ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
LIFESPRING CHURCH
A COMPANY LIMITED BY GUARANTEE REGISTERED COMPANY No: 08087254 REGISTERED CHARITY No: 1148013
Independent Examiners Ltd Unit 2 The Broadbridge Business Centre Delling Lane Bosham West Sussex PO18 8NF
LIFESPRING CHURCH
| CONTENTS | |
|---|---|
| Pages 3 to 5 | Directors' Annual Report |
| Page 6 | Statement of Financial Activities |
| Page 7 | Balance Sheet |
| Pages 8 to 15 | Notes to the Financial Statements |
| Page 16 | Statement of cashflows |
| Page 17 | Independent Examiner's Report |
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LIFESPRING CHURCH
DIRECTORS REPORT FOR THE YEAR ENDED 31 DECEMBER 2021
REFERENCE AND ADMINISTRATIVE DETAILS:
| REGISTERED CHARITY NUMBER | 1148013 | |
|---|---|---|
| REGISTERED COMPANY NUMBER | 08087254 | |
| START OF FINANCIAL YEAR | 1st January 2021 | |
| END OF FINANCIAL YEAR | 31st December 2021 | |
| DIRECTORS AT 31ST DECEMBER 2021 | Mr David Cornelius | - Chairman |
| (also Trustees under charity law) | Mr Luke Ellis | |
| Mrs Catherine Peirce | ||
| Ms Elizabeth Monger (appointed | 9th June 2021) | |
| Mr Oluwasegun Olojo-Kosoko (appointed 11th July 2021) | ||
| Mrs June Bugenyi (resigned 9th | February 2022) | |
| REGISTERED ADDRESS | 143-145 Oxford Road | |
| Reading, RG1 7UY. | ||
| PRIMARY BANKERS | HSBC | |
| 26-28 Broad Street | ||
| Reading, RG1 2BU. | ||
| SOLICITORS | Hewetts | |
| 55/57 London Street | ||
| Reading, RG1 4PS. | ||
| ACCOUNTANTS | Independent Examiners Ltd | |
| Unit 2 The Broadbridge Business Centre | ||
| Delling Lane, Bosham | ||
| West Sussex PO18 8NF |
GOVERNANCE:
The existing directors/Directors appoint any new directors/Directors following the provisions laid out in the organisation's governing instrument. The selection method is that appointments are made by the leadership team headed by the Pastor.
GOVERNING INSTRUMENT
Memorandum And Articles Incorporated 29/05/2012
LEGAL STATUS Incorporated Charity
OBJECTS
The charity's objects ("the objects") are for the public benefit and are restricted to the following: (a) to advance the Christian faith in accordance with the statement of beliefs in the schedule hereto attached in such parts of Reading, the United Kingdom or the world as the Directors may from time to time think fit and to fulfil such other purposes which are exclusively charitable according to the law of England and Wales and are connected with the charitable work of the charity; (b) to relieve persons who are in conditions of need, financial hardship or sickness and who may be aged and to relieve the distress caused thereby in the said location and in such other parts of the United Kingdom or the world as the Directors may from time to time think fit including but not by way of limitation the support of those recovering from addictions; (c) to further Christian education in such parts of Reading, the United Kingdom and the world as the Directors may from time to time think fit; (d) to provide or assist in the provision of facilities in the interests of social welfare for recreation or other leisure time occupation of individuals who have need of such facilities by reason of their youth, age, infirmity or disability, financial hardship or social circumstances with the object of improving their conditions of life.
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LIFESPRING CHURCH
DIRECTORS REPORT FOR THE YEAR ENDED 31 DECEMBER 2021
The Directors are pleased to present their annual directors' report together with the financial statements of the charity for the year ending 31 December 2021 which are also prepared to meet the requirements for a directors' report and accounts for Companies Act purposes.
The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and 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 (FRS102) (effective 1 January 2015) - (Charities SORP (FRS102)).
OBJECTIVES AND ACTIVITIES
LifeSpring Church is based in The Pavilion, close to Reading town centre but is a ‘cell church’ which places a significant emphasis on the support and care we can give each other in small groups. During the week these cells (or LifeGroups) meet in a variety of locations across Reading and we currently have about twenty-five LifeGroups for men, women, youth and children.
