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2023-12-31-accounts

Charity registration number: 1199579

Hereford Baptist Church

Annual Report and Financial Statements for the period from 1 April 2023 to 31 December 2023

Young & Co Chartered Accountants & Registered Auditors St Ethelbert House Ryelands Street Hereford HR4 0LA

Hereford Baptist Church

Contents (continued)

Trustees' Report 1 to 6
Statement of Trustees' Responsibilities 7
Independent Examiner's Report 8
Statement of Financial Activities 9 to 10
Balance Sheet 11
Notes to the Financial Statements 12 to 27

Hereford Baptist Church

Trustees' Report

Hereford Baptist Church (HBC, the CIO) was registered as a Charitable Incorporated Organisation, number 1199579 on 7 July 2022 but was dormant until 1 April 2023, when it took over the assets and operations of Hereford Baptist Church, an unincorporated trust, registered number 1131325.

The trustees present their first report and unaudited accounts for HBC for the nine month period ended 31 December 2023. The accounts have been prepared in accordance with applicable accounting standards and the Charities SORP (FRS102) - Statement of Recommended Practice 2019: Accounting and Reporting by Charities. Assets, income and expenditure transferred from the unincorporated charity have been accounted for using merger accounting principles.

Objectives and activities

Objects and aims

The CIO is governed by a constitution which states that the principal purpose of the church is the advancement of the christian faith according to the principles of the Baptist denomination. The church may also advance education and carry out other charitable purposes in the United Kingdom and/or other parts of the world.

The church provides a variety of activities both to its membership and to the wider community. The aim is to show the love of Jesus Christ in both words and actions - assisting within the community, sharing the gospel and bringing those who wish into a close relationship with Him as living Lord.

Public benefit

When planning our activities for the year, the Trustees have considered the Charities Commission guidance on public benefit and, in particular, the specific guidance on charities for the advancement of religion. We try to enable ordinary people to live out their faith as part of a community of believers through:

The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.

Page 1

Hereford Baptist Church

Trustees' Report (continued)

Achievements and performance

Having served the city for 195 years as an unincorporated charity and now as a CIO, HBC has a history of engaging with the local community, encouraging faith and providing for people's physical, social and spiritual needs.

Central to the work and witness of the church are its regular public services of Christian worship at 10.30am each Sunday, which includes programmes for children and young people. In addition, there have been occasional reflective communion services held on Sunday afternoons. Services are generally held on the church premises but occasionally in the open air at Bishops Meadow. Sunday morning services are streamed online for those who are unable to attend in person; during Covid lockdowns, streaming was the only way to access them.

HBC continues to seek to be a friendly, welcoming community. All services are open to anyone who wishes to attend, and we have been pleased to welcome new attenders, both online and in person. Full details of services are available on the church website - http://www.herefordbaptist.org.uk.

Church and living out faith are not viewed just as ‘once a week activities’ but as part of our everyday attitude of worship. A number of HBC small groups meet during the week for the growth of faith and community.

HBC members seek to share our resources and our faith with the community that surrounds the church. Recent outreach events have included Christmas Carols at the Maylord shopping centre, with enthusiastic participation by our young people, and a very popular children's holiday club at Easter. Our weekly Tot-Stop sessions attract a number of local young families.

Our members contribute directly to wider charitable activities and the church ensures that a significant contribution is made towards other communities from its income. Specific groups that received funding from the church in this year included the Baptist Missionary Society, the Baptist Union Home Mission, and Wycliffe Bible Translators. The levels of support provided to these and other missions are reviewed regularly by the Trustees in consultation with the members.

HBC pursues all these activities with the assistance of a paid minister and two paid part-time administrators. HBC members voted in February 2023 to appoint our Minister in training, Jon Stark, as our full time minister from September 2023.

Page 2

Hereford Baptist Church

Trustees' Report (continued)

Financial review

(£1k = £1,000, comparative figures in brackets are for the unincorporated trust)

The core activities of Hereford Baptist Church are funded by collections and gifts from those who attend the church and by rental income.

Total income on unrestricted general funds for the 9 month period was £115k (year to 31 March 2023: £160k) which included donations, gift aid, bequests, deposit interest and rental income (HBC has two manses in Hereford, one of which is currently rented out and the other has been renovated recently for occupation by our Minister and his wife). General fund expenditure amounted to £81k (year to 31 March 2023: £101k).

