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2021-12-31-accounts

Registered Charity no. 1181773

Skipton Baptist Church

Trustees' Annual Report and Accounts Year Ended 31st December 2021

Wyatt & Co

Chartered accountants 125 Main Street, Garforth Leeds LS25 1AF

Skipton Baptist Church

Year Ended 31st December 2021

Contents Page

Page
Legal and Administrative Information 1
Trustees' Annual Report 3
Independent Examiners Report 11
Statement of Financial Activities 12
Statement of Financial Position 13
Statement of Cash Flows 14
Notes to the Financial Statements 15

Skipton Baptist Church

Year Ended 31st December 2021

Legal and Administrative Information

Reference

The Charity is called “Skipton Baptist Church” and is registered with the Charity Commission for England and Wales as an Charitable Incorporated Organisation (CIO) incorporated on the 28th January 2019 (1181773). Skipton Baptist Church is located on the corner of Otley Street and Rectory Lane, Skipton. The postal address is Otley Street, Skipton, North Yorkshire, BD23 1ET.

Registered Charity Number 1181773 Registered Office Skipton Baptist Church Otley Street Skipton North Yorkshire BD23 1ET United Kingdom Date of incorporation 28th January 2019

Date of incorporation

The Trustees

The trustees who have served during the year until the date this report was approved are:

Rev Lisa Holmes (Lead Minister) Rev P Burns (Associate Minister) Mr M Smith (Youth Minister) Mrs C Heskin (Children's Minister) Mr M Dewhirst (Lay Pastor) Mrs J Nixon (Church Secretary) Mr S Hudson (Deacon) Mrs C Tate (Minister in Training) Mrs R Watts (Deacon) Mrs Uriana Boye (Deacon) Mr A Cobbald (Deacon) Mrs E Petersen (Deacon) Mr D Green (Church Treasurer) Mr B Harris (Deacon) Mr M Leigh (Deacon)

Resigned September 2021 Lead Minister from September 2021

Independent Examiner:

Nigel Wyatt BSC FCA Wyatt & Co Chartered Accountants 125 Main Street Garforth Leeds LS25 1AF

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Skipton Baptist Church

Year Ended 31st December 2021

Legal and Administrative Information

Legal Advisors: Anthony Collins Solicitors LLP 134 Edmund Street Birmingham B3 2ES Bankers: Virgin Money, 73 North Street, Keighley, BD21 3SD. CAF Bank Ltd, 25 Kings Hill Av, Kings Hill, West Malling, Kent, ME19 4JQ HSBC, 61 High Street, Skipton, BD23 1DW Barclays Bank, 49 High St, Skipton BD23 1DT Skipton Building Society, 56 High Street, Skipton, BD23 1DS

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Skipton Baptist Church

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Trustees’ Annual Report

Trustees' responsibilities statement

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).

Structure, Governance and Management

The church is a Charitable Incorporated Organisation CIO, with Trustees elected by its members, and its governance is set out in its constitution.

Election to the diaconate (the trustees) is normally for a three-year period, made by church members at an Annual Church Meeting or occasionally in between if vacancies arise, at ordinary church meetings. All church members are encouraged to attend those meetings. All regular worshippers at the church are encouraged to become formal members.

Normally, the trustees meet monthly (most months of the year) for formal meetings. Where necessary, decisions may be taken between meetings following verbal or email discussions. However, 2021 was an exceptional year where, following government guidelines because of the Covid-19 pandemic, the church building remained closed at the beginning of the year. The trustees met on Zoom until July when the building was partially reopened and socially distanced meeting in person began following their normal schedule.

Organisationally, the church operates in a multi-faceted manner through a series of groups which are:

Trustee training begins prior to election where the candidate is provided with a document detailing the duties and responsibilities of a trustee of the church and the church checks their suitability as a trustee. This is followed by a discussion between the candidate and one or more existing trustees to clarify issues and answer questions. Following election, the trustees are updated with changes to charity law or other legislation which specifically influences the church. In this, guidance is taken from the Charity Commission, the Baptist Union Corporation, HMRC, etc.

The pay and remuneration of the charity’s paid staff is set during the church budget process, in the Autumn of each year. Trustees who are not employed by the charity or not related to employees form a pay review group to set employees’ salaries for the following calendar year. A written procedure is used which categorises staff into three pay grades according to their duties and responsibilities. The first stage of the process is to review the procedure itself and adopt it, with any necessary changes for the following pay review. The procedural review considers aspects such as:

Staff are considered individually, and their pay levels set. Staff are notified in writing of the outcome of their pay review. Appeals are considered based on information not available to the pay review group when salaries were set.

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Trustees’ Annual Report

The church is affiliated to the Baptist Union of Great Britain, the Yorkshire Baptist Association, and the Evangelical Alliance. It also cooperates with other local churches informally and formally through “Churches Together in Skipton”. All the above organisations may influence, but do not direct, the decisions of the church trustees.

In June the lead minister tendered her resignation to take an appointment in Scotland. The associate minister was appointed as lead minister in September.

Public Benefit Disclosure

Details of activities undertaken to further the charity’s purposes for the public benefit are given in ‘Objectives and Activities’ and ‘Achievements and Performance’ below.

The Trustees have read and continue to take into account Charity Commission guidance relating to Public Benefit.