We continue to cater for all ages, with groups ranging from Mother and Toddler to the weekly Over-60s lunch at Café 12, all reaching out and providing valuable support for the local community. Whilst many of these activities had been limited by the restrictions of Coronavirus regulations, they continued as far as possible in an adapted form and with easing of restrictions have returned to pre-Covid activity levels. Further afield, the Church continues to assist a number of Churches, ministries and missionaries overseas, particularly in Africa with financial, prayer and practical support.
The Directors confirm that they have referred to the Charity Commission's guidance on public benefit when reviewing the charity's aims and objectives, in planning future activities, and in setting the policies for the year.
ACHIEVEMENTS AND PERFORMANCE
There is no doubt that Covid-19 has had a significant impact on the work of the church, but the effect had very much been adaption to the way things are done, rather than any wholesale ceasing of the activities and a number of things introduced as a result of Covid-19 restrictions have continued, since they have enhanced the reach and impact of the church.
2021 had begun with the expectation that the restrictions would gradually ease and despite some changes the general stability of the regulations meant that it was possible. Activities within the Pavilion building began after appropriate risk assessments, culminating in the Sunday service being in-person as well as online. Revenue from hires remained low, but the judicious use of furlough to reduce people costs and taking all appropriate economic support from central government has mitigated this impact to the point where it has not been a factor in prudent financial management during the year.
Café 12 was also able to open in line with the Government guidance and the free drinks on the Pavilion steps continued as due to its success in providing a listening ear to those passing and to the local community. Other community work has also continued, adapting to the needs and restrictions throughout and as expected, some of these adaptions have been so successful they have continued once restrictions were lifted.
Overall, God has shown his provision in 2021 which has been a challenging, but still successful year where LifeSpring has continued to show that it can adapt and flourish even in difficult circumstances.
LIFESPRING’S ORGANISATIONAL STRUCTURE AND MANAGEMENT
A number of organisational changes took place during 2021 with Liz Monger and Segun Olojo-Kosoko joining as directors and trustees. We are extremely grateful for valuable support and hard work that they bring to the team. Dan and Katharine Hollands returned from their year in Columbia at the beginning of 2021, deciding that they would not be returning to their positions after their sabbatical and Tamlyn Quirk agreed to remain on whilst the church reviewed what was the appropriate way forward for the children’s ministry. We are very grateful to Tamlyn, Dan and Katharine all the time and dedication in overseeing this important ministry. We were very pleased to appoint Sarah Lawrence as the new permanent Junior Church Overseer in August.
The organisational structure consists of:
Directors/Trustees: (see above) - responsible for management of the charity. Church Leaders: · Neville Hollands · Jackie Hollands · Jamie Burnham · Heather Herring · James Hollands · Jon Hollands · Craig Lawrence Events Manager: Mckensy Gardner Charity Bookkeeper: Marion Shepherd Communications Manager: James Hollands Treasurer:* Luke Ellis
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LIFESPRING CHURCH
DIRECTORS REPORT FOR THE YEAR ENDED 31 DECEMBER 2021
Youth Work: James Hollands Sarah Lawrence Community Team Leader: Jackie Jackson Door of Hope Managers: Jim Herring Heather Herring*
- = employed, either full or part-time
POST BALANCE SHEET EVENTS (COVID-19)
The Directors have reviewed the 2021 accounts in light of the easing and opening up of life from the COVID-19 pandemic and are of the view that this is a non-adjusting post balance sheet event for LifeSpring Church. Whilst government restrictions had placed some limitations on the Pavilion building as a place of worship, Café and events venue, the prudent steps taken to manage the loss of income resulting and the continued level of giving through direct bank transfer has meant that income and expenditure remain in comfortable balance. As of the signature date of these accounts, we continue to have sufficient reserves to cover anticipated expenses for the foreseeable future and as a result believe that LifeSpring Church remains a going concern.
FINANCIAL REVIEW
Any funds in deficit, reasons and any action being taken
The Church had an accounting surplus of £51,735 in 2021 (compared to a deficit of £73,207 in 2020), much of the deficit in 2020 is due to an accounting charge of £67,945 to reflect diminishing value of capital refurbishment of the Pavilion. However the church's finances at the end of 2021 remain healthy and we finished the 2021 year with a total cash balance of £174,325.
