DocuSign Envelope ID: 36A34495-8195-4769-B2B5-13D7BC35D7E2 Company registration number: 08148539 Charity registration number: 1148705 ## Shenley Christian Fellowship (A company limited by share capital) Annual Report and Financial Statements for the Year Ended 31 October 2022 DocuSign Envelope ID: 36A34495-8195-4769-B2B5-13D7BC35D7E2 ## **Shenley Christian Fellowship** ## **Contents** |Reference and Administrative Details|1| |---|---| |Trustees|1| |Trustees' Report|2 to 6| |Statement of Trustees' Responsibilities|7| |Independent Examiner's Report|8 to 9| |Statement of Financial Activities|10 to 11| |Balance Sheet|12 to 13| |Notes to the Financial Statements|14 to 30| DocuSign Envelope ID: 36A34495-8195-4769-B2B5-13D7BC35D7E2 ## **Shenley Christian Fellowship** ## **Reference and Administrative Details** **Trustees** Reverend R T Dilnot Miss J A Messenger Dr M Owolabi Mr R Goodship **Charity Registration Number** 1148705 **Company Registration Number** 08148539 The charity is incorporated in England & Wales. **Principal Office** The Oak Tree Centre Wallinger Drive Shenley Brook End Milton Keynes MK5 7GZ **Accountants** KRW Accountants Ltd The Mill Pury Hill Business Park Alderton Road Towcester NN12 7LS Page 1 DocuSign Envelope ID: 36A34495-8195-4769-B2B5-13D7BC35D7E2 ## **Shenley Christian Fellowship** ## **Trustees' Report** The trustees, who are directors for the purposes of company law, present the annual report together with the financial statements of the charitable company for the year ended 31 October 2022. ## **Structure, governance and management** The charity is a charitable company limited by guarantee, incorporated in England and Wales with company number 08148539, and was established on 18th July 2012. On July 22nd 2013 the original charitable trust, Shenley Christian Fellowship Trust, charity number 1015402 (governed by the Declaration of Trust dated 3rd March 1992 and the Supplementary Declaration of Trust 1st December 1999) was officially linked with the charitable company and was initially treated as forming a part of it. The funds of Shenley Christian Fellowship Trust are shown in these accounts as a restricted fund of the Reporting Charity. The charity is governed by its Articles of Association as amended by special resolution dated 27th June 2013. The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were: Rev'd R T Dilnot Miss J A Messenger Dr M O Owolabi Mrs M Sheppard (resigned 31 January 2023) Mr R Goodship (appointed 10 January 2022) The Chair of Trustees, would meet with new Trustees to induct them into the role, taking them through the Trustee manual. The charity is led by a group of Trustees, who form the Leadership Team. The Minister is the only paid member of the Trustees and as Senior Church Leader his responsibility is to lead the church, together with the Leadership Team, following the model of congregational governance as laid out in the Constitution. The charity is a member of the Baptist Union of Great Britain. It also works alongside other churches and denominations in Milton Keynes and beyond, to further the work of the Gospel of Jesus Christ. Shenley Christian Fellowship is a group of Christian believers that have a living relationship with God through his son Jesus Christ. Our prime aim is to glorify Jesus Christ in our lives, our speech, our actions, and our worship, to be His witnesses and to make disciples. Our beliefs are biblical, in line with main line evangelical Christianity and are outlined in the statement of faith. Page 2 DocuSign Envelope ID: 36A34495-8195-4769-B2B5-13D7BC35D7E2 ## **Shenley Christian Fellowship** ## **Trustees' Report** The charity's objectives are: - The advancement of the Christian faith for the benefit of the public, - The relief of sickness and the preservation of health among people, and - The prevention or relief of poverty. In furtherance of these objectives the Trustees have established a building fund appeal to further develop the permanent base which was opened in September 2016 and from which the charity can operate for the future. The policies the charity adopted in furtherance of these objectives continue to be consistent with those adopted by the original trust (Shenley Christian Fellowship Trust), which it now embraces. The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake. The charity seeks to make grant applications to various grant making bodies for different ministry projects, to further advance the work that they seek to undertake in pastoral support, education, and the building of the second phase of the Church's building, the Oak Tree Centre, to enable further growth and development. The charity could not fulfil its objectives without the dedicated and sacrificial support of the many volunteers who are both regular attenders of the church and those who attend the ministry activities but not the church itself. These volunteers are essential to the life of the charity and without them we would not exist. ## **Achievements and performance** The charity’s activities gained greater pace as we continued to recover from the effects the pandemic had on the life and ministry of the church. Our Acorns Family Outreach ministry has continued to grow well with more families joining the group. More equipment has been bought and old equipment “retired” to keep a freshness and vibrancy to the activities on offer. There has also been more of a focus placed on activities that prepare the older children for starting pre-school, which has been greatly appreciated by the parents. As in December 2021, so we also gave out hampers to a few families who were struggling financially or were