ID: 1f2140df-30ad-483a-b63e-89f7617c1651
Company Registration Number - 04234528
The Charity Registration Number is :- 1087559
Living Word (Hailsham)
(a company limited by guarantee)
Report and Accounts
30 September 2022
ID: 1f2140df-30ad-483a-b63e-89f7617c1651
Living Word (Hailsham)
Report and accounts for the year ended 30 September 2022
Contents
| Page | ||
|---|---|---|
| Charity information | 1 | |
| Trustees' Annual Report | 1 | |
| Statement of directors' responsibilities | 6 | |
| Independent Accountant's Report | 8 | |
| Funds Statements:- | ||
| Statement of Financial Activities | 10 | |
| Movements in funds | 11 | |
| Income and Expenditure account | 12 | |
| Balance sheet | 13 | |
| Notes to the accounts | 15 |
ID: 1f2140df-30ad-483a-b63e-89f7617c1651
Living Word (Hailsham)
Company Registration Number - 04234528
Trustees' Annual Report for the year ended 30 September 2022
The Trustees present their Report and Accounts for the year ended 30 September 2022, which also comprises the Directors' Report required by the Companies Act 2006.
Reference and administrative details
The charity name.
The legal name of the charity is:- Living Word (Hailsham).
The charity is also known by its operating name, "Living Word Community Church".
The charity's areas operation and UK charitable registration.
The charity is registered in England & Wales with the Charity Commission in England & Wales (CCEW) with charity number 1087559.
. The charity does not operate directly in any overseas jurisdictions, however it does currently send quarterly financial support (funds and grants) to Life Word Children's Home in Itare, Kenya (which does have charitable status in Kenya) and therefore the trustees consider this to be an area of operation.
Legal structure of the charity
The charity is constituted as a company limited by guarantee, registered under the Companies Acts . The governing document of the charity is the Memorandum and Articles of Association establishing the company under company legislation.
The governing document is dated 14 June 2001
There are no restrictions in the governing documents on the operation of the Charity or on its investment powers other than those imposed by Charity Law.
By operation of law all, trustees are directors under the Companies Act 2006 and all directors are trustees under Charities legislation and have responsibilities, as such, under both company and charity legislation.
The trustees are all individuals.
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ID: 1f2140df-30ad-483a-b63e-89f7617c1651
Living Word (Hailsham)
Company Registration Number - 04234528
Trustees' Annual Report for the year ended 30 September 2022
The principal operating address, telephone number, email and web addresses of the charity are:-
3 Mill Road Hailsham, East Sussex, BN27 2HP Telephone 01323 441211
Email Address info@living-word.org.uk Web address www.living-word.org.uk
The registered office of the charity for Companies Act purposes is:-
Philips House Drury Lane, St Leonards on Sea East Sussex, TN38 9BA
The Trustees in office on the date the report was approved were:-
S J Houghton R W Olesen B A Howe
The following persons served as Trustees during the year ended 30 September 2022 :-
The trustees who served as a trustee in the reporting period were as shown above, and there were no changes during the year, or in the period between the year end and the approval of the accounts.
All the trustees are also members of the charity.
Objects and activities of the charity
The purposes of the charity as set out in its governing document.
The charity is a company limited by guarantee and was incorporated on 14 June 2001. The principal activity of the Company being the advancement of the Christian Faith.
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ID: 1f2140df-30ad-483a-b63e-89f7617c1651
Living Word (Hailsham)
Company Registration Number - 04234528
Trustees' Annual Report for the year ended 30 September 2022
The main activities undertaken in relation to those purposes during the year.
Until the end of March 2022, the charity was the legal umbrella for the church known as Living Word Community Church. However, due to various circumstances, it was decided by the church leadership that the church should disband. Church members have subsequently joined other churches in the area. Prior to that time the church had met regularly on a Sunday for worship and bible teaching and continued its weekday activities. The Young Peoples Club also continued to operate during that time.
Before the closure of the church, the church members unanimously expressed their desire to continue the charitable work of the church. It was therefore decided by the trustees of Living Word (Hailsham) to continue to generate funding for the charitable work that had previously been engaged in by the members of the church. Regular donations from the church members have continued and have increased in some instances. This has resulted in the charity being able to continue to send quarterly financial support to Life Word Children's Home in Itare, Kenya. The support provides help to feed and clothe the children, pay their school fees, plus additional medical fees. We also provide for the employment of a Matron and Patron for the children. The charity was also able to fund two of the older young people into tertiary education at Kisii National Polytechnic in September 2022. During the year the charity also funded the building of a dining room and kitchen at the children’s home.
The charity has also been able to financially support other charitable causes in pursuance of the advancement of the Christian faith.
The main activities undertaken during the year to further the charity's purpose for the public benefit.
