HANHAM BAPTIST CHURCH Annual report & Financial statement 2021
Contents
Charitable Objective ......................................................................................................... 2 Risk Management ............................................................................................................. 2 Organisational Structure ................................................................................................... 2 Related Parties ................................................................................................................. 4 Pension Provision ............................................................................................................. 4 Charity Trustees ............................................................................................................... 5 Principle Advisors ............................................................................................................. 5 Our Activities ........................................................................................................................ 6 Objectives ......................................................................................................................... 6 Church Life ....................................................................................................................... 6 Children and Young People .............................................................................................. 6 Church in the Community ................................................................................................. 7 Financial Review .............................................................................................................. 7 Unrestricted Funds ........................................................................................................... 8 Designated Funds............................................................................................................. 8 Restricted Funds .............................................................................................................. 8 Church Groups and Organisations Funds ......................................................................... 8 Reserves Policy ................................................................................................................ 8 Statement of Trustees’ Responsibilities ............................................................................ 9 Independent Examiner’s Report ......................................................................................... 10 Accounts ............................................................................................................................ 11 Statement of Assets and Liabilities as at 31 December 2021 .......................................... 11 Statement of Financial Activities - Summary ......................................................... 12 Receipts and Payments for Year ended 31 December 2021 ........................................... 13 Notes to the Accounts - Year ended 31 December 2021 ................................................ 14 Pension Scheme ............................................................................................................ 19 Workplace Pensions ....................................................................................................... 21
1
Annual Report 2021
The Charity Trustees present their Annual Report and Financial Statement for 2021. The Charity, called Hanham Baptist Church, has been registered in The Central Register of Charities since 07 December 2015.
The charity registration number is 1164731; its registered address is at 157a High Street, Hanham, Bristol BS15 3QY
About Hanham Baptist Church
Charitable Objective
The Charity is governed by a constitution which states that the purpose of the Church is the advancement of the Christian faith according to the principles of the Baptist denomination. The Charity may also advance education and carry out other charitable purposes in the United Kingdom and/or other parts of the world.
Risk Management
The Deacons, as Charity Trustees, are engaged in an on-going programme of risk assessment of all major strategic and operational risks, including Health and Safety issues and Safeguarding, in connection with the church buildings and the church activities. Where necessary external professional advice is sought.
During the year as a result of the Covid-19 pandemic some of the church’s activities had to be suspended, and additional precautions were introduced to safeguard both individuals and the premises.
Organisational Structure
In accordance with the Constitution, the members appoint Deacons who serve as Charity Trustees. This includes the Minister, a young people’s worker, and traditionally a Church Secretary and Treasurer, but continue to review these roles to enable a more team-based approach. These people are collectively known as the Diaconate and are responsible for the day-to-day management and oversight of the Church's operations, together with the financial and legal aspects of the Charity. Except for the Minister, all Charity Trustees are normally elected for an initial period of up to three years, after which they are eligible for reelection.
Members of the Church are accepted in accordance with the constitution:
-
accept the Beliefs of the Church;
-
meet the Church’s qualification on Baptism;
-
commit themselves to serving Christ within the Church and beyond;
-
abide by the decisions of the Church Members’ Meeting;
-
acknowledge their responsibilities as Church Members;
2
The Church has a policy of open membership where, at the discretion of the Church Members' Meeting, a person may be accepted into full membership following public profession of their faith.
The Church continues to review its organisational structures, processes, and activities to deliver its objectives. We meet on a regular basis as elected leaders and as a gathering of committed members, to seek guidance and direction from God through prayer.
We continued working to ensure compliance by developing procedures and training in Safeguarding policies. The Church has policies and processes for safeguarding children and adults at risk. These policies are reviewed and reaffirmed annually at a Members' Meeting. The Church operates systems to ensure that all people working with children and adults at risk are vetted with the Disclosure and Barring Service.
Recognising the increasingly wide diversity of our work, the need to respond quickly to change, and the importance of sharing information and opportunities, we greatly value our gatherings or Church Meetings. These enhance our understanding of where God is leading us and help us to build a shared vision. These meetings have responsibility for the overall policy of the Church as well as considering routine matters. In addition, a Special Members' Meeting may be called for any of the purposes set out in the Constitution (Section 10.4).
All members are encouraged to take an appropriate part in the spiritual and practical tasks involved in the furtherance of the Charitable Objectives. All Charity Trustees are aware of the specific guidance issued by the Baptist Union and the Charity Commission and have confirmed that they will act in accordance with such information and directives.
