**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: 

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 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. 

- Of its donations (including associated Gift Aid recovery) of £364,820 the Church has provided grants to oher organisations of £92,637. 

- 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. 

- 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. 

- 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. 

Page 4 



**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. 

- 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. 

- 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. 

- 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’. 

- 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. 

- 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. 

Page 6 



**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. 

Page 7 



**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: 

- Allow for consistent and efficient decision making 

- Provide transparency and accountability 

- Provide a framework for fairness 

- 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. 

Page 8 



**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: 

- 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 Date: 7 March 2022 

**J Powell** Church Secretary 

Page 9 



## **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. 

Page 10 



## **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: 

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: 10 March 2022 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 2021** 

|**Note**<br>**Income from:**<br>Donations and legacies<br>3<br>Investments<br>4<br>**Total income**<br>**Expenditure on:**<br>Charitable activities<br>6<br>**Total expenditure**<br>**Net income/(expenditure)**<br>Transfers between funds<br>14<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>**2021**<br>**£**<br>**338,784**<br>**9,813**<br>**348,597**<br>**266,277**<br>**266,277**<br>**82,320**<br>**(79,755)**<br>**2,565**<br>**1,053,646**<br>**2,565**<br>**1,056,211**|**Restricted**<br>**funds**<br>**2021**<br>**£**<br>**26,036**<br>**-**<br>**26,036**<br>**95,176**<br>**95,176**<br>**(69,140)**<br>**79,755**<br>**10,615**<br>**444,508**<br>**10,615**<br>**455,123**|**Total**<br>**funds**<br>**2021**<br>**£**<br>**364,820**<br>**9,813**<br>**374,633**<br>**361,453**<br>**361,453**<br>**13,180**<br>**-**<br>**13,180**<br>**1,498,154**<br>**13,180**<br>**1,511,334**|_Total_<br>_funds_<br>_2020_<br>_£_<br>_312,770_<br>_13,891_<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_|
|---|---|---|---|---|



Page 12 



## **BILLERICAY BAPTIST CHURCH** 

## **BALANCE SHEET FOR THE YEAR ENDED 31 DECEMBER 2021** 

|**Note**<br>**Fixed assets**<br>Tangible assets<br>11<br>**Current assets**<br>Debtors<br>12<br>Cash at bank and in hand<br>Creditors: amounts falling due within one<br>year<br>13<br>**Net current assets**<br>**Total net assets**<br>**Charity funds**<br>Restricted funds<br>14<br>Unrestricted funds<br>14<br>**Total funds**|**18,343**<br>**125,635**<br>**143,978**<br>**(10,963)**|**2021**<br>**£**<br>**1,378,319**<br>**1,378,319**<br>**133,015**<br>**1,511,334**<br>**455,123**<br>**1,056,211**<br>**1,511,334**|_8,146_<br>_134,796_<br>_142,942_<br>_(18,538)_|_2020_<br>_£_<br>_1,373,750_|
|---|---|---|---|---|
|||||_1,373,750_<br>_124,404_|
|||||_1,498,154_|
|||||_444,508_<br>_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. 

Page 16 



## **BILLERICAY BAPTIST CHURCH** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** 

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

|**Unrestricted**<br>**funds**<br>**2021**<br>**£**<br>Donations<br>338,784<br>_Total 2020_<br>_281,851_|**Restricted**<br>**funds**<br>**2021**<br>**£**<br>26,036<br>_30,919_|**Total**<br>**funds**<br>**2021**<br>**£**<br>**364,820**<br>_312,770_|_Total_<br>_funds_<br>_2020_<br>_£_<br>_312,770_|
|---|---|---|---|
|||||



## **4. Investment income** 

|**Unrestricted**<br>**funds**<br>**2021**<br>**£**<br>Investment income - local investment properties<br>9,635<br>Investment income - local cash<br>178<br>**Total 2021**<br>9,813<br>_Total 2020_<br>_13,891_|**Total**<br>**funds**<br>**2021**<br>**£**<br>**9,635**<br>**178**<br>**9,813**<br>_13,891_|_Total_<br>_funds_<br>_2020_<br>_£_<br>_13,800_<br>_91_<br>_13,891_|
|---|---|---|
||||



## **5. Analysis of grants** 

|Grants, Ministry<br>_Total 2020_|**Grants to**<br>**Institutions**<br>**2021**<br>**£**<br>92,637<br>_98,873_|**Grants to**<br>**Individuals**<br>**2021**<br>**£**<br>-<br>_500_|**Total**<br>**funds**<br>**2021**<br>**£**<br>**92,637**<br>_99,373_|_Total_<br>_funds_<br>_2020_<br>_£_<br>_99,373_|
|---|---|---|---|---|
||||||



The charity has made the following material grants to institutions during the year: 

