**Charity number: 1174549** 

## **BILLERICAY BAPTIST CHURCH** 

**UNAUDITED** 

**TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** 




## **BILLERICAY BAPTIST CHURCH** 

## **CONTENTS** 

||Page|
|---|---|
|**Reference and Administrative Details of the Charity, its Trustees and Advisers**|1|
|**Trustees' Report**|2 - 9|
|**Independent Examiner's Report**|10 - 11|
|**Statement of Financial Activities**|12|
|**Balance Sheet**|13|
|**Notes to the Financial Statements**|14 - 26|





## **BILLERICAY BAPTIST CHURCH** 

## **REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2020** 

## **Trustees** 

Rev. I Smith, Senior Minister R Warrington C White A Hough J Powell 

## **Charity registered number** 

1174549 

## **Principal office** 

140 Perry Street Billericay Essex CM12 0NS 

## **Accountants** 

Venthams Chartered Accountants Millhouse 32 - 38 East Street Rochford Essex SS4 1DB 

## **Bankers** 

Lloyds Bank 89 High Street Billericay Essex CM12 9AT 

## **Solicitors** 

Anthony Collins Solicitors LLP 134 Edmund Street Birmingham Warwickshire B3 2ES 

Page 1 



## **BILLERICAY BAPTIST CHURCH** 

## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2020** 

We present our annual report together with the financial statements of Billericay Baptist Church (“the Charity”; “the Church”) for the period ended 31 December 2020.  We confirm that the annual report and financial statements of the Charity comply with current statutory requirements, the requirements of the Charity's Governing Document and the provisions of the Statement of Recommended Practice (SORP), applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). 

## **Objectives and activities** 

## **a. Policies and objectives** 

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, community service and other general charitable purposes including the prevention or relief of poverty in the United Kingdom and/or other parts of the world as the Church shall determine. 

As a Member of the Baptist Union, the Church subscribes to the Union’s Declaration of Principle which is: 

1. "That our Lord and Saviour Jesus Christ, God manifest in the flesh, is the sole and absolute authority in all matters pertaining to faith and practice, as revealed in the Holy Scriptures, and that each church has liberty, under the guidance of the Holy Spirit, to interpret and administer His laws. 

2. That Christian Baptism is the immersion in water into the name of the Father, the Son and Holy Spirit, of those who have professed repentance towards God and faith in our Lord Jesus Christ who died for our sins according to the Scriptures; was buried, and rose again on the third day. 

3. That it is the duty of every disciple to bear personal witness to the gospel of Jesus Christ, and to take part in the evangelisation of the world.” 

Page 2 



**BILLERICAY BAPTIST CHURCH** 

## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020** 

## **Objectives and activities (continued)** 

## **b. Activities for achieving objectives** 

## _Church activities_ 

In planning our activities, we have paid regard to the Charity Commission’s guidance on public benefit.  The Church seeks to be a friendly and welcoming community and anybody is welcome to attend our varied programme of activities provided for different age and interest groups.  Our programme of activities is intended to show the love of Jesus Christ in action and is designed to introduce people to Him or, to help people deepen their relationship with Him. 

The activities of the Church often provide the first point of contact between the Church and the local community, forming a basis of ongoing friendship and trust.  Full details of our activities can be found at our website (www.billericaybaptist.org.uk) and a review of activities follows later in this report. 

## _Grant making_ 

The Church supports other Christian organisations in Billericay, across the UK and worldwide, where they pursue similar and complementary objectives to us.  A list of organisations for which financial support is provided can be found in Note 6 to the Accounts. 

The Church has a Mission Team responsible for recommending the allocation of grants to outside organisations in accordance with the Church’s grant making policy.  Recommendations are reviewed and endorsed by the Church Leadership and Trustees and agreed by the Church Membership as part of the annual operating budget. 

Where the Church provides financial support by way of grants, we are confident that appropriate controls, including those pertinent to money laundering and terrorist financing, are in place to ensure that those grants are properly managed and are used in accordance with the charitable purposes of the Church.  We see this financial support as an important way of meeting the Church's objectives beyond its local reach. 

We are working with each of our mission partners to ensure that appropriate safeguarding measures are in place, especially for those partners working with children or vulnerable adults. 

## **Achievements and performance** 

## **a. Going concern** 

We believe that the church has sufficient resources to continue in operational existence for the foreseeable future and so we continue to adopt the going concern basis in preparing the financial statements. 

Page 3 



## **BILLERICAY BAPTIST CHURCH** 

## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020** 

## **Achievements and performance (continued)** 

## **b. Key financial performance indicators** 

The Church is grateful to its members for donating generously to allow the Church to fulfil its programme of activities in Billericay and to support its mission partners further afield. 

- Of its donations (including associated Gift Aid recovery) of £313,000 the Church has provided grants to other organisations and individuals of £99,400 or 31.8%. 

- Despite the church being unable to meet in person for nine months of the year, income from donations and legacies at £313,000 was consistent with that received in the previous year. 

