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2021-03-31-accounts

REPORT OF THE TRUSTEES AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

FOR

DUNCHURCH BAPTIST CHURCH

DUNCHURCH BAPTIST CHURCH

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

Page
Reference and Administrative Details 1
Report of the Trustees 2 to 5
Independent Examiner's Report 6
Statement of Financial Activities 7
Statement of Financial Position 8
Notes to the Financial Statements 9 to 21
Detailed Statement of Financial Activities 22 to 23

DUNCHURCH BAPTIST CHURCH

REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 MARCH 2021

TRUSTEES Revd. D Woods Revd. M Haighton (resigned 21/5/20) Miss C Siddaway (term finished 18/03/21) Mrs K Wederell Mrs R Hobgen Miss C Tabor Mrs S Coulon (appointed 21/1/21)

PRINCIPAL ADDRESS Coventry Road Dunchurch Rugby Warwickshire CV22 6RF REGISTERED CHARITY 1181840 NUMBER

INDEPENDENT EXAMINER

DNG Dove Naish LLP Chartered Accountants Eagle House 28 Billing Road Northampton Northamptonshire NN1 5AJ

Page 1

DUNCHURCH BAPTIST CHURCH

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

The trustees present their report with the financial statements of the charity for the year ended 31 March 2021. The trustees have adopted the provisions of 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) (effective 1 January 2019).

The web address for the Church is: www.dunchurchbaptistchurch.org.uk

OBJECTIVES AND ACTIVITIES

Objectives and aims

The principal purpose of the Church is 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.

Our vision is for people to experience the love of God, and hear his message for them.

Its objectives are pursued by:-

The church tithed its non-rental, non-building fund income supporting local, national and international charities. The decision on which groups to support is made by the church meeting.

The minister is the only paid office holder. The church has no other employees. All of its work, including that carried out by the other trustees, is done by volunteers. Many of these are members of the church but some are those who attend the church but are not members.

Public benefit

Our Church is open to all regardless of their faith position. Everyone is welcomed and offered the benefits of our fellowship.

We believe that offering the teaching of Christianity is a benefit to the local area and to society at large.

Noah's Ark Toddler Group is open to any parent/carer and their child. Although having been unable to meet for the last year due to Covid, leaders have been able to maintain contact with families and provided some weekly activities on the group's Facebook page.

The Trustees have had regard to the Charity Commission's guidance on public benefit, and believe the activities stated above comply with this guidance.

Page 2

DUNCHURCH BAPTIST CHURCH

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

ACHIEVEMENT AND PERFORMANCE

Charitable activities

Due to Covid restrictions, Sunday morning services have been pre-recorded and streamed via YouTube, followed by Zoom calls to allow people to chat and share, which has been important during lockdown. Evening services have transferred to Zoom with good attendance. Covid-compliant monthly afternoon services have been held when this has been possible under Covid restrictions. We are also aware that we have been able to reach a wider community, not just within Dunchurch but also in other countries, as it has been possible for the congregation to share the YouTube link to our weekly services with friends and family who would not otherwise be able to join us. Many other meetings have continued via Zoom. We have implemented a rigorous pastoral care system to ensure continuing connections with, and when necessary practical support for, all our contacts.

The Building Committee is responsible to the trustees and church meeting and is made up of volunteers drawn from the church.

Despite Covid, the building project has progressed and fundraising is continuing. Contractors completed the shell of the building during the year and work continues towards completing the interior.

Grant applications in respect of the building project continued to be made during the year with some success.

Various fundraising events took place during the year to support the building project, although this was curtailed by Covid restrictions.

Covid-19 Impact

In addition to the impact on regular Sunday services we have been able to maintain the following activities during the pandemic:

Sunday School and Messy Church leaders have maintained regular contact with families through e-mail and on their Facebook groups, providing lessons and activities throughout the year.

Activities for the children's classes are provided each week by e-mail and contact maintained.

Small groups which had met in homes continue to meet via Zoom.

Trustee, Elders, Church and Building Committee meetings have continued to take place via Zoom since March 2020.

However, Noah's Ark and the Alpha Course, which were both running until March 2020 had to stop meeting and have not yet been able to restart.

