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2022-03-11-accounts

CHARITY REGISTRATION NUMBER: 1179894

Canterbury Baptist Church CIO Unaudited Financial Statements 5 April 2022

BURGESS HODGSON LLP

Chartered accountants Camburgh House 27 New Dover Road Canterbury Kent CT1 3DN

Canterbury Baptist Church CIO

Financial Statements

Year ended 5 April 2022

Page
Trustees' annual report 1
Independent examiner's report to the trustees 6
Statement of financial activities 7
Statement of financial position 8
Statement of cash flows 9
Notes to the financial statements 10
The following pages do not form part of the financial statements
Detailed statement of financial activities 22
Notes to the detailed statement of financial activities 23

Canterbury Baptist Church CIO

Trustees' Annual Report

Year ended 5 April 2022

The trustees present their report and the unaudited financial statements of the charity for the year ended 5 April 2022.

Reference and administrative details

Registered charity name Canterbury Baptist Church CIO Charity registration number 1179894 Principal office Canterbury Baptist Church St. Georges Place Canterbury CT1 1UT United Kingdom The trustees Mr M I Usher Mr M R Elms Mr K J Martin Ms D M Mccauley Rev A L Fitzgerald Ms R Taylor Mr J M Coode Mr PR Enever Ms B Strause-Kalmere Ms M Anderson Mr J Reece Independent examiner Thomas Saltmer Camburgh House 27 New Dover Road Canterbury Kent CT1 3DN

1

Canterbury Baptist Church CIO

Trustees' Annual Report (continued)

Year ended 5 April 2022

Structure, governance and management

The Trust is a registered charity, number 1179894, and is constituted under the constitution dated 29 April 2018. The Trust is a Baptist church, affiliated to the Baptist Union of Great Britain (BUGB) and the South Eastern Baptist association.

Nearly all of the funding of the church is derived from the voluntary contributions of members and others who attend church activities. Other sources of income include the hire of the premises to outside bodies, certain grants made to the church for specific activities, and the claiming of Gift Aid for charitable giving.

The constitution of the church is derived from the Approved Governing Document for BUGB churches dated 20th March 2008. Under this constitution, the trustees comprise the minister or ministers (if any), together with elders, the church secretary and church treasurer. Ministers, having been appointed by a vote of church members at a special church members' meeting, are ex officio trustees, and are remunerated by the church. No other trustee is remunerated; elders, the church secretary and church treasurer are elected by church members at an ordinary church members' meeting from among the membership, and serve a three-year term of office, after which they are available for re-election. There is a maximum of 12 and a minimum number of three trustees specified by the constitution, but in practice in recent years the number of trustees at any one time has varied between six and eleven.

Trustees' meetings are typically monthly 'ministry' meetings. A wide range of issues are discussed, including the strategy and vision of the church, the running of church activities, the maintenance of the church premises, the appointment of staff and financial matters. Important decisions are referred to church members' meetings, held at least four times per year. Members' meetings take decisions on such matters as church membership, the appointment of of ministers and other trustees, and the approval of the church budget.

2

Canterbury Baptist Church CIO

Trustees' Annual Report (continued)

Year ended 5 April 2022

Objectives and activities

Canterbury Baptist Church has a vision summarised by the main aim: 'To worship God, to grow in Him and to take the life changing message of Jesus Christ to all with the goal that they become His loyal followers.'

The outworking of this vision is based on six core values, taken from the example for church in the New Testament church at Antioch with the following objectives:

  1. To be shaped by God's Word and Spirit to be distinctively Christian.

  2. To have a clear commitment to Bible teaching, prophecy and prayer offering authentic spirituality and expression of worship.

  3. To train and send individuals for Christian life, ministries and other strategic mission.

  4. To have a truly generous and gracious attitude towards the needs of others.

  5. To anticipate the fullness of God's kingdom with ethnic diversity, worshipping together as one gathered community.

  6. To spread the gospel wherever God has placed us to encourage and see growth.

As part of the church's objectives, a vision has been established to use the church buildings as a community hub and base for social action and community work within the city of Canterbury. Therefore, the church regularly provides free and subsidised use of its building to local charities and organisations carrying out work with local people in the community. Whilst there are cost implications of this (including fuel, wear and tear, loss of potential letting income etc), this is recognised as a key part of the church's vision and values.

