Downham Baptist Church
Report and Accounts Year ended 31 December 2021
1 Lamb's Passage, London EC1Y 8AB www.stewardship.org.uk
DOWNHAM BAPTIST CHURCH
LEGAL & ADMINISTRATIVE DETAILS
FOR THE YEAR ENDED 31 DECEMBER 2021
ADDRESS FOR CORRESPONDENCE 31 Oakshade Road Bromley BR1 5QB GOVERNING DOCUMENT Constitution dated 28 January 2018, as amended 6 June 2021. CHARITY REGISTRATION NUMBER 1177702 TRUSTEES RESPONSIBLE FOR Loveday Cole MANAGING THE CHARITY Jeff Bryan Travis Snode (resigned 28 June 2022) Ricardo Hipolito (appointed 27 February 2022) BANKERS Barclays Bank plc Leicester Leicestershire LE87 2BB INDEPENDENT EXAMINER Archie McDowall BA CA Stewardship 1 Lamb's Passage LONDON EC1Y 8AB
INDEX Page 1 Legal & Administrative Details Pages 2-4 Trustees' Report Page 5 Independent Examiner's Report Page 6 Receipts and Payments Account Page 7 Statement of Assets & Liabilities Pages 8-9 Notes to the Accounts
Page 1
DOWNHAM BAPTIST CHURCH
REPORT OF THE TRUSTEES
FOR THE YEAR ENDED 31 DECEMBER 2021
The Trustees have pleasure in submitting the Report and Accounts for the year ended 31 December 2021.
Objects of the charity
The objects of the charity, which is a church, are the advancement of the Christian faith in accordance with the Basis of Faith primarily but not exclusively within Downham, London and the surrounding neighbourhood; and such other charitable purposes as shall, in the opinion of the charity trustees, put into practice the Christian faith in accordance with the Basis of Faith provided that the advancement of such purposes must be undertaken in a manner that is consistent with the Ethical Statements as may be adopted and amended by the church from time to time in accordance with the provisions of the Church Bylaws.
Summary of the charity's main activities and achievements
To further the above objects and vision, the charity's main activities and achievements were providing a place of worship, advancing the Christian faith, educating people about the Christian faith, providing pastoral care and outreach, as well as supporting evangelical missionaries.
The church provides a place of worship at 60 Churchdown, Bromley, BR1 5PQ. Worship services are advertised to the general public through signage, leaflets, websites, social media and word of mouth.
The church advances the Christian faith by preaching the Gospel, through public worship services, small group and individual Bible studies, personal discipleship courses, and various outreach events and efforts in the community. Every week, the church also educates people about the Christian faith at Sunday services, at groups for children and young people, and in small group Bible studies.
The church provides pastoral care and outreach by teaching God’s Word appropriate to the needs of the members and attendees and equipping the members to be actively involved in pastoral care and outreach as a demonstration of their Christian faith.
The church also trains and supports missionaries to carry the gospel to other parts of the United Kingdom and overseas. Those trained as missionaries will then go out to other parts of the world with the gospel message. Financial support for missionaries is given by the church members to a missionary fund and then paid directly to the individual or the charity the individual works with.
In planning the activities the Trustees have applied the guidance on public benefit issued by the Charity Commission.
The church benefits the general public by providing worship services that are open to the general public, providing teaching about the Christian faith through a range of age-based small groups, providing information about the Christian faith through various outreach events and efforts and by providing training and mentoring for those who desire to serve as Christian workers.
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Summary of the charity's main activities and achievements (continued)
The worship services, small group Bible studies, and other events and clubs are open to anyone who wants to attend. Personal discipleship and further training and mentoring are more selective, giving priority to those who have become members, have attended faithfully, and who have the potential to go and teach and train others. This is always done with the long-term aim of trying to benefit people from all backgrounds. Such decisions are made in accordance with the procedures set out in the constitution, taking into account the principles set out in the Bible and the context in which those principles are applied today.
2021 continued to be challenging in light of the continued global coronavirus pandemic. Despite the challenges, the church experienced a number of growth in the following areas:
First, six people were added to the membership; including three who were baptised. Two of those who came into membership, in April, were a new Assistant Pastor and his wife. Their young family has been a real blessing to the church, providing leadership, teaching, ministry and outreach.
Second, as part of the church bringing on board an Assistant Pastor, the church was able to begin paying a pastoral stipend to the Assistant Pastor which is the first time that the church has been able to do this. This is due to the commitment of the church members and regular attenders.
Third, throughout 2021, the church maintained its ministry of advancing the Christian Faith through regular outreach, Bible studies, and worship services.
