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2023-08-31-accounts

ANNUAL YEAR ACCOUNTS

AS AT

31 AUGUST 2023

Annual Accounts Report

Company number: 07356269

Charity number 1146693

Page 1 of 24

Contents Page
Index and company data 4
Trustees’ report
5-11
Accountant’s report
12
Statement of financial activities 13
Balance sheet 14
Notes to the financial statements 15-22
Detailed income & expenditure account 23
(not part of statutory report)

Page 2 of 24

Annual Accounts Report of the Board of Trustees for year ending 31 August 2023

The Board of Trustees presents its directors’ annual financial report and unaudited financial statements for the year ending 31 August 2023

.

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: 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) 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) 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)

Page 3 of 24

Professionals Contacts

Independent Examiner: Saul Muchenje

SRM Accountants

SRM Accountants &Tax Advisors

6[th] Floor, Grosvenor House, George Street, Corby, NN17 1QB Telephone 01536659064, Mobile 07913765694 Email:info@srmaccountants.com Web: www.srmaccountants.com

Bankers: HSBC

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

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

Page 4 of 24

Independent Examiners' Report

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 2023

I report on the accounts of the charity for the year ended 31 August 2023, which are set out on pages 13 to 24.

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

The date upon which my opinion was expressed is 28 May 2024

Saulmuchenje

Saul Muchenje

Page 5 of 24

TRUSTEES' MANAGEMENT ACCOUNTS REPORT For the year ending 31 August 2023

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), 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 have continued our support through collaborative working and sustainable engagement with our Local Authorities and Boroughs to ensure meeting of our corporate social responsibility in the community.

Page 6 of 24

Local and International Engagement

Following official opening of the former Connaught Centre and now Living Centre, we have continued to witness a steady rise of engagement with the community. This is evidenced by public members’ traffic figures on Community Hall, Storage and Office Hire enquiries and substantive bookings.

The Living Centre also partnered with the Local Authority in championing the Corby Churches’ initiative towards the Ukrainian Refugee cause by offering free facility usage for temporary day sheltering and English Language tutorial classes in the Main Hall and Rooms within the facility.

The Ministry continues to provide support to Living Faith IM Ministries established in Uganda, Zimbabwe and Pakistan. The Support is in the form of token financial donations catering for hire, maintenance and repair of structural buildings used as places of worship. In the year under review, there was prevalence of high winds in Zimbabwe and flooding in Pakistan warranting request for donations in cash and kind to ameliorate impact and effect of natural disasters.

Page 7 of 24

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 fouryear 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 2020 (£) 2021 (£) 2022 (£) 2023 (£)
Restricted Income 25,250 5,523 7,683 25,575
Unrestricted Income 168,301 116,032 175,455 195,849
Total Income 193,551 121,556 183,138 221,424
Expenditure-Unrestricted 199,374 128,796 157,743 209,104
Expenditure-Restricted 748 0 0 0
Expenditure Total 200,122 128,796 157,743 209,104
Surplus/Deficit- Unrestricted -31,073 -12,763 17,712 -13,256
Surplus/Deficit- Restricted 24,502 5,523 7,683 25,575
Deficit Total -6,571 -7,239 25,395 12,320
Fixed Assets 611,813 588,568 564,276 8,199,052
Cash & Cash Equivalents 57,787 42,692 72,978 48,453
Charity Funds 236,114 243,354 268,749 7,907,308

Page 8 of 24

LIVING FAITH INTERNATIONAL MINISTRIES

TRUSTEES' REPORT – continued

For the annual financial year ending 31 August 2023, total unrestricted funds amounted to £ 195,849 which is an increase of £ 20,394 when compared to the previous year. Most of the increase was attributed to the increase in donations given towards the completion of the kitchen. The rest can be attributed to increased missions’ activity which gave rise to increased donations.

Restricted income was £25,575 compared to £7,683 in the previous year, an increase of £17,892; this income mainly from a new income stream., NCP.

Expenditure Analysis

The expenditure was £209,104 in 2023 when compared to £157,743 in 2022. This increase of £51,361 can mainly be attributed to increased missions activities, conference meetings and a general increase in utility and maintenance cost.