POLICIES
Reserves
At the balance sheet date the charitable company unrestricted free reserves totalled: £ 1,532,120 This excludes £19,219 which has been ringfenced by the Trustees as unrestricted designated funds.
The Directors have considered the level of reserves they wish to retain, appropriate to the charity's needs. This is based on the charity's size and the level of financial commitments held. The Directors aim to ensure the charity will be able to continue to fulfil its charitable objectives even if there is a temporary shortfall in income or unexpected expenditure. The Directors will endeavour not to set aside funds unnecessarily.
Grant-making Approximately 10% of the Charity’s income is given away to other Christian organisations and individuals recommended by the Leadership Team, both home and abroad.
Investments selection
The Charity does not have a policy to select specific investments apart from for the use of the Charity itself.
Directors Responsibilities
The Charities Act and the Companies Act require the Board of Directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity as at the end of the financial year and of the surplus or deficit of the charity. In preparing those financial statements the Board is required to :-
- select suitable accounting policies and then apply them consistently;
• make judgements and estimates that are reasonable and prudent; and • prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation;
• state whether applicable accounting standards and statements of recommended practice have been followed , subject to any material departures disclosed and explained in the financial statements.
The Directors/Directors are also responsible for maintaining adequate accounting records which disclose with reasonable accuracy at any time the financial position of the charity and which are sufficient to show and explain the charity's transactions and enable them to ensure that the financial statements comply with the Companies Act 2006 and comply with regulations made under the Charities Act. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Directors/ Directors are also responsible for the contents of the Directors' report, and the responsibility of the independent examiner in relation to the Directors' report is limited to examining the report and ensuring that , on the face of the report, there are no inconsistencies with the figures disclosed in the financial statements. These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
Declaration: I declare, in my capacity of Charity Trustee, that:
• the Directors have approved the report above; and • have authorised me to sign it on their behalf. 22/09/22 Signature: D Cornelius Full name : Mr David Cornelius Date : ….............................
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LIFESPRING CHURCH
STATEMENT OF FINANCIAL ACTIVITIES (including income and expenditure account) For The Year Ended 31st December 2021
| Notes Income Donations and legacies 3 Income from charitable activities 4 Income from other trading activitie 5 Investment income 6 Total income Expenditure Costs of Raising Funds 7a Expenditure on charitable activities 7b Total Expenditure Net income/(expenditure) Transfers between funds 18 Net movement in funds Reconciliation of funds: Total Funds Brought Forward Total Funds Carried Forward |
Restated Unrestricted Designated Restricted TOTAL TOTAL Funds Funds Funds 2021 2020 £ £ £ £ £ 429,112 6,654 8,867 444,633 405,952 44,878 - - 44,878 40,199 24,425 - - 24,425 25,950 1 - - 1 - 498,416 6,654 8,867 513,937 472,101 14,752 - - 14,752 15,559 445,047 3 2,400 447,450 529,749 459,799 3 2,400 462,202 545,308 38,617 6,651 6,467 51,735 (73,207) (2,605) 12,568 (9,963) - - 36,012 19,219 (3,496) 51,735 (73,207) 1,496,108 - 35,565 1,531,673 1,604,880 1,532,120 19,219 32,069 1,583,408 1,531,673 |
|---|---|
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derives from continuing activities.
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LIFESPRING CHURCH
BALANCE SHEET As At 31 December 2021
| Note Fixed Assets Tangible assets 14 Total fixed assets Current Assets Debtors 15 Cash at bank and in hand Total Current Assets Liabilities Creditors: falling due within 1 year 16 Net Current assets Total assets less current liabilities 17 Net assets Funds of the Charity 19 Unrestricted income funds Restricted Funds Total Charity Funds Creditors: amounts falling due after more than 1 year |
Company registration number: 08087254 Restated Unrestricted Designated Restricted 31-Dec-21 31-Dec-20 Funds Funds Funds Total Total £ £ £ £ £ 1,907,048 - - 1,907,048 1,973,239 3,945 - - 3,945 - 123,037 19,219 32,069 174,325 110,798 126,982 19,219 32,069 178,270 110,798 1,910 - - 1,910 52,364 125,072 19,219 32,069 176,360 58,434 2,032,120 19,219 32,069 2,083,408 2,031,673 500,000 - - 500,000 500,000 1,532,120 19,219 32,069 1,583,408 1,531,673 1,532,120 - - 1,532,120 1,496,108 - 19,219 32,069 51,288 35,565 1,532,120 19,219 32,069 1,583,408 1,531,673 |
|---|---|
The directors are satisfied that for the year ended on 31 December 2021 the charitable company was entitled to exemption from the requirement to obtain an audit under section 477 of the Companies Act 2006 and that no member or members have required the company to obtain an audit of its accounts for the year in question in accordance with section 476 of the Act. However, in accordance with section 145 of the Charities Act 2011, the accounts have been examined by an Independent Examiner whose report appears on page 17.
The directors acknowledge their responsibility for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.
The accounts have been prepared in accordance with the provisions in Part 15 of the Companies Act 2006 applicable to companies subject to the small companies regime and in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2015) - (Charities SORP (FRS102)).
The directors acknowledge their responsibility for ensuring that the company keeps proper accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of the financial year and if its profit and loss for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to accounts, so far as applicable to the company.
The notes on pages 8 to 15 form part of these financial statements.
Approved by the Directors on the : …..............................22/09/22 Signed on their behalf by Director D Cornelius Print Name: MR DAVID CORNELIUS Company Registration Number: 08087254
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LIFESPRING CHURCH NOTES TO THE FINANCIAL STATEMENTS
1. Accounting policies
The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:
a) Basis of preparation
The accounts have been prepared in accordance with the provisions in Part 15 of the Companies Act 2006 applicable to companies subject to the small companies regime and in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2015) - (Charities SORP (FRS102)).
Advantage has been taken of Section 396(5) of The Companies Act 2006 to allow the format of the financial statements to be adapted to reflect the special nature of the charity's operation and in order to comply with the requirements of the SORP.
Lifespring Church meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost unless otherwise stated in the relevant accounting policy notes.
Preparation of accounts on a going concern basis
Preparation of the accounts is on a going concern basis. The Directors are of the view that the level of reserves will support the charity going forward.
Changes to prior period accounts
The previous accounts have been restated for the following reason:
Fixed assets purchased totalling £20,733.77 were not capitalised to the Fixed Asset Register in financial year end 31st December 2020 and instead were written off in year as expenditure. In accordance with the Church fixed asset accounting policy 1.g), a correction has been made to the 2020 figures to capitalise the assets and reflect the correct position. Relevant depreciation of those fixed assets of £2,492.65 has also been charged to the financial year ended 31st December 2020.
The overall effect on reserves is
| As originally | As restated | |
|---|---|---|
| stated | ||
| 31-Dec-20 | 31-Dec-20 | |
| £ | £ | |
| Net expenditure | (91,448) | (73,207) |
| Net assets | 1,513,432 | 1,531,673 |
There have been no other changes to previous accounts.
b) Income
All incoming resources are included on the Statement of Financial Activities when the charity is legally entitled to the income, receipt is probable and the amount can be quantified with reasonable accuracy.
c) Interest receivable
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the Bank.
d) Fund accounting
Unrestricted funds are available to spend on activities that further any purposes of the charity. Designated funds are unrestricted funds of the charity which the Directors have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charity's work or for specific projects being undertaken by the charity. Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
e) Expenditure
Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources. Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.
f) Allocation of support costs
Support costs include central functions and where material have been allocated to each activity cost category on a basis consistent with the use of resources.
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LIFESPRING CHURCH NOTES TO THE FINANCIAL STATEMENTS
g) Tangible fixed assets
Tangible fixed assets are stated at cost less depreciation. Depreciation is not charged on freehold land. Depreciation on other tangible fixed assets is provided at rates calculated to write off the cost of those assets, less their estimated residual value, over their expected useful lives on the following basis:
Freehold property - 0% Freehold property refurbishment 5% straight line Plant and machinery - 25% straight line Motor vehicles - 25% straight line Office equipment - 25% straight line
Tangible fixed assets for use by the charity are capitalised if they can be used for more than one year, and cost at least £1,500. They are valued at cost or, if gifted, at the value to the charity on receipt.
h) Employee benefits
Short term benefits including holiday pay are recognised as an expense in the period in which the service is received.
i) Operating leases
Rental charges payable under operating leases are charged on a straight line basis over the terms of the lease.
j) Taxation
The charity is exempt from tax on its charitable activities.
