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2020-12-31-accounts

Draft Financial Statements at 05 May 2021 at 07:44:02

Charity Registration No. 1180106

WORCESTER BAPTIST CHURCH

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

Draft Financial Statements at 05 May 2021 at 07:44:02 WORCESTER BAPTIST CHURCH

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Darren Smith
Chris Porter
Graham Baker
Timothy Prince (Appointed 1 September
2020)
Alun Williams
Fiona Forth
Charity number 1180106
Principal address Sansome Walk
Worcester
WR1 1LN
Independent examiner Kendall Wadley LLP
Granta Lodge
71 Graham Road
Malvern
Worcestershire
WR14 2JS
Investment advisors Charles Stanley & Co Limited
55 Calthorpe Road,
Edgbaston,
Birmingham
B15 1TH

Draft Financial Statements at 05 May 2021 at 07:44:02 WORCESTER BAPTIST CHURCH

CONTENTS

Page
Trustees' report 1 - 3
Statement of trustees' responsibilities 4
Independent examiner's report 5
Statement of financial activities 6 - 7
Statement of financial position 8
Statement of cash flows 9
Notes to the financial statements 10 - 21

Draft Financial Statements at 05 May 2021 at 07:44:02 WORCESTER BAPTIST CHURCH

TRUSTEES' REPORT

FOR THE YEAR ENDED 31 DECEMBER 2020

The trustees present their report and financial statements for the year ended 31 December 2020.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Church's constitution , the Charities Act 2011 and “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)” (as amended for accounting periods commencing from 1 January 2019)

Objectives and activities

The principal purposes of the Church are:

Beliefs

As a member of the Baptist Union the Church subscribes to the Baptist Union's Declaration of Principle:

"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.

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.'

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

Public benefit

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the Church should undertake and are satisfied that those described below provide public benefit.

Activities

In fulfilling the purpose the Church will engage in a range of activities either on its own or with others that will vary from time to time with activities being initiated, expanded or closed, as appropriate.

The activities may include but are not restricted to:

Draft Financial Statements at 05 May 2021 at 07:44:02 WORCESTER BAPTIST CHURCH

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

Achievements and performance

The key highlights during the year are:

We welcomed Dave and Frin as they visited to update us of their work with Freeset in the red light district of Kolkata and a visit from Kevin Crook of MAF as we continue to develop our link their work.

We embarked on a project to ‘ blessing others’ by using some of the reserves that we currently have, prior to a wider conversation. This allowed us to seek from those organisations we currently support details of any projects that they were wanting to progress and how they might be helped by a financial gift. We gave in excess of £40,000 to a number of projects locally and overseas.

A big highlight for the year was to visit Uganda to witness first hand many of the projects that the church support through the work of Malcolm and Tinah Rankin. It was great to meet those on the ground that help us in this work. The lively and passionate worship we experienced in many of the places and churches with went to was wonderful to behold.

The visit and the country has left a very positive impression and pleased that many in the church have got behind this work in prayer and through financial giving.

Last September ‘ Lunch Club Plus ’ was launched, based on Lunch Club but now meeting earlier in the day for tea and coffee, watching DVDs and chatting, on a fortnightly basis.

We had a wonderful weekend away at Shallowford House last September led by Sian Murray-Williams.

We had another (our second) wonderful and successful ‘Love the Arboretum’ event which took place in February run in association with the Arboretum Residents Association (ARA). Despite awful weather leading up to the event we had slightly more attend than the previous year, including the mayor or Worcester. The church and spire was again lit up and we hosted a treasure hunt and craft room in the main church building.

Plans for 2021 are already taking shape and we look forward to an even bigger event with more houses taking place.

Financial review

The net outgoing resources for the year is £45,519 (2019 incoming £126,058) of which outgoings of £40,126 is in connection with unrestricted activities and £5,393 outgoing in relation to restricted activities.