Matters for consideration by the Church Meeting may be tabled by the Charity Trustees or by members. Though the Constitution permits decisions to be made at Church Meetings by appropriate majorities, the Church seeks to work by consensus wherever possible.
The Charity Trustees meet monthly (except August) to receive reports, to act within agreed and delegated guidelines and to make recommendations to the membership. The Trustees have also met on separate occasions to spend time discussing specific issues.
Our aim is to show the love of Jesus Christ in word and deed and to bring people into a closer relationship with Him as living Lord.
Central to the work and witness of the Church is the provision of regular public services of Christian worship. These services usually take place each Sunday at 10.30am and 6.00pm, subject to change as notified. A communion service is included on two Sundays each month. Refreshments/opportunity to socialise and provide pastoral support follows each service. We are grateful to be able to host a Spanish speaking church that was meeting in the New Hall on Sundays from 12:00.
There is a full programme for children and young people during the morning services, seeking to be a friendly and welcoming community open to all. The Church runs a series of house groups that meet on a regular basis. These groups are spread geographically across the area and those attending come from a wide age range. A variety of teaching materials are used. These groups also provide pastoral care and other support to those who attend.
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Other social events - some for the whole fellowship, others specific to men and/or women - are organised throughout the year with additional opportunities during the summer and at Christmas.
The Church does not measure the success of its programmes simply in numbers, including financial data, but also in less tangible areas like fellowship and encouragement. We are blessed with people attending the church from differing ethnic backgrounds, making the church a vibrant community representing a wide range of ages, Christian experience and cultural identities and backgrounds.
Our desire is to be a church with a shared sense of God leading us to serve Him and the communities we live, work, and enjoy our recreation in. Our goal is that in knowing Christ better, we can make Him known to others. In an ever-changing world our Deacons/Trustees recognise that Church life needs to adapt to current circumstances.
Related Parties
The Church is affiliated to the Baptist Union of Great Britain and the West of England Baptist Association both of which are registered charities. The Church receives no grant funding from either of these bodies. The Church pays an annual subscription to BUGB based upon its membership numbers and donates to BUGB (Home Mission Fund) for the Baptist family in the UK – (see Note 4 Page 14).
Pension Provision
The Church is an employer participating in a pension scheme known as the Baptist Pension Scheme (“the Scheme”). The Scheme is a separate legal entity which is administered by the Pension Trustee (Baptist Pension Trust Limited). Details of the scheme are included at the end of the notes to the accounts.
In January 2017, the church opened a qualifying workplace pension scheme (Employers Pension Scheme Reference Smart2358378) for those members of staff who were not eligible for the Baptist Pension Scheme. Details of the scheme are included at the end of the notes to the accounts.
4
Charity Trustees
Minister and Chair of Trustees Revd Peter Cook Secretary vacant Finance Team Leader Geoff Starling (resigned April 2021) Terry Hooper (appointed April 2021) Deacons Robert English Terry Hooper (appointed April 2021 for 1 year) Graham Hunter (appointed April 2021) Anne Knight David Miller Carol Nesbitt Anne Pollard (appointed April 2021 for I year) Judith Shore (appointed April 2021) Geoff Starling (resigned April 2021)
Principal Advisors
Bankers
NatWest Bank plc, PO Box 304, 60 Regent Street, Kingswood, Bristol, BS15 0DY Baptist Union Corporation, Baptist House, 129 Broadway, Didcot, OX11 8RT
Solicitors
Clarke Willmott, Blackbrook gate, Blackwood Park Avenue, Taunton TA1 2PG
Independent Examiner
Mr M. A. Broad, MBE, 5 Sunnymead, Keynsham, Bristol BS31 1JD
Custodian Trustees
The West of England Baptist Trust Company Limited, Little Stoke Baptist Church, Kingsway, Little Stoke, Bristol BS34 6JW are the holding trustees of the following properties
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Church and Hall at High Street, Hanham, BS15 3QY
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Manse at 56 Pearsall Road, Longwell Green, Bristol BS30 9BG
These properties are shown in the Accounts at the current insured values, as no professional valuation has been carried out recently.
5
Our Activities
Objectives
In considering the objectives and planning the activities for the year, the Trustees have followed the guidance issued by the Charity Commission on public benefit. In order to achieve the principal object, which is set out above, the Church provides a variety of activities, both to its membership and to the wider community. The aim is to show the love of Jesus Christ in word and deed and to bring people into a closer relationship with Him as living Lord.