As at 31 Aug As at 31 Aug As at 31 Aug As at 31 Aug
Financial element 2020 (£) 2021 (£) 2022 (£) 2023 (£)
Total Income 193,551 121,556 183,138 221,424
Expenditure Total 200,122 128,796 157,743 209,104

Surplus/Deficit Analysis

As at 31 Aug As at 31 Aug As at 31 Aug As at 31 Aug
Financial element 2020 (£) 2021 (£) 2022 (£) 2023 (£)
Surplus/Deficit-Unrestricted
-31,073
-12,763 17,712 -13,256
Surplus/Deficit- Restricted 24,502 5,523 7,683 25,575
Surplus/Deficit Total -6,571 -7,239 25,395 12,320

Page 9 of 24

Fixed Assets

As at 31 Aug As at 31 Aug As at 31 Aug As at 31 Aug As at 31 Aug
Financial element 2020 (£) 2021 (£) 2022 (£) 2023 (£)
Fixed Assets 611,813 588,568 564,276 8,199,052
Cash and Cash Equivalents
The closing bank balances as at 31 August 2023 were as follows.
(£)
Living Centre Building Fund 8,911
Main Church Account 3,854
Covenant Account 30,889
Activities Account 4,798
49,452
As at 31 Aug As at 31 Aug As at 31 Aug As at 31 Aug
Financial element 2020 (£) 2021 (£) 2022 (£) 2023 (£)
Cash & Cash
Equivalents 57,787 42,692 72,978 48,453

Charity Funds

There has been a significant increase in Charity funds from £268,749 in 2022 to £7,907,308 as shown below. This increase is due to the revaluation of our buildings following an event that resulted in an insurance claim.

As at 31 Aug As at 31 Aug As at 31 Aug As at 31 Aug
Financial element 2020 (£) 2021 (£) 2022 (£) 2023 (£)
Charity Funds 236,114 243,354 268,749 7,907,308

Page 10 of 24

LIVING FAITH INTERNATIONAL MINISTRIES

TRUSTEES' REPORT – continued

Risks

The Trustees 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.

Responsibilities for producing financial statements

The Trustees 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

Page 11 of 24

LIVING FAITH INTERNATIONAL MINISTRIES

TRUSTEES' REPORT – continued

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 21/03/2023 and signed on their behalf.

Signed

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

Page 12 of 24

LIVING FAITH INTERNATIONAL MINISTRIES

FOR THE PERIOD ENDING 31 August 2023

Notes
INCOMING RESOURCES
Donations and legacies2
Total incoming resources
RESOURCES EXPENDED
Charitable expenditure
Total resources expended
Net movement in funds
Surplus
8
Unrestricted
Fund
£
195,849
Restricted
Total Funds
Fund
2023
£
£
25,575
221,424
195,849
25,575
221,424
209,104
0
209,104
-13,256
25,575
12,320

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 13 of 24

LIVING FAITH INTERNATIONAL MINISTRIES

2023 2022
BALANCE SHEET – 31 August 2023
Notes £ £ £
Fixed Assets
Tangible assets 1,5 8,199,052 564,276
Current Assets
Cash at bank and investments 6 48,453 72,978
48,453 72,978
Current Liabilities
Creditors - amounts falling due within one
year
7 (37,667) (55,599)
Net Current Assets 10,786 17,379
Liabilities
Creditors- amounts failing due after one year 9 (302,530) (312,906)
NET ASSETS 7,907,308 268,749
Charity Funds
Surplus/Deficit-General fund 1,8 -42,998 17,712
General Fund 269,544 243,354
Surplus- Restricted fund 1,8 25,575 7,683
Revaluation Reserve 1,8 7,655,187 -
CHARITY'S FUNDS 7,907,308 268,749

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 21/03/2023 and are signed on their behalf by:

Signed

Page 14 of 24

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

Page 15 of 24

LIVING FAITH INTERNATIONAL MINISTRIES

NOTES TO FINANCIAL STATEMENTS – 31 August 2023

  1. Accounting Policies

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 16 of 24

LIVING FAITH INTERNATIONAL MINISTRIES

NOTES TO FINANCIAL STATEMENTS – 31 August 2023

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 17 of 24

LIVING FAITH INTERNATIONAL MINISTRIES

NOTES TO FINANCIAL STATEMENTS – 31 August 2023

Resource expended

Fixed Assets

Page 18 of 24

LIVING FAITH INTERNATIONAL MINISTRIES

NOTES TO FINANCIAL STATEMENTS – 31 August 2023

Impairment reviews are carried out as and when evidence comes to light 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
£
195,849
Unrestricted
Income
Fund
£
195,849
Restricted
Income
Gift Aid
Total
Funds
Fund
2021
£
£
£
25,575
-
221,424
Restricted
Income
Gift Aid
Total
Funds
Fund
2021
£
£
£
25,575
-
221,424
195,849 25,575
-
221,424

Page 19 of 24

LIVING FAITH INTERNATIONAL MINISTRIES

NOTES TO FINANCIAL STATEMENTS – 31 August 2023

2 B) Expenditure

Total Unrestricted
Expenditure
Fund
£
209,104
Restricted
Expenditure
Fund
£
-
Total
Expenditure
2022
£
209,104
209,104 - 209,104

