Kidderminster Baptist Church
Annual Report & Accounts
–Year ending 31[st] December 2022 Charity number 1196300
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Kidderminster Baptist Church
References and administrative details
Registered Address
Kidderminster Baptist Church, Franche Road, Franche, Kidderminster, DY11 5BE.
Trustees
The Revd J Borlase (Minister) Mr A Whybrew (Secretary) Mrs T Fox (Treasurer) Mr C Lane Mr A Titley Mr J Walton Mrs T Wheeler Mrs S Wolstenholm
Property Trustees
The Baptist Union Corporation Limited Baptist House, 129 Broadway, Didcot, Oxfordshire OX11 8RT
Bankers
Barclays Bank, Stourport-on-Severn
Independent Examiner
Anne Taylor
Annual Report for 2022
The trustees present their Annual Report and financial statements for 2022.
Structure, Governance and Management
Kidderminster Baptist Church is governed by an Approved Governing Document. 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.
The members meeting normally takes place five times per year and has responsibility for the overall policy of the church. In accordance with the Constitution, the members appoint up to nine Trustees, who together with the Minister, Church Secretary and Treasurer (who are also appointed by the Members), are responsible for the day to day running of the church’s work and witness, and the financial and legal aspects of the charity. All members are encouraged to take an appropriate part in the spiritual and practical tasks involved in the furtherance of the charitable objective.
Relevant matters may be submitted to the Church meeting by the Trustees for guidance, or may be raised by members in Church meeting for further consideration by the Trustees. Though the Constitution permits decisions to be made at Church meetings by appropriate majorities, the Church seeks to work by consensus wherever possible.
Safeguarding of Children and Vulnerable Adults
The Church considers Safeguarding an essential aspect within the life of the Church in all our interactions with the vulnerable. In addition, all leaders, or those who help with small groups or ministries which may include vulnerable people are required to be DBS (Disability Barring Service) checked and undertake such training.
Our Safeguarding policy is attached separately.
Objectives and Activities
The principal purpose of the charity is the advancement of the Christian faith according to the principles of the Baptist denomination to include the advancement of education, community service and such other general charitable purposes in such parts of the United Kingdom and the world as the Church shall determine.
In order to achieve the principal objective which is set out above, the Church provides a variety of activities both to its membership and to the community generally. The aim is to show the love of Jesus Christ in both word and deed and to bring people into a closer relationship with Him as living Lord.
Central to the work and witness of the Church is the provision of regular public services of Christian worship. These services take place each Sunday morning at 11.00 am. There are also occasional services at other times which are advertised on the Church Notice Board and on the website at www.kidderminsterbaptist.com. There is a full children’s programme during the morning services. The church seeks to be a friendly and welcoming community, and anybody is free to attend any of these services.
The Church runs a series of small groups for the growth of faith and discipleship. Further details of these can be obtained from the Trustees on request, or at the Sunday services of worship.
The Church is responsible for a Toddler Group which meets in the Church premises on Friday mornings, with the purpose of assisting the community and demonstrating the love of Jesus Christ. From time to time the Church runs courses for people interested in discovering more about Christianity, i.e., ‘Alpha’.
The Church runs various events for families, community and for people in the Third Age; including Oasis coffee morning; Renew Hope Wellbeing space; Treat or Treat (Halloween).
The Church regularly hires the facilities to local community groups including, Dance and Fitness Groups; Slimming World; Brownies and ad-hoc party bookings.
The Church operates systems to ensure that all people working with children and vulnerable adults are appropriately vetted with regard to the Disclosure and Barring Service and has a Safeguarding policy in force which is reviewed annually. Appropriate Safeguarding training is provided.
The church has read the Charity Commission guidance on public benefit, and is satisfied that the activities outlined above clearly demonstrate that the charity is providing a benefit to the public.
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Achievements and Performance
The Church does not measure the success of its programmes only in numbers, including financial numbers, but also in less tangible areas like fellowship and encouragement. The Trustees recognise that these are difficult to measure, but believe that 2022 was a positive year in the life of the church, despite the constraints on meeting together during the Covid pandemic, and that it will be able to pursue its mission purposes in 2023 with renewed enthusiasm.
Two people joined the church having publicly reaffirmed their faith in Jesus Christ. Sadly 1 church member died during the year. At 31 December 2022 the membership stood at 48.
During the year we are pleased that there have been a number of new attenders and the average attendance at worship services been around 75. Over the last few years, we have undertaken 3 major refurbishment programmes and now have good quality premises which have contributed to an increase in prospective hirers. Through various other events like Tots Time, Treat or Treat, Oasis, Renew Hope and a Community Christmas Carol Service, many new people have connected with the church for the first time.
