Newbury Baptist Church
(founded 1640)
Annual Report and Financial Statements for the year ended 31 December 2023
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 T R Dent Mr J F N Rankin Rev P H Timothy (Senior Minister) 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 2023
Trustees' Report
Newbury Baptist Church
Report of the Trustees for the year ended 31 December 2023
The Trustees have pleasure in presenting their annual report and the financial statements of Newbury Baptist Church (NBC) for the year ended 31 December 2023. 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 third 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) 7 Mrs C A Cochrane Mrs D Cullen Miss B R Davey Mr P R Davey (resigned 20 March 2024) Mrs J I Day (resigned 13 March 2024) Mr T R Dent Mr C J McAleer (resigned 7 May 2023) Mr J F N Rankin Rev P H Timothy (Senior Minister) (commenced ministry on 1 August 2023)
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) continued their use of the church's facilities in 2023 and Newbury Street Pastors retained their use of one of our rooms. A monthly meeting to support Ukrainian refugees in the Newbury area ran for much of 2023, culminating in a Christmas Event in December, and there have been bookings by other organisations. The Church runs a series of house groups for the growth of faith and discipleship in the house of some members, and further details of these can be obtained from the Trustees on request, or at the Sunday service of worship.
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 clearly demonstrate that the charity is providing a benefit to 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
Page 2 of 17 year ended 31 December 2023
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 Church Secretary, Minister and Treasurer in their respective fields. At the date of this report the Church is seeking to recruit a part-time Church Office Manager and a part-time Church Facilities Manager.
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 nine meetings were held in 2023.
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
First and foremost the church called a new senior minister, Rev Peter Timothy. Rev Peter and his family joined us in August 2023.
From January to August our preaching and prayers brought a sharper focus on the question of "what it means to be a church". We considered together what we had learned each month. Engagement levels remained high throughout the year as we joined in this journey together. The same themes were picked up and extended by Rev Peter as he took on the responsibility of preaching and spiritual development from September.
2023 saw a steady increase in people engaging meaningfully with their faith. They were supported by a strong and well communicated preaching program and encouraged to adopt a regime of regular prayer and reflection by the weekly news and prayer letters. We welcomed 22 people into membership as we said farewell to others. At the end of 2023 the church membership stood at a healthy 154, whilst our contact base at the end of the year exceeded 400 people.
Our Children and Youth activities have continued to attract families to the church as we have prioritised sharing our faith across all age ranges. One particular highlight was the Light Party in October, which attracted a mix of church and unchurched Primary-aged children for a night of fun, games and food.
Our regular Sunday worship was further enhanced by the temporary employment of a creative co-ordinator for 1 day per week over the first 6 months of the year. This has brought improved creativity to our worship services.
Newbury Baptist Church Annual Report and Accounts Trustees' Report (continued)
Page 3 of 17 year ended 31 December 2023
As a Church we have sponsored 9 of our members on a 2 year program of learning and spiritual development run by Regent's Park College and SCBA. This is already bringing a new depth and strength to our adults alongside the teaching and preaching we are now receiving from Rev Peter.
In the Autumn we were able to send 16 of our young people, and their leaders, for a weekend of fun and study of many aspects of prayer. We thank God for all of this group and their leaders as they develop their own personal faith in Jesus
Our continued use of the LiveStream technology, installed during lockdown, has enabled many who are otherwise unable to attend church in person, to both stay connected and follow the spiritual development of the church. We thank God for the provision of skilled technicians and producers who quietly enable the Church in this way.
2023 has also seen significant changes in our administration. Our long serving administrator moved on to new challenges in the late Autumn. The leadership team decided to take the opportunity to move many of the day to day operations of the church into our computer systems. We want to reduce the operational effort for leaders whilst tightening our compliance with our own policies
Safeguarding, GDPR and data protection and Health and Safety are some of the most significant ways in which we, as a church, demonstrate our love and care for everyone who visits our premises. In 2023 we increased our focus on “best practice” in these areas, building new clarity into accountability and responsibility for these areas. This will continue to increase as we look to 2024.