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 six 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 20 of 24

LIVING FAITH INTERNATIONAL MINISTRIES

NOTES TO FINANCIAL STATEMENTS – 31 August 2023

5 FIXED ASSETS - TANGIBLE

Cost
At 01
September 2022
Additions in the
year
Disposals
25 Year lease
Capital
improvements
Additional
capital
improvements
Revaluation
(Gain)
Roof
replacement
Revaluations
At 31 August
2023
Depreciation
At 01
September 2022
Charge for the
year
On Disposals
At 31 August
2023
Net book value
at 31 August
2023
Net book value
at 31 August
2022
Media
equipme
nt
Living
Centre
Furniture
Computer
Equipment
Kitchen
Equipment
Total
£
£
£
£
£
£
16,182
595,047
6,354
1,654
36,300
655,537
2,157
15,211
17,368
7,974,153
7,974,153
18,339
8,569,200
6,354
1,654
51,511
8,647,058
12,935
69,951
1,905
662
5,808
91,261
1,326
342,768
635
331
11,685
356,745
-
-
14,261
412,719
2,540
993
17,493
448,006
4,078
8,156,481
3,814
661
34,018
8,199,052
3,247
555,588
4,449
992
-
564,276

Fixed assets

Page 21 of 24

The above figure for fixed assets comprises 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 and this has been capitalised and has been depreciated over 25 years on a straight-line basis.

The Living Faith figure for 21/22 was reapportioned in 22/23 as the kitchen equipment and buildings were classed as the same asset however these have different UEL. £36,300 has been presented separately under kitchen equipment.

The Living Faith buildings have significantly increased in value, this was a result of a revaluation as at 31 March 2023 due to significant water damage that occurred. The works were initially quoted via insurance claim which automatically triggered a revaluation to ascertain the value of the individual components. This evaluation revealed that the buildings were not adequately covered by our insurance given the revaluation amounts stated on the certificates.

The valuations were carried out externally and independently by CS2 Chartered Surveyors in accordance with the methodologies and bases for estimation set out in the professional standards of the Royal Institution of Chartered Surveyors.

The Connaught Centre was valued at £6,091,200 and Corby Baptist church was valued at £2,478,000.

6. CASH AT BANK £

Living Centre Building Fund

Main Church Account

Covenant Account

Activities Account

8,911
3,854
30,889
4,798
49,452
7.
CREDITORS - due within one year
Details of creditors falling within 1 year are as follows:
HSBC Business Bounce Back Loan (£949 per month)
Other creditors
£
11,388
33,984
45,372

8. FUNDS

Surplus
General Funds
Revaluation reserve
General
Restricted
Total
Fund
Fund
£
£
£
-42,998
25,575
17,423
269,544
269,544
7,655,187
-
7,655,187
7,881,773
25,575
7,907,308

Page 22 of 24

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.

£ 267,024

9. CREDITORS FAILING AFTER ONE YEAR

Charity Bank (Over 25 years) 267,024 Other Payables 35,506 302,530

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.

An additional bridge loan of £61,000 was taken in 2020 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.

Due to Coronavirus, the Charity sought a business bounce bank loan to alleviate cash flow problems. Repayment of the loan commenced in June 2021 and will be repaid over 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 23 of 24

LIVING FAITH INTERNATIONAL MINISTRIES

DETAILED INTERIM INCOME AND EXPENDITURE ACCOUNT For year ending 31 August 2023

Incoming Resources-Income
Donations
Other income
Total income
Resources expended- Expenditure
Donations – FCC
Pastor Salary
Printing
Charity Bank payments
Travel and Subsistence
Conferences Costs / Honorarium
Finance Costs
Water, Gas & Electricity
Stationery
Missionary work
Council Tax
Professional fees
Prayer retreat
Food Bank
Property Maintenance
Licensing
Subscriptions
Card Terminal processing fee
Mobile phone
Insurance
Other miscellaneous
Bank charges
Independent Examination Fees
Employer PAYE and NI
Total Expenditure
Special Write Back Creditors
Surplus/Deficit for the period
2023
2022
£
£
193,190
128,440
28,234
54,698
221,424
183,138
1,200
1,200
30,000
26,521
2,553
462
30,364
23,359
7,339
3,313
42,721
16,176
14,082
21,260
10,550
12,132
-
-
47,364
26,761
2,367
3,459
-
-
-
-
-
2,245
7,629
8,981
-
116
2,715
3,329
2,085
2,139
237
281
6,313
3,894
2,532
1,964
256
150
209,104
157,743
-
209,104
157,743
-
209,104
157,743
12,320
25,395