**Charity Registration No. 1186334**
## **CHRISTCHURCH BAPTIST CHURCH**
## **ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 MARCH 2021**
## **CHRISTCHURCH BAPTIST CHURCH**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
|**Trustees**|Mrs P Adams||
|---|---|---|
||Rev C J Brockway||
||Mrs L Callan||
||Mr S Lane||
||Mr D McLellan||
||Mr D Pile||
||Mr A Renshaw||
||Mr B Short||
||Mrs J Simmons||
||Mr R Stapleton||
||Mr K Thomas||
||Mrs C Tremain||
||Rev K Boulton|(Appointed 1 March 2021)|
|**Secretary**|Mrs L Callan||
|**Charity number**|1186334||
|**Principal address**|Side Entrance, 51 Bargates||
||Beaconsfield Road||
||Christchurch||
||Dorset||
||BH23 1QE||
|**Independent examiner**|John Caladine FCCA CTA FCIE||
||Caladine Limited||
||Chantry House||
||22 Upperton Road||
||Eastbourne||
||East Sussex||
||BN21 1BF||
## **CHRISTCHURCH BAPTIST CHURCH**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees report|1 - 5|
|Independent examiner's report|6|
|Statement of financial activities|7 - 8|
|Statement of financial position|9|
|Notes to the financial statements|10 - 21|
## **CHRISTCHURCH BAPTIST CHURCH**
## **TRUSTEES REPORT** _**FOR THE YEAR ENDED 31 MARCH 2021**_
The Trustees present their report and financial statements for the year ended 31 March 2021.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Church's constitution , the Charities Act 2011 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".
## **Objectives and activities**
Christchurch Baptist Church is a fellowship of Christian people affiliated to the Baptist Union of Great Britain. The mission of the Church is summarised by the statement:
We are called to be a worshipping community bearing witness to the love of Christ in the world.
A vision statement, to guide the Church in its planning of activities, has been established as:
A God-centred Church, inspired by His word and Spirit, actively sharing His love and truth with those around us.
Five strategic goals have been established to help us live out our mission and focus our priorities in our ministry and outreach activities. These are to:
- Promote a lifestyle of worship that honours God
- Encourage and enable people to grow as disciples and to disciple others
- Facilitate effective pastoral care and support throughout the Church and beyond
- Show young people and children how a loving God is relevant, radical and relational in their lives today
- Actively build relationships with people outside the Church
Our value statements determine how our mission and ministry are to be delivered:
At Christchurch Baptist Church, we seek increasingly to be:
- A people fully devoted to Jesus
- A people centred on the Bible, seeking God's direction for life
- A people experiencing and expressing God's lavish grace
- A worshipping, relevant and relationally healthy Christian community
- A people living an authentic and prayer-filled lifestyle
- A diverse yet unified people committed to discipleship
- A community where everyone is equipped and resourced to serve
- A people ready and proactive in mission locally and overseas
- A compassionate, hospitable and generous people, serving with spiritual gifts
## **Public benefit**
In undertaking the planning of the many activities undertaken during the year, we have taken into account the Charity Commission guidance on public benefit and in particular in relation to the guidance relating to the advancement of religion. We have sought to ensure that all our activities are available and open to all within the community of Christchurch, both in the provision of services of worship and in provision of community activity and support.
- 1 -
## **CHRISTCHURCH BAPTIST CHURCH**
## **TRUSTEES REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **Achievements and performance**
On 14 November 2019 Christchurch Baptist Church was constituted as a Charitable Incorporated Organisation (CIO). However, the Church continued to operate as an unincorporated organisation under registered number 1132304 until 31 March 2020. An Annual Report for the Year Ended 31 March 2020 was submitted on registered number 1132304 on 28 January 2021. On 01 April 2020 the Church became a CIO, registered number 1186334 and all assets of the old Charity 1132304 were transferred to the CIO. This journey was completed in consultation with the Baptist Union and Anthony Collins Solicitors.
Rev Chris Brockway has been Minister (Team Leader) since March 2012. The Church has continued to see significant success and growth in many areas of ministry during the last financial year, despite the challenges of covid-19. In March 2020, we paused physically gathered services, offering instead a live-streamed service on Sunday mornings. This was a steep-learning curve, requiring investment in new technology, but was embraced wholeheartedly by the Church community, creating a worldwide online presence, not only for regular attendees but also for those beyond our traditional geographical boundaries. As best as we can measure, attendance on Sundays has grown, consistently attracting similar numbers to when we were previously running the two-service model. Our live-streamed service is then available to watch on catch-up which has further increased our reach. Children’s ministry on a Sunday has been online or physically gathered depending upon Government restrictions.