Total reserves at the reporting date are £1,239,798 (2019 £1,285,317) of which £240,404 is restricted. Full details of the restricted funds can be found in the notes accompanying the financial statements. After extracting fixed assets this leaves £929,329 available for unrestricted activities, this includes fixed investments however these are readily convertible.

It is the policy of the Church that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees considers that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the Church’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.

The trustees have assessed the major risks to which the Church is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

Draft Financial Statements at 05 May 2021 at 07:44:02 WORCESTER BAPTIST CHURCH

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

Plans for future

Due to the Covid 19 pandemic it is difficult to predict when church life will return to normal and now is a good time to ask what is ‘normal’. It is my sense that God is challenging us all to ask questions about how we currently ‘be’ church, so the next year could look a little different.

I spoke on the first Sunday in January about God wanting to do ‘a new thing’ and maybe post lockdown church will mean us needing to do exactly that, as we discover more about ‘being’ church and not just ‘attending’ church.

So, it is a little hard to look forward with any real certainty at present, although we definitely hope that later this year (restrictions permitting) we will run the Christianity Explored evangelistic course, inviting those we are in contact with to come and find out more about who Jesus is and why we believe what we do. There may be many in the local community beginning to ask questions of a spiritual nature and this course may help to answer some of those.

What is certain for this next year is that we need to continue to walk closely with Jesus , to discern his will for us, and to serve him with all our heart. And we need to be people of prayer as that should underpin everything we do as a church, as well as individuals. As ever, I encourage you to engage with the various opportunities to come together and pray.

Structure, governance and management

The Church is a charitable incorporated organisation.

The trustees who served during the year and up to the date of signature of the financial statements were: Darren Smith

Chris Porter Graham Baker Neil Carey Timothy Prince Alun Williams Fiona Forth

(Resigned 1 September 2020) (Appointed 1 September 2020)

The trustees are responsible for the management and administration of the Church's property and funds in accordance with its constitution. Day to day management of activities is delegated to Darren Smith the minister of the church. The remuneration of key management personnel is set by the board.

Upon appointment appropriate training and guidance is given as to the role and responsibilities of a trustee within the organisation.

Meetings are required to be held at every two months, at which the CIO and financial aspects of the organisation are considered and actions to be taken determined as necessary. This includes the setting of remuneration for those employed having due regard to legislative requirements and rates of remuneration paid by similar organisations.

Interests in transactions by virtue of related parties are declared at meetings and reported in the notes to the financial statements.

The trustees' r eport was approved by the Board of Trustees.

..............................

Darren Smith

Trustee Dated: .........................

Draft Financial Statements at 05 May 2021 at 07:44:02 WORCESTER BAPTIST CHURCH

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 DECEMBER 2020

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 and 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 Church and of the incoming resources and application of resources of the Church for that year.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the Church 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 Church and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Draft Financial Statements at 05 May 2021 at 07:44:02 WORCESTER BAPTIST CHURCH

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF WORCESTER BAPTIST CHURCH

I report to the trustees on my examination of the financial statements of Worcester Baptist Church (the Church) for the year ended 31 December 2020.

Responsibilities and basis of report

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

I report in respect of my examination of the Church’s financial statements carried out under section 145 of the 2011 Act . 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 matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

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 financial statements to be reached.

Sarah Morley ACA

Granta Lodge 71 Graham Road Malvern Worcestershire WR14 2JS

Dated: .........................

