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2021-09-30-accounts

HERNE HILL BAPTIST CHURCH Charity Registration No: 1153419

Half Moon Lane (corner of Winterbrook Road) Herne Hill, London, SE24 9HU

Report and Financial Statements for the year ended 30 September 2021

HERNE HILL BAPTIST CHUCH

CHARITY INFORMATION

FOR THE YEAR ENDED 30 SEPTEMBER 2021

Trustees Revd Rob May (Pastor)
Andrew Symonds (Treasurer) retired 21 April 2021
Elizabeth Brown (Treasurer) appointed 21 April 2021
Samantha Joseph (appointed 21 April 2021)
Lynn Kellers - retired 3 November 2020
Anne Kemp (Elder)
Lesley Morrison (Chair of Deacons)
Fiona Reid - retired 12 May 2022
Beatrice Stevens (Elder)
Custodian Trustee The London Baptist Property Board Limited
235 Shaftsbury Avenue
London
WC2H 8EP
Governing Document Trust Deed dated 12 March 1907 (revised 3 July 1994) that
governs the use of a church building.
Constitution for a Trust dated 30 January 2013, which governs
the charity's other activities.
Charity Registration Number 1153419
Principal Address Half Moon Lane (corner of Winterbrook Road)
Herne Hill
London
SE24 9HU
Independent Examiner Ajay Rajani FCIE
Stewardship
1 Lamb's Passage
London
EC1Y 8AB
Bankers Barclays Bank PLC, Peckham Rye Branch
Contents Page
Charity Information 1
Trustees' Annual Report 2-6
Independent Examiner's Report 7
Statement of Financial Activities 8
Balance Sheet 9
Notes to the Accounts 10-16
Detailed Statement of Financial Activities with Comparatives 17

Page 1

Charity Registration No: 1153419

HERNE HILL BAPTIST CHURCH

Report of the Trustees for the year ended 30 September 2021

The Trustees present their Report and the Financial Statements for the year ended 30 September 2021.

Purpose

The principal purpose of Herne Hill Baptist 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.

Herne Hill Baptist Church is a member of The Baptist Union of Great Britain and the London Baptist Association.

As a member of The Baptist Union of Great Britain the Church subscribes to the Union’s Declaration of Principle:

That our Lord and Saviour, Jesus Christ, God manifest in the flesh, is the sole and absolute authority in all matters pertaining to faith and practice, as revealed in the Holy Scriptures, and that each church has liberty, under the guidance of the Holy Spirit, to interpret and administer His laws.

That Christian Baptism is the immersion in water into the name of the Father, the Son and Holy Ghost, of those who have professed repentance towards God and faith in our Lord Jesus Christ who died for our sins according to the Scriptures, was buried and rose again on the third day.

That it is the duty of every disciple to bear personal witness to the gospel of Jesus Christ, and to take part in the evangelisation of the world.

Herne Hill Baptist Church is an ‘open membership’ church. Baptism by immersion upon personal profession of faith is the normal mode of entry into membership of the church. Persons seeking membership who have not been baptised in the manner described in the Union’s Declaration of Principle may, at the discretion of the Church Members’ Meeting, be accepted for full membership based on their own public profession of faith.

Governance and Management

The activities of the charity are governed by:

The charity registered as a charity with the Charity Commission on 15 August 2013. Prior to this date the charity was an excepted from the obligation to register because the charity is a member of the Baptist Union and its income was less than £100,000.

Meetings of church members take place from time to time. Such meetings have responsibility for the overall governance of the Church. The Managing Trustees are responsible for the day to day running of the Church’s work and witness, and the financial and legal aspects of the charity. All members are encouraged to take an appropriate part in the spiritual and practical tasks in the furtherance of the charitable objective.

Relevant matters may be submitted to the Church Meeting by the Managing Trustees for guidance, or may be raised by members in Church Meeting for further consideration by the Managing Trustees.

Page 2

HERNE HILL BAPTIST CHURCH Charity Registration No: 1153419

Report of the Trustees for the year ended 30 September 2021 (continued)

Though the Constitution permits decisions to be made at Church Meetings by appropriate majorities, the Church seeks to work by consensus wherever possible.