The principal public benefit provided by the charity is the advancement of the Christian Faith.
The trustees have had regard to the Charity Commission's guidance on public benefit in managing the activities of the charity.
3
ID: 1f2140df-30ad-483a-b63e-89f7617c1651
Living Word (Hailsham)
Company Registration Number - 04234528
Trustees' Annual Report for the year ended 30 September 2022
The main achievements and performance of the charity during the year.
During the previous year of Living Word (Hailsham), the directors are pleased to report the following in accordance with the objects of the Charity:
Gifts and Donations (inclusive of Gift Aid tax refunds) were made to the sum of £31,985 (2021: £35,792). These were distributed to individuals and organisations who operate in the UK and overseas. Some are involved directly in the promotion of the Christian Faith; others work with churches overseas who assist in the relief of poverty and seek to provide educational facilities within their own countries.
Fundraising activities during the year.
The charity relies mainly on contributions from members/donors identified in the accounts, whose support is valued. There have been no other fundraising activities.
The difference the charity's performance during the year has made to the beneficiaries of the charity and wider society.
Through the advancement of the Christian Faith and through the participation of our members and supporters, our performance during the year has contributed to the principal public benefit aims of the charity.
The Statement of Financial Activities shows net outgoing resources for the year of a revenue nature of £6062 (prior year, net incoming resources of £799).
The total reserves at the year end stand at £4,522.
Free unrestricted liquid reserves amounted to £3,787.
Structure, governance and management of the charity
The methods used to recruit and appoint new charity trustees.
New trustees are advised of all documentation held in the association’s office relating to their legal requirements and obligations under charity and company law, recent financial statements, minutes of meetings and governing documents. Trustees are informed of any external training events appropriate to their role.
The trustees' bankers and advisors
Bankers
Accountants
Nat West Bank plc - 96 Terminus Road, Eastbourne BN21 3LX
MDM Accounting Ltd - Philips House, Drury Lane, St Leonards on Sea, East Sussex TN38 9BA
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ID: 1f2140df-30ad-483a-b63e-89f7617c1651
Living Word (Hailsham)
Company Registration Number - 04234528
Trustees' Annual Report for the year ended 30 September 2022
Financial review
The charity's financial position at the end of the year ended 30 September 2022
The financial position of the charity at 30 September 2022 and comparatives for the prior period, as more fully detailed in the accounts, can be summarised as follows:-
| Total Funds Unrestricted Revenue Funds available for the general purposes of the charity Net expenditure |
2022 £ (6,062) 4,522 4,522 |
2021 £ 799 |
|---|---|---|
| 10,584 | ||
| 10,584 |
Financial review of the position at the reporting date, 30 September 2022 .
The trustees consider the financial performance by the charity during the year to have been satisfactory.
There have been no changes in fixed assets during the year
Where there are any specific changes in fixed assets these are detailed in the notes to the accounts.
Policies on reserves.
It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six months' expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity's current activities while consideration is given to ways in which additional funds may be raised.
Availability and adequacy of assets of each of the funds
The board of trustees is satisfied that the charity's assets in each fund are available and adequate to fulfil its obligations in respect of each fund.
5
ID: 1f2140df-30ad-483a-b63e-89f7617c1651
Living Word (Hailsham)
Company Registration Number - 04234528
Trustees' Annual Report for the year ended 30 September 2022
Details of The Independent Examiner
A J Mills
Member of Certified Practising Accountant - ICPA member
MDM Accounting Ltd Philips House Drury Lane St Leonards on Sea TN38 9BA
Statement of the Directors Trustees' Responsibilities
The charity's trustees are responsible for the preparation of the accounts in accordance with the terms of the Companies Act 2006, the Charities Act 2011 and the Charities (Accounts and Reports) Regulations 2008. Notwithstanding the explicit requirement in the extant statutory regulations,the Charities (Accounts and Reports) Regulations 2008, to prepare the financial statements in accordance with the SORP 2005, in view of the fact that the SORP 2005 has been withdrawn, the Trustees determined to interpret this responsibility as requiring them to follow current best practice and prepare the accounts according to the FRS 102 SORP (Statement of Recommended Practice for Accounting and Reporting by Charities) 2015, (as amended by the Bulletin issued in October 2018 and applicable to all accounting periods beginning on or after 1st January 2019), (The SORP), .
In particular, the Companies Act 2006 and charity law require the Board of Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity as at the end of the financial year and of the surplus or deficit of the charity. In preparing those financial statements the Board is required to :-
-
to prepare the accounts in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law).
-
select suitable accounting policies and apply them consistently;
-
make judgements and estimates that are reasonable and prudent;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business;
-
state whether applicable accounting standards and statements of
-
recommended practice have been followed, subject to any material
-
departures disclosed and explained in the financial statements;
The law requires that the trustees must not approve the accounts unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of the surplus or deficit of the charity for the year.