Church Life
The last year has been a year like no other in our church life – at the beginning of the 2021, it looked like the trauma of Covid was coming to an end, but sadly we didn’t know that more of the same lay ahead.
For the first part of the year, we had to continue with limiting ourselves to meetings on Zoom. For those who didn’t have internet access we kept in contact through delivered paper versions of our services, and weekly phone calls. We praised God for the way in which we could stay in contact, but we really did miss meeting together and singing along to a video in your own home just wasn’t the same as being able to worship together. More seriously, being unable to meet and discuss the ordinary life of the church together made it harder to keep the business life of the church on an even keel. The church accounts will show you that we faced real financial difficulties, which were a major matter of prayer, and made us question the way we operate and our staffing. The people of the church came up trumps and the projected shortfall was covered, although in the longer term we still have financial issues to face.
Easing of Covid restrictions in April meant that we were able to move to “hybrid” services, with some booking places in the church, whilst others watched from home. This was a real technical challenge, and we were extremely grateful to all those who helped make this happen. We were also able to run a weekly café at the church foyer which was really appreciate by many of the older people, as the first place that they were able to get out to. In September restrictions eased more and we were able to open our services “normally”, and we had a big celebration weekend and Thank Offering to acknowledge this. It was great to be back together.
The autumn saw the return of KOB, our seniors club, which was really appreciated and yes, the quizzes continued, both online and later in person.
Children and Young People
An area that has been particularly badly impacted by the pandemic is our work with children and young people. For two years our shop windows (our regular meetings) have been closed, whilst children have continued to grow up. This has left us in a position where we are having to do a serious review of this work, rebuilding slowly from the bottom up.
It was good to be able to have a “Light Party” during Halloween at the end of October, when our younger children could enjoy being together, and a barbecue for our older children to which many of those who hadn’t been around for a while returned. It was really good to see the restart of our Cell and Girls’ Brigade groups.
6
Church in the Community
Surprisingly, the pandemic gave us new opportunities of reaching out to our community. We held several collections of food for our local food bank that gathered nearly a ton of food. Our Pastor was able to continue doing Thought for the Day on Radio Bristol and Zoom meetings allowed him to take part in prayer meetings with churches across Bristol and the
At Easter we held a “Walking Church” on Hanham Common for three days. These had various stations where people could pause and reflect on the events of the pandemic. This was really well received by those who used the common and was covered widely in our local media.
In September, in association with Abbeyfield care, we started a Tea and Memories café. In this people watch videos of adverts from the 1950s-70s and then share their memories about them. This has been really appreciated by many in the community. We are very grateful to our local counsellors who enabled us to purchase tables to make this possible. It was good to see the return of our Tots at Ten mums and toddler group and a new development has been a group for child minders in the area at the same time in the church hall, which had enabled them to network and support each other, and the return of the Barnardo’s Breastfeeding Support Group.
It was also good to be able to work on the Hanham Community Remembrance Day service. As veterans from the World Wars have got older it has become increasingly difficult for them to organise this, and it is beneficial to be able to work with local councillors to ensure its continuance.
Financial Review
The church’s Finance team are responsible for managing the income given by members of the congregation and visitors through weekly and monthly donations, which are used to fund the day to day running of the church and the payment of its staff.
During the lockdown, arrangements were put into place to enable freewill cash donations to be banked for those who couldn’t attend church. With these freewill donations together with the many regular standing orders, excluding gift aid tax recovery, amounted to £54,994 a decrease of £2,236 on the 2020 total of £57,230, but we were grateful too for a number of thank-offering gifts amounting to £14,862 received during the year which enabled a surplus for the year to be achieved. The church acknowledges with grateful thanks the legacy of £50,000 received from Robin Argile’s estate, which has enabled much needed refurbishment of the hall kitchen
During the year we received grants totalling £2,825. As a result of the Government’s furlough scheme the church received £2,369 (2020 £6,896) for our Youth worker who was on furlough until March, and a community grant of £456 from Sth Glos. Council. Total income from all sources including mission and legacy gifts, but excluding organisations’ income of £2,252, amounted to £140,624 (2020 £91,295).
