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 chU￿h (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 EaS￿oOd 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 reSoUr￿S and application of resources, including ts 1￿me 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 appI￿￿b￿ 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 ag￿rnent wrth the accounting records and returns,. or • certain disclosures of directors, remuneration specified by law are not made., or ' we have not re￿iVed 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 purpo*s 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 as*ssing the charitable company's ability to continue as a going cOn￿rn, disclosing, as applicable, matters related to going con￿rn and using the going con￿rn 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 a￿ayS 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 wh￿h 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 InStan￿S 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 State￿Ents 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