- Expenditure on charitable activities has decreased by 7% (around £25,000) from the previous year.  In a large part, this is the result of the church being unable to run activities from its church buildings for a large part of the year.  We therefore anticipate an increase in expenditure in 2021 in the expectation that many of these activities will be able to resume as COVID-19 restrictions are eased. 

- Net current assets at £124,400 were down from £146,000 at the end of 2019, with cash balances holding constant at around £134,500.  The Church held unrestricted and available net current assets of £110,000, sufficient to meet its reserves policy. 

The church continues to assess its current and future property needs with no clear conclusions reached at present. 

Page 4 



**BILLERICAY BAPTIST CHURCH** 

## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020** 

## **Achievements and performance (continued)** 

## **c. Review of activities** 

2020 has been a year like no other.  Our activities have been heavily impacted by measures designed to slow the spread of COVID-19.  Following guidance provided by the UK Government and the Baptist Union, the church closed its buildings for all church services in March 2020 and except for some small group meetings in the summer did not met face-to-face for the remainder of the year. 

Whilst these measures have inevitably restricted the work of the Church, by making extensive use of on-line communication tools, the Church has been able to continue delivering many of its core activities particularly the provision of Sunday services.  However, work with community groups, including supporting the elderly, particularly those with dementia, and those caring for babies and very young children, has been temporarily stopped.  We intend to fully re-engage with our local community as soon as guidance allows us to do so and we believe that we can operate safely. 

The church has not made use of any Government financial assistance during the year and recognising the potential financial hardship that may be result from the pandemic, was able to set aside funds to help support those in financial need.  Thankfully these funds have not been extensively called upon. 

Given that backdrop, the main highlights for 2020 are set out below. 

- Church services, including services constructed primarily for children and young people were moved ‘online’, allowing the Church congregation, and others from the community and further afield, to access regular worship and teaching. 

- An ‘on-line’ Advent Calendar was produced offering messages of hope, love and encouragement in the lead-up to Christmas.  Feedback suggests that this was well received with many ‘non-church’ families engaging with the material. 

- Small group meetings, prayer meetings and Church Members’ Meetings have all moved ‘on-line’ all seeing higher attendance than previously.  Whilst desiring to meet together again soon, the Church Leadership is evaluating the future place of ‘on-line’ activities believing they have a continuing role to play in helping the church meet its objectives. 

- The Church has established a COVID-19 fund to assist those suffering financial hardship as a result of the pandemic. 

- The Church remains an active member of Churches Together in Billericay (CTB) and supports the work which it undertakes practically (where this has been possible), financially and prayerfully.  This includes Schools Ministry Billericay, and Billericay Street Pastors.  Many from the church have also played an active role in the Billericay foodbank organised by CTB and which is supporting a number of families in the town. 

- The Church continued its strong links with other organisations and mission partners across the world.  The church leadership is highly appreciative of the work that all its mission partners undertake in helping the Church fulfil its objectives both within and beyond the Billericay town boundaries. 

- The Church was able to appoint a replacement ‘pastoral assistant’ following the retirement of the previous incumbent, recognising this role as a permanent role within the ministry team. 

- Extensive refurbishment commenced at one of the church premises increasing its capacity and ensuring that it remains ‘fit-for-purpose’. 

Page 5 



**BILLERICAY BAPTIST CHURCH** 

## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020** 

## **Financial review** 

## **a. Reserves policy** 

We have agreed a reserves policy which is broadly equivalent to 3 month's staff and missionary support costs and 1 month's other expenditure.  For the current year, this figure is £65,000 and is covered by unrestricted net current assets of £109,845 held at the end of the year. 

The Trustees review the reserves policy annually as part of the budget setting process. 

## **b. Annual Review** 

An operating budget is approved annually by the Church Members Meeting, and the day to day finances are administered by the Church Treasurer and Church Bookkeeper.  Finance reports are provided monthly to the Church’s Trustees and others in the Church Leadership Team.  Finance reports are shared periodically with all church members. 

Remuneration of employed staff is determined by the Trustees, and is subject to Church Members approval as part of the operating budget.  The Church is heavily reliant on its membership and congregational attendees serving as volunteers in all aspects of the Church 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. 

Income for the year was £326,661 (2019: £329,487) and with expenditure of £334,275 (2019: £359,663), resulted in a net deficit for the year of £7,614 (2019: deficit £30,176).  Details of income and expenditure can be found in the Statement of Financial Activities and the associated notes. 

Total reserves at the end of the year are £1,498,154 (2019: £1,505,768), of which £444,508 (2019: £424,891) is restricted and £997,200 (2019: £987,500) is designated. 

Recognising that the Church’s finances in 2020 have been distorted by the restrictions introduced to slow the spread of COVID-19 and knowing that the Church has funds above that required to meet its reserves policy, the Trustees and Church members have approved a deficit operational budget for 2021. 

