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2021-03-31-accounts

Hayes Lane Baptist Church

Financial Statements

for the 12 months ending 31 March 2021 Registered Charity No. 1184711

Contents Page
Charity Information 3
Report of the Trustees 4 - 8
Independent Examiner’s Report 9
Receipts and Payments Account 10
Statement of Assets and Liabilities 11
Notes to Accounts 12 - 14

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Hayes Lane Baptist Church

Charity Information

Charity Trustees: All the following individuals acted as trustees for the Charity during the 12 months to 31 March 2021.

David Hircock Elder and Pastor (retired on 30 June 2020) Tim Gardner Elder and Church Evangelist Malcolm Hoad Elder (retired on 28 February 2021) Jonathan Gooch Elder Jonathan Gardner Elder Peter Jermyn Elder (retired on 31 May 2020) Hamish Summers Elder John Gooch Deacon (retired on 4 November 2020) Fiona Strasser Deacon (retired on 30 June 2021) Cheryl Summers Deacon and Treasurer Michael Sherriff Deacon Mark Rees Deacon Hannah Hinton Deacon (appointed on 4 November 2020) Sarah Hollman Deacon (appointed on 4 November 2020)

Charity Registration Number : 1184711 Principal Address : Hayes Lane Baptist Church Hayes Lane Bromley Kent BR2 9EA Independent Examiner : Brian Robson 34 Ravenscraig Road Arnos Grove London N11 1AD

Bankers : CAF Bank Ltd 25 Kings Hill Ave Kings Hill West Malling ME19 4JQ

Hayes Lane Baptist Church

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Report of the Trustees for the period 1 April 2020 to 31 March 2021

The trustees of Hayes Lane Baptist Church (“the Church”) present the trustee annual report and independently examined financial statements for the 12 months ending 31 March 2021. This financial year represents the second accounting period for the Church as a Charitable Incorporated Organisation since it registered with the Charity Commission on 1 August 2019.

Object

The object of Hayes Lane Baptist Church is, for the public benefit, the advancement of the Christian faith in Bromley, Kent and such other parts of the United Kingdom and the world as the trustees may from time to time decide.

Hayes Lane Baptist Church seeks to advance the Christian faith in accordance with Biblical teachings. These include clear and ethical guidelines recognised over a very long period of time. Examples of these include the requirements of the Ten Commandments and the teachings of Jesus on a range of issues. Jesus’s teachings are often summarised in his commands to “love the Lord your God and love your neighbour as yourself”.

Activities and Achievements

During the last year, the Church’s normal activities in furtherance of its charitable purposes have been impacted by COVID-19. In common with many churches in the UK, Hayes Lane Baptist Church took the decision towards the end of March 2020 to close its doors temporarily in light of the UK government’s guidelines to churches. All physical meetings in the church and all mid-week physical meetings were suspended. However, Hayes Lane Baptist Church began to offer digital church services on You Tube for its Sunday morning service, with virtual discussion meetings using Zoom at 6pm and 8pm on Sunday evenings. Most of the mid-week Bible study meetings were able to continue over Zoom video calls. Sunday School ministry also continued through recorded video lessons.

After a thorough risk assessment, introduction of various COVID-19 safety measures, and conducting a couple of pilot services in early September, Hayes Lane Baptist Church re-opened its doors for Sunday morning services on 20 September 2020. The Church has continued to provide live Sunday morning services to the time of this report, except for four Sundays in November when government guidelines mandated closure. No other physical meetings at the church or in home groups were restarted as the Church continued to heed government guidelines on the safe operation of its activities.

Since the Lockdown began in March 2020, the church has had to adapt in lots of ways to continue its ministry. Though many aspects of church-life have been restricted, we are conscious of some of the blessings that the Lord in His goodness has graciously still bestowed on us. Numbers to church business meetings have more than doubled as a result of online provisions. Discussions around God's Word have been more intentional through the Sunday evening Zoom meetings. And we

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have heard of many who would not normally be with us on a Sunday tuning in to the online services.