encountering challenging personal circumstances. These gifts were met with great appreciation and continued to have a significant impact in the furtherance of the charities objectives. Our other ministries that we run have continued to get back to a new normal, post pandemic: Page 3 DocuSign Envelope ID: 36A34495-8195-4769-B2B5-13D7BC35D7E2 ## **Shenley Christian Fellowship** ## **Trustees' Report** • Youth & Children’s Ministry: The Fellowship places a strong emphasis on the teaching and nurture of children and young people and has a dedicated team of leaders for children's and youth groups on a Sunday morning. Our Youth and Children’s groups on Sundays now meet on the second and fourth Sundays in the month and see a good number of young people and children in attendance. Our desire is to offer 0-18’s ministry every Sunday, but this is being restricted due to a lack of volunteers joining the teams for these ministries, which we are seeking to re-build. • Sunday Services: Services for worship, teaching and evangelism are held every Sunday morning in the Oak Tree Centre. We continue to stream our services live via our church Facebook page for those unable to make it in person. Furthermore, to aid the issues around the frequency of youth and children’s activities on a Sunday, we have adapted our Sunday program to facilitate Café Church and Family Services operating bi-monthly. The family Services idea seeks to develop a more family focused worship and teaching style which is more accessible to all ages and creates opportunities for children and young people to take part in the services themselves. This type of service is not streamed for safeguarding reasons. The Café Church idea was to create a time for people (both churched and un-churched) to get to know one another better and for people from our community, unfamiliar with church, to come for coffee and pastries in a relaxed and non-threatening environment. Both new changes have proved extremely successful. • The use of our building, the Oak Tree Centre, returned to normal this year with regular pre-pandemic hirers re-establishing themselves and new hirers taking advantage of our excellent facilities, especially Saturday party bookings. ## **Future Plans** Oak Tree Centre: The Trustees and Leadership Team remain fully supportive of the vision of the charity and in particular the vision for Phase 2 of the church’s building - the Oak Tree Centre. However, following reviews of the finances is has been decided to temporarily shelve Phase 2 until we’ve paid off more of the loans that we took out for the construction of Phase 1, and to allow further church growth which will then demonstrate a greater need for the construction of Phase 2 and the space it will afford us. Messy Church: We anticipate re-starting our Messy Church services on Sunday afternoons for young children and their parents, hopefully this coming Christmas Over 60s: We are mindful that we don’t currently have any social mid-week activities for older people, as historically the church did have. We are looking at what we can start for our over 60s folk from both the church and our local community. Youth Plans: As the number of people attending our Sunday services grows, we see a need for more space. With Phase 2 of our building project temporarily shelved, we need to look at other options to enable more space for the services itself, whilst not restricting space for our youth an d children’s ministries. Winter Night Shelter: We are eager to re-engage with the Milton Keynes Winter Night Shelter project in the coming winter, (which we were a key part of pre-pandemic). Page 4 DocuSign Envelope ID: 36A34495-8195-4769-B2B5-13D7BC35D7E2 ## **Shenley Christian Fellowship** ## **Trustees' Report** The Fellowship has adopted a policy and practice for Safeguarding in both youth and children's work and in working with vulnerable adults, and regular training continues to be given to volunteers and staff. To aid the introduction of new team members, we have joined the NSPCC online safeguarding training for prospective volunteers, which is proving extremely successful. We also continue to subscribe to the safeguarding support IT package called My Concern. Small groups for fellowship, learning and mutual support, called Life Groups, have continued throughout the year, meeting weekly or bi-weekly or monthly via zoom. The Men’s Breakfast group now meets monthly, and the Ladies Brunch has also started to be run monthly with good numbers attending both. The church employed six staff - five part time (Oak Tree Centre Manager, Bookkeeper, Acorns Families Outreach Pastor, Cleaner and Maintenance person) and one full time ordained Baptist Minister. We also employed contracted workers for publicity and website administration, gardening, and administration of phase 2 of the Oak Tree Centre building project. As shown in our Statement of Accounts, we continued to commit a significant proportion of our income, almost £13,000, to other charities which have a Christian ethos including Bridgebuilder Trust, MK Money lifeline, Baptist Home Mission, Moorlands Bible College and two missionaries working for Scripture Union. We believe we comply with the Data Protection Policy under the government's General Data Protection Regulations and are using an IT package called 'Church Suite' to assist in handling our data and communication. We continued with annual training for all church leaders in data protection issues. The trustees believe that we have achieved our objectives through the activities outlined above, though by the very nature of the task we can never say that we have finished it! ## **Financial