OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2023-03-31-accounts

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

Report of the Trustees and

Consolidated Financial Statements for the year ended 31[st] March 2023

for

LifeChurch Manchester

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

Allen Mills Howard Limited Chartered Accountants Lewis House 56 Manchester Road Altrincham Cheshire WA14 4PJ

LifeChurch Manchester (Registered number: 5392860)

Contents of the Financial Statements For the year ended 31[st] March 2023

Page
Report of the Trustees 1 - 4
Report of the Independent Examiner 5
Consolidated Statement of Financial Activities 6
Consolidated Balance Sheet 7 - 8
Consolidated Statement of Cash Flows 9
Notes to the Financial Statements 10 - 29

LifeChurch Manchester (Registered number: 5392860)

Report of the Trustees For the year ended 31[st] March 2023

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 2023. The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association and the Charities Statement of Recommended Practice (“Charities SORP”) (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland; FRS 102) issued in October 2019.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company Number: 05392860 (England and Wales) 05392860 (England and Wales)
Registered Charity Number: 1111303
Registered office: The LifeCentre
235 Washway Road
Sale
M33 4BP
Trustees: M R Smith (Chairman)
A J Barclay-Watt
T H Giles Resigned 13thMarch 2023
P A Flatman
P J Morris
A J Chard
Company Secretary: D J Rolles
Independent Examiner: Mr David Allen
Allen Mills Howard Limited
Chartered Accountants
Lewis House
56 Manchester Road
Altrincham
WA14 4PJ
Bankers: Barclays Bank PLC
Manchester City 9
Leicester
LE87 2BB
Solicitors: Anthony Collins Solicitors LLP
134 Edmund Street
Birmingham
B3 2ES
Keelys Solicitors LLP
28 Dam Street
Lichfield
WS13 6AA

1

LifeChurch Manchester (Registered number: 5392860)

Report of the Trustees For the year ended 31[st] March 2023

Trustees

M R Smith (Chairman) A J Barclay-Watt T H Giles Resigned 13[th] March 2023 P A Flatman P J Morris

A J Chard

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 Senior Leadership Team 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 Senior Leadership Team (SLT), whose membership is currently: Andy Barclay-Watt, Mark Smith, Sarah Smith, Emma Barclay-Watt, Alastair Cutteridge, David Rolles, Helen Allen, Sumbo Campbell, Pete Fox, Sue Fox, Phil Watterson, Derek Hughes, Jon Anelli and Tony Campbell. New SLT members are nominated by the existing SLT and are appointed by Church members. The senior staff are responsible for managing the day-to-day affairs of the Church.

Remuneration of key management personnel

Salaries and other benefits are set by the Trustees’ Remuneration Sub-Committee, which is made up of all the nonsalaried Trustees. They do so in the light of the latest inflation and pay-related economic indicators, and with reference to salary levels in churches and other similar organisations of a comparable size and complexity .

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. Major risks have been reviewed and systems and procedures have been established to manage those risks.

Related parties and co-operation with other organisations

One Trustee received remuneration from the charitable company during the year 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 2023

Objectives and activities during the year

When planning the activities for the year the Trustees have had regard to 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 and achieved to fulfil its charitable objectives in the following ways:

Financial review

The group’s total income for the year amounted to £994,740 (2022: £764,504) and the expenditure amounted to £858,769 (2022: £773,892) giving a surplus before taxation for the year, after depreciation charges of £72,582, of £135,971 (2022: deficit of £9,388). Donations and legacies to the group were £648,000 (2022: £479,320) which includes legacies for £112,682 (2022: £nil).

Income for LifeCentre Events Ltd rose by 15.2% to £309,438 (2022: £268,646). Turnover was £309,410 (2022: £257,429). Expenditure before taxation for LifeCentre Events Ltd (excluding parent charity donations of £78,617 (2022: £151,191) rose to £197,182 from £153,067 in 2022.

Reserves policy and 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. At the balance sheet date, the group held reserves of £1,911,002 (2022: £1,774,872).

