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2021-03-31-accounts

REGISTERED COMPANY NUMBER: 5392860 (England and Wales) REGISTERED CHARITY NUMBER: 1111303

Report of the Trustees and

Audited Consolidated Financial Statements for the year ended 31[st] March 2021

for

LifeChurch Manchester

(a company limited by guarantee and not having a share capital)

Allen Mills Howard Limited Chartered Accountants

& Statutory Auditors Lewis House 56 Manchester Road Altrincham Cheshire WA14 4PJ

LifeChurch Manchester

Contents of the Financial Statements For the year ended 31[st] March 2021

Page
Report of the Trustees 1 -4
Report of the Independent Auditors 5 - 7
Consolidated Statement of Financial Activities 8
Consolidated Balance Sheet 9
Consolidated Statement of Cash Flows 10
Notes to the Financial Statements 11 - 25

LifeChurch Manchester

Report of the Trustees For the year ended 31[st] March 2021

The Trustees, who are also directors of the charity for the purpose of the Companies Act 2006, present their report with the consolidated financial statements of the charity and its subsidiary for the year ended 31[st] March 2021. The Trustees have adopted the provisions of 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[st] January 2015).

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company Number: 05392860 (England and Wales)

Registered Charity Number: 1111303

Registered office:
 The LifeCentre
235 Washway Road
Sale
M33 4BP
Trustees:
 D S Fleming – Resigned 16 November 2020 - Chairman to 20 September 2020
A J Barclay-Watt
 - Chairman from 21 September 2020
T H Giles
N H Matthews – Resigned 17 August 2020
D J Ogilvie – Resigned 18 January 2021
P A Flatman
A J Cutteridge – Resigned 9 July 2021
P J Morris – Appointed 7 February 2021
A J Chard – Appointed 7 February 2021
Company Secretary:
 D J Rolles
Auditors:
 Allen Mills Howard Limited
Chartered Accountants and Statutory Auditors
Lewis House
56 Manchester Road
Altrincham
WA14 4PJ
Bankers:
 Barclays Bank PLC
17 Northenden Road
Sale
M33 2DP
Redwood Bank Ltd
The Nexus Building
Broadway
Letchworth Garden City
SG6 3TA

1

LifeChurch Manchester (Registered number: 5392860)

Report of the Trustees For the year ended 31[st] March 2021

Trustees

D S Fleming Resigned 16 November 2020 - Chairman to 20 September 2020 A J Barclay-Watt - Chairman from 21 September 2020 T H Giles N H Matthews Resigned 17 August 2020 D J Ogilvie Resigned 18 January 2021 P A Flatman A J Cutteridge Resigned 9 July 2021 P J Morris Appointed 7 February 2021 A J Chard Appointed 7 February 2021

Secretary and Registered Office

D J Rolles, The LifeCentre, 235 Washway Road, Sale, M33 4BP

Governing instrument

The charity’s activities are regulated by the Memorandum and Articles of Association. The objectives and principal activities of the charity are:

Recruitment, induction and training of new Trustees

Any prospective new Trustees are recommended by the current board and by the Elders and are appointed by the Church members. In appointing Trustees the board seek to bring a range of skills and expertise to the management of the Charity. New Trustees are introduced to the workings of the charity and are kept updated through regular Trustees’ meetings and communication throughout the year.

Organisational structure

The Church is led by a leadership team which comprises of Elders and others. The Elders currently are Andy BarclayWatt, Nick Matthews, Tom Giles, Mark Smith, Alastair Cutteridge and David Rolles. Elders are nominated by the existing Elders and are appointed by Church members. The other current leadership team members are Phil Watterson, Jane Rolles, Sue Matthews, Melanie Cutteridge, Emma Barclay-Watt and Sarah Smith. Senior staff appointments are approved by the leadership team and the Trustees. The senior staff are responsible for managing the day-to-day affairs of the Church.

Risk management

The Trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.

Related parties and co-operation with other organisations

Three Trustees receive remuneration from the charitable company in accordance with the Trust Deed which stipulates that the number of remunerated Trustees must never be a majority.

The charity’s wholly owned subsidiary, LifeCentre Events Ltd, was established to operate the LifeCafé and to provide catering and conferencing facilities at the LifeCentre (see note 4 to the accounts). LifeCentre Events Ltd provides catering and conferencing facilities to the local community, as well as businesses, schools and other charitable organisations.

Use of volunteers

The group is very involved with the community and is dependent on the support of many volunteers in the church and the LifeCentre. The Trustees are very grateful to the church members for this support.