With effect from 2017, a Finance Team comprising Rev Rob May, Andrew Symonds and Anne Kemp was in place. Andrew stepped down in April 2021 and was replaced by Elizabeth Brown.

The Church operates systems to ensure that all people working with children and vulnerable adults are appropriately vetted with regard to the Disclosure and Barring Service.

The Church has considered the Charity Commission guidance on public benefit and is satisfied that the activities outlined in this report demonstrate that the charity is providing a benefit to the public.

Statement of Trustees’ Responsibilities

The Managing Trustees are responsible for preparing the trustees’ annual report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Charity law requires the charity trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of Herne Hill Baptist Church at the year end and of its incoming resources and resources expended during that year. In preparing these financial statements, the Managing Trustees are required to

The Managing Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of Herne Hill Baptist Church and enable them to ensure that the financial statements comply with the Charities Act 2011 and the Charities (Accounts and Reports) Regulations 2008. The Managing Trustees are also responsible for safeguarding the assets of Herne Hill Baptist Church and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Review of the year

This has been another challenging year for us as a church, but we are thankful for what we have been able to maintain, and we end the year with much of church life restored in some shape or form. We have been able to stay in contact with most people directly connected with the church as well as others. We have also said farewell to two families who have relocated to other churches. Most people have now returned on Sundays or at other times although we are still yet to return to pre-covid levels of attendance.

Due to covid restrictions most of the church programme has been either suspended or limited for the first part of the year. Sunday services were initially held on Zoom only but as restrictions eased, we were able to move first to a Zoom hybrid service and then from May to being fully back in the building.

Page 3

Charity Registration No: 1153419

HERNE HILL BAPTIST CHURCH

Report of the Trustees for the year ended 30 September 2021 (continued)

Half Moon Stitchers have now returned. Singing Mamas is also a new and regular addition to our midweek programme. The Chess Club has continued but Boppin Tots and Monkey Music will not be returning having closed down. We remain in conversation with Guy’s and St Thomas’s hospital about the possibility of their physiotherapy group returning. Most other occasional users are yet to return but we are hopeful and expect that this will change in the coming year.

Mustard Seed, our Christian Pre-School, continued to run from Monday to Friday, from 9am to 3pm. There have been a number of changes to the staff in the last 12 months, but it remains a well-run, well liked and a well-supported pre-school.

Our new children’s, youth and families’ worker has settled in well to the challenges of church life. He has been able to provide both online and in-person meetings for our young people. He also organized an afternoon activity event in Brockwell Park. Our main youth meeting continues to be on a Friday in the church building. This has been growing in numbers recently. There is also a full range of groups for children and young people on Sunday mornings. We were also able to run our Messy Church gatherings although they were slightly reduced in number. We continue to support a local primary school with help with assemblies in person and pre-recorded talks. Moonbeams, our toddler group, was finally able to return in September and has seen the numbers attending slowly increasing. Knit and Natter have continued to meet throughout the year observing covid restrictions where necessary. Again, there has been growth with this group with new people joining. Sadly, our au pairs and nannies’ group has yet to restart but we have plans in place to resume meetings in 2022.

We continued to support one church member working with the Christian broadcaster UCB until they left UCB later in the year. We have maintained our financial commitment to several organisations including Baptist World Mission, Baptist Home Mission, Spurgeon’s College and Christians Against Poverty.

During the year a quinquennial inspection of the building was carried out. We expect to begin work on the more urgent needs identified in 2022. Regular servicing and testing of the boilers, lift, lightning conductor and other appliances took place. PAT testing was carried out this year on all relevant electrical equipment. We continue to give thanks for the generous financial provision from church members that has enabled this work to take place and the church members who help practically in maintaining the building.

We have seen little change again in the church membership this year. The church continues to be overseen by the minister (Rev. Rob May) and a team of elders and deacons. Our office manager changed during the year. We were thankful that there was no gap during the transition enabling us to seamlessly move on. Our new office manager brings significant HR experience and will help strengthen our processes in this area along with building and maintaining relationships with our external users and our wider community. We still have a part-time finance officer who does the church’s book-keeping one day a week, and one other part time person who helps with the church finances.

