**REGISTERED CHARITY NUMBER: 1156056** 

## **BURTON LATIMER BAPTIST CHURCH** 

**REPORT AND ACCOUNTS 31ST DECEMBER 2020** 

## **AZETS** 

Accountants 



## **BURTON LATIMER BAPTIST CHURCH** 

## **REPORT AND ACCOUNTS - 31ST DECEMBER 2020** 

**CONTENTS** Pages 1 - 6 Report of the trustees 7 Report of the independent examiner 8 Statement of financial activities 9 Balance sheet 10 - 22 Notes to the accounts 



Page 1 

## **BURTON LATIMER BAPTIST CHURCH** 

## **REPORT OF THE TRUSTEES – YEAR ENDED 31ST DECEMBER 2020** 

The trustees present their annual report and accounts of the Church for the year ended 31st December 2020. The accounts have been prepared in accordance with the accounting policies set out in the notes to the accounts and comply with the Church’s constitution, the Charities Act 2011 and 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 published in October 2019. 

## **OBJECTIVES AND ACTIVITIES FOR THE PUBLIC BENEFIT** 

The Constitution states that the principal purpose of the Church is the advancement of the Christian faith according to the principles of the Baptist denomination.  The Church may also advance education and carry out other charitable purposes in the United Kingdom and other parts of the world. 

The Baptist Union lays out the essential faith commitments of Baptists in its Declaration of Principle and describes the kind of church that we aspire to be in its 5 core values. We seek to be a prophetic, inclusive, sacrificial, missionary and worshipping community. 

We try to achieve this objective, both for our membership and the wider community in general, through activities which may include, but are not restricted to: 

- regular public worship, prayer, Bible study, preaching and teaching; 

- baptism, as defined in the Union’s Declaration of Principle; 

- the Communion of the Lord’s Supper; 

- evangelism and mission, locally, regionally, nationally and internationally; 

- the teaching, encouragement, welcome and inclusion of young people; 

- nurture and growth of Christian disciples; 

- education and training for Christian and community service; 

- giving and encouraging pastoral care; 

- supporting and encouraging charitable social action in the United Kingdom and abroad; 

- encouraging relationships with and supporting Baptists and other Christians. 

To facilitate this work, it is important that we maintain the fabric of the Church and John Yeomans Hall. 

When planning our activities, the Trustees also consider the Charity Commission guidance on public benefit, and in particular, the specific guidance on charities for the advancement of religion. 

## **Volunteers** 

The Church is heavily dependent on its membership working as volunteers in all aspects of its activities, many of which run with little or no impact on the Church’s expenditure, but nevertheless contribute substantially to the achievement of the Church’s objectives. We would like to thank all the volunteers who work so hard to make our Church the vibrant and growing community that it is. 



Page 2 

**BURTON LATIMER BAPTIST CHURCH** 

## **REPORT OF THE TRUSTEES – YEAR ENDED 31ST DECEMBER 2020** 

## **ACHIEVEMENTS AND PERFORMANCE** 

During the year, the coronavirus pandemic and the consequent measures taken by the UK Government, which necessarily involved a high degree of social disruption, had a significant effect on church life, the central moments of which, throughout 2019 until late March 2020 were the Sunday Services ,when we gathered together to pray, sing hymns and songs of praise, read and reflect on the Scriptures and share the Lord's Supper together. In this way we sought together God's grace and wisdom for our lives. 

From late March to mid October 2020, it was necessary to temporarily close the Church and provide online services and materials via the Church web site and social media. We are pleased to report that the Church was reopened on 18th October for our Harvest Festival Service, although, for those who need to shield or can’t be with us for other reasons, we will continue to provide our online materials. 

Please feel free to join us for any of our services. We are intentionally inclusive and we welcome everyone. Our website includes an ‘I’m New’ section which we hope will answer many of your questions and you will also find contact details for our Minister and office. 

Prior to the pandemic, services took place each Sunday at both 10.45 am and 6.00 pm and there were also occasional services at other times. At present, we are re-opening only for the Sunday morning service. Details of future services will be advertised on the Church Notice Board and the website at blbaptistchurch.org.uk. The Junior Church and Crèche run alongside the Family Worship in the morning. 

We have a membership of around eighty, although the wider church family is larger, and our programme of weekly activities goes from children's and youth activities to groups for older folk and from bible studies to social events. These activities benefit both Church members and the wider community by providing fellowship, encouragement and support, and contribute to the ethos of the Church. 

The events set out below, and other activities, took place throughout 2019, but, in response to the pandemic, most have been temporarily suspended since late March 2020 until further notice.  The Mother & Toddler Group recommenced in September 2021 and we will publicise our plans to recommence other activities as soon as circumstances allow. 

- **Chair based Exercise** 

Sessions with a qualified instructor are held on Friday mornings. 

- **Choir** 

The choir meets every Friday evening in the Lounge next to the Church. 

- **Footsteps** 

A new under 5s faith-based group, which started in September 2019, meeting in the Assembly Room every Monday morning during term time. 

- **Ladies Night** 

Ladies Night is held on the first Monday of each month.  We have a guest speaker and discuss a variety of topics. 

- **Luncheon Club** 

Those who are retired or who live alone are invited to join us for lunch on every second Tuesday of the month in the John Yeomans Hall. 

- **Men’s Breakfast** 

We meet once a month (usually the third Saturday) in the assembly room for an informal breakfast and to hear a talk by a local Christian speaker. 

- **Mother & Toddler Group** 

The group meets in John Yeomans Hall each Thursday during term time and is open to all who have care of pre-school children, giving them an opportunity to meet and make new friends and for the children to learn to mix and share. 



Page 3 

## **BURTON LATIMER BAPTIST CHURCH** 

## **REPORT OF THE TRUSTEES – YEAR ENDED 31ST DECEMBER 2020** 

## **ACHIEVEMENTS AND PERFORMANCE continued** 

- **Music Group** 

The Sunday morning worship music group usually leads 2 – 3 songs most weeks and take the whole service every month or so. We currently use guitars, cello, clarinet and of course singers. We meet most Thursdays for about an hour to rehearse. 

## • **Table Tennis Club** 

Over the years the club has grown in numbers to more than 30 members and is represented by 7 teams playing in all of the Kettering Leagues. 

We have an over 50’s group (numbering 20+) meeting each Monday through the year, and occasionally on a Tuesday afternoon. There is also a junior section for beginner coaching. 

