## **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| |---|---| ||
1
3
4 - 5
6
7 - 9| **- 1 -** ## **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. **- 2 -** ## **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 **- 3 -** ## **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: - examine the accounts under section 145 of the 2011 Act; - follow the procedures laid down in the General Directions given by the Charity Commissioners under section 145(5)(b) of the 2011 Act; and - 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: 1. which gives me reasonable cause to believe that, in any material respect, the requirements: - to keep proper accounting records in accordance with section 130 of the 2011 Act; and - to prepare accounts which accord with the accounting records and comply with the accounting requirements of the 2011 Act - have not been met; or 2. 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 **- 4 -** ## **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
______| |---|---| **- 5 -** ## **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
_______|| **- 6 -** ## **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 **- 7 -** ## **QUORN BAPTIST CHURCH** ## **NOTES TO THE ACCOUNTS – FOR THE YEAR ENDED 31 JANUARY 2023** ## 1 ACCOUNTING POLICIES - a) These accounts have been prepared on a cash basis and include income and expenditure as cash is received or paid. - b) The accounts have been prepared in accordance with: - i) The Charities Act 2011. - 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| **- 8 -** ## **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
_______| |---|---|---| **- 9 -** ## **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
______| |---|---|---|---|---|---|---| |||||||| ## 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
______| |---|---|---|---|---|---|---| |||||||| 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.