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2021-12-31-accounts

Charity registration number 1156056

BURTON LATIMER BAPTIST CHURCH ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

BURTON LATIMER BAPTIST CHURCH

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Revd Mark Welch
Mr N Padget
Mrs J Yeomans
Mrs Ruth Groome
Charity number 1156056
Principal address Meeting Lane
Burton Latimer
Kettering
Northants
NN15 5LS
Website www.blbaptistchurch.org.uk
Independent examiner Azets Audit Services
Thorpe House
93 Headlands
Kettering
Northants
NN15 6BL
Bankers Barclays Bank PLC
8 Market Place
Kettering
Northants
NN16 OAX
Investment advisors abrdn
Bow Bells House
1 Bread Street
London
EC4M 9HH

BURTON LATIMER BAPTIST CHURCH

CONTENTS

Page
Trustees' report 1 - 5
Independent examiner's report 6
Statement of financial activities 7
Balance sheet 8
Notes to the financial statements 9 - 26

BURTON LATIMER BAPTIST CHURCH

TRUSTEES' REPORT

FOR THE YEAR ENDED 31 DECEMBER 2021

The trustees present their annual report and financial statements of the Church for the year ended 31st December 2021. The financial statements have been prepared in accordance with the accounting policies set out in the notes to the financial statements 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 financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland published in October 2019.

Objectives and activities

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:

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.

BURTON LATIMER BAPTIST CHURCH

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Achievements and performance

During the first part of 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, until late March 2020, were the Sunday Services. Between late March 2020 and late April 2021, Sunday Services were cancelled. The Minister provided online services and materials via the Church web site and social media during the lockdown.

At the end of April 2021 we started Sunday morning services, when we gathered together to pray, read and reflect on the Scrptures and listen to recorded music. In this way we sought together God's grace and wisdom for our lives. Wearing of masks and adhering to social distancing was agreed. No singing was allowed until later in the summer. Numbers at the morning services were initially considerably less than pre-pandemic, but slowly increased. The music group returned in September. The Junior Church and Crèche ran alongside the Family Worship in the morning.

We have a membership of around sixty-five, although the wider church family is larger. The varied weekly actvities that we put on pre-pandemic did not recommence due to restrictions, together with peoples' hesitancy to return to communal events.

The events set out below, and other activities, took place throughout the second half of 2020. but, in response to the pandemic, most of the previous actvities were suspended and have not recommenced. The Mother & Toddler Group recommenced in September 2021 and we publicised our plans to recommence other activities as soon as circumstances allow.

Sessions with a qualified instructor are held on Friday mornings.

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

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.

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.

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.

BURTON LATIMER BAPTIST CHURCH

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Achievements and performance continued

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.

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.

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 2021, 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 £26,278 for the year compared to £24,277 for 2020 and £34,986 for 2019. The temporary suspension of Church activities in 2020 and 2021 due to the pandemic has also resulted in a reduction in income from activities. Income from investments increased to £92,114 (2020: £86,673). Following the acquisition of an investment property in 2019, investment income for 2021 includes rent receivable of £15,000 (2020: £16,860).

Total expenditure decreased by £15,495 to £138,260.

Investment management costs were £22,729 (2020: £23,261). The 2021 costs include rent collection and property expenses of £1,545 (2020: £3,036).

BURTON LATIMER BAPTIST CHURCH

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

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.

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 payable, including allocated support and governance costs, increased by £4,502 to £15,302. An analysis of the grants paid is provided in the notes to the financial statements.

Ministry and Mission costs increased by £6,502 to £55,211. Activity-related costs increased by £761 and staff costs increased by £1,883.

Establishment costs for 2021 were £45,018 compared to £70,985 for 2020. Major costs in 2020 included £12,735 spent on fire door works in the Church and John Yeomans Hall, £2,282 on electrical work and £2,137 on scaffolding. In addition, in 2021, there was a significant decrease in regular small upkeep and maintenance costs compared to the previous year.

Net expenditure for the year, before gains on investments, totalled £9,567 (2020: net expenditure £31,894). Net income after gains on investment assets was £220,409 (2020: net income £123,656).

Reserves policy

General reserves freely available at 31st December 2021 were £752,181 (2020: £702,250). The free reserves comprise unrestricted general funds not invested in tangible fixed assets. Free reserves invested at 31st December 2021 were £699,891 (2020: £684,876). 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 £52,290 (2020: £17,374).

