2022-12-31-accounts - Battersea Chapel Educational Foundation

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BATTERSEA CHAPEL (EDUCATIONAL FOUNDATION)

Charity Registration Number: 312325

31 December 2022 Annual Report and Accounts

BATTERSEA CHAPEL (EDUCATIONAL FOUNDATION)

Annual Report and Accounts 2022 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 CHAPEL (EDUCATIONAL FOUNDATION)

Legal & Administrative Information For the year ended 31 December 2022

Charity Name	Battersea Chapel (Educational Foundation).
Principal Address	83 Thomas Baines Road Battersea, London, SW11 2HH
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:
	Reverend Adebayo Babalola
	Abiodun Christabel Oyeleke (term ended 31 October 2022)
	Janee Hankins (term ended 31 October 2022)
	Daniel Johnson
	Bre Antonia Mc Dermott- King
	Hilary Sheikh
	Foluke Adenrele Moses
	Patience Nandi Mtopa-Offei
	Carla Burton (appointed 1 July 2023)
	Rose Kudiabor (appointed 1 July 2023)
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 2TR
	National Savings & Investment
	Sunderland
	SR43 2SB
Independent Examiner	Christine Cheung-Poston
	Flat 48, Samford House
	Charlotte Terrace
	London N1 0JF

BATTERSEA CHAPEL (EDUCATIONAL FOUNDATION)

Trustees Report For the year ended 31 December 2022

The Trustees submit their annual report and accounts of Battersea Chapel (Educational Foundation) (“the Church”) for the year ended 31 December 2022. 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:

We have settled in very well at our new address of 83 Thomas Baines Road, Battersea SW11 2HH. The new building was dedicated in June 2022

Activities held are:

Sunday services
Weekly Bible Studies (are held in person once a month )
Weekly prayer meetings
Late night prayer meetings on the second and last Friday of each month

Social Activities include:

Friends in Battersea group for over 50s in the community every Thursday
Mother’s day in the community
Community Easter services
Dedication of church building
Adult Baptism at Easter
Annual seaside trip
Love Battersea collaborative community event
Church picnic and games in the park
Annual Harvest service and food distribution in the community
Carol singing at local Sainsburys superstore

3. Achievements

We were able to welcome new addition to the church members list. We participated in Love Battersea – a collaborative community event.

We established an over 50s community group which provides warm space activities for those in need.

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.

BATTERSEA CHAPEL (EDUCATIONAL FOUNDATION)

Trustees Report For the year ended 31 December 2022

The Church’s cash resources decreased by £45,971 during the year to £263,133 (2021: decreased by £26,843 to £309,104).

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 most recent (30 June 2022) estimated employer debt is based on the service of the minister(s) and their dependants and has been calculated as £17,600 (2021: £51,900). More details can be found in note 6.

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 2022 the Church had net free reserves of £260,171 (2021: £308,744).

Total cash reserves Less: restricted funds Free reserves Free reserves requirement: 3 month’s budgeted routine expenditure	2022	2021 £ 309,104 (360)
	£

	263,133
	(2,962)

		308,744
	260,171

		20,000

	20,000

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 12 March 2024 and signed on its behalf by:

Daniel Johnson Trustee

Foluke Adenrele MOSES Trustee

BATTERSEA CHAPEL (EDUCATIONAL FOUNDATION)

Independent Examiner’s Report For the year ended 31 December 2022

I report on the accounts of Battersea Church (Educational Foundation) for the year ended 31 December 2022, set out on pages 6 to 12.

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.

Christine Cheung-Poston

12 March 2024

BATTERSEA CHAPEL (EDUCATIONAL FOUNDATION)

Receipts & Payments Account For the year ended 31 December 2022

Note Receipts Donations and legacies Lettings Investments Other 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 4,5	Unrestricted Funds 2022 £ 38,957 1,620 545 1,250 42,372 90,945 90,945 (48,573) - 308,744 260,171		Restricted Funds 2022 £ 4,602 - - - 4,602 2,000 2,000 2,602 - 360 2,962		Total 2021 £ 61,635 1,500 778 5,400	)
				Total
				2022
				£

				43,559
				1,620
				545
				1,250

					69,313

				46,974

					96,156


				92,945

					96,156

				92,945

					(26,843 - 335,947

				(45,971)

				-

				309,104

					309,104

				263,133

An analysis of restricted funds can be found at note 5.