2

LifeChurch Manchester (Registered number: 5392860)

Report of the Trustees For the year ended 31[st] March 2021

Objectives & activities during the year

When planning the activities for the year the Trustees have considered the Charity Commission’s guidance on public benefit and, in particular, the specific guidance on charities for the advancement of religion. The group operates in and around Sale, South Manchester and has a number of activities which seek to reach out to the local community as well as serving members of the church. In particular, the charitable company has sought & achieved to fulfil its charitable objectives in the following ways:

Financial review

The group’s total income for the year amounted to £740,254 (2020: £845,529) and the expenditure amounted to £603,778 (2020: £795,862) giving a surplus for the year before taxation of £136,476 (2020: £49,667).

Grant and donation income to the group was £587,724 (2020: £493,847) which includes HMRC Coronavirus Job Retention Scheme (CJRS) grants of £92,223 (2020: £1,902). The balance (£495,501 (2020: £491,945)) consists of donations and gift aid income to LifeChurch Manchester.

Income for LifeCentre Events Ltd fell by 32% to £181,367 (2020: £291,551). Turnover was £103,540 (2020: £289,931). The income figure for 2020/21 also includes HMRC CJRS grant income of £43,816 (2020: £1,555) and the proceeds from a loss of income insurance claim of £34,000 (2020: £nil).

Expenditure before taxation for LifeCentre Events Ltd (excluding parent charity donations of £57,120 (2020: £76,700)) fell to £111,641 from £184,843 in 2020. 88% of this expenditure related to employment costs (2020: 64%).

Reserves policy & going concern

The group generates a regular income by way of gifts and donations as well as the hiring of the LifeCentre conference rooms which is adequate to cover the projected expenditure. In addition, the group seeks to maintain adequate reserves to enable it to meet any unforeseen expenditure or to cover any short-term drop in income. The group held reserves of £1,785,341 (2020: £1,649,367) and whilst “free reserves” at the end of the financial year were £nil (2020: £nil) due to reserves invested in the LifeCentre building, the group’s net current assets stood at £102,228 (2020: £28,368).

The various financial measures that the Trustees took at the start of the Covid-19 pandemic in 2020 were effective, and these were then aided by the Government’s Job Retention Scheme. LCE has been able to host a different client mix to pre-pandemic, including a number of NHS clinics, and especially the Covid-19 vaccination clinics from December 2020, with the LifeCentre becoming the main vaccination centre for Sale. The outcome was that LifeChurch ended the financial year in a stronger cash position than at its start, with donations from church members exceeding budget rather than decreasing, as was anticipated that they might.

The strong end to 2020/21 enabled the Trustees to set a budget for 2021/22 with a measure of confidence. That budget allows for the final 6 months of the Job Retention Scheme, the continuation of the Covid-19 vaccination clinics until at least Autumn 2021, and for a gradual recovery of LCE’s ‘normal’ conference and other meetings business. The Trustees are therefore able to confirm that in their opinion it remains appropriate for the group’s accounts to be prepared on a going concern basis.

3

LifeChurch Manchester (Registered number: 5392860)

Report of the Trustees For the year ended 31[st] March 2021

Plans for Future Periods

During the forthcoming year the Trustees and the church will continue to raise the profile of the charity within the local community in order to involve a higher proportion in the activities of the Church and the LifeCentre.

Trustees’ indemnity arrangements

Individual indemnities have been provided to the Trustees, under which the charitable company has agreed to indemnify the Trustees to the fullest extent permitted by law in respect of all liabilities to third parties arising out of, or in connection with, their execution of their powers, duties and responsibilities as Trustees of the group.

Auditors

The auditors, Allen Mills Howard Limited, have indicated their willingness to be re-appointed to office.

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The Trustees (who are also Directors of the charitable company for the purpose of company law) are responsible for preparing the Trustees’ report and the financial statements in accordance with general applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of the affairs of the charitable company and the charitable group, and of the incoming resources and application of resources of the charitable group for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that disclose, with reasonable accuracy at any time, the financial position of the charity and of the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safekeeping the assets of the charity and of the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the Trustees are aware:

The Trustees have prepared this report in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

This report was approved by the Trustees on 20 September 2021.

4

Report of the Independent Auditors to the Members of LifeChurch Manchester

Opinion

We have audited the financial statements of LifeChurch Manchester (the 'parent charitable company') and its subsidiaries (the ‘charitable group’) for the year ended 31[st] March 2021 which comprise the consolidated Statement of Financial Activities, the consolidated Balance Sheet, the consolidated Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 Auditors responsibilities for the audit of the financial statements section of our report. We are independent of the charitable group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and the provisions available for small entities, in the circumstances set out in note 23 to the financial statements, and we have fulfilled our other ethical responsibilities in accordance with 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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

Other information

The Trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. 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.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable group and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.

