LIFE CHURCH (EUROPE) FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024
LIFE CHURCH IEUROPE) INDEX TO THE FINANCIAL STATEMENTS for the year ended 31 August 2024 Page Company Information Trustees, Report 2to5 Independent Auditors, Report to the Trustees of Life chUh (Europe) Statement of Financial Activities Balance Sheet Statement of Cashflows Notes to the Financial Statements 12to19
LIFE CHURCH (EUROPE COMPANY INFORMATION for the year ended 31 August 2024 REGISTERED NUMBER.. 07288147 DIRECTORSI TRUSTEES: D. McLaughlin M.H.J. Wattis L. Beedham Rev. D.P. Murphy SENIOR MANAGEMENT PERSONNEL: Rev. D.P. Murphy N. C. Murphy N. N. Camacho E. Jackson REGISTERED OFFICE AND OPERATIONAL ADDRESS: The Christian Centre Bulkington Road Bedworth Warwickshire CV12 9DG CHARITY NUMBER. 1138461 INDEPENDENT AUDITORS. Dafferns ALFdit Limited Chartered Accountants Statutory Auditors One EaSoOd Harry Weston Road Binley Business Park Coventry CV3 2UB BANKERS.. Lloyds Bank 17123 Coventry Street Nuneaton Warwickshire CV115TD Page 1
LIFE CHURCH IEUROPE) TRUSTEES, REPORT {Including Directors, Report) for the year ended 31 August 2024 The Directors, who are also the Trustees under charity law, present their annual report along with the financial statements of the charitable company for Ihe year ended 31 August 2024. The Trustees have adopted the provisions of Statement of Recommended Practice ISORPI "Accounting and Reporting by Charities" IFRS 102) in preparing the annual reports and financial statements of the charity. The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the charity's governing document, the Charities Act 2011 and 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 published in October 2019. STRUCTURE, GOVERNANCE AND MANAGEMENT Life Church {Europe} is a company limited by guarantee governed by its Memorandum and Articles of Association dated 17 June 2010. It is a registered charity, number 1138461. The Trustees (who are also the directors of the company) who served during the year and since the period end are set out on page 1. Trustees are appointed by the board and meet every 2 months. The Board ofTrustees is made up of4 Trustees including the Senior Pastor. Decisions are made on a majority vote. The Senior Pastor leaves voting lo the other Trustees to ensure a majority is achieved. The FinancelHRISafeguarding Officer is also present at all meetings to ensure Trustees have accurate up-to-date information to be confident the decisions made are reasonable. The Officer also minutes the decisions made. INDUCTION AND TRAINING OF TRUSTEES New directors undergo training as to their legal obligations under charity and company law and are presented with copies of the Memorandum and Articles of Association as well as Life Church (Europe) policy documents which have been approved by the Board. The induction process involves meeting with the Chair of Trustees and Senior Pastor to familiarise them with the expectations of trustees, decisions recently made, regularity of meetings and areas of responsibility led by individual Trustees. Directors are expected to undertake Safeguarding Training in line with Life Church staff and volunteers lannuallyl. Trustees are informed of training available from Assemblies of God, the Charity Commission, CAVA and are encouraged to attend training events in rotation. RISK MANAGEMENT The Trustees have considered the major risks to which the Charity is exposed and have reviewed those risks and established systems and procedures to manage them. OBJECTIVES AND ACTIVITIES The objective and activity of the Charity is to be a vibrant Christian commLsnity who passionately worship God, develop devoted followers of Christ and empower them to meet the needs of our communities and beyond through transforming our towns, reaching our region and having international influence. The Charity commenced activities on 1 March 2011, when the activities of Life Church International were transferred to Life Church Europe. The Trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing Life Church IELrrope)'s aims and objectives and in planning future activities. In particular, the Trustee's consider how planned activities will contribute to the aims and objectives they have set. Page 2
