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2023-12-31-accounts

Cornerstone Baptist Church CIO, Leeds

Report of the Managing Trustees and Financial Statements

for the year ended 31 December 2023

Charity Registered in England and Wales (Incorporated from 15 July 2022):1195098

CORNERSTONE BAPTIST CHURCH

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

Contents:
Managing Trustees 3 - 11
Independent Examiner 12
Statement of Financial Activities 13
Balance Sheet 14
Notes to the Financial Statements 15 - 30

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CORNERSTONE BAPTIST CHURCH

FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction

The Managing Trustees present to you their annual report, along with the financial statements of Cornerstone Baptist Church (CBC) for the year ended 31 December 2023. We have continued to work out the agreed vision for the Church, seeking to establish a structure of One Church, Three Sites, Many Gatherings. This vision reflects the unity across the Church, meeting at the three sites in Headingley, Horsforth and Bramley and representing the four current gatherings, with the expectation that more might develop and grow in the future. This year has also been significant with the Church entering a period of change with the departure of the Senior Minister Peter Morden in June 2023 and starting to explore future ministry for the Church.

We are delighted to report to you the various activities that have been going on throughout Cornerstone over the last year and hope that you enjoy reading about all that has been achieved. We have returned to holding Church meetings in person, been pleased to have the election of a Church Treasurer to join the Elders and Finance Team and called Duncan Stow to ministerial training as a Recognised Local Minister at the Cragg Hill Gathering (Horsforth). This report is a great opportunity to look back and thank God for all that he has enabled us as a Church to do during 2023 and provides a chance to look forward to what we hope to do during 2024.

The accounts have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) Charities SORP (FRS102)) and the Baptist Union of Great Britain Guidelines F03 Charity Accounts Over £250,000(11/2023).

The structure of this report makes sure we answer all the questions asked by the SORP, in particular: reference and administrative details of the Charity; its trustees and advisors; the structure, governance and management under which we operate; our objectives and activities; financial review; and plans for future periods.

Reference and Administrative details of the Charity, its Trustees and advisors:
Registered Office South Parade,
Headingley
Leeds
LS6 3LF
Email info@cbcl.org.uk
Website www.cbcl.org.uk
Registered charity number (unincorporated) 1128935 (The incorporated charity number is: 1195098,
completed 15thJuly 2022).
Bank Virgin Money, 94-96 Briggate, Leeds LS1 6NP
Independent Examiner Jessica Lawrence FCA CTA
Azets Audit Services Limited
12, King Street
Leeds LS1 2HL

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CORNERSTONE BAPTIST CHURCH

FOR THE YEAR ENDED 31 DECEMBER 2023

Managing Trustees

Revd Dr P Morden Senior Minister (resigned 30 June 2023)
S J Burras Elder
B A Crosse Elder
S J Halligan Elder
R Hughes Elder and Church Secretary
J Jones Elder
N Richards Elder (resigned 27 January 2023)
S Thresher Elder
A E Shipley Elder (appointed 23 November 2023)
R A Shepherd Elder (appointed Church Treasurer 23 November 2023)
DM Stow Recognised Local Minister for Cragg Hill (appointed 28 September 2023)

Structure, Governance and Management: Structure

CBC is a registered charity, charity number 1128935. CBC CIO was registered as a charity on 15 July 2022, number 1195098, succeeding Cornerstone Baptist Church, which is in the process of becoming a linked charity. The Charity was registered on 1 April 2009 with the Charity Commission. The Church is a member of the Baptist Union of Great Britain.

The Church operates under an inter-dependent model, which means we have four gatherings meeting on three sites Cragg Hill (Horsforth), Headingley, the Lantern (Headingley) and Connect@Copperbeech (Bramley). There are four leadership teams, one for each site, with each leadership team including an Elder and Leader appointed by the whole Church meeting. We are working in Bramley in connection with the Salvation Army. The Lantern, which started in January 2022 at our Headingley site, runs in partnership with Leeds Vineyard, which has a special focus on reaching out to the homeless and vulnerable in the Headingley area.

Managing Trustees

Elders to be responsible for the governance of the Church and where there are ministers of the Church, they will also be members of the eldership because of their role and responsibilities.

With the exception of a newly appointed minister, Elders shall be chosen from among Church members (provided they have been a Church member for a minimum period of six months) with the maximum for three years, following which they may be re-appointed for three years before they must take at least a one-year sabbatical.

The appointment of Elders shall be undertaken by processes that are public, clear, and open so that all Church members are able to consider prayerfully who should be appointed. The process will ensure that notice is given of any forthcoming election so that Church members may freely nominate prospective Elders. Selection of Elders shall be by secret ballot. In order to be elected, a nominee must receive positive votes from two-thirds of those voting.

The Church Secretary is appointed from among the eldership by the Church meeting.

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CORNERSTONE BAPTIST CHURCH

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Induction and training

collated to ensure that new Managing Trustees understand and meet the eligibility criteria for Managing Trustees, as defined by the Charity Commission, and understand their role and responsibilities to CBC as a Managing Trustee. The pack also includes the most recent Report .

