**Draft Financial Statements at 15 October 2023 at 17:55:58**
**Charity Registration No. 1180106**
## **WORCESTER BAPTIST CHURCH CIO**
**ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 DECEMBER 2022**
**Draft Financial Statements at 15 October 2023 at 17:55:58 WORCESTER BAPTIST CHURCH CIO**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
|**Trustees**|Darren Smith|
|---|---|
||Fiona Forth|
||Hannah Celia|
||Christine Baker|
|**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 15 October 2023 at 17:55:58 WORCESTER BAPTIST CHURCH CIO**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees' report|1 - 5|
|Statement of trustees' responsibilities|6|
|Independent examiner's report|7|
|Statement of financial activities|8 - 9|
|Statement of financial position|10|
|Statement of cash flows|11|
|Notes to the financial statements|12 - 22|
**Draft Financial Statements at 15 October 2023 at 17:55:58 WORCESTER BAPTIST CHURCH CIO**
## **TRUSTEES' REPORT**
## _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
The trustees present their annual report and financial statements for the year ended 31 December 2022.
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)
On 30 November 2018, funds were received from the Avery-Overall Baptist Trust Fund, Charity Number 509056 on the cessation of its activities.
On 1 May 2021, the undertaking, liabilities, staff and assets of the unincorporated charity Worcester Baptist Church were transferred to Worcester Baptist CIO, a Charitable Incorporated Organisation.
## **Objectives and activities**
The principal purposes of the Church are:
- The advancement of the Christian faith according to the principles of the Baptist denomination.
- The Church may also advance education and carry out other charitable purposes in the United Kingdom and/or other parts of the world.
- Nothing in this constitution shall authorise an application of the property of the Church for purposes which are not charitable in accordance with section 7 of the Charities and Trustee Investment (Scotland) Act 2005 or section 2 of the Charities Act (Northern Ireland) 2008.
## **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.
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**Draft Financial Statements at 15 October 2023 at 17:55:58 WORCESTER BAPTIST CHURCH CIO**
## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **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:
- regular public worship, prayer, Bible study, preaching and teaching;
- baptism, as defined in the Baptist Union's Declaration of Principle;
- the Communion of the Lord's Supper which shall normally be observed at least once a month;
- evangelism and mission, locally, regionally, nationally and internationally;
- the teaching, encouragement, welcome and inclusion of young people;
- nurture and growth of Christian disciples;
- education and training for Christian disciples;
- giving and encouraging pastoral care;
- supporting and encouraging charitable social action in the United Kingdom and abroad;
- encouraging relationships with and supporting Baptists and other Christians
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**Draft Financial Statements at 15 October 2023 at 17:55:58 WORCESTER BAPTIST CHURCH CIO**
## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **Achievements and performance**
During the year, one highlight, was the church weekend away which took place in October up in the Shropshire countryside (Cloverley Hall to be precise). We were wonderfully led by Nigel Cameron and Julie Cameron-Hall with a focus on unity. Over 50 of us enjoyed the teaching but also the opportunity to get to know each other better, and of course, have fun at our ‘Worcester’s Got Talent’ – and it really has!
Our drop in café/lunch club, Oasis, went through a few changes during the year and we have now moved to a fortnightly model. More on that in the separate Oasis report.
Love the Arbo was the fifth running of the event where houses in the local community are encouraged to create and put up lighted window displays for 3 days in February. This year there was a record number of displays, topping 100 for the first time. The central hub was the church hall where over 100 people gathered for the launch by the mayor and once again a local music artist played a number of sets in the main church. This is a key event for further developing our relationship with the local community.
It has been great to see the youth and children’s work growing and during this past year Katie Davis’ hours were increased to enable her to take on the lead for the children’s work as well as that of the youth. Thanks should be paid to Deb Crookall for the way she has headed up the children’s work over many years, although she will still take the lead with Little Angels.
Katie has written a report on The Family Space (TFS) but just to say what a blessing this has been, providing space for children and their parents/carers to meet once a fortnight to do a range of activities and share a meal together.
Another particular highlight was the wonderful baptismal service we had when three of our young people demonstrated their love for Jesus by being baptised. It is always a special moment when anyone chooses to do that.
Two important activities which took place during this past year was a ‘Priorities Process’ to determine what the church felt were our key priorities for the next ‘season’ for us and a ‘conversation’ on our position with regard to same sex relationships.
The former showed that the church was keen on three main priorities, to be an inclusive church, to find ways to reach out with the gospel, and to be a loving fellowship. These are all areas which we will seek to progress in the coming year.