3

Canterbury Baptist Church CIO

Trustees' Annual Report (continued)

Year ended 5 April 2022

Achievements and performance

Pandemic

Impact on the church

During the pandemic, church life was significantly affected as the building was closed and no meetings could take place. Also, a number of our congregation went on furlough, as well as most of our church staff. This significantly impacted our income as well, so we had to resort to a 'famine' budget and all expenses were paired down to a minimum.

Hub

The pandemic hit the lettings hard. The best way to show this is that before the pandemic we were looking to get close to £60,000 for the financial year 19/20, but for the financial year 20/21, only made £5,000 from letting. We ensured all that was needed to be done was done, but that at the same time, people still felt as welcome as ever. By God's grace, these will recover as people return back to normal and letting continue to increase.

Response of the church

Online meetings

Before the UK went into lockdown, the former minister and the technical lead met to discuss keeping church going while it couldn't meet in person. An initial basic set up was put together so there was no break in services. As lockdown continued the equipment was improved with a better camera and audio link. The church was also able to keep in touch during the services using the YouTube online chat.

In a similar way, the Housegroups moved online ensure contact was maintained throughout this period. This was a challenging time for all, as quite a few people were not familiar with the technology and had to be brought up to speed quickly, without any one to one assistance.

Rachel

Training as a minister is always a challenge, but combining that with a pandemic makes things all the more difficult. During 2020 - 2021, our minister in training has led and preached at services while continuing her studies remotely. She kept in touch with members of the congregation, and got up to speed with the digital technologies that were necessary to keep the community together. Once volunteers were allowed back in-person to facilitate services, our minister in training always had time to to listen to them, offering a pastoral ear. Her preaching is continually improving, and she's gaining in confidence each week. A true asset to our church. It has been encouraging to see her grow spiritually during this time, clearly preaching as God leads her.

Aylesham

Our relationship with Aylesham only re-started in Sep 2020 when I started as an MiT in both churches. I worked in Aylesham (and still do) every Thursday with Laura, focusing on prayer and evangelism. Between Sep 2020 and April 2021, Laura and I ran a joint Alpha course online. I preached bi-monthly in Aylesham (on zoom) and we ran a joint CBC / Aylesham prayer meeting on zoom alternate Tuesday evenings.

There has been more joined up working since April 2021 (3 x outdoor services last summer and most recently Laura preaching at CBC).

4

Canterbury Baptist Church CIO

Trustees' Annual Report (continued)

Year ended 5 April 2022

Community fridge, food parcels

From April 2020 our Community Hub Cafe had to close under government guidelines. So in order to continue to support the community we ran a community fridge scheme from the premises. People in need could continue to come and collect a food parcel from the front door of the church once a week and we ran approximately 30 deliveries of food parcels to people's houses every week. We had a team of volunteers to receive food deliveries, pack, distribute and deliver them in the Canterbury and Herne Bay area. The food was supplied by FareShare Kent who distribute surplus food from supermarkets to charities. The cost of this was covered by a grant obtained by KCC to help those in need during the pandemic.

Financial review

The net value of the assets and liabilities of Canterbury Baptist Church have been recognised on the Balance Sheet. The value of net assets as at 5 April 2021 amounts to £1,614,620.

During the year the the church made a profit of £45,726. A further adjustment was made to revaluate the listed investments of resulting in additional expenditure of £1,074. Without these adjustments to the church made profits of £46,800.

A loan of £480,000 from the Baptist Union in support of the church's large refurbishment project completed in 2014 is being repaid by the church in monthly instalments over a period of ten years, and funds are specifically given for this purpose by members of the congregation. There are two years of repayments remaining on this loan.

The charity converted to a new Charitable Incorporated Organisation on 6 April 2019, and the old charity ceased. All assets and liabilities were transferred from the old charity, with registered charity number 1127789.

27-03-2023 The trustees' annual report was approved on .............................. and signed on behalf of the board of trustees by:

Mr J Reece Trustee

5

Canterbury Baptist Church CIO

Independent Examiner's Report to the Trustees of Canterbury Baptist Church CIO

Year ended 5 April 2022

I report to the trustees on my examination of the financial statements of Canterbury Baptist Church CIO ('the charity') for the year ended 5 April 2022.

Responsibilities and basis of report

As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (‘the Act’).

I report in respect of my examination of the charity's financial statements 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 Act.

Independent examiner's statement

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

  1. accounting records were not kept in respect of the charity as required by section 130 of the Act; or

  2. the financial statements do not accord with those records; or

  3. the financial statements 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.

