EVESHAM BAPTIST CHURCH
TRUSTEES ANNUAL REPORT 2021
EE
CONTENTS
| Contents | 2 |
|---|---|
| Trust Information | 3 |
| Trustees Report for the year ended 31stDecember 2020 | 4 |
| Objects | 4 |
| The Church: Its Aims and Objectives | 4 |
| The Year: Its Objectives and Achievements | 4 |
| New Building Development | 5 |
| Plans for the New Year | 6 |
| Financial Review | 6 |
| Grant Making Policy | 7 |
| Risk Management | 7 |
| Statement of Trustees Responsibilities | 7 |
| Church Values | 9 |
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TRUST INFORMATION
| Status | Charitable Incorporated Organisation |
|---|---|
| Trustees | Rev. Dr Edward Pillar (Minister) |
| Dr Tracey Allan (Secretary) until September 2021 | |
| Mr Stuart Brown until December 2020 | |
| Mr Andrew Foster | |
| Mrs Jacqueline Grace until March 2021 | |
| Mr Derek Markie appointed March 2021 | |
| Mr Graham Wells | |
| Registered Address | Cowl Street |
| Evesham | |
| Worcestershire | |
| WR11 4PN | |
| Independent Examiner | Stewardship |
| 1 Lamb’s Passage | |
| London | |
| EC1Y 8AB | |
| Bankers | Cooperative Bank Limited |
| PO Box 250 | |
| Delf House | |
| Southway | |
| Skelmersdale | |
| WN8 6WT |
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10 March 2022
TRUSTEES REPORT FOR THE YEAR ENDED 31ST DECEMBER 2020
OBJECTS
The primary aims of the trust are to fulfil the role of a Christian Church in the Evesham area and to provide help to others in promoting the Christian faith in the United Kingdom and overseas.
THE CHURCH: ITS AIMS AND OBJECTIVES
The Church is not a building, but a gathering of ordinary people of different ages and backgrounds, whose lives have been changed by the Lord Jesus Christ, the Son of God. The New Testament reveals the Church as a community of people, properly taught and cared for, who by loving and serving Jesus Christ, were also committed to love and care for each other and to bring a blessing to the area in which they lived. Evesham Baptist Church, its trustees and members, are committed to seeking to live out those New Testament principles. Evesham Baptist Church is not alone in this, but it is one of many churches in the area, country and all over the world that is committed to following the teaching of Jesus Christ. The vision is to see the people of Evesham Baptist Church come into this experience of knowing Jesus as their Lord, Saviour and friend.
Evesham Baptist Church is a member of the Baptist Union of Great Britain, the Heart of England Baptist Association and the Evangelical Alliance.
Directions relating to the Church are made by the trustees, who are responsible for governing the life and teaching of the church. Day to day decisions on expenditure and activities are decided by the staff and volunteers in charge of different areas of the church, with budgets set and monitored by the trustees. The powers of appointment or removal of trustees rests with the members. New trustees are selected from the members of the church. On being appointed, new trustees spend time with the existing trustees to ensure they understand their responsibilities and the legal and financial framework in which the church operates.
Whilst the church does employ two staff, it is the work of every member of the church, whether employed or not, that will make the difference in the church achieving its great commission. This is done by encouraging all members of the church to live out their faith in Jesus Christ amongst the people they interact with every day; by praying, by visiting the sick and others in need, in being involved in training others, in public teaching and worship, and also in administration. The financial resources of the church, to a very large extent, are given by the members and their private assets and equipment are regularly used in the work of the church. Much of this work is done privately, without recognition, and the hours and value of that time cannot be quantified.
THE YEAR: ITS OBJECTIVES AND ACHIEVEMENTS
2021 continued to be strongly influenced by Covid-19 restrictions. Lockdown was eased in March and guided by Government and the Baptist Union we moved to recommence meeting together for worship in May with short 45-minute services, strict hygiene and ventilation protocols and a booking system. These were gradually relaxed through the rest of the year as the situation improved. Some people were very cautious, but attendance increased to around 50 compared with a pre-pandemic norm of 70. The worship and other activities of the church remained strong throughout with video and Zoom gatherings initially and continuing contact between individuals. Some organisations within the church also began to meet again on site while others continued via Zoom or outside. People certainly missed meeting together as a church family, and some people have felt more isolated during this time, but the fellowship has adapted well. As the year ended it was clear too, that some had changed their Sunday
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habits in particular and enjoyed the more flexible timing they had for watching worship services. Early thinking around the future of “hybrid” worship began.