Anne Kemp and Beatrice Stevens have continued to serve as elders of the church working alongside our four deacons, one of whom is the church treasurer. Our Minister in Training from Spurgeon’s College is now in her final year and helps in a variety of areas of church life.

Throughout a very challenging year we have remained committed to enabling the church to support one another, to remain outward looking and to flourish, to helping people find their place in the life of the church, and to support them in their journey of faith. We remain committed to participating in the life of our local community, sharing the resources that we have and seeking to work together for the common good while being a witness to the life of Christ within us despite the challenges of the pandemic. We again give thanks to God for the year that has passed and despite some continuing uncertainty, look forward to the coming year.

Page 4

HERNE HILL BAPTIST CHURCH Charity Registration No: 1153419

Report of the Trustees for the year ended 30 September 2021 (continued)

Reserves policy

The trustees consider that a reserve of at least three months operating costs would be the ideal so that the charity would be able to continue operating smoothly should income and / or expenditure, vary adversely. The General Fund balance carried forward at 30 September 2021 (£83,878) meets this the criteria.

The liquid funds of the church are all held on accounts with the bank, with as much as is practical held in deposit accounts earning interest at a currently available commercial rate. The church does not invest in securities.

Risk policy

The trustees are aware that they need to regularly update a risk management strategy comprising

Financial statements for the year

The financial results for the year, together with a summary of the accounting policies adopted, are set out in pages 8 to 17 of this document.

During the year the Managing Trustees concluded that the charity was legally responsible for the Mustard Seed Pre-School and that its income, expenditure and net assets should be included in the charity’s Statement of Financial Activities and Balance Sheet. The results reported for 2021 in these financial statements include the Pre-School and the results for 2020, which are comparatives quoted in these accounts, have been restated so that they also include the Pre-School. Further information about the restatement is provided in the notes to the accounts.

During the year income fell by £10,200 to £213,946. Pre-School income fell due to covid but the church received some large donations, which mitigated the impact. The charity continues to raise the funds which it needs to carry on its activities from within its own membership and congregation and from the Pre-School. No wider public appeal was made for funds during the year.

Expenditure increased by £15,138 to £232,792. The Church expressed its part in the life of the wider church by making grants to national and international Christian organisations and societies with Christian aims and objectives compatible with the Church’s own charitable purposes.

Overall, the charity has reported a deficit of £18,846 (2020: a surplus of £6,492) and the charity’s net assets decreased by that amount to £318,682. This comprises property with a carrying value of £174,251 and net current assets of £144,431. Net current assets includes cash of £145,146, of which £31,161 is held for restricted purposes.

Herne Hill Baptist Church is, by its nature, a voluntary organisation and no set of financial statements can do justice to all the work done in pursuit of its purposes. In addition, many hours are spent by unpaid volunteer members and associates performing many regular tasks without which Herne Hill Baptist Church would be ineffective. The financial statements do not record the value of such unpaid activities.

Page 5

HERNE HILL BAPTIST CHURCH

Charity Registration No: 1153419

Report of the Trustees for the year ended 30 September 2021 (continued)

Approved by the Managing Trustees and signed on their behalf by:

Lesley Morrison

LESLEY MORRISON

Chair of Trustees

24 July 2022 Date of approval

Page 6

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF

HERNE HILL BAPTIST CHUCH ('the Charity')

I report to the charity trustees on my examination of the accounts of the Charity for the year ended 30 September 2021 on pages 8 to 17 following, which have been prepared on the basis of the accounting policies set out on pages 10 to 11.

Responsibilities and basis of report

As the charity’s trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act').

I report in respect of my examination of the Charity’s accounts carried out under section 145 of the Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner’s statement

I have completed my examination. I confirm that no 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 the Charity as required by section 130 of the Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair' view which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Ajay Rajani

Ajay Rajani FCIE Stewardship 1 Lamb's Passage London EC1Y 8AB

Date: 25 July 2022

Page 7

HERNE HILL BAPTIST CHUCH

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 30 SEPTEMBER 2021

Note
INCOME AND ENDOWMENTS FROM:
Donations and legacies
3
Charitable activities
Mustard Seed Christian Pre-School
4
Letting of facilities for community use
4
Investments
Total income and endowments
EXPENDITURE ON:
Charitable activities
Church activities
5a
Mustard Seed Christian Pre-School
5b
Total expenditure
Net income/(expenditure)
Transfers between funds
12
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward
12		 Unrestricted
Funds
£
141,761
-
7,688
12
149,461
149,790
-
149,790
(329)
-