6
ID: 1f2140df-30ad-483a-b63e-89f7617c1651
Living Word (Hailsham)
Company Registration Number - 04234528
Trustees' Annual Report for the year ended 30 September 2022
The Trustees are also responsible for maintaining adequate accounting records which disclose with reasonable accuracy at any time the financial position of the charity and which are sufficient to show and explain the charity's transactions and enable them to ensure that the financial statements comply with the Companies Act 2006 and comply with regulations made under the Charities Act. They 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 also responsible for the contents of the Trustees' report, and the statutory responsibility of the Independent Examiner in relation to the Trustees' report is limited to examining the report and ensuring that , on the face of the report, there are no material inconsistencies with the figures disclosed in the financial statements.
Method of preparation of accounts - Small company provisions
The financial statements are set out on pages 10 to 24. The financial statements have been prepared implementing the FRS 102 SORP (Statement of Recommended Practice for Accounting and Reporting by Charities) 2015, (as amended by the Bulletin issued in October 2018 and applicable to all accounting periods beginning on or after 1st January 2019), (The SORP), and in accordance with the Financial Reporting Standard 102, (effective 1st January 2016)
These financial statements have been prepared in accordance with the provisions in Part 15 of the Companies Act 2006. applicable to companies subject to the small companies regime.
18-06-2023
This report was approved by the board of trustees on ….......................
R W OLESEN Director and Trustee
7
ID: 1f2140df-30ad-483a-b63e-89f7617c1651
Living Word (Hailsham)
Report of the Independent Examiner to the Trustees of the charitable company on the accounts for the year ended 30 September 2022
I report to the Trustees on my examination of the financial statements of the charitable company on pages 10 to 24 for the year ended 30 September 2022 which have been prepared in accordance with the Charities Act 2011 (the Act) and with the Financial Reporting Standard 102, (effective 1st January 2016) as modified by FRS 102 SORP (Statement of Recommended Practice for Accounting and Reporting by Charities) 2015, (as amended by the Bulletin issued in October 2018 and applicable to all accounting periods beginning on or after 1st January 2019), (The SORP), published by the Charity Commission in England & Wales (CCEW) , and under the historical cost convention and the accounting policies set out on page 15.
Respective responsibilities of the Trustees and the Independent Examiner and the basis of the report
As described on page 6, you, the charitable company's Trustees, who are also the Directors of the Company for the purposes of Company law, are responsible for the preparation of the financial statements in accordance with the Companies Act 2006, the Charities Act 2011 and all other applicable law and with United Kingdom Generally Accepted Accounting Practice, applicable to smaller entities, and for being satisfied that the financial statements give a true and fair view.
The Trustees consider that the audit requirement of Section 144(1) of the Charities Act 2011 (the Act) does not apply, and that there is no requirement in the memorandum and articles of the charity for the conducting of an audit, and that the accounts do not require an audit in accordance with Part 16 of the Companies Act 2006 and that no member or members have requested an audit pursuant to Section 476 of the Companies Act 2006. As a consequence, the Trustees have elected that the financial statements be subject to independent examination.
Having satisfied myself that the financial statements are not required to be audited under any legal provision, or otherwise, and are eligible for independent examination, it is my responsibility to:-
a) examine the financial statements of the charity under Section 145 of the Act;
b) follow the applicable procedures in the Directions given by the Charity Commission under section 145(5)(b) of the Act.
Basis of Independent Examiner's Statement and scope of work undertaken
I report in respect of my examination of the charity's financial statements carried out under s145 of the 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 Act setting out the duties of an independent examiner in relation to the conducting of an independent examination. An independent examination includes a review of the accounting records kept by the charitable company and of the accounting systems employed by the charitable company and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeking explanations from you, as Trustees, concerning such matters. The purpose of the examination is to establish as far as possible that there have been no breaches of charity legislation and that, on a test basis of evidence relevant to the amounts and disclosures made, the financial statements comply with the SORP.
The procedures undertaken do not provide all the evidence that would be required in an audit, and information supplied by the Trustees in the course of the examination is not subjected to audit tests or enquiries and does not cover all the matters that an auditor would consider in arriving at an opinion. The planning and conduct of an audit goes beyond the limited assurance that an independent examination can provide
8
ID: 1f2140df-30ad-483a-b63e-89f7617c1651
Living Word (Hailsham)
Consequently, I do not express an audit opinion on the view given by the financial statements, and in particular, I express no opinion as to whether the financial statements give a true and fair view of the affairs of the charity, and my report is limited to the matters set out in the statement below.
I planned and performed my examination so as to satisfy myself that the objectives of the independent examination are achieved and before finalising the report I obtained written assurances from the Trustees of all material matters.
Independent Examiner's Statement, Report and Opinion
Subject to the limitations upon the scope of my work as detailed above, I have completed my examination: and can confirm that:-
The accounts of this charitable company are not required to be audited under Part 16 of the Companies Act 2006;
This is a report in respect of an examination carried out under 145 of the Act and in accordance with Directions given by the Charity Commission under section 145(5)(b) of the Act which may be applicable;
and 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 charity as required by Section 386 of the Companies Act 2006 and Section 130 of The Charities Act 2011;
the financial statements do not accord with those records; or
the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in section 396 of the Companies Act 2006 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;
have not been prepared in accordance with the methods and principles set out in the FRS 102 SORP (Statement of Recommended Practice for Accounting and Reporting by Charities) 2015, (as amended by the Bulletin issued in October 2018 and applicable to all accounting periods beginning on or after 1st January 2019), (The SORP).
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.
Signed:-
A J Mills - Independent Examiner
Certified Practising Accountant - ICPA member
MDM Accounting Ltd Philips House Drury Lane St Leonards on Sea TN38 9BA
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This report was signed on …......................
9
ID: 1f2140df-30ad-483a-b63e-89f7617c1651
Living Word (Hailsham) - Statement of Financial Activities for the year ended 30 September 2022
Statement of Financial Activities (including the Income and Expenditure Account for the year ended 30 September 2022, as required by the Companies Act 2006)
| Current year Unrestricted Funds 2022 £ Income & Endowments from: Donations & Legacies A1 31,985 Expenditure on: Charitable activities B2 38,047 Total expenditure B 38,047 Net income for the year (6,062) Net income after transfers A-B-C (6,062) (6,062) Reconciliation of funds:- E Total funds brought forward 10,584 Total funds carried forward 4,522 Net movement in funds SORP Ref |
Current year Restricted Funds 2022 £ - - - - - - - - |
Current year Total Funds 2022 £ 31,985 38,047 38,047 (6,062) (6,062) (6,062) 10,584 4,522 |
Prior Year Total Funds 2021 £ 35,792 34,993 |
|---|---|---|---|
| 34,993 | |||
| 799 | |||
| 799 | |||
| 799 9,785 |
|||
| 10,584 |
The 'SORP Ref' indicated above is the classification of income set out in the formal SORP documents. As required by paragraph 4.60 of the SORP, the brought forward and carried forward funds above have been agreed to the Balance Sheet.
A separate Statement of Total Recognised Gains and Losses is not required as this statement includes all recognised gains and losses.
All the prior year transactions were unrestricted items, and no further analysis is required
All activities derive from continuing operations
The notes attached on pages 15 to 24 form an integral part of these accounts.
10
ID: 1f2140df-30ad-483a-b63e-89f7617c1651
Living Word (Hailsham) - Statement of Financial Activities for the year ended 30 September 2022
Living Word (Hailsham) - Resources applied in the year ended 30 September 2022 towards fixed assets for Charity use:-
| fixed assets for Charity use:- | ||
|---|---|---|
| Funds generated in the year as detailed in the SOFA Net resources available to fund charitable activities |
2022 £ (6,062) (6,062) |
2021 £ 799 |
| 799 |
The resources applied on fixed assets for charity use represents the cost of additions less proceeds of any disposals.
Movements in revenue and capital funds for the year ended 30 September 2022
Revenue accumulated funds
| Unrestricted Funds 2022 £ Accumulated funds brought forward 10,584 (6,062) 4,522 Closing revenue funds 4,522 Summary of funds Unrestricted and Designated funds 2022 £ Revenue accumulated funds 4,522 Recognised gains and losses before transfers |
Restricted Funds 2022 £ - - - - Restricted Funds 2022 £ - |
Total Funds 2022 £ 10,584 (6,062) 4,522 4,522 Total Funds 2022 £ 4,522 |
Last year Total Funds 2021 £ 9,785 799 |
|---|---|---|---|
| 10,584 | |||
| 10,584 | |||
| Last Year Total Funds 2021 £ 10,584 |
The notes attached on pages 15 to 24 form an integral part of these accounts.
11
ID: 1f2140df-30ad-483a-b63e-89f7617c1651
Living Word (Hailsham) - Statement of Financial Activities for the year ended 30 September 2022
Living Word (Hailsham)
Income and Expenditure Account for the year ended 30 September 2022 as required by the Companies Act 2006
| Income Income from operations Gross income in the year before exceptional items Gross income in the year including exceptional items Expenditure Charitable expenditure, excluding depreciation and amortisation Depreciation and amortisation Governance costs Realised losses on disposals of social investments which are programme related Total expenditure in the year Tax on surplus on ordinary activities Retained surplus for the financial year Net income after tax in the financial year Net income before tax in the financial year Investment income |
2022 £ 31,985 31,985 31,985 37,494 153 400 - 38,047 (6,062) - (6,062) (6,062) |
2021 £ 35,792 |
|---|---|---|
| 35,792 | ||
| 35,792 | ||
| 34,242 191 560 - |
||
| 34,993 | ||
| 799 - |
||
| 799 | ||
| 799 |
All activities derive from continuing operations
In accordance with the provisions of the Companies Act 2006, the headings and subheadings used in the Income and Expenditure account have been adapted to reflect the special nature of the charity's activities.
The notes attached on pages 15 to 24 form an integral part of these accounts.
12
ID: 1f2140df-30ad-483a-b63e-89f7617c1651
Living Word (Hailsham) - Balance Sheet as at 30 September 2022
| SORP | ||||||
|---|---|---|---|---|---|---|
| Note | Ref | 2022 | 2021 | |||
| £ | £ | |||||
| Fixed assets | A | |||||
| Tangible assets | 7 | A2 | 609 | 762 | ||
| Current assets | B | |||||
| Debtors | 8 | B2 | 637 | 1,461 | ||
| Cash at bank and in hand | B4 | 3,787 | 8,932 | |||
| Total current assets | 4,424 | 10,393 | ||||
| Creditors: amounts falling due within | ||||||
| one year | 9 | C1 | (511) | (571) | ||
| Net current assets | 3,913 | 9,822 | ||||
| The total net assets of the charity | 4,522 | 10,584 | ||||
| The total net assets of the charity are | funded | by the funds of the | charity, as follows:- | |||
| Restricted funds | ||||||
| - | - | |||||
| Unrestricted Funds | ||||||
| Unrestricted Revenue Funds | 13 | D3 | 4,522 | 10,584 | ||
| 4,522 | 10,584 | |||||
| Designated Funds | ||||||
| Total charity funds | 4,522 | 10,584 |
The 'SORP Ref' indicated above is the classification of Balance Sheet items as set out in the formal SORP documents. As required by paragraph 4.60 of the SORP, the brought forward and carried forward funds above have been agreed to the SOFA..
The directors are satisfied that the company is entitled to exemption from the requirement to obtain an audit under section 477 of the Companies Act 2006.
The members have not required the company to obtain an audit in accordance with section 476 of the Act.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.
The charity is subject to Independent Examination under charity legislation, and the report of the Independent Examiner is on page 9.
13
ID: 1f2140df-30ad-483a-b63e-89f7617c1651
Living Word (Hailsham) - Balance Sheet as at 30 September 2022
The financial statements have been prepared in accordance with the provisions in Part 15 of the Companies Act 2006. applicable to companies subject to the small companies regime.
R W OLESEN Trustee 18-06-2023 Approved by the board of trustees on …......................
The notes attached on pages 15 to 24 form an integral part of these accounts.
14
ID: 1f2140df-30ad-483a-b63e-89f7617c1651
Living Word (Hailsham)
Notes to the Accounts for the year ended 30 September 2022
1 Accounting policies
Policies relating to the production of the accounts.
Basis of preparation and accounting convention
The accounts have been prepared on the accruals basis, under the historical cost convention, and in accordance with the Financial Reporting Standard 102, (effective 1st January 2016) and 'FRS 102 SORP (Statement of Recommended Practice for Accounting and Reporting by Charities) 2015, (as amended by the Bulletin issued in October 2018 and applicable to all accounting periods beginning on or after 1st January 2019), (The SORP), published by the Charity Commission in England & Wales (CCEW) , effective January 2016, , and in accordance with all applicable law in the charity's jurisdiction of registration, except that the charity has prepared the financial statements in accordance with the FRS 102 SORP (Statement of Recommended Practice for Accounting and Reporting by Charities) 2015, (as amended by the Bulletin issued in October 2018 and applicable to all accounting periods beginning on or after 1st January 2019), (The SORP), in preference to the previous SORP, the SORP 2005, which has been withdrawn, notwithstanding the fact that the extant statutory regulations, the Charities (Accounts and Reports) Regulations 2008 refer explicitly to the SORP 2005. This has been done to accord with current best practice.
Measurement and estimation - where relevant, the particular bases and policies are set out below.
Going Concern
The charitable activities are entirely dependent on continuing voluntary donations as well as trading revenues. As a consequence, the going concern basis is dependent on the future flow of these uncertain funding streams. Accordingly, after reviewing the financial data and forecasts for future periods, the Trustees are satisfied that, at the time of approving the financial statements, it is appropriate to adopt the going concern basis in preparing the financial statements. Other than these matters, the Trustees are not aware of any material uncertainites about the charity's ability to continue as a going concern.
Risks and future assumptions
The charity is a public benefit entity.
The Trustees are satisfied as to the validity of the assumptions, judgements and estimations that management has made in the process of applying the entity’s accounting policies that have the most significant effect on the amounts recognised in the accounts. They are also satisfied at the reporting date as to the key assumptions concerning the future.
Income from legacies
Income from legacies is recognised when the charity has sufficient evidence that a gift has been left to them, that where required, probate has been granted, the executor is satisfied that the property in question will not be required to satisfy claims in the estate, that it is probable that the amount will be received by the charity, and the amount to be received can be estimated with sufficient accuracy, and that any conditions attached to the legacy are either within the control of the charity or have been met.
Where a payment is received from an estate or is notified as receivable by the executors after the reporting date and before the accounts are authorised for issue but it is clear that the payment had been agreed by the executors prior to the end of the reporting period, then the amount concerned is treated as an adjusting event and accrued as income in the accounting period if receipt is probable.
15
ID: 1f2140df-30ad-483a-b63e-89f7617c1651
Living Word (Hailsham)
Notes to the Accounts for the year ended 30 September 2022
Where the charity has established entitlement to a legacy but there is uncertainty as to the amount of the payment, details of the legacy aredisclosed as a contingent asset until the criteria for income recognition are met. Where a legacy is subject to the interest of a life tenant, the legacy is not recognised as income until the death of the life tenant.
If it is doubtful that full settlement of a legacy debtor will be received, then an adjustment is made to reduce the amount of the legacy debtor and legacy income rather than charging the adjustment as expenditure in the Statement of Financial Activities
Membership subscriptions
The income and any associated Gift Aid or other tax refund from a membership subscription received by the charity in the nature of a gift, is accounted for on the same basis as a donation.
The income from a membership subscription received by the charity where the subscription purchases the right to services or benefits is recognised as income from charitable activities.
Policies relating to expenditure on goods and services provided to the charity.
Volunteers
In accordance with the SORP, and in recognition of the difficulties in placing a monetary value on the contribution from volunteers, the contribution of volunteers is not included within the income of the charity. However, the trustees value the significant contribution made to the activities of the charity by unpaid volunteers.
Policies relating to assets, liabilities and provisions and other matters.
Tangible fixed assets
Tangible fixed assets are measured at their original cost value, or subsequent revaluation, or if donated, as described above. Cost value includes all costs expended in bringing the asset into its intended working condition.
Depreciation has been provided at the following rates in order to write off the assets to their anticipated residual value over their estimated useful lives.
Plant and machinery
20 % on reducing balance
A regular annual review of the likelihood of asset impairment is undertaken.
Debtors
Debtors are measured at their recoverable amounts at the balance sheet date.
Creditors and provisions
Creditors and provisions for liabilities and charges are recognised and measured on the accruals basis and in accordance with normal accounting principles, modified where necessary in accordance with the guidance given in the Statement of Recommended Practice for Accounting and Reporting issued by the Charity Commissioners for England & Wales.
16
ID: 1f2140df-30ad-483a-b63e-89f7617c1651
Living Word (Hailsham)
Notes to the Accounts for the year ended 30 September 2022 Cash and bank balances
Cash held by the charity is included at the amount actually held and counted at the year end. Bank balances, whether in credit or overdrawn, are shown at the amounts properly reconciled to the bank statements.
Fund Accounting
Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity.
Designated funds are unrestricted funds earmarked by the Trustees for particular purposes. There are currently no funds of this type.
Restricted funds are subjected to restrictions on their expenditure imposed by the donor or through the terms of an appeal or as implied by law. There are currently no funds of this type.
There are no endowment funds.
2 Liability to taxation
The Trustees consider that the charity satisfies the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 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 on the specific charitable objects of the charity and for no other purpose. Value Added Tax is not recoverable by the charity, and is therefore included in the relevant costs in the Statement of Financial Activities.
3 Winding up or dissolution of the charity
If upon winding up or dissolution of the charity there remain any assets, after the satisfaction of all debts and liabilities, the assets represented by the accumulated fund shall be transferred to some other charitable body or bodies having similar objects to the charity.
4 Significance of financial instruments to the charity's position
The charity does not hold any financial instruments (investments, etc) and so there are no significant implications of such matters to disclose which might affect the charity's financial position or performance.
5 Net surplus before tax in the financial year
| The net surplus before tax in the financial year is stated after charging:- Depreciation of owned fixed assets |
2022 £ 153 |
2021 £ 191 |
|---|---|---|
6 Remuneration and payments to Trustees and persons connected with them
No trustees or persons connected with them received any remuneration from the charity, or any related entity.
