Docusign Envelope ID: 7C4FC1EE-D8E1-4E9F-ABF0-6D4116B0684F
## **Cairns Road Baptist Church**
**Report and Unaudited Accounts For the year ended 31 December 2023**
Docusign Envelope ID: 7C4FC1EE-D8E1-4E9F-ABF0-6D4116B0684F
## **Cairns Road Baptist Church**
## **Report and Unaudited Accounts**
## **Contents**
||**Page**|
|---|---|
|**Trustees’ Annual Report**|**3 to 6**|
|**Independent Examiner’s Report**|**7**|
|**Statement of Financial Activities**|**8**|
|**Balance Sheet**|**9**|
|**Notes forming part of the Financial Statements**|**10 - 17**|
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Docusign Envelope ID: 7C4FC1EE-D8E1-4E9F-ABF0-6D4116B0684F
## **Cairns Road Baptist Church**
## **Trustees’ Annual Report**
## **Reference and Administrative Information**
Charity name: Cairns Road Baptist Church Charity registration number: 1197272 Registered Office and Operational address: Cairns Road Baptist Church Cairns Road Westbury Park Bristol BS6 7TH
**Trustees during 2023** David Cahill Andy Cordell (retired 31 January 2023) Anna Long Maki Mi ç o Colin Thomas (retired 31 July 2023) Gita Samuelsson Sam Marquez-Vega Alex Popkin (appointed 15 January 2023) Liz Cheesman (appointed 15 January 2023) Peter Turnill (appointed 15 January 2023)
The trustees of the company are also charity trustees for the purposes of charity law.
## **Banker**
CAF Bank, 25 Kings Hill Avenue, Kings Hill, West Malling, Kent ME19 4JQ.
## **Reporting Accountant**
Melanie Mistry CGMA 30 Highfield Grove Bristol BS7 8QH
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Docusign Envelope ID: 7C4FC1EE-D8E1-4E9F-ABF0-6D4116B0684F
## **Report of the Board of Trustees**
The Trustees present their report and unaudited financial statements for the year ended 31 December 2023.
During the prior year, on 31st March 2022, all assets and liabilities of Cairns Road Baptist Church (registered charity number 1162089) were transferred to a Charitable Incorporated Organisation (CIO) also called Cairns Road Baptist Church (registered charity number 1197272). The new CIO charity has the same charitable purposes as the old charity and kept the same trustees, as well as adding new ones during 2022.
## **Structure, Governance and Management**
## **Governing Document**
The earliest written records for Cairns Road Baptist Church date back to 1652. In 1815, the church moved from The Pithay to Old King Street in the centre of Bristol. As part of the redevelopment of Bristol after the Second World War, it was relocated to Cairns Road, Westbury Park where it remains to this day.
The Governing Document (Constitution) for Cairns Road Baptist Church was written, agreed by the church, and then signed on 22[nd] December 2021.
## **Recruitment and Appointment of Management Committee**
The charity trustees are appointed by the members of the church and are listed on the previous page.
The trustees are responsible for the governance of the church and having the general control and management of the administration of a charity seek to ensure that the needs of the charitable objectives and activities are met.
## **Objectives and activities**
The charity’s purposes (as set out in the governing documents) are the advancement of the Christian faith according to the principles of the Baptist denomination. The Church may also advance education and carry out other charitable purposes in the United Kingdom and/or other parts of the world.
The main activities undertaken in relation to these objects were:
- regular public worship, prayer, Bible study, preaching and teaching;
- undertaking baptisms and the Communion of the Lord’s Supper;
- evangelism and mission, locally, regionally, nationally and internationally;
- the teaching, encouragement, welcome and inclusion of children and young people;
- nurture and growth of Christian disciples;
- education and training for Christian and community service;
- giving and encouraging pastoral care;
- supporting and encouraging charitable social action in the United Kingdom and abroad;
- encouraging relationships with and supporting Baptists and other Christians.
