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2020-12-31-accounts

Charity registration number: 1161743

MITCHAM LANE BAPTIST CHURCH CIO

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

MITCHAM LANE BAPTIST CHURCH CIO

CONTENTS

Reference and Administrative Details 1
Trustees' Report 2 to 7
Statement of Trustees' Responsibilities 8
Independent Examiner's Report 9
Statement of Financial Activities 10 to 11
Balance Sheet 12
Notes to the Financial Statements 13 to 26

MITCHAM LANE BAPTIST CHURCH CIO

REFERENCE AND ADMINISTRATIVE DETAILS

Trustees D Chambers Rev P Stone N D Morgan H A Chapman M Thomas M Bartimeus Rev G Dunning J Morgan-Smith E Steele O Millington Secretary D Chambers Paid staff Hannah Roberts, Church Manager Anne Linsey, Bookkeeper Mark Nash, Cleaner Principal Office 230 Mitcham Lane London SW16 6NT Charity Registration Number 1161743 Independent Examiner Ransford Agyei-Boamah Harmer Slater Limited Curzon House 2nd Floor 24 High Street Banstead Surrey SM7 2LJ

Page 1

MITCHAM LANE BAPTIST CHURCH CIO

TRUSTEES' REPORT

The trustees present the annual report together with the financial statements of the charity for the year ended 31 December 2020.

Trustees

The trustees who served throughout the year and up to date of authorisation of this report were as follows:

D Chambers, Church Secretary

Rev P Stone

B Myers (resigned 15 October 2020)

N D Morgan

Rev I Hare, Pastor (resigned 1 July 2020)

H A Chapman

D McIlroy (resigned 1 August 2020)

M Thomas, Treasurer

D Afrane (resigned 15 October 2020)

M Bartimeus (appointed 15 October 2020)

Rev G Dunning (appointed 1 February 2021)

J Morgan-Smith (appointed 28 February 2021)

E Steele

O Millington (appointed 30 June 2021)

Objectives and activities

Objects and aims

The principal purpose of Mitcham Lane Baptist Church CIO (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 in other parts of the world.

Significant activities

In fulfilling its purpose, the Church will engage in a range of activities either on its own or with others that will vary from time to time with activities being initiated, expanded, or closed, as appropriate.

The Church's activities include, but are not restricted to:

Page 2

MITCHAM LANE BAPTIST CHURCH CIO

TRUSTEES' REPORT

Public benefit

In planning the activities of the Church, the trustees have considered the Charity Commission's guidance on public benefit and, in particular, the specific guidance on charities for the advancement of religion.

Social investment policies

The Church continues to be active in the local community, providing activities for all age groups which are open to all members of the local community on a non profit making basis that are in addition to the more formal church and related services. These have included running a Marriage Course, a Community Gospel Choir, a guitar and bass workshop and a show by a theatre company.

In addition the Church engages with local schools, hosting the carol services for two local primary schools as well as their talent shows, Christmas plays and an Easter Service. The Church contributes financial and staff support to a local youth centre (Furzedown Youth Centre). The Church was until July 2018 also a local centre of the national charity Christians Against Poverty which provides free debt advice and runs money management courses.

The Church continues to support the Wandsworth Foodbank at St Paul's Church through the provision of food and volunteers.

The Church continues to participate fully in the Furzedown Churches Covenant which was renewed in March 2012 and led to the creation of Furzedown Churches Limited ("FCL") - a registered charity . Regular meetings ensure good sharing of resources and the managing of financial aspects of the relationship. A Youth Minister employed by FCL and the Furzedown Youth Centre Manager share the office space at the Church.

Grantmaking

The Church seeks to fulfil its objective of spreading the Christian message throughout the United Kingdom and worldwide by making grants to individual missionaries supported by the Church and to specific independent missionary and charitable organisations whose aims coincide with those of the Church, including the Home Mission Fund of the Baptist Union of Great Britain and BMS World Mission.

Volunteers

A significant proportion of the Church's activities are run by and with the assistance of volunteers who freely give of their time and skills to support the Church in the furtherance of its aims.

Achievements and performance

Charitable activities

The year was largely dominated by two events - the COVID 19 pandemic and the retirement on health grounds of our Pastor the Rev. Ian Hare.

Page 3

MITCHAM LANE BAPTIST CHURCH CIO

TRUSTEES' REPORT

During the year, the Church continued to deliver Sunday and Holy Day church services open to all as well as regularly meeting either corporately or in small groups for Bible Study, prayer, praise and fellowship. However, the pandemic and Government restrictions meant that for most of the year things were done very differently to normal.

From the start of the first Government lockdown, the Church moved to on-line services although when the restrictions were temporarily eased two live-streamed services were held. The on-line services have proved very successful with many people logging into the service either when it premiers or later. Furthermore, the format of the services has enabled far more people to take part in a variety of ways than at the physical services.

