Newbury Baptist Church
(founded 1640)
Annual Report and Financial Statements for the period 18 November 2020 to 31 December 2021
| Address : | Cheap Street | |
|---|---|---|
| Newbury | ||
| Berkshire | ||
| RG14 5DD | ||
| Charity Commission No. : | 1192404 | |
| Website: | www.newburybaptistchurch.org | |
| Trustees : | Revd R J Littledale (Minister) | |
| Miss B R Davey | ||
| Mrs J I Day | ||
| Mrs J D Ferguson | ||
| Mr C J McAleer | ||
| Mrs B J Moffat (Church Treasurer) | ||
| Bankers : | CAF Bank Ltd | National Westminster Bank |
| 25 Kings Hill Avenue | 30 Market Place | |
| Kings Hill | Newbury | |
| West Malling, Kent | Berkshire | |
| ME19 4JQ | RG14 5AJ | |
| Solicitors : | Anthony Collins Solicitors LLP | |
| 114 Edmund Street | ||
| Birmingham | ||
| B3 2ES | ||
| Independent Examiner: | David Cooke MA(Oxon) FCA FCIE | |
| David Cooke & Co | ||
| Chartered Accountants | ||
| 5 Briar Close | ||
| Banbury | ||
| Oxfordshire | ||
| OX16 9DS |
Newbury Baptist Church Annual Report and Accounts
Page 1 of 16 18 November 2020 to 31 December 2021
Trustees' Report
Newbury Baptist Church
Report of the Trustees for the period 18 November 2020 to 31 December 2021
The Trustees have pleasure in presenting their annual report and the financial statements of Newbury Baptist Church (NBC) for the period 18 November 2020 to 31 December 2021. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the Charities' Statement of Recommended Practice (Charities SORP 2021), FRS 102 and with the Charities Act 2011.
Reference & Administrative Details
Newbury Baptist Church (the "Church") is a registered charity (number 1192404). It was registered on 18 November 2020 and so this is the first report and financial statements prepared for this charity. The Church's address is Cheap Street, Newbury, Berkshire, RG14 5DD. The first trustees of the Church, as noted in its constitution, along with any changes during the period and up to the date of the approval of this report are noted below:
Mr T J Clifton (Treasurer) (resigned 13 July 2021) Miss B R Davey Mrs J I Day Mrs P A Dent (resigned 31 December 2021) Mrs J D Ferguson (elected at church meeting 27 March 2022) Mr N P Freeman (resigned 15 February 2021) Revd R J Littledale (Minister) Mr C J McAleer Mrs B J Moffat (Treasurer) (elected at church meeting 19 September 2021)
Transfer of all assets, liabilities and activities from Newbury Baptist Church (charity number 1134755)
Although this charity was first registered on 18 November 2021, it had no activities until 1 April 2021. On this date all the assets of the unincorporated charity Newbury Baptist Church (charity number 1134755) were transferred to this charity. It should be noted, therefore, that all the activities mentioned in this report took place from 1 April 2021 onwards.
Objectives and activities
As stated in our Constitution, the principal object of the Church is the advancement of the Christian faith according to the principles of the Baptist denomination. The Church may also advance education and carry out other charitable purposes in the United Kingdom and other parts of the world. In particular, the Church seeks to do this through the organisation of meetings to provide occasions for worship, proclamation of the gospel and instruction in the Christian faith as well as outreach events and evangelism to the local Newbury community. The Church is also involved in delivering Christian service through a wide range of activities within the community of Newbury and beyond.
We seek to be involved in the community and look to use our facilities, on a non exclusive basis, to provide social support and assistance. Under normal circumstances, the church's worship services are open to all and the church's buildings are available for use by or hire to people of all faiths and none, and by bodies both Christian and secular. Restrictions due to the Covid-19 pandemic meant that this was not possible during much of 2021. However, at the date of signing this report, organisations associated with the church (including Giggles & Wiggles and 1st Newbury Boys' Brigade) had resumed their use of the church's facilities and there have been bookings by other organisations. Loose Ends continued to use the Morton Hall throughout 2021 and Newbury Street Pastors retained their use of one of our rooms.
Public Benefit
The charity trustees have had due regard to the Charity Commission’s public benefit guidance, as required by s.17 (5) of the Charities Act 2011, and are satisfied that the above activities are for the benefit of the public.
Structure, Governance & Management
The Church is a Charitable Incorporated Organisation (CIO), governed by its Constitution and administered by its Trustees (known as "Deacons" within the Church). Leadership within the Church is provided by the Staff and Diaconate who have control and oversight of the Church.
Newbury Baptist Church Annual Report and Accounts
Page 2 of 16 18 November 2020 to 31 December 2021
Trustees' Report (continued)
All Deacons are elected by the Church Members' Meeting. The Minister is appointed by the Church Members' Meeting and is automatically a Charity Trustee because of his/her role and responsibilities. Day to day administration is provided by the Staff, Minister and Treasurer in their respective fields.