Restricted donations of £7k (year to 31 March 2023: £13k) were received for particular charities or mission activities and passed on as appropriate. BMS World Mission and a new local charity, The Living Hope CIO, benefited from specific appeals during the period.

The church is committed to granting at least 15% of its annual income each year to mission organisations. This amounted to £15k for the period.

The net result for the 9 month period was a general fund surplus of £33,602 (year to 31 March 2023: surplus of £59,175). The general fund balance carried forward was £341,498. HBC properties are held in a designated property fund with a balance of £2,822,540.

Other fund balances carried forward were:

Policy on reserves

HBC does not pursue the accumulation of reserves as a policy but seeks to use the resources given to it to pursue its objectives. It has, however, recognised the need to maintain a level of reserves sufficient to meet both the expected and unexpected costs of pursuing those objectives.

HBC aims to maintain a minimum reserve equal to at least four months of anticipated expenditure. Both the level of reserves and the policy on the use of any accumulated funds are reviewed regularly by the Trustees when the charity's accounts are prepared.

At 31 December 2023, HBC's unrestricted cash balances stood at £333k, which equates to 26 months of anticipated expenditure for 2024.

Page 3

Hereford Baptist Church

Trustees' Report (continued)

Going concern

The assets transferred from the unincorporated charity were sufficient to ensure that the CIO would operate as a going concern. The Trustees consider it appropriate to continue using the going concern basis in preparing these accounts.

Use of volunteers

The Trustees would like to thank the many unpaid volunteers who give readily of their time, experience and skills. Without this army of people, the church would not be able to run the many activities that provide discipleship, support, pastoral care and outreach to those within the church and our local community. No financial value has been attributed to volunteer time in HBC's financial statements.

Structure, governance and management

Organisational structure

The church is governed by Trustees consisting of the Minister and Deacons. Certain specific aspects of the church’s life are led by individual deacons. The church operates systems to ensure that all people working with children and vulnerable adults are appropriately vetted by reference to Disclosure and Barring Service (DBS) checks and procedures and have completed safeguarding training.

Members of Hereford Baptist Church (HBC) are accepted in accordance with the Constitution. The normal mode of entry into membership of a Baptist Church is to have been publicly baptised on the profession of faith in Jesus Christ. However, persons seeking membership who have not been publicly baptised may be accepted into membership at the discretion of the church meeting based on their own public profession of faith. Membership is regularly reviewed, and names of non-active members removed. Membership at the end of December 2023 was 115 (31 March 2023: 127).

Church Members’ Meetings take place at least four times in any calendar year and have responsibility for the overall policy of the church. In accordance with the Constitution the members in Church Meeting appoint Trustees, who are the Ministers and Deacons. Deacons have specific responsibilities for the operation of certain areas in church life and include a Church Secretary and Treasurer. The Trustees are responsible for the day-to-day running of the Church’s work, 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 advancing the Christian faith. Relevant matters may be submitted to the Church Meeting by the Trustees for guidance or may be raised by members in Church Meetings 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 under the guidance of the Holy Spirit and under the Lordship of Jesus Christ.

The Church is a member of the Baptist Union of Great Britain and the Heart of England Baptist Association.

Page 4

Hereford Baptist Church

Trustees' Report (continued)

Major risks and management of those risks

Significant risks

The two most prominent risks identified by the Trustees are the protection of children and vulnerable adults, and health and safety.

Written policies are in place and are regularly reviewed.

Reference and Administrative Details

Charity Registration Number: 1199579

Trustees and officers

The trustees and officers serving during the year and since the year end were as follows:

Trustees: Mr I Burrell Mr M Kerrigan Dr I Darwood Mr J Stark Mr G Taberner Mr B D Lea Mrs M G Willcocks Mr M Foster (resigned 22 May 2023) Mr D Butterfield (appointed 18 September 2023)

The Trustees are elected by the Church Members.

Principal Office: Hereford Baptist Church Commercial Road Hereford HR1 2BP Independent Examiner: Young & Co Chartered Accountants & Registered Auditors St Ethelbert House Ryelands Street Hereford HR4 0LA

Page 5

Hereford Baptist Church

Trustees' Report (continued) Bankers: CAF Bank 25 Kings Hill Avenue Kings Hill West Malling Kent ME19 4JQ Custodian trustee for property assets: Baptist Union Corporation 129 Broadway Didcot OX11 8RT

The annual report was approved by the trustees of the charity on 8 April 2024 and signed on its behalf by:

......................................... Mr I Burrell Secretary and trustee

Page 6

Hereford Baptist Church

Statement of Trustees' Responsibilities

The trustees are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.

