Company registration number: 07435582 Charity registration number: 1139671
Life Church Lancashire
(A company limited by guarantee) Annual Report and Financial Statements for the Year Ended 31 December 2020
KM 1st Floor, Block C The Wharf Manchester Road Burnley Lancashire BB11 1JG
Life Church Lancashire
Contents
| Reference and Administrative Details | 1 |
|---|---|
| Trustees' Report | 2 to 3 |
| Independent Examiner's Report | 4 |
| Statement of Financial Activities | 5 |
| Balance Sheet | 6 |
| Notes to the Financial Statements | 7 to 13 |
Life Church Lancashire
Reference and Administrative Details Trustees B Baker Reverend J Brunton Mr M Brunton Mr M Hirst Mrs R Sollis Principal Office Life Church 30 Sycamore Avenue Burnley BB12 6QP Company Registration Number 07435582 Charity Registration Number 1139671 Solicitors Geldards LLP Number One Pride Place Pride Park Derby DE24 8QR Bankers Kingdom Bank Nottingham Ruddington Fields Business Park Mere Way, Ruddington Nottingham NG11 6JS Yorkshire Bank 25 Manchester Road Burnley Lancashire BB11 1HX Independent Examiner KM 1st Floor, Block C The Wharf Manchester Road Burnley Lancashire BB11 1JG
Page 1
Life Church Lancashire
Trustees' Report
The trustees, who are directors for the purposes of company law, present the annual report together with the financial statements of the charitable company for the year ended 31 December 2020.
Objects, aims and activities
Objects and aims
The objects of the charity as per the Articles of Association are:
To advance the Christian faith in accordance with the Statement in such ways and in such parts of the UK or the world as the directors from time to time may think fit;
To relieve sickness and financial hardship and to promote and preserve good health by the provision of funds, goods or services of any kind including through the provision of counselling and support in such parts of the UK or the world as the directors from time to time think fit, and
To advance education in such ways and in such parts of the UK or the world as the directors from time to time may think fit.
In addition to the objects and the furtherance of the work of the Gospel of Jesus Christ at home and overseas we also:
provide assistance to the community including support of a Food Bank, Women’s Refuge, Asylum seekers, Money Management, Parenting and Marriage Courses and local schools.
provide regular activities for children, youth, the elderly and those recovering from addiction.
Activities
For much of the year activities were limited, although services continued online. The Church provided financial assistance and volunteering at local schools, Burnley Together Food Bank and Womens' Refuge. Within the community training and improvement of life skills was provided.
Plans to complete the first floor were put on hold as a cost saving exercise due to the pandemic.
Our income from conferencing was significantly reduced due to government forced closure of conference centres.
Public benefit
The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.
Financial review
Our total income for the year was down by £60,277. Our thanks as trustees to all our church members for their continued giving during this pandemic year. Expenditure was also down by £78,125. At the year end our general reserve amounted to £85,067. This is an increase on the previous year which is a remarkable achievement considering the pandemic.
During the year, prior to the pandemic, £10,540 was incurred on initial work on the first floor. The mortgage was reduced by a net of £13,681. Interest is charged at 5.5%, with a term outstanding of 23 years. Monthly repayments are approx £5,500. The mortgage is secured on the property.
Page 2
Life Church Lancashire
Trustees' Report
Reserves
At the year end our general reserve amounted to £85,067. Our policy is to maintain three to six months running costs in reserve. The charity is therefore able to continue its activities in the short term, maintain staff levels and cover ongoing overhead costs.
A designated reserve for the fixed assets less borrowings is maintained amounting to £1,149,105.
Structure, governance and management
Nature of governing document
The charity is governed by its Articles of Association dated 10th November 2010.
Recruitment and appointment of trustees
The trustees comprise the Senior Minister of the church together with such persons as the Senior Minister shall nominate and the trustees shall from time to time appoint.
Trustees remuneration
Remuneration of the Senior Minister is permitted by the Articles of Association along with remuneration to other trustees as long as the majority of trustees do not benefit
Risk management
The trustees have risk management policies in place, which are reviewed from time to time. One of the major risks is safeguarding and the trustees are satisfied that appropriate policies and training are in place, and that all DBS checks are carried out.
Small companies provision statement
This report has been prepared in accordance with the small companies regime under the Companies Act 2006.
The annual report was approved by the trustees of the charity on .................... and signed on its behalf by:
......................................... Reverend J Brunton Trustee
Page 3
Life Church Lancashire
Independent Examiner's Report to the trustees of Life Church Lancashire
I report to the charity trustees on my examination of the accounts of the charity for the year ended 31 December 2020 which are set out on pages 5 to 13.
Respective responsibilities of trustees and examiner
As the charity’s trustees of Life Church Lancashire (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).
Having satisfied myself that the accounts of Life Church Lancashire 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 your charity’s 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.
Independent examiner’s statement
Since Life Church Lancashire'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 Charity Independent Examiners, 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:
-
accounting records were not kept in respect of Life Church Lancashire as required by section 386 of the 2006 Act; or
-
the accounts do not accord with those records; or
-
the accounts 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
-
the accounts 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.