Recently the numbers attending the Sunday morning services have increased as public confidence has grown alongside the vaccination roll-out. We have been delighted to welcome several visitors. Our Sunday morning worship services have also recently been enhanced by the ability to sing together in the garden at the end of the service.

There are several other activities that the Church has been able to continue despite COVID-19:

In planning all its activities, the trustees have applied the guidance on public benefit issued by the Charity Commission, as well as government guidelines during COVID-19.

Leaders and membership

David Hircock retired as pastor of Hayes Lane Baptist Church on 30 June 2020 after just over 20 years of faithful service. In our previous report we noted that the elders were leading the search for a new pastor, supported by the prayers of the membership. We can report that the Lord has answered our prayers so graciously by connecting the Church with Daniel Jarvis, his wife Justine and son Josiah.

Daniel became full-time pastor on 1 June 2021, moving into the church manse at a similar time. Immediately prior to this he was also employed by the Church for one day a week in April and May 2021, as he transitioned from his previous ministry role at Amyand Park Chapel in Twickenham and studies at London Seminary. The Church is grateful for the Lord’s provision, especially during a difficult time when social contact has been restricted.

The trustees express appreciation for the preaching provided by visiting speakers and by David Hircock on a voluntarily basis in the year while we were without a pastor.

We give thanks to God for his provision in many other ways:

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As well as gaining 3 new members, the Church also had to say a fond farewell to 12 members who have moved away from the Bromley area. We pray the Lord will bless their attendance and service at new churches in other locations, just as we seek to bless new attendees at Hayes Lane Baptist Church over the coming months and years.

Structure, Governance and Management

Hayes Lane Baptist Church successfully applied to become a Charitable Incorporated Organisation (“CIO”) with effect from 1 August 2019. It is registered with the Charities Commission with charity reference number 1184711. Previously it operated as an unincorporated trust. The charity’s governing document is its Constitution. The Constitution cross references the Church rules, which were the governing document for the unincorporated trust.

The trustees consist of the current elders and deacons of the church. New elders are nominated by the current elders and are appointed by the members of the church. Deacons are nominated by church members. They are also appointed by the members of the church and typically serve a three year term unless they are then re-elected at the end of that period.

Hayes Lane Baptist Church is part of an association of Grace Baptist churches in the South East of England. It is also a member church for Grace Baptist Mission, through which it supports a church in Legionowo in Poland.

Reserves Policy

Aside from retaining funds for building and maintenance, it is the reserves policy of Hayes Lane Baptist Church to hold sufficient unrestricted funds to ensure there is cash available to be able to pay its employees and core ministry expenses on a monthly basis. A large proportion of the church’s unrestricted income is very regular with donations generally being fixed amounts paid monthly. The trustees therefore consider the risk of running out of cash to pay its core ministry expenses to be relatively low. Therefore, the reserves policy is to hold around £15,000 in unrestricted funds, which will comfortably cover one month of ministry costs without recourse to incoming donations.

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In addition to this, Hayes Lane Baptist Church aims to designate £10,000 a year from its income into a Reserve Fund to cover larger and sometimes unpredictable expenditure on maintenance of its church building and the church manse. The church has recently completed a building project to extend the amount of space available to accommodate worshippers in the main chapel room. During the last financial year there were significantly large amounts spent from Building Fund reserves that were raised over recent years to complete this project.

Every year the trustees consider, and the church approves, an appropriate budget that seeks to balance income and expenditure or create a surplus or deficit that moves the church’s unrestricted reserves towards a reasonable operating level. As at 31 March 2021 the unrestricted reserves of Hayes Lane Baptist Church were £31,703 [2020: £35,019] are considered by the trustees to be more than the required level, although not inappropriate given uncertainties around future income due to some members moving away and the ongoing impact of COVID-19. A budget for the financial year ending 31 March 2022 was agreed that anticipates a reduction in income and utilises some of the excess reserves.