To assist with the on-line services the Church engaged the services (on a contractual basis) of Olivia Mae-Alman. Furthermore, to take account of her increased responsibilities the Church promoted the Church Administrator, Hannah Roberts, to the position of Church Manager. These steps enabled the Church to completely overhaul its website and start Facebook and Instagram pages. To keep in contact with Church members and the wider congregation a weekly notice sheet was e-mailed to them and posted to those not on-line. Pastoral care cards were sent to members of the congregation and flowers to those in particular need.

The normal Youth and Children’s work of the Church had to be suspended because of Government restrictions. The Church has endeavoured to maintain contact with the children and young people by on-line means and Olivia Mae-Alman has assisted with this. Most Church business meetings were conducted mainly or wholly on-line. Some Cell (Home) groups have met on-line or have maintained contact with members by telephone.

At the start of the year our Pastor was working restricted hours because of his continued poor health. Despite this and the efforts of the Church Leadership Team to support him, he again fell ill. On 17 February he advised the Church that on medical advice he had decided to take early retirement on health grounds. Although employed by the Church until the end of July effectively the Church has been without a Pastor for the whole of 2020.

Although the Church speedily set up a Search Team to seek a new Pastor because of Government restrictions, the Baptist Union suspended its ministerial settlement scheme until the end of June. Thereafter the Church used the usual Baptist procedures, modified to take account of COVID 19 restrictions, to find a new Pastor. On 30 September the Church decided by a 94% majority to appoint the Rev Gemma Dunning as its new Pastor and she takes up post on 1 February 2021.

At the Church AGM in October three valued members of the Leadership Team, David McIlroy, Blossom Myers and Dora Afrane stood down. The Church is extremely grateful to them for their dedicated service. At that meeting, Marilyn Bartimeus was elected to the Team. In 2021, efforts will be made to fill the remaining two vacancies.

The normal joint activities with the other Furzedown Churches had to be suspended because of the pandemic. However, there was co-ordination of on-line services at Easter, during August and at Christmas. The Growing Leaders Course was also suspended. It is hoped to resume joint activities in 2021 as Government restrictions ease.

The pandemic and Government restrictions meant that the premises were not available for renting for most of the year. This was a heavy blow to the groups using the premises as well as having a significant adverse effect on the income of the Church. However, a local GP surgery used the premises as a flu vaccination centre. The Church has also agreed that in 2021 the premises will be an NHS COVID 19 vaccination centre.

Page 4

MITCHAM LANE BAPTIST CHURCH CIO

TRUSTEES' REPORT

The Garden of Discovery has been well used by the local community. It has been especially popular as an oasis during the pandemic. For a time during the Government lockdown it was open 24 hours a day. Unfortunately security issues meant that it was necessary to revert to normal opening hours. The popularity of the Garden has caused some excessive wear and tear, which will necessitate repairs in 2021.

The closure of the premises has enabled a number of essential repairs to be made to the premises. In the main Church, the stonemasonry was repaired on all the windows. In addition the Sanctuary floor was taken up, the problems with the damp resolved and a new breathable carpet put down. Significant repairs were made in the large hall - an old heating system was removed, and the whole hall painted. The foyer, lounge, & main toilets were painted. The main office was refurbished and painted. New CCTV was installed in July. In October the gutters were cleared and remedial work carried out on the foyer roof.

The Church is mindful of other communities throughout the world who have less fortunate circumstances and consequently, despite its reduced income, continues to support financially as well as prayerfully targeted areas and projects in a number of overseas locations.

Nearer home, the Fellowship Fund, set up to alleviate poverty among the congregation, has given assistance to a number of people during the year. In October, the Church expanded the terms of the Fund to allow it to make loans where this would be more appropriate than a grant.

Fundraising activities

The Church's activities are principally financed by the voluntary giving of its members and congregation, often supplemented with tax rebates through the Gift Aid scheme, and at cost charges for some of its community activities.

Financial review

The financial position of the charity is set out in the Statement of Financial Activities and Balance Sheet and the related notes and have been prepared in accordance with statutory requirements of the Charities Act 2011 and SORP (FRS 102).

Principal funding sources

The principal funding sources of the Church are the voluntary donations and giving by members of the Church’s congregation together with the allied income tax rebates under the Gift Aid Scheme. The Church also receives a significant amount from three trust funds which have been left in bequests. The rental income from the Vodafone/Telefonica base station in the Church tower continues to provide a substantial income stream under a 15 year lease that runs until 2024. Two of the Church properties were let out for the whole of the year and another for part of the year providing regular monthly income. Hire of the Church premises also provides additional income but this was substantially reduced this year because of the Government restrictions.