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. Safeguarding training courses held at NBC in February 2024 were attended by 52 people from the church.
Mission
It has been good to continue our support for the Mahon family - working in Peru with BMS World Mission in developing Peruvian Christians for national and international mission work. We were also happy 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.
Additionally, we were pleased to be able to support our friends Arthur and Reeta in central Asia and, 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, now in its 11th 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 expenditure of unrestricted funds by the church of £6.5k in the year. This is an deterioration of £21.3k compared to the net income of £14.8k in 2022 and the culmination of a number of variances both favourable and adverse. The main variances are:
Favourable variances:
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1 We are thankful to be able to report an increase of £16.7k in offerings and other donations received by the church (including associated gift aid).
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2 The much higher interest rates available in 2023 allowed the church to increase the interest income earned on its cash balances by £14.1k.
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3 Unrestricted income includes an amount of £4.4k as Income from Church Activities and Events. The corresponding income in 2022 was shown as restricted income.
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4 There was a reduction of £4.4k in the depreciation charge. The charge in 2022 had been inflated by £6.1k due to a change in the depreciation policy.
Newbury Baptist Church Annual Report and Accounts
Page 4 of 17 year ended 31 December 2023
Trustees' Report (continued)
Adverse variances:
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5 The 2022 results benefited by £15.1 following the reduction in the DB pension provision to zero. This was not repeated in 2023.
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6 The 2022 results also benefitted from 2 generous legacies totalling £19.1k. Legacy income only totalled £0.1k in 2023.
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7 The chance was taken to redecorate the manse ahead of the arrival of Rev Peter. Unfortunately it also became necessary to replace the central heating boiler, sort out the garden fencing and do some other work. The total cost of all the maintenance work in the manse was £15.8k compared to £1.3k in 2022.
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8 Relocation costs (including the purchasing and fitting of new carpets) of £10.2k were also iincurred in conjunction with the arrival of Rev Peter.
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9 The Regent's Park College course provided for 9 church members cost £4.5k.
(b) Restricted Funds
The financial statements show net expenditure of restricted funds by the church of £12.3k in the year, which is £1.2k less than the net expenditure of £13.5k in 2022. This is mainly caused by a decrease of £4.0k in other organisations expenditure (as most of this expenditure is now regarded as unrestricted) offset by an increase of £3.1k in the depreciation charge .
A total of £24.5k of cash from the Redevelopment fund was spent on fixed assets: £13.5k on a fire alarm system, £2.4k on an intruder alarm system, £1.9k on emergency lights and £1.7k on heating controls for the church hall.
Reserve Policy
The trustees aim to have unrestricted net current assets which at least equate to 6 months of regular expenditure. Based on the 2024 budget, this would amount to about £65k which is much less than the year end net current assets of £223k.
However, it should be noted that the budget predicts a deficit of £23k in 2024 and there may continue to be further deficits in the future. The healthy level of reserves will, therefore, be useful in helping to provide financial stability in future years. The funds may also be necessary as the church is considering various expensive improvements and alterations to the church building.
The Way Ahead
As a Leadership Team we believe in 2024 God is calling us as a worshipping community to deepen our sense of belonging to One Body, with a particular focus upon developing our collective prayer life
The first sermon series that Rev Peter preached in the Autumn was unpacking and explaining the six covenant promises that the church made at his induction service. The first of these was to be a church that is One Body, embracing diversity, respecting each other and working in partnership to ensure everyone feels valued and included.
In 2024 we hope to develop this sense of belonging to a church family. This means establishing and growing partnerships and relationships across the church, so all feel increasingly connected to NBC and are able to participate in church life, using the gifts God has given them.
Measuring this is not an exact science, but we can look at whether people are increasing their participation in church life, and whether there is a growing diversity of people involved. We are also aiming to develop our small group network this year, with the hope that more people will join existing groups, as well as potentially starting new groups as needed. The midweek Lent course recently run in the church, along with an increase in the promotion of small groups more generally, was designed to help us reach this goal. A summer term sermon series on Ephesians and its relevance to growing church community is also designed with this purpose in mind.
