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Life Community Baptist Church
Report and Accounts
year ended 30 September 2021
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## **LIFE COMMUNITY BAPTIST CHURCH** ## **LEGAL AND ADMINISTRATIVE DETAILS** ## **FOR THE YEAR ENDED 30 SEPTEMBER 2021** ADDRESS FOR CORRESPONDENCE 10 Willow Road Horsham West Sussex RH12 4UN GOVERNING DOCUMENT CIO registration December 2014 CHARITY REGISTRATION NUMBER 1159548 TRUSTEES RESPONSIBLE FOR Rev. Peter Dibdin MANAGING THE CHARITY Karen George (resigned as Trustee and Treasurer 30/9/2021) Anna Pisani (resigned as Trustee and Secretary 26/11/2021) Maureen Coleman John Coleman Abigail Diaz (resigned 30/6/2021) Julie Capas (appointed Treasurer 20/10/2021) Sarah Hill (appointed Trustee 20/10/2021 and Secretary 26/11/2021) Patrick Hill (appointed Trustee 20/10/2021) Sarah Williams (appointed Trustee 20/10/2021) CUSTODIAN TRUSTEES The Baptist Union Corporation Ltd BANKERS CAF Bank Baptists Together Deposit Account INDEPENDENT EXAMINER Jaimée Young Stewardship 1 Lamb's Passage LONDON EC1Y 8AB Page 1 Legal and Administrative Details Pages 2-3 Trustees' Report Page 4 Independent Examiner's Report Page 5 Receipts and Payments Account Page 6 Statement of Assets & Liabilities Pages 7-10 Notes to the Accounts Page 1 ## **LIFE COMMUNITY BAPTIST CHURCH** ## **REPORT OF THE TRUSTEES** ## **FOR THE YEAR ENDED 30 SEPTEMBER 2021** The Trustees have pleasure in submitting the Report and Accounts for the year ended 30 September 2021. ## **Objects of the charity** The charity, which is a church, is constituted as a charitable incorporated organisation. The charity's principal objects, as set out in its governing document, are the advancement of the Christian faith and education at home and overseas. ## **Summary of the charity's main activities and achievements** This has been another difficult year and, sadly, a number of our members and regular attendees have chosen to worship elsewhere for various reasons. We have continued to hold our services on Zoom with worship, intercessory prayer, a sermon and discussions. From August 2021, we were able to meet in person again, following the Government’s Covid guidelines, whilst continuing to allow people at home to join in the services via Zoom. We also record the main part of the service which is later posted to our YouTube channel (edited if necessary for privacy reasons). As our numbers are reduced, we decided to hire The Phoenix Club premises for our services and meetings, which is smaller and cheaper than the BEC. This hall is also part of The Forest School. Our three Life Groups have continued to offer support to their members, meeting either in person where possible or on Zoom, or a combination of both. Unfortunately, due to Covid restrictions and also a lack of people to run events, we have not been able to continue the fortnightly Lunch Club and Tea and Chat, but contact has been maintained by phone or visits when permitted. Several men in the Church were involved in M.S.H. (Men’s Shed Horsham); a community initiative started by the local council, which seeks to engage and encourage men by involving them in practical projects. Like many other Charities, activities had to stop during lockdown; however members have been able to maintain contact via Zoom meetings, WhatsApp etc. The number of Church members at the beginning of the church year was 42 (with a few non members who regularly attend). This reduced over the year down to 32 by the end of September 2021. The Church employed a part time Administrator for 10 hours per week. The Church and a number of the congregation continue to set aside money for the church in the village of Malcoci, Moldova. There has not been a visit to take these funds out to Moldova this financial year and we are holding a sum of money pending investigations as to how to enable the funds to be safely received. LIFE’s mission field has concentrated on a more local focus this year. We have not yet been able to further our relationship with Forest School, however a number of socials have taken place when possible. Page 2 In planning the activities the Trustees have applied the guidance on public benefit issued by the Charity Commission. ## **Financial review** During the year, income decreased by £10,700 to £51,136 and expenditure decreased by £9,680 to £53,720. As a result, the cash held by the charity decreased by £2,580 to £38,720 of which £37,750 is unrestricted and can be used for any charitable purpose. Although we were able to save some money during lockdowns due to not hiring a hall, the impact of members leaving has affected and will continue to affect our overall income considerably. However, two new members joined in October 2021 and we have a few