- **Junior Church** 

The Junior Church meets every Sunday morning after the first part of the church service (we start off together in church and then the children leave for Junior Church later). 

There are several parts to Junior Church: 

Crèche      (0 – 4 year olds) in the Crèche Room Primary     (4 – 7 year olds) in the Assembly Room Juniors      (7 – 11 year olds) in the Assembly Room Seniors      (11years and over) in the Assembly Room 

We have fun playing games, singing Bible songs, making crafts, doing worksheets and learning about God and Jesus through different stories each week. 

We generally follow the Scripture Union ‘Light’ series for our activities and tailor these to the needs and numbers of children we have. 

All of the Junior Church leaders and helpers are subject to a Disclosure and Barring check and have also completed and agreed to the Church’s "Safe to Grow” policy, to safeguard the children about and how much more it means to us because of Jesus.  This also applies to ALL activities undertaken by the Church where children and vulnerable adults are present. 

Fund-raising efforts play an important part in many of the activities and other events organised by the Church.  We also donate a percentage of our income to BMS to support both their Home and World Mission. 

We support a number of Mission Workers through the BMS Church Partners scheme, and, particularly in the last few years, we have supported the work in Chad at the Guinebor II (G II) Hospital. Those supported include: 

- Brian and Jackie Chilvers - Chad 

- Claire Bedford - Chad 

- Jane Edwards – Mozambique 

The Church continues to support other Baptist churches in the UK, both by the provision of direct grants and through our giving to the Baptist Union Home Mission fund, and, when circumstances allow, Church members participate in events throughout the year in order to raise funds for a wide range of both local and national charities. 



Page 4 

## **BURTON LATIMER BAPTIST CHURCH** 

## **REPORT OF THE TRUSTEES – YEAR ENDED 31ST DECEMBER 2020** 

## **ACHIEVEMENTS AND PERFORMANCE continued** 

The Church web site and newsletter keep members and the wider community informed about Church life and our programme of activities. As well as the latest news and details of upcoming events, the web site includes blogs, sermons, prayers and verses, which we hope, especially during the pandemic, will help all those who use the web site in their journey of faith. 

## **FINANCIAL REVIEW** 

During 2020, the Church continued to raise most of the funds which it needs to carry on its activities from income generated by investments owned by the Church and from within its own membership and congregation, although as explained below, the level of income raised has been adversely affected by the pandemic. 

Unrestricted donations and legacies were £24,277 for the year compared to £34,986 for 2019. The temporary suspension of Church activities in 2020 due to the pandemic has also resulted in a reduction in income from activities. Income from investments decreased slightly to £86,673 (2019: £87,837). Following the acquisition of an investment property in 2019, investment income for 2020 includes rent receivable of £16,860 (2019: £110). 

Total expenditure decreased by £40,322 to £153,755. 

Investment management costs were £23,261 (2019: £20,802). The 2020 costs include rent collection and property expenses of £3,036. 

The most significant expenses related to the use and maintenance of the Church buildings for the activities described above, and to the Minister of the Church, who leads and co-ordinates the church’s activities including the Sunday Services, provides pastoral care for the congregation and other people, and equips and encourages the membership in their life, Christian witness and service. 

Ministry and Mission costs decreased by £7,309 to £48,709. The Church’s estimated liability at 31[st] December 2020, in respect of the Baptist Pension Scheme deficit, was reduced by £4,828, activity-related costs decreased, whilst staff costs for 2020 increased by around £5,200. With reference to note 2 to the accounts, donations and legacies income includes grants of £4,696 received in respect of the coronavirus job retention scheme. 

Establishment costs for 2020 were £70,985 compared to £76,391 for 2019. In 2020, £12,735 was spent on fire door works in the Church and John Yeomans Hall. In 2019, costs of £6,480 were incurred in connection with the fitting of two replacement lanterns to the Church roof, the cost of external redecoration at John Yeomans Hall was £2,225 and £4,800 was spent on paving works and a slab base. 

The Church expressed its part in the life of the wider church and community by making grants to national and international Christian organisations and other charitable organisations with objectives compatible with the church’s own charitable purpose. Grants and donations from unrestricted funds were £8,175 (2019: £33,621). Overall, the cost of making grants and donations, including grants paid from restricted funds and allocated support and governance costs, was £10,800 (2019: £40,866). An analysis of grants and donations is provided in note 8 to the accounts. 

Net expenditure for the year, before gains on investments, totalled £31,894 (2019:  net expenditure £46,042).  Net income after gains on investment assets was £123,656 (2019: net income £288,977). 



Page 5 

## **BURTON LATIMER BAPTIST CHURCH** 

## **REPORT OF THE TRUSTEES – YEAR ENDED 31ST DECEMBER 2020** 

## **Reserves policy** 

General reserves freely available at 31st December 2020 were £702,250 (2019: £694,600).  The free reserves comprise unrestricted general funds not invested in tangible fixed assets.  Free reserves invested at 31st December 2020 were £684,876 (2019: £713,789).  These investments are classified as fixed assets and are held to ensure continuity in the role of the Church in the lives of its members and the wider community.  Free reserves not invested totalled £17,374 (2019: £Nil). 

The trustees have adopted a policy of maintaining free reserves not earmarked for long term investment at a level which is equivalent to two months of usual expenditure.  This is estimated to equate to approximately £25,000 to £30,000 at 31st December 2020.  At this level, the trustees consider that, in the event of a significant decrease in income, they would be able, in the short term, to continue to meet the Church’s obligations, whilst considering how income would be replaced or activities changed. Although free reserves were below the target level at the year end, in the opinion of the trustees, the liquidity of the listed investments held in general funds will enable the Church to support its current activities for the foreseeable future. 

## **Investment policy** 

The trustees have considered the most appropriate policy for investing funds, and based on advice from the Church’s investment manager, consider that specialised funds designed for the charity sector meet their requirement to generate both income and capital growth with a low level of risk. Income from the investments for the year was £69,789 (2019: £87,811).  After an initial significant fall in the value of the investments at the start of the pandemic, market conditions improved over the year, resulting in unrealised investment gains of £126,780 (2019: gains £290,708). Last year, the trustees decided to diversify investments by using monies from the specialised funds to acquire a freehold residential property in Burton Latimer. House price indices indicate that there has been a steady growth in residential property prices in the area. As a result, an unrealised gain of £28,603 has been recognised in the accounts in respect of the increase in value of the property. 