The result of the latter was an overwhelming vote/desire to be fully inclusive of those in same sex relationships so that they can be involved in all areas of church life in the same way as anyone else. Some folk felt it not possible to remain as part of the fellowship of WBC as a result. Whilst we are sad that they have left, we wish them well wherever they find themselves in the future.
In summary, it was an interesting, exciting, difficult, blessed year all rolled into one.
## **Financial review**
The net outgoing resources for the year is £199,100 (2021 outgoing £57,030) of which outgoings of £193,707 is in connection with unrestricted activities and £5,393 outgoing in relation to restricted activities.
Total reserves at the reporting date are £983,668 (2021 £1,182,768) of which £229,618 is restricted. Full details of the restricted funds can be found in the notes accompanying the financial statements. After extracting fixed assets this leaves £700,153 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.
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**Draft Financial Statements at 15 October 2023 at 17:55:58 WORCESTER BAPTIST CHURCH CIO**
## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
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.
## **Plans for future**
There is no doubt much time and effort went into the ‘conversation’ we had in the second part of the year, and it was right and proper to do that. It is likely there will be the need to have a further ‘conversation’ once the BU consultation on ministerial recognition rules is received by Baptist churches. However, moving forward we need to refocus on our core calling as a church, to find the lost and feed the found. It will be important to continue to build on the good relationships we have with many in the local community through various groups and the events we run.
We need to move forward on next steps following our same sex conversation and we will be running evening gatherings on different aspects of inclusivity which churches often don’t get right. Being an inclusive church is not only the right and Biblical thing to be but also opens up new missional opportunities.
After needing to take a break for various reasons with regard to our plans to move towards the silver award of Eco Church, we hope that during the next 12 months we can take steps to make the necessary changes to progress that award.
We will continue to move forward on plans for the refurbishment of the church and related projects. This is likely to be a long project and once plans are in place they will need to be submitted to the BU listing committee.
During this coming year our youth worker Katie will be taking maternity leave. She will be missed in her role but we wish her and Joel all the best for this exciting new season in their married life, and will look forward to her returning to her role when she is ready to do so.
It feels like the next 12 months needs to be a time of consolidation as we continue to discern God’s plans for us as a church, as we build foundations for what is to come. The priority of being a loving fellowship will be important in helping us to do that.
## **Structure, governance and management**
The Church is a charitable incorporated organisation, governed by a Constitution registered with the Charity Commission dated 27 September 2018.
The trustees who served during the year and up to the date of signature of the financial statements were: Darren Smith
Graham Baker (Resigned 23 April 2023) Timothy Prince (Resigned 1 June 2023) Fiona Forth Hannah Celia Christine Baker
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**Draft Financial Statements at 15 October 2023 at 17:55:58 WORCESTER BAPTIST CHURCH CIO**
## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
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' report was approved by the Board of Trustees.
..............................
## **Darren Smith**
Trustee Dated: .........................
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**Draft Financial Statements at 15 October 2023 at 17:55:58 WORCESTER BAPTIST CHURCH CIO**
## **STATEMENT OF TRUSTEES' RESPONSIBILITIES**
## _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
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:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
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.
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**Draft Financial Statements at 15 October 2023 at 17:55:58 WORCESTER BAPTIST CHURCH CIO**
## **INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF WORCESTER BAPTIST CHURCH CIO**
I report to the trustees on my examination of the financial statements of Worcester Baptist Church CIO (the Church) for the year ended 31 December 2022.
## **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:
- 1 accounting records were not kept in respect of the Church as required by section 130 of the 2011 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 financial statements to be reached.
Sarah Morley ACA
Granta Lodge 71 Graham Road Malvern Worcestershire WR14 2JS
Dated: .........................