The second major influence on the pattern of church life was the absence of the minister as he took a sabbatical from June to August. So almost as soon as worship together recommenced it fell to the three deacons to arrange and lead. The group experimented over the three months with a variety of shorter forms. Main forms included a reflection by one of the deacons, a member, a video or visiting speakers. Three of these focused on the parallel thinking towards the church move to a new site planned for the following year. All were videoed and relayed later on the Sunday to those not present.
Overall the objectives of the organisation remained unchanged:
-
Fulfilling the objects in teaching, preaching and showing practical care in the community.
-
Impacting the next generation led by our 0-18 Leader appointed around the middle of the year. Evesham Baptist Church continued to run Music Makers, a parent and toddler group, via a video feed, distributed craft packs and WhatsApp Group. Similar links set up the previous year sustained contacts with older children and young people.
-
The pastoral care of members and contacts of the church led by a deacon. This continued throughout by direct contact, either in person or by phone, with members and contacts once a month, as well as the various on-line fellowship and WhatsApp groups amongst families, Share & Prayer and leaders. Those isolated by the virus and other illnesses, those in residential care, and those with learning disabilities were a particular concern and several major changes occurred for them during the year. The tragic death of a young man who had grown up in the church was a further focus for visits, prayer and support in the form of family meal provision during the year.
-
Supporting the wider community. Continued publicity was given to the work of the Caring Hands (the largest local food bank) and other work in the community, encouraging members to play their part in both long-standing and special initiatives. The church fellowship gave generously both financially and with food supplies especially as Christmas approached.
-
Members involvement with the local Street Pastors continued and active patrols recommenced in July; Street Pastors are trained volunteers from local churches who care about their community. They patrol in teams of men and women, usually from 10.00pm to 3.00am on Friday nights, Saturday nights once a month, and Sunday nights before a Bank Holiday Monday, to care for, listen to and help people who are out on the streets.
-
Bringing support to churches working elsewhere both in the United Kingdom and overseas. Evesham Baptist Church supports the Baptist Missionary Society and from time to time has closer links with individual missionaries. Other individuals are supported with different societies including one regularly working with emergency medical teams and a young woman in Chad.
-
Evesham Baptist Church also works with and supports other local churches under the umbrella of Churches Together in Evesham and District.
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NEW BUILDING DEVELOPMENT
In 2005 we addressed the needs of the Church in terms of our building and recognised that we were unable to expand in our current building. We sought alternative buildings that could accommodate a growing Church family but were not successful in this search. In 2006 we were gifted a parcel of land and since this time have been raising funds to move to a new building on this land.
This continues to be central to our future planning of a new Church & Community Centre on the Offenham Road where we were bequeathed the land. A sale of a portion of the land was completed in 2020 and this is now being developed as a Social Housing Scheme by Bromford Housing Association. A further major appeal in March was held the fellowship offered a mixture of one-off gifts and commitments to give regularly. A revised plan for our centre was approved in September. Detailed engineering design was close to conclusion, however, fuel prices, foundation problems and impact of Covid on various supplies led to cost overruns which we could not countenance, and the decision was made, reluctantly, in December, to significantly reduce the scale and complexity of the building. At the turn of the year our architects reported success in their brief to produce a design which was affordable, met our requirements for the medium term, and had opportunities for later development and expansion. We will progress this, hopefully to tender in the summer and on to construction in October 2022 with a view to opening in late summer 2023.
The trustees have complied with the duty under the Charities Acts to have due regard to the public benefit guidance published by the Charity Commission.
Our Safeguarding and other key policies are kept under review and placed before the Annual Members Meeting each year for recommitment. A Safeguarding Officer reports directly to the Minister, Trustees and relevant outside authorities as necessary.
PLANS FOR THE NEW YEAR
The key strategies for the church are to remain the same; the trustees have not set specific objectives for the coming year in quantitative terms beyond the budget and continuation of existing activities
The new building and related activities referred to above will necessarily dominate some of the business of the church but more broadly we have set out Mission as a key area of thinking alongside Design and Finance as we begin to visualise working in the new area of the town.