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 2021. 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 are above target level at the year end, in the opinion of the trustees, the recommencement of Church activities after the restrictions imposed due to the pandemic and expected future increases in costs, resulting from current economic conditions and other factors, are likely to increase demands on Church resources. We will continue to monitor our reserves policy and update it as necessary.

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 £77,104 (2020: £69,789). Unrealised investment gains totalled £187,931 (2020: gains £126,780).

In 2019, 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 £42,000 (2020: £28,603) has been recognised in the accounts in respect of the increase in value of the property.

Risk policy

The trustees have assessed the major risks to which the Church is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

BURTON LATIMER BAPTIST CHURCH

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

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.

The trustees who served during the year and up to the date of signature of the financial statements were:

Revd Mark Welch Mr N Padget Mr C Mills (Resigned 24 June 2021) Mr M McInnes (Resigned 6 September 2021) Mrs J Yeomans Mr J Paul (Resigned 20 December 2021) Mrs Ruth Groome Mr M Roche (Deceased 2 January 2021)

The trustees' report was approved by the Board of Trustees.

Mr N Padget Trustee

23 October 2022

BURTON LATIMER BAPTIST CHURCH

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF BURTON LATIMER BAPTIST CHURCH

I report to the trustees on my examination of the financial statements of Burton Latimer Baptist Church (the Church) for the year ended 31 December 2021.

Responsibilities and basis of report

As the trustees of the Church you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).

I report in respect of my examination of the Church’s financial statements carried out under section 145 of the 2011 Act. In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

Your attention is drawn to the fact that the charity has prepared financial statements 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 now been withdrawn.

I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

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 that in any material respect:

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 financial statements to be reached.

Richard Monkhouse FCCA Association of Chartered Certified Accountants Thorpe House 93 Headlands Kettering Northamptonshire NN15 6BL

Dated: 24 October 2022

BURTON LATIMER BAPTIST CHURCH

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2021

Unrestricted
Restricted
funds
funds
2021
2021
Notes
£
£
Income from:
Donations and legacies
3
26,278
1,131
Charitable activities
4
9,170
-
Investments
5
92,111
3
Total income
127,559
1,134
Expenditure on:
Raising funds
6
22,729
-
Charitable activities
7
114,329
1,202
Total expenditure
137,058
1,202
Net gains/(losses) on
investments
12
50,166
179,810
Net movement in funds
40,667
179,742
Fund balances at 1 January
2021
2,482,147
2,339,354
Fund balances at 31
December 2021
2,522,814
2,519,096		 Total Unrestricted
Restricted
funds
funds
2021
2020
2020
£
£
£
27,409
24,277
510
9,170
10,401
-
92,114
86,671
2
128,693
121,349
512
22,729
23,261
-
115,531
129,924
570
138,260
153,185
570
229,976
33,066
122,484
220,409
1,230
122,426
4,821,501
2,480,917
2,216,928
5,041,910
2,482,147
2,339,354		 Total
2020
£
24,787
10,401
86,673
121,861
23,261
130,494
153,755
155,550
123,656
4,697,845
4,821,501

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

All income and expenditure derive from continuing activities.

BURTON LATIMER BAPTIST CHURCH

BALANCE SHEET

AS AT 31 DECEMBER 2021

Notes
Fixed assets
Tangible assets
13
Investment properties
14
Investments
15
Current assets
Debtors
17
Cash at bank and in hand
Creditors: amounts falling due within
one year
18
Net current assets
Total assets less current liabilities
Provisions for liabilities
Net assets
Income funds
Restricted funds
21
Unrestricted funds
Designated funds
22
General unrestricted funds		 2021
£
£
1,770,633
485,000
2,725,514
4,981,147
17,316
74,010
91,326
(24,126)
67,200
5,048,347
(6,437)
5,041,910
2,519,096
-
2,522,814
2,522,814
5,041,910		 2020
£
£
1,779,897
443,000
2,571,308
4,794,205
8,873
53,664
62,537
(20,961)
41,576
4,835,781
(14,280)
4,821,501
2,339,354
458
2,481,689
2,482,147
4,821,501

The financial statements were approved by the Trustees on 23 October 2022

Revd Mark Welch Trustee

Mr N Padget Trustee

BURTON LATIMER BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

Charity information

Burton Latimer Baptist Church is an unincorporated charity registered with the Charity Commission for England and Wales.

1.1 Accounting convention

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland 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 financial statements 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 the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.