17
ID: 1f2140df-30ad-483a-b63e-89f7617c1651
Living Word (Hailsham)
Notes to the Accounts for the year ended 30 September 2022
7 Tangible fixed assets
| Current Year Cost At 1 October 2021 At 30 September 2022 Depreciation At 1 October 2021 Charge for the year At 30 September 2022 Net book value At 30 September 2022 At 30 September 2021 Prior Year Cost 01 October 2020 30 September 2021 Depreciation 01 October 2020 Charge for the year 30 September 2021 Net book value 30 September 2021 30 September 2020 |
Land and Buildings £ - |
Plant & Machinery £ 8,387 |
Motor Vehicles £ - |
Total £ 8,387 |
|---|---|---|---|---|
| - | 8,387 | - | 8,387 | |
| - - |
7,625 153 |
- - |
7,625 153 |
|
| - | 7,778 | - | 7,778 | |
| - | 609 | - | 609 | |
| - | 762 | - | 762 | |
| Land and Buildings £ - |
Plant & Machinery £ 8,387 |
Motor Vehicles £ - |
Total £ 8,387 |
|
| - | 8,387 | - | 8,387 | |
| - - |
7,434 191 |
- - |
7,434 191 |
|
| - | 7,625 | - | 7,625 | |
| - | 762 | - | 762 | |
| - | 953 | - | 953 |
All assets are used for direct charitable purposes.
8 Debtors
Other debtors
| 2022 | 2021 |
|---|---|
| £ | £ |
| 637 | 1,461 |
18
ID: 1f2140df-30ad-483a-b63e-89f7617c1651
Living Word (Hailsham)
Notes to the Accounts for the year ended 30 September 2022
| 9 Creditors: amounts falling due within one year Accruals 10 Income and Expenditure account summary At 1 October 2021 Surplus after tax for the year At 30 September 2022 |
2022 £ 511 2022 £ 10,584 (6,062) |
2021 £ 571 2021 £ 9,785 799 |
|---|---|---|
| 4,522 | 10,584 |
11 No related party transactions
There were no transactions with related parties in the year.
12 Particulars of how particular funds are represented by assets and liabilities
| At 30 September 2022 Tangible Fixed Assets Current Assets Current Liabilities At 1 October 2021 Tangible Fixed Assets Current Assets Current Liabilities |
Unrestricted funds £ 609 4,424 (511) |
Designated funds £ - - |
Restricted funds £ - - - |
Total Funds £ 609 4,424 (511) |
|---|---|---|---|---|
| 4,522 | - | - | 4,522 | |
| Unrestricted funds £ 762 10,393 (571) |
Designated funds £ - - - |
Restricted funds £ - - - |
Total Funds £ 762 10,393 (571) |
|
| 10,584 | - | - | 10,584 |
13 Change in total funds over the year as shown in Note 12 , analysed by individual funds
| Unrestricted and designated funds:- Unrestricted Revenue Funds Total unrestricted and designated funds Total charity funds |
Funds brought forward from 2021 £ 10,584 |
Movement in funds in 2022 See Note 14 £ (6,062) |
£ - Transfers between funds in 2022 |
Funds carried forward to 2023 £ 4,522 |
|---|---|---|---|---|
| 10,584 | (6,062) | - | 4,522 | |
| 10,584 | (6,062) | - | 4,522 |
19
ID: 1f2140df-30ad-483a-b63e-89f7617c1651
Living Word (Hailsham)
Notes to the Accounts for the year ended 30 September 2022
14 Analysis of movements in funds over the year as shown in Note 13
| Unrestricted and designated funds:- Unrestricted Revenue Funds |
Income 2022 £ 31,985 |
Expenditure 2022 £ (38,047) |
Other Gains & Losses 2022 £ - |
Movement in funds 2022 £ (6,062) |
|---|---|---|---|---|
| 31,985 | (38,047) | - | (6,062) |
15 The purposes for which the funds
Unrestricted and designated funds:-
Unrestricted Revenue Funds
These funds are held for the meeting the objectives of the charity, and to provide reserves for future activities, and , subject to charity legislation, are free from all restrictions on their use.
Restricted funds:-
16 Ultimate controlling party
The charity is under the control of its legal members.
Every member of the charity is obliged to contribute such amount as may be required not exceeding £10 to the assets of the company in the event of its being wound up while he or she is a member, or within one year after he or she ceases to be a member.
20
ID: 1f2140df-30ad-483a-b63e-89f7617c1651
Living Word (Hailsham)
Detailed analysis of income and expenditure for the year ended 30 September 2022 as required by the SORP 2015
This analysis is classsified by conventional nominal descriptions and not by activity.