...................................... Mark Heaton FCCA FCIE DChA KM 1st Floor, Block C The Wharf Manchester Road Burnley Lancashire BB11 1JG
Date:.............................
Page 4
Life Church Lancashire
Statement of Financial Activities for the Year Ended 31 December 2020 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)
| Note Income from: Donations 3 Other trading activities 4 Investment income 5 Other income Total income Expenditure on: Charitable activities 6 Total expenditure Net income/(expenditure) Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward 16 |
Unrestricted funds £ 248,514 15,542 341 - 264,397 (249,984) (249,984) 14,413 14,413 1,243,980 1,258,393 |
Total 2020 £ 248,514 15,542 341 - 264,397 (249,984) (249,984) 14,413 14,413 1,243,980 1,258,393 |
Unrestricted funds £ 240,749 63,478 619 19,828 324,674 (328,109) (328,109) (3,435) (3,435) 1,247,415 1,243,980 |
Total 2019 £ 240,749 63,478 619 19,828 |
|---|---|---|---|---|
| 324,674 | ||||
| (328,109) | ||||
| (328,109) | ||||
| (3,435) | ||||
| (3,435) 1,247,415 |
||||
| 1,243,980 |
All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2019 is shown in note 16.
Page 5
Life Church Lancashire
(Registration number: 07435582) Balance Sheet as at 31 December 2020
| Note Fixed assets Tangible assets 11 Current assets Debtors 12 Cash at bank and in hand Creditors: Amounts falling due within one year 13 Net current assets Total assets less current liabilities Creditors: Amounts falling due after more than one year 14 Net assets Funds of the charity: Unrestricted income funds Unrestricted funds Total funds 16 |
2020 £ 2,054,472 2,501 85,456 87,957 (20,132) 67,825 2,122,297 (863,904) 1,258,393 1,258,393 1,258,393 |
2019 £ 2,072,240 9,137 64,634 |
|---|---|---|
| 73,771 (22,446) |
||
| 51,325 | ||
| 2,123,565 (879,585) |
||
| 1,243,980 | ||
| 1,243,980 | ||
| 1,243,980 |
For the financial year ending 31 December 2020 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
-
The members have not required the charity to obtain an audit of its accounts for the year in question in accordance with section 476; and
-
The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements on pages 5 to 13 were approved by the trustees, and authorised for issue on .................... and signed on their behalf by:
......................................... Reverend J Brunton Trustee
Page 6
Life Church Lancashire
Notes to the Financial Statements for the Year Ended 31 December 2020
1 Charity status
The charity is limited by guarantee, incorporated in England, and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exceeding £1 towards the assets of the charity in the event of liquidation.
The address of its registered office is: Life Church 30 Sycamore Avenue Burnley BB12 6QP
Authorised for issue date
2 Accounting policies
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). They also comply with the Companies Act 2006 and Charities Act 2011.
Basis of preparation
Life Church Lancashire meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
Going concern
The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern nor any significant areas of uncertainty that affect the carrying value of assets held by the charity.
Exemption from preparing a cash flow statement
The charity is exempt from preparing a cash flow statement.
Income
All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of the income receivable can be measured reliably.
Governance costs
These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees’s meetings and reimbursed expenses.
Page 7
Life Church Lancashire
Notes to the Financial Statements for the Year Ended 31 December 2020
Taxation
The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
Tangible fixed assets
Individual fixed assets costing £1,000.00 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
Depreciation
Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:
Asset class Depreciation method and rate Freehold property 1% per annum on straight line basis Fixtures and fittings 10% per annum on cost
Trade debtors
Trade debtors are amounts due for services performed in the ordinary course of business.
Fund structure
Unrestricted income funds are general funds that are available for use at the trustees's discretion in furtherance of the objectives of the charity.
Designated funds are unrestricted funds set aside for specific purposes at the discretion of the trustees.
Pensions and other post retirement obligations
The charity operates a defined contribution pension scheme which is a pension plan under which fixed contributions are paid into a pension fund and the charity has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised in the Statement of Financial Activities when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Page 8
Life Church Lancashire
Notes to the Financial Statements for the Year Ended 31 December 2020
3 Income from donations
| Unrestricted funds General £ Donations from individuals 194,766 Gift aid reclaimed 38,819 Grants - CJRS claims 14,929 248,514 4 Income from other trading activities Unrestricted funds General £ Impact conferencing 15,542 Special events - Resource stand - 15,542 5 Investment income Unrestricted funds General £ Interest receivable on bank deposits 341 6 Expenditure on charitable activities Unrestricted funds Note Designated £ General £ Charitable activities - 57,657 Depreciation 28,308 - Staff costs 9 - 114,203 Bank interest payable 7 49,216 - Governance costs 7 - 600 77,524 172,460 |
Total 2020 £ 194,766 38,819 14,929 248,514 Total 2020 £ 15,542 - - 15,542 Total 2020 £ 341 Total 2020 £ 57,657 28,308 114,203 49,216 600 249,984 |
Total 2019 £ 191,606 32,901 - |
|---|---|---|
| 224,507 | ||
| Total 2019 £ 62,495 331 652 |
||
| 63,478 | ||
| Total 2019 £ 619 |
||
| Total 2019 £ 122,901 28,308 126,738 50,162 - |
||
| 328,109 |
Page 9
Life Church Lancashire
Notes to the Financial Statements for the Year Ended 31 December 2020
7 Analysis of governance and support costs
Governance costs
| Independent Examiner’s remuneration | Unrestricted funds General £ 600 600 |
Total 2020 £ 600 |
|---|---|---|
| 600 |
8 Trustees remuneration and expenses
Salaries were paid to Rev J Brunton in his position of Senior Minister as authorised by the Articles of Association.