To resolve our building capacity issues and ensure our buildings are fit for future mission and ministry, we submitted a Planning Application to the local BCP authority in February 2020. In September 2020, BCP refused that application (https://planning.christchurchandeastdorset.gov.uk/plandisp.aspx?recno=114968 ) . At a Special Church Members’ Meeting in January 2021, members agreed to appeal the decision in order to challenge the reasons given for refusal, and to gain clarity about what is permissible for any further planning applications. The appeal is due to be heard in May 2021.
Jackie McGregor has served the Church since November 2018 as 0-18’s Ministry Lead. Her ministry has seen much fruit, leading to increased attendance in all areas of youth and children’s ministry. Jackie and a large team of volunteers have built a strong youth and children’s work, both on Sundays and in the weekly programme. During 2020/21, covid restrictions meant that much of Jackie’s ministry had to be delivered virtually, either live or recorded. She has successfully kept meaningful connection with the majority of our 0-18s, despite the challenge of engagement online. Connections with schools via regular assemblies has temporarily ceased until lockdown restrictions are removed.
We remain committed to safeguarding children and adults. During 2020, our Safeguarding Trustees undertook a review of our policies and procedures which were duly adopted.
In March 2020, David Ruilova resigned from his role as the Evangelism & Equipping Lead in order to pursue other ministry interests. There are no immediate plans to appoint another person into this role, especially since our outreach programme has been very disrupted by covid with, for example, outreach to West Christchurch having to be paused during the year.
In December 2020, Kay Boulton completed her training for ministerial accreditation with the Baptist Union. We had the joy of seeing her ordained (via Zoom) in March 2021, at which point she was inducted into her new role as ‘Minister’, serving alongside Chris, with primary responsibility for pastoral care. In January 2021, Kay began a three-year programme as a Newly Accredited Minister with Bristol Baptist College and Southern Counties Baptist Association. Kay has proven outstanding in her ability to preach and lead, alongside her work in pastoral care. Kay is a significant asset to our Leadership Team and, since becoming fully accredited, now serves as a Trustee.
The ministries of Mark Coleman (as cleaner/caretaker) and Julie Dynan (as administrator) are crucial to the support and resourcing of the mission and ministry of the Church. Julie has continued to develop ChurchSuite as our administration platform. This facility has proven invaluable during covid restrictions. In April 2020, the Trustees opted to furlough Mark Coleman, under the Government Coronavirus Job Retention Scheme. Mark was either not working or working reduced hours for the whole of this year, but he will return to work more fully in May 2021.
- 2 -
## **CHRISTCHURCH BAPTIST CHURCH**
## **TRUSTEES REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
Despite covid, a wide range of activities within the Church have continued throughout the year, albeit online rather than physically gathered. The Church family have embraced the use of Zoom during the year and we have been able to welcome significantly more people to our prayer gatherings and various online courses, including Alpha, Prayer 1 and 2, and Growing Older & Wiser. Various ministries have stopped during 2020-21 and may recommence when Government restrictions allow. Moving forward, we anticipate a more hybrid approach to ministry, continuing an online presence where it better serves the mission and ministry of the Church.
H ome Groups are another encouraging area of growth within the Church, and these have been essential in the delivery of our pastoral care during the covid restrictions.
The Church has embraced Creation Care, with a team that are active in promoting and initiating ways to care for our world. The Church was awarded Eco Church Bronze Award in March 2019 and is continuing to pursue the Silver Award, although covid has slowed progress.
We have good links with other local Churches and organisations, including Christchurch Food Bank, and we shared with several churches in a joint online Good Friday service.
Significant financial and prayer support has also continued for overseas and UK-based mission work and projects, with links to Uganda, Peru, eastern Europe and southeast Asia.
## **Financial review**
Regular monthly management accounts are prepared by the Treasurer and presented to the Leadership team and on a quarterly basis to the Church meeting. The main operational bank accounts for the Church are held with The Co-operative Bank PLC and Lloyds Bank PLC.