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## **Achievements and performance for year-end 31[st] December 2023**
## **Vision and Mission Statement**
We engaged the church in a consultation process ending with agreeing to adopt a new vision and mission statement:
_**Our Vision:** Bringing the Hope of Jesus to Westbury Park and Beyond_
_**Our Mission statement: ‘** Commissioned by Christ and led by His Spirit, we want to be wholehearted disciples who expect the good news of Jesus to transform individuals, community, society and culture as we share in Father God’s love for our neighbourhood, Bristol and beyond’._
We also adopted some agreed values which underpin our priorities for the church culture we aspire to:
- We are Bible-Believing and Evangelical
- We have Christ at the Centre of everything
- We seek for God’s Kingdom to come
- We are commanded to love God and our neighbour
- We are expectant in our prayers, believing that God hears and answers
## **Worship**
We have continued to offer the public service of worship throughout the year, whilst continuing to offer a zoom option to those unable to be physically present. We also finished the two year Bible teaching program (which we called “Restore 2023” this year) where we would read through the Bible as a church over two years. The Sunday sermons also followed this pattern, with each sermon focusing on a book or section of a book that we had read over the past week, coupled with a pattern of regular YouTube videos.
As part of our Sunday gatherings, we have also been taking Communion monthly, accompanied by a “love offering” to a chosen charity, mission, or cause.
## **Weekly Daytime activities**
Our Community and Outreach worker expanded the offering with a new group called “Small Space” for 0-4s which ran alongside our other midweek groups including “Refresh” (for mums of small children), “Meet & Make” (mainly for older adults), and various other events including “Crafting Hope” events, an afternoon senior’s tea and an Easter experience.
## **Youth and Children**
We continued to run our youth discipleship groups, Foundation and YAS, as well as groups for children and young people on Sundays. We also launched “Football Church”, and an after school club, both aimed at older primary school children.
## **Noah’s Ark Pre-school**
The church maintained its formal, relational and practical links with Noah’s Ark @ CRBC (Company number 5522743; charity number 1112004). We, as a church, prioritised the Pre-school's use of our building space, along with supporting them, and they continued to offer a broad, open-ended curriculum. Noah’s Ark also provides specialised support for a number of children with additional needs or from difficult backgrounds.
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## **Mission**
We continued to provide prayer, pastoral and financial support to our mission partners in Albania, Bulgaria, Nepal and the UK.
This year, the West of England Baptist Association continued to build on their partnership with the Baptist Union of Albania. The WEBox appeal led to many boxes being collected and distributed in schools, villages, and hospitals in Albania.
We also ran “Follow the Star” – an interactive nativity across the church premises open to the public and the neighbourhood.
## **Management**
Oversight and vision continued to be provided by our leadership team.
Church Meetings were scheduled at intervals of least five times a year.
## **Financial Review**
In the year ended 31 December 2023 the net movement in Funds was -£11,524. This was approximately in line with the budget we agreed before the year, which included a planned deficit of £9,413 in line with a commitment to maintaining staff salaries above the guidelines set by the Real Living Wage foundation. We trusted that regular giving from church members would increase to cover this increased regular expenditure and were pleased to be able to report at the end of 2023 that this threshold had been reached on a monthly basis.
The church’s reserves are comfortably above the minimum £45k (commitments) + £20k (buildings) as stated in the church’s reserves policy.
The church has continued to be in a Deferred Debt Arrangement (DDA) with the Baptist Pension Trust, but ongoing deficiency payments remained at £1 per month throughout the year. Our current expectation is that the Baptist Pension Trust will soon have fully eliminated the risk of future deficits.
## **Political and charitable donations**
During the year the charity made no donations to a political party. Various charitable donations were made from the General Fund totalling £16,365, with a further £19,197 from Restricted Funds.
## **Statement of responsibilities of the trustees**
The law requires the trustees to prepare financial statements for each financial period which give a true and fair view of the state of affairs of the charity as at the end of a financial period and of the surplus or deficit for that period.
In preparing those financial statements the trustees are required to:
- Select suitable accounting policies and then apply them consistently.
- Make judgements and estimates that are reasonable and prudent.
- Prepare the financial statements on the going concern basis, unless it is inappropriate to presume that the company will continue in business.
The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking steps for the prevention and detection of fraud and other irregularities.
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Docusign Envelope ID: 7C4FC1EE-D8E1-4E9F-ABF0-6D4116B0684F
This report has been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities (FRS 102) and in accordance with the provisions applicable to companies subject to the small companies regime.
