**Charity registration number 1187741**
## **WEST LEIGH BAPTIST CHURCH**
**ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **WEST LEIGH BAPTIST CHURCH**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
|**Trustees**|M M'Clelland||
|---|---|---|
||A Holmes||
||Reverend J Jacobson||
||N Copus||
||T Simmonds||
||S Culliford||
||M Napper||
||T Lawrence||
||O Olugbodi||
||Reverend W Eugster||
||S Campbell|(Appointed 1 January 2023)|
||I Newton|(Appointed 1 January 2023)|
||S Tollworthy|(Appointed 1 January 2023)|
|**Charity number**|1187741||
|**Principal address**|1150 London Road||
||Leigh-on-Sea||
||Essex||
||SS9 2AJ||
|**Independent examiner**|John Caladine FCCA CTA FCIE||
||Caladine Limited||
||Chantry House||
||22 Upperton Road||
||Eastbourne||
||East Sussex||
||BN21 1BF||
|**Bankers**|CAF Bank Ltd||
||25 Kings Hill||
||West Malling||
||Kent||
||ME19 4JQ||
## **WEST LEIGH BAPTIST CHURCH**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees' report|1 - 4|
|Statement of Trustees' responsibilities|5|
|Independent examiner's report|6|
|Statement of financial activities|7|
|Statement of financial position|8|
|Notes to the financial statements|9 - 23|
## **WEST LEIGH BAPTIST CHURCH**
## **TRUSTEES' REPORT**
## _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
The Trustees present their annual report and financial statements for the year ended 31 December 2022.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Memorandum and Articles of Association, 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**
The church’s objectives as set out in the governing document are:-
1. The advancement of the Christian faith according to the principles of the Baptist denomination.
2. The Church may also advance education and carry out other charitable purposes in the United Kingdom and/or other parts of the world.
The Trustees note that the church is not a building, but a gathering of ordinary people of different ages and backgrounds, whose lives have been changed by Jesus Christ, the Son of God. The New Testament reveals the Church as a community of people, properly taught and cared for, who by loving and serving Jesus Christ, were also committed to love and care for each other and also bring a blessing to the area in which they lived. WLBC, its Trustees and members are committed to the implementation of those New Testament principles. It is not alone in this; it is one of many churches in the area, country and all over the world that is re-discovering the excitement of knowing Jesus Christ. The vision is to see the people of WLBC district and beyond come into this experience of knowing Jesus Christ as their Lord, Saviour and friend.
## **Public benefit**
The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
## **Achievements and performance**
To further the above objectives and vision, the charity's main activities and achievements during 2022 were as follows:-
West Leigh Baptist Church (WLBC) is a thriving community of people who believe in, and follow Jesus Christ, believing Him to be the Son of God; a church of ordinary people who in reading and seeking to obey God’s Word, the Bible, are day by day longing to share the transformative love of God with the local community and beyond.
Our vision Statement of “Jesus in Us, our Church, our Community, our World” remained our clear focus during 2022 along with a set of working principles to help fulfil this: Connecting with God, Connecting with each other and Connecting with the World ; whilst during the previous year WLBC, like many churches experienced significant disruption due to the ongoing Covd-19 pandemic with many activities having to be cancelled or postponed or held using virtual technology, 2022 saw a return to a more normal pattern of activities free from these constraints.
That said, the pandemic provided some opportunities to learn new ways of doing things that the church has continued to benefit from. These included continuing to stream our Sunday morning services on-line which enabled a wider audience to be reached, including those who would otherwise not be able to join in person. Also, there has been more use of technology to conduct meetings (e.g. via Zoom) and a move towards more remote working.