LIFE CHURCH {EUROPE) TRUSTEES, REPORT (Including Directors, Report) forthe year ended 31 August 2024 The main aims of Life Church (Europe) are'.- To provide a place for Christians to grow and develop in their Christian faith through the provision of collective acts of worship., study groups., discipleship courses.. programmes for children and young people. To provide practical support to individuals and families in the local community and surrounding areas through its Harbour Centre including a grocery store assisting those facing financial hardship, signposting to support agencies for areas of need such as benefits, utility bills, grief, loneliness. To offer the chance for people in the community to connect with others and lessen isolation and loneliness through projects like Unforgotten for those suffering with dementia and theircarers., Vintage for those of senior ag., Spec for families with children who have special needs so that all can meet with others with similar experiences in a safe and supportive environment. To make provision of a safe space for local young people to meet weekly Iterm-time only) to engage them in safe activities and provide mentoring and support for those who may be vulnerable. To provide opportunities for church attendees to develop skills such as singing and instrument playing through worship groups, the arts through acting, pantomimes and creative displays in schools and prisons,. leadership through taking responsibility for study groups, joining ministry teams and church leadership teams. ACHIEVEMENTS AND PERFORMANCE Life Church Europe continues to seNe the community with the help of staff and over 200 volunteers through the work of.. Parent and Toddler Groups Youth and Children's Work in Bedworth weekly Friday night youth activities as well as our Sunday Life Kids programme. We also run a monthly activity for children with special education needs (SPEC). Vintage an over 50's Group which provides lunch, friendship and support to members of the community. Christians Against Poverty ICAPI Café - reaching out to those who need debt advice Pastoral care through Life Groups, Service Teams, Pastoral Care Team & Connect Groups. Through the Harbour centre which opened in February 2022 we now offer other courses such as helping those through bereavement, domestic abuse, carers support, dementia support and other spiritual courses. The space is also used by our local MP On a month for his surgery and we have Utility Warehouse present there to help people discuss their energy bills. Life Church continues to support overseas mission work in countries such as Serbia. Ukraine, Russia and India. We have taken nineteen minibus loads of medical supplies to Ukraine since the conflict started there. We still have an online service for those who are vulnerable or ill and cannot come along in person. FINANCIAL REVIEW Total incoming resources for the year amounted to £993,309 {2023.' £960,495). Total resources expended were £801,15312023'. £712,014). The net incoming resources for the year amounted to a surplus of £192,156 (2023.. £248,481) Significant events, risks and factors affecting future financial performance Life Church received planning permission for a building project in November 2024 for a substantial development of and extension to its main building. This will demand significant funding supported from fundraising events and the length of time taken to pay off those loans. P8ge 3
LIFE CHURCH (EUROPE) TRUSTEES, REPORT (Including Directors, Report) for the year ended 31 August 2024 The reputation of Lifechurch potentially is at risk of damage from its activities with families, in the local community and with international partners through misunderstanding or misrepresentation. In such circumstances this might result in the termination of sources of income or costs of legal procedures. Whilst all checks and balances are in place and Lifechurch only works with organisations il has established links with there is the risk of misappropriation of funds by partner agencies or individuals. RESERVES POLICY The unrestricted funds of the charity are separated into accumulated income and designated funds as shown in note 14 to the financial statements. The designated fund of £119,307 {2023', £151,297) represents funds held following the sale of a property and is to be used for future building spend. It is the policy of the Charity to maintain the accLJmulated income fund within unrestricted funds at a level equivalent to approximately three month's salary costs. The available free reserves now stand at £12,815 12023. £70,700} Al the year end the charity had total funds of £3,373,787 12023.. £3,181,631), of which £527,565 (2023.. £281,851 } relates to restricted funds. PLANS FOR THE FUTURE Activities across the church have continued to see an increase in attendance. This has put some strain on our current facilities. The trustees continue to monitor and have plans to increase the number of selvices on Sundays. We are also putting plans in place to expand the current church building and have appointed architects to act on our behalf towards that. Planning permission has now been granted. Through our ongoing support ofchurches across the region we are putting together a framework of how these partnerships can develop further. FUNDRAISING STANDARDS INFORMATION Life Church (Europe) does not contract to a third party to undertake 8ny fundraising on its behalf, consequently we have received no fundraising complaints during the year. TRUSTEES. RESPONSIBILITIES STATEMENT The trustees (who are also directors of Life Church (Europe) for the purposes ofcompany lawl are responsible for preparing the Trustees, Annual Report and the financial statements in accordance with 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 affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to.. select suitable accounting policies and then apply them consistently, observe the methods and principles in the Charities SORP 2019 (FRS 1021, make judgements and estimates thal are reasonable and prudent., state whether applicable UK Accounting Standards have been followed. subject to any material departures disclosed and explained in the financial statements, prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation. Page 4
