2022-08-31-accounts

LF Foundation (AKA LF Fountain of Grace)

16 BEECH ROAD, BIRMINGHAM B17 9TD

TRUSTEE’S ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31ST AUGUST 2022

1

LF Foundation (AKA LF Fountain of Grace)

16 BEECH ROAD, BIRMINGHAM B17 9TD

	Page
Corporate Information	3
Board of Trustee’s Report	4
Independent Examiner’s Report	7
Consolidated Statement of Financial Activities	8
Consolidated Balance Sheet	9
Consolidated Cash Flow Statement	10
Accounting Policies	11
Notes	12

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Corporate Information

Registered Charity Number:	1136499
Registered Company Number:	06980686
Registered Office:	16 Beech Road
	Birmingham, B17 9TD
Principal Office:	Graceland, Norton Street
	Hockley, Birmingham
	B18 5RE
Board of Trustees:	Mr Joseph Adegbenro Olaiya
	Dr Sola Adeaga
	Mr Daniel Ihiabe
	Mrs Theodora Adebanjo
	Mr Segun Olatayo Moses
	Dr Robin Lawrence
Bankers:	HSBC Bank Plc
	Barclays Bank Plc

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Board of Trustee’s Report

1.0 Introduction

The Trustees, who are also directors of the charity for the purposes of the Companies Act 2006, present their annual report and financial statements of the charity for the year ended 31st August 2022. The Trustees have adopted the provisions of the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard for Smaller Entities (the FRSSE) (effective 1 January 2015) in preparing the report and financial statement of the charity.

1.1 Public Benefit Statement

The Trustees confirm that they have complied with the duty in section 4 of the Charites Act 2011 to have due regard to the Charity Commission’s guidance on public benefit "Charites and Public Benefit".

1.2 Structure, Governance and Management

LF Foundation is a Charitable company limited by guarantee, incorporated on 4 August 2009 and commenced operations with effect from 1 September 2009.

The Charity is controlled by its governing document, memorandum and articles or association and is controlled by a board of trustees whose members are elected at the annual general meeting and are directors for the purposes of company law and trustee for the purposes of charity law.

New trustees are appointed on the basis of the contribution that they will make to the governance of the organization and the skills that they will contribute. They are provided with the copies of the charity commissions’ guidance to trustees and given an introduction to the activities of the charity by the existing board. Existing trustees are provided with training as and when required.

1.3 Objectives and Activities

The objects for which the company is established, as set out in the Memorandum of Association, are: “The advancement of the Christian religion for the benefit of the public, mainly but not exclusively, by means of establishing churches, ministries, community centres, educational institutions, broadcasting Christian messages of an evangelistic and teaching nature as well as the provision of lectures and conferences to enlighten others about the Christian religion”

1.4 Achievements and Performance

Every month we run an average of 25 diverse events, some targeted to different groups and others open to everyone. We are not only concerned about spiritual matters but are also involved in the day-to-day matters that affect our members and the communities around us. We are very focused on bringing positive transformation to people through teachings, preaching, prayer meetings, pastoral care, running holiday clubs for children, providing café services to the less privileged in our community, film shows, business conferences, seminars and talks, support for students through various types of sponsorships and assistance, skills acquisition programmes, financial empowerment activities, mentoring and coaching, etc. All these we offer to the community.

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Board of Trustee’s Report

We provide free spiritual guidance and support, intercessory prayers, training and development (seminars, conferences, workshops, talks) etc on personal and professional development, leadership and management, skills acquisition, relationship management, higher living and lifestyle choices, café services, clubs, sponsorship support, and other programmes and events that contribute to the physical, mental, emotional and spiritual transformation and empowerment of people.

During the reporting period, we were able to achieve these objectives with several outreach programmes that were organised within the Harborne community and UK & Ireland.

These events were successful in increasing engagement with the community thereby enabling the charity to reach out to more individuals than anticipated.

1.5 Financial Review

Total income received was £355,297. This income derives principally from the activities of advancing the Christian religion by way of donations from partners and individuals who attend the programmes held.

Total spending on charitable expenditure at year end was £249,054 resulting in a surplus of £106,244.

1.6 Reserve Policy

The Trustees considers that there are sufficient and adequate reserves held at the year end to manage ongoing operations and are aware of the need to establish a reserves policy to maintain a balance on unrestricted funds.

The trustees' policy is to have unrestricted and uncommitted funds (cash free reserves) of £22, 500 — £45,000 to cover 3 to 6 months of resources expended. They feel that this would enable the current activities to continue if there is a significant drop in funding. It would obviously be necessary to then consider how the funding would be replaced or activities changed.

1.7 Volunteers

While it is impossible to place a specific financial value on the contribution of our volunteers, the work we do will simply not be possible without them. We remain indebted to the commitment of over 40 volunteers.