Risk Management

The Church operates with the eldership taking on wider responsibilities in overseeing sub-committees, which cover safeguarding, fabric and repair and finance, with other groups to be established as needed. This change was made to streamline the leadership structure and to facilitate quicker decision making. Sub-committees have been formed to support the Elders, with a lead Elder and Church members who offer their expertise in various areas. This has included maintaining repairs of the fabrics of buildings identified through the quinquennial review. A review of these arrangements was due in 2023. The risk register has undergone an initial review with a number of recommendations and updates being made, the elders have begun to work through the outcomes to best address the risks starting with those identified as having the greatest impact for the Church in the register.

Data Protection

The Church has a Data Protection Policy document which is used to ensure compliance with the UK Data Protection Act 2018 (DPA), which incorporates the requirements of the EU General Data Protection Regulation. Data processing and data protection remain under review to ensure that this remains the case.

Safeguarding

Safeguarding is overseen by a dedicated team of representatives with experience of safeguarding children and vulnerable adults from across the three sites and led by the Safeguarding Officer. Monthly meetings take place to discuss any concerns that have been recorded, together with any action(s) taken. The Safeguarding Team reports to the Elders each month. Each term, the Team delivers safeguarding training, with a specialist emphasis on a particular aspect of safeguarding. Records of training attendance are kept, with a focus on members who lead and help with groups. The Church safeguarding policy is agreed by the Church meeting annually.

Volunteers

In undertaking activities to further the aims and objectives of the Church, significant use is made of volunteers. All activities detailed in the rest of this report are organised and run by teams of volunteers, along with the involvement of the staff employed by the Church.

Public benefit

When reviewing the aims and objectives of the Charity, and in planning future activities, the Elders have complied with the duty in section 4 of the Charities Act 2006 to have due regard to public benefit guidance published by the Charity Commission, and particulary the guidance for charities for the

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CORNERSTONE BAPTIST CHURCH

FOR THE YEAR ENDED 31 DECEMBER 2023

advancement of religion. The Church proclaims the Gospel of Jesus Christ. This benefit is available to all who come into contact with the Church in any way.

Objectives and Activities

Our Purpose Statement, and core values and a review of some of the activities to achieve them are listed below.

Purpose statement

- Love for People -

We have sought to use these three statements as the basis of the 3-year vision which has been worked out for the Church and agreed by the Church meeting in September 2022.

Community, Faithful in Prayer

We adopted Joshua 1:9 as our verse for the year, which say, Have I not commanded you? Be strong and courageous. Do not be afraid; do not be discouraged, for the LORD your God will be with you wherever you go.

This verse was chosen as the Church has navigated through a time of significant change and seeks to bring encouragement to courageously press into the vision and work it out. There can be challenges but the call to make Jesus know in our communities and to live out the hope of the gospel in every activity of the Church is something that brings great joy and fulfilment to the Church. The reassurance all the Church seeks to do.

The year has been challenging with the eldership overseeing a time of change across the Church with the departure of Peter Morden as senior minister, which has particularly affected the pastoral support for the Lantern Gathering as well as line management and support for the ministry team and wider staff team. The elders have also engaged in meeting with members of the Connect Gathering mediated by the YBA, following staffing changes within the Church. In a time of interregnum, the Church has engaged in a period exploring interim ministry as well as future full-time ministry and it has been encouraging to see good engagement from across the Church to step into the gaps to enable the Church activities listed below to continue and thrive.

While the Church regularly meets in person across the gatherings, the morning service at Headingley has continued to be streamed online each week for those unable to attend, and the sermons at both Cragg Hill and Headingley are now recorded and available online, and this has enabled us to maintain connection with a good number of Church attenders. A whole Church weekly notice sheet has been contains information about the regular activities as well as special events across the life of the Church. The life and work of the gatherings has continued and is briefly noted here along with some of the mission projects which draw strength from across the whole Church.

Greenhouse Café (Headingley)

The Green House Café was established initially in September 2019 in order to meet the vision of Cornerstone Baptist Church particularly with a The ethos of the Café is to provide a welcoming, homely place for simple food, conversation and shelter

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for those who need it. It currently opens on Tuesdays and Wednesdays, staffed by the Cafe Manager and a group of volunteers. The days of opening compliment the activity sessions for Under 5s, providing space for young children and their carers to attend. The Café is also a key place for Lantern family coming for the welcome and a free meal, made possible by the pay it forward scheme (PIF) and the Government Household Support Fund from LCCT. The running of the Café has been affected more recently the unexpected long-term sickness of the Café Manager. A temporary Manager is currently in post, successfully supervising food preparation, the running of the Café and the group of volunteers who support the work. The Café was opened up for an extra day per week for a period in 2023 but this proved a relatively short arrangement due to the Café Café has given an average of 4.6 meals/day through the pay it forward scheme and had daily takings of above £200, which has covered running costs. The Green House Café receives many positive comments and good feedback from those attending. It is regarded as an important place of safety and somewhere to receive good food by those who depend on the PIF meal provision.