The Trustees are aware that it may be necessary to draw on some of the current reserves the church holds over the coming months, whilst maintaining the two months minimum reserves as per the reserves policy, in order to meet on-going commitments should giving start to fall away as the pandemic continues.

Page 3

DUNCHURCH BAPTIST CHURCH

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

FINANCIAL REVIEW

Financial position and Reserves Policy

The churches reserves policy is to have in hand in the General Fund at any time sufficient to cover two month's unavoidable running expenses. This policy is met per the funds shown below.

The main funds of the church are:

Funds raised during the year came either directly from those attending the church or from fundraising instigated by them.

The church encourages the use of the Gift Aid scheme and made claims for Gift Aid monies each half year. Due to Covid-19 and not being able to have cash collections, we have missed out on the benefit of the Gift Aid Small Donations scheme this year.

During Covid, many people changed from giving cash on a Sunday to either sending cheques or by setting up standing orders, which has helped us maintain our income and enabled us to cover our costs.

The church owns (subject to mortgage) a house. The principal reason for ownership is to be able to offer a manse to any future minister who needs the accommodation. Whilst not needed for this purpose the house is let to tenants. The church uses letting agents, Belvoir Rugby.

During the year we have been able to use our Support Other Churches Fund to support church building projects in Nigeria and Bolivia to enable them to continue with their projects during a particularly difficult year.

All expenditure supported the objectives of the church.

Total funds as at 31 March 2021 amounted to £1,130,151 (2020: £1,030,753), of which £154,397 (2020: £136,964) were unrestricted.

Page 4

DUNCHURCH BAPTIST CHURCH

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document

The governing document is the church's constitution.

The church is constituted as an association.

Trustees are elected by the church meeting.

Dunchurch Baptist Church is a member of the Baptist Union of Great Britain.

It is part of the Heart of England Baptist Association (HEBA)

It is part of the local Baptist cluster along with the churches at Daventry, Rugby and Wolston.

The church works in cooperation with Dunchurch Methodist Church and St. Peter's Church in Dunchurch.

The trustees ensure that all work of the church is subject to regularly reviewed risk assessment. It operates a safeguarding policy to help ensure the safety of children and adults at risk.

In addition to trustees the church uses 'ministry coordinators' to oversee specific areas of church life. These coordinators do not have any leadership functions and are subject to the trustees in all of their actions.

Custodian Trustee

The Baptist Union Corporation acts as custodian for the charity as far as its real property is concerned.

Managing Trustees (referred to as Trustees)

All trustees are elected to office by the church meeting. Other than the minister, trustees are elected for periods of three years. The minister's appointment is indefinite.

Approved by order of the board of trustees on 6[th] September 2021 and signed on its behalf by:

Page 5

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

Independent examiner's report to the trustees of Dunchurch Baptist Church

I report to the charity trustees on my examination of the accounts of Dunchurch Baptist Church (the Trust) for the year ended 31 March 2021.

Responsibilities and basis of report

As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act').

I report in respect of my examination of the Trust's accounts carried out under section 145 of the Act and in carrying out my examination I have followed all applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner's statement

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

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

  2. the accounts do not accord with those records; or

  3. the accounts 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.

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our independent examination work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an independent examiner’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our independent examination work, for this report, or for the opinions we have formed.

Nicola Fox FCA DNG Dove Naish LLP Chartered Accountants Eagle House 28 Billing Road Northampton Northamptonshire NN1 5AJ

Date: 15 September 2021

Page 6

DUNCHURCH BAPTIST CHURCH

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2021

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
Investment income
3
Other income
Total
EXPENDITURE ON
Raising funds
4
Charitable activities
5
Charitable activities
Total
NET INCOME
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
funds
£
57,183
10,583
-
67,766
4,790
45,543
50,333
17,433
136,964
154,397		 Restricted
funds
£
87,909
725
-
88,634
-
6,669
6,669
81,965
893,789
975,754		 2021

Total
funds
£
145,092
11,308
-
156,400
4,790
52,212
57,002
99,398
1,030,753
1,130,151		 2020
Total
funds
£
201,321
15,092
3,445
219,858
1,927
64,616
66,543
153,315
877,438
1,030,753