## **STRUCTURE, GOVERNANCE AND MANAGEMENT** 

The Church is governed by a Constitution adopted on 28th January 2009. 

The criteria for Church membership are set out in the constitution and principally include accepting the Beliefs of the Church, meeting the Church’s qualification on Baptism and committing oneself to serving Christ within the Church and beyond.  All members are encouraged to take an appropriate part in the spiritual and practical tasks involved in the furtherance of the charitable objective. Ordinary Church Members’ meetings are held at regular intervals on not less than four occasions in any calendar year and have responsibility for the overall policy of the church. Special Church Members’ meetings shall be convened when necessary to consider matters such as the appointment of a minister, matters relating to the purchase, sale or redevelopment of Church property, or matters considered by the Trustees to be of sufficient importance to require such a meeting. 

In accordance with the Constitution, the members appoint Trustees from among the Church Members, who together with the Ministers, Church Secretary and Treasurer (who are also appointed by the Members), and collectively known as the Diaconate, are responsible for the day to day running of the church’s work and witness, and the financial and legal aspects of the charity.   The Trustees’ term of appointment is normally three years, following which they are eligible for re-appointment. Relevant matters may be submitted to the Church meeting by the Trustees for guidance, or may be raised by members in Church meeting for further consideration by the Trustees. Though the Constitution permits decisions to be made at Church meetings by appropriate majorities, the Church seeks to work by consensus wherever possible. 

The Church is a member of The Baptist Union of Great Britain (Baptist Union), The Central Baptist Association, and The Kettering & District Fellowship of Baptist Churches.  The Church will normally promote, encourage, support and advance the work of the Baptist Union and BMS World Mission through prayer, through financial contributions and, where appropriate, by making personnel available from the membership of the Church. When it is able, the Church will also support local Baptist and Ecumenical gatherings. 



Page 6 

## **BURTON LATIMER BAPTIST CHURCH** 

## **REPORT OF THE TRUSTEES – YEAR ENDED 31ST DECEMBER 2020** 

## **REFERENCE AND ADMINISTRATIVE INFORMATION** 

**Charity name** Burton Latimer Baptist Church 

**Charity registration number** 1156056 

**Church address** 

Meeting Lane **,** Burton Latimer, Kettering, Northants, NN15 5LS 

**Website** 

www.blbaptistchurch.org.uk 

## **Trustees** 

Revd Mark Welch (Minister) Mr Nigel Padget (Chair) Mr Chris Mills (Treasurer) (resigned 24th June 2021) Mrs Lorraine Lovell (resigned 22[nd] January 2020) Mr Mark McInnes (resigned 6[th] September 2021) Mr Michael Roche (deceased 2[nd] January 2021) Mrs Joyce Yeomans Mr John Paul Mrs Ruth Groome 

**Bankers** 

Barclays Bank PLC, 8 Market Place, Kettering, Northants, NN16 OAX 

## **Investment managers** 

Aberdeen Standard Capital, Bow Bells House, I Bread Street, London, EC4M 9HH 

**Independent examiner** 

Mrs A P Armer, Azets Audit Services, Thorpe House, 93 Headlands, Kettering Northants, NN15 6BL 

Approved by the Board of Trustees on 19[th] October 2021 

N Padget - Trustee 

On behalf of the Board of Trustees 



Page 7 

## **INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF BURTON LATIMER BAPTIST CHURCH** 

I report to the charity trustees on my examination of the accounts of Burton Latimer Baptist Church for the year ended 31st December 2020 which are set out on pages 8 to 22. 

## **RESPONSIBILITIES AND BASIS OF REPORT** 

As the charity’s trustees 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** 

Your attention is drawn to the fact that the charity has prepared the accounts in accordance with 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) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has been withdrawn. I understand that this has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015. 

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect: 

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. 

A P ARMER FCA Institute of Chartered Accountants in England and Wales Azets Audit Services Thorpe House 93 Headlands KETTERING NN15 6BL 

Date: 20[th] October 2021 

Page 8 



## **BURTON LATIMER BAPTIST CHURCH STATEMENT OF FINANCIAL ACTIVITIES YEAR ENDED 31ST DECEMBER 2020** 

|Total<br>Notes<br>Unrestricted<br>Restricted<br>Funds<br> <br>Funds<br>Funds<br>2020<br>**INCOME AND ENDOWMENTS**<br>Donations and legacies<br>2<br>24,277<br>510<br>24,787<br>Income from charitable activities<br>3<br>2,065<br>-<br>2,065<br>Other trading activities<br>4<br>8,336<br>-<br>8,336<br>Investment income<br>5<br>86,671<br>2<br>86,673<br> <br>**TOTAL INCOME**<br>£121,349<br>£512<br>£121,861<br>  <br>**EXPENDITURE**<br>Costs of raising funds<br>Investment management costs<br>23,261<br>-<br>23,261<br>Expenditure on charitable activities<br>7<br>129,924<br>570<br>130,494<br> <br>**TOTAL EXPENDITURE**<br>£153,185<br>£570<br>£153,755<br>  <br>**NET EXPENDITURE**<br>**BEFORE GAINS ON INVESTMENTS**<br>(31,836)<br>(58)<br>(31,894)<br>Unrealised gains on investment assets<br>32,899<br>122,484<br>155,383<br>Realised gains on investment assets<br>167<br>-<br>167<br> <br>**NET INCOME**<br>**AND NET MOVEMENT IN FUNDS**<br>1,230<br>122,426<br>123,656<br>**RECONCILIATION OF FUNDS**<br>Total funds brought forward<br>2,480,917<br>2,216,928<br>4,697,845<br> <br>**TOTAL FUNDS CARRIED FORWARD**<br>£2,482,147<br>£2,339,354<br>£4,821,501<br>|||
|---|---|---|
||||
||||
||||



The statement of financial activities includes all gains and losses recognised in the year.  All income and expenditure derive from continuing activities. 

Notes on pages 10 to 22 form part of these accounts. 



