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2020-12-31-accounts

LIVING WISDOM WORD MINISTRY

Charity No. 1143930

Trustees' Report and Unaudited Accounts

31 December 2020

LIVING WISDOM WORD MINISTRY Contents

Pages
Trustees' Annual Report 1
Independent Examiner's Report 2
Statement of Financial Activities 3
Summary Income and Expenditure Account 4
Balance Sheet 5
Statement of Cash flows 6
Notes to the Accounts 7
Detailed Statement of Financial Activities 8 to 19

Page 1

LIVING WISDOM WORD MINISTRY Trustees Annual Report

The Trustees present their report with the unaudited financial statements of the charity for the year ended 31 December 2020.

REFERENCE AND ADMINISTRATIVE DETAILS

Charity No. 1143930

Principal Office

25 Church Street Eccles Manchester M30 0BJ

Registered Office

25 Church Street Eccles Manchester M30 0BJ

Directors and Trustees

The following Trustees served during the year:

A.I. ADELOWO

A.C. Adelowo J. Adeyinka T.R.C. Akinosho R.M. Thomas

Key Management Personnel

----- Start of picture text -----
||| |---|---| |Chair|Pastor Adebisi Christopher Adelowo| |Trustee|Pastor John Femi Adeyinka| |Trustee|Dr Abiola Iranade Adelowo| |Trustee|Pastor Rufus Micheal Thomas| |Trustee|Timothy Rotimi Clark Akinosho|

----- End of picture text -----

Accountants

Fredricks Accountants & Co Suite 204 133 Creek Road Greenwich London SE8 3BU

Bankers

Barclays Bank PLC Woolwich New Road, London

Page 2

LIVING WISDOM WORD MINISTRY Trustees Annual Report

OBJECTIVES AND ACTIVITIES

The Charity is constituted under a Trust Deed dated 23 September 2011, and Charity number is 1143930 on the central registered of the Charity Commission of England and Wales. The principal objectives of the Charity are the advancement of the Christian faith worldwide and the relief of poverty.

Recruitment and Appointment of New Trustees

Trustees and Members of Committees are appointed by the Church Ministerial Board using the essential skill and assessment method. Priority is given to criteria required to have an effective and efficient Board and Committees. To this end, the Board is carefully grafted with the right mix of skills and experience to discharge its duties and ensure effective governance and management. The trustees serve a term of two years which is renewable at the discretion of the Board. The management of the charity is the responsibility of the Trustees who are appointed and co-opted under the terms of the Trust Deed.

Organizational Structure and Decision Making

The church is organized so that the trustees meet regularly to manage its affairs. There are a full-time Minister and Volunteers, who manage the day to day administration of the church.

ACHIEVEMENTS AND PERFORMANCE

The trustees are pleased to report that the Church continued to be successful spiritually by ministering to many people. The Church has improved in membership strength and is increasingly reaching out to the community. More focus and greater success were achieved in the area of Evangelism and community outreach.

Risk Management

The trustees have assessed the major risks to which the Charity is exposed, particularly those relating to the operations and finance and are satisfied with the risk management systems in place to mitigate any exposure. Risk is an everyday part of charitable activity and managing it effectively is essential if the trustees are to achieve their key objectives and safeguard their charity's funds and assets. Therefore the Charity has developed appropriate Risk Management Framework which consists of the Risk Management Policy and the Risk Management Procedures outline in the operational guidelines.

FINANCIAL REVIEW

The financial statements cover the operations of Living Wisdom Word Ministry, London. For the year ended 31 December 2020, the Statement of Financial Activities shows total incoming resources of £82,621 (2019:£61,112). This was spent mainly on charitable activities and total expenditure amounted to £87,576 (2019:£66,409). We closed the year with net loss resources of £4,955 (2017: £5,297). This deficit has been deducted from the reserves for use in future accounting periods.

Reserve Policy

The trustees have established a policy whereby the unrestricted funds not committed or invested in tangible fixed assets(the free reserve) held by the church should be 3 months of annual expenditure. At this level,the trustees feel that they would be able to continue the current activities of the church in the event of significant drop in funding.

PLANS FOR FUTURE PERIODS

The Church will continue to explore various ways of spreading the gospel of Christ effectively. Charity is looking to grow in membership and continue to develop its members to make a life-changing impact in society, plant more branches, open Bookshops, community choir and acquire its property.