Newbury Baptist Church Annual Report and Accounts
Page 5 of 17 year ended 31 December 2023
Trustees' Report (continued)
Our aim of encouraging and developing the collective prayer life of the church comes from an understanding that prayer is the ‘fuel’ that powers all we do. In addition to the new weekly prayer walks through the town, we centred on teaching on prayer through Lent, and created a large interactive prayer space in the church for use during Holy Week. Our weekly prayer letter continues to be a tool to help shape and encourage the church to join in prayer for specific people/places/situations.
We anticipate that 2024 will be a year of change in the makeup of the church leadership team, with a number of existing deacons either reaching the end of their terms of office or due for re-election. We recognise a need to encourage a greater diversity among the trustees, and are encouraging a number of individuals to consider standing for these key positions.
As numbers continue to gradually increase on Sundays, we have opened the bi-fold doors at the back of the church in order to increase our seating capacity. Plans are underway to explore how we might make improvements to the building so that it can better suit our growing needs, as well as be more widely used by the local community.
We also intend to recruit two new part-time roles: a Facilities Manager and a Church Office Manager in order to advance the church's purposes and significantly reduce the workload on our overstretched pool of volunteers.
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 14 April 2024
Newbury Baptist Church Annual Report and Accounts
Page 6 of 17 year ended 31 December 2023
Independent Examiner's Report to the Trustees of Newbury Baptist Church on the Financial Statements for the year ended 31 December 2023
I report on the accounts of the Church for the year ended 31 December 2023, 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
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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
15 April 2024
Newbury Baptist Church Annual Report and Accounts
Page 7 of 17 year ended 31 December 2023
Newbury Baptist Church Statement of Financial Activities for the year ended 31 December 2023
| **Unrestricted ** | **Unrestricted ** | Restricted | Total | Unrestricted | Restricted | Total | |
|---|---|---|---|---|---|---|---|
| Funds | Funds | Funds | Funds | Funds | Funds | ||
| Notes | 2023 | 2023 | 2023 | 2022 | 2022 | 2022 | |
| £ | £ | £ | £ | £ | £ | ||
| Income and endowments from | |||||||
| Donations and legacies | 2 | 102,226 | - | 102,226 | 104,520 | - | 104,520 |
| Charitable activities | 3 | 15,989 | 452 | 16,441 | 11,324 | 3,041 | 14,365 |
| Investments | 4 | 22,888 | 3,035 | 25,923 | 8,831 | 908 | 9,739 |
| Total income and endowments | 141,103 | 3,487 | 144,590 | 124,675 | 3,949 | 128,624 | |
| Expenditure on | |||||||
| Charitable activities | |||||||
| Employee costs | 5 | 56,287 | - | 56,287 | 35,567 | - | 35,567 |
| Grants Payable | 6 | 15,318 | - | 15,318 | 12,816 | - | 12,816 |
| Ministry & Mission | 7 | 13,881 | 1,494 | 15,375 | 5,538 | 2,265 | 7,803 |
| Property and Fabric | 8 | 44,418 | - | 44,418 | 33,110 | - | 33,110 |
| Admin and Office support | 9 | 9,787 | - | 9,787 | 10,444 | - | 10,444 |
| Depreciation | 11 | 7,292 | 13,701 | 20,993 | 11,724 | 10,592 | 22,316 |
| Other Organisations | 15 | - | 601 | 601 | - | 4,613 | 4,613 |
| Independent Examiner's fee | 650 | - | 650 | 700 | - | 700 | |
| Total Expenditure | 147,633 | 15,796 | 163,429 | 109,899 | 17,470 | 127,369 | |
| Net income/(expenditure) in year / | |||||||