Headingley Gathering

The Headingley gathering has been pursuing the vision God has given us to teach and minister the Gospel, to love and disciple each other, and to do so in an inter-cultural and inter-generational way. The Under 5s work at Cornerstone includes two parent and toddler groups as well as Café Tots and Sunday Tots at Headingley and Cragg Hill. The number of families that Kate Burkett (Young Families Coordinator) and the volunteer team (20 people) engaged with and supported over 2023 has increased. Both parent and toddler groups (Headingley Tots and Cragg Hill Tots) continue to prove popular. There is a strong emphasis on Christian outreach to the children and the adults with the gospel being clearly and compassionately shared. Some families from these two groups are also engaging with Church services and other activities, such as Café Tots and Cragg Friday Drop-In. Highlights from 2023 include summer picnics in local parks, Easter Teddy Praise, the all-age Christingle event and Christmas parties.

further developed following the appointment of in September 2022. The Junior Church on a Sunday has seen consistent attendance and interactions across the three age groups and the Friday night youth groups (LIFT and LUX) have grown in number with children inviting their friends to join. Monthly all-age services at Headingley have helped the whole Gathering engage in worship. The children and youth small groups provide space to share the hope of the gospel and journey with the young people through times of change. New initiatives have included a monthly games event on a Sunday afternoon and Warhammer Wednesday, as well as engagement with a local school.

Sunday worship continues to welcome new regulars. Some are long term residents and others are in Leeds for studies. The gathering continues to develop in inter-cultural and inter-generational worship and community. A group that focuses on developing these aspects is supported by Rehema Machuka, our joint intern with Transformations Leeds, working alongside volunteers. A Bible study group supports the discipleship of international students, as well as the time of fellowship after the Sunday service in Student Plus.

Connect@Copperbeech

The Connect@Copperbeech Gathering at Bramley continues to meet at Copper Beech Hub which is run by The Salvation Army. The partnership with The Salvation Army is due for renewal but the ongoing work is based upon common goals and one Lord. Together they continue to reach out and serve their local community of Bramley. Connect@Copperbeech meets at the hub on a Sunday, along with several activities throughout the week. The Bramley Youth Brass Band programme continues to provide free

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music lessons to children in Bramley and last August the group ran a week-long summer club resulting in a community concert. The Craft Corner group continues to provide a safe welcoming space to share aged children and Youth Hub for high school aged young people. Last year, with some financial help from Cornerstone and The Salvation Army, four young people from Connect@Copperbeech were able to attend the week-long Yorkshire School of Christian Arts camp in Harrogate. The Bible club continues to meet and offers an opportunity to engage with the community and share the word of God together. Connect@Copperbeech was involved in a busy Christmas programme of events, with another successful Toy Appeal that saw Christmas gifts delivered to local families as well as carols with the Bramley Youth Brass Band. Connect@Copperbeech continues to play an active role in the Bramley Churches Together group and together the group ran a family fun day in the community in July 2023.

Cragg

The Cragg Gathering in the Horsforth area has continued to grow in numbers attending its Sunday worship, small groups and outreach activities. Sunday mornings attendance averages around 50 to 60 people, there are four small groups which meet fortnightly and the Friday morning drop in sees regularly up to 40 people coming to experience a warm welcome and a bacon butty. Be it local residents, the postal staff, Church friends or Mums who attend the Monday Tots group, increasing drop in has become as stepping stone into the wider Church life. As a Church we are always looking for ways to connect with our community, be it a community skip, a bonfire night, coronation celebrations, a fortnightly football night and hosted Alpha last summer for those interested in discovering more

The Church is a busy place creating a friendly open environment for building relationships. We are delighted to offer the building as a welcoming venue for Hidden Homeless, two Choirs, Rainbows, Brownies and refugee events. Alongside this the Church allotments are a hive of activity from spring to late autumn and the Cragg Monday Tots groups is extremely popular with 20 tots coming with their carers to enjoy fun, food, songs and a Bible story on a weekly basis.

We are committed to growing as a worshipping community, which includes making our Sunday worship accessible to all ages with provision 3 weeks in the month and an all-age service on the fourth Sunday. The musicians in the Church are growing in number and we are looking forward to hosting Worship a monthly Friday night worship space. As a gathering members meet twice a week for prayer, once on Zoom and once on a Friday lunchtime and we have an active Whats App Prayer group as we seek to soak the life and outreach of the Church in prayer. In February 2024, 47 people went away to the Lake District for a Church weekend away.

Cragg has supported an Intern this year for the first time for a number of years, financing and supporting him on a year of service and growth. Many of the members are active in the shared mission of the Horsforth Churches Together group, they have supported a market, the Horsforth Shed, the planning of a food pantry, primary assemblies reaching 2,100 children every half term and a refugee conversation club.

The Lantern

The Lantern is now in its third year and is a partnership between Cornerstone and Leeds Vineyard. It meets on Sunday afternoons in the Greenhouse Cafe at Headingley. The purpose of this outreach is to provide food to those who find themselves on the margins of society and, through a short service, to help them experience the love of Jesus for themselves. The number of guests increased during the

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summer of 2023, and we have averaged 20 per week, over the last six months, who receive a hot meal and dessert. About half that number stay on for the song, talk and opportunity for prayer.