Members of the Church are accepted in accordance with the Constitution which requires them to be or to have been publicy baptised on the profession of faith in Jesus Christ. Alternatively, at the discretion of the Church Members' Meeting, they may be accepted for full membership based on their own public profession of faith. All members are encouraged to take an appropriate part in the spiritual and practical tasks involved in the furtherance of the charitable objective.
The Diaconate meet on a monthly basis to consider spiritual, pastoral and practical aspects of the Church. Staff and other Church members are involved in those meetings where appropriate. Church members’ meetings are due to be held on at least four occasions during the year and meetings were held in May, September, October and November 2021.
The leadership has overall responsibility for ensuring that the charity has an appropriate system of controls, financial and otherwise. They are also responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity.
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 and to provide reasonable assurance that:
-
the charity is operating efficiently and effectively;
-
its assets are safeguarded against unauthorised use or disposition;
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proper records are maintained and financial information used in the charity or for publication is reliable; and
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the charity complies with relevant laws and regulations.
The systems of internal control are designed to provide reasonable, but not absolute, assurance against material misstatement or loss. They include:
-
regular consideration by the Deacons of the financial results;
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delegation of authority and segregation of duties; and
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identification and management of risks.
The major risks as identified by the Leadership have been reviewed and systems set up to mitigate them.
Achievements and Performance
The constantly changing landscape caused by the pandemic has necessitated a rolling programme of adaptation. As a church, we have had to constantly adapt how we meet, when we meet, which activities can be translated online and which must await a day when face-to-face contact is permitted freely once again. We have learnt to hold small group meetings online and to conduct some church business that way too. Indeed, some have found the demands of work and childcare have made it easier to do both of those things in that way. Others have struggled, and long for the day when conversations both great and small can be held the old way, over a cup of coffee and face to face. At the time of writing, the serving of hot drinks after church services has started once again, and the difference in the atmosphere and the degree of connection has been palpable. Planning is under way to provide more opportunities for such simple connection in the near future.
Pastoral care, both formal and informal, has continued throughout this challenging year. In addition to the care provided by the Minister and pastoral team, small groups have done an outstanding job of watching out for each other. Many individuals have given sacrificially of their time and talent to help each other out in times of need. Some of our greatest moments of connection in this past year have been our greatest moments of loss – when the church has come together to remember those who have gone too soon. Discussions are planned between the pastoral team and the small group leaders to ensure that expectations are clear and that burdens are shared appropriately.
Throughout this time, our work with children and young people has continued unabated. During tight lockdown, Chattabox provided materials for use at home, and Ignite now have a hybrid programme of online and in-person meetings. Boys' Brigade has also continued with an adapted format. Sadly, in the Summer, we brought Girls’ Brigade to as close after many years, having concluded that it was not sustainable to continue. There was much heartfelt thanks for all the years of service, and the investment in the lives of the girls who attended.
Newbury Baptist Church Annual Report and Accounts
Page 3 of 16 18 November 2020 to 31 December 2021
Trustees' Report (continued)
The lockdown forced us to learn new ways of communicating our message. We now have the technology to enable us to livestream events and services and, in 2021, sought to enhance the quality of our production. Although we are now able to meet together on a Sunday morning, we will continue to livestream our services and try to build on what we learnt during lockdown.
Finally, after a long period when we have been separated for much of the time, we would like to record our thanks to the many volunteers who give their time, talents, prayers and money to support the ministry of the church. We are grateful to the many people who work tirelessly at the front and behind the scenes to make things happen and are indebted to those who have managed to find new ways of working to enable the various church organisations to continue and to prosper.
Safeguarding (Safe to Grow/Safe to Belong)
Creating a safe environment for everyone involved with and attending events at NBC remains a priority. Safeguarding policies and procedures are in place for those working with children, young people and adults at risk.
Mission
It has been good to continue our support for the Mahon family - working in the Iquitos area of Peru with BMS World Mission. Their work is based around the Nauta Integral Mission Training Centre in the support and formation of pastors. We were also pleased to be able to support the work of Home Mission in the UK, providing support for planting new churches, renewing existing churches and providing mission project grants.
We were also pleased to be able to continue our support of Phil and Pratiksha Rawlings who are awaiting deployment with the Baptist Missionary Society (BMS).
Locallly we supported the work of the Christians Against Poverty (CAP) project in Newbury
The church continues to provide a "home" and base for Newbury Street Pastors, which is now in its 9th year of operation. This initiative was founded primarily by those at NBC who saw the need to provide a Christian presence on our streets on a Saturday night. Its work is recognised by many in the night-time economy, especially the police, as invaluable in helping to keep folk safe and looking out for those sleeping on the streets.
