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2020-12-31-accounts

West Wickham & Shirley Baptist Church – Annual Report and Accounts 2020

West Wickham & Shirley Baptist Church

Annual Report and Accounts 2020

(Charity Reg. No. 1166796)

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West Wickham & Shirley Baptist Church – Annual Report and Accounts

2020

Page
Legal and administrative information 3
Annual Report of the Trustees 5
Independent Examiner's report to the Trustees 14
Statement of financial activities 15
Balance sheet 16
Notes to the financial statements 17

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West Wickham & Shirley Baptist Church – Annual Report and Accounts

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Legal and Administrative Information for the year ending 31[st] December 2020

Charity Name

West Wickham & Shirley Baptist Church

Registered Address

Corner of Wickham Road & Monks Orchard Road, Croydon, CR0 8EH

Charity registration number

1166796

Governing document :

Church Constitution originally dated April 2016, revised March 2019.

Objects of the Charity

The principal purpose of the Church is the advancement of the Christian faith according to the principles of the Baptist denomination. The Church may also advance education and carry out other charitable purposes in the United Kingdom and/or other parts of the world.

The Church has been inspired to embrace the vision to become like ‘ A City on a Hill ’ in the context of Matthew’s Gospel, ch. 5 verse 14 and consequently adopted the following Mission Statement: " Transforming lives and communities with the power of God’s love .”

Trustees

The Trustees who served during the year or who were serving at the date of this report were:

Rev Jonathan Hills (Chair, Senior Minister) Rev Sara Kennett (Minister) Mr Clifford Underhay (Secretary) Mr Paul Bradbury (Treasurer) Mr Philip Jenkins Mr. Neil Selby Mrs Janet Fagon (appt Jan 2020) Mr Okenna Nzelu (appt Jan 2020)

Key Management Personnel

Those in charge of planning, directing, controlling, running and operating the church, including those members of staff who are the senior management personnel to whom the trustees have delegated significant authority or responsibility in the day-to-day running of the charity, are the Trustees, Ministry Leaders, Boys’ Brigade Captain, Girls’ Brigade Captain, and Youth & Children’s Worker.

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West Wickham & Shirley Baptist Church – Annual Report and Accounts

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Legal and Administrative Information for the year ending 31[st] December 2020

Bankers

Lloyds Bank, 137 North End, Croydon, CR0 1TN

Teachers Building Society, Allenview House, Hanham Road, Wimborne, Dorset, BH21 1AG Baptist Union Corporation Ltd, Baptist House, 129 Broadway, Didcot, Oxon, OX11 8RT

Independent Examiner

John Helm ACA, 17 Heathville Road, London N19 3AL

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West Wickham & Shirley Baptist Church – Annual Report and Accounts

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Annual Report of the Trustees for the year ending 31[st] December 2020

The Trustees submit their annual report and the financial statements of West Wickham & Shirley Baptist Church (“the Church”) for the year ended 31 December 2020. The financial statements have been prepared in the format prescribed by the Statement of Recommended Practice: Accounting and Reporting by Charities (SORP2015 (FRS102)) and the Financial Reporting Standard 102. The legal and administrative information set out earlier in this document forms part of this report.

Covid-19 / Going Concern

The significant event to have occurred prior to the signing of these accounts has been the lockdown restrictions made necessary by the Covid-19 pandemic, which broke out in early March 2020.

Each year it is the Trustee’s responsibility to state whether or not the annual accounts have been drawn up on a going concern basis (see the accounting policy note on page 18). Going concern is the assumption that an entity, in this case the Church, has the resources (financial or otherwise) needed to continue operating for the foreseeable future and in particular, for at least 12 months from the date of approval by the Trustees of these annual accounts. If the going concern principle did not apply then the accounts would be drawn up on an insolvent basis.

Clearly, as part of this year’s going concern review, the Trustees have had to consider the likely impact of COVID-19 pandemic on its ministry. It has concluded that the financial risks to that ministry have not increased significantly as a result of the lockdown restrictions imposed by the Government and the resultant closure of the church building and halls. As a result of these restrictions, income from hiring out the church halls has ceased and is not expected to return to anything like a normal level until the latter part of 2021. The impact of the lockdown on the finances of our church family members, whose giving provides the bulk of our financial support, remains unclear but a significant reduction in support is not thought to be likely.

Against this background, the Trustees have reviewed its financial forecast for 2021. This review indicates that it may incur a small deficit in 2021 but that its cash reserves are more than adequate to absorb that deficit. Even so, it took positive steps to reduce the potential impact by furloughing four of its seven employees for much of 2020 and 2021. Accordingly, it has concluded that it is appropriate to prepare the 2020 Accounts on a going-concern basis and that it is not necessary to make any adjustment to these accounts as a result of the lockdown restrictions. The Trustees will continue to keep both the short-term and longer-term impact under review, in particular, the 'degree of return to normality' will be actively monitored in the latter part of 2021, with a view to assessing the likely carryover into 2022 and the effect on the 2022 Budget.

Prior Year Adjustments

The Staff Costs figures for this year include minor adjustments to correct over-accruals in years 2017 and 2018, totalling £1,761.

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West Wickham & Shirley Baptist Church – Annual Report and Accounts

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Annual Report of the Trustees for the year ending 31[st] December 2020

1. Structure, Governance & Management

Trustees are responsible for the day-to-day management of the Church’s business in accordance with the Church’s objects. Trustees are elected by the Church members’ meeting. Trustees will normally serve a term of office of three years but can be re-elected at the end of their first and any subsequent terms.

Trustees meet approximately 6 times per annum to discuss a full range of matters relating to finance, fabric, general administration, the implementation of the church constitution and responsibility for the keeping of the church membership roll.

The financial aspects of the church are the responsibility of the Trustees, but they are managed on a day-to-day basis by the Treasurer, the Finance Group (who are responsible for reviewing the finances and suggesting matters of policy to the trustees), the Offering Counting Team and the Treasurers for the auxiliary departments (e.g. Boys’ Brigade, Girls’ Brigade).

None of the Church’s Trustees, with the exception of the Ministers, receive remuneration.

The induction process for any church member newly-appointed as a Trustee comprises an initial meeting with the Minister and receipt of copies of:

Church Members

Church Membership is open to those who:

Church Members share in the responsibility for the finances, administration, maintenance and activities of the church and elect the Church Leadership. Church Members meet regularly each year for business meetings and receive reports from the Church Leadership.

Risk & Risk Management

The church and its activities operate with the confidence and assurance of God’s provision and protection. Nevertheless, the trustees are aware of the ever-changing risks that the church is exposed to which could affect its ability to fulfil its objectives and purposes. The trustees have put in place a

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West Wickham & Shirley Baptist Church – Annual Report and Accounts

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Annual Report of the Trustees for the year ending 31[st] December 2020

risk management framework supported by a risk management policy and a culture of creating and managing risk assessments for activities to which they are appropriate.

An assessment of the major risks that the church faces is routinely reviewed by the trustees and mitigating controls are put in place and reviewed. Where controls are considered to require additional work to reduce the risk to an acceptable level, a clear action plan and ownership is put in place.

At a high-level the areas of risks identified and monitored by the trustees include:

Risk Area Mitigating Controls
Safeguarding and safety of anyone Safeguarding team, safeguarding policy,
involved in church activities safeguarding training. Health & Safety policy & risk
assessments. Individual activityrisk assessments.
Alignment of church activities to the Appropriate level of leadership and internal
charitable objects/purposes reporting, clear communication of church objectives
to leaders/volunteers.
Proper management of financial Financial controls & procedures, budgeting process,
resources reservespolicy,fiveyearproperty plan.
Compliance with legislation Regularly reviewed set of policies covering all areas
of church life. Staff/volunteer training.

2020 Covid Arrangements

After the lockdown restrictions put in place during March 2020 no in-person members meetings were held for the rest of the year, the AGM was not held and consequently no election of Trustees or Church Officers was held. Following guidance from the Charity Commission the Trustees noted the variation from the church’s Governance Document and that all election would be held over to the AGM in 2021.

During this period members were kept up-to-date with relevant information via e-mail, WhatsApp and periodic Zoom sessions.

2. 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. When planning our activities for the year, the trustees have considered the Charity Commission’s guidance on public benefit. In particular, we try to enable ordinary people to live out their faith as part of our church and local community through:

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West Wickham & Shirley Baptist Church – Annual Report and Accounts

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Annual Report of the Trustees for the year ending 31[st] December 2020

To facilitate this work it is important that we maintain the fabric of the church buildings.

The Activities may include but are not restricted to:

The Church runs a range of activities and organisations for all age-groups. The motivation for all of these has been to demonstrate God’s love to the community, to reach out in His name, to bring people into a saving knowledge of His love, to draw them into the Fellowship of His Church and to build up the Church Family.

During 2020 the church’s activities changed dramatically with the Covid-19 lockdown restrictions. Up to March 2020 and in normal times, the activities and organisations working were:

For Children and Parents:

For Young People

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West Wickham & Shirley Baptist Church – Annual Report and Accounts

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Annual Report of the Trustees for the year ending 31[st] December 2020

For Adults

3. Achievements & Performance

Although activities continued as normal for the first couple of months of 2020, the first lockdown brought all in-person activities to an abrupt halt. As a result, we had to quickly adapt how the church was run, increasing the use of social media and the internet to support the church family.

Throughout most of the year church consisted of the following activities:

A massive thank you goes to all those were involved in setting up and running these activities and kept the mission of the church going during this difficult time.

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West Wickham & Shirley Baptist Church – Annual Report and Accounts

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Annual Report of the Trustees for the year ending 31[st] December 2020

The prolonged enforced isolation which many members experienced during 2020 risked an increase in anxiety, loneliness, and other mental health issues and so an extensive programme of covid-secure visits, regular phone-calls and electronic communication was put in place. As part of this our most vulnerable members were given regular pastoral packages of food and other items to help them cope and let them know that they were not alone. The restriction of activities and other difficulties caused an increase in pastoral situations which had to be dealt with by the ministerial and pastoral teams.

During 2020 we acquired and installed streaming equipment in order to live-stream all Sunday services once in-person services are allowed to resume. This will allow members who are reluctant to return to church until the pandemic risk has sufficiently reduced to share in the family services.

During 2020 the main focus of the weekly sermons was how to be a church of Radical Belonging, and was focused around the following six areas:

4. Financial review

Traditionally the church’s main sources of funding are the free-will offerings of church members and others in attendance at church meetings and income from hiring out the church’s premises and facilities. During 2020 the church’s income from weekly offerings and rental income has been reduced due to the non-availability of the church premises. However, the church membership has continued to support the church financially and many people who would normally give through the offering have transferred to other methods of giving.

Financial Activity and Financial Position

The Statement of Financial Activities and Balance Sheet can be found on pages 15 and 16 respectively. The Church’s total reserves decreased by £4,055 during the year, the free reserves decreased by £35,920. The balance sheet shows total net assets of £2,211,852 at the end of 2020.

Included in total funds are amounts totalling £36,621 which are restricted. These monies have either been raised for and their use restricted to, specific purposes, or they comprise donations subject to donor-imposed conditions. More details of these restricted funds can be found in note 8 to the accounts together with an analysis of movements in the year.

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West Wickham & Shirley Baptist Church – Annual Report and Accounts

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Annual Report of the Trustees for the year ending 31[st] December 2020

The church has maintained a strong financial position at the end of 2020, due mainly to the generous levels of giving by members of the congregation.

The building project has not progressed significantly in the main, due to Covid 19 and is not likely to affect the 2021 income/expenditure.

Due to the unpredictable nature of the pandemic and lockdowns the general fund budget for 2021 . is being managed on a quarter-by-quarter basis and is being reviewed regularly

In addition to the General Fund the church runs several other restricted funds for particular purposes. This includes funds for giving to other organisations such as Baptist Home Mission and Baptist Missionary Society. The Plummer Fund, named after a church member who left a generous bequest, is designated for assistance to young people who undertake missionary work in other countries. The Global Legacy Fund is a fund, created from a legacy left by a church member, which the church aims to distribute to other causes to further the advancement of the Christian Faith and the relief of poverty.

Reserves Policy

The Trustees have established a Reserves Policy which aims to maintain a level of reserves equivalent to three month’s average expenditure. The Church believes this is a reasonable and prudent level but would permit variations from this amount where circumstances warrant this. This would be, for instance, where expenditure is so urgent that to delay it would result in even higher costs later. If this situation should arise then the Church would make plans to rebuild the reserves as quickly as possible.

At 31 December 2020 the church had free reserves of £189,905 (2019: £225,725) as follows:

Total reserves
Less: restricted funds
Less: capital funds
Add: provision (long term)
Free reserves
Free reserves requirement:
3 month’s budgeted routine expenditure		 2020 2019
£
2,215,907

(21,630)

(2,013,527)
44,975
£
2,211,852
(36,621)
(2,013,527)
28,101
189,805 225,725
50,000
50,000

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West Wickham & Shirley Baptist Church – Annual Report and Accounts

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Annual Report of the Trustees for the year ending 31[st] December 2020

Volunteers

The Church is heavily dependent on its membership and congregation working as volunteers in all aspects of the church’s activities, many of which run with little or no impact on the church’s expenditure, but nevertheless contribute substantially to the achievement of the church’s objectives. No accounting for this time and effort has been included in the financial statements.

5. Plans for Future Periods

Plans for the future are uncertain as the Covid-19 pandemic continues causing the church to continue in lockdown and providing support and pastoral care together with online worship services and other activities via Zoom.

The Trustees continue to meet monthly to monitor the situation and, together with Government legislation and guidelines issued by the Baptist Union and London Baptist Association, assess how best to serve church members, worshippers, and other members of our community affected by the current pandemic.

The Trustees have made the church premises available to the National Health Service (NHS) to be used as a vaccination centre. At the time of writing this report, the church buildings are currently operating as a vaccination centre and more than 30,000 vaccinations have been administered.

As part of the ongoing considerations, four employees are being kept on the Government’s furlough scheme; this is reviewed at each monthly Zoom Trustees’ meeting.

The Trustees continue to keep under review the re-opening the church and its activities in a controlled, sensitively managed process.

6. Statement of Trustees’ Responsibilities

The trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England & Wales 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:

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West Wickham & Shirley Baptist Church – Annual Report and Accounts

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Annual Report of the Trustees for the year ending 31[st] December 2020

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 Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They 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.

7. Approval

The report of the Trustees was approved by the Trustees on 15th October 2021 and signed on its behalf by:

Cliff Underhay Trustee

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Independent Examiner's Report to the Trustees of West Wickham & Shirley Baptist Church for the year ending 31[st] December 2020

I report on the accounts of the Church for the year ended 31 December 2020 which are set out on pages 15 to 30 of the charity report and accounts.

Respective responsibilities of trustees and examiner

The charity’s 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 2011 Act) and that an independent examination is needed.

It is my responsibility to:

Basis of independent examiner's statement

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 seeking 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

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 the church 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 applicable 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.

Mr John Helm ACA 17 Heathville Road, London N19 3AL

Date 25 October 2021

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Statement of Financial Activities for the year ending 31[st] December 2020

----- Start of picture text -----
Unrestricted Restricted Capital Total Prior period
Notes Funds Funds Funds Funds Total Funds
£ £ £ £ £
Income and endowments from:
Donations and le gacies 2 156,701 21,589 - 178,290 187,479
Charitable activities 2 11,570 8,272 - 19,842 19,539
Other trading activities 2 5,010 - - 5,010 22,683
Total 173,281 29,861 - 203,142 229,701
Expenditure on:
Charitable activities 3 179,063 28,134 - 207,197 230,452
Total 179,063 28,134 - 207,197 230,452
Net income (5,782) 1,727 - (4,055) (751)
Transfers between funds (13,264) 13,264 - - -
Other recognised gains/(losses):
Gains/(losses) on revaluation of
fixed assets - - - -
Net movement in funds (19,046) 14,991 - (4,055) (751)
Reconciliation of funds:
Total funds brought forward 180,750 21,630 2,013,527 2,215,907 2,216,658
Total funds carried forward 161,704 36,621 2,013,527 2,211,852 2,215,907
----- End of picture text -----

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West Wickham & Shirley Baptist Church – Annual Report and Accounts 2020

Balance Sheet As at 31 December 2020

----- Start of picture text -----
Prior period
Unrestricted Restricted Capital Total Total
Notes Funds Funds Funds Funds Funds
£ £ £ £ £
Fixed Assets:
Tangible assets 4 4,760 - 2,013,527 2,018,287 2,015,615
Total Fixed Assets 4,760 - 2,013,527 2,018,287 2,015,615
Current Assets:
Debtors 5 6,566 138 - 6,704 10,224
Cash at bank and in hand 181,097 36,984 - 218,081 237,787
Total Current Assets 187,663 37,122 - 224,785 248,011
Current Liabilities:
Creditors: Amounts falling due
within one year 6 2,618 501 - 3,119 2,744
Net Current assets 185,045 36,621 - 221,666 245,267
Total assets less current liabilities 189,805 36,621 2,013,527 2,239,953 2,260,882
Other Liabilities:
Defined Benefit Pension Scheme
Liability 7 28,101 - - 28,101 44,975
Total net assets 161,704 36,621 2,013,527 2,211,852 2,215,907
The funds of the charity:
Unrestricted funds 8 161,704 - - 161,704 180,750
Restricted income funds 8 - 36,621 - 36,621 21,630
Capital funds 8 - - 2,013,527 2,013,527 2,013,527
Total charity funds 161,704 36,621 2,013,527 2,211,852 2,215,907
----- End of picture text -----

The financial statements were approved by the Trustees on 15[th] October 2021 and signed on its behalf by:

Paul Bradbury Trustee

The notes on pages 17 to 30 form part of these accounts.

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Notes to the Financial Statements For the year ended 31 December 2020

1. Accounting Policies

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

Basis of accounting

The financial statements have been prepared under the Charities Act 2011 and in accordance with the Charities Statement of Recommended Practice (Charities SORP (FRS 102)) and Financial Reporting Standard 102 (FRS 102). The accounts have also incorporated the amendments defined in Update Bulletin 1 to the Charities SORP (FRS 102), published on 2 February 2016. The financial statements are drawn up on the historical cost basis of accounting except for the revaluation of the residential freehold land and building which is shown at market value.

The financial statements include all transactions, assets and liabilities for which the Church is responsible in law. They do not include the accounts of church groups that owe an affiliation to another body or those that are informal gatherings of church members.

The Church meets the definition of a public benefit entity under FRS 102.

Going Concern

There are no material uncertainties about the charity’s ability to continue as a going concern and accordingly the accounts have been drawn up on a going concern basis.

Income recognition

Voluntary income and donations (including legacies) are accounted for once the Church has entitlement to the income, it is probable the income will be received and the amount of income receivable can be reliably measured. Income from the recovery of tax on gift aided donations is accounted for in the period to which the relevant donation is received. Grant income is recognised on a receivable basis.

The value of any voluntary help received is not included in the accounts but is described in the trustees’ annual report.

The income from trading activities includes rental income from the letting of church premises which is accounted for when earned.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Church; this is normally upon notification of the interest paid or payable by the bank.

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Notes to the Financial Statements For the year ended 31 December 2020

1. Accounting Policies (continued)

Expenditure recognition

Expenditure is accrued as soon as a liability is considered probable, and the amount of obligation can be measured reliably. Longer term liabilities are discounted to present value. The Church is not registered for VAT and accordingly expenditure includes VAT where appropriate.

Charitable expenditure includes those costs in fulfilling the Church’s principal objects, as outlined in the Report of the Trustees. These include governance costs which comprise all costs involving the public accountability of the Church and its compliance with regulation and good practice. These costs include costs related to the independent examination and legal fees.

The church pays pension contributions into the Baptist Pension Scheme, a final salary defined benefit scheme for contributions until 31 December 2011 and a defined contribution scheme for contributions made thereafter. The scheme is a multi-employer scheme and it is not possible to identify the assets and liabilities of the scheme which are attributable to the church. The scheme is therefore accounted for as a defined contribution scheme, with contributions payable to the scheme being accounted for on an accruals basis. In addition, the church currently pays contributions towards a deficit on the defined benefit scheme. The deficit, discounted to present value, is fully provided in these accounts and the charge to the income and expenditure account, which is included in the total pension cost, is the element of the movement in the provision which relates to the movement in the discount.

Rentals under operating leases are charged as incurred over the term of the lease.

Tangible Fixed Assets

Tangible fixed assets are accounted for as follows:

Debtors

Debtors are included at the settlement amount due. Prepayments are valued at the amount prepaid.

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Notes to the Financial Statements

For the year ended 31 December 2020

1. Accounting Policies (continued)

Cash at bank and in hand

Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of opening of the deposit.

Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation arising from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are recognised at their settlement amount.

Fund accounting

The funds held by the charity are either:

2. Income

Unrestricted
Funds
Restricted
Funds
Total		 Prior Year
£ £ £ £
Donations and legacies
Gift Aid 105,216 11,880 117,096 108,642
Donations 16,905 5,947 22,852 11,764
Tax Recovered 28,305 2,970 31,275 29,162
Offering 6,275 792 7,067 29,411
Bequest / Legacy - - - 8,500
Total 156,701 21,589 178,290 187,479
Charitable Activities
Government Grants(Furlough) 10,875 3,211 14,086 -
Fees/Contributions - 1,735 1,735 4,815
Other Income 695 3,326 4,021 14,724
Total 11,570 8,272 19,842 19,539
Other trading activities
LettingIncome 5,010 - 5,010 22,683
Grand Total 173,281 29,861 203,142 229,701

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Notes to the Financial Statements For the year ended 31 December 2020

2. Income (continued)

During 2020 the church made use of the Government’s Covid Furlough scheme and four employees were furloughed either full-time or part-time at various points during the year.

As a result the church received £14,086 in funding from the furlough scheme.

3. Expenditure on charitable activities

----- Start of picture text -----
Unrestricted Restricted
Funds Funds Total Prior Year
£ £ £ £
Staff Costs (see note below) 111,406 5,866 117,272 130,048
Equipment/Materials 21,395 3,035 24,430 20,972
Youth & Children 910 4,427 5,337 12,598
Grants/Gifts (see note below) 12,098 12,063 24,161 11,638
Subs/Fees 5,499 2,112 7,611 11,631
Utilities 9,736 - 9,736 11,404
Building Development - - - 10,124
Building Maintenance 8,652 240 8,892 9,567
Office/Printing etc 1,870 - 1,870 3,290
Insurance 3,131 - 3,131 3,027
Operating Lease (Photocopier) 1,560 - 1,560 1,560
Staff Expenses 222 - 222 1,439
Ind. Examiner's Fee 950 - 950 1,050
Other 290 391 681 880
Publicity 903 - 903 616
Preaching Fees 441 - 441 608
Total 179,063 28,134 207,197 230,452
----- End of picture text -----

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West Wickham & Shirley Baptist Church – Annual Report and Accounts

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Notes to the Financial Statements For the year ended 31 December 2020

3. Expenditure on charitable activities (continued)

3a Staff Costs

----- Start of picture text -----
2020 2019
£ £
Gross pay 115,961 111,592
Pension contributions 8,249 8,433
Pension contributions (Liability Adj) (13,319) 1,726
Employers NI 9,475 9,869
Employment Allowance (4,000) (3,000)
Staff Training - 496
Other Payroll Costs 906 932
Total 117,272 130,048
----- End of picture text -----

The average number of staff employed during 2020 is:

Average Head Count - 7 (2019 – 7)
Average Full Time Staff - 4 (2019 – 4)
Average Part Time Staff - 3 (2019 – 3)
Average Full-time Equivalent - 5 (2019 – 5)

No employees (2019: none) received employee benefits (excluding employer pension costs) of more than £60,000 during the year.

There was no material liability for paid annual leave or sick leave at the end of the reporting period (2019: none), and so no liability has been included in the accounts.

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 Senior Minister and Minister are eligible to join the Scheme, which is not contracted out of the State Second Pension. A detailed description of the scheme’s surplus/deficit and how it affects the charity is provided in note 9.

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Notes to the Financial Statements For the year ended 31 December 2020

3. Expenditure on charitable activities (continued)

3b. Analysis of Grants

----- Start of picture text -----
Grants by Recipient Type Grants by Institution
£ £
Grants to Institutions 18,046 Christians Against Poverty 7,200
Grants to Individuals 6,115 New Addingington Baptist 3,200
Total 24,161 Slee ppod 2,218
CCFS 730
Grants by Nature of Activity LBA Home Mission 654
£ Lunch Bowl Network 600
Alleviation of Suffering/Poverty 19,193 BMS 594
Christian Outreach 4,968 Other 2,850
Total 24,161 Total 18,046
----- End of picture text -----

4. Tangible Fixed assets

Cost or valuation Freehold land and buildings
Church Manse Total
£ £ £
At 1stJanuary 2020 and
31stDecember 2020		 1,602,527 411,000 2,013,527

The capital fund includes the valuation for the church buildings and manse. The church building is included at its 2016 insurance value, while the manse is included at market value. A policy of revaluing the manse every 5 years has been agreed, with the next revaluation due in 2021.

Cost or valuation Equipment, Furniture & Fittings Equipment, Furniture & Fittings
Net Book Value
@ 31/12/2019		 Acquisitions
during 2020		 Depreciation
during 2020		 Net Book Value
@ 31/12/2020
£ £ £ £
Equipment 2,088 5,518 2,846 4,760

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West Wickham & Shirley Baptist Church – Annual Report and Accounts

2020

Notes to the Financial Statements For the year ended 31 December 2020

5. Debtors and prepayments

2020
£		 2019
£
Prepayments 0 0
Other debtors 6,704 10,224
Total 10,224 10,224

Other debtors consist of £6,704 which is tax recoverable on Gift Aided donations (received during 2021).

6. Creditors: amounts falling due within one year

2020
£		 2019
£
Other creditors 3,119 2,744
Total 3,119 2,744

Other creditors consist of £1,527 representing general purchases of equipment & materials which were purchased in 2020 but for which the invoice was not received until early 2021, waste collection invoices not yet received of £642 and independent examination fees of £950.

7. Provisions

Balance brought forward
Deficit contributions made in the year
Interest cost
Remaining change to balance sheet liability
Balance carried forward		 2020
£
2019
£
44,975
47,887
(3,555)
(4,638)
735
1,094
(14,054)
632
28,101
44,975

The provision is in respect of deficit pension contributions due to the Baptist Pension Scheme. The current deficit reduction plan requires contributions to be made until June 2026. The provision has been calculated based on the current deficit contributions, assuming they will increase by inflation and the total liability have been discounted to present value using a market bond rate. Section 28.11A of FRS 102 requires agreed deficit recovery payments to be recognised as a liability.

Further information on the pension scheme can be found in note 9.

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West Wickham & Shirley Baptist Church – Annual Report and Accounts

2020

Notes to the Financial Statements For the year ended 31 December 2020

8. Fund description and movements

8a Unrestricted Funds

----- Start of picture text -----
Balance at 1st Balance at 31st
Fund Name Jan 2020 Income Expenditure Transfers Dec 2020
£ £ £ £ £
Unrestricted Funds 97,927 173,281 175,863 (1,374) 93,971
Designated Funds
- - -
Plummer Bequest 5,823 5,823
-
Global Legacy Fund 77,000 3,200 (11,890) 61,910
-
Total Designated Funds 82,823 3,200 (11,890) 67,733
Total Unrestricted Funds 180,750 173,281 179,063 (13,264) 161,704
Unrestricted Funds - Prior Year
Balance at 1st Balance at 31st
Fund Name Jan 2019 Income Expenditure Transfers Dec 2019
£ £ £ £ £
Unrestricted Funds 96,740 205,130 192,610 (11,333) 97,927
Designated Funds
- - -
Plummer Bequest 5,823 5,823
- - -
Global Legacy Fund 77,000 77,000
- - -
Total Designated Funds 82,823 82,823
Total Unrestricted Funds 179,563 205,130 192,610 (11,333) 180,750
----- End of picture text -----

The Global Legacy Fund is a fund, created from a legacy left by a church member, which the church aims to distribute to other causes to further the advancement of the Christian Faith and the relief of poverty.

The Plummer Bequest was a gift left to the church which was put aside to support young people from the church who embark on mission training or mission trips.

24

West Wickham & Shirley Baptist Church – Annual Report and Accounts

2020

Notes to the Financial Statements For the year ended 31 December 2020

8b Restricted Funds

----- Start of picture text -----
Balance at 1st Balance at 31st
Fund Name Jan 2020 Income Expenditure Transfers Dec 2020
Restricted Funds
- - -
Coffee Shop Development 12,500 12,500
Covid 19 Relief Fund - 3,558 5,725 10,000 7,833
Building Fund 6,962 600 242 - 7,320
Boys' Brigade 5,755 756 3,441 - 3,070
Other Funds 2,657 5,528 7,224 1,889 2,850
Mothers & Toddlers 3,607 462 1,508 (250) 2,311
Girls' Brigade 944 742 986 - 700
Home Mission 446 245 654 - 37
Lunch Club 155 5,250 7,030 1,625 -
BMS 374 220 594 - -
Floating Shelter 730 - 730 - -
Total Restricted Funds 21,630 29,861 28,134 13,264 36,621
Restricted Funds – Prior Year
Balance at 1st Balance at 31st
Fund Name Jan 2019 Income Expenditure Transfers Dec 2019
Restricted Funds
Building Fund 11,760 600 15,523 10,125 6,962
-
Boys' Brigade 5,671 3,724 3,640 5,755
Mothers & Toddlers 3,329 1,817 1,539 - 3,607
Other Funds 894 5,303 3,528 (12) 2,657
Girls' Brigade 1,409 1,092 1,569 12 944
Floating Shelter - 730 - - 730
Home Mission 650 785 989 - 446
BMS 51 1,346 1,023 - 374
Lunch Club (196) 9,174 10,031 1,208 155
Total Restricted Funds 23,568 24,571 37,842 11,333 21,630
----- End of picture text -----

Descriptions of the main restricted funds are as follows:

The Coffee Shop Development fund are monies given specifically toward the Coffee Shop component of the wider building re-development project.

25

West Wickham & Shirley Baptist Church – Annual Report and Accounts

2020

Notes to the Financial Statements For the year ended 31 December 2020

The Covid 19 Relief Fund was money transferred from the Global Legacy fund to provide relief to members and others known to the church whose personal situations have deteriorated as a result of the effects of Covid 19. This money has been used to provide immediate, short-term relief, in critical situations and has been mainly used to provide food, essential items, and to meet small but urgent financial needs.

The Building Fund represents funds given specifically for the church building re-development project The coffee shop development fund is money given specifically to support the coffee shop part of that development.

The Lunch Club fund is used for the running of the weekly Lunch club which provides a meal for the elderly members of the community.

The Boys’ Brigade, Girls’ Brigade and Mothers & Toddlers funds are held separately for the running of each organisation under the auspices of the church.

The other funds (BMS, Home Mission, Floating Shelter) represent monies given to the church for other charitable organisations that the church has chosen to support, in response to appeals throughout the year.

8c Capital Fund

8c
Capital Fund
Fund Name Balance at 1st
Jan 2020
Income		 Expenditure Transfers Balance at 31st
Dec 2020
Capital Fund 2,013,527 - - - 2,013,527
Capital Fund – Prior Year
Fund Name Balance at 1st
Jan 2019
Income		 Expenditure Transfers Balance at 31st
Dec 2019
Capital Fund 2,013,527 - - - 2,013,527

The capital fund represents the value of the church properties – the main church buildings on Wickham Road, and the church manse.

9. Pension Scheme

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.

26

West Wickham & Shirley Baptist Church – Annual Report and Accounts

2020

Notes to the Financial Statements For the year ended 31 December 2020

9. Pension Scheme (continued)

For any month, each participating employer in the Scheme pays contributions as set out in the Schedule of Contributions in force at that time.

The Scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. This is because it is not possible to attribute the Scheme’s assets and liabilities to specific employers and means that contributions are accounted for as if the Scheme were a defined contribution scheme. The pensions costs charged to the SoFA in the year are contributions payable towards benefits and expenses accrued in that year, plus any impact of deficiency contributions (see below).

The Minister(s) are 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 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 plc. The further 4% contribution rate is reduced to 3% for Employer contributions made to the Segregated DC Arrangement.

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%). The Church and the other employers supporting the DB Plan are collectively

27

West Wickham & Shirley Baptist Church – Annual Report and Accounts

2020

Notes to the Financial Statements For the year ended 31 December 2020

9. Pension Scheme (continued)

responsible for funding this deficit. The key assumptions underlying the valuation were as follows:

Type of financial assumption % pa
RPIprice inflation assumption 3.20
CPIprice inflation assumption 2.70
Minimum Pensionable Income increases (RPI) 3.20
Assumed investment returns
- Pre-retirement 2.95
- Post retirement 1.70
Deferredpension increases
- Pre April 2009 3.20
- Post April 2009 2.50
Pension increases
- Main Scheme pension 2.70

Post–retirement mortality in accordance with 80% of the S3NFA and S3NMA tables, with allowance for future improvements in mortality rates from 2013 in line with the CMI 2019 core projections, with a long term annual rate of improvement of 1.75% for males and 1.5% for females, with the core smoothing parameter and with additional initial mortality improvement factor A=0.5%.

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

Recovery Plan

In addition to the contributions to the DC Plan set out above, where a valuation of the DB Plan reveals a deficit the Trustee and the Council agree to a rate of deficiency contributions from churches and other employers involved in the DB Plan.

Under the current Recovery Plan dated 30 September 2020, deficiency contributions are payable until 30 June 2026. These contributions are broadly based on the employer's membership at 31 December 2014 and increase annually in line with increases to Minimum Pensionable Income as defined in the Rules. However, the Trustee and the Council agreed a 50% reduction for all deficiency contributions payable between 1 July 2020 and 31 December 2020.

28

West Wickham & Shirley Baptist Church – Annual Report and Accounts

2020

Notes to the Financial Statements For the year ended 31 December 2020

9. Pension Scheme (continued)

Due to the nature of the Scheme, the profit and loss charge to the General fund for the period represents the employer contributions payable plus the movement in the pension provision (excluding the deficit contributions made in the year). For this scheme the pension cost for the Church is (£5,185) made up of Pension Contributions of £11,690, and a Liability Adjustment of £(16,875).

10. Prior Year Adjustments

No prior year adjustments were made to the Opening Balances. The Staff Costs figures for this year include minor adjustments to correct over-accruals in years 2017 and 2018, totalling £1,761.

11. Related party transactions and trustee’s expenses and remuneration

No trustees were remunerated as part of their role as trustees.

The following trustees were also employed by the church in the following capacities and as such received remuneration as part of their employment:

Mr Jonathan Hills (Senior Minister)

Gross Salary - £32,041

Employer Pension Contributions - £3,931

Was also provided with manse accommodation.

Mrs Sara Kennett (Minister)

Gross Salary - £23,813

Employer Pension Contributions - £2,997

The following close relatives of trustees were employed by the church in the following capacities: Mr Stuart Kennett (Youth Worker)

Gross Salary - £25,588

Employer Pension Contributions - £581

No trustees incurred expenses whilst fulfilling their role as trustees. Three trustees had a total of £125 reimbursed for expenses incurred while on non-trustee church business. These expenses were limited to travel, accommodation, and subsistence.

The trustees made aggregate unrestricted donations totalling £39,500.

29

West Wickham & Shirley Baptist Church – Annual Report and Accounts

2020

Notes to the Financial Statements For the year ended 31 December 2020

12. Prior Year Comparatives

----- Start of picture text -----
Unrestricted Funds Restricted Funds Capital Funds
2020 2019 2020 2019 2020 2019
£ £ £ £ £ £
Income and endowments from:
Donations and le gacies 156,701 180,885 21,589 6,594 - -
Charitable activities 11,570 1,562 8,272 17,977 - -
Other trading activities 5,010 22,683 - - - -
Total 173,281 205,130 29,861 24,571 - -
Expenditure on:
Charitable activities 179,063 192,610 28,134 37,842 - -
Total 179,063 192,610 28,134 37,842 - -
Net income/(expenditure) (5,782) 12,520 1,727 (13,271) - -
Transfers between funds (13,264) (11,333) 13,264 11,333 - -
Other recognised gains/(losses):
Gains/(losses) on revaluation of
fixed assets - - - - - -
Net movement in funds (19,046) 1,187 14,991 (1,938) - -
Reconciliation of funds:
Total funds brought forward 180,750 179,563 21,630 23,568 2,013,527 2,013,527
Total funds carried forward 161,704 180,750 36,621 21,630 2,013,527 2,013,527
----- End of picture text -----

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