The church continues to be encouraged by feedback from those attending community events, the positive part the church played in the life of the community of Franche. In addition to activities formally linked to the church, members also served as volunteers in other local charities and organisations, including school governors, Home Start volunteers, helpers at local school events, and as mission partners for charities supported by the church during the year; Open Doors, and Home for Good. In addition, the Church have begun to form a working arrangement with Christians Against Poverty (CAP) where we will be able to support those in our local community with financial concerns.
Financial Review
Whilst the church registered as a charity in October 2021, it only commenced operating as a charitable incorporated organisation (CIO) with effect from 1 September 2022. The assets and liabilities of the unincorporated Kidderminster Baptist Church were transferred to the CIO on this date. The financial information that follows therefore relates to the period 1 September 2022 to 31 December 2022.
The Church raises the funds which it needs to carry on its activities from within its own membership and congregation. No wider public appeal was made for funds during the four-month operating period and total funds raised were £24,702. The most significant expense related to the employment costs of Revd Jason Borlase Trustee as Minister of the Church, to lead and co-ordinate the church’s activities including the Sunday Services, to provide pastoral care for the congregation and other people, and to equip and encourage the membership in their life, Christian witness, and service. The Church expressed its part in the life of the wider church by making grants totalling £2,808 to national and international Christian organisations and societies with Christian aims and objectives compatible with the church’s own charitable purpose.
The Church is heavily dependent on its membership working as volunteers in all aspects of the church’s activities, many of which run with little or no impact on the church’s expenditure, but nevertheless contribute substantially to the achievement of the church’s objectives. Total expenditure for the period was £21,531 The financial results for the period, together with a summary of the accounting policies adopted are set out in the accompanying financial statements.
The Trustees have established a Reserves Policy to enable the church to function effectively and meet its obligations in the event of a decline in our income or a major cost. Having considered the relevant risks of changes in income and expenditure, the Trustees have determined that the appropriate level of reserves is £35,750.
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As at 31 December 2022, the church held total reserves of £68,213 of which £67,596 were unrestricted, £480 restricted and £137 designated. The restricted and non-restricted funds both relate to the planned employment of a children and family worker with associated costs. The church plans to employ into this role in September 2023 to contribute to the furtherance of its aims and objectives.
Pension
We are pleased to advise that the Baptist Union Pension liability relating to previous years has now been removed.
Reserves Policy March 2023
What is a reserves policy and why do we need it ?
The money that we use for the day to day running of the church comes from the generous giving of members and attenders and from other avenues such as rental income and grants. Any money we have is held in a general fund and this is freely used for the sharing of God’s word and the day to day running costs of the church. We sometimes have other funds that are designated for something specific, but they are not included in this policy.
A reserves policy is about holding appropriate levels of financial reserves to protect against future uncertainties. This is so that we will be able to continue operating if something untoward should occur. As a church we should not hoard our funds but use them for the purposes of the church. However, this needs to be balanced against the requirement that if the church is to be maintained as a continuing, going concern, it needs to retain “reasonable” reserves to ensure it can cope with financial challenges.
The purpose of holding reserves is to ensure that the church has sufficient funds available to cope with financial issues that might arise, such as the need to fund an urgent property repair or an issue with reduction in offerings or income. The Baptist Union and the Charity Commission recommend the implementation of a reserves policy and as a registered charity we are required by law to have one in place.
What level of reserves do we need?
In following the guidance available the trustees have considered the circumstances of our church and have determined a level of reserves that we deem appropriate to cope with a reasonable range of possible situations. It should be noted that this will not necessarily allow the church to cope with extreme situations. How we will monitor and review the policy. The deacons, along with the membership, will regularly review the financial position. If a situation arises where the reserves policy limit may be exceeded, then action will be taken to review and reduce expenditure where possible in order that the required level of reserves is met. The level of the reserve will be reviewed at least every twelve months.
The next review is scheduled for March 2024 (last review was November 2022).
Risks and Reserve Policy Calculation: Risk Estimate Level of risk Value Major building repair £20,000 Low risk £5,000 New boiler £16,000 High risk £12,000 Roof repairs £15,000 High risk £11,250 Reduction in offerings £6,000 Medium risk £3,000 6 months wind down costs £18,000 Low risk £4,500
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Considerations:
The building is in good order and well maintained therefore it is unlikely that there will be any major building cost. However, this does not consider the part of the church roof that was not replaced when we had work done 10 or more years ago. Repairs were made to the roof during 2022 and the roofer advised that it is likely that future work will be required. The estimated cost has been included as a high risk.
The heating system that we have in place is old and cumbersome. The deaconate has discussed this, and a decision made to replace just the boiler rather than change the whole system. A quote of £16,000 was received which is the basis for the provision figure.