The team, made up of Cornerstone and Vineyard members, has been consistent over the last two years and has received relevant training from staff at The Lighthouse Leeds, for encountering people who bear the scars of trauma and have challenging behaviours.

The Lantern Leaders, made up of CBC and Vineyard members, meet every two months to deal with emerging issues, agree vision for the future and plan services and seasonal events. The full team meetings are held less frequently as, since December 2023, the group has had regular debriefing sessions each Sunday, after the guests have left, to talk through lessons learned from any incidents and to pray for each other and our friends.

Mission Partners

The Church encourages and supports individuals (sometimes financially) in a variety of mission and charitable activities including missionaries in France, Japan and further afield taking the gospel, human skills and compassion with BMS World Mission, Serving in Mission, and the Overseas Missionary SHARE Education Services and Teach Beyond. One of our members also engages in long term mission activities in Guinea Bissau, through Bible translation work. The Church also supports local mission through the Baptist Home Mission Fund.

The Church continues to support and encourage Transformations Leeds, a local charity working with has enjoyed having a shared intern working between the two organisations. Their vision and ours is for God to transform The Church has also supported its own intern Evan Walker who has served across the Church.

We had further members engage with the Bradford School of Theology this year and our hope is for others to undertake this excellent 2-year part-time course each year on an ongoing basis.

We have returned to in person meetings predominantly across the life of the Church, including the Church meeting, which while reducing the accessibility of these meetings for some has helped in rebuilding and maintaining relationships across the Church following the pandemic.

Finally, this year the Church has celebrated 6 believers baptisms across the Cragg Hill, Headingley and Lantern Gatherings.

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CORNERSTONE BAPTIST CHURCH

FOR THE YEAR ENDED 31 DECEMBER 2023

Financial review

During the year, total income amounted to £328,917 (2022: £352,538) of which voluntary income was the main component and totalled £267,130 (2022: £304,454). Expenditure for the year totalled £324,286 (2022: £335,965), making net income for the year of £4,631 (2022: net income £16,573).

The main components of expenditure are staff costs, donations to mission agencies and individuals, and repairs. The Church has an aspiration of using 10% to 11% of its voluntary income to support individuals and institutions engaging in activities which mirror the C Currently the level donations is higher than this but we will struggle to maintain this level, particularly as individuals pattern of giving has changed with people much more likely to give to specific charitable causes outside of their Church giving, rather than include this within their giving to the Church. In 2023 13.7% of income (2022: 11.9%) was used in this way.

As in the previous year we continue to carefully review all of our expenditure with the objective over the short to medium term of minimising any annual net deficit and thus maintaining our unrestricted reserves at a healthy level. In the slightly longer term we do plan to return to annual net surpluses.

At the balance sheet date, the Church had total net assets of £544,214 (2022: £539,581). Uncommitted reserves freely available for Church charitable activities increased by £6,550 to £195,175 (2022: £188,625).

The Managing Trustees consider that the minimum reserves necessary with no reliance on bank financing are 6 weeks of staff costs, that is £20,304 (2022: £23,285) at the year end. Reserves held at the balance sheet date would finance the Church charitable activities for 32 weeks (2022: 29 weeks).

The Managing Trustees seek to maintain adequate free reserves to be able to meet liabilities as they fall due. Funds not immediately required are deposited with the Baptist Union Corporation.

Funds held as custodian trustee on behalf of others

Neither the Church nor its managing trustees hold funds as custodian trustee on behalf of others.

Plans for future periods

Despite the challenges we currently face in interregnum in the immediate future we do plan to develop further in the following areas:

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CORNERSTONE BAPTIST CHURCH

FOR THE YEAR ENDED 31 DECEMBER 2023

Ruth Hughes (Church Secretary) and Andrew Shepherd (Church Treasurer)

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CORNERSTONE BAPTIST CHURCH INDEPENDENT

I report to the trustees on my examination of the accounts of Cornerstone Baptist Church (the charity) for the year ended 31 December 2023.

Responsibilities and basis of report

As the trustees of the charity, you are responsible for the preparation of the accounts in accordance

and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

in section 145 of the Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.

I have completed by examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

  1. accounting records were not kept in respect of the charity as required by section 130 of the Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any 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.

report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity and the s I have formed.

Jessica Lawrence FCA CTA

Azets Audit Services Limited 12 King Street Leeds LS1 2HL

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CORNERSTONE BAPTIST CHURCH BALANCE SHEET AS AT 31 DECEMBER 2023

The financial statements were approved by the Managing Trustees on 18 April 2024 and signed on their behalf by:

Ruth Hughes (Church Secretary)

Andrew Shepherd (Church Treasurer)

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CORNERSTONE BAPTIST CHURCH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

1. Principal accounting policies

Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) Charities SORP (FRS102)) and the Baptist Union of Great Britain Guidelines F03 Charity Accounts Over £250,000(11/2023).