## **Approved by the Trustees on 21[st] October 2024 and signed on their behalf by:**
**………………………………………………………………………………**
Rev Maki Miço
Minister & Trustee, Cairns Road Baptist Church
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Docusign Envelope ID: 7C4FC1EE-D8E1-4E9F-ABF0-6D4116B0684F
## **Independent examiner’s Report to the Trustees of Cairns Road Baptist Church**
I report on the accounts for the year ended 31 December 2023 set out on pages 8 to 17.
## **Respective responsibilities of trustees and examiner**
The charity’s trustees are responsible for the preparation of the accounts, and they consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed.
Having satisfied myself that the charity is not subject to audit under company law and is eligible for independent examination, it is my responsibility to:
- examine the accounts under section 145 of the 2011 Act,
- to follow the procedures laid down in the General Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act: and
- to state whether particular matters have come to my attention.
## **Basis of independent examiner’s report**
My examination was carried out in accordance with the General Directions given by the Charity Commissioners. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and the seeking of explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and, consequently, no opinion is given as to whether the accounts present a ‘true and fair view’ and the report is limited to those matters set out in the statement below.
## **Independent examiner’s statement**
In connection with my examination, no matter has come to my attention:
- which gives me reasonable cause to believe that in any material respect the requirements: a) to keep accounting records in accordance with section 130 of the 2011 Charities Act; and
- b) to prepare accounts which accord with the accounting records, comply with the accounting requirements of the 2011 Act and with the methods and principles of the Statement of Recommended Practice: Accounting and Reporting by Charities (FRS 102) have not been met; or
- to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
**Melanie Mistry CGMA**
……………………………………………………………….
30 Highfield Grove, Bristol, BS7 8QH
10/22/2024 Date signed: …………………………………
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Docusign Envelope ID: 7C4FC1EE-D8E1-4E9F-ABF0-6D4116B0684F
## **Explanatory Notes: Funds**
Unrestricted funds are those funds that the church is not legally bound to use for any particular purpose. Designated funds, a type of unrestricted fund, are set aside by the Deacons for a special purpose. Restricted funds are restricted in their use by the terms of an appeal, or by the donor. Endowment funds are the permanent capital of the church. Their use is determined by the terms of the Trust Deed.
At 31 March 2022 all the assets and liabilities of a previous charity of the same name were transferred to this charity. The new charity was incorporated on 21 December 2021 and has the same charitable purposes as the old charity, and kept the same trustees. The old charity number was 1162089 and the new charity number is 1197272.
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Docusign Envelope ID: 7C4FC1EE-D8E1-4E9F-ABF0-6D4116B0684F
## **Cairns Road Baptist Church**
**BALANCE SHEET YEAR ENDED 31 DECEMBER 2023**
|**Notes**
**2023**
**£**
Tangible Fixed Assets
11
Current Assets
Debtors
12
25,946
Investments
13
168,431
Bank & cash
14
34,857
229,234
Current Liabilities
Creditors : amounts falling due
within one year
15
10,457
Net Current Assets
Deferred Liabilities
Creditors : amounts falling due after one year
Pension Liability
20
18
Net Assets
Charitable Funds
Endowment
16
Restricted
17
Designated
18
Unrestricted
19|**2023**
**£**
25,946
168,431
34,857|**2023**
**2022**
**2022**
**£**
**£**
**£**
555,659
560,692
20,774
163,865
47,406
232,044
6,767
218,777
225,278
28
774,418
785,942
540,000
540,000
46,398
42,885
37,707
35,129
150,314
167,928
774,418
785,942|
|---|---|---|
||229,234||
||10,457||
||||
The notes on the following pages form an integral part of these accounts
Alex Popkin Treasurer
10/21/2024
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Docusign Envelope ID: 7C4FC1EE-D8E1-4E9F-ABF0-6D4116B0684F
## **Cairns Road Baptist Church**
**NOTES TO THE ACCOUNTS YEAR ENDED 31 DECEMBER 2023**
## **1 ACCOUNTING POLICIES**
## **a Basis of preparation**
The accounts are prepared under Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard (FRS 102)
## **b Donations**
Donations are accounted for gross when received.
## **c Legacies**
Legacies are accounted for when their receipt is certain and can be properly quantified.
## **d Tax reclaim on donations and gifts**
Gift Aid receivable is included in income where there is a valid declaration from the donor. Any gift aid amount recovered on a donation is considered to be part of that gift and is treated as an addition to the same fund, initial donation unless the donor have specified otherwise.
