Charity number: 1174549
BILLERICAY BAPTIST CHURCH
UNAUDITED
TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
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 2021
Trustees
Rev. I Smith, Senior Minister (resigned 28 October 2021) R Warrington C White A Hough J Powell
T Madders (appointed 29 September 2021, resigned 12 December 2021)
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 2021
We present our Annual Report together with the financial statements of Billericay Baptist Church (“the Charity”; “the Church”) for the period ended 31 December 2021. 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:
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“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.
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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.
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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.”
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BILLERICAY BAPTIST CHURCH
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
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 financially 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 5 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 are 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, 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 in which the Church can meet its objectives in communities and jurisdictions beyond its own immediate 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.
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BILLERICAY BAPTIST CHURCH
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
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 and to support its mission partners.
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Of its donations (including associated Gift Aid recovery) of £364,820 the Church has provided grants to oher organisations of £92,637.
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Expenditure on charitable activities has increased by 8% largely as a result of the appointments of Associate Minister and part-time Children’s Worker being employed for a complete year, and some significant maintenance required on one of the Church buildings. Changes in staffing levels mean that we anticipate expenditure to fall considerably in 2022.
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Net current assets at the yearend were £133,015 up from £124,404 in the previous year, with cash balances falling from £134,796 to £125,635. Excluding funds held on behalf of other church related organisations, general cash reserves (including Gift Day reserves) at the end of the year were £111,190.
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During the year, a Gift Day was held raising £61,208. The purpose of the Gift Day was wide with funds being used either to cover Church operating deficits or for specific ministry initiatives. At the end of the year £45,988 remained.
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BILLERICAY BAPTIST CHURCH
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
Achievements and performance (continued)
c. Review of activities
Whilst 2020 had been a year like no other, 2021 slowly saw the Church emerging from many of the restrictions and measures designed to slow the spread of COVID-19. In line with guidance provided by the UK Government, the Baptist Union and the National Youth Agency, the Church was able to re-open its buildings for church services and other activities following COVID protocols established by the Trustees and agreed with the various ministry leaders within the Church. Whilst not in any way a full return to ‘normal’, the Church was appreciative of the steps that it was able to take and remains hopeful that more freedom will be experienced in 2022.
In accordance with the Church’s COVID protocols, work with community groups including supporting the elderly, particularly those with dementia, and those caring for babies and very young children has re-started. We would like to engage more with our local community and will continue to be seeking ways in which we can do this.
Throughout the COVID pandemic, the Church has made use of on-line communication tools to help deliver many of its core services. Recognising the benefits that this brings, the Church intends to continue on this path exploring how on-line communication tools can be used alongside face-to-face gatherings to enable the Church to better achieve its objectives. New equipment has been purchased to provide greater flexibility for users and a better outcome for those people viewing on-line.
The Church has not made use of any government financial assistance during the year and recognising the potential financial hardship that may 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 and as such the designation has been removed, with any remaining funds being transferred back into general reserves.
In the latter part of the year, the Church was made aware that for different and unconnected reasons its Senior Minister, Associate Minister and Children’s Worker would all be leaving. The Church is thankful for the years of service provided by these three people and whilst their departure leaves the Church currently under-resourced, the timing provides an opportunity for the Church Leadership and Trustees to consider what roles and ministry structure will be appropriate for the future operation of the Church.
This process in now under way, and whilst it continues, the Church will make use of its volunteers to help deliver its various ministries.
Given that backdrop, the main activity highlights for 2021 are set out below.
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In accordance with its own COVID protocols, the Church was able to re-open its buildings for church services, youth work and other community related activities.
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In the early part of the year, prior to the Church buildings being re-opened, church services, including services constructed primarily for children and young people were provided ‘on-line’. Since re-opening, the Church has continued to provide on-line material including ‘streaming’ its Sunday morning service from its building located on Perry Street.
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Two of the Church’s congregations merged and now meet for church services in the Church’s refurbished building in Thynne Road. The refurbishment increased the building’s capacity and ensures that it remains ‘fit-for-purpose’.
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Prayer meetings and Church Members’ Meetings were largely held on-line, both continuing to see higher attendance than previously experienced ‘in person’. Whilst the dispensation allowing Church Members’ Meetings to be held on-line has now expired, the Church Leadership is evaluating the future place of online activities believing they have a continuing role to play in helping the Church meet its objectives.