5

Report of the Independent Auditors to the Members of LifeChurch Manchester

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of Trustees

As explained more fully in the Statement of Trustees Responsibilities set out on page six, the Trustees (who are also the directors of the charitable group 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 charitable group's 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 group or to cease operations, or have no realistic alternative but to do so.

Auditors’ responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our 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:

As part of designing our audit work, we determined materiality and assessed the risks of material misstatement in the financial statements, including how fraud may occur by enquiring of management of its own consideration of fraud.

In particular, we looked at where management made subjective judgements, for example in respect of significant accounting estimates that involved making assumptions and considering future events that are inherently uncertain.

We also considered potential financial or other pressures, opportunity and motivation for fraud. As part of this discussion we identified the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations and how management monitor these processes. Appropriate procedures included the review and testing or manual journals and key exanimate and judgements made by management.

We made enquiries of management with regards to compliance with applicable laws and regulations and corroborated any necessary evidence to relevant information, for example, minutes of the directors' meetings.

We addressed the risk of management override of internal controls including testing journals and evaluating whether there was evidence of bias by management that represented a risk of material misstatement due to fraud.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentation or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

6

Report of the Independent Auditors to the Members of LifeChurch Manchester

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Mr David Allen FCCA (Senior Statutory Auditor) For and on behalf of Allen Mills Howard Limited Chartered Accountants & Statutory Auditors Lewis House, 56 Manchester Road, Altrincham, Cheshire, WA14 4PJ

21[st] September 2021

7

LifeChurch Manchester (Registered number: 5392860)

Consolidated Statement of Financial Activities Consolidated Statement of Financial Activities Consolidated Statement of Financial Activities
(Incorporating a consolidated Income and Expenditure Account)
For the year ended 31st March 2021
Unrestricted Restricted
Total		 Total
Funds Funds
Funds		 Funds
2021 2020
Notes £ £
£
Income from:
Donations & grants received 3 569,567 18,157
587,724		 493,847
Charitable activities 6 11,832 395
12,227		 60,761
Commercial trading operations 4 103,540 -
103,540		 289,931
Investment income 5 967 -
967		 585
Other income 7 35,796 -
35,796		 405
______ ______
______		 ______
Total income 721,702 18,552
740,254		 845,529
______ ______
______		 ______
Expenditure on:
Cost of raising funds
Cost of goods sold and other costs 4 13,232 -
13,232		 67,424
Staff costs 8 98,409 -
98,409		 117,419
Charitable activities:
Staff costs 8 258,640 -
258,640		 269,905
Church operating expenses 9 213,179 20,318
233,497		 341,114
______ ______
______		 ______
Total expenditure 583,460 20,318
603,778		 795,862
______ ______
______		 ______
Net movement in funds before taxation 138,242 (1,766)
136,476		 49,667
Taxation 502 -
502		 -
______ ______
______		 ______
Net movement in funds after taxation 137,740 (1,766)
135,974		 49,667
RECONCILIATION OF FUNDS
Total funds brought forward 1,636,053 13,314
1,649,367		 1,599,700
______ ______
______		 ______
Total funds carried forward 1,773,793
______		 11,548
______
1,785,341

______		 1,649,367
______

All results relate to continuing operations and there are no gains or losses other than those shown above.

The notes form part of these financial statements.

8

LifeChurch Manchester (Registered number: 5392860)

Consolidated Balance Sheet Consolidated Balance Sheet Consolidated Balance Sheet
For the year ended 31st March 2021
2021 2020 2021 2020
Group Group Charity Charity
Notes £ £ £ £
FIXED ASSETS
Tangible assets 14 2,797,747 2,850,027 2,793,448 2,847,911
Investments 15 60,000 - 60,001 1
_ _ _ _
2,857,747 2,850,027 2,853,449 2,847,912
CURRENT ASSETS
Debtors 16 75,500 58,736 26,557 30,158
Cash at bank and in hand 118,192 94,746 103,909 66,272
_ _ _ _
193,692 153,482 130,466 96,430
CREDITORS
Amounts falling due within one year 17 91,464 125,114 74,045 103,448
_ _ _ _
NET CURRENT ASSETS 102,228 28,368 56,421 (7,018)
_ _ _ _
TOTAL ASSETS LESS CURRENT
LIABILITIES 2,959,975 2,878,395 2,909,870 2,840,894
CREDITORS
Amounts falling due in more than one year 18 1,174,132 1,229,028 1,174,132 1,229,028
PROVISIONS FOR LIABILITIES 502 - - -
_ _ _ _
TOTAL NET ASSETS 1,785,341 1,649,367 1,735,738 1,611,866
______ ______ ______ ______
FUNDS OF THE CHARITY 20
Unrestricted funds:
General 1,758,330 1,624,351 1,708,727 1,586,850
Designated 15,463 11,702 15,463 11,702
Restricted funds: 11,548 13,314 11,548 13,314
_ _ _ _
1,785,341
______		 1,649,367
______		 1,735,738
______		 1,611,866
______

These financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small charitable companies.