## **e Grants payable**
The church makes grants to other organisations whose charitable objects further or complement its work. One off gifts are accounted for when the decision to pay them has been made by the church. Regular support to other organisations is accounted for in the month in which payment is made.
## **f Governance costs**
This represents direct expenditure on the governance of the church. Most of the management is carried out without charge by volunteers. This intangible cost is not included in the Statement of Financial Activities since there is no measurable cost for the service of the volunteers.
## **g Fixed Assets**
New fixed assets are capitalised at cost if the purchase value was £500 or higher.
## **h Depreciation**
Depreciation has not been charged on land and property owned by the church. Depreciation is charged at 15% on a straight line basis on fixtures, fittings and equipment.
## **i Investments**
Investments that are not part of the permanent capital of the church are treated as current assets, and stated at market value at the balance sheet date.
11
Docusign Envelope ID: 7C4FC1EE-D8E1-4E9F-ABF0-6D4116B0684F
## **Cairns Road Baptist Church**
## **NOTES TO THE ACCOUNTS YEAR ENDED 31 DECEMBER 2023**
## **2. Voluntary Income**
|**Year to**
**Unrestricted**
**Designated**
**Restricted**
**Endowment 31 Dec 2023**
**£**
**£**
**£**
**£**
**£**
Offerings & donations
129,238
-
4,525
-
133,763
Tax refunds
19,293
-
3,248
-
22,541
Grants
-
-
-
-
-
Legacies
-
-
-
-
-
Raised for other causes
-
-
13,408
-
13,408
148,531
-
21,181
-
169,712|**Year to**
**31 Dec 2022**
**£**
99,782
15,753
-
-
6,270
|
|---|---|
||121,805|
|**Year to**
**Year to**
**Notes Unrestricted Designated Restricted Endowment 31 Dec 2023**
**31 Dec 2022**|**Year to**
**Year to**
**Notes Unrestricted Designated Restricted Endowment 31 Dec 2023**
**31 Dec 2022**|**Year to**
**Year to**
**Notes Unrestricted Designated Restricted Endowment 31 Dec 2023**
**31 Dec 2022**|**Year to**
**Year to**
**Notes Unrestricted Designated Restricted Endowment 31 Dec 2023**
**31 Dec 2022**|
|---|---|---|---|
||**£**
**£**
**£**
**£**
**£**
**£**|||
|**3. Investment Income**
Bank etc interest
Hall lettings
Other building income
Other investment income|1,454
364
327
2,144
447
12,649
-
-
12,649
12,269
-
-
-
-
28
1,983
496
446
2,925
1,631
16,086
860
772
-
17,718
14,375|||
|**4. Incoming resources from charitable activities**||||
||**Year to**
**Year to**
**Unrestricted Designated Restricted Endowment 31 Dec 2023**
**31 Dec 2022**|
|---|---|
||**£**
**£**
**£**
**£**
**£**
**£**|
|Other activities
**5. Cost of generating funds**
Other costs|3,024
-
-
3,024
2,215
3,024
-
-
-
3,024
2,215
**Year to**
**Year to**
**Unrestricted Designated Restricted Endowment 31 Dec 2023**
**31 Dec 2022**
**£**
**£**
**£**
**£**
**£**
**£**
-
-
-
-
-
-
-
-
-
-
-
-|
12
Docusign Envelope ID: 7C4FC1EE-D8E1-4E9F-ABF0-6D4116B0684F
## **Cairns Road Baptist Church**
## **NOTES TO THE ACCOUNTS- contd YEAR ENDED 31 DECEMBER 2023**
## **6. Costs of activities in furtherance of the charity's objects.**
|Ministry
Mission
Establishment|**Unrestricted **
**£**
55,241
73,278
54,920|**Year to**
**Year to**
**Designated Restricted Endowment 31 Dec 2023**
**31 Dec 2022**
**£**
**£**
**£**
**£**
**£**
-
-
55,241
45,120
-
19,197
92,475
59,931
4,300
-
59,220
37,655
4,300
19,197
-
206,936
142,707|
|---|---|---|
||183,439||
|**7. Total resources expended**
Ministry
Mission
Establishment
Cost of generating funds||**Charitable**
