Charity registration number 1069354
LIFE CHURCH SHERINGHAM
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
LIFE CHURCH SHERINGHAM
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees
R Allen D Fisher W Burley S Issitt
Charity number 1069354 Independent examiner Argents Accountants Limited 15 Palace Street NORWICH Norfolk United Kingdom NR3 1RT
LIFE CHURCH SHERINGHAM
CONTENTS
| Page | |
|---|---|
| Trustees' report | 1 - 2 |
| Independent examiner's report | 3 |
| Statement of financial activities | 4 |
| Balance sheet | 5 |
| Notes to the financial statements | 6 - 12 |
LIFE CHURCH SHERINGHAM
TRUSTEES' REPORT
FOR THE YEAR ENDED 31 JULY 2023
The trustees present their annual report and financial statements for the year ended 31 July 2023.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's [governing document], the Charities Act 2011 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).
Objectives and activities
The charity's objects are to advance the Christian Faith in accordance with its Statement of Beliefs.
It also aims to relieve persons who are in hardship or who are aged or sick, and to promote and fulfil such other charitable purposes beneficial to the community.
The charity operates primarily, but not exclusively in Sheringham, Cromer and Holt. It has three Elders, each with their own expertise and experience. Each Elder regularly teaches and preaches at the Life Church, and each has his own area of responsibility. The Elders are supported by a number of volunteer staff who take on administration duties.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
Achievements and performance
Charitable activities
Life Church is a community based Church that serves the North Norfolk towns of Sheringham, Cromer and Holt. We are part of a family of churches called "Relational Mission" and are members of the Evangelical Alliance. Our congregation is made up of people of varying ages, from all walks of life, with a heart to see the church actively engage with local people and their needs. Our church reflects the area in which we live and we welcome anyone and everyone.
We run a number of activities and oversee the work of Yesu, our sister charity, which provides a series of projects for young people, families, single parents, the unemployed, the elderly, people with disabilities, people with mental health issues and anyone facing crisis. As more resources are withdrawn from our rural communities our work is becoming increasingly important and we are always looking at new ways we can support people. Sheringham and the surrounding hinterlands are very much affected by youth unemployment with limited work available outside of seasonal opportunities. It is an isolated coastal town with a significant elderly population who are often socially excluded due to poor transport links and declining community services.
Life Church is financially dependent on the voluntary support of its members.
During the year the Life Church Sheringham Trust has held regular meetings for worship, prayer, teaching and evangelism. In addition, the Church has:
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Been involved in serving the local community
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Provided training and support for volunteers serving in the church, both in house and by utilising external resources,
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Continued regular involvement in Sheringham schools,
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Worked closely with other Relational Mission churches,
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Supported work overseas particularly in Serbia and Bolivia,
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Worked alongside Sheringham Churches Together,
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Put on events such as Sundae Sundays, Breakfasts, Community Brunches and Lunches, Sunday Children’s and youth groups.
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LIFE CHURCH SHERINGHAM
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2023
Life Church owns a Community Centre in Sheringham that it lets to the YESU project rent-free. In addition, we own a building (Life Centre) in Sheringham that provides a meeting place for the Church, as well as providing a building for community use. These premises have allowed us to expand the work of both the church and YESU, and since opening we have seen a growth in regular attendance.
As a church we employ a full-time pastor, and a part time administrator.
Financial review
As at 31 July 2023, the Trust had an accumulated surplus of £1,169,119. These funds are to be used for furthering the aims of Life Church.
Reserves policy
The reserves fund represents the unrestricted funds arising from past operating results. The Trustees have considered the ongoing financial commitments and running costs of the charity and are of the opinion that the current level of reserves is adequate.
Principal funding sources
The Trust receives the majority of its income through donations made by members.
The trustees has assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
Structure, governance and management
The charity is a an unincorporated charity and is controlled by its governing document, a Deed of Trust.
The trustees who served during the year and up to the date of signature of the financial statements were: R Allen
D Fisher W Burley
S Issitt
Recruitment and appointment of new trustees
The Trust Deed governs the appointment of trustees. Existing trustees are authorised to appoint new trustees to fill vacancies arising through resignation or death of one of their number.
Related parties and wider network
Although the charity is totally autonomous, self-supporting, and is not part of a denomination, it forms part of an over two hundred strong affiliation of evangelical churches across the UK called newfrontiers. As well as friendships with other leaders, affiliation with newfrontiers enables Life Church to undertake projects that would be impossible alone, for example, missions abroad and summer conferences. These links help Life Church from being insular and parochial and provides contacts with churches overseas.