2022 saw the re-launch of Task Groups focusing on specific ministries and areas of service. These facilitate a wider involvement of the church membership in fulfilling the mission of WLBC and reducing the workload of the Ministers who would otherwise be overstretched. The Task Groups are:
- Buildings
- Children, Youth & Families
- Communication
- Finance
- Leadership
- Mission and Discipleship
- 1 -
## **WEST LEIGH BAPTIST CHURCH**
## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
- Pastoral (including Parish Nurse)
- Worship
We have been blessed by the preaching and teaching of God’s word by our two Ministers, one of whom works for four-an-a-half days (75% stipend) and the other for three days (50% stipend). We commenced the search for a new associate minister during 2022 (as a replacement for the Minister on 50% stipend who has been with us on a temporary basis).
We continued to encourage the church fellowship to prayerfully consider others beyond the local church by maintaining links with specific mission activities including:-
- Baptist Missionary Society
- Viva
- Release International
- An Indian orphanage
- Others within the UK and overseas
During the year we have been able to pray and give financial support to these specific ministries, along with other mission partnerships including support to the Baptist Union, Christians against Poverty, Foodbank, Evangelical Alliance and Christian Vision for Men.
The church has many home groups allowing members to have regular contact, prayer and support; these were able to meet again in person in people’s houses.
There were two Alpha Courses held at the church during the year for those seeking to find out more about the Christian faith.
We have also continued to run activities for children and youth during 2022, once again no longer restricted because of the pandemic, and we are blessed with having a significant number of young people engaged in the various groups. This includes a Boys Brigade company although Girls Brigade ceased during 2022 as there were insufficient numbers of volunteers to run it.
Our “Stay and Play” activity for parents and carers with young children also continued and this is a service that is much appreciated in the local community, especially following on from the series of lockdowns and restrictions which have led to feelings of isolation amongst this group.
Parish Nursing continued ministering in the community including amongst the most vulnerable. Weekly activities on a Wednesday included exercise classes, socialising and interaction with others, lunch, a service and activities to promote good mental health. A holiday at home activity also took place one week during the summer which was well attended. The Parish Nursing team also maintained regular contact with many who were continuing to be house-bound.
As a church we were grateful for specific grants provided enabling the Parish Nursing team to work extended hours and in different ways to sustain meeting these needs within the fellowship and in the wider community. The grant providers during 2022 were Alston Family Charitable Fund, Dennis and Kathleen Smith Fund and Rickard Luckin Community Fund (all administered by Essex Community Foundation) and Benefact Trust. Although the pandemic is behind us, this ministry continues to adapt to serving many who still find meeting with others a challenge given the rise in mental health issues among all age groups.
The church has a proper system of ensuring that the vulnerable are cared for and protected via the Safeguarding Children, Young People and Adults at Risk Policy and the use of the Disclosure and Barring Service (DBS). Regular identification of those involved in both working with children and young people and vulnerable adults is carried out and training and support is provided. The system is reviewed annually and updated to keep up with best practice and legislation.
The Church operates a Charity Shop (Cornerstone) located around one quarter of a mile from the church premises. A part time manager and assistant are employed with the shop staffed by a team of very committed volunteers. As well as raising funds for the charity, Cornerstone also provides essential support and friendship to many in the community who come to buy goods but also receive love and care from the people who work there. Cornerstone continued to deliver good levels of turnover and profit to support the building fund. As from 1 January 2023 the activities of Cornerstone have been transferred to a separate legal entity.
- 2 -
## **WEST LEIGH BAPTIST CHURCH**
## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
West Leigh Baptist Church continued to operate a distribution centre for the Southend Area Food Bank open each Saturday morning, with an increasing number of people in the community needing this kind of support due to economic circumstances. The distribution centre was run by a good number of volunteers, including some from the local community.
Community groups were once again able to use the building, activities by external users having been restricted during the pandemic.
Another activity run by WLBC in conjunction with other churches in the Southend City area is COSMOS which offers football training and matches for children; this runs from September to June.
The church continued with plans to complete the building project. Following a survey carried out with all relevant user groups and stakeholders, a scaled down plan was agreed with the church members and submitted to Southend City Council for approval (planning permission was subsequently granted in January 2023).