Page 5

MITCHAM LANE BAPTIST CHURCH CIO

TRUSTEES' REPORT

Investment policy and objectives

The Church currently owns four properties. One of these (26 Woodnook Road) is used to provide job related accommodation to the Pastor. Two (22 Pretoria Road and a flat (38) at Longlands Court) ) are retained in case either might be needed for job related accommodation at a future date and in the meantime provide an income stream to the Church. The remaining property is a small block of flats (43 Thrale Road) where the Church owns the freehold but which is subject to long term leases apart from part of the garden and garage/outbuildings which are being retained for potential development. As indicated earlier the Church also receives rent from the letting of the Church tower for use as a telecommunications base station.

Policy on reserves

The Church aims to hold reserves that would cover three months revenue expenditure, legal commitments under contracts of employment and a reserve to meet immediate essential expenditure to the Church’s premises necessary to allow the Church to continue to function. At the year-end, the Church had reserves that were considered sufficient to meet its revenue reserves policy. In addition, the Trustees have established a capital reserve to meet any future costs of a capital nature on its freehold assets.

Going concern

The financial statements have been prepared on the ongoing concern basis as in the opinion of the Trustees there are no material uncertainties about the charity’s ability to continue in operational existence.

Future plans

Activities planned to achieve aims

The Churches’ new Pastor takes up her appointment on 1 February 2021. Once she has settled in it is expected that the Leadership Team will want to review the activities of the Church as the Government restrictions are relaxed. Particular attention is likely to be given to the shape of the ministry to young people and children.

Structure, governance and management

Governing document

Mitcham Lane Baptist Church CIO (the "Church") is a Charitable Incorporated Organisation and constitutes a corporate body with limited liability. It is registered with the Charity Commission under number 1161743. The Church was incorporated on 19 May 2015 and is controlled by its governing document, a constitution and is governed by its trustees in accordance with its constitution.

Recruitment and appointment of trustees

The day to day running of the Church is under the control of a singular 'Leadership Team' comprising the Pastor, Church Secretary, Church Treasurer and a number of other elected members. This group is synonymous with the trustee body. The Pastor role is appointed by the Church at a special church meeting and is employed under a letter of appointment. The other trustees are appointed in accordance with the Church's Constitution.

Page 6

MITCHAM LANE BAPTIST CHURCH CIO

TRUSTEES' REPORT

Organisational structure

The Church appoints a Pastor and other paid staff as circumstances require. The Pastor leads the Church community in both spiritual and practical ways and chairs Leadership Team and Church meetings.

The Church employs a part time Manager to oversee day-to-day administrative and financial matters and to manage the premises. It also employs a part time book-keeper to assist the Church Treasurer.

The Church membership elect the Leadership Team (including the Church Secretary and Treasurer) from among themselves to oversee the spiritual and operational aspects of the Church. The Leadership Team meet regularly and administers the Charity by majority decision on behalf of the membership.

Governance code

The trustees are aware of the Charity Governance Code and are considering how the relevant matters can be applied to and implemented by the Church.

Wider network

The Church is a member of The Baptist Union of Great Britain and the London Baptist Association. The holding trustee of the church is the Baptist Union Corporation Limited which is charity number 249635 and which is controlled by the Baptist Union Council. The Baptist Union Corporation Limited also acts as the holding trustee in respect of the church premises themselves.

The Church is also a member of Furzedown Churches Limited. This company is controlled by four Furzedown Churches - three Anglican Churches and this Church, to run joint activities.

The annual report was approved by the trustees of the charity on 18 October 2021 and signed on its behalf by:

......................................... ......................................... D Chambers M Thomas Secretary and Trustee Trustee

Page 7

MITCHAM LANE BAPTIST CHURCH CIO

STATEMENT OF TRUSTEES' RESPONSIBILITIES

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

The law applicable to charities requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the constitution. The trustees are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by the trustees of the charity on 18 October 2021 and signed on its behalf by:

......................................... D Chambers Secretary and Trustee

......................................... M Thomas Trustee

Page 8

MITCHAM LANE BAPTIST CHURCH CIO

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF MITCHAM LANE BAPTIST CHURCH CIO

I report to the charity trustees on my examination of the accounts of the charity for the year ended 31 December 2020 which are set out on pages 10 to 26.

Respective responsibilities of trustees and examiner

As the charity’s trustees of Mitcham Lane Baptist Church CIO 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 Mitcham Lane Baptist Church CIO'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 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 respect of Mitcham Lane Baptist Church CIO 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 accounting 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.

......................................

