Newbury Baptist Church
(founded 1640)
Annual Report and Financial Statements for the year ended 31 December 2022
Address : Cheap Street Newbury Berkshire RG14 5DD Charity Commission No. : 1192404 Website: www.newburybaptistchurch.org Trustees : Mr T J Clifton (Church Treasurer) Mrs C A Cochrane Mrs D Cullen Miss B R Davey Mr P R Davey (Church Secretary) Mrs J I Day Mr T R Dent Mr C J McAleer Mr J F N Rankin Bankers : CAF Bank Ltd 25 Kings Hill Avenue Kings Hill West Malling, Kent ME19 4JQ 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 17 year ended 31 December 2022
Trustees' Report
Newbury Baptist Church
Report of the Trustees for the year ended 31 December 2022
The Trustees have pleasure in presenting their annual report and the financial statements of Newbury Baptist Church (NBC) 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 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 this is the second report and financial statements prepared for this charity. The Church's address is Cheap Street, Newbury, Berkshire, RG14 5DD. The trustees of the Church at the start of the year along with any changes during the year and up to the date of the approval of this report are noted below:
Mr T J Clifton (Treasurer) (elected at church meeting 25 September 2022) Mrs C A Cochrane (elected at church meeting 25 September 2022) Mrs D Cullen (elected at church meeting 25 September 2022) Miss B R Davey Mr P R Davey (Church Secretary) (elected at church meeting 25 September 2022) Mrs J I Day Mr T R Dent (elected at church meeting 25 September 2022) Mrs J D Ferguson (elected at church meeting 27 March 2022, resigned 19 July 2022) Revd R J Littledale (former Minister) (resigned 31 August 2022) Mr C J McAleer Mrs B J Moffat (former Treasurer) (resigned 27 September 2022) Mr J F N Rankin (elected at church meeting 25 September 2022)
Transfer of all assets, liabilities and activities from Newbury Baptist Church (charity number 1134755)
Although this charity was first registered on 18 November 2020, 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 shown in the comparative figures in this report and accounts took place in the period 1 April 2021 to 31 December 2021.
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. Organisations associated with the church (including Giggles & Wiggles and 1st Newbury Boys' Brigade) continue their use of the church's facilities, a fortnightly meeting has been started to support Ukrainian refugees in the Newbury area and there have been bookings by other organisations. Loose Ends continued to use the Morton Hall until they moved to their new premises in April 2022 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 Diaconate who have control and oversight of the Church.
Newbury Baptist Church Annual Report and Accounts Trustees' Report (continued)
Page 2 of 17 year ended 31 December 2022
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, Church Secretay, 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 publicly 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 seven meetings were held in 2022.
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:
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the charity is operating efficiently and effectively;
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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:
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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 year 2022 has primarily been a year of consolidation. Re-establishment of the church activities after the disruption of COVID has been our priority. During lockdown the Church instigated a new Live Streaming approach to Sunday worship and small group meetings via Zoom as a mitigation of COVID constraints. These new approaches provided access and engagement opportunities for the community in a non-constrained world. As a result we have seen these continue as the new established model of how we do Church.
Our minister, Rev Richard Littledale took his 3 month sabbatical and some accrued holiday ahead of his retirement at the end of August. Pressures on the already diminished leadership team became critical as the number of people in the team reduced to 4. In the summer it became apparent that the leadership team would reduce to below the constitutional requirement for the Charity to function. The remaining leaders invited a group of former leaders to join the team and in September the Church elected 6 additional trustees.
Ignite, our work with young teenagers, was rekindled as a regular online meeting during the COVID restrictions. In 2022 this moved seamlessly to a regular “in person” session on Sunday evenings. The work has seen some slight increases in numbers regularly attending during the year. In October the group went away for a weekend of prayer, study and fun together. This has had a strong consolidating effect on the group dynamics and it ends the year as a very exciting platform for both spiritual and numerical growth in 2023.