**Grant**
**Support**
**Year to**
**Year to**
**activities**
**funding**
**costs**
**31 Dec 2023**
**31 Dec 2022**
**£**
**£**
**£**
**£**
**£**
46,320
-
8,921
55,241
45,120
48,320
35,562
8,593
92,475
59,931
52,447
-
6,774
59,220
37,655
-
-
-
-
-|
|Pension Interest||-
-
-
-
473|
|||147,087
35,562
24,287
206,936
143,180|
|**Notes**
**8. Grants payable**
Baptist Home Mission
Bulgaria (Sofia Baptist/Oprenovs)
YWAM (Prattens)
Nepal (Vokuhls)
North Africa
Ukraine (3 different ministries)
Webnet (WEBox appeal)
Network Counselling
Other gifts|**Unrestricted Designated Restricted**
**Year to**
**31 Dec 2023**
**£**
**£**
**£**
**£**
6,492
-
6,492
3,570
214
3,784
5,667
246
5,913
883
883
6,875
6,875
2,048
2,048
-
-
2,200
2,200
636
6,731
7,367
16,365
-
19,197
35,562|**Year to**
**31 Dec 2022**
**£**
5,261
3,209
4,735
469
532
1,252
638|
|---|---|---|
|||17,139|
||||
13
Docusign Envelope ID: 7C4FC1EE-D8E1-4E9F-ABF0-6D4116B0684F
## **Cairns Road Baptist Church**
## **NOTES TO THE ACCOUNTS- contd YEAR ENDED 31 DECEMBER 2023**
|**9. Support costs**
**Unrestricted Designated**
**Restricted**
**£**
**£**
**£**
Administrator
19,162
-
-
Governance costs
550
-
-
Other administrative costs
4,575
-
-
24,287
-
-
**10. Staff costs and Trustee expenses**
Salaries & Social Security Costs
Pension costs|**Unrestricted Designated**
**Restricted**
**£**
**£**
**£**
19,162
-
-
550
-
-
4,575
-
-|**Year to**
**Year to**
**31 Dec 2023**
**31 Dec 2022**
**£**
**£**
19,162
12,381
550
480
4,575
9,848
24,287
22,710
**Year to**
**Year to**
**31 Dec 2023**
**31 Dec 2022**
**£**
**£**
103,862
84,014
7,550
5,315
111,412
89,329|
|---|---|---|
||24,287
-
-||
The average number of employees (including part-time) during the period was 6 (2022: 7 employees). No employee received emoluments in excess of £60,000 during the period. No sums were reimbursed to the Trustees for their work as Trustees. Further details of the pension scheme are shown in Note 20.
|**11. Tangible Fixed Assets**
**Cost or Valuation**
At 31st December 2022
Additions
Disposals
At 31 December 2023
**Depreciation**
At 31st December 2022
Charge for year
On disposals
At 31 December 2023
**Net Book Value at 31 December 2023**
Net Book Value at 31 December 2022|**Manse**
**Total**
**£**
**£**
**£**
200,000
340,000
25,132
565,132
-
-
900
900
-
-
-
-
200,000
340,000
26,032
566,032
-
-
4,439
4,439
-
-
5,933
5,933
-
-
-
-
-
-
10,372
10,372
200,000
340,000
15,659
555,659
200,000
340,000
20,692
560,692
**Plant &**
**Machinery**
**Church building,**
**including fixtures**
**and fittings**|
|---|---|
14
Docusign Envelope ID: 7C4FC1EE-D8E1-4E9F-ABF0-6D4116B0684F
## **Cairns Road Baptist Church**
## **NOTES TO THE ACCOUNTS- contd YEAR ENDED 31 DECEMBER 2023**
|**12. Debtors**
Tax recoverable
Prepayments and other debtors
**13. Current asset investments**
WEBTC investment portfolio
Cash Deposits:
WEBTC 90 day cash deposit account
Baptist Union 3 month deposit account
Kingdom Bank 90 day deposit account
CAF Platinum Account
Total Cash Deposits
**Total Current Asset Investments**|**At 31**
**December**
**2023**
**At 31st**
**December**
**2022**
**£**
**£**
21,967
20,774
3,979
-
25,946
20,774
**At 31**
**December**
**2023**
**At 31st**
**December**
**2022**
**£**
**£**
93,973
89,013
13,729
13,204
20,301
40,429
-
61,648
74,459
74,852
168,431
163,865|
|---|---|
90 day cash deposit accounts have been reclassified as current asset investments rather than cash. Surplus cash held in high interest rate accounts with 90 day notice.
