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2023-12-31-accounts

Charity registration number 1196359

MALVERN BAPTIST CHURCH

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

MALVERN BAPTIST CHURCH

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Revd D Clarke (Minister)
Dr M A Smith (Treasurer)
Mr J Berry
Mrs S Chappell (Secretary)
Mr A Noble (Appointed 1 January 2023)
Mr G Davies (Appointed 1 January 2023)
Property Trustees The Baptist Union Corporation Limited
Baptist House
129 Broadway
Didcot
Oxfordshire
OX11 8RT
Charity number 1196359
Principal address Malvern Baptist Church
Abbey Road
Great Malvern
WR14 3HG
Independent examiner Kendall Wadley
Granta Lodge
71 Graham Road
Malvern
Worcestershire
WR14 2JS
Bankers Lloyds Bank plc
48 Belle Vue Terrace
Malvern
Worcestershire
WR14 4QG

MALVERN BAPTIST CHURCH

CONTENTS

Page
Trustees' report 1 - 4
Independent examiner's report 5
Statement of financial activities 6 - 7
Balance sheet 8
Notes to the financial statements 9 - 17

MALVERN BAPTIST CHURCH

TRUSTEES' REPORT

FOR THE YEAR ENDED 31 DECEMBER 2023

The Trustees present their annual report and financial statements 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 financial statements and have been prepared on the "receipts and payments" basis in accordance with the Charity Commission guide (CC16).

On 1st January 2023, the undertaking, liabilities, staff and assets of the unincorporated charity the Malvern Baptist Church were transferred to this charity Malvern Baptist Church CIO, a charitable incorporated organisation.

Objectives

The principal purpose of the charity is the advancement of the Christian faith according to the principles of the Baptist denomination. The charity may also advance education and carry out other general charitable purposes in the United Kingdom and/or other parts of the world as the Church may determine.

Public Benefit

The trustees confirm that they have complied with their duties under Section 17 (5) of the Charities Act 2011 to have due regard to the guidance in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives and in planning future activities.

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 at 10.30 am and some Sunday evenings at 6.30 pm (typically twice a month). There are also occasional services at other times, which are advertised on the Church Notice Board and the website at malvernbaptistchurch.org.uk. There is a full children’s programme during the morning services. The Church holds “Café Church” regularly, an informal service that allows members of the church and wider community to discuss ethical and topical subjects. The church continues with “Open to God” on Sunday evenings, an informal service where the exercise of spiritual gifts is encouraged. The church seeks to be a friendly and welcoming community and anybody is free to attend any of these services.

Activities

The Church runs a series of house groups for the growth of faith and discipleship in the homes of some members, and further details of these can be obtained from the Trustees on request, or at the Sunday services of worship. The participation in house groups has grown during the year.

The Church operates “Coffee Stop” on Wednesday mornings, a drop-in coffee shop which offers a friendly environment to members of the church and wider community

The Church has an active Men’s group which meets regularly for breakfast and discussion in a local hotel.

From time to time the Church runs courses for people interested in discovering more about Christianity, entitled ‘Alpha’, “Encountering Jesus”, and “Hope Explored”.

The church ran a successful CAP Life Skills programme for local people, helping them to live on a reduced budget and a number of attendees remain in contact with the church.

MALVERN BAPTIST CHURCH

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

The Church runs various events for Young People. 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. The Church is the sponsoring church for Malvern Girls’ Brigade and Malvern Boys’ Brigade, uniformed Christian youth organisations whose aims are the physical, social, emotional and spiritual development of young people. The church is in the process of closing the Girl’s Brigade and transforming the Boy’s Brigade to include a Girl’s Association.

The Church has a popular walking group, which meets weekly for local walks and attracts people from both the Church and the community. Occasionally the group tackles longer walks, including the Worcestershire Way. This year we completing a four-day walk of the Hope Pilgrimage Way in Derbyshire.

The Church is an active member of Churches Together in Malvern, and this year hosted the united service.

The Church also makes its building available for community organisations to hire. The Church sees this as good stewardship of our resources and another way to show loving provision for the needs of the wider community. Currently, regular users of the premises include a number of University of the Third Age groups, a museum committee, and a residents’ committee.

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 membership at Dec 31st 2022 stood at 48 and the membership at Dec 31st 2023 stood at 49.

1 person was baptised during 2023 and 2 people became church members.

1 church member died during the year, and 1 moved to another church in a different part of the country. None left the church for other reasons.

A very popular event attended by over 150 people was an Easter Egg Hunt in the local park, introducing children and families to the Easter story

In addition, members of the Church are involved as volunteers in local community organisations including Christians Against Poverty, the Lyttleton Well Bookshop, Café & Counselling Service, Community Action and Malvern Theatre.