LIFE CHURCH {EUROPE) TRUSTEES, REPORT (Including Directors, Report) forthe year ended 31 August 2024 The trustees are responsible for keeping adequate accotjnting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them lo ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS So far as the trustees are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 20061 of which the company's auditors are unaware, and each trustee has taken all the steps that they ought to have taken as a trustee in order to make themself aware of any relevant audit informalion and to establish that the charity's auditors are aware of that information. Going Concern After making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in note 1 of the financial statements. In approving the Trustees Annual Report, we also approve the Strategic Report included therein in our capacity as Company directors. This report has been prepared having taken advantage of the small companies exemption in the Companies Act 2006. ON BEHALF OF THE BOARD L. Beedham. Dated.. 27 June 2025 Page 5
LIFE CHURCH IEUROPEI INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES AND MEMBERS OF LIFE CHURCH (EUROPE Opinion We have audited the financial statements of Life Church (Europe) {the "charitable company") for the year ended 31 August 2024 which comprise a statement of financial activities, a balance sheet 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, including Financial Reporting Standard 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland {United Kingdom Generally Accepted Accounting Pfactice). In our opinion the financial statements.. ' give a true and fair view of the state of the charrtable company's affairs as at 31 August 2024, and of ils incoming reSoUrS and application of resources, including ts 1me and expenditure. for the year then ended., . have en properly prepared in accordance with United Ksngdom Generalty Accepted Accounting Pradice,. and . have been prepared in accordance with the requirements of the Companies Act 20C6 and the Charities Act 2011 Basls for opinlon We conducted our audit in accordance with International Standard5 on Auditing (UK} IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements Ihat are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Standard, 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. Concluslons relatlng to golng concern In auditing the financial statements, we have concluded that the trustees, use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at leasl twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. Other informatlon The other information comprises the information included in the trustees annual report, other than the financia5 statements and our auditor s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other infomiation and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. 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. Page 6
LIFE CHURCH (EUROPE INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES AND MEMBERS OF LIFE CHURCH (EUROPE) Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the Course ofthe audit.. the information given in the trustees, report (incorporating the directors, report) for the financial year for which the financial statements are prepared is consistent with the financial statements,. and . the directors, report has been prepared in accordance with appIb legal requirements. Matters on which we are required to report by exception In the light of our knowledge and Lsnderstanding of the chantable company and its environment obtained in the cou of the audit, we have not identified material misslalements in the directors, report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Act 2011 requires us lo report to you if. in our opinion. adequate and proper accounting records have not been kept. or retums adequate for our audit have not been received from branches not visited by us,. or . the financial statements are not in agrnent wrth the accounting records and returns,. or • certain disclosures of directors, remuneration specified by law are not made., or ' we have not reiVed all the inft)miation and explanations we require for our audit.; or . the trustees were not entitled to prepare the financial statemenls in accordance wrth the small companies, regime and take advantage of the small companies, exemptions