Financial Review

During the 12 months to 31 March 2021, there has been an underlying net deficit of income over payments of £97,082. This largely reflects significant expenditure of £114,733 from the Building Fund reserves that had been established for the purposes of a lobby extension, together with changes in the baptistry, to accommodate a larger congregation. Additionally, there were total payments of £22,182 from the Reserve Fund for replacement of the hall flooring, redecoration of the main chapel room and various repairs not directly related to the Building Fund project. These Reserve Fund payments were accelerated considering the COVID-19 situation, with the opportunity to do work while many of the normal midweek church activities were suspended during the lockdown periods. They were also possible financially because of the additional funds available due to reduced ministry costs following the retirement of our pastor David Hircock on 30 June 2020.

The Church makes regular quarterly donations to support UK and international Christian mission charities such as Grace Baptist Mission. In the last year it has also been able to budget to allow for ad hoc support of charities with a relief and development aid or mission focus. This is considered by the trustees to be an important part of achieving the Church’s object in places outside our immediate sphere of influence in Bromley. In this accounting period the Church made unrestricted donations of £33,280 excluding local benevolent gifts [2020: £15,538], representing 27.0% [2020: 15.3%] of our unrestricted income. It also passed on restricted donations of £31,408 [2020: £13,134], of which a large part was raised in the Church’s 2020 Harvest Thankoffering supporting 4 causes:

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Investment Policy

The Church’s investment policy is to hold liquid assets with low risk. Currently most of its cash funds are held in its bank accounts with CAF Bank which allow unlimited instant withdrawals and payments. Some of the funds that were received from a past legacy are held with Grace Baptist Charities Limited in the “GBCL Legacy Account”. These are subject to a small annual management charge but earn a better rate of interest than funds held by the Church. There are terms for withdrawal of the funds, but the amount currently held is accessible with two months’ notice.

Key Risks and Uncertainties

In addition to the members who have already moved away, we anticipate a few more movers in the coming months, for positive reasons such as wanting to live closer to family. A key risk is the impact this movement may have on the Church’s income as we lose some regular gifts. This risk has been considered within the budget for the financial year ending 31 March 2022. We trust that longer term those moving into Bromley, together with the impact of outreach activities, will give rise to increased membership and financial support.

The Church is also currently planning its resumption of the mid-week youth groups and other clubs in September, subject to government guidance on COVID-19. Some of the previous leaders of these activities have relocated and there are now opportunities for others to take up new roles of service.

As with all matters in His church, we continue to trust that the Lord will provide our needs.

Approved by the Trustees on 21 July 2021 and signed on its behalf by:

Jonathan Gooch Elder

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Hayes Lane Baptist Church

Independent Examiner’s Report to the Trustees of Hayes Lane Baptist Church

Charity Number 1184711

I report to the trustees on my examination of the accounts of the above charity (“the Charity”) for the 12 months ending 31 March 2021. These are set out on pages 10 to 14 following this report. Responsibilities and Basis of Report

As the charity trustees of the Charity, 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 Charity’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination, I have followed the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent Examiner's Statement

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

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn to enable a proper understanding of the accounts to be reached.

21 July 2021

Brian Robson 34 Ravenscraig Road Arnos Grove London N11 1AD

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Hayes Lane Baptist Church

Receipts and Payments Account - for second accounting period 1 April 2020 to 31 March 2021