At the end of the year, restricted funds totalled £22,204 (2022: £18,591) and relate to Maximise Sphere (£15,454) and a new fund relating to the Heald Green building (£6,750), mentioned further on page four. The charity also has funds which are designated for other causes, including hardship and youth activities, totalling £9,999 (2022: £13,797). These resources are available to be used at the discretion of the trustees.

Reserves freely available after excluding restricted funds, designated funds and funds which cannot be accessed or are connected to the disposal of fixed assets, amount to £207,278 (2022: £187,359).

The outturn of the 2022/23 financial year was a very good one, with the income budget for the Church being exceeded. We had not been clear how well the LifeCentre Events business would recover after the pandemic, but are pleased to report that its income budget was 25% up on budget. The effect of both of these positive performances was a significant surplus where none had been budgeted. Both the latter and savings made through the year have enabled us to reduce our bank mortgage and other loans.

However in the light of the financial uncertainty brought about by the increases in energy costs and the rising base rate, the Trustees decided to increase LifeChurch’s minimum reserves level by 69% to £110,000.

With a strong cash position and realistic plans for the LifeCentre Events business, the Trustees are 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 2023

Plans for Future Periods

During the forthcoming year the Trustees and the church will continue to raise the profile of the charity within the communities of Manchester in order to involve a higher proportion in the activities of the Church and the LifeCentre. In particular, plans are underway to grow LifeChurch’s Heald Green Location’s community activities, with the formation of a ‘community hub’ within its building. This will see the latter being used significantly more for both the church’s community activities, and by local community groups.

LifeChurch Manchester (‘LCM’) uses the building that belongs to a small local Charity, New Life Church Heald Green (‘NLCHG’), for its services in Heald Green, and the legal process is underway that will see NLCHG and its assets becoming part of LCM. Both sets of Trustees anticipate that this exercise will be completed by the end of 2023/24.

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.

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 11[th] September 2023.

……………………………… M R Smith – Trustee

4

Independent Examiner’s Report to the Members of LifeChurch Manchester

I report to the trustees on my examination of the consolidated financial statements of the group comprising LifeChurch Manchester (the 'parent charitable company') and its subsidiary undertaking for the year ended 31[st] March 2023.

Responsibilities and basis of report

As the trustees of the company (and also its directors for the purposes of company law) you are responsible for the preparation of the consolidated financial statements of the group in accordance with the requirements of the Companies Act 2006 ('the 2006 Act’). You have chosen to prepare consolidated accounts for the group and you are satisfied that the accounts of both the parent charitable company and the group are not required by charity law to be audited.

Having satisfied myself that the accounts of the company 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 the consolidated 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.

An independent examination does not involve gathering all the evidence that would be required in an audit and consequently does not cover all the matters that an auditor considers in giving their opinion on the accounts. The planning and conduct of an audit goes beyond the limited assurance that an independent examination can provide. Consequently, I express no opinion as to whether the consolidated accounts present a ‘true and fair’ view and my report is limited to those specific matters set out in the independent examiner’s statement.

Independent examiner's statement

Since the parent charitable company’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Association of Chartered Certified Accountants (ACCA), which is one of the listed bodies.

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, with respect to the group, were not kept as required by section 386 of the 2006 Act; or

  2. the financial statements do not accord with those records; or

  3. the financial statements 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 financial statements 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.

David K Allen FCCA FCA Allen Mills Howard Limited Chartered Accountants Lewis House 56 Manchester Road Altrincham Cheshire WA14 4PJ

12[th] September 2023

5

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 2023
Unrestricted Restricted
Total		 Total
Funds Funds
Funds		 Funds
2023 2022
Notes £ £
£
Income from:
Donations and legacies 3 614,444 33,556
648,000		 479,320
Charitable activities 6 30,478 2,694
33,172		 23,165
Other trading activities 4 309,410 -
309,410		 257,429
Investments 5 3,819 -
3,819		 1,981
Other 7 339 -
339		 2,609
______ ______
______		 ______
Total income 958,490 36,250
994,740		 764,504
______ ______
______		 ______
Expenditure on:
Raising funds
Cost of goods sold and other costs 4 197,182 -
197,182		 153,067
Charitable activities:
Church operating expenses 8 628,950 32,637
661,587		 620,825
______ ______
______		 ______
Total expenditure 826,132 32,637
858,769		 773,892
______ ______
______		 ______
Net movement in funds before taxation 132,358 3,613
135,971		 (9,388)
Taxation 11 159 -
159		 (1,081)
______ ______
______		 ______
Net movement in funds after taxation 132,517 3,613
136,130		 (10,469)
RECONCILIATION OF FUNDS
Total funds brought forward 1,756,281 18,591
1,774,872		 1,785,341
______ ______
______		 ______
Total funds carried forward 1,888,798
______		 22,204
______
1,911,002

______		 1,774,872
______

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.