The law applicable to charities 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 and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008, and the provisions of the constitution. The trustees are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Approved by the trustees of the charity on 8 April 2024 and signed on its behalf by:

......................................... Mr I Burrell Secretary and trustee

Page 7

Hereford Baptist Church

Independent Examiner's Report to the trustees of Hereford Baptist Church

I report to the trustees on my examination of the accounts of Hereford Baptist Church for the year ended 31 December 2023.

Responsibilities and basis of report

As the charity trustees of Hereford Baptist Church you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).

I report in respect of my examination of the Hereford Baptist Church's accounts carried out under section 145 of the 2011 Act 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.

Independent examiner’s statement

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

  1. accounting records were not kept in respect of Hereford Baptist Church 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 accounting requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view' which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

...................................... G M John BSc FCA Chartered Accountants & Registered Auditors

St Ethelbert House Ryelands Street Hereford HR4 0LA

8 April 2024

Page 8

Hereford Baptist Church

Statement of Financial Activities for the Period from 1 April 2023 to 31 December 2023

Note
Income and Endowments from:
Donations and legacies
Investment income
3
Other income
Total income
Expenditure on:
Charitable activities
Total expenditure
Net income
Gross transfers between funds
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
17		 Unrestricted
funds
£
89,697
10,858
14,285
114,840
(81,410)
(81,410)
33,430
380,000
413,430
2,752,011
3,165,441		 Restricted
funds
£
4,384
2,789
-
7,173
(2,299)
(2,299)
4,874
(380,000)
(375,126)
480,706
105,580		 Total
31 December
2023
£
94,081
13,647
14,285
122,013
(83,709)
(83,709)
38,304
-
38,304
3,232,717
3,271,021

The notes on pages 12 to 27 form an integral part of these financial statements. Page 9

Hereford Baptist Church

Statement of Financial Activities for the Period from 1 April 2023 to 31 December 2023 (continued)

Note
Income and Endowments from:
Donations and legacies
Investment income
3
Other income
Total income
Expenditure on:
Charitable activities
Total expenditure
Net income
Other recognised gains and losses
Actuarial gains on defined benefit pension
schemes
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
17		 Unrestricted
funds
£
135,100
4,114
20,592
159,806
(100,527)
(100,527)
59,279
15,975
75,254
2,676,757
2,752,011		 Restricted
funds
£
10,343
2,314
-
12,657
(12,383)
(12,383)
274
-
274
480,432
480,706		 Total
31 March
2023
£
145,443
6,428
20,592
172,463
(112,910)
(112,910)
59,553
15,975
75,528
3,157,189
3,232,717

All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2023 is shown in note 17.

The notes on pages 12 to 27 form an integral part of these financial statements. Page 10

Hereford Baptist Church

(Registration number: 1199579) Balance Sheet as at 31 December 2023

Note
Fixed assets
Tangible assets
12
Current assets
Debtors
13
Cash at bank and in hand
14
Creditors: Amounts falling due within one year
15
Net current assets
Net assets
Funds of the charity:
Restricted income funds
Restricted funds
Unrestricted income funds
Unrestricted funds
Total funds
17		 31 December
2023
£
2,826,374
10,310
440,069
450,379
(5,732)
444,647
3,271,021
105,580
3,165,441
3,271,021		 31 March
2023
£
2,815,816
4,616
416,760
421,376
(4,475)
416,901
3,232,717
480,706
2,752,011
3,232,717

The financial statements on pages 9 to 27 were approved by the trustees, and authorised for issue on 8 April 2024 and signed on their behalf by:

.........................................

Mr I Burrell Secretary and trustee

......................................... Mr M Kerrigan Trustee

The notes on pages 12 to 27 form an integral part of these financial statements. Page 11

Hereford Baptist Church

Notes to the Financial Statements for the Period from 1 April 2023 to 31 December 2023

1 Accounting policies

Statement of compliance

The financial statements have been prepared in accordance with the second edition of the Charities Statement of Recommended Practice issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011.

Basis of preparation

Hereford Baptist Church meets the definition of a public benefit entity under FRS 102. The accounts (financial statements) have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes to these accounts.