The church’s numerous activities would not have been able to take place without the hard work of the staff and the many volunteers who give up their time to serve. We are grateful for all this support. We are thankful too that church members and the wider congregation have continued to give generously and sacrificially to support the work of WLBC financially.
It is acknowledged that 2022 saw a sizeable deficit in the general account for the first time in many years. There is confidence that this will not be repeated in 2023 for reasons including:-
- Manse repair and maintenance costs exceeded £20k in the last year but all identified remedial works have now been completed.
- Prices for lettings have been reviewed and increased for 2023.
- The Ministers have reminded the church of their responsibility to support the work of WLBC financially and this has resulted in increased giving.
- Grant application activity to support the work of the Parish Nurse ministry has been stepped up and this is bearing fruit in terms of extra funding.
- The church has already received some small legacies in 2023 and is anticipating receipt of a much larger one; if required, these can be used to support any deficit in the general account if the need arises, although if not, could be applied to the building fund.
- A budget monitoring team has been formed to provide additional focus on ways of cutting costs, increasing income or both.
- Monthly updates of the church’s financial position are now being provided to members and the wider congregation in a simple format with a view to increasing awareness of WLBC’s financial position with a greater degree of immediacy.
## **Financial review**
Unrestricted funds showed a deficit of £57,885 after transfers which compared to a surplus in the previous year of £1,737. Restricted funds showed a surplus, after transfers, of £84,123 (2021: surplus of £26,105).
At 31 December 2022 unrestricted funds amounted to £330,578 and restricted funds were £1,668,578.
The Trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
## **Structure, governance and management**
The charity is a Charitable Incorporated Organisation (CIO). It was registered with the Charity Commission on 4 February 2020 (no. 1187741). The work of the charity was previously carried out by another unincorporated charity of the same name (no. 1132875). On 1 January 2021 the unincorporated charity's assets and activities were transferred to the CIO.
- 3 -
## **WEST LEIGH BAPTIST CHURCH**
## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
The Trustees who served during the year and up to the date of signature of the financial statements were:
D Back (Resigned 31 December 2022) M M'Clelland A Holmes Reverend J Jacobson N Copus T Simmonds S Culliford M Napper T Lawrence O Olugbodi Reverend W Eugster S Campbell (Appointed 1 January 2023) I Newton (Appointed 1 January 2023) S Tollworthy (Appointed 1 January 2023)
Responsibility for setting policy and for determining the parameters within which the charity should operate for making operating decisions rests with the church members' meeting with the appointment of Trustees who meet at least once a month to monitor the activities of the charity. Responsibility for the day to day operation of the charity is headed up by the Trustees led by the Ministers. New Trustees are appointed through the Church Members' Meeting as stipulated by the governing document.
The Trustees' report was approved by the Board of Trustees.
## _**Andy Holmes**_
## **A Holmes**
Trustee Dated: 14 July 2023
- 4 -
## **WEST LEIGH BAPTIST CHURCH**
## **STATEMENT OF TRUSTEES' RESPONSIBILITIES**
## _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
The Trustees are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that year.
In preparing these financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The Trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
- 5 -
## **WEST LEIGH BAPTIST CHURCH**
## **INDEPENDENT EXAMINER'S REPORT**
## **TO THE TRUSTEES OF WEST LEIGH BAPTIST CHURCH**
I report to the Trustees on my examination of the financial statements of West Leigh Baptist Church (the charity) for the year ended 31 December 2022.
## **Responsibilities and basis of report**
As the Trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).
I report in respect of my examination of the charity’s financial statements carried out under section 145 of the 2011 Act. In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
## **Independent examiner's statement**
Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of The Association of Chartered Certified Accountants, which is one of the listed bodies.
Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.