Cornerstone Baptist Church meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £1.

Going concern

The Managing Trustees have prepared financial projections, which take into consideration the current economic climate and its potential impact on the sources of income and planned expenditure. They have a reasonable expectation that adequate financial resources are available to enable the Church to continue in operational existence for the foreseeable future and have adequate contingency plans in the event that income streams are reduced. Whilst the global economy has been significantly impacted by lower than usual economic growth, rising interest rates, global inflation above pre-pandemic levels and the disruption resulting from the war in Ukraine the Charity still has reserves sufficient to meet its immediate requirements. Thus, the Managing Trustees have continued to adopt the going concern basis of accounting in preparing the financial statements.

Income

Income is recognised when the Church has entitlement to the funds, any performance conditions relating to the item(s) of income have been met, it is probable that the income will be received, and the amount can be measured reliably.

Donations, gifts and lettings income are recognised when receivable.

Income from government and other grants is recognised when the Charity has entitlement to the funds, and performance conditions attached to the grants have been met, it is probable that the income will be received, and the amount can be measured reliably.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably, which is normally upon notification of the interest paid or payable by the bank.

Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably, and the Church has been notified of the Executor(s) intention to make a distribution.

Expenditure

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required, and the amount can be measured reliably. All expenditure is accounted for on an accruals basis.

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CORNERSTONE BAPTIST CHURCH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

1. Principal accounting policies (continued)

Expenditure on raising funds comprises fundraising costs incurred in seeking donations, usually for a particular mission project.

Expenditure on ministry includes the costs of preaching the Gospel and caring for individuals and communities both within and outside the Church.

Expenditure on mission includes the costs of outreach to children and their families and the communities around our Church buildings and the other sites where the Church meets. Other charitable expenditure promotes the same aims.

Expenditure on administration and support costs includes staff costs of the Buildings Manager, cleaners and Operations Manager and the costs of maintaining the Church buildings, equipment and the supply of services within the buildings.

Grants payable

Grants payable are donations to other Christian organisations to further the charitable purposes of the Church around Leeds, the UK and the world, or to individuals connected with the Church to enable them to train for or to exercise their Christian ministry. Details are given in note 19 to the financial statements. Grants are considered carefully when the budget is prepared. There is no certainty that any particular grant will be paid in future years, or that the amount will remain the same.

Land and buildings

The Headingley Church premises are incorporated within the financial statements at the historical cost (£27,237) and the manse properties in Adel and Headingley are stated at cost.

No depreciation is provided on any of the properties as the Managing Trustees consider that the residual value of the property is such that any charge would be immaterial. As the expected useful life of these assets is believed to be in excess of fifty years, periodic impairment reviews are undertaken by the Managing Trustees at the balance sheet date. Any material deficit between the anticipated recoverable amount of the properties and their carrying value in the accounts is recognised in the statement of financial activities.

Equipment

Equipment with an acquisition cost of £5,000 or more is capitalised and depreciated over 5 years, otherwise all Church equipment is written off in the year of purchase.

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, with the exception of bank loans, which are subsequently measured at amortised cost using the effective interest method.

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CORNERSTONE BAPTIST CHURCH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

Principal accounting policies (continued)

Investments

Investments are initially recognised at their transaction value and subsequently measured at their fair value at the balance sheet date using the closing market price, except for shares in the trading subsidiary company, which are carried at cost. The results of the trading subsidiary are not consolidated into those of the Church as total consolidated income does not exceed £1,000,000.

Cash and deposits

Cash at bank and in hand includes cash in hand and deposits repayable within 24 hours without penalty at the balance sheet date. Short term deposits include deposits with a short maturity of three months or less from the date of acquisition or opening of the deposit account.

Operating leases

Costs in respect of operating leases are charged on a straight-line basis over the lease term.

Fund accounting

Unrestricted funds are available to spend on activities that further any of the purposes of the Church. Designated funds are unrestricted funds, which the Managing Trustees have decided at their discretion to set aside for a particular purpose. Restricted funds are funds, which the donor specific assets for use by the Church.

Taxation

As a registered charity, Cornerstone Baptist Church is exempt from taxation in respect of income or capital gains to the extent that such income or gains are applied exclusively to charitable purposes. The Church receives no similar exemption for VAT, except that under the terms of the Listed Places of Worship grant scheme the Church can recover the VAT incurred on repairs to the fabric of its churches, which are both listed buildings.

Pension costs

As explained in note 18, the Church participates in the Baptist Pension Scheme, a multi-employer scheme, which is unable to identify the assets and liabilities attributable to the Church. In accordance with FRS102, amounts paid to the Scheme are accounted for as if they were those of a defined contribution scheme.

The Church also participates in a defined contribution scheme. Amounts due in respect of such schemes are charged to the Statement of Financial Activities.

Recognition and valuation of donated services

are reimbursed but there is no recognition in these accounts of the time donated by volunteers.