Going concern

Having reviewed the charity's cash holdings together with future projected cash flows, the Trustees have an expectation that the charity has adequate resources to continue its activities for the foreseeable future. On 1 April 2023, HBC transferred all of it's assets, liabilities and activities to a Charitable Incorporated Organisation (CIO), also named Hereford Baptist Church (registered charity number 1199579). The trustees of the CIO are the same as those for HBC. The Trustees consider that there are no material uncertainties over the charity's financial viability.

Income and endowments

Voluntary income including donations, gifts, legacies and grants that provide core funding or are of a general nature is recognised when the charity has entitlement to the income, it is probable that the income will be received and the amount can be measured with sufficient reliability.

Donations and legacies

Donations and legacies are recognised on a receivable basis when receipt is probable and the amount can be reliably measured.

Investment income

Investment income, together with any associated tax credits, are included in the accounts when receivable.

Page 12

Hereford Baptist Church

Notes to the Financial Statements for the Period from 1 April 2023 to 31 December 2023 (continued)

Expenditure

All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.

All resources expended are inclusive of irrecoverable VAT.

Charitable activities

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Support costs

Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage.

Governance costs

These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees meetings and reimbursed expenses.

Irrecoverable VAT

Irrecoverable VAT is charged against the category of resources expended for which it was incurred.

Taxation

The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

Tangible fixed assets

Individual fixed assets are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Page 13

Hereford Baptist Church

Notes to the Financial Statements for the Period from 1 April 2023 to 31 December 2023 (continued)

Depreciation and amortisation

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:

Asset class Depreciation method and rate
Freehold land None
Freehold buildings 2% of cost per annum
Fixtures and fittings 15% of cost per annum

The residual value of freehold buildings is assessed each year. The valuations used are based upon current insurance valuations, and are considered to approximate to the open market value. As long as the valuations are in excess of the book values, no depreciation charge is provided for in the accounts.

Freehold land is assessed for any impairment on an annual basis and a provision is made if necessary.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Fund structure

General funds represent the funds of the Church that are not subject to any restrictions regarding their use and are available for application on the general purposes of the Church. The accounts include all transactions for which the Church is responsible in law. They do not include the accounts of Church groups that are informal gatherings of Church members.

Designated funds are unrestricted funds set aside for specific purposes at the discretion of the trustees.

Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.

Hire purchase and finance leases

Assets held for use in operating leases are included as a separate category in fixed assets at cost and depreciated over their useful life.

Rental income from operating leases is recognised on a straight line basis over the term of the lease.

Page 14

Hereford Baptist Church

Notes to the Financial Statements for the Period from 1 April 2023 to 31 December 2023 (continued)

Pensions and other post retirement obligations

Hereford Baptist Church provides a defined contribution pension scheme for ministers through the Baptist Pension scheme. The assets of the scheme are held separately from those of the church in an independently administered fund. Contributions to this scheme are charged to the unrestricted fund as they become payable. The church is also responsible for its proportion of the closed defined benefit Baptist Pension scheme and the deficit is recognised as a liability, discounted for the time value of money. Hereford Baptist church also provides a defined contribution pension scheme for other employees through the NEST pension scheme.

2 Income from donations and legacies

Unrestricted funds
Designated
£
General
£
Donations and legacies;
Donations from individuals
32
71,672
Gift aid reclaimed
-
17,993
Total for period ended 31
December 2023
32
89,665
Total for period ended 31
March 2023
104
134,996
3 Investment income
Unrestricted
funds
General
£
Interest receivable and similar income;
Interest receivable on bank deposits
10,858
Total for period ended 31 December 2023
10,858
Total for period ended 31 March 2023
4,114		 Restricted
funds
£
4,384
-
4,384
10,343
Restricted
funds
£
2,789
2,789
2,314		 Total
funds
£
76,088
17,993
94,081
145,443
Total
funds
£
13,647
13,647
6,428

Page 15

Hereford Baptist Church

Notes to the Financial Statements for the Period from 1 April 2023 to 31 December 2023 (continued)

4 Other income

Rental income
Total for period ended 31 December 2023
Total for period ended 31 March 2023		 Unrestricted
funds
General
£
14,285
14,285
20,592		 Total
funds
£
14,285
14,285
20,592