No trustees have received any reimbursed expenses or any other benefits from the charity during the year.
9 Staff costs
The aggregate payroll costs were as follows:
| Staff costs during the year were: Wages and salaries Social security costs Pension costs |
2020 £ 98,511 3,470 12,222 114,203 |
2019 £ 111,974 9,131 5,633 |
|---|---|---|
| 126,738 |
The monthly average number of persons (including senior management team) employed by the charity during the year expressed as full time equivalents was as follows:
| 2020 | 2019 | |||
|---|---|---|---|---|
| No | No | |||
| Charitable activities | 4 | 5 |
No employee received emoluments of more than £60,000 during the year.
10 Taxation
The charity is a registered charity and is therefore exempt from taxation.
Page 10
Life Church Lancashire
Notes to the Financial Statements for the Year Ended 31 December 2020
11 Tangible fixed assets
| Cost At 1 January 2020 Additions At 31 December 2020 Depreciation At 1 January 2020 Charge for the year At 31 December 2020 Net book value At 31 December 2020 At 31 December 2019 12 Debtors Trade debtors Prepayments 13 Creditors: amounts falling due within one year Bank loans Other taxation and social security Other creditors Accruals |
Land and buildings £ 2,030,778 10,540 |
Furniture and equipment £ 80,000 - 80,000 16,000 8,000 24,000 56,000 64,000 2020 £ 948 1,553 2,501 2020 £ 17,242 - 961 1,929 20,132 |
Furniture and equipment £ 80,000 - 80,000 16,000 8,000 24,000 56,000 64,000 2020 £ 948 1,553 2,501 2020 £ 17,242 - 961 1,929 20,132 |
Total £ 2,110,778 10,540 2,121,318 38,538 28,308 66,846 2,054,472 2,072,240 2019 £ 7,584 1,553 |
|
|---|---|---|---|---|---|
| 2,041,318 | 80,000 | ||||
| 22,538 20,308 |
16,000 8,000 |
||||
| 42,846 | 24,000 | ||||
| 1,998,472 | 56,000 | ||||
| 2,008,240 | 64,000 | ||||
| 2020 £ 948 1,553 2,501 2020 £ 17,242 - 961 1,929 20,132 |
|||||
| 9,137 | |||||
| 2019 £ 17,242 2,214 1,215 1,775 |
|||||
| 22,446 |
Page 11
Life Church Lancashire
Notes to the Financial Statements for the Year Ended 31 December 2020
14 Creditors: amounts falling due after one year
| Bank loans Other loans |
2020 £ 863,904 - 863,904 |
2019 £ 877,585 2,000 |
|---|---|---|
| 879,585 |
15 Pension and other schemes
Defined contribution pension scheme
The charity operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the charity to the scheme and amounted to £12,222 (2019 - £5,633).
16 Funds
| 16 Funds | |||||
|---|---|---|---|---|---|
| Unrestricted funds General Designated Total funds Unrestricted funds General Designated Total funds |
Balance at 1 January 2020 £ 66,567 1,177,413 1,243,980 Balance at 1 January 2019 £ 58,938 1,188,477 1,247,415 |
Incoming resources £ 264,397 - 264,397 Incoming resources £ 324,674 - 324,674 |
Resources expended £ (172,460) (77,524) (249,984) Resources expended £ (249,639) (78,470) (328,109) |
Transfers £ (73,437) 73,437 - Transfers £ (67,406) 67,406 - |
Balance at 31 December 2020 £ 85,067 1,173,326 |
| 1,258,393 | |||||
| Balance at 31 December 2019 £ 66,567 1,177,413 |
|||||
| 1,243,980 |
Page 12
Life Church Lancashire
Notes to the Financial Statements for the Year Ended 31 December 2020
17 Analysis of net assets between funds
| 17 Analysis of net assets between funds | ||
|---|---|---|
| Tangible fixed assets Current assets Current liabilities Creditors over 1 year Total net assets Tangible fixed assets Current assets Current liabilities Creditors over 1 year Total net assets |
Unrestricted funds General £ Designated £ - 2,054,472 87,957 - (2,290) (17,242) - (863,904) 85,667 1,173,326 Unrestricted funds General £ Designated £ - 2,072,240 73,771 - (5,204) (17,242) (2,000) (877,585) 66,567 1,177,413 |
Total funds £ 2,054,472 87,957 (19,532) (863,904) |
| 1,258,993 | ||
| Total funds £ 2,072,240 73,771 (22,446) (879,585) |
||
| 1,243,980 |
Page 13