in preparing the directors, report and from the requirement to prepare a strategic report. Other Matter The comparative figures are unaudited. Responslbilities of trustees As explained more fully in the trustees, responsibilities statement, set out on page 4, the trustees (who are also the directors of the charitable company for the purpos of company law) are responsible for the preparation of the financial slatenEnts and for being satisfied that they give a true and frdir view, and for such internal control as the trustees detemiine rs ne$sary to enable the preparation of financial statements that are free from material misststement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for asssing the charitable company's ability to continue as a going cOnrn, disclosing, as applicable, matters related to going conrn and using the going conrn basis of accounting unless the trustees either intend to liquidate the charitable company or to a* operab'ons, or have no realisb'c altemalive but to do so. Audltor's responsibilities for the audit of the financial statements We have been appointed auditor under the Companies Act 2006 and section 151 ofthe Charrties Act 2011 and report in accordan with those Acts. Our objectsves 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 an auditors report that includes our opinion. Reasonable assurance is a high level ofassurance but is not a guarantee that an audit conducted in accordan wrth ISAS IUKI will aayS detect a material misstatement when it exists. Misststements 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. Page 7
LIFE CHURCH (EUROPE) INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES AND MEMBERS OF LIFE CHURCH (EUROPE) Irregulariti'es, including fraud, are instances of non<0mplian 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 specific prrKedures for this engagement and the extent to whh these are capable of detecting irregularities, including fraud is detailed below.. Enquiry of management, those charged with govemance around actual and potential litigation and claims,. Enquiry of entity staff in compliance fijnctions to identify any InStanS of non<0mplian with laws and regulations., Reviewing minutes of meetings of those charged with governan. Reviewing financial statement disclosures and testing to supporting documentstion to assess Complian with applicable laws and regulations. Perfoffning audit Wofk over the risk of management override of controls, including testing ofjournal entnes and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting ests'mates for bias. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial StateEnts or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non<omplIan. The risk is also greater regarding irregularities occurring due to fraud rather than error. as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. A further description of our responsibilitses is available on the Financial Reporting Council's website at.. .frc.org.ukJauditorsresponsibilities. This description forms part of our auditor's report. Use of our report This report is made Sole to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and to the charitable company's trustees, as a body, in arxordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit wod< has been undertaken so that we mighl state to the charitable company's members and its trustees those matters we are required lo state to them in an auditor's report and for no other purpose. To the fullest extent pemiitted by law, we do not acp1 or assume responsibility to anyone other than the charitable company and the charitable company s members as a body and the charitable company's INstees as a body, for our audit work, for this report, or for the opinions we have formed. Signed.. Geoffrey Cox BA FCA (Senior Statutory Auditor) For and on behalf of Daffems Audit Limited Chartered Awountants Statutory Auditor One EasO[KI Hary Weston Road Binley Business Park Coventy CV3 2UB Date.. 27 June 2025 Page 8
LIFE CHURCH (EUROPE) STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNTI for the year ended 31 August 2024 Unrestricted Funds 2024 Restricted Funds 2024 Total Funds 2024 Total Funds 2023 Income and endowments from: Donations and grants Income from charitable activities Other trading activities 425,430 189,819 309,068 734,498 189,819 770,250 112,833 68,992 68,992 77,412 Total income and endowments 684,241 309,068 993,309 960,495 Expenditure on: Raising funds Charitable activities 14,675 723,124 6,799 56.555 21,474 779,679 43,036 668,978 Total expenditure 737 799 801 153 712 Q14 Net Incomellexpendlture) (53,558) 245,714 192,156 248,481 Net movement in funds {53,558) 245,714 192,158 248,481 Reconcillation of funds: Total funds brought fOard 2 899,780 281,851 3 181,631 2,933,150 Total funds carried foNard 2,846,222 527,565 3,373,787 3,181,631 All income and expenditure derive from continuing activities. The statement of financial activities includes all gains and losses recognised during the period. The notes on pages 12 to 19 form part of these financial statements Page 9