With this backdrop of uncertainty, and whilst we are prepared to see reserves temporarily fall below that set out in the reserves policy, we continue to keep a close watch on the Church’s financial situation prepared to take measures necessary to maintain the financial stability of the Church. 

## **c. Principal funding** 

Financial responsibility for the work of the Church rests primarily with its members and regular congregation through free-will offerings.  The Church does not pursue operational fund-raising from external sources. 

Page 6 



**BILLERICAY BAPTIST CHURCH** 

**TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020** 

## **Structure, governance and management** 

## **a. Constitution** 

## _Governing Document_ 

Since 1 January 2018, the Church operates under its CIO constitution (registered with the Charity Commission on 7 September 2017) as its Governing Document.  In accordance with Baptist Union guidelines, the Church Members agreed to suspend those parts of the Church Constitution that were unworkable as a result of the restrictions put in place by the UK Government to slow the spread of COVID-19.  As a consequence, Church Members Meetings, including voting where required, were held ‘online’. 

## _Structure_ 

The Church has a Leadership Team (Pastors and Elders) responsible for spiritual direction and oversight, and a Trustee body responsible for governance.  Consistent with other Baptist churches, all significant aspects of the work of the Church are subject to the approval of the Church Members.  Members of the Church are accepted into membership in accordance with the Constitution, which requires them to profess their faith in Jesus Christ. 

## _Governance_ 

Trustees and Elders both meet regularly and separately.  In order for the Church’s structure to work effectively, the Church Leadership and the Trustee body also meet together informally throughout the year to discuss the future plans and current activities of the Church, thereby ensuring that both spiritual and governance aspects of church life are fully considered.  Within the Trustee Body each trustee has been given responsibility for specific areas covering, employment, risk, policies, and finance.  Sub groups covering these aspects of governance meet regularly under the direction of the lead Trustee. 

Significant decisions are required to be taken at the Church Members Meeting following agreement by the Leadership team and the Trustee body.  Except for a few key issues, such as the appointment of staff and office holders, where a secret ballot is held, decisions are usually taken by consensus with voting, when required, by “show of hands”. 

## **b. Methods of appointment or election of Trustees** 

All appointments are made by the Church Meeting in accordance with the voting requirements laid down in the Constitution.  The Church Secretary and Church Treasurer, who must be serving members of the Church, are appointed annually at the Church Members Annual General meeting. 

Page 7 



**BILLERICAY BAPTIST CHURCH** 

## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020** 

## **Structure, governance and management (continued)** 

## **c. Principal risks and operating policies** 

Operating policies are maintained by the Church to: 

- Allow for consistent and efficient decision making; 

- Provide transparency and accountability; 

- Provide a framework for fairness; and 

- Protect staff and volunteers. 

A Risks Register is maintained and reviewed regularly.  No ‘high risk’ situations requiring urgent action were identified during 2020, and we are satisfied that suitable operating policies are in place to manage risk. 

The Church has safeguarding procedures and systems in place to ensure that all people working with children, young people and adults at risk are appropriately vetted through the Disclosure and Barring Service. 

## _Relationships with connected charities_ 

The Church continues to be in membership with the Baptist Union Corporation Limited, Eastern Baptist Association and the Evangelical Alliance. There are also ongoing relationships with the Boys’ Brigade, Girls’ Brigade, Churches Together in Billericay, and various national and international Christian organisations. 

## **d. Post balance sheet events** 

There have been no significant post balance sheet events requiring comment in this report. 

Page 8 



## **BILLERICAY BAPTIST CHURCH** 

## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020** 

## **Statement of Trustees' responsibilities** 

The Trustees are responsible for preparing the Trustees' 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 its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to: 

- select suitable accounting policies and then apply them consistently; 

- observe the methods and principles of the Charities SORP (FRS 102); 

- make judgments and accounting estimates that are reasonable and prudent; 

- state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements; 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business. 

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and 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. 

Approved by order of the members of the board of Trustees and signed on their behalf by: 

## **A Hough** 

Church Treasurer and Finance Trustee Date: 8 March 2021 

## **J Powell** 

Church Secretary and Policies Trustee 

Page 9 



## **BILLERICAY BAPTIST CHURCH** 

## **INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 31 DECEMBER 2020** 

## **Independent Examiner's Report to the Trustees of Billericay Baptist Church ('the charity')** 

I report to the charity Trustees on my examination of the accounts of the charity for the year ended 31 December 2020. 

## **Responsibilities and Basis of Report** 

As the Trustees of the charity you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the 2011 Act'). 

I report in respect of my examination of the charity's accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act. 

Page 10 



## **BILLERICAY BAPTIST CHURCH** 

## **INDEPENDENT EXAMINER'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020** 

## **Independent Examiner's Statement** 

Since the charity's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of (enter body here), which is one of the listed bodies. 

Your attention is drawn to the fact that the charity has prepared the accounts in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has been withdrawn. 