Page 9 

**BURTON LATIMER BAPTIST CHURCH** 

## **BALANCE SHEET - YEAR ENDED 31ST DECEMBER 2020** 

|||2020||2019||
|---|---|---|---|---|---|
||Notes|||||
|**FIXED ASSETS**||||||
|Tangible assets|10||1,779,897||1,786,317|
|Investments|11||3,014,308||2,920,263|
||||4,794,205||4,706,580|
|**CURRENT ASSETS**||||||
|Debtors|12|8,873||7,776||
|Cash at bank and in hand|13|53,664||60,653<br>||
|**TOTAL CURRENT ASSETS**||62,537||68,429||
|**LIABILITIES**||||||
|Creditors: Amounts falling due||||||
|within one year|14|(20,961)||(55,604)<br>||
|**NET CURRENT ASSETS**|||41,576||12,825|
|**TOTAL ASSETS LESS**||||||
|**CURRENT LIABILITIES**|||4,835,781||4,719,405|
|**PROVISION FOR LIABILITIES**||||||
|Defined Benefit pension scheme||||||
|liability|15||(14,280)||(21,560)|
|**NET ASSETS**||£4,821,501||£4,697,845<br>||
|<br>**THE FUNDS OF THE CHARITY**||||||
|Restricted income funds|16||2,339,354||2,216,928|
|Unrestricted income funds||||||
|General funds|16||2,481,689||2,479,959|
|Designated funds|16||458||958|
|**TOTAL CHARITY FUNDS**||£4,821,501||£4,697,845||



Approved by the Trustees on 19[th] October 2021 and signed on its behalf by:- 

M WELCH -   TRUSTEE 

N PADGET - TRUSTEE 

Notes on pages 10 to 22 form part of these accounts. 



Page 10 

**BURTON LATIMER BAPTIST CHURCH** 

## **NOTES TO THE ACCOUNTS - 31ST DECEMBER 2020** 

## 1. **ACCOUNTING POLICIES** 

## a) **Basis of preparation** 

- The accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes to these accounts. The accounts 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 issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011 and UK Generally Accepted Practice. 

The Church constitutes a public benefit entity as defined by FRS 102.The accounts are presented in sterling (£) which is the functional currency of the charity and rounded to the nearest £. The Church’s accounts present information about it as an individual undertaking. 

The trustees consider that there are no material uncertainties about the Church’s ability to continue as a going concern. At the end of the reporting period, the most significant areas of uncertainty that affect the carrying value of fixed asset investments held by the Church, as disclosed in note 11,are the level of investment return and the performance of investment markets. In addition, the Church has an obligation to pay a deficit funding arrangement in respect of a multi-employer defined benefit pension scheme. The present value of the obligation depends on a number of factors including the RPI rate and the discount rate on corporate bonds. The trustees estimated these factors in determining the pension obligation in the balance sheet. 

The accounts have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following 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 issued in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn. 

## b) **Judgements and key sources of estimation uncertainty** 

In applying the Church’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying value of assets and liabilities.  Although actual results may differ from estimates of this type, in the opinion of the trustees, this is unlikely to result in material adjustments to the carrying value of assets and liabilities. 

## c) **Funds structure** 

General funds are unrestricted income funds that are available for use at the Trustees’ discretion in furtherance of the objectives of the Church. Designated funds are unrestricted funds set aside by the Trustees for a particular purpose. Restricted 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. 

## d) **Income recognition** 

Donations are accounted for gross when received. 

Voluntary income, including grants, is recognised where there is entitlement, certainty of receipt and the amount can be measured with sufficient reliability. Investment income is included in the accounts in the year in which it is receivable. Incoming resources from charitable activities are accounted for when earned. 

Pecuniary legacies are recognised when notification is received.  Residuary legacies are recognised when a reliable estimate of the income can be made, which is usually when a payment is agreed with the executors. 

## e) **Expenditure recognition** 

Resources expended are stated gross in the accounts, are accounted for on an accruals basis and include attributable VAT which cannot be recovered.  The Church does not make formal appeals for funds. Expenditure on fund raising and publicity costs is therefore not material. 



Page 11 

**BURTON LATIMER BAPTIST CHURCH** 

## **NOTES TO THE ACCOUNTS - 31ST DECEMBER 2020** 

1. **ACCOUNTING POLICIES** (Cont) 

- e) **Expenditure recognition** (Cont) 

   - Charitable expenditure comprises those costs incurred by the church in the delivery of its activities, including grants and donations payable, which are included in the Statement of Financial Activities on an accruals basis and when approved by the Trustees. 

The Church makes grants to other organisations whose charitable objectives complement its work.  Grants are accounted for when a valid expectation on the beneficiary’s part that the Church will discharge its responsibilities is created, either by specific communication with the beneficiary or by establishing a pattern of practice, or when the grant is paid, whichever is earlier. 

## f) **Government grants** 

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received. 

A grant that specifies performance conditions is recognised in income when the performance conditions are met.  Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability. 

## g) **Allocation of support and governance costs** 

Governance costs represent direct expenditure on the governance of the Church. These costs include costs related to independent examination and accountancy.  Most of the management is carried out without charge by volunteers.  This intangible cost is not included in the Statement of Financial Activities since there is no measurable cost to the volunteers for their service. 

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. These costs include office and administration costs 

The bases on which support and governance costs have been allocated are set out in the notes to the accounts. 

- h) **Operating leases** 

Rentals paid under operating leases are included in the Statement of Financial Activities on a straight line basis over the period of the lease. 

## i) **Tangible fixed assets** 

The Church premises are included in the balance sheet at insurance values because reliable cost information is not available, and would incur significant costs which would be onerous compared with the additional benefit gains by the user of the accounts.The Manse premises are stated at insurance value.  Furniture and equipment in the Church premises are shown at insurance value as at 31st December 2008 with additions since that date shown at cost. 

## j) **Depreciation** 

Assets have been introduced into the accounts at their insurance valuation where no historical cost information is available. 

Depreciation has not been charged on the Church or Manse premises because they are fully maintained on a regular basis.  Accordingly, the trustees consider the lives of these assets to be so long and their residual value so high, that their depreciation is insignificant. 

Since 1st January 2009 depreciation on other fixed assets has been calculated to write off the cost on a straight line basis over their expected useful life at the following rates: 

Furniture and fittings 10% Computers or equipment 25% and 33% 

Prior to 1st January 2009 no depreciation was charged on other fixed assets.  Capital expenditure under £1,000 is written off in the year of acquisition. 



