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2021-08-31-accounts

CHRISTCHURCH ANNUAL REPORT, 2020/21

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CHRISTCHURCH CLARENDON PARK (BAPTIST/METHODIST)

ANNUAL REPORT, YEAR ENDED 31 AUGUST 2021

Administrative information

Christchurch Clarendon Park is a Baptist/Methodist Local Ecumenical Partnership (LEP), formed in 1992 by the former Clarendon Park Baptist and Clarendon Park Methodist Churches. The church meets in the premises of the former Methodist Church, which were extensively remodelled and refurbished in 1996/7.

We are members of the Leicester Trinity Methodist Circuit (23/7), the East Midland Baptist Association and the Baptist Union of Great Britain.

The address is Christchurch Clarendon Park

105a Clarendon Park Road LEICESTER LE2 3AH

Tel. (0116) 270 5369

Website: www.christchurchcp.org.uk Facebook: www.facebook.com/christchurchcp Twitter: www.twitter.com/christchurch_cp Email: enquiries@christchurchcp.org.uk

General correspondence should be addressed to the Church Secretary:

Mr Chris Whitford, 23 Brinsmead Road, Leicester LE2 3WD

Correspondence concerning the accounts should be addressed to the Church Treasurer:

Dr Lawrence Whittaker, 24 Stoneygate Court, Leicester LE2 2AH

Christchurch is Registered Charity No.1148934.

Risk Assessment and review is carried out by the Resources Team (in respect of buildings and health and safety) and by the Executive concerning the future viability of the Church.

The number of church members at the beginning and end of this period was

31 August 2020 31 August 2021
Baptist 23 22
Methodist 39 36
Joint 47 47
109 105

CHRISTCHURCH ANNUAL REPORT, 2020/21

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In addition, there are approximately a further 100 people on the community roll and a considerable number of contacts through groups which use the church premises on a regular basis.

The Managing Trustees are the members of the Executive. Ordained ministers in pastoral charge are ex officio members of the Executive. The other members are elected by the Annual Church Meeting. The Trustees have the power to co-opt up to a further four Trustees.

The current Trustees and those who served during the year ended 31 August 2021 are

Mr Mark Asher Mr Alan Stead
Miss Alison Charlesworth Mr Chris Whitford (Secretary)
Rev Debra Chidakwa Akue Dr Lawrence Whittaker (Treasurer)
Mr David Eyre Mrs Susan Williams (to 24 Nov. 2020)

Independent Examiner

Barry W Wilford, 7 Wickham Road, Oadby, Leicester LE2 5SJ

Bankers

Barclays Bank, 1–3 Haymarket Towers, Humberstone Gate, Leicester LE1 1WA National Westminster Bank, 1 Granby Street, Leicester LE1 6EJ

Aims and organisation

The purpose of Christchurch is to advance the Christian faith primarily in Clarendon Park, Knighton, Knighton Fields and Stoneygate, in the city of Leicester. In achieving its purpose, the Church engages in a range of activities both on its own and with others, as described later in this document. The agreed aims and objectives are the responsibilities of a number of Teams and Committees, especially the Executive, the Mission & Ministry Team and the Resources Team.

During the year, pastoral oversight was provided by Rev Debra Chidakwa Akue, serving her first year as our Methodist minister. A Baptist input was maintained by our Associate Baptist Minister Rev John Rackley, who conducted services and gave other input when requested.

Public benefit

The Trustees are aware of the Charity Commission’s guidance on public benefit in “The Advancement of Religion for the Public Benefit” and have regard to it in their administration of the Church. The Trustees believe that, by fulfilling their responsibility to work together with the ministers and co-operate in all matters of concern and importance for the promotion of the whole mission of the Church, pastoral, evangelistic, social and ecumenical, they provide benefit to the public by:

CHRISTCHURCH ANNUAL REPORT, 2020/21

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Safeguarding of children, young people and vulnerable adults

There were no serious incidents or other matters relating to Christchurch during the year ended 31 August 2021 which the Trustees should have brought to the attention of the Charity Commission.