review** General Fund of the Shenley Christian Fellowship income was £139,985 (2021: £134,981) whilst General Fund expenditure, including transfers was £142,700 (2021: £118,824). Restricted Funds were used to further the aims of the fellowship and in accordance with the restrictions placed upon the gift by the donors. The Family Fund was used to relieve poverty and hardship in specific cases for those within the fellowship. Details of the sources and use of restricted funds are detailed in the accounts. Restricted Giving income shown in these accounts includes, where appropriate, an allocation from the Gift Aid that SCF receives that is appropriate to the circumstances of the donation. Total accumulated funds at the end of the year were as follows: SCF General Funds £86,526 (2021: £83,747) and restricted funds £1,254,063 (2021: £1,186,872). In addition, restricted funds given to the charity received in the year amounted to £115,800 (2021: £141,537) and, as shown in the accounts are principally attributable to the Building Fund. However, in accordance with the direction given by the Charity Commission, all the funds of SCFT are treated as "restricted" within these accounts of the reporting charity. Page 5 DocuSign Envelope ID: 36A34495-8195-4769-B2B5-13D7BC35D7E2 ## **Shenley Christian Fellowship** ## **Trustees' Report** ## **Reserves Policy** It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained to be sufficient to meet all the financial obligations of the charity in terms of rent due for property, salary in lieu of notice for employees, and other essential expenditure. The Trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity's current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the period. The policy of the charity is to hold funds sufficient to cover three months of normal expenditure which. The annual report was approved by the trustees of the charity on 11 July 2023 and signed on its behalf by: ......................................... Reverend R T Dilnot Trustee Page 6 DocuSign Envelope ID: 36A34495-8195-4769-B2B5-13D7BC35D7E2 ## **Shenley Christian Fellowship** ## **Statement of Trustees' Responsibilities** The trustees (who are also the directors of Shenley Christian Fellowship for the purposes of company law) 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. Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the trustees are required to: - select suitable accounting policies and apply them consistently; - observe the methods and principles in the Charities SORP; - make judgements and estimates that are reasonable and prudent; - state whether applicable UK 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 charitable company will continue in business. The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company 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 11 July 2023 and signed on its behalf by: ......................................... Reverend R T Dilnot Trustee Page 7 DocuSign Envelope ID: 36A34495-8195-4769-B2B5-13D7BC35D7E2 ## **Shenley Christian Fellowship** ## **Independent Examiner's Report to the trustees of Shenley Christian Fellowship ("the Company")** I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 October 2022. ## **Responsibilities and basis of report** As the charity’s trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’). Having satisfied myself that the accounts of Shenley Christian Fellowship are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act. ## **Independent examiner’s statement** Since the Company's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of ICAEW, which is one of the listed bodies. I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe: 1. accounting records were not kept in respect of Shenley Christian Fellowship as required by section 386 of the 2006 Act; or 2. the accounts do not accord with those records; or 3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act 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; or 4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)]. 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. Page 8 DocuSign Envelope ID: 36A34495-8195-4769-B2B5-13D7BC35D7E2 ## **Shenley Christian Fellowship** ## **Independent Examiner's Report to the trustees of Shenley Christian Fellowship ("the Company")** **----- Start of picture text -----**
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...................................... Mr K R Witchell ICAEW KRW Accountants The Mill Pury Hill Business Park Alderton Road Towcester NN12 7LS 11 July 2023 Page 9 DocuSign Envelope ID: 36A34495-8195-4769-B2B5-13D7BC35D7E2 ## **Shenley Christian Fellowship** ## **Statement of Financial Activities for the Year Ended 31 October 2022 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)** |**Note**
**Income and Endowments from:**
Donations and legacies
3
Charitable activities
Investment income
4
Total income
**Expenditure on:**
Charitable activities
5
Total expenditure
Net (expenditure)/income
Transfers between funds
Net movement in funds
**Reconciliation of funds**
Total funds brought forward
Total funds carried forward
18|**Unrestricted**
**funds**
**£**
139,985
-
62
140,047
(142,700)
(142,700)
(2,653)
5,432
2,779
83,747
86,526|**Restricted**
**funds**
**£**
109,985
5,815
-
115,800
(43,177)
(43,177)
72,623
(5,432)
67,191
1,186,872
1,254,063|**Total**
**2022**
**£**
249,970
5,815
62| |---|---|---|---| ||||255,847| ||||(185,877)| ||||(185,877)| ||||69,970
-| ||||69,970
1,270,619| ||||1,340,589| The notes on pages 14 to 30 form an integral part of these financial statements. Page 10 DocuSign Envelope ID: 36A34495-8195-4769-B2B5-13D7BC35D7E2 ## **Shenley Christian Fellowship** ## **Statement of Financial Activities for the Year Ended 31 October 2022 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)** |**Note**