Page 17 



## **BILLERICAY BAPTIST CHURCH** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** 

## **5. Analysis of grants (continued)** 

|**Name of institution**<br>Accomplish Trust<br>BMS Home Mission<br>BMS World Mission<br>BUGB Home Mission<br>Central African Mission<br>Christian Vision for Men<br>London City Mission<br>Churches Together in Billericay<br>Echoes of Service<br>Interserve<br>Rooftop Ministries<br>Project Possible (ROPE)<br>RSVP<br>Vision to Serve<br>Youth for Christ<br>Sundry Donations|**2021**<br>**£**<br>**5,365**<br>**503**<br>**1,056**<br>**10,248**<br>**2,592**<br>**2,535**<br>**3,000**<br>**9,122**<br>**2,298**<br>**25,962**<br>**6,954**<br>**3,750**<br>**2,160**<br>**12,052**<br>**2,358**<br>**2,682**<br>**92,637**|_2020_<br>_£_<br>_3,400_<br>_897_<br>_1,056_<br>_10,248_<br>_2,640_<br>_2,580_<br>_3,330_<br>_8,760_<br>_2,340_<br>_25,272_<br>_7,080_<br>_5,069_<br>_2,184_<br>_18,793_<br>_2,400_<br>_2,824_|
|---|---|---|
|||_98,873_|



## **6. Analysis of expenditure on charitable activities Summary by fund type** 

|**Unrestricted**<br>**funds**<br>**2021**<br>**£**<br>Ministry<br>266,246<br>Community<br>31<br>**Total 2021**<br>266,277<br>_Total 2020_<br>_231,077_|**Restricted**<br>**funds**<br>**2021**<br>**£**<br>95,176<br>-<br>95,176<br>_103,198_|**Total**<br>**funds**<br>**2021**<br>**£**<br>**361,422**<br>**31**<br>**361,453**<br>_334,275_|_Total_<br>_funds_<br>_2020_<br>_£_<br>_333,883_<br>_392_<br>_334,275_|
|---|---|---|---|
|||||



Page 18 



## **BILLERICAY BAPTIST CHURCH** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** 

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

|Ministry<br>Community<br>**Total 2021**<br>_Total 2020_|**Activities**<br>**undertaken**<br>**directly**<br>**2021**<br>**£**<br>264,947<br>31<br>264,978<br>_231,697_|**Grant**<br>**funding of**<br>**activities**<br>**2021**<br>**£**<br>92,637<br>-<br>92,637<br>_99,373_|**Support**<br>**costs**<br>**2021**<br>**£**<br>3,838<br>-<br>3,838<br>_3,205_|**Total**<br>**funds**<br>**2021**<br>**£**<br>**361,422**<br>**31**<br>**361,453**<br>_334,275_|_Total_<br>_funds_<br>_2020_<br>_£_<br>_333,883_<br>_392_<br>_334,275_|
|---|---|---|---|---|---|
|||||||



## **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 2021**<br>_Total 2020_|**Ministry**<br>**2021**<br>**£**<br>157,040<br>9,170<br>34<br>75<br>8,000<br>4,460<br>44,547<br>8,060<br>3,072<br>150<br>1,602<br>1,972<br>7,779<br>2,421<br>1,607<br>1,260<br>13,698<br>264,947<br>_231,305_|**Community**<br>**2021**<br>**£**<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>31<br>31<br>_392_|**Total**<br>**funds**<br>**2021**<br>**£**<br>**157,040**<br>**9,170**<br>**34**<br>**75**<br>**8,000**<br>**4,460**<br>**44,547**<br>**8,060**<br>**3,072**<br>**150**<br>**1,602**<br>**1,972**<br>**7,779**<br>**2,421**<br>**1,607**<br>**1,260**<br>**13,729**<br>**264,978**<br>_231,697_|_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_|
|---|---|---|---|---|
||||||



Page 19 



## **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<br>Social security costs<br>Contribution to defined contribution pension schemes|**2021**<br>**£**<br>**135,607**<br>**7,575**<br>**13,858**<br>**157,040**|_2020_<br>_£_<br>_136,196_<br>_7,602_<br>_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**<br>At 1 January 2021<br>Additions<br>At 31 December 2021<br>**Depreciation**<br>At 1 January 2021<br>Charge for the year<br>At 31 December 2021<br>**Net book value**<br>At 31 December 2021<br>_At 31 December 2020_|**Freehold**<br>**property**<br>**£**<br>**1,365,062**<br>**7,262**<br>**1,372,324**<br>**-**<br>**-**<br>**-**<br>**1,372,324**<br>_1,365,062_|**Motor**<br>**vehicles**<br>**£**<br>**26,479**<br>**-**<br>**26,479**<br>**18,204**<br>**6,620**<br>**24,824**<br>**1,655**<br>_8,275_|**Computer**<br>**equipment**<br>**£**<br>**1,565**<br>**6,477**<br>**8,042**<br>**1,152**<br>**2,550**<br>**3,702**<br>**4,340**<br>_413_|**Total**<br>**£**<br>**1,393,106**<br>**13,739**<br>**1,406,845**|
|---|---|---|---|---|
|||||**19,356**<br>**9,170**<br>**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**<br>Other debtors<br>Prepayments and accrued income<br>Tax recoverable|**2021**<br>**£**<br>**-**<br>**2,687**<br>**15,656**<br>**18,343**|_2020_<br>_£_<br>_660_<br>_2,958_<br>_4,528_<br>_8,146_|
|---|---|---|