Financial Review
These are the first financial statements prepared for this charity and so no comparative figures can be shown. The charity had no activities until 1 April 2021 when Newbury Baptist Church (charity number 1134755) transferred all its activities and all its assets and liabilities to this charity. The total amount transferred was £1,160,303 made up as follows:
| Fixed Assets 4 Bartlemy Road (at July 20212 valuation) Other (at written down value) Debtors Cash at bank and in hand Investment (deposit with Baptist Union) Creditor (falling due within 1 year) Creditor (falling due after 1 year) |
Unrestricted Restricted Total Funds Funds Funds £ £ £ - 400,000 400,000 26,353 23,451 49,804 4,092 - 4,092 237,644 398,306 635,950 - 94,000 94,000 (5,674) (1,464) (7,138) (16,405) - (16,405) |
|---|---|
| 246,010 914,293 1,160,303 |
(a) Unrestricted Funds
The financial statements show net expenditure of unrestricted funds by the church of £20,021 in the period. Covid-19 restrictions meant that most of the income came from offerings given to the church by church members. More than 50% of expenditure was on employee costs and maintenace costs were high due to the need to spend £2,400 on repair work to the church car park.
Newbury Baptist Church Annual Report and Accounts
Page 4 of 16 18 November 2020 to 31 December 2021
Trustees' Report (continued)
(b) Restricted Funds
The financial statements show net expenditure of restricted funds of £6,468 in the period. The split between the different funds is shown in Note 16 of the Financial Statements.
A total of £12,721 of cash from the Redevelopment Fund was used to purchase the following fixed assets:
| Projector Tally Light system and other tech equipment CCTV equipment Other (Curtains, Creche TV and door intercomm) |
£ 7,028 2,165 1,535 1,993 |
|---|---|
| 12,721 |
Additionally, £1,250 was spent on redecorating the church and hall toilets.
Reserve Policy
The trustees aim to have unrestricted net current assets which at least equate to 6 months of regular expenditure. This has been calculated to be approximately £60k. The figure held at the year end of £217k is significantly greater than this.
However, although not explicitly shown as designated funds, the church had previously earmarked £141k of these funds to be used to provide some of the finance for a redevelopment project. The original redevelopment plan has now been abandoned but, when we can see a clearer post-covid path for the future and it is possible to fully use the church buildings again, it is thought likely that we will still look to using some of this money in making improvements to the church building and finding other ways to develop our links with the local community. The SoFA shows net expenditure of unrestricted funds being £20k in the period, which equates to approximately £27k in a full year. Inflation is expected to be high in 2022 and so it is thought that these funds provide stability for the present and a means of developing the church as our future path becomes clearer.
The Way Ahead
Finally, we need to note that on 20 February our minister, Richard Littledale, announced that he intended to take early retirement and to move away. He will finish his time with us on 31 August 2022.
We are extemely grateful for the 5 years Richard has served the church. Whilst there is personal sadness in losing our friend and minister we are excited for him as he moves forward to new ministry. We know God will continue to use his voice and words in powerful ways.
For ourselves, we rest in the knowledge that God goes before us and is already preparing the way for the next chapter in our history. It is going to need everyone to pull together to keep us moving forward on God's way. There is much work to do and we have already begun mapping out areas and tasks that will be needed. It is our intention to create working groups for different areas of church life to share the load.
The Trustees' Report was approved by the Diaconate (Board of Trustees).
FOR AND ON BEHALF OF THE DEACONS
B J Moffat
Mrs B J Moffat Church Treasurer 24 April 2022
Newbury Baptist Church Annual Report and Accounts
Page 5 of 16 18 November 2020 to 31 December 2021
Independent Examiner's Report to the Trustees of Newbury Baptist Church on the Financial Statements for the period 18 November 2020 to 31 December 2021
I report on the accounts of the Church for the period 18 November 2020 to 31 December 2021, which are set out on the pages 6 to 16.
Respective responsibilities of trustees and independent examiner
The church's trustees are responsible for the preparation of the accounts. The trustees consider that an audit is not required for this period (under section 144(2) of the Charities Act 2011 (the 2011 Act)) and that an independent examination is needed.
It is my responsibility to:
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Examine the accounts under section 145 of the 2011 Act;
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To follow the procedures laid down in the General Directions given by the Charity Commissioners under section 145 (5) (b) of the 2011 Act; and
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To state whether particular matters have come to my attention.
Basis of independent examiner's report
My examination was carried out in accordance with the General Directions given by the Charity Commissioners. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a 'true and fair' view and the report is limited to those matters set out in the statement below.