The Church looks forward to 2024. The challenge is to encourage the regular members whilst looking ahead to the opportunities for mission which will hopefully emerge later in the year.

The church plans to continue with the CAP Lifeskills programme, looking to run the courses in local community facilities.

MALVERN BAPTIST CHURCH

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

Financial review

The Church continues to raise 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 year.

The most significant expense relates to the employment of our Minster Revd David Clarke, who is a Trustee. He leads and coordinates 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 donating to other British charities and organisations, who work both domestically and internationally, including the Baptist Union of Great Britain (BUGB) Home Mission and Baptist Missionary Society (BMS) world mission.

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.

The financial results for the year, together with a summary of the accounting policies adopted are set out in the accompanying financial statements.

The church is a participating employer within the Defined Benefit section of the Baptist Pension scheme. Historically, the church made deficit payments to cover the costs of past service of its employees within the scheme under a recovery plan. This may be reinstated should the financial situation change. Note, with the agreement of BUGB the direct-debit for the deficit payments is still in service, taking a nominal £1.00 per month.

The net incoming resources for the year are £2,815 (2022 - net outgoing £10,943) of which £66 (2022 - outgoing £ 12,139) was in connection with unrestricted activities.

Total reserves at the reporting date are £ 72,145 (2022 - £69,330) of which £7,607 (2022 - £4,858) is restricted.

The Trustees have assessed the major risks to which the Church is exposed, and are satisfied that systems are in place to mitigate exposure to the major risk.

Plans for future periods

From the 1st January 2024 the charity has continued the activities detailed in this report.

Structure, governance and management

The Charity is a charitable incorporated organisation (CIO), governed by its constitution dated 2 November 2021. As detailed in the accounting policies these accounts incorporate the undertaking, liabilities, staff and assets of Malvern Baptist Church, which is an unincorporated charity, constituted by its Trust deed.

The Charity 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, or following other modes of baptism to renew their public profession of faith in Jesus Christ.

The members Meeting takes place not less than 4 times per year and has responsibility for the overall policy of the church. In accordance with the Constitution, the members appoint 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.

Trustees are drawn from the Members of the church.

MALVERN BAPTIST CHURCH

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

The Trustees who served during the year and up to the date of signature of the financial statements were:

Revd D Clarke (Minister) Dr M A Smith (Treasurer) Mr J Berry Mrs S Chappell (Secretary) Mr A Noble (Appointed 1 January 2023) Mr G Davies (Appointed 1 January 2023)

The Trustees' report was approved by the Board of Trustees.

Dr M A Smith (Treasurer) Trustee

16 October 2024

MALVERN BAPTIST CHURCH

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF MALVERN BAPTIST CHURCH

I report to the Trustees on my examination of the financial statements of Malvern 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 financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).

I report in respect of my examination of the Charity’s financial statements carried out under section 145 of the 2011 Act. In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

My examination was carried out in accordance with general Directions given by the Charity Commission. 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 explanation from the 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.

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

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 financial statements to be reached.

Sarah Morley BA Hons ACA

Kendall Wadley LLP Granta Lodge 71 Graham Road Malvern Worcestershire WR14 2JS

Dated: 16 October 2024

MALVERN BAPTIST CHURCH

RECEIPTS AND PAYMENTS ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2023

Current financial year
Unrestricted
Unrestricted
Restricted
funds
funds
funds
general
designated
2023
2023
2023
Notes
£
£
£
Income from:
Donations and legacies
2
62,742
-
3,288
Other trading activities
3
11,524
-
-
Investments
4
262
-
-
Total income
74,528
-
3,288
Expenditure on:
Charitable activities
5
69,138
2,743
3,120
Total expenditure
69,138
2,743
3,120
Net income/(expenditure)
5,390
(2,743)
168
Transfers between funds
10
(5,280)
2,699
2,581
Net movement in funds
110
(44)
2,749
Reconciliation of funds:
Cash balances at 1 January 2023
58,681
5,791
4,858
Cash balances at 31 December
2023
58,791
5,747
7,607		 Total
Total
2023
2022
£
£
66,030
56,882
11,524
11,307
262
27
77,816
68,216
75,001
79,159
75,001
79,159
2,815
(10,943)
-
-
2,815
(10,943)
69,330
80,273
72,145
69,330