The activities of the church to further the charity’s purpose were severely disrupted in 2021 because of the Covid-19 pandemic. The church building was partially reopened in July but this did not allow church services to take place there. This disruption affected all activities. Some were suspended and others continued but with a much-modified format.

Objectives and Activities Objectives

The principal objectives of the church are the advancement of the Christian faith according to the principles of the Baptist denomination and to encourage and support the members and regular church attenders in their Christian lives and in their voluntary work inside and outside the church. The Church may also advance education and carry out other charitable purposes in the United Kingdom and/or other parts of the world.

Main Activities

The main activities of the Trustees’ are to give overall oversight to the many aspects of church life, including regular public worship, prayer; Bible study; preaching and teaching; baptism; the Communion of the Lord’s Supper; 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 and community service; giving and encouraging pastoral care; supporting and encouraging charitable social action in the United Kingdom and abroad; and encouraging relationships with and supporting Baptists and other Christians.

The Trustees also oversee the maintenance and development of the buildings, finance, hospitality and social events, administration and the growth and support of the members of the congregation. Individual trustees may have a specialised area of responsibility in addition to their collective oversight.

Strategies to Achieve the Above Objectives

The main strategies to achieve current objectives are:

Success in the above strategies is indicated by the Trustees’ collective perception of the growth in numbers of those attending public devotion and reports from the leaders of groups within the church.

During the early part of 2021, a limited amount of work took place on the refurbishment of the building next door to the church building, called ‘The House’ which is owned by the church. The trustees continued to raise funds for this refurbishment throughout the year and in October a fully funded financial package was agreed by church members for the refurbishment to begin in December. The funding package included church funds, loans from the Yorkshire Baptist association and the Baptist Union

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Trustees’ Annual Report

Corporation and the pledge of a grant from the Joseph Rank Trust. The project is scheduled to be completed in the summer of 2022 and the building opened for use in the autumn of 2022. This facility will double the available floor area of the church and allow reordering of the whole property to accommodate increased attendance. The use of ‘The House’ will be aimed at, but not limited to, community engagement activities.

Grant-making

The church does not make material grants to other Charities. It does donate small gifts to individuals and charities engaged in Christian service in the UK and overseas.

Volunteers

The church benefits greatly from the voluntary contributions of time and money by its formal members and regular attenders, and in the case of its social work by members of other churches and the general public. Most areas of the church activity include contributions from volunteers and some key aspects of administration and outreach are staffed entirely by volunteers. To all of them, the Trustees express their thanks.

Social Investment

The church does not make financial social investments per se but is investing time and effort in the local area through its general outreach activities, notably the Skipton foodbank, which is run by Skipton Baptist Church, CAP (Christians Against Poverty) projects, lunch club, a Community Wellbeing Café, Messy Hands, street mission through the #doyouknowHim? initiative and affiliation with the Kintsugi Hope organisation. The aim of Kintsugi Hope is to provide a safe, supportive space in which to explore how to maintain positive mental and emotional wellbeing. All of these initiatives involve both staff and volunteers. Some room bookings are heavily discounted providing a social benefit.

Achievements and Performance

Meet God, Meet Friends, Make a Difference

The church’s principal aim is the advancement of religion, through the provision of church buildings and worship services open to all, the provision of infant dedication, wedding and funeral ceremonies and contributing to the spiritual and moral education of children and young people. It also contributes towards a better society by promoting friendship and shared values. It encourages its members to carry out, as a practical expression of their religious beliefs, other activities of value to the community, whether sponsored by the church or not, and in particular the church-run activities for the relief of hunger and freedom from debt already mentioned. All of these may be summed up in the church’s motto “Meet God, make friends, make a difference”.

Meet God

Prior to the Covid-19 pandemic the church would provide a programme of two regular Sunday services, being an early morning service of a more traditional and reflective nature and a mid-morning family service of a livelier nature that caters for children and young people. At the second service the church building would usually be full capacity. After the first part of the service, the children and young people’s provision would take place where they participate in exploring their faith through discussion, Bible study, craft and many other activities. Prayer ministry is always available after the morning service for adults.

Other areas of the devotional life of the church would normally be fifteen small groups for adults who meet mid-week and a group of young people who meet every Sunday night for “Ignite” where they study the Bible and have the opportunity to study those deeper questions about life and seek what God might be saying. The church normally runs a ‘Prospects’ service on Sunday afternoon for people with learning difficulties where they can worship, explore their faith and receive Christian teaching.

At the start of the year, all of these activities ceased in their normal format because of the church building closure and had not recommenced up to the end of the reporting period, the 31[st] December. During the year, church services took place every Sunday by YouTube format followed by break-out Zoom meetings which were both very well attended. YCF videos were incorporated into the services.

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Similarly, YouTube broadcasts were prepared for children and young people and phone contact maintained wherever possible. Mid-week Bible studies by Zoom were broadcast for adults. Church members were extensively involved in preparing and presenting the YouTube services. Pastoral support groups were set up where, in the absence of meeting together individuals undertook to maintain regular phone or Zoom contact with every normal church attender. All members of the church were regularly contacted in this way throughout lockdown. Where possible and following government guidelines, one-to-one meetings with individuals or families were arranged.

There have been two new initiatives during 2021. Morning prayer and compline have been introduced using the pattern of the Northumbria Community. These have been shared online during the pandemic and will continue to be offered as a spiritual discipline in the future. Big Boys Bible time has started on a Monday afternoon as an initiative to encourage the growth of discipleship. It has been a great delight to see a number of people from different church traditions coming together to share their own unique discipleship journey.

