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2020-08-31-accounts

ANNUAL YEAR ACCOUNTS

AS AT

31 AUGUST 2020

Annual Accounts Report

As at 31 August 2020

Company number: 07356269

Charity number 1146693

Page 1 of 26

Contents Page
Index and company data 4
Independent examination report 7
Trustees’ report 8
Accountant’s report 11
Statement of financial activities 12
Balance sheet 13
Notes to the financial statements 15
Detailed income & expenditure account 22
(not part of statutory report)

Page 2 of 26

Annual Accounts Report of the Board of Trustees for year ending 31 August 2020

The Board of Trustees presents its directors’ annual financial report and unaudited financial statements for the year ending 31 August 2020

.

Index and Company data

Reference and Administrative Information

Charity Name: Living Faith International Ministries Charity registration number: 1146693 Company registration number: 07356269 Registered Office & operational address: 170 Cottingham Road, Corby, NN17 1SY Contact details 170 Cottingham Road Corby Northamptonshire NN17 1SY Tel 01536 659633 or 07874 642071 Email: info@livingfaithtemple.com www.livingfaithtemple.com

Trustees

Mr David Bizabani (Chairman)(Youth Pastor) Mr Nigel Tatenda Mutsongonono (Pastor) Mrs Faith Bvumbe (Deaconess) Mr Cletos Mubwanda (Pastor) Dr Xabi Aguire Mr Cleto Mudhefi (Elder)

Senior Pastoral Team

Mr David Midzi Presiding Bishop Mrs Naome Midzi Senior Pastor Management Committee Mr Edson Mubwanda Service Manager (Elder) Mrs Esnart Bizabani Public Relations & Safeguarding Officer (Pastor) Mrs Patience Onwuegbuzie Accounts Payable Manager (Deaconess)

Page 3 of 26

Management Committee (Cont)

Mrs Rose Mubwanda Children Ministry Officer (Elder) Mrs Edna Morris Secretary (Elder) Mr Innocent Masango Building Committee Chairperson (Elder) Mrs Fadzai Masango Head of Catering Department (Deaconess)

Professionals Contacts

Accountants : SRM Accountants

SRM Accountants &Tax Advisors

35 Chatsworth Road, Corby, NN18 8PE Telephone 01536659064, Mobile 07913765694, Email:info@srmaccountants.com Web: www.srmaccountants.com

Independent Examiner : ALC Accountants Limited

14 Westbank Road, Liverpool, Merseyside, L7 9NA

Bankers: HSBC

HSBC, 22-24 Corporation Street, Corby, NN17 1NJ

Page 4 of 26

The Charity Bank Limited, Fosse House,182 High Street, Tonbridge, Kent TN9 1BE T: +44 (0)1732 441900 E: enquiries@charitybank.org

Page 5 of 26

Independent Examiners' Report

Living Faith International Ministries

Independent Examiner's Report to the trustees of the charity

Report of the Independent Examiner to the trustees on the accounts of the Charity for the year ended 31 August 2020

I report on the accounts of the charity for the year ended 31 August 2020, which are set out on pages 15 to 26.

Respective responsibilities of trustees and examiner

The trustees, who are also the directors of Living Faith Temple for the purposes of company law, are responsible for the preparation of the accounts. The trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011, the 2011 Act, and that an independent examination is needed. I am qualified to undertake the examination by being a qualified member of The Association of Certified Chartered Accountants.

Having satisfied myself that the charity is not subject to audit under company law and is eligible for independent examination, it is my responsibility to:

(i) examine the accounts under section 145 of the 2011 Act;

(ii) to follow the procedures laid down in the general Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act; and

(iii) to state whether particular matters have come to my attention.

Basis of Independent examiner's report

My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination Includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual Items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a 'true and fair view' and the report is limited to those matters set out in the statement below.