There are however two other key areas that the Trustees are working at as we move beyond the pandemic and the retirement of our long-term Church Secretary. The pandemic has undoubtedly had an impact on the number of people volunteering to assist in the daily life of the church itself and with just 4 Trustees and vacancies for offices of Secretary and Treasurer there is a real constraint on capacity. We will be consolidating activities including moving towards a more efficient accounting system, while maintaining the emphasis on those things which are central to our life together, work and mission.
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FINANCIAL REVIEW
The financial reserves of the Church have been strengthened during the year as members have continued to give through the pandemic and outgoings have fallen. Although the budget was not achieved a sizeable surplus of income has been added to general funds to cover increasing administration costs or transfer on to the Building Fund.
The trustees have set a policy of retaining funds sufficient for the foreseeable needs of the Church and to ensure the Church can meet the commitments that have been entered into. Where there is specific expenditure foreseen or expansion planned, amounts from the unrestricted funds (excluding amounts invested in assets for church use) are set aside into a number of designated funds to meet these needs, with the General Fund available to meet the day to day running costs of the Church. A Reserve Fund is retained at a level sufficient to wind up the Church following nine months of fixed costs after an immediate halving of income; at the year end the balance in the Reserve Fund was £22,700. Based on the figures set in the budget for 2021, a Reserve Fund of £22,700 should sufficiently cover the needs detailed in our policy. The unrestricted cash reserves at the year-end were £1,562,200 ~~.~~
£22,700 Reserve Fund per reserves policy, and £1,538,600 other Designated Funds for planned expenditure/expansion (please see note 5 to the accounts).
As we look forward to the next financial year, our budget details a Reserve Fund continuing at £22,700.
As a church we recognise the generosity of the church family, not just with the general giving for the day to day running, but the continued giving to a fund for the New Building. At the end of the financial year, the balance in this fund was £1,942,809 including sale to Bromford of 1.5m.
GRANT MAKING POLICY
Gifts to external organisations and individuals are considered by the trustees on the basis of need and fulfilment of the charitable objectives. The Church aims to distribute gifts totalling 10% of annual unrestricted income, rising to 15% if funds allow.
RISK MANAGEMENT
All major insurable risks are subject to normal Churches and employers’ insurance. Contractual risks are reviewed before being entered into to assess that they could not significantly impact upon the Church’s ability to fulfil its objectives. An annual review of areas of risk is undertaken by the trustees in conjunction with staff and volunteers responsible for the area of activity. The trustees have considered their obligations relating to safeguarding and continue to do so annually.
A central concern in the year was the safe management of the premises and its users during the pandemic and strict protocols were established for a) Worship Services b) all other organisations including those hiring our building. Trustees were guided by Government publications and The Baptist Union’s specific advice to member churches. These have been kept under review and more recently relaxed in line with the reducing risks of infection. We can report that at no point have we been given evidence of infection whilst using the premises.
We are also conscious that we operate in an old building and on two occasions during the year fallen tiles or render have been found nearby. We continue to monitor the situation closely and will take all action necessary to maintain user and neighbour safety levels.
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STATEMENT OF TRUSTEES RESPONSIBILITIES
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.
The trustees confirm that the accounts comply with current statutory requirements and those of the Charity’s trust deed.
Approved by the board of trustees on:
and signed on its behalf by: _______ Dr Edward Morton Pillar (Chair)
Bringing the love of Christ to the community
CHURCH VALUES
Jesus We are committed to Jesus and seek to be his disciples. Welcome We are committed to welcoming all and making a safe place. Community We are committed to making authentic relationships - vulnerable yet available to one another. Inclusive We acknowledge that everyone has an intrinsic value - created and loved by God. We commit ourselves to honour all who come across our paths. Involvement According to gift and ability - all are encouraged to find their ‘right seat’ - in freedom and joy we can grow as we serve. Journey Together we make a spiritual journey to discover Jesus and to make sense of Him.