BATTERSEA CHAPEL (EDUCATIONAL FOUNDATION)

Statement of Assets & Liabilities As at 31 December 2022

Note Assets Tangible Assets 3 Investments Debtors Cash At Bank And In Hand 4,5 Liabilities Loan: London Baptist Property Board Pension deficit 6 Total Assets Less Liabilities	Unrestricted Funds 2022 £ - 603 - 260,171 260,774 6,222 - 254,552	Restricted Funds 2022 £ - - - 2,962 2,962 - - 2,962		Total 2021 £ - 725 - 309,104
			Total
			2022
			£

			-
			603
			-
			263,133

				309,829 5,976 51,900

			263,736


			6,222
			-

				251,953
			257,514

The Accounts were approved by the Trustees on the 12 March 2024 and signed on its behalf by:

Daniel Johnson Trustee

Foluke Adenrele MOSES Trustee

BATTERSEA CHAPEL (EDUCATIONAL FOUNDATION)

Notes to the Accounts For the year ended 31 December 2022

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 Relocation costs Manse insurance (664) Manse repairs and maintenance Other Church life & outreach Preaching fees Travel & subsistence Music Other Gifts & grants Office Costs Telephone, broadband, website Subscriptions Printing, stationery & postage Sundry Provision of buildings and facilities Heat, light & water Insurance Maintenance, cleaning, security Equipment Sundry Governance Independent examination	Unrestricted Funds 2022 £ 24,943 3,727 1,220 - 556 8,795 953	Restricted Funds 2022 £ - - - - - - - 0 - - - - - 0 2,000 - - - 2,000 - - - - - 0 - 2,000		Total 2021 £ 18,619 4,904 1,335 1,675 511 22,736 499 50,279 100 - 145 86 947 1278 2,536 611 1,388 992 5,527 4,214 3,437 15,714 13,448 138 36,951 2,121 96,156
			Total
			2022
			£

			24,943
			3,727
			1,220
			-
			556
			8,795
			953

	40,194 450 - 5,055 4,161 1,778
			40,194

			450
			-
			5,055
			4,161
			1,778

	11,444 2,411 189 1,454 3,494
			11,444

			4,411
			189
			1,454
			3,494

	7,548 11,690 5,402 1,995 11,076 576
			9,548

			11,690
			5,402
			1,995
			11,076
			576

	30,739 1,020
			30,739

			1,020

	90,945
			92,945

BATTERSEA CHAPEL (EDUCATIONAL FOUNDATION)

Notes to the Accounts For the year ended 31 December 2022

3. Tangible Fixed Assets

There are two properties:

The church property at 83 Thomas Baines Road, Battersea, London SW11 2HH. 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.

4. Unrestricted Funds

At 1 January 2022 £ 285,320 159 16,596 4,874 1,026 512 257 23,424 308,744	Payments £ (90,945) - - - - - - 0 (90,945)	Transfers £ - - - - - - -	At 31
			December
			2022
			£

			236,747


			159
			16,596
			4,874
			1,026
			512
			257

		0
			23,424

		0
			260,171


At 1 January 2022 £ Receipts £ 234,376 69,312 0 - 0 - 0 - 0 - 0 - 0 - 0 0 234,376 69,312	Payments £ (95,156) - - - - - - 0 (95,156)
At 1 January 2022 £ 234,376 0 0 0 0 0 0 0 234,376		Transfers £ 76,787 159 16,596 4,874 1,026 512 257	At 31
			December
			2022
			£

			285,319


			159
			16,596
			4,874
			1,026
			512
			257

		23,424
			23,424

		100,211
			308,743

BATTERSEA CHAPEL (EDUCATIONAL FOUNDATION)

Notes to the Accounts For the year ended 31 December 2022

At 1 January 2022 £ Receipts £ 0 10 360 - 0 2,000 0 2,552 0 40 360 4,602	Payments £ - - (2,000) - - (2,000)
At 1 January 2022 £ 0 360 0 0 0 360		Transfers £ - - - - -	At 31
			December
			2022
			£

			10
			360
			0
			2,552
			40

		0
			2,962


At 1 January 2021 £ Receipts £ 159 - 16,596 - 4,874 5,540 - 1,043 - 115 - 89 - 360 - 1,026 - 1,000 - 70,000 - 512 - 257 - 101,571 0	Payments £ - - - - - - - - - (1,000) - - - (1,000)
At 1 January 2021 £ 159 16,596 4,874 5,540 1,043 115 89 360 1,026 1,000 70,000 512 257 101,571		Transfers £ (159) (16,596) (4,874) (5,540) (1,043) (115) (89) - (1,026) - (70,000) (512) (257)	At 31
			December
			2021
			£

			0
			0
			0
			0
			0
			0
			0
			360
			0
			0
			0
			0
			0

		(100,211)
			360

The reason for the transfers is to correct the allocations of funds in prior years to restricted funds because these funds were in fact, upon further investigation, either designated or unrestricted funds.

Descriptions of the restricted funds, now designated 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 month and set aside 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.

BATTERSEA CHAPEL (EDUCATIONAL FOUNDATION)

Notes to the Accounts For the year ended 31 December 2022

5. Restricted Funds (continued)

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

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

6. 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 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.

The estimated employer debt is based on the service of the minister(s) and their dependants and has been calculated as £17,600 (2021: £51,900).

7. Related Party Transactions

Adebayo Babalola, a trustee from April 2022, was paid a salary at a rate of £24,500 per annum in his employed capacity as pastor and occupied the Church’s manse property rent free for the better performance of his duties.