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

MALVERN BAPTIST CHURCH

RECEIPTS AND PAYMENTS ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2023

Prior financial year Unrestricted Unrestricted Restricted Total
funds funds funds
general designated
2022 2022 2022 2022
Notes £ £ £ £
Income from:
Donations and legacies 2 51,523 2,400 2,959 56,882
Other trading activities 3 11,307 - - 11,307
Investments 4 27 - - 27
Total income 62,857 2,400 2,959 68,216
Expenditure on:
Charitable activities 5 63,256 11,615 4,288 79,159
Total expenditure 63,256 11,615 4,288 79,159
Net income (399) (9,215) (1,329) (10,943)
Transfers between funds 10 (11,775) 9,250 2,525 -
Net movement in funds (12,174) 35 1,196 (10,943)
Reconciliation of funds:
Fund balances at 2 November 2021 70,855 5,756 3,662 80,273
Fund balances at 31 December 2022 58,681 5,791 4,858 69,330

MALVERN BAPTIST CHURCH

BALANCE SHEET

AS AT 31 DECEMBER 2023

Notes
Current assets
Cash at bank and in hand
Net current assets
The funds of the Charity
Restricted income funds
12
Unrestricted funds - general
Unrestricted funds - designated
13		 2023
£
72,145		 £
72,145
72,145
7,607
58,791
5,747
72,145		 2022
£
69,330		 £
69,330
69,330
4,858
58,681
5,791
69,330

The financial statements were approved by the Trustees on 16 October 2024

Dr M A Smith (Treasurer) Trustee

MALVERN BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

1 Accounting policies

Charity information

Malvern Baptist Church is a Charitable Incorporated Organisation (CIO) and its registered address is Abbey Road, Great Malvern, WR14 3HG.

1.1 Accounting convention

The annual financial statements are produced on the "receipts and payments" basis in accordance with the Charity Commission guide (CC16).

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 £.

On 1 January 2023 the CIO acquired the assets, and staff of the unincorporated charity operating as Malvern Baptist Church. Merger accounting has been applied, comparatives where shown relate to the combination of activities of the CIO and the unincorporated entity for the year ended 31 December 2022. Of the amounts shown income of £50 and expenditure of £14 related to the CIO.

The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, 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 in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.

Designated funds comprise funds which have been set aside at the discretion of the Trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements.

Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

There are no additional church funds not covered by this report.

1.4 Income

Income is recognised on a receipts basis.

1.5 Expenditure

Expenditure is recognised on a defrayed basis.

MALVERN BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

1 Accounting policies

(Continued)

1.6 Tangible fixed assets

The year-end Statement of Net Current Assets and Funds excludes fixed assets because it is not possible to provide reliable and meaningful valuations. Even so, note should be taken of the following comments.

i. Freehold Properties

The Church is the beneficial owner of the land and premises at Abbey Road Malvern and the manse at 57 Leigh Sinton Road Malvern. The legal title to these properties is held by the Baptist Union Corporation Ltd as custodian trustee.

ii. Fittings Fixtures Furnishings & Equipment

Each year any relevant costs will continue to be fully charged to revenue expenditure and this approach equates with a depreciation provision of 100% in the year of acquisition.

iii. Insurance Cover

Current insured values are:

Church premises at Abbey Road Malvern - £3,982,086 Church manse at 57 Leigh Sinton Road Malvern - £675,00 Church contents - £98,021

1.7 Borrowing

There are no long term loans.

1.8 Cash and cash equivalents

Cash and cash equivalents include cash in hand, and deposits held at call with banks.

1.9 Retirement benefits

Payments to the defined benefit Baptist Pension Scheme are accounted for as if a defined contribution scheme, and are charged as an expense as payment is made.

Total 2022 £ 56,882 - 56,882
Restricted funds 2022 £ 2,959 - 2,959
Unrestricted Unrestricted funds
funds		 general designated 2022
2022		 £
£		 51,523
2,400		 -
-		 51,523
2,400
Total 2023 £ 66,020 10 66,030
Restricted funds 2023 £ 3,288 - 3,288
Unrestricted Unrestricted funds
funds		 general designated 2023
2023		 £
£		 62,732
-		 10
-		 62,742
-

MALVERN BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

3 Income from other activities

Unrestricted Unrestricted
funds funds
2023 2022
£ £
Church/Hall hire 1,612 1,116
Manse rent 9,912 10,191
11,524 11,307