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
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the accounting records were not kept in accordance with section 130 of the Charities Act; or
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the accounts did not accord with the accounting records; or
• the accounts did not comply with the applicable requirements cooncerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a 'true and fair' view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
D Cooke
David Cooke MA(Oxon) FCA FCIE David Cooke & Co Chartered Accountants 5 Briar Close Banbury Oxfordshire OX16 9DS
25 April 2022
Newbury Baptist Church Annual Report and Accounts
Page 6 of 16 18 November 2020 to 31 December 2021
Newbury Baptist Church Statement of Financial Activities for the period 18 November 2020 to 31 December 2021
| Unrestricted | Restricted | Total | ||
|---|---|---|---|---|
| Funds | Funds | Funds | ||
| Notes | ||||
| £ | £ | £ | ||
| Income and endowments from | ||||
| Donations and legacies | 2 | 61,288 | - | 61,288 |
| Charitable activities | 3 | 5,443 | 1,394 | 6,837 |
| Investments | 4 | 2,298 | 682 | 2,980 |
| Total income and endowments | 69,029 | 2,076 | 71,105 | |
| Expenditure on | ||||
| Charitable activities | ||||
| Employee costs | 5 | 47,529 | - | 47,529 |
| Grants Payable | 6 | 9,395 | - | 9,395 |
| Ministry & Mission | 7 | 1,724 | 1,210 | 2,934 |
| Property and Fabric | 8 | 18,307 | 1,250 | 19,557 |
| Admin and Office support | 9 | 7,164 | - | 7,164 |
| Depreciation | 11 | 4,356 | 4,416 | 8,772 |
| Other Organisations | 16 | - | 1,668 | 1,668 |
| Independent Examiner's fee | 575 | - | 575 | |
| Total Expenditure | 89,050 | 8,544 | 97,594 | |
| Net income/(expenditure) in period / | ||||
| Net movement in funds | (20,021) | (6,468) | (26,489) | |
| Transferred from Newbury Baptist Church (charity 1134755) | 246,010 | 914,293 | 1,160,303 | |
| 225,989 | 907,825 | 1,133,814 | ||
| Total funds brought forward | - | - | - | |
| Total funds carried forward | 225,989 | 907,825 | 1,133,814 |
Newbury Baptist Church Annual Report and Accounts
Page 7 of 16 18 November 2020 to 31 December 2021
Newbury Baptist Church Balance Sheet as at 31 December 2021
| Notes Fixed Assets: Tangible Assets - Property 10 Tangible Assets - Equipment 11 Total fixed assets Current Assets: Debtors 12 Cash at bank and in hand 13 Total current assets Liabilities: Creditors: Amounts falling due within one year 14 Net current assets or liabilities Total assets less current liabilities Creditors: Amounts falling due after more than one year 15 Total net assets The funds of the charity Endowment funds Restricted income funds Unrestricted funds Total charity funds |
Unrestricted Restricted Total Funds Funds Funds 2021 £ £ £ - 400,000 400,000 22,833 31,755 54,588 |
|---|---|
| 22,833 431,755 454,588 |
|
| 3,530 340 3,870 220,285 475,730 696,015 |
|
| 223,815 476,070 699,885 (7,109) - (7,109) |
|
| 216,706 476,070 692,776 |
|
| 239,539 907,825 1,147,364 (13,550) - (13,550) |
|
| 225,989 907,825 1,133,814 |
|
| - 7,695 7,695 - 900,130 900,130 225,989 - 225,989 |
|
| 225,989 907,825 1,133,814 |
The financial statements were approved by the Diaconate (Board of Trustees) and authorised for issue on DATE and are signed on its behalf by:
B J Moffat
R J Littledale
Mrs B J Moffat (Church Treasurer) 24 April 2022
Revd R J Littledale (Minister) 24 April 2022
Newbury Baptist Church Annual Report and Accounts
Page 8 of 16 18 November 2020 to 31 December 2021
Notes to the Financial Statements
Notes forming part of the financial statements for the period 18 November 2020 to 31 December 2021
1. Principal Accounting Policies
(a) Basis of preparation
The financial statements have been prepared in accordance with the Charities Statement of Recommended Practice (Charities SORP 2021), FRS102 and with the Charities Act 2011.
The financial statements are the first to have been prepared since the registration of the charity on 18 November 2020. For this reason no comparative figures can be shown.
Newbury Baptist Church is a registered charity, number 1192404, and meets the definition of a public benefit entity under FRS102. Is is a CIO (Charitable Incorporated Organisation). Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting notes.
(b) Going concern
At the time of approving the accounts, 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.
(c) Charitable funds
Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes.
Restricted funds are subject to specific conditions by donors as to how they may be used. Expenditure that meets these criteria is charged to the funds.
Endowment funds are subject to specific conditions by donors that the capital is maintained by the charity.
(d) Income recognition
All incoming resources are included in the Statement of Financial Activities when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received. The value of services provided by volunteers has not been included.