## **Incoming resources**
Overall incoming resources for the year amounted to £292,082 (2020:£447,028). Regular giving to the general fund reduced by 5% mainly due to the lack of in-person meetings and the effects of covid. Giving to restricted fund projects was significantly less this year.
## **Outgoing resources**
Overall expenditure amounted to £195,991 (2020:£233,680).
## **Financial health**
The overall financial position of the Church is considered satisfactory in the context of planned activities and the reserves policy. The Church holds £53,400 of unrestricted free reserves - this is equivalent to approximately 1 7 weeks of General Fund expenditure.
## **Investment policy**
The Church currently does not hold any significant funds for long-term investment purposes and all funds are held in appropriate bank accounts of varying levels of interest and access, as appropriate to the expected cash flow requirements.
## **Pension provision**
The Church provides pension contributions under a defined contribution pension scheme for its employees. Previous Ministers' of the Church were part of the Baptist Ministers' pension fund which was closed to future accruals of defined benefits on 31 December 2011. In 2018-19 the Church's obligations to fund part of the scheme deficit were fully settled.
- 3 -
## **CHRISTCHURCH BAPTIST CHURCH**
## **TRUSTEES REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **Reserves Policy**
Note 17 to the financial statements show s the assets and liabilities attributable to the various funds by type. Notes 15 and 16 describe the various funds and summarise the year's movements on each fund. Various restricted and designated funds are held for the specified purposes and the fund balances are maintained as appropriate to planned and or contingent activities. The General Fund balance is the primary general reserve of the Church and it is aimed to maintain this in the region of 2 to 5 months expenditure, as viewed by the Trustees as providing an appropriate level of security to the ongoing provision of activities. In order to underline the need to hold a reserve, an amount, approximately equivalent to 2 months expenditure is maintained in a separate bank account, designated General Fund Reserve Account.
## **Plans for future periods**
Although its C harity number and governance structure have changed, the C hurch aims to continue to serve others, ministering effectively to a range of community groups, giving significant focus to work with children and young people, understanding how best to operate within covid-19 restrictions, and to grow numerically. Church members and attendees will be encouraged to grow in the knowledge and application of their faith through weekly teaching, physically or digitally, as well as courses such as Alpha and the Prayer Course.
The C hurch will develop its research and seek opportunities on how it can best serve the area of West Christchurch. It will continue to partner with other C hurches as opportunities arise. We will continue to move forward our plans to make best use of our buildings and sites, in discussion with planning authorities, developing an achievable vision for the near future that will resolve the challenges of limited space and facilities for the numbers gathering as church.
## **Risk management**
The Trustees have assessed the major risks to which the Church is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
## **Structure, governance and management**
Christchurch Baptist Church is a self-governing, self-financing congregation within the Baptist Union of Great Britain. The decision making body, being the Church Meeting, comprises all members of the Church, and is governed in accord with the constitution adopted on 29 January 2009 as part of the process to register with the Charity Commission in accord with the revised rules set out in the Charities Act 2006.
Christchurch Baptist Church was registered with the Charity Commission on 23 October 2009. On 1 April 2020, the Church became a CIO under registered charity number: 1186334.
The Trustees who served during the year and up to the date of signature of the financial statements were:
Mrs P Adams Rev C J Brockway Mrs L Callan Mr B Hallewell (Resigned 31 July 2020) Mr S Lane Mr D McLellan Mr D Pile Mr A Renshaw Mr B Short Mrs J Simmons Mr R Stapleton Mr K Thomas Mrs C Tremain Ms D Henderson (Deceased 30 April 2020) Rev K Boulton (Appointed 1 March 2021)
- 4 -
CHRISTCHURCH BAPTIST CHURCH
TRUSTEES REPORT ICONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
Organisational StruCre
Ministers, Elders, Oeacons, the Secretary and the Treasurer are all Iruslèes of the Charity and Ihelr
appoinlmenl is approved by the membership al a General Meeting, a8 and when required. These offi¢grs
oversee the running ol the affairs ofthe Church.
During the financial year the Church employed five stsff - a Minister. an Adminislralor. a Caretaker, a Minister
in Training and a 0-18 Ministy Lead.
Statsm•nt of Truste0$ r•sponsibiliti•$
The Trustees are fe5ponsible for preparlng the Trustees Report and the financial statements in acrdanCe
th applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted
A¢counling Practice).