Thomas Saltmer Independent Examiner

Camburgh House 27 New Dover Road Canterbury Kent CT1 3DN

6

Canterbury Baptist Church CIO

Statement of Financial Activities

Year ended 5 April 2022

2022 2022 2021
Unrestricted
funds Total funds Total funds
Note £ £ £
Income and endowments
Donations and legacies 4 174,129 174,129 216,557
Investment income 5 37,201 37,201 5,353
  
Total income 211,330 211,330 221,910
  
Expenditure
Expenditure on charitable activities 6,7 164,550 164,550 164,927
  
Total expenditure 164,550 164,550 164,927
  
Net (losses)/gains on investments 8 1,054 1,054 (6,059)
  
Net income and net movement in funds 45,726 45,726 63,042
  
Reconciliation of funds
Total funds brought forward 1,614,620 1,614,620 1,551,578
  
Total funds carried forward 1,660,346 1,660,346 1,614,620
  

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

The notes on pages 10 to 20 form part of these financial statements.

7

Canterbury Baptist Church CIO

Statement of Financial Position

5 April 2022

5 April 2022
2022 2021
Note £ £
Fixed assets
Tangible fixed assets 12 1,724,477 1,748,794
Investments 13 24,214 25,268
 
1,748,691 1,774,062
Current assets
Debtors 14 2,614 1,711
Cash at bank and in hand 72,650 60,335
 
75,264 62,046
Creditors: amounts falling due within one year 16 62,537 58,224
 
Net current assets 12,727 3,822
 
Total assets less current liabilities 1,761,418 1,777,884
Creditors: amounts falling due after more than one year 17 27,953 83,664
Provisions 18 73,019 79,600
 
Net assets 1,660,446 1,614,620
 
Funds of the charity
Unrestricted funds 1,660,346 1,614,620
 
Total charity funds 20 1,660,346
		 1,614,620


These financial statements were approved by the board of trustees and authorised for issue on ........................, and are signed on behalf of the board by:

Mr J Reece Trustee

The notes on pages 10 to 20 form part of these financial statements.

8

Canterbury Baptist Church CIO

Statement of Cash Flows

Year ended 5 April 2022

Year ended 5 April 2022
2022 2021
Note £ £
Cash flows from operating activities
Net income 45,726 63,042
Adjustments for:
Depreciation of tangible fixed assets 24,317 24,317
Government grant income – (2,500)
Net (losses)/gains on investments 1,054 (6,059)
Dividends, interest and rents from investments (37,201) (5,353)
Interest payable and similar charges 3,843 5,523
Accrued income – (2,000)
Changes in:
Trade and other debtors (903) 2,801
Trade and other creditors 1,005 (1,897)
Provisions and employee benefits (6,581) (18,200)
 
Cash generated from operations 31,260 59,674
Interest paid (3,843) –
 
Net cash from operating activities 27,417 59,674
 
Cash flows from investing activities
Dividends, interest and rents from investments 37,201 5,353
Proceeds from sale of other investments (1,054) –
 
Net cash from investing activities 36,147 5,353
 
Cash flows from financing activities
Proceeds from borrowings (53,828) –
Repayments of borrowings – (31,845)
Government grant income – 2,500
 
Net cash used in financing activities (53,828) (29,345)
 
Net increase in cash and cash equivalents 9,736 35,682
Cash and cash equivalents at beginning of year 60,335 24,653
 
Cash and cash equivalents at end of year 15 70,071
		 60,335


The notes on pages 10 to 20 form part of these financial statements.

9

Canterbury Baptist Church CIO

Notes to the Financial Statements

Year ended 5 April 2022

1. General information

The charity is a public benefit entity and a registered charity in England and Wales and is unincorporated. The address of the principal office is Canterbury Baptist Church, St Georges Place, Canterbury, CT1 1UT, United Kingdom.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the 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) (Charities SORP (FRS 102)) and the Charities Act 2011.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Going concern

There are no material uncertainties about the charity's ability to continue.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Fund accounting

Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes.

Designated funds are unrestricted funds earmarked by the trustees for particular future project or commitment.

Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal, and fall into one of two sub-classes: restricted income funds or endowment funds.