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Evesham Baptist Church
Report and Accounts Year ended 31 December 2021
1 Lamb's Passage, London EC1Y 8AB www.stewardship.org.uk
EVESHAM BAPTIST CHURCH
LEGAL AND ADMINISTRATIVE DETAILS
FOR THE YEAR ENDED 31 DECEMBER 2021
ADDRESS FOR CORRESPONDENCE Seward Close Cowl Street Evesham WR11 4PN GOVERNING DOCUMENT Charitable Incorporated Organisation 11 June 2015 CHARITY REGISTRATION NUMBER 1162147 TRUSTEES RESPONSIBLE FOR Rev. Dr Edward Pillar MANAGING THE CHARITY Tracey Allan (resigned September 2021) Andrew Foster Jacqueline Grace (resigned March 2021) Derek Markie (appointed March 2021) Graham Wells
CUSTODIAN TRUSTEES Baptist Union Corporation BANKERS Cooperative Bank INDEPENDENT EXAMINER Jaimée Young Stewardship 1 Lamb's Passage LONDON EC1Y 8AB
INDEX
Page 1 Legal and Administrative Details Page 2 Independent Examiner's Report Page 3 Receipts and Payments Account Page 4 Statement of Assets & Liabilities Pages 5-7 Notes to the Accounts Appendix Trustees' report
Page 1
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF
EVESHAM BAPTIST CHURCH
I report to the trustees on my examination of the accounts of Evesham Baptist Church ('the charity') for the year ended 31 December 2021 on pages 3 to 7 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:
-
accounting records were not kept in accordance with section 130 of the 2011 Act; or
-
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
Stewardship 1 Lamb's Passage LONDON EC1Y 8AB
Date:
Page 2
EVESHAM BAPTIST CHURCH
RECEIPTS AND PAYMENTS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2021
| Notes Income receipts Donations Gift aid receipts Other grants Income from letting of facilities Investment income Other Capital and similar receipts 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 Sale of land 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 £ £ 44,846 81 10,569 - - - 182 40 2,689 - - - 58,285 121 - 1,500,000 - 1,500,000 58,285 1,500,121 48,917 8,266 - 6,000 48,917 14,266 9,368 1,485,855 (8,597) 8,597 771 1,494,452 142 66,801 913 1,561,253 Unrestricted Funds |
Restricted Funds £ 102,062 20,033 58,000 - - - 180,095 - - 180,095 111,017 935 111,952 68,143 - 68,143 371,357 439,501 |
Total 2021 £ 146,989 30,602 58,000 222 2,689 - 238,502 1,500,000 1,500,000 1,738,502 168,200 6,935 175,135 1,563,367 - 1,563,367 438,300 2,001,667 |
Total 2020 £ |
|
|---|---|---|---|---|---|
| General Funds £ 44,846 10,569 - 182 2,689 - 58,285 - - 58,285 48,917 - 48,917 9,368 (8,597) 771 142 913 |
|||||
| 69,839 15,067 - 151 1,328 342 |
|||||
| 86,727 | |||||
| - | |||||
| - | |||||
| 86,727 | |||||
| 52,035 11,158 |
|||||
| 63,193 | |||||
| 23,534 - |
|||||
| 23,534 414,766 |
|||||
| 438,300 |
The notes on pages 5 - 7 form part of these accounts.
Page 3
EVESHAM BAPTIST CHURCH
STATEMENT OF ASSETS AND LIABILITIES
FOR THE YEAR ENDED 31 DECEMBER 2021
| A Cash funds Cash at bank with immediate access Notice deposits Petty cash B Other monetary assets Gift aid due to charity C Liabilities Falling due within one year: BU Pension scheme deficit Trade creditors Accrued expenses PAYE/NI owed Accounts preparation and independent examination Christmas Appeal 2020 Falling due after one year: BU Pension scheme deficit Note 6 Total D Assets retained for charity's own use Church buildings and land Church contents Manse |
General Designated funds funds £ £ 748 29,499 - 1,531,754 165 - 913 1,561,253 719 - 719 - 4,033 - 1,260 - - - 362 - 1,320 - - - 6,975 - 44,367 - 44,367 - 51,342 - Unrestricted Funds |
Restricted funds £ - 439,501 - 439,501 711 711 - - - - - - - - - - |
Total 2021 £ 30,247 1,971,255 165 2,001,667 1,430 1,430 4,033 1,260 - 362 1,320 - 6,975 44,367 44,367 51,342 Value 2021 £ 1,023,870 85,086 328,772 1,437,728 |
Total 2020 £ |
|---|---|---|---|---|
| 19,757 418,502 41 |
||||
| 438,300 | ||||
| 413 | ||||
| 413 | ||||
| 2,973 26 45,891 343 960 410 |
||||
| 50,602 70,327 |
||||
| 70,327 | ||||
| 120,929 | ||||
| Value 2020 £ |
||||
| 911,240 77,175 288,586 |
||||
| 1,277,001 |
The trustees have used insurance values as the trustees are unable to reliably estimate current values; insurance values may differ materially from current values.
