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← Dunrossness Baptist Church

2025-04-05-accounts

DUNROSSNESS BAPTIST CHURCH

REPORTS AND FINANCIAL

STATEMENTS FOR THE YEAR ENDED 5[TH]

APRIL 2025

Charity Number SC021227

DUNROSSNESS BAPTIST CHURCH ANNUAL REPORT AND FINANCIAL STATEMENTS For the Year to 5[th] April 2025

Contents

Page
Legal and Administrative Information 3
Report of the Trustees 4 - 7
Receipts and Payments Account 8
Statement of Balances 9
Notes forming part of the Receipts and Payments Account 10-13
Report of the Independent Examiner Attached

DUNROSSNESS BAPTIST CHURCH ANNUAL REPORT AND FINANCIAL STATEMENTS For the Year to 5[th] April 2025

Legal and Administrative Information

Minister

Trustees

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Principal Address

Dunrossness Baptist Church Dunrossness Shetland, ZE2 9JB.

Correspondence Address

Independent Examiner

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Eterna Accountants and Business Advisory Ltd High Street Penistone Sheffield S36E

3

DUNROSSNESS BAPTIST CHURCH ANNUAL REPORT AND FINANCIAL STATEMENTS For the Year to 5[th] April 2025

The Trustees present their report, along with the financial statements of the charity for the year ended 5th April 2025. The financial statements have been prepared with regard to applicable charity law and comply with the Church’s constitution.

Status of Charity and Governing Document

Dunrossness Baptist Church was founded in 1816, and is an unincorporated association. Its purposes and administrative arrangements are set out in its constitution. The church is a Scottish Charity (Number SC021227) and is recognised by the Inland Revenue under reference number CR47009.

Aims and Affiliation

The Church’s aims are the advancement of the Christian faith primarily in Dunrossness, Shetland and also throughout Scotland and the rest of the world by means consistent with the teachings of the Christian Bible including worship, ministry, mission, prayer, witness, education, community service, the support of agencies and individuals and other charitable organisations involved in Christian missionary work, and the relief of poverty or other social needs.

The Church is autonomous, and financially self-supporting. It is voluntarily affiliated to the Baptist Union of Scotland.

Trustees and Office Bearers

The Trustees are listed on page 3. Trustees’ appointment is governed by the constitution of the Church that stipulates that Trustees are elected by, and are responsible to, the members of the Church gathered at a Members’ Meeting.

The Church is congregational in policy, and the day-to-day management of its affairs is entrusted to its Office Bearers and Diaconate. Its Office Bearers are:

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Appointment of Trustees

Trustees are nominated to the Church Members’ Meeting for appointment by the existing Trustees, and serve for a term of four years, after which they remain eligible for re-election, should they wish. Prior to appointment, they will have shown an understanding of the principles and ethos of the Church and will agree with its aims and values. Their induction as Trustees includes training in their statutory responsibilities.

Statement on Risk

The Church has in place policies that relate to Health and Safety, Child and Vulnerable Adult Protection, Asbestos Management and Risk Assessment. The Church has policies in place to ensure compliance with current PVG (Protection of Vulnerable Groups) legislation. The Trustees are aware of Financial Risk, and actively seek to mitigate this as far as possible.

4

DUNROSSNESS BAPTIST CHURCH ANNUAL REPORT AND FINANCIAL STATEMENTS For the Year to 5[th] April 2025

Achievements and Performance

The forward planning of events that took place in the 2023 / 24 year was taken further this year by a series of open forum events for anyone in the congregation to suggest ideas for future events and outreach activities. There was a good level of engagement with the open forum and a broad range of suggestions were received. These were then collated, prioritised and a summary shared with the Church. Progress was made on a number of suggestions the most significant being:

A number of special events were held in the Church during the year as part of our community outreach. Some of which have now become established as annual events, such as hosting a Tearfund Big Quiz in November and the Christmas Eve carol service, both of which were well attended.

Other special events of note were the Gospel Music night and also a Variety Music Concert, the later to raised funds for the RNLI.

A Baptismal service was held in May 2025 which was very well attended.

