The St Luke's Mission Initiative
Report and Accounts Year ended 31 December 2020
1 Lamb's Passage, London EC1Y 8AB www.stewardship.org.uk
THE ST LUKE'S MISSION INITIATIVE
CONTENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
| Contents | Page |
|---|---|
| Company Information and Trustees' Annual Report | 1 - 7 |
| Independent Examiner's Report | 8 |
| Statement of Financial Activities | 9 |
| Balance Sheet | 10 |
| Notes to the Accounts | 11 - 18 |
| Detailed Statement of Financial Activities with Comparatives | 19 |
The St Luke’s Mission Initiative
Annual Report and Financial Statements of the trustees
For the twelve month period ended 31 December 2020
Reference and Administrative information
Registered Company number
8351330 (England and Wales) Governing document is memorandum and articles of association (Incorporated on 8 January 2013)
Registered Charity number
1151021
Trustees who are also Directors of The St Luke’s Mission Initiative are elected in accordance with the Articles of Association of the charity, which is a company limited by guarantee. During the period the following served as trustees of the charity and directors of the company.
Rev Ed Dix (Minister-in-charge)
Carolynne McGaughey
Sangeetha Thomas
Sylvester Small (resigned 2 November 2020)
Joshua Hill
Thomas Mathews (resigned 2 November 2020)
Jonathan McMillan
Phoebe Hill
Dave Nunn (elected 27 January 2020)
Ben Thomson (elected 2 November 2020)
Bank:
Reliance Bank Ltd at Faith House, 23-24 Lovat Lane, London, EC3R 8EB.
Independent examination:
Lisa Darby ACA, Stewardship, 1 Lamb’s Passage, London EC1Y 8AB
The registered address of the charity is: St Luke’s Church, Alpha Grove, Isle of Dogs, London, E14 8LH
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Structure, Governance and Management
Responsibilities of the trustees
The trustees of The St Luke’s Mission Initiative have the responsibility to promote, in collaboration with the parish church of Christ and St John with St Luke, in the parish of the Isle of Dogs, the whole mission of the Church. This includes the pastoral, evangelistic, social and ecumenical aspects. As a Bishop’s Mission Order in the Church of England, the Minister-in-charge and the trustees follow the requirements of Church of England Canon Law.
Appointment of trustees
Trustees are appointed from time to time, as the strategic and practical needs of the charity demand. The minister-incharge has prime responsibility for the recruitment of new trustees, and is assisted by other existing trustees in the process of identifying and recruiting new trustees.
It is stated in the charity’s Memorandum and Articles that one third of the trustees must retire every year. This is not the board of trustees’ current practice and we intend to remove this policy in future.
Objectives and activities
The objectives of The St Luke’s Mission Initiative were initially stated as follows:
Working with and empowering local people in establishing St Luke’s Millwall as a self-sustaining, mission oriented church with ministry serving the whole population of the Isle of Dogs in a way that is complementary to the existing work of the parish of Christ Church and St John with St Luke’s, Isle of Dogs.
Through active mission and ministry, to grow a vibrant and diverse community of Christian disciples united around Jesus. Maintaining a particular focus on serving young families by becoming a centre for family life that provides parenting resources, marriage resources, a schools ministry, toddler groups and a well-resourced children’s church on Sundays.
The church is currently in the middle of a process which will lead to a restated vision and new strategic goals for the coming years.
The board of trustees organises itself to carry out its aims and objectives by having regular meetings and various subcommittees . The trustees met nine times during the period. Topics discussed by the Trustees included finances, prayer, staffing, building issues, responding to the Covid-19 pandemic, vision and goal setting, and strategic planning.
Day-to-day management of the church is delegated to the Minister-in-charge, Rev Ed Dix, whilst decision-making about certain aspects of church life, including discipleship, worship, and mission lies with the church council, which is chaired by the minister-in-charge. From the beginning of 2021 the church council will meet bimonthly, with a standing committee, comprising trustees from the church council, meeting in the intervening months.
Church Council
During 2020 the church council was strengthened through the addition of new trustees and the formation of the role of ‘church warden’, the senior lay leaders within the church. The church council played a key role in responding to the Covid-19 pandemic, providing counsel and decision-making support to the minister-in-charge in the constantlychanging landscape of the year. In addition, the church council continued to face the demands of running the new church building. The loss of income that lockdown restrictions brought throughout the year were partially offset by the identification of areas of cost-savings, and church council members were instrumental in this process. The church council also continued to provide leadership to the church in the areas of discipleship, outreach and worship, amongst others.
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Membership of the church council changed partially during the year, with the resignation of two trustees and the election of two new trustees.