The financial statements were approved by the Board of Trustees on 20[th] September 2021 and were signed on its behalf by:

…………………………………………. …………………………………………. A J Barclay-Watt – Trustee P J Morris – Trustee

The notes form part of these financial statements

9

LifeChurch Manchester (Registered number: 5392860)

Statement of Cash Flows and Consolidated Statement of Cash Flows For the year ended 31[st] March 2021

2021 2020 2021 2020
Group Group Charity Charity
Notes £ £ £ £
Cash used in operating activities 25 123,705 87,322 135,100 67,460
______ ______ ______ ______
Cash flows from investing activities
Purchases of tangible fixed assets (14,676) (6,993) (11,880) (4,547)
Purchases of investments (60,000) - (60,000) -
______ ______ ______ ______
Cash used in investing activities (74,676) (6,993) (71,880) (4,547)
______ ______ ______ ______
Cash flows from financing activities
Repayments of borrowing (25,583) (140,691) (25,583) (140,691)
______ ______ ______ ______
Cash used in financing activities (25,583) (140,691) (25,583) (140,691)
______ ______ ______ ______
Increase/(decrease) in cash and cash
equivalents in the year 23,446 (60,362) 37,637 (77,778)
_ _____ _ _
Cash and cash equivalents at the beginning of
the year 94,746 155,108 66,272 144,050
_ _ _ _
Total cash and cash equivalents at the end
of the year 118,192
______		 94,746
______		 103,909
______		 66,272
______

The notes form part of these financial statements

10

LifeChurch Manchester (Registered number: 5392860)

Notes to the Financial Statements For the year ended 31[st] March 2021

1. STATUTORY INFORMATION

LifeChurch Manchester is a private charitable company, limited by guarantee, registered in England and Wales. The charitable company’s registered number and registered office can be found on the Report of the Trustees. LifeChurch Manchester is a public benefit entity.

The presentation currency for the financial statements is Pound Sterling (£).

2. ACCOUNTING POLICIES

Basis of preparation

The financial statements have been prepared in accordance with the provisions of Section 1A “Small Entities” of Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”, the Companies Act 2006 and the Charities SORP (FRS 102). The financial statements have been prepared under the historical cost convention.

Preparation of the accounts on the going concern basis

The Trustees have reviewed the circumstances of the charitable group and consider that adequate resources continue to be available to fund the activities of the Church, and of the LifeCentre, for the foreseeable future. The Trustees are of the opinion, therefore, that it remains appropriate to prepare the consolidated accounts on a going concern basis.

Group financial statements

The financial statements consolidate the results of the charity and its wholly owned subsidiary LifeCentre Events Limited on a line-by-line basis. A separate Statement of Financial Activities and Income and Expenditure account for the charity has not been presented because the charity has taken advantage of the exemption afforded by section 408 of the Companies Act 2006.

Incoming resources

All incoming resources are included on the Statement of Financial Activities when the group is legally entitled to the income and the amount can be quantified with reasonable accuracy.

Investment income comprises of interest receivable. Deferred incoming resources consist of amounts invoiced in advance for the hiring of facilities relating to the trading subsidiary company. Activities for generating funds relates to the income of the subsidiary undertaking.

Grants are recognised on a receivable basis when there is evidence of entitlement, receipt is probable, and its amount can be measured reliably.

Resources expended

Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to particular headings, they have been allocated to activities on a basis consistent with the use of resources. Expenditure includes any VAT which cannot be recovered.

Costs of generating funds relates to the expenditure of the subsidiary undertaking. Charitable activities relates to expenditure incurred in the furtherance of the charitable objectives.

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include telephone & website, photocopying, stationery and office costs. The costs for employing support staff are included in staff costs within note 8 to the financial statements.

Governance costs

Governance costs comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice.

11

LifeChurch Manchester (Registered number: 5392860)

Notes to the Financial Statements For the year ended 31[st] March 2021

Volunteers

The value of services provided by volunteers is not incorporated into these financial statements. Further details of the contribution made by volunteers can be found in the Trustees’ Annual Report.

Tangible fixed assets

Individual fixed assets costing £1,000 or more are capitalised at cost and depreciated on a straight-line basis over the estimated useful lives as follows:

estimated useful lives as follows:
Freehold property - 50 years
Plant and machinery - 4 years
Fixtures, fittings & equipment - 4 years

Impairment reviews are carried out when there is some indication that the carrying amount of a functional fixed asset is below its net book value.