new people attending our services. ## **Reserves policy** The trustees have determined that the charity should aim to hold unrestricted cash of no less than £25,000 (which equates to about 6 months’ of unrestricted expenditure) so that the charity could continue to operate should income and/or expenditure vary adversely. At the year end, the charity held unrestricted cash of £37,770 and is complying with its reserves policy. ## **Governance** The Church is governed by a leadership team (all trustees) who currently meet once a month to set policy and review the activities of the Church. Some of the trustee and church members meetings had to be on Zoom during the pandemic, as permitted by the Corporate Insolvency and Governance Act 2020. These provisions expired on the 30th April 2021, however, to ensure good governance, the trustees decided that the June and July Church Members Meetings had to been on zoom, as the church had yet to resume in person services and meetings due to the risk of COVID-19 infection. During this time, there was also a postal ballot for the re-election of trustees. New Trustees are appointed in accordance with the requirements of the Constitution. ## **Responsibilities of trustees** Charity law requires us as trustees to prepare financial statements for each accounting year which record the receipts and payments of the charity for the year. We are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and enable us to ensure that the financial statements comply with the Charities Act 2011. We also have a responsibility to safeguard the assets of the charity and to take reasonable steps to prevent fraud or any other irregularities. ## **Approval** This report was approved by the trustees and signed on their behalf by: ## Peter Dibdin ____________________________ Rev. Peter Dibdin 24th May 2022 Date:_______________________ Page 3 ## **INDEPENDENT EXAMINER'S REPORT** ## **TO THE TRUSTEES OF** ## **LIFE COMMUNITY BAPTIST CHURCH** I report to the trustees on my examination of the accounts of Life Community Baptist Church ('the charity') for the year ended 30 September 2021 on pages 5 to 10 following. ## **Responsibilities and basis of report** As the trustees of the charity you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the 2011 Act’). I report in respect of my examination of the charity’s accounts carried out under section 145 of the 2011 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 2011 Act. ## **Independent examiner’s statement** 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 accordance with section 130 of the 2011 Act; or 2. the accounts do not accord with the accounting records. I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in order to enable a proper understanding of the accounts to be reached. ## Jaimée Young Jaimée Young Stewardship 1 Lamb's Passage LONDON EC1Y 8AB Date: 25 May 2022 Page 4 ## **LIFE COMMUNITY BAPTIST CHURCH** ## **RECEIPTS AND PAYMENTS ACCOUNT** ## **FOR THE YEAR ENDED 30 SEPTEMBER 2021** |Notes
**_Income receipts_**
Donations
Gift aid receipts
Interest
**_Total receipts_**
**_Payments_**
2
3
**_Total payments_**
Transfers between funds
5
**Net movement in funds**
Cash funds as at last year end
**Cash funds at this year end**
A
Net of receipts / (payments) before
transfers
Grants paid in relation to charitable
activities undertaken by others
Payments in relation to charitable
activities undertaken directly||General
Designated
Funds
Funds
£
£
41,175
0
8,741
0
117
0
50,034
0
51,318
0
1,974
0
53,293
0
-3,259
0
0
0
-3,259
0
41,012
0
37,753
0
Unrestricted Funds|Restricted
Funds
£
900
203
0
1,103
0
428
428
674
0
674
293
967|Total
2021
£
42,075
8,944
117
51,136
51,318
2,402
53,721
-2,584
0
-2,584
41,305
38,721|Total
2020
£| |---|---|---|---|---|---| |||General
Funds
£
41,175
8,741
117
50,034
51,318
1,974
53,293
-3,259
0
-3,259
41,012
37,753|||| ||||||50,092
11,520
227| ||||||61,839| ||||||55,202
8,187| ||||||63,389| ||||||-1,549
0| ||||||-1,549
42,854| ||||||41,305| The notes on pages 7-10 form part of these accounts. Page 5 ## **LIFE COMMUNITY BAPTIST CHURCH** ## **STATEMENT OF ASSETS AND LIABILITIES** ## **FOR THE YEAR ENDED 30 SEPTEMBER 2021** |**A Cash funds**
Held at bank
Notice deposits
**B Other monetary assets**
Gift aid due to charity
Tenancy deposit
**C Liabilities**
**Falling due within one year:**
Pension scheme payments
Fee for Independent Examination
**Falling due after one year:**
Pension scheme deficit
Note 7
**Total**|General
Designated
funds
funds
£
£
11,493
0
26,260
0
**37,754**
**0**
4,300
0
1,792
0
**6,092**
**0**
2,636
0
660
0
3,296
0
46,164
0
46,164
0
**49,460**
**0**
Unrestricted Funds|Restricted
funds
£
967
0
**967**
0
0
**0**
0
0
0
0
0
**0**|Total
2021
£
12,461
26,260
**38,721**
4,300
1,792
**6,092**
2,636
660