The law applicable lo charities in England and Vvales requires the Trustees to prepare financial slalemenl$ for
each financial year which give a true and fair view of the slate of affairs of the Church and of the incoming
resources and application of resources ol the Church for that year.
In preparing these financial statements, the Trustees are required lo..
9elecl 8uil8ble accountln9 policies and then apply them consislenlly.,
observè the m¥lhods and princlples in the Charities SORP..
make judgemen15 and estimates that are reasonable and prudent.,
slate whether applicable accounting standards have been followed. subject lo any material departures
dlsc108ed and explained in the financial stalem8nl$,' and
prepare the financial slalemenls on th• going concern basis unles¥ il is inappropriate to presume that the
charity will ¢tsn11nue in operation.
The TrLbslees are responsible for keeping sufficient accounting reeord$ that disdose with reasonable aUraCY
al any lime the financial position of the Church and enable them to gnsure that the financial slalemen15
Comply with the Charitie5 Act 2011, the Charity (Accounts and Reports) Regulations 2008 and Ihe prc>vision8
of the trust deed. They are also responsible lor safeguarding the assets of the Church and henca for taking
reasonable steps for the prev
pn and del•¢lion of fraud and other irregularities.
The Tru8le
approved by the Board of Trustees.
Mr D McLellan
Trustee
Daled'.15 Juty 2021
uslee
uly 2021
CHRISTCHURCH BAPTIST CHURCH
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF CHRISTCHURCH BAPTIST CHURCH
I report lo the Trustees on my examination of the financial statements of Christchurch Baptist Church Ilhe
Church) for the year ended 31 March 2021.
R•sponsibilitl•s and basis of report
As the Trustees of the Church you are responsible for the preparation of the financial statements In
a¢cordan¢e wlh the requtrem•nls of the Charities Act 2011 Ilhe 2011 Adl.
I report in respect of my examination ol the Church's financial slalements carried out under section 145 of
the 2011 Act. In carrying out my examination I have follow&d all the applicable Directions given by the
Charity Commission under section 14515llbl of the 2011 Act.
Ind&pond•nt axamlner's Btatèm•nt
Since the Church's gros5 in¢ome exceeded £250,000 your examlner musl be a membar of a body listed in
section 145 of the 2011 Act. I confirm thal l am qualified lo undertake the examination because l am a
member ol The Assoclalion Of Chartered Certified Accountants, which is one of the listed bodies.
Your allenlion Is drawn lo the fact that the charlty has prepared financial statements In accordance with
Accounting and Reporting by Charities preparing thèir accounts in accordance wth the Financial Reporting
Stsndard applicable in the UK and Republic of Ireland IFRS 1021 in preference lo the Accounting and
Reportin9 by Charities.. Slalemenl ol Recommended Practice issued on 1 April 2005 which 15 referred lo in
the exlanl regulation5 bul has now been wlhdrawn.
l understand that thi5 has been dc>ne in order for financial slalemenls lo provide a true and lair view in
accordance wilh Generally Accepted Aecounling Practice effe¢b've lor reporting periods beginning on or
after 1 January 2015.
I have completed my examination. I confimi that no mallers have come lo my attenlion in connection wlth
the examinallrjn giving me cause to believe that in any material respect..
accounting records were not kept in respect ol the ChL¢rch a8 required by section 130 of the 2011 A¢l',
or
the financial slalemenls do not aeeord with those records., or
the financial slalemenls do not comply with the applicable requirement$ ¢oncerning the lom and
conlenl ol accoun15 Sel out in the Charities IAccounts and Report91 Regulations 2008 glher than any
requiremenl that the accounts give a true and lalr view which is not a maller considered as part of an
independent examination.
I have no concern5 and have come across no other mallers in connection with the examination to which
attention should be dras¥n in this report in order lo enable a proper understanding of the ffinancial statements
lober&
he
John Caladine FCCA CTA FCIE
Dated..