6

LifeChurch Manchester (Registered number: 5392860)

Consolidated Balance Sheet Consolidated Balance Sheet Consolidated Balance Sheet
For the year ended 31st March 2023
2023 2022 2023 2022
Group Group Charity Charity
Notes £ £ £ £
FIXED ASSETS
Tangible assets 15 2,660,868 2,729,841 2,652,261 2,720,152
Investments 16 - - 1 1
_ _ _ _
2,660,868 2,729,841 2,652,262 2,720,153
CURRENT ASSETS
Stock 17 869 1,365 - -
Investments 18 - 100,711 - 100,711
Debtors 19 79,670 47,528 27,354 27,534
Cash at bank and in hand 216,166 117,962 206,544 116,518
_ _ _ _
296,705 267,566 233,898 244,763
CREDITORS
Amounts falling due within one year 20 185,800 690,952 162,520 672,955
_ _ _ _
NET CURRENT ASSETS/(LIABILITIES) 110,905 (423,386) 71,378 (428,192)
_ _ _ _
TOTAL ASSETS LESS CURRENT
LIABILITIES 2,771,773 2,306,455 2,723,640 2,291,961
CREDITORS
Amounts falling due in more than one year 21 859,347 530,000 859,347 530,000
PROVISIONS FOR LIABILITIES 1,424 1,583 - -
_ _ _ _
TOTAL NET ASSETS 1,911,002 1,774,872 1,864,293 1,761,961
______ ______ ______ ______
FUNDS OF THE CHARITY 23
Unrestricted funds:
General 1,878,799 1,742,484 1,832,090 1,729,573
Designated 9,999 13,797 9,999 13,797
Restricted funds: 22,204 18,591 22,204 18,591
_ _ _ _
TOTAL FUNDS 1,911,002
______		 1,774,872
______		 1,864,293
______		 1,761,961
______

For the year ended 31[st] March 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

7

LifeChurch Manchester (Registered number: 5392860)

Consolidated Balance Sheet For the year ended 31[st] March 2023

The trustees have prepared group financial statements in accordance with section 398 of the Companies Act 2006 and section 138 of the Charities Act 2011. These financial statements are prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies and constitute the annual financial statements required by the Companies Act 2006 and those prepared for circulation to the members of the company.

The financial statements were approved by the Board of Trustees on 11[th] September 2023 and were signed on its behalf by:

…………………………………………. …………………………………………. M R Smith – Trustee P J Morris – Trustee

The notes form part of these financial statements

8

LifeChurch Manchester (Registered number: 5392860)

Statement of Cash Flows and Consolidated Statement of Cash Flows For the year ended 31[st] March 2023

2023 2022 2023 2022
Group Group Charity Charity
Notes £ £ £ £
Cash flows from operating activities
Cash generated from operations 28 207,293 101,592 197,474 114,971
Government grants - 15,854 - 7,441
______ ______ ______ ______
Cash used in operating activities 207,293 117,446 197,474 122,412
Cash flows from investing activities
Purchases of tangible fixed assets (3,609) (11,539) (1,968) (3,666)
Purchases of investments - (40,711) - (40,711)
Interest from investments 3,819 1,981 3,819 1,981
Sales of investments 100,711 - 100,711 -
______ ______ ______ ______
Cash used in investing activities 100,921 (50,269) 102,562 (42,396)
______ ______ ______ ______
Cash flows from financing activities
Repayments of borrowing (305,010) (67,407) (305,010) (67,407)
Loans received 95,000 - 95,000 -
______ ______ ______ ______
Cash used in financing activities (210,010) (67,407) (210,010) (67,407)
______ ______ ______ ______
Increase/(decrease) in cash and cash
equivalents in the year 98,204 (230) 90,026 12,609
Cash and cash equivalents at the beginning of
the year 117,962 118,192 116,518 103,909
_ _ _ ______
Total cash and cash equivalents at the end
of the year 216,166 117,962 206,544 116,518
______ ______ ______ ______
Analysis of cash and cash equivalents
2023 2022 2023 2022
Group Group Charity Charity
£ £ £ £
Cash at bank and in hand 216,166 117,962 206,544 116,518
_ _ _ ______
216,166
______		 117,962
______		 206,544
______		 116,518
______