I understand that this has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015. 

I have completed my examination. I confirm that no 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 charity as required by section 130 of the 2011 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. 

This report is made solely to the charity's Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. My work has been undertaken so that I might state to the charity's Trustees those matters I am required to state to them in an Independent Examiner's Report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity and the charity's Trustees as a body, for my work or for this report. 

Signed: Dated: 16 March 2021 Stuart Harrison FCA 

## **Venthams** 

Chartered Accountants Millhouse 32 - 38 East Street Rochford Essex SS4 1DB 

Page 11 



## **BILLERICAY BAPTIST CHURCH** 

## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020** 

|**Note**<br>**Income from:**<br>Donations and legacies<br>3<br>Investments<br>4<br>Other income<br>5<br>**Total income**<br>**Expenditure on:**<br>Charitable activities<br>7<br>**Total expenditure**<br>**Net income/(expenditure)**<br>Transfers between funds<br>15<br>**Net movement in funds**<br>**Reconciliation of funds:**<br>Total funds brought forward<br>Net movement in funds<br>**Total funds carried forward**|**Unrestricted**<br>**funds**<br>**2020**<br>**£**<br>**285,564**<br>**13,891**<br>**-**<br>**299,455**<br>**235,756**<br>**235,756**<br>**63,699**<br>**(90,930)**<br>**(27,231)**<br>**1,080,877**<br>**(27,231)**<br>**1,053,646**|**Restricted**<br>**funds**<br>**2020**<br>**£**<br>**27,206**<br>**-**<br>**-**<br>**27,206**<br>**98,519**<br>**98,519**<br>**(71,313)**<br>**90,930**<br>**19,617**<br>**424,891**<br>**19,617**<br>**444,508**|**Total**<br>**funds**<br>**2020**<br>**£**<br>**312,770**<br>**13,891**<br>**-**<br>**326,661**<br>**334,275**<br>**334,275**<br>**(7,614)**<br>**-**<br>**(7,614)**<br>**1,505,768**<br>**(7,614)**<br>**1,498,154**|_Total_<br>_funds_<br>_2019_<br>_£_<br>_313,963_<br>_14,877_<br>_647_<br>_329,487_<br>_359,663_<br>_359,663_<br>_(30,176)_<br>_-_<br>_(30,176)_<br>_1,535,944_<br>_(30,176)_<br>_1,505,768_|
|---|---|---|---|---|



Page 12 



## **BILLERICAY BAPTIST CHURCH** 

## **BALANCE SHEET FOR THE YEAR ENDED 31 DECEMBER 2020** 

|**Note**<br>**Fixed assets**<br>Tangible assets<br>12<br>**Current assets**<br>Debtors<br>13<br>Cash at bank and in hand<br>Creditors: amounts falling due within one<br>year<br>14<br>**Net current assets**<br>**Total net assets**<br>**Charity funds**<br>Restricted funds<br>15<br>Unrestricted funds<br>15<br>**Total funds**|**8,146**<br>**134,796**<br>**142,942**<br>**(18,538)**|**2020**<br>**£**<br>**1,373,750**<br>**1,373,750**<br>**124,404**<br>**1,498,154**<br>**444,508**<br>**1,053,646**<br>**1,498,154**|_30,718_<br>_134,329_<br>_165,047_<br>_(19,004)_|_2019_<br>_£_<br>_1,359,725_|
|---|---|---|---|---|
|||||_1,359,725_<br>_146,043_|
|||||_1,505,768_|
|||||_424,891_<br>_1,080,877_|
|||||_1,505,768_|



The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by: 

**A Hough** Church Treasurer Date: 8 March 2021 

**J Powell** Chair of Trustees 

Page 13 



**BILLERICAY BAPTIST CHURCH** 

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

## **1. General information** 

Billericay Baptist Church is a Charitable Incorporated Organisation registered with the Charity Commission in England and Wales.  Its principal office address is 140 Perry Street, Billericay, Essex, CM12 0NS. 

## **2. Accounting policies** 

## **2.1 Basis of preparation of financial statements** 

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011. 

The financial statements have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair' view. This departure has involved following the Charities SORP (FRS 102) published on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn. 

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

## **2.2 Going concern** 

The Trustees have considered the possible effects on the charity of the impacts of the pandemic caused by the coronavirus (Covid-19).  Taking into account a period exceeding 12 months from the date of approval of these financial statements, the Trustees have a reasonable expectation that it has adequate resources to continue in operational existence for the foreseeable future, and for this reason will continue to adopt the going concern basis in the preparation of its financial statements. 

## **2.3 Income** 

All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. 

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable. 

Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service. 

## **2.4 Expenditure** 

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. 

Page 14 



**BILLERICAY BAPTIST CHURCH** 

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

## **2. Accounting policies (continued)** 

## **2.4 Expenditure (continued)** 

Expenditure on charitable activities is incurred on directly undertaking the activities which further the charity's objectives, as well as any associated support costs. 

Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure. 

All expenditure is inclusive of irrecoverable VAT. 

## **2.5 Interest receivable** 

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited. 

## **2.6 Tangible fixed assets and depreciation** 

Tangible fixed assets costing £2500 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably. 

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost. 

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, . 

Depreciation is provided on the following bases: 

- Freehold property No depreciation Motor vehicles - 25% straight line - Computer equipment 33% straight line 

## **2.7 Debtors** 

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. 

## **2.8 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 acquisition or opening of the deposit or similar account. 

Page 15 



**BILLERICAY BAPTIST CHURCH** 

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

## **2. Accounting policies (continued)** 

## **2.9 Liabilities and provisions** 

Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. 

Liabilities are recognised at the amount that the charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. 

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of Financial Activities as a finance cost. 

## **2.10 Financial instruments** 

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method. 

## **2.11 Pensions** 

The charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the charity to the fund in respect of the year. 

## **2.12 Fund accounting** 

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes. 

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements. 

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements. 

Investment income, gains and losses are allocated to the appropriate fund. 

Page 16 



## **BILLERICAY BAPTIST CHURCH** 

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

## **3. Income from donations and legacies** 

|**Unrestricted**<br>**funds**<br>**2020**<br>**£**<br>Donations<br>285,564<br>_Total 2019_<br>_295,097_|**Restricted**<br>**funds**<br>**2020**<br>**£**<br>27,206<br>_18,866_|**Total**<br>**funds**<br>**2020**<br>**£**<br>**312,770**<br>_313,963_|_Total_<br>_funds_<br>_2019_<br>_£_<br>_313,963_|
|---|---|---|---|
|||||



## **4. Investment income** 

|Investment income - local investment properties<br>Investment income - local cash<br>**Total 2020**<br>_Total 2019_<br>**Other incoming resources**<br><br>Other incoming<br>_Total 2019_|**Unrestricted**<br>**funds**<br>**2020**<br>**£**<br>13,800<br>91<br>13,891<br>_14,877_<br>**Unrestricted**<br>**funds**<br>**2020**<br>**£**<br>-<br>_647_|**Total**<br>**funds**<br>**2020**<br>**£**<br>**13,800**<br>**91**<br>**13,891**<br>_14,877_<br>**Total**<br>**funds**<br>**2020**<br>**£**<br>**-**<br>_647_|_Total_<br>_funds_<br>_2019_<br>_£_<br>_13,800_<br>_1,077_<br>_14,877_|
|---|---|---|---|
||||_Total_<br>_funds_<br>_2019_<br>_£_<br>_647_|
|||||



## **5. Other incoming resources** 

Page 17 



**BILLERICAY BAPTIST CHURCH** 

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

## **6. Analysis of grants** 

|**Grants to**<br>**Institutions**<br>**2020**<br>**Grants to**<br>**Individuals**<br>**2020**<br>**Total**<br>**funds**<br>**2020**<br>**£**<br>**£**<br>**£**<br>Grants, Ministry<br>98,873<br>500<br>**99,373**<br>_Total 2019_<br>_92,480_<br>_-_<br>_92,480_<br>The charity has made the following material grants to institutions during the year:<br>**2020**<br>**£**<br>**Name of institution**<br>Accomplish Trust<br>**3,400**<br>BMS Home Mission<br>**897**<br>BMS World Mission<br>**1,056**<br>BUGB Home Mission<br>**10,248**<br>Central African Mission<br>**2,640**<br>Christian Vision for Men<br>**2,580**<br>London City Mission<br>**3,330**<br>Churches Together in Billericay<br>**8,760**<br>French Baptist Federation<br>**-**<br>Echoes of Service<br>**2,340**<br>Interserve<br>**25,272**<br>Rooftop Ministries<br>**7,080**<br>ROPE<br>**5,069**<br>RSVP<br>**2,184**<br>Vision to Serve<br>**18,793**<br>Youth for Christ<br>**2,400**<br>Sundry Donations<br>**2,824**<br>**98,873**|_Total_<br>_funds_<br>_2019_<br>_£_<br>_92,480_|
|---|---|
||_2019_<br>_£_<br>_-_<br>_674_<br>_3,060_<br>_12,240_<br>_2,640_<br>_2,580_<br>_3,201_<br>_9,260_<br>_2,000_<br>_2,340_<br>_25,322_<br>_7,080_<br>_2,993_<br>_2,184_<br>_10,667_<br>_2,400_<br>_3,839_|
||_92,480_|



Page 18 



## **BILLERICAY BAPTIST CHURCH** 

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

## **7. Analysis of expenditure on charitable activities** 

## **Summary by fund type** 

|**Unrestricted**<br>**funds**<br>**2020**<br>**£**<br>Ministry<br>235,364<br>Community<br>392<br>**Total 2020**<br>235,756<br>_Total 2019_<br>_267,863_|**Restricted**<br>**funds**<br>**2020**<br>**£**<br>98,519<br>-<br>98,519<br>_91,800_|**Total**<br>**funds**<br>**2020**<br>**£**<br>**333,883**<br>**392**<br>**334,275**<br>_359,663_|_Total_<br>_funds_<br>_2019_<br>_£_<br>_356,100_<br>_3,563_<br>_359,663_|
|---|---|---|---|
|||||