The financial statements are prepared in sterling, which is the functional currency of the Church. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, [modified to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the Church has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives. Designated funds are unrestricted funds set aside by the trustees for a particular purpose. Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.4 Income

All income is recognised once the Church has entitlement to the income, there is sufficient certainty of receipt and the amount receivable can be measured reliably. Donations are recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably. Tax reclaimable in respect of gift aid is recognised when receivable.Incoming resources from charitable activities are accounted for when earned. Dividend and other investment income is accounted for when the Church's right to the income is established.

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.

BURTON LATIMER BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

(Continued)

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably. Expenditure includes attributable VAT whihc cannot be recovered.

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Support costs which are not attributable to a single activity are apportioned between those activities.

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.

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 financial statements.

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

1.6 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.

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: Freehold land and buildings 0% Fixtures, fittings and equipment 10% to 33%

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.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

BURTON LATIMER BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

(Continued)

1.7 Investment properties

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. The surplus or deficit on revaluation is recognised in the statement of financial activities.

1.8 Fixed asset investments

Fixed asset investments are initially measured at transaction price, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year.

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).

1.9 Impairment of fixed assets

At each reporting end date, the Church reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.10 Cash and cash equivalents

Cash and cash equivalents include cash in hand and deposits held at call with banks.

1.11 Financial instruments

The Church has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Church's balance sheet when the Church becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

BURTON LATIMER BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

(Continued)

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Church’s contractual obligations expire or are discharged or cancelled.

1.12 Provisions

Provisions are recognised when the Church has a legal or constructive present obligation as a result of a past event, it is probable that the Church will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in net income/(expenditure) in the period in which it arises.

1.13 Retirement benefits

The Church operates a defined contribution plan for its employees. 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 Church has no further payments obligations. The contributions are recognised as an expense when they are due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held separately from the Church in an independently administered fund.

Prior to 2012 pension provision was made through multi-employer defined benefit pension plans. 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. The unwinding of the discount is recognised as a finance cost and any other change in the measurement of this liability is expensed to the Statement of Financial Activities.

BURTON LATIMER BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

2 Critical accounting estimates and judgements

In the application of the Church’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3 Donations and legacies

Unrestricted
Restricted
funds
funds
2021
2021
£
£
Offerings and donations
26,278
1,131
Coronavirus Job
Retention Sceme Grants
-
-
26,278
1,131
Offerings and
donations
Offerings and donations
18,780
1,131
Gift Aid
7,498
-
26,278
1,131
Charitable activities
Church
activities
Other trading
activities
2021
2021
£
£
Solar panels feed in
tariff
-
5,863
Charitable rental
income
-
1,643
Income from Church
activities
1,664
-
1,664
7,506		 Total Unrestricted
Restricted
funds
funds
2021
2020
2020
£
£
£
27,409
19,581
510
-
4,696
-
27,409
24,277
510
19,911
19,581
510
7,498
-
-
27,409
19,581
510
Total
2021
Church
activities
Other trading
activities
2020
2020
£
£
£
5,863
-
5,895
1,643
-
2,441
1,664
2,065
-
9,170
2,065
8,336		 Total
2020
£
20,091
4,696
24,787
20,091
-
20,091
Total
2020
£
5,895
2,441
2,065
10,401

4 Charitable activities

BURTON LATIMER BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

5 Investments

Unrestricted
Restricted
funds
funds
2021
2021
£
£
Rental income
15,000
-
Income from listed
investments
77,104
-
Income from unlisted
investments
-
-
Interest receivable
7
3
92,111
3		 Total Unrestricted
Restricted
funds
funds
2021
2020
2020
£
£
£
15,000
16,860
-
77,104
69,773
-
-
16
-
10
22
2
92,114
86,671
2		 Total
2020
£
16,860
69,773
16
24
86,673

6 Raising funds

Unrestricted Unrestricted
funds funds
2021 2020
£ £
Investment management 22,729 23,261
22,729 23,261