Ransford Agyei-Boamah FCCA ACA Institute of Chartered Accountants in England and Wales

Harmer Slater Limited Curzon House 2nd Floor 24 High Street Banstead Surrey SM7 2LJ

18 October 2021

Page 9

MITCHAM LANE BAPTIST CHURCH CIO

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020

Note
Income and Endowments from:
Donations and legacies
2
Other trading activities
3
Investment income
4
Other income
5
Total income
Expenditure on:
Raising funds
6
Charitable activities
7
Total expenditure
Net income/(expenditure)
Gross transfers between
funds
Net movement in funds
Reconciliation of funds
Total funds brought forward
17
Total funds carried forward
17		 Unrestricted
£
95,099
9,862
103,106
170
208,237
(12,652)
(157,390)
(170,042)
38,195
(3,336)
34,859
1,006,187
1,041,046		 Restricted
£
14,696
-
1,452
553
16,701
-
(18,617)
(18,617)
(1,916)
3,336
1,420
8,771
10,191		 Endowment
£
-
-
-
-
-
-
-
-
-
-
-
3,408,020
3,408,020		 Total
2020
£
109,795
9,862
104,558
723
224,938
(12,652)
(176,007)
(188,659)
36,279
-
36,279
4,422,978
4,459,257

Page 10

MITCHAM LANE BAPTIST CHURCH CIO

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020

Note
Income and Endowments from:
Donations and legacies
2
Other trading activities
3
Investment income
4
Other income
5
Total income
Expenditure on:
Raising funds
6
Charitable activities
7
Total expenditure
Net income/(expenditure)
Gross transfers between
funds
Net movement in funds
Reconciliation of funds
Total funds brought forward
17
Total funds carried forward
17		 Unrestricted
£
95,800
30,899
65,036
149
191,884
(5,316)
(153,336)
(158,652)
33,232
(3,896)
29,336
976,074
1,005,410		 Restricted
£
16,736
-
1,512
1,569
19,817
-
(22,936)
(22,936)
(3,119)
3,896
777
8,771
9,548		 Endowment
£
-
-
-
-
-
-
-
-
-
-
-
3,408,020
3,408,020		 Total
2019
£
112,536
30,899
66,548
1,718
211,701
(5,316)
(176,272)
(181,588)
30,113
-
30,113
4,392,865
4,422,978

All of the charity's activities derive from continuing operations during the above two periods.

Page 11

MITCHAM LANE BAPTIST CHURCH CIO

(REGISTRATION NUMBER: 1161743) BALANCE SHEET AS AT 31 DECEMBER 2020

Note
Fixed assets
Tangible assets
13
Current assets
Debtors
14
Cash at bank and in hand
Creditors: Amounts falling due within one year
15
Net current assets
Net assets
Funds of the charity:
Endowment
17
Restricted
17
Unrestricted income funds
Unrestricted
17
Total funds
17		 2020
£
4,319,118
10,561
145,761
156,322
(16,183)
140,139
4,459,257
3,408,020
10,191
1,041,046
4,459,257		 2019
£
4,308,521
10,951
131,013
141,964
(27,507)
114,457
4,422,978
3,408,020
8,771
1,006,187
4,422,978

The financial statements on pages 10 to 26 were approved by the trustees, and authorised for issue on 18 October 2021 and signed on their behalf by:

......................................... ......................................... D Chambers M Thomas Secretary and Trustee Trustee

Page 12

MITCHAM LANE BAPTIST CHURCH CIO

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

Statement of compliance

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 (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

Basis of preparation

Mitcham Lane Baptist Church CIO meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

Exemption from preparing a cash flow statement

The charity has taken advantage of the exemption available under Section 7 'Statement of Cash Flows' of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of ireland' in preparing these financial statements. Consequently, no Statement of Cash Flows has been presented. Ireland'

Going Concern

The trustees have considered the impact of COVID-19 on the church’s financial position, liquidity and future performance together with financial projections for the church and over the foreseeable future and have also reviewed the availability of banking facilities. After making enquiries, the trustees are satisfied that the church has sufficient resources to continue in operation for the foreseeable future, being at least 12 months from the date of signing the financial statements. Accordingly, they continue to adopt the going concern basis in preparing the church’s financial statements.

Income and endowments

Voluntary income including donations, gifts, legacies and grants that provide core funding or are of a general nature is recognised when the charity has entitlement to the income, it is probable that the income will be received and the amount can be measured with sufficient reliability.

Donations and legacies

Donations and legacies are recognised on a receivable basis when receipt is probable and the amount can be reliably measured.

Investment income

Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.

Page 13

MITCHAM LANE BAPTIST CHURCH CIO

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

Expenditure

All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the purpose and nature of expenditure.

Raising funds

These are costs incurred in attracting voluntary income, the management of investments and those incurred in trading activities that raise funds.

Charitable activities

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Grant expenditure

The Church makes grants to missionaries it directly supports and other individual and organisations whose objectives complement the Church's charitable activities. They are accounted for in the year in which they are paid. The Church also makes donations to local community organisations of staff and volunteer time and other resources.

