2020-12-31-accounts - Battersea Chapel Educational Foundation

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BATTERSEA CHURCH (EDUCATIONAL FOUNDATION)

Charity Registration Number: 312325

31 December 2020 Annual Report and Accounts

BATTERSEA CHURCH (EDUCATIONAL FOUNDATION)

Annual Report and Accounts 2020 Contents

	Page
Legal & Administrative Information	2
Annual Report of the Trustees	3
Independent Examiner’s Report	5
Receipts & Payments Account	6
Statement of Assets & Liabilities	7
Notes to the Accounts	8

BATTERSEA CHURCH (EDUCATIONAL FOUNDATION)

Legal & Administrative Information For the year ended 31 December 2020

Charity Name	Battersea Church (Educational Foundation).	Battersea Church (Educational Foundation).
Principal Address	6 Wye St, Battersea, London SW11 2SR.
Charity Registration	312325. The church was registered with the Charity Commission on 5 December
	1962.
The Governing Document	Scheme dated 25 July 2006
Object	1. The advancement of the religious and other charitable work of the church of
	protestant dissenters of the Baptist denomination.
	2. The advancement of education both secular and in accordance with the tenets of
	the church of protestant dissenters	of the Baptist denomination.
Trustees	The Trustees who served during the year or who were serving		at the date of this
	report were:
	Abiodun Christabel Oyeleke
	Janee Hankins
	Toni Jackson	(resigned 31 March 2021)
	Daniel Johnson
	Bre Antonia Mc Dermott- King
	Hilary Sheikh
	Foluke Adenrele Moses
	Patience Nandi Mtopa-Offei
	Reverend Leroy Burke	(resigned on 31 March 2021)
	Pastor Adebayo Babalola	(appointed on 1 April 2021)
Key Management Personnel	Those in charge of directing, controlling, running and operating the Church on a day
	to day basis are the Trustees.
Bankers	Barclays Bank PLC
	7-11 St Johns Hill
	London
	SW11 1TRb
	National Savings & Investment
	Sunderland
	SR43 2SB
Independent Examiner	John Helm ACA
	Simply Churches Limited
	17 Heathville Road
	London N19 3AL

BATTERSEA CHURCH (EDUCATIONAL FOUNDATION)

Trustees Report For the year ended 31 December 2020

The Trustees submit their annual report and accounts of Battersea Church (Educational Foundation) (“the Church”) for the year ended 31 December 2020. The legal and administrative information set out earlier in this document forms part of this report.

1. Structure, Governance & Management

The office bearers and any other leadership team members for the time being constitute the trustees. There must be at least three, and they must meet at least twice a year.

None of the Trustees receive remuneration apart from the Pastor.

2. Activities

The Trustees have given due regard to the Charity Commissions’ guidance on public benefit. During the year the Church carried out the following activities in order to promote the Gospel in the local neighbourhood and also to benefit the community:

Sunday services
House groups (stopped in March 2020 during the lockdowns because of Covid-19)
Youth clubs none, due to Covid
Bible study online every Tuesday
Social events cancelled due to Covid
Baptismal classes none, due to covid

3. Achievements

Due to Covid-19 restrictions church activities were very limited during the year 2020. Despite this, we quickly adapted by moving our Sunday services online in order to be compliant with the Government and Baptist Union of Great Britain’s guidelines on Covid-19. We are very proud of our efforts in supporting the local community and community groups (Kambala project) with food donations during the pandemic. We also successfully held two Covid-secure funerals during the year. Additionally, we kept the momentum going with preparing for the upcoming church move to a new site and we are happy that despite all the challenges in the year, the church membership remains the same. Lastly, we interviewed a few candidates for the role of a minister, albeit remotely and we were able to appoint a new minister of religion for our church, Battersea Chapel

4. Financial Review

4.1 Financial Activity and Financial Position

The church is funded by the freewill offerings of members and others, together with some lettings income.

The Church’s cash resources increased by £17,058 during the year to £335,947 (2019: decreased by £3,329 to £318,889).

4.2 Pension Deficit

The Church is an employer participating in a pension scheme known as the Baptist Pension Scheme (“the Scheme”). The Scheme is a separate legal entity which is administered by the Pension Trustee (Baptist Pension Trust Limited).

The estimated employer debt is based on the service of the minister(s) and their dependants and has been calculated as (2019: £83,100). More details can be found in note 5.

BATTERSEA CHURCH (EDUCATIONAL FOUNDATION)

Trustees Report For the year ended 31 December 2020

4.3 Reserves Policy

The Trustees consider that, given the nature of the church’s work, free reserves should be equivalent to approximately 3 months’ routine general fund expenditure, plus committed future expenditure on other projects where funds permit. The Trustees are of the opinion that this provides sufficient flexibility to cover temporary shortfalls in incoming resources and will allow the Church to cope and respond to unforeseen emergencies whilst specific action plans are implemented. At 31 December 2020 the Church had net free reserves of £234,376 (2019: £217,428).

Total cash reserves Less: restricted funds Free reserves Free reserves requirement: 3 month’s budgeted routine expenditure	2020	2019 £ 318,889 (101,461)
	£

	335,947
	(101,571)

		217,428
	234,376

		15,000

	15,000

5. Responsibilities of Trustees for the Accounts

Charity law requires the Trustees to prepare accounts for each accounting year which record the receipts and payments of the charity for the year. The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and enable us to ensure that the financial statements comply with the Charities Act 2011. The Trustees also have a responsibility to safeguard the assets of the charity and to take reasonable steps to prevent fraud or any other irregularities.

6. Approval

The report of the Trustees was approved by the Trustees on the 10 September 2021 and signed on its behalf by:

Christabel Abiodun OYELEKE Trustee

Daniel Johnson Trustee

Foluke Adenrele MOSES Trustee

BATTERSEA CHURCH (EDUCATIONAL FOUNDATION)

Independent Examiner’s Report For the year ended 31 December 2020

I report on the accounts of Battersea Church (Educational Foundation) for the year ended 31 December 2020, set out on pages 6 to 10.

This report is made solely to the Trustees in accordance with section 145 of the Charities Act 2011 (the Act). My independent examination has been undertaken so that I might state to the Trustees those matters I am required to state to them in an independent examiner’s report and for no other purpose. To the fullest extent permitted by the law, I do not accept responsibility to anyone other than the Trustees for my independent examination, for this report, or the opinions I have formed.

RESPECTIVE RESPONSIBILITIES OF THE TRUSTEES AND EXAMINER

The Trustees consider that an audit is not required for this period (under section 144(2) of the Act) and that an independent examination is needed.

It is my responsibility to:

Examine the accounts (under section 145 of the Act);
To follow the procedures laid down in the General Direction given by the Charity Commission (under section 145(5)(b) of the Act); and
To state whether particular matters have come to my attention.

BASIS OF INDEPENDENT EXAMINER’S STATEMENT

My examination was carried out in accordance with 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 seeking explanations 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 I do not express an audit opinion on the accounts.

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:

accounting records were not kept in respect of the church as required by section 130 of the Act; or
the accounts do not accord with those records; or
the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any 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.

John Helm ACA 10 September 2021

BATTERSEA CHURCH (EDUCATIONAL FOUNDATION)

Receipts & Payments Account For the year ended 31 December 2020

Note Receipts Donations and legacies Lettings Investments Total Receipts Payments Charitable activities 2 Total Payments Surplus of payments over receipts Transfer between funds Total cash funds brought forward Total cash funds carried forward	Unrestricted Funds 2020 £ 50,222 - 116 50,338 33,390 33,390 16,948 217,428 234,376		Restricted Funds 2020 £ 110 - - 110 - 0 110 101,461 101,571		Total 2019 £ 47,797 1,430 1,077	)
				Total
				2020
				£

				50,332
				-
				116

					50,304

				50,448

					53,633


				33,390

					53,633

				33,390

					(3,329 - 322,218

				17,058



				318,889

					318,889

				335,947

An analysis of restricted funds can be found at note 4.

BATTERSEA CHURCH (EDUCATIONAL FOUNDATION)

Statement of Assets & Liabilities As at 31 December 2020

Note Assets Tangible Assets 3 Investments Debtors Cash At Bank And In Hand Liabilities Pension deficit 5 Total Assets Less Liabilities	Unrestricted Funds 2020 £ - 619 - 234,376 234,995 76,400 234,995	Restricted Funds 2020 £ - - - 101,571 101,571 - 101,571		Total 2019 £ - 788 - 318,889
			Total
			2020
			£

			-
			619
			-
			335,947

				319,677 83,100

			336,566


			76,400

				319,677
			336,566

The Accounts were approved by the Trustees on the 10 September 2021 and signed on its behalf by:

Christabel Abiodun OYELEKE Trustee

Foluke Adenrele MOSES Trustee

BATTERSEA CHURCH (EDUCATIONAL FOUNDATION)

Notes to the Accounts For the year ended 31 December 2020

1. Accounting Policies

The accounts have been prepared on a receipts and payments basis with a statement of assets and liabilities.