Page 12 

**BURTON LATIMER BAPTIST CHURCH** 

## **NOTES TO THE ACCOUNTS - 31ST DECEMBER 2020** 

## 1. **ACCOUNTING POLICIES** (Cont) 

## k) **Fixed asset investments** 

Listed investments are stated at market value and the investment property at fair value estimated by the trustees.  All other investment assets are shown at cost. 

All gains and losses on investments are taken to the statement of financial activities as they arise.  Realised gains on investments are calculated as the difference between sales proceeds and opening market value (or cost if purchased in the year).  Unrealised gains and losses are calculated as the difference between the market value at the year end and opening market value (or cost if purchased in the year). 

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in the statement of financial activities. Depreciation is not provided on investment property measured at fair value. 

## l) **Debtors** 

Debtors are recognised at the settlement amount due after any trade discount offered. Accrued income is recognized in the period to which it relates. Prepayments are valued at the amount prepaid net of any trade discounts due. 

## m) **Creditors** 

Creditors are recognised where the Church has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably.  Creditors are normally recognised at their settlement amount. 

## n) **Employee benefits** 

The Church is an employer participating in a pension scheme known as the Baptist Pension Scheme. 

Since January 2012, pension provision has been made through a defined contribution plan. A defined contribution plan is a pension plan under which the Church pays fixed contributions into a separate entity. Once the contributions have been paid the charity has no further payment obligations. The contributions are recognised as an expense when they are due. Any amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held separately from the charity in independently administered fund. Prior to 2012 pension provision was made through a multi-employer defined benefit pension plan. Where it is not possible for the Church to obtain sufficient information to enable it to account for a plan as a defined benefit plan, it accounts for the plan as a defined contribution plan. 

Where the plan is in deficit and where the Church has agreed with the plan, to participate in a deficit funding arrangement, the Church recognises a liability for this obligation. The amount recognised is the net present value of the contributions payable under the agreement that relate to the deficit. This amount is expensed in the Statement of Financial Activities. The unwinding of the discount is recognised as a finance cost. 

## 2. **DONATIONS AND LEGACIES** 

|Offerings and donations<br>Tax refunds<br>Legacy income<br>Coronavirus Job Retention Scheme<br>Grants|Unrestricted<br>19,581<br>-<br>-<br>4,696<br>£ 24,277|Total<br>Total<br>Restricted<br>2020<br>2019<br>510<br>20,091<br>32,332<br>-<br>-<br>5,052<br>-<br>-<br>1,000<br>-<br>4,696<br>-<br>£ 510<br>£ 24,787<br>£ 38,384<br>|
|---|---|---|





Page 13 

**BURTON LATIMER BAPTIST CHURCH** 

## **NOTES TO THE ACCOUNTS - 31ST DECEMBER 2020** 

## 2. **DONATIONS AND LEGACIES** (Cont) 

In 2019, of the total income of £38,384, £34,986 was attributable to unrestricted funds and £3,398 was attributable to restricted funds. 

## 3. **INCOME FROM CHARITABLE ACTIVITIES** 

|Rents<br>Junior Church<br>Ladies Night<br>Mother & Toddler<br>Newsletter<br>Table tennis<br>Not So Young Ones<br> <br>Catering<br>Holiday Club<br>|Unrestricted<br>217<br>106<br>52<br>566<br>61<br>171<br>44<br>-<br>848<br>£ 2,065|Restricted<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>£      -<br>||
|---|---|---|---|
|||||



In 2019, the income from charitable activities of £9,057 was attributable to unrestricted funds. 

## 4. **OTHER TRADING ACTIVITIES** 

|**HER TRADING ACTIVITIES**||||
|---|---|---|---|
|Rents and miscellaneous income<br>Solar panels feed in tariff|Unrestricted<br>2,441<br>5,895<br>£ 8,336|Restricted<br>-<br>-<br>£        -<br>||
|||||



In 2019, the income from other trading activities of £12,757 was attributable to unrestricted funds. 

## 5. **INVESTMENT INCOME** 

|Bank and similar interest<br>Interest from cash deposits with brokers<br>Income from listed investments<br>Rental income|Unrestricted<br>22<br> <br>16<br>69,773<br>16,860<br>£ 86,671|Total<br>Restricted<br>2020<br>2<br>24<br>-<br>16<br>-<br>69,773<br>-<br>16,860<br>£ 2<br>£ 86,673<br>||
|---|---|---|---|
|||||



In 2019, of the total investment income of £87,837, £87,831 was attributable to unrestricted funds and £6 was attributable to restricted funds. 



Page 14 

**BURTON LATIMER BAPTIST CHURCH** 

## **NOTES TO THE ACCOUNTS - 31ST DECEMBER 2020** 

## 6. **ALLOCATION OF GOVERNANCE AND OTHER SUPPORT COSTS** 

Support costs are analysed below: 

|Staff costs<br>**Governance costs**<br>Independent examiner’s remuneration<br>Independent examination fee<br>Statutory report and accounts<br>Bookkeeping, payroll etc.|Governance<br>Other<br>related<br>Support costs <br>£        -<br>£ 17,088<br>£<br>|Total<br>allocated<br> <br>2020<br> <br>17,088<br>£<br>2020<br>930<br>4,776<br>2,760<br>£8,466|Total<br>allocated<br>2019<br>14,376<br>2019<br>900<br>3,588<br>2,760<br>£ 7,248|
|---|---|---|---|
|||||



The total support cost attributable to charitable activities is apportioned pro rata to the cost of delivering each activity.  All governance costs are met from unrestricted funds. 

## **Allocation of governance and other support costs** 

|Grants and donations<br>Ministry and Mission<br>Establishment<br>7.**ANALYSIS OF CHARITABLE EXPENDITURE**<br>Activity<br>Costs<br>Grants and donations (note 8)<br>8,685<br>Ministry and Mission<br>39,170<br>Establishment<br>57,085<br>£ 104,940|2020<br>2019<br>2,115<br>5,105<br>9,539<br>6,989<br>13,900<br>9,530<br>£ 25,554<br>£ 21,624<br>Support and<br>Governance         Total<br>Total<br>Costs<br>2020<br>2019<br>2,115<br>10,800<br>40,866<br>9,539<br>48,709<br>56,018<br>13,900<br>70,985<br>76,391<br>£ 25,554<br>£ 130,494<br>£ 173,275<br>|
|---|---|



In 2019, of the expenditure on charitable activities of £173,275, £171,079 was met from unrestricted funds and £2,196 was met from restricted funds. 