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The Church remains an active member of Churches Together in Billericay 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 supporting a number of families in the town.
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BILLERICAY BAPTIST CHURCH
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
Achievements and performance (continued)
- 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 mission partners undertake in helping the Church fulfil its objectives both within and beyond the Billericay town boundaries.
Financial review
a. 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. Finance reports are provided regularly 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 finances, but nevertheless contribute substantially to the achievement of the Church’s objectives.
Income for 2021, including a Gift Day (see below) was £374,633 (2020 £326,661) and with expenditure of £361,453 (2020 £334,275), resulted in a net surplus for the year of £13,180 (2020 deficit £7,614). 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 £1,511,334 (2020 £1,498,154), of which £455,123 (2020 £444,508) are restricted and £1,038,488 (2020 £997,200) are designated. Full details of the Church’s assets, liabilities and reserves can be found in the Balance Sheet and the associated notes.
Following a number of years in which the Church has run, for management purposes, financial operating deficits, the Church Leadership agreed that the Church should hold a Gift Day in 2021 primarily to help manage future deficits, but also to fund future ministry initiatives. Including associated Gift Aid, the Gift Day raised £61,208. Of this, £8,742 has been used to cover what would otherwise have been a management operating deficit in 2021, with a further £6,478 used to purchase equipment to help the Church grow its online activities. The leaves £45,988 held as a designated fund at the end of the year.
The resignation of the Church’s Senior Minister, Associate Minister and Children’s Worker means that the Church will start 2022 with a considerably lower cost base. Whilst recognising the uncertainty that the timing of future appointments will have and the continued distortion on the Church’s finances caused by the COVID pandemic, the Trustees and Church Members have approved a surplus operational budget for 2022.
With this backdrop of uncertainty, and whilst we are prepared, if necessary, 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 and are prepared to take measures necessary to maintain the financial stability of the Church.
b. Reserves policy
We have agreed a Reserves Policy which is broadly equivalent to three month's full staffing and missionary support costs and one month's other expenditure. For the current year, this figure is £65,000 and is covered by unrestricted cash reserves.
The Trustees review the Reserves Policy annually as part of the budget setting process.
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BILLERICAY BAPTIST CHURCH
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
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.
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.
Structure
The Church has a Leadership Team (Minsters 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 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 under the direction of the responsible 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, Elders 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’ Meeting.
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BILLERICAY BAPTIST CHURCH
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
Structure, governance and management (continued)
c. Principal risks and operating policies
Operating policies are maintained by the Church to:
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Allow for consistent and efficient decision making
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Provide transparency and accountability
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Provide a framework for fairness
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Protect staff and volunteers.
A Risks Register is maintained and reviewed regularly. No ‘high-risk’ situations requiring urgent action were identified during 2021, 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.
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BILLERICAY BAPTIST CHURCH
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
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:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles of the Charities SORP (FRS 102);
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make judgments and accounting estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;
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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 Date: 7 March 2022
J Powell Church Secretary
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BILLERICAY BAPTIST CHURCH
INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 31 DECEMBER 2021
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 2021.
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.
