ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
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
| Reference and Administrative Details | 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
REFERENCE AND ADMINISTRATIVE DETAILS
Trustees
Stephen Sutherland Janet Bluck (resigned 19 May 2022) Philip Buckley Andrew Booth
Secretary Karlene Williams Charity Registration 1105684 Number Company Registration 05137625 Number
The charity is incorporated in England.
Registered Office 40c Bramley Hall Bramley Hill South Croydon Surrey CR2 6NS Independent Examiner G W Schulz ACMA Independent Examiners Ltd 2 Broadbridge Business Centre Delling Lane Bosham, Chichester West Sussex PO18 8NF Bankers Lloyds Bank plc 7 Market Square Bromley BR1 1NA
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 2022.
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.
Achievements and performance
Review of activities
During the past year the church has slowly reintroduced in-person meetings as well as continuing to offer online content and mid-week opportunities for its members to meet. Membership has begun to rise although numbers are still not near January 2020 figures.
Page 2
LIFE CITY CHURCH LTD
TRUSTEES' REPORT
Investing in online content and streaming services has increased the profile of the church and the church has had many new visitors in recent months. Giving which has now moved fully online with no in-person offering being taken has seen a greater commitment to members setting up standing orders or giving through work related schemes.
The church saw the completion of the building regulation planning via its architects however, whilst ready for submission our initial planning permission timeframe expired in January 2022. Also due to financial turmoil and international conflicts the prices of building materials and labour has significantly increased which has seen an increase in the proposed build costs. The directors therefore are reviewing a way forward in trying to secure a venue either via new build or new location.
Life City actively works in its community having built key relationships with other organisations such as Love Loud, Move53, Evolve Housing and the Metropolitan Police Community Support Team. These partnerships allow time framed and focussed support into specific areas of need within the community.
The church continues to employ its senior pastor full-time along with part-time staff supporting children’s church, youth work, worship, video and music production, social media and administration.
Financial review
The income for the year amounted to £221,531 (2021 - £171,169) and expenditure £145,386 (2021 - £123,140). The surplus was added to fund brought forward, resulting in unrestricted funds of £427,982 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.
Page 3
LIFE CITY CHURCH LTD
TRUSTEES' REPORT
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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".
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 the incoming resources and application of resources, including its income and expenditure, of the charitable company 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 accounting standards, comprising FRS 102 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 proper accounting records that can 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 trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Small companies provision statement
This report has been prepared in accordance with the small companies regime under the Companies Act 2006.
The annual report was approved by the trustees of the charity on 14 December 2022 and signed on its behalf by:
......................................... Stephen Sutherland Trustee
Page 4
LIFE CITY CHURCH LTD
INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF LIFE CITY CHURCH LTD
I report to the charity trustees on my examination of the accounts of the charity for the year ended 31 March 2022 which are set out on pages 6 to 16.
Responsibilities and basis of report
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:
-
accounting records were not kept in respect of Life City Church Ltd as required by section 386 of the 2006 Act; or
-
the accounts do not accord with those records; or
-
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
-
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
14 December 2022
Page 5
LIFE CITY CHURCH LTD
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2022
| Note Unrestricted funds £ Income and Endowments from: Donations and legacies 3 219,360 Charitable activities 4 2,144 Investment income 5 27 Total income 221,531 Expenditure on: Charitable activities 6 145,386 Total expenditure 145,386 Net income 76,145 Net movement in funds 76,145 Reconciliation of funds Total funds brought forward 351,837 Total funds carried forward 13 427,982 |
Total 2022 £ 219,360 2,144 27 221,531 145,386 145,386 76,145 76,145 351,837 427,982 |
Total 2021 £ 175,053 58 58 |
|---|---|---|
| 175,169 | ||
| 123,140 | ||
| 123,140 | ||
| 52,029 | ||
| 52,029 299,808 |
||
| 351,837 |
The notes on pages 8 to 16 form an integral part of these financial statements. Page 6
LIFE CITY CHURCH LTD
(REGISTRATION NUMBER: 05137625) BALANCE SHEET AS AT 31 MARCH 2022
| 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: Unrestricted income funds Unrestricted funds Total funds 13 |
2022 £ 58,257 58,257 15,264 374,821 390,085 (20,360) 369,725 427,982 427,982 427,982 |
2021 £ 57,167 |
|---|---|---|
| 57,167 | ||
| 3,746 310,161 |
||
| 313,907 (19,237) |
||
| 294,670 | ||
| 351,837 | ||
| 351,837 | ||
| 351,837 |
For the financial year ending 31 March 2022 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 financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
The financial statements on pages 6 to 16 were approved by the trustees, and authorised for issue on 14 December 2022 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 THE YEAR ENDED 31 MARCH 2022
1 Charity status
The charity is limited by guarantee, incorporated in England, 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 THE YEAR ENDED 31 MARCH 2022
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.
Interest receivable
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.
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.
Page 9
LIFE CITY CHURCH LTD
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
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
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 discretion in furtherance of the objectives of the charity.
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.
Page 10
LIFE CITY CHURCH LTD
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
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.