Grant provisions

Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty about either the timing of the grant or the amount of grant payable. Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

Support costs

Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage.

Most of the local community charitable activities, management and administration of the Church 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.

Page 14

MITCHAM LANE BAPTIST CHURCH CIO

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

Taxation

The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

Tangible fixed assets

Tangible fixed assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of property, fixed assets includes directly attributable incremental costs incurred in their acquisition.

Depreciation

Depreciation is provided at the following annual rates in order to write off each asset, other than land, over its estimated useful life.

Asset class Depreciation method and rate
Freehold property nil
Fixtures & equipment 20% on cost

The Church premises constitutes an inalienable asset, but not a heritage asset, as, under the terms of the Trust Deed, the church premises are legally required to be retained indefinitely for the Church's own use in achieving its charitable objectives and require external consent before the Church may dispose of the church premises. Reliable cost information is not available for the church premises and conventional valuation approaches lack sufficient reliability. Accordingly the Church premises have been included in the financial statements at insurance value. The freehold houses have been included in the financial statements at depreciated replacement cost as at 1 January 2014 using standard techniques and published information or cost if acquired later.

No depreciation arises in the year on the freehold properties as in the opinion of the trustees the residual value of the properties are not materially different from their carrying amount in the financial statements. An impairment review of the properties was conducted at the year end and the recoverable value was not less than the carrying value.

Receivables

Receivables are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of receivables is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and at bank.

Page 15

MITCHAM LANE BAPTIST CHURCH CIO

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

Payables

Payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payables are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Payables are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Fund structure

Unrestricted income funds are general funds that are available for use at the trustees' discretion in furtherance of the objectives of the charity.

Restricted income 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.

Pensions and other post retirement obligations

The charity operates a defined contribution pension scheme which is a pension plan under which fixed contributions are paid into a pension fund and the charity has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised in the Statement of Financial Activities when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Financial instruments

The charity only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

2 Income from donations and legacies

Unrestricted

Offerings
Gift aid		 General
£
77,455
17,644
95,099		 Restricted
£
14,696
-
14,696		 Total
2020
£
92,151
17,644
109,795		 Total
2019
£
97,961
14,575
112,536

Page 16

MITCHAM LANE BAPTIST CHURCH CIO

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

3 Income from other trading activities

Unrestricted

Hall lettings
Bible notes		 General
£
9,736
126
9,862		 Total
2020
£
9,736
126
9,862		 Total
2019
£
30,747
152
30,899

4 Investment income

Unrestricted

Unrestricted
Rents received - properties
Rents received - church tower
Trust income
Deposit account interest		 General
£
69,595
21,255
11,976
280
103,106		 Restricted
£
-
-
1,452
-
1,452		 Total
2020
£
69,595
21,255
13,428
280
104,558		 Total
2019
£
34,601
17,805
13,226
916
66,548

The Church receives rent from the use of the church tower as a telecommunications base station under a 15 year contract that runs to 25 October 2026. The deferral period for rents received in advance was revised in the 2018 accounts leading to the lower reported income for the year.

5 Other income

5 Other income
Unrestricted
Total Total
General Restricted 2020 2019
£ £ £ £
Other income 170 553 723 1,718

Page 17

MITCHAM LANE BAPTIST CHURCH CIO

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

6 Expenditure on raising funds

Unrestricted

Note
Other investment management costs;
Other property costs
7 Expenditure on charitable activities
Activity
undertaken
directly
£
Grant
funding of
activity
£
Ministry
39,732
-
Local Community
-
7,677
Mission
-
29,421
Church and
establishment
34,858
-
74,590
37,098		 General
£
12,652
12,652
Activity
support
costs
£
33,911
-
-
30,408
64,319		 Total
2020
£
12,652
12,652
Total
2020
£
73,643
7,677
29,421
65,266
176,007		 Total
2019
£
5,316
5,316
Total
2019
£
71,882
17,360
30,906
56,124
176,272

£157,390 (2019 - £153,336) of the above expenditure was attributable to unrestricted and £18,617 (2019 - £22,936) to restricted.

8 Analysis of support costs

Support costs allocated to raising funds

Property
related costs
£
Total
2020
£
Other costs for generating funds
12,652
12,652
Support costs allocated to charitable activities
Governance
costs
£
Staff
costs
£
Administration
costs
£
Premises
costs
£
Total
2020
£
Ministry
-
18,304
12,439
3,168
33,911
Church and
Establishment
1,794
-
-
28,614
30,408
1,794
18,304
12,439
31,782
64,319		 Property
related costs
£
Total
2020
£
Other costs for generating funds
12,652
12,652
Support costs allocated to charitable activities
Governance
costs
£
Staff
costs
£
Administration
costs
£
Premises
costs
£
Total
2020
£
Ministry
-
18,304
12,439
3,168
33,911
Church and
Establishment
1,794
-
-
28,614
30,408
1,794
18,304
12,439
31,782
64,319		 Total
2019
£
5,316
Total
2019
£
33,236
32,559
64,319 65,795

Page 18

MITCHAM LANE BAPTIST CHURCH CIO

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

9 Grant-making

Analysis of grants

Analysis of grants
Analysis
Local Community
Missions		 Grants to institutions
2020
£
2019
£
4,225
10,386
29,421
30,906
33,646
41,292		 Grants to individuals
2020
£
2019
£
3,452
6,974
-
-
3,452
6,974
6,974

The support costs associated with grant-making are £Nil (31 December 2019 - £Nil).