I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
- 1 accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or
- 2 the financial statements do not accord with those records; or
- 3 the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
## **John Caladine FCCA CTA FCIE**
Caladine Limited Chantry House 22 Upperton Road Eastbourne East Sussex BN21 1BF
Dated: 14 July 2023
- 6 -
## **WEST LEIGH BAPTIST CHURCH**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT**
## _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2022**
**2022**
**Notes**
**£**
**£**
**Income from:**
Donations and
legacies
**3**
192,642
79,922
Charitable activities
**4**
33,038
-
Other trading
activities
**5**
-
92,423
Investments
**6**
1,049
16
Other income
**7**
-
-
**Total income**
226,729
172,361
**Expenditure on:**
Raising funds
**8**
240
45,478
Charitable activities
**9**
288,252
38,882
**Total expenditure**
288,492
84,360
**Net (outgoing)/incoming**
**resources before**
**transfers**
(61,763)
88,001
Gross transfers
between funds
**21**
3,878
(3,878)
**Net (expenditure)/income**
**for the year/**
**Net movement in funds**
(57,885)
84,123
Fund balances at 1 January
2022
388,463
1,584,455
**Fund balances at 31**
**December 2022**
330,578
1,668,578|**Total**
**Unrestricted**
**Restricted**
**funds**
**funds**
**2022**
**2021**
**2021**
**£**
**£**
**£**
272,564
189,529
72,005
33,038
18,066
-
92,423
-
60,396
1,065
20
-
-
16,037
2,597
399,090
223,652
134,998
45,718
333
39,793
327,134
229,490
61,192
372,852
229,823
100,985
26,238
(6,171)
34,013
-
7,908
(7,908)
26,238
1,737
26,105
1,972,918
386,726
1,558,350
1,999,156
388,463
1,584,455|**Total**
**2021**
**£**
261,534
18,066
60,396
20
18,634|
|---|---|---|
|||358,650|
|||40,126|
|||290,682|
|||330,808|
|||27,842
-|
|||27,842
1,945,076|
|||1,972,918|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
- 7 -
## **WEST LEIGH BAPTIST CHURCH**
## **STATEMENT OF FINANCIAL POSITION**
## _**AS AT 31 DECEMBER 2022**_
|**Notes**
**Fixed assets**
Property, plant and equipment
**15**
**Current assets**
Trade and other receivables
**16**
Cash at bank and in hand
**Current liabilities**
**17**
Net current assets
**Total assets less current liabilities**
**Non-current liabilities**
**18**
**Net assets**
**Income funds**
Restricted funds
**21**
Unrestricted funds
Designated funds:
Designated funds
**22**
General unrestricted funds|**2022**
**£**
**£**
1,760,106
13,772
318,298
332,070
(18,020)
314,050
2,074,156
(75,000)
1,999,156
1,668,578
30,000
30,000
300,578
330,578
1,999,156|**2021**
**£**
**£**
1,786,967
14,346
253,021
267,367
(6,416)
260,951
2,047,918
(75,000)
1,972,918
1,584,455
30,900
30,900
357,563
388,463
1,972,918|
|---|---|---|
The financial statements were approved by the Trustees on 14 July 2023
## _**Andy Holmes**_
A Holmes **Trustee**
- 8 -
## **WEST LEIGH BAPTIST CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **1 Accounting policies**
## **Charity information**
West Leigh Baptist Church is a Charitable Incorporated Organisation governed by its constitution dated 4 February 2020.
## **1.1 Accounting convention**
The financial statements have been prepared in accordance with the charity's memorandum and articles of association, 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 charity is a Public Benefit Entity as defined by FRS 102.
The charity 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 charity. Monetary amounts 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 charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
## **1.3 Charitable funds**
Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
## **1.4 Income**
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charity 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 charity 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.
The value of donated goods for resale are recognised as income when sold.
- 9 -
## **WEST LEIGH BAPTIST CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **1 Accounting policies (Continued)**
## **1.5 Expenditure**
Liabilities are recognised when a constructive obligation exists, the payment is probable and the obligation can be measured or estimated reliably.
Resources expended are allocated to the particular cost centre to which they relate and include irrecoverable VAT.