17 Donations, Grants and Legacies
| Donations and gifts from individuals Total Donations, Grants and Legacies Total Donations, Grants and Legacies A1 Tax refunds (Gift Aid) Foodbank income Kenya income General income Total donations and gifts from individuals |
Current year Unrestricted Funds 2022 £ 300 8,773 20,780 2,132 |
Current year Restricted Funds 2022 £ - - - - - |
Current year Total Funds 2022 £ 300 8,773 20,780 2,132 31,985 |
Prior Year Total Funds 2021 £ 600 5,153 27,012 3,027 |
|---|---|---|---|---|
| 31,985 | 35,792 | |||
| 31,985 | - | 31,985 | 35,792 |
18 Expenditure on charitable activities - Direct spending
| Current Year Total direct spending B2a Catering General expenses - Youth Club Worshiping materials |
Current year Unrestricted Funds 2022 £ 577 198 653 |
Current year Restricted Funds 2022 £ - - - - |
Current year Total Funds 2022 £ 577 198 653 1,428 |
Prior Year Total Funds 2021 £ 88 - 141 |
|---|---|---|---|---|
| 1,428 | 229 |
21
ID: 1f2140df-30ad-483a-b63e-89f7617c1651
Living Word (Hailsham)
Detailed analysis of income and expenditure for the year ended 30 September 2022 as required by the SORP 2015
19 Expenditure on charitable activities- Grant funding of activities
| Current Year Total grantmaking costs B2c Current Year Foodbank Breakdown of Grants made to organisations Prior Year Foodbank Grants made to organisations Kenya project payments and expenses Charitable donations Breakdown of Grants made to organisations Charitable donations Grants made to individuals |
Current year Unrestricted Funds 2022 £ 10,521 600 21,141 72 |
Current year Restricted Funds 2022 £ - - - - - Current year Restricted Funds 2022 £ - - - Prior Year Restricted Funds 2021 £ - - |
Current year Prior Year Total Funds Total Funds 2022 2021 £ £ 10,521 18,340 600 1,200 21,141 10,426 72 2,232 |
|---|---|---|---|
| 32,334 | 32,334 32,198 |
||
| Current year Unrestricted Funds 2022 £ 600 |
Current year Total Funds 2022 £ 600 600 2,232 Prior Year Total Funds 2021 £ 1,200 1,200 |
||
| 600 | |||
| 2,232 Prior Year Unrestricted Funds 2021 £ 1,200 |
|||
| 1,200 |
22
ID: 1f2140df-30ad-483a-b63e-89f7617c1651
Living Word (Hailsham)
Detailed analysis of income and expenditure for the year ended 30 September 2022 as required by the SORP 2015
20 Support costs for charitable activities
| 20 Support costs for charitable activities |
||
|---|---|---|
| Current year Current year Current Year Unrestricted Funds Restricted Funds 2022 2022 £ £ Employee costs not included in direct costs 74 - Premises Expenses 2,246 - Administrative overheads 129 - 120 - 268 - 841 - 54 - Financial costs 153 - Total support costs - Current Year 3,885 - The basis of allocation of costs between activities is described under accounting policies All the expenditure in the prior year was unrestricted. Administrative overheads General administration expenses Sundry expenses Depreciation & Amortisation in total for Room Hire Liabilty and contents insurance Membership subscriptions Software licences and expenses Training and welfare - staff |
Current year Total Funds 2022 £ 74 2,246 129 120 268 841 54 153 3,885 |
Prior Year Total Funds 2021 £ - 70 365 110 266 969 35 191 |
| 2,006 | ||
| - - - |
The basis of allocation of costs between activities is described under accounting policies
21 Other Expenditure - Governance costs
| Current Year Independent Examiner's fees Total Governance costs |
Current year Unrestricted Funds 2022 £ 400 |
Current year Restricted Funds 2022 £ - - |
Current year Total Funds 2022 £ 400 400 |
Prior Year Total Funds 2021 £ 560 |
|---|---|---|---|---|
| 400 | 560 |
All the expenditure in the prior year was unrestricted.
23
ID: 1f2140df-30ad-483a-b63e-89f7617c1651
Living Word (Hailsham)
Detailed analysis of income and expenditure for the year ended 30 September 2022 as required by the SORP 2015
| 22 Total Charitable expenditure Current Year Total direct spending B2a Total grantmaking costs B2c Total support costs B2d Total Governance costs B2e Total charitable expenditure B2 All the expenditure in the prior year was unrestricted. Prior Year Total direct spending B2a Total grantmaking costs B2c Total support costs B2d Total Governance costs B2e Total charitable expenditure B2 |
Current year Unrestricted Funds 2022 £ 1,428 32,334 3,885 400 |
Current year Restricted Funds 2022 £ - - - - - Prior Year Restricted Funds 2021 £ - - - - |
Current year Total Funds 2022 £ 1,428 32,334 3,885 400 38,047 Prior Year Total Funds 2021 £ 229 32,198 2,006 560 |
Prior Year Total Funds 2021 £ 229 32,198 2,006 560 |
|---|---|---|---|---|
| 38,047 | 34,993 | |||
| Prior Year Unrestricted Funds 2021 £ 229 32,198 2,006 560 |
||||
| 34,993 | - | 34,993 | ||
24