Current asset measurement

Trade and other debtors are recognised at the settlement amount due. Prepayments are valued at the amount prepaid. Tax recoverable is included at the amount receivable at the balance sheet date. Creditors are recognised where there is a present obligation resulting from a past event that will probably result in the transfer of funds to a third party, and the amount due to settle the obligation can be measured or estimated reliably. Creditors are recognised at the settlement amount.

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CORNERSTONE BAPTIST CHURCH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

Principal accounting policies (continued)

Critical accounting estimates and judgements

make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. The Managing Trustees are of the opinion that there are no estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities.

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----- Start of picture text -----
Total 2022 £ 152 , 913 , 220 ,
Funds £
Restricted 114 851 114 45 873 335,965
Funds £
Designated - - 35,504 - - 701 - - 1,703 - - 1,020 - - 1,982 - - - 4 - - - 8,534 - - 27,276 - - 17,511 - - 3,426 - - 9,207 - - 2,135 - - 2 - - 70,309 -
£ 152 , 799 , 220 , 309 ,
Unrestricted Funds 35,504 701 1,703 1,020 1,982 737 4 45 8,534 27,276 17,511 3,426 9,207 2,135 2 70 335,092
Total 2023 £ 696 , 660 , 370 ,
47 78,479
£ 054 ,
Restricted Funds
Designated Funds £ - 2 - -
£ 696 - - 3, 606 , 370 - - 2,
Funds
32,857 - 2,054 34,911 280 - - 280 2,326 - - 2,326 3,192 - - 3,192 2,522 - - 2,522 733 - - 733 3 45 9,222 - - 9,222 29,569 - - 29,569 18,450 - - 18,450 9,189 - - 9,189 9,079 - - 9,079 600 - - 600 2 78,479 320,209 - 4,077 324,286
Unrestricted
Expenditure on charitable activities (continued) Donations - see note 19 Volunteer expenses Conferences and events Intern expenses and accommodation Books, resources and materials Other costs Subscriptions Communications and stationery Utilities and council tax Building repairs and maintenance Equipment, furniture and fittings Insurance Legal fees Fees paid to the independent examiner Total expenditure on charitable activities
4.
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CORNERSTONE BAPTIST CHURCH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Net income for the year is stated after charging- 2023 2022 Independent examiner's remuneration INel of VATI 1.975 1,850 Related parties The custodian trustee of all the Chu rch properties is the Yorkshire Baptist Association IYBAI (Charity number 2471731. Both the Church and the YBA are members of the Baptist Union of Great Britain. Donations made to the Baptist Union Home Mission Fund by the Church are shown in note 19. there were no outstanding balances at the year-end12022.. £Nill. During the year the wife of one of the Managing Trustees was employed in the Cragg Hill cleaning post. Related party transactions relating to the ministers are shown in note 7. Managing Trustee remuneration and benefits RevDrP Morden MrD Stow Stipends Employer's National Insurance Pension contributions to DC scheme Council tax and travel expenses Total for the year ended 31 December 2023 Total for the year ended 31 December 2022 19.810 2,106 2,338 1.529 25.783 16,060 1,228 1,279 70 18.637 48,819 The Ministers, who were ex-officio members of the Eldership, were re￿u￿erated by the Church during the year and the amounts are shown above. Rev Dr P Morden o¢¢upied a manse as part of his conditions of employment. Similarly, Mr D Stow occupied a manse with effect from October 2023. as part of his conditions of employment. Managing Trustees, expense$ On occasion the Managing Trustees aci as agents for the Church and make purchases on its behalf and are reimbursed for this expenditure. e.g. payment for stationery or catering. Such expenditure is not related to the services provided by ihe Managing Trustees and so is not disclosed. Apart from such expenditure and that disclosed in note 7. none of the Managing Trustees were remunerated, provided with benefits, or paid expenses for services provided to the Church. 21of30

CORNERSTONE BAPTIST CHURCH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Staff costs and emoluments 2023 2022 Salaries and wages Employer's National Insurance Pension contributions to DC schemes Pension deficiency contributions to DB schemes Inote 181 158.214 179,885 3,916 12,251 5,747 201,799 11.295 12 175.970 The average monthly headcount during the year was 912022.. 101. During the year the Church employed two Ministers, two Team Leaders, a Young Families Co-ordinator, an Operations Manager, a Buildings Manager, Café Manager a Cook & Cafe Assistant and three cleaners. No employee received remuneration of more than £60,000 per annum12022'. no employee) and there were no employee benefits other than ihose disclosed above. The Trustees consider the key management personnel are the Trustees and the Ministry Team. The employee benefits of the key personnel total £117,48612022.. £158,564). 10. Tangible assets As restated Freehold Land and Buildings CTIIAV Equipment Total Cost or valuation At 1 January 2023 Adjustments in year At 31 December 2023 347.571 12.852 360A23 347.571 12.852 360A23 Depreciation At 1 January 2023 Depreciation charge for the year At 31 December 2023 14.0701 12.5701 16.6401 14.0701 12.5701 16,6401 Net book value At 1 January 2023 At 31 December 2023 347.571 347.571 8.782 6.212 356.353 353.783 Freehold land and buildings comprises one church and associated halls at South Parade in Headingley, together with two manses. The manses and the Headingley church are included at cost. The Church is the beneficial owner of the property, but legal title is held by the YBA as custodian trustee. CTIIAV Equipment comprises the cost of all equipment purchases with a unit value in excess of £5,000 or with a significant expected life. 22of30