(e) Donations
Donations are accounted for gross when received. Fixed asset gifts in kind are recognised when receivable and are included at fair value.
(f) Expenditure recognition
All expenditure is accounted for on an accruals basis. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Resources expended include attributable VAT that cannot be recovered.
(g) Other organisations
The accounts include transactions and assets and liabilities for all organisations for which the church is responsible. They do not include the accounts of church groups that owe an affiliation to another body nor those that are informal gatherings of church members.
(h) Fixed assets
The Church building is an historic asset and no valuation has been included in the accounts because of the significant costs involved in such a valuation compared with the additional benefit derived by the users of the accounts in assessing the trustees' stewardship of assets.
No depreciation is charged on the freehold property at 4 Bartlemy Road. The church reviewed its carrying amount at the year end and did not find any indication that it had suffered an impairment loss.
Other equipment, with a value of more than £150, used within the church premises is depreciated on a straight line basis over its "expected lifetime" generally between 3 and 10 years.
Newbury Baptist Church Annual Report and Accounts
Page 9 of 16 18 November 2020 to 31 December 2021
Notes to the Financial Statements (continued)
(i) 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 120 days or less, and bank overdrafts.
(j) Financial instruments
The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.
| 2 Income from Donations and Legacies Donations Offerings and other donations Gift Aid credit Total 3 Income from Charitable Activities Lettings Income Rent on Morton Hall (Loose Ends) Other Organisations ( Note 16 ) Grants and Misc. Total 4 Investment Income Total 5 Employee costs Gross Social Security Costs Employment Allowance Manse costs Pension costs Provision for future DB pension deficit payments ( Note 17(b) ) Travel Total Bank, Building Society and Baptist Union deposit interest |
Unrestricted Restricted Period Funds Funds Total £ £ £ 50,709 - 50,709 10,579 - 10,579 |
|---|---|
| 61,288 - 61,288 |
|
| 1,950 - 1,950 2,362 - 2,362 - 1,394 1,394 1,131 - 1,131 |
|
| 5,443 1,394 6,837 |
|
| 2,298 682 2,980 |
|
| 2,298 682 2,980 |
|
| 39,776 - 39,776 3,047 - 3,047 (3,047) - (3,047) 4,396 - 4,396 3,179 - 3,179 (28) - (28) 206 - 206 |
|
| 47,529 - 47,529 |
The average monthly number of employees during the 9-month period the charity was operating were as follows:
| Ministry (head count) Administration and Cleaning (head count) |
1 2 |
|---|---|
| 3 |
No employee received emoluments in excess of £60,000
Newbury Baptist Church Annual Report and Accounts
Page 10 of 16 18 November 2020 to 31 December 2021
Notes to the Financial Statements (continued)
| 6 Grants Payable BU - Home Mission Baptist Missionary Society The George Müller Charitable Trust (for Phil and Pratiksha Rawlings) Bridge Church (for Christians Against Poverty, Newbury) Newbury Street Pastors Spurgeon's College Mercy Ships UK The Bible Society West Berks Foodbank COINS (Christian Outreach in Newbury Schools) Christian Aid Newbury Samaritans Loose Ends 7 Ministry & Mission Preaching and teaching Youth & Children Flowers and general pastoral care Small Groups Organ tuning Copyright & other licences Other Total 8 Property and Fabric Utilities - Church & Halls Insurance - Church & Halls - Manse Maintenance - Church & Halls - Manse Security Cleaning Redecoration Total |
Unrestricted Restricted Period Funds Funds Total £ £ £ 2,145 - 2,145 2,145 - 2,145 1,875 - 1,875 1,500 - 1,500 375 - 375 375 - 375 140 - 140 140 - 140 140 - 140 140 - 140 140 - 140 140 - 140 140 - 140 |
|---|---|
| 9,395 - 9,395 |
|
| 176 - 176 1,100 - 1,100 391 - 391 57 - 57 - 318 318 - 867 867 - 25 25 |
|
| 1,724 1,210 2,934 |
|
| 5,321 - 5,321 3,234 - 3,234 517 - 517 5,207 - 5,207 170 - 170 1,883 - 1,883 1,975 - 1,975 - 1,250 1,250 |
|
| 18,307 1,250 19,557 |
Newbury Baptist Church Annual Report and Accounts
Page 11 of 16 18 November 2020 to 31 December 2021
Notes to the Financial Statements (continued)
| 9 **10 ** |
Admin and Office support Telephone Printing, stationery and photocopying Child protection Catering Subscriptions Communications Solicitors' Fees Payroll administration Other Total Fixed Assets - Property 4 Bartlemy Road Transfer value from Newbury Baptist Church |
Unrestricted Restricted Period Funds Funds Total £ £ £ 1,268 - 1,268 1,033 - 1,033 252 - 252 64 - 64 890 - 890 1,006 - 1,006 1,302 - 1,302 308 - 308 1,041 - 1,041 |
|---|---|---|
| 7,164 - 7,164 |
||
| Unrestricted Restricted Total £ £ £ - 400,000 400,000 |
||
| - 400,000 400,000 |
4 Bartlemy Road was professionally valued in July 2012. Under the transitioning provisions of FRS102 this value was deemed to be the historical cost and this value was again used when it was transferred on 1 April 2021. The church building is a historic asset and for many years has had no valuation recorded in the accounts; £Nil is, therefore, deemed to be its historical cost.