Draft Financial Statements at 05 May 2021 at 07:44:02 WORCESTER BAPTIST CHURCH

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2020

Current financial year
Unrestricted
Restricted
funds
funds
2020
2020
Notes
£
£
Income from:
Donations and legacies
3
19,858
-
Charitable activities
4
76,016
-
Other trading activities
5
925
-
Investments
6
20,590
-
Material other income
7
-
-
Total income
117,389
-
Expenditure on:
Charitable activities
8
199,410
5,393
Net gains/(losses) on investments
13
39,195
-
Net (outgoing)/incoming resources
(42,826)
(5,393)
Other recognised gains and losses
Actuarial gain on defined benefit pension schemes
2,700
-
Net movement in funds
(40,126)
(5,393)
Fund balances at 1 January 2020
1,039,520
245,797
Fund balances at 31 December 2020
999,394
240,404		 Total
2020
£
19,858
76,016
925
20,590
-
117,389
204,803
39,195
(48,219)
2,700
(45,519)
1,285,317
1,239,798		 Total
2019
£
27,582
81,377
9,038
26,090
39,893
183,980
179,993
103,871
107,858
18,200
126,058
1,159,259
1,285,317

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

Draft Financial Statements at 05 May 2021 at 07:44:02 WORCESTER BAPTIST CHURCH

STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2020

Prior financial year

Unrestricted
Restricted
funds
funds
2019
2019
Notes
£
£
Income from:
Donations and legacies
3
27,582
-
Charitable activities
4
81,377
-
Other trading activities
5
9,038
-
Investments
6
26,090
-
Material other income
7
39,893
-
Total income
183,980
-
Expenditure on:
Charitable activities
8
175,377
4,616
Net gains/(losses) on investments
13
103,871
-
Net (outgoing)/incoming resources
112,474
(4,616)
Other recognised gains and losses
Actuarial gain on defined benefit pension schemes
18,200
-
Net movement in funds
130,674
(4,616)
Fund balances at 1 January 2019
908,846
250,413
Fund balances at 31 December 2019
1,039,520
245,797		 Total
2019
£
27,582
81,377
9,038
26,090
39,893
183,980
179,993
103,871
107,858
18,200
126,058
1,159,259
1,285,317

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

Draft Financial Statements at 05 May 2021 at 07:44:02 WORCESTER BAPTIST CHURCH

STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2020

Notes
Fixed assets
Property, plant and equipment
15
Investments
16
Current assets
Trade and other receivables
17
Investments
18
Cash at bank and in hand
Current liabilities
19
Net current assets
Total assets less current liabilities
Income funds
Restricted funds
20
Unrestricted funds
The accounts were approved by the Trustees on ............		 2020
£
£
277,800
917,288
1,195,088
3,019
-
46,242
49,261
(4,551)
44,710
1,239,798
240,404
999,394
1,239,798
.............		 2019
£
£
289,816
922,211
1,212,027
4,255
8,296
104,685
117,236
(43,946)
73,290
1,285,317
245,797
1,039,520
1,285,317

.............................. Darren Smith Trustee

Draft Financial Statements at 05 May 2021 at 07:44:02 WORCESTER BAPTIST CHURCH

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2020

Notes
Cash flows from operating activities
Cash absorbed by operations
25
Investing activities
Purchase of property, plant and equipment
Purchase of listed investments
Proceeds on disposal of listed investments
Interest received
Net cash generated from investing
activities
Net cash used in financing activities
Net (decrease)/increase in cash and cash
equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2020
2019
£
£
£
(128,412)
(3,035)
(34,880)
(51,876)
(159,341)
104,290
234,607
20,590
26,090
69,969
-
(58,443)
104,685
46,242		 £
(10,101)
66,476
-
56,375
48,310
104,685

Draft Financial Statements at 05 May 2021 at 07:44:02 WORCESTER BAPTIST CHURCH

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

1 Accounting policies

Charity information

Worcester Baptist Church is a private unincorporated charity and its office is Sansome Walk, Worcester, WR1 1LN.

1.1 Accounting convention

The financial statements have been prepared in accordance with the Church's constitution, the Charities Act 2011 and “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)” (as amended for accounting periods commencing from 1 January 2019). The Church is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling , which is the functional currency of the Church. Monetary a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the Church has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.4 Incoming resources

Income is recognised when the Church is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the Church has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the Church has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

Draft Financial Statements at 05 May 2021 at 07:44:02 WORCESTER BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

(Continued)

1.5 Resources expended

Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be recovered.