Caladine Limited
Chantry House
22 Upperton Road
Eaylbourne
East Sussex
BN21 1 BF
## **CHRISTCHURCH BAPTIST CHURCH**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 31 MARCH 2021**_
|**Current financial year**
**Unrestricted Unrestricted**
**Restricted**
**funds**
**funds**
**funds**
**general d esignated**
**2021**
**2021**
**2021**
**Notes**
**£**
**£**
**£**
**Income from:**
Donations and legacies
**3**
166,394
-
100,788
Charitable activities
**4**
544
-
-
Investments
**5**
17,062
-
381
Other income
**6**
6,913
-
-
**Total income**
190,913
-
101,169
**Expenditure on:**
Charitable activities
**7**
157,728
3,657
34,606
**Net incoming resources before**
**transfers**
33,185
(3,657)
66,563
Gross transfers between funds
**15**
(25,337)
13,001
12,336
**Net income for the year/**
**Net movement in funds**
7,848
9,344
78,899
Fund balances at 1 April 2020
45,552
1,515,710
208,705
**Fund balances at 31 March 2021**
53,400
1,525,054
287,604|**Total**
**2021**
**£**
267,182
544
17,443
6,913
292,082
195,991
96,091
-
96,091
1,769,967
1,866,058|Total
2020
**£**
421,337
7,463
18,228
-
447,028
233,680
213,348
-
213,348
1,556,619
1,769,967|
|---|---|---|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
- 7 -
## **CHRISTCHURCH BAPTIST CHURCH**
## **STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **Prior financial year**
|**Unrestricted Unrestricted**
**Restricted**
**funds**
**funds**
**funds**
**general d esignated**
**2020**
**2020**
**2020**
**Notes**
**£**
**£**
**£**
**Income from:**
Donations and legacies
**3**
173,686
-
247,651
Charitable activities
**4**
7,463
-
-
Investments
**5**
18,064
-
164
**Total income**
199,213
-
247,815
**Expenditure on:**
Charitable activities
**7**
188,763
2,237
42,680
**Net incoming resources before transfers**
10,450
(2,237)
205,135
Gross transfers between funds
**15**
(19,308)
212,510
(193,202)
**Net income for the year/**
**Net movement in funds**
(8,858)
210,273
11,933
Fund balances at 1 April 2019
54,410
1,305,437
196,772
**Fund balances at 31 March 2020**
45,552
1,515,710
208,705|**Total**
**2020**
**£**
421,337
7,463
18,228
447,028
233,680
213,348
-
213,348
1,556,619
1,769,967|
|---|---|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
- 8 -
CHRISTCHURCH BAPTIST CHURCH
STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2021
2021
2020
Notss
Fixèd assats
Property. plant and equipment
Current as$&ts
Trade and other re1vable$
Cash al bank and in hand
11
1,525,054
1,515,709
12
10,615
337,101
10,758
254,573
347,716
18,712}
265,331
111,0731
Curront Ilabllltl•8
13
Nel Cllrrenl a58ets
341,004
254,258
Total ai$ots1è88 current Ilabllltb•¥
1,866,058
1,789,987
In¢om• funds
Reslricled funds
Unrestricted fund8- designated
Unrestrlcted funds- general
15
16
287,604
1,525,054
53,400
208,705
1.515,710
45.552
1,866,056
1,769,967
The flnaii
enls were approved by the Trustees on 15 Juty 2021
Brockwa
er and Tr
McLellan
Trustso
tee
**CHRISTCHURCH BAPTIST CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **1 Accounting policies**
## **Charity information**
Christchurch Baptist Church is a self-governing, self-financing congregation within the Baptist Union of Great Britain. In the event of the Charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the Charity. The address of the principal office is given in the Charity information on page 1 of these financial statements. The nature of the Charity's operations and principal activities is that of operating a Church.
## **1.1 Accounting convention**
The financial statements have been prepared in accordance with the Church's constitution, the Charities Act 2011 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The Church is a Public Benefit Entity as defined by FRS 102.
The Church has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.
The financial statements are prepared in sterling , which is the functional currency of the Church . Monetary a mounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
## **1.2 Going concern**
At the time of approving the financial statements, the Trustees have a reasonable expectation that the Church has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
## **1.3 Charitable funds**
Unrestricted funds are those primarily arising from general giving to the Church and which are used for the general running costs of the Church or other activities falling within its charitable objects at the discretion of the trustees.
Designated funds are those set aside by the trustees out of the unrestricted general funds for a specific purpose.
Restricted funds are funds that can only be used for particular purposes within the objects of the Church. Restrictions arise when specified by the trustees or donor or when funds are raised for particular restricted purposes.
## **1.4 Income**
Income is recognised when the Church is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
- 10 -
## **CHRISTCHURCH BAPTIST CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **1 Accounting policies (Continued)**
Cash donations are recognised on receipt. Other donations are recognised once the Church has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Legacies are recognised on receipt or otherwise if the Church has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
Rental income is measured at the amount receivable for the period.
