## ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
## Life City Church Ltd
(A company limited by guarantee) Charity registration number: 1105684 Company registration number: 05137625
Independent Examiners Ltd 2 Broadbridge Business Centre Delling Lane Bosham Chichester West Sussex PO18 8NF
## **LIFE CITY CHURCH LTD**
## **CONTENTS**
|Legal and Administrative Information|1|
|---|---|
|Trustees' Report|2 to 4|
|Independent Examiner's Report|5|
|Statement of Financial Activities|6|
|Balance Sheet|7|
|Notes to the Financial Statements|8 to 16|
## **LIFE CITY CHURCH LTD**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
|**Charity Registration**|1105684|
|---|---|
|**Number**||
|**Company Registration**|05137625|
|**Number**||
|**Trustees**|Stephen Sutherland|
||Janet Bluck|
||Philip Buckley|
||Andrew Booth|
|**Secretary**|Janet Bluck|
|**Registered address**|40c Bramley Hall|
||Bramley Hill|
||South Croydon|
||Surrey|
||CR2 6NS|
|**Bankers**|Lloyds Bank plc|
||7 Market Square|
||Bromley|
||BR1 1NA|
|**Independent Examiner**|G W Schulz ACMA|
||Independent Examiners Ltd|
||2 Broadbridge Business Centre|
||Delling Lane|
||Bosham|
||Chichester|
||West Sussex|
||PO18 8NF|
Page 1
## **LIFE CITY CHURCH LTD**
## **TRUSTEES' REPORT**
The trustees, who are directors for the purposes of company law, present the annual report together with the financial statements of the charitable company for the year ended 31 March 2021.
## **Structure, governance and management**
## _**Nature of governing document**_
Life City Church Ltd is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association.
## _**Recruitment and appointment of trustees**_
The management of the company is the responsibility of the trustees who are elected and co-opted under the terms of the Memorandum of Association.
## _**Risk management**_
The trustees have assessed the major risks to which the charity is exposed, in particular those related to the operations and finances of the charity, and are satisfied that systems and procedures are in place to mitigate our exposure to the major risks.
## **Objectives and activities**
## _**Objects and aims**_
The company's objectives and principal activities are:
- The advancement of the Christian Faith
- The instruction and care of Christians
- The evangelism of non Christians
- The advancement of education on the basis of Christian teaching
- The relief of those in need, suffering, hardship or distress, the aged and sick
## _**Public benefit**_
The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.
## _**Use of volunteers**_
The trustees are very grateful for the generous giving of the church members in terms of both finances and time. Without the free will of time by many members much of the work of the charitable company would not function.
Page 2
## **LIFE CITY CHURCH LTD**
## **TRUSTEES' REPORT**
## **Achievements and performance**
## _**Review of activities**_
Over the past year due to Covid restrictions Life City had to curtail the physical gathering together of members in favour of an online approach. The church provided digitally based church activities for both the Sunday celebration and midweek activities in smaller groups. This was a challenge that most members rose to from the young people to the older generation with meetings conducted via zoom. This also included the directors’ meetings where decisions were made based on the available government data at the time. Our community work continued in the form of food vouchers distributed via our normal partners.
It was difficult to determine the size of the membership, merely the number of devices logged on to our meetings. We also realised that some people were logging on from other parts of the country who would not normally be able to physically attend our meetings. Online methods of giving were emphasised and members took advantage of these. However giving was affected by members’ job situations and was reduced. However due to the financial reserves in place and lower expenses the continuing activities of the church were not threatened.
We still intend to finalise plans to secure a purpose-built venue for congregational and community use. Income has decreased in the year and we are yet to determine the full impact of the pandemic on the ongoing activities of the church.
The church continues to employ its senior pastor full-time along with part-time staff supporting children’s church activities, worship, social media and administration.
## **Financial review**
The income for the year amounted to £171,699 (2020 - £265,651) and expenditure £123,140 (2020 - £149,331). The surplus was added to fund brought forward, resulting in unrestricted funds of £348,367 to be carried forward.
## _**Going concern**_
After making appropriate enquiries, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements.
## **Statement of Trustees' Responsibilities**
The trustees (who are also the directors of Life City Church Ltd for the purposes of company law) are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.
Page 3
## **LIFE CITY CHURCH LTD**
## **TRUSTEES' REPORT**
Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The annual report was approved by the trustees of the charity on 16 November 2021 and signed on its behalf by:
......................................... Stephen Sutherland Trustee
Page 4
## **LIFE CITY CHURCH LTD**
## **INDEPENDENT EXAMINER'S REPORT**
I report to the charity trustees on my examination of the accounts of the charity for the year ended 31 March 2021 which are set out on pages 6 to 16.