The notes form part of these financial statements

Page 7

DUNCHURCH BAPTIST CHURCH

STATEMENT OF FINANCIAL POSITION 31 MARCH 2021

Notes
FIXED ASSETS
Tangible assets
11
CURRENT ASSETS
Debtors
12
Cash at bank
CREDITORS
Amounts falling due within one year
13
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
CREDITORS
Amounts falling due after more than one year 14
PROVISIONS FOR LIABILITIES
17
NET ASSETS
FUNDS
18
Unrestricted funds
Restricted funds
TOTAL FUNDS		 Unrestricted
funds
£
174,470
4,625
19,877
24,502
(12,400)
12,102
186,572
(11,050)
(21,125)
154,397		 Restricted
funds
£
903,342
2,875
319,538
322,413
(25,001)
297,412
1,200,754
(225,000)
-
975,754		 2021

Total
funds
£
1,077,812
7,500
339,415
346,915
(37,401)
309,514
1,387,326
(236,050)
(21,125)
1,130,151
154,397
975,754
1,130,151		 2020
Total
funds
£
924,892
9,899
210,400
220,299
(62,923)
157,376
1,082,268
(18,253)
(33,262)
1,030,753
136,964
893,789
1,030,753

The financial statements were approved by the Board of Trustees and authorised for issue on 6[th] September 2021 and were signed on its behalf by:

The notes form part of these financial statements

Page 8

DUNCHURCH BAPTIST CHURCH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention.

Dunchurch Baptist Church is a registered charity. The charity's registered number and principal office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

Significant judgements and estimates

The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the company accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed within the individual accounting policies below.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Tangible fixed assets

For inalienable property acquired prior to 2004, there is insufficient cost information available and therefore such assets are not valued in the accounts.

Any items acquired during the year that do not exceed £1,000 are written off.

The Manse is not depreciated as the residual value is greater than or equal to its cost.

Other fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Where parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items of property, plant and equipment.

Depreciation methods, useful lives and residual values are reviewed at each balance sheet date. The selection of these residual values and estimated lives requires the exercise of judgement. The trustees are required to assess whether there is an indication of impairment to the carrying value of assets. In making that assessment, judgements are made in estimating value in use. The trustees consider that the individual carrying values of assets are supportable by their value in use.

Taxation

The charity is exempt from tax on its charitable activities.

Page 9

continued...

DUNCHURCH BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021

1. ACCOUNTING POLICIES - continued

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

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

Pension costs and other post-retirement benefits

The charity operates a defined contribution pension scheme. Contributions payable to the charity's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Financial instruments

Cash and cash equivalents in the balance sheet comprise cash at banks and in hand and short term deposits with an original maturity date of three months or less.

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the statement of comprehensive income under administrative expenses.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the entity after deducting all of its financial liabilities.

Where the contractual obligations of financial instruments are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability.

2. DONATIONS AND LEGACIES

General giving
Gift aid
Grants
Giving for special causes
Children & YP work
Catering income
Training
Fundraising giving
Gift day		 2021
£
115,666
15,775
-
-
-
-
-
1,626
12,025
145,092		 2020
£
121,404
22,461
37,200
964
324
201
160
8,530
10,077
201,321

Page 10

continued...

DUNCHURCH BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021

2. DONATIONS AND LEGACIES - continued

Grants received, included in the above, are as follows:

Dunchurch Festival Group
Allchurches Trust
Norwood & Newton
3.
INVESTMENT INCOME
Manse rent
Deposit account interest
4.
RAISING FUNDS
Raising donations and legacies
Manse maintenance
Manse building insurance
Manse letting expenses
5.
CHARITABLE ACTIVITIES COSTS
Direct
Costs (see
note 6)
£
Charitable activities
50,820		 2021
£
-
-
-
-
2021
£
10,500
808
11,308
2021
£
3,066
212
1,512
4,790
Support
costs
£
1,392		 2020
£
700
11,500
25,000
37,200
2020
£
10,500
4,592
15,092
2020
£
340
201
1,386
1,927
Totals
£
52,212

Page 11

continued...

