# **London Chinese Lutheran Church** **(A Company Limited by Guarantee)** **Annual Report and Financial Statements** **For the year ended 31[st] December 2023** **Charity Number: 1150597** **Company Number: 07034589** **London Chinese Lutheran Church Trustees’ Annual Report and Financial Statements for the year ended 31st December 2023** ## **Contents** ||**Page**| |---|---| |Trustees’ Annual Report
|1 - 4| |Independent Examiner’s Report|5| |Statement of Financial Activities|6| |Balance Sheet|7| |Notes to the Financial Statements|8-11| ## **London Chinese Lutheran Church Trustees’ Annual Report for the year ended 31[st] December 2023** The Directors of the Company, who are also the Trustees of the Charity for the purposes of Charity Law, present their Annual Report and Accounts for the year ended 31[st] December 2023. ## **1. Reference and Administrative Details** Name of Charity: Charity Registration Number: 1150597 Company Registration Number: 07034589 Registered & Operational Office: 79a Tottenham Court Road London W1T 4TD Bankers: Lloyds Bank Plc 17 Heath Road Strawberry Hill Twickenham TW1 4AW Reporting Accountants: Samuel & Associates 36 Charcroft Gardens Enfield Middlesex EN3 7HA ## **London Chinese Lutheran Church** The directors and trustees who served during the period to the date of this report are: Mr Edgar Kar Chan Chair appointed 11/04/2016 Ms Mee Kee Kong appointed 01/06/2019 Ms Zhong Li appointed 15/05/2022 Mr Jimmy Langgang Wang appointed 09/10/2022 Page | 1 ## **London Chinese Lutheran Church Trustees’ Annual Report for the year ended 31[st] December 2023** ## **2. Structure, Governance and Management** ## **Governing Document** London Chinese Lutheran Church (LCLC) is a registered charity and a company limited by guarantee and incorporated on 30[th] September 2009 as amended by a certificate of incorporation on change of name dated 26[th] July 2012. The maximum liability of each member is limited to £1. LCLC is governed by its Memorandum and Articles of Association. ## **Appointment and induction of Trustees** The Trustees of the Charity, who are also Directors of the Company, are elected at the AGM or co-opted by the Directors. Newly elected or appointed Trustees are provided with a comprehensive induction pack containing LCLC’s Memorandum and Articles of Association, the last annual accounts, roles and responsibilities of charity trustees, and mentoring by established trustees. ## **Organisational Structure** LCLC is governed by its Executive Committee which is responsible for setting the strategic direction and policies of the charity. The Executive Committee carry the ultimate responsibility for the conduct of LCLC and for ensuring that the charity satisfies its legal and contractual obligations. Trustees meet monthly. A register of members is maintained at the registered office and is available to the public. ## **Major risks** The Trustees recognise that any major risks to which the charity is exposed need to be reviewed and systems put in place to mitigate those risks. To that end LCLC is continually monitoring and managing its risk, reviewing the corporate risk register and ensuring action plans are in place to mitigate its key risks. ## **3. Objectives and Activities** ## **Mission statement** London Chinese Lutheran Church (LCLC) is a spiritual home away from home for the Chinese community in London. It has a weekly Sunday Christian Lutheran worship service conducted in Cantonese & optional Mandarin. Its members come from Hong Kong, China, Malaysia, Singapore, Taiwan and the United Kingdom and their first language is Cantonese. LCLC is a member of the Lutheran Church in Great Britain which is a member of the Lutheran World Federation. Page | 2 ## **London Chinese Lutheran Church Trustees’ Annual Report for the year ended 31[st] December 2023** ## **Objects** The **objective** of the London Chinese Lutheran Church (LCLC) is to provide a platform for Lutheran Christians to congregate and share their faith and spirituality in the Chinese language and to promote the advancement of religion Lutheranism among members of the community in London through teaching and worshipping together with the young and the aged regardless of the country of origin. LCLC aims to provide a spiritual home for those away from their home country. ie, student, temporary working in London. Through our LCLC spiritual home and within our financial strength, we are providing appropriate support to relieve suffering, and