Independent examiner's statement

In connection with my examination, no matter has come to my attention:

(a) which gives me reasonable cause to believe that in any material respect the requirements:

(i) to keep accounting records in accordance with section 386 of the Companies Act 2006; and (ii) to prepare accounts which accord with the accounting records, comply with the accounting requirements of 396 of the Companies Act 2006 and with the methods and principles of the Statement of Recommended Practice: Accounting and Reporting by Charities; have not been met; or (b) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached

Angeline Chikuruwo

Angeline Chikuruwo ACCA 14 Westbank Road, Liverpool, Merseyside, L7 9NA

The date upon which my opinion was expressed is

Date: 10/01/2021

Page 6 of 26

TRUSTEES' MANAGEMENT ACCOUNTS REPORT For the year ending 31 August 2020

Directors and Trustees

The Living Faith International Ministries is a registered charitable organization (Charity Number 1146693) whose registered address is 170 Cottingham Road Corby NN17 1SY.

The Charity Trustees are: Mr David Nyika Bizabani (Chairman) (Youth Pastor), Mr Nigel Mutsongonono (Pastor), Mrs Faith Bvumbe (Deaconess), Mr Cletos Mubwanda (Pastor), Dr Xabi Aguire and Mr Cleto Mudhefi (Elder)

Principal activity, Organisation and decision making strategy

Living Faith International Ministries operates under guidance of the Church Presiding Bishop, David Midzi, who has overall spiritual oversight of the organization’s operations. The Trustees are accountable to upholding the ministerial vision of the church inclusive of promoting the pastoral and evangelical social responsibility of the church as enunciated by the Church Leadership.

Objectives

Our vision is to reach our local community and beyond with the message of hope in Jesus Christ and to train, equip and release the five-fold ministry gifts both into the communities we operate in and globally. To build a strong church based on biblical principles whose purpose is to teach the word of God with simplicity and clarity so as to effect positive change in our community. Living Faith International Ministries also endeavours to work with other churches and organizations whose mission identifies with their own again to contribute positively to our community. In this regard we avail ourselves to working with and supporting our Local Government to eradicate crime and anti-social behaviour in the community.

Page 7 of 26

LIVING FAITH INTERNATIONAL MINISTRIES

TRUSTEES' REPORT – continued

Review of financial activities

The Financials- 4 year financial overview

The following chart shows a summary of Living Faith Temple’s financial position for a four year period running. The Trustees are happy to present a healthy and ever improving financial state.

As at 31 Aug As at 31 Aug As at 31 Aug As at 31 Aug
Financial element 2017 2018 2019 2020
Restricted Income 32827.00 26069.00 81445.00 25250.00
Unrestricted Income 74688.00 87112.00 151103.00 168301.00
Total Income 107515.00 113181.00 232548.00 193551.00
Expenditure-
Unrestricted 74449.00 85926.00 119250.00 199374.00
Expenditure-Restricted 6944.00 9499.00 0.00 748.00
Expenditure Total 81393.00 95425.00 119250.00 200122.00
Deficit- Unrestricted 239.00 1186.00 31,853.00 -31073.00
Surplus- Restricted 25883.00 16125.00 81445.00 24502.00
Deficit Total 26122.00 17311.00 113298.00 -6571.00
Fixed Assets 4830.00 310667.00 639311.00 611813.00
Cash & Cash
Equivalents 167205.00 73062.00 13426.00 57787.00
Charity Funds 169083.00 180479.00 229509.00 236114.00

Page 8 of 26

LIVING FAITH INTERNATIONAL MINISTRIES

TRUSTEES' REPORT – continued

For the annual financial year ending 31 August 2020, total unrestricted funds amounted to £ 168,301 151,103 which is an increase of £ 17,198 which is a significant drop from £63,991 when compared to the previous year.

Restricted income was £25,250 yet again another significant drop of £56,195 when compared to £81,445 in previous year ending 31August 2019.

Expenditure Analysis

The expenditure was £202,122 in 2020 when compared to £119,250 in 2019 in the previous year with corresponding revenue of £ £193,551 and £232,548 respectively as highlighted in the table below. This shows that there was significant increase in expenditure in the current year as compared to the spending in the preceding years when viewed alongside revenue which was generated in the same period. The effects of Covid 19 were a cause of the increase and also settlement of the Metcalf outstanding amounts propelled the expenditure.