| Net movement in funds | (6,530) | (12,309) | (18,839) | 14,776 | (13,521) | 1,255 | |
| Transfers between funds | - | - | - | 2,629 | (2,629) | - | |
| Net Movement in Funds | (6,530) | (12,309) | (18,839) | 17,405 | (16,150) | 1,255 | |
| Total funds brought forward | 243,394 | 891,675 | 1,135,069 | 225,989 | 907,825 | 1,133,814 | |
| Total funds carried forward | 236,864 | 879,366 | 1,116,230 | 243,394 | 891,675 | 1,135,069 |
Newbury Baptist Church Annual Report and Accounts
Page 8 of 17 year ended 31 December 2023
Newbury Baptist Church Balance Sheet as at 31 December 2023
| 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 net assets The funds of the charity Endowment funds Restricted income funds Unrestricted funds Total charity funds |
Unrestricted Restricted Total Funds Funds Funds 2023 £ £ £ - 400,000 400,000 13,695 46,511 60,206 13,695 446,511 460,206 8,305 - 8,305 218,397 432,855 651,252 226,702 432,855 659,557 (3,533) - (3,533) 223,169 432,855 656,024 236,864 879,366 1,116,230 - 7,695 7,695 - 871,671 871,671 236,864 - 236,864 236,864 879,366 1,116,230 |
Total Funds 2022 £ 400,000 53,162 |
|---|---|---|
| 453,162 | ||
| 5,286 679,533 |
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| 684,819 (2,912) |
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| 681,907 | ||
| 1,135,069 | ||
| 7,695 883,980 243,394 |
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| 1,135,069 |
The financial statements were approved by the Diaconate (Board of Trustees) and authorised for issue on 14 April 2024 and are signed on its behalf by:
T J Clifton J F N Rankin Mr T J Clifton (Church Treasurer) Mr J F N Rankin (Trustee) 14 April 2024 14 April 2024
Newbury Baptist Church Annual Report and Accounts
Page 9 of 17 year ended 31 December 2023
Notes forming part of the financial statements for the year ended 31 December 2023
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 third to have been prepared since the registration of the charity on 18 November 2020.
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 2023
The depreciation policy for Fixtures, Fittings & Equipment was reviewed in 2022. 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 2022 was adjusted to reflect this new policy and, as a result, the total charge in 2022 was £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 Church Activities & Events Other Organisations ( Note 15 ) Grants and Misc. Total 4 Investment Income Total 5 Employee costs Gross Social Security Costs Employment Allowance Manse costs Relocation costs Pension costs Provision for future DB pension deficit payments ( Note 16(b) ) Travel Total Bank, Building Society and Baptist Union deposit interest |
Unrestricted Restricted Total Funds Total Funds Funds Funds 2023 2022 £ £ £ £ 84,131 - 84,131 72,132 100 - 100 19,100 17,995 - 17,995 13,288 102,226 - 102,226 104,520 5,283 - 5,283 4,062 - - - 1,136 6,248 - 6,248 5,480 4,439 - 4,439 - - 452 452 3,041 19 - 19 646 15,989 452 16,441 14,365 22,888 3,035 25,923 9,739 22,888 3,035 25,923 9,739 40,367 - 40,367 45,245 3,153 - 3,153 3,308 (3,153) - (3,153) (3,201) 3,364 - 3,364 3,522 10,181 - 10,181 - 2,187 - 2,187 1,656 12 - 12 (15,108) 176 - 176 145 56,287 - 56,287 35,567 |
|---|---|
Newbury Baptist Church Annual Report and Accounts
Page 11 of 17 year ended 31 December 2023
The average monthly number of employees during the year were as follows:
| Ministry (head count) Administration and Cleaning (head count) |
2023 2022 0.4 0.7 2.2 2.3 2.6 3.0 |
|---|---|
The minister was apponted on 1 August 2023. The previous 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 Total 7 Ministry & Mission Preaching and teaching Youth & Children Giggles & Wiggles Flowers and general pastoral care Men's and Ladies' Breakfast First Thursday Publicity material 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 Total |