Meet Friends

Normally, young people meet at “Youth Café” on Friday afternoons. This is an opportunity for young people to meet in a safe place to hang out, play games and relax after a week at school. In response to covid-19 we created Bible Study groups online for both children and young people. These have now since moved to in person groups, meeting once a week. Very young children are catered for with “Messy Hands” parent/toddler groups meeting three times a week, and which were often over-subscribed.

During the week, all parts of the church building would be highly utilised for the benefit of the local community. Thirteen interest groups regularly used the church facilities during mornings, afternoons and evenings for a wide variety of community activities. The building was also used for private functions and local elections. Because of the building closure these activities could not take place. Some church members were able to meet in very small groups for walking exercise, following strict government guidelines on lockdown and social distancing which changed from time-to-time.

Make a Difference

Normally, the church is involved with six major community engagement projects for the benefit of Skipton town and district. These six projects are respected and supported by other churches in the area and by various statutory and social bodies who increasingly have referred clients to these projects at the church. Because of church building closure it was necessary for some of these activities to be suspended although others were able to continue in a modified form. Also, a lunch club meets on Wednesdays (now monthly instead of weekly) to provide a cooked lunch and good company for up to 40 elderly members of the community.

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Trustees’ Annual Report

restrictions were lifted the foodbank returned to a mixture of delivery and collection of food parcels as before the pandemic.

Following the severe disruption of the previous one and a half years, a steering group of three trustees and the foodbank manager was set up in the autumn of 2021. This group is considering operational refinements and strategic direction of the foodbank from lessons learnt. The foodbank is now working much more closely with a number of smaller food pantries which are set up around Craven. Funding of the foodbank is from local churches, schools, voluntary organisations, grant making organisations, businesses and the general public.

Wellbeing Café which is well attended by members of the Skipton community. As well as partnering with other churches, the café is based on collaborative working with a funded

art/craft service provider (Pioneer Projects) who also provide advice on mental health issues. The café is also a meeting place for those involved with other church ministries such as CAP Debt Centre, CAP Job Club, Foodbank and other community support agencies, which facilitates an integrated approach to providing these services. Because of church buildings closures and social distancing requirement during the first half of the year, it was not possible to run this activity in its normal format and so opening was mainly out of doors. A foodbank collection service was maintained to keep in touch with regular clients. As pandemic

restrictions eased the Wellbeing Café was able to open in September and has now grown back to around 40-50 attendees each week. The wellbeing Café has been key for many people reconnecting after the pandemic, reducing isolation and loneliness and helping to improve people’s wellbeing within a supportive Christian environment. Post pandemic, the Café experienced a fall in the number of helpers from the church which made it difficult to operate fully.

Fundraising

A pledge of £40,000 was received from the Joseph Rank trust towards the refurbishment of the ‘House’.

Financial Review

Position at Year-end

A Statement of Financial Position is attached to this report. The CIO ended the year with tangible fixed assets of £1,038,414 and current assets of £572,078. Creditors falling due within one year are £36,389 and after more than one year are £220,842 including defined benefit pension plan liability. The net assets are £1,389,650.

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Trustees’ Annual Report

Principal Use of Funds

Payments are dominated by Ministers and staff salaries, upkeep of the building, and the cost of running the various activities of the church. No staff were furloughed during 2021 and all continued to be fully active in the church and fully paid by the church. In addition to that, the charity has continued to pay interest and capital repayments of external loans used to purchase the neighbouring property called “The House” in line with the 10-year plan.

Principal Sources of Funding

The church’s income comes predominantly from donations and the consequent gift aid. There was no income from Sunday morning church collections because of church building closure. The church does not appeal to the general public to fund its core activities, but has welcomed funds from local individuals, churches and organisations to help support the foodbank and the CAP centre.

Investments

The church does not hold investments but does hold an interest-bearing Skipton Building Society account for the keeping of reserve and designated funds.

Key Risks and Uncertainties Disclosure

Regular Church Activities

The main work of the church indicates few uncertainties because it is fully funded by regular donations. Reduced income because of church building closure has been balanced by reduced expenditure.

Building Works

The “house” refurbishment, although an expensive capital project to be completed in 2022 indicates little uncertainty. The detailed costing has included price increases due to material supply issues following the pandemic and the project is fully funded. The costings are considered to be fixed or very nearly so and a contingency is included. There is some flexibility in the term of loan repayments which can reduce monthly repayments in future years if necessary.

Plans for Future Periods

The major plans for the year 2022 include:

Pension Liabilities

The trustees are advised by the Baptist Pension Scheme that the estimated employer debt as of 31st December 2021 is £98,800. This is the debt the church would need to pay if it were to exit the defined benefit section of the Baptist Pension Scheme by paying its employer debt immediately. For more details in relation to the defined benefit pension scheme please refer to note 15 of the financial statements.

Reserves

The trustees have identified certain contingent events which if they should crystallise in the short term (within one year) could inhibit or prevent the charity from providing public benefit. It is considered that the risks associated with these events cannot sensibly be mitigated by advance training of staff or volunteers or by the means of insurance policies. The risks associated with these events are considered sufficiently high such that a reserve fund should be set aside which can be spent if any of these events occur, in order to continue in the short term to provide public benefit. These contingent events and the fund set aside to mitigate each are listed below. Low probability contingent events are not listed. The reserve fund is £47,000 made up as follows.