5 Expenditure on charitable activities

Note
Church Activities
Mission
Ministry
Establishment
Depreciation,
amortisation and
other similar costs
Staff costs
Allocated support
costs
Governance costs
Total for period
ended 31
December 2023
Total for period
ended 31 March
2023		 Unrestricted funds
Designated
£
General
£
202
5,316
-
14,700
-
9,308
-
14,200
-
1,373
-
28,374
-
4,954
-
2,983
202
81,208
-
100,527		 Restricted
funds
£
120
2,179
-
-
-
-
-
-
2,299
12,383		 Total
funds
£
5,638
16,879
9,308
14,200
1,373
28,374
4,954
2,983
83,709
112,910

Page 16

Hereford Baptist Church

Notes to the Financial Statements for the Period from 1 April 2023 to 31 December 2023 (continued)

Church activities
Mission
Ministry
Establishment
Total for period ended 31 December 2023
Total for period ended 31 March 2023		 Activity
undertaken
directly
£
11,485
17,528
31,473
20,240
80,726
108,690		 Total
expenditure
£
11,485
17,528
31,473
20,240
80,726
108,690

Page 17

Hereford Baptist Church

Notes to the Financial Statements for the Period from 1 April 2023 to 31 December 2023 (continued)

6 Analysis of governance and support costs

Charitable activities expenditure

Basis of
allocation
Church Activities
45%
Mission
5%
Ministry
45%
Establishment
5%
Basis of
allocation
Church Activities
45%
Mission
5%
Ministry
45%
Establishment
5%		 Unrestricted
funds
General
£
2,229
248
2,229
248
4,954
Unrestricted
funds
General
£
3,876
431
3,876
431
8,614		 Total
31 December
2023
£
2,229
248
2,229
248
4,954
Total
31 March
2023
£
3,876
431
3,876
431
8,614

Basis of allocation

Reference Method of allocation

Support costs are allocated to Charitable activities using the percentages shown A above based on estimated time spent by staff

Page 18

Hereford Baptist Church

Notes to the Financial Statements for the Period from 1 April 2023 to 31 December 2023 (continued)

Governance costs

Independent examiner fees
Examination of the financial statements
Legal fees
Total for period ended 31 December 2023
Total for period ended 31 March 2023
7 Net incoming/outgoing resources
Net incoming resources for the period include:
Depreciation of fixed assets		 Unrestricted
funds
General
£
2,772
211
2,983
4,266
31 December
2023
£
1,373		 Total
funds
£
2,772
211
2,983
4,266
31 March
2023
£
1,182

8 Trustees remuneration and expenses

During the period the charity made the following transactions with trustees:

Mr J Stark

Mr J Stark received remuneration of £14,468 (2023: £14,215) during the period.

Pension contributions of £1,115 (year to 31 March 2023: £691) were paid by the Charity.

The remuneration is paid for employment with the Charity which was not in respect of the trusteeship.

Page 19

Hereford Baptist Church

Notes to the Financial Statements for the Period from 1 April 2023 to 31 December 2023 (continued)

9 Staff costs

The aggregate payroll costs were as follows:

Staff costs during the period were:
Wages and salaries
Pension costs		 31 December
2023
£
26,481
1,893
28,374		 31 March
2023
£
26,067
1,148
27,215

The monthly average number of persons (including senior management / leadership team) employed by the charity during the period expressed as full time equivalents was as follows:

Charitable services
Administration and part-time cleaners		 31 December
2023
No
1
1
2		 31 March
2023
No
1
1
2

3 (2023 - 3) of the above employees participated in the Defined Contribution Pension Schemes.

1 (2023 - 1) of the above employees participated in the Defined Benefit Pension Schemes.

Contributions to the employee pension schemes for the period totalled £1,893 (2023 - £1,145).

No employee received emoluments of more than £60,000 during the period

10 Independent examiner's remuneration

10 Independent examiner's remuneration
31 December 31 March
2023 2023
£ £
Examination of the financial statements 2,772 2,640

Page 20

Hereford Baptist Church

Notes to the Financial Statements for the Period from 1 April 2023 to 31 December 2023 (continued)

11 Taxation

The charity is a registered charity and is therefore exempt from taxation.

12 Tangible fixed assets

Cost
At 1 April 2023
Additions
Disposals
At 31 December 2023
Depreciation
At 1 April 2023
Charge for the year
Eliminated on disposals
At 31 December 2023
Net book value
At 31 December 2023
At 31 March 2023
13 Debtors
Trade debtors
Prepayments
Other debtors		 Land and
buildings
£
2,810,610
11,930
-		 Furniture and
equipment
£
127,179
-
(59,989)
67,190
121,972
1,373
(59,989)
63,356
3,834
5,207
31 December
2023
£
5,752
4,558
-
10,310		 Furniture and
equipment
£
127,179
-
(59,989)
67,190
121,972
1,373
(59,989)
63,356
3,834
5,207
31 December
2023
£
5,752
4,558
-
10,310		 Total
£
2,937,789
11,930
(59,989)
2,889,730
121,972
1,373
(59,989)
63,356
2,826,374
2,815,817
31 March
2023
£
-
4,343
273
2,822,540
-
-
-
-
2,822,540
2,810,610
4,616

Page 21

Hereford Baptist Church

Notes to the Financial Statements for the Period from 1 April 2023 to 31 December 2023 (continued)

14 Cash and cash equivalents

14 Cash and cash equivalents
Cash at bank
15 Creditors: amounts falling due within one year
Accruals		 31 December
2023
£
440,069
31 December
2023
£
5,732		 31 March
2023
£
416,760
31 March
2023
£
4,475

Page 22

Hereford Baptist Church

Notes to the Financial Statements for the Period from 1 April 2023 to 31 December 2023 (continued)

16 Pension and other schemes

Defined benefit pension schemes

Baptist Pension Scheme

The Church is a participating employer the Baptist Pension Scheme (“the Scheme”), which is a separate legal entity administered by the Pension Trustee (Baptist Pension Trust Limited). The assets of the Scheme are held separately from those of the Employer and the other participating employers.

The Scheme, previously known as the Baptist Ministers’ Pension Fund, started in 1925, but was closed to future accrual of defined benefits on 31 December 2011. Prior to this date the main benefit provided through the Defined Benefit (DB) Plan was a pension of one eightieth of final minimum pensionable income for each year of pensionable service together with additional pension in respect of premiums paid on Pensionable Income in excess of Minimum Pensionable Income.

From January 2012, pension provision is being made through the Defined Contribution (DC) Plan within the Scheme. In general, members pay 8% of their Pensionable Income and employers pay 6% of members’ Pensionable Income into individual pension accounts, which are operated and managed on behalf of the Pension Trustee by Broadstone Corporate Benefits Ltd. In addition, the employer pays a further 4% of Pensionable Income to cover Death in Service Benefits, administration costs, and an associated insurance policy which provides income protection for Scheme members if they are unable to work due to long-term incapacity.

This income protection policy has been insured by the Baptist Union of Great Britain with Aviva Limited. Members of the Basic Section pay reduced contributions of 5% of Pensionable Income, and their employers also pay a total of 5%.

Ministers are eligible to join the Scheme.

The date of the most recent comprehensive actuarial valuation was 31 December 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 Method. At the valuation date the market value of the DB Plan assets was £298 million, whilst the level of assets needed to pay benefits was £316m, giving a deficit of £18m (equivalent to a past service funding level of 94%). The Church and the other participating employers in the DB Plan are collectively responsible for funding this deficit.

Principal actuarial assumptions

The principal actuarial assumptions at the statement of financial position date are as follows:

Page 23

Hereford Baptist Church

Notes to the Financial Statements for the Period from 1 April 2023 to 31 December 2023 (continued)

Type of financial assumption% per annum

RPI price inflation assumption 3.20% CPI price inflation assumption 2.70% Minimum Pensionable Income increases (CPI plus 0.5% pa) 3.20% Assumed investment returns

Post retirement mortality assumptions

Mortality is assumed in accordance with 80% of the S3NA standard mortality table. Future improvements projected from 2013 in line with the “CMI 2019” projection with a long-term rate of improvement of 1.75% p.a. for males and 1.5% p.a. for females with the core smoothing parameter and with additional initial mortality improvement factor A=0.5%.

The next actuarial valuation of the DB Plan within the Scheme will commence in 2023 to reflect the position as at 31 December 2022.

Multi-employer plans

This is a defined benefit plan.

The Scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. Because it is not possible to attribute the Scheme’s assets and liabilities to specific employers, the scheme is accounted for as if the Scheme were a defined contribution scheme.

Page 24

Hereford Baptist Church

Notes to the Financial Statements for the Period from 1 April 2023 to 31 December 2023 (continued)

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.

Following the 2019 valuation a Recovery Plan was signed in September 2020 under which deficiency contributions are payable until June 2026. These contributions were broadly based on each employer's membership at 31 December 2014 and increase annually in line with increases to Minimum Pensionable Income as defined in the Rules.