2. Legal status of the charity
The charity is a company limited by guarantee and has no share capital. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.
3. Income from donations and legacies
| Donations Notes Donations and gifts Special offerings Gift aid received Grants Post box Other Total |
Unrestricted Designated Restricted TOTAL TOTAL Funds Funds Funds 2021 2020 £ £ £ £ £ 313,573 6,654 80 320,307 277,636 971 - 6,499 7,470 14,207 57,731 - - 57,731 51,621 50,583 - - 50,583 53,277 - - 2,288 2,288 5,077 6,254 - - 6,254 4,134 429,112 6,654 8,867 444,633 405,952 |
|---|---|
4. Income from charitable activities
| Church events, activities and fundraising Car Parking Youth Donated Services(Door of Hope - salary support) Total |
Unrestricted Designated Restricted TOTAL TOTAL Funds Funds Funds 2021 2020 £ £ £ £ £ 4,988 - - 4,988 917 561 - - 561 857 218 - - 218 130 39,111 - - 39,111 38,295 44,878 - - 44,878 40,199 |
|---|---|
5. Income from other trading activities
| Letting of property held for functional use Café 12 - trading income 20 Total |
Unrestricted Designated Restricted TOTAL TOTAL Funds Funds Funds 2021 2020 £ £ £ £ £ 10,757 - - 10,757 13,669 13,668 - - 13,668 12,281 24,425 - - 24,425 25,950 |
|---|---|
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LIFESPRING CHURCH NOTES TO THE FINANCIAL STATEMENTS
| 6. Investment income Interest received Total |
Unrestricted Designated Restricted TOTAL TOTAL Funds Funds Funds 2021 2020 £ £ £ £ £ 1 - - 1 - 1 - - 1 - |
|---|---|
The investment income arises from money held in interest bearing deposit accounts.
7a. Cost of raising funds
| Hire and Event expenses Café expenses 20 Total |
Unrestricted Designated Restricted TOTAL TOTAL Funds Funds Funds 2021 2020 £ £ £ £ £ 3,824 - - 3,824 6,898 10,928 - - 10,928 8,661 14,752 - - 14,752 15,559 |
|---|---|
7b. Expenditure on charitable activities
| Notes Buildings Community Depreciation Donated services * 11 Employment 10 Gifts and Donations Miscellaneous Mission and grants 12 Office and administration Pastoral, Church and Counselling Youth and children Governance Costs (see note 7c) Support Costs (see note 7c) Total |
Restated Unrestricted Designated Restricted TOTAL TOTAL Funds Funds Funds 2021 2020 £ £ £ £ £ 47,806 - - 47,806 46,957 4,266 - - 4,266 1,825 73,848 - - 73,848 70,438 - - - - 70,348 272,656 - - 272,656 268,810 1,250 - - 1,250 - 610 - - 610 484 17,339 - 2,288 19,627 35,911 13,898 3 112 14,013 16,006 8,076 - - 8,076 14,263 3,424 - - 3,424 3,059 1,500 - - 1,500 1,560 374 - - 374 88 445,047 3 2,400 447,450 529,749 |
|---|---|
- The expenditure on donated services in 2020 represents £70,348 of mortgage payments paid by Lifespring Church on behalf of Lifespring Trust.
7c) Analysis of governance and support costs
| Independent examiners fees Professional Fees |
Support Governance Total Basis of Apportionment £ £ £ - 1,500 1,500 Actual cost 374 - 374 Actual cost 374 1,500 1,874 |
|---|---|
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LIFESPRING CHURCH NOTES TO THE FINANCIAL STATEMENTS
8. Summary analysis of expenditure on charitable activities
This table shows the cost of the main charitable activities including support costs and grant funding to third parties.