The notes form part of these financial statements

9

LifeChurch Manchester (Registered number: 5392860)

Notes to the Financial Statements For the year ended 31[st] March 2023

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.

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 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)) - issued in October 2019, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

LifeChurch Manchester meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transactions value unless otherwise stated in the relevant accounting policy note(s).

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.

Legacy income is recognised when sufficient evidence to claim entitlement to the legacy has been received, receipt is probable, and the account can be measured reliably. Receipt is probable when there has been grant of probate, the executors have established that sufficient assets to the estate will enable the legacy to be paid and any conditions attached to the legacy are either within the control of the charity or have been met.

10

LifeChurch Manchester (Registered number: 5392860)

Notes to the Financial Statements For the year ended 31[st] March 2023

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.

Termination benefits

Termination benefits are payable when employment is terminated by the group before the normal retirement date or end of employment contract. Termination costs are recognised in full on the date of termination of the contract.

Governance costs

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

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:

Freehold property - 50 years Plant and machinery - 4 years Fixtures, fittings and 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 twelve months or more from the balance sheet date.

Stocks

Stocks are recognised at the lower of cost and estimated selling price less costs to complete and sell.

Current asset i nvestments

Current asset investments are stated at historical cost. Current asset investments include cash deposits with a maturity date of between four and twelve months 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.

11

LifeChurch Manchester (Registered number: 5392860)

Notes to the Financial Statements For the year ended 31[st] March 2023

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.

Concessionary loans

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.

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 and website, photocopying, stationery and office costs.

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.

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.

12

LifeChurch Manchester (Registered number: 5392860)

Notes to the Financial Statements For the year ended 31[st] March 2023

3. DONATIONS AND GRANTS RECEIVED

Unrestricted Restricted 2023 2022
Funds Funds Total Total
£ £ £ £
Gifts and offerings 418,812 33,556 452,368 393,701
Gift aid 82,950 - 82,950 69,765
Grants received - - - 15,854
Legacies 112,682 - 112,682 -
_ ______ _ _
614,444
 33,556
 648,000
 479,320

Grants received during the year consist of HMRC Coronavirus Job retention Scheme grants.

13

LifeChurch Manchester (Registered number: 5392860)

Notes to the Financial Statements For the year ended 31[st] March 2023

4. INCOME FROM TRADING ACTIVITIES

4.
INCOME FROM TRADING ACTIVITIES
As reported in subsidiary
financial statements
2023 2022
£ £
Turnover 309,410 257,429
Cost of sales (44,360) (17,050)
_ _
Gross profit 265,050 240,379
Other income 28 11,217
Operating costs (32,781) (25,898)
Staff costs (119,181) (109,289)
Governance costs (see note 9) (860) (830)
Taxation 159 (1,081)
Parent charity donation (78,617) (151,191)
_ _
Profit/(loss)for the year 33,798 (36,693)
_ _

The charitable company owns 100% of the share capital of LifeCentre Events Limited, a company registered in England and 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.