Total 2020 £ 43,644 52,612 96,256 8,685 17,087 8,466 130,494 129,924 570 130,494
Establishment 2020 £ 14,078 43,007 57,085 - 9,295 4,605 70,985 70,985 - 70,985
Ministry and Mission 2020 £ 29,566 9,605 39,171 - 6,378 3,160 48,709 48,649 60 48,709
Grants and donations 2020 £ - - - 8,685 1,414 701 10,800 10,290 510 10,800
Total 2021 £ 45,921 30,251 76,172 12,021 18,620 8,718 115,531 114,329 1,202 115,531
Establishment 2021 £ 14,472 19,884 34,356 - 7,262 3,400 45,018 45,018 - 45,018
Ministry and Mission 2021 £ 31,449 10,366 41,815 - 9,124 4,272 55,211 55,120 91 55,211
Grants and donations 2021 £ - 1 1 12,021 2,234 1,046 15,302 14,191 1,111 15,302
Charitable activities Staff costs Activity costs Grants and donations (see note 8) Support costs (see note 9) Governance costs (see note 9) Analysis by fund Unrestricted funds Restricted funds
7

BURTON LATIMER BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

8 Grants payable

Grants and
donations
Grants and
donations
2021
2020
£
£
Grants to institutions:
BMS World Mission
5,186
3,967
Home Mission Fund
4,672
3,355
Kettering Foodbank
500
500
KGH Charity Fund
-
202
Leprosy Mission
372
40
Nene Valley Christian Family Refuge
500
250
Spurgeons
191
196
Women's World Day of Prayer
-
175
Friends of Burton Latimer Library
500
-
Prostate Cancer UK
100
-
12,021
8,685		 Grants and
donations
Grants and
donations
2021
2020
£
£
Grants to institutions:
BMS World Mission
5,186
3,967
Home Mission Fund
4,672
3,355
Kettering Foodbank
500
500
KGH Charity Fund
-
202
Leprosy Mission
372
40
Nene Valley Christian Family Refuge
500
250
Spurgeons
191
196
Women's World Day of Prayer
-
175
Friends of Burton Latimer Library
500
-
Prostate Cancer UK
100
-
12,021
8,685		 Grants and
donations
Grants and
donations
2021
2020
£
£
Grants to institutions:
BMS World Mission
5,186
3,967
Home Mission Fund
4,672
3,355
Kettering Foodbank
500
500
KGH Charity Fund
-
202
Leprosy Mission
372
40
Nene Valley Christian Family Refuge
500
250
Spurgeons
191
196
Women's World Day of Prayer
-
175
Friends of Burton Latimer Library
500
-
Prostate Cancer UK
100
-
12,021
8,685
2021
£
5,186
4,672
500
-
372
500
191
-
500
100
12,021		 2020
£
3,967
3,355
500
202
40
250
196
175
-
-
8,685

9 Support costs

Support
costs
Governance
costs
£
£
Staff costs
18,098
-
Other support costs
522
-
Independent examiners'
remuneration
-
5,808
Bookkeeping and payroll
costs
-
2,910
18,620
8,718
Analysed between
Charitable activities
18,620
8,718		 2021
Support
costs
Governance
costs
£
£
£
18,098
16,752
-
522
335
-
5,808
-
5,706
2,910
-
2,760
27,338
17,087
8,466
27,338
17,087
8,466		 2020
£
16,752
335
5,706
2,760
25,553
25,553

Independent examiners' remuneration includes £996 (2020: £930) for independent examination fees and £4,812 (2020: £4,776) for accountancy fees.

The total support cost attributable to charitable activities is apportioned pro rata to the cost of delivering each activity.

BURTON LATIMER BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

10 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the Church during the year.

No expenses were paid to Trustees in the year (2020: £Nil).

11 Employees

The average monthly number of employees during the year was:

2021 2020
Number Number
3 3
Employment costs 2021 2020
£ £
Wages and salaries 51,139 48,923
Manse costs 7,607 7,059
Pension costs 5,273 4,414
64,019 60,396

There were no employees whose annual remuneration was more than £60,000.

The Minister acts as one of the Church’s trustees in accordance with the constitution and received remuneration of £26,788 (2020: £25,440) 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, the financial statements 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 31st 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 these 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 2021 has been reduced. £4,517 (2020: £4,828), representing the provision no longer required, has been credited to Ministry and Mission costs.

Total aggregate remuneration paid to key management personnel during the year was £31,803 (2020: £29,567).