**Income and Endowments from:**
Donations and legacies
3
Charitable activities
Investment income
4
Total income
**Expenditure on:**
Charitable activities
5
Total expenditure
Net income
Transfers between funds
Net movement in funds
**Reconciliation of funds**
Total funds brought forward
Total funds carried forward
18|**Unrestricted**
**funds**
**£**
134,896
55
30
134,981
(118,824)
(118,824)
16,157
2,737
18,894
64,853
83,747|**Restricted**
**funds**
**£**
140,192
1,345
-
141,537
(62,120)
(62,120)
79,417
(2,737)
76,680
1,110,192
1,186,872|**Total**
**2021**
**£**
275,088
1,400
30| |---|---|---|---| ||||276,518| ||||(180,944)| ||||(180,944)| ||||95,574
-| ||||95,574
1,175,045| ||||1,270,619| All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2021 is shown in note 18. The notes on pages 14 to 30 form an integral part of these financial statements. Page 11 DocuSign Envelope ID: 36A34495-8195-4769-B2B5-13D7BC35D7E2 ## **Shenley Christian Fellowship** ## **(Registration number: 08148539) Balance Sheet as at 31 October 2022** |**Note**
**Fixed assets**
Tangible assets
11
Investments
12
**Current assets**
Debtors
13
Cash at bank and in hand
14
**Creditors: Amounts falling due within one year**
15
**Net current assets**
**Total assets less current liabilities**
**Creditors: Amounts falling due after more than one year**
16
**Net assets**
**Funds of the charity:**
**Restricted income funds**
Restricted funds
**Unrestricted income funds**
Unrestricted funds
**Total funds**
18|**2022**
**£**
1,754,363
2
1,754,365
1,123
157,997
159,120
(139,056)
20,064
1,774,429
(433,840)
1,340,589
1,254,063
86,526
1,340,589|**2021**
**£**
1,771,687
2| |---|---|---| |||1,771,689| |||1,078
142,645| |||143,723
(127,573)| |||16,150| |||1,787,839
(517,220)| |||1,270,619| |||1,186,872
83,747| |||1,270,619| For the financial year ending 31 October 2022 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies. Directors' responsibilities: - The members have not required the charity to obtain an audit of its accounts for the year in question in accordance with section 476; and - The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. The notes on pages 14 to 30 form an integral part of these financial statements. Page 12 DocuSign Envelope ID: 36A34495-8195-4769-B2B5-13D7BC35D7E2 ## **Shenley Christian Fellowship** ## **(Registration number: 08148539) Balance Sheet as at 31 October 2022** The financial statements on pages 10 to 30 were approved by the trustees, and authorised for issue on 11 July 2023 and signed on their behalf by: ......................................... Reverend R T Dilnot Trustee The notes on pages 14 to 30 form an integral part of these financial statements. Page 13 DocuSign Envelope ID: 36A34495-8195-4769-B2B5-13D7BC35D7E2 ## **Shenley Christian Fellowship** ## **Notes to the Financial Statements for the Year Ended 31 October 2022** ## **1 Charity status** The charity is limited by share capital, incorporated in England & Wales. The address of its registered office is: The Oak Tree Centre Wallinger Drive Shenley Brook End Milton Keynes MK5 7GZ These financial statements were authorised for issue by the trustees on 11 July 2023. ## **2 Accounting policies** ## **Summary of significant accounting policies and key accounting estimates** The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. ## **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)) (issued in October 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. ## **Basis of preparation** Shenley Christian Fellowship 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** At the time of approving the financial statements, the Trustees have a reaosnable expectation that the charity has adequate rersources to continue in operational existence for the foreseeable future. The financial statements have therefore been prepared on a going concern basis. ## **Exemption from preparing a cash flow statement** The charity opted to early adopt Bulletin 1 published on 2 February 2016 and have therefore not included a cash flow statement in these financial statements. ## **Income and endowments** All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of the income receivable can be measured reliably. Page 14 DocuSign Envelope ID: 36A34495-8195-4769-B2B5-13D7BC35D7E2 ## **Shenley Christian Fellowship** ## **Notes to the Financial Statements for the Year Ended 31 October 2022** ## _**Donations and legacies**_ Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance by the charity before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that these conditions will be fulfilled in the reporting period. ## _**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. Grant income from the Coronavirus Job Retention Scheme is recognised in the period to which the underlying furloughed staff costs relates. ## _**Investment income**_ Dividends are recognised once the dividend has been declared and notification has been received of the dividend due. ## **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. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs. ## _**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. ## **Governance costs** These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees’s meetings and reimbursed expenses. ## **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 £100.00 or more are initially recorded at cost. Page 15 DocuSign Envelope ID: 36A34495-8195-4769-B2B5-13D7BC35D7E2 ## **Shenley Christian Fellowship** ## **Notes to the Financial Statements for the Year Ended 31 October 2022** ## **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** 1% of building costs (once the building is Land and buildings brought into use) Interest in property no charge Equipment 25% - 33% straight line Fixtures, fittings & equipment 25% - 33% straight line ## **Business combinations** Business combinations are accounted for under the purchase method. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by the charity. All intra-group transactions, balances, income and expenses are eliminated on consolidation. In accordance with Section 35 of FRS 102, Section 19 of FRS 102 has not been applied in these financial statements in respect of business combinations effected prior to the date of transition. ## **Fixed asset investments** Fixed asset investments, other than programme related investments, are included at market value at the balance sheet date. Realised gains and losses on investments are calculated as the difference between sales proceeds and their market value at the start of the year, or their subsequent cost, and are charged or credited to the Statement of Financial Activities in the period of disposal. Unrealised gains and losses represent the movement in market values during the year and are credited or charged to the Statement of Financial Activities based on the market value at the year end. ## **Trade debtors** Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business. Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables. ## **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. Page 16 DocuSign Envelope ID: 36A34495-8195-4769-B2B5-13D7BC35D7E2 ## **Shenley Christian Fellowship** ## **Notes to the Financial Statements for the Year Ended 31 October 2022** ## **Trade creditors** Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the charity does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities. Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method. ## **Borrowings** Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Statement of Financial Activities over the period of the relevant borrowing. Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges. Borrowings are classified as current liabilities unless the charity has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date. ## **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. 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. ## **Financial instruments** ## _**Classification**_ Financial assets and financial liabilities are recognised when the charity becomes a party to the contractual provisions of the instrument. Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the charity after deducting all of its liabilities. Page 17 DocuSign Envelope ID: 36A34495-8195-4769-B2B5-13D7BC35D7E2 ## **Shenley Christian Fellowship** ## **Notes to the Financial Statements for the Year Ended 31 October 2022** ## _**Recognition and measurement**_ All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. exists a legally enforceable right to set off the recognised amounts and the charity intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously. Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial asset expire or are settled, b) the charity transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or c) the charity, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party. Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires. Page 18 DocuSign Envelope ID: 36A34495-8195-4769-B2B5-13D7BC35D7E2 ## **Shenley Christian Fellowship** ## **Notes to the Financial Statements for the Year Ended 31 October 2022** ## _**Debt instruments**_ Debt instruments which meet the following conditions are subsequently measured at amortised cost using the effective interest method: (a) The contractual return to the holder is (i) a fixed amount; (ii) a positive fixed rate or a positive variable rate; or (iii) a combination of a positive or a negative fixed rate and a positive variable rate. (b) The contract may provide for repayments of the principal or the return to the holder (but not both) to be linked to a single relevant observable index of general price inflation of the currency in which the debt instrument is denominated, provided such links are not leveraged. (c) The contract may provide for a determinable variation of the return to the holder during the life of the instrument, provided that (i) the new rate satisfies condition (a) and the variation is not contingent on future events other than (1) a change of a contractual variable rate; (2) to protect the holder against credit deterioration of the issuer; (3) changes in levies applied by a central bank or arising from changes in relevant taxation or law; or (ii) the new rate is a market rate of interest and satisfies condition (a). (d) There is no contractual provision that could, by its terms, result in the holder losing the principal amount or any interest attributable to the current period or prior periods. (e) Contractual provisions that permit the issuer to prepay a debt instrument or permit the holder to put it back to the issuer before maturity are not contingent on future events, other than to protect the holder against the credit deterioration of the issuer or a change in control of the issuer, or to protect the holder or issuer against changes in levies applied by a central bank or arising from changes in relevant taxation or law. (f) Contractual provisions may permit the extension of the term of the debt instrument, provided that the return to the holder and any other contractual provisions applicable during the extended term satisfy the conditions of paragraphs (a) to (c). Debt