A high proportion of our offerings are from regular giving, this is lower risk than one off donations. However, if the most significant regular donors were to leave the church this would present a risk to the amount of income we have and will affect our ability to operate as we are. It has therefore been included in our risk profile as a medium risk of £6,000.
If the church saw itself in financial difficulty steps would need to be taken to ensure that it did not have to close. We therefore need to provide a sum should this occur. At present the risk is deemed to be low. The amount to be held back should the unforeseen occur is calculated based on the level of risk as detailed above.
High risk items are multiplied by 0.75, medium risk by 0.50 and low risk by 0.25.
The full amount is not included because it is unlikely that all risks would occur at the same time. The level of the reserves policy has been agreed at £35,750 based on the current financial profile.
If we purchase a new boiler from our reserves during the next twelve months the figure will automatically reduce to £23,750.
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STATEMENT OF FINANCIAL ACTIVITIES FOR THE PERIOD ENDING 31 DECEMBER 2022
| General Fund Other Funds Notes £ £ INCOMING RESOURCES Voluntary Income Offerings 14,107 271 Tax refunds 1,935 26 Legacies Grants received 0 0 2 16,043 297 Investment and other Income Bank interest 338 Rent received 7,355 Mission and other income 669 3 8,362 0 |
|
|---|---|
| TOTAL FUNDS | |
| £ | |
| 14,378 | |
| 1,935 | |
| - | |
| - | |
| 16,340 | |
| 338 | |
| 7,355 | |
| 669 | |
| 8,362 | |
| TOTAL 24,405 297 |
24,702 |
| RESOURCES EXPENDED Costs of generating funds Ministry Pastoral 12,301 Worship 104 12,405 - Mission Administration 572 Subscriptions 0 Sunday club 436 Mission 2,091 Charity Donations 2,808 5,907 - EstablishmentProperty and Equipment 2,242 0 Utilities 977 3,219 - Total Resources Expended 7 21,531 0 |
|
| 12,301 | |
| 104 | |
| 12,405 | |
| 572 | |
| - | |
| 436 | |
| 2,091 | |
| 2,808 | |
| 5,906 | |
| 2,242 | |
| 977 | |
| 3,219 21,531 |
|
| Net incoming (outgoing) resources 2,874 297 |
3,171 |
| Net movement in funds 2,874 297 Reconciliation of Funds Funds brought forward 64,722 320 Restricted Funds 13 160 Designated Funds 13 137 Movement in unrestricted funds 13 2,874 Total Funds Carried Forward 67,596 617 |
|
| 3,171 | |
| 65,042 | |
| 160 | |
| 137 | |
| 2,874 | |
| 68,213 |
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Franche Road, Kidderminster, Worcs. DY11 5BE Registered Charity Number 1196300 Minister: Rev Jason Borlase
BALANCE SHEET AS AT 31 DECEMBER 2022
| Notes Tangible Fixed Assets 17 Current Assets Stocks Debtors 20 Bank and cash 22 Current Liabilities Creditors:amounts falling due within one year 23 Deferred income 24 Net current assets |
2,022 £ 577,786 0 2,946 68,426 1,327 1,832 68,213 |
Asset Transfer * 577,786 0 9,351 58,719 1,028 2,000 65,041 |
|---|---|---|
| Net Assets | 645,999 | 642,827 |
| Charitable funds: Endowment 26 Restricted 13 Designated 13 Unrestricted 13 |
577,786 480 137 67,596 |
577,786 320 0 64,722 |
| Net Assets | 645,999 | 642,827 |
- Assets transferred from the unincorporated Kidderminster Bapist Church, also known as Franche Road Baptist Church, via a transfer of assets agreement on the 1st September 2022.
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Franche Road, Kidderminster, Worcs. DY11 5BE Registered Charity Number 1196300 Minister: Rev Jason Borlase
Note 1 BASIS OF PREPARATION
The following accounts are for the period 27 October 2021 to 31 December 2022. However, the charity did not commence operation until 1 September 2022 when it took ownership of the assets and liabilities of the unincorporated Kidderminster Baptist Church in line with a transfer of assets agreement. It should therefore be noted that the revenue and costs in these accounts are for a four month period only. The accounts have been prepared under the historic cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes to these accounts. They have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on the 16 July 2014 and with the Charities Act 2011.
