED 31 JANUARY 2023
2 PENSION COSTS (Continued)
As there is a large number of contributing employers participating in the Scheme, the Church is unable to identify its share of the underlying assets and liabilities of the Scheme. Accordingly, due to the nature of the Scheme, the profit and loss charge for the period represents the employer contributions payable.
Under the current Recovery Plan signed in September 2020, deficiency contributions are payable until June 2026. These contributions are broadly based on the employer’s membership at 31 December 2014 and increase annually in line with increases to Minimum Pensionable Income as defined in the Rules.
At the end of June 2022, the Baptist Pension Scheme signed an agreement with the insurance company Just Group (‘Just’) to secure members’ pension benefits under the DB Plan. This agreement is referred to as a ‘buy-in policy’. It follows a similar agreement with Just in 2019 that covered most pensions in payment at that time. The combined agreements mean that Just are now providing financial backing for all DB pensions provided through the Scheme’s DB Plan.
The cost of such policies is largely driven by financial markets and these have moved substantially in the Scheme’s favour, particularly over the course of the last few months. As a result, this transaction takes the Scheme out of a shortfall position for the first time in two decades. Although risks remain, the Baptist Union and the Trustee of the Scheme have agreed that deficit contributions from each participating employer in the DB Plan will reduce to just £1 per month from August 2022.
3 MISSIONS AND CAUSES
| Unrestricted Restricted Funds Funds 2023 2023 Venezuelan Refugees - 125 EMBA Home Mission 3600 - Baptist Mission Society 4200 316 DUF India 1600 - Spurgeons - 829 The Bridge and Carpenter’s Arms 500 - New Life - Gambia 350 - Tear Fund (General) - 559 Tear Fund (Ukraine) 300 545 Rothley Church (Ukrainian refugees) -- 227 Rothley Church (Ukraine) - 454 Peru Children’s Trust - - Japan Mission 1000 - SOAR 720 - Bulgaria Appeal 350 - BG & RE Kim 720 - Castle Donington Church 1000 - The Bible Society - - Manali Hospital - - Love-gift for Missionaries - 1300 Collection for Ruth Dolma 750 K Andrews 1200 - I Horne 1560 - S Gibb (Hope Church) 1000 - _ _ 18100 5104 _ _ |
Total Unrestricted Restricted Funds Funds Funds 2023 2022 2022 125 - 150 3600 3000 - 4516 3960 209 1600 1400 - 829 - 371 500 500 250 350 700 - 559 - 376 845 - - 227 - - 454 - - - 422 18 1000 700 - 720 600 - 350 700 - 720 1440 - 1000 2000 - - - 267 - - 400 1300 - - 750 - - 1200 1200 - 1560 1440 - 1000 1000 - _ _ _ 23204 19062 2041 _ _ _ |
Total Funds 2022 150 3000 4169 1400 371 750 700 376 - - - 440 700 600 700 1440 2000 267 400 - - 1200 1440 1000 _ £21103 _ |
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QUORN BAPTIST CHURCH
NOTES TO THE ACCOUNTS – FOR THE YEAR ENDED 31 JANUARY 2023
4
| INVESTMENTS M & G ChariFund Green Pastures |
2023 33534 10000 __ £43534 ____ |
2022 28975 10000 __ £38975 ____ |
2022 |
|---|---|---|---|
The market value of the M & G ChariFund at 31 January 2023 was £34312 (2022: £30559). Interest on the Green Pastures investment is received annually.
5 RESTRICTED FUNDS
| 31 Fellowship Fund New Buildings Warm Church BMS Birthday Scheme Children’s Musical Instrument Fund Spurgeons Tear Fund (General) Tear Fund (Ukraine) Rothley Church (Ukrainian Refugees) Rothley Church (Ukraine) Venezuelan Refugees |
As at January 2022 5565 - - - 1778 - - - - - - __ £7343 ____ |
Income - 2500 770 316 - 829 559 545 227 454 125 __ 6325 ____ |
Expenditure (700) (2500) - (316) - (829) (559) (545) (227) (454) (125) _ (6255) _ |
31 Transfer - - - - - - - - - - - __ - ____ |
As at January 2023 4865 - 770 - 1778 - - - - - - __ £7413 ____ |
|
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6 DESIGNATED FUNDS
| 31 Extraordinary Repair Fund |
As at January 2022 28975 __ £28975 ____ |
Income 1558 __ 1558 ____ |
Expenditure - _ - _ |
31 Transfer 3000 __ 3000 ____ |
As at January 2023 33534 __ 33534 ____ |
|
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The Trustees have agreed that £3000 per annum should be transferred from Unrestricted Funds into a Designated Fund for 10 years to build up a fund to cover expected repair costs to the Chapel Roof.
7 FREEHOLD PROPERTIES
The chapel building (Meeting Street, Quorn, LE12 8AQ) and the manse (23 Cradock Drive, Quorn, LE12 8ER) are owned by the East Midland Baptist Trust Company Ltd as custodian trustees for the church.