The Baptist Union Corporation holds both properties on trust for the Church.
11 Fixed Assets - Equipment
| Cost Costs transferred from Newbury Baptist Church (charity number 1134755) Additions Closing Balance 31 Dec 2021 Depreciation Depreciation transferred from Newbury Baptist Church (charity number 1134755) Charge during year Closing Balance 31 Dec 2021 Net Book Value 31 Dec 2021 |
Unrestricted Fixtures, Fixtures, Music & Fittings & Fittings & Sound Equipment Equipment Equipment Total £ £ £ £ 95,240 59,474 14,367 169,081 836 12,721 - 13,557 Restricted |
|---|---|
| 96,076 72,195 14,367 182,638 |
|
| 68,887 36,044 14,347 119,278 4,356 4,396 20 8,772 |
|
| 73,243 40,440 14,367 128,050 |
|
| 22,833 31,755 - 54,588 |
Newbury Baptist Church Annual Report and Accounts
Page 12 of 16 18 November 2020 to 31 December 2021
Notes to the Financial Statements (continued)
| 12 Debtors Gift Aid tax credit Interest Receivable Other Total 13 Cash at bank and in hand Cash on short-term deposit Cash at bank and in hand Cash held with Baptist Union Corp. Total 14 Creditors: Amounts falling due within one year DB Pension deficit provision Other Total 15 Creditors: Amounts falling due after more than one year DB Pension deficit provision |
Unrestricted Restricted Total Funds Funds Funds 2020 £ £ £ 2,302 - 2,302 341 340 681 887 - 887 |
|---|---|
| 3,530 340 3,870 |
|
| 204,794 126,115 330,909 15,491 4,619 20,110 - 344,996 344,996 |
|
| 220,285 475,730 696,015 |
|
| 3,750 - 3,750 3,359 - 3,359 |
|
| 7,109 - 7,109 |
|
| 13,550 - 13,550 |
|
| 13,550 - 13,550 |
16 Restricted Funds
Newbury Baptist Church holds a number of Restricted Funds as follows:
Endowment Funds:
Music Endowment Fund
This is a permanent endowment providing income to be used for the provision of music facilities in the church
Restricted Income Funds:
Restricted Fixed Asset Fund
This fund is held under the terms of the standard Holborn and Fairbairn Trust deeds with the Baptist Union Corporation. Expenditure is controlled by these terms and, traditonally, the funds have been used to purchase property (manses) or to enhance the church building.
Redevelopment Fund
This fund was initiated in 2019 in response to the church's decision to seek to raise funds to enable it to redevelop its premises. The donors of these funds have agreed that the funds can be used for any improvement work to the church's premises.
Alan Royston Music Fund
This fund was established by a bequest from Alan Royston, a former church member. It is a condition of the bequest that it be used to enhance music in the church.
Other Organisations
The church has responsibilities regarding a number of different organisations that are run in the church. The funds held by those organisations are regarded as restricted funds held by the church.