Our Church building has been used occasionally to hold funerals for people not directly connected to our congregation following the closure of the nearby Church of Scotland building. As a Church we are very willing to help with hosting funerals as a service to the community.

Due to falling attendance our Junior Church for primary School aged Children has ceased but we still have a small number of younger Children attending from time to time. Efforts have been made to ensure that there is something suitable for them during the first part of the service. In October 2024 the Church held an October Holiday Club for Children, meeting 3 mornings. Although attendance was low those leading felt it had been a worthwhile project and was very much appreciated by the Children who attended and their families.

Weekly Church life continues to be a team effort with a good number of people willing to lead the first part of our Sunday service and many other duties & responsibilities, some of which go unseen.

5

DUNROSSNESS BAPTIST CHURCH ANNUAL REPORT AND FINANCIAL STATEMENTS For the Year to 5[th] April 2025

Ongoing maintenance continued on both the Church building and the Manse. On the Church the largest task undertaken was repainting the roof. With the regards to the Manse the financial year ended with planning significant repairs and maintenance to be undertaken in April and May 2025, following our most recent tenants moving out at the end of March. It is expected that the cost of materials will be in the order of £3,500, with labour being provided free of charge by members of the Church congregation. Trustees wish to express thanks to all those who have given time and expertise once again this year in the upkeep of our buildings.

The trend of a small decline in membership and attendance continued again this year which is a concern and mostly due to the death of older members and the ill-health. At times this has affected the availability of people for running events and activities and the Church has had to adjust accordingly. However numbers do not provide a complete picture of Church life and trustees remain grateful of the commitment of everyone who contributes to the ongoing work of the Church, and note there is a clear desire within the Church for it to be reaching out and meeting community needs wherever we can.

Financial Review

The Church’s principal source of funding is from its congregation by way of offerings including gift aided donations. Occasional grant funding may be received for specific projects or work to the Church buildings.

The financial statements for the year are set out in pages 8 to 10. The Receipts and Payments Account on page 8 shows a surplus of £2,287 (2024: deficit £129) in unrestricted funds/activities.

Offering income is slightly below the previous year, but has been compensated in the current year through a catch up of Gift Aid reclaimed from HMRC.

Manse rental income has contributed to Church finances from October 2022 when the Church manse was let out under a Scottish Private Residential Tenancy Agreement.

Donations to other organisations of £2,446 represent 4.9% of Sunday offering income (including Gift Aid) (2024: 5.8%). This represents a continues drop from 2022 where this figure was 6.4% of a higher income base. The trustees feel it is an important part of the church’s life to support mission and Christian outreach in the UK and worldwide. Although financial circumstances have meant that we have been unable to do so in the last two years, the trustees maintain the longterm target of giving 10% of offering income to other causes.

Trustees continue to monitor the finances of the Church closely as the deficits incurred over recent years are not sustainable over the longer term. The current level of reserves at just under £25,000 are adequate to maintain the ongoing work of the Church in the next few years assuming offering income does not fall below current levels.

6

DUNROSSNESS BAPTIST CHURCH ANNUAL REPORT AND FINANCIAL STATEMENTS For the Year to 5[th] April 2025

Reserves Policy

The church is entirely dependent on the voluntary offerings of its congregation for its income. Considering this, the trustees are of the clear opinion that it is both prudent and necessary to maintain unrestricted funds from past years’ surpluses both in order to cater for fluctuations in those offerings, and to have a reasonable level of funds available for unforeseen contingencies including building repairs. The church is financially independent and has no access to regular sources of funding outside of its own congregation. Reserves are detailed on the statement of funds (page 8) with further explanation in note 11 (page 12.)

Grant Making Policy and Investment Policy

The Church makes grants and donations to organisations that are generally known to the Trustees and the Church. All the beneficiaries are involved in activities or ministries compatible with the Church’s objectives.

The church has no equity or other investments and has no Investment Policy.