Review of significant events, progress and achievements

This year has been dominated by the pandemic, with activities only slowly starting to resume in the summer. Our new minister, Revd Debra Chidakwa-Akue, began her appointment in September. Having arrived from the USA she had to quarantine for two weeks, but despite that immediately started to engage with the congregation by phone and ‘Zoom’. Once out of quarantine she began visiting on doorsteps (entering other people’s houses was still forbidden). We continue to be grateful for the work done by our Associate Baptist Minister, Revd John Rackley.

Sunday morning services continued through September and October until a new national lockdown was announced in November. Although they could have continued, Leicester was a particular ‘hot-spot’ and the decision was made to halt services again, which didn’t resume until Easter 2021. Services now are being streamed online most weeks for the benefit of those who are not able to get to church or who have concerns about mixing. Nevertheless the congregation size is noticeably smaller than before the pandemic. The Sunday afternoon services on Zoom have continued, but with smaller numbers as people have started to return to services in the church. The covenant service which is normally held in January was postponed as it was thought important that this be held onsite, not online. It is now planned to hold it in September, the beginning of the (Methodist) church year.

The ‘Keeping in Touch’ newsletter has gone out every week, and the Pastoral Links scheme has provided support to the more isolated members of the congregation. These initiatives, supporting the pastoral work of our minister, are achievements we feel we can be justly proud of.

The September Church Meeting was cancelled, like the previous one, but it was deemed important to hold the AGM in November, and this was held online as were the following meetings in March and July. It is anticipated that the next meeting in September will be onsite.

Although the membership has dropped only slightly, in many areas of church life there seem to be fewer people able to do the jobs, which has prompted an ongoing discussion of what our priorities are, and how to streamline or simplify our activities. Even so there is plenty of enthusiasm for the future. Several activities are planning to resume onsite in September and our premises will be made available once more for lettings. The last year has often felt like “just hanging on.” The pandemic is not over yet but as restrictions ease there is a sense of renewed hope for the future.

Financial review

Whereas about half of 2019/20 was affected by the Covid-19 pandemic, its effects dominated the whole of 2020/21. Our internal organisations, such as Wesley Guild and the Luncheon Club, remained essentially dormant throughout the year and outside organisations couldn’t use our rooms.

Worship services could be held with restrictions and our regular supporters continued to find means of maintaining their giving and thereby keep us going. Thank you all. Lettings income fell

CHRISTCHURCH ANNUAL REPORT, 2020/21

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by another £13,000, a loss partly alleviated by an unexpected grant of £5,000 from public funds distributed by Leicester City Council. Total receipts fell by about £15,000.

While various repairs to the fabric were necessary, there were no major new facilities to pay for and utility bills also fell, by about £5,000. There was also a significant saving in the cost of cleaning the premises, thanks largely to the high efficiency of Dawn, our new cleaner. Total payments fell by about £27,000 so that our deficit fell to £8,600.

We look forward to increased service to our community in 2021/22.

Reserves Policy

Christchurch seeks to expand its membership amongst all age groups and makes provision for the expected expenditure in maintaining its witness. In common with most UK churches, however, its membership has declined in recent decades.

The income of the church depends critically on some two dozen key supporters, any of whom could move away or otherwise cease to be with us. As the membership falls, there are fewer volunteers for the tasks of maintenance, necessitating increased expenditure on professional services. With buildings valued at £5.3m, some of which are more than a century old, there is also the risk of exceptional property expenditure, for example for a new roof or the remedy of an infestation of dry rot.

The church therefore considers it appropriate to maintain financial reserves in the range £50,000 – £100,000, for uninsurable risks, such as loss of income and exceptional property expenditure. At 31[st] August 2020 the reserves (General Fund and Legacy Fund) amounted to some £69,000. There was one Designated Fund, a Renovation Fund (£19,800) for major maintenance of the fabric.

The Reserves Policy is reviewed each spring by the Resources Team, whose recommendations are brought before the Trustees.