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Trustees’ Annual Report

Contingent Events

Reserve Fund

On the above basis, the trustees set aside for 2021 a reserve fund of £47,000 to be used only if any of the contingent events should crystallise. This fund represents approximately two months income from regular donors. The reserve fund is reviewed annually as part of the budgeting process although the adequacy of the reserve fund is monitored more frequently.

Other Funds

For the CIO (1181773) the total funds carried forward at the year end was £1,389,650 (2020: £1,187,088). The carried forward balance is made up of £563,908 restricted (2020: £427,528), £320,495 designated (2020: £320,495) and £505,247 unrestricted (2020: £439,065). The CAP Fund, Fellowship Fund and Foodbank Fund are expected to receive donations at about the same rate as fund expenditure so that the funds are not expected to materially diminish in the foreseeable future.

Funds in Deficit

No funds have been in deficit.

Going Concern

The trustees consider that the Skipton Baptist Church CIO charity number 1181773 is a going concern.

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Trustees’ Responsibilities

The law applicable to charities in England and Wales requires the charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, of the charity for that period.

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

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the Trust Deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees' annual report was approved and signed on behalf of the board of trustees by:

Mrs J Nixon (Secretary) Mr D Green (Church Treasurer) Trustee Trustee

Date: 17/05/2022

Date: 18/05/2022

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Independent Examiners Report

I report to the trustees on my examination of the financial statements of Skipton Baptist Church ('the charity') for the year ended 31 December 2021.

Responsibilities and basis of report

As the trustees of the charity you are responsible for the preparation of the 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 confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales (ICAEW), which is one of the listed bodies.

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.

Nigel Wyatt BSC FCA Date: 18/05/2022 Independent Examiner 125 Main Street Garforth Leeds LS25 1AF

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Statement of Financial Activities

2021 2020
Unrestricted Restricted Total
Funds Funds Funds Total Funds
Note £ £ £ £
Income
Donations and legacies 2 225,287 213,817 439,104 494,267
Charitable activities 3 2,031 - 2,031 3,166
Investment income 4 2,995 - 2,995 2,654
────────── ────────── ──────────
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Total Income 230,313 213,817 444,130 500,088
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──────────
Expenditure
Expenditure on charitable activities 6 211,491 77,438 288,929 305,545
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Total Expenditure 211,491 77,438 288,929 305,545
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──────────
Actuarial gains/(losses) on defined
benefit pension schemes		 47,361 - 47,361 (13,037)
────────── ────────── ──────────
──────────
Net income and net movement in
funds		 66,183 136,379 202,562 181,505
────────── ────────── ──────────
──────────
Reconciliation of funds
Total funds brought forward 16 759,560 427,528 1,187,088 1,005,583
Transfers 16 - - - -
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Total funds carried forward 16 825,743 563,907 1,389,650 1,187,088
────────── ────────── ──────────
──────────

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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Statement of Financial Position

2021 2020
Note £ £
Fixed assets
Tangible fixed assets 12 1,038,414 1,039,779
Current assets
Debtors 12 19,170 24,349
Cash at bank and in hand 589,297 479,880
────────── ──────────
608,467 504,229
Creditors: amounts falling due within one year 13 36,389 46,749
────────── ──────────
Net current assets 572,078 457,480
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Total assets less current liabilities 1,610,492 1,497,259
Creditors: amounts falling due after more than one year 14 122,042 157,571
────────── ──────────
Net assets excluding defined benefit pension plan liability 1,488,450 1,339,688
Defined benefit pension plan liability 15 98,800 152,600
────────── ──────────
Net assets including defined benefit pension plan liability 17 1,389,650 1,187,088
────────── ──────────
Funds of the charity
Restricted funds 563,907 427,528
Unrestricted funds 825,743 759,560
────────── ──────────
Total charity funds 16 1,389,650 1,187,088
────────── ──────────
Directors Responsibilities
These financial statements were approved by the board of trustees and authorised for issue :
Name of Trustee: Mr D Green (Church Treasurer)
───────────────────────────────────────────────────
Signed on behalf of the Trustees:
───────────────────────────────────────────────────
Date of approval: 18/05/2022

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Statement of Cash Flows

Statement of Cash Flows
2021 2020
£ £
Cash flows from operating activities:
Net cash provided by (used in) operating activities 153,394 218,131
────────── ──────────
153,394 218,131
────────── ──────────
Cash flows from investing activities:
Dividends and interest 2,995 2,654
Purchase of tangible fixed assets (3,309) (122,255)
────────── ──────────
Net cash provided by (used in) investing activities (314) (119,601)
────────── ──────────
Cash flows from financing activities:
Repayments on borrowing (35,188) (26,581)
Repayments towards defined benefit pension schemes (8,475) (6,247)
────────── ──────────
Net cash provided by (used in) financing activities (43,663) (32,828)
────────── ──────────
Change in cash and cash equivalents in the reporting period 109,417 65,703
Cash and cash equivalents at the beginning of the reporting period 479,880 414,177
────────── ──────────
Cash and cash equivalents at the end of the reporting period 589,297 479,880
────────── ──────────
Reconciliation of net movement in funds to net cash flowfrom operating activities
2021 2020
£ £
Net movement in funds for the reporting period (as per the
statement of financial activities)		 202,562 181,505
Adjustments for:
Actuarial gains/losses on defined benefit pension schemes (47,361) 13,037
Depreciation charges 4,674 4,462
Dividends and interest from investments (2,995) (2,654)
Intrest charged on borrowing and defined benefit pension schemes 2,036 1,509
(Increase) / decrease in debtors 5,180 12,606
Increase / (decrease) in creditors (10,701) 7,666
────────── ──────────
Net cash provided by (used in) operating activities 153,394 218,131
────────── ──────────
Analysis of cash and cash equivalents
2021 2020
£ £
Cash in hand 589,297 479,880
────────── ──────────
Total cash and cash equivalents 589,297 479,880
────────── ──────────