Below are details of material grants made to institutions.

Name of institution
Baptist Union of Great Britain -
Home Mission Fund
BMS World Mission
LCM
Impact Romania/ Associate Casa de
dragoste si Mila
Christians Against Poverty
The Furzedown Youth Centre Ltd
Furzedown Churches Ltd
Other mission support		 2020
£
6,975
4,650
1,500
13,922
-
4,999
1,200
-
33,246		 2019
£
4,650
4,650
1,500
13,992
700
5,500
9,900
400
41,292

Page 19

MITCHAM LANE BAPTIST CHURCH CIO

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

10Trustees remuneration and expenses

Trustees remuneration
Trustees NIC (Employers)
Trustees' pension contributions
Trustees' expenses reimbursed		 2020
£
15,692
481
-
16,173
913		 2019
£
31,060
274
2,280
33,614
246

No trustees have received any other benefits from the church during the year.

11Staff costs

The monthly average number of persons (including senior management team) employed by the charity during the year expressed as full time equivalents was as follows:

Pastor
Administration
Church cleaner		 2020
No
1
2
1
4		 2019
No
1
2
1
4

No employee received emoluments of more than £60,000 during the year

12Taxation

The charity is a registered charity and is therefore exempt from taxation.

Page 20

MITCHAM LANE BAPTIST CHURCH CIO

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

13 Tangible fixed assets

13 Tangible fixed assets
Cost
At 1 January 2020
Additions
At 31 December 2020
Depreciation
At 1 January 2020
Charge for the year
At 31 December 2020
Net book value
At 31 December 2020
At 31 December 2019		 Freehold
property
£
4,210,602
3,391
4,213,993
-
-
-
4,213,993
4,210,602		 Fixtures &
equipment
£
180,600
42,063
222,663
82,681
34,857
117,538
105,125
97,919		 Total
£
4,391,202
45,454
4,436,656
82,681
34,857
117,538
4,319,118
4,308,521

The church, halls and associated gardens are shown in the balance sheet at depreciated replacement cost based on its insurance value. The other properties are shown at the values transferred from the unincorporated association on an historic cost basis. The estimated combined current market valuation of the other properties is £2 million based on comparable property values.

14 Receivables

14 Receivables
Gift aid tax
Prepayments		 2020
£
6,717
3,844
10,561		 2019
£
6,771
4,180
10,951

15 Payables: amounts falling due within one year

Accruals
Income in advance		 2020
£
2,099
14,084
16,183		 2019
£
2,562
24,945
27,507

Page 21

MITCHAM LANE BAPTIST CHURCH CIO

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

16 Obligations under leases

Operating lease commitments

Total future minimum lease payments under non-cancellable operating leases are as follows:

Other
Within one year
Between one and five years		 2020
£
4,675
3,117
7,792		 2019
£
4,675
7,792
12,467

17 Funds

Unrestricted
General
General fund
Manses and other properties
Capital projects and
equipment
Alfred Young Trust
Restricted
Romania appeal
Designated giving
Fellowship Fund
Garden of discovery
Youth work
Sunshine Toddlers Group
Alice Mary Young trust
Roland Adams trust
Total restricted
Endowment
Church Premises
Total funds		 Balance at
1 Jan 20
£
336,102
669,725
360
-
1,006,187
2,646
421
3,484
-
1,734
486
-
-
8,771
3,408,020
4,422,978		 Incoming
resources
£
196,261
-
-
11,976
208,237
13,405
390
901
-
-
553
936
516
16,701
-
224,938		 Resources
expended
£
(158,066)
-
-
(11,976)
(170,042)
(13,922)
(774)
(1,478)
(249)
-
(742)
(936)
(516)
(18,617)
-
(188,659)		 Transfers
£
(3,336)
-
-
-
(3,336)
3,000
384
-
249
-
(297)
-
-
3,336
-
-		 Balance at
31 Dec 20
£
370,961
669,725
360
-
1,041,046
5,129
421
2,907
-
1,734
-
-
-
10,191
3,408,020
4,459,257

