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2022-12-31-accounts

LIVING WISDOM WORD MINISTRY

Charity No. 1143930

Company No.

Trustees' Report and Unaudited Accounts

31 December 2022

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 16

Page 1

LIVING WISDOM WORD MINISTRY Trustees Annual Report

The trustees, who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the unaudited financial statements of the charity for the year ended 31 December 2022.

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

Trustees

The Trustees of the charitable company are its Trustees for the purposes of charity law. 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 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 Accountants FREDRICKS ACCOUNTANTS & CO LTD 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 2022, the Statement of Financial Activities shows total incoming resources of £110,446 (2021:£117,843). This was spent mainly on charitable activities and total expenditure amounted to £108,105 (2021:£118,866). We closed the year with net surplus resources of £2,341 (2021: £1,023). 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.

Page 3

LIVING WISDOM WORD MINISTRY Trustees Annual Report

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.

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

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).

Signed on behalf of the board

Thomas

R.M. Thomas Trustee 31 December 2022

Page 4

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 financial statements of LIVING WISDOM WORD MINISTRY for the year ended 31 December 2022.

Responsibilities and basis of report

As the charity's trustees of the company (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 ('the 2006 Act.

Having satisfied myself that the financial statements 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 financial statements 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:

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 financial statements to be reached.

Adesina Otufale ACCA FREDRICKS ACCOUNTANTS & CO LTD Suite 204 133 Creek Road Greenwich London SE8 3BU 31 December 2022

Page 5

LIVING WISDOM WORD MINISTRY Statement of Financial Activities

for the year ended 31 December 2022

Notes
Income and endowments
from:
Donations and legacies
4
Investments
5
Other
6
Total
Expenditure on:
Charitable activities
7
Other
8
Total
Net gains on investments
Net income/(expenditure)
9
Transfers between funds
Net income/(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
2022
£
110,446
-
-		 Total funds
2022
£
110,446
-
-		 Total funds
2021
£
78,505
11
39,327
110,446
4,411
103,694		 110,446
4,411
103,694		 117,843
4,350
114,516
108,105
-		 108,105
-		 118,866
-
2,341
-		 2,341
-		 (1,023)
-
2,341 2,341 (1,023)
2,341
7,454		 2,341
7,454		 (1,023)
8,477
9,795 9,795 7,454

Page 6

LIVING WISDOM WORD MINISTRY Summary Income and Expenditure Account

for the year ended 31 December 2022

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 income/(expenditure) before tax
for the year
Net income /(expenditure )for the year		 2022
£
110,446
-
110,446
106,768
1,337
108,105
2,341
2,341		 2021
£
117,832
11
117,843
117,083
1,783
118,866
(1,023)
(1,023)

Page 7

LIVING WISDOM WORD MINISTRY

Balance Sheet

at 31 December 2022

Company No.
Notes
2022
£
Fixed assets
Tangible assets
11
4,011
4,011
Current assets
Cash at bank and in hand
6,384
6,384
Creditors:Amount falling due within one year
12
(600)
Net current assets
5,784
Total assets less current liabilities
9,795
Net assets excluding pension asset or liability
9,795
Total net assets
9,795
The funds of the charity
Restricted funds
13
Unrestricted funds
13
General funds
9,795
9,795
Reserves
13
Total funds
9,795		 2021
£
5,348
5,348
2,706
2,706
(600)
2,106
7,454
7,454
7,454
7,454
7,454
7,454

These accounts have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

For the year ended 31 December 2022 the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.

Approved by the board on 31 December 2022

And signed on its behalf by:

Adelowo

Type text here A.I. ADELOWO Trustee

31 December 2022

Page 8

LIVING WISDOM WORD MINISTRY Statement of Cash flows

for the year ended 31 December 2022

Cash flows from operating activities
Net income/(expenditure) per Statement of Financial Activities
Adjustments for:
Depreciation of property, plant and equipment
Increase in trade and other payables
Net cash provided by/(used in) operating activities
Net cash from investing activities
Net cash from financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Components of cash and cash equivalents
Cash and bank balances		 2022
£
2,341
1,337
-
3,678
-
-
3,678
2,706
6,384
6,384
6,384		 2021
£
(1,023)
1,783
81
(38,497)
39,338
-
841
1,865
2,706
2,706
2,706

Page 9

LIVING WISDOM WORD MINISTRY Notes to the Accounts

for the year ended 31 December 2022

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 10

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 11

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 12

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

3
Statement of Financial Activities - prior year
Income and endowments from:
Donations and legacies
Investments
Other
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 brought forward
Total funds carried forward		 Unrestricted
funds
2021
£
78,505
11
39,327
117,843
4,350
114,516
118,866
(1,023)
(1,023)
(1,023)
8,477
7,454		 Total funds
2021
£
78,505
11
39,327
117,843
4,350
114,516
118,866
(1,023)
(1,023)
(1,023)
8,477
7,454

4 Income from donations and legacies

Tithe and Offering
Building fund
Thanksgiving		 Unrestricted
£
99,567
7,390
3,489
110,446		 Total
2022
£
99,567
7,390
3,489
110,446		 Total
2021
£
71,924
6,231
350
78,505