The trustees' report was approved by the Board of Trustees.
S Issitt
Trustee
10 February 2024
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LIFE CHURCH SHERINGHAM
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF LIFE CHURCH SHERINGHAM
I report to the trustees on my examination of the financial statements of Life Church Sheringham (the charity) for the year ended 31 July 2023.
Responsibilities and basis of report
As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).
I report in respect of my examination of the charity’s financial statements carried out under section 145 of the 2011 Act. In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.
I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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1 accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or
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2 the financial statements do not accord with those records; or
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3 the financial statements 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 financial statements to be reached.
Mark Johnstone FCA
Argents Accountants Limited 15 Palace Street NORWICH Norfolk NR3 1RT United Kingdom
Dated: 15 February 2024
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LIFE CHURCH SHERINGHAM
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 JULY 2023
| **Unrestricted ** | Unrestricted | ||
|---|---|---|---|
| funds | funds | ||
| 2023 | 2022 | ||
| Notes | £ | £ | |
| Income from: | |||
| Donations and legacies | 3 | 213,420 | 149,915 |
| Charitable activities | 4 | 14,150 | 10,560 |
| Investments | 5 | 250 | 5 |
| Total income | 227,820 | 160,480 | |
| Expenditure on: | |||
| Charitable activities | 6 | 135,356 | 82,959 |
| Other | 10 | 11,188 | 8,051 |
| Total expenditure | 146,544 | 91,010 | |
| Net income for the year/ | |||
| Net movement in funds | 81,276 | 69,470 | |
| Fund balances at 1 August 2022 | 1,087,843 | 1,018,373 | |
| Fund balances at 31 July 2023 | 1,169,119 | 1,087,843 |
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
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LIFE CHURCH SHERINGHAM
BALANCE SHEET
AS AT 31 JULY 2023
| Notes Fixed assets Tangible assets 12 Current assets Debtors 13 Cash at bank and in hand Creditors: amounts falling due within one year 15 Net current assets Total assets less current liabilities Creditors: amounts falling due after more than one year 16 Net assets Income funds Unrestricted funds |
2023 £ £ 1,222,864 12,954 44,060 57,014 (5,490) 51,524 1,274,388 (105,269) 1,169,119 1,169,119 1,169,119 |
2022 £ £ 1,220,461 6,676 29,443 36,119 (6,407) 29,712 1,250,173 (162,330) 1,087,843 1,087,843 1,087,843 |
|---|---|---|
The financial statements were approved by the Trustees on 10 February 2024
S Issitt Trustee
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LIFE CHURCH SHERINGHAM
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023
1 Accounting policies
Charity information
Life Church Sheringham is a unincorporated charity.
1.1 Accounting convention
The financial statements have been prepared in accordance with the charity's [governing document], the Charities Act 2011, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.
The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
1.2 Going concern
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3 Charitable funds
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.
1.4 Income
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
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LIFE CHURCH SHERINGHAM
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2023
1 Accounting policies
(Continued)
1.5 Expenditure
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
1.6 Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings 0% Fixtures and fittings 20% reducing balance
Freehold land is not depreciated. No depreciation is provided on the freehold property owned by the Charity as in the opinion of the Trustees any such charge would be immaterial due to the current market value being in excess of original costs of the property.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
1.7 Impairment of fixed assets
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
1.8 Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9 Financial instruments
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
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LIFE CHURCH SHERINGHAM
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2023
1 Accounting policies
(Continued)
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
1.10 Taxation
The charity is exempt from tax on its charitable activities.