Reg18tered No. 07288147 LIFE CHURCH (EUROPE) BALANCE SHEET as at 31 August 2024 2024 2023 Notes FIXED ASSETS Tangible assets 2,714,100 2,677,783 CURRENT ASSETS Debtors Cash at bank and in hand 12 3,248 670,424 3,323 511,081 673,672 514,404 CREDITORS Amounts falling due within one year 13 113,9851 110.5561 NET CURRENT ASSETS 659,687 503,848 NET ASSETS 3.373,787 3 181,631 FUNDS OF THE CHARITY: Restricted funds 15 527,565 281,851 Unrestricted income funds Accumulated income fund Designated funds 14 14 2,726,910 119307 2,748,483 151,297 TOTAL CHARITY FUNDS 3 373 787 3 181631 These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies, regime. The financial statements were approved and authorised for issue by the Board.. ON BEHALF OF THE BOARD: Rev. D.P. Murphy.. L. Beedham.. Date.. 27 June 2025 The notes on pages 12 to 19 form part of these financial statements Page 10
LIFE CHURCH {EUROPE) STATEMENT OF CASHFLOWS for the year ended 31 August 2024 Notes 2024 2023 Cash flow from operatlng actlvlties Net incomellexpenditure} for period 192,156 248,481 Depreciation Decreasellincreasel in debtors IDecrease}lincrease in creditors 11 12 13 10.233 75 3,429 5,238 {3,3231 9,936 Net cash flow from operatbng activities 205,893 260,332 Cash flow from investing activities Purchase of tangible fixed assets 11 46.550 74,582 Net cash flow from investing actlvities {46,550} (74,8521 Net increasel(decrease) in cash and cash equlvalents 159,343 185,750 Cash and ca8h equlvalents at 01 September 2023 511,081 325,331 CaBh and cash equivalents at 31 August 2024 670,424 511,081 Cash and cash equlvalents conslst of.. Cash al bank and in hand 670,424 511,081 Cash and cash equlvalents at 31 August 2024 670,424 511,081 2023 Cashflow 2024 Cash and cash equivalents 511,081 159,343 670,424 Total net debt 511,081 159,343 670.424 The notes on pages 12 to 19 form part of these financial statements Page11
LIFE CHURCH (EUROPE) NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2024 ACCOUNTING POLICIES The principal accounting policies adopted, judgements and key sources ofestimation uncertainty in the preparation of the financial statements are as follows.. a) Basis of preparation Life Church (Europe) is a charity that is a company limited by guarantee in Englandlwales. The address of the registered office is given in the charity information on page 1 of these financial statements. The nature of the charity's operations and principal activities are to advance the Christian faith, to relieve sickness and financial hardship and promote and preserve good health in the United Kingdom or the World. The financial statements have been prepared in accordance with applicable accounting standards. the Charities Act 2011 and the Statement of Recommended Practice "Accounting and Reporting by Charities" issued in October 2019 ISORP IFRS102)). The charity meets the definition of a public benefit entity under FRS102. The financial statements are prepared on a going concern basis under Ihe historical cost convention, modified to include certain items at fair value. The financial statements are presented in sterling, which is the functional currency of the charity. transactions are rounded to the nearest £. The significant accounting policies applied in the preparations of these financial statements are set out below. These policies have been consistently applied to all years presented unless otheNise slated. b} Fund accountlng Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have nol been designated for other purposes. Designated funds comprise of unrestricted funds that have been set aside by the trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements. Restricted funds are funds which are used in accordance with specific restrictions imposed by the donors, or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged againsl the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements. Details of the nature and purpose of each fund is set out in notes 14 and 15. The amount held in the Income Reserve Fund is entirely at the discretion of Ihe Trustees. cl Income recognltlon All incoming resources are included in the Statement of Financial Activities when the charity is legally entitled to the income, the amount can be measured reliably, and it is probable that it will be received. For donations to be recognised the Charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained, then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the Charity, and it is probable that they will be fulfilled. Cash donations are recognised upon receipt. No amount is included in the financial statements for volunteer time in line with the SORP IFRS 1021. Income from trading activities is received in exchange for supplying goods and services or rental income in order to raise funds and is recognised when entitlement has occurred. Page 12