## **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 basis:
Church Building 1-2% Straight line Manse 1% Straight line Fixtures, fittings and equipment 20% Straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
## **1.7 Impairment of non-current assets**
At each reporting end date, the charity 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 charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
## _**Basic financial assets**_
Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
- 10 -
## **WEST LEIGH BAPTIST CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **1 Accounting policies (Continued)**
## _**Basic financial liabilities**_
Basic financial liabilities, including trade and other payables and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
## _**Derecognition of financial liabilities**_
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
## **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 charity 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 charity’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.
- 11 -
## **WEST LEIGH BAPTIST CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **3 Donations and legacies**
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2022**
**2022**
**£**
**£**
Donations and gifts
192,642
64,922
Other grants receivable
-
15,000
192,642
79,922
**Donations and gifts**
Donations of cash and similar
158,761
55,350
Income tax recoverable
33,881
9,572
192,642
64,922|**Total**
**Unrestricted**
**Restricted**
**funds**
**funds**
**2022**
**2021**
**2021**
**£**
**£**
**£**
257,564
186,029
61,694
15,000
3,500
10,311
272,564
189,529
72,005
214,111
151,530
52,171
43,453
34,499
9,523
257,564
186,029
61,694|**Total**
**2021**
**£**
247,723
13,811|
|---|---|---|
|||261,534|
|||203,701
44,022|
|||247,723|
- 12 -
## **WEST LEIGH BAPTIST CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **4 Charitable activities**
|Parish Nurse
Room and hall hire|**2022**
**£**
9,425
23,613
33,038|2021
£
7,315
10,751|
|---|---|---|
|||18,066|
## **5 Other trading activities**
||**Restricted**|**Restricted**|
|---|---|---|
||**funds**|**funds**|
||**2022**|**2021**|
||**£**|**£**|
|Sale of donated goods|90,323|58,296|
|Advertising|2,100|2,100|
|Other trading activities|92,423|60,396|
## **6 Investments**
||**Unrestricted**|**Restricted**|**Total **|**Unrestricted**|
|---|---|---|---|---|
||**funds**|**funds**||**funds**|
||**2022**|**2022**|**2022**|**2021**|
||**£**|**£**|**£**|**£**|
|Interest receivable|1,049|16|1,065|20|
|**Other income**|||||
||**Total**|**Unrestricted**|**Restricted**|**Total**|
|||**funds**|**funds**||
||**2022**|**2021**|**2021**|**2021**|
||**£**|**£**|**£**|**£**|
|Net gain on disposal of tangible fixed assets|-|260|-|260|
|Government furlough grants|-|15,777|2,597|18,374|
||-|16,037|2,597|18,634|
## **7 Other income**
- 13 -
## **WEST LEIGH BAPTIST CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **8 Raising funds**
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2022**
**2022**
**£**
**£**
Fundraising and publicity
Other fundraising costs
240
-
Staff costs
-
21,234
Fundraising and publicity
240
21,234
Trading costs
Operating charity shop
-
24,244
240
45,478|**Total**
**Unrestricted**
**Restricted**
**funds**
**funds**
**2022**
**2021**
**2021**
**£**
**£**
**£**
240
333
-
21,234
-
17,230
21,474
333
17,230
24,244
-
22,563
45,718
333
39,793|**Total**
**2021**
**£**
333
17,230|
|---|---|---|
|||17,563|
|||22,563|
||||
|||40,126|
- 14 -
## **WEST LEIGH BAPTIST CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **9 Charitable activities**
|Staff costs
Manse costs
Telephone and Utilities
Church Activities
Catering
Conferences, Training and Pastoral
Children's Work
Evangelism and Publicity
Repairs, Maintenance and Renewals
Computer and IT
Other funds and giving
Miscellaneous expenses
Grant funding of activities (see note 10)
Share of support costs (see note 11)
Share of governance costs (see note 11)
**Analysis by fund**
Unrestricted funds