CORNERSTONE BAPTIST CHURCH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 11. Fixed Asset Investment Subsidiary company 2023 2022 Adel Baptist Congregation Limited The Church held 3 shares of £1 each in its wholly owned subsidiary company Adel Baptist Congregation Limited, a company registered in England (Company number 38299421. These were the only shares allotted. called up and fully paid. The company ceased to trade in Ociober 2018 and was dissolved on 5 September 2023. 12. Debtoys 2023 2022 Other debtors Prepayments and accrued income 7.613 7,292 14.905 7.639 6,648 14.287 13. Short term deposits 2023 2022 Baptist Union Corporation 79.919 79.919 76,652 76,652 14. Creditors.. amounts falling due within one year 2023 2022 Trade Creditors Social security costs and other laxes Other creditors Accruals and deferred income 2.598 2,280 2.264 5.179 12,321 1,430 143 6,817 8.390 23of30

CORNERSTONE BAPTIST CHURCH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 15. Commitments under operating leases 2023 2022 Total minimum lease payments under non-cancellable operating leases fall due as follows.. Other leases - within one year Other leases - within two to five years 6.765 2,400 9,165 960 9,165 10,125 16. Movement in funds during the year Transfers between funds Current year Balance 1 Jan 2023 Income Balance 31 Dec 2023 Expenditure Restricted funds Cragg Hill drop-in 605 14211 344 160 2.000 Lantern Household Support Fund grant South Africa Fundraising 1.727 1.054 3.386 12.6021 11.0541 14.0771 1.125 2.160 1.469 Unr8stri¢t6d Funds General Designated funds.. Property Fund 188,625 326,757 1320,2091 195,173 347,570 536.195 326.757 347,570 542.743 1320.2091 Total Funds 539.581 328.917 1324.2861 544.212 24of30

CORNERSTONE BAPTIST CHURCH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 16. Movement in funds during the year Icontinuedl Transfers between Balanee fvnds 31 De¢ 2022 Previous year Balance 1 Jan 2022 Income Expenditure Restricted funds Cragg Hill drop-in Lantern Household Support Fund grant South Africa Fundraising 605 605 1.727 1.054 3.386 2,600 18731 1.054 1,659 2,600 18731 Unrestricted Funds General Designated funds= Property Fund as restated 173,779 349,938 1335,0921 188.625 347,570 521,349 349,938 347.570 536.195 1335,0921 Total Funds 523,008 352,538 1335,9651 539.581 Purpose of Restricted Funds Cragg Hill Drop-ln For the benefit of the Drop-ln activities at the Cragg Hill site. Lantern Household Support Fund grant Support for the Lantern project. a partnership between Cornerstone and Leeds Vineyard to provide a space where adults with multiple and complex needs can fi nd f riendship, food and faith. South Africa Fundraising Raising funds to support mission trips to Sethani. South Africa. Purpose of Designated Fund Property Fund This represents the holding value of the Church properties. 25of30

CORNERSTONE BAPTIST CHURCH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 17. Analysis of net assets between lunds at the year end Unrestricted Funds General Designated Restricted Funds Total Funds Current year Analysis of net assets between funds Tangible fixed assets Investments Net curreni assets Total net assets 6,212 347,570 353.782 188,964 195,175 1,469 1.469 190.432 544.214 347,570 Unrestricted Funds General Designated Restricted Funds Total Funds Previous year Analysis of net assets between funds Tangible fixed assets Investments Net curreni assets Total net assets 8,783 347,570 356,353 179,839 188,625 3,386 3.386 183.225 539.581 347,570 18. Pensions The Church is a participaiing employer in the Baptist Pension Scheme I 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 io future accrual of defined benefits on 31 December 2011. Prior to this date, the main benefit provided through the Defined Benefit IDBI 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 (DCI Plan within the Scheme. In general, members pay 8Vo of their Pensionable Income and employers pay 60/0 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 40/0 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 i ncome protection policy has been insured by the Baptist Union of Great Britain with Aviva Limited. Some Church members of staff are members of the Basic Section ofthe Scheme., members pay reduced contributions of 5 /0 of Pensionable Income. and the Church pays a total of 5 /0. There is no income protection insurance for members of the Basic Section. 26of30