On 30th June 2022 the Baptist Pension Scheme signed an agreement with the insurance company Just Group (“Just”) 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.

17 Funds

Unrestricted funds
General
Designated
Total unrestricted funds
Restricted funds
Total funds		 Balance at
1 April
2023
£
2,750,437
1,574
2,752,011
480,706
3,232,717		 Incoming
resources
£
114,808
32
114,840
7,173
122,013		 Resources
expended
£
(81,208)
(202)
(81,410)
(2,299)
(83,709)		 Transfers
£
(2,430,610)
2,810,610
380,000
(380,000)
-		 Balance at
31
December
2023
£
353,427
2,812,014
3,165,441
105,580
3,271,021

Page 25

Hereford Baptist Church

Notes to the Financial Statements for the Period from 1 April 2023 to 31 December 2023 (continued)

Unrestricted funds
General
Designated
Total unrestricted funds
Restricted funds
Total funds		 Balance at
1 April
2022
£
2,675,287
1,470
2,676,757
480,432
3,157,189		 Incoming
resources
£
159,702
104
159,806
12,657
172,463		 Resources
expended
£
Other
recognised
gains/(losses)
£
(100,527)
15,975
-
-
(100,527)
15,975
(12,383)
-
(112,910)
15,975		 Balance at
31 March
2023
£
2,750,437
1,574
2,752,011
480,706
3,232,717

The specific purposes for which the funds are to be applied are as follows:

Designated Funds:

Restricted Funds:

Page 26

Hereford Baptist Church

Notes to the Financial Statements for the Period from 1 April 2023 to 31 December 2023 (continued)

18 Analysis of net assets between funds

Tangible fixed assets
Current assets
Current liabilities
Total net assets
Tangible fixed assets
Current assets
Current liabilities
Total net assets		 Unrestricted funds
General
£
Designated
£
3,834
2,822,540
343,396
1,403
(5,732)
-
341,498
2,823,943
Unrestricted funds
General
£
Designated
£
2,435,816
-
319,096
1,574
(4,475)
-
2,750,437
1,574		 Restricted
funds
£
-
105,580
-
105,580
Restricted
funds
£
380,000
100,706
-
480,706		 Total funds at
31 December
2023
£
2,826,374
450,379
(5,732)
3,271,021
Total funds at
31 March
2023
£
2,815,816
421,376
(4,475)
3,232,717

Page 27

Hereford Baptist Church

Detailed Statement of Financial Activities for the Period from 1 April 2023 to 31 December 2023

31 December 2023
Unrestricted funds
Restricted
Designated
£
General
£
funds
£
Income and Endowments from:
Donations and
legacies (analysed
below)
32
89,665
4,384
Investment
income (analysed
below)
-
10,858
2,789
Other income
(analysed below)
-
14,285
-
Total income
32
114,808
7,173
Expenditure on:
Charitable
activities
(analysed below)
(202)
(81,208)
(2,299)
Total expenditure
(202)
(81,208)
(2,299)
Net
(expenditure)/income
(170)
33,600
4,874
Gross transfers
between funds
(analysed below)
2,810,610
(2,430,610)
(380,000)
Net movement in
funds
2,810,440
(2,397,010)
(375,126)
Reconciliation of funds
Total funds
brought forward
1,574
2,750,437
480,706
Total funds
carried forward
2,812,014
353,427
105,580		 31 December 2023 31 December 2023 Total
£
94,081
13,647
14,285
122,013
(83,709)
(83,709)
38,304
-
38,304
3,232,717
3,271,021		 Total
31 March
2023
£
145,443
6,428
20,592
Restricted
funds
£
4,384
2,789
-
7,173
(2,299)
(2,299)
4,874
(380,000)
(375,126)
480,706
105,580
172,463
(112,910)
(112,910)
59,553
-
59,553
3,157,189
3,216,742

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Hereford Baptist Church

Detailed Statement of Financial Activities for the Period from 1 April 2023 to 31 December 2023 (continued)