Restricted funds|**2022**
**£**
135,168
24,248
18,148
12,372
866
524
5,654
767
32,184
2,864
260
356
233,411
29,950
58,471
5,302
327,134
288,252
38,882
327,134|2021
**£**
113,451
25,718
8,438
17,756
681
360
2,951
969
26,368
1,364
1,407
96|
|---|---|---|
|||199,559
29,356
54,916
6,851|
|||290,682|
|||229,490
61,192|
|||290,682|
- 15 -
## **WEST LEIGH BAPTIST CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **10 Grants payable**
|Grants to institutions:
Baptists Together
BMS
CAP
Home Mission
Indian Orphanages
Viva & KM
Foodbank
Release International
Other
Grants to individuals|**2022**
**£**
931
5,450
1,700
2,400
4,224
3,313
2,090
2,900
3,279
26,287
3,663
29,950|**2021**
**£**
898
7,200
1,700
3,900
4,805
2,425
-
2,722
2,700|
|---|---|---|
|||26,350
3,006|
|||29,356|
## **11 Support costs**
|**Support**
**costs**
**Governance**
**costs**
**£**
**£**
Staff costs
26,599
-
Depreciation
26,860
-
Printing, postage and
stationery
2,368
-
Insurance
2,644
-
Legal and professional
-
1,222
Accountancy and
independent examination
-
4,080
58,471
5,302
Analysed between
Charitable activities
58,471
5,302|**Total**
**2022**
Support costs Governance
costs
**£**
£
£
26,599
22,515
-
26,860
27,708
-
2,368
1,826
-
2,644
2,867
-
1,222
-
2,831
4,080
-
4,020
63,773
54,916
6,851
63,773
54,916
6,851|Total
2021
£
22,515
27,708
1,826
2,867
2,831
4,020|
|---|---|---|
|||61,767|
|||61,767|
- 16 -
## **WEST LEIGH BAPTIST CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **12 Trustees**
Reverend J Jacobson received Gross pay (including housing and expense allowance) of £42,075 (2021: £42,975) and pension contributions of £3,493 (2021: £3,493) for his role as Minister.
Reverend W Eugster received Gross pay of £16,669 (2021: £13,761) and pension contributions of £464 (2021: £383) for his role as Minister.
None of the other Trustees received any remuneration or benefits from the charity during the year.
Trustee donations amounted to £28,615 during the year.
## **13 Employees**
The average monthly number of employees during the year was:
|**Employment costs**
Wages and salaries
Social security costs
Other pension costs|**2022**
**Number**
16
**2022**
**£**
170,699
4,336
6,833
181,868|**2021**
**Number**
14|
|---|---|---|
|||**2021**
**£**
139,452
3,849
5,745|
|||149,046|
There were no employees whose annual remuneration was more than £60,000.
## **14 Taxation**
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
- 17 -
## **WEST LEIGH BAPTIST CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
|**15**
**Property, plant and equipment**
**Cost**
At 1 January 2022
At 31 December 2022
**Depreciation and impairment**
At 1 January 2022
Depreciation charged in the year
At 31 December 2022
**Carrying amount**
At 31 December 2022
At 31 December 2021
**16**
**Trade and other receivables**
**Amounts falling due within one year:**
Trade receivables
Other receivables
Prepayments and accrued income
**17**
**Current liabilities**
Deferred income
Trade payables
Other payables
Accruals and deferred income|**Church**
**Building**
**Manse**
**Fixtures,**
**fittings and**
**equipment**
**£**
**£**
**£**
1,668,971
350,000
32,407
1,668,971
350,000
32,407
202,687
35,000
26,725
18,062
3,500
5,298
220,749
38,500
32,023
1,448,222
311,500
384
1,466,285
315,000
5,682
**2022**
**£**
133
12,189
1,450
13,772
**2022**
**Notes**
**£**
**19**
1,566
11,326
1,588
3,540
18,020|**Total**
**£**
2,051,378|
|---|---|---|
|||2,051,378|
|||264,412
26,860|
|||291,272|
|||1,760,106|
|||1,786,967|
|||2021
£
929
11,633
1,784|
|||14,346|
|||2021
£
1,458
840
578
3,540|
|||6,416|
- 18 -
## **WEST LEIGH BAPTIST CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **18 Non-current liabilities**
|**Non-current liabilities**|||
|---|---|---|
||**2022**|2021|
||**£**|£|
|Borrowings|75,000|75,000|
The borrowings above represent monies loaned by a Church member in 2019 due to be repaid in ten years with no required payment prior to tenure expiring. The loan is interest free.