5 Income from investments

Interest income

Total
2022
£
-
-		 Total
2021
£
11
11

Page 13

LIVING WISDOM WORD MINISTRY

Notes to the Accounts

6 Other income

Grant income
7
Expenditure on charitable activities
Expenditure on charitable
activities
Donation to other Ministries
Grant to Individuals
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 income/(expenditure) before transfers
This is stated after charging:
Depreciation of owned fixed assets		 Unrestricted
£
1,868
2,543
4,411
Unrestricted
£
1,307
80,875
4,478
5,843
1,337
8,664
1,190
103,694
2022
£
1,337		 Total
2022
£
-
-		 Total
2021
£
39,327
39,327
Total
2022
£
1,868
2,543
4,411
Total
2022
£
1,307
80,875
4,478
5,843
1,337
8,664
1,190
103,694		 Total
2021
£
4,350
-
4,350
Total
2021
£
250
74,296
1,322
28,022
1,783
5,689
3,154
114,516
2021
£
1,783

Page 14

LIVING WISDOM WORD MINISTRY Notes to the Accounts

10 Staff costs
2022 2021
Salaries and wages 73,985 68,156
Social security costs 5,953 4,597
Pension costs 907 538
80,845 73,291
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 2022
At 31 December 2022
Depreciation and
impairment
At 1 January 2022
Depreciation charge for the
year
At 31 December 2022
Net book values
At 31 December 2022
At 31 December 2021
12 Creditors:
amounts falling due within one year
Other creditors		 Plant and
machinery
£
26,493
26,493
23,273
805
24,078
2,415
3,220		 2022
Number
3
1
2
1
1
8
Fixtures,
fittings and
equipment
£
-
-
-
-
-
-
-
2022
£
600
600		 £
16,030
16,030
13,902
532
14,434
1,596
2,128		 2021
Number
3
1
2
1
1
8
Total
£
42,523
42,523
37,175
1,337
38,512
4,011
5,348
2021
£
600
600

Page 15

LIVING WISDOM WORD MINISTRY Notes to the Accounts

13 Movement in funds

Restricted funds:
Unrestricted funds:
General funds
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		 At 1 January
2022
7,454
7,454		 Incoming
resources
(including
other
gains/losses
)
£
110,446
110,446
At 1 January
2022
£		 Resources
expended
£
(108,105)
(108,105)
Unrestricted
funds
£
4,011
5,784
9,795
Cash flows
£		 At 31
December
2022
£
9,795
9,795
Total
£
4,011
5,784
9,795
At 31
December
2022
£
2,706 3,678 6,384
2,706
2,706		 3,678
3,678		 6,384
6,384
16 Commitments
Operating lease commitments
Annual commitments under non-cancellable operating leases
2022
Land and
buildings
£
Operating leases with expiry date:
Pension commitments
The pension cost charge to the company
amounted to:		 are as follows:
2022
Other
£
2022
£
907		 2021
Land and
buildings
£		 2021
Other
£
2021
£
538

Page 16

LIVING WISDOM WORD MINISTRY Notes to the Accounts

17 Related party disclosures

Controlling party

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 17

LIVING WISDOM WORD MINISTRY Detailed Statement of Financial Activities

for the year ended 31 December 2022

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
Grant to Individuals
Total of expenditure on charitable
activities
Other expenditure
Volunteer expenses
Employee costs
Salaries/wages
Employer's NIC
Pension costs
Staff entertainment
Staff welfare
Motor and travel costs
Vehicles - General costs
Travel and subsistence
Premises costs
Rent
Rates
Premises repairs and
maintenance		 Unrestricted
funds
2022
£
99,567
7,390
3,489
110,446
-
-
-
-
110,446
1,868
2,543
4,411
4,411
1,307
1,307
73,985
5,953
907
30
-
80,875
2,994
1,484
4,478
5,675
168
-		 Total funds
2022
£
99,567
7,390
3,489
110,446
-
-
-
-
110,446
1,868
2,543
4,411
4,411
1,307
1,307
73,985
5,953
907
30
-
80,875
2,994
1,484
4,478
5,675
168
-		 Total funds
2021
£
71,924
6,231
350
78,505
11
11
39,327
39,327
117,843
4,350
-
4,350
4,350
250
250
68,156
4,597
538
-
1,005
74,296
959
363
1,322
26,130
622
1,270

Page 18

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
Conference/Seminars
Choir, Key board and Music
Software, IT support and related
costs
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 income/(expenditure)
Net income/(expenditure) before
other gains/(losses)
Other Gains
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 5,843
805
-
532
370
317
470
-
-
339
690
-
248
127
398
3,279
2,426
10,001
600
590
1,190
103,694
108,105
-
2,341
2,341
-
2,341
7,454
9,795		 5,843
805
-
532
370
317
470
-
-
339
690
-
248
127
398
3,279
2,426
10,001
600
590
1,190
103,694
108,105
-
2,341
2,341
-
2,341
7,454
9,795		 28,022
1,074
-
709
120
241
289
160
55
339
-
70
920
146
80
1,522
1,747
7,472
600
2,554
3,154
114,516
118,866
-
(1,023)
(1,023)
-
(1,023)
8,477
7,454

Page 19

LIVING WISDOM WORD MINISTRY Detailed Statement of Financial Activities

Page 20