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services of its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Creditors represent the amount the charity anticipates it will pay to settle a debt or a provision for goods and services it has received not yet invoiced, measured at settlement amount.

1.6 Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings 2% of cost Fixtures and fittings 20% of cost

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.

1.7 Non-current investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year . Transaction costs are expensed as incurred.

1.8 Impairment of non-current assets

At each reporting end date, the Church reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) .

1.9 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.10 Financial instruments

The Church has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Church's balance sheet when the Church becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Draft Financial Statements at 05 May 2021 at 07:44:02 WORCESTER BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

(Continued)

Basic financial assets

Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including trade and other payables and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Church’s contractual obligations expire or are discharged or cancelled.

1.11 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the Church is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2 Critical accounting estimates and judgements

In the application of the Church’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Draft Financial Statements at 05 May 2021 at 07:44:02 WORCESTER BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

3 Donations and legacies

Unrestricted Unrestricted
funds funds
2020 2019
£ £
Donations and gifts 19,858 27,582
4 Charitable activities
2020 2019
£ £
Offerings 61,489 54,962
Other income 172 5,637
Rental income 14,355 20,778
76,016 81,377
5 Other trading activities
Unrestricted Unrestricted
funds funds
2020 2019
£ £
Fundraising events 925 9,038
6 Investments
Unrestricted Unrestricted
funds funds
2020 2019
£ £
Income from listed investments 20,584 26,079
Interest receivable 6 11
20,590 26,090

Draft Financial Statements at 05 May 2021 at 07:44:02 WORCESTER BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

7 Material other income

During the year the charity received donated assets amounting to £Nil (2019 - £39,893) in the form of a listed investment protfolio from the Avery Overall Baptist Trust on the cessation of its activities. The donation did not carry any restrictions.

8 Charitable activities

Staff costs
Depreciation and impairment
Church premises upkeep
Missions
Ministry
Other expenses
Donations
Investment management fees
Grant funding of activities (see note 9)
Share of support costs (see note 10)
Share of governance costs (see note 10)
Analysis by fund
Unrestricted funds
Restricted funds
For the year ended 31 December 2019
Unrestricted funds
Restricted funds		 2020
£
53,404
15,051
21,195
27,800
3,264
5,297
11,941
10,679
148,631
34,596
18,276
3,300
204,803
199,410
5,393
204,803		 2019
£
47,302
7,467
37,088
20,994
6,953
14,008
14,180
10,745
158,737
-
18,556
2,700
179,993
175,377
4,616
179,993

Draft Financial Statements at 05 May 2021 at 07:44:02 WORCESTER BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

9 Grants payable

Grants to institutions:
Two Pennies
MAF UK
PNG Project
M Rankin - Uganda project
D & C Masters - Coronavirus help
Support costs
Support
costs
Governance
costs
£
£
Staff costs
7,877
-
Computer
1,646
-
Advertising
404
-
Print and stationery
2,436
-
Subscriptions
1,532
-
Telephone
1,358
-
Sundry
404
-
Legal and professional
2,619
-
Independent exam and
accountancy
-
3,300
18,276
3,300
Analysed between
Charitable activities
18,276
3,300		 2020
£
7,000
3,100
1,200
18,500
4,796
34,596
2020
Support
costs
Governance
costs
£
£
£
7,877
7,098
-
1,646
1,702
-
404
352
-
2,436
1,927
-
1,532
1,539
-
1,358
1,204
-
404
360
-
2,619
4,374
-
3,300
-
2,700
21,576
18,556
2,700
21,576
18,556
2,700		 2019
£
-
-
-
-
-
-
2019
£
7,098
1,702
352
1,927
1,539
1,204
360
4,374
2,700
21,256
21,256

10 Support costs

Governance costs includes payments to the independent examiners of £ 3,300 (2019 - £2,700 ) for accountancy fees.

11 Trustees

During the year Darren Smith and Timothy Prince, trustees and also employees of the church were remunerated a total amount of £32,223 for their roles as Minister and Minister in training respectively.