10

Canterbury Baptist Church CIO

Notes to the Financial Statements (continued)

Year ended 5 April 2022

3. Accounting policies (continued)

Incoming resources

All incoming resources are included in the statement of financial activities when entitlement has passed to the charity; it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:

Resources expended

Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:

All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

11

Canterbury Baptist Church CIO

Notes to the Financial Statements (continued)

Year ended 5 April 2022

3. Accounting policies (continued)

Tangible assets (continued)

An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other recognised gains and losses, unless it reverses a charge for impairment that has previously been recognised as expenditure within the statement of financial activities. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other recognised gains and losses, except to which it offsets any previous revaluation gain, in which case the loss is shown within other recognised gains and losses on the statement of financial activities.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Freehold property - 75 years straight line Fixtures and fittings - 5 years straight line

Investments

Unlisted equity investments are initially recorded at cost, and subsequently measured at fair value. If fair value cannot be reliably measured, assets are measured at cost less impairment.

Listed investments are measured at fair value with changes in fair value being recognised in income or expenditure.

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cashgenerating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.

For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the charity are assigned to those units.

Government grants

Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the charity will comply with the conditions attaching to them and the grants will be received.

12

Canterbury Baptist Church CIO

Notes to the Financial Statements (continued)

Year ended 5 April 2022

3. Accounting policies (continued)

Government grants (continued)

Where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense.

Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in income or expenditure unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in the statement of financial activities in the period it arises, and is allocated to the appropriate expenditure heading.

Financial instruments

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into.

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.

Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. If an arrangement constitutes a finance transaction it is measured at present value.

4. Donations and legacies

Unrestricted Total Funds Unrestricted Total Funds
Funds 2022 Funds 2021
£ £ £ £
Donations
Tithes and Offerings 143,654 143,654 149,298 149,298
Other donations legacies and similar
incoming resources 30,475 30,475 64,759 64,759
Grants
Government grant income – – 2,500 2,500
   
174,129 174,129 216,557 216,557
   

13

Canterbury Baptist Church CIO

Notes to the Financial Statements (continued)

Year ended 5 April 2022

5. Investment income

Unrestricted Total Funds Unrestricted Total Funds
Funds 2022 Funds 2021
£ £ £ £
Income from investment properties 36,837 36,837 4,996 4,996
Income from listed investments 364 364 357 357
   
37,201 37,201 5,353 5,353
   
6. Expenditure on charitable activities by fund type
Unrestricted Total Funds Unrestricted Total Funds
Funds 2022 Funds 2021
£ £ £ £
Main activities 136,390 136,390 135,087 135,087
Support costs 28,160 28,160 29,840 29,840
   
164,550 164,550 164,927 164,927
   
7. Expenditure on charitable activities by activity type
Activities
undertaken Total funds Total fund
directly Support costs 2022 2021
£ £ £ £
Main activities 136,390 – 136,390 135,087
Governance costs – 28,160 28,160 29,840
   
136,390 28,160 164,550 164,927
   
8. Net (losses)/gains on investments
Unrestricted Total Funds Unrestricted Total Funds
Funds 2022 Funds 2021
£ £ £ £
Gains/(losses) on listed investments (1,054) (1,054) 6,059 6,059
   
9. Net income
Net income is stated after charging/(crediting):
2022 2021
£ £
Depreciation of tangible fixed assets 24,317 24,317
 
10. Staff costs
The total staff costs and employee benefits for the reporting period are analysed as follows:
2022 2021
£ £
Wages and salaries 69,543 87,666
Other employee benefits (6,581) (18,200)
 
62,962 69,466
 

14

Canterbury Baptist Church CIO

Notes to the Financial Statements (continued)

Year ended 5 April 2022

10. Staff costs (continued)

The average head count of employees during the year was 8 (2021: 8).

No employee received employee benefits of more than £60,000 during the year (2021: Nil).

11. Trustee remuneration and expenses

Expenses paid to trustees in the year totalled £7. These expenses were reimbursing the minister for travel, stationery, entertaining and other sundry expenses undertaken on behalf of the church. The church also pays for some of the minister's living expenses within the Manse, including the telephone, alarm, utility and council tax bills and small repairs. These totalled £4,083.

12. Tangible fixed assets

Freehold Fixtures and
property fittings Total
£ £ £
Cost
At 6 April 2021 and 5 April 2022 1,795,812 4,326 1,800,138
  
Depreciation
At 6 April 2021 47,888 3,456 51,344
Charge for the year 23,944 373 24,317
  
At 5 April 2022 71,832 3,829 75,661
  
Carrying amount
At 5 April 2022 1,723,980 497 1,724,477
  
At 5 April 2021 1,747,924 870 1,748,794
  
13. Investments
Listed
investments
£
Cost or valuation
At 6 April 2021 25,268
Additions –
Other movements (1,054)

At 5 April 2022 24,214

Impairment
At 6 April 2021 and 5 April 2022
Carrying amount
At 5 April 2022 24,214

At 5 April 2021 25,268


All investments shown above are held at valuation.