2022 saw a number of changes in the congregation of the church; with some older members feeling unable to join in person either through infirmity or continued concerns about COVID infections. At the younger end there has been a significant increase in the numbers of families with young children participating regularly in the church. This has increased our number in the Chattabox sessions on Sunday mornings. It has also increased the number and energy levels of adults serving in the church and participating in the small group activities during the week
Newbury Baptist Church Annual Report and Accounts
Page 3 of 17 year ended 31 December 2022
Trustees' Report (continued)
Pastoral care for those unable or unwilling to attend remains a high priority. Those with long histories of faithful service in the church are in increasing need of the contact and engagement that they are no longer able to enjoy in person. The pastoral team has been well supported by retired ministers in the congregation. Pastoral care is needed for the younger members of the church too, this is generally provided by the small groups or informal friendship groups. This is especially true for young families struggling with the demands of childcare, home life and work-life.
Preaching and mission activities in most of 2022 have been held steady. Preaching continued in a planned framework provided by Rev Richard Littledale before he left us. Preachers have since come from many different churches and sources which has enriched us in diversity of viewpoints but limited our ability to mine the full depth of scriptural teaching and how it applies in our lives.
The work of the church has substantially continued during 2022 due largely to the generous and sacrificial giving of time and talents by many members of the church. The trustees feel it is important to recognise the huge importance of the foundational work and effort provided by Rev Richard Littledale. As minister and leader of the church he provided the demonstration of sacrificial giving on his time and talent as well as providing the sustained education and engagement for the church both within the church community and beyond into the wider world. Rev Richard also inspired many members of the church to commit time, expertise and resources to enable the work of the church to be effective. This has also set the platform for what comes next in this Church.
We are extremely grateful for the 5 years Richard 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.
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 Peru with BMS World Mission. They are now moving to the new challenge of developing Peruvian Christians for national and international mission work and, for this reason, relocating from the jungle area of Iquitos to the coastal city of Trujillo. 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 support our friends Arthur and Rita in central Asia.
Locally 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 10th 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
(a) Unrestricted Funds
The financial statements show net income of unrestricted funds by the church of £15k in the year. This is an improvement of £35k compared to the net expenditure of £20k in the prior period. There are a number of exceptional reasons for this:
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1 The Church received two generous bequests totalling £19k. There were no specific restrictions placed on these gifts but it has been decided to spend much of the sum on installing a keyless entry system throughout the church and church hall and in purchasing new NIV bibles for use in the church. Some of the cost for this was paid in 2022 but part of the expenditure was delayed until 2023.
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2 An updated Recovery Plan for the Baptist Pension DB Plan was signed in August 2022. As a result, it has been possible to reduce the provision for future DB pension deficit payments by £15k (see notes 5 and 17(b) in the accounts)
Newbury Baptist Church Annual Report and Accounts
Page 4 of 17 year ended 31 December 2022
Trustees' Report (continued)
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3 The Church has been in interregnum since the Minister's retirement on 31 August 2022. This resulted in a saving in salary and other payments of approx. £11k in the last four months of the year.
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4 Since the Minister's retirement and move away from this area the Church has let the Manse to some Ukrainian refugees. The Church has continued to pay all the utility bills but, although the property has been let at a less than commercial rate, a total of £5k was received in respect of 2022 (see note 3 in the accounts)
These four unexpected events have produced additional income totalling £50k. However, the opportunity has been taken to update the Church's depreciation policy to more realistic levels. As a result the depreciation charge in the year for unrestricted assets was £6k more than it would otherwise have been. In addition, we incurred unexpected expenditure of £6k on necessary repairs to the car park wall.
(b) Restricted Funds
The financial statements show net expenditure of restricted funds by the church of £13k in the year, which is £7k more than the net expenditure of £6k in the prior period. This is mainly caused by an increase of £6k in the depreciation charge (£4k of which is due to the change in the depreciation policy).
A total of £14,006 of cash from the Redevelopment fund was spent on fixed assets: £6,286 on various improvements to the lighting system in the church and £7,720 on a hot water system. £527 from the Alan Royston Music Fund was spent on a set of cymbals.
Reserve Policy
The trustees aim to have unrestricted net current assets which at least equate to 6 months of regular expenditure. This is difficult to estimate during an interregnum and it is hoped that a new minister will be appointed sometime in 2023. However, the £226k net current assets held at the year end are significantly greater than whatever figure this calculation might produce.