Page 3

LIVING WISDOM WORD MINISTRY Trustees Annual Report

Statement of Trustees Responsibility

The trustees are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted). The law applicable to charities in England and wales 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 incoming resources and application of resources of the charity for that period. In preparing these financial Statements, the Trustees are required to:

a) Selects suitable accounting policies and then apply them consistently

b) Observes the methods and principles In the Charities SORP;

c) Make judgments and estimates that are reasonable and prudent.

d) State whether applicable UK Accounting Standards have been followed, subject to any material departures explained in the financial statements.

e) Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.

The above report has been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime as set out in Part 15 of the Companies Act 2006 and in accordance with the Charities SORP (FRS 102).

T.R.C. Akinosho Trustee 03 December 2021

LIVING WISDOM WORD MINISTRY Independent Examiners Report

Independent Examiner's Report to the trustees of LIVING WISDOM WORD MINISTRY

I report to the charity trustees on my examination of the accounts of LIVING WISDOM WORD MINISTRY for the year ended 31 December 2020 which comprise the Statement of Financial Activities, the Summary Income and Expenditure Account, the Balance Sheet, the Statement of Cash Flows and the related notes.

Responsibilities and basis of report

As the trustees of the charity (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 the charity 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

I have completed my examination. I can confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that:

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.

Mr Adesina Otufale FCCA Fredricks Accountants & Co Suite 204 133 Creek Road

Greenwich London SE8 3BU 03 December 2021

Page 5

LIVING WISDOM WORD MINISTRY Statement of Financial Activities

for the year ended 31 December 2020

Notes
Income and endowments
from:
Donations and legacies
4
Interest income
5
Grant income
6
Total
Expenditure on:
Charitable activities
7
Other
8
Total
Net gains on investments
Net expenditure
9
Transfers between funds
Net expenditure before other
gains/(losses)
Other gains and losses
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 Unrestricted
funds
2020
£
54,520
10
28,091		 Total funds
2020
£
54,520
10
28,091		 Total funds
2019
£
61,112
-
-
82,621
-
87,576		 82,621
-
87,576		 61,112
4,400
62,009
87,576
-		 87,576
-		 66,409
-
(4,955)
-		 (4,955)
-		 (5,297)
-
(4,955) (4,955) (5,297)
(4,955)
13,432		 (4,955)
13,432		 (5,297)
18,729
8,477 8,477 13,432

Page 6

LIVING WISDOM WORD MINISTRY Summary Income and Expenditure Account

for the year ended 31 December 2020

Income
Interest and investment income
Gross income for the year
Expenditure
Depreciation and charges for
impairment of fixed assets
Total expenditure for the year
Net expenditure before tax for the year
Net expenditure for the year		 2020
£
82,611
10
82,621
85,199
2,377
87,576
(4,955)
(4,955)		 2019
£
61,112
-
61,112
63,239
3,170
66,409
(5,297)
(5,297)

Page 7

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LIVING WISDOM WORD MINISTRY Notes to the Accounts

for the year ended 31 December 2020

Basis of preparation

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) and the Companies Act 2006.

Change in basis of accounting or to previous accounts

There has been no change to the accounting policies (valuation rules and method of accounting) since last year and no changes have been made to accounts for previous years.

Fund accounting

Income

Volunteer help The value of any volunteer help received is not included in the accounts. Investment income This is included in the accounts when receivable. Gains/(losses) on This includes any gain or loss resulting from revaluing investments to market value revaluation of fixed at the end of the year. assets Gains/(losses) on This includes any gain or loss on the sale of investments. investment assets

Page 9

LIVING WISDOM WORD MINISTRY Notes to the Accounts

Expenditure

Taxation

The charity is exempt from corporation tax on its charitable activities.

Tangible fixed assets and depreciation

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life:

useful life:
Plant and machinery 25% Reducing Balance
Fixtures, fittings and
equipment		 25% Reducing Balance

Freehold investment property

Investment properties are measured initially at cost and subsequently at fair value at each balance sheet date and are not depreciated. All gains or losses are taken to the Statement of Financial Activities as they arise.

Stocks

Stock is included at the lower of cost or net realisable value. Donated items of stock are recognised at fair value which is the amount the charity would have been willing to pay for the items on the open market.

Trade and other debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and on hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. In the statement of financial position, bank overdrafts are shown within borrowings or current liabilities. In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the company's cash management.

Page 10

LIVING WISDOM WORD MINISTRY Notes to the Accounts

Trade and other creditors

Short term creditors are measured at the transaction price. Other creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

Foreign currencies

Monetary assets and liabilities denominated in currencies other than the functional currency of the charity are translated at the rates of exchange prevailing at the end of the reporting period. Transactions in currencies other than the functional currency of the charity are recorded at the rate of exchange on the date that the transaction occurred.