At the 31[st] March 2023 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		 2023
2022
£
£
8,607
9,689
62,805
22,803
(23,279)
(17,998)
(1,424)
(1,583)
_
_
46,709
12,911


46,709
12,911

14

LifeChurch Manchester (Registered number: 5392860)

Notes to the Financial Statements For the year ended 31[st] March 2023

5 . INVESTMENT INCOME

All unrestricted funds

Deposit account interest
CHARITABLE ACTIVITIES
Unrestricted
Restricted
Funds
Funds
£
£
Maximise
-
2,694
LifeTots
4,502
-
LifeKids and LifeYouth
3,586
-
Life Church Heald Green
13,357
-
Journey counselling
1,865
-
YLD income
4,229
-
Other
2,939
-
_
_
30,478
2,694

 2023
£
3,819
_
3,819

2023
Total
£
2,694
4,502
3,586
13,357
1,865
4,229
2,939
_
33,172
 _ 2022
£
1,981
______
1,981
2022
Total
£
-
2,089
2,786
10,541
2,412
4,000
1,337
_
23,165

6. CHARITABLE ACTIVITIES

7. OTHER INCOME

All unrestricted funds

Insurance proceeds
Other income
 2023
Total
£
-
339
_

339
 2022
Total
£
2,294
315
_
2,609

15

LifeChurch Manchester (Registered number: 5392860)

Notes to the Financial Statements For the year ended 31[st] March 2023

8. CHURCH OPERATING EXPENSES

Unrestricted Restricted 2023 2022
Funds Funds Total Total
£ £ £ £
Travel 4,311 - 4,311 2,698
Mission and outreach 52,864 32,637 85,501 71,093
Gifts and donations 19,240 - 19,240 17,979
Youth, children and students 17,879 - 17,879 16,572
Staff costs (Note 10) 238,357 238,357 201,899
Use of premises 43,491 - 43,491 34,886
Insurance 7,146 - 7,146 6,074
Building maintenance 25,599 - 25,599 32,382
Bank loan interest 24,641 - 24,641 15,833
Bank and finance charges 2,778 - 2,778 327
Legal and professional fees 10,362 - 10,362 2,407
Sundry expenses 6,961 - 6,961 5,486
Depreciation 69,859 - 69,859 76,048
Support and governance costs (Note 9) 105,462 - 105,462 136,227
Loss on disposal of fixed assets - - - 914
_ _ _ _
628,950
 32,637
 661,587
 620,825

16

LifeChurch Manchester (Registered number: 5392860)

Notes to the Financial Statements For the year ended 31[st] March 2023

9. SUPPORT AND GOVERNANCE COSTS

Group Support Governance 2023 2022
costs costs Total Total
£ £ £ £
Telephone and website 3,717 - 3,717 4,088
Photocopying, stationery and office 10,030 - 10,030 12,224
Staff costs 86,459 - 86,459 113,002
Legal and professional fees - - - 1,550
Independent examiner’s/Auditors’ fees:
Independent examination - 4,376 4,376 3,780
Independent examiner’s/Auditors’ fees:
Other services - 1,740 1,740 2,413
_ _ _ _
100,206
 6,116
 106,322
 137,057
Charity Support Governance 2023 2022
costs costs Total Total
£ £ £ £
Telephone and website 3,717 - 3,717 4,088
Photocopying, stationery and office 10,030 - 10,030 12,224
Staff costs 86,459 - 86,459 113,002
Legal and professional fees - - - 1,550
Independent examiner’s/Auditors’ fees:
Independent examination - 4,376 4,376 3,780
Independent examiner’s/Auditor’s fees:
Other services - 880 880 1,583
_ _ _ _
100,206
 5,256
 105,462
 136,227

17

LifeChurch Manchester (Registered number: 5392860)

Notes to the Financial Statements

For the year ended 31[st] March 2023

10. STAFF COSTS

All unrestricted funds

All unrestricted funds
2023 2022 2023 2022
Group Group Charity Charity
£ £ £ £
Wages and salaries 382,698 352,333 277,462 256,504
Social security costs 29,006 23,164 24,135 18,415
Pensions 32,293 34,672 23,219 25,961
Termination costs - 14,021 - 14,021
_ _ _ _
443,997
 424,190
 324,816
 314,901

There were no employees with employee benefits of £60,000 or more in the year (2022: none).

The key management personnel of the parent charity, and of the group, comprise the Trustees, Senior Leader, Associate Pastor, Operations Director and Location Leaders. The total employee benefits of the key management personnel of the group were £230,826 (2022: £200,173).