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Board of Trustee’s Report

1.8 Trustees’ Responsibilities

The trustees are responsible for preparing the annual report and the financial statements in accordance with applicable law and 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 affairs of the charity and of the net income or expenditure of the charity for the year. In preparing these financial statements the trustees are required to:

• Select suitable accounting policies and then apply them consistently;

• Make judgments and estimates that are reasonable and prudent;

• State whether applicable accounting standards have been followed, subject to any material

• departures disclosed and explained in the financial statements; and

• Prepare the financial statements on the going-concern basis unless it is inappropriate to

• presume that the charity will continue in business.

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

This report was approved by the Board of Trustees on 20/02/2023 and signed on their behalf by:

Full Name: Mrs Theodora Adebanjo

Signature:

Position: Trustee Date: 20/02/2023

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Independent Examiner’s Report

Report to the trustees/members of: LF Foundation On accounts for the year ended: 31st August 2022 Charity No: 1136499

Respective responsibilities of trustees and examiner

The charity’s trustees are responsible for the preparation of the accounts. The charity’s trustees consider that an audit is not required for this year under section 144 of the Charities Act 2011 (the Charities Act) and that an independent examination is needed.

It is my responsibility to:

• examine the accounts under section 145 of the Charities Act,

• to follow the procedures laid down in the general Directions given by the Charity Commission (under section 145(5)(b) of the Charities Act), and

• to state whether particular matters have come to my attention.

Basis of independent examiner’s statement

My examination was carried out in accordance with general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a ‘true and fair’ view and the report is limited to those matters set out in the statement below.

Independent examiner’s statement

In connection with my examination, no matter has come to my attention:

• (1) which give me reasonable cause to believe that in, any material respect, the requirements:

• to keep accounting records in accordance with section 130 of the Charities Act;

• to prepare accounts which accord with the accounting records and comply with the accounting requirements of the Charities Act have not been met; or

• (2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.

Signed: Date: 20/02/2022

Name: Tobi Labeodan FCCA, for and on behalf of The Accounting Club Ltd

Relevant professional qualification(s) or body (if any): ACCA

Address: Ground Floor, Synium House, r/o 94-96 High Street, Henley in Arden B95 5FY

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Consolidated Statement of Financial Activities: Year Ended 31st August 2022

Notes Income: Donations and legacies 1 Other income 1 Total Income Total Income Expenditures on: Charitable Activities 2 Other Charitable Activities 2 Other Costs 2 Total Expenditures Net income/(expenditure) Transfers between funds Other recognised gains/(losses): Gains/(losses) on revaluation of fixed assets Gains/(losses) on investment assets Net movement in funds Reconciliation of funds: Total funds brought forward at 1 September Total funds carried forward at 31 August	2022 2022 2022 Unrestricted Funds Restricted Funds Total Funds £ £ £ 275,171 - 275,171 80,127 - 80,127 355,297 - 355,297 355,297 - 355,297 236,526 - 236,526 - - - 12,528 - 12,528 249,054 - 249,054 106,244 - 106,244 - - 106,244 - 106,244 49,847 49,847 156,091 156,091	2021 2021 2021
		Unrestricted Funds Restricted Funds Total Funds
		£ £ £
		172,506 172,506
		52,237 52,237
		224,743 - 224,743
		224,743 - 224,743
		207,585 207,585
		- -
		3,437 3,437
		211,022 211,022
		13,720 - 13,720
		-
		-
		13,720 - 13,720
		36,127 36,127
		49,847 49,847

LF Foundation uses the exemption conferred by section 408 of the Companies Act 2006 in not preparing a separate Income and Expenditure Account for LF Foundation as a separate entity.

The net surplus / (deficit) for LF Foundation for the year ended 31 August 2022 was £106,244

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Consolidated Statement of Financial Position: Year Ended 31st August 2022

Notes Fixed Asset Tangible assets 3 Total Fixed Asset Current Assets Loans & Advances Accrued Income Cash at bank and in hand Other Debtors Total Current Assets Creditors: amounts falling due within one year Other Creditors Other Current Liabilities Total Creditors: amounts falling due within one year Net current assets (liabilities) Total assets less current liabilities Creditors: amounts falling due after more than one year Other Non-Current Liabilities Total Creditors: amounts falling due after more than one year Total net assets (liabilities) The funds of the charity: General reserves Restricted reserves Surplus / (Deficit) for the year Total charity funds	LF Foundation 2022 2021	LF Foundation Group
		2022 2021
	£ £ 29,776 4,287	£ £
		68,791 27,194
	29,776 4,287 25,115 3,415 39,177 26,657 35,942 19,243 82,649 22,061	68,791 27,194
		41,115 6,415
		39,177 26,657
		41,646 28,745
		28,587 27,974
	182,882 71,375 28,855 25,425 6,292 3,716	150,524 89,791
		30,577 54,261
		6,292 3,716
	35,148 29,141	36,869 57,977
	147,735 42,234	113,656 31,814
	177,511 46,521 26,205 1,459	182,446 59,008
		26,355 9,161
	26,205 1,459	26,355 9,161
	151,306 **45,062 **	156,091 49,847
	45,062 31,491 - - 106,244 13,570
		49,847 36,127
		- -
		106,244 13,720
	151,306 45,062	156,091 49,847