As at 31 Aug As at 31 Aug As at 31 Aug As at 31 Aug
Financial element 2017 2018 2019 2020
Total Income 107515.00 113181.00 232548.00 193551.00
Expenditure Total 81393.00 95425.00 119250.00 202,122.00

Deficit

As stated above, due to significant increase in expenditure without a corresponding increase in revenue in the current financial year, this gave rise to a deficit of £6571 which is a huge drop from a surplus of £113,298.00 from the previous year as shown in the table and chart below.

As at 31 Aug As at 31 Aug As at 31 Aug As at 31 Aug
Financial element 2017 2018 2019 2020
Deficit- Unrestricted 239.00 1186.00 31,853.00 -31,073.00
Surplus- Restricted 25883.00 16125.00 81445.00 24502.00
Deficit Total 26122.00 17311.00 113298.00 -6571.00

Page 9 of 26

Fixed Assets

As at 31 Aug As at 31 Aug As at 31 Aug As at 31 Aug
Financial element 2017 2018 2019 2020
Fixed Assets 4830.00 310667.00 639311.00 611813

Cash and Cash Equivalents

Due to Covid 19, the Church has sustained significant cash flow problems as the Charity primarily receives its income from donors who comes to Church. With lockdown, the Church closed its doors as per Government guidelines and that significantly affected the cash flows resulting the Charity seeking for Coronavirus Business Bounce bank loan of £50,000 from HSBC Bank and that alleviated the cash flow problems to some extent

The closing bank balances as at 31 August 2020 were as follows.

Living Centre Building Fund 7,457 Main Church Account 10,209 Covenant Account 36,726 Activities Account 2,395 57,787 As at 31 Aug As at 31 Aug As at 31 Aug As at 31 Aug Financial element 2016 2017 2018 2019 Cash & Cash Equivalents 167205.00 73062.00 13426.00 56,787.00

Charity Funds

There has been a slight increase in Charity funds from £229,509 in 2019 to £236,114 as shown below.

As at 31 Aug As at 31 Aug As at 31 Aug As at 31 Aug
Financial element 2017 2018 2019 2020
Charity Funds 169083.00 180479.00 229509.00 236114

Page 10 of 26

Financial Highlights

The following are the financial highlights for the year ending 31 August 2020

Cash and Cash equivalents

The following is an extract from the notes to the accounts (Note 6, see the accounts).

6 CASH AT BANK

Living Centre Building Fund
Main Church Account
Covenant Account
Activities Account

Building Fund opening balance as at 01/09/2019
Movements during the year

Building Fund closing balance as at 31/08/2020
£
7,457
10,209
36,726
2,395
57,787
395
7,062
7,457

8. FUNDS

Deficit
Funds Movement
Revaluation reserve
General
Restricted
Total
Fund
Fund
£
£
£
-31,073
24,502
-6,571
242,685
242,685
-
-
211,612
24,502
236,114

Page 11 of 26

LIVING FAITH INTERNATIONAL MINISTRIES

TRUSTEES' REPORT – continued

Risks

The Trustee continue to assess the risks to which the Charitable Trust is exposed. This includes the potential risks to the Trust which are posed by the uncertainties in the investment markets. They have concluded that their policies remain prudent and reasonable in the current circumstances. The Management Committee has conducted a review of the major risks to which Living Faith International Ministries is exposed. A risk register has been established and is updated at least annually. Where appropriate, systems or procedures have been established to mitigate the risks Living Faith International Ministries faces. Significant external risks to funding have led to the development of a strategic plan which will allow for the diversification of funding and activities. Internal control risks are minimised by the implementation of procedures for authorisation of all transactions and projects. Procedures are in place to ensure compliance with health and safety of church members, suppliers, volunteers, clients and visitors to the church. These procedures are periodically reviewed to ensure that they continue to meet the needs of the charity.