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CHRISTCHURCH ANNUAL REPORT, 2020/21

CHRISTCHURCH, CLARENDON PARK

RECEIPTS & PAYMENTS ACCOUNT for the year ended 31 August 2021

Notes
Receipts
Planned Giving
Loose Cash
Donations
Legacies
Interest
Tax recovered
Sundry
3
Lettings
Benevolence
Collections, etc, for external orgs
4
Sub total
Asset & Investment sales, etc
Total Receipts
Payments
Methodist Circuit
Baptist Ministry, etc
5
Charities
Benevolence
Communication
6
Recurring property expenses
7
Repairs & Renewals
8
Cleaning
Sundry
9
Passed to external organisations
10
Sub total
Asset & Investment purchases
Total Payments
Net of receipts/(payments)
Transfers between funds
Cash funds last year end
Cash funds this year end		 Unrestricted
Funds, £
Restricted
Funds, £
Total
Funds, £
£
40,186
40,186
3,547
3,547
4,160
1,440
5,600
-
-
106
106
11,907
300
12,207
6,373
90
6,463
2,086
2,086
-
-
202
202
68,366
2,032
70,398
-
-
-
68,366
2,032
70,398
50,211
50,211
4,163
4,163
3,868
3,868
100
100
2,117
2,117
9,437
9,437
5,352
5,352
1,551
1,740
3,291
167
65
232
202
202
76,866
2,107
78,973
-
-
-
76,866
2,107
78,973
(8,500)
(75)
(8,575)
(100)
100
-
88,797
550
89,347
80,197
575
80,772		 Last Year, £
£
39,716
3,168
8,232
1,000
1,002
12,941
2,771
15,626
-
674
85,129
-
85,129
53,595
4,370
4,237
117
2,682
13,725
12,624
8,914
4,777
674
105,714
-
105,714
(20,586)
-
109,933
89,347

CHRISTCHURCH ANNUAL REPORT, 2020/21

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RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31 August 2021

RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31 August 2021
£
Notes
2020-21
ASSETS and LIABILITIES as at 31 August 2021
£
ASSETS
Cash Funds
Barclays Bank
9,132
National Westminster Bank
4,897
CFB Deposit Account
31,466
Deposits with Baptist Union Corporation
35,006
Cash in Hand
272
80,772
Investment Assets
None
Land and Church Buildings
Note 1.2
606,381
Tangible Fixed Assets
Church contents, including furniture, fixtures,
Note 1.3
187,849
fittings, computers and other equipment
LIABILITIES
Current Liabilities
Roof repairs
Lettings Officer
132
Pension Scheme Liability
Note 12
18,200		 £
2019-20
£
10,468
4,002
74,577
-
301
89,347
None
606,381
179,588
1,020
21,600

NOTES TO THE FINANCIAL STATEMENTS - 31 August 2021

1 GENERAL

1.1 The basis of preparation is in accordance with the Charities Act 2011, on a Receipts and Payments basis.

There is one Designated Fund, a Renovation Fund (£19,859) for major maintenance of the fabric. The Legacy Fund (£30,643) is unrestricted but is named to indicate the accumulated value of unspent legacies received.

2 INTERNAL ORGANISATIONS

The following organisations come within the control of the Church Meeting and operate their own independent accounts. Their transactions for the year, which have been independently examined, are summarised below:

Art Group
Junior Church
Luncheon Club
Parent & Toddler Group
Wesley Guild
_Wild Honey_Project
TOTALS		 Balance
31.8.2020
Receipts
Payments
Balance
31.8.2021
23
72
47
48
830
-
-
830
706
-
128
578
1,185
-
-
1,185
223
-
20
203
786
1
-
787
3,753
73
195
3,631

CHRISTCHURCH ANNUAL REPORT, 2020/21

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RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31 August 2021

NOTES TO THE FINANCIAL STATEMENTS - 31 August 2021

3 SUNDRY INCOME
4 COLLECTIONS, ETC,
Grant, Leicester City Council
5,000
FOR EXTERNAL ORGANISATIONS
Overpayment refunds
1,283
Christian Aid
Restricted funds
90
Methodist Ministerial Training
Other
90
6,463
6 COMMUNICATION
5 BAPTIST MINISTRY, etc
Photocopier
Baptist Pension Scheme
3,250
Copyright licences
Rev John Rackley
914
Telephones, internet, Zoom
4,163
Website
Postage & stationery
Printing
7 RECURRING PROPERTY EXPENSES
Copier paper
Insurance (gross)
3,330
Electricity
1,213
Gas
2,823
8 REPAIRS AND RENEWALS
Water
20
Various roof repairs
Servicing
2,050
Repair of Worship Centre plaster
9,437
Car park barrier
Heater control unit
9 SUNDRY EXPENSES
Other
Restricted Funds
65
Preachers & organists
37
Other
130
10 SPECIAL GIFTS
232
As Note 4		 150
52
202
513
588
775
89
93
7
52
2,117
2,224
2,185
549
343
51
5,352
202

11 BAPTIST FUNDS

Various Baptist monies are held for the benefit of the church by the East Midland Baptist Trust Company (EMBTC) as Custodian Trustee, and these are set out below:-.