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BILLERICAY BAPTIST CHURCH
INDEPENDENT EXAMINER'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
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 the Institute of Chartered Accountants in England and Wales (ICAEW), 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:
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accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or
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the accounts do not accord with those records; or
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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: 10 March 2022 Stuart Harrison FCA
Venthams
Chartered Accountants Millhouse 32 - 38 East Street Rochford Essex SS4 1DB
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BILLERICAY BAPTIST CHURCH
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2021
| Note Income from: Donations and legacies 3 Investments 4 Total income Expenditure on: Charitable activities 6 Total expenditure Net income/(expenditure) Transfers between funds 14 Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward |
Unrestricted funds 2021 £ 338,784 9,813 348,597 266,277 266,277 82,320 (79,755) 2,565 1,053,646 2,565 1,056,211 |
Restricted funds 2021 £ 26,036 - 26,036 95,176 95,176 (69,140) 79,755 10,615 444,508 10,615 455,123 |
Total funds 2021 £ 364,820 9,813 374,633 361,453 361,453 13,180 - 13,180 1,498,154 13,180 1,511,334 |
Total funds 2020 £ 312,770 13,891 326,661 334,275 334,275 (7,614) - (7,614) 1,505,768 (7,614) 1,498,154 |
|---|---|---|---|---|
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BILLERICAY BAPTIST CHURCH
BALANCE SHEET FOR THE YEAR ENDED 31 DECEMBER 2021
| Note Fixed assets Tangible assets 11 Current assets Debtors 12 Cash at bank and in hand Creditors: amounts falling due within one year 13 Net current assets Total net assets Charity funds Restricted funds 14 Unrestricted funds 14 Total funds |
18,343 125,635 143,978 (10,963) |
2021 £ 1,378,319 1,378,319 133,015 1,511,334 455,123 1,056,211 1,511,334 |
8,146 134,796 142,942 (18,538) |
2020 £ 1,373,750 |
|---|---|---|---|---|
| 1,373,750 124,404 |
||||
| 1,498,154 | ||||
| 444,508 1,053,646 |
||||
| 1,498,154 |
The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:
A Hough Church Treasurer Date: 7 March 2022
J Powell Chair of Trustees
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BILLERICAY BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
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.
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.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the charity's objectives, as well as any associated support costs.
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BILLERICAY BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
2. Accounting policies (continued)
2.4 Expenditure (continued)
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.
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BILLERICAY BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
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.
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BILLERICAY BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
3. Income from donations and legacies
| Unrestricted funds 2021 £ Donations 338,784 Total 2020 281,851 |
Restricted funds 2021 £ 26,036 30,919 |
Total funds 2021 £ 364,820 312,770 |
Total funds 2020 £ 312,770 |
|---|---|---|---|
4. Investment income
| Unrestricted funds 2021 £ Investment income - local investment properties 9,635 Investment income - local cash 178 Total 2021 9,813 Total 2020 13,891 |
Total funds 2021 £ 9,635 178 9,813 13,891 |
Total funds 2020 £ 13,800 91 13,891 |
|---|---|---|
5. Analysis of grants
| Grants, Ministry Total 2020 |
Grants to Institutions 2021 £ 92,637 98,873 |
Grants to Individuals 2021 £ - 500 |
Total funds 2021 £ 92,637 99,373 |
Total funds 2020 £ 99,373 |
|---|---|---|---|---|
The charity has made the following material grants to institutions during the year:
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BILLERICAY BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
5. Analysis of grants (continued)
| Name of institution Accomplish Trust BMS Home Mission BMS World Mission BUGB Home Mission Central African Mission Christian Vision for Men London City Mission Churches Together in Billericay Echoes of Service Interserve Rooftop Ministries Project Possible (ROPE) RSVP Vision to Serve Youth for Christ Sundry Donations |
2021 £ 5,365 503 1,056 10,248 2,592 2,535 3,000 9,122 2,298 25,962 6,954 3,750 2,160 12,052 2,358 2,682 92,637 |
2020 £ 3,400 897 1,056 10,248 2,640 2,580 3,330 8,760 2,340 25,272 7,080 5,069 2,184 18,793 2,400 2,824 |
|---|---|---|
| 98,873 |
6. Analysis of expenditure on charitable activities Summary by fund type
| Unrestricted funds 2021 £ Ministry 266,246 Community 31 Total 2021 266,277 Total 2020 231,077 |
Restricted funds 2021 £ 95,176 - 95,176 103,198 |
Total funds 2021 £ 361,422 31 361,453 334,275 |
Total funds 2020 £ 333,883 392 334,275 |
|---|---|---|---|
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BILLERICAY BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
7. Analysis of expenditure by activities
| Ministry Community Total 2021 Total 2020 |
Activities undertaken directly 2021 £ 264,947 31 264,978 231,697 |
Grant funding of activities 2021 £ 92,637 - 92,637 99,373 |
Support costs 2021 £ 3,838 - 3,838 3,205 |
Total funds 2021 £ 361,422 31 361,453 334,275 |
Total funds 2020 £ 333,883 392 334,275 |
|---|---|---|---|---|---|
Analysis of direct costs
| Staff costs Depreciation Training Speakers Premises expenses Cleaning Maintenance Heat, Light & Water Insurance Hiring of premises Subscriptions Stationery & Printing Communication Telephone Minibus Other expenditure General fund expenditure Total 2021 Total 2020 |
Ministry 2021 £ 157,040 9,170 34 75 8,000 4,460 44,547 8,060 3,072 150 1,602 1,972 7,779 2,421 1,607 1,260 13,698 264,947 231,305 |
Community 2021 £ - - - - - - - - - - - - - - - - 31 31 392 |
Total funds 2021 £ 157,040 9,170 34 75 8,000 4,460 44,547 8,060 3,072 150 1,602 1,972 7,779 2,421 1,607 1,260 13,729 264,978 231,697 |
Total funds 2020 £ 156,938 7,136 6,675 150 6,444 3,509 5,750 8,265 2,923 1,176 1,571 2,316 1,732 2,401 1,329 742 22,640 231,697 |
|---|---|---|---|---|
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BILLERICAY BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
8. Independent examiner's remuneration
The independent examiner's remuneration amounts to an independent examiner fee of £1,903 ( 2020 - £1,848 ).