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7

DUNROSSNESS BAPTIST CHURCH ANNUAL REPORT AND FINANCIAL STATEMENTS For the Year to 5[th] April 2025

Receipts and Payments Account for year ended 5th April 2025

RECEIPTS
Offerings, donations and Gift Aid
Offerings: Regular gifts
Offerings: One off/occassional gifts		 RECEIPTS
Offerings, donations and Gift Aid
Offerings: Regular gifts
Offerings: One off/occassional gifts		 Note
(2)		 2025
2025
2025
General
Restricted
Total
£
£
£
32,240
32,240
4,885
4,885		 2024
Total
£
33,871
12,823
Offerings: Donations for specified Causes (2) 1,383
1,383		 545
T ax recovered from Gift Aid (2) 12,053
133
12,186		 7,719
O
Inve		 ther income
`
stment Income
Manse rent		 (3) 447
447
49,625
1,516
51,141
9,350
9,350		 346
55,304
10,200
Interest income
-
PAYMENTS
Cost of Generating Income
Insurance - Manse
Repairs and renewals - Manse
Cost of Charitable Activities
Pastoral costs
Stipend and Allowances
Baptist Union Pension Scheme
Reimbursable Expenses
Other
Ministry costs
Baptist Union of Scotland Affiliation
Pulpit Supply
Church service costs
Children and youth activities
Church activities
Donations to other Christian Ministry
Restricted Gifts Passed On
General church administration
Office costs
Broadband
Cleaning and janitorial
Kitchen Supplies
General Expenses
Health and Safety
Premises and Maintenance
Electricity
Heating Oil
Insurance - Church
Repairs and Renewals - Church
Governance
Independant Examination Fees
Equipment Purchases
Digital Screen
Net Surplus/(Deficit)
Opening Cash Reserves
Net Surplus/(Deficit)
Closing Cash Reserves		 (3)
(3)
(4)
(5)
(6)
(7)
(2)
(2)		 178
178
9,528
-
9,528
59,153
1,516
60,669
657
657
1,647
1,647
2,304
-
2,304
40,858
40,858
4,241
4,241
485
485
-
-
-
1,596
1,596
-
603
603
-
95
95
850
850
688
688
453
453
595
595
-
403
403
14
14
80
80
816
816
642
642
1,599
1,599
1,157
1,157
54,487
688
55,175
75
75
56,866
688
57,554
1,900
1,900
2,287
(1,072)
1,215
21,312
3,101
24,413
2,287
(1,072)
1,215
23,599
2,029
25,628		 135
10,335
65,639
572
570
1,142
39,699
4,004
1,029
12
-
-
1,596
100
280
46
70
900
588
246
617
104
190
85
330
1,760
1,562
8,732
61,950
75
63,167
2,472
21,941
2,472
24,413

8

DUNROSSNESS BAPTIST CHURCH ANNUAL REPORT AND FINANCIAL STATEMENTS For the Year to 5[th] April 2025

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Note 2025 2024
Total Total
Assets 12 £ £
Buildings
Church 100,000 100,000
Manse 180,000 180,000
280,000 280,000
Other Assets 3,400 2,500
Total Assets 283,400 282,500
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Approved by the Trustees and signed on their behalf:

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9

DUNROSSNESS BAPTIST CHURCH ANNUAL REPORT AND FINANCIAL STATEMENTS For the Year to 5[th] April 2025

Notes to the Accounts for the year ended 5[th] April 2025

1. Basis of Accounting

These accounts have been prepared on a Receipts and Payments basis in accordance with FRS 102, as required by the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006.

Accruals and prepayments of general expenses, PAYE and NI payments not yet due, and Gift Aid Reclaim not yet received are not included in any of the attached figures.

2. Restricted Funds

Amounts received for specified causes, and only to be spent in respect of those are treated as Restricted Funds. The analysis of restricted funds and their movement during the year is as follows:

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2024 2025 2025 2025
Balance Receipts Payments Balance
£ £ £ £
Messy Church - money held for future activities 500 500
Legacy - funds to be spent in accordance with legatee's wishes 2,000 (1,900) 100
Heating System - special offering for new heating system 601 601
Tearfund - proceeds from The Big Quiz 298 298
RNLI Concert 530 530
India Village Ministries 344 (344) -
Funeral offering 25 (25) -
BMS - Christmas Greetings donations 319 (319) -
3,101 1,516 (2,588) 2,029
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Restricted Funds receipts include any associated gift aid received on the donations.