| Activity or programme Direct charitable activities Charitable grants (note 12) Governance costs Support costs 9. Net income/(expenditure) for the year This is stated after charging: Depreciation Independent Examiner's remuneration |
Church activities Grant making Total and community activities initiatives £ £ £ 425,949 - 425,949 - 19,627 19,627 1,500 - 1,500 374 - 374 427,823 19,627 447,450 Unrestricted Restricted TOTAL TOTAL Funds Funds 2021 2020 £ £ £ £ 73,848 - 73,848 67,945 1,500 - 1,500 1,560 75,348 - 75,348 69,505 |
|---|---|
10. Analysis of staff costs, trustee remuneration and expenses and the cost of key management personnel
| Salaries and wages Employers National Insurance Contributions Employers Pension Contributions Expenses and allowances Staff Training Costs Payroll Processing Fees DOH Contribution to salary costs |
2021 2020 £ £ 237,068 233,221 13,866 14,290 17,961 17,467 2,575 2,258 66 512 1,120 1,062 272,656 268,810 (39,111) (38,295) |
|---|---|
Social security costs are shown net of the current HMRC annual employment allowance. No employee had employment benefits in excess of £60,000 (2020 : nil). Pensions are wholly charged to unrestricted funds.
The average head count was 15 during this financial year (2020: 13.5). The number of full-time equivalent employees (including casual and part-time staff) during the year were as follows:
| Area employed in: Charitable activities | 2021 2020 7.50 6.75 7.50 6.75 |
|---|---|
Trustee and related party transactions
In the period the charity has paid remuneration to trustees and related parties to trustees for services supplied to the Church as follows:
| Name Mrs E Monger (Trustee) Spotty Dog Strategy (Related Party) |
Legal Authority Governing document Normal commercial terms |
Remuneration 2021 2020 Total Total £ £ £ 3,298 3,298 - - - 1,112 3,298 3,298 1,112 Amounts paid or benefit value |
|---|---|---|
For the 12 months ended 31 December 2021 payments to Directors and Related Parties as disclosed above were as follows:
One Director received remuneration of £3,298 for their role as cafe 12 assistant (2020: £Nil)
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LIFESPRING CHURCH NOTES TO THE FINANCIAL STATEMENTS
No payments were paid to related parties in 2021 (2020: £1,112 was paid to Spotty Dog Strategy Ltd a company owned by Richard and Catherine Matthews (R Matthews was a Director until 31st December 2020) for training, reimbursement of website domain and an insurance claim for damaged items - note the damaged item was covered by an insurance policy and therefore the cost was recouped by the charity).
These payments were in accordance with the charitable company governing document.
No other payments were made to Directors or any persons connected with them during this financial period. No material transaction took place between the organisation and a Director or any person connected with them. There were no outstanding balances with related parties as at 31 December 2021.
The key management personnel of the charity comprise the Directors and Church Leaders. The total employee benefits (including employer national insurance and employer pension contributions) of key management personnel of the charity were £108,890 (2020: £104,068). The Church paid an annual life assurance policy in 2021 costing £1,131 (2020: £893) which includes covers all staff members. It is not possible to calculate the amounts relating specifically to each staff member, thus it is disclosed here for transparency purposes only.
Five directors donated an aggregate amount of £34,993 (2020: Six Directors; £38,296) to Lifespring Church during this financial year.
The charity operates a government backed defined contribution pension scheme. Contributions are charged to the Statement of Financial Activities as they become payable in accordance with the rules of the scheme. The charity is under no further obligation to make any extra payments irrespective of how that pension fund performs. In 2021 the charity paid employer contributions of £15,561 (2020: £15,267) into that scheme. The charity also paid £2,400 (2020: £2,200) employer contributions into an Aviva personal pension scheme on behalf of one member of key management personnel.
11. Donated Services
On the 1st November 2012 all activities from Lifespring Trust (registered charity number 296276) started to be transferred to Lifespring Church.
In 2013 the first transfer comprised the newly purchased property asset 'The Pavilion', Reading. In 2014 all other activity bar that of the project 'Door of Hope', was transferred.
In this financial year the following transactions between the two entities have been recorded:
LifeSpring Trust paid salary support payments to Lifespring Church £ 39,111 Donated Services - Received £ 39,111
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LIFESPRING CHURCH NOTES TO THE FINANCIAL STATEMENTS
12. Grants
| Gifts and grants to individuals over £1,000: Spirit Connect - J & C Noble Mozambique - Tracey Uganda - Pastor Fred Pastor Caesar Post box out (gifts and grants under £1,000) Total Ministry support grants and activities: LifeSpring mission Faith Christian Group Lifeline G12 Gifts Reading RCN K Sullivan Poor Fund Gifts - other Little Lambs International Apostolic House of Prayer Missions Christian Community Action Total Total gifts and grants |
Unrestricted Restricted TOTAL TOTAL Funds Funds 2021 2020 £ £ £ £ 1,200 - 1,200 1,200 4,600 - 4,600 3,000 2,900 - 2,900 4,146 - - - 2,100 - 2,288 2,288 5,127 8,700 2,288 10,988 15,573 - - - - 3,600 - 3,600 3,600 400 - 400 100 - - - 1,800 1,550 - 1,550 600 2,500 - 2,500 2,500 589 - 589 7,837 - - - 545 - - - 450 - - - 2,406 - - - 500 8,639 - 8,639 20,338 17,339 2,288 19,627 35,911 |
|---|---|
13. Corporation tax
The charity is exempt from tax on income and gains falling within section 505 of the taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
14. Tangible fixed assets
| Cost: As at 1st January 2021(Restated) Additions Transfer between funds As at 31 December 2021 Depreciation: As at 1st January 2021(Restated) Charge for the year Transfer between funds As at 31 December 2021 Net book value: As at 1 January 2021(Restated) As at 31 December 2021 |
Equipment Freehold Freehold Freehold Property Property Property Total General Restricted General General -refurbish. -refurbish. Title No: BK111153 £ £ £ £ £ 20,734 - 1,359,303 1,024,843 2,404,880 7,657 - - - 7,657 - - - - - 28,391 - 1,359,303 1,024,843 2,412,537 2,493 - 429,148 - 431,641 5,907 - 67,941 - 73,848 - - - - - 8,400 - 497,089 - 505,489 18,241 - 930,155 1,024,843 1,973,239 19,991 - 862,214 1,024,843 1,907,048 |
|---|---|
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LIFESPRING CHURCH
NOTES TO THE FINANCIAL STATEMENTS
15. Debtors & prepayments
| Trade Debtors 16. Creditors: amounts falling due within 1 year Bounce Back Loan Independent Examiners Fees Other Creditors Refundable Deposit 17. Creditors: amounts falling due in more than 1 year Private Member Loans |
31.12.2021 31.12.2020 £ £ 3,945 - 3,945 - 31.12.2021 31.12.2020 £ £ - 50,000 1,710 1,560 - 604 200 200 1,910 52,364 31.12.2021 31.12.2020 £ £ 500,000 500,000 500,000 500,000 |
|---|---|
The Private Member Loans were received in 2016, are unsecured, interest free and repayable within a maximum 12 year period.
18. Analysis of charitable funds
| Analysis of movements in unrestricted funds: General fund The free reserves of the charity after allowing for all designated funds. Balance at 1st January Income Expenditure Transfers between funds Movement in funds Balance at 31st December Designated Circle fund This is a designated fund for raising funds to help pay off the Member Loan Balance at 1st January Income Expenditure Transfers between funds Movement in funds Balance at 31st December The balance at 31st December shown above, is wholly represented by the funds held in the Circ Total unrestricted reserves at 31st December Analysis of movements in restricted funds: Building fund - ongoing expenses This fund is restricted giving for the ongoing expenses of the new building project where the ch Capital: Note Balance at 1st January Income Expenditure - fixed assets 14 Expenditure Transfer between funds Movement in funds Balance as at 31st December |
2021 2020 1,496,108 1,577,054 498,416 453,475 (459,799) (534,681) (2,605) 260 36,012 (80,946) 1,532,120 £ 1,496,108 £ 2021 2020 - - 6,654 - (3) - 12,568 - 19,219 - 19,219 £ le Fund bank account. 1,551,339 £ 1,496,108 £ urch meets. 2021 2020 35,565 27,826 6,579 12,039 - - (112) (4,020) (9,963) (280) (3,496) 7,739 32,069 £ 35,565 £ |
|---|---|
The balance at 31st December shown above, is wholly represented by the funds held in the Pavilion Capital bank account.
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LIFESPRING CHURCH
NOTES TO THE FINANCIAL STATEMENTS
Building fund - ongoing expenses (continued)
The transfer figure of £9,963 in the building fund represents £5,000 transferred from Pavilion Tithes to Cafe 12 to assist during the Covid-19 pandemic (as agreed with donors) plus £5,050 transferred from Pavilion Tithes to Member Loan Repayment Account to help raise funds to pay off the loan minus £87 gift aid transferred into the Building Fund from general funds. (2020: the transfer figure of £280 represents £1,250 transferred from Pavilion Tithes to Café 12 to assist during the Covid-19 pandemic (as agreed with the donors) minus £970 gift aid transferred into the Building Fund from general funds).