Also, it should be noted that, on the appointment of a new minister, the Church is likely to return to a net deficit position. The healthy level of reserves will, therefore, be useful in helping to provide financial stability in future years, especially at a time of rapid inflation. Also, 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, in the future, it is thought possible 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 Way Ahead
We start 2023 in a mood of anticipation. 2022 was a period of consolidation as some who had been active prior to lockdown drew back from Church altogether whilst new people have stepped forward. We have seen an increase in the number of families with small children participating in the Church. In 2023 we expect to add to our membership. Many of those new members will be people who are already active in the church life and contributing to the purpose of our church.
2023 will also see significant effort expended on the appointment of a new minister to lead the spiritual and developmental aspects of the Church. It is anticipated that there will be a new minister in place by the late summer.
The diaconate that we formed in late September 2022 has been working to prepare for the deployment of new engagement activities for the whole church starting in 2023. These include a new focus in the preaching program, a regular smaller roster of preachers enabling the church to dig deeper into the theology. This program is supported by a regular discussion by the whole Church to explore what God is saying to us in and through these short sprints of study. Links are provided with the weekly E-news, reflecting on the content of the sermons. These discussion topics are shared by small groups and other regular meetings and both Youth and Children are included in considering the topics explored. The prayer life of the church has been encouraged to increase through the recent addition of a weekly prayer letter
Newbury Baptist Church Annual Report and Accounts
Page 5 of 17 year ended 31 December 2022
Trustees' Report (continued)
The trustees have recognised that the majority of the church financial transactions, both receiving and paying, are now electronic. There are many ways for individuals to give electronically, including via contactless card payments, Standing Orders and other electronic means via our website or via the office. At the same time we have moved away from accounting for each church activity in discrete auditable accounts. This is providing the church with a single clear view of the cost of all our activities in a single statement.
We look forward to 2023 as a Church with some excitement and anticipation of good things to come.
The Trustees' Report was approved by the Diaconate (Board of Trustees).
FOR AND ON BEHALF OF THE DEACONS
T J Clifton
Mr T J Clifton Church Treasurer 25 April 2023
Newbury Baptist Church Annual Report and Accounts
Page 6 of 17 year ended 31 December 2022
Independent Examiner's Report to the Trustees of Newbury Baptist Church on the Financial Statements for the year ended 31 December 2022
I report on the accounts of the Church for the year ended 31 December 2022, which are set out on the pages 7 to 17.
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 concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a 'true and fair' view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
D Cooke
David Cooke MA(Oxon) FCA FCIE David Cooke & Co Chartered Accountants 5 Briar Close Banbury Oxfordshire OX16 9DS
26 April 2023
Newbury Baptist Church Annual Report and Accounts
Page 7 of 17 year ended 31 December 2022
Newbury Baptist Church Statement of Financial Activities for the year ended 31 December 2022
| 18 Nov | 2020 to 31 | Dec 2021 | |||||
|---|---|---|---|---|---|---|---|
| **Unrestricted ** | Restricted | Total | Unrestricted | Restricted | Total | ||
| Funds | Funds | Funds | Funds | Funds | Funds | ||
| Notes | |||||||
| £ | £ | £ | £ | £ | £ | ||
| Income and endowments from | |||||||
| Donations and legacies | 2 | 104,520 | - | 104,520 | 61,288 | - | 61,288 |
| Charitable activities | 3 | 11,324 | 3,041 | 14,365 | 5,443 | 1,394 | 6,837 |