## **19 Deferred income**
|Other deferred income
Deferred income is included in the financial statements as follows:
Deferred income is included within:
Current liabilities
Movements in the year:
Deferred income at 1 January 2022
Released from previous periods
Resources deferred in the year
Deferred income at 31 December 2022|**2022**
**£**
1,566
**2022**
**£**
1,566
1,458
(1,458)
1,566
1,566|**2021**
**£**
1,458|
|---|---|---|
|||**2021**
**£**
1,458|
|||702
(702)
1,458|
|||1,458|
## **20 Retirement benefit schemes**
## **Defined contribution schemes**
The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.
The charge to profit or loss in respect of defined contribution schemes was £6,833 (2021 - £5,745).
- 19 -
## **WEST LEIGH BAPTIST CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **21 Restricted funds**
The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:
|**Balance at**
**1 January 2021**
**£**
Social Enterprise Fund
1,743
Oct '17 Appeal
1,518
Boys Brigade
409
Girls Brigade
689
WLBC Football Team
220
Church W/E
6,067
Building Fund
1,529,960
BF (Cornerstore) Shop
6,762
Other Restricted Funds
6,591
Meg Cannon Film Project
50
Suryapet Orphanage
525
Parish Nurse
3,816
1,558,350|**Movement in funds**
**Incoming**
**resources**
**Resources**
**expended**
**Transfers**
**Balance at**
**1 January 2022**
**£**
**£**
**£**
**£**
250
(1,200)
-
793
217
-
-
1,735
261
(652)
-
18
255
(570)
-
374
-
(220)
-
-
-
-
-
6,067
53,426
(39,778)
21,251
1,564,859
62,993
(40,513)
(23,435)
5,807
3,954
(4,024)
(5,724)
797
900
(920)
-
30
2,431
(2,384)
-
572
10,311
(10,724)
-
3,403
134,998
(100,985)
(7,908)
1,584,455|**Movement in funds**
**Incoming**
**resources**
**Resources**
**expended**
**Transfers**
**Balance at**
**31 December**
**2022**
**£**
**£**
**£**
**£**
3,202
-
-
3,995
-
(1,735)
-
-
925
(606)
-
337
132
(506)
-
-
1,951
(1,298)
-
653
-
-
-
6,067
54,377
(19,925)
43,626
1,642,937
92,431
(46,626)
(47,504)
4,108
3,250
(4,047)
-
-
460
(490)
-
-
633
(1,205)
-
-
15,000
(7,922)
-
10,481
172,361
(84,360)
(3,878)
1,668,578|**Movement in funds**
**Incoming**
**resources**
**Resources**
**expended**
**Transfers**
**Balance at**
**31 December**
**2022**
**£**
**£**
**£**
**£**
3,202
-
-
3,995
-
(1,735)
-
-
925
(606)
-
337
132
(506)
-
-
1,951
(1,298)
-
653
-
-
-
6,067
54,377
(19,925)
43,626
1,642,937
92,431
(46,626)
(47,504)
4,108
3,250
(4,047)
-
-
460
(490)
-
-
633
(1,205)
-
-
15,000
(7,922)
-
10,481
172,361
(84,360)
(3,878)
1,668,578|
|---|---|---|---|
||||1,668,578|
- 20 -
## **WEST LEIGH BAPTIST CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **21 Restricted funds (Continued)**
Social Enterprise Fund is a restricted fund to allow for future expenditure on social needs.