Section A Receipts and Payments
Note
A1 Receipts
Donations
Gift Aid receipts
Legacies
Receipts from club activities
Investment income
Rent
2
Other income
3
Sub-total
A2 Asset and investment sales and transfers
Transfer from unincorporated trust
1
Sub-total
Total receipts
A3 Payments
Ministry
4
Manse
Chapel
5
Administration
Donations
6
Youth work/evangelism/church life
Sub-total
A4 Assets and investment purchases and transfers
Purchase of fixed assets
Sub-total
Total payments
Net of receipts over payments
A5 Transfers between funds
A5 Cash funds last year end
Cash funds this year end
9, 10
Unrestricted
Designated
Restricted
Total funds
Total funds
funds
funds
funds
2021
2020
to the nearest
£
to the nearest
£
to the nearest
£
to the nearest
£
to the nearest
£
102,762
-
33,781
136,543
107,661
28,610
-
4,955
33,565
-
-
-
-
-
-
4,673
-
-
4,673
7,567
53
328
-
381
430
19,200
-
-
19,200
12,243
1,221
-
-
1,221
9,571
156,519
328
38,736
195,583
137,472
-
-
-
-
182,228
-
-
-
-
182,228
156,519
328
38,736
195,583
319,700
61,058
-
-
61,058
72,430
548
-
-
548
699
12,076
36,133
100,782
148,991
22,266
1,971
20
-
1,991
303
42,268
-
31,408
73,676
29,428
5,889
-
512
6,401
9,724
123,810
36,153
132,702
292,665
134,850
-
-
-
-
-
-
-
-
-
-
123,810
36,153
132,702
292,665
134,850
32,709
(35,825)
(93,966)
(97,082)
184,850
(36,025)
36,025
-
-
-
35,019
54,347
95,484
184,850
-
31,703
54,547
1,518
87,768
184,850

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Hayes Lane Baptist Church

Receipts and Payments Account - for second accounting period 1 April 2020 to 31 March 2021

Section B Statement of assets and liabilities at the end of the period Section B Statement of assets and liabilities at the end of the period `
Note
B1 Cash funds
Cafcash Account
Gold Account
GBCL Legacy Account
7
Barclays Football Club Account
Cash in hand
Total cash funds
B2 Other monetary assets
B3 Investment assets
B4 Assets retained for the charity's own use
Church premises
Fixtures, fittings & furnishings
Church manse
Total insured assets
8
B5 Liabilities
Manse rent paid in advance
2, 10
Donations to be passed on
9, 10
Unrestricted
Designated
Restricted
funds
funds
funds
to the nearest
£
to the nearest
£
to the nearest
£
7,215
-
-
22,309
28,177
1,518
-
26,370
-
513
-
-
1,666
-
-
Total funds
Total funds
2021
2020
to the nearest
£
to the nearest
£
7,215
24,466
52,004
131,951
26,370
26,062
513
485
1,666
1,886
31,703
54,547
1,518
87,768
184,850
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
4,800
-
-
1,025
528
2,753,652
2,517,784
90,414
86,108
350,200
340,000
3,194,266
2,943,892
4,800
4,800
1,553
(595)
-
5,825
528
6,353
4,205

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Hayes Lane Baptist Church

Receipts and Payments Account - for second accounting period 1 April 2020 to 31 March 2021

NOTES TO THE ACCOUNTS

Note 1: Basis of accounts.

This is the second set of accounts prepared for Hayes Lane Baptist Church as a Charitable Incorporated Organisation ("CIO"). Hayes Lane Baptist Church became a CIO with effect from 1 August 2019, but previously operated as an unincorporated trust under the umbrella of Grace Baptist Charities Limited. The year-end date of 31 March used for the former entity was retained, and hence the first accounting period, shown above as 2020, is for 8 months only. The accounting period labelled 2021 is for a full 12 months.

The cash funds at the last year end are shown as zero in Section A5 for 2020 as the CIO did not exist prior to this accounting period. The amounts shown as "Transfer from unincorporated trust" in Section A2 are the closing balances of Hayes Lane Baptist Church the unincorporated trust as at 31 July 2019. These balances are effectively a gift from the unincorporated trust to the CIO.

These accounts have been prepared on a "Receipts and Payments" basis and accord with Section 133 of the Charities Act 2011. The trustees consider this basis of accounting to be appropriate given the income in both 2021 and 2020 periods was less than £250,000 excluding the transfer of the funds (shown in Section A2 above) from the former unincorporated trust.