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Notes to the Financial Statements

1 Accounting Policies

Basis of Preparation

The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities Financial Reporting Standards applicable in the UK and Republic of Ireland (Charities SORP 2019 FRS 102) and the Charities Act 2011.

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.

Assessment of Going Concern

Preparation of the accounts is on a going concern basis. The trustees consider that there are no material uncertainties about the Charity's ability to continue as a going concern.

Judgements and key sources of estimation uncertainty

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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Residual values of freehold property

The Church owns freehold property which is depreciated at costs less estimated residual value over its estimated useful economic life of 50 years. The residual value is estimated based on the current market value of the property assuming it is already of the age and condition expected at the end of its useful life.

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Notes to the Financial Statements

Fund Accounting

Unrestricted income funds comprise those funds which the trustees are free to use for any purpose in furtherance of the charitable objects. Unrestricted funds include designated funds where the trustees, at their discretion, have set aside resources for a specific purpose.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by the donor.

Further explanation of the nature and purpose of each fund is included in the notes to the accounts.

Incoming Resources

All incoming resources are recognised once the charity has entitlement to the resources, it is probable that the resources will be received, and the monetary value of incoming resources can be measured with sufficient reliability.

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Notes to the Financial Statements

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.

Operating leases

Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line 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.

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:

Fixtures and fittings

20% straight line

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Notes to the Financial Statements

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.

Financial instruments

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted.

Debt instruments are subsequently measured at amortised cost.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.

When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as an expense in the period in which it arises.

18

Skipton Baptist Church

Year Ended 31st December 2021

Notes to the Financial Statements

Defined benefit plans

The charity recognises a defined net benefit pension asset or liability in the statement of financial position as the net total of the present value of its obligations and the fair value of plan assets out of which the obligations are to be settled. The defined benefit liability is measured on a discounted present value basis using a rate determined by reference to market yields at the reporting date on high quality corporate bonds. Defined benefit obligations and the related expenses are measured using the projected unit credit method. Plan surpluses are recognised as a defined benefit asset only to the extent that the surplus is recoverable either through reduced contributions in the future or through refunds from the plan.

Changes in the net defined benefit asset or liability arising from employee service are recognised in income or expenditure as a current service cost where it relates to services in the current period and as a past service cost where it relates to services in prior periods. Costs relating to plan introductions, benefit changes, curtailments and settlements are recognised in income or expenditure in the period in which they occur.

Net interest is determined by multiplying the net defined benefit liability by the discount rate, both as determined at the start of the reporting period, taking account of any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. Net interest is recognised in income or expenditure.

19

Skipton Baptist Church

Year Ended 31st December 2021

Notes to the Financial Statements

2 Donations and legacies

Unrestricted Restricted Total Funds
Funds Funds 2021
£ £ £
Donations
General Donations 184,326 637 184,963
Donations for CAP - 27,531 27,531
Donations for Food Bank - 56,354 56,354
Donations for the Strategic Development Fund - 72,292 72,292
Donations for Mission 1,168 - 1,168
General Donations Gift Aid 39,793 - 39,793
Legacy Income - 45,315 45,315
Strategic Development Fund Donations Gift Aid - 11,688 11,688
────────── ──────────
──────────
225,287 213,817 439,104
Grants and Contract Income
#doyouknowHim? Grant - - -
────────── ──────────
──────────
- - -
────────── ──────────
──────────
Total 225,287 213,817 439,104
────────── ──────────
──────────

20

Skipton Baptist Church

Year Ended 31st December 2021

Notes to the Financial Statements

Unrestricted Restricted Total Funds
Funds Funds 2020
£ £ £
Donations
General Donations 167,429 1,289 168,718
Donations for CAP - 12,240 12,240
Donations for Food Bank - 97,684 97,684
Donations for the Strategic Development Fund 167,136 - 167,136
Donations for Mission - - -
General Donations Gift Aid 37,240 - 37,240
Strategic Development Fund Donations Gift Aid 6,249 - 6,249
────────── ──────────
──────────
378,054 111,213 489,267
Grants and Contract Income
#doyouknowHim? Grant - 5,000 5,000
────────── ──────────
──────────
- 5,000 5,000
────────── ──────────
──────────
Total 378,054 116,213 494,267
────────── ──────────
──────────
**3 ** Charitable activities
Unrestricted Restricted Total Funds
Funds Funds 2021
£ £ £
Event Income - - -
Lunch Club Income 300 - 300
Messy Hands 1,731 - 1,731
────────── ──────────
──────────
2,031 - 2,031
────────── ──────────
──────────
Unrestricted Restricted Total Funds
Funds Funds 2020
£ £ £
Event Income 639 100 739
Lunch Club Income 1,126 - 1,126
Messy Hands 1,301 - 1,301
────────── ──────────
──────────
3,066 100 3,166
────────── ──────────
──────────