| Investments | 4 | 8,831 | 908 | 9,739 | 2,298 | 682 | 2,980 |
| Total income and endowments | 124,675 | 3,949 | 128,624 | 69,029 | 2,076 | 71,105 | |
| Expenditure on | |||||||
| Charitable activities | |||||||
| Employee costs | 5 | 35,567 | - | 35,567 | 47,529 | - | 47,529 |
| Grants Payable | 6 | 12,816 | - | 12,816 | 9,395 | - | 9,395 |
| Ministry & Mission | 7 | 5,538 | 2,265 | 7,803 | 1,724 | 1,210 | 2,934 |
| Property and Fabric | 8 | 33,110 | - | 33,110 | 18,307 | 1,250 | 19,557 |
| Admin and Office support | 9 | 10,444 | - | 10,444 | 7,164 | - | 7,164 |
| Depreciation | 11 | 11,724 | 10,592 | 22,316 | 4,356 | 4,416 | 8,772 |
| Other Organisations | 16 | - | 4,613 | 4,613 | - | 1,668 | 1,668 |
| Independent Examiner's fee | 700 | - | 700 | 575 | - | 575 | |
| Total Expenditure | 109,899 | 17,470 | 127,369 | 89,050 | 8,544 | 97,594 | |
| Net income/(expenditure) in year / | |||||||
| Net movement in funds | 14,776 | (13,521) | 1,255 | (20,021) | (6,468) | (26,489) | |
| Transferred from Newbury | Baptist | Church | |||||
| (charity 1134755) | - | - | - | 246,010 | 914,293 | 1,160,303 | |
| Transfers between funds | 2,629 | (2,629) | - | - | - | - | |
| Net Movement in Funds | 17,405 | (16,150) | 1,255 | 225,989 | 907,825 | 1,133,814 | |
| Total funds brought forward | 225,989 | 907,825 | 1,133,814 | - | - | - | |
| Total funds carried forward | 243,394 | 891,675 | 1,135,069 | 225,989 | 907,825 | 1,133,814 |
Newbury Baptist Church Annual Report and Accounts
Page 8 of 17 year ended 31 December 2022
Newbury Baptist Church Balance Sheet as at 31 December 2022
| Notes Unrestricted Restricted Total Funds Funds Funds 2022 £ £ £ Fixed Assets: Tangible Assets - Property 10 - 400,000 400,000 Tangible Assets - Equipment 11 17,466 35,696 53,162 Total fixed assets 17,466 435,696 453,162 Current Assets: Debtors 12 5,004 282 5,286 Cash at bank and in hand 13 223,836 455,697 679,533 Total current assets 228,840 455,979 684,819 Liabilities: Creditors: Amounts falling due within one year 14 (2,912) - (2,912) Net current assets or liabilities 225,928 455,979 681,907 Total assets less current liabilities 243,394 891,675 1,135,069 Creditors: Amounts falling due after more than one year 15 - - - Total net assets 243,394 891,675 1,135,069 The funds of the charity Endowment funds - 7,695 7,695 Restricted income funds - 883,980 883,980 Unrestricted funds 243,394 - 243,394 Total charity funds 243,394 891,675 1,135,069 |
Total Funds 2021 £ 400,000 54,588 |
|---|---|
| 454,588 | |
| 3,870 696,015 |
|
| 699,885 (7,109) |
|
| 692,776 | |
| 1,147,364 (13,550) |
|
| 1,133,814 | |
| 7,695 900,130 225,989 |
|
| 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:
T J Clifton
P R Davey
Mr T J Clifton (Church Treasurer) 25 April 2023
Mr P R Davey (Church Secretary) 25 April 2023
Newbury Baptist Church Annual Report and Accounts
Page 9 of 17 year ended 31 December 2022
Notes forming part of the financial statements for the year ended 31 December 2022
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 second to have been prepared since the registration of the charity on 18 November 2020. The comparative figures are for the period covered by the initial financial statements, which were for the period 18 November 2020 to 31 December 2021.
Newbury Baptist Church is a registered charity, number 1192404, and meets the definition of a public benefit entity under FRS102. It 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.
Newbury Baptist Church Annual Report and Accounts
Page 10 of 17 year ended 31 December 2022
The depreciation policy for Fixtures, Fittings & Equipment has been reviewed. It is now determined that depreciation be provided at the following annual rates to write off each item over its estimated useful life as follows:
Computer, audio & electrical equipment 25% on cost Furniture, fixtures & fittings and musical instruments 20% on cost
The depreciation charge in the year has been adjusted to reflect this new policy and, as a result, the total charge is £10,128 (£6,149 on unrestricted and ££3,979 on restricted fixed assets) more than it would otherwise have been.