CORNERSTONE BAPTIST CHURCH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 18. Pensions Icontinuedl The Scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. Because it is nol possible to altribute the Scheme's assels and liabilities to specif ic employers, the scheme is accounted for as if the Scheme were a defined contribution scheme. The Ministers and members of the Church staff are eligible to join Ihe Scheme. Actuarial valuation as at 31 De¢amber 2019 A formal valuation of the DB Plan as at 31 December 2019 was carried out by a professionally qualified Actuary using the Projected Unit Meihod. 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 £316 million. giving a deficit of £18 million (equivalent to a past service funding level of 94Yol. 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 ol assumption RPI price inflation assumption CPI price inflation assumption Mi nimum Penionable Income Increase Adjustment (above CPI) Pre-retirement assumed investment returns Igilt yield plus 1.75 /0 p.a.) Post retirement assumed investment returns lincluding benefits matched by the insurance policyl (gilt yield plus 0.5¥0 p.a.) Mi nimum Pensionable Income increases ICPI plus 0.5 /ol % p.a. 3.20 2.70 0.50 2.95 1.70 3.20 Deferred pension increases Ibased on RPII Pre April 2009 Post April 2009 3.20 2.50 Pension increases based on CPI with an annual floor of OYO ar)d annual cap of 5°k 2.70 Mortality is assumed in accordance with 80Yo 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 1.75Yo p.a. for males and 1.5 /. p.a. for females with ihe core smoothing parameter and with additional initial mortality improvement factor A=0.5°h. The next actuarial valuation of the DB Plan within the S¢heme will commence in 2023 to reflect the position as at 31 December 2023. 27of30

CORNERSTONE BAPTIST CHURCH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 18. Pensions Icontinuedl Recovery plan In addition to the contributions to the DC Plan set out above, where a valuation of the DB Plan reveals a deficit Ihe Trustee and the Council agree to a rate of deficiency contributions from churches and other employers i nvolved in the DB Plan. Following the 2019 valuation a Re¢overy 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 Pensionable Income as defined in the Rules. On 30 June 2022 the Baptist Pension Scheme signed an agreement with the insuran¢e company Just Group I"Just I to secure 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. Pansion cost for tho year 2023 2022 DC contributions for ministers DC contributions for staff DB deficit payments 2,823 8,472 12 11.307 4.348 5,091 5.747 15,186 28of30

CORNERSTONE BAPTIST CHURCH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

19. Donations made during the year

Purpose of donation
BMS World Mission
Support of worldwide mission activities
Christians in Queenswood
Support for evangelstic Christmas event
Churches Together in Headingley
Local ecumenical activities
Fellowship Fund
Available for use at ministers' discretion
Fusion
Student mentoring and support
Home for Good
Promoting fostering and adoption
Home Mission Fund
Support of national Baptist activities
Horsforth Churches Together
Local ecumenical activities
Horsforth Live at Home Scheme
Providing support services for older people
Human Leeds
Support for mission activities by Leeds
CUs
Lantern Project gifts to Green
House Café
Pay-it-forward gifts
LCCT
Horsforth Chaplaincy Project
Leeds Faith in Schools
Leeds University CU
Work with students
Lighthouse West Yorkshire
Community support for vulnerable people
OMF
Mission work in Japan (Levi Booth)
St George's Crypt
Work with Leeds homeless
St Mary's Menston School Fund
Donation to the Bambisanani Partnership
Salvation Army
Work in Bramley with Connect
SIM
Mission work in France and Belgium
Teach Beyond
Work with missionary families
The Children's Society
Support for young people
Transformations Leeds
Mission work with international students
UCCF
Work with students
Total donations		 2023
2022
£
£
3,120
6,240
100
96
50
-
757
-
150
150
-
120
3,120
6,240
450
300
-
250
-
200
1,000
-
3,000
3,000
-
180
100
100
-
200
6,000
6,000
-
200
1,054
-
3,000
-
6,000
6,000
6,000
6,000
-
28
610
-
400
200
34,911
35,504

29 of 30

CORNERSTONE BAPTIST CHURCH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 20. Prior period adjustments Two adjustments have been made to the prior period. First, Cragg Hill Church property. valued at £1 million, has been removed f rom both tangible fixed assets and unrestricted designated funds. Because this property is held under a separate trust deed it wasn't included in the transfer of assets on the formation of the CIO and was included in the balance sheet in error. This adjustment has had the effect of reducing both Tangible Fixed Assets and Unrestricted Designated Funds by £1.000,000 as follows.. General funds Opening Tangible Assets as previously reported Prior year adjustment: Cragg Hill Church property removed from Tangible Fixed Assets Restated Opening Tangible Assets 1,356,353 11,000,0001 356,353 Opening Unrestricted Designated Funds as previously reported Prior year adjustment: Cragg Hill Church property removed from Unrestricted Designated Funds Restated Opening Unrestricted Designated Funds 1,347,570 11.000,0001 347,570 Secondly, the Green House Café has been re-classified as a Mission activity of the Church instead of an "other trading activity., As a result, its income is now included i n income from donations and legacies (see note 21 and its expenditure as Mission costs (see note 41. This adjustment has had the effect of decreasing income from trading activities by £11.982 and increasing unrestricted income f rom donations and legacies by £11,982 as follows.. General funds Prior year in¢ome from Donations and Legacies Prior year adjustment: Income from Green House Café re-classified as a Mission activity Restated prior year income f rom Donations and Legacies 304.454 11,982 316.436 Prior year income from Trading Activities Prior year adju5tment- Income from Green House Café re-classified as a Mission activity Restated prior year income f rom Trading Activities 43.866 111.9821 31,884 30of30