21

Skipton Baptist Church

Year Ended 31st December 2021

Notes to the Financial Statements

4 Investment income

Investment income
Unrestricted Restricted Total Funds
Funds Funds 2021
£ £ £
Bank interest - - -
Rental Income 2,995 - 2,995
────────── ──────────
──────────
2,995 - 2,995
────────── ──────────
──────────
Unrestricted Restricted Total Funds
Funds Funds 2020
£ £ £
Bank interest 339 - 339
Rental Income 2,315 - 2,315
────────── ──────────
──────────
2,654 - 2,654
────────── ──────────
──────────

5 Donated goods, facilities and services

During the year the charity received a donations for the Church to redistribute through the foodbank. These donations have not been financially recognised as income in the accounts due to the nature of the donation, but are noted as a significant to the charitable activity of the church during the year.

6 Expenditure on charitable activities by fund type

Unrestricted Restricted Total Funds
Funds Funds 2021
£ £ £
Ministry Costs 136,766 141 136,907
Events 180 - 180
Mission 29,095 55,764 84,859
Young People 11,351 28 11,379
Running Costs 34,099 - 34,099
Strategic Development - 21,505 21,505
────────── ──────────
──────────
211,491 77,438 288,929
────────── ──────────
──────────

22

Skipton Baptist Church

Year Ended 31st December 2021

Notes to the Financial Statements

Unrestricted Restricted Total Funds
Funds Funds 2020
£ £ £
Ministry Costs 151,856 450 152,306
Events 265 - 265
Mission 29,196 61,261 90,457
Young People 10,426 713 11,139
Running Costs 39,065 - 39,065
Strategic Development - 12,314 12,314
────────── ──────────
──────────
230,808
──────────		 74,737
──────────		 305,545

──────────

7 Volunteer's

The church benefits greatly from the voluntary contributions of time and money by its formal members and regular attendees. Please refer to the trustees' report for further detail about volunteer contributions in the organisation.

8 Actuarial gains/(losses) on defined benefit pension schemes

Unrestricted Total Funds Unrestricted Total Funds
Funds 2021 Funds 2020
£ £ £ £
Actuarial gains/(losses) on defined 47,361 47,361 (13,037) (13,037)
benefit pension schemes
Independent examination fees
Fees payable to the independent examiner for:
2021 2020
£ £
Independent examination and preparation of the financial 1,260 1,680
────────── ──────────
1,260 1,680
────────── ──────────

9 Independent examination fees

10 Staff costs

The total staff costs and employee benefits for the reporting period are analysed as follows:

2021 2020
£ £
Wages and salaries 155,246 158,858
Social security costs 8,635 9,599
Employer contributions to pension plans 13,406 14,170
────────── ──────────
177,287 182,627
────────── ──────────

23

Skipton Baptist Church

Year Ended 31st December 2021

Notes to the Financial Statements

The average head count of employees during the year was as follows:

2021 2020
Average Head Count 7 8

Number of employees who received benefits of more than £60,000 during the year was as follows:

2021 2020
More than £60,000 0 0

Key Management Personnel

The charity considers its key management personnel to be the Lead Minister and the Associate Minister. In September 2021 Lead Minister Rev L Holmes resigned and Rev P Burns took on the role as Lead Minister with the Associate Minister role not replaced during the year.

2021 2020
£ £
The total employee benefits received by key management 92,096 101,205

11 Trustee remuneration and expenses

During the year 7 trustees (2020: 6) were reimbursed for out of pocket expenses. The nature of these expenses were for ministry costs, travel and equipment. The total amount of expenses reimbursed during the year was £2,932.01. (2020: £2,663.56).

The employment remuneration payments have been authorised by the remaining member of the trustees board.

2021 2020
£ £
Rev L Holmes
Employment Remuneration 29,380 38,073
Employer pension contribution 2,876 3,807
Rev P Burns
Employment Remuneration 37,465 35,001
Employer pension contribution 3,659 3,500
M Smith
Employment Remuneration 26,127 25,324
Employer pension contribution 2,040 2,026
C Heskin
Employment Remuneration 26,127 22,268
Employer pension contribution 2,040 1,781

24

Skipton Baptist Church

Year Ended 31st December 2021

Notes to the Financial Statements

12 Tangible fixed assets

Freehold Fixtures and
property fittings Total
£ £ £
Cost
At 1 January 2021 1,024,057 26,836 1,050,893
Additions - 3,309 3,309
────────── ────────── ──────────
At 31 December 2021 1,024,057 30,145 1,054,202
────────── ────────── ──────────
Depreciation -
At 1 January 2021 - 11,114 11,114
Charge for the year - 4,674 4,674
────────── ────────── ──────────
At 31 December 2021 - 15,788 15,788
────────── ────────── ──────────
Carrying amount
At 31 December 2021 1,024,057 14,357 1,038,414
────────── ────────── ──────────
At 31 December 2020 1,024,057 15,722 1,039,779
────────── ────────── ──────────
**12 ** Debtors
2021 2020
£ £
Trade debtors 185 -
Prepayments and accrued income 18,985 24,349
────────── ──────────
19,170 24,349
────────── ──────────
**13 ** Creditors: amounts falling due within one year
2021 2020
£ £
Bank loans and overdrafts 30,529 30,188
Accruals and deferred income 3,648 13,194
Social security and other taxes 2,212 3,367
────────── ──────────
36,389 46,749
────────── ──────────

25

Skipton Baptist Church

Year Ended 31st December 2021

Notes to the Financial Statements

14 Creditors: amounts falling due after more than one year

2021 2020
£ £
Bank loans and overdrafts 122,042 157,571
────────── ──────────
122,042 157,571
────────── ──────────

15 Pensions and other post-retirement benefits

The amount recognised in income or expenditure as an expense in relation to defined contribution plans was £13,407 (2020: £14,170).