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**Draft Financial Statements at 15 October 2023 at 17:55:58 WORCESTER BAPTIST CHURCH CIO**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT**
## _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
|**Current financial year**
**Unrestricted**
**Restricted**
**funds**
**funds**
**2022**
**2022**
**Notes**
**£**
**£**
**Income from:**
Donations and legacies
**3**
37,275
-
Charitable activities
**4**
80,535
-
Other trading activities
**5**
7,294
-
Investments
**6**
19,797
-
**Total income**
144,901
-
**Expenditure on:**
Charitable activities
**7**
257,789
5,393
Net gains/(losses) on investments
**12**
(80,819)
-
**Net movement in funds**
(193,707)
(5,393)
Fund balances at 1 January 2022
947,757
235,011
**Fund balances at 31 December 2022**
754,050
229,618|**Total**
**2022**
**£**
37,275
80,535
7,294
19,797
144,901
263,182
(80,819)
(199,100)
1,182,768
983,668|**Total**
**2021**
**£**
31,949
95,374
1,452
21,971
150,746
243,544
35,768
(57,030)
1,239,798
1,182,768|
|---|---|---|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
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**Draft Financial Statements at 15 October 2023 at 17:55:58 WORCESTER BAPTIST CHURCH CIO**
## **STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT**
## _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **Prior financial year**
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2021**
**2021**
**Notes**
**£**
**£**
**Income from:**
Donations and legacies
**3**
31,949
-
Charitable activities
**4**
95,374
-
Other trading activities
**5**
1,452
-
Investments
**6**
21,971
-
**Total income**
150,746
-
**Expenditure on:**
Charitable activities
**7**
238,151
5,393
Net gains/(losses) on investments
**12**
35,768
-
**Net movement in funds**
(51,637)
(5,393)
Fund balances at 1 January 2021
999,394
240,404
**Fund balances at 31 December 2021**
947,757
235,011|**Total**
**2021**
**£**
31,949
95,374
1,452
21,971
150,746
243,544
35,768
(57,030)
1,239,798
1,182,768|
|---|---|
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**Draft Financial Statements at 15 October 2023 at 17:55:58 WORCESTER BAPTIST CHURCH CIO**
## **STATEMENT OF FINANCIAL POSITION**
## _**AS AT 31 DECEMBER 2022**_
|**Notes**
**Fixed assets**
Property, plant and equipment
**14**
Investments
**15**
**Current assets**
Trade and other receivables
**16**
Cash at bank and in hand
**Current liabilities**
**17**
Net current assets
**Total assets less current liabilities**
**Income funds**
Restricted funds
**18**
Unrestricted funds|**2022**
**£**
**£**
252,400
655,466
907,866
2,976
78,643
81,619
(5,817)
75,802
983,668
229,618
754,050
983,668|**2021**
**£**
**£**
267,758
850,594
1,118,352
3,254
68,951
72,205
(7,789)
64,416
1,182,768
235,011
947,757
1,182,768|**2021**
**£**
**£**
267,758
850,594
1,118,352
3,254
68,951
72,205
(7,789)
64,416
1,182,768
235,011
947,757
1,182,768|
|---|---|---|---|
||||1,118,352
64,416|
||||1,182,768|
||||235,011
947,757|
||||1,182,768|
The accounts were approved by the Trustees on .........................
.............................. Darren Smith **Trustee**
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**Draft Financial Statements at 15 October 2023 at 17:55:58 WORCESTER BAPTIST CHURCH CIO**
## **STATEMENT OF CASH FLOWS** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
|**2022**
**2021**
**Notes**
**£**
**£**
**£**
**Cash flows from operating activities**
Cash absorbed by operations
**22**
(124,414)
**Investing activities**
Purchase of property, plant and equipment
-
(6,253)
Purchase of listed investments
(452,754)
(125,485)
Proceeds on disposal of listed investments
567,063
227,946
Interest received
19,797
21,971
**Net cash generated from investing**
**activities**
134,106
**Net cash used in financing activities**
-
**Net increase in cash and cash equivalents**
9,692
Cash and cash equivalents at beginning of year
68,951
**Cash and cash equivalents at end of year**
78,643|**£**
(95,470)
118,179
-
22,709
46,242
68,951|
|---|---|
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**Draft Financial Statements at 15 October 2023 at 17:55:58 WORCESTER BAPTIST CHURCH CIO**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **1 Accounting policies**
## **Charity information**
Worcester Baptist Church is a charitable incorporated organisation 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 amounts 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.
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**Draft Financial Statements at 15 October 2023 at 17:55:58 WORCESTER BAPTIST CHURCH CIO**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **1 Accounting policies**
**(Continued)**
## **1.5 Resources expended**
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 are allocated on the portion of the asset’s use.
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 the statement of financial activities.
## **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.
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**Draft Financial Statements at 15 October 2023 at 17:55:58 WORCESTER BAPTIST CHURCH CIO**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **1 Accounting policies**
## **(Continued)**
## **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.
## _**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 payments 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.
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**Draft Financial Statements at 15 October 2023 at 17:55:58 WORCESTER BAPTIST CHURCH CIO**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **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.