hardship and to preserve spiritual and physical health and wellbeing. ## **4. Achievements and Performance** Our average number of people is around 50-52 attending worship each Sunday. ## **Activities** - Worship and prayer; learning about the gospel; developing their knowledge and trust in Jesus underpinned by the Lutheran value. - Holy Communion takes place every first Sunday of the month. - Provision of pastoral care when visiting church members. - renew the spiritual life of believers and enlighten themselves and themselves through worship, Bible reading, Sunday school - “Pianist Class" so that pianists can communicate with worship leader and enhance their worship skills - Different fellowships after Sunday service according to needs, currently there are Living Water fellowships, youth groups, evangelical Bible study, and male and female groups. 15 to 20 attendance is the average number of every group. - Bible reading plan to encourage members to read the same scripture together, set up scripture-sharing sessions during Lent and Christmas or other festivals. This has been conducted via the WhatsApp group. - Once a year outdoor worship at a church member's large back garden in the summer and a barbecue after the service with average attendance of 50 - We have also been maintaining our Chinese cultural needs by celebrating all Chinese festivals. As well as our regular services, we enable our community to celebrate and thank God at the milestones of the journey through life. Through baptism, we thank God for the gift of life. We have celebrated 5 baptisms this year. Page | 3 ## **London Chinese Lutheran Church Trustees’ Annual Report for the year ended 31[st] December 2023** Our church worker who is now our Pastor attends the Synod organised by the Lutheran Council in Great Britain (LCiGB). This provides our church with an important link between the Lutheran Council and the wider structures of the Church. Our church centre is a rented premises for 4 hours on Sunday afternoon. All communication outside this hour can still be maintained with our Pastor and the council member via WhatsApp group chat at any time. There is also an official telephone number should other elderly church members not technologically competent. ## **Volunteers** All volunteer has been working hard to make our church lively and vibrant. They have been running the children's worship and outreach work alongside the Pastor. They are all subjected to DBS check. ## **5. Financial Review** ## **Financial Position** Incoming Resources in the year amounted to £39,843 (2022- £25,709) A surplus of £8,445 was made in the year (2022-£1,914 deficit). At 31[st] December 2023, total funds amounted to £33,294 (2022- £24,849) of which £1,522 was restricted (2022- £1,522). ## **Reserves Policy** The trustees are required to ensure that free monies are available in each financial year to meet any reasonably foreseeable contingency. The charity will maintain a projection of income for at least one year ahead and will ensure that this continues to be derived from as wide a variety of sources as possible. They will take all necessary steps to ensure that at no time within this period would it be possible for the cessation of one or more funding streams to present so serious a challenge to the future of the organisation that it could not be managed so as to continue to provide a best value service. In reviewing the potential costs that could arise should a significant reduction in income be suffered, the trustees have determined that ‘free’ reserves should be maintained equal to 12 months of unrestricted total operating expenditure. Free reserves are defined as total free reserves less net fixed assets. This is equivalent to £23.327 in the year. The amount of the current expenditure of £27,623 is above the required level of reserves and the trustees will continue to make the effort to achieve surpluses in future years to contribute towards achieving this aim. By order of the Board this 15th day of September 2024 **==> picture [108 x 28] intentionally omitted <==** …………………………. Mr Edgar Kar Chan Chair Page | 4 ## **London Chinese Lutheran Church** ## **Independent Examiner’s Report to the Trustees of London Chinese Lutheran** ## **Church** I report on the accounts of the company for the year ended 31 December 2023 which are set out on pages 6 to 11. ## **Respective responsibilities of Trustees and Examiner** The trustees (who are also the directors of the