|**14. Bank & cash balances**
CAF Current Account
CAF Gold Account
CAF Debit Card Account
Baptist Union 7 day deposit account
Cash|**At 31**
**December**
**2023**
**At 31st**
**December**
**2022**
**£**
**£**
1,000
1,000
8,847
42,991
4,411
1,981
20,178
421
1,434
34,857
47,406|
|---|---|
15
Docusign Envelope ID: 7C4FC1EE-D8E1-4E9F-ABF0-6D4116B0684F
## **Cairns Road Baptist Church**
## **NOTES TO THE ACCOUNTS- contd YEAR ENDED 31 DECEMBER 2023**
|**15. Creditors : amounts falling due within one year**
Creditors and Accruals
Pension Liability due within 1 year
**16. Endowment Funds**
**At 31st**
**December**
**2022**
**Incoming**
**resource**
**Resources**
**expended**
**£**
**£**
**£**
Manse
340,000
-
-
Church building
200,000
-
540,000
-
-
**17. Restricted Funds**
**At 31st**
**December**
**2022**
**Incoming**
**resource**
**Resources**
**expended**
**£**
**£**
**£**|**15. Creditors : amounts falling due within one year**
Creditors and Accruals
Pension Liability due within 1 year
**16. Endowment Funds**
**At 31st**
**December**
**2022**
**Incoming**
**resource**
**Resources**
**expended**
**£**
**£**
**£**
Manse
340,000
-
-
Church building
200,000
-
540,000
-
-
**17. Restricted Funds**
**At 31st**
**December**
**2022**
**Incoming**
**resource**
**Resources**
**expended**
**£**
**£**
**£**|**At 31**
**December**
**2023**
**At 31st**
**December**
**2022**
**£**
**£**
10,445
6,755
12
12
10,457
6,767
**Gains and**
**losses**
**Transfers**
**At 31**
**December**
**2023**
**£**
**£**
**£**
-
340,000
-
200,000|
|---|---|---|
||540,000
-
-|-
-
540,000|
||**At 31st**
**December**
**2022**
**Incoming**
**resource**
**Resources**
**expended**
**£**
**£**
**£**|**Gains and**
**losses**
**Transfers**
**At 31**
**December**
**2023**
**£**
**£**
**£**|
|Fellowship fund|37,839
425
2,782|1,528
-
37,010|
|Other funds
**18. Designated Funds**|5,045
20,756
16,414|-
-
9,388|
||42,885
21,181
19,197|1,528
-
46,398|
||**At 31st**
**December**
**2022**
**Incoming**
**resource**
**Resources**
**expended**
**£**
**£**
**£**|**Gains and**
**losses**
**Transfers**
**At 31**
**December**
**2023**
**£**
**£**
**£**|
|Fabric fund|35,129
-
4,300|1,701
5,177
37,707|
|Other funds|-|-
-|
||35,129
-
4,300|1,701
5,177
37,707|
||||
|**19. Analysis of net assets by fund**
Endowment Funds
Restricted Funds
Designated Funds
Unrestricted Funds|**Fixed asset**
**£**
540,000
-
-
15,659
555,659|**Current**
**Asset**
**£**
-
46,398
37,707
145,130
229,234|**Deferred**
**Total**
**Liabilties**
**£**
**£**
-
540,000
-
46,398
-
37,707
(10,475)
150,314|
|---|---|---|---|
||||(10,475)
774,418|
16
Docusign Envelope ID: 7C4FC1EE-D8E1-4E9F-ABF0-6D4116B0684F
## **Cairns Road Baptist Church**
## **NOTES TO THE ACCOUNTS- contd YEAR ENDED 31 DECEMBER 2023**
## **20. Pensions**
## **Defined Contribution Scheme.**
Pension auto-enrolment came into effect for the church in April 2017 and the church provides a defined contribution scheme through NEST. The church has made the minimum required contribution since that date. As the minimum required contributions have increased over time, the church has increased contributions accordingly.
On 1st November 2021 the minister joined the Baptist Pension Scheme (Ministers category), with employer contributions of 10% p.a. of pensionable income.