During the year expenditure on the general account amounted to £73,676 (2020 £82,232) which was well below projected levels, again mainly as a result of the closure of the church premises and activities through the pandemic lockdowns. Overall, after the transfer of £3,500 budgeted mission gifts which were paid in 2022, there was a surplus on the general account of £10,729, which exceeded the original projections.
7
Additional Mission receipts for the year, including the children’s offerings, the BMS Birthday Scheme and special appeals, amounted to £2,719 (2020 £4,448), £6,548 (2020 £12,510) was distributed to mission projects during the year, including designated giving of £3,751 (2020 £8,000) to Home Mission and Baptist World Mission from the General Fund.
Unrestricted Funds
General Fund - working fund to meet general running expenses
Designated Funds
Legacy Reserve - holding fund for legacies pending final disbursement. Youth Work – Designated funds accrued specifically for youth activities Building Fund - holding fund towards the potential refurbishments.
Restricted Funds
Mission Fund - the church receives and distributes money for other registered charities, including Baptist Union Home Mission, BMS World Mission, Tear Fund, Operation Agri and Kingswood Food Bank. Individual records are maintained for each charity to ensure that these amounts are kept separate from normal church funds.
KoB’s – Balance of a grant from the John Laing Trust towards providing activities and equipment for the older age group.
Willis Trust Fund - the fund was created following a bequest. Both the income from the invested capital together with the capital sum can only be used for young people to support them in training or voluntary work purposes. At the discretion of the deacons, single grants not exceeding £100 can be made per applicant.
Church Groups and Organisations Funds
Organisations associated with the church are listed with the details of money they have received and paid. Normally the monies for these organisations are held separately and controlled by them. All these funds are independently scrutinised and reported. A summary of all the money from these organisations is included in the Statement of Assets and Liabilities and in the notes to the accounts (see note 16).
Reserves Policy
The Trustees have established a policy whereby the unrestricted funds not committed or invested in tangible fixed assets (“the free reserves”) held by the charity should be approximately 3 months of the projected resources expended, projected as £77,700, which equates to approximately £19,425 in the general fund. At this level, the Trustees feel that they would be able to continue the current activities of the church in the event of a considerable drop in donations.
The Trustees continue to monitor the reserves level regularly, and they are satisfied that they have sufficient reserves, at present, in the General Fund, based on anticipated and projected expenditure for its activities together with ongoing income projections, to enable the Church to function effectively in the coming year.
8
Statement of Trustees’ Responsibilities
Charity law requires the trustees (deacons) to prepare financial statements that give a true and fair view of the state of affairs of the charity at the end of the financial year. In doing so the trustees are required to:
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i) Select suitable accounting policies and apply them consistently;
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ii) Make judgements and estimates that are reasonable and prudent;
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iii) State whether applicable accounting standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements; and
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iv) Prepare the financial statements on the ongoing concern basis unless it is inappropriate to presume that the charity will continue in operation.
The Deacons are responsible as trustees for maintaining proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and enables them to ensure that financial statements comply with charity law. The Deacons are also responsible for safeguarding the assets of the Church and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Signature and Declaration
I declare, in my capacity of charity trustee, that:
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➢ the trustees have approved the report above: and
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➢ have authorised me to sign it on their behalf.
Signed
P J Cook
Trustee
Dated 9 June 2022
9
Independent Examiner’s Report
I report on the accounts for the year ended 31 December 2021 which are set out on pages 11 to 18.
Respective responsibilities of trustees and examiner
The trustees are responsible for the preparation of the accounts. The charity’s trustees consider that an audit is not required for this year under section 144 of the Charities Act 2011 (the Charities Act) and that an independent examination is needed.
Having satisfied ourselves that the charity is eligible for independent examination, it is our responsibility to:
examine the accounts under section 145(3)(a) of the Charities Act;
- to follow the procedures laid down in the General Directions given by the Charity Commission under section 145(5)(b) of the Charities Act, and
to state whether particular matters have come to my attention.
Basis of independent examiner’s report
My examination was carried out in accordance with the General Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and the seeking of explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and, consequently, no opinion is given as to whether the accounts present a ‘true and fair view’, and the report is limited to those matters set out in the statement below.