DUNCHURCH BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021

6. DIRECT COSTS OF CHARITABLE ACTIVITIES

Staff costs
Church electricity
Church water rates
Church telephone
Church building maintenance
Church insurance
Church cleaning
Furnishings and Equipment
Post & Stationery
Fellowship and discipleship
Venue hire
Subscriptions
Church weekend
Normal giving
Giving from fundraising
Giving to special causes
Minister's stipend
Minister's pension - dbc share
Minister's house rental
Minister's house utilities and insurance
Minister's expenses
Minister's telephone costs
Minister's council tax
Minister's payroll management
Church catering
CCLI Music copyright licence
Training
Accountancy software
Speaker's expenses
Children & young people's work
Noah's Ark expenditure
Crisis fund expenditure
Interest payable and similar charges		 2021
£
(9,331)
1,113
103
625
298
685
637
1,491
182
17
1,350
561
-
5,727
6,000
400
23,569
3,479
6,253
2,092
77
521
2,407
130
-
625
20
150
100
519
669
-
351
50,820		 2020
£
(644)
68
101
307
639
679
455
84
323
433
1,880
330
39
5,970
5,450
1,082
22,982
3,171
6,166
2,181
533
544
2,318
130
168
512
536
150
870
953
3,708
500
582
63,200

7. INDEPENDENT EXAMINERS' REMUNERATION

Fees payable to the charity's independent examiners' for the independent
examination
Fees payable to the charity's independent examiners' for the accounts
preparation		 2021
£
500
892
1,392		 2020
£
500
916
1,416

Page 12

continued...

DUNCHURCH BAPTIST CHURCH NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021

8. TRUSTEES' REMUNERATION AND BENEFITS

During the year Revd D Woods, a Trustee of the charity was paid a Stipend of £23,569 (2020 £22,982) for his role in the charity as the Church Minister. Pension contribution payments of £3,479 (2020 £3,171) were also made by the charity for the Trustee Revd D Woods. This is paid under the legal authority of the charity as set out by a a provision made in the governing document of the charity.

No other Trustees received any further remuneration or other benefits during the year, nor for the year ended 31 March 2020.

Trustees' expenses

Expenses of £813 (2020: £2,884) were reimbursed to 3 (2020: 5) Trustees for expenses paid on behalf of the charity during the year.

Expenses of £11,273 (2020: £11,209) were also reimbursed to the Minister D Woods and paid in relation to the property occupied by the Minister during the year.

9. STAFF COSTS

Ministers Stipend
Pension costs
Unwinding of pension provision		 2021
£
23,569
3,479
(9,331)
17,717		 2020
£
22,982
3,171

(644)
25,509

The average monthly number of employees during the year was as follows:

2021 2020
Church minister 1 1

No employees received emoluments in excess of £60,000.

Trustee and key management remuneration totalled £27,048 (2020: £26,153) during the year.

10. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

INCOME AND ENDOWMENTS FROM
Donations and legacies
Investment income
Other income
Total
EXPENDITURE ON
Raising funds		 Unrestricted
funds
£
59,766
10,585
814
71,165
1,927		 Restricted
funds
£
141,555
4,507
2,631
148,693
-
Total
funds
£
201,321
15,092
3,445
219,858
1,927

Page 13

continued...

DUNCHURCH BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021

10.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES -
Unrestricted
funds
£
Charitable activities
Charitable activities
55,294
Total
57,221
NET INCOME
13,944
RECONCILIATION OF FUNDS
Total funds brought forward
123,020
TOTAL FUNDS CARRIED FORWARD
136,964
11.
TANGIBLE FIXED ASSETS
COST
At 1 April 2020
Additions
At 31 March 2021
NET BOOK VALUE
At 31 March 2021
At 31 March 2020		 continued

Restricted
funds
£
9,322
9,322
139,371
754,418
893,789
Total
funds
£
64,616
66,543
153,315
877,438
1,030,753
Freehold
property
£
924,892
152,920
1,077,812
1,077,812
924,892

The properties are held in Trust with the Baptist Union Corporation Limited as the Holding Trustee, but the Charity have the economic and beneficial rights to the properties.