Page 12 of 26

LIVING FAITH INTERNATIONAL MINISTRIES

TRUSTEES' REPORT – continued

Responsibilities for producing financial statements

The Trustee prepare accounts which give a true and fair view of the state of affairs of the Charity and of its income and expenditure for that period. In

Appreciation

The Trustees wish to place on record their appreciation of the efforts of the Management Committee and volunteers, for the welfare of the society.

This Annual accounts report was approved by the Board of Trustees on 20 December 2020 and signed on their behalf.

Signed David Nyika Bizabani

............................................ MR DAVID BIZABANI

Page 13 of 26

Accountants' Report

Accountants' report to the directors and/or trustees of Living Faith International Ministries

You consider that the company/charity is exempt from an audit for the year ended 31 August 2020, but an independent examination from an external examiner as per Charities Commission guidelines. You have acknowledged, on the balance sheet, your responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts. These responsibilities include preparing accounts that give a true and fair view of the state of affairs of the company/charity at the end of the financial year and of its profit or loss (income and expenditure account in case of charity) for the financial year ending 31 August 2020.

In accordance with your instructions and the special provisions of Part VII of the Companies Act 1985 relating to small entities, we have prepared the accounts which comprise annual statement of financial statement, the Balance Sheet and the related notes from the accounting records of the company/charity and on the basis of information and explanations you have given to us.

We have not carried out an audit or any other review, and consequently we do not express any opinion on these accounts.

Msmuchenje

Saul Muchenje

ACCA, MSc Finance, BSc Applied Accounting, PhD Finance Finalist

SRM Accountants &Tax Advisors

SRM Accountants, 6[th] Floor, Grosvenor House George Street, Corby, NN17 1QB 10 December 2019

Page 14 of 26

LIVING FAITH INTERNATIONAL MINISTRIES

QUARTERLY STATEMENT OF FINANCIAL ACTIVITIES

FOR THE PERIOD ENDING 31 August 2020

Notes
INCOMING RESOURCES
Donations and legacies2
Total incoming resources
RESOURCES EXPENDED
Charitable expenditure
Total resources expended
Net movement in funds
Surplus (Deficit)
8
Unrestricted
Fund
£
168,301
Restricted
Total Funds
Fund
2020
£
£
25,250
193,551
168,301 25,250
193,551
199,374
748
200,122
-31,073
24,502
-6,571

The Statement of Financial Activities includes all gains and losses in the year and therefore a statement of total recognised gains and losses has not been prepared. All of the above amounts relate to continuing activities.

Page 15 of 26

LIVING FAITH INTERNATIONAL MINISTRIES

BALANCE SHEET – 31 August 2020
Notes
Fixed Assets
Tangible assets
1,5
Current Assets
Cash at bank and investments
6
Current Liabilities
Creditors - amounts falling due within one
year
7
Net Current Assets
Liabilities
Creditors- amounts failing due after one year 9
NET ASSETS
Unrestricted funds -
Deficit-General fund
1,8
Restricted fund
General Fund movement
Surplus- Grant fund
1,8
CHARITY'S FUNDS
2020
£
£
611,813
57,787
57,787
(12,210)
45,577
(421,276)
236,114
-31,073
242,685
24,502
236,114
2019
639,311
13,426
13,426
(7,938)
5,488
(415,290)
229,509
81,445
116,211
31,853
229,509

These accounts are prepared in accordance with the special provisions of Part VII of the Companies Act 1985 relating to small entities.

These financial statements were approved by the members of the committee and authorised for issue on 20 December 2019 and are signed on their behalf by:

Signed David Nyika Bizabani

............................................ MR DAVID BIZABAN

Page 16 of 26

LIVING FAITH INTERNATIONAL MINISTRIES

NOTES TO FINANCIAL STATEMENTS – 31 August 2020

The principal accounting policies are summarised below. The accounting policies have been applied consistently throughout the year and in the preceding year.