Newbury Baptist Church Annual Report and Accounts
Page 13 of 16 18 November 2020 to 31 December 2021
Notes to the Financial Statements (continued)
Summary of fund movements:
| Summary of fund movements: | ||||
|---|---|---|---|---|
| Transfer from | Closing | |||
| Newbury Baptist | Balance | |||
| Church | **Income ** | Expenditure | 31 Dec 2021 | |
| £ | £ | £ | £ | |
| Music Endowment Fund | 7,695 | 61 | 61 | 7,695 |
| Restricted Fixed Asset Fund | 747,118 | - | 1,913 | 745,205 |
| Redevelopment Fund | 144,370 | 620 | 3,732 | 141,258 |
| Alan Royston Music Fund | 10,217 | - | 1,169 | 9,048 |
| 909,400 | 681 | 6,875 | 903,206 | |
| Other Organisations: | ||||
| Boys' Brigade | 867 | 437 | 627 | 677 |
| Girls' Brigade | 1,842 | - | - | 1,842 |
| GB Senior camp | 699 | 1 | - | 700 |
| GB Junior camp | 447 | 1 | - | 448 |
| Giggles & Wiggles | 368 | 283 | 274 | 377 |
| Women's Fellowship | 72 | 57 | - | 129 |
| First Thursday | 598 | 134 | 368 | 364 |
| Christmas in a Shoe Bag (for Hope Now) | - | 481 | 399 | 82 |
| Total Other Organisations | 4,893 | 1,394 | 1,668 | 4,619 |
| Total Restricted Funds | 914,293 | 2,075 | 8,543 | 907,825 |
The various restricted funds are represented in the Balance Sheet as follows:
| Fixed | Assets | ||||
|---|---|---|---|---|---|
| Property | Equipment | Debtors | Cash | Total | |
| £ | £ | £ | £ | £ | |
| Music Endowment Fund | - | - | - | 7,695 | 7,695 |
| Restricted Fixed Asset Fund | 400,000 | 209 | - | 344,996 | 745,205 |
| Redevelopment Fund | - | 31,546 | 340 | 109,372 | 141,258 |
| Alan Royston Music Fund | - | - | - | 9,048 | 9,048 |
| 400,000 | 31,755 | 340 | 471,111 | 903,206 | |
| Other Organisations: | |||||
| Boys' Brigade | - | - | - | 677 | 677 |
| Girls' Brigade | - | - | - | 1,842 | 1,842 |
| GB Senior camp | - | - | - | 700 | 700 |
| GB Junior camp | - | - | - | 448 | 448 |
| Giggles & Wiggles | - | - | - | 377 | 377 |
| Women's Fellowship | - | - | - | 129 | 129 |
| First Thursday | - | - | - | 364 | 364 |
| Christmas in a Shoe Bag (for Hope Now) | 82 | 82 | |||
| Total Other Organisations | - | - | - | 4,619 | 4,619 |
| Total Restricted Funds | 400,000 | 31,755 | 340 | 475,730 | 907,825 |
Newbury Baptist Church Annual Report and Accounts
Page 14 of 16 18 November 2020 to 31 December 2021
Notes to the Financial Statements (continued)
17 Pensions
(a) National Employment Savings Trust (NEST)
The Church has set up an account with NEST, the workplace pension scheme set up by the government especially for auto enrolment. Eligible employees are automatically enrolled in the NEST scheme but have the flexibility to opt out if they wish to do so, or to make contributions at a level which suits their circumstances. The church makes corresponding employer contributions in accordance with the statutory requirements. This scheme does not apply to the Minister who is eligible to join the Baptist Pension Scheme (see Note 17(b)). The employer contributions made by the church to this scheme in 2021 were £218.
(b) Baptist Pension Scheme
The Church is a participating employer in the Baptist Pension Scheme (“the Scheme”), which is a separate legal entity administered by the Pension Trustee (Baptist Pension Trust Limited). The assets of the Scheme are held separately from those of the Employer and the other participating employers.
The Scheme, previously known as the Baptist Ministers' Pension Fund, started in 1925, but was closed to future accrual of defined benefits on 31 December 2011. Prior to this date the main benefit provided through the Defined Benefit (DB) plan was a pension of one eightieth of final minimum pensionable income for each year of pensionable service together with additional pension in respect of premiums paid on Pensionable Income in excess of Minimum Pensionable Income.
From January 2012, pension provision is being made through the Defined Contribution (DC) Plan within the Scheme. In general, members pay 8% of their Pensionable Income and employers pay 6% of members’ Pensionable Income into individual pension accounts, which are operated and managed on behalf of the Pension Trustee by Broadstone Corporate Benefits Ltd. In addition, the employer pays a further 4% of Pensionable Income to cover Death in Service Benefits, administration costs, and an associated insurance policy which provides income protection for Scheme members if they are unable to work due to long-term incapacity. This income protection policy has been insured by the Baptist Union of Great Britain with Aviva Limited. Members of the Basic Section pay reduced contributions of 5% of Pensionable Income, and their employers also pay a total of 5%. The total pension cost for the Church in the period in respect of the DC scheme was £2,961.
The Scheme is considered to be a multi-employer scheme as described in Secion 28 of FRS 102. Because it is not possible to attribute the Scheme's assets and liabilities to specific employers, the scheme is accounted for as if the Scheme were a defined contribution scheme.
The Minister is eligible to join the Scheme.
A formal valuation of the DB Plan as at 31 December 2019 was carried out by a professionally qualified Actuary using the Projected Unit Method. At the valuation date the market value of the DB Plan assets was £298 million, whilst the level of assets needed to pay benefits was £316m, giving a deficit of £18m (equivalent to a past service funding level of 94%). The Church and the other participating employers in the DB Plan are collectively responsible for funding this deficit.