Fixed asset i nvestments

Investments are stated at historical cost. Fixed asset investments includes cash deposits with a maturity date 12 months or more from the balance sheet date.

Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Cash at bank and in hand

Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of four months or less from the date of acquisition or opening of the deposit or similar account.

Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are recognised at their settlement amount after allowing for any trade discounts due.

Included in creditors are interest free concessionary loans which are recognised at the amount received/repayable.

Operating leases

Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight-line basis over the period of the lease.

Taxation

As a registered charity, the company benefits from rates relief and is generally exempt from Income Tax, Corporation Tax and Capital Gains Tax, but not Valued Added Tax.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted by the year end and that are expected to apply to the reversal of the timing differences.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that these will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Pensions

The charity operates defined contribution pension schemes. Contributions payable to the charity’s pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

12

LifeChurch Manchester (Registered number: 5392860)

Notes to the Financial Statements For the year ended 31[st] March 2021

Fund accounting

Unrestricted funds are those funds for use at the discretion of the Trustees in furtherance of the general objective of the charity.

Some of the unrestricted funds have been designated by the Trustees for specific purposes.

Restricted funds are subjected to restrictions on their expenditure imposed by the donor or through the terms of the appeal. It is the policy of the charity for any tax reclaimed on all types of gift aid payments to be retained by the charity and placed in the unrestricted funds, unless otherwise specifically requested by the donor.

Support costs include telephone & website, photocopying, stationery and office costs.

Company Status

LifeChurch Manchester is a company limited by guarantee. The members of the company are the Trustees. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.

Related party transactions

The company has taken advantage of the exemption in Financial Reporting Standard No. 8 ‘Related Party Disclosures’ not to disclose transactions with group companies which are eliminated on consolidation in the group financial statements.

3. DONATIONS AND GRANTS RECEIVED

Unrestricted Restricted 2021 2020
Funds Funds Total Total
£ £ £ £
Gifts & offerings 395,539 18,157 413,696 416,126
Gift aid 81,805 - 81,805 75,819
Grants received 92,223 - 92,223 1,902
_ ______ _ _
569,567
 18,157
 587,724
 493,847

Grants received during the year consist of HMRC Coronavirus Job retention Scheme grants and HMRC Coronavirus Statutory Sick Pay Rebate Scheme grants.

13

LifeChurch Manchester (Registered number: 5392860)

Notes to the Financial Statements For the year ended 31[st] March 2021

4. INCOME FROM TRADING OPERATIONS

As reported in subsidiary

financial statements

2021 2020
£ £
Turnover 103,540 289,931
Cost of sales (2,105) (38,033)
_ _
Gross profit 101,435 251,898
Other income 77,827 1,620
Operating costs (165,906) (222,760)
Governance costs (see note 10) (750) (750)
Taxation (502) -
_ _
Profit/(loss) for the year 12,104 30,008
_ _

The charitable company owns 100% of the share capital of LifeCentre Events Limited, a company registered in England & Wales (08196649). The company carries out the provision of supporting facilities and services to its parent company. The trading results are set out above. The results of the subsidiary company are included in these financial statements.

During the year, LifeCentre Events Limited made donations to the parent charitable company of £57,120 (2020: £76,700). This donation has been eliminated from the Consolidated Statement of Financial Activities.

At the 31[st] March 2021 the aggregate amount of this company’s assets, liabilities, share capital and reserves was:

Fixed assets
Current assets
Creditors: amounts falling due within one year
Provisions for liabilities
Share capital and reserves		 2021
2020
£
£
4,299
2,116
63,225
57,050
(17,418)
(21,666)
(502)
-
_
_
49,604
37,500


49,604
37,500

14

LifeChurch Manchester (Registered number: 5392860)

Notes to the Financial Statements

For the year ended 31[st] March 2021

5 . INVESTMENT INCOME

All unrestricted funds

Deposit account interest
CHARITABLE ACTIVITIES
Unrestricted
Restricted
Funds
Funds
£
£
Maximise offering
-
395
LifeTots
-
-
LifeKids & LifeYouth
-
-
Life Church Heald Green
9,645
-
Journey counselling
1,770
-
Other
417
-
_
_
11,832
395

 2021
£
967
_
967

2021
Total
£
395
-
-
9,645
1,770
417
_
12,227
 _ 2020
£
585
______
585
2020
Total
£
21,484
2,624
18,109
14,768
2,697
1,079
_
60,761

6. CHARITABLE ACTIVITIES

  1. OTHER INCOME

All unrestricted funds

Insurance proceeds
Other income
 2021
Total
£
35,588
208
_

35,796
 2020
Total
£
-
405
_
405

15

LifeChurch Manchester (Registered number: 5392860)

Notes to the Financial Statements

For the year ended 31[st] March 2021

8. STAFF COSTS

All unrestricted funds

All unrestricted funds
2021 2020 2021 2020
Group Group Charity Charity
£ £ £ £
Wages and salaries 308,515 334,133 222,097 230,173
Social security costs 18,145 21,617 14,074 16,731
Pensions 30,389 31,574 22,469 23,001
_ _ _ _
357,049
 387,324
 258,640
 269,905

There were no employees with employee benefits of £60,000 or more in the year (2020: none).