Page 15 

**BURTON LATIMER BAPTIST CHURCH** 

## **NOTES TO THE ACCOUNTS - 31ST DECEMBER 2020** 

## 8. **ANALYSIS OF GRANTS AND DONATIONS** 

|Unrestricted<br>Grants to institutions<br>BMS World Mission<br>3,690<br>Crazy Hats<br>-<br>Girl Guides<br>-<br>Home Mission Fund<br>3,270<br>Kettering Foodbank<br>500<br>KGH Charity Fund<br>202<br>Leprosy Mission<br>-<br>Mission Aviation Fellowship<br>Nene Valley Christian Family Refuge<br>250<br>Performance Poet<br>Spurgeons<br>88<br>The Children’s Society<br>-<br>Warwickshire & Northamptonshire<br>Air Ambulance<br>-<br>Women’s World Day of Prayer<br>175<br>£ 8,175<br>**FF COSTS AND TRUSTEE EXPENSES**<br>Salaries and wages<br>Social security costs<br>Pension costs<br>Other costs<br>Manse costs<br>The average number of employees during this year was|Restricted|Restricted|
|---|---|---|
||277<br>-<br>-<br>85<br>-<br>-<br>40<br>-<br>-<br>-<br>108<br>-<br>-<br>-<br> <br>£ 510<br>||



## 9. **STAFF COSTS AND TRUSTEE EXPENSES** 

No employee received emoluments in excess of £60,000 during the year (2019: none) 



Page 16 

**BURTON LATIMER BAPTIST CHURCH** 

## **NOTES TO THE ACCOUNTS - 31ST DECEMBER 2020** 

## 9. **STAFF COSTS AND TRUSTEE EXPENSES** (Cont) 

The Minister acts as one of the Church’s trustees in accordance with the constitution and received remuneration of £25,440 (2019: £23,888) and other benefits in respect of his services as Minister, including the provision of manse accommodation owned by the Church. 

In addition to the staff costs disclosed above, and as disclosed in notes 15 and 18, the accounts include a provision for the present value of deficiency contributions payable in respect of the Baptist Pension Scheme. Following the formal actuarial valuation of the Scheme at 31[st] December 2019, it was reported that the deficit in the Scheme had been significantly reduced and the expectation for when deficit recovery contributions might cease was brought forward by 2.5 years to June 2026. Based on theses factors and the latest estimate of the Church’s debt provided by the Baptist Pension Scheme, the provision for the Church’s liability at 31st December 2020 has been reduced.  £4,828, representing the provision no longer required, has been credited to Ministry and Mission costs. 

The Trustees received no remuneration in their capacity as Trustees (2019: £Nil).  No expenses were paid to Trustees in the year (2019: £Nil). 

Total aggregate remuneration paid to key management personnel during the year was £29,567 (2019: £28,043). 

## 10. **TANGIBLE FIXED ASSETS** 

|Freehold land and buildings<br>Land at<br>Yeoman’s<br>Church<br>Court<br>Premises<br>Manse<br>COST/VALUATION<br>At 1st January 2020<br>1<br>1,326,077<br>335,590<br>Additions<br>-<br>-<br>-<br> <br> <br>At 31st December 2020<br>£ 1<br>£ 1,326,077<br>£ 335,590<br> <br> <br> <br>ACCUMULATED DEPRECIATION<br>At 1st January 2020<br>-<br>-<br>-<br>Charge for the year<br>-<br>-<br>-<br> <br> <br>At 31st December 2020<br>£  -<br>£              -<br>£          -<br> <br> <br>NET BOOK VALUES<br>At 31st December 2020<br>£  1<br>£ 1,326,077<br>£ 335,590<br> <br> <br> <br>At 31st December 2019<br>£ 1<br>£ 1,326,077<br>£ 335,590<br> <br> <br> <br>|Furniture,<br>Total<br>Fittings &<br>Equipment<br> <br> <br>308,663<br>1,970,331<br>3,881<br>3,881<br>£312,544<br>£1,974,212<br> <br>184,014<br>184,014<br>10,301<br>10,301<br>£194,315<br>£194,315<br>£118,229<br>£1,779,897<br>£ 124,649<br>£ 1,786,317|Total<br> <br>1,970,331<br>3,881|
|---|---|---|





Page 17 

**BURTON LATIMER BAPTIST CHURCH** 

## **NOTES TO THE ACCOUNTS - 31ST DECEMBER 2020** 

## 11. **INVESTMENTS** 

|**VESTMENTS**||
|---|---|
|Investment<br>Listed<br> Property Investments <br>COST/VALUATION<br>At 1st January 2020<br>414,397<br>2,451,081<br>Additions at cost<br>-<br>-<br>Disposals at carrying<br>value<br>-<br>(13,634)<br>Unrealised gain on<br>revaluation<br>28,603<br>126,780<br>At 31st December 2020<br>£ 443,000<br>£ 2,564,227|Cash at<br>Total<br>Total<br> Bank/Broker<br>2020<br>2019<br>54,785<br>2,920,263<br>2,578,311<br>-<br>-<br>406,934<br>(47,704)<br>(61,338)<br>(355,690)<br>-<br>155,383<br>290,708<br> <br>£ 7,081<br>£ 3,014,308 £ 2,920,263<br>|
|||



All investments are carried at their fair value. Listed investments comprise shares in professionally managed collective investment funds. The basis of fair value for listed investments is equivalent to the market value, using the daily prices published by the fund managers. Freehold investment property comprises a residential property and plot of land. The fair value of the residential property, which was acquired in 2019, has been assessed by the trustees by reference to price indices. The fair value of the land is estimated to be equivalent to its cost of £20,000. This valuation does not reflect any development potential of the land, which has not been determined with any certainty. All investment assets are held within the UK. 

The significance of investments to the ongoing financial sustainability of the Church is considered in the financial review section of the Report of the Trustees. 

The main risk to the Church from investments lies in the combination of uncertain investment markets and volatility in yield. The Church is in part reliant on income yield to finance its work and the collective investment funds referred to above are primarily invested in UK and international securities and in bonds. A significant proportion of the investments within the funds are denominated in foreign currencies and the values of those investments, together with their yield are exposed to exchange rate risk when converting the holdings into sterling. 

Liquidity risk is anticipated to be low. The significant part of the Church‘s investments are traded in a market with good liquidity and high trading volumes. The Church has no material investment holdings in markets subject to exchange controls or trading restrictions. 