Draft Financial Statements at 05 May 2021 at 07:44:02 WORCESTER BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

12 Employees

Number of employees

The average monthly number of employees during the year was:

2020 2019
Number Number
Minister 2 1
Administration 1 2
Premises 1 1
4 4
Employment costs 2020 2019
£ £
Wages and salaries 55,214 47,622
Other pension costs 6,067 6,778
61,281 54,400
There were no employees whose annual remuneration was £60,000 or more.
13 Net gains/(losses) on investments
Unrestricted Unrestricted
funds funds
2020 2019
£ £
Revaluation of investments 48,914 97,954
Gain/(loss) on sale of investments (9,719)
5,917
39,195 103,871
14 Financial instruments 2020 2019
£ £
Carrying amount of financial assets
Instruments measured at fair value through profit or loss 917,288 926,582

Draft Financial Statements at 05 May 2021 at 07:44:02 WORCESTER BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

15
Property, plant and equipment
Buildings
Fixtures and
fittings
£
£
Cost
At 1 January 2020
269,680
45,251
Additions
-
3,035
At 31 December 2020
269,680
48,286
Depreciation and impairment
At 1 January 2020
20,020
5,095
Depreciation charged in the year
5,393
9,658
At 31 December 2020
25,413
14,753
Carrying amount
At 31 December 2020
244,267
33,533
At 31 December 2019
249,660
40,156
16
Fixed asset investments
Listed
investments
Other
investments
£
Cost or valuation
At 1 January 2020
918,286
3,925
Additions
51,876
-
Valuation changes
36,686
-
Disposals
(89,560)
(3,925)
At 31 December 2020
917,288
-
Carrying amount
At 31 December 2020
917,288
-
At 31 December 2019
918,286
3,925
2020
Other investments comprise:
£
Investments
-		 Total
£
314,931
3,035
317,966
25,115
15,051
40,166
277,800
289,816
Total
£
922,211
51,876
36,686
(93,485)
917,288
917,288
922,211
2019
£
3,925

Draft Financial Statements at 05 May 2021 at 07:44:02 WORCESTER BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

17
Trade and other receivables
Amounts falling due within one year:
Trade receivables
Prepayments and accrued income
18
Current asset investments
Unlisted investments
19
Current liabilities
Trade payables
Accruals and deferred income		 2020
£
1,950
1,069
3,019
2020
£
-
2020
£
936
3,615
4,551		 2019
£
3,664
591
4,255
2019
£
8,296
2019
£
8,244
35,702
43,946

20 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Balance at Resources Balance at Resources Balance at
1 January 2019 expended
1		 January 2020 expended 31 December
2020
£ £ £ £ £
Avery-Overall Baptist Trust Fund 221,237 (4,616)
216,621		 (4,616)
212,005
New boiler donation 29,176 - 29,176 (777)
28,399
250,413 (4,616)
245,797		 (5,393)
240,404

Avery-Overall Baptist Trust fund - funds received in connection to the Hall refurbishment.

New boiler - funds were received from the Avery-Overall Baptist Trust fund for the purposes of a new boiler for the church.

Draft Financial Statements at 05 May 2021 at 07:44:02 WORCESTER BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

21 Retirement benefit schemes

Defined contribution schemes

The Church operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the Church in an independently administered fund.

The charge to profit or loss in respect of defined contribution schemes was £6,067 (2019 - £6,778).

Defined benefit schemes

The Church was 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 Minister (s) are eligible to join the Scheme.

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 longterm incapacity. This income protection policy has been insured by the Baptist Union of Great Britain with Aviva. 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.

Valuation

A formal valuation of the Defined Benefit (DB) Plan was performed at 31 December 2016 by a professionally qualified Actuary using the Projected Unit Method. The market value of the DB Plan assets at the valuation date was £219 million.