LIFE CHURCH IEUROPEI NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2024 ACCOUNTING POLICIES (CONTINUED) dl Cash flow statement The charity's cash flow slatement reflects the presentation requirements of FRS102 e) Expenditure recognition All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required, and the amoLtnt of the obligation can be measured reliably. Expenditure is accounted for on an accrual basis and has been classified under headings that aggregate all costs related to the category. Irrecoverable VAT is charged as an expense against the activity for which expenditure arose. fj Support cost allocation Costs incurred to support church activities, are allocated accordingly to costs for charitable activities. These costs compose primarily of staff and office costs and are allocated based on an estimate of staff time spent per charitable activity. g) Governance costs Governance costs comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice. These costs comprise of costs related to independent examination and legal fees, together with an allocation of support costs. h) Tax The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Acl 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. il Employee benefits The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received. Termination benefits are recognised immediately as an expense when the Charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits Il Retlrement benefits Payments to defined contribution retirement benefit schemes are charged as an expense to the Statement of Financial Activities as they fall due. k} Flxed assets and depreciation Fixed assets are stated at cost less accumulated depreciation, and accumulated impairment losses. Costs, include costs directly attributable to making the asset capable of operating as intended. Depreciation is at the following annual rates in order to write off the cost of each asset over its estimated useful life.. Freehold propety Assets in the course of construction Fixtures and fittings Motor vehicles Not depreciated Not depreciated 200/0 reducing balance 33 /0 Straight line 11 Flnancial Instruments Debtors and creditors with no stated interest rate and receivable or payable within one period are recorded at transaction price. Any losses arising from impairment are recognised in expenditure. Page 13
LIFE CHURCH IEUROPEI NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2024 ACCOUNTING POLICIES (CONTINUED) ml Leases Rentals payable under operating leases, including any lease incentives re}ved, are charged to income on a straight-line basis over the term of the relevant lease. n) Going concern The financial statements have been prepared on a going concern basis as the Trustees believe that no material uncertainties exist. The Trustees have considered the level offunds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the Charity to be able to continue as a going concern. o) Critical accounting judgements and key sources of estimation uncertainty In the application of the charity's accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. The Trustees do not consider there are any critical judgements or sources of estimation uncertainty requiring disclosure beyond the accounting policies listed above. INCOME FROM DONATIONS AND GRANTS 2024 2023 Donations for expansion fund General donations Donations for overseas Other 205,698 468,036 27,731 33,033 303,365 363,874 57,400 45,611 734,498 770,250 For 2024, £425,430 was unrestricted income12023.. £363,567) and £309,068 was restricted income 12023.. £406,683). INCOME FROM CHARITABLE ACTIVITIES 2024 2023 Families Discipleship General Ministries Harbour shop Conferences 26,042 15,525 4,903 117,728 25,621 31,385 10,712 6,468 29,753 34,515 189,819 All income from charitable activities for the current and prior year is unrestricted. 112,833 Page 14
LIFE CHURCH {EUROPE) NOTES TO THE FINANCIAL STATEMENTS forthe year ended 31 August 2024 INCOME FROM OTHER TRADING ACTIVITIES 2024 2023 Galley coffee shop Property income Other sales 53,115 398 15,479 48,284 6,552 22,576 68,992 77,412 All income from other trading activities for the current and prior year is unrestricted. EXPENDITURE ON CHARITABLE ACTIVITIES Activities undertaken directly Support costs 2024 Total 2023 Total Families Discipleship General Ministries Harbour shop Conferences Global Missions Other 34,541 15,354 21,240 177,118 6,920 70,609 14.016 65,982 21,994 263,929 65,982 21,994 100,523 37,348 285,169 243,100 28,914 70,609 14.016 92,392 38,043 280,778 138,223 60,667 46,319 12,556 339,798 439,881 779,679 668,978 For 2024, £723,124 of the above were attributable to unrestricted funds12023.' £469,767) and £56,555 of the above to restricted funds12023. £199,211) SUPPORT COSTS General Ministries Harbour shop 2024 Total Families Discipleship Conferences Salaries Other staff costs Office costs Professional fees Property costs Depreciation Other Governance costs 43,172 2.043 2,843 4,556 8,189 1.534 3,173 14,390 680 948 1,519 2.730 512 1,057 172,686 43,172 8,165 2,041 11,372 2,843 18,227 4,557 32,760 8,190 6,140 1,535 12,689 3,172 14,390 287,810 680 13,609 948 18.954 1.519 30,378 2.730 54,599 512 10,233 1,057 21,148 472 158 1,890 472 158 3,150 65,982 21,994 263,929 65,982 21,994 439,881 For 2024, £430,200 of the above were attributable to Ltnrestricted funds and £9,682 of the above to restricted funds. Page 15