The Church manages these investment risks by retaining expert advisors and operating an investment policy that provides for diversification of holdings that include investments quoted on recognised stock exchanges and freehold investment property. The Church does not make use of derivatives and similar complex financial instruments. 

The Trustees consider the following listed investments to be material in the context of the investment portfolio owned at 31[st] December 2020 (representing 5% or more of the investment portfolio at the balance sheet date). 

||2020|2019|
|---|---|---|
||£|£|
|Aberdeen Standard Capital (Offshore)|||
|Global Fixed Interest|448,272|444,976|
|Income Fund|1,600,837|1,512,145|
|Aberdeen Standard Capital Wealth Phoenix Fund|515,118|493,960|





Page 18 

**BURTON LATIMER BAPTIST CHURCH** 

## **NOTES TO THE ACCOUNTS - 31ST DECEMBER 2020** 

## 12. **DEBTORS** 

|Accrued income<br>Prepayments<br>Other debtors<br>13.**CASH AT BANK AND IN HAND**<br>Barclays Bank: Current account<br>Legacy<br>AKH Fund<br>Cash in hand<br>Womens Own<br>Ladies’ Night<br>Table Tennis<br>Mother and Toddler<br>Junior Church<br>Not So Young Ones<br>Market Harborough Building Society<br>14.**CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**<br>Accruals for grants and donations<br>Accruals and deferred income<br>Social security and other taxes<br>15**.**<br>**PROVISION FOR LIABLITIES**<br>Defined benefit pension scheme<br>liability<br>Balance at 1st January 2020<br>Contributions paid in the year<br>Reversal of provision no longer required<br>Balance at 31st December 2020|2020<br>-<br>1,373<br>7,500<br>£ 8,873<br>2020<br>37,756<br>3,160<br>2,952<br>75<br>391<br>272<br>5,564<br>1,297<br>1,158<br>156<br>883<br>£ 53,664<br>2020<br>5,822<br>13,688<br>1,451<br>£ 20,961<br>2020<br>£ 14,280<br>21,560<br>(2,452)<br>(4,828)<br>£ 14,280||||
|---|---|---|---|---|
||£||||
||||||
||£||||
||£<br>£|<br>£|||
||||||





Page 19 

**BURTON LATIMER BAPTIST CHURCH** 

## **NOTES TO THE ACCOUNTS - 31ST DECEMBER 2020** 

## 16. **ANALYSIS OF CHARITABLE FUNDS** 

|As at 1st<br>January<br>Investment<br> 2020<br>Income<br>Expenditure gains<br><br>RESTRICTED<br>AKH Fund<br>2,950<br>2<br>-<br>-<br>Land sale account<br>2,211,664<br>-<br>-<br>122,484<br>Specific appeals<br>1,371<br>510<br>(510)<br>-<br>Flower legacy<br>943<br>-<br>(60)<br>-<br> <br> <br>£ 2,216,928<br>£ 512<br>(£ 570) £ 122,484<br> <br> <br>UNRESTRICTED<br>Unrestricted income<br>Fund<br>2,479,959<br>121,349<br>(153,185)<br>33,066<br>Designated funds<br>Solar panels<br>958<br>-<br>-<br>-<br> <br>£ 2,480,917<br>£121,349<br>(£153,185)<br>£33,066<br> <br>TOTAL FUNDS<br>£ 4,697,845<br>£121,861<br>(£153,755)<br>£155,550<br> <br> <br>**ANALYSIS OF CHARITABLE FUNDS – PREVIOUS YEAR**<br>As at 1st<br>January<br>Investment<br> 2019<br>Income<br>Expenditure Gains<br><br>RESTRICTED<br>AKH Fund<br>2,687<br>263<br>-<br>-<br>Land sale account<br>1,958,101<br>-<br>-<br>253,563<br>Specific appeals<br>1,369<br>2,141<br>(2,139)<br>-<br>Flower legacy<br>-<br>1,000<br>(57)<br>-<br> <br> <br>£ 1,962,157<br>£ 3,404<br>(£ 2,196) £ 253,563<br> <br> <br>UNRESTRICTED<br>Unrestricted income<br>Fund<br>2,445,253<br>144,631<br>(191,881)<br>81,456<br>Designated funds<br>Solar panels<br>1,458<br>-<br>-<br>-<br> <br>£ 2,446,711 £ 144,631<br>(£ 191,881)<br>£ 81,456<br> <br>TOTAL FUNDS<br>£ 4,408,868<br>£ 148,035<br>(£ 194,077) £ 335,019<br> <br>|As at 31st<br>December<br>Transfers 2020<br>-<br>2,952<br>-<br>2,334,148<br>-<br>1,371<br>-<br>883<br>£     -<br>£ 2,339,354<br>500<br>2,481,689<br>(500)<br>458<br>£     -<br>£ 2,482,147<br>£     -<br>£ 4,821,501<br>As at 31st<br>December<br>Transfers 2019<br>-<br>2,950<br>-<br>2,211,664<br>-<br>1,371<br>-<br>943<br>£     -<br>£ 2,216,928<br>500<br>2,479,959<br>(500)<br>958<br>£     -<br>£ 2,480,917<br>£     -<br>£ 4,697,845|As at 31st<br>December<br> 2020<br>2,952<br>2,334,148<br>1,371<br>883|
|---|---|---|





Page 20 

**BURTON LATIMER BAPTIST CHURCH NOTES TO THE ACCOUNTS - 31ST DECEMBER 2020** 

## 16. **ANALYSIS OF CHARITABLE FUNDS** (Cont) 

## Restricted income funds 

The land sale account was created following the sale of land left to the church by its first Minister.  The fund must be applied for 

- works of erection, alteration, improvement, enlargement, addition or pulling down and rebuilding; 

- the purchase or acquisition for the purposes of the Church of any other properties of a freehold or leasehold tenure and the erection thereon of buildings for the purposes of the Church; 

- the defraying of any expenditure of a capital nature incurred or to be incurred in connection with any other charitable purpose of the Baptist Denomination. 

Only the capital of the land sale account is restricted.  The income arising is available for general purposes. 

The Flower legacy represents a bequest, which is to be used for the purchase of memorial flowers. 

## Unrestricted income funds 

The unrestricted income fund represents the general funds of the charity which are not designated for particular purposes. 