Unrestricted Restricted Total Funds Total Funds Funds Funds 2023 2022 £ £ £ £ 4,409 - 4,409 3,658 4,409 - 4,409 3,658 3,500 - 3,500 2,500 2,000 - 2,000 2,000 500 - 500 500 500 - 500 500 15,318 - 15,318 12,816 6,969 - 6,969 1,755 3,758 - 3,758 2,216 569 - 569 - 865 - 865 1,430 867 - 867 - 766 - 766 - 87 - 87 137 - 357 357 331 - 719 719 802 - 418 418 1,132 13,881 1,494 15,375 7,803 6,269 - 6,269 6,789 2,635 - 2,635 1,579 4,368 - 4,368 4,699 830 - 830 703 9,331 - 9,331 11,980 15,756 - 15,756 1,290 1,370 - 1,370 3,192 3,859 - 3,859 2,878 44,418 - 44,418 33,110 |
|---|---|
Newbury Baptist Church Annual Report and Accounts
Page 12 of 17 year ended 31 December 2023
| 9 **10 ** |
Admin and Office support Telephone Printing, stationery and photocopying Child protection Catering Subscriptions Technology & IT Solicitors' Fees Recruitment Administration Other Total Fixed Assets - Property 4 Bartlemy Road Transfer value from Newbury Baptist Church |
Unrestricted Restricted Total Funds Total Funds Funds Funds 2023 2022 £ £ £ £ 1,870 - 1,870 1,941 2,029 - 2,029 2,186 145 - 145 566 647 - 647 235 1,126 - 1,126 715 974 - 974 1,281 - - - 420 761 - 761 1,631 1,509 - 1,509 418 726 - 726 1,051 9,787 - 9,787 10,444 Closing Closing Balance Balance Unrestricted Restricted 2023 2022 £ £ £ £ - 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 to this charity 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
| Cost Opening Balance 1 Jan 2023 Additions Disposals Closing Balance 31 Dec 2023 Depreciation Opening Balance 1 Jan 2023 Charge during year Eliminated on disposal Closing Balance 31 Dec 2023 Net Book Value 31 Dec 2023 Net Book Value 31 Dec 2022 |
Unrestricted Fixtures, Fixtures, Music & Fittings & Fittings & Sound Equipment Equipment Equipment Total £ £ £ £ 92,160 86,201 14,894 193,255 3,521 24,516 - 28,037 - - - - 95,681 110,717 14,894 221,292 74,694 50,944 14,455 140,093 7,292 13,605 96 20,993 - - - - 81,986 64,549 14,551 161,086 13,695 46,168 343 60,206 17,466 35,257 439 53,162 Restricted |
Total Fixed Assets 2022 £ 182,638 21,011 (10,394) |
|---|---|---|
| 193,255 | ||
| 128,050 22,316 (10,273) |
||
| 140,093 | ||
| 53,162 | ||
Newbury Baptist Church Annual Report and Accounts
Page 13 of 17 year ended 31 December 2023
| Unrestricted | Restricted | Total Funds | Total Funds | ||
|---|---|---|---|---|---|
| Funds | Funds | 2023 | 2022 | ||
| £ | £ | £ | £ | ||
| **12 ** | Debtors | ||||
| Gift Aid tax credit | 4,841 | - | 4,841 | 2,830 | |
| Interest Receivable | 1,105 | - | 1,105 | 556 | |
| Other | 2,359 | - | 2,359 | 1,900 | |
| Total | 8,305 | - | 8,305 | 5,286 | |
| **13 ** | Cash at bank and in hand | ||||
| Cash on short-term deposit | 174,950 | 87,590 | 262,540 | 310,079 | |
| Cash at bank and in hand | 43,447 | 269 | 43,716 | 24,458 | |
| Cash held with Baptist Union Corp. | - | 344,996 | 344,996 | 344,996 | |
| Total | 218,397 | 432,855 | 651,252 | 679,533 | |
| **14 ** | Creditors: Amounts falling due within | one year | |||
| Other | 3,533 | - | 3,533 | 2,912 | |
| Total | 3,533 | - | 3,533 | 2,912 |
15 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 was decided in 2022 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 2022 year end balances were transferred from restricted to unrestricted funds. An exception was Boys' Brigade where no decision has yet been made and so its income and expenditure continues to be shown under "Other Organisations". 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 responsibility relating to this appeal.