Note 2: Manse rental

The Church has rented out its manse since 2013. The rental income shown under Section A1 is net of estate agent fees. It is also net of the deposit of £1,846 that was lodged with the Deposit Protection Service in December 2019 at the start of the current tenancy. In addition, the rental income figure includes early payment of three months rent, which is shown within Designated funds. This early payment of £4,800 is also shown as a Liability under Section B5.

Note 3: Other income

The Other Income shown in A1 above relates to payments from Grace Baptist Charities Limited ("GBCL") for the secondment of Tim Gardner, the Church's employed evangelist. For some years now GBCL has paid the Church for two days per week of Tim's time, to support evangelism work in other churches in the same association. This income was temporarily reduced in 2021 with the Church waiving the income for 11 months due to the impact of COVID-19 reducing the scope for street evangelism.

Note 4: Payments to trustees

The trustees of the Church consist of the current elders and deacons. There was no trustees’ remuneration nor other trustee benefits for the 12 months ending 31 March 2021 [2020: £nil].

However, in both accounting periods two of the elders were employed by the church: David Hircock as Pastor and Tim Gardner as Evangelist. David Hircock retired at the end of June 2020, hence the reduction in ministry costs and Employers National Insurance in 2021 compared to 2020, despite 2020 being a period of only 8 months. Note also that the CIO did not qualify for an Employers NIC Allowance in its first year.

In addition, one of the other elders, Jonathan Gooch, is paid for ad hoc ministry work on a self-employed basis, working on average one or two days per week. Furthermore, in the 2020 accounting period, Jonathan Gooch and one of the elders, Malcolm Hoad, received payment for preaching and other ministry services to cover David Hircock while he was on six weeks sabbatical in September and October 2019. Payments to Jonathan and Malcolm are included under "Self-employed services" below.

The trustees considered carefully and followed the provisions in the church's governing documentation and Charity Commission guidance on the paying of trustees. These four individuals received the following remuneration, benefits and expense payments in this accounting period for their employment and ministry services.

Total 2021 Total 2020
to the nearest to the nearest
£ £
Gross salary 45,067 53,401
Employers NI (net of Allowance) 793 5,781
Pension (incl accrual) 2,347 1,514
Expenses 284 298
Self-employed services 9,331 7,762
57,822 68,756

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Hayes Lane Baptist Church

Receipts and Payments Account - for second accounting period 1 April 2020 to 31 March 2021

Note 5: Chapel costs and Building Fund

Chapel costs included payments of £114,733 [2020: £15,808] from the Building Fund. The 2021 expediture mainly relates to increasing chapel accommodation to increase capacity for Sunday services. This has been achieved by building a lobby at the front of the church, and reorganising the platform and baptistry inside the chapel. The table below shows cash movements in the Building Fund in this accounting period. All restricted funds have now been utilised. Designated funds remain to cover final payments to the contractor plus subsequent installation of Audio Visual capability. In addition the funds held by Grace Baptist Charities on the Church's behalf (see note 7) have been designated by the church for the Building Fund.

Designated Restricted Total 2021 Total 2020
to the nearest to the nearest to the nearest to the nearest
£ £ £ £
Funds held by the Church on 31 March 2020 34,739 94,578 129,317 -
Funds transferred from unincorporated trust - - - 126,645
Donations and Gift Aid restricted for the Building Fund - 6,204 6,204 18,178
Interest on GBCL funds less management charge 308 - 308 302
Final payment for classroom building work - - - (5,043)
Purchase of additional chairs - - - (1,931)
Surveyor fees for lobby extension - (5,580) (5,580) (8,834)
Contractor fees for lobby extension (9,438) (95,202) (104,640) -
HLBC lettering/sign (1,296) - (1,296) -
Platform (3,217) - (3,217) -
Funds designated from unrestricted funds 15,000 - 15,000 -
Total held by the church on 31 March 2021 36,096 - 36,096 129,317
6: Donations paid
Donations made by the Church can be categoried as follows.
Unrestricted Restricted Total 2021 Total 2020
to the nearest to the nearest to the nearest to the nearest
£ £ £ £
UK mission 10,330 4,947 15,277 4,504
International mission 19,450 2,159 21,609 18,265
Relief and development aid 3,500 20,152 23,652 5,903
Benevolent 8,988 4,150 13,138 756
Total 42,268 31,408 73,676 29,428