(329)
115,207
114,878		 Restricted
Funds
£
-
64,481
-
4
64,485
5,455
77,547
83,002
(18,517)
-
(18,517)
222,321
203,804		 Total
Funds
2021
£
141,761
64,481
7,688
16
213,946
155,245
77,547
232,792
(18,846)
-
(18,846)
337,528
318,682		 Total
Funds
2020
£
123,659
87,889
12,153
445
224,146
132,599
85,055
217,654
6,492
-
6,492
331,036
337,528

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing operations.

The notes on pages 10 to 17 form part of these accounts.

Page 8

HERNE HILL BAPTIST CHUCH

BALANCE SHEET

AS AT 30 SEPTEMBER 2021

Note
FIXED ASSETS
Tangible assets
7
CURRENT ASSETS
Debtors
8
Cash at bank and in hand
9
CREDITORS: Amounts falling
due within one year
10
Net current assets / (liabilities)
TOTAL NET ASSETS
FUND BALANCES
12
Unrestricted Funds
General funds
Designated funds
Restricted Funds		 Unrestricted
Funds
£
-
-
5,225
113,985
119,210
(4,332)
114,878
114,878
83,878
31,000
-
114,878		 Restricted
Funds
£
174,251
174,251
-
31,161
31,161
(1,608)
29,553
203,804
-
-
203,804
203,804		 Total
Funds
2021
£
174,251
174,251
5,225
145,146
150,371
(5,940)
144,431
318,682
83,878
31,000
203,804
318,682		 Total
Funds
2020
£
174,251
174,251
2,277
174,975
177,252
(13,975)
163,277
337,528
97,207
18,000
222,321
337,528

The financial statements were approved by the Board of Trustees and were signed on its behalf by:

Elizabeth Brown

Lesley Morrison

Elizabeth Brown - Trustee and Treasurer

Lesley Morrison - Chair of Trustees

Date 24 July 2022

Charity number: 1153419

The notes on pages 10 to 17 form part of these accounts.

Page 9

HERNE HILL BAPTIST CHUCH

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 30 SEPTEMBER 2021

1 Statutory Information

The charity is a Trust registered with the Charity Commission in England & Wales. The charity's registered number and principal address can be found on the Charity Information page.

2 Accounting Policies

These financial statements are prepared on a going concern basis, under the historical cost convention.

These financial statements have been prepared in accordance with the "Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) ("the Charities SORP"), with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland ("FRS 102") and with the Charities Act 2011. The charity meets the definition of a public benefit entity as set out in FRS 102.

The Charities (Accounts and Reports) Regulations 2008 (the '2008 Regulations') requires charities to prepare their accounts in accordance with 'Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005' but this accounting standard has since been withdrawn and has been replaced by the Charities SORP mentioned in the preceding paragraph. The charity has prepared these financial statements in accordance with the new Charities SORP; this departure from the 2008 Regulations is believed to be necessary for these financial statements to give a 'true and fair view'.

Previously the financial results of The Mustard Seed Christian Pre-school were excluded from the charity's Statement of Financial Activities and Balance Sheet. However the Managing Trustees noted that the charity was legally responsible for the Pre-School and had ultimate control over its activities. For these reasons the Managing Trustees concluded that, in accordance with the Charities SORP, the results for the Pre-School should be included in the charity's overall results. The results reported for 2021 in these financial statements include the Pre-School and the results for 2020, which are comparatives quoted in these accounts, have been restated so that they also include the Pre-School. Further information about the restatement is provided in note 15 'Reconciliation with previously reported funds'.