instruments that are classified as payable or receivable within one year on initial recognition and which meet the above conditions are measured at the undiscounted amount of the cash or other consideration expected to be paid or received, net of impairment. With the exception of some hedging instruments, other debt instruments not meeting these conditions are measured at fair value through profit or loss. Commitments to make and receive loans which meet the conditions mentioned above are measured at cost (which may be nil) less impairment. ## _**Investments**_ Investments in non-convertible preference shares and non-puttable ordinary or preference shares (where shares are publicly traded or their fair value is reliably measurable) are measured at fair value through profit or loss. Where fair value cannot be measured reliably, investments are measured at cost less impairment. Investments in subsidiaries and associates are measured at cost less impairment. For investments in subsidiaries acquired for consideration including the issue of shares qualifying for merger relief, cost is measured by reference to the nominal value of the shares issued plus fair value of other consideration. Any premium is ignored. Page 19 DocuSign Envelope ID: 36A34495-8195-4769-B2B5-13D7BC35D7E2 ## **Shenley Christian Fellowship** ## **Notes to the Financial Statements for the Year Ended 31 October 2022** ## _**Derivative financial instruments**_ The charity uses derivative financial instruments to reduce exposure to foreign exchange risk and interest rate movements. The charity does not hold or issue derivative financial instruments for speculative purposes. Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to their fair value at each reporting date. The resulting gain or loss is recognised in statement of financial activities immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in statement of financial activities depends on the nature of the hedge relationship. ## _**Fair value measurement**_ The best evidence of fair value is a quoted price for an identical asset in an active market. When quoted prices are unavailable, the price of a recent transaction for an identical asset provides evidence of fair value as long as there has not been a significant change in economic circumstances or a significant lapse of time since the transaction took place. If the market is not active and recent transactions of an identical asset on their own are not a good estimate of fair value, the fair value is estimated by using a valuation technique. ## **3 Income from donations and legacies** |Donations and legacies;
Donations from individuals
Grants, including capital grants;
Grants from other charities|**Unrestricted**
**funds**
**General**
**£**
139,985
-
139,985|**Restricted**
**funds**
**£**
109,985
-
109,985|**Total**
**2022**
**£**
249,970
-
249,970|**Total**
**2021**
**£**
271,043
4,045| |---|---|---|---|---| |||||275,088| Page 20 DocuSign Envelope ID: 36A34495-8195-4769-B2B5-13D7BC35D7E2 ## **Shenley Christian Fellowship** ## **Notes to the Financial Statements for the Year Ended 31 October 2022** ## **4 Investment income** |Interest receivable and similar income;
Interest receivable on bank deposits
**5**
**Expenditure on charitable activities**
**Note**
Spiritual & community activity
Outreach
Mission
Events
Governance costs
6
**Note**
Spiritual & community activity
Outreach
Mission
Events
Governance costs
6|**Unrestricted**
**funds**
**General**
**£**
62
**Unrestricted**
**funds**
**General**
**£**
64,925
28,984
38,448
6,511
3,832
142,700
**Unrestricted**
**funds**
**General**
**£**
54,732
25,803
29,745
6,489
2,055
118,824|**Total**
**2022**
**£**
62
**Restricted**
**funds**
**£**
15,975
5,742
2,251
-
19,209
43,177
**Restricted**
**funds**
**£**
26,139
15,467
3,734
-
16,780
62,120|**Total**
**2021**
**£**
30| |---|---|---|---| ||||**Total**
**2022**
**£**
80,900
34,726
40,699
6,511
23,041| ||||185,877| ||||**Total**
**2021**
**£**
80,871
41,270
33,479
6,489
18,835| ||||180,944| In addition to the expenditure analysed above, there are also governance costs of £23,041 (2021 - £18,835) which relate directly to charitable activities. See note 6 for further details. Page 21 DocuSign Envelope ID: 36A34495-8195-4769-B2B5-13D7BC35D7E2 ## **Shenley Christian Fellowship** ## **Notes to the Financial Statements for the Year Ended 31 October 2022** ## **6 Analysis of governance and support costs** ## **Governance costs** |Independent examiner fees
Examination of the financial
statements
Other governance costs|**Unrestricted**
**funds**
**General**
**£**
3,832
-
3,832|**Restricted**
**funds**
**£**
-
19,209
19,209|**Total**
**2022**
**£**
3,832
19,209
23,041|**Total**
**2021**
**£**
2,055
16,780| |---|---|---|---|---| |||||18,835| ## **7 Trustees remuneration and expenses** During the year the charity made the following transactions with trustees: ## **Reverend R T Dilnot** Reverend R T Dilnot received remuneration of £27,151 (2021: £26,619) during the year. During the year a Trustee, Reverend R T Dilnot, was employed as a Senior Church Leader. His salary included a housing allowance of £13,439 (2021: £13,369). Reimbursed working expenses amounted to £75 (2021: £400). Pension contributions paid on behalf of the Senior Church Leader were £6,954 (2021: £7,491). In addition the charity owns a 20% interest in the property owned by the Senior Church Leader personally which was acquired at a cost of £52,770 and is shown in these accounts in fixed assets. The Charity is entitled to a 20% share in any uplift in value between the date of purchase and the date of sale. The entitlement will only arise on the sale of the property and is secured in favour of the Charity by way of a second mortgage charge. Family members of the Senior Church Leader were employed by the Charity during the year. Remuneration received amounted to £11,754 (2021: £nil). No other trustee (or persons connected to them) received any remuneration or had expenses reimbursed during the year. Page 22 DocuSign Envelope ID: 36A34495-8195-4769-B2B5-13D7BC35D7E2 ## **Shenley Christian Fellowship** ## **Notes to the Financial Statements for the Year Ended 31 October 2022** ## **8 Staff costs** The aggregate payroll costs were as follows: |**Staff costs during the year were:**