## **3 Donations and legacies**
||**Unrestricted **|**Unrestricted**|
|---|---|---|
||**funds**|**funds**|
||**2022**|**2021**|
||**£**|**£**|
|Donations and gifts|35,275|31,949|
|Legacies receivable|2,000|-|
||37,275|31,949|
## **4 Charitable activities**
|Offerings
Other income
Rental income|**2022**
**£**
56,030
6,268
18,237
80,535|**2021**
**£**
67,560
10,687
17,127|
|---|---|---|
|||95,374|
## **5 Other trading activities**
||**Unrestricted **|**Unrestricted**|
|---|---|---|
||**funds**|**funds**|
||**2022**|**2021**|
||**£**|**£**|
|Fundraising events|7,294|1,452|
- 15 -
**Draft Financial Statements at 15 October 2023 at 17:55:58 WORCESTER BAPTIST CHURCH CIO**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **6 Investments**
|||**Unrestricted **|**Unrestricted**|
|---|---|---|---|
|||**funds**|**funds**|
|||**2022**|**2021**|
|||**£**|**£**|
||Income from listed investments|19,778|21,971|
||Interest receivable|19|-|
|||19,797|21,971|
|**7**|**Charitable activities**|||
|Staff costs
Depreciation and impairment
Church premises upkeep
Missions
Ministry
Other expenses
Donations
Investment management fees
Grant funding of activities (see note 8)
Share of support costs (see note 9)
Share of governance costs (see note 9)
**Analysis by fund**
Unrestricted funds
Restricted funds
**For the year ended 31 December 2021**
Unrestricted funds
Restricted funds|**2022**
**£**
71,506
15,358
36,748
32,836
7,640
7,994
3,389
10,106
185,577
54,027
20,350
3,228
263,182
257,789
5,393
263,182|**2021**
**£**
64,702
16,296
30,186
27,268
4,320
7,912
6,166
11,263|
|---|---|---|
|||168,113
53,890
18,659
2,882|
|||243,544|
|||238,151
5,393|
|||243,544|
- 16 -
**Draft Financial Statements at 15 October 2023 at 17:55:58 WORCESTER BAPTIST CHURCH CIO**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **8 Grants payable**
|Grants to institutions:
Two Pennies
MAF Uk
St Richard's Hospice
M Rankin - Uganda project
Worcester Street pastors
Street Cafe
Maggs Day Centre
HEBA
BMS
Food Bank
St Pauls Hostel
Freeset
4 Front
Good Soil
Bridge councilling
Other|Church
Expenditure
**2022**
2021
**£**
£
2,000
-
5,000
7,000
50
-
15,000
16,000
2,000
-
-
265
-
5,000
-
5,000
18,577
5,000
5,550
5,000
-
5,000
4,250
5,000
-
225
-
400
1,500
-
100
-
54,027
53,890|
|---|---|
- 17 -
**Draft Financial Statements at 15 October 2023 at 17:55:58 WORCESTER BAPTIST CHURCH CIO**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **9 Support costs**
|**Support**
**costs**
**Governance**
**costs**
**£**
**£**
Staff costs
14,466
-
Computer
1,081
-
Advertising
35
-
Print and stationery
1,957
-
Subscriptions
1,320
-
Telephone
1,409
-
Sundry
82
-
Legal and professional
-
-
Independent exam and
accountancy
-
3,228
20,350
3,228
Analysed between
Charitable activities
20,350
3,228|**2022**Support costs Governance
costs
**£**
£
£
14,466
11,876
-
1,081
1,047
-
35
248
-
1,957
2,505
-
1,320
1,046
-
1,409
1,137
-
82
97
-
-
703
-
3,228
-
2,882
23,578
18,659
2,882
23,578
18,659
2,882|2021
£
11,876
1,047
248
2,505
1,046
1,137
97
703
2,882|
|---|---|---|
|||21,541|
|||21,541|
Governance costs includes payments to the independent examiners of £3,228 (2021 - £2,882) for accountancy fees.
## **10 Trustees**
During the year Darren Smith and Timothy Prince, trustees and also employees of the church were remunerated a total amount of £43,555 for their roles as Minister and Minister in training respectively.
- 18 -
**Draft Financial Statements at 15 October 2023 at 17:55:58 WORCESTER BAPTIST CHURCH CIO**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **11 Employees**
## **Number of employees**
The average monthly number of employees during the year was:
||**2022**|**2021**|
|---|---|---|
||**Number**|**Number**|
|Minister|3|3|
|Administration|1|1|
|Premises|1|1|
||5|5|
|**Employment costs**|**2022**|**2021**|
||**£**|**£**|
|Wages and salaries|78,483|70,516|
|Social security costs|92|-|
|Other pension costs|7,397|6,062|
||85,972|76,578|
There were no employees whose annual remuneration was £60,000 or more.