3,296
46,164
46,164
**49,460**|Total
2020
£| |---|---|---|---|---| |||||15,162
26,143| |||||**41,305**| |||||4,880
1,792| |||||**6,672**| |||||2,581
960| |||||3,541
53,819| |||||53,819| |||||**57,360**| The church has had constructive discussions with the Baptist Union over the above share of the pension scheme deficit, which is currently being settled by regular payments out of income between now and 2035. The payments in the course of this year are included in Note 7. The current arrangements only last as long as there is a Minister in post. |**ts retained for charity's own use**
Equipment|2021
value
£
14,486
**14,486**|2020
value
£| |---|---|---| |||15,211| |||**15,211**| ## **D Assets retained for charity's own use** The trustees have used insurance values as the trustees are unable to reliably estimate current values; insurance values may differ materially from current values. ## **E Guarantees and secured debts** The charity has not given any guarantees and has not provided its assets as security for any liabilities. The accounts were approved by the trustees and signed on their behalf > by Peter Dibdin date 24 May 2022 --------------------------------------------------------------------- Rev. Peter Dibdin The notes on pages 7-10 form part of these accounts. Page 6 ## **LIFE COMMUNITY BAPTIST CHURCH** ## **NOTES TO THE ACCOUNTS** ## **FOR THE YEAR ENDED 30 SEPTEMBER 2021** ## **1 Accounting policies** The accounts have been prepared on a receipts and payments basis and comprise a statement that shows the charity's receipts and payments, a statement that summarises the charity's assets and liabilities and related notes. The accountancy profession have determined that only accounts prepared in accordance with applicable accounting standards present a 'true and fair' view and, as these receipts and payments accounts have not (and cannot) be prepared in accordance with accounting standards, these accounts do not present (and are not intended to present) a 'true and fair' view of the charity's financial activities and state of affairs. General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity. Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. Restricted funds are donations which are to be used in accordance with specific restrictions imposed by donors; they include donations received from appeals for specific activities or projects. |**2**
**Payments in relation to charitable activities undertaken directly**
_Ministry:_
Stipends
Employer Pension
Accommodation costs
Reimbursed expenses
Hire of hall
Equipment
Training
Outreach, evangelism, other ministry activities
Catering
_Support and Administration:_
Administrative Salaries
Office expenses
Insurance, licenses and other fees
Accounts preparation and examination
Other costs
**3**
**Grants and gifts paid to others**
Organisations:
African Orphanage Project
SEBA Home Mission Fund
Flyers International [Moldova project]
Horsham Churches Together
Ashburnham Place Conference Centre
African Projects
Other organisations (less than £500)
Individuals:||General
Designated
funds
funds
£
£
16,339
0
4,888
0
20,746
0
725
0
364
0
38
0
0
0
0
0
0
0
5,705
0
323
0
1,124
0
960
0
107
0
51,318
0
0
0
0
0
0
0
453
0
500
0
300
0
722
0
0
0
1,974
0
Unrestricted Funds|Restricted
Funds
£
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
300
0
0
0
0
0
0
128
428|Total
2021
£
16,339
4,888
20,746
725
364
38
0
0
0
5,705
323
1,124
960
107
51,318
300
0
0
453
500
300
722
128
2,402|Total
2020
£| |---|---|---|---|---|---| |||General
funds
£
16,339
4,888
20,746
725
364
38
0
0
0
5,705
323
1,124
960
107
51,318
0
0
0
453
500
300
722
0
1,974|||| ||||||15,256
4,794
20,197
670
4,977
61
575
7
164
5,683
522
1,099
905
292| ||||||55,202| ||||||809
2,500
1,100
850
0
200
704
2,024| ||||||8,187| Page 7 ## **LIFE COMMUNITY BAPTIST CHURCH** ## **NOTES TO THE ACCOUNTS** ## **FOR THE YEAR ENDED 30 SEPTEMBER 2021** ## **4 Transactions with related parties** Peter Dibdin served as a church leader and was paid £16,339 [2020: £16,779] for serving in that capacity, not for serving as a trustee. These payments are permitted by the charity's governing document. In addition the charity incurred expenditure totalling £20,745 [2020: £20,197] in respect of the provision of accommodation (which is customary for ministers) for Peter Dibdin, a trustee, so that they could better perform their duties. The trustee Anna Pisani was paid £5,704 [2020: £5,704) in her capacity of part-time administrator, and not as a trustee, as permitted by the governing document. No other trustee received any payment of expenses other than reimbursement of expenditure incurred by them on behalf of the church. |**5**
**Movement of funds**
General funds
Restricted funds
Moldova Fund
Home Mission Fund
Africa Fund
Total funds|Balance at