Basis of preparation of accounts

The financial statements have been prepared under the historical cost convention, as modified by the inclusion of fixed asset investments at market value, and in accordance with the Companies Act 1985 and the Statement of Recommended Practice: Accounting and Reporting by Charities issued in March 2005.

Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity. Unrestricted funds include a revaluation reserve representing the restatement of assets at market values.

Designated funds are unrestricted funds earmarked by the Management Committee for particular purposes.

Restricted funds are subjected to restrictions on their expenditure imposed by the donor or through the terms of an appeal or voluntarily for the purpose of raising funds for a particular purpose.

Page 17 of 26

LIVING FAITH INTERNATIONAL MINISTRIES

NOTES TO FINANCIAL STATEMENTS – 31 August 2020

Incoming resources

All incoming resources are included in the statement of financial activities when the charity is entitled to, and virtually certain to receive, the income and the amount can be quantified with reasonable accuracy. The following policies are applied to particular categories of income:

Page 18 of 26

LIVING FAITH INTERNATIONAL MINISTRIES

NOTES TO FINANCIAL STATEMENTS – 31 August 2020

Resource expended

Fixed Assets

Page 19 of 26

LIVING FAITH INTERNATIONAL MINISTRIES

NOTES TO FINANCIAL STATEMENTS – 31 August 2020

Impairment reviews are carried out as and when evidence comes to light that that the recoverable amount of a functional fixed asset is below its net book value due to damage, obsolescence or other relevant factors.

Revaluation

Tangible fixed assets are initially be measured at cost which are the costs that are directly attributable to bringing the asset into working condition for its intended use. Subsequent expenditure should be capitalised in three circumstances:

2. A) Donations and other Income

The donations are received through either cash, cheque, card payments or direct payments into the bank accounts. The amount received during the 12 months period

Total Unrestricted
Income
Fund
£
156278
Unrestricted
Income
Fund
£
156278
Restricted
Income
Gift Aid
Total
Funds
Fund
2018
£
£
£
25,250
12,023
193,551
Restricted
Income
Gift Aid
Total
Funds
Fund
2018
£
£
£
25,250
12,023
193,551
156,278 25,250
12,023
193,551

Page 20 of 26

LIVING FAITH INTERNATIONAL MINISTRIES

NOTES TO FINANCIAL STATEMENTS – 31 August 2020

2 B) Expenditure

Total Unrestricted
Expenditure
Fund
£
199,374
Restricted
Expenditure
Total
Expenditure
Fund
2018
£
£
748
200,122
199,374 748
200,122

3. REMUNERATION

The Senior Pastor is the only full time employee paid by the charity. However, the remuneration paid to the Pastor is only an allowance to cover His costs, the church is not in a position to appropriately remunerate him as yet. All the other members work on voluntary basis and do not receive any remuneration from the Charity.

SRM Accountants, the named accountants for Living Faith Temple, have been providing accountancy and tax advisory services on voluntary basis for the past three years and no accountancy fees have been charged in the past. The chartered Accountants firm have clearly stated that they wish to maintain the same position for an unforeseeable period as long as they remain the appointed firm until such time the Trustees and the management council decide to appoint a different firm.

4. DIRECTORS/TRUSTEES' REMUNERATION

No remuneration or benefits were received by the Trustees during the year. Any expenses paid were re-imbursement for costs incurred.

Page 21 of 26

LIVING FAITH INTERNATIONAL MINISTRIES

NOTES TO FINANCIAL STATEMENTS – 31 August 2020

5 FIXED ASSETS - TANGIBLE

Cost
At 01 September 2019
Additions in the year
Disposals
25 Year lease
Capital improvements
Additional capital
improvements
Roof replacement
Revaluations
At 31 August 2020
Depreciation
At 01 September 2019
Charge for the year
On Disposals
At 31 August 2020
Net book value at 31
August 2020
Net book value at 31
August 2019
Media
equipment
Living
Centre
Furniture
Total
£
£
£
£
11,711
331,887
343,598
6,354
6,354
36,878
36,878
148,282
148,282
36,300
36,300
78,000
78,000
11,711
631,347
6,354
649,412
10,101
8,491
1,610
25,253
635
27,498
-
-
11,711
25,253
635
35,989
-
606,094
5,719
611,813
1,610
-
1,610

Fixed assets

The above figure for fixed assets comprise of the following figures

The Living Faith International Ministries have taken a 25 year lease of the former Corby Baptist Church at a consideration of £36,878.00 and this has been capitalised and has be depreciated over 25 years on a straight line basis.