## **12 Net gains/(losses) on investments**
||**Unrestricted Unrestricted**|**Unrestricted Unrestricted**|
|---|---|---|
||**funds**|**funds**|
||**2022**|**2021**|
||**£**|**£**|
|Revaluation of investments|(29,612)|26,095|
|Gain/(loss) on sale of investments|(51,207)|9,673|
||(80,819)|35,768|
## **13 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 £7,397 (2021 - £6,062).
- 19 -
**Draft Financial Statements at 15 October 2023 at 17:55:58 WORCESTER BAPTIST CHURCH CIO**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
|**14**|**Property, plant and equipment**||||
|---|---|---|---|---|
|||**Freehold land**|**Fixtures and**|**Total**|
|||**and buildings**|**fittings**||
|||**£**|**£**|**£**|
||**Cost**||||
||At 1 January 2022|269,680|54,540|324,220|
||At 31 December 2022|269,680|54,540|324,220|
||**Depreciation and impairment**||||
||At 1 January 2022|30,806|25,656|56,462|
||Depreciation charged in the year|5,393|9,965|15,358|
||At 31 December 2022|36,199|35,621|71,820|
||**Carrying amount**||||
||At 31 December 2022|233,481|18,919|252,400|
||At 31 December 2021|238,874|28,884|267,758|
|**15**|**Fixed asset investments**||||
|||||**Listed**|
|||||**investments**|
|||||**£**|
||**Cost or valuation**||||
||At 1 January 2022|||850,594|
||Additions|||452,754|
||Valuation changes|||(80,819)|
||Disposals|||(567,063)|
||At 31 December 2022|||655,466|
||**Carrying amount**||||
||At 31 December 2022|||655,466|
||At 31 December 2021|||850,594|
|**16**|**Trade and other receivables**||||
||||**2022**|**2021**|
||**Amounts falling due within one year:**||**£**|**£**|
||Trade receivables||2,300|2,597|
||Prepayments and accrued income||676|657|
||||2,976|3,254|
- 20 -
**Draft Financial Statements at 15 October 2023 at 17:55:58 WORCESTER BAPTIST CHURCH CIO**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **17 Current liabilities**
|**Current liabilities**|||
|---|---|---|
|Other taxation and social security
Trade payables
Accruals and deferred income|**2022**
**£**
742
-
5,075
5,817|**2021**
**£**
776
1,846
5,167|
|||7,789|
## **18 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**
**1 January 2021**
**£**
Avery-Overall Baptist Trust Fund
211,228
New boiler donation
29,176
240,404|**Resources**
**expended**
**Balance at**
**1 January 2022**
**£**
**£**
(5,393)
205,835
-
29,176
(5,393)
235,011|**Resources**
**expended**
**Balance at**
**31 December**
**2022**
**£**
**£**
(4,616)
201,219
(777)
28,399
(5,393)
229,618|**Resources**
**expended**
**Balance at**
**31 December**
**2022**
**£**
**£**
(4,616)
201,219
(777)
28,399
(5,393)
229,618|
|---|---|---|---|
||||229,618|
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.
## **19 Analysis of net assets between funds**
|**Analysis of net assets between funds**||||
|---|---|---|---|
|**Unrestricted**
**Restricted**
**2022**
**2022**
**£**
**£**
Fund balances at 31
December 2022 are
represented by:
Property, plant and
equipment
53,897
198,503
Investments
655,466
-
Current assets/(liabilities)
44,687
31,115
754,050
229,618|**Total**
Unrestricted
**2022**
2021
**£**
£
252,400
64,639
655,466
850,594
75,802
32,524
983,668
947,757|Restricted
2021
£
203,119
-
31,892
235,011|Total
2021
£
267,758
850,594
64,416|
||||1,182,768|
## **20 Related party transactions**
There were no disclosable related party transactions during the year (2021 - none).
- 21 -
**Draft Financial Statements at 15 October 2023 at 17:55:58 WORCESTER BAPTIST CHURCH CIO**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **21 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
**22**
**Cash generated from operations**
**2022**
**£**
Deficit for the year
(199,100)
Adjustments for:
Investment income recognised in statement of financial activities
(19,797)
Loss/(gain) on disposal of investments
51,207
Fair value gains and losses on investments
29,612
Acturial gain on defined benefit pension scheme
-
Depreciation and impairment of property, plant and equipment
15,358
Movements in working capital:
Decrease/(increase) in trade and other receivables
278
(Decrease)/increase in trade and other payables
(1,972)
**Cash absorbed by operations**
(124,414)|**2021**
**£**
(54,330)
(21,971)
(9,673)
(26,095)
(2,700)
16,296
(235)
3,238
(95,470)|
|---|---|
- 22 -