LIFE CHURCH IEUROPEI NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2024 GOVERNANCE COSTS 2024 2023 Audit fee 3,150 3,000 3,150 3,000 NET INCOME IS STATED AFTER CHARGING 2024 2023 Depreciation Audit fee Other accountancy seNices Pension costs 10,233 3.150 2,178 5,192 5,238 3,000 6,360 4,301 TRUSTEES REMUNERATION AND KEY MANAGEMENT PERSONNEL During the year, no trustees reiVed any remuneration or benefit in kind for their duties as trustee 12023.. £nill. No trustees had expenses met by the charity in fvlfilling their duties as a trustee and the total amounl reimbursed to trustees or paid to third parties was £nil. The total amount of employee benefits received by key management personnel is £102,620. 10. STAFF COSTS 202 Wages and salanes Social security Pension contributions 288,182 15.444 5,192 255,530 15,764 4,301 308,818 275,595 2024 2023 Average number of staff Charitable activities 19 17 Full time equivalent 11 10 No employee received remuneration of £60,000 or more. The company operated a defined contribution pension scheme. The charge for the period was £5,19212023.' £4, 3011. The defined contribution liability is allocated to unrestricted funds. Page 16
LIFE CHURCH IEUROPE) NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2024 FIXED ASSETS Freehold Property Assets in Course of Construction Fixtures and fittings Motor vehicles Total Cost At I September 2023 Additions Disposals At 31 August 2024 2,588,466 41,693 40,800 241,704 2,871,863 46,550 5,750 2,588,466 82,493 241,704 5,750 2,918,413 Depreciatlon At I September 2023 Charge for the period Released At 31 August 2024 194,080 9,525 194,080 10,233 708 203,605 708 204,313 Net book value At 31 August 2024 2,588,466 82,493 38,099 5,042 2,714,100 At I September 2023 2,588,466 41,693 47,624 2,677,783 12. DEBTORS FALLING DUE WITHIN 1 YEAR 2024 2023 Trade debtors Prepayments 75 3,248 3,248 3,248 3,323 13. CREDITORS FALLING DUE WITHIN 1 YEAR 2024 2023 Trade creditors Accruals 675 13,310 576 9,980 13.985 10,556 Page 17
LIFE CHURCH IEUROPEI NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2024 14. UNRESTRICTED FUNDS Balance 1 September 2023 Income, transfers and Expenditure, transfers and losses Balance 31 August 2024 Designated funds Building works Harbour funds 151.297 {41,6931 1164.631) 109,604 9,703 174,334 Accumulated Income fund 2,748,483 509,907 (531,475) 2,726.910 2,899,780 684,241 737,799 2,846,222 Designated funds comprise of reseNes held for future building spend, and in relation lo operational costs for the Harbour centre. Accumulated income funds are available for use at the discretion of the Irustees in furtherance of the general objectives of the charity and have not been designated for other purposes. 15. RESTRICTED FUNDS Balanc 1 September 2023 Income, transfers and ain Expenditure, transfers ndl 8alance 31 August Expansion fund Restricted general donations Overseas donations Harbour grants Compassion ministries Other 252,842 14,925 2,793 206,535 46,470 27,731 28,332 116,4801 11,474) 130,5241 113,1331 442,897 59,921 15,199 3,817 5,731 3,817 7,474 11,743) 281,851 309,068 63,354 527,565 16. ANALYSIS OF NET ASSETS BETWEEN FUNDS Tangible fixed assets Net current ssets Total Restricted fund Unrestricted funds 527,565 132.122 132 122 527,565 2,846,222 3,373,787 2 714,100 2,714,100 Page 18
LIFE CHURCH IEUROPE) NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2024 18. RELATED PARTY TRANSACTIONS The Lead Pastor, who is a Trustee, received gross remuneration of £48,126 {2023'. £48,526) and pension contributions of £1,257 (2023.. £1,262) during the year in his employed capacity. His wife, in her capacity as assistant pastor, received gross remuneration of £7,55512023. £7,700) and pension contributions of £nil during the current and prior year. There were no other related party transactions in the current or preceding financial year. 19. OPERATING LEASE COMMITMENTS Total future minimum lease payables under non-cancellable operating lease are as follows.. 024 2023 Within one year Within one to five years 12.000 9.000 12,000 21,000 21,000 33,000 Operating lease expenditure recognised in the year was £12,000 {2023.' £6,000). 20. PENSIONS AND OTHER POST-RETIREMENT BENEFITS The charity operates a defined conlribution pension plan for its employees. The amount recognised as an expense in the period was £5,192 (2023 £4,301). The defined contribution liability is allocated to unrestricted funds. 21. CONTROLLING PARTY The charitable company is under the control of its Board of Directorsl Trustees. Page 19