**----- Start of picture text -----**
|||
|---|---|
|This Period|
|£|
|The costs of the NEST scheme to the charity for the year|1,424|
|The cost of the Baptist Pension Scheme (DC) to the charity for the year|6,126|
|The amount of any contributions outstanding at the year end|Nil|
|The amount of any contributions prepaid at the year end|Nil|
**----- End of picture text -----**
## **Defined Benefit Scheme**
The previous ministers were members of Baptist Defined Benefit Pension Scheme, and upon the lastminister leaving the Church in 2007, a cessation event occurred on 31/07/2009 under Section 75 of the Pensions Act1995. This resulted in the Church being liable for a proportion of the overall deficit (assessed by reference to the cost of securing benefits by the purchase of annuities) applicable to its previous Ministers who were members of the Baptist Defined Benefit Pension Scheme.The Baptist Pension Scheme calculates that the Churches liability for the scheme deficit to be £150,700. During 2018 the trustees reviewed different options available to them to settle the employer debt.
On the 4th April 2019 the Church entered into a “Deferred Debt Arrangement”. Under this arrangement the Church is no longer liable for this cessation debt, but becomes liable for its share of the current deficit in the Baptist Pension Scheme and so will continue to pay the ongoing deficiency contributions. There are limited circumstances under the Deferred Debt Arrangement where the Church would become responsible for a debt equal to its share of the current Scheme deficit (assessed by reference to the up to date cost of securing benefits by the purchase of annuities. On signing the DDA in 2019, the church had to settle its backdated pension deficiency contributions which were £21.7k up to December 2018 (plus a £1k administration fee).
The Baptist Pension Scheme (“the Scheme”) is administered by the Pension Trustee (Baptist Pension Trust Limited). The Scheme is a separate legal entity and the assets of the Scheme are held separately from those of the Employer and the other participating employers. For any month, each participating employer in the Scheme pays contributions as set out in the Schedule of Contributions in force at that time. The Scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. This is because it is not possible to attribute the Scheme’s assets and liabilities to specific employers and means that contributions are accounted for as if the Scheme were a defined contribution scheme. The pensions costs charged to the SoFA in the year are contributions payable towards benefits and expenses accrued in that year, plus any impact of deficiency contributions (see below).
Benefits in respect of service prior to 1 January 2012 are provided through the Defined Benefit (DB) Plan within the Scheme. The main benefits for pre-2012 service were a defined benefit 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. The Scheme, previously known as the Baptist Ministers’ Pension Fund, started in 1925, but was closed to future accrual of defined benefits on 31 December 2011.
17
Docusign Envelope ID: 7C4FC1EE-D8E1-4E9F-ABF0-6D4116B0684F
## **Cairns Road Baptist Church**
## **NOTES TO THE ACCOUNTS- contd YEAR ENDED 31 DECEMBER 2023**
## **Actuarial Valuation as at 31st December 2019**
A formal valuation of the Defined Benefit (DB) Plan was performed at 31 December 2019 by a professionally qualified Actuary using the Projected Unit Method. The market value of the DB Plan assets at the valuation date was £298 million.
The valuation of the DB Plan revealed a deficit of assets compared with the value of liabilities of £18 million (equivalent to a past service funding level of 94%). The Church and the other employers supporting the DB Plan are collectively responsible for funding this deficit.
The key assumptions underlying the valuation were as follows:
|**Type of financial assumption**|**% pa**|
|---|---|
|RPI price inflation assumption
CPI price inflation assumption
Minimum Pensionable Income increases
Assumed investment returns
- Pre-retirement
- Post retirement
Deferred pension increases
- Pre April 2009
- Post April 2009
Pension increases
-Main Scheme pension|
3.20|
||2.70
3.20
2.95
1.70
3.20
2.55
2.70
|
Post–retirement mortality in accordance with 80% of the S3NFA and S3NMA tables, with allowance for future improvements in mortality rates from 2013 in line with the CMI 2019 core projections, with a long term annual rate of improvement of 1.75% for males and 1.5% for females, with the core smoothing parameter and with additional initial mortality improvement factor A=0.5%.
The next actuarial valuation of the DB Plan within the Scheme was due to take place not later than as at 31 December 2022.
However, in July 2022 the Baptist Pension Scheme announced that they had signed an agreement with the insurance company Just Group (“Just”) to secure DB Plan members’ pension benefits. This agreement is referred to as a ‘buy-in policy’. It followed a similar agreement with Just in 2019 that covered most pensions in payment at that time. The combined agreements mean that Just are now providing financial backing for all DB pensions provided through the Scheme’s DB Plan.