At the year end a new church building is under construction, and the first stage build has been capitalised during the current and prior years, totalling £746,045. No depreciation has been charged yet as the building is not yet complete.

Page 14

continued...

DUNCHURCH BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021

12.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2021
£
Prepayments and accrued income
7,500
13.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2021
£
Bank loans and overdrafts (see note 15)
7,143
Other loans (see note 15)
25,000
Social security and other taxes
327
Accruals and deferred income
4,931
37,401
14.
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2021
£
Bank loans (see note 15)
11,050
Other loans (see note 15)
225,000
236,050
15.
LOANS
An analysis of the maturity of loans is given below:
2021
£
Amounts falling due within one year on demand:
Bank loans
7,143
Other loans
25,000
32,143
Amounts falling between one and two years:
Bank loans - 1-2 years
7,230
Other loans - 1-2 years
25,000
32,230
Amounts falling due between two and five years:
Bank loans - 2-5 years
3,820
Other loans - 2-5 years
75,000
78,820
Amounts falling due in more than five years:
Repayable by instalments:
Other loans more 5yrs instal
125,000		 2020
£
9,899
2020
£
6,984
-
343
55,596
62,923
2020
£
18,253
-
18,253
2020
£
6,984
-
6,984
7,090
-
7,090
11,163
-
11,163
-

Page 15

continued...

DUNCHURCH BAPTIST CHURCH NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021

16. SECURED DEBTS

The following secured debts are included within creditors:

Bank and other loans

2021
£
268,193		 2020
£
25,237

An outstanding bank loan totalling £18,193 is secured against the freehold property at Weston Close, as detailed in the financial statements.

An outstanding bank loan totalling £250,000 is to continue the build of the new Church which is ongoing at the year end. This is be secured against the assets of the Charity.

17. PROVISIONS FOR LIABILITIES

PROVISIONS FOR LIABILITIES
Provisions
Provision at 1 April 20
Deficit contribution paid in the year
Unwinding of the discount factor (interest expense)
Impact of changes in assumptions
Provision at 31 March 21		 2021
£
21,125
2021
£
33,262
(2,806)
701
(10,032)
21,125
2020
£
33,262
2020
£
37,565
(3,659)
715
(1,359)
33,262

The provision is the net present value of additional contributions payable to The Baptist Pension Scheme, administered by the Baptist Pension Trust Limited. The contributions arise from the deficit recovery agreement and is payable annually until 30 June 2026.

This liability represents the net 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:

Accounting date 31 March 2021 31 March 2020 31 March 2019
Discount rate 0.9% 2.2% 2.0%
Future increases to minimum pensionable
income 3.5% 2.8% 3.3%

Page 16

continued...

DUNCHURCH BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021

18. MOVEMENT IN FUNDS

Net
movement
At 1/4/20
in funds
£
£
Unrestricted funds
General fund
19,240
2,744
Manse Fund
150,986
5,358
Pension Fund
(33,262)
9,331
136,964
17,433
Restricted funds
Building Fund
874,367
87,450
Crisis Fund
150
-
Lazer Fund
680
-
Noah's Ark Fund
2,386
(669)
Support Other Churches Fund
16,206
(4,816)
893,789
81,965
TOTAL FUNDS
1,030,753
99,398
Net movement in funds, included in the above are as follows:		 Transfers

between

funds
£
(2,806)
-
2,806
-
-
-
-
-
-
-
-
At
31/3/21
£
19,178
156,344
(21,125)
154,397
961,817
150
680
1,717
11,390
975,754
1,130,151
Unrestricted funds
General fund
Manse Fund
Pension Fund
Restricted funds
Building Fund
Noah's Ark Fund
Support Other Churches Fund
TOTAL FUNDS		 Incoming
resources
£
57,266
10,500
-
67,766
87,450
-
1,184
88,634
156,400		 Resources
Movement
expended
in funds
£
£
(54,522)
2,744
(5,142)
5,358
9,331
9,331
(50,333)
17,433
-
87,450
(669)
(669)
(6,000)
(4,816)
(6,669)
81,965
(57,002)
99,398

Page 17

continued...

