Registered number: 04276341 Charity numb&r'. 1090787 FESTIVAL OF LIFE IA Company Limited by Guarantee) TRUSTEES, REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 FESTIVAL OF LIFE IA Company Llmltgd by Guaran￿) CONTENTS Page Reference and Administrative Details Trust¢es' Rèport Indopondont Auditors, Rgport Statsmènt of Flnan¢lal A¢tlvbtl•8 10 Balance Sh88t Statement of Cash Flows 12 Not•8 to tho Financlal Statsments 13-26 FESTIVAL OF LIFE IA Company Llmltgd by Guaran￿) REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 DECEMBER 2021 Trustees and Key Management Personnel Kola Bamigbade, Trustee Agu Irukwu, Trustee Olusola Oludoyi, Trustee Wale Gibson-whrte, Operatsons Manager Company rogSster•d nUm￿r 04276341 Charlty r•gl#t•r•d numbtrr 1090787 Rggl$tsrgd officg 112 Brent Terrace, 8renl Cross, London, NW2 1LT Company Socretary Mr Samuel Sijuwade Chlèf èxecudvo offlcor Dr O Adeaga Independent audltors Blue Spire Limrted, c￿eY Priory. South Pallanl, Chichester, Wesl Sussex, P019 1SY BankeY¥ Barclays Bank PLC, 40 Wellin9ton Road, London, NW8 9TJ Page 1 FESTIVAL OF LIFE IA Company Llmltgd by Guaran￿) TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2021 The Trustees, who are also Directors for the purpose of Company Law, are pleased to present the annual report for the purposes of Secb'on 45 of the Charibes Act 1993 and Sections 415 to 419 of the Companies Act 2006, together wlh the accounts for the period ended 31st December 2021. The Trustees have adopted the provision5 of the Ststement of Recommended Practsce"Accounting and Reporting by Charits"es" issued In March 2005. in preparing the annual report and financial ststements of the Charity. STRUCTURE GOVERNANCE AND MANAGEMENT Festival of Life Ilhereafter referred lo as Organisatic￿ or charrtyl is a chantsble company limited by guarantee, incorporated on 24th August 2001 and registered as a Chanty on 26th Febru8ry 2002. 11 is governed by a Memorandum an¢J Arb¢le$ of Asso¢iation and is managed by a Board of Tru$lees. Decisions are determined by a simple majonty vote of the Trustees tho Set the $trategi¢ direction ol the Charty. Trustees are selected based on the contribulion they wll make to the governance ol the organisation and the skills that they bring lo the organisation. The Board of Trustees are provided wth copies of the Charity Commission's Guidance lo Trustees and are also provided training as and %then required. Delegated authority has been given to the Management Team for the day lo day running of the operations of the Charity. The Trustees have assessed the major risks to vthich the Charity is exposed, such as issues related to the specific operats'onal areas of the Charity and rts finances (including safeguardingl. The Trustees believe that by monitoring reserve levels, by ensuring controls exist over key financial systems and by examining the operational and business risks faced by the Chanty. Ihty have been able to establish effective systems lo miligale these risks. The remuneration of the charty's key management personnel is reviewed and set annually by the trustees. The following guiding principles are used in deterniining the appropriate level.. Transparency., Appropriateness and benchmarking against extemal comparators.. Expertise and experience., and Competitive recruitment and talent relenlion. OBJECTIVES ANO ACTIVITIES The main objective of the Charity is.. "The advancement of the Christian religion V•f•rfthM"de;" It pursues this purpose from its adminislralive office in Brent Terrace. Brent Cross. Northwest London, and the pillar of the organisats'on are the bi-annual, alknight Pentecostal-stye prayer, praise and worship services vthich indudes the preaching and teaching of the word of God. These meetings are aimed at reaching out to the un- churched. In determining how best lo pursue these objectives the Trustees have had lo ￿fer lo the Charity Commission's guidance on putrAic benefits. The charity'5 core objectives for the year are the followng.. The chanty marked its twenty-fifth-year anniversary this year and cornmemoraled il with a project called 'Proje¢l 25125. where il gave donabons of food and Ciothing rtems lo 11 homeless charth'es and financial gifts lo other charities totslling £3.397. The Charity conducts several al￿nIght prayer events annually in London land in other UK regional location51 which continues to attract thousands of attendees. The FOL (Festival of Lrfel events {the main FOL event scheduled for Friday. 