The costs of such policies are largely driven by financial markets and these have moved substantially in the Scheme’s favour, particularly over the course of the last few months preceding July 2022. As a result, this transaction took the Scheme out of a shortfall position for the first time in two decades. Although risks remain, the Baptist Union and the Trustee have agreed that deficit recovery
## **Recovery Plan**
In addition to the contributions to the DC Plan set out above, where a valuation of the DB Plan reveals a deficit the Trustee and the Council agree to a rate of deficiency contributions from churches and other employers involved in the DB Plan.
Under the current Recovery Plan dated 30 September 2020, deficiency contributions are payable until 30 June 2026. These contributions are broadly based on the employer's membership at 31 December 2014 and increase annually in line with increases to Minimum Pensionable Income as defined in the Rules.
At the end of June 2022 the Baptist Pension Scheme signed an agreement with the insurance company Just Group (‘Just’) to secure members’ pension benefits under the Defined Benefit (‘DB’) Plan. As a result, the Scheme no longer has a shortfall. A revised statement of contributions was announced in July 2022 with deficit contributions from each participating employer in the DB Plan reducing to just £1 per month from August 2022. The wind up of the scheme is expected to complete during 2024.
18
Docusign Envelope ID: 7C4FC1EE-D8E1-4E9F-ABF0-6D4116B0684F
## **Cairns Road Baptist Church**
## **NOTES TO THE ACCOUNTS- contd YEAR ENDED 31 DECEMBER 2023**
## **Movement in Balance Sheet Liability**
Section 28.11A of FRS 102 requires agreed deficit recovery payments to be recognised as a liability. The movement in the provision is set out in the table below.
|**Accounting Date (year ending)**
**31/12/2023**
Balance Sheet Liability at year start
£40
minus deficiency contributions paid
-£12
Interest cost (recognised in SoFA)
£0
Actuarial (gains)/losses on re-measurement of lia
£2
(recognised in SoFA)
Balance Sheet Liability at year end
£30|**31/12/2022**
£16,400
-£1,255
£473
-£15,578|
|---|---|
||£40|
This liability represents the present value of the deficit contributions agreed as at the accounting date and has been valued using the following assumptions set by reference to the duration of the deficit recovery payments:
|**31/12/2023**
**31/03/2022**
**Accounting date**|**31/12/2023**
**31/03/2022**
**Accounting date**|**31/12/2023**
**31/03/2022**
**Accounting date**|
|---|---|---|
|Discount rate|5.7%|5.7%
3.3%|
|Future increases to Minimum
Pensionable Income|3.3%||
## **21. Operating Lease Commitments**
At 31st December 2023 the Charity had the following annual commitments under non-cancellable operating leases.
**----- Start of picture text -----**
2023 2022
Plant & Plant &
Machinery Machinery
Expiring in 1 year 719 719
Expiring in 2-5 years 1,737 2,455
**----- End of picture text -----**
19
Docusign Envelope ID: 7C4FC1EE-D8E1-4E9F-ABF0-6D4116B0684F
## **Cairns Road Baptist Church**
## **NOTES TO THE ACCOUNTS- contd YEAR ENDED 31 DECEMBER 2023**
## **22. Related Charities**
## **Baptist Union/West of England Baptist Association**
The church is a member of the Baptist Union of Great Britain, and the West of England Baptist Association. The church made donations to the Baptist Union Home Mission Scheme of £ 6,492 .
## **Noah's Ark pre-school**
Noah’s Ark@CRBC, registered charity no 1112004, is a pre-school that operates from the church premises. The majority of the Noah’s Ark trustees must be members of Cairns Road Baptist Church. During 2023, the church received payments from Noah’s Ark of £682.
In 2022 the position was more complicated with some shared salary costs of the pre-school managers, however in 2022, the church and Noah's Ark agreed to move the pre-school managers to be employees of Noah's Ark, with all regular ongoing payments ceasing from the church to the managers and from Noah's Ark to the church.
## **Transfer assets & liabilities to new CIO**
In the previous year, on 31st March 2022, all assets and liabilities of CRBC (registered charity number 1162089) were transferred to CRBC CIO (registered charity number 1197272). The new CIO charity has the same charitable purposes as the old charity and kept the same trustees.
20