The principles adopted in the preparation of the financial statements are set out below.

a) Going concern

The trustees have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the charity to continue as a going concern. The trustees have made this assessment for a period of at least one year from the date of approval of the financial statements. In particular the trustees have considered the charity's forecasts and projections and the possible implications should projected income and / or expenditure vary unexpectedly. The trustees have concluded that there is a reasonable expectation that the charity has adequate resources to continue to operate for the foreseeable future. The charity therefore continues to adopt the going concern basis in preparing its financial statements.

b) Income

Income including investment income is recognised in the period in which the charity becomes entitled to receipt, the amount receivable can be measured with reasonable certainty, and receipt is probable. For the most part, income is generally recognised when it is received. Income is only deferred when the charity has to fulfil conditions before becoming entitled to it or where the donor has specified that the income is to be expended in a future period.

Income from donations and legacies includes recoverable gift aid, which is recognised when the related donation is received. Gift aid that has not been recovered by the balance sheet date is included as a debtor.

The charity relies on volunteers to carry out many of its activities. However, in accordance with the SORP, the value of these services has not been included in these financial statements as they cannot be reliably measured.

Income from charitable activities represents income receivable from operating the Mustard Seed Christian Pre-School and from ocassionally letting the church builing to organisations that operate to benefit the local community.

c) Expenditure

Expenditure, including irrecoverable VAT, is recognised when it is incurred or, if earlier, when a legal or constructive obligation for a payment arises provided that it is probable that settlement will be required and the amount of the obligation can be measured reliably.

The charity makes grants to other institutions and individuals to further its charitable objectives. Grants payable are recognised as constructive obligations arise, which is generally when the charity expresses a commitment to the recipient that can be measured reliably and then only to the extent that any conditions associated with the grant are outside of the control of the charity.

Governance costs, which are included in expenditure on charitable activities but are identified separately in the notes to the accounts, includes costs associated with the independent examination of the financial statements, compliance with constitutional and statutory requirements and any other expenditure incurred on the strategic management of the charity.

Page 10

HERNE HILL BAPTIST CHUCH

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 30 SEPTEMBER 2021

2 Accounting Policies continued

d) Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity. Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. Restricted funds are donations which are to be used in accordance with specific restrictions imposed by donors; they include donations received from appeals for specific activities or projects.

e) Tangible fixed assets

Items purchased or donated for the charity's own use are capitalised when the cost of purchased items, or the fair value of donated items, is more than £5,000 and the item is expected to benefit the charity over more than one accounting period. Except for the charity's properties, the charity has no other assets in use that need to be capitalised.

The properties owned by the charity comprise the church building (and related land) and a manse. These are held for the charity by the London Baptist Property Board Limited who act as custodian trustees.

The church building is situated on land leased from Dulwich Estates. The land is held under a separate Trust Deed that only allows the land to be used as a public place of worship. The building has been depreciated fully and the cost of the land is not considered to be material therefore the whole property is being carried in these accounts at a nominal value of £1. The property's insurance value is in excess of £6m.

The manse was purchased in 1998 and is included in the accounts at historic cost (being the amount paid by the charity to purchase the property). In the opinion of the Managing Trustees the residual value of the property is very high and, as it would not be material, no depreciation has been charged on this property.

f) Pension scheme arrangements

The charity operates defined contribution pension schemes for its employees. Obligations for contributions to these schemes are recognised as an expense when the liability arises. The assets of these schemes are held separately from those of the charity in independently administered funds.

g) Taxation The charity has taken advantage of the various reliefs from taxation available to charities and no tax is payable on the charity's income.

h) Financial instruments The charity's financial assets and financial liabilities all qualify as basic financial instruments, as defined by FRS102. Creditors and debtors are measured at their expected settlement value (normally the amount of cash that the charity expects to pay or receive).

i) Exemption from preparing a cashflow statement

The charity has taken advantage of an exemption conferred by the Charities SORP and has not prepared a cash flow statement.

j) Critical accounting estimates and areas of judgement The trustees do not consider that there are any material sources of estimation or uncertainty at the balance sheet date that could result in a material adjustment to the carrying values of assets and liabilities in the next reporting period.