Independent examiner’s statement
In connection with my examination, no matter has come to my attention:
- which gives me reasonable cause to believe that, in any material respect, the requirements:
to keep accounting records in accordance with section 130 of the Act; and
to prepare accounts which accord with the accounting records and comply with the accounting requirements of the Charities Act have not been met, or
- to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
Malcolm A Broad MBE dated 16[th] June 2022
- 5 Sunnymead, Keynsham, Bristol BS31 1JD –
10
Accounts
Statement of Assets and Liabilities as at 31 December 2021
| MONETARY ASSETS Bank Accounts: Nat West Current account COIF Deposit COIF Deposit (Willis Trust) Baptist Union Corporation Other monetary assets: Cash in hand Held by Church Organisations TOTAL ASSETS LIABILITIES REPRESENTED BY: Unrestricted Funds General Fund Legacy Reserve Designated Funds Church Organisations (Designated) Restricted Funds Mission Fund KoBs Willis Trust FIXED ASSETS (Insured Values) Church Building Hall Fixtures and Fittings Manse TOTAL FIXED ASSETS |
£ 17,804 - - 63,842 |
2021 £ |
Notes 16 |
2020 £ 6,885 1,000 952 18,727 |
|---|---|---|---|---|
| 81,646 | 27,564 | |||
| - | - | |||
| 902 | 949 | |||
| 82,548 - |
28,513 - |
|||
| 82,548 | 28,513 | |||
| 33,225 41,665 1,803 902 |
16 13 14 |
22,496 1,000 2,474 949 |
||
| 3,510 491 952 2,150,000 727,000 |
77,595 4,953 |
26,919 88 554 952 |
||
| 82,548 | 28,513 | |||
2,877,000 140,000 379,615 |
2,150,000 727,000 140,000 370,358 |
|||
| 3,396,615 | 3,387,358 |
11
Statement of Financial Activities - Summary
For the period 01 January to 31 December 2021
| Statement of Financial Activities- Summary | Statement of Financial Activities- Summary | Statement of Financial Activities- Summary | Statement of Financial Activities- Summary | Statement of Financial Activities- Summary | Statement of Financial Activities- Summary |
|---|---|---|---|---|---|
| For the period 01 January to 31 December 2021 | |||||
| Unrestricted Funds |
Designated Funds |
Restricted Funds |
Total Funds Prior Year Total Funds |
||
| £ | £ | £ | £ | £ | |
| Total Income | 87,905 | 52,252 | 2,719 | 142,876 92,551 |
|
| Total Expenditure | 73,676 | 12,305 | 2,860 | 88,841 88,610 |
|
| Net Income/Expenditure |
14,229 | 39,947 | (141) | 54,035 3,941 |
|
| Transfers | (3,500) | - | 3,500 | - - |
|
| Net movement in Funds |
10,729 | 39,947 | 3,359 | 54,035 3,941 |
|
| Total Funds Brought forward |
22,496 | 4,423 | 1,594 | 28,513 24,572 |
|
| Total Funds Carried forward |
33,225 | 44,370 | 4,953 | 82,548 28,513 |
|
| Funds | |||||
| General Fund | 33,225 | - | - | 33,225 22,496 |
|
| Building Fund | - |
- | - | - |
600 |
| KoB’s | - | 125 | 491 | 616 635 |
|
| Legacy Reserve | - | 41,665 | - | 41,665 | 1,000 |
| Short Mat Bowls | - | 488 |
- | 488 558 |
|
| ToT’s | - | 289 | - | 289 | 310 |
| Youth Organisations | - | 1,803 | 1,803 1,874 |
||
| Mission Fund | - | - |
3,510 | 3,510 |
88 |
| Willis Trust | - | - | 952 |
952 952 |
|
| 33,225 | 44,370 | 4,953 | 82,548 | 28,513 | |
12
Receipts and Payments for Year ended 31 December 2021
| GENERAL FUND | GENERAL FUND | GENERAL FUND | 2021 | 2021 | Notes | 2020 | 2020 |
|---|---|---|---|---|---|---|---|
| Receipts | |||||||
| Offerings General |
15,764 | 13,026 | |||||
| Gift Aided donations | 39,230 |
54,994 | 44,204 | 57,230 | |||
| Gift Aid Tax reclaimed | 11,050 | 13,404 | |||||
| Donations and legacies | 14,862 | 5,030 | |||||
| Use of premises | 3,669 | 1,730 | |||||
| Investment income | 115 | 224 | |||||
| Other Receipts | 3,215 | 2 |
8,079 | ||||
| 87,905 | 85,697 | ||||||
| Payments | |||||||
| Ministry | 52,319 | 3 | 51,330 | ||||
| Mission | 3,751 | 4 | 8,106 | ||||