3. Investment Income

The rent for the church manse has been let out under a standard Scottish Private Residential Tenancy Agreement from the 12[th] of October 2022, as it is not required by the current minister.

The income from this rental is used to pay for the maintenance and upkeep of the property, and any additional expenses and allowances due to the minister providing his own accommodation.

Any surplus is not added to any restricted or designated funds but is added to the general income of the church.

4. Stipend and Allowances

The stipend and allowances comprises the cost of employment of the minister of the church, who has been employed by the church since 1[st] October 2017. The minister is the only employee of the church and the full time equivalent for both 2024 and 2025 is 1.0.

The Church follows the recommended stipend level set by the Baptist Union of Scotland, supplemented by the 5% Island Allowance in line with the local health board, the local authority, and a number of other local charitable bodies.

10

DUNROSSNESS BAPTIST CHURCH ANNUAL REPORT AND FINANCIAL STATEMENTS For the Year to 5[th] April 2025

Notes to the Accounts for the year ended 5[th] April 2025 (continued)

5. Pension Contributions

The Church is an employer participating in the Baptist Pension Scheme, previously known as the Baptist Ministers' Pension Fund until 31 December 2011. The Scheme is a separate legal entity which is administered by the Pension Trustee (Baptist Pension Trust Limited). The Baptist Pension Scheme is not contracted out of the State Second Pension.

The Fund started in 1925 but was closed to future accrual of defined benefits (DB) on 31 December 2011. From January 2012, pension provision is being made through a separate Defined Contribution (DC) Plan within the Scheme.

In prior years the closed Defined Benefit Plan had been in deficit, and the church had been making additional contributions to make up this deficit. As at 5[th] April 2025, the plan was in surplus, due to a cash injection by the Baptist Union of Great Brittain, and the monthly deficiency contributions to the closed Defined Benefit Plan were reduced to £1 per month from August 2022.

During the year the Baptist Pension Scheme unveiled an option for member churches to withdraw entirely from the closed Defined Benefit Plan, subject to the payment of a one-off administration fee of £1,000. On 18[th] February 2024 the church members agreed to this expenditure and to withdraw from the closed Defined Benefit Plan.

The Baptist Pension Scheme has been actively seeking an insurance company to underwrite the closed Defined Benefit Plan, and in January 2024 they announced that they had succeeded in finding a suitable underwriter. Once this goes ahead, the closed Defined Benefit Plan will be wound up, and member churches will not be liable for any further contributions to the scheme or to pay an administration fee.

Accordingly, the earlier withdrawal from the closed Defined Benefit Plan and the associated £1,000 payment, has been put on hold pending the outcome of the negotiations with the insurance underwriter. If these do not proceed we currently still have the option to pay the administration fee and withdraw from the closed Defined Benefit Plan.

In the event there are surplus funds in the closed Defined Benefit Plan after liabilities transfer to the insurance underwriter, they will return to the Baptist Union and no repayment to member churches is expected.

Pension contributions as a percentage of pensionable income were made during the current year to the new Defined Contribution Plan as follows:

Member contribution: 10% Church/employer contribution: 10%

The actual employer’s pension contributions paid in the year of £4,241 (2024: £4,004) is made up of the following:

up of the following:
2025
2024
Defined Benefit Plan (closed)
Defined Contribution Plan (ongoing)		 Total
Total
£
£
7
12
4,234
3,992
4,241
4,004

More information on the Baptist Pension Scheme can be found at www.baptistpensions.org.uk

11

DUNROSSNESS BAPTIST CHURCH ANNUAL REPORT AND FINANCIAL STATEMENTS For the Year to 5[th] April 2025

Notes to the Accounts for the year ended 5[th] April 2025 (continued)

6. Related Party Transactions

As allowed by OSCR, the Trustees maintain as part of the church insurance policy directors and officers liability insurance to protect them against legal claims brought against them personally in respect of church activities.

In addition a total of £3,219 was paid to trustees reimbursing them for direct expenses incurred on behalf of the church. This includes the £1,900 for the purchase of a digital screen as a bequest from a member.

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----- Start of picture text -----
2025 2024
Total Total
£ £
Catering 190 70
Cleaning 27
Equipment 1,900
Health and Safety/PVG 80
Junior church materials 46
Maintenance 72
Printing materials 115 45
Restricted gifts (passed on in cash) 25
Travel 298 1,029
Website domain and hosting 539 201
3,219 1,418
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All reimbursed expenses are supported by the relevant invoices and/or receipts and independently authorized.

7. D o n a t i o n s

Voluntary donations to other causes were made from unrestricted funds as follows:

2025
2024
Baptist Union of Scotland
BMS World Mission
Scottish Baptist College
India Village Ministries		 Total
Total
£
£
1,596
1,598
425
400
425
400
-
100
2,446
2,498

No donations were made directly to individuals other than in respect of Pulpit Supply.

12

DUNROSSNESS BAPTIST CHURCH ANNUAL REPORT AND FINANCIAL STATEMENTS For the Year to 5[th] April 2025

8. Reserves

Unrestricted general funds comprise income received for the objects of the church without further specified purpose and are available as general funds.

The trustees have a target unrestricted general reserve of s should be in the region of £17,500 - £30,000 to allow for sudden unexpected premises maintenance/expenditure of £10,000 - £15,000 and for any unexpected shortfall in income of £7,500 - £15,000

Unrestricted designated funds comprise income received for the objects of the church without further specified purpose, which have been designated for a particular purpose by the Trustees.

The church had previously maintained a designated fund for renovations and maintenance of church buildings and purchase of equipment. However this practice did not reflect the reality whereby renovations and maintenance are paid for out of general income and money set aside in this “fund” is not restricted from supporting day to day expenditure. As such the designated fund has been discontinued and merged with general reserves.

Restricted funds are held and spent only for the specific purpose they were given. The breakdown of movements in restricted expenditure is detailed in note 2.

11. Assets

The church building and manse are stated at the Trustees’ estimate of market value. Equipment and fixtures & fittings are stated at the Trustees’ estimate of current market value.

The church is aware of approximately £1,750 of Gift Aid which has yet to be claimed and is not included in the above accounts as they are prepared on a receipts and payments basis.

12. Liabilities:

There is an outstanding HMRC payment for PAYE and National Insurance of £1,658 which is not included in the above accounts as they are prepared on a receipts and payments basis and is not due until 20[th] April 2025.

13. Independent Examiner’s Fee

A donation of £75 was paid to the Shetland Food Bank in lieu of a fee at the request of the Independent Examiner in respect of the current year and an equivalent fee was paid to the Independent Examiner in respect of the previous year.

13

Dunrossness Baptist Church – Registered Charity SC021227

Independent Examiner’s Report to the trustees of Dunrossness Baptist Church

I report on the accounts of the charity for the year ended 5 April 2025.

Respective responsibilities of trustees and examiner

The charity’s trustees are responsible for the preparation of the accounts in accordance with the terms of the Charities and Trustee Investment (Scotland) 2005 Act and the Charities Accounts (Scotland) Regulations 2006. The Charity’s trustees consider that an audit is not required this year as the audit requirement of Regulation 10(1)(d) does not apply and that an independent examination is required.

It is my responsibility to:

Basis of independent examiner’s report

My examination was carried out in accordance with Regulation 11 of the Charities Accounts (Scotland) Regulations 2006. 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 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:

  1. Which gives me reasonable cause to believe that, in any material respect, the requirements:

    • a. To keep accounting recorded in accordance with section 44(1)(a) of the 2005 Act and Regulation 4 of the 2006 Accounts Regulation, and

    • b. To prepare accounts in accord with the accounting records and to comply with Regulation 9 of the 2006 Accounts Regulation

  2. have not been met;

or

  1. To which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.

Eterna Accountants and Business Advisory Ltd

High Street Penistone Sheffield S36E