Oct'17 Appeal is a restricted fund used in augmenting the existing building.
Boys Brigade - WLBC has a BB company and where the church Finance team manages their books which we hold as a restricted fund
Girls Brigade - The Girls Brigade company closed down in July 2022.
WLBC Football Team - Church has a youth and senior team and where the church Finance Team manages their books that are held as a restricted fund
Church W/E is a restricted fund to allow for future expenditure on a church weekend away.
Building Fund is a restricted fund to raise funds for the church buildings.
BF (Cornerstone) Shop is a restricted fund to manage the charity shop. The shop was opened mainly to raise funds for the Building Fund plus support other charities through tithing the operating profit. Monies from this fund were transferred to the building fund and the general fund during the year.
Other Restricted Funds is the aggregation of several individually immaterial restricted funds to allow for future expenditure on projects and causes as laid out by the donor placing the restriction at the time of the gift.
Meg Cannon Film Project - This is a restricted fund where gifts can be passed through church giving channels, and where this is managed by the Finance Team.
Suryapet Orphanage - This is an Indian orphanage where WLBC along with 2 other local churches provide financial support from our main income tithe but where this fund enables individuals to provide specific donations which the Finance Team will settle monthly.
Parish Nurse - This fund includes income from specific grants for the work of the Parish Nurse and expenditure which can be applied against it. Other activities are part of the General Fund.
- 21 -
## **WEST LEIGH BAPTIST CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **22 Designated funds**
The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:
## **Movement in funds**
|**Balance at**
**1 January 2021**
**£**
General Reserve
30,000
Manse Rent Fund
900
30,900|**Incoming**
**resources**
**Balance at**
**1 January 2022**
**£**
**£**
-
30,000
-
900
-
30,900|**Resources**
**expended**
**Balance at**
**31 December**
**2022**
**£**
**£**
-
30,000
(900)
-
(900)
30,000|**Resources**
**expended**
**Balance at**
**31 December**
**2022**
**£**
**£**
-
30,000
(900)
-
(900)
30,000|
|---|---|---|---|
||||30,000|
The General Reserve represents funds set aside in accordance with best practice advised by the Charity Commission.
## **23 Analysis of net assets between funds**
|**Unrestricted**
**funds**
**Restricted**
**funds**
**2022**
**2022**
**£**
**£**
Fund balances are represented by:
Property, plant and
equipment
311,884
1,448,222
Current assets/(liabilities)
18,694
295,356
Long term liabilities
-
(75,000)
330,578
1,668,578|**Total Unrestricted**
**funds**
**Restricted**
**funds**
**2022**
**2021**
**2021**
**£**
**£**
**£**
1,760,106
320,682
1,466,285
314,050
67,781
193,170
(75,000)
-
(75,000)
1,999,156
388,463
1,584,455|**Total**
**2021**
**£**
1,786,967
260,951
(75,000)|
|---|---|---|
|||1,972,918|
## **24 Operating lease commitments**
At the reporting end date the charity 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|**2022**
**£**
15,000
5,000
20,000|**2021**
**£**
14,667
20,000|
|---|---|---|
|||34,667|
- 22 -
## **WEST LEIGH BAPTIST CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **25 Events after the reporting date**
On the 1 January 2023 the trading activities of the church's Cornerstone shop were transferred to a separate trading subsidiary, WLBC Cornerstone Limited (company number 14446176).
## **26 Related party transactions**
C Back, wife of D Back, received Gross pay of £5,897 (2021: £1,572) for her role as Children, Youth and Families Co-ordinator.
L Lawrence, wife of T Lawrence, received Gross pay of £11,120 (2021: £14,138) and pension contributions of £334 (2021: £418) for her role as Parish Nurse.
L M'Clelland, wife of M M'Clelland, received Gross pay of £12,440 (2021: £6,327) and pension contributions of £373 (2021: £16) for her role as Bookkeeper.
- 23 -