company 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 Chartered Certified 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: - examine the accounts under section 145 of the 2011 Act; - follow the procedures laid down in the general Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act; and - 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: (1) which gives me reasonable cause to believe that in any material respect the requirements: - to keep accounting records in accordance with section 386 of the Companies Act 2006; and - • to prepare accounts which accord with the accounting records, comply with the accounting requirements of section 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 (2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached. **==> picture [125 x 41] intentionally omitted <==** 15 September 2024 Samuel K Tsipotey, FCCA Samuel Associates 36 Charcroft Gardens Enfield, Middlesex EN3 7HA Page | 5 ## **London Chinese Lutheran Church** ## **Statement of Financial Activities for the year ended 31[st] December 2023 (Incorporating an Income and Expenditure Account)** |**Notes**
**Incoming resources**
**Voluntary income**
Congregational donations
2
**Activities for generating funds**
Other incoming resources
2
**Total incoming resources**
**Charitable expenditure**
Charitable donations
3
Ministry and pastoral costs
4
Contributions to Head Office
4
Support costs
5
**Total charitable expenditure**
Net incoming/(outgoing) resources
Total funds brought forward
8
**Total funds carried forward**|**Unrestricted**
**£**
28,317
11,526
39,843
279
28,074
2,210
836
31,399
8,445
23,327
**31,772**|**Restricted**
**Total**
**2023**
**£**
**£**
-
28,317
-
11,526
-
**39,843**
-
279
-
28,074
-
2,210
-
836
-
31,399
-
8,445
1,522
24,849
**1,522**
**33,294**|**Total**
**2022**
**£**
22,109
3,600| |---|---|---|---| ||||**25,709**| ||||100
24,733
1,440
1,350| ||||27,623| ||||(1,914)
26,763| ||||**24,849**| Page | 6 ## **London Chinese Lutheran Church** |**Balance Sheet as at 31st December 2023**
**Notes**
**Unrestricted**
**Restricted**
**Total**
**2023**
**£**
**£**
**£**
**Current assets**
Cash at bank and in hand
6
32,316
1,522
32,383
Prepayments
1,477
-
1,455
**Total current assets**
32,316
1,522
33,838
**Current liabilities**
Sundry creditors
7
544
-
544
**Net assets**
**31,772**
**1,522**
**33,294**
**Funds of the Church**
**Unrestricted**
**Restricted**
**Total**
**2023**
**£**
**£**
**£**
**Funds carried forward**
8
**31,772**
**1,522**
**33,294**|**Total**
**2022**
**£**
25,873
-| |---|---| ||25,873
1,024| ||**24,849**| ||**Total**
**£**| ||**24,849**| The financial statements have been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006 and with the Statement of Recommended Practice: Accounting and Reporting by Charities issued in March 2005 and the Financial Reporting Standard for Smaller Entities (effective April 2008). The Trustees are of the opinion that the company is entitled to the exemptions from audit conferred by Section 477 of the Companies Act 2006. The Trustees confirm that no member or members have requested an audit pursuant to Section 476 of the Companies Act 2006. The Trustees acknowledge their responsibilities for: - ensuring that the company keeps accounting records which comply with Section 386 of the Companies Act 2006, and - preparing accounts which give a true and fair view of the state of affairs of the company as at 31 December 2020 and of its results for the year then ended 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 financial statements were approved by the Trustees on **15[th] September 2024** and signed on their behalf by: Director: **==> picture [109 x 25] intentionally omitted <==** Signature: Company registration number **7034589** Page | 7 ## **London Chinese Lutheran Church Notes to the Financial Statements for the year ended 31 December 2023** ## **Note 1. Accounting Policies** The principal accounting policies are summarised below. The accounting policies have been applied consistently throughout the year and the preceding year. ## **a) Basis of Preparation** The financial statements have been prepared under the historical cost convention in accordance with the Companies Act 2006, applicable accounting standards and the Statement of Recommended Practice (SORP): Accounting and Reporting by Charities, issued in March 2005. ## **b) Company Status** The Charity is a company limited by guarantee. The members of the company are the Trustees who are also ordinary members and named on page 1. 