DUNCHURCH BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021

18. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

Unrestricted funds
General fund
Manse Fund
Pension Fund
Restricted funds
Building Fund
Crisis Fund
Lazer Fund
Noah's Ark Fund
Support Other Churches Fund
TOTAL FUNDS		 At 1/4/19
£
17,590
142,995
(37,565)
123,020
729,663
495
755
3,618
19,887
754,418
877,438		 Net
movement
in funds
£
5,309
7,991
644
13,944
144,704
(345)
(75)
(1,232)
(3,681)
139,371
153,315		 Transfers
between
At
funds
31/3/20
£
£
(3,659)
19,240
-
150,986
3,659
(33,262)
-
136,964
-
874,367
-
150
-
680
-
2,386
-
16,206
-
893,789
-
1,030,753

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Manse Fund
Pension Fund
Restricted funds
Building Fund
Crisis Fund
Lazer Fund
Noah's Ark Fund
Support Other Churches Fund
TOTAL FUNDS		 Incoming
resources
£
60,665
10,500
-
71,165
144,743
155
-
2,476
1,319
148,693
219,858		 Resources
Movement
expended
in funds
£
£
(55,356)
5,309
(2,509)
7,991
644
644
(57,221)
13,944
(39)
144,704
(500)
(345)
(75)
(75)
(3,708)
(1,232)
(5,000)
(3,681)
(9,322)
139,371
(66,543)
153,315

The Manse Fund is for income, expenses and maintenance of the Manse and the repayment of the mortgage.

The Pension Fund is the net present value of the provision for the additional contributions payable to the Baptist Pension Scheme, which arose from the deficit recovery agreement. The contributions are payable annually until 30 June 2026 to bring the fund to £nil.

The transfer from the General Fund to the Pension Fund is deficiency contributions paid during the year.

Page 18

continued...

DUNCHURCH BAPTIST CHURCH NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021

18. MOVEMENT IN FUNDS - continued

The Building Fund is for the Building project, used for paying out associated costs relating to the preparatory work and for the costs of the build.

The Crisis Fund is to enable financial assistance to be given to individuals in crisis, as deemed appropriate by the Minister.

The Lazer Fund is for youth related expenditure.

Noah's Ark Fund is to support the toddler group.

The Support Other Churches Fund is to enable the church to support other churches in need.

19. EMPLOYEE BENEFIT OBLIGATIONS

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

For any month, each participating employer in the Scheme pays contributions as set out in the Schedule of Contributions in force at that time.

The Scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. This is because it is not possible to attribute the Scheme’s assets and liabilities to specific employers and means that contributions are accounted for as if the Scheme were a defined contribution scheme. The pensions costs charged to the SoFA in the year are contributions payable towards benefits and expenses accrued in that year, plus any impact of deficiency contributions (see below).

The Minister is eligible to join the Scheme.

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

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

Actuarial valuation as at 31 December 2019

A formal valuation of the Defined Benefit (DB) Plan was performed at 31 December 2019 by a professionally qualified Actuary using the Projected Unit Method. The market value of the DB Plan assets at the valuation date was £298 million.

Page 19

continued...

DUNCHURCH BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021

19. EMPLOYEE BENEFIT OBLIGATIONS - continued

The valuation of the DB Plan revealed a deficit of assets compared with the value of liabilities of £18 million (equivalent to a past service funding level of 94%). The Church and the other employers supporting the DB Plan are collectively responsible for funding this deficit.

The key assumptions underlying the valuation were as follows:

Type of financial assumption % pa
RPI price inflation assumption 3.20
CPI price inflation assumption 2.70
Minimum Pensionable Income increases (RPI) 3.20
Assumed investment returns
- Pre-retirement 2.95
- Post retirement 1.70
Deferred pension increases
- Pre April 2009 3.20
- Post April 2009 2.50
Pension increases
- Main Scheme pension 2.70

Post-retirement mortality in accordance with 80% of the S2NFA and S2NMA tables, with allowance for future improvements in mortality rates from 2013 in line with the CMI 2019 core projections, with a long term annual rate of improvement of 1.75% for males and 1.5% 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 dated 30 September 2020, deficiency contributions are payable until 30 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. However, the Trustee and the Council agreed a 50% reduction for all deficiency contributions payable between 1 July 2020 and 31 December 2020.