| Administration | 4,222 | 5 | 5,163 | ||||
| Church Premises | 9,547 | 6 | 14,098 | ||||
| Manse | 3,837 | 73,676 | 7 |
3,535 | 82,232 | ||
| Surplus (deficit) for the year | 14,229 | 3,465 | |||||
| Transfer | (3,500) | (36) | |||||
| Balance brought forward | 22,496 | 19,067 | |||||
| Balance carried forward | 33,225 | 22,496 | |||||
13
Notes to the Accounts - Year ended 31 December 2021
| 1 | Basis of Accounts | ||
|---|---|---|---|
| These accounts have been prepared on a Receipts & Payments basis and accord with Section 133 of the Charities Act 2011. |
|||
| UNRESTRICTED GENERAL FUND |
14
| 2 | Other Receipts | 2021 | 2020 | |
|---|---|---|---|---|
| Grants | 2,825 | 6,896 | ||
| Use of Photocopier | 16 | 10 | ||
| Church events | - | - | ||
| Sundry Income (incl. refunds) | 374 | 1,173 | ||
| 3,215 | 8,079 | |||
| 3 | Ministry | 2021 | 2020 | |
| Ministerial Costs | ||||
| Stipend, pension & National Insurance See note 17 |
29,305 | 29,760 | ||
| Pension deficiency contribution See note 17 |
3,949 | 2,910 | ||
Fees & Expenses |
1,292 | 750 | ||
| **Youth Worker ** | ||||
| Salary, pension & National Insurance See note 18 |
16,861 | 16,997 | ||
| Fees and expenses | - | 242 | ||
| Visiting preachers | 274 | 205 | ||
| Special Church services & Study Groups | 359 | 118 | ||
| Payroll services | 279 | 348 | ||
| 52,319 | 51,330 | |||
| 4 | Mission | 2021 | 2020 | |
| BU Home Mission | 1,750 | 4,000 | ||
| BMS World Mission | 1,750 | 4,000 | ||
| Kids on Sunday | 251 | 20 | ||
| HBC Youth Work | - | 86 | ||
| 3,751 | 8,106 | |||
| 5 | Administration | 2021 | 2020 | |
| Printing and Stationery | 281 | 1,025 | ||
| Photocopier rental | 1,145 | 1,145 | ||
| Publicity including website | 822 | 961 | ||
| Subscriptions and licences | 1,714 | 653 | ||
| Information Technology | 143 | 565 | ||
| Courses and Away days | - | 186 | ||
| Church Refreshments | - | 137 | ||
| Special events | - | 120 | ||
| Sundry expenses | 117 | 371 | ||
| 4,222 | 5,163 |
15
| 6 | Premises | 2021 | 2020 | ||
|---|---|---|---|---|---|
| Heating | 1,796 | 3,173 | |||
| Lighting | 1,325 | 1,381 | |||
| Cleaning | 490 | 3,482 | |||
| Water rates | 246 | 115 | |||
| Maintenance and repairs | 1,788 | 2,132 | |||
| Church Broadband | 280 | 369 | |||
| Equipment | 587 | 449 | |||
| Insurance | 3,035 | 2,997 | |||
| 9,547 | 14,098 | ||||
| 7 | Housing Costs | 2021 | 2020 | ||
| Council Tax and Water rates | 2,514 | 2,255 | |||
| Manse Telephone | 772 | 727 | |||
| Repairs and general expenses | 83 | 97 | |||
| Insurance | 468 | 456 | |||
| 3,837 | 3,535 | ||||
| DESIGNATED FUNDS | |||||
| 8 | Legacy Reserve Fund | 2021 | 2020 | ||
| Receipts | |||||
| Legacies | 50,000 | 1,000 | |||
| Payments | - | - | |||
| Surplus (deficit) for the year | 50,000 | 1,000 | |||
| Transfers | (9,335) | - | |||
| Balance brought forward | 1,000 | - | |||
| Balance carried forward | 41,665 | 1,000 | |||
| 9 | Youth Work | 2021 | 2020 | ||
| Receipts | |||||
| Income from Activities | - | 148 | |||
| Other Income | - | - | |||
| - | 148 | ||||
| Payments | |||||
| Activities | 71 | 341 | |||
| Other expenditure | - | - | |||
| 71 | 341 | ||||
| Surplus (deficit) for the year | (71) | (193) | |||
| Transfer | - | - | |||
| Balance brought forward | 1,874 | 2,067 | |||
| Balance carried forward | 1,803 | 1,874 | |||
| 10 | Organisations(see note 16) | 902 | 949 |
16
| 11 | 11 | Building Fund | 2021 | 2020 | |
|---|---|---|---|---|---|
| Transfer from LegacyFund | 9,335 | - | |||
| Payments | 9,935 | - | |||
| Surplus(deficit) for theyear | (600) | - | |||
| Balance Brought forward | 600 | 600 | |||
| Balance carried forward | - | 600 | |||
| Note: | |||||
| Payments relate to refurbishingof the hall kitchen | |||||