The key management personnel of the parent charity, and of the group, comprise the Trustees, Senior Leader, Associate Pastor, Missions Director and Operations Director. The total employee benefits of the key management personnel of the group were £159,670 (2020: £165,510).

The average number of employees was as follows:

Charitable activities
Support activities
 2021
7
15
_

22
 2020
9
15
_
24

16

LifeChurch Manchester (Registered number: 5392860)

Notes to the Financial Statements For the year ended 31[st] March 2021

9. CHURCH OPERATING EXPENSES

Unrestricted Restricted 2021 2020
Funds Funds Total Total
£ £ £ £
Ministry costs
Travel 127 - 127 4,217
Mission and outreach 41,249 20,318 61,567 109,536
Gifts and donations 26,838 - 26,838 26,290
Youth, children & students 6,009 - 6,009 27,186
Office and administration costs
Use of premises 18,204 - 18,204 32,134
Insurance 5,070 - 5,070 4,639
Building maintenance 11,493 - 11,493 25,848
Telephone & website 3,455 - 3,455 3,366
Photocopying, stationery & office 9,150 - 9,150 10,342
Sundry expenses 1,889 - 1,889 4,383
Depreciation of equipment 179 - 179 282
Depreciation of building- 66,164 - 66,164 66,073
Mortgage & loan interest 16,234 - 16,234 21,659
Bank & finance charges 138 - 138 604
Legal & professional fees 684 - 684 -
Governance costs (see note 10) 6,296 - 6,296 4,555
_ _ _ _
213,179
 20,318
 233,497
 341,114

Support costs include telephone & website, photocopying, stationery and office costs. The costs for employing support staff are included in staff costs.

10. GOVERNANCE COSTS

All unrestricted funds

Auditors’ remuneration
Auditors’ remuneration – non audit fees
Irrecoverable VAT
 2021
Group
£
3,210
2,797
1,039
_

7,046
 2020
2021
2020
Group
Charity
Charity
£
£
£
3,150
3,210
3,150
1,396
2,047
646
759
1,039
759
_
_
_
5,305
6,296
4,555

17

LifeChurch Manchester (Registered number: 5392860)

Notes to the Financial Statements For the year ended 31[st] March 2021

11. TRUSTEES’ REMUNERATION & EXPENSES

Remuneration including pension contributions
Mr A J Barclay-Watt £50,001 - £60,000
Mr A J Cutteridge £40,001 - £50,000
Mr N H Matthews £20,001 - £30,000

Trustees receive remuneration in respect of services they provide as staff and not in respect of their services as a Trustee.

Two (2020: four) Trustees were reimbursed £575 (2020: £4,576) for travel & church activity expenses during the year.

The remuneration of Trustees is in accordance with the Trust Deed which stipulates that the number of remunerated Trustees should never be a majority.

The number of Trustees to whom retirement benefits were accruing was as follows:

2021 2020
Money purchase schemes 3
____		 3
____

12. RESULTS OF CHARITABLE COMPANY

As permitted by Section 408 of the Companies Act 2006, the parent company’s Income and Expenditure Account has not been included in these financial statements. The parent company’s surplus for the financial year was £123,870 (2020: £19,656).

18

LifeChurch Manchester (Registered number: 5392860)

Notes to the Financial Statements For the year ended 31[st] March 2021

13. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted Restricted Total
Funds Funds Funds
£ £ £
Income from:
Donations 458,969 34,878 493,847

Charitable activities		 39,277 21,484 60,761

Commercial trading operations		 289,931 - 289,931
Investment income 585 - 585
Other income 405 - 405
______ ______ ______
Total income 789,167 56,362 845,529
______ ______ ______
Expenditure on:
Cost of raising funds:
Cost of goods sold and other costs
 184,843 - 184,843
Charitable activities:
Staff costs
 269,905 - 269,905
Church operating expenses 291,152 49,962 341,114
______ ______ ______
Total expenditure 745,900 49,962 795,862
_ _ _
Net movement in funds before taxation 43,267 6,400 49,667
Taxation - - -
_ _ _
Net movement in funds after taxation 43,267 6,400 49,667
RECONCILIATION OF FUNDS
Total funds brought forward 1,592,786 6,914 1,599,700
_ _ _
Total funds carried forward 1,636,053
 13,314
 1,649,367