1.11 Employee benefits
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
2 Critical accounting estimates and judgements
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3 Donations and legacies
| **Unrestricted ** | Unrestricted | |
|---|---|---|
| funds | funds | |
| 2023 | 2022 | |
| £ | £ | |
| Donations and gifts | 213,420 | 149,915 |
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LIFE CHURCH SHERINGHAM
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
4 Charitable activities
| Core | Core | |
|---|---|---|
| activities | activities | |
| 2023 | 2022 | |
| £ | £ | |
| Charitable rental income | 14,150 | 10,560 |
| 5 | Investments | ||
|---|---|---|---|
| **Unrestricted ** | Unrestricted | ||
| funds | funds | ||
| 2023 | 2022 | ||
| £ | £ | ||
| Interest receivable | 250 | 5 | |
| 6 | Charitable activities | ||
| Core | Core |
||
| activities | activities | ||
| 2023 | 2022 | ||
| £ | £ | ||
| Postage and stationery | 729 | 569 | |
| Teaching materials | 912 | 914 | |
| Outreach | 2,919 | 2,915 | |
| Gifts | 50,751 | 13,689 | |
| Retreats, conferences and training | 2,167 | 2,991 | |
| Travel | 470 | 612 | |
| Yesu projects | 24,329 | 14,536 | |
| Sundry | - | 15 | |
| 82,277 | 36,241 | ||
| Share of support costs (see note 7) | 52,389 | 46,028 | |
| Share of governance costs (see note 7) | 690 | 690 | |
| 135,356 | 82,959 |
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LIFE CHURCH SHERINGHAM
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
7 Support costs
| Support costs Governance costs £ £ Staff costs 29,924 - Depreciation 8,341 - Building costs 9,607 - Insurance 4,517 - Accountancy - 690 52,389 690 Analysed between Charitable activities 52,389 690 |
2023 Support costs Governance costs £ £ £ 29,924 23,087 - 8,341 7,740 - 9,607 11,354 - 4,517 3,847 - 690 - 690 53,079 46,028 690 53,079 46,028 690 |
2022 £ 23,087 7,740 11,354 3,847 690 |
|---|---|---|
| 46,718 | ||
| 46,718 |
8 Trustees
During the year Richard Allen (trustee) was reimbursed for expenses incurred on behalf of the charity.
R Allen, Church Leader, Project Manager and Trustee, received salary for his employed role in line with the Trust Deed and as commonly occurs for such charities as the Charity Commission is aware. This totalled £33,067 in the year.
9 Employees
The average monthly number of employees during the year was:
| 2023 | 2022 | |
|---|---|---|
| Number | Number | |
| 2 | 2 | |
| Employment costs | 2023 | 2022 |
| £ | £ | |
| Wages and salaries | 29,924 | 23,087 |
There were no employees whose annual remuneration was more than £60,000.
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LIFE CHURCH SHERINGHAM
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
10 Other
| Unrestricted | Unrestricted | |
|---|---|---|
| funds | funds | |
| 2023 | 2022 | |
| Financing costs | 11,188 | 8,051 |
| 11,188 | 8,051 |
11 Taxation
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
12 Tangible fixed assets
| 12 Tangible fixed assets |
|
|---|---|
| Freehold land and buildings Fixtures and fittings £ £ Cost At 1 August 2022 1,189,501 71,742 Additions - 10,744 At 31 July 2023 1,189,501 82,486 Depreciation and impairment At 1 August 2022 - 40,782 Depreciation charged in the year - 8,341 At 31 July 2023 - 49,123 Carrying amount At 31 July 2023 1,189,501 33,363 At 31 July 2022 1,189,501 30,960 13 Debtors 2023 Amounts falling due within one year: £ Trade debtors 10,439 Prepayments and accrued income 2,515 12,954 |
Total £ 1,261,243 10,744 |
| 1,271,987 | |
| 40,782 8,341 |
|
| 49,123 | |
| 1,222,864 | |
| 1,220,461 | |
| 2022 £ 4,436 2,240 |
|
| 6,676 |
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LIFE CHURCH SHERINGHAM
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
14 Loans and overdrafts
| Bank loans Other loans Payable within one year Payable after one year Creditors: amounts falling due within one year Notes Bank loans 14 Trade creditors Creditors: amounts falling due after more than one year Notes Bank loans 14 Other borrowings |
2023 £ 108,031 - 108,031 2,762 105,269 2023 £ 2,762 2,728 5,490 2023 £ 105,269 - 105,269 |
2022 £ 121,271 45,000 |
|---|---|---|
| 166,271 | ||
| 3,941 162,330 |
||
| 2022 £ 3,941 2,466 |
||
| 6,407 | ||
| 2022 £ 117,330 45,000 |
||
| 162,330 |
15 Creditors: amounts falling due within one year
16 Creditors: amounts falling due after more than one year
17 Related party transactions
Richard Allen (Trustee) and his wife Jane Allen have in previous years advanced interest free loans to the charity. There are no fixed repayment terms for the loan and they are included as long term creditors. At the year end all interest free loans had been repaid (2022 outstanding balance: £45,000 of which Mr and Mrs Allen had advanced £40,000 The remainder if the balance has been advanced by various Church members and organisations who are not trustees or related parties.)
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