## **8. Analysis of expenditure by activities** 

|Ministry<br>Community<br>**Total 2020**<br>_Total 2019_|**Activities**<br>**undertaken**<br>**directly**<br>**2020**<br>**£**<br>231,305<br>392<br>231,697<br>_263,616_|**Grant**<br>**funding of**<br>**activities**<br>**2020**<br>**£**<br>99,373<br>-<br>99,373<br>_92,480_|**Support**<br>**costs**<br>**2020**<br>**£**<br>3,205<br>-<br>3,205<br>_3,567_|**Total**<br>**funds**<br>**2020**<br>**£**<br>**333,883**<br>**392**<br>**334,275**<br>_359,663_|_Total_<br>_funds_<br>_2019_<br>_£_<br>_356,100_<br>_3,563_<br>_359,663_|
|---|---|---|---|---|---|
|||||||



Page 19 



## **BILLERICAY BAPTIST CHURCH** 

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

## **8. Analysis of expenditure by activities (continued)** 

## **Analysis of direct costs** 

|Staff costs<br>Depreciation<br>Training<br>Speakers<br>Premises expenses<br>Cleaning<br>Maintenance<br>Heat, Light & Water<br>Insurance<br>Hiring of premises<br>Subscriptions<br>Stationery & Printing<br>Communication<br>Telephone<br>Minibus<br>Other expenditure<br>General fund expenditure<br>**Total 2020**<br>_Total 2019_|**Ministry**<br>**2020**<br>**£**<br>156,938<br>7,136<br>6,675<br>150<br>6,444<br>3,509<br>5,750<br>8,265<br>2,923<br>1,176<br>1,571<br>2,316<br>1,732<br>2,401<br>1,329<br>742<br>22,248<br>231,305<br>_260,053_|**Community**<br>**2020**<br>**£**<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>392<br>392<br>_3,563_|**Total**<br>**funds**<br>**2020**<br>**£**<br>**156,938**<br>**7,136**<br>**6,675**<br>**150**<br>**6,444**<br>**3,509**<br>**5,750**<br>**8,265**<br>**2,923**<br>**1,176**<br>**1,571**<br>**2,316**<br>**1,732**<br>**2,401**<br>**1,329**<br>**742**<br>**22,640**<br>**231,697**<br>_263,616_|_Total_<br>_funds_<br>_2019_<br>_£_<br>_142,221_<br>_7,136_<br>_10,465_<br>_2,200_<br>_6,091_<br>_8,260_<br>_16,559_<br>_8,194_<br>_2,682_<br>_4,242_<br>_1,682_<br>_4,595_<br>_4,166_<br>_1,763_<br>_1,163_<br>_1,890_<br>_40,307_<br>_263,616_|
|---|---|---|---|---|
||||||



## **9. Independent examiner's remuneration** 

The independent examiner's remuneration amounts to an independent examiner fee of £1,848 ( _2019_ - _£1,795_ ). 

Page 20 



## **BILLERICAY BAPTIST CHURCH** 

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

## **10. Staff costs** 

|Wages and salaries<br>Social security costs<br>Contribution to defined contribution pension schemes|**2020**<br>**£**<br>**136,196**<br>**7,602**<br>**13,140**<br>**156,938**|_2019_<br>_£_<br>_123,704_<br>_7,210_<br>_11,308_|
|---|---|---|
|||_142,222_|



The average number of persons employed by the charity during the year was as follows: 

||**2020**|_2019_|
|---|---|---|
||**No.**|_No._|
|Employees|**6**|_6_|



No employee received remuneration amounting to more than £60,000 in either year. 

## **11. Trustees' remuneration and expenses** 

During the year, one or more Trustees has been paid remuneration or has received other benefits from an employment with the charity.  The value of Trustees' remuneration and other benefits was as follows: 

|||**2020**|_2019_|
|---|---|---|---|
|||**£**|_£_|
|Rev. I Smith|Remuneration|**35,650**|_34,500_|
||Pension contributions paid|**3,549**|_3,438_|



During the year ended 31 December 2020, no Trustee expenses have been incurred _(2019 - £NIL)_ . 