The valuation of the DB Plan revealed a deficit of assets compared with the value of liabilities of £93 million (equivalent to a past service funding level of 70%). As a result of the valuation, in addition to the contributions to the DC Plan set out above, it was agreed that the standard rate of deficiency contributions from churches and other employers involved in the DB Plan will remain at previously agreed levels, increasing each year in line with increases in the Minimum Pensionable Income. The deficiency contributions are broadly based on 12% of Pensionable Income / Minimum Pensionable Income, reflecting each employer's contributions in March 2015. Some employers that were involved in the DB Plan for a short period pay lower contributions.

In addition, the Baptist Union of Great Britain is expected to make a number of one-off contributions totalling £33.5m by 31 December 2023, including a lump sum of £33m in 2018. The Recovery Plan envisages deficiency contributions continuing until 31 December 2028.

The Church had a cessation event under Section 75 of the Pensions Act 1995. This made the Church liable for the proportion of the overall deficit (assessed by reference to the cost of securing benefits by the purchase of annuities) applicable to its previous Ministers who were members of the Scheme, and this was settled during this financial year.

Draft Financial Statements at 05 May 2021 at 07:44:02 WORCESTER BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

21 Retirement benefit schemes

(Continued)

Funding policy

The key financial assumptions underlying the valuation were as follows:

%pa
RPI price inflation assumption
3.50
CPI price inflation assumption
2.75
Minimum Pensionable Income increases (CPI plus 1.0%pa)
3.50
Assumed investment returns
- Pre-retirement
3.50
- Post retirement
2.25
Deferred pension increases
- Pre April 2009
3.50
- Post April 2009
2.50
Pension increases
- Main Scheme pension Pre April 2006
2.70
- Main Scheme pension Post April 2006
2.00
Amounts taken to other comprehensive income:
Past service costs not yet recognised
The amounts included in the statement of financial position arising from the
Church's obligations in respect of defined benefit plans are as follows:
Present value of defined benefit obligations
Total liability recognised		 2020
£
-
2020
£
-
-		 2019
£
30,900
2019
£
30,900
30,900

Draft Financial Statements at 05 May 2021 at 07:44:02 WORCESTER BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

22
Analysis of net assets between funds
Unrestricted
Restricted
2020
2020
£
£
Fund balances at 31
December 2020 are
represented by:
Property, plant and
equipment
70,065
207,735
Investments
917,288
-
Current assets/
(liabilities)
12,041
32,669
999,394
240,404		 TotalUnrestricted
2020
2019
£
£
277,800
40,156
917,288
922,211
44,710
77,153
1,239,798
1,039,520		 Restricted
2019
£
249,660
-
(3,863)
245,797		 Total
2019
£
289,816
922,211
73,290
1,285,317

23 Related party transactions

There were no disclosable related party transactions during the year (2019 - none).

24 Non-monetary assets held for Church's own use

The church is the beneficial owner of the following assets which are not included within the balance sheet, the legal title to which is held by the Church's custodian trustee (The Baptist Union Corporation Ltd). These assets are shown at their insured value:

Church premises at Sansome walk to include Hall and Bungalow
10,202,516
Manse at 2 Amery Close
185,000
The Church also owns equipment, fixtures and fittings
75,100
25
Cash generated from operations
2020
£
(Deficit)/surpus for the year
(45,519)
Adjustments for:
Investment income recognised in statement of financial activities
(20,590)
Loss/(gain) on disposal of investments
9,719
Fair value gains and losses on investments
(48,914)
Acturial gain on defined benefit pension scheme
(2,700)
Depreciation and impairment of property, plant and equipment
15,051
Defined benefit pension scheme contribution
(28,200)
Movements in working capital:
Decrease/(increase) in trade and other receivables
1,236
(Decrease)/increase in trade and other payables
(8,495)
Cash absorbed by operations
(128,412)		 2019
£
58,758
(26,090)
(5,917)
(97,954)
49,100
7,467
-
(3,681)
8,216
(10,101)