Voluntary income is mainly received by way of donations and is included in full when receivable.
All other income is accounted for on an accruals basis.
## **1.5 Expenditure**
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably.
Irrecoverable VAT is charged as an expense against the activity for which the expenditure arose.
Charitable activity costs comprise those costs incurred by the Charity in the delivery of its activities and services. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of the resources, such as allocating property costs by floor area and staff costs on time spent.
Governance costs include those costs associated with meeting the constitutional and statutory requirements of the Charity and include the cost of external examination and costs linked to the strategic management of the Charity.
## **1.6 Property, plant and equipment**
Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bas i s:
|Freehold land and buildings|Nil|
|---|---|
|Fixtures, fittings and furnishings|15% reducing balance basis|
|Multi-Media & Sound Equipment|25% reducing balance basis|
The value of the buildings brought forward have been included in the financial statements at an insurance value at the date the balance sheet was first compiled including fixed assets. The property purchased during 2016 is recorded at cost, this building is currently partially rented to a third party but the trustees consider it is not an investment property. The trustees have considered the carrying value of the freehold property and confirm that the value is correctly stated at the balance sheet date.
- 11 -
## **CHRISTCHURCH BAPTIST CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **1 Accounting policies (Continued)**
## **1.7 Impairment of non-current assets**
At each reporting end date, the Church reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) .
## **1.8 Cash and cash equivalents**
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
## **1.9 Financial instruments**
The Church has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Church 's balance sheet when the Church becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial 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.
## **1.10 Employee benefits**
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the Church is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
## **1.11 Retirement benefits**
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
## **2 Critical accounting estimates and judgements**
In the application of the Church’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
- 12 -
## **CHRISTCHURCH BAPTIST CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **3 Donations and legacies**
|**Unrestricted**
**Restricted**
**funds**
**funds**
**general**
**2021**
**2021**
**£**
**£**
Donations and gifts
164,894
99,788
Legacies receivable
1,500
1,000
166,394
100,788
**Donations and gifts**
General Offerings
31,936
43,170
Covenant & Gift Aided
Offerings
131,820
54,275
Other
1,138
2,343
164,894
99,788|**Total**Unrestricted
Restricted
funds
funds
general
**2021**
2020
2020
**£**
£
£
264,682
173,686
247,651
2,500
-
-
267,182
173,686
247,651
75,106
36,658
30,075
186,095
131,704
213,218
3,481
5,324
4,358
264,682
173,686
247,651|Total
2020
£
421,337
-
421,337
66,733
344,922
9,682
421,337|
|---|---|---|
## **4 Charitable activities**
Room hire
|**2021**|2020|
|---|---|
|**£**|£|
|544|7,463|
## **5 Investments**
|**Unrestricted**
**Restricted**
**funds**
**funds**
**general**
**2021**
**2021**
**£**
**£**
Rental income
16,945
-
Interest receivable
117
381
17,062
381|**Total**Unrestricted
Restricted
funds
funds
general
**2021**
2020
2020
**£**
£
£
16,945
17,440
-
498
624
164
17,443
18,064
164|Total
2020
£
17,440
788
18,228|
|---|---|---|
- 13 -
## **CHRISTCHURCH BAPTIST CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **6 Other income**
|**Unrestricted**
**funds**
**general**
**2021**
**£**
Job Retention Scheme
6,913
**Charitable activities**
**2021**
**£**
Staff costs
111,437
Depreciation and impairment
3,657
Ministry
17,574
Mission
21,082
Establishment
23,086
Administration
16,655
193,491
Share of governance costs (see note 8)
2,500
195,991
**Analysis by fund**
Unrestricted funds - general
157,728
Unrestricted funds - designated
3,657
Restricted funds
34,606
195,991|Total
2020
£
-
2020
£
136,891
2,237
20,352
23,565
29,663
14,827
227,535
6,145
233,680
188,763
2,237
42,680
233,680|
|---|---|
## **7 Charitable activities**
- 14 -
## **CHRISTCHURCH BAPTIST CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
|**8**|**Support costs**
**Support**
**costs**
**Governance**
**costs**
**£**
**£**
Legal and professional
-
-
Independent
Examination Fee
-
2,500
-
2,500
Analysed between
Charitable activities
-
2,500|**Total**
**2021**
Support
costs
Governance
costs
**£**
£
£
-
-
3,845
2,500
-
2,300
2,500
-
6,145
2,500
-
6,145|Total
2020
£
3,845
2,300
6,145
6,145|
|---|---|---|---|
## **9 Trustees**
During the year, 2 Trustees (2020: 1 Trustee) received remuneration in their roles as employees of the Church as authorised by the Church constitution. Rev K Boulton became a trustee on 1 March 2021. The total for the year is disclosed. The total remuneration received was as follows:
|**Name**|**Year Ended 31 March 2021**|**Year Ended 31 March 2021**|**Year Ended 31 March 2020**|**Year Ended 31 March 2020**|
|---|---|---|---|---|
||Salary|Pension
Contributions|Salary|Pension
Contributions|
|Rev C Brockway|£25,607|£2,867|£25,019|£2,804|
|Rev K Boulton|£18,567|£600|£-|£-|
Rev C Brockway was also provided with housing accommodation free of charge in his role as Minister of the Church.