| RESTRICTED FUNDS | |||||
| 12 | KoB’s | 2021 | 2020 | ||
| Grant | - | - | |||
| Payments | 63 | 85 | |||
| Surplus(deficit) for theyear | (63) | (85) | |||
| Transfer | - | (1) | |||
| Balance Brought forward | 554 | 640 | |||
| Balance carried forward | 491 | 554 | |||
| 13 | Mission Fund | 2021 | 2020 | ||
| Receipts | |||||
| Donations and special appeals 2,719 |
4,394 | ||||
| Children’s Offerings - |
2,719 | 54 | 4,448 | ||
| Payments | |||||
| Disbursements(See note 15) | 2,797 | 4,510 | |||
| Surplus (deficit) for the year | (78) | (62) | |||
| Transfer from General Fund | 3,500 | 36 | |||
| Balance brought forward | 88 | 114 | |||
| Balance carried forward | 3,510 | 88 | |||
| 14 | Willis Trust | 2021 2020 |
|||
| Receipts | |||||
| Interest | - 2 |
||||
| Surplus (deficit) for the year | - 2 |
||||
| Balance brought forward | 952 950 |
||||
| Balance carried forward | 952 952 |
||||
17
| 15 | Giving to Mission | 2021 | 2021 | 2020 | |
|---|---|---|---|---|---|
| General Fund Giving (note 4) | 3,751 | 8,000 | |||
| Home Mission | - | 25 | |||
| Harvest appeal Operation Agri | 1,320 | 3,333 | |||
| BMS Birthday scheme (see note below) | 730 | 240 | |||
| Shoebox Appeal | 200 | 320 | |||
| Tear Fund Big Quiz | 316 | - | |||
| Australian Bush Fire Appeal | - | 492 | |||
| Tear Fund | 131 | - | |||
| Longwell Green School Bibles | - | 100 | |||
| Kingswood Food Bank | 100 | - | |||
| 2,797 | 4,510 | ||||
| Total Mission Giving | 6,548 | 12,510 | |||
| NOTE: During the year, including gifts of £60 paid direct to BMS, a was given to the BMS Birthday Scheme. |
total of £790 (2020 £384) | ||||
| 16 | CHURCH GROUPS AND ORGANISATION ACCOUNTS AS AT 31 DECEMBER 2021 |
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| Opening | Receipts | Payments Closing |
|||
| balances | balances | ||||
| KoB’s | 635* | 437 | 456 616* |
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| Tots at Ten | 310 | 1,595 | 1,616 289 |
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| Short Mat Bowls 2019/21 | 558 | 220 | 290 488 |
||
| TOTALS | 1,503* | 2,252 | 2,362 1,393* |
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| Less funds held by church* | 554 | 491* | |||
| 949 | 902 | ||||
| Total Organisation | |||||
| The books and accounting records of the associated Groups and Organisations listed above relating to the last 12 months of their financial year and have been independently verified and are included in the accounts for information. *£491 is held in the Church’s bank account for KoB’s which is the balance from a grant received in 2019. (See note12). The balance for Organisation funds held in their own accounts is £902 (2020 £949). The Girls Brigade Company holds funds for its use, but should the company close, these funds will be transferred to the national governing body and are therefore not included in the organisational accounts. |
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Pension Scheme
- The Church is an employer participating in a pension scheme known as the Baptist Pension Scheme (the Scheme). The Scheme is a separate legal entity which is administered by the Pension Trustee (Baptist Pension Trust Limited). The Minister is eligible to join the Scheme.
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%.
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 was a defined benefit pension of one eightieth of Final Minimum Pensionable Income for each year of Pensionable Service, together with additional pension in respect of premiums paid on Pensionable Income in excess of Minimum Pensionable Income. The Scheme, previously known as the Baptist Ministers’ Pension Fund, started in 1925, but was closed to future accrual of defined benefits on 31 December 2011.