4 Income from investments

Unrestricted Unrestricted
funds funds
2023 2022
£ £
Interest receivable 262 27

MALVERN BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

5 Charitable activities

Staff costs
Ministry expenses
Guest Leaders
Away day
Brigade expenses and sponsorship
Office expenses
Rent and rates
Utilities
Insurance
Cleaning & maintenance
General expenses
Donations
Training
Subscriptions
Asset replacement
Outreach
Share of support costs (see note 6)
Share of governance costs (see note 6)
Analysis by fund
Unrestricted funds - general
Unrestricted funds - designated
Restricted funds		 2023
£
30,160
3,015
295
260
580
489
12,337
2,033
3,704
10,104
690
860
195
721
6,791
-
72,234
-
2,767
75,001
69,138
2,743
3,120
75,001		 2022
£
30,903
2,313
-
-
-
191
11,937
4,310
3,672
16,015
807
4,033
935
986
2,800
243
79,145
14
-
79,159
63,256
11,615
4,288
79,159

MALVERN BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

6 Support costs

Support
costs
Governance
costs
£
£
Bank charges
-
-
Legal and professional
-
2,767
-
2,767
Analysed between
Charitable activities
-
2,767		 2023
Support
costs
Governance
costs
£
£
£
-
14
-
2,767
-
-
2,767
14
-
2,767
14
-		 2022
£
14
-
14
14

7 Trustees

None of the Trustees (or any persons connected with them) received any remuneration or benefits from the Charity during the year, other than the remuneration and re-imbursed expenses of the Minister. Remuneration is shown below, and ministry expenses can be seen in note 5.

8 Employees

The average monthly number of employees during the year was:

2023 2022
Number Number
1 1
Employment costs 2023 2022
£ £
Wages and salaries 26,497 22,036
Other pension costs 3,663 8,867
30,160 30,903

There were no employees whose annual remuneration was more than £60,000.

Remuneration of key management personnel

The remuneration of key management personnel is as shown above.

9 Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

MALVERN BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

10 Transfers

Transfers are made from unrestricted funds to cover deficits on designated and restricted funds, together with a 5% apportionment of regular offerings which is committed to charitable donations.

11 Retirement benefit schemes

Retirement benefit schemes
2023 2022
Defined contribution schemes £ £
Charge to profit or loss in respect of defined contribution schemes 3,663 8,867

12 Restricted funds

The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust to enable donations to be made to the following charities:

At 1 January Incoming Resources Transfers At 31
2023 resources expended December
2023
£ £ £ £ £
Fellowship 322 - - - 322
Home Mission 417 - - 483 900
BMS Birthday - 290 - - 290
BMS General 860 - - 483 1,343
Operation AGRI - 354 - - 354
Chelmsley Wood 25 - - - 25
MAF 505 - - - 505
CAP 410 144 (720) 166 -
Leprosy Mission 2,204 - - 483 2,687
MAGS 115 - - - 115
Tear Fund - 100 - 483 583
Open Doors & Barnabus - - - 483 483
Fabric - restricted - 2,400 (2,400) - -
4,858 3,288 (3,120) 2,581 7,607

MALVERN BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

12 Restricted funds (Continued)
Previous year: At 1 January Incoming Resources Transfers At 31
2022 resources expended December
2022
£ £ £ £ £
Fellowship 322 - - - 322
Home Mission 167 - (255) 505 417
BMS 229 2,820 (2,694) 505 860
Opoeration AGRI 250 - (250) - -
Chelmsley Wood 25 - - - 25
MAF 476 - (476) 505 505
CAP 476 24 (595) 505 410
Leprosy Mission 1,717 - (18) 505 2,204
MAGS - 115 - - 115
3,662 2,959 (4,288) 2,525 4,858

13 Unrestricted funds - designated

These are unrestricted funds set aside to address repairs to the fabric of the church and to advance fellowship of the church.

At 1 January Incoming Resources Transfers At 31
2023 resources expended December
2023
£ £ £ £ £
Fabric - unrestricted 44 - (2,743) 2,699 -
Fellowship 5,747 - - - 5,747
5,791 - (2,743) 2,699 5,747
Previous year: At 1 January Incoming Resources Transfers At 31
2022 resources expended December
2022
£ £ £ £ £
Fabric 9 2,400 (11,615) 9,250 44
Fellowship 5,747 - - - 5,747
5,756 2,400 (11,615) 9,250 5,791

MALVERN BAPTIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

14 Analysis of net assets between funds

Unrestricted
Unrestricted
Restricted
funds
funds
funds
general
designated
2023
2023
2023
£
£
£
At 31 December 2023:
Current assets/(liabilities)
58,791
5,747
7,607
58,791
5,747
7,607
Unrestricted
Unrestricted
Restricted
funds
funds
funds
general
designated
2022
2022
2022
£
£
£
At 31 December 2022:
Current assets/(liabilities)
58,681
5,791
4,858
58,681
5,791
4,858		 Total
2023
£
72,145
72,145
Total
2022
£
69,330
69,330

15 Related party transactions

Other than as described in note 7, there were no disclosable related party transactions during the year (2022 - none).