3 Donations and legacies

Donations of cash and similar
Income tax recoverable
4
Income from charitable activities
The Mustard Seed Christian Pre-School
Local authority funding
Fees received from parents
Letting of facilities to groups that benefit the local community		 2021
£
114,457
27,304
141,761
2021
£
42,539
21,942
64,481
7,688
136,650		 2020
£
102,261
21,398
123,659
2020
£
76,687
11,202
87,889
12,153
100,042

Page 11

HERNE HILL BAPTIST CHUCH

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 30 SEPTEMBER 2021

5 Charitable expenditure

a
Expenses incurred by the church
Staff costs
Church expenses
Electricity and gas
Equipment
Training and conferences
Oher maintenance and repairs
Insurance
Manse expenses
Evangelism expenses
Worship equipment
Youth and children's work
Bank charges and interest
Visiting speakers
Church weekend away
Governance costs:
Independent examiner's fee for preparing and examining the accounts
Grants payable (note 5c)
b
Expenses incurred by The Mustard Seed Christian Pre-School
Staff costs
Premises expenses
Operational expesnes
Administrative expenses
Total expenditure		 2021
£
86,280
5,263
4,745
17,473
400
4,936
5,456
5,490
-
840
797
162
-
-
1,320
133,163
22,082
155,245
71,182
1,631
3,617
1,117
77,547
232,792		 2020
£
67,724
7,847
5,659
8,625
440
10,328
7,865
6,087
1,274
11
360
169
90
1,923
300
118,702
13,897
132,599
74,247
3,117
6,583
1,108
85,055
217,654

The fee payable to the independent examiner for preparing and examining the accounts was £1,320 (2020: £300).

c Grants payable

The charity's grants comprised:

Grants payable
The charity's grants comprised:
Grants to institutions
Baptitst Home Mission
for mission
Baptitst Word Mission
for mission
Operation Mobilisation
for mission
Spurgeons College
for mission
Tearfund
for the relief of poverty
Beacon CAP partnership
for the relief of poverty
Compassion
for the relief of poverty
Little Hearts Matter
to help those suffering from illness
Grants to individuals
Support for those engaged in, or training for, UK and overseas mission
Grants made to help relieve poverty		 2021
£
3,300
1,600
-
2,000
4,991
3,841
1,600
2,750
2,000
-
22,082		 2020
£
3,300
-
1,159
1,000
-
-
-
-
8,053
385
13,897

Page 12

HERNE HILL BAPTIST CHUCH

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 30 SEPTEMBER 2021

6 Analysis of staff costs, the cost of key management personnel and trustee remuneration

The average monthly number of employees during the year was 13 (2020: 13). Most of the charity's activities are carried out by volunteers.

No staff received salaries at a rate of more than £60,000 per annum.

The charity's key management comprise the trustees and the key staff named on the Charity Information page. Total employment benefits payable to key management for the year were as follows:

Employer
Wages &
pension
salaries
contributions
Trustees:
Revd Rob May
27,200
3,675
Anne Kemp
1,480
-		 2021
£
30,875
1,480
32,355

In the previous year Revd Rob May received employment benefits totalling £30,832.

Revd Rob May serves as a church leader and Anne Kemp helps look after the charity's finances. They received the above payments for serving in these capacities, not for serving as trustees; these payments are permitted by the charity's governing document.

In addition the charity incurred expenditure totalling £5,490 (2020: £6,087) in respect of the customary provision of accommodation to Revd Rob May, who is a trustee, so that he could better perform his duties.

7 Tangible fixed assets

Cost
At 1 October 2020
Additions
At 30 September 2021
Accumulated depreciation
At 1 October 2020
Charge for the year
At 30 September 2021
Net book value
At 30 September 2021
At 30 September 2020		 Freehold
Property
£
174,250
-
174,250
-
-
-
174,250
174,250		 Long
Leasehold
Property
£
1
-
1
-
-
-
1
1		 Total
2021
£
174,251
-
174,251
-
-
-
174,251
174,251

Further information about the charity's properties can be found in note 2e 'Tangible fixed assets'.

8 Debtors

Gift aid recoverable
Staff loans
Debtors for letting facilities
h at Bank and in Hand
Church current account
Church deposit account
Pre-School current account
Pre-School deposit account
Petty cash		 2021
£
3,104
579
1,543
5,225
2021
£
6,385
110,939
2,689
24,984
150
145,146		 2020
£
1,698
579
-
2,277
2020
£
4,022
118,427
1,339
50,481
706
174,975

9 Cash at Bank and in Hand

Page 13

HERNE HILL BAPTIST CHUCH

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 30 SEPTEMBER 2021

10 Creditors: liabilities falling due within one year

itors: liabilities falling due within one year
Taxation and social security
Other creditors
Accruals
Deferred income		 2021
£
2,906
1,713
1,320
-
5,940		 2020
£
2,970
-
300
10,705
13,975

Deferred income represent Local Authority funding received in advance by the charity's Pre-School and has been released to income in the next financial year ending on 30 September 2021.