Page 21 



## **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<br>Accruals and deferred income|**2021**<br>**£**<br>**5,027**<br>**5,936**<br>**10,963**|_2020_<br>_£_<br>_5,849_<br>_12,689_|
|---|---|---|
|||_18,538_|



Page 22 



## **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**<br>**Designated funds**<br>Manses<br>Reserve<br>Covid-19<br>Gift day<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>Boys Brigade<br>Girls Brigade<br>**Total of funds**|**Balance at 1**<br>**January**<br>**2021**<br>**£**<br>**927,500**<br>**65,000**<br>**4,700**<br>**-**<br>**997,200**<br>**48,834**<br>**7,612**<br>**56,446**<br>**1,053,646**<br>**437,562**<br>**5,946**<br>**1,000**<br>**-**<br>**-**<br>**444,508**<br>**1,498,154**|**Income**<br>**£**<br>**-**<br>**-**<br>**-**<br>**61,208**<br>**61,208**<br>**287,389**<br>**-**<br>**287,389**<br>**348,597**<br>**-**<br>**21,737**<br>**-**<br>**2,550**<br>**1,749**<br>**26,036**<br>**374,633**|**Expenditure**<br>**£**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**(266,277)**<br>**-**<br>**(266,277)**<br>**(266,277)**<br>**-**<br>**(92,333)**<br>**-**<br>**(939)**<br>**(1,904)**<br>**(95,176)**<br>**(361,453)**|**Transfers**<br>**in/out**<br>**£**<br>**-**<br>**-**<br>**(4,700)**<br>**(15,220)**<br>**(19,920)**<br>**(54,419)**<br>**(5,416)**<br>**(59,835)**<br>**(79,755)**<br>**7,262**<br>**67,077**<br>**-**<br>**1,636**<br>**3,780**<br>**79,755**<br>**-**|**Balance at**<br>**31**<br>**December**<br>**2021**<br>**£**<br>**927,500**<br>**65,000**<br>**-**<br>**45,988**<br>**1,038,488**|
|---|---|---|---|---|---|
||||||**15,527**<br>**2,196**<br>**17,723**|
||||||**1,056,211**|
||||||**444,824**<br>**2,427**<br>**1,000**<br>**3,247**<br>**3,625**<br>**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**<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_<br>_1 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 24 



## **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<br>General funds<br>Restricted funds|**Balance at 1**<br>**January**<br>**2021**<br>**£**<br>**997,200**<br>**56,446**<br>**444,508**<br>**1,498,154**<br>_Balance at_<br>_1 January_<br>_2020_<br>_£_<br>_989,000_<br>_91,877_<br>_424,891_<br>_1,505,768_|**Income**<br>**£**<br>**61,208**<br>**287,389**<br>**26,036**<br>**374,633**<br>_Income_<br>_£_<br>_-_<br>_299,455_<br>_27,206_<br>_326,661_|**Expenditure**<br>**£**<br>**-**<br>**(266,277)**<br>**(95,176)**<br>**(361,453)**<br>_Expenditure_<br>_£_<br>_(300)_<br>_(235,456)_<br>_(98,519)_<br>_(334,275)_|**Transfers**<br>**in/out**<br>**£**<br>**(19,920)**<br>**(59,835)**<br>**79,755**<br>**-**<br>_Transfers_<br>_in/out_<br>_£_<br>_8,500_<br>_(99,430)_<br>_90,930_<br>_-_|**Balance at**<br>**31**<br>**December**<br>**2021**<br>**£**<br>**1,038,488**<br>**17,723**<br>**455,123**<br>**1,511,334**|
|---|---|---|---|---|---|
||||||_Balance at_<br>_31_<br>_December_<br>_2020_<br>_£_<br>_997,200_<br>_56,446_<br>_444,508_<br>_1,498,154_|
|**Summary of funds - prior year**||||||
|Designated funds<br>General funds<br>Restricted funds||||||



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

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

|**Unrestricted**<br>**funds**<br>**2021**<br>**£**<br>Tangible fixed assets<br>933,495<br>Current assets<br>133,678<br>Creditors due within one year<br>(10,962)<br>**Total**<br>1,056,211|**Restricted**<br>**funds**<br>**2021**<br>**£**<br>444,824<br>10,299<br>-<br>455,123|**Total**<br>**funds**<br>**2021**<br>**£**<br>**1,378,319**<br>**143,977**<br>**(10,962)**<br>**1,511,334**|
|---|---|---|



Page 25 



## **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<br>Current assets<br>Creditors due within one year<br>**Total**|_Unrestricted_<br>_funds_<br>_2020_<br>_£_<br>_936,188_<br>_133,296_<br>_(15,838)_<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_|
|---|---|---|---|



## **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