## **Respective responsibilities of trustees and examiner**
As the charity’s trustees of Life City Church Ltd (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).
Having satisfied myself that the accounts of Life City Church Ltd are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
## **Independent examiner’s statement**
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:
1. accounting records were not kept in respect of Life City Church Ltd as required by section 386 of the 2006 Act; or
2. the accounts do not accord with those records; or
3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act 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; or
4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)].
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
...................................... G W Schulz ACMA Independent Examiners Ltd 2 Broadbridge Business Centre Delling Lane Bosham Chichester West Sussex PO18 8NF
16 November 2021
Page 5
## **LIFE CITY CHURCH LTD**
## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2021**
|**Note**
**Unrestricted**
**funds**
**£**
**Income and Endowments from:**
Donations and legacies
3
173,753
Charitable activities
4
58
Investment income
5
58
Total income
173,869
**Expenditure on:**
Charitable activities
6
123,140
Total expenditure
123,140
Net income
50,729
Transfers between funds
16,300
Net movement in funds
67,029
**Reconciliation of funds**
Total funds brought
forward
284,808
Total funds carried
forward
13
351,837|**Restricted**
**funds**
**£**
1,300
-
-
1,300
-
-
1,300
(16,300)
(15,000)
15,000
-|**Total**
**2021**
**£**
175,053
58
58
175,169
123,140
123,140
52,029
-
52,029
299,808
351,837|**Total**
**2020**
**£**
264,853
716
82|
|---|---|---|---|
||||265,651|
||||149,331|
||||149,331|
||||116,320
-|
||||116,320
183,488|
||||299,808|
The notes on pages 8 to 16 form an integral part of these financial statements. Page 6
## **LIFE CITY CHURCH LTD**
## **REGISTERED NUMBER: 05137625**
## **BALANCE SHEET AS AT 31 MARCH 2021**
|**Note**
**Fixed assets**
Tangible assets
9
**Current assets**
Debtors
10
Cash at bank and in hand
**Creditors: Amounts falling due within one year**
11
**Net current assets**
**Net assets**
**Funds of the charity:**
**Restricted income funds**
Restricted funds
**Unrestricted income funds**
Unrestricted funds
**Total funds**
13|**2021**
**£**
57,167
3,746
310,161
313,907
(19,237)
294,670
351,837
-
351,837
351,837|**2020**
**£**
57,643
35,378
225,278|
|---|---|---|
|||260,656
(18,491)|
|||242,165|
|||299,808|
|||15,000
284,808|
|||299,808|
For the financial year ending 31 March 2021 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
- The members have not required the charity to obtain an audit of its accounts for the year in question in accordance with section 476; and
- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements on pages 6 to 16 were approved by the trustees, and authorised for issue on 16 November 2021 and signed on their behalf by:
.........................................
Stephen Sutherland Trustee
The notes on pages 8 to 16 form an integral part of these financial statements. Page 7
## **LIFE CITY CHURCH LTD**
## **NOTES TO THE FINANCIAL STATEMENTS FOR YEAR ENDED 31 MARCH 2021**
## **1 Charity status**
The charity is limited by guarantee, incorporated in , and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exceeding £1 towards the assets of the charity in the event of liquidation.
## **2 Accounting policies**
## **Summary of significant accounting policies and key accounting estimates**
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
## **Statement of compliance**
The financial statements have been prepared in accordance with 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) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). They also comply with the Companies Act 2006 and Charities Act 2011.
## **Basis of preparation**
Life City Church Ltd meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
## **Going concern**
The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern nor any significant areas of uncertainty that affect the carrying value of assets held by the charity.
## **Income and endowments**
All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of the income receivable can be measured reliably.
Page 8
## **LIFE CITY CHURCH LTD**
## **NOTES TO THE FINANCIAL STATEMENTS FOR YEAR ENDED 31 MARCH 2021**
## _**Donations and legacies**_
Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance by the charity before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that these conditions will be fulfilled in the reporting period.
## _**Gift aid**_
Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
## **Expenditure**
All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category.
## _**Charitable activities**_
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
## **Taxation**
The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company 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 to charitable purposes.