BURTON LATIMER BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

12 Net gains/(losses) on investments

Unrestricted
Restricted
funds
funds
2021
2021
£
£
Revaluation of
investments
50,125
179,806
Gain/(loss) on sale of
investments
41
4
50,166
179,810
13
Tangible fixed assets
Cost
At 1 January 2021
At 31 December 2021
Depreciation and impairment
At 1 January 2021
Depreciation charged in the year
At 31 December 2021
Carrying amount
At 31 December 2021
At 31 December 2020
14
Investment property
Fair value
At 1 January 2021
Net gains or losses through fair value adjustments
At 31 December 2021		 Total Unrestricted
funds
2021
2020
£
£
229,931
32,899
45
167
229,976
33,066
Freehold land
and buildings
£
1,661,668
1,661,668
-
-
-
1,661,668
1,661,668		 Restricted
funds
2020
£
122,484
-
122,484
Fixtures,
fittings and
equipment
£
312,544
312,544
194,315
9,264
203,579
108,965
118,229		 Total
2020
£
155,383
167
155,550
Total
£
1,974,212
1,974,212
194,315
9,264
203,579
1,770,633
1,779,897
2021
£
443,000
42,000
485,000

BURTON LATIMER BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

14 Investment property

(Continued)

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.

If investment properties were stated on an historical cost basis rather than a fair value basis, the amounts would have been included as follows:

Cost
Accumulated depreciation
Carrying amount
15
Fixed asset investments
Listed
investments
£
Cost or valuation
At 1 January 2021
2,564,227
Additions
-
Valuation changes
187,931
Disposals
(40,006)
At 31 December 2021
2,712,152
Carrying amount
At 31 December 2021
2,712,152
At 31 December 2020
2,564,227
16
Financial instruments
Carrying amount of financial assets
Instruments measured at fair value through profit or loss		 2021
£
414,397
-
414,397
Cash in
portfolio
7,081
6,281
-
-
13,362
13,362
7,081
2021
£
2,712,152		 2020
£
414,397
-
414,397
Total
£
2,571,308
6,281
187,931
(40,006)
2,725,514
2,725,514
2,571,308
2020
£
2,564,227

BURTON LATIMER BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

17 Debtors
2021 2020
Amounts falling due within one year: £ £
Other debtors 17,316 8,873
18 Creditors: amounts falling due within one year
2021 2020
£ £
Other taxation and social security 1,654 1,451
Accruals and deferred income 22,472 19,510
24,126 20,961
Accruals and deferred income include accruals for grants and donations totalling £9,401 (2020: £5,822).
19 Provisions for liabilities 2021 2020
£ £
Defined benefit pension scheme liability 6,437 14,280
Movements on provisions:
Defined
benefit
pension
scheme
liability
£
At 1 January 2021 14,280
Reversal of provision (4,517)
Unwinding of discount 369
Other movements (3,695)
At 31 December 2021 6,437

BURTON LATIMER BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

20 Retirement benefit schemes

Defined contribution schemes

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

The Scheme, previously known as the Baptist Ministers’ Pension Fund, started in 1925, but was closed to future accrual of defined benefits on 31 December 2011. Prior to this date the main benefit provided through the Defined Benefit (DB) Plan was a pension of one eightieth of final minimum pensionable income for each year of pensionable service together with additional pension in respect of premiums paid on Pensionable Income in excess of Minimum Pensionable Income.

From January 2012, pension provision is being made through the Defined Contribution (DC) Plan within the Scheme. In general, members pay 8% of their Pensionable Income and employers pay 6% of members’ Pensionable Income into individual pension accounts, which are operated and managed on behalf of the Pension Trustee by Broadstone Corporate Benefits Ltd. In addition, the employer pays a further 4% of Pensionable Income to cover Death in Service Benefits, administration costs and an associated insurance policy which provides income protection for Scheme members if 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 Limited. (Members of the Basic Section pay reduced contributions of 5% of pensionable income, and their employers also pay a total of 5%.)

The Scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. Because it is not possible to attribute the Scheme’s assets and liabilities to specific employers, the scheme is accounted for as if the Scheme were a defined contribution scheme.

The Minister is eligible to join the Scheme.

Actuarial valuation as at 31 December 2019

A formal valuation of the 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 was £298 million, whilst the level of assets needed to pay benefits was £316m, giving a deficit of £18m (equivalent to a past service funding level of 94%). The Church and the other participating employers in the DB Plan are collectively responsible for funding this deficit.