(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 Legacies Gift Aid credit Total 3 Income from Charitable Activities Lettings Income Rent on Morton Hall (Loose Ends) Rent on Bartlemy Road 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 |
Total Funds Unrestricted Restricted Total Funds 18 Nov 20 Funds Funds 2022 to 31 Dec 21 £ £ £ £ 72,132 - 72,132 50,709 19,100 - 19,100 - 13,288 - 13,288 10,579 104,520 - 104,520 61,288 4,062 - 4,062 1,950 1,136 - 1,136 2,362 5,480 - 5,480 - - 3,041 3,041 1,394 646 - 646 1,131 11,324 3,041 14,365 6,837 8,831 908 9,739 2,980 8,831 908 9,739 2,980 45,245 - 45,245 39,776 3,308 - 3,308 3,047 (3,201) - (3,201) (3,047) 3,522 - 3,522 4,396 1,656 - 1,656 3,179 (15,108) - (15,108) (28) 145 - 145 206 35,567 - 35,567 47,529 |
|---|---|
Newbury Baptist Church Annual Report and Accounts
Page 11 of 17 year ended 31 December 2022
The average monthly number of employees during the period the charity was operating were as follows:
| Ministry (head count) Administration and Cleaning (head count) as follows: |
18 Nov 20 2022 to 31 Dec 21 0.7 1.0 2.3 2.0 3.0 3.0 |
|---|---|
The minister retired on 31 August 2022. No employee received emoluments in excess of £60,000
| 6 Grants Payable BU - Home Mission Baptist Missionary Society The George Müller Charitable Trust 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 Total 7 Ministry & Mission Preaching and teaching Youth & Children Flowers and general pastoral care Publicity material Small Groups Organ tuning Copyright & other licences Music and audio equipment Total 8 Property and Fabric Utilities - Church & Halls - Bartlemy Road (whilst rented) Insurance - Church & Halls - Manse Maintenance - Church & Halls - Manse Security Cleaning Redecoration Total |
Total Funds Unrestricted Restricted Total Funds 18 Nov 20 Funds Funds 2022 to 31 Dec 21 £ £ £ £ 3,658 - 3,658 2,145 3,658 - 3,658 2,145 2,500 - 2,500 1,875 2,000 - 2,000 1,500 500 - 500 375 500 - 500 375 - - - 140 - - - 140 - - - 140 - - - 140 - - - 140 - - - 140 - - - 140 12,816 - 12,816 9,395 1,755 - 1,755 176 2,216 - 2,216 1,100 1,430 - 1,430 391 137 - 137 - - - - 57 - 331 331 318 - 802 802 867 - 1,132 1,132 25 5,538 2,265 7,803 2,934 6,789 - 6,789 5,321 1,579 - 1,579 - 4,699 - 4,699 3,234 703 - 703 517 11,980 - 11,980 5,207 1,290 - 1,290 170 3,192 - 3,192 1,883 2,878 - 2,878 1,975 - - - 1,250 33,110 - 33,110 19,557 |
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Newbury Baptist Church Annual Report and Accounts
Page 12 of 17 year ended 31 December 2022
| 9 **10 ** |
Unrestricted Restricted Total Funds Total Funds Funds Funds 2022 18 Nov 20 £ £ £ to 31 Dec 21 Admin and Office support Telephone 1,941 - 1,941 1,268 Printing, stationery and photocopying 2,186 - 2,186 1,033 Child protection 566 - 566 252 Catering 235 - 235 64 Subscriptions 715 - 715 890 Communications 1,281 - 1,281 1,006 Solicitors' Fees 420 - 420 1,302 Recruitment 1,631 - 1,631 - Payroll administration 418 - 418 308 Other 1,051 - 1,051 1,041 Total 10,444 - 10,444 7,164 Fixed Assets - Property Closing Closing Balance Balance Unrestricted Restricted 2022 2021 £ £ £ £ 4 Bartlemy Road Transfer value from Newbury Baptist Church - 400,000 400,000 400,000 - 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 - Fixtures, Fittings & Equipment
| Unrestricted Fixtures, Fixtures, Music & Fittings & Fittings & Sound Equipment Equipment Equipment Total £ £ £ £ Cost Opening Balance 1 Jan 2022 96,076 72,195 14,367 182,638 Costs transferred from Newbury Baptist Church (charity number 1134755) - - - - Additions 6,478 14,006 527 21,011 Disposals (10,394) - - (10,394) Closing Balance 31 Dec 2022 92,160 86,201 14,894 193,255 Depreciation Opening Balance 1 Jan 2022 73,243 40,440 14,367 128,050 Depreciation transferred from Newbury Baptist Church (charity number 1134755) - - - - Charge during year 11,724 10,504 88 22,316 Eliminated on disposal (10,273) - - (10,273) Closing Balance 31 Dec 2022 74,694 50,944 14,455 140,093 Net Book Value 31 Dec 2022 17,466 35,257 439 53,162 Net Book Value 31 Dec 2021 22,833 31,755 - 54,588 Restricted |
Total Funds 18 Nov 20 to 31 Dec 21 £ - 169,081 13,557 - |
|---|---|
| 182,638 | |
| - 119,278 8,772 - |
|
| 128,050 | |
| 54,588 | |
Newbury Baptist Church Annual Report and Accounts