The key financial assumptions underlying the valuation were as follows:
| Type of assumption | % pa |
|---|---|
| RPI price inflation assumption | 3.20 |
| CPI price inflation assumption | 2.70 |
| Minimum Pensionable Income Increase Adjustment (above CPI) | 0.50 |
| Pre-retirement assumed invesment returns (gilt yield plus 1.75% pa) | 2.95 |
| Post retirement assumed invesment returns (including benefits matched | 1.70 |
| by the insurance policy) (gilt yield plus 0.5% pa) | |
| Minimum Pensionable Income increases (CPI plus 0.5%) | 3.20 |
| Deferred pension increases (based on RPI) | |
| Pre April 2009 | 3.20 |
| Post April 2009 | 2.50 |
| Pension increases | |
| Based on CPI with an annual floor of 0% and annual cap of 5% | 2.70 |
Newbury Baptist Church Annual Report and Accounts
Page 15 of 16 Notes to the Financial Statements (continued) 18 November 2020 to 31 December 2021
Mortality is assumed in accordance with 80% of the S3NA standard mortality table. Future improvements projected from 2013 in line with the "CMI 2019" projection with a long-term rate of improvement of 1.75% p.a. for males and 1.5% p.a. for females, with the core smoothing parameter and with additional initial mortality improvement factor A=0.5%.
The next actuarial valuation of the DB Plan within the Scheme is due to take place not later than as at 31 December 2022.
In addition to the contributions to the DC plan set out above, where a valuation of the DB Plan reveals a deficit the Trustee and the Council agree to a rate of deficiency contributions from churches and other employers involved in the DB Plan,
Under the current Recovery Plan signed in September 2020, deficiency contributions are payable until 30 June 2026. These contributions are broadly based on the employer's membership at 31 December 2014 and increase annually in line with increases to Minimum Pensionable income as defined in the Rules. The total pension cost to the Church in the year in respect of deficiency contributions paid to the scheme was £2,772.
On 31 March 2021 the charity trustees of the Church signed a Flexible Apportionment Arrangement and Agreement to Participate relating to the Baptist Pension Scheme. This agreement was also signed by The Baptist Union of Great Britain, Baptist Pension Trust limited and Newbury Baptist Church (charity number 1134755). In this agreement the Parties acknowledged that Newbury Baptist Church (charity number 1134755) had no further liability to the Scheme. This liability was effectively transferred to this charity along with all the other assets and liabilities of Newbury Baptist Church (charity number 1134755) on 1 April 2021.
Section 28.11A of FRS 102 requires agreed deficit recovery payments to be recognised as a liability. The movement in the provision is set out in the table below.
| movement in the provision is set out in the table below. | |
|---|---|
| Liability as at 31 March 2021, transferred from Newbury Baptist Church (charity number number 1134755) Remaining change to balance sheet liability* (recognised in SoFA) Balance sheet liability is split: Creditors: Amounts falling due within one year Creditors: Amounts falling due after more than one year Minus deficiency contributions paid Interest cost (recognised in SoFA) Balance sheet liability at year end Balance sheet liability at period start |
£ - 20,100 (2,772) 75 (103) 2021 |
| 17,300 | |
| 3,750 13,550 |
|
| 17,300 |
*Comprises any change in agreed deficit recovery plan and change in assumptions between year-ends.
This liability represents the present value of the deficit contributions agreed as at the accounting date and has been valued using the following assumptions set by reference to the duration of the deficit recovery payments:
| payments: | |
|---|---|
| 31 Dec 2021 | |
| Discount rate | 2.0% |
| Future Increase to Minimum Pensionable Income | 4.10% |
The Church has been advised that the cost for the church to buyout their Pension Scheme liabilities at 31 December 2021 was approximately £85,300.
Newbury Baptist Church Annual Report and Accounts
Page 16 of 16 18 November 2020 to 31 December 2021
Notes to the Financial Statements (continued)
18 Trustee and staff remuneration, related party and other transactions
The Minister has been a trustee since the church was entered on the Register of Charities on 18 November 2020. He was employed by Newbury Baptist Church (charity 1134755) until 31 March 2021 and was then transferred to this charity on 1 April 2021. During 2021 he received gross remuneration from this charity of £23,400, £206 in respect of travel costs and free accommodation at the manse (for which the church paid £4,396 in respect of utility bills). He is accruing benefits under the Baptist pension defined contribution scheme, to which the church paid £2,961 in employer's contributions.
No other trustees received any remuneration or claimed trustee expenses.
In addition to the trustees, the key management personnel of Newbury Baptist Church are the administrator (who since 1 April 2021, is an employee, having transferred from Newbury Baptist Church (charity 1134755) and the assistant lettings officer and the accountant (who are volunteers). The total employee benefits of the key management personnel of the church who are not trustees (I individual) was £12,162.
Close family members of the trustees and key management personnel are regarded as related parties for the purpose of these accounts. The total amount of donations received without conditions from trustees, key management personnel and related parties was £11,505.