Wages and salaries|**2022**
**£**
64,332|**2021**
**£**
64,205| |---|---|---| Included within wages and salaries are pension costs of £7,120 (2021: £7,797) 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: ||**2022**||**2021**|| |---|---|---|---|---| ||**No**||**No**|| |Total||5||5| 2 (2021 - 2) of the above employees participated in the Defined Contribution Pension Schemes. 1 (2021 - 1) of the above employees participated in the Defined Benefit Pension Schemes. No employee received emoluments of more than £60,000 during the year. ## **9 Independent examiner's remuneration** |Examination of the financial statements|**2022**
**£**
3,832|**2021**
**£**
2,055| |---|---|---| Page 23 DocuSign Envelope ID: 36A34495-8195-4769-B2B5-13D7BC35D7E2 ## **Shenley Christian Fellowship** ## **Notes to the Financial Statements for the Year Ended 31 October 2022** ## **10 Taxation** The charity is a registered charity and is therefore exempt from taxation. ## **11 Tangible fixed assets** |**Cost**
At 1 November 2021
At 31 October 2022
**Depreciation**
At 1 November 2021
Charge for the year
At 31 October 2022
**Net book value**
At 31 October 2022
At 31 October 2021|**Land and**
**buildings**
**£**
1,804,217
1,804,217
87,597
15,776
103,373
1,700,844
1,716,620|**Furniture and**
**equipment**
**£**
27,571
27,571
25,276
1,546
26,822
749
2,295|**Other tangible**
**fixed asset**
**£**
52,770
52,770
-
-
-
52,770
52,770|**Total**
**£**
1,884,558| |---|---|---|---|---| |||||1,884,558| |||||112,873
17,322| |||||130,195| |||||1,754,363| |||||1,771,685| Page 24 DocuSign Envelope ID: 36A34495-8195-4769-B2B5-13D7BC35D7E2 ## **Shenley Christian Fellowship** ## **Notes to the Financial Statements for the Year Ended 31 October 2022** ## **12 Fixed asset investments** |**12 Fixed asset investments**||||| |---|---|---|---|---| |Shares in group undertakings and participating interests
**Shares in group undertakings and participating interests**
**Cost**
At 1 November 2021
At 31 October 2022
**Net book value**
At 31 October 2022
At 31 October 2021||**2022**
**£**
2
**Subsidiary**
**undertakings**
**£**
2||**2021**
**£**
2| |||||**Total**
**£**
2
2
2
2| |||2||| |||2||| |||2||| ## **Details of undertakings** Details of the investments in which the charity holds 20% or more of the nominal value of any class of share capital are as follows: |**Undertaking**
**Country of**
**incorporation**
**Holding**
**Proportion of voting rights**
**and shares held**
**2022**
**2021**
**Subsidiary undertakings**
SCF Outreach Limited
England
Ordinary
shares
100%
100%
**13 Debtors**
**2022**
**£**
Prepayments
1,123
**14 Cash and cash equivalents**
**2022**
**£**
Cash at bank
157,997|**Principal**
**activity**
trading entity
of the charity
**2021**
**£**
1,078| |---|---| ||**2021**
**£**
142,645| Page 25 DocuSign Envelope ID: 36A34495-8195-4769-B2B5-13D7BC35D7E2 ## **Shenley Christian Fellowship** ## **Notes to the Financial Statements for the Year Ended 31 October 2022** ## **15 Creditors: amounts falling due within one year** |Bank loans
Trade creditors
Other taxation and social security
Other creditors
Accruals|**2022**
**£**
92,361
1,958
116
131
44,490
139,056|**2021**
**£**
75,577
2,853
319
90
48,734| |---|---|---| |||127,573| ## **Bank borrowings** ## **Baptists Together Loan** Baptists Together Loan is denominated in pounds sterling with a nominal interest rate of 3.35% (2021 - 3.35%). The carrying amount at year end is £462,201 (2021 - £513,797). The loan is secured by fixed charges over the charity's buildings. ## **Baptist Building Fund Loan** Baptist Building Fund Loan is denominated in pounds stering and is interest free. The carrying amoung at the year end is £60,000 (2021: £75,000). ## **Congregational Loans** Congregational Loans of £4,000 (2021: £4,000) are repayable following notice given by the individual lenders. During the year there were £Nil of repayments (2021: £7,000). ## **16 Creditors: amounts falling due after one year** |Bank loans|**2022**
**£**
433,840|**2021**
**£**
517,220| |---|---|---| ## **17 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 £Nil (2021 - £Nil). Page 26 DocuSign Envelope ID: 36A34495-8195-4769-B2B5-13D7BC35D7E2 ## **Shenley Christian Fellowship** ## **Notes to the Financial Statements for the Year Ended 31 October 2022** ## **18 Funds** |**Unrestricted funds**
General
**Restricted funds**
**Total funds**
**Unrestricted funds**
General
**Restricted funds**
**Total funds**|**Balance at 1**
**November**
**2021**
**£**
83,747
1,186,872
1,270,619
**Balance at 1**
**November**
**2020**
**£**
64,853
1,110,192
1,175,045|**Incoming**
**resources**
**£**
140,047
115,800
255,847
**Incoming**
**resources**
**£**
134,981
141,537
276,518|**Resources**
**expended**
**£**
(142,700)
(43,177)
(185,877)
**Resources**
**expended**
**£**
(118,824)
(62,120)
(180,944)|**Transfers**
**£**
5,432
(5,432)
-
**Transfers**
**£**
2,737
(2,737)
-|**Balance at**
**31 October**
**2022**
**£**
86,526
1,254,063| |---|---|---|---|---|---| ||||||1,340,589| ||||||**Balance at**