All exchange differences are are taken into account in arriving at net income/expenditure.

Leased assets

Where the charity enters into a lease which entails taking substantially all the risks and rewards of ownership of an asset, the lease is treated as a finance lease.

Leases which do not transfer substantially all the risks and rewards of ownership to charity are classified as operating leases.

Assets held under finance leases are initially recognised as assets of the charity at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the balance sheet date as a finance lease obligation. Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance expenses are recognised immediately, unless they are directly attributable to qualifying assets, in which case they are capitalised in accordance with the charity's policy on borrowing costs. Assets held under finance leases are depreciated in the same way as owned assets.

Operating lease payments are recognised as an expense on a straight-line basis over the lease term. In the event that lease incentives are received to enter into operating leases, such incentives are recognised as a liability. The aggregate benefit of incentives is recognised as a reduction of rental expense on a straight-line basis.

Pension costs

The charity operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payments obligations. The contributions are recognised as expenses when they fall due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

Receipt of donated goods, facilities and services

All donated goods, facilities and services received are recognised within incoming resources and expenditure at an estimate of the value to the charity.

Page 11

LIVING WISDOM WORD MINISTRY

Notes to the Accounts

2 Company status

The company is a private company limited by guarantee and consequently does not have share capital.

3 Statement of Financial Activities - prior year

Income and endowments from:
Donations and legacies
Total
Expenditure on:
Charitable activities
Other
Total
Net income
Net income before other
gains/(losses)
Other gains and losses:
Net movement in funds
Reconciliation of funds:
Total funds carried forward
4
Income from donations and legacies
Tithe and Offering
Building fund
Thanksgiving
5
Income from investments
Interest income		 Unrestricted
£
51,329
2,941
250
54,520
Unrestricted
£
10
10		 Unrestricted
funds
2019
£
61,112
61,112
4,400
62,009
66,409
(5,297)
(5,297)
(5,297)
(5,297)
Total
2020
£
51,329
2,941
250
54,520
Total
2020
£
10
10		 Total funds
2019
£
61,112
61,112
4,400
62,009
66,409
(5,297)
(5,297)
(5,297)
(5,297)
Total
2019
£
61,112
-
-
61,112
Total
2019
£
-
-

Page 12

LIVING WISDOM WORD MINISTRY

Notes to the Accounts

6 Other income

----- Start of picture text -----
Unrestricted Total Total
2020 2019
£ £ £
Grant income 28,091 28,091 -
28,091 28,091 -
----- End of picture text -----

7
Expenditure on charitable activities
Expenditure on charitable
activities
Donation to other Ministries
Governance costs
8
Other expenditure
Volunteer expenses
Employee costs
Motor and travel costs
Premises costs
Amortisation, depreciation,
impairment, profit/loss on
disposal of fixed assets
General administrative costs
Legal and professional costs
9
Net expenditure before transfers
This is stated after charging:
Depreciation of owned fixed assets		 Unrestricted
£
943
51,876
1,648
20,305
2,377
9,169
1,258
87,576
2020
£
2,377		 Total
2020
£
-
-
Total
2020
£
943
51,876
1,648
20,305
2,377
9,169
1,258
87,576		 Total
2019
£
4,400
4,400
Total
2019
£
1,737
24,304
4,668
17,486
3,170
10,064
580
62,009
2019
£
3,170

Page 13

LIVING WISDOM WORD MINISTRY Notes to the Accounts

10 Staff costs
Salaries and wages 46,883 21,590
Social security costs 3,502 1,842
Pension costs 754 288
51,139 23,720
No employee received emoluments in excess of £60,000.
The average monthly number of full time equivalent employees during the year was as follows:
Mission/Evangelism
Adminstrative
Music
Youth Ministry
Children Ministry
11 Tangible fixed assets
Cost or revaluation
At 1 January 2020
At 31 December 2020
Depreciation and
impairment
At 1 January 2020
Depreciation charge for the
year
At 31 December 2020
Net book values
At 31 December 2020
At 31 December 2019
12 Creditors:
amounts falling due within one year
Other creditors		 Plant and
machinery
£
26,493
26,493
20,768
1,431
22,199
4,294
5,725		 2020
Number
2
1
1
1
1
6
Fixtures,
fittings and
equipment
£
-
-
-
-
-
-
-
2020
£
519
519		 £
16,030
16,030
12,247
946
13,193
2,837
3,783		 2019
Number
2
1
1
2
1
7
Total
£
42,523
42,523
33,015
2,377
35,392
7,131
9,508
2019
£
480
480