Newbury Baptist Church Annual Report and Accounts
Page 14 of 17 year ended 31 December 2023
Summary of fund movements:
| Music Endowment Fund Restricted Fixed Asset Fund Redevelopment Fund Alan Royston Music Fund Other Organisations: Boys' Brigade Total Other Organisations Total Restricted Funds |
Opening Transfer to Closing Balance Unrestricted Balance 1 Jan 2023 Income Expenditure Funds 31 Dec 2023 £ £ £ £ £ 7,695 206 (206) - 7,695 744,996 - 0 - 744,996 131,771 2,829 (13,605) - 120,995 6,795 - (1,384) - 5,411 |
|---|---|
| 891,257 3,035 (15,195) - 879,097 |
|
| 418 452 (601) - 269 |
|
| 418 452 (601) - 269 |
|
| 891,675 3,487 (15,796) - 879,366 |
Summary of fund movements period in prior year
| Music Endowment Fund Restricted Fixed Asset Fund Redevelopment Fund Alan Royston Music Fund Other Organisations: Boys' Brigade Girls' Brigade GB Senior camp GB Junior camp Giggles & Wiggles Women's Fellowship First Thursday Christmas in a Shoe Bag (for Hope Now) Men's' Breakfast Total Other Organisations Total Restricted Funds |
Opening Transfer to Closing Balance Unrestricted Balance 1 Jan 2022 Income Expenditure Funds 31 Dec 2022 £ £ £ £ £ 7,695 100 (100) - 7,695 745,205 - (209) - 744,996 141,258 808 (10,295) - 131,771 9,048 - (2,253) - 6,795 |
|---|---|
| 903,206 908 (12,857) - 891,257 |
|
| 677 611 (870) - 418 1,842 - (407) (1,435) - 700 1 (701) - - 448 1 (449) - - 377 635 (535) (477) - 129 29 - (158) - 364 523 (401) (486) - 82 596 (678) - - - 645 (572) (73) - |
|
| 4,619 3,041 (4,613) (2,629) 418 |
|
| 907,825 3,949 (17,470) (2,629) 891,675 |
Newbury Baptist Church Annual Report and Accounts
Page 15 of 17 year ended 31 December 2023
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 Cash Total £ £ £ £ - - 7,695 7,695 400,000 - 344,996 744,996 - 46,169 74,827 120,996 - 342 5,068 5,410 Fixed Assets |
|---|---|
| 400,000 46,511 432,586 879,097 |
|
| - - 269 269 |
|
| - - 269 269 |
|
| 400,000 46,511 432,855 879,366 |
16 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 16(b)). The employer contributions made by the church to this scheme in 2023 were £350 (2022 - £301).
(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 £1,837 (2022 - £1,355).
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.
Newbury Baptist Church Annual Report and Accounts
Page 16 of 17 year ended 31 December 2023
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 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 was due to 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 £12 (2022 - £2,192).
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.
| Remaining change to balance sheet liability* (recognised in SoFA) Minus deficiency contributions paid Interest cost (recognised in SoFA) Balance sheet liability at year end Balance sheet liability at period start |
2023 2022 £ £ - 17,300 (12) (2,192) - 324 12 (15,432) - - |
|---|---|
*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 2023
17 Trustee and staff remuneration, related party and other transactions
The current minister has been a trustee since his appointment on 1 August 2023. During 2023 he received gross remuneration of £15,380 (2022 - £Nil), £176 (2022 - £Nil) in respect of travel costs and free accommodation at the manse (for which the church paid £3,364 (2022 - £Nil) in respect of utility bills). He also benefitted from £10,181 (2022 - £Nil) relocation costs being paid by the church and accrued benefits under the Baptist Pension defined contribution scheme, to which the church paid £1,837 (2022 - £Nil) in employer's contributions.
The previous minister was a trustee from 18 November 2020 when this charity 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 2023 he received gross remuneration from this charity of £Nil (2022 - £21,450), £Nil (2022 - £145) in respect of travel costs and free accommodation at the manse (for which the church paid £Nil (2022 - £3,522) in respect of utility bills). He also accrued benefits under the Baptist Pension defined contribution scheme, to which the church paid £Nil (2022 - £1,355) 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) fell 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 £10,665 (2022 - £11,810).