Defined benefit plans

The Church is a participating employer the Baptist Pension Scheme (“the Scheme”), which is a separate legal entity administered by the Pension Trustee (Baptist Pension Trust Limited). The assets of the Scheme are held separately from those of the Employer and the other participating employers.

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. Prior to this date the main benefit provided through the Defined Benefit (DB) Plan was a 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.

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 Broadstone Corporate Benefits Ltd. In addition, the employer pays a further 4% of Pensionable Income to cover Death in Service Benefits, administration costs, and an associated insurance policy which provides income protection for Scheme members if 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 Aviva Limited. [Members of the Basic Section pay reduced contributions of 5% of Pensionable Income, and their employers also pay a total of 5%.]

The Scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. Because it is not possible to attribute the Scheme’s assets and liabilities to specific employers, the scheme is accounted for as if the Scheme were a defined contribution scheme.

The Ministers are eligible to join the Scheme.

26

Skipton Baptist Church

Year Ended 31st December 2021

Notes to the Financial Statements

Actuarial valuation as at 31 December 2019

A formal valuation of the DB Plan as at 31 December 2019 was carried out by a professionally qualified Actuary using the Projected Unit Method. At the valuation date the market value of the DB Plan assets was £298 million, whilst the level of assets needed to pay benefits was £316m, giving a deficit of £18m (equivalent to a past service funding level of 94%). The Church and the other participating employers in the DB Plan are collectively responsible for funding this deficit.

The key financial assumptions underlying the valuation were as follows

Type of financial assumption % pa
RPI price inflation assumption 3.2
CPI price inflation assumption 2.7
Minimum Pensionable Income increases (CPI plus 0.5% pa) 3.2
Assumed investment returns
- Pre-retirement 2.95
- Post retirement 1.7
Deferred pension increases
- Pre April 2009 3.2
- Post April 2009 2.5
Pension increases
Based on CPI with an annual floor of 0% and annual cap of 5% 2.7

Mortality is assumed in accordance with 80% of the S3NA standard mortality table. Future improvements projected from 2013 in line with the “CMI 2019” projection with a long-term rate of improvement of 1.75% p.a. for males and 1.5% p.a. for females with the core smoothing parameter and with additional initial mortality improvement factor A=0.5%.

The next actuarial valuation of the DB Plan within the Scheme is due to take place not later than as at 31 December 2022.

Recovery Plan

In addition to the contributions to the DC Plan set out above, where a valuation of the DB Plan reveals a deficit the Trustee and the Council agree to a rate of deficiency contributions from churches and other employers involved in the DB Plan.

Under the current Recovery Plan signed in September 2020, deficiency contributions are payable until June 2026. These contributions are broadly based on the employer's membership at 31 December 2014 and increase annually in line with increases to Minimum Pensionable Income as defined in the Rules.

27

Skipton Baptist Church

Year Ended 31st December 2021

Notes to the Financial Statements

Movement in Balance Sheet liability

Section 28.11A of FRS 102 requires agreed deficit recovery payments to be recognised as a liability. The movement in the provision is set out in the table below.

2021 2020
£ £
Statement of Financial Position liability opening balance (152,600) (144,300)
Deficiency contributions paid 8,475 6,247
Interest cost (2,036) (1,509)
Actuarial gains/(losses) on defined benefit pension schemes 47,361 (13,037)
────────── ──────────
Statement of Financial Position closing balance (98,800) (152,600)
────────── ──────────

This liability represents the present value of the deficit contributions agreed as at the accounting date and has been valued using the following assumptions set by reference to the duration of the deficit recovery payments:

2021 2020
Discount rate 2.00% 1.37%
Future increases to Minimum Pensionable Income 4.06% 3.18%
Pension cost for the year
2021 2020
£ £
Defined contribution ministers 6,535 7,308
Defined contribution for staff 6,872 6,863
────────── ──────────
13,406 14,170
────────── ──────────