Page 14

LIVING WISDOM WORD MINISTRY Notes to the Accounts

13 Movement in funds

----- Start of picture text -----
Incoming
resources
At 31
(including Resources
December
other expended
2020
At 1 January gains/losses
2020 )
£ £ £
Restricted funds:
Unrestricted funds:
General funds 13,432 82,621 (87,576) 8,477
Revaluation Reserves:
----- End of picture text -----

Total funds
14 Analysis of net assets between funds
Fixed assets
Net current assets
15 Reconciliation of net debt
Cash and cash equivalents
Net debt		 13,432 82,621
At 1 January
2020
£		 (87,576)
Unrestricted
funds
£
7,131
1,346
8,477
Cash flows
£
8,477
Total
£
7,131
1,346
8,477
At 31
December
2020
£
4,404 (2,539) 1,865
4,404
4,404		 (2,539)
(2,539)		 1,865
1,865
16 Commitments
Operating lease commitments
Annual commitments under non-cancellable operating leases
2020
Land and
buildings
£
Operating leases with expiry date:
Pension commitments
The pension cost charge to the company
amounted to:		 are as follows:
2020
Other
£
2020
£
754		 2019
Land and
buildings
£		 2019
Other
£
2019
£
288

Page 15

LIVING WISDOM WORD MINISTRY Notes to the Accounts

17 Related party disclosures

The Charity has not entered into any related party transaction during the year, nor are there any outstanding balances owing between related parties and the Charity at 31 December 2020.

Page 16

LIVING WISDOM WORD MINISTRY Detailed Statement of Financial Activities

for the year ended 31 December 2020

Income and endowments from:
Donations and legacies
Tithe and Offering
Building fund
Thanksgiving
Investments
Interest income
Other
Grant income
Total income and endowments
Expenditure on:
Charitable activities
Donation to other Ministries
Total of expenditure on charitable
activities
Other expenditure
Volunteer expenses
Employee costs
Salaries/wages
Employer's NIC
Pension costs
Staff welfare
Motor and travel costs
Vehicles - General costs
Travel and accommodation
Premises costs
Rent
Water Rates
Light, heat and power
Premises repairs and
maintenance		 Unrestricted
funds
2020
£
51,329
2,941
250
54,520
10
10
28,091
28,091
82,621
-
-
-
943
943
46,883
3,502
754
737
51,876
1,228
420
1,648
14,846
200
1,192
4,067
20,305		 Total funds
2020
£
51,329
2,941
250
54,520
10
10
28,091
28,091
82,621
-
-
-
943
943
46,883
3,502
754
737
51,876
1,228
420
1,648
14,846
200
1,192
4,067
20,305		 Total funds
2019
£
61,112
-
-
61,112
-
-
-
-
61,112
4,400
4,400
4,400
1,737
1,737
21,590
1,842
288
584
24,304
806
3,862
4,668
15,532
-
1,954
-
17,486

Page 17

LIVING WISDOM WORD MINISTRY

Detailed Statement of Financial Activities

General administrative costs,

including depreciation and
amortisation
Depreciation of Plant and
machinery
Depreciation of Fixtures, fittings
and equipment
Depreciation of
Honorariums
Bank charges
Equipment expensed
Equipment leasing and hire
charges
Equipment repairs and
maintenance
General insurances
Choir, Key board and Music
Miscellaneous/Gifts
Stationery and printing
Subscriptions
Church Administration Expenses
Telephone, fax and broadband
Legal and professional costs
Accountancy and bookkeeping
Other legal and professional
costs
Total of expenditure of other costs
Total expenditure
Net gains on investments
Net expenditure
Net expenditure before other
gains/(losses)
Other Gains
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 1,431
-
946
-
161
1,412
240
1,072
324
80
1,617
136
159
2,312
1,656
11,546
499
759
1,258
87,576
87,576
-
(4,955)
(4,955)
-
(4,955)
13,432
8,477		 1,431
-
946
-
161
1,412
240
1,072
324
80
1,617
136
159
2,312
1,656
11,546
499
759
1,258
87,576
87,576
-
(4,955)
(4,955)
-
(4,955)
13,432
8,477		 1,909
-
1,261
550
326
-
-
94
337
200
3,427
478
567
2,948
1,137
13,234
580
-
580
62,009
66,409
-
(5,297)
(5,297)
-
(5,297)
18,729
13,432

Page 18