| Note 2 VOLUNTARY INCOME | Note 2 VOLUNTARY INCOME | ||||
|---|---|---|---|---|---|
| **Unrestricted ** | **Designated ** | **Restricted ** | Endowment | TOTAL | |
| £ | £ | £ | £ | £ | |
| Offerings | 14,107 | 111 | 160 | 0 | 14,378 |
| Tax Refunds | 1,935 | 26 | 0 | 0 | 1,961 |
| Total | 16,043 | 137 | 160 | 0 | 16,340 |
| Note 3 OTHER INCOME | |||||
| **Unrestricted ** | **Designated ** | **Restricted ** | Endowment | TOTAL | |
| £ | £ | £ | £ | £ | |
| Bank Interest | 338 | 0 | 0 | 0 | 338 |
| Rent Received | 7,355 | 0 | 0 | 0 | 7,355 |
| Mission and other | 669 | 0 | 0 | 0 | 669 |
| Total | 8,362 | 8,362 |
| Note 3 OTHER INCOME | ||||||
|---|---|---|---|---|---|---|
| **Unrestricted ** | **Designated ** | **Restricted ** | Endowment | TOTAL | ||
| £ | £ | £ | £ | £ | ||
| Bank Interest | 338 | 0 | 0 | 0 | 338 | |
| Rent Received | 7,355 | 0 | 0 | 0 | 7,355 | |
| Mission and other | 669 | 0 | 0 | 0 | 669 | |
| Total | 8,362 | 8,362 | ||||
| Note 7 CHARITABLE ACTIVITIES **Unrestricted ** |
**Designated ** | **Restricted ** | Endowment | TOTAL | ||
| £ | £ | £ | £ | £ | ||
| Ministry | 12,405 | 0 | 0 | 0 | 12,405 | |
| Mission | 5,907 | 0 | 0 | 0 | 5,907 | |
| Establishment | 3,219 | 0 | 0 | 0 | 3,219 | |
| Total | 21,531 | 21,531 |
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Franche Road, Kidderminster, Worcs. DY11 5BE Registered Charity Number 1196300 Minister: Rev Jason Borlase
----- Start of picture text -----
Note 13 BALANCE OF ALL FUNDS
Incoming Resources
Opening Balance Resources Expended Transfers Closing Balance
FUND £ £ £ £ £
General fund incl savings 64,722 24,405 (21,531) 0 67,596
Restricted Fund 320 160 0 480
Designated Fund 0 137 0 137
Total 65,042 24,702 (21,531) 0 68,213
----- End of picture text -----
General Fund
The General Fund is an unrestricted fund and used for the day to day receipts and payments.
Restricted Fund
This fund is for the employment and activities of a children and familiy's worker. It is expected that this role will be filled in late 2023.
Designated Fund
This fund is for the employment and activites of a children and family's worker as per the restricted fund.
| Note 17 FIXED ASSETS | |
|---|---|
| Assets As at 27 October 2021 Additions Disposals As at 31 December 2022 Net Book value |
C Church Building Manse Building Total £ £ £ 407,175 170,611 577,786 |
| 407,175 170,611 577,786 |
|
| 407,175 170,611 577,786 |
|
The Church building is included in the balance sheet at £407,175 because reliable cost information is not available. Formal valuation would incur significant costs that would be onerous compared with the additional benefits gained by the users of the accounts. Refurbishment and maintenance costs are met as required and maintain the useful life of the assets. Both the church and the manse are held in trust by the Baptist Union.
Furniture or equipment is capitalised when the total purchase cost exceeds £15,000. As at the 31/12/22 the Church does not own or have use of any furniture or equipment above this value.
Depreciation
Depreciation has not been charged on the Church or the Manse premises because, in the opinion of the trustees the residual value of the assets is not less than the original cost price.
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Franche Road, Kidderminster, Worcs. DY11 5BE Registered Charity Number 1196300 Minister: Rev Jason Borlase
----- Start of picture text -----
Note 20 Debtors £
Other debtors 2,946
Total Debtors 2,946
Note 22 Bank and cash balance
£
Balance at Barclay's bank 13,675
Baptist Union account - Legacy 54,741
Petty cash - TotsTime 9
Total cash 68,426
Note 23 Creditors
£
Payments due within one year 1,327
Total creditors within one year 1,327
Note 24 Deferred Income
£
Grant received from Cinnamon Trust for Renew Wellbeing 1,832
Total creditors within one year 1,832
----- End of picture text -----
| Note | 26 | - Endowment funds | - Endowment funds | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Opening Balance | Expend | Gains/losses | Transfers | £ | |||||
| Church | 407,175 | 0 | 0 | 0 | 407,175 | ||||
| Manse | 170,611 | 0 | 0 | 0 | 170,611 | ||||
| Total | 577,786 | 0 | 0 | 0 | 577,786 |
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Franche Road, Kidderminster, Worcs. DY11 5BE Registered Charity Number 1196300 Minister: Rev Jason Borlase
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