The average number of employees was as follows:

Charitable activities
Support activities
 2023
9
21
_

30
 2022
6
20
_
26

11. TAXATION

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

Deferred tax

Accelerated capital allowances 2023
Group
£
(159)
 2022
2023
2022
Group
Charity
Charity
£
£
£
1,081
-
-

18

LifeChurch Manchester (Registered number: 5392860)

Notes to the Financial Statements For the year ended 31[st] March 2023

12. TRUSTEES’ REMUNERATION AND EXPENSES

Gross Employer Employer Total Total
salary NI pension 2023 2022
£ £ £ £ £
Mr A J Barclay-Watt 48,692 5,595 4,869 59,156 58,382
Mr A Cutteridge - - - - 11,834
_ _ _ _ _
48,692 5,595 4,869 59,156 70,216

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

One (2022: one) Trustee was reimbursed £3,274 (2022: £2,193) for travel and subsistence 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:

2023 2022
Money purchase schemes 1
____		 1
____

13. 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 £102,332 (2022: £26,223).

19

LifeChurch Manchester (Registered number: 5392860)

Notes to the Financial Statements For the year ended 31[st] March 2023

14. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted Restricted Total
Funds Funds Funds
2022
£ £ £
Income from:
Donations and grants received 448,331 30,989 479,320
Charitable activities 23,165 - 23,165
Other trading activities 257,429 - 257,429
Investment income 1,981 - 1,981
Other income 2,609 - 2,609
______ ______ ______
Total income 733,515 30,989 764,504
______ ______ ______
Expenditure on:
Cost of raising funds
Cost of goods sold and other costs 43,778 - 43,778
Staff costs 109,289 - 109,289
Charitable activities:
Staff costs 314,901 - 314,901
Church operating expenses 281,978 23,946 305,924
______ ______ ______
Total expenditure 749,946 23,946 773,892
______ ______ ______
Net movement in funds before taxation (16,431) 7,043 (9,388)
Taxation (1,081) - (1,081)
______ ______ ______
Net movement in funds after taxation (17,512) 7,043 (10,469)
RECONCILIATION OF FUNDS
Total funds brought forward 1,773,793 11,548 1,785,341
______ ______ ______
Total funds carried forward 1,756,281
______		 18,591
______		 1,774,872
______

20

LifeChurch Manchester (Registered number: 5392860)

Notes to the Financial Statements For the year ended 31[st] March 2023

15. TANGIBLE FIXED ASSETS

All unrestricted funds

All unrestricted funds
Freehold Plant and Fixtures, fittings
Group property machinery and equipment Total
£ £ £ £
COST:
At 1stApril 2022 3,298,883 4,436 191,046 3,494,365
Additions - - 3,609 3,609
_ _ _ _
At 31stMarch 2023 3,298,883 4,436 194,655 3,497,974
DEPRECIATION:
At 1stApril 2022 590,503 4,436 169,585 764,524
Charge for year 65,978 - 6,604 72,582
_ _ _ _
At 31stMarch 2023 656,481 4,436 176,189 837,106
NET BOOK VALUE:
At 31stMarch 2023 2,642,402 - 18,466 2,660,868
_ _ _ _
At 31stMarch 2022 2,708,380 - 21,461 2,729,841
_ _ _ _

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 £6,909,991.

21

LifeChurch Manchester (Registered number: 5392860)

Notes to the Financial Statements For the year ended 31[st] March 2023

15. TANGIBLE FIXED ASSETS (cont’d)


Charity
COST:
At 1stApril 2022
Additions
At 31stMarch 2023
DEPRECIATION:
At 1stApril 2022
Charge for year
At 31stMarch 2023
NET BOOK VALUE:
At 31stMarch 2023
At 31stMarch 2022
16.
FIXED ASSET INVESTMENTS
Shares in group undertakings
 Freehold Fixtures, fittings
property and equipment Total
£
£
£
3,298,883
144,495
3,443,378
-
1,968
1,968
_
_
_
3,298,883
146,463
3,445,346
590,503
132,723
723,226
65,978
3,881
69,859
_
_
_
656,481
136,604
793,085
2,642,402
9,859
2,652,261
_
_
_
2,708,380
11,772
2,720,152
_
_
_
2023
2022
2023
2022
Group
Group
Charity
Charity
£
£
£
£
-
-
1
1
_
_
_
_
-
-
1
1