The 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 (above CPI) 0.50
Pre-retirement assumed investment returns (gilt yield plus 1.75% pa) 2.95
Post retirement assumed investment returns (including benefits
matched by the insurance policy) (gilt yield plus 0.5%pa) 1.70
Deferred pension increases
Pre April 2009 3.20
Post April 2009 2.50
Pension increases
Based on CPI with an annual floor of 0% and annual cap of 5% 2.70

BURTON LATIMER BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

20 Retirement benefit schemes

(Continued)

Mortality is assumed in accordance with 80% of the S3NA standard mortality table. Future improvements projected from 2013 in line with the “CMI 2019” projection with a long-term rate of improvement of 1.75% p.a. for males and 1.5% p.a. for females with the core smoothing parameter and with additional initial mortality improvement factor A=0.5%.

The next actuarial valuation of the DB Plan within the Scheme is due to take place not later than as at 31st December 2022.

Recovery Plan

In addition to the contributions to the DC Plan set out above, where a valuation of the DB Plan reveals a deficit the Trustee and the Council agree to a rate of deficiency contributions from churches and other employers involved in the DB Plan. Following the 2019 valuation a Recovery Plan was signed in September 2020 under which deficiency contributions are payable until June 2026. These contributions were broadly based on each employer's membership at 31 December 2014 and increase annually in line with increases to Minimum Pensionable Income as defined in the Rules.

On 30th June 2022 the Baptist Pension Scheme signed an agreement with the insurance company Just Group (“Just”) to secure DB Plan members’ pension benefits. Just are now providing financial backing for all pensions provided through the Scheme’s DB Plan and following this transaction, the Scheme no longer has a shortfall. An updated Recovery plan was then signed in August 2022 under which recovery contributions from each participating employer in the DB Plan reduced to £1 per month from August 2022.

A liability of £6,437 (2020: 14,280) has been recognised in respect of the agreed deficit recovery payments. The liability represents the present value of the deficit contributions agreed as at the accounting date.

The Church has been advised that the cost for the church to buy out their Pension Scheme liabilities at 31 December 2021 was approximately £8,500.

Restricted funds The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes: Movement in funds
Movement in funds		 Balance at
Incoming
Resources
Revaluations,
Balance at
Incoming
Resources
Revaluations,
Balance at		 1 January 2020
resources
expended
gains and
1 January 2021
resources
expended
gains and
31 December		 losses
losses
2021		 £
£
£
£
£
£
£
£
£		 AKH Fund
2,950
2
-
-
2,952
1
-
-
2,953		 Land sale account
2,211,664
-
-
122,484
2,334,148
-
-
179,810
2,513,958		 Specific appeals
1,371
510
(510)
-
1,371
1,131
(1,111)
-
1,391		 Flower legacy
943
-
(60)
-
883
2
(91)
-
794		 2,216,928
512
(570)
122,484
2,339,354
1,134
(1,202)
179,810
2,519,096		 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 Specific appeals fund represents cash gifted by Church members for specific charitable causes. The Flower legacy represents a bequest, which is to be used for the purchase of memorial flowers.
21

BURTON LATIMER BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

22 Designated funds

The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:

Balance at Transfers Balance at Transfers Balance at
1 January 2020 1 January 2021 31 December
2021
£ £ £ £ £
Solar panels fund 958 (500) 458 (458) -
958 (500) 458 (458) -

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. £458 (2020: £500) was transferred in the year to unrestricted income funds.

Total 2020 £ 1,779,897 443,000 2,571,308 41,576 (14,280) 4,821,501
Restricted funds 2020 £ - 423,000 1,906,432 9,922 - 2,339,354
Designated funds 2020 £ 458 - - - - 458
Total Unrestricted funds 2021
2020		 £
£		 1,770,633
1,779,439		 485,000
20,000		 2,725,514
664,876		 67,200
31,654		 (6,437)
(14,280)		 5,041,910
2,481,689
Restricted funds 2021 £ - 379,270 2,131,353 8,473 - 2,519,096
Designated funds 2021 £ - - - - - -
Unrestricted funds 2021 £ 1,770,633 105,730 594,161 58,727 (6,437) 2,522,814
Analysis of net assets between funds Fund balances at 31 December 2021 are represented by: Tangible assets Investment properties Investments Current assets/(liabilities) Provisions
23

BURTON LATIMER BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

24 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 £4,672 (2020: £3,355) to the Baptist Union Home Mission Fund.

Mr Michael Roche (deceased), whilst a trustee of the Church, was also a partner in the firm Gemini, which provided caretaker services to the Church, the cost of which totalled £Nil (2020: £9,609). Creditors include £Nil (2020: £751) 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 £3,570 (2020: £4,160). 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.