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2021 2020
£ £
Transfer in 87 970
Transfer out (10,050) (1,250)
Net Transfers (9,963) (280)
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Post Box fund
This is a holding account for making transfers between funds.
| Balance at 1st January Income Expenditure Transfer to/(from) general funds Movement in funds Balance as at 31st December |
2021 2020 - - 2,288 4,807 (2,288) (4,807) - - - - - £ - £ |
|---|---|
Other restricted reserves
This fund receives and expends other restricted and special offering income of the charity:
| Balance at 1st January Income Expenditure Transfer to/(from) general funds Movement in funds Balance as at 31st December |
2021 2020 - - - 1,780 - (1,800) - 20 - - - £ - £ |
|---|---|
The transfer figure of £20 in 2020 represents a transfer from general funds to cover a shortfall.
Total restricted reserves at 31st December £ 32,069 £ 35,565
19. Analysis of net assets between funds
| Fixed assets: Net current assets: Unrestricted - general Unrestricted - designated Building fund - ongoing expenses General |
General Designated Restricted TOTAL Fund Reserves Reserves 31.12.2021 £ £ £ £ 1,907,048 - - 1,907,048 125,072 - - 125,072 - 19,219 - 19,219 - - 32,069 32,069 (500,000) - - (500,000) 1,532,120 19,219 32,069 1,583,408 |
|---|---|
20. Café 12
In April 2016 Café 12 (the community cafe based at the Pavilion) opened its own bank account. Prior to this, all Café 12 activity passed through Citylife Community Projects bank account, registered charity number 1117112. As Lifespring Church is the largest user of Café 12, the decision was taken in 2016 by the Trustees, to include the results of Cafe 12 within the financial statements of Lifespring Church.
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LIFESPRING CHURCH
STATEMENT OF CASHFLOWS FOR THE YEAR ENDING 31ST DECEMBER 2021
| Cash used in operating activities (a) Cash used from investing activities Interest income Purchase of tangible fixed assets Cash provided by (used in) investing activities Cash flows from financing activities Introduction/(Repayment) of long term borrowing Cash used in financing activities Increase/(decrease) in cash and cash equivalents in the year Cash and cash equivalents at the start of the year TOTAL cash and cash equivalents at the end of the year (b) |
2021 2020 £ £ 71,183 49,277 1 - (7,657) (20,734) (7,656) (20,734) - - - - 63,527 28,543 110,798 82,255 174,325 110,798 |
|---|---|
(a) Reconciliation of net movement in funds to net cash flow from operating activities
| Net movement in funds Add back depreciation charge Deduct interest income shown in investing activities Decrease/(increase) in debtors Increase/(decrease) in creditors Net cash used in operating activities (b) Analysis of cash and cash equivalents Cash at bank and in hand Fixed Term Bond Total cash and cash equivalents |
2021 2020 £ £ 51,735 (73,207) 73,848 70,438 (1) - (3,945) 1,412 (50,454) 50,634 71,183 49,277 2021 2020 £ £ 174,325 110,798 - - 174,325 110,798 |
|---|---|
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INDEPENDENT EXAMINER’S REPORT ON THE ACCOUNTS
I report to the Directors on my examination of the accounts of the above charity for the year ended 31 December 2021.
As the charity's Directors (who are also the directors of the company for the purposes of company law), you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (“the Act”).
Responsibilties and basis of report
I report in respect of my examination of the Charity's accounts carried out under section 145 of the 2011 Act and in carrying out my examination, I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
Independent examiner's statement
The charity’s gross income exceeded £250,000 and I am qualified to undertake the examination by being a fellow member of the Association of Charity Independent Examiners.
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination which gives me cause to believe that in, any material respect:
· the accounting records were not kept in accordance with section 130 of the Charities Act; or · the accounts did not accord with the accounting records; or · the accounts did not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair’ view which is not a matter considered as part of an independent examination.
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.
Signed: J Irvinesmith FCIE
Date: …....................23 September 2022
Independent Examiners Ltd Unit 2 The Broadbridge Business Centre Delling Lane Bosham West Sussex PO18 8NF
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