28

Skipton Baptist Church

Year Ended 31st December 2021

Notes to the Financial Statements

16 Analysis of Charitable Funds

Gains and 31 Dec
1 Jan 2021 Income Expenditure Transfers losses 2021
£ £ £ £ £ £
Unrestricted Funds
General Fund 439,065 230,313 (211,491) - 47,361 505,248
Strategic
Development Fund		 319,473 - - - - 319,473
Youth Bursary Fund 1,022 - - - - 1,022
────────── ────────── ────────── ────────── ────────── ──────────
Total 759,560 230,313 (211,491) - 47,361 825,743
────────── ────────── ────────── ────────── ────────── ──────────
Gains and 31 Dec
1 Jan 2021 Income Expenditure Transfers losses 2021
£ £ £ £ £ £
Restricted Funds
CAP Fund 3,030 27,531 (18,422) - - 12,139
Fellowship Fund 3,477 637 (141) - - 3,973
Food Bank 67,990 56,354 (37,342) - - 87,002
Other Church
Activities 326 - (28) (244) - 54
Youth Room
Refurbishment - - - - - -
#doyouknowHim? 4,900 - - 244 - 5,144
Strategic
Development Fund		 347,805 83,980 (21,505) - - 410,280
The House Ministry - 45,315 - - - 45,315
────────── ────────── ────────── ────────── ────────── ──────────
Total 427,528 213,817 (77,438) - - 563,907
────────── ────────── ────────── ────────── ────────── ──────────
────────── ────────── ────────── ────────── ────────── ──────────
Total Funds 1,187,088 444,130 (288,929) - 47,361 1,389,650
────────── ────────── ────────── ────────── ────────── ──────────

29

Skipton Baptist Church

Year Ended 31st December 2021

Notes to the Financial Statements

Gains and 31 Dec
1 Jan 2020 Income Expenditure Transfers losses 2020
£ £ £ £ £ £
Unrestricted Funds
General Fund 395,515 210,213 (230,608) 76,983 (13,037) 439,065
-
Strategic
Development Fund		 319,473 - - - 319,473
Youth Bursary Fund 1,045 177 (200) - - 1,022
────────── ────────── ────────── ────────── ────────── ──────────
Total 716,033 210,390 (230,808) 76,983 (13,037) 759,560
────────── ────────── ────────── ────────── ────────── ──────────
Gains and 31 Dec
1 Jan 2020 Income Expenditure Transfers losses 2020
£ £ £ £ £ £
Restricted Funds
CAP Fund 6,577 12,240 (15,787) - - 3,030
Fellowship Fund 2,854 1,073 (450) - - 3,477
Food Bank 15,679 97,684 (45,374) - - 67,990
Other Church
Activities 939 100 (713) - - 326
Youth Room
Refurbishment		 76,767 216 - (76,983) - -
#doyouknowHim? - 5,000 (100) - - 4,900
Strategic
Development Fund		 186,734 173,385 (12,314) - - 347,805
────────── ────────── ────────── ────────── ────────── ──────────
Total 289,550 289,698 (74,737) (76,983) - 427,527
────────── ────────── ────────── ────────── ────────── ──────────
────────── ────────── ────────── ────────── ────────── ──────────
Total Funds 1,005,583 500,089 (305,545) - (13,037) 1,187,089
────────── ────────── ────────── ────────── ────────── ──────────

Fund transfers

At the year end the refurbishment on the youth room had been completed and this work had been capitalized as a fixed asset on the balance sheet. Now that the renovation has been completed the restricted fund has been fulfilled and the balance of £76,983 has been transferred to the general fund.

Fund descriptions for material funds

CAP Fund

Food Bank Youth Refurbishment Strategic Development Fund The House Ministry

Funds to run and resource the churches' Christians Against Poverty (CAP) Debt Centre

Funds to run and resource the churches food bank centre Funds received to refurbish the youth facilities in the church building Fund for significant works towards development of the building Funds for the renovation of a Church property for ministry use

30

Skipton Baptist Church

Year Ended 31st December 2021

Notes to the Financial Statements

17 Analysis of net assets between funds

Unrestricted Restricted Total Funds
Funds Funds 2021
£ £ £
Tangible fixed assets 1,038,414 - 1,038,414
Current assets 44,560 563,907 608,467
Creditors less than 1 year (36,389) - (36,389)
Creditors greater than 1 year (122,042) - (122,042)
Provisions (98,800) - (98,800)
────────── ──────────
──────────
825,743 563,907 1,389,650
────────── ──────────
──────────
Unrestricted Restricted Total Funds
Funds Funds 2020
£ £ £
Tangible fixed assets 1,039,779 - 1,039,779
Current assets 76,701 427,528 504,229
Creditors less than 1 year (46,749) - (46,749)
Creditors greater than 1 year (157,571) - (157,571)
Provisions (152,600) - (152,600)
────────── ──────────
──────────
759,560 427,528 1,187,088
────────── ──────────
──────────

18 Operating lease commitments

The total future minimum lease payments under non-cancellable operating leases are as follows:

2021 2020
£ £
Not later than 1 year 1,019 1,529
Later than 1 year and not later than 5 years - 765
────────── ──────────
1,019 2,294
────────── ──────────

19 Related party transactions

During the year, £0 (2020: £506.02) of purchases were made from Cornerstone Christian Books. Rev P Burns is a trustee of both Cornerstone Christian Books and Skipton Baptist Church. There was no outstanding balance due to be paid at the yearend (2020: £0).

During the year, £7,046.25 of expenditure was incurred with Martyn Leigh Landscape Design. Martyn Leigh is the trustee of the Charity and is also the business owner of Martyn Leigh Landscape Design. The church utilised Martyn's services during the year for the project management of the start of othe building renovation work. There was no outstanding balance due to be paid at the year end.

31

Skipton Baptist Church

Year Ended 31st December 2021

Notes to the Financial Statements

20 Capital Commitment

At the year end the charity had signed a building development contract for the value of £599,089 for property refurbishment and development taking place during 2022.

21 Events after the reporting period

After the year end the charity drew down £120,000 of a total £200,000 agreed loan facility with the Yorkshire Baptist Association to fund the property renovation work.

32