2. Payments – Charitable Activities

Provision of Pastor Net salary & PAYE Pension Council tax Church life & outreach Preaching fees Travel & subsistence Office Costs Telephone, broadband Subscriptions Professional fees Printing & stationery Sundry Provision of buildings and facilities Heat, light & water Insurance Maintenance & cleaning Equipment Governance Independent examination	Unrestricted Funds 2020 £ 9,018 5,897 1,146	Restricted Funds 2020 £ - - - 0 - - 0 - - - - - 0 - - - - 0 - 0		Total 2019 £ 27,535 9,248 1,242 38,025 - - 0 3,214 609 1,413 1,010 (1,088) 5,158 3,680 4,226 2,504 40 10,450 - 53,633
			Total
			2020
			£

			9,018
			5,897
			1,146

	16,061 612 160
			16,061

			612
			160

	772 2,221 639 433 106 887
			772

			2,221
			639
			433
			106
			887

	4,286 5,863 4,329 408 269
			4,286

			5,863
			4,329
			408
			269

	10,869 1,402
			10,869

			1,402

	33,390
			33,390

3. Tangible Fixed Assets

There are two properties:

The church property at 6 Wye St, Battersea, London SW11 2SR. The church property is held in the name of the London Baptist Property Board.
The manse at 111, Plough Road SW11 2BJ is occupied by the Pastor for the better performance of his duties. The manse is held in the name of Battersea Chapel.

BATTERSEA CHURCH (EDUCATIONAL FOUNDATION)

Notes to the Accounts For the year ended 31 December 2020

4. Restricted Funds

Book agency Building Fund Communion Fund Courses Encouragers Garden fund Men’s group Minibus fund Outing fund PA Equipment Roof Replacement Sunday school fund Youth Group		At 1 January 2020 £ 159 16,596 4,764 5,540 1,043 115 89 360 1,026 1,000 70,000 512 257 101,461	Receipts £ - - 110 - - - - - - - - - - 110	Receipts £ - - 110 - - - - - - - - - - 110	Payments £ - - - - - - - - - - - - - 0	Transfers £ - - - - - - - - - - - - -		At 31
								December
								2020
								£

								159
								16,596
								4,874
								5,540
								1,043
								115
								89
								360
								1,026
								1,000
								70,000
								512
								257

						0
								101,571

Descriptions of the restricted funds are as follows:

Building fund: This is money set aside for any emergency building work.

Communion Fund: This is money collected during the communion service, every 3[rd] Sunday of the week. This is normally used for internal and external charity work at the discretion of the Pastor.

Outing fund: Money set aside to help families who cannot afford to join the annual seaside trip but need the break. Any surplus from each outing is added back to this fund.

PA equipment: Money set aside for the Music Team.

Roof replacement: Substantial amount of money set aside in case we need to replace the roof due to adverse weather.

Special collections: Money given by members aside from their tithes and regular offering. The income was always unrestricted and should not have been accounted as restricted in prior years and so has now been transferred to unrestricted.

Sunday school fund: this is money set aside to purchase gifts and resources for the Sunday school children.

BATTERSEA CHURCH (EDUCATIONAL FOUNDATION)

Notes to the Accounts For the year ended 31 December 2020

5. Pension Deficit

The Minister is eligible to join the Scheme, which is not contracted out of the State Second Pension.

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 Legal and General Life Assurance Society Limited. 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 in the event that 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 Unum Limited. Members of the Basic Section pay reduced contributions of 5% of Pensionable Income, and their employers also pay a total of 5%. 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.

A formal valuation of the Defined Benefit (DB) Plan was performed at 31 December 2016 by a professionally qualified Actuary using the Projected Unit Method. The market value of the DB Plan assets at the valuation date was £219 million.

The valuation of the DB Plan revealed a deficit of assets compared with the value of liabilities of £93 million (equivalent to a past service funding level of 70%). As a result of the valuation, in addition to the contributions to the DC Plan set out above, it has been agreed to increase the standard rate of deficiency contributions from churches and other employers involved in the DB Plan. Under the current Recovery Plan dated 16 December 2019, deficiency contributions are payable until 31 December 2028. 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.

The estimated employer debt is based on the service of the minister(s) and their dependants and has been calculated as £76,400 (2019: £83,100).

6. Related Party Transactions

Leroy Burke, a trustee, was paid a salary at a rate of £27,000 per annum (2019: £27,000) in his employed capacity as pastor and occupied the Church’s manse property rent free for the better performance of his duties. Leroy Burke resigned as pastor on 31 March 2020.