**31 October**
**2021**
**£**
83,747
1,186,872| ||||||1,270,619| Page 27 DocuSign Envelope ID: 36A34495-8195-4769-B2B5-13D7BC35D7E2 ## **Shenley Christian Fellowship** ## **Notes to the Financial Statements for the Year Ended 31 October 2022** ## **19 Pension commitments and other post-retirement benefits** ## **Defined benefit scheme** The Church is an employer participating in a pension scheme known as the Baptist Pension Scheme (the Scheme), which is administered by the Pension Trustee (Baptist Pension Trust Limited). The Scheme is a separate legal entity and the assets of the Scheme are held separately from those of the Employer and the other participating employers. For any month, each participating employer in the Scheme pays contributions as set out in the Schedule of Contributions in force at the time. The Scheme is considered to be a multi-employer scheme as described in Section 28 of FRS102. This is because it is not possible to attribute the Scheme’s assets and liabilities to specific employers and meant that contributions are accounted for as if the Scheme were a defined contribution scheme. The pension costs charged to the SoFA in the year are contributions payable towards benefits and expenses accrued in the year, plus any impact of deficiency contributions (see below). ## The Minister is eligible to join the scheme. From January 2012, pension provision is being made through the Defined Contribution (DC) Plan with 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 provide income protection for Scheme members in the event that they are unable to work due to long term incapacity. This income protection policy has been insured by the Baptist Union of Great Britain with Aviva plc. The further 4% contribution rate is reduced to 3% for Employers Contributions made to the Segregated DC Arrangements. Benefits ins respect of service prior to 12 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 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 benefit on 31 December 2011. ## Actuarial valuation at 31 December 2019 A formal valuation of the Defined Benefit (DB) Plan was performed at 31 December 2019 by a professionally qualified Actuary using the Projected Unit Method. The market value of the scheme of the DB assets at the valuation date was £298 million. The valuation of the DB Plan revealed a deficit of assets competed with the value of liabilities of £18 million (equivalent to a past service funding level of 94%). The Church and the other employers supporting the DB Plan are collectively responsible for funding the deficit. Page 28 DocuSign Envelope ID: 36A34495-8195-4769-B2B5-13D7BC35D7E2 ## **Shenley Christian Fellowship** ## **Notes to the Financial Statements for the Year Ended 31 October 2022** The key financial assumptions underlying the valuation were as follows: |RPI price inflation assumption|3.20% pa| |---|---| |CPI price inflation assumption|2.70% pa| |Minimum Pensionable Income Increases (RPI)|3.20% pa| |Assumed investment returns|| |Pre-retirement|2.95% pa| |Post retirement|2.70% pa| |Deferred pension increases|| |Pre April 2009|3.20% pa| |Post April 2009|2.50% pa| |Pensions increases|| |Main Scheme pension|2.70% pa| Post retirement mortality in accordance with 80% of the S3NFA and S3NMA tables, with allowance for future improvements in mortality rates from 2013 in line with the CMI 2019 core projections, with a long-term annual rate of improvements of 1.75% for males and 1.5% for females, with the core smoothing parameter and with additional initial mortality improvement factor A=0.5% The next actuarial valuation of the DB Plan with the Scheme is due to take place not later than as at the 31 December 2022. ## Recovery plan In addition to the contributions to the DB Plan set out above, where a valuation of the DB plan revealed a deficit the Trustee and the Council agree to a rate of deficiency contributions from churches and other employers involved in the DB Plan. Under the current Recovery Plan dated 30 September 2020, deficiency contributions are payable until 30 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. However, the Trustee and the Council agreed a 50% reduction for all deficiency contributions payable between 1 July 2020 and December 2020. ## **Defined contribution scheme** The Church also makes contributions to defined contribution pension schemes. The assets of these schemes are held separately from those of the Church in independently administered funds. The pension cost and charge represent contributions payable by the Church to these funds and amounted to £166 (2021: £306). Page 29 DocuSign Envelope ID: 36A34495-8195-4769-B2B5-13D7BC35D7E2 ## **Shenley Christian Fellowship** ## **Notes to the Financial Statements for the Year Ended 31 October 2022** ## **20 Analysis of net assets between funds** |**20 Analysis of net assets between funds**|||| |---|---|---|---| |Tangible fixed assets
Fixed asset investments
Current assets
Current liabilities
Creditors over 1 year
Total net assets
Tangible fixed assets
Fixed asset investments
Current assets
Current liabilities
Creditors over 1 year
Total net assets|**Unrestricted**
**funds**
**General**
**£**
749
2
89,708
(3,933)
-
86,526
**Unrestricted**
**funds**
**General**
**£**
2,297
2
86,439
(4,991)
-
83,747|**Restricted**
**funds**
**£**
1,753,614
-
69,412
(135,123)
(433,840)
1,254,063
**Restricted**
**funds**
**£**
1,769,390
-
57,284
(122,582)
(517,220)
1,186,872|**Total funds at**
**31 October**
**2022**
**£**
1,754,363
2
159,120
(139,056)
(433,840)| ||||1,340,589| ||||**Total funds at**
**31 October**
**2021**
**£**
1,771,687
2
143,723
(127,573)
(517,220)| ||||1,270,619| Page 30