19

LifeChurch Manchester (Registered number: 5392860)

Notes to the Financial Statements For the year ended 31[st] March 2021

14. TANGIBLE FIXED ASSETS
Freehold Plant and Fixtures, fittings
Group property machinery & equipment Total
£ £ £ £
COST:
At 1stApril 2020 3,308,201 4,436 156,628 3,469,265
Additions - - 14,676 14,676
_ _ _ _
At 31stMarch 2021 3,308,201 4,436 171,304 3,483,941
DEPRECIATION:
At 1stApril 2020 460,290 4,436 154,512 619,238
Charge for year 66,164 - 792 66,956
_ _ _ _
526,454 4,436 155,304 686,194
At 31stMarch 2021
NET BOOK VALUE:
At 31stMarch 2021 2,781,747 - 16,000 2,797,747
_ _ _ _
At 31stMarch 2020 2,847,911 - 2,116 2,850,027
_ _ _ _

The Baptist Union Corporation Limited holds the title to the property on trust for the current and future congregations of the church. They recognise that, whilst they hold legal title to the property, the local church should recognise the asset, as well as any liabilities.

It is likely that there is a material difference between the open market value of the charity’s property and its book value. The amount of such differences cannot be ascertained without incurring significant costs which, in the opinion of the Trustees, is not justified in terms of the benefit to the user of the accounts. The charity’s buildings have an insured value of £6,035,980.

£6,035,980.
Freehold Fixtures, fittings
Charity property & equipment
 Total
£ £ £
COST:
At 1stApril 2020 3,308,201 120,746 3,428,947
Additions - 11,880 11,880
_ _ _
At 31stMarch 2021 3,308,201 132,626 3,440,827
DEPRECIATION:
At 1stApril 2020 460,290 120,746 581,036
Charge for year 66,164 179 66,343
_ _ _
At 31stMarch 2021 526,454 120,925 647,379
NET BOOK VALUE:
At 31stMarch 2021 2,781,747 11,701 2,793,448
_ _ _
At 31stMarch 2020 2,847,911 - 2,847,911
_ _ _

20

LifeChurch Manchester (Registered number: 5392860)

Notes to the Financial Statements For the year ended 31[st] March 2021

15. FIXED ASSET INVESTMENTS

Fixed term deposit
Shares in group undertakings
 2021
Group
£
60,000
-
_

60,000
 2020
2021
2020
Group
Charity
Charity
£
£
£
-
60,000
-
-
1
1
_
_
_
-
60,001
1

Cash held on fixed term deposit with United Trust Bank has a maturity date of 12[th] September 2022.

The charity’s investment in the share capital of LifeCentre Events Limited is detailed in note 4 of the accounts.

16. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade debtors
Prepayments & accrued income
Other debtors
VAT		 2021
Group
£
11,220
19,013
44,908
359
_
75,500
 2020
2021
Group
Charity
£
£
27,403
-
24,147
18,647
7,186
7,910
-
-
_
_
58,736
26,557
 2020
Charity
£
762
23,766
5,630
-
_
30,158

Other debtors includes insurance proceeds of £34,000 (2020: £nil) relating to a loss of income claim due to Covid19.

21

LifeChurch Manchester (Registered number: 5392860)

Notes to the Financial Statements For the year ended 31[st] March 2021

17. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021 2020 2021 2020
Group Group Charity Charity
£ £ £ £
Trade creditors 5,301 5,987 3,617 3,746
Taxation and social security 3,991 10,628 3,991 5,553
Other creditors 4,478 4,017 4,089 3,697
Accruals and after date payments 12,824 8,449 10,190 7,607
Deferred income 12,712 13,188 - -
Bank loan 52,158 22,845 52,158 22,845
Concessionary loan - 60,000 - 60,000
______ ______ ______ ______
91,464 125,114 74,045 103,448

Income is deferred when a service, such as the hiring of a conference room, has been invoiced in advance of the date that the room is hired for. If, at the year end, the hire has not taken place but the invoice has been raised, the income is carried forward and released when the hire takes place.

The bank loan is to be repaid in full by 31[st] January 2023. The interest rate on the loan is 2.17% over Barclays Base Rate.

The bank loan is secured on the LifeCentre building.

18. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Group & Charity

2021 2020
£ £
Bank loan (repayable by instalments) in 2-5 years 644,132 699,028
Concessionary loans:
– falling due in more than 5 years 530,000 530,000
______ ______
1,174,132
 1,229,028

Concessionary loan of £530,000 (2020: £530,000) is secured on the LifeCentre building.