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

22

LifeChurch Manchester (Registered number: 5392860)

Notes to the Financial Statements For the year ended 31[st] March 2023

17. STOCKS
2023 2022 2023 2022
Group Group Charity Charity
£ £ £ £
Café stock 869
 1,365
 -
 -
18. CURRENT ASSET INVESTMENTS
All unrestricted funds
2023 2022 2023 2022
Group Group Charity Charity
£ £ £ £
Fixed term cash deposits -
 100,711
 - 100,711
19. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022 2023 2022
Group Group Charity Charity
£ £ £ £
Trade debtors 52,231 18,166 264 812
Prepayments and accrued income 26,703 23,910 26,354 23,563
Other debtors 736 5,452 736 3,159
_ _ _ _
79,670
 47,528
 27,354 27,534

23

Notes to the Financial Statements For the year ended 31[st] March 2023

LifeChurch Manchester (Registered number: 5392860)

20. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023 2022 2023 2022
Group Group Charity Charity
£ £ £ £
Trade creditors 9,066 8,185 4,543 4,708
Taxation and social security 7,494 8,234 7,494 8,234
Other creditors 10,692 6,262 5,978 5,082
Accruals and after date payments 16,484 12,909 13,027 10,215
Deferred income 5,755 8,236 1,478 -
Bank loan 45,000 644,716 45,000 644,716
VAT 6,309 2,410 - -
Concessionary loans 85,000 - 85,000 -
______ ______ ______ ______
185,800 690,952 162,520 672,955

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. There is no deferred income carried forward at the balance sheet date which has not been received during the current financial year.

The bank loan is to be repaid in full by 7[th] February 2028. The interest rate on the loan is 2.3% over Barclays Base Rate.

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

Group and Charity

2023 2022
£ £
Bank loan (repayable by instalments) in 2-5 years 404,347 -
Concessionary loans:
– falling due (not repayable by instalments) in 2-5 years 455,000 530,000
______ ______
859,347
 530,000

Concessionary loans included in notes 20 and 21 are interest free.

24

LifeChurch Manchester (Registered number: 5392860)

Notes to the Financial Statements For the year ended 31[st] March 2023

22. SECURED DEBTS

Group and Charity

The following secured debts are included in creditors:

2023 2022
£ £
Bank loan 449,347 644,716
Concessionary loan 445,000 530,000
______ _
894,347 1,174,716

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

23. RESERVES

Group
1st April Incoming Resources Movement 31st March
2022 Resources Expended in provisions 2023
£ £ £ £ £
Unrestricted funds:
General fund 1,742,484 954,277 (818,121) 159 1,878,799
Designated funds 13,797 4,213 (8,011) - 9,999
_ _ _ _ _
1,756,281 958,490 (826,132) 159 1,888,798
Restricted funds 18,591 36,250 (32,637) - 22,204
_ _ ______ ______ _
1,774,872 994,740 (858,769) 159 1,911,002

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
2021 Resources Expended in provisions 2022
£ £ £ £ £
Unrestricted funds:
General fund 1,758,330 729,890 (744,655) (1,081) 1,742,484
Designated funds 15,463 3,625 (5,291) - 13,797
_ _ _ _ _
1,773,793 733,515 (749,946) (1,081) 1,756,281
Restricted funds 11,548 30,989 (23,946) - 18,591
_ _ ______ ______ _
1,785,341 764,504 (773,892) (1,081) 1,774,872

25

LifeChurch Manchester (Registered number: 5392860)

Notes to the Financial Statements For the year ended 31[st] March 2023

23. RESERVES (Cont’d)

Charity

1st April Incoming Resources Movement 31st March
2022 Resources Expended in provisions 2023
£ £ £ £ £
Unrestricted funds:
General fund 1,729,573 723,456 (620,939) - 1,832,090
Designated funds 13,797 4,213 (8,011) - 9,999
_ _ _ _ _
1,743,370 727,669 (628,950) - 1,842,089
Restricted funds 18,591 36,250 (32,637) - 22,204
_ _ ______ ______ _
1,761,961 763,919 (661,587) - 1,864,293