Page 13 of 17 year ended 31 December 2022
| Unrestricted | Restricted | Total Funds | Total Funds | ||
|---|---|---|---|---|---|
| Funds | Funds | 2022 | 2021 | ||
| £ | £ | £ | £ | ||
| **12 ** | Debtors | ||||
| Gift Aid tax credit | 2,830 | - | 2,830 | 2,302 | |
| Interest Receivable | 274 | 282 | 556 | 681 | |
| Other | 1,900 | - | 1,900 | 887 | |
| Total | 5,004 | 282 | 5,286 | 3,870 | |
| **13 ** | Cash at bank and in hand | ||||
| Cash on short-term deposit | 199,796 | 110,283 | 310,079 | 330,909 | |
| Cash at bank and in hand | 24,040 | 418 | 24,458 | 20,110 | |
| Cash held with Baptist Union Corp. | - | 344,996 | 344,996 | 344,996 | |
| Total | 223,836 | 455,697 | 679,533 | 696,015 | |
| **14 ** | Creditors: Amounts falling due within one year | ||||
| DB Pension deficit provision | - | - | - | 3,750 | |
| Other | 2,912 | - | 2,912 | 3,359 | |
| Total | 2,912 | - | 2,912 | 7,109 | |
| **15 ** | Creditors: Amounts falling due after more than one year | ||||
| DB Pension deficit provision | - | - | - | 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, traditionally, 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 have been previously regarded as restricted funds held by the church. However, as the organisations are effectively part of the church, it has been decided that from 1 January 2023 the financial activities of these organisations should be regarded as unrestricted and shown with all the other activities of the church. Accordingly the year ended balances have been transferred from restricted to unrestricted funds. An exception is Boys' Brigade where no decision has yet been made. Also, whilst the church warmly supports the annual "Christmas in a Shoe Box" appeal, it was decided that it would be more appropriate to exclude it in future years as the church has no directly responsibilities relating to this appeal.
Newbury Baptist Church Annual Report and Accounts
Page 14 of 17 year ended 31 December 2022
Summary of fund movements:
| Opening | Transfer to | Closing | |||
|---|---|---|---|---|---|
| Balance | Unrestricted | Balance | |||
| 1 Jan 2022 | Income Expenditure | Funds | 31 Dec 2022 | ||
| £ | £ | £ | £ | £ | |
| Music Endowment Fund | 7,695 | 100 | (100) | - | 7,695 |
| Restricted Fixed Asset Fund | 745,205 | - | (209) | - | 744,996 |
| Redevelopment Fund | 141,258 | 808 | (10,295) | - | 131,771 |
| Alan Royston Music Fund | 9,048 | - | (2,253) | - | 6,795 |
| 903,206 | 908 | (12,857) | - | 891,257 | |
| Other Organisations: | |||||
| Boys' Brigade | 677 | 611 | (870) | - | 418 |
| Girls' Brigade | 1,842 | - | (407) | (1,435) | - |
| GB Senior camp | 700 | 1 | (701) | - | - |
| GB Junior camp | 448 | 1 | (449) | - | - |
| Giggles & Wiggles | 377 | 635 | (535) | (477) | - |
| Women's Fellowship | 129 | 29 | 0 | (158) | - |
| First Thursday | 364 | 523 | (401) | (486) | - |
| Christmas in a Shoe Bag (for | |||||
| Hope Now) | 82 | 596 | (678) | - | - |
| Men's' Breakfast | - | 645 | (572) | (73) | - |
| Total Other Organisations | 4,619 | 3,041 | (4,613) | (2,629) | 418 |
| Total Restricted Funds | 907,825 | 3,949 | (17,470) | (2,629) | 891,675 |
| Summary of fund movements period in previous | period (18 November 2020 to 31 December 2021): | ||||
| Transfer from | Transfer to | Closing | |||
| Newbury Baptist | Unrestricted | Balance | |||
| Church | Income Expenditure | Funds | 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 |
Newbury Baptist Church Annual Report and Accounts
Page 15 of 17 year ended 31 December 2022
The various restricted funds are represented in the Balance Sheet as follows:
| Music Endowment Fund Restricted Fixed Asset Fund Redevelopment Fund Alan Royston Music Fund Other Organisations: Boys' Brigade Total Other Organisations Total Restricted Funds |
Property Equipment Debtors Cash Total £ £ £ £ £ - - - 7,695 7,695 400,000 - - 344,996 744,996 - 35,257 282 96,232 131,771 - 439 - 6,356 6,795 Fixed Assets |
|---|---|
| 400,000 35,696 282 455,279 891,257 |
|
| - - - 418 418 |
|
| - - - 418 418 |
|
| 400,000 35,696 282 455,697 891,675 |
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 2022 were £301 (18Nov20 to 31Dec21 - £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 year in respect of the DC scheme was £1,355 (18Nov20 to 31Dec21 - £2,961).