9

Consolidated Cash Flow Statement: Year Ended 31st August 2022

Operating Activities Net Income Adjustments: Net Income to Net Cash provided by operations: Accrued Income Prepayments & Debtors Depreciation Creditors Accruals Total Adjustments: Net cash provided by operating activities Investing activities Buildings (Capitalised Lease) Furniture Fixtures & Fitttings Motor Vehicles Machinery & Equipment Sound & Musical Equips Net cash provided by investing activities Financing activities Hire Purchase Reserves Net cash provided by financing activities Net cash increase for period Cash at beginning of period Net cash increase for period	2022 £ 106,244 (12,520) (35,313) 17,966 (20,508) (600) (50,976) 55,269 - (1,280) (37,304) (19,409) (1,570) (59,563) 17,195 - 17,195 12,901 28,745 41,646	2,021
		£
		13,720
		(20,170)
		(5,000)
		7,950
		18,458
		600
		1,838
		15,558
		-
		88
		-
		(17,472)
		(3,780)
		(21,164)
		5,297
		5,297
		(309)
		29,054
		28,745

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Accounting Policies

Accounting conventions

The financial statements are prepared in compliance with Companies Act 2006, the Charities Act 2011, the Charities Statement of Recommended Practice (FRSSE) (effective 1 January 2015).

Basis of consolidation

The financial statements of LF Foundation’s subsidiary, Living Faith Foundation, are consolidated with the financial statements of LF Foundation on a line-by-line basis.

Living Faith Foundation, a company limited by guarantee, is considered a subsidiary of LF Foundation, since LF Foundation controls the company through its 100% membership of the board of directors.

Income

Revenue is recognised in the period in which the charity is entitled to receipt once the amount can be measured with reasonable certainty.

Expenses

Expenditure is included in the Statement of Financial Activities (SoFA) on an accruals basis and is recognised at the point when a legal or constructive obligation arises. The majority of costs are directly attributable to specific activities. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Fixed assets

Fixed assets	Fixed assets
Fixed assets with an individual purchase of £250 or more are capitalised and stated at cost less depreciation
which is provided at rates	calculated to write off the cost of each asset over its expected useful life as follows:
Fixtures and fittings	20%
Equipment	20%
Vehicles	20%
Building	2%

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Notes

1. Income

1. Income
Income Donations and legacies Total donations & legacies Other income Gift Aid Receipts - HMRC Interest Earned Grants Received Events and Conference Receipts Total other income Total Income 2. Expenditure Resources Expended Cost of Charitable Activities Premises Utilities Travel Motoring & transportation Insurance Administration Professional fees and services Advertising Finance charges Operations Honorarium Depreciation Outreach Levies & Dues Welfare & Benevolence Charitable Donations Total Charitable Activities Other Costs Legal fees Accountancy fees Total Other Costs		2022 £ 275,171 275,171 56,553 2 1,290 22,282 80,127 355,297 2022 £ 43,318 3,591 52,127 5,126 3,889 60,102 8,189 4,297 2,117 19,288 8,627 12,570 6,487 - 1,615 5,182 236,526 9,493 3,035 12,528		2021 £ 172,506 172,506 20,170 0 32,067 - 52,237 224,743
				2021
				£
				48,837
				5,055
				10,532
				5,703
				1,224
				40,320
				6,709
				5,006
				1,402
				18,662
				20,708
				10,015
				19,540
				-
				5,468
				8,405
				207,585
				-
				3,437
				3,437

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Notes

3. Tangible assets

Cost At 1 September 2021 Additions Disposals Adjustments At 31 August 2022 Depreciation At 1 September 2021 Charge for the year Adjustments At 31 August 2022 Net Book Value At 31 August 2021 At 31 August 2022	Property £ - - - - - - -	Equipment £ 45,888 22,705 68,593 22,142 5,279 1,727 29,148 23,746 39,445	Motor Vehicle £ 25,991 31,461 57,452 23,259 11,196 (5,843) 28,613 2,732 28,839	Fixtures & Fittings £ 3,943 3,943 3,226 1,490 (1,280) 3,436 717 507	Total £ 75,822 91,851 - -
					129,988
					48,627 17,965 (5,396)
					61,197
					27,195
					68,791

4. Related party transactions

LF Foundation is currently in an operating lease with Immanuel Childcare Ltd where Mrs Theodora Adebanjo, a trustee, is a director of the company.

5. Trustee remuneration & expenses

None of the trustees have been paid any remuneration or received any other benefits from an employment with the charity or a related entity

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Notes

6. Staff cost and numbers

taff cost and numbers
Wages and salaries Social security costs Other emoluments	2022 £ 41,457 6,600 9,064 57,212	2021
		£
		35,594
		2,932
		7,800
		38,525

No employee received remuneration amounting to more than £60,000 in the year

Average number of staff

Pastoral Admin	1 0 1	1
		0
		1

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