## **Tangible fixed assets**
Individual fixed assets costing £500 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
## **Depreciation and amortisation**
Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:
|**Asset class**||**Depreciation method and rate**|
|---|---|---|
|Land and buildings||2% on cost|
|Furniture and equipment||25% on reducing balance|
|Motor vehicles||25% on reducing balance|
||Page 9||
## **LIFE CITY CHURCH LTD**
## **NOTES TO THE FINANCIAL STATEMENTS FOR YEAR ENDED 31 MARCH 2021**
## **Debtors**
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
## **Cash and cash equivalents**
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
## **Liabilities**
Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
## **Fund structure**
Unrestricted income funds are general funds that are available for use at the trustees's discretion in furtherance of the objectives of the charity.
Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.
## **Pensions and other post retirement obligations**
The charity operates a defined contribution pension scheme which is a pension plan under which fixed contributions are paid into a pension fund and the charity has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised in the Statement of Financial Activities when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
## **Financial instruments**
The company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
Page 10
## **LIFE CITY CHURCH LTD**
## **NOTES TO THE FINANCIAL STATEMENTS FOR YEAR ENDED 31 MARCH 2021**
## **3 Income from donations and legacies**
|**Unrestricted**
**funds**
**General**
**£**
Donations and legacies;
Donations
151,118
Gift aid reclaimed
22,635
173,753
**4 Income from charitable activities**
Events
**5 Investment income**
Interest receivable and similar income;
Interest receivable on bank deposits|**Restricted**
**funds**
**£**
1,300
-
1,300
**Unrestricted**
**funds**
**General**
**£**
58
**Unrestricted**
**funds**
**General**
**£**
58|**Total**
**2021**
**£**
152,418
22,635
175,053
**Total**
**2021**
**£**
58
**Total**
**2021**
**£**
58|**Total**
**2020**
**£**
229,475
35,378|
|---|---|---|---|
||||264,853|
||||**Total**
**2020**
**£**
716|
||||**Total**
**2020**
**£**
82|
Page 11
## **LIFE CITY CHURCH LTD**
## **NOTES TO THE FINANCIAL STATEMENTS FOR YEAR ENDED 31 MARCH 2021**
## **6 Expenditure on charitable activities**
|**Note**
Camp, courses, conferences and
ministry costs
Children and Youth
Gifts and donations
National organisation seed
payments
Speakers costs
Premises costs and hall hire
Computers and media
Publicity
Travelling expenses
Motor costs
Postage, stationery and
telephone
Subscriptions and licenses
Bank and charge cards
Legal and professional fees
Other costs
Independent examination
Depreciation
Staff costs
8|**Unrestricted**
**funds**
**General**
**£**
8,675
856
4,581
-
-
34,093
11,433
795
(2,905)
-
1,805
2,637
1,540
13
12
930
3,455
55,220
123,140|**Total**
**2021**
**£**
8,675
856
4,581
-
-
34,093
11,433
795
(2,905)
-
1,805
2,637
1,540
13
12
930
3,455
55,220
123,140|**Total**
**2020**
**£**
28,927
2,344
2,612
5,336
1,797
29,798
7,227
170
5,550
794
3,151
2,527
1,571
254
1,290
930
3,229
51,824|
|---|---|---|---|
||||149,331|
Page 12
## **LIFE CITY CHURCH LTD**
## **NOTES TO THE FINANCIAL STATEMENTS FOR YEAR ENDED 31 MARCH 2021**
## **7 Trustees remuneration and expenses**
One trustee, Mr Stephen Sutherland, and his son are employees of the charity and their gross income for the year amounted to £43,905 (2019 - Mr Stephen Sutherland, his son and his daughter £41,032).
During the year, Mr Stephen Sutherland, also received benefits by way of pension contributions amounting to £2,265 (2020 - £2,371).
One trustee, Mrs J Bluck, received £4,735 in respect of bookkeeping services rendered - (2020 £2,748).
The only other payments made to the trustees, or any person connected with them, consisted of reimbursements of expenditure incurred on behalf of the charity in furthering the charity's objects.
## **8 Staff costs**
The aggregate payroll costs were as follows:
|**Staff costs during the year were:**
Wages and salaries
Social security costs
Pension costs|**2021**
**£**
52,193
660
2,367
55,220|**2020**
**£**
48,046
1,407
2,371|
|---|---|---|
|||51,824|
The monthly average number of persons (including senior management team) employed by the charity during the year expressed as full time equivalents was as follows:
|Full-time
Part-time|**2021**
**No**
1
2
3|**2020**
**No**
1
2|
|---|---|---|
|||3|
No employee received emoluments of more than £60,000 during the year.