22nd October 2021 and the youth evange115m event IFLAMEI for Friday, 24th December 20211 respectively look place. Page 2 FESTIVAL OF LIFE IA Company Llmltgd by Guaran￿) TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2021 The charity also organised 'Nights of Prayers" one in April and the other in November 2021. This was an opportunity to gather partners and non-partners to pray for their needs, the nation and thank God for all the past events and all Festival of Life has achieved in 25 years as well as pray for the fvtuie. The charity made considerable financial contributions to the followng charibes. Compassion UK Hope UK Eternal Wall Part of the CSR initiative for 2021 was to make Bible and Christian books 8v8ilable to inmates in Prison. Raised funds via 'Good to give. for 2 projects in Nigeria {revamp classroom and Habilats'on of Hope, by donating educational materials). For the charty lo be more GDPR Compliant. it migrated it5 computer system5 from an old system lo a new one (Access lo IKnow Church (Chronikall by moving some partners. personal and financial details. The project is still ongoing. Strengthening and expanding the reach and impact of its charitable acts'vities, by helping the underprivileged and disadvantaged localty and intemats'onally during a second year of a global pandemic. The organisalion's CSR (Community Social Responsibility) footprints btslh nationally and inlernalionally Is recognised. Also increase Ils spheres of influence in Education. Health antj Social inrtialives. Promote healthy Irfe$￿eS and en¢ourage v￿l￿being for our partners. STRATEGIES The Charity's strategies for achieving these objectives were= Expanding the administrative structure to enabbe adequate support for the Festival of Life events. Identifying and Invrting influential and relevant Speakers from varityjs Christian denominations in a bid lo wden the audience attendance al the prayer events. Advertising the Festival of Lrfe V￿delY to encourage Christian businesses to put up exhibitions at the prayer events. Identifying potential Strategic partnerships to help the disadvantsged and underprivileged. Significant acliwties that contribuled lo the achievement of these objecb'ves we￿. Financial contribLrtions to support.. Compassion UK a leading children's charrty wth relen￿eSS passion lo empower every child left vulnerable by poverty. Festival of Lrfe sponsored Compassion children al an annual Cost of £16,240 in 2021. HOPE UK - a national charity that enables children and young people throughout the United Kingdom to develop the kno%￿edge and skills they need to make dru*free choices. They do this through direct delivery of programmes lo children and young people, as well as training those are responsible for them. Festival of Life donated £2,500 toward5 resources to highlight key mission opportunibe5 and encourage churches lo partner them. Page 3 FESTIVAL OF LIFE IA Company Llmltgd by Guaran￿) TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2021 ACHIEVEMENTS AND PERFORMANCE FOR THE PUBLIC BENEFIT The Charity organises various events lo promote rts objectsves. The organisalion stsrted a Sch¢)ol Adopb'on Programme {SAPI in 2019, which is an offshoot of the Inspiring Future Generations IIFGI programme. The first school to be adopted is IBA Estate Primary school Ojo local government area in Lagos State Nigeria. The 1st phase of the project was completed in 2020 whilst the 2nd phase started In 2021. HEALTH MEDICAL CENTRE. MALAWI - This is a health inrtiative the charity dec+ded lo embark on in 2017 by building a Heatth Medical Centre in Malaw. The ￿nStrUCtion of the Health Medical Centre ¢ommen¢ed in December 2019 and 1$ still ongoing. In 2020, phase one tsthich 1$ the "Outpatsenl Department. IOPDI wing of the Chalendewa village health and maternity centre in Malawi was completed. RISK MANAGEMENT The Trustees have Conducted a review of the major risks ￿1¢h the Charity is exposed lo. A risk register has been established ￿lch identif1es the major risks by area of activity. the nature of those risks, the likelihood of the risks happening, and the measure taken to manage them. The Trustees review the risk reglster regularly at their meeting5 and are satisfied that Systems are In place to manage the risks that have been identified. Insurance Cover is in place and the finances of the Chanty are kept under review. Where 3ppropriale. systems have been established lo mrtl9ate the risks the Charity faces. Significant external risks lo funding have led lo the tjevelopmenl of a strategic plan which ￿11 all¢)w for Ihe diversffi¢alion of funding and acliwties. Internal control risks are minimised by the implementatson ol procedures for authorisation of all transactions and projects. Procedures are in place to ensure compliance