A formal valuation of the Defined Benefit (DB) Plan was performed at 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%). As a result of the valuation, in addition to the contributions to the DC Plan set out above, it was agreed that the standard rate of deficiency contributions from churches and other employers involved in the DB Plan will remain at previously agreed levels, increasing each year in line with increases in the Minimum Pensionable Income. The deficiency contributions are broadly based on 12% of Pensionable Income / Minimum Pensionable Income, reflecting each employer’s contributions in March 2015. Some employers that were involved in the DB Plan for a short period pay lower contributions. The Trustee and the Council agreed a 50% reduction for all deficiency contributions payable between 1 July 2020 to 31 December 2020.
In addition, the Baptist Union of Great Britain agreed to contribute a lump sum of £0.5m by 31 December 2020. The current Recovery Plan dated 30 September 2020 envisages deficiency contributions continuing until 30 June 2026.
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The key financial assumptions underlying the valuation were as follows:
| Type of assumption | % p.a. |
|---|---|
| RPI price inflation assumption | 3.20 |
| CPIpriceinflationassumption | 2.70 |
| Minimum PensionableIncomeIncreaseAdjustment (above CPI) | 0.50 |
| Assumedinvestmentreturns | |
| -Pre-retirement | 2.95 |
| - Postretirement | 1.70 |
| Minimum PensionableIncomeincreases (CPIplus 0.5% pa) | 3.20 |
| Deferred pension increases | |
| - Pre-April 2009 | 3.20 |
| - PostApril 2009 | 2.50 |
| Pension increases | |
| Based on CPI with an annual floor of 0% and annual cap of 5% | 2.70 |
As there are a large number of contributing employers participating in the Scheme, the Church is unable to identify its share of the underlying assets and liabilities of the scheme. Accordingly, due to the nature of the Scheme, the profit and loss charge for the period represents the employer contributions payable.
Under this scheme the total pension cost for the Church is £7,184 (2020 £6,142).
Under Section 75 of the Pensions Act 1995 the Church is liable for the proportion of the overall deficit (assessed by reference to the cost of securing benefits by the purchase of annuities) applicable to its previous Ministers who were members of the Scheme. It is not possible to quantify this debt without an actuarial calculation. In order to avoid the cost of such a calculation and because the church may not be able to continue its charitable activities following payment of the employer debt which arises upon a cessation event, the Pension Scheme Trustee (after consulting the Pensions Regulator) is not currently pursuing the employer debt but is instead permitting the church to pay the ongoing deficiency contributions outlined above. However, the Pension Scheme Trustee has the right to quantify and seek payment of the debt at any time at its discretion.
The next actuarial valuation of the DB Plan within the Scheme is due as at 31 December 2022.
The estimated employer debt for the church as at 20 December 2021 was £32,900 (2020 - £49,300) but this employer’s debt only becomes payable if the church exits the Scheme or is unable to pay the deficit contributions required by the Scheme trustees. The first estimated employer debt calculation occurred on 28th February 2017 when the debt figure was £136,000 so thanks to the implementation of the 'Family Solution', the debt has been substantially reduced.
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Workplace Pensions
- In January 2017, the church opened a qualifying workplace pension scheme (Employers Pension Scheme Reference Smart2358378) for those members of staff who were not eligible for the Baptist Pension Scheme. The scheme is managed by Smart Pension (Autoenrolment.co.uk) and the pension fund invests the contributions made by the employee and employer in an investment fund to build up over the term of the plan. The pension fund is then converted into a pension upon the employee’s normal retirement age which is defined as when they are eligible for a state pension.
The Pension Regulator sets the minimum contribution level for both the employee and employer based on qualifying earnings. The church’s contribution will not normally exceed the level of that made to members of the Baptist Pension Scheme. Currently only one member of staff is eligible for this pension scheme and the cost to the church in the year was £1,533 (2020 £1,747). There were no outstanding contributions at the year end.
The church has no liability beyond making its contributions and paying across the deductions for the employee’s contributions.
19. Overall pension costs to the church from the two pension schemes are: -
| 2021 | 2020 | |
|---|---|---|
| Baptist Pension Scheme | 7,184 |
6,142 |
| _Workplace Pension _ | 1,533 | 1,533 |
| Total Pension Costs | 8,717 | 7,675 |
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