With regard to the church council’s obligations to safeguard children and vulnerable adults, the members of the church council confirm that they have complied with their duties under section 5 of the Safeguarding and Clergy Discipline Measure 2016.
Church attendance
Our move to online services during the pandemic means that there can be no meaningful comparison of attendance figures against previous years. It has, though, been encouraging to see good numbers of church members, and some visitors, joining live-streamed Sunday services through Youtube, and we have also seen a growing engagement with other online church activities held on Zoom, such as fellowship groups, prayer meetings, and social events.
Public Benefit
In planning the activities the Directors have had regard to the guidance on public benefit issued by the Charity Commission. The St Luke’s Mission Initiative benefits the community by the activities described in the section above particularly through families and children’s work and in supporting other charities through our volunteer programme, prayer and partnership for community events.
Achievements and Performance
The Impact of Covid-19
As for all churches, the Covid-19 outbreak had a significant impact on St Luke’s Mission Initiative in 2020. The restrictions on how St Luke’s is able to carry out its core activities (of gathering for services of prayer and worship, holding community activities and events) had a major impact on the church as a worshipping community. We have, however, transitioned successfully to an online approach where possible, using technology to broadcast Sunday services and connect church members together, and we have initiated one significant new ministry during Covid-19 by setting up a Foodbank to provide food parcels to local residents in need. This ministry is reported on fully below. A further impact on St Luke’s of the restrictions placed on the country during Covid-19 is related to finances. There has been an unavoidable reduction in rental income, both from one-off bookings and regular users who have had to suspend their activities. This loss was partially compensated by some cost-cutting of church building running costs. The Diocese of London has assured trustees of their ongoing support for the church as we cope with the financial impact of the final months of lockdown.
Setting up a new Foodbank to help local residents affected by Covid-19
The St Luke’s Foodbank was started as a response to the Covid-19 pandemic in March 2020. In the beginning the foodbank was open four days a week, and after the first lockdown came to an end, the opening hours were changed to two days a week. We have kept this pattern since then and we are open on Tuesdays and Thursdays 10am - 12pm. Safety measures were implemented and a system of serving people was introduced and refined throughout the months as a reaction to the changing seasons and weather conditions.
During the first lockdown the St Luke’s Foodbank was able to provide support to vulnerable and self-isolating people with weekly deliveries by volunteers from St Luke’s and other churches on Isle of Dogs. In the beginning there were 2 - 4 volunteers helping a day plus at least 4 people for deliveries. Between the lockdowns, the need for deliveries dropped down and later on we kept one volunteer for deliveries once a week. In more recent months, we have operated the foodbank with 6 volunteers to keep the flow of people coming through the building in a safe and secure manner. Our team of volunteers from the church and neighbourhood is stable and they enjoy working for people very much.
Our main sources of food in 2020 were The Felix Project, LYN (Love Your Neighbour), Asda donations, Co Op donations, and individuals who want to help, who ask what we need currently and then just bring it.
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Since the beginning of Covid-19 we have been able to provide food and help to more than one thousand people.
Thanks to funding from the London Community Response fund, St Luke’s church was able to employ a part-time foodbank coordinator since October 2020.
The activity of the foodbank is documented on an instagram account to provide more information for people and our donors: https://www.instagram.com/stlukesfoodbank/
Worship
Services
As already stated, our Sunday services moved online from March 2020 onwards. In order to facilitate this the church invested in some live-streaming equipment, and this will remain useful to the church as we move out of lockdown, as we intend to continue to live-stream services beyond the period of the pandemic. During the year we had sermon series on the book of Ephesians, the early chapters of the Gospel of John, a series on the theme of Hope, a summer series looking at the book of Jonah, and in the autumn two series looking at the topics of worship and prayer.
Services at John Tucker House, a sheltered accommodation block on the Barkantine estate, were paused for the duration of the pandemic.
Register of occasional services
In 2020,two weddings took place at St Luke’s church. There were no baptisms.
Worship Music
During 2020 our music team showed remarkable flexibility and creativity in responding to the challenges of Covid-19. Our musicians found new ways to facilitate worship for the church congregation, including streaming music live from the church building, pre-recording from their own homes, and even collaborating together online in order to create a ‘virtual choir’ for Easter Day!
Children’s church and Youth church
Our Sunday attendance, prior to the suspension of services in the church building, averaged around 30 children and young people, with the Sunday youth group operating fortnightly on Sundays. Through the pandemic we have sought to provide a ministry to the children of the church in various ways: through a segment of the live-streamed service that focuses on children (including puppets, visual aids, and family worship songs); through children’s church meetings held via Zