REGISTERED CHARITY NUMBER: 1173298 CIO REGISTERED NUMBER: CE010981
## **LETCHWORTH BAPTIST CHURCH CIO**
## **REPORT AND FINANCIAL STATEMENTS**
## **FOR THE YEAR TO 31 DECEMBER 2020**
**LETCHWORTH BAPTIST CHURCH CIO**
## **REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020**
## **Contents**
||Page|
|---|---|
|Legal and Administrative Details|1|
|Trustees Report|2 - 7|
|Independent Examiners Report|8|
|Statement of Financial Activities|9|
|Balance Sheet|10|
|Notes to the Financial Statements|11 - 14|
## **LETCHWORTH BAPTIST CHURCH**
## **1[st] January 2020 to 31[st] December 2020**
**Name:** Letchworth Baptist Church **Charity Registration Number:** Registered Charity Number 1173298
**Principal Address:**
Letchworth Baptist Church Broadwater Avenue Letchworth Garden City Herts SG6 3HJ
**Trustees during the period:** (Church Officers and Elders)
Derek Moore-Crispin (Senior Pastor) David Chan (Pastor) Mike Waddell (Secretary & Treasurer) Michael Cornell Steve Whittall Chris Rees (resigned 22 October 2020)
**Bankers:**
HSBC Bank Station Place Letchworth Garden City Hertfordshire SG6 3AJ
## **Independent Examiner:**
Parlow Associates Ltd PO Box 103 Gamlingay Sandy Bedfordshire SG19 3ZQ
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## **LETCHWORTH BAPTIST CHURCH**
## **TRUSTEES’ ANNUAL REPORT**
## **1[st] January 2020 to 31[st] December 2020**
The Trustees present their annual report and the financial statements for the year ended 31 December 2020. The accounts comply with the requirements of the SORP 2005.
## **1 Structure, Governance and Management**
## **Governing documents**
The governing documents are:
- Letchworth Baptist Church Constitution, March 2017
- Letchworth Baptist Church Rules, March 2017.
## **Constitution**
Letchworth Baptist Church was registered by the Charity Commission on 6[th] June 2017 as a Charitable Incorporated Organisation superseding the previous Letchworth Baptist Church charitable trust.
## **Recruitment and appointment of trustees**
Trustees are appointed and recruited in accordance with the governing documents.
## **Governance and Management**
The Trustees have overall responsibility for ensuring that the church fulfils its charitable objectives in a manner that is compliant with the provision of the Constitution and Church Rules, especially the Basis of Faith
In accordance with the powers set out in the constitution a Standing Order has been established by which the Trustees delegate the day-to-day management affairs of the Church to the body of Elders. They are supported by deacons who are appointed by the elders and have been assigned specific responsibilities for administrative, ministry or operational functions.
The Pastors and Elders, all of whom are also Trustees, normally meet each month to discuss the church business, monitor church finances and direct the affairs of the church. They normally also meet once each month for prayer.
Church member’s business meetings were maintained very effectively using Zoom.
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## **2 Objectives and Activities**
## **Charitable Purposes**
The purposes of the Church are:
1. The advancement of the Christian faith in accordance with the basis of faith primarily but not exclusively within Letchworth Garden City, Hertfordshire and the surrounding neighbourhood; and
2. Such other charitable purposes as shall, in the opinion of the members of the church in general meeting, put into practice the Christian faith in accordance with the Basis of Faith, including but not limited to: the prevention and relief of need, hardship and sickness and the advancement of education.
Provided that the advancement of such purposes are undertaken in a manner that is consistent with the doctrinal distinctives and ethical statements as may be adopted and amended by the church from time to time in accordance with the provisions of the Church Rules.
## **Summary of activities**
The Church seeks to fulfil public benefit regarding the advancement of the Christian faith in the following ways.
- Promoting and developing spiritual awareness
- Encouraging spiritual and emotional growth
- Encouraging fellowship
- Providing Bible teaching consistent with the Basis of Faith
- Providing opportunities for public worship and prayer
- Supporting Christian missionary and community work consistent with the Church’s objectives and ethos both in the UK and overseas.
- Supporting the local community in a manner consistent with the charitable purposes of the church.
These are generally achieved through a combination of Sunday services, midweek meetings and other activities for adults and children throughout the year. However, after March 2020 the church’s ability to maintain its activities was greatly affected by the restrictions enforced by the national response to Covid-19. Sunday services and various meetings were able to move on-line courtesy of Zoom.
The nature of the church building does not easily lend itself to use when taking into account social distancing and other Covid-19 restrictions. However, it is used weekly as a studio for the on-line Sunday service.
Communion services are held regularly and participation is open to all who profess faith in the Lord Jesus Christ. As a general principle meetings are open to the public, this has been maintained despite the move on-line with a number of ‘visitors’ joining the services both regularly and from time to time.
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In general, activities are advertised on the church web site, noticeboard and by word of mouth. Seasonal and other special events may be promoted by leaflet distribution.
The church supports both an English speaking and a Cantonese speaking Chinese congregation, including pastoral care.
Both spiritual and material support has also been provided by Church members for missionary and community work in the UK and overseas.
As a general principle the church is funded by donation not charges, and no one is excluded from membership or participation in the general activities of the church on financial grounds.
All of the activities described have been conducted in accordance with the Charitable Objects and Basis of Faith set out in the governing documents.
## **3 Achievements and performance**
The church was able to maintain the following ministries in order to provide Public Benefit in the following ways:
- Weekly on-line Sunday preaching, teaching and worship meetings, including communion using Zoom. These are joint English and Chinese services splitting part way through for language specific teaching.
- Periodic and regular Zoom-based prayer, Bible-study and fellowship meetings aimed at engaging church members and adherents in developing the life and direction of the church.
- It was not possible to maintain the pre-school toddler group, Noah’s Ark, after Covid-19 restrictions were introduced.
- The Thumbs-up children’s club could no longer run but contact was maintained with children and families through the regular provision of activity-boxes which were greatly appreciated.
- Contact was maintained with the Origin-8 young people’s group via social media and giving Bibles as a Christmas gift.
- The weekly afternoon “Friendship Group” for older folk was maintained using Zoom.
- Pastoral care was provided on-line, via phone and, when permitted, in-person. This also included Christmas hampers to some needy families and a number of people who lived alone and were isolated because of the Covid-19 restrictions.
- The church website is used to advertise the church services and activities to the general public and also provide access to Bible teaching by hosting audio and video recordings of Sunday service sermons and other teaching sessions.
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- The Missionary Fund enables church members and adherents to support specific individuals engaged in Christian work in the UK and overseas providing a similar public benefit to that of the Letchworth Baptist Church in our community.
## **Project Oak**
Under the Covid-19 restrictions it was not feasible to operate Project Oak, which has run for a number of years. The church’s Pastoral Worker for Children and Families, worked in schools in the Letchworth Garden City community with children with behavioural and emotional issues and Special Educational Needs. It focused on both character and social development and is an expression of Christian concern for others.
After many years of faithful and diligent service the pastoral worker decided to stand down from the end of December. Therefore Project Oak has been discontinued for the foreseeable future.
## **The Role of Volunteers**
In 2020 the church had three workers who received payment from the church; the two pastors and the Pastoral Worker for Children and Families with regard to “Oak”. Their work was supported by around 40 volunteers from the church family.
## **4 Financial Review**
## **The Impact of Covid-19**
The immediate financial impact of Covid-19 restrictions closing church services was to reduce income because Sunday offerings were no longer possible. However, the majority of these gifts have switched to Gift-Aided Standing Order donations direct to the church bank account. Although regular income was marginally reduced, the reduction in expenditure meant that church finances were overall in a good position. This allowed provision to be made for some essential maintenance work.
The weekly use of the church as a studio for the on-line Sunday service satisfies the insurance company’s requirements for the building to be deemed occupied, so that the normal cover and terms continued to apply.
## **General**
As an overview, the charity received £82,726 income during the year and had outgoings totalling £76,618 giving an increase in funds of £6,108. The funds carried forward are £1,436,330 and include restricted fund balances of £11,825. The general income of the church is made up principally from gifts and from "Gift Aid" given by church members and adherents either through the Sunday morning offering or by standing order into the bank.
The pastors are Office Holder Trustees, as set out in the constitution and are materially supported in order to fulfil their roles. The church undertakes to provide financial support to both and provides essential accommodation to the senior pastor.
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The church also supports a number of missionaries. The funding for this is dealt with separately from the general church accounts. A target for missionary support is set in the last Church Meeting of each year. Any money collected in this fund is paid out to those missionaries which the Church Meeting has agreed to support. The Children’s and Families’ Pastoral Worker was part funded from this source.
Additionally a ‘Chinese Ministry Fund’ is operated to support work amongst ethnic Chinese and associated communities in the United Kingdom and overseas.
## **Reserves policy**
The major areas of requirement for reserves are in the provision of pay, utility and contractual costs, the replacement of key capital equipment and significant maintenance works on the Trust properties. Given that income is donation based and is limited, there is limited scope for building up reserves. Consequently, the Trustees have sought to address this by budgeting and regularly reviewing the cash flow in order to have advance warning of any potential shortfalls. Church members are made aware of potential shortfalls and the needs of specific projects so that they can help address them. A modest cash reserve has been maintained to facilitate cash flow and protect restricted funds.
## **5 Risk review**
As a small Charity, Letchworth Baptist Church is not subject to the compulsory requirement for risk reviews. However, the Trustees maintain awareness of areas of concern.
The Trustees are conscious that the work of the church is dependent upon the financial support of members and congregation, giving by collection and donation. Without this support the work would be unable to continue. Also maintaining teaching in line with Basis of Faith is important from a spiritual and theological perspective and hence in achieving the church’s charitable purpose.
Risk assessments for the property and community support activities are carried out and, where appropriate, action has been taken to monitor and mitigate identified risks. This included Covid-safe risk assessments for the building and the procurement of appropriate cleaning tools, materials and PPE.
A safeguarding policy based on the Thirtyone:Eight (was Churches Child Protection Advisory Service) guidelines has been maintained and operated.
GDPR compliant privacy procedures have been established and are maintained.
## **6 Responsibilities of the trustees**
Charity law 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 its income and application of resources including income and expenditure for that period. In preparing these financial statements, the trustees are required to
1. select suitable accounting polices and then apply them consistently; ma judgements and estimates that are reasonable and prudent;
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2. state whether applicable accounting standards and statement of recommended practice have been followed, subject to any departures disclosed and explained in the financial statements; and
3. prepare the financial statements on the going concern basis unless it is inappropriate to assume that the charity will continue in operational existence.
The Church is responsible for keeping proper accounting records, which disclose with reasonable accuracy at any time the financial position of the charity. 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.
## **ON BEHALF OF THE TRUSTEES:**
Mike Waddell Secretary 10 May 2021
Page 7
## **Independent examiner’s report to the trustees of Letchworth Baptist Church Charitable Incorporated Organisation (‘the CIO’)**
I report to the charity trustees on my examination of the accounts of the CIO for the year ended 31 December 2020 as set out on pages 9 to 14.
## **Responsibilities and basis of report**
As the charity trustees of the CIO you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’). I report in respect of my examination of the CIO’s accounts carried out under section 145 of the Act. In carrying out my examination I have followed all 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 as required by section 130 of the Act; or (2) the accounts do not accord with those records.
I confirm that there are no matters to which your attention should be drawn to enable a proper understanding of the accounts to be reached.
Signed:
Ian G Parker FCA Chartered Accountant Parlow Associates Ltd. PO Box 103 Gamlingay Sandy SG19 3ZQ
10 May 2021
Page 8
## **LETCHWORTH BAPTIST CHURCH CIO**
## **STATEMENT OF FINANCIAL ACTIVITIES YEAR ENDED 31 DECEMBER 2020**
|**Notes**
**Income from:**
Donations and legacies
Bank interest
Other income
**Total income**
**Expenditure on:**
Church running
Church upkeep
Manse upkeep
Pastors & staff salaries and expenses
3
Gifts and donations
Independent examiners fee
**Total expenditure**
**NET INCOME BEFORE GAINS**
Transfers between funds
Gain on revaluation of investments & fixed assets
**NET MOVEMENT IN FUNDS**
**Total funds at 1 January 2020**
7
**Total funds at 31 December 2020**|**Total Funds**
Unrestricted
Restricted
**Year to**
Funds
Funds
**31 December 2020**
£
£
**£**
60,020
22,237
**82,257**
6
3
**9**
460
-
**460**
60,486
22,240
**82,726**
5,852
138
**5,990**
3,672
-
**3,672**
8,282
-
**8,282**
39,706
7,213
**46,919**
-
11,275
**11,275**
480
-
**480**
57,992
18,626
**76,618**
2,494
3,614
**6,108**
-
-
**-**
68,526
-
**68,526**
71,020
3,614
**74,634**
1,353,485
8,211
**1,361,696**
1,424,505
11,825
**1,436,330**|**Total Funds**
**Year to**
**31 December 2019**
**£**
**84,485**
**12**
**700**|
|---|---|---|
|||**85,197**|
|||**11,896**
**6,389**
**7,398**
**49,970**
**11,429**
**480**|
|||**87,562**|
|||**(2,365)**
**-**
**70,478**|
|||**68,113**
**1,293,583**|
|||**1,361,696**|
The notes on pages 11 to 14 form part of these financial statements.
Page 9
## **LETCHWORTH BAPTIST CHURCH CIO**
## **BALANCE SHEET AS AT 31 DECEMBER 2020**
|**Notes**
**FIXED ASSETS**
Tangible assets
4
Investments
5
**CURRENT ASSETS**
Cash at bank and in hand
**CURRENT LIABILITIES**
Creditors and accruals
6
**NET CURRENT ASSETS**
**TOTAL FUNDS:**
Unrestricted Funds
7
Restricted Funds
7 / 9|£
£
**88,384**
**1,327,488**
**1,415,872**
**22,253**
**22,253**
**1,795**
**20,458**
**1,436,330**
**1,424,505**
**11,825**
**1,436,330**
**31 December 2020**|**31 December 2019**|**31 December 2019**|
|---|---|---|---|
|||£
£
**83,813**
**1,263,533**
**1,347,346**
**15,645**
**15,645**
**1,295**
**14,350**
**1,361,696**
**1,353,485**
**8,211**
**1,361,696**||
|||||
||||**1,361,696**|
||||**1,353,485**
**8,211**|
||||**1,361,696**|
The notes on pages 11 to 14 form part of these financial statements.
## **ON BEHALF OF THE TRUSTEES:**
Mike Waddell Secretary 10 May 2021
Page 10
**LETCHWORTH BAPTIST CHURCH CIO**
## **NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020**
## **1. ACCOUNTING POLICIES**
## **(a) Basis of preparation**
The financial statements have been prepared under the historical cost convention, with the exception that fixed assets and investments are stated at insurance value. The financial statements have been prepared in accordance with Financial Reporting Standard (FRS) 102 and other applicable accounting standards and on a going concern basis.
## **(b) Fund accounting**
Unrestricted funds are avaliable for use at the discretion of the Trustees in the furtherance of the general objectives of the charity.
Restricted funds are subject to restrictions on their expenditure imposed by the donor or through the terms of an appeal.
## **(c) Incoming resources**
All incoming resources are included in the Statement of Financial Activities when the charity is entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income:
- Voluntary income is received by way of grants, donations and gifts and is included in full in the Statement of Financial Activities when receivable.
- Grants are recognised in full in the statement of Financial Activities in the year in which they are receivable. - Investment income is included when receivable.
## **(d) Resources expended**
All expenditure is recognised in the period in which incurred and, accounted for on an accruals basis. This has then been classified under headings that aggregate all costs related to the category. Resources expended include attributable VAT that cannot be recovered, and is reported as part of the expenditure to which it relates.
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
## **(e) Tangible fixed assets**
Tangible fixed assets are accounted for at market value. A revaluation is carried out each year and the net gains and losses arising are shown within the Statement of Financial Activities. Therefore, no depreciation is provided.
## **(f) Investments**
Investments relate to the church and manse buildings which are stated at insurance re-building value at the balance sheet date. The Statement of Financial Activities includes the net gains and losses arising on revaluations and disposals throughout the year.
## **(g) Cash Flow Statement**
The financial statements do not include a Cash Flow Statement because the charity, as defined by FRS102, is exempt from the requirement to prepare such a statement.
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**LETCHWORTH BAPTIST CHURCH CIO**
## **NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020**
## **2. STATUS**
The CIO is registered in England with Companies House number CE010981 and with the Charity Commission number 1173298.
## **3. STAFF COSTS AND NUMBERS**
There was one part-time employee and two trustees paid as office-holders.
|The employment costs were:
The costs paid to the two trustees as office holders were:|£
7,031|
|---|---|
||34,656|
One of these trustees, Derek-Moore Crispin, receives a stipendary package which inlcudes occupation of a property plus utility and car costs which are reported as benefits-in-kind.
## **4. TANGIBLE FIXED ASSETS**
|**TANGIBLE FIXED ASSETS**||
|---|---|
|Brought forward at 1 January 2020
Additions in the period
Revaluation
Market value at 31 December 2020|**Fixtures**
**and Fittings**
**Equipment**
**Total**|
||£
£
£
37,920
45,893
83,813
-
-
-
2,276
2,295
4,571|
||40,196
48,188
88,384|
Fixed assets are restated to their insurance value (market value) annually.
## **5. INVESTMENTS**
|Brought forward at 1 January 2020
Revaluation
Market value at 31 December 2020|1,263,533
63,955|
|---|---|
||1,327,488|
The investments all relate to the properties. Investments are restated to their insurance value (market value) annually.
Page 12
**LETCHWORTH BAPTIST CHURCH CIO**
## **NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020**
## **6. CREDITORS AND ACCRUALS**
|Accrued expenses
PAYE & pension due
**MOVEMENT IN FUNDS**
**RESTRICTED FUNDS**
Oak
Missionary Account
Judy Rees
Noahs Ark
Boards
Ladies Breakfast
Chinese Ministry Funds
Thumbs Up Club
Harvest
Refurbishment
Christmas Day
**UNRESTRICTED FUNDS**
General Fund|**2020**
**2019**
**£**
**£**
1,156
676
639
619
1,795
1,295
Funds
brought
forward
Incoming
resources
Outgoing
resources
Transfers
Revaluation
gain
Funds
carried
forward
£
£
£
£
£
£
462
1,960
-
(1,920)
-
502
4,181
15,132
(10,315)
(5,157)
-
3,841
402
-
(7,030)
7,077
-
449
356
54
-
-
-
410
53
-
-
-
-
53
37
32
(37)
-
-
32
2,720
1,909
(331)
-
-
4,298
-
60
(60)
-
-
-
-
719
(719)
-
-
-
-
1,500
-
-
-
1,500
-
874
(134)
-
-
740|
|---|---|
||8,211
22,240
(18,626)
-
-
11,825|
||1,353,485
60,486
(57,992)
-
68,526
1,424,505|
## **7. MOVEMENT IN FUNDS**
A description of each of the restricted funds is given in Note 10.
## **8. ANALYSIS OF NET ASSETS BETWEEN FUNDS**
|Tangible fixed assets & investments
Current assets
Current liabilities|Unrestricted
Restricted
Total
Funds
Funds
Funds
£
£
£
1,415,872
-
1,415,872
10,428
11,825
22,253
(1,795)
-
(1,795)|
|---|---|
||1,424,505
11,825
1,436,330|
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**LETCHWORTH BAPTIST CHURCH CIO**
## **NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020**
## **9. PURPOSES OF RESTRICTED FUNDS**
## **Oak fund and Judy Rees Fund**
Gifts have been made to the church for Judy, and for the work in schools supporting children with special needs and their families. Judy is partially paid from the Missionary Fund and the balance from Oak.
## **Missionary Fund**
A missionary target is agreed at the church meeting in November for the following financial year. The funds so raised are kept in a separate account to the main church account and all the proceeds are distributed to the missionaries sent out by the church. The distribution of the funds is agreed from time to time at a church meeting. Some of the funds are designated to a particular missionary/organisation and these are paid in accordance with the donors wishes.
## **Noah's Ark**
This is the parent & toddler group that is run by the Church; the attendees give donations which are then used to provide refreshments and re-new play equipment.
## **Boards**
This is a fund to purchase new notice boards for outside the church.
## **Ladies Breakfast**
The ladies attending the breakfast meetings make a donation which is used to cover food and gifts.
## **Chinese Ministry Funds**
This is used to collect solicited and unsolicited gifts as well as donations from certain meetings under the headings Ministry in China, Ministry to Chinese elsewhere in the world, support of Pastor Chan's Ministry and Central. Gifts and dispersals are then made from the donations.
## **Harvest**
This is to receive financial gifts for Millgrove Childrens' Home instead of usual food gifts as a Harvest Service was not permitted.
## **Refurbishment Fund**
A gift received to refit one of the toliets. The work has not yet been carried out because of the pandemic.
## **Christmas Day Fund**
Gifts received for the Letchworth Foodbank.
## **10.**
## **RELATED PARTY TRANSACTIONS**
During the year various small payments were made to pastors to reimburse them for expenses incurred for travel, postage and stationery. Both of the trustees were paid travel expenses by the Church.
Other expenses paid to the trustees were to cover the costs of various charitable activities, and were not personal expenses.
Judy Rees (daughter of Derek Moore-Crispin and married to Chris Rees, both trustees) is an employee of the CIO and she received remuneration of £7,030 during the year (2019: £6,963).
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