Fourth, the church continues to support two Evangelical Missionaries; one in Honduras, and another one in Northern Ireland. Also the church gave donations to a new church plant in Colchester.
Finally, a number of people were further equipped for ministry in the church including a Missionary Family being placed in the church for practical experience with the hopes of planting a church somewhere in the United Kingdom.
Overall, in spite of the challenges, the church continued to grow and remains optimistic about the future - as one famous missionary once said: “The future is as bright as the promises of God.”
Financial review
The Church continues to raise the funds which it needs to carry on its activities from within its own membership and congregation. The Church was able to give over £720 to world missions. The church was also able to support several members who have lost their loved ones in 2021.
Most of the ministry of our church is carried out by members and regular attenders who volunteer their time and skills with little to no impact on the church’s expenditure, but nevertheless greatly contribute to the achievement of the church’s objectives.
During the year income increased by £44,836 to £64,383, and expenditure increased by £39,690 to £54,930. As a result the cash held by the charity increased by £9,453, to £17,421, of which £16,689 is unrestricted and can be used for any charitable purpose. The increases from the previous year can broadly be accounted for by an increase in the size of the church, the weekly letting of the church hall to the British Red Cross and the recruitment of an Assistant Pastor.
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Reserves policy
The trustees have determined that the charity should aim to hold unrestricted cash of no less than £3,500 so that the charity could continue to operate should income and / or expenditure vary adversely. At the year end, the charity held unrestricted cash of £16,689, of which £3,500 is held in a designated Reserves Fund and the charity is complying with its reserves policy.
Responsibilities of trustees
Charity law requires us as Trustees to prepare financial statements for each accounting year which record the receipts and payments of the charity for the year.
We are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and enable us to ensure that the financial statements comply with the Charities Act 2011.
We also have a responsibility to safeguard the assets of the charity and to take reasonable steps to prevent fraud or any other irregularities.
Approval
This report was approved by the trustees and signed on their behalf by:
RICARDO HIPOLITO
_________ RICARDO HIPOLITO (TRUSTEE)
Date: 26 October 2022
Page 4
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF
DOWNHAM BAPTIST CHURCH
I report to the trustees on my examination of the accounts of Downham Baptist Church ('the charity') for the year ended 31 December 2021 on pages 6 to 9 following.
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 all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner’s statement
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
-
accounting records were not kept in accordance with section 130 of the 2011 Act; or
-
the accounts do not accord with the accounting records.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in order to enable a proper understanding of the accounts to be reached.
Archie McDowall
Archie McDowall BA CA
Stewardship 1 Lamb's Passage LONDON EC1Y 8AB
Date: 27 October 2022
Page 5
DOWNHAM BAPTIST CHURCH
RECEIPTS AND PAYMENTS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2021
| Unrestricted | Funds | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| General | Designated | Restricted | ||||||||
| Funds | Funds | Funds | 2021 | 2020 | ||||||
| Notes | £ | £ | £ | £ | £ | |||||
| Income receipts | ||||||||||
| Donations | 21,838 | - | 11,606 | 33,444 | 14,104 | |||||
| Gift aid receipts | 7,049 | - | 1,423 | 8,472 | 5,452 | |||||
| Income from events | 6,067 | - | - | 6,067 | - | |||||
| Income from letting of facilities | 16,400 | - | - | 16,400 | - | |||||
| Other | - | - | - | - | - | |||||
| 51,353 | - | 13,029 | 64,382 | 19,557 | ||||||
| Total receipts | 51,353 | - | 13,029 | 64,382 | 19,557 | |||||
| Payments | ||||||||||
| Payments in relation to activities undertaken directly |
charitable | 2 | 41,856 | - | 3,545 | 45,401 | 14,680 | |||
| Grants paid in relation to activities undertaken by others |
charitable | 3 | - | - | 9,529 | 9,529 | 560 | |||
| 41,856 | - | 13,074 | 54,930 | 15,240 | ||||||
| Total payments | 41,856 | - | 13,074 | 54,930 | 15,240 | |||||
| Net of receipts / (payments) before | 9,498 | - | (45) | 9,453 | 4,316 | |||||
| Transfers between funds | 4 | (11,333) | 11,333 | - | - | - | ||||
| Net movement in funds | (1,836) | 11,333 | (45) | 9,453 | 4,316 | |||||
| Cash funds as at | last year end | 4,019 | 3,172 | 777 | 7,968 | 3,652 | ||||
| Cash funds at this year end | A | 2,183 | 14,506 | 732 | 17,421 | 7,968 |
The notes on pages 8-9 form part of these accounts.