health and safety of members of staff, volunteers, clients and visitor5 to the Charity. FINANCIAL REVIEW The Charity's principal funding source contsnues to be donations from the individuals who attend the prayer event and RCCG (Redeemed Christsan Church of Godl parishes wiihin the United Kingdom. Al the balance sheet dale the tharity had free reserves, being unre51ricted funds not represented by fixed assets, amounting lo £1.838.768. The Iruslees believe the charrty should hold free reserves equivalent lo 8 months of normal expenditure sthich equates lo £600.000. FuN￿RAIsING STANDARDS INFORMATION The charity does not raise funds from the general public. nor does rt engage any third parties lo do s¢ on ils behalf. As such the charity does not subscribe to any voluntsry schemes or standards in ￿lation to fundraising. PLANS FOR FUTURE PERIODS The Chanty continues to explore ways of Promoting ils objectives by raising ils profile and engaging Christian leaders acr055 different denominations to facilitsle rt5 aim. The Charty aims lo continue lo work hard to effect change in the moral and spirrtual climate of the Unrteil Kingdom and the city of London in pa￿'cular. DIRECTORS, RESPONSIBILITIES The Trustee5 Iwho are also Directors for the puTposes of Company Lawl are responsible for preparing the Trustees, Report and the Financial Slalements in accordance wth applicable law and United Kingdom Ac¢ounts'ng Standards IUnf(ed Kingdom Generally Accepted Accounting Pra¢ti¢el. Page 4 FESTIVAL OF LIFE IA Company Llmltgd by Guarantso) TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2021 Company law requires the directors to prepare financial statements for each financial year which wll give a true and fair view of the state of the affairs of the company and of the profft or loss of the company for that period. In preparing those financial statements, the directors ale required to.. select suitable accounting policies and then apply them ¢onsistentty make jLJdgements and estimates that ace reasonable and prudent prepare the financial statements on its actiwties ¢)n a regular basi$ unle$s rt 1$ inappropriate lo presume that the company wll continue in business state whether applicable UK Accounting Standards have been followed, subject to any material departures di￿10$ed and explained in the financial statements. The Trustee$ have adopted the updaled provisions of Ihe Statement of Recommended Pra¢ti¢e ISORPI "Accounting and Reporting by Charitses" IFRS 1021, in preparing the annual report and financial stslements of the Charity. The Trustees are responsible for keeping proper accounting records vrtlich disclose wth reasonable a¢cura¢y al any lime of the financial posrtion of the company and lo enable them ensure that the financial slalemenls comply wlh the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the preventson and detecbon of fraud and other irregularth'es. In yo lar as the Trusteeg arè aware.. there is no relevant audrt information of vknich the company's auditors are unaware". and the Trustees have taken all steps that they ought lo have. lo make themselves aware of any relevant audit information and to establish that the auditors are aware of that inforn)ation. Thi5 report has been prepared hawng taken advantage of the Small companie5 exemption in the Companie5 Act 2006. APPOINTMENT OF AUDITORS A resolution proposing Blue Spire Limrted be reappointed wll be put forward al the next 8oard Meeting of the Charity. Approved by the Board and signed on its behaw. A Irukbyu Trustee 29 September 2022 Page S **FESTIVAL OF LIFE (A Company Limited by Guarantee)** ## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS AND TRUSTEES OF FESTIVAL OF LIFE** ## **Opinion** We have audited the financial statements of Festival of Life for the year ended 31 December 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 _The Financial Reporting Standard applicable in the UK and Republic of Ireland_ (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: - give a true and fair view of the state of the 31 December 2021, and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities Act 2011. ## **Basis for opinion** We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. ## **Conclusions relating to going concern** In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. Page 6 **FESTIVAL OF LIFE (A Company Limited by Guarantee)** ## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS AND TRUSTEES OF FESTIVAL OF LIFE** ## **Other information** The other information comprises the information included in the trustees report , other than the financial The trustees are responsible