Page 13
## **LIFE CITY CHURCH LTD**
## **NOTES TO THE FINANCIAL STATEMENTS FOR YEAR ENDED 31 MARCH 2021**
## **9 Tangible fixed assets**
|**Land and**
**buildings**
**£**
**Furniture**
**and**
**equipment**
**£**
**Cost**
At 1 April 2020
52,127
62,420
Additions
-
2,999
Disposals
-
-
At 31 March 2021
52,127
65,419
**Depreciation**
At 1 April 2020
1,043
55,918
Charge for the year
1,043
2,375
Eliminated on disposals
-
-
At 31 March 2021
2,086
58,293
**Net book value**
At 31 March 2021
50,041
7,126
At 31 March 2020
51,084
6,502
**10 Debtors**
Accrued income
**11 Creditors: amounts falling due within one year**
Trade creditors
Other taxation and social security
Other creditors
Accruals|**Furniture**
**and**
**equipment**
**£**
62,420
2,999
-||**Motor**
**vehicles**
**£**
3,200
-
(3,200)
-
3,143
-
(3,143)
-
-
57
**2021**
**£**
3,746
**2021**
**£**
1,050
1,218
16,219
750
19,237|**Motor**
**vehicles**
**£**
3,200
-
(3,200)
-
3,143
-
(3,143)
-
-
57
**2021**
**£**
3,746
**2021**
**£**
1,050
1,218
16,219
750
19,237|**Total**
**£**
117,747
2,999
(3,200)
117,546
60,104
3,418
(3,143)
60,379
57,167
57,643
**2020**
**£**
35,378|
|---|---|---|---|---|---|
||65,419|||||
||55,918
2,375
-|||||
||58,293||-|||
||7,126||-|||
||6,502||57|||
||||**2021**
**£**
3,746
**2021**
**£**
1,050
1,218
16,219
750
19,237|||
||||||**2020**
**£**
948
814
15,979
750|
||||||18,491|
Page 14
## **LIFE CITY CHURCH LTD**
## **NOTES TO THE FINANCIAL STATEMENTS FOR YEAR ENDED 31 MARCH 2021**
## **12 Pension and other schemes**
## **Defined contribution pension scheme**
The charity operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the charity to the scheme and amounted to - £2,367 (2020 £2,371).
Contributions totalling £16,216 (2020 - £15,979) were payable to the scheme at the end of the year and are included in creditors.
## **13 Funds**
|**13 Funds**|||
|---|---|---|
|**Balance**
**at 1 April**
**2020**
**£**
**Incoming**
**resources**
**£**
**Unrestricted funds**
**_General_**
General Funds
284,808
173,869
**Restricted funds**
Building fund
15,000
1,300
**Total funds**
299,808
175,169
The Building fund was for the restricted purpose of
the restriction were fulfilled once the property was
used on an unrestricted basis.
**Balance**
**at 1 April**
**2019**
**£**
**Incoming**
**resources**
**£**
**Unrestricted funds**
**_General_**
General Funds
183,488
250,651
**Restricted funds**
Building fund
-
15,000
**Total funds**
183,488
265,651|**Resources**
**expended**
**£**
**Transfers**
**£**
**Balance**
**at 31**
**March**
**2021**
**£**
(123,140)
16,300
351,837
-
(16,300)
-
(123,140)
-
351,837
purchasing a property. The terms of
purchased, allowing the asset to be
**Resources**
**expended**
**£**
**Transfers**
**£**
**Balance**
**at 31**
**March**
**2020**
**£**
(149,331)
-
284,808
-
-
15,000
(149,331)
-
299,808|**Balance**
**at 31**
**March**
**2021**
**£**
351,837
-|
|||351,837|
|||299,808|
Page 15
## **LIFE CITY CHURCH LTD**
## **NOTES TO THE FINANCIAL STATEMENTS FOR YEAR ENDED 31 MARCH 2021**
## **14 Analysis of net assets between funds**
|Tangible fixed assets
Current assets
Current liabilities
Total net assets
Tangible fixed assets
Current assets
Current liabilities
Total net assets|**Unrestricted**
**funds**
**General**
**£**
57,167
313,907
(19,236)
351,838
**Unrestricted**
**funds**
**General**
**£**
57,643
245,656
(18,491)
284,808|**Restricted**
**funds**
**£**
-
-
-
-
**Restricted**
**funds**
**£**
-
15,000
-
15,000|**Total funds**
**at 31**
**March**
**2021**
**£**
57,167
313,907
(19,236)|
|---|---|---|---|
||||351,838|
||||**Total funds**
**at 31**
**March**
**2020**
**£**
57,643
260,656
(18,491)|
||||299,808|
Page 16