Page 22

MITCHAM LANE BAPTIST CHURCH CIO

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

Unrestricted
General
General fund
Manses and other properties
Capital projects and
equipment
Alfred Young Trust
Restricted
Romania appeal
Designated giving
Fellowship Fund
Garden of discovery
Youth work
Sunshine Toddlers Group
Alice Mary Young trust
Roland Adams trust
Total restricted
Endowment
Church Premises
Total funds		 Balance at
1 Jan 19
£
306,767
669,725
360
-
976,852
1,658
-
3,264
-
2,889
182
-
-
7,993
3,408,020
4,392,865		 Incoming
resources
£
180,171
-
-
11,713
191,884
11,980
3,277
1,480
-
-
1,568
911
601
19,817
-
211,701		 Resources
expended
£
(146,940)
-
-
(11,713)
(158,653)
(13,992)
(2,856)
(1,260)
(896)
(1,155)
(1,264)
(911)
(601)
(22,935)
-
(181,588)		 Transfers
£
(3,896)
-
-
-
(3,896)
3,000
-
-
896
-
-
-
-
3,896
-
-		 Balance at
31 Dec 19
£
336,102
669,725
360
-
1,006,187
2,646
421
3,484
-
1,734
486
-
-
8,771
3,408,020
4,422,978

Page 23

MITCHAM LANE BAPTIST CHURCH CIO

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

The nature and specific purposes for which the funds are to be applied are as follows:

General Reserve

This fund is money set aside in accordance with the Church's reserve policy further details of which are given in the Trustees Report.

Manses and Other Properties

This fund comprises the freehold Manses and other properties owned by the Church.

Capital Projects and Equipment

This fund is for the replacement and upgrading of the Church's premises and the replacement of equipment for use within the Church's premises.

Garden of Discovery

The Church has converted part of its site into a Garden of Discovery to allow members of the congregation and the local community to enjoy a tranquil and natural outdoor site in the context of the Church's urban setting to provide opportunities for learning more about themselves and God.

Designated Giving

This represents money given, either in response to a direct appeal or at the discretion of the individuals concerned, to be used for a pre-defined specific purpose that relates to the activities of the Church.

Christians Against Poverty (CAP)

The church has set up a CAP centre operated and facilitated by volunteers from the church. CAP is an independent charity that offers free advice to members of the local community with personal financial problems. This is funded from the General fund.

Fellowship fund

This represents money given, either in response to a direct appeal or at the discretion of the individuals concerned, to be used to meet the immediate financial needs of church members on a confidential basis on discretion of the leadership team.

Sunshine Toddler Group

The church has set up a toddler group that is based at the church's premises that is open to all members of the local community. This activity ceased during the year to 31 December 2020 and the trustees transferred the related unused funds amounting to £297 into the general funds.

Page 24

MITCHAM LANE BAPTIST CHURCH CIO

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

Trusts

The Alice Mary Young Trust and Roland Adams Trust are will trusts where the funds are held independently from the church. The church is entitled to the income from these trusts which must be used for building work on any building and on the building and fabric of the church premises respectively. The Alfred Young Trust is a will trust whose assets are held independently from the church and whose income is available for the leadership team to use in the manner it determines.

Other funds

The Romania Appeal is a specific mission based overseas project that is supported by the church and is consistent with the church's charitable objectives. Youth work relates to income specifically received in respect of youth work carried out by the church. Other funds relate to donations specifically given for individual projects and charitable purposes.

Endowment Funds

This comprise the church premises and is held on trust by The Baptist Union Corporation Limited to be retained indefinitely as a place of Christian worship.

Transfers between funds comprise payments between the funds made in accordance with the nature and, where applicable, restrictions of the fund.

18 Analysis of net funds

18 Analysis of net funds
Analysis of net assets between
funds
Tangible fixed assets
Current assets
Current liabilities
Total net assets
Analysis of net assets between
funds - 2019
Tangible fixed assets
Current assets
Current liabilities
Total net assets		 Unrestricted
General
£
910,518
154,172
(16,183)
1,048,507
Unrestricted
General
£
898,766
141,580
(27,507)
1,012,839		 Restricted
£
580
2,150
-
2,730
Restricted
£
1,735
384
-
2,119		 Endowment
Permanent
£
3,408,020
-
-
3,408,020
Endowment
Permanent
£
3,408,020
-
-
3,408,020		 Total funds
£
4,319,118
156,322
(16,183)
4,459,257
Total funds
£
4,308,521
141,964
(27,507)
4,422,978

Page 25

MITCHAM LANE BAPTIST CHURCH CIO

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

19 Related party transactions

Trustees

The Pastor, who is also a trustee, is appointed under a letter of appointment and was remunerated for his duties as an office-holder, details of which are disclosed in the financial statements. The Church also provided job related accommodation, paid certain property related costs and reimbursed expenses related to his office.