## **12. Tangible fixed assets** 

|**Cost or valuation**<br>At 1 January 2020<br>Additions<br>At 31 December 2020|**Freehold**<br>**property**<br>**£**<br>**1,343,902**<br>**21,160**<br>**1,365,062**|**Motor**<br>**vehicles**<br>**£**<br>**26,479**<br>**-**<br>**26,479**|**Computer**<br>**equipment**<br>**£**<br>**1,565**<br>**-**<br>**1,565**|**Total**<br>**£**<br>**1,371,946**<br>**21,160**<br>**1,393,106**|
|---|---|---|---|---|



Page 21 



## **BILLERICAY BAPTIST CHURCH** 

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

## **12. Tangible fixed assets (continued)** 

|**Depreciation**<br>At 1 January 2020<br>Charge for the year<br>At 31 December 2020<br>**Net book value**<br>At 31 December 2020<br>_At 31 December 2019_|**Freehold**<br>**property**<br>**£**<br>**-**<br>**-**<br>**-**<br>**1,365,062**<br>_1,343,902_|**Motor**<br>**vehicles**<br>**£**<br>**11,585**<br>**6,619**<br>**18,204**<br>**8,275**<br>_14,894_|**Computer**<br>**equipment**<br>**£**<br>**636**<br>**516**<br>**1,152**<br>**413**<br>_929_|**Total**<br>**£**<br>**12,221**<br>**7,135**<br>**19,356**|
|---|---|---|---|---|
|||||**1,373,750**|
|||||_1,359,725_|



Freehold manses are held at an open market value and the value is considered on an annual basis by the Trustees. All other assets including the church premises are stated at cost less accumulated depreciation. 

The fixed assets were transferred to the charity from the old charity on 1 January 2018 at a cost equivalent to open market value. 

## **13. Debtors** 

|**Due within one year**<br>Other debtors<br>Prepayments and accrued income<br>Tax recoverable|**2020**<br>**£**<br>**660**<br>**2,958**<br>**4,528**<br>**8,146**|_2019_<br>_£_<br>_2,140_<br>_2,890_<br>_25,688_|
|---|---|---|
|||_30,718_|



## **14. Creditors: Amounts falling due within one year** 

|Other creditors<br>Accruals and deferred income|**2020**<br>**£**<br>**5,849**<br>**12,689**<br>**18,538**|_2019_<br>_£_<br>_5,123_<br>_13,881_|
|---|---|---|
|||_19,004_|



Page 22 



**BILLERICAY BAPTIST CHURCH** 

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

## **15. Statement of funds** 

## **Statement of funds - current year** 

|**Unrestricted funds**<br>**Designated funds**<br>Manses<br>Reserve<br>Covid-19<br>**General funds**<br>General Fund<br>Other Organisation Fund<br>**Total Unrestricted funds**<br>**Restricted funds**<br>Church premises<br>Mission Fund<br>Life expo<br>**Total of funds**|**Balance at 1**<br>**January**<br>**2020**<br>**£**<br>**927,500**<br>**61,500**<br>**-**<br>**989,000**<br>**83,292**<br>**8,585**<br>**91,877**<br>**1,080,877**<br>**416,402**<br>**8,489**<br>**-**<br>**424,891**<br>**1,505,768**|**Income**<br>**£**<br>**-**<br>**-**<br>**-**<br>**-**<br>**295,743**<br>**3,712**<br>**299,455**<br>**299,455**<br>**-**<br>**26,206**<br>**1,000**<br>**27,206**<br>**326,661**|**Expenditure**<br>**£**<br>**-**<br>**-**<br>**(300)**<br>**(300)**<br>**(230,771)**<br>**(4,685)**<br>**(235,456)**<br>**(235,756)**<br>**-**<br>**(98,519)**<br>**-**<br>**(98,519)**<br>**(334,275)**|**Transfers**<br>**in/out**<br>**£**<br>**-**<br>**3,500**<br>**5,000**<br>**8,500**<br>**(99,430)**<br>**-**<br>**(99,430)**<br>**(90,930)**<br>**21,160**<br>**69,770**<br>**-**<br>**90,930**<br>**-**|**Balance at**<br>**31**<br>**December**<br>**2020**<br>**£**<br>**927,500**<br>**65,000**<br>**4,700**<br>**997,200**|
|---|---|---|---|---|---|
||||||**48,834**<br>**7,612**<br>**56,446**|
||||||**1,053,646**|
||||||**437,562**<br>**5,946**<br>**1,000**<br>**444,508**|
||||||**1,498,154**|