11 Pension commitments

During the year employer’s pension contributions totalling £7,002 were payable to defined contribution personal pension schemes. At the balance sheet date pension contributions totalling £1,299 were owed.

12 Funds

During the year the movements in the charity's funds were as follows:

Designated Funds
Major Works fund
General Unrestricted Funds
Total Unrestricted Funds
Restricted Funds
Building fund
Manse fund
C Willis Housing fund
Youth Equipment fund
Mustard Seed Pre-School fund
Aggregate of funds		 Opening
balance
2021
£
18,000
97,207
115,207
1
174,250
8,636
270
39,164
222,321
337,528		 Incoming
resources
2021
£
-
149,461
149,461
-
-
-
-
64,485
64,485
213,946		 Outgoing
resources
2021
£
-
(149,790)
(149,790)
-
-
(5,455)
-
(77,547)
(83,002)
(232,792)		 Transfers
in the year
2021
£
13,000
(13,000)
-
-
-
-
-
-
-		 Closing
balance
2021
£
31,000
83,878
114,878
1
174,250
3,181
270
26,102
203,804
318,682

During the year the Managing Trustees increased the amount set aside for works to the charity's properties by making a transfer of £13,000 (2020: £6,000) from general unrestricted funds to the designated Major Works fund.

Analysis of net assets by fund

The assets and liabilities of the various funds were as follows:

Tangible fixed assets
Debtors
Cash at bank and in hand
Creditors falling due within one year		 General
Designated
funds
funds
£
£
-
-
5,225
-
82,985
31,000
(4,332)
-
83,878
31,000
Unrestricted Funds		 Restricted
funds
£
174,251
-
31,161
(1,608)
203,804		 2021
£
174,251
5,225
145,146
(5,940)
General
funds
£
-
5,225
82,985
(4,332)
83,878
318,682

Page 14

HERNE HILL BAPTIST CHUCH

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 30 SEPTEMBER 2021

12 Funds

In the previous year the movements in the charity's funds were as follows:

Designated Funds
Major Works fund
General Unrestricted Funds
Total Unrestricted Funds
Restricted Funds
Building fund
Manse fund
C Willis Housing fund
Youth Equipment fund
Mustard Seed Pre-School fund
Aggregate of funds		 Opening
balance
2020
£
12,000
108,413
120,413
1
174,250
-
270
36,102
210,623
331,036		 Incoming
resources
2020
£
-
126,029
126,029
-
-
10,000
-
88,117
98,117
224,146		 Outgoing
resources
2020
£
-
(131,235)
(131,235)
-
-
(1,364)
-
(85,055)
(86,419)
(217,654)		 Transfers
in the year
2020
£
6,000
(6,000)
-
-
-
-
-
-
-
-		 Closing
balance
2020
£
18,000
97,207
115,207
1
174,250
8,636
270
39,164
222,321
337,528

Analysis of net assets by fund

In the previous year, the assets and liabilities of the various funds were as follows:

Tangible fixed assets
Debtors
Cash at bank and in hand
Creditors falling due within one year		 General
Designated
funds
funds
£
£
-
-
2,277
-
96,216
18,000
(1,286)
-
97,207
18,000
Unrestricted Funds		 Restricted
funds
£
174,251
-
60,759
(12,689)
222,321		 2020
£
174,251
2,277
174,975
(13,975)
General
funds
£
-
2,277
96,216
(1,286)
97,207
337,528

The designated Major Works fund represents funds set aside by the Managing Trustees to help maintain the charity's properties. The restricted Building fund was created by the restriction on use placed on the church building land and the brought forward and carried forward balance on the fund represents the nominal value placed on this property by the Managing Trustees (see note 2e 'Tangible Fixed Assets').

The restricted Manse fund was created by donations received to purchase the manse and the carrying value on this fund represents the cost of the manse at the time of purchase.