Apart from their individual voluntary giving to the Church and reimbursement to them of specific expenditure directly attributable to the activities of the Church there were no related party transactions between the other trustees and the Church. Apart from the above, no trustee was reimbursed any personal expenses incurred by them for services provided to the Church or received any remuneration from the Church (2019 - Nil).

20 Ultimate controlling party

The Church is controlled by the trustees under the general guidance of the Church Meeting in accordance with the Church's constitution.

21 Events after the financial period

There have been no significant events between the year end and the date of approval of these financial statements which would require a change to, or disclosure in, the financial statements other than the ongoing effects of the outbreak of the contagious disease COVID-19.

This remains an emerging global risk for all individuals and businesses. It is not clear for how long the current outbreak will last or how much more extensive it will become, or the further measures that will be taken by governments and others to seek to control the outbreak and its impact.

Page 26

MITCHAM LANE BAPTIST CHURCH CIO

TRUST FUNDS FOR THE YEAR ENDED 31 DECEMBER 2020

ALICE MARY YOUNG TRUST FUND

(Registered Charity No 261161)

Accounts for the Year ending 31 December 2020

Opening Balance
Income
From Investments
Expenditure
To Mitcham Lane Baptist Church for repairs to Church
Closing Balance		 £
-
936
(936)
-

ALFRED YOUNG TRUST FUND

(Registered Charity No 266791)

Accounts for the Year ending 31 December 2020

Opening Balance
Income
From Investments
Expenditure
To Mitcham Lane Baptist Church for repairs to Church
Closing Balance		 £
-
11,976
(11,976)
-

Trustees Annual Report

Alfred Young was a dedicated long-standing member of the Church. He was a Sunday School Teacher and for a very many years a Deacon of the Church with a special interest in the buildings. He was one of the very few people to be given the honour of being made a life deacon of the Church. When his wife died he set up a Trust Fund in her name for the Church with the stipulation that the income should be used on the buildings (including the gardens) of the Church. When he died, his will established a Trust Fund in his own name but this time could be used for any of the purposes of the Church.

As can be seen in 2020 the income from the Alice Mary Fund was given to the Church to help fund repairs to the floor of the sanctuary. Income from the Alfred Young Fund was given to the Church towards the Pastor’s stipend.

Page 27

MITCHAM LANE BAPTIST CHURCH CIO

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020

Income and Endowments from:
Donations and legacies (analysed below)
Other trading activities (analysed below)
Investment income (analysed below)
Other income
Total income
Expenditure on:
Raising funds (analysed below)
Charitable activities (analysed below)
Total expenditure
Net income
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward		 Total
2020
£
109,795
9,862
104,558
723
224,938
12,652
176,007
(188,659)
36,279
36,279
4,422,978
4,459,257		 Total
2019
£
112,536
30,899
66,548
1,718
211,701
5,316
176,272
(181,588)
30,113
30,113
4,392,865
4,422,978

Page 28

MITCHAM LANE BAPTIST CHURCH CIO

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020

Donations and legacies
Offerings
Gift aid
Other trading activities
Hall lettings
Bible notes
Investment income
Deposit account interest
Trust income
Rents received - properties
Rents received - church tower
Raising funds
Support costs		 Total
2020
£
92,151
17,644
109,795
9,736
126
9,862
280
13,428
69,595
21,255
104,558
12,652
(12,652)		 Total
2019
£
97,961
14,575
112,536
30,747
152
30,899
916
13,226
34,601
17,805
66,548
5,316
(5,316)

Page 29

MITCHAM LANE BAPTIST CHURCH CIO

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020

Charitable activities
Grants to individuals
Grants to institutions
Wages and salaries
Hire of plant and machinery (Operating leases)
Light and heat
Church insurance
Church repairs and maintenance
Manse running costs
Garden of discovery
Depreciation of fixtures and fittings
Depreciation of fixtures and fittings
Training
Telephone
Postage and stationery
Subscriptions and licences
Church cleaning
Payroll bureau
Bank charges
Independent examiner's fee
Trustees pensions (Defined contribution) - pension scheme 1
Trustees expenses
Worship
Catering
Preaching fees
Youthwork supplies & costs
Bible notes
Sunshine toddler group
Trustees remuneration
Trustees NIC (Employers)
Trustees' pension contributions		 Total
2020
£
3,452
33,646
18,304
5,136
7,980
5,999
8,090
3,168
249
1,701
33,157
-
1,875
1,012
4,058
6,296
348
10
1,794
2,358
913
17,816
286
1,030
260
154
742
15,692
481
-
(176,007)		 Total
2019
£
6,974
41,292
16,132
5,079
8,632
5,908
9,230
5,344
896
2,409
21,156
565
2,128
775
2,778
6,153
435
-
1,740
-
246
168
426
1,060
512
201
2,419
31,060
274
2,280
(176,272)

Page 30