15

Canterbury Baptist Church CIO

Notes to the Financial Statements (continued)

Year ended 5 April 2022

13. Investments (continued)

Financial assets held at fair value

All investments shown above are revalued to market value as at the balance sheet date

14. Debtors

2022 2021
£ £
Trade debtors 2,497 1,594
Prepayments and accrued income 117 117
 
2,614 1,711
 
15. Cash and cash equivalents
Cash and cash equivalents comprise the following:
2022 2021
£ £
Cash at bank and in hand 72,650 60,335
Bank overdrafts (1,425) –
 
71,225 60,335
 
16. Creditors: amounts falling due within one year
2022 2021
£ £
Bank loans and overdrafts 56,635 53,327
Trade creditors 2,902 1,897
Accruals and deferred income 3,000 3,000
 
62,537 58,224
 
17. Creditors: amounts falling due after more than one year
2022 2021
£ £
Bank loans and overdrafts 27,953 83,664
 
18. Provisions
Pensions
and similar
obligations
£
At 6 April 2021 79,600
Additions (6,581)

At 5 April 2022 73,019


16

Canterbury Baptist Church CIO

Notes to the Financial Statements (continued)

Year ended 5 April 2022

19. Government grants

The amounts recognised in the financial statements for government grants are as follows:

2022 2021
£ £
Recognised in income from donations and legacies:
Government grants income –
		 2,500


20. Analysis of charitable funds

Unrestricted funds

Unrestricted funds
At Gains and At
6 April 2021 Income Expenditure losses 5 April 2022
£ £ £ £ £
General funds 1,614,620 211,330 (164,550) (1,054) 1,660,346
    
At Gains and At
6 April 2020 Income Expenditure losses 5 April 2021
£ £ £ £ £
General funds 1,551,578
		 221,910
		 (164,927)
		 6,059
		 1,614,620


17

Canterbury Baptist Church CIO

Notes to the Financial Statements (continued)

Year ended 5 April 2022

21. Defined benefit plans

The Church is an employer participating in a pension scheme known as the Baptist Pension Scheme (“the Scheme”). The Scheme is a separate legal entity which is administered by the Pension Trustee (Baptist Pension Trust Limited).

The Ministers and some members of the church staff are eligible to join the Scheme, which is not contracted out of the State Second Pension.

From January 2012, pension provision is being made through the Defined Contribution (DC) Plan within the Scheme. In general, members pay 8% of their Pensionable Income and employers pay 6% of members’ Pensionable Income into individual pension accounts, which are operated and managed on behalf of the Pension Trustee by Legal and General Life Assurance Society Limited. In addition, the employer pays a further 4% of Pensionable Income (or 3% if the employer is in the segregated DC section) to cover Death in Service Benefits, administration costs, and an associated insurance policy which provides income protection for Scheme members in the event that they are unable to work due to long-term incapacity. This income protection policy has been insured by the Baptist Union of Great Britain with Unum Limited. Members of the Basic Section pay reduced contributions of 5% of Pensionable Income, and their employers also pay a total of 5%.

Benefits in respect of service prior to 1 January 2012 are provided through the Defined Benefit (DB) Plan within the Scheme. The main benefits for pre-2012 service were a defined benefit pension of one eightieth of Final Minimum Pensionable Income for each year of Pensionable Service, together with additional pension in respect of premiums paid on Pensionable Income in excess of Minimum Pensionable Income. The Scheme, previously known as the Baptist Ministers’ Pension Fund, started in 1925, but was closed to future accrual of defined benefits on 31 December 2011.

The 2016 Valuation

The period since the 2013 Valuation has been challenging for all Defined Benefit pension schemes, with the extended period of very low interest rates leading to considerable pressure on scheme deficits. Consequently, the deficit as at 31st December 2016 is £93m, an increase of £9m on the £84m at the previous valuation.

The adjustments to the scheme benefits agreed under the Family Solution have also been implemented starting from the beginning of 2019. These changes are as follows:

• Change from RPI to CPI for the inflation index used to calculate increases to pensions in payment.

• an increase to that part of any pension in payment which was earned on service before 6th April 2006, of up to 1% in addition to CPI for the increase this January and the next 2 years, provided that CPI is less than RPI, and subject to the overall annual cap of 5% on increases contained within the scheme rules.

• An increase to the cap on annual increases for that part of any pension in payment which was earned on service on or after 6th April 2006, from 2.5% to 5%. (This mirrors the cap on increases to pre-6th April 2006 pensions.)