The title to the church building at Cowl Street and the Manse are held by the Baptist Union Corporation as Custodian Trustee. The church building is held as an endowment fund with proceeds to be used for capital expenditure only.
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 date _____Andrew Foster _____
The notes on pages 5 - 7 form part of these accounts.
Page 4
EVESHAM BAPTIST CHURCH
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 DECEMBER 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 Minister Note 4 Church building costs (including employment) Manse costs New building Church activities Administration and support Governance 3 Grants and gifts paid to others Organisations: Baptist Missionary Society HEBA Home Mission Fund Tearfund Embrace the Middle East Salvation Army Organisations < £1,000 |
Unrestrict | Designated funds £ - - - 7,440 826 - - 8,266 2,500 2,000 1,000 - - 500 6,000 ed Funds |
Restricted Funds £ - - - 110,984 33 - - 111,017 - - - - - 935 935 |
Total 2021 £ 35,213 5,045 5,226 118,424 1,327 2,035 930 168,200 2,500 2,000 1,000 - - 1,435 6,935 |
Total 2020 £ |
|
|---|---|---|---|---|---|---|
| General funds £ 35,213 5,045 5,226 - 469 2,035 930 48,917 - - - - - - - |
||||||
| 34,376 6,239 4,359 1,256 2,464 2,380 960 |
||||||
| 52,035 | ||||||
| 2,500 2,000 1,400 2,000 2,000 1,258 |
||||||
| 11,158 |
4 Transactions with related parties
The total costs (stated in Note 2) for the minister Edward Pillar consist of his stipend, pension, expenses of office and housing costs (which is customary for ministers). These payments are for his services to the Church and not for acting as a trustee, as permitted by the governing document. The minister is not party to any decisions about these costs.
No other trustees were paid any expenses during the year and there were no transactions with trustees other than to reimburse them for amounts they spent on behalf of the Church.
Page 5
EVESHAM BAPTIST CHURCH
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 DECEMBER 2021
| vement of funds General funds Designated funds Mission Giving Fabric Fixed Assets Youth and Children's Work New Building Outreach Seward Close Amenities Reserve Surplus Fund Restricted funds Children's Work Fred Hands Legacy Mission Giving New Building Word for Today Total funds |
Opening balance £ 142 1,363 5,253 3,000 3,833 13,202 10,000 378 22,700 7,072 66,942 935 1,000 877 368,546 - 371,357 438,300 |
Receipts £ 58,285 - - - 81 1,500,040 - - - - 1,558,407 - - 525 179,445 125 180,095 1,738,502 |
Payments £ (48,917) (6,000) - - (826) (7,440) - - - - (63,183) - - (935) (110,984) (33) (111,952) (175,135) |
Transfers £ (8,597) 5,763 - - - - - - - 2,834 - - - - - - - - |
Closing balance £ 913 1,126 5,253 3,000 3,088 1,505,802 10,000 378 22,700 9,906 |
|---|---|---|---|---|---|
| 1,562,166 | |||||
| 935 1,000 467 437,007 92 |
|||||
| 439,501 | |||||
| 2,001,667 |
5 Movement of funds
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(s) 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.
Page 6
EVESHAM BAPTIST CHURCH
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 DECEMBER 2021
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 contributed a lump sum of £0.5m in 2020.
| Employer's contributions to Defined Contribution Plan Employer's deficiency contributions to Defined Benefit Plan Payments made in the year |
2021 £ 3,366 4,033 7,399 |
2020 £ 1,984 2,973 |
|---|---|---|
| 4,957 |
Basis for determining the DB plan pension liability
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 7
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF
EVESHAM BAPTIST CHURCH
I report to the trustees on my examination of the accounts of Evesham Baptist Church ('the charity') for the year ended 31 December 2021 on pages 3 to 7 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
- 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
Stewardship 1 Lamb's Passage LONDON EC1Y 8AB
Date:
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