The Scheme is considered to be a multi-employer scheme as described in Section 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.
Newbury Baptist Church Annual Report and Accounts
Page 16 of 17 year ended 31 December 2022
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 investment returns (gilt yield plus 1.75% pa) | 2.95 |
| Post retirement assumed investment 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 |
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 will commence in 2023 to reflect the position 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, Following the 2019 valuation a Recovery Plan was signed in September 2020 under which deficiency contributions are payable until June 2026. These contributions were broadly based on each employer's membership at 31 December 2014 and increase annually in line with increases to Minimum Pension Income as defined in the Rules.
On 30 June 2022 the Baptist Pension Scheme signed an agreement with the insurance company Just Group ("Just") to secure the DB Plan members' pension benefits. Just are now providing financial backing for all pensions provided through the Scheme's DB Plan and following this transaction, the Scheme no longer has a shortfall. An updated Recovery plan was then signed in August 2022 under which recovery contributions from each participating employer in the DB Plan reduced to £1 per month from August 2022. The total pension cost to the Church in the year in respect of deficiency contributions paid to the scheme was £2,192 (18Nov 20 to 31 Dec 21 - £2,772).
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.
| Liability as at 31 March 2021, transferred from Newbury Baptist Church (charity 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 |
18Nov20 to 31Dec21 £ £ 17,300 - - 20,100 (2,192) (2,772) 324 75 (15,432) (103) - 17,300 - 3,750 - 13,550 - 17,300 2022 |
|---|---|
*Comprises any change in agreed deficit recovery plan and change in assumptions between year-ends.
Newbury Baptist Church Annual Report and Accounts
Page 17 of 17 year ended 31 December 2022
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:
31 Dec 2022 31 Dec 2021 Discount rate 5.7% 2.0% Future Increase to Minimum Pensionable Income - 4.10%
Consequent upon the departure of the Minister from the Church in 2022, the Church had a cessation event under Section 75 of the Pensions Act 1995. This makes the Church liable for the proportion of the overall deficit (assessed by reference to the cost of securing benefits by the purchase of annuities) applicable to its previous Ministers who were members of the Scheme. At present the Church is paying the ongoing deficiency contributions outlined above, and the balance sheet liability below is based on those deficiency contributions. However, the Pension Scheme Trustee has the right to quantify and seek payment of the debt at any time.
18 Trustee and staff remuneration, related party and other transactions
The Minister was a trustee from 18 November 2020 when the church was entered on the Register of Charities until his retirement on 31 August 2022. 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 2022 he received gross remuneration from this charity of £21,450 (18Nov20 to 31Dec21 - £23,400), £145 (18Nov20 to 31Dec21 - £206) in respect of travel costs and free accommodation at the manse (for which the church paid £3,522 (18Nov20 to 31Dec21 - £4,396) in respect of utility bills). He also accrued benefits under the Baptist pension defined contribution scheme, to which the church paid £1,355 (18Nov20 to 31Dec21 - £2,961) in employer's contributions.
No other trustees received any remuneration or claimed trustee expenses.
The glossary to the FRS 102 SORP defines key management personnel as "those persons having authority and responsibility for planning, directing and controlling the activities of the charity, directly or indirectly, including any director (whether executive or otherwise) of the charity". No staff members (other than the minister, who was also a trustee) fall under this definition.
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 £11,810 (18Nov20 to 31Dec21 - £11,505).