The restricted C Willis Housing fund was created by donations received to help meet accommodation expenses incurred by a youth and families worker recruited in the previous year.

The restricted Youth Equipment fund was created by donations received to help purchase equipment for use in the church's youth ministry.

The restricted Mustard Seed Pre-School fund was created by parent fees and local authority funding received to help fund the preschool.

13 Transactions with related parties

During the year the charity received donations totalling £19,616 from related parties (which includes trustees, any other members of key management and anyone closely connected to them).

Except for the reimbursement of expenses incurred when acting as agent for the charity, or inucrred when undertaking employment duties, no expenes were paid to (or for) the trustees.

Except as disclosed in note 6 'Analysis of staff costs', there have been no other transactions with related parties during the year.

14 Plans for major expenditure

The charity has recently undertaken a quinquinenial inspection of the church building, which has identified some work that will need to be undertaken in the near future; this initial work is expected to cost in the region of £50,000. In addition in the relatively near future the charity will need to replace the boilers in the church building, which may cost about £25,000.

Page 15

HERNE HILL BAPTIST CHUCH

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 30 SEPTEMBER 2021

15 Reconciliation with previously reported funds

Previously the financial results of The Mustard Seed Christian Pre-school were excluded from the charity's Statement of Financial Activities and Balance Sheet. However the Managing Trustees noted that the charity was legally responsible for the Pre-School and had ultimate control over its activities. For these reasons the Managing Trustees concluded that, in accordance with the Charities SORP, the results of the Pre-School should be included in the charity's overall results. The results reported for 2021 in these financial statements include the Pre-School and the results for 2020, which are comparatives quoted in these accounts, have been restated so that they also include the Pre-School. A reconciliation with the reserves and results reported previously follows:

Reconciliation of reserves
Previously reported reserves, at 30 September
Adjustments arising from the inclusion of the Pre-School
Inclusion of cash held by Pre-School at the year-end
Inclusion of amounts owed by the Pre-School at the year end
Re-stated reserves, at 30 September		 2020
£
298,364
51,853
(1,984)
348,233		 2019
£
294,934
36,102
-
331,036
Previously reported results
Adjustments arising from inclusion of the Pre-School
Pre-School income for the year
Pre-School expenditure for the year
Re-stated results
Reconciliation of results		 2020
£
3,430
88,117
(85,055)
6,492

Page 16

HERNE HILL BAPTIST CHUCH

DETAILED STATEMENT OF FINANCIAL ACTIVITIES WITH COMPARATIVES

FOR THE YEAR ENDED 30 SEPTEMBER 2021

Note
INCOME AND ENDOWMENTS FROM:
Donations and legacies
3
Charitable activities
Mustard Seed Christian Pre-School
4
Letting of facilities for community use
4
Investments
Total income and endowments
EXPENDITURE ON:
Charitable activities:
Church activities
5a
Mustard Seed Christian Pre-School
5b
Total Expenditure
Net income/(expenditure)
Transfers between funds
12
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward
12		 General
Designated
2021
2021
£
£
141,761
-
-
-
7,688
-
12
-
149,461
-
149,790
-
-
-
149,790
-
(329)
-
(13,000)
13,000
(13,329)
13,000
97,207
18,000
83,878
31,000
Unrestricted funds		 Restricted
2021
£
-
64,481
-
4
64,485
5,455
77,547
83,002
(18,517)
-
(18,517)
222,321
203,804		 Total
2021
£
141,761
64,481
7,688
16
213,946
155,245
77,547
232,792
(18,846)
-
(18,846)
337,528
318,682		 General
Designated
2020
2020
£
£
113,659
-
-
-
12,153
-
217
126,029
-
131,235
-
-
-
131,235
-
(5,206)
-
(6,000)
6,000
(11,206)
6,000
108,413
12,000
97,207
18,000
Unrestricted funds		 Restricted
2020
£
10,000
87,889
-
228
98,117
1,364
85,055
86,419
11,698
-
11,698
210,623
222,321		 Total
2020
£
123,659
87,889
12,153
445
224,146
132,599
85,055
217,654
6,492
-
6,492
331,036
337,528

Page 17