Page 23 



## **BILLERICAY BAPTIST CHURCH** 

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

## **15. Statement of funds (continued)** 

## **Statement of funds - prior year** 

|**Unrestricted funds**<br>**Designated funds**<br>Manses<br>Reserve<br>**General funds**<br>General Fund<br>Other Organisation Fund<br>**Total Unrestricted funds**<br>**Restricted funds**<br>Church premises<br>Mission Fund<br>**Total of funds**|_Balance at_<br>_1 January_<br>_2019_<br>_£_<br>_927,500_<br>_60,000_<br>987,500<br>_116,630_<br>_7,161_<br>123,791<br>1,111,291<br>_416,402_<br>_8,251_<br>424,653<br>_1,535,944_|_Income_<br>_£_<br>_-_<br>_-_<br>-<br>_302,808_<br>_7,814_<br>310,622<br>310,622<br>_-_<br>_18,866_<br>18,866<br>_329,488_|_Expenditure_<br>_£_<br>_-_<br>_-_<br>-<br>_(261,473)_<br>_(6,391)_<br>(267,864)<br>(267,864)<br>_-_<br>_(91,800)_<br>(91,800)<br>_(359,664)_|_Transfers_<br>_in/out_<br>_£_<br>_-_<br>_1,500_<br>_1,500_<br>_(74,672)_<br>_-_<br>_(74,672)_<br>_(73,172)_<br>_-_<br>_73,172_<br>_73,172_<br>_-_|_Balance at_<br>_31_<br>_December_<br>_2019_<br>_£_<br>_927,500_<br>_61,500_<br>_989,000_|
|---|---|---|---|---|---|
||||||_83,293_<br>_8,584_<br>_91,877_|
||||||_1,080,877_|
||||||_416,402_<br>_8,489_<br>_424,891_|
||||||_1,505,768_|



Page 24 



## **BILLERICAY BAPTIST CHURCH** 

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

## **16. Summary of funds** 

## **Summary of funds - current year** 

|Designated funds<br>General funds<br>Restricted funds|**Balance at 1**<br>**January**<br>**2020**<br>**£**<br>**989,000**<br>**91,877**<br>**424,891**<br>**1,505,768**<br>_Balance at_<br>_1 January_<br>_2019_<br>_£_<br>_987,500_<br>_123,791_<br>_424,653_<br>_1,535,944_|**Income**<br>**£**<br>**-**<br>**299,455**<br>**27,206**<br>**326,661**<br>_Income_<br>_£_<br>_-_<br>_310,622_<br>_18,866_<br>_329,488_|**Expenditure**<br>**£**<br>**(300)**<br>**(235,456)**<br>**(98,519)**<br>**(334,275)**<br>_Expenditure_<br>_£_<br>_-_<br>_(267,864)_<br>_(91,800)_<br>_(359,664)_|**Transfers**<br>**in/out**<br>**£**<br>**8,500**<br>**(99,430)**<br>**90,930**<br>**-**<br>_Transfers_<br>_in/out_<br>_£_<br>_1,500_<br>_(74,672)_<br>_73,172_<br>_-_|**Balance at**<br>**31**<br>**December**<br>**2020**<br>**£**<br>**997,200**<br>**56,446**<br>**444,508**<br>**1,498,154**|
|---|---|---|---|---|---|
||||||_Balance at_<br>_31_<br>_December_<br>_2019_<br>_£_<br>_989,000_<br>_91,877_<br>_424,891_<br>_1,505,768_|
|**Summary of funds - prior year**||||||
|Designated funds<br>General funds<br>Restricted funds||||||



## **17. Analysis of net assets between funds** 

**Analysis of net assets between funds - current period** 

|**Unrestricted**<br>**funds**<br>**2020**<br>**£**<br>Tangible fixed assets<br>936,188<br>Current assets<br>133,296<br>Creditors due within one year<br>(15,838)<br>**Total**<br>1,053,646|**Restricted**<br>**funds**<br>**2020**<br>**£**<br>437,562<br>9,646<br>(2,700)<br>444,508|**Total**<br>**funds**<br>**2020**<br>**£**<br>**1,373,750**<br>**142,942**<br>**(18,538)**<br>**1,498,154**|
|---|---|---|



Page 25 



## **BILLERICAY BAPTIST CHURCH** 

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

## **17. Analysis of net assets between funds (continued)** 

## **Analysis of net assets between funds - prior period** 

|Tangible fixed assets<br>Current assets<br>Creditors due within one year<br>**Total**|_Unrestricted_<br>_funds_<br>_2019_<br>_£_<br>943,324<br>156,557<br>(19,004)<br>1,080,877|_Restricted_<br>_funds_<br>_2019_<br>_£_<br>416,401<br>8,490<br>-<br>424,891|_Total_<br>_funds_<br>_2019_<br>_£_<br>_1,359,725_<br>_165,047_<br>_(19,004)_<br>_1,505,768_|
|---|---|---|---|



## **18. Pension commitments** 

The charity operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the charity in an independently administered fund. The pension cost charge represents contributions payable by the charity to the fund and amounted to £13,140 (2019: £11,308). Contributions totalling £8,123 (2019: £9,491) were payable to the fund at the balance sheet date and are included in creditors. 

## **19. Related party transactions** 

Aggregate donations, excluding Gift Aid tax refund, of £12,800 (2019: £9,645) were received by the charity from Trustees and their spouses.  There have been no other related party transactions that require disclosure. 

## **20. Agency funds** 

During the year, the charity acted as agent for a member who had raised funds for a charity in India. Income of £6,700 and amounts paid to the charity totalling £4,000 have been excluded from these accounts. The remaining balance of £2,700 held in the charity's bank account at the balance sheet date is included in creditors. 

Page 26