## Designated fund 

The solar panels fund represents an amount designated by the Trustees equal to the contribution received in connection with the purchase of solar panels in 2011. The fund will be transferred to the unrestricted income fund over the useful life of the asset. £500 (2019: £500) was transferred in the year to unrestricted income funds. 

## 17 **. ANALYSIS OF NET ASSETS BETWEEN FUNDS** 

|Restricted funds<br>Unrestricted funds<br>Designated funds<br>£|Net<br>Fixed<br>Current<br>Assets<br>Investments<br>Assets<br>Provisions<br>-<br>2,329,432<br>9,922<br>-<br>1,779,439<br>684,876<br>31,654<br>(14,280)<br>458<br>-<br>-<br>-<br> <br>1,779,897<br>£ 3,014,308<br>£ 41,576<br>(£ 14,280)<br>£<br>|Total<br>2,339,354<br>2,481,689<br>458<br>4,821,501|
|---|---|---|



## **ANALYSIS OF NET ASSETS BETWEEN FUNDS – PREVIOUS YEAR** 

|Restricted funds<br>Unrestricted funds<br>Designated funds<br>£|Net<br>Fixed<br>Current<br>Assets<br>Investments<br>Assets<br>Provisions<br>-<br>2,206,474<br>10,454<br>-<br>1,785,359<br>713,789<br>2,371<br>(21,560)<br>958<br>-<br>-<br>-<br> <br>1,786,317<br>£ 2,920,263<br>£ 12,825<br>(£ 21,560)<br>£<br>|Total<br>2,216,928<br>2,479,959<br>958<br>4,697,845|
|---|---|---|





Page 21 

**BURTON LATIMER BAPTIST CHURCH** 

## **NOTES TO THE ACCOUNTS - 31ST DECEMBER 2020** 

## 18. **PENSIONS** 

The Church is an employer participating in a pension scheme known as the Baptist Pension Scheme (“the Scheme”). The Scheme is a separate legal entity which is administered by the Pension Trustee (Baptist Pension Trust Limited). The Minister is eligible to join the Scheme. 

Since January 2012, pension provision has been made through the Defined Contribution (DC) Plan within the Scheme. In general, members pay 8% of their Pensionable Income and employers pay 6% of members’ Pensionable Income into individual pension accounts. In addition, the employer pays a further 4% of Pensionable Income (or 3% if the employer is in the segregated DC section) to cover Death in Service Benefits, administration costs and an associated insurance policy which provides income protection for Scheme members in the event that they are unable to work due to long-term incapacity. This income protection policy has been insured by the Baptist Union of Great Britain with Aviva.  Members of the Basic Section pay reduced contributions of 5% of pensionable income, and their employers also pay a total of 5%. 

Benefits in respect of service prior to 1 January 2012 are provided through the Defined Benefit (DB) Plan within the Scheme.  The main benefits for pre-2012 service were a defined benefit pension of one eightieth of Final Minimum Pensionable Income for each year of Pensionable Service, together with additional pension in respect of premiums paid on Pensionable Income in excess of Minimum Pensionable Income. The Scheme, previously known as the Baptist Ministers’ Pension Fund, started in 1925, but was closed to future accrual of defined benefits on 31 December 2011. 

A formal valuation of the Defined Benefit (DB) Plan was performed at 31st December 2019 by a professionally qualified Actuary using the Projected Unit Method. The market value of the DB Plan assets at the valuation date was £298 million. 

The valuation of the DB Plan revealed a deficit of assets compared with the value of liabilities of £18 million (equivalent to a past service funding level of 94%).  As a result of the valuation, in addition to the contributions to the DC Plan set out above, it was agreed that the standard rate of deficiency contributions from churches and other employers involved in the DB Plan will remain at previously agreed levels, increasing each year in line with increases in the Minimum Pensionable Income.  The deficiency contributions are broadly based on 12% of Pensionable Income/Minimum Pensionable Income, reflecting each employer’s contributions in March 2015.  Some employers that were involved in the DB Plan for a short period pay lower contributions. The Trustee and Council agreed a 50% reduction for all deficiency contributions payable between 1 July 2020 to 31 December 2020. 

In addition, the Baptist Union of Great Britain agreed to contribute a lump sum of £0.5m by 31 December 2020. The Recovery Plan envisages deficiency contributions continuing until 30 June 2026. 

The key financial assumptions underlying the valuations were as follows: 

|**Type of Assumption**||**% pa**|
|---|---|---|
|RPI price inflation assumption||3.20|
|CPI price inflation assumption||2.70|
|Minimum Pensionable Income increases (CPI plus 0.75% pa)||3.20|
|Assumed investment returns|- Pre retirement|2.95|
||- Post retirement|1.70|
|Deferred pension increases|- Pre April 2009|3.20|
||- Post April 2009|2.50|
|Pension increase||2.70|





Page 22 

**BURTON LATIMER BAPTIST CHURCH** 

## **NOTES TO THE ACCOUNTS - 31ST DECEMBER 2020** 

## 18 **. PENSIONS** (Continued) 

As there is a large number of contributing employers participating in the Scheme, the Church is unable to identify its share of the underlying assets and liabilities of the scheme. Accordingly, due to the nature of the Scheme, the profit and loss charge for the period represents the employer contributions payable. The total pension cost for the Church is £4,126 (2019: £4,155). 

The next actuarial valuation of the DB Plan within the Scheme is due at 31st December 2022. 

A liability of £14,280 (2019: 21,560 ) has been recognised in respect of the agreed deficit payment plan of the Baptist Pension Scheme, representing the present value of future deficiency contributions payable. 

## 19. **RELATED PARTY TRANSACTIONS** 

The Church is a member of the Baptist Union and the Central Baptist Association. During the year the Church made donations of £3,355 (2019: £16,217) to the Baptist Union Home Mission Fund. 

Mr Michael Roche, a trustee of the Church, was a partner in the firm Gemini, which provided caretaker services to the Church, the cost of which totalled £9,609 (2019: £8,918). Creditors include £751 (2019: £705) owed to Gemini. 

Certain trustees and connected persons make regular unconditional donations to the Church by standing order payment. The aggregate donations of this type in the year totalled £4,160 (2019: £4,020).  The trustees also make regular unconditional donations to the Church by contributing to collections. The aggregate donations of this type cannot be measured with certainty due to their nature.