The authority for the payment of Trustees is contained within the CIO constitution.
Other than disclosed above, none of the trustees (or any persons connected with them) received any remuneration or benefits from the Church during the year.
None of the trustees were reimbursed any expenses during the year (2020: none)
The total aggregate donations received from Trustees and related parties amounted to £ 41,252 (2020: £57,194).
- 15 -
## **CHRISTCHURCH BAPTIST CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **10 Employees**
The average monthly number of employees during the year was:
|Average number of staff
**Employment costs**
Wages and salaries
Social security costs
Other pension costs|**2021**
**Number**
5
**2021**
**£**
101,282
3,784
6,371
111,437|**2020**
**Number**
6
**2020**
**£**
122,819
6,497
7,575
136,891|
|---|---|---|
There were no employees whose annual remuneration was £60,000 or more.
## **11 Property, plant and equipment**
|**Cost**
At 1 April 2020
Additions
At 31 March 2021
**Depreciation and impairment**
At 1 April 2020
Depreciation charged in the year
At 31 March 2021
**Carrying amount**
At 31 March 2021
At 31 March 2020|**Freehold**
**land and**
**buildings**
**Fixtures,**
**fittings and**
**furnishings**
**Multi-Media**
**& Sound**
**Equipment**
**£**
**£**
**£**
1,500,847
66,920
36,520
6,025
-
6,976
1,506,872
66,920
43,496
-
53,519
35,058
-
2,010
1,647
-
55,529
36,705
1,506,872
11,391
6,791
1,500,847
13,400
1,462|**Total**
**£**
1,604,287
13,001
1,617,288
88,577
3,657
92,234
1,525,054
1,515,709|
|---|---|---|
All the assets are used for charitable purposes. Freehold properties comprise the main Church and Christian Centre buildings and the Church Manse used by the team leader Church Minister. During 2016 the Church purchased a property nearby to the main Church and has refurbished it. The original cost of the main Church buildings is not known, having been in use by the Church since it was founded in the late 19th century and the Manse was gifted to the Church many years ago. The buildings were brought into the Church financial statements at their insurance valuation in 2005. No market valuation of the freehold properties has been undertaken.
- 16 -
## **CHRISTCHURCH BAPTIST CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **12 Trade and other receivables**
|**Amounts falling due within one year:**
Trade receivables
Gift Aid Tax receivable
Other debtors
Prepayments
**Current liabilities**
Other taxation and social security
Trade payables
Other payables
Accruals and deferred income|**2021**
**£**
447
4,643
1,446
4,079
10,615
**2021**
**£**
1,747
600
274
4,091
6,712|2020
£
56
5,997
-
4,705
10,758
2020
£
2,077
-
919
8,077
11,073|
|---|---|---|
## **13 Current liabilities**
## **14 Retirement benefit schemes**
## **Defined contribution schemes**
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 pension 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 Ministers and some members of the Church staff are eligible to join the Scheme.
From January 2012, pension provision is being made through the Defined Contribution (DC) Plan within the Scheme. In general, members pay 8% of their Pensionable Income and employers pay 6% of members' Pensionable Income into individual pension accounts. 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 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. (Members of the Basic Section pay reduced contributions of 5% of Pensionable Income, and their employers also pay a total of 5%.)