Note 6: Donations paid

Note 7: Legacy Fund Account held by Grace Baptist Charities Limited

A Legacy Fund Account held by Grace Baptist Charities Limited ("GBCL" or "the Association") on behalf of Hayes Lane Baptist Church was established at the end of 2010 following receipt of the first of two legacy payments from Brian Lane's estate. The remaining amounts held in this fund have previously been designated by the Church for the Building Fund work to increase chapel accommodation. There have been no drawdowns from this Legacy Fund in this accounting period [2020: £nil].

2021 2020
to the nearest to the nearest
£ £
Funds held with Association at start of period 26,062 25,760
Add interest 328 302
Less bank or annual management charges (20) -
Funds held with Association carried forward 26,370 26,062

Note 8: Non-monetary assets held for Church use

The Church is the beneficial owner (subject to the relevant trusts) of the following assets, the legal title to which is held by the custodian trustee (Grace Baptist Charities Limited):

Church premises - Hayes Lane, Bromley, Kent Fixtures, fittings & furnishings therein Church manse - 6 Vincent Close, Bromley, Kent

The asset values shown under B4 have been based on insurance values.

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Hayes Lane Baptist Church

Receipts and Payments Account - for second accounting period 1 April 2020 to 31 March 2021

Note 9: Restricted funds

A large amount of the Church's funds shown in Section A5 were restricted at 31 March 2020. The table below shows a breakdown of those restricted funds, which have reduced significantly during the year due to payments in the Building Fund.

Receipts Payments Total 2021 Total 2020
Funds Funds
to the nearest to the nearest to the nearest to the nearest
£ £ £ £
Donations for external charities 28,632 27,259 779 (595)
Donations for benevolent gifts 3,900 4,150 (250) -
Legacy gift to be used for evangelism - 511 989 1,500
Donations for Building Fund 6,204 100,782 - 94,578
Total restricted funds 38,736 132,702 1,518 95,484

The negative balance in relation to donations for benevolent purposes in 2021, and also donations for external charities in 2020, relates to Gift Aid not yet claimed. When the original restriced donation was passed over from the Church to the recipient, it was expedient to include the anticipated Gift Aid. The Gift Aid is not claimed until after the end of the accounting period.

Note 10: Designated funds

The table below shows a breakdown of the Church's designated funds. These are funds that the Church has decided to use in a certain way but is not restricted to do so by the original donor.

Transfers from Receipts Payments Total 2021 Total 2020
Unrestricted Funds Funds
to the nearest to the nearest to the nearest to the nearest to the nearest
£ £ £ £ £
Building Fund - for lobby/baptistry 15,000 328 13,971 36,096 34,739
Reserve Fund for large items 20,000 - 22,182 12,626 14,808
Early payment of manse rent - - - 4,800 4,800
Donation to OM for course fees 1,025 - - 1,025 -
Total 36,025 328 36,153 54,547 54,347

SIGNATURES

Signed by two trustees on behalf of all of the trustees

Signature
Jonathan Gooch
Cheryl Summers
Print Name and Role
Jonathan Gooch
Elder
Cheryl Summers
Deacon and Treasurer
Date of approval
Jonathan Gooch Jonathan Gooch
Elder
21-Jul-21
Cheryl Summers Cheryl Summers
Deacon and Treasurer
21-Jul-21

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