9. Staff costs
| Wages and salaries Social security costs Contribution to defined contribution pension schemes |
2021 £ 135,607 7,575 13,858 157,040 |
2020 £ 136,196 7,602 13,140 |
|---|---|---|
| 156,938 |
The average number of persons employed by the charity during the year was as follows:
| 2021 | 2020 | |
|---|---|---|
| No. | No. | |
| Employees | 6 | 6 |
No employee received remuneration amounting to more than £60,000 in either year.
10. 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:
| 2021 | 2020 | ||
|---|---|---|---|
| £ | £ | ||
| Rev. I Smith | Remuneration | 30,292 | 35,650 |
| Pension contributions paid | 3,021 | 3,549 | |
| T Madders | Remuneration | 6,962 | - |
| Pension contributions paid | 678 | - |
During the year ended 31 December 2021, no Trustee expenses have been incurred (2020 - £NIL) .
Page 20
BILLERICAY BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
11. Tangible fixed assets
| Cost or valuation At 1 January 2021 Additions At 31 December 2021 Depreciation At 1 January 2021 Charge for the year At 31 December 2021 Net book value At 31 December 2021 At 31 December 2020 |
Freehold property £ 1,365,062 7,262 1,372,324 - - - 1,372,324 1,365,062 |
Motor vehicles £ 26,479 - 26,479 18,204 6,620 24,824 1,655 8,275 |
Computer equipment £ 1,565 6,477 8,042 1,152 2,550 3,702 4,340 413 |
Total £ 1,393,106 13,739 1,406,845 |
|---|---|---|---|---|
| 19,356 9,170 28,526 |
||||
| 1,378,319 | ||||
| 1,373,750 |
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.
12. Debtors
| Due within one year Other debtors Prepayments and accrued income Tax recoverable |
2021 £ - 2,687 15,656 18,343 |
2020 £ 660 2,958 4,528 8,146 |
|---|---|---|
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BILLERICAY BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
13. Creditors: Amounts falling due within one year
| Other creditors Accruals and deferred income |
2021 £ 5,027 5,936 10,963 |
2020 £ 5,849 12,689 |
|---|---|---|
| 18,538 |
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BILLERICAY BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
14. Statement of funds
Statement of funds - current year
| Unrestricted funds Designated funds Manses Reserve Covid-19 Gift day General funds General Fund Other Organisation Fund Total Unrestricted funds Restricted funds Church premises Mission Fund Life expo Boys Brigade Girls Brigade Total of funds |
Balance at 1 January 2021 £ 927,500 65,000 4,700 - 997,200 48,834 7,612 56,446 1,053,646 437,562 5,946 1,000 - - 444,508 1,498,154 |
Income £ - - - 61,208 61,208 287,389 - 287,389 348,597 - 21,737 - 2,550 1,749 26,036 374,633 |
Expenditure £ - - - - - (266,277) - (266,277) (266,277) - (92,333) - (939) (1,904) (95,176) (361,453) |
Transfers in/out £ - - (4,700) (15,220) (19,920) (54,419) (5,416) (59,835) (79,755) 7,262 67,077 - 1,636 3,780 79,755 - |
Balance at 31 December 2021 £ 927,500 65,000 - 45,988 1,038,488 |
|---|---|---|---|---|---|
| 15,527 2,196 17,723 |
|||||
| 1,056,211 | |||||
| 444,824 2,427 1,000 3,247 3,625 455,123 |
|||||
| 1,511,334 |
Boys Brigade and Girls Brigade have previously been reported within unrestricted funds. The nature of these funds has been reviewed with a decision made to report these as restricted funds going forward. Accordingly, the opening balances of these funds which have always been maintained as individual funds, have been transferred into restricted funds with income and expenditure relating to these funds being reported as restricted.