Cessation Event

Consequent upon the departure of the Minister from the Church in 2006, the Church had a cessation event under Section 75 of the Pensions Act 1995. This makes the Church liable for the proportion of the overall deficit (assessed by reference to the cost of securing benefits by the purchase of annuities) applicable to its previous Ministers who were members of the Scheme.

In 2020 the Church entered into a "Deferred Debt Arrangement". Under this arrangement the Church is no longer liable for this debt, but the Church continues to pay the ongoing deficiency contributions as outlined above. There are limited circumstances under the Deferred Debt Arrangement where the Church would become responsible for a debt equal to its share of the current BPS deficit (assessed by reference to the up to date cost of securing benefits by the purchase of annuities).

Page 20

continued...

DUNCHURCH BAPTIST CHURCH NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021

20. CAPITAL COMMITMENTS

Contracted but not provided for in the financial statements 2021
£
40,029		 2020
£
96,620

The Charity is committed to paying the Phase 1 valuation costs of the new Church building in progress at the year end. This amounts to £40,029 which is due for payment in the year ended 31 March 2022.

21. OTHER FINANCIAL COMMITMENTS

The Charity has a commitment in place in the Terms of Settlement for the Minister D Woods, to pay the rental and associated property costs while he remains a Minister. The costs for the Minister's property for the current year are displayed separately within the financial statements and totalled £11,273. These costs are not expected to change materially for the next financial year.

22. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 March 2021. [2020: Nil]

Page 21

DUNCHURCH BAPTIST CHURCH

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2021

INCOME AND ENDOWMENTS
Donations and legacies
General giving
Gift aid
Grants
Giving for special causes
Children & YP work
Catering income
Training
Fundraising giving
Gift day
Investment income
Manse rent
Deposit account interest
Other income
Church building hire
Noah's Ark income
Crisis fund income
Total incoming resources
EXPENDITURE
Raising donations and legacies
Manse maintenance
Manse building insurance
Manse letting expenses
Charitable activities
Unwinding of pension provision
Church electricity
Church water rates
Church telephone
Church building maintenance
Church insurance
Church cleaning
Furnishings and Equipment
Carried forward		 2021
£
115,666
15,775
-
-
-
-
-
1,626
12,025
145,092
10,500
808
11,308
-
-
-
-
156,400
3,066
212
1,512
4,790
(9,331)
1,113
103
625
298
685
637
1,491
(4,379)		 2020
£
121,404
22,461
37,200
964
324
201
160
8,530
10,077
201,321
10,500
4,592
15,092
814
2,476
155
3,445
219,858
340
201
1,386
1,927
(644)
68
101
307
639
679
455
84
1,689

This page does not form part of the statutory financial statements

Page 22

DUNCHURCH BAPTIST CHURCH

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2021

Charitable activities
Brought forward
Post & Stationery
Fellowship and discipleship
Venue hire
Subscriptions
Church weekend
Normal giving
Giving from fundraising
Giving to special causes
Minister's stipend
Minister's pension - dbc share
Minister's house rental
Minister's house utilities and insurance
Minister's expenses
Minister's telephone costs
Minister's council tax
Minister's payroll management
Church catering
CCLI Music copyright licence
Training
Accountancy software
Speaker's expenses
Children & young people's work
Noah's Ark expenditure
Crisis fund expenditure
Bank interest
Bank loan interest
Support costs
Governance costs
Independent examiners fees
Total resources expended
Net income		 2021
£
(4,379)
182
17
1,350
561
-
5,727
6,000
400
23,569
3,479
6,253
2,092
77
521
2,407
130
-
625
20
150
100
519
669
-
43
308
50,820
1,392
57,002
99,398		 2020
£
1,689
323
433
1,880
330
39
5,970
5,450
1,082
22,982
3,171
6,166
2,181
533
544
2,318
130
168
512
536
150
870
953
3,708
500
44
538
63,200
1,416
66,543
153,315

This page does not form part of the statutory financial statements

Page 23