30Sep2020
£
41,012
41,012
165
0
128
293
41,305|Receipts
£
50,034
50,034
803
0
300
1,103
51,136|Payments
£
-53,293
-53,293
0
0
-428
-428
-53,721|Transfers
£
0
0
0
0
0
0|Balance at
30Sep2021
£
37,753| |---|---|---|---|---|---| ||||||37,753| ||||||968
0
-0| ||||||967| ||||||| ||||||38,721| The Moldova Fund relates to donations given for the support of the Church in Malcoci, Moldova. In future, it is proposed to split these donations between supporting Malcoci and the village of Cobani, in conjunction with Flyers International Partnership Trust. Africa Fund relates to funds donated for the purpose of supporting the work of the Home of Peace Orphanage in Kenya. Page 8 ## **LIFE COMMUNITY BAPTIST CHURCH** ## **NOTES TO THE ACCOUNTS** ## **FOR THE YEAR ENDED 30 SEPTEMBER 2021** ## **6 The Baptist Pension Scheme** ## _Background to the disclosure_ The Church is an employer participating in a pension scheme known as the Baptist Pension Scheme (“the Scheme”), which is administered by the Pension Trustee (Baptist Pension Trust Limited). The Scheme is a separate legal entity and the assets of the Scheme are held separately from those of the Employer and the other participating employers. The Scheme comprises a Defined Contribution Plan and a Defined Benefit Plan. The pension cost shown in the Receipts and Payments Statement comprises contributions to the Defined Contribution Plan and deficiency contributions to the Defined Benefit Plan (see below). The Minister and some members of the church staff are eligible to join the Scheme. ## _The Defined Contribution Plan_ 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 Legal and General Life Assurance Society Limited. 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%. ## _The Defined Benefit Plan_ 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. ## _Actuarial valuation as at 31 December 2019_ A formal valuation of the Defined Benefit (DB) Plan was performed at 31 December 2019 by a professionally qualified Actuary using the Projected Unit Method. The market value of the 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%). The next actuarial valuation of the DB Plan is due as at 31 December 2022. ## _Recovery plan_ A recovery plan dated 30 September 2020 has been agreed to make good the above deficit in assets. Therefore, in addition to the contributions to the DC Plan set out above, the Trustee and the Council agree to a rate of deficiency contributions from churches and other employers involved in the DB Plan. It has been 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 the Council agreed a 50% reduction in all deficiency contributions payable between 1 July 2020 and 31 December 2020. The Recovery Plan envisages deficiency contributions continuing until June 2026. In addition, the Baptist Union of Great Britain agreed to contribute a lump sum of £0.5m by 31 December 2020. Page 9 ## **LIFE COMMUNITY BAPTIST CHURCH** ## **NOTES TO THE ACCOUNTS** ## **FOR THE YEAR ENDED 30 SEPTEMBER 2021** ## _Key assumptions_ The key assumptions underlying the actuarial valuation of the DB Plan were as follows: |Defined Contribution Plan:
Employee contributions
Employer contributions
Deficiency contributions to Defined Benefit Plan
- Post retirement
_Type of financial assumption_
RPI price inflation assumption
CPI price inflation assumption
Minimum Pensionable Income increases (CPI plus 0.75% pa)
Assumed investment returns
- Pre-retirement
Pension increases
Deferred pension increases
- Pre April 2009
- Post April 2009
_Basis for determining the DB plan pension liability_
_Payments made in the year_|_% pa_
3
3
3
3
2
3
3
2.70
2021
£
1,802
2,252
4,054
2,636
6,690|2020
£
1,770
2,213| |---|---|---| |||3,983
2,581| |||6,564| |||| The pension liability disclosed in the Statement of Assets and Liabilities in respect of the DB Plan is based on an estimate of the amount that the charity would be required to pay should the charity decide to settle the debt immediately; the Baptist Pension Scheme (the ‘BPS’) have provided this estimate. The BPS is collecting deficit contributions monthly however these deficit contributions have not been calculated by reference to the charity’s share of the pension deficit and, based on the current schedule of contributions, it is possible that the sum of all future annual deficit contributions will be significantly less than the liability disclosed in the Statement of Assets and Liabilities. The charity does not foresee any circumstances that could result in immediate payment of the whole debt however the trustees believe that the BPS may ask the church to increase its contributions towards the deficit and therefore, to be prudent, they have chosen to disclose a liability for the employer debt in the Statement of Assets and Liabilities. Page 10