Page 23
BILLERICAY BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
14. Statement of funds (continued)
Statement of funds - prior year
| Unrestricted funds Designated funds Manses Reserve Covid-19 General funds General Fund Other Organisation Fund Total Unrestricted funds Restricted funds Church premises Mission Fund Life expo Total of funds |
Balance at 1 January 2020 £ 927,500 61,500 - 989,000 83,292 8,585 91,877 1,080,877 416,402 8,489 - 424,891 1,505,768 |
Income £ - - - - 295,743 3,712 299,455 299,455 - 26,206 1,000 27,206 326,661 |
Expenditure £ - - (300) (300) (230,771) (4,685) (235,456) (235,756) - (98,519) - (98,519) (334,275) |
Transfers in/out £ - 3,500 5,000 8,500 (99,430) - (99,430) (90,930) 21,160 69,770 - 90,930 - |
Balance at 31 December 2020 £ 927,500 65,000 4,700 997,200 |
|---|---|---|---|---|---|
| 48,834 7,612 56,446 |
|||||
| 1,053,646 | |||||
| 437,562 5,946 1,000 444,508 |
|||||
| 1,498,154 |
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BILLERICAY BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
15. Summary of funds
Summary of funds - current year
| Designated funds General funds Restricted funds |
Balance at 1 January 2021 £ 997,200 56,446 444,508 1,498,154 Balance at 1 January 2020 £ 989,000 91,877 424,891 1,505,768 |
Income £ 61,208 287,389 26,036 374,633 Income £ - 299,455 27,206 326,661 |
Expenditure £ - (266,277) (95,176) (361,453) Expenditure £ (300) (235,456) (98,519) (334,275) |
Transfers in/out £ (19,920) (59,835) 79,755 - Transfers in/out £ 8,500 (99,430) 90,930 - |
Balance at 31 December 2021 £ 1,038,488 17,723 455,123 1,511,334 |
|---|---|---|---|---|---|
| Balance at 31 December 2020 £ 997,200 56,446 444,508 1,498,154 |
|||||
| Summary of funds - prior year | |||||
| Designated funds General funds Restricted funds |
16. Analysis of net assets between funds
Analysis of net assets between funds - current year
| Unrestricted funds 2021 £ Tangible fixed assets 933,495 Current assets 133,678 Creditors due within one year (10,962) Total 1,056,211 |
Restricted funds 2021 £ 444,824 10,299 - 455,123 |
Total funds 2021 £ 1,378,319 143,977 (10,962) 1,511,334 |
|---|---|---|
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BILLERICAY BAPTIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
16. Analysis of net assets between funds (continued)
Analysis of net assets between funds - prior year
| Tangible fixed assets Current assets Creditors due within one year Total |
Unrestricted funds 2020 £ 936,188 133,296 (15,838) 1,053,646 |
Restricted funds 2020 £ 437,562 9,646 (2,700) 444,508 |
Total funds 2020 £ 1,373,750 142,942 (18,538) 1,498,154 |
|---|---|---|---|
17. 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 £13,858 (2020: £13,140). Contributions totalling £1,133 (2020: £8,123) were payable to the fund at the balance sheet date and are included in creditors.
18. Related party transactions
Aggregate donations, excluding Gift Aid tax refund, of £25,115 (2020: £12,800) were received by the charity from Trustees and their spouses. There have been no other related party transactions that require disclosure.
19. Agency funds
During the previous year, the charity acted as agent for a member who had raised funds for a charity in India. There is a balance held in the charity's bank account at the balance sheet date of £1,950 and is included within creditors.
Page 26