31 December 2023
Unrestricted funds
Restricted
Designated
£
General
£
funds
£
Total
£
Donations and
legacies
Donations -
Totstop
32
-
-
32
Donations -
Earmarked
-
-
420
420
Donations -
Missions
-
-
3,964
3,964
Donations -
General
-
71,672
-
71,672
Gift Aid tax
reclaimed
-
17,993
-
17,993
32
89,665
4,384
94,081
31 December 2023
Unrestricted
funds
Restricted
General
£
funds
£
Total
£
Investment income
Interest on cash deposits - Building
-
2,257
2,257
Interest on cash deposits -
Broadmoor
-
532
532
Interest on cash deposits - General
10,858
-
10,858
10,858
2,789
13,647
31 December 2023
Unrestricted
funds
General
£
Total
£
Other income
Rental income
14,285
14,285
14,285
14,285		 Total
31 March
2023
£
104
450
9,893
97,625
37,371
145,443
Total
31 March
2023
£
1,730
584
4,114
6,428
Total
31 March
2023
£
20,592
20,592

This page does not form part of the statutory financial statements. Page 29

Hereford Baptist Church

Detailed Statement of Financial Activities for the Period from 1 April 2023 to 31 December 2023 (continued)

Charitable
activities
Missions and
charitable
donations
Missions and
charitable
donations
Communion
supplies
Guest preacher
costs
Minister's salaries
Superannuation
Youth ministry
costs
Youth ministry
costs
Youth ministry
costs
Fellowship
catering
Manse expenses
Wages and
salaries
Staff pensions
(Admin)
Staff pensions
(Cleaner)
Cleaners wages
Water rates
Light, heat and
power
Insurance		 31 December 2023
Unrestricted funds
Restricted
Total
31 March
Designated
£
General
£
funds
£
Total
£
2023
£
-
-
(2,179)
(2,179)
(12,383)
-
(14,700)
-
(14,700)
(19,690)
-
(101)
-
(101)
(191)
-
(110)
-
(110)
(939)
-
(14,804)
-
(14,804)
(13,824)
-
(1,514)
-
(1,514)
(665)
(202)
-
-
(202)
-
-
-
(120)
(120)
-
-
(4,695)
-
(4,695)
(7,026)
-
(621)
-
(621)
(608)
-
(9,097)
-
(9,097)
(11,804)
-
(7,851)
-
(7,851)
(7,493)
-
(188)
-
(188)
(245)
-
(191)
-
(191)
(238)
-
(3,826)
-
(3,826)
(4,750)
-
(283)
-
(283)
(376)
-
(5,144)
-
(5,144)
(5,401)
-
(3,016)
-
(3,016)
(3,893)

This page does not form part of the statutory financial statements. Page 30

Hereford Baptist Church

Detailed Statement of Financial Activities for the Period from 1 April 2023 to 31 December 2023 (continued)

31 December 2023
Unrestricted funds
Restricted
Designated
£
General
£
funds
£
Total
£
Health and safety
-
(538)
-
(538)
Repairs and
maintenance
-
(3,059)
-
(3,059)
Portacabins
-
(1,638)
-
(1,638)
Equipment repairs
and renewals
-
(522)
-
(522)
Telephone and fax
-
(892)
-
(892)
Computer
software and
maintenance
costs
-
(1,236)
-
(1,236)
Printing, postage
and stationery
-
(874)
-
(874)
Trade
subscriptions
-
(1,078)
-
(1,078)
Sundry expenses
-
(729)
-
(729)
Bank charges
-
(145)
-
(145)
Depreciation of
fixtures and
fittings
-
(1,373)
-
(1,373)
(202)
(78,225)
(2,299)
(80,726)
31 December 2023
Unrestricted
funds
General
£
Total
£
Governance costs
Accountancy fees
(2,772)
(2,772)
Legal and professional fees
(211)
(211)
(2,983)
(2,983)		 Total
31 March
2023
£
(794)
(4,200)
(2,184)
(1,682)
(1,195)
(3,172)
(1,650)
(1,281)
(1,634)
(144)
(1,182)
(108,644)
Total
31 March
2023
£
(2,640)
(1,626)
(4,266)

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Hereford Baptist Church

Detailed Statement of Financial Activities for the Period from 1 April 2023 to 31 December 2023 (continued)

Gross transfers
between funds
Funds - Transfer
from another
fund
Funds - Transfer
from another
fund
Funds - Transfer
to another fund		 31 December 2023 31 December 2023 Total
£
(380,000)
(2,430,610)
2,810,610
-		 Total
31 March
2023
£
-
-
-
Unrestricted funds
Designated
£
General
£
-
-
-
(2,430,610)
2,810,610
-
2,810,610
(2,430,610)		 Restricted
funds
£
(380,000)
-
-
(380,000)
-

This page does not form part of the statutory financial statements. Page 32