Page 6
DOWNHAM BAPTIST CHURCH
STATEMENT OF ASSETS AND LIABILITIES
FOR THE YEAR ENDED 31 DECEMBER 2021
| Notes A Cash funds Cash at bank with immediate access Petty cash B Other monetary assets Prepayments |
General Designated funds funds £ £ 2,183 14,506 - - 2,183 14,506 4,803 - 4,803 - Unrestricted Funds |
Restricted funds £ 732 - 732 - - |
2021 £ 17,421 - 17,421 4,803 4,803 |
2020 £ |
|---|---|---|---|---|
| 7,968 - |
||||
| 7,968 | ||||
| - | ||||
| - |
The accounts were approved by the trustees and signed on their behalf by:
RICARDO HIPOLITO
_____RICARDO HIPOLITO (TRUSTEE)
Date: 26 October 2022
The notes on pages 8-9 form part of these accounts.
Page 7
DOWNHAM BAPTIST CHURCH
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 DECEMBER 2021
1 Accounting policies
The accounts have been prepared on a receipts and payments basis and comprise a statement that shows the charity's receipts and payments, a statement that summarises the charity's assets and liabilities and related notes. The accountancy profession have determined that only accounts prepared in accordance with applicable accounting standards present a 'true and fair' view and, as these receipts and payments accounts have not (and cannot) be prepared in accordance with accounting standards, these accounts do not present (and are not intended to present) a 'true and fair' view of the charity's financial activities and state of affairs.
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. Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. Restricted funds are donations which are to be used in accordance with specific restrictions imposed by donors; they include donations received from appeals for specific activities or projects.
| 2 Payments in relation to charitable activities undertaken directly Rent & Utilities Services & Subscriptions Pastoral Stipend Hospitality Cleaning & Maintenance Supplies & Equipment Speaker Expenses Sundries Benevolence Hall Hire Costs Event Costs Outreach Costs 3 Grants paid in relation to charitable activities undertaken by others Grants for: Vision Baptist Mission for UK Mission Other small grants to organisations for UK mission Grants to individuals |
Unrestricted Fun General funds £ 6,000 1,745 19,800 662 722 1,234 873 4,246 945 178 5,451 - 41,856 - - - - |
ds Designated funds £ - - - - - - - - - - - - - - - - - |
Restricted Funds £ - - - - - - - - - - - 3,545 3,545 5,697 402 3,430 9,529 |
Total 2021 £ 6,000 1,745 19,800 662 722 1,234 873 4,246 945 178 5,451 3,545 45,401 5,697 402 3,430 9,529 |
Total 2020 £ |
|---|---|---|---|---|---|
| 6,000 1,744 - 151 780 548 1,049 487 - 469 3,101 351 |
|||||
| 14,680 | |||||
| - - 560 |
|||||
| 560 |
Page 8
DOWNHAM BAPTIST CHURCH
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 DECEMBER 2021
4 Movement of funds
| vement of funds | |||||
|---|---|---|---|---|---|
| General funds Designated funds Building Fund Reserves Fund Restricted funds Building Fund Missions Fund Colchester Mission Fund Total funds |
Opening balance £ 4,019 - 3,172 3,172 11 765 - 777 7,968 |
Receipts £ 51,353 - - - 70 884 12,075 13,029 64,382 |
Payments £ (41,856) - - - - (1,199) (11,875) (13,074) (54,930) |
Transfers £ (11,333) 11,006 328 11,333 - - - - - |
Closing balance £ 2,183 11,006 3,500 |
| 14,506 | |||||
| 81 450 200 |
|||||
| 732 | |||||
| 17,421 |
During the year to 31 December 2021, the trustees opted to transfer £11,006 from General funds to the designated Building Fund.
Building Fund
Funds designated for the purchase of a building for the church.
Reserves Fund
Funds held in reserve to cover any emergency expenses or unexpected shortfall in the church budget.
Missions Fund
Funds restricted for overseas missionaries and domestic church-planters.
Colchester Mission Fund
Funds restricted for a new church plant in Colchester.
5 Post-Year End Event
In preparing these accounts, it has been brought to the trustees' attention that there is a possible liability to HMRC with regard to the employment of Ricardo Hipolito as Assistant Pastor, from March 2021, and then as Pastor, from July 2022. There may also be a liability to make back-dated pension contributions on his behalf under auto-enrolment legislation. The charity is taking professional advice as to the necessary steps it must take to rectify the situation but is unable to quanity the potential liability as at the date of the signing of these accounts. The trustees understand that repayment of any liabilities will utilise a substantial portion of the charity's unrestricted cash.
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