Depreciation has now be accounted for after the first 2 years of acquisition of renovations works. Depreciation has now been taken into account for the current year and all the preceding years.

Page 22 of 26

6 CASH AT BANK

Living Centre Building Fund
Main Church Account
Covenant Account
Activities Account

Building Fund opening balance as at 01/09/2019
Movements during the year

Building Fund closing balance as at 31/08/2020
7.
CREDITORS - due within one year
Details of creditors falling within 1
year(Finance costs) are stated on note 9
£
7,457
10,209
36,726
2,395
57,787
395
7,062
7,457
£
12,210

8. FUNDS

Surplus /(Deficit)
Funds Movement
Revaluation reserve
General
Restricted
Total
Fund
Fund
£
£
£
-31,073
24,502
-6,571
242,685
242,685
-
-
211,612
24,502
236,114

The trustees have designated that two funds (General & Living Centre

building Fund) shall be set aside for the specific purposes as outlined in note 1(f). Transfers are made in line with these purposes.

9.
CREDITORS FAILING AFTER ONE YEAR
Charity Bank (Over 25 years)
Industrial Kitchen installation funded by 3 companies over 5years
Arkle finance (507.85 per month) 24,377
Investec Asset Finance (471.36 per month) 22,625
HSBC Business Bounce back Loan50,000

Bridge Loan (now incorporated into main loan)
£
263,274
97,002
61,000
421,276

Page 23 of 26

The loan from the Charity Bank has been obtained at an interest rate of 3.25% per cent per annum above the base rate of the Bank of England from time to time, provided that if the Bank of England base rate is lower than 0%, the Bank of England base rate applicable to the Loan shall be deemed to be 0% for the period of time that the rate is lower than 0%.

The term of the loan is 25 years. The start date of the loan was 20 April 2018 with the first interest repayment debited on 12 May 2018.

A bridge loan of £61,000 has been taken to fund the roof replacement for the Sports Hall and this was meant to be to be repaid in 2 tranches with the first end of August but The Charity Bank has now incorporated it into the main loan account which is to be spread over the 25 year period.

The finance from Bibby Finance has been paid in full.

Due to Coronavirus, the charity has sought a business bounce bank loan to alleviate cash flow problems. Repayment of the loan will start in August 2021 for the next 5 years.

10 Taxation

As a charity, Living Faith International Ministries is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or s256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. No tax charges have arisen in the Charity except PAYE related liability.

Page 24 of 26

LIVING FAITH INTERNATIONAL MINISTRIES DETAILED INTERIM INCOME AND EXPENDITURE ACCOUNT

For year ending 31 August 2020

Incoming Resources-Income
Donations
Donations
Other income
Total income
Resources expended- Expenditure
Baptist Church, Rentals
Pastor salary
Specialised services
Printing
Charity Bank payments
Travel and Subsistence
GEC WOE Conferences Costs
Finance Cost
Water, Gas & Electricity
Stationery
Missionary work
Council Tax
Professional fees
Prayer retreat
Food Bank
Property Maintenance
Licensing
Subscriptions
Companies House Filing
Card Terminal processing fee
Other professional fees
Insurance
Bank charges
2020
£
168,301
25,250
193,551
-
24,036
-
580
16,796
3,757
1,128
39,107
12,563
172
20,110
406
7,731
2,475
748
60,360
215
1,514
-
3,745
-
4,679
-
200,122

Leave and Cleave Conference - Independent Examination Fees 200,122 Governance cost

Employer PAYE and NI
Total expenditure
Special Write Back Creditors
Deficit for the period
-
200,122
200,122
(6,571)