3 Income from donations and legacies
| Donations and legacies; Donations Gift aid reclaimed 4 Income from charitable activities Charitable activities 5 Investment income Interest receivable and similar income; Interest receivable on bank deposits |
Unrestricted funds General £ 188,823 30,037 218,860 Unrestricted funds General £ 2,144 Unrestricted funds General £ 27 |
Total 2022 £ 188,823 30,037 218,860 Total 2022 £ 2,144 Total 2022 £ 27 |
Total 2021 £ 152,418 22,635 |
|---|---|---|---|
| 175,053 | |||
| Total 2021 £ 58 |
|||
| Total 2021 £ 58 |
Page 11
LIFE CITY CHURCH LTD
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
6 Expenditure on charitable activities
| Note Camp, courses, conferences and ministry costs Children and Youth Gifts and donations Speakers costs Premises costs and hall hire Computers and media Publicity Travelling expenses 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 £ 23,918 1,458 5,096 1,295 26,769 5,216 53 146 1,962 2,875 1,744 13 114 960 4,129 69,638 145,386 |
Total 2022 £ 23,918 1,458 5,096 1,295 26,769 5,216 53 146 1,962 2,875 1,744 13 114 960 4,129 69,638 145,386 |
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 |
7 Trustees remuneration and expenses
One trustee, Mr Stephen Sutherland, received remuneration as pastor of the church amounting to £50,000 (2021: £42,000) in the current year.
During the year, Mr Stephen Sutherland, also received benefits by way of pension contributions amounting to £4,009 (2021: £2,265).
One trustee, Mrs J Bluck, received £2,955 for bookkeeping services (2021: £4,735).
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.
Page 12
LIFE CITY CHURCH LTD
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
8 Staff costs
The aggregate payroll costs were as follows:
| 8 Staff costs The aggregate payroll costs were as follows: |
||
|---|---|---|
| Staff costs during the year were: Wages and salaries Social security costs Pension costs |
2022 £ 64,610 2,270 2,758 69,638 |
2021 £ 52,193 660 2,367 |
| 55,220 |
The monthly average number of persons (including senior management / leadership team) employed by the charity during the year expressed as full time equivalents was as follows:
| follows: | ||
|---|---|---|
| Full-time Part-time |
2022 No 1 2 3 |
2021 No 1 2 |
| 3 |
Page 13
LIFE CITY CHURCH LTD
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
9 Tangible fixed assets
| 9 Tangible fixed assets | |||||
|---|---|---|---|---|---|
| Land and buildings £ Cost At 1 April 2021 52,127 Additions - At 31 March 2022 52,127 Depreciation At 1 April 2021 2,086 Charge for the year 1,043 At 31 March 2022 3,129 Net book value At 31 March 2022 48,998 At 31 March 2021 50,041 10 Debtors Accrued income 11 Creditors: amounts falling due within one year Trade creditors Other taxation and social security Other creditors Accruals |
Land and buildings £ 52,127 - |
Furniture and equipment £ 65,419 5,219 |
Total £ 117,546 5,219 122,765 60,379 4,129 64,508 58,257 57,167 2021 £ 3,746 |
||
| 52,127 | 70,638 | ||||
| 2,086 1,043 |
58,293 3,086 |
||||
| 3,129 | 61,379 | ||||
| 48,998 | 9,259 | ||||
| 50,041 | 7,126 | ||||
| 2022 £ 15,264 2022 £ 1,552 1,772 16,256 780 20,360 |
|||||
| 2021 £ 1,050 1,218 16,219 750 |
|||||
| 19,237 |
Page 14
LIFE CITY CHURCH LTD
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
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 - £2,758 (2021 £2,367).
Contributions totalling £16,256 (2021 - £16,216) were payable to the scheme at the end of the year and are included in creditors.
13 Funds
| 13 Funds | |||
|---|---|---|---|
| Unrestricted funds General General Funds Unrestricted funds General General Funds Restricted funds Building fund Total funds |
Balance at 1 April 2021 £ Incoming resources £ Resources expended £ Balance at 31 March 2022 £ 351,837 221,531 (145,386) 427,982 Balance at 1 April 2020 £ Incoming resources £ Resources expended £ Transfers £ Balance at 31 March 2021 £ 284,808 173,869 (123,140) 16,300 351,837 15,000 1,300 - (16,300) - 299,808 175,169 (123,140) - 351,837 |
Balance at 31 March 2022 £ 427,982 |
|
| Balance at 31 March 2021 £ 351,837 - |
|||
| 351,837 |
The Building fund was for the restricted purpose of purchasing a property. The terms of the restriction were fulfilled once the property was purchased, allowing the asset to be used on an unrestricted basis.
Page 15
LIFE CITY CHURCH LTD
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
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 £ 58,257 390,085 (20,360) 427,982 Unrestricted funds General £ 57,167 313,907 (19,236) 351,838 |
Restricted funds £ - - - - Restricted funds £ - - - - |
Total funds at 31 March 2022 £ 58,257 390,085 (20,360) |
|---|---|---|---|
| 427,982 | |||
| Total funds at 31 March 2021 £ 57,167 313,907 (19,236) |
|||
| 351,838 |
Page 16