- 17 -
## **CHRISTCHURCH BAPTIST CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **15 Restricted funds**
The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:
|**Balance at**
**1 April 2019**
**£**
Vision Fund
58,318
Specific Giving Funds
820
Pastoral Caring Fund
1,708
Missionary Fund
21,525
Barnabas Fund
268
Open Doors Fund
516
2020 Vision Fund
113,617
196,772|**Movement in funds**
**Income**
**Expenditure**
**Transfers**
**Balance at**
**1 April 2020**
**£**
**£**
**£**
**£**
164
(10,691)
(4,165)
43,626
3,387
(3,469)
-
738
2,980
(2,217)
-
2,471
262
(19,689)
19,308
21,406
1,992
(1,946)
-
314
550
(450)
-
616
238,480
(4,218)
(208,345)
139,534
247,815
(42,680)
(193,202)
208,705|**Movement in funds**
**Income**
**Expenditure**
**£**
**£**
379
-
30,822
(10,785)
1,700
(2,755)
210
(20,140)
-
(100)
-
(600)
68,058
(226)
101,169
(34,606)|**Transfers**
**Balance at**
**31 March 2021**
**£**
**£**
-
44,005
(15,177)
5,598
-
1,416
18,361
19,837
-
214
-
16
9,152
216,518
12,336
287,604|
|---|---|---|---|
## **Vision Fund**
Funds given by Church members and supporters for the restricted purpose of developing the implementation of the vision of the Church to impact in society. Church members in general members meetings agree the scope of vision activity and the allocation of funds for specific purposes.
## **Specific Giving Funds**
When part of general Church service giving is designated for support of a specific organisation or community project funds pass through this restricted fund.
## **Pastoral Caring Fund**
Pastoral care support in the form of interest free loans or small gifts to Church members and others in need within the community.
- 18 -
## **CHRISTCHURCH BAPTIST CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **15 Restricted funds (Continued)**
## **Missionary Fund**
This fund supports various UK and International mission organisations or individuals. 10% of the general Church giving is transferred each year from the general fund to this fund.
## **Barnabas Fund and Open Doors Fund**
Specific Church community outreach and social programme activities run as distinct Church activities, managed by Church groups of those names.
## **2020 Vision Fund**
This was set up to receive funds for the acquisition and refurbishment of 51 Bargates. The Fund will receive continuing donations in order to fund further work on the project .
## **16 Unrestricted funds - designated**
These are unrestricted funds which are material to the Church's activities made up as follows:
||**Balance at**|**Resources**|**Transfers**|**Balance at**|**Resources**|**Transfers**|
**Balance at**|
|---|---|---|---|---|---|---|---|
||**1 April 2019**|**expended**||**1 April 2020**|**expended**||**31 March 2021**|
||**£**|**£**|**£**|**£**|**£**|**£**|
**£**|
|General Fund Fixed Assets|1,305,437|(2,237)|212,510|1,515,710|(3,657)|13,001|
1,525,054|
## **General Fixed Asset Fund**
The amount shown in the designated fund is the total value of the fixed assets less the outstanding value of any outstanding loans used to finance the se purchases. The transfer of £212,5 10 in 2019 to the fund represents the final repayment of the loan plus the cost of new additions in the year. The transfer in 2020 represents the cost of capital additions during the year.
- 19 -
## **CHRISTCHURCH BAPTIST CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **17 Analysis of net assets between funds**
|**Unrestricted**
**funds**
**Designated**
**funds**
**Restricted**
**funds**
**2021**
**2021**
**2021**
**£**
**£**
**£**
Fund balances are represented by:
Property, plant and equipment
-
1,525,054
-
Current assets/(liabilities)
53,400
-
287,604
53,400
1,525,054
287,604|**Total**Unrestricted
funds
Designated
funds
**2021**
2020
2020
**£**
£
£
1,525,054
-
1,515,709
341,004
45,554
-
1,866,058
45,554
1,515,709|Restricted
funds
2020
£
-
208,704
208,704|Total
2020
£
1,515,709
254,258
1,769,967|
|---|---|---|---|
- 20 -
## **CHRISTCHURCH BAPTIST CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **18 Operating lease commitments**
At the reporting end date the Church had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
|Within one year
Between two and five years|**2021**
**£**
792
1,584
2,376|**2020**
**£**
792
2,376
3,168|
|---|---|---|
## **19 Related party transactions**
There were no disclosable related party transactions during the year (2020 - none) .
- 21 -