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
2021 Resources Expended in provisions 2022
£ £ £ £ £
Unrestricted funds:
General fund 1,708,727 612,435 (591,589) - 1,729,573
Designated funds 15,463 3,625 (5,291) - 13,797
_ _ _ _ _
1,724,190 616,060 (596,880) - 1,743,370
Restricted funds 11,548 30,989 (23,946) - 18,591
_ _ ______ ______ _
1,735,738 647,049 (620,826) - 1,761,961

26

LifeChurch Manchester (Registered number: 5392860)

Notes to the Financial Statements For the year ended 31[st] March 2023

24. ANALYSIS OF GROUP NET ASSETS BETWEEN FUNDS

Total
General Designated Restricted Funds
£ £ £ £
Tangible fixed assets 2,660,868 - - 2,660,868
Cash at bank and in hand 192,003 9,999 14,164 216,166
Other net current assets/(liabilities) (113,301) - 8,040 (105,261)
Creditors of more than one year (859,347) - - (859,347)
Provisions for liabilities (1,424) - - (1,424)
_ _ _ _
1,878,588
 9,999
 22,204
 1,911,002
Analysis of group net assets between funds – prior year
Total
General Designated Restricted Funds
£ £ £ £
Tangible fixed assets 2,729,841 - - 2,729,841
Cash at bank and in hand 89,951 13,797 14,214 117,962
Other net current assets/(liabilities) (545,725) - 4,377 (541,348)
Creditors of more than one year (530,000) - - (530,000)
Provisions for liabilities (1,583) - - (1,583)
_ _ _ _
1,742,484
 13,797
 18,591
 1,774,872

25. OPERATING LEASE COMMITMENTS

Group and charity
Amounts falling due:
Less than one year
Between two and five years
More than five years		 2023
£
3,264
4
108
__
3,376
____		 2022
£
3,264
3,267
109
__
6,640
____

Lease payments recognised in expenditure during the year totals £3,264 (2022: £3,593).

27

LifeChurch Manchester (Registered number: 5392860)

Notes to the Financial Statements

For the year ended 31[st] March 2023

26. RELATED PARTY DISCLOSURES

The charity is controlled by the Trustees. See note 12 for details of the Trustees’ remuneration and expenses. Pension contributions paid on behalf of Trustees during the year was £4,869 (2022: £6,215). During the year, the Trustees and other related parties made donations to the charity, without conditions, totalling £39,616 (2022: £57,774).

Life Church Heald Green (LCHG) is a registered charity that was controlled by LifeChurch Manchester during the year and had one mutual trustee, P A Flatman. During the year, LifeChurch Manchester paid expenses on behalf of LCHG of £1,631 (2022: £3,887).

During the year, LifeChurch Manchester employed the services of close family members of Trustees A J BarclayWatt and M R Smith. These related parties received employee benefits during the year totalling £6,828 (2022: £3,367). LifeChurch Manchester also employed the spouse of a member of the group’s key management personnel who received employee benefits totalling £12,367 (2022: £13,099) during the year.

Details of the total employee benefits relating to Key Management Employees is detailed in note 10.

27. 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 £32,293 (2022: £34,672).

28

LifeChurch Manchester (Registered number: 5392860)

Notes to the Financial Statements For the year ended 31[st] March 2023

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

2023 2022 2023 2022
Group Group Charity Charity
£ £ £ £
Net movement in funds before tax 135,971 (9,388) 102,332 26,223
Depreciation charges 72,582 78,531 69,859 76,048
Loss on disposal of fixed assets - 914 - 914
Government grants - (15,854) - (7,441)
Finance costs 24,641 15,833 24,641 15,833
Finance income (3,819) (1,981) (3,819) (1,981)
_ _ _ _
229,375 68,055 193,013 109,596
(Increase)/decrease in stock 496 (1,365) - -
(Increase)/decrease in trade and
other debtors (32,142) 27,972 180 (977)
Increase in trade and
other creditors 9,564 6,930 4,281 6,352
_ _ _ _
Net cash used in operating activities 207,293
 101,592
 197,474
 114,971

29