• The manse allowance (which has been frozen for a number of years) will increase in line with CPI inflation, benefitting active scheme members. For 2019 this will be £6,144 up from £6,000.

18

Canterbury Baptist Church CIO

Notes to the Financial Statements (continued)

Year ended 5 April 2022

Defined benefit plans (continued)

The key financial assumptions underlying the valuation were as follows:

Type of assumption % pa
RPI price inflation assumption 3.60
CPI price inflation assumption 2.85
Minimum Pensionable Income increases (CPI plus 1.0%) 3.85
Assumed investments returns
- Pre-retirement 5.10
- Post-retirement 3.95
Deferred pension increases
- Pre April 2009 3.60
- Post April 2009 2.50
Pension increases
- Main Scheme pension Pre April 2006 3.40
- Main Scheme pension Post April 2006 2.30

As there is a large number of contributing employers participating in the BPS and the BUSPS, the Union does not have sufficient information to identify its share of the underlying assets and liabilities of the schemes. Accordingly, due to the nature of the scheme, the profit and loss charge for the period represents the employer contributions payable. The total pension cost for the church is £4,292. The liability payable included within the balance sheet as at 5 April 2021 was £69,600.

19

Canterbury Baptist Church CIO

Notes to the Financial Statements (continued)

Year ended 5 April 2022

22. Analysis of changes in net debt

At 6 Apr 2021 Cash flows At 5 Apr 2022
£ £ £
Cash at bank and in hand 60,335 12,315 72,650
Bank overdrafts – (1,425) (1,425)
Debt due within one year (53,327) (1,883) (55,210)
Debt due after one year (83,664) 55,711 (27,953)
  
(76,656) 64,718 (11,938)
  

20

Canterbury Baptist Church CIO

Management Information

Year ended 5 April 2022

The following pages do not form part of the financial statements.

21

Canterbury Baptist Church CIO

Detailed Statement of Financial Activities

Year ended 5 April 2022

Year ended 5 April 2022
2022 2021
£ £
Income and endowments
Donations and legacies
Tithes and Offerings 143,654 149,298
Other donations legacies and similar incoming resources 30,475 64,759
Government grant income – 2,500
 
174,129 216,557
 
Investment income
Income from investment properties 36,837 4,996
Income from listed investments 364 357
 
37,201 5,353
 
 
Total income 211,330 221,910
 
Expenditure
Expenditure on charitable activities
Wages and salaries 69,543 87,666
Other post-retirement benefits (6,581) (18,200)
Light and heat 13,808 15,362
Repairs and maintenance 14,123 9,764
Insurance 7,509 5,837
Depreciation 24,317 24,317
Other interest payable and similar charges 3,843 5,523
Bank Charges 406 157
Community Hub Project 2,872 2,733
Donations 620 –
Entertaining 560 109
Sundry 4,389 3,025
Travel 674 7
Administration 12,907 14,209
Subscription and Fees 3,235 2,574
Overseas mission 3,892 3,781
Home mission 1,836 3,038
Children, youth and students 861 1,612
Evangelism 223 171
Stationery and publicity 5,513 3,242
 
164,550 164,927
 
 
Total expenditure 164,550 164,927
 
Net (losses)/gains on investments
Gains/(losses) on listed investments 1,054 (6,059)
 
 
Net income 45,726 63,042
 

22

Canterbury Baptist Church CIO

Notes to the Detailed Statement of Financial Activities

Year ended 5 April 2022

2022 2021
£ £
Expenditure on charitable activities
Main activities
Activities undertaken directly
Wages and salaries 69,543 87,666
Defined benefit plan expense (6,581) (18,200)
Light & Heat 13,808 15,362
Repairs & Renovation 14,123 9,764
Insurance/cleaning 7,509 5,837
Bank Charges 406 157
Community Hub Project 2,872 2,733
Donations 620 –
Entertaining 560 109
Sundry 4,389 3,025
Travel 674 7
Administration 12,907 14,209
Subscription and Fees 3,235 2,574
Overseas mission 3,892 3,781
Home mission 1,836 3,038
Children, youth and students 861 1,612
Evangelism 223 171
Stationery and publicity 5,513 3,242
 
136,390 135,087
 
Governance costs
Governance costs - depreciation 24,317 24,317
Governance costs - other finance costs 3,843 5,523
 
28,160 29,840
 
 
Expenditure on charitable activities 164,550
		 164,927


23