22

LifeChurch Manchester (Registered number: 5392860)

Notes to the Financial Statements For the year ended 31[st] March 2021

19. SECURED DEBTS

The following secured debts are included in creditors:
2021 2020
£
£
Bank loan 696,290 721,873
Concessionary loan 530,000 530,000
______ _
1,226,290 1,251,873

All secured debts are secured on the land & buildings of the charitable company.

20. RESERVES

RESERVES
Group
1st April Incoming Resources Movement 31st March
2020 Resources Expended in provisions Transfers 2021
£ £ £ £ £
Unrestricted funds:
General fund 1,624,351 702,240 (567,718) (502) (41) 1,758,330
Designated funds 11,702 19,462 (15,742) - 41 15,463
_ _ _ _ _ _
1,636,053 721,702 (583,460) (502) - 1,773,793
Restricted funds 13,314 18,552 (20,318) - - 11,548
_ _ _ ______ ______ _
1,649,367 740,254 (603,778) (502) - 1,785,341

Designated funds relate to reserves that are earmarked by the Trustees for use towards future Church activities, as well as a number of local and wider community causes. Restricted funds relate to fund held on behalf of Maximise Sphere.

Comparative net movement in funds included in the above are as follows:

1stApril Incoming Resources Movement 31stMarch
2019 Resources Expended in provisions Transfers 2020
£ £ £ £ £
Unrestricted funds:
General fund 1,581,774 786,194 (743,617) - - 1,624,351
Designated funds 11,012 2,973 (2,283) - - 11,702
_ _ _ _ _ _
1,592,786 789,167 (745,900) - - 1,636,053
Restricted funds 6,914 56,362 (49,962) - - 13,314
_ _ _ ______ ______ _
1,599,700 845,529 (795,862) - - 1,649,367

23

LifeChurch Manchester (Registered number: 5392860)

Notes to the Financial Statements For the year ended 31[st] March 2021

21. OPERATING LEASE COMMITMENTS

Amounts falling due:
Less than one year
Between two and five years
More than five years		 2021
£
1,097
4
110
__
1,211
____		 2020
£
4,147
4
111
__
4,262
____

22. RELATED PARTY DISCLOSURES

The charity is controlled by the Trustees. See note 11 for details of the Trustees’ remuneration and expenses. Pension contributions paid on behalf of Trustees during the year was £10,116 (2020: £11,054). During the year, the Trustees and other related parties made donations to the charity, without conditions, totalling £38,659 (2020: £42,430).

Life Church Heald Green (LCHG) is a registered charity that, during the year, was controlled by four Trustees of Life Church Manchester; N Matthews, P Flatman, D Fleming and D Ogilvie. During the year, LifeChurch Manchester paid expenses on behalf of LCHG of £1,966 (2020: £4,813). N Matthews resigned as a Trustee of LifeChurch Manchester on 17[th] August 2020, D Fleming resigned as a Trustee of LifeChurch Manchester on 16[th] November 2020 and D Ogilvie resigned as a Trustee of LifeChurch Manchester on 18[th] January 2021.

During the year, LifeChurch Manchester employed the services of close family members of Trustees A J BarclayWatt, N H Matthews and A J Cutteridge. These related parties received employee benefits during the year totalling £3,647 (2020: £5,821).

23. APB ETHICAL STANDARD – PROVISIONS AVAILABLE FOR SMALL ENTITIES

In common with many other businesses of our size and nature, we use our auditors to prepare and submit returns to the tax authorities and assist with the preparation of the financial statements.

24. PENSION COMMITMENTS

The charity operates defined contribution pension schemes for its employees. The assets of the schemes are held separately from those of the group in independently administered funds. Contributions payable for the year are charged to the Statement of Financial Activities.

The pension charge included in the Statement of Financial Activities for the year was £30,389 (2020: £31,574).

24

LifeChurch Manchester (Registered number: 5392860)

Notes to the Financial Statements For the year ended 31[st] March 2021

25. RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITIES

2021 2020 2021 2020
Group Group Charity Charity
£ £ £ £
Net movement in funds 135,974 49,667 123,870 19,656
Add back depreciation charge 66,956 66,685 66,343 66,355
Decrease/(increase) in trade
and other debtors (16,764) (3,219) 3,601 3,768
Increase/(decrease) in trade
and other creditors (62,963) (25,811) (58,714) (22,319)
Increase in provisions for
liabilities and charges 502 - - -
_ _ _ _
Net cash used in operating activities 123,705
 87,322
 135,100
 67,460

25