Balances as at 1 September 2020
Interest received less Trustee's charges
Balances as at 31 August 2021
The figures exclude accrued interest.		 Capital
Income
Total
103,789
44,658
148,447
4,453
4,453
103,789
49,111
152,900

The funds are invested and managed by Messrs Charles Stanley to achieve income returns with some capital growth on a low to medium risk basis.

The amount held on Income Account can be used for any purpose agreed by the Church Meeting. Capital Account represents the proceeds of sale of the Baptist manse in 1999 for £99,620 plus surplus on disposal of investments in which the proceeds were originally held.

CHRISTCHURCH ANNUAL REPORT, 2020/21

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RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31 August 2020

12 BAPTIST PENSION SCHEME LIABILIITY

The Church is an employer participating in the Baptist Pension Scheme (“the Scheme”), which is a separate legal entity administered by the Pension Trustee (Baptist Pension Trust Limited). The assets of the Scheme are held separately from those of the Employer and other participating employers. Baptist Ministers of Christchurch are eligible to join the Scheme.

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. Prior to this date the main benefit provided through the Defined Benefit (DB) Plan was a 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. Since 1 January 2012, benefits have been provided through a Defined Contribution (DC) Plan.

A formal valuation of the DB Plan as at 31 December 2019 was made by a professionally qualified Actuary using the Projected Unit Method. At the valuation date the market value of the DB Plan assets was £298 million, whilst the level of assets needed to pay benefits was £316m, giving a deficit of £18m (equivalent to a past service funding level of 94%). The Church and the other participating employers in the DB Plan are collectively responsible for funding this deficit. The next actuarial valuation of the DB Plan within the Scheme is due to take place not later than as at 31 December 2022.

Under the Schedule of Contributions, the church makes a monthly payment in respect of the DB scheme deficit, currently £314, which will increase in line with increases in Minimum Pensionable Income. The Schedule of Contributions foresees these contributions continuing until June 2026. The pension scheme liability shown in the Statement of Assets and Liabilities is calculated as the current rate per month multiplied by the number of months remaining in the current Schedule of Contributions, which amounted to £18,200. as at 31 August 2021.

The Church has been advised that the estimated cost for the church to buy out their Pension Scheme liabilities at 31 August 2021 was about £16,600. This only applies if the Church has meanwhile called a new Baptist Minister who is a contributing member of the Scheme.

Consequent upon the departure of the Baptist Minister from the Church in 2016, the Church could have had a cessation event under Section 75 of the Pensions Act 1995. This would make the Church liable for the proportion of the overall deficit (assessed by reference to the cost of securing benefits by the purchase of annuities) applicable to its previous Ministers who were members of the Scheme, calculated as at 31 October 2016. In order to prevent such a cessation event, the Church applied for a 'period of grace' before employing another member of the Scheme. The period of grace lasted three years, following which Rev John Rackley, a retired Baptist Minister, was appointed as Associate Minister. The Church makes a nominal contribution on behalf of John to the DC Plan, and this prevents a cessation event from occurring.

CHRISTCHURCH APtNUAL REPOR P 2020121 Pa8e 10 Statement by Independent Examiner . I am pleased to confirn] that no matter has come to my attention during my examination of the accounts of Christchurch for 2020121, which gives me cause for concern. The accounting records are kept in accordance with section 130 of the Charities Act and the subsequent aCCo￿ntS as produced comply with the accounting requirements of the Charities Act. I also confirni that there is nothing in my opinion which needs attention in order to enable a proper understanding of the accounts. I have examined the accounts under section 145 of the Charities Act and have followed the procedures laid down in the General Directions given by the Charity Commission (under the said section 145(b) of thc Charities Act. 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 given. Barry W. Wilford. I dependent Examiner Dated