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. ## **c) Fund Accounting** **Unrestricted Funds** comprise accumulated surpluses and deficits on general funds that are available for use at the discretion of the Trustees in furtherance of the Charity’s objects and that have not been designated for other purposes. **Restricted Funds** are funds subject to restrictions on their expenditure imposed by the donor or through the terms of an appeal. ## **d) Incoming Resources** ## **Recognition of Incoming Resources** These are included in the Statement of Financial Activities (SOFA) when - the charity becomes entitled to the resources - the trustees are virtually certain they will receive the resources; and - • the monetary value can be measured with sufficient reliability. ## **e) Resources Expended** ## **Recognition of Expenditure and Liabilities** Liabilities are recognised as soon as there is a legal or constructive obligation committing the charity to pay out resources. Expenditure is recognised on an accruals basis as a liability is incurred. Page | 8 ## **London Chinese Lutheran Church Notes to the Financial Statements for the year ended 31 December 2023** ## **Note 2: Voluntary income** |**Congregational donations**
Loose
Thanksgiving
Charity - monthly donations
Sundry donations
Total
**Other incoming resources**
Contributions Head Office/Stipend
Gift Aid received
Total other incoming expenses|**Unrestricted**
**£**
19,500
100
8,640
77
**28,317**
**£**
3,637
7,889
11,526|**Restricted**
**Total**
**2023**
**£**
**£**
-
19,500
-
100
-
8,640
-
77
**-**
**28,317**
**£**
-
3,637
-
7,889
-
11,526|**Total**
**2022**
**£**
6,750
8,260
6,966
133| |---|---|---|---| ||||**22,109**| ||||**£**
3,600
-| ||||3,600| |||||**Total**|**Total**| |---|---|---|---|---|---| |**Note**|**3: Charitable donations**|**Unrestricted**|**Restricted**|**2023**|**2022**| |||**£**|**£**|**£**|**£**| |Gifts|and Christmas|279|-|279|100| Page | 9 ## **London Chinese Lutheran Church Notes to the Financial Statements for the year ended 31 December 2023** |**Note 4: Ministry and pastoral costs**
Staff salaries, NI & pension
Church rent
Other missionary costs
Outdoor worship
Speaker's fees and expenses
Travel and retreats
Service expenses
**Total ministry and pastoral costs**
Contributions to Head Office
**Total charitable expenses**
**Staff salaries, NI & pension**
Gross pay
Social security costs
Employment allowance claimed
Pension
Total|**Unrestricted**
**£**
21,630
3,600
219
-
2,080
210
335
28,074
2,210
**30,284**
**Unrestricted**
**£**
21,000
1,643
(1,643)
630
**21,630**|**Restricted**
**Total**
**2023**
**£**
**£**
-
21,630
-
3,600
-
219
-
-
-
2,080
-
210
-
335
-
28,074
-
2,210
**-**
**30,284**
**Restricted**
**Total**
**2023**
**£**
**£**
-
21,000
-
1,643
-
(1,643)
-
630|**Total**
**2022**
**£**
17,716
3,600
130
494
2,400
74
318| |---|---|---|---| ||||**24,733**
1,440| ||||**26,173**| ||||**Total**
**2022**
**£**
17,200
1,187
(1,187)
516| |||**-**
**21,630**|
**17,716**| Page | 10 ## **London Chinese Lutheran Church Notes to the Financial Statements for the year ended 31 December 2023** |**Note 5: Support costs**
Office expenses
Professional fees
Filing fees
Volunteer expenses
Sundry expenses
Total
**Note 6 :**
Bank current account
Petty cash
Prepayments
Total
**Note 7: Sundry creditors**
Accrued expenses
Total|**Unrestricted**
**£**
103
616
-
-
117
**836**
**Unrestricted**
**£**
30,559
302
1,455
32,316
**Unrestricted**
**£**
544
**544**|**Restricted**
**Total**
**2023**
**£**
**£**
-
103
-
616
-
-
-
-
-
117
**-**
**836**
**Restricted**
**Total**
**2023**
**£**
**£**
1,522
32,081
-
302
-
1,455
1,522
33,838
**Restricted**
**Total**
**2023**
**£**
**£**
-
544
**-**
**544**|**Total**
**2022**
**£**
120
350
13
600
267| |---|---|---|---| ||||**1,350**| ||||**Total**
**2022**
**£**
25,501
372
-| ||||**25,873**| ||||**Total**
**2021**
**£**
1,024| ||||**1,024**| Page | 11 ## **London Chinese Lutheran Church Notes to the Financial Statements for the year ended 31 December 2023** ## **Note 8: Funds of the charity** |**Note 8: Funds of the charity**|||| |---|---|---|---| |**Unrestricted**
**General fund**
**Restricted funds**
Missionary Fund
Charity Fund
**Total restricted**|**Balance at**
**01/01/2023**
**£**
**23,327**
830
692
**1,522**|Incoming Outgoing
**£**
**£**
**39,843**
**(31,399)**
-
-
-
-
**-**
**-**|**Balance at**
**01/12/2023**
**£**| ||||**31,772**| ||||**830**
**692**| ||||**1,522**| Page | 12