for the other information contained within the report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. ## **Opinions on other matters prescribed by the Companies Act 2006** In our opinion, based on the work undertaken in the course of the audit: - the information give the financial statements are prepared is consistent with the financial statements; and legal requirements. ## **Matters on which we are required to report by exception** In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified materia We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Act 2011 requires us to report to you if, in our opinion: - adequate and sufficient accounting records have not been kept by the charitable company, or returns adequate for our audit have not been received from branches not visited by us; or the c or - we have not received all the information and explanations we require for our audit; or - requirement to prepare a strategic report. Page 7 **FESTIVAL OF LIFE (A Company Limited by Guarantee)** ## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS AND TRUSTEES OF FESTIVAL OF LIFE** ## **Responsibilities of trustees** the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. ## **Auditor responsibilities for the audit of the financial statements** We have been appointed auditor under the Companies Act 2006 and section 144 of the Charities Act 2011 and report in accordance with those Acts. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material mis opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: - Enquiry of management, those charged with governance around actual and potential litigation and claims; - Enquiry of entity staff to identify any instances of non-compliance with laws and regulations; - Reviewing minutes of meetings of those charged with governance; - Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; - Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and revieing accounting estimates for bias. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. A further description of our responsibilities is available on the FRC's website at: https://www.frc.org.uk/auditors/audit-assurance/auditor-s-responsibilities-for-the-audit-of-the-fi/description-ofthe-auditor%E2%80%99s-responsibilities-for Page 8 **FESTIVAL OF LIFE (A Company Limited by Guarantee)** ## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS AND TRUSTEES OF FESTIVAL OF LIFE** ## **Use of our report** as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that them in To the fullest extent permitted by law, we do not accept ees as a body, for our audit work, for this report, or for the opinions we have formed Geoffrey Frost BSc(Hons) FCA (Senior Statutory Auditor) For and on behalf of Blue Spire Limited, Statutory Auditor Cawley Priory South Pallant Chichester West Sussex PO19 1SY Date Page 9 FESTIVAL OF LIFE IA Company Llmltgd by Guaran￿) STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 OECEMBER 2021 Unr•$trl¢t•d fund$ 2021 Totsl funds 2021 Total ftjnds 2020 Incomè and Endosyinents from: Donations and legacies Investments 933.887 933,887 884,937 Totsl Incomo 933.888 933,888 884,943 Exp•ndltur• on: Charitable aclivrtj'es 396.807 396,807 483,541 Total oxpondlturn 396.807 396,807 483,541 Net mov8m•nt Sn funds 537.081 537,081 401,402 Raconcllla￿on of funds: Totsl funds brought foMaTd Nel movement in funds 1.301.687 537.081 1.301,687 537,081 900,285 401,402 Total fund# ¢*rrlod forward 1.838.768 1.838,768 1,301,687 The Statement of Financial Ath'vities includes all gains and losses recognised in the year. The notes on pages 13 10 26 fom part of these financial ststemenls. Page 10 FESTIVAL OF LIFE IA Company Limited by Guarant••l REGISTERED NUMBER: 04276341 BALANCE SHEET AS AT 31 DECEMBER 2021 2021 2021 2020 2020 Noto 14 Tangible fixed assets Currnnt assets Debtor5 Cash al bank and in hand 14 576,714 1.282,566 569,916 747.909 Total currgnt assets 1,859,280 1,317,825 Credilory." amounts falling due within one year 15 120,S121 116,1381 Not current assots 1.838,768 1,301,687 Total a$$•t$1•88 current Ilabilltlès 1.838,768 1,301,687 Not ass•t8llllabllltl8sl 1,838,768 1,301,687 Total not a88Ot• 1.838,768 1,301,687 Charlty funds Unrestricted funds 17 1,838,768 1,301,687 Total fundy 1,838,768 1,301,687 The Truglees ackn￿edge their responsibilrties for ccthplying the requirements of the Act with respect lo accounting records and preparation of financial stslements. The financial statements have been prepared in accordance ¥￿th the provisions applicable to entities subject to the small companies regime. The fin8n¢i81 ytslements ￿Ere approved and aulhorised for issue by the Trustees and signed on their behalf by.. Agu Irukwu Director Date.. 29 September 2022 The notes on pages 13 to 26 fom part of these financial statements. Page 11 FESTIVAL OF LIFE IA Company Llmltgd by Guaran￿) STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 OECEMBER 2021 2021 2020 Cash IlovM from oparnting activities Nel cash used in operating actsvilies 537.081 401,402 Decreasellincreasel in debtors 16,7981 45,115 Increaselldeceasel in creditors 4,374 111,4301 Interest and Dividends 161 Cash flows from Inv•stlng a¢tlvltlo8 Dividends, interests and rents from inveslments Not cash provld•d by Inv•stlng actlvltl Chang• In ca$h and ca*h •qulval•nts In th• y••r Cash and cash equivalents al the beginning of the year $34.657 435.087 747,909 312,822 Cash and cash 8quivalonts at •nd of the year 1.282,566 747,909 The notes on pages 13 to 26 lorni part of these financial statements Page 12 FESTIVAL OF LIFE IA Company Llmltgd by Guaran￿) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OECEMBER 2021 G•n•ral Infomiatlon Fest'val of Life is an incorporated charty. limited by guarantee, incorporated in England with the company number 4276341. In the event of the charty being wound up, the liability in respect of the guarantee is limited lo £10 per member of the charity. The address of the registered office 15 given in the charity information page of these financial slalemenls. The nature of the charity's operations and principal activities are outlined in the trustees. ￿pOrt. The charity consbtutes a public benefft entty as deffined by FRS 102. The financial st*ement$ have been prepared in accordance wth Accounting and Reporting by Charities.. Statement of Recommended Practice applicable lo chathes preparing their accounts In accordance wth the Financial Reporting Standard applicable In the UK and Republic of Ireland Issued In October 2019. the Financial Reporting Standard applicable In the United Kingdom and Republic of Ireland IFRS 1021. the Charities Act 2011. the Companies Act 2006 and UK Generalty Accepted Accounting Prath'ce. The financial statements are prepared cffl a going ba$1$ under the historical cost convention, modified lo include certain rtem5 al lair value. The financial statements are presented in sterling vthich is the functional currency of the charity and rounded lo the nearest £. The significant accounting policies applied in the preparation of these financial statements are sel out below. These policies have been consistentty applied to all years presented unless othetwise stated. Accountlng pollcles 2.1 8asS8 of proparatlon of financlal stat•lllonts The financial statements have been p￿pared in accordance wlh the Chari(ies SORP IFRS 1021- Accounting and Reporb'ng by Chanb'es". Slalemenl of Recommended Pradice applicable lo charities preparing their a¢¢ounls in a¢¢or¢Jan¢e vith the Finan¢wl Repo￿ng Standard appli¢able in the UK and Republic of Ireland IFRS 1021 leffective 1 January 20191, the Financial Reporting Standard applicable in the UK arbd Republic of Ireland {FRS 1021 and the Companies Act 2006. Festival of Life meets the defIn￿"On of a publi¢ benefit entrty under FRS 102. Assets and liabilities are initially recognised al historical cost or transaction value unless olherwse slated in the relevant accounting policy. Page 13 FESTIVAL OF LIFE IA Company Llmltgd by Guaran￿) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OECEMBER 2021 ACCOUn￿ng poll¢l•$ {¢ontlnuod} 2.2 In¢ome All incoming ￿$0{IrCeS are included in the Stslement of FinancHI Activrties ISOFAI when the charity is legally ent'tled to the income after any performance conditions have been met. the amount can be measured reliably and it is probable that the income wll be received. For donations to be recognised the chanty wll have been nots.fied of the amounts and the settlement date in wrib'ng. If there are conditions attached lo the donation and this requires a level of performance before entillement can be obtained then income is deferred until those conditions are lulty met or the fU￿lIment of those conditions is wthin the control of the charity and rt is probable that they will be fu￿illed. Grants are included in the Statement of Financial A¢livrties on a receivable basis. The balance of income received for specrfic purposes but not expended durtng the period is shown in the relevant funds on the Balan¢e Sheet. Where income is received in advan¢e of entiuement of receipt, ils recognition 1$ deferred and in¢luded in Creditors as deferre(l income. Where entillemenl occurs before income is received, the income is accrued. Income lax recoverable in relat￿n to donations received under Gift is recognised at the time of the donation. Other income is recognised in the period in %thich it is receivable and to the extent the goods have been provided or on cOmplet￿n of the ser¥￿e. 2.3 Ex￿ndIture All expenditure is accounted for ¢)n an accrual basis and has been da$$ified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation lo make payments to third parties, it is probable that the setuement wll be required and the amount of the obligation can be measured reliabty. Support costs are those that assist the work of the charty bul do not dI￿¢11Y represent chartsble adivities and include office ¢o$l$. govemance ¢o$ls. administrative payroll costs. Support and governance costs have been allocated to expenditure on charitable activities on the basis this is consistent wth use of the resources. Govemance costs comprise the costs ass(Kialed wth the goveman¢e arrangements of the charity and include audit fees. legal advice Irf any} for trustees. costs associated wth ¢onstilLJlional and statLJtory requirements and any costs associated the strategic as opposed to the day to day management of the charity's assets. Expenditure on charitable activities is incurred on directly undertaking the acti￿eS which further the Chanty's objectsves, as as any associated support costs. Grants payable are charged in the year vthen the offer is made except in those cases where the offer is cond￿'0na1. such grants being recognised as expenditure when the conditions attachin9 are fulfilled. Grants offered subject to condrtions which have not been mel al the year end are noted as a comffjilmenl. bul not accwed as expendrture. All expenditure is inclusive of irrecoverable VAT. Page 14 FESTIVAL OF LIFE IA Company Llmltgd by Guaran￿) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OECEMBER 2021 ACCOUn￿ng poll¢l•$ {¢ontlnuod} 2A Tangible fixèd assets and depre¢iation Fixed a$sels costing £2000 or m￿e are ststed at cost and deP￿ClatIon is provided al rates calculated to writ&off the ￿st of each asset over its useful economic life, less any estimated residual value. Depreciation is charged so as to allocate the cost of tsngible fixed assets less their residual value over their eslimaled useful lives. using the straighl-line method. Depreciation 1$ prO￿ded on the foll¢Mng basis.. Ministry Equipment Office equipment 25% 25% 2.5 Oebtors Debtors with no staled interest rale arKI receivable or payable y￿h1n one year are recorded at transaction price. Any losses arising from impaimient a￿ recogniyed in expenditure. 2.6 Cash at bank and In hand Cash and cash equivalents comprise cash on hand and call deposits, and other short-temi highly liquid investments thal are readily convertible to a known amount of cash and are subject lo an in5ignrficanl risk of change in value. 2.7 Llabllltles and provlslons Liabilities are recognised ¥then there is an obligation at the Balance Sheet date as a result of a past event, il is probable that a transfer of economic benefit wll be required in settlement, and the amount of the Settlement can be e5tsmated reliably. Liabilities are recognised al the amount that the Charity anlicipales il wll pay to settle the debt or the amount il ha$ received as advanced payments for the goods or services it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value ol money is malenal. the provision is based on the present value ol Ih05e amounts, dis¢ounled at the pre-tax di￿O￿nt rale that reflects the risks specific lo the liability. The unwnding of the discount is recognised in the Slatemenl of Financial Actiwlies as a finance cost. 2.8 Pensions Contributions are made to the employee's peT50nal pension arrangements. 2.9 Fund a¢¢ountlng Unrestricted Igenerall funds are fvnds Nthich are available for use at the discretion of the trustees in furtherance of the general objeclwes of the charity and Yknich have not been designated for other purposes. Investrnent income, gains and losses are allocated to the appropriate fund. Page 15 FESTIVAL OF LIFE IA Company Llmltgd by Guaran￿) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OECEMBER 2021 ACCOUn￿ng poll¢l•$ {¢ontlnuod} 2.10 VAT The charity is not registe￿d for VAT and cannot recover VAT incurred on costs. These are therefore stated inclusive of any VAT element. 2.11 Taxatlon The charity is considered lo pass the tests set out in seclions 466 to 493 Corporation Tax Act 2010 ICTA 20101. as such no income tsK is payable on the charity's athities. 2.12 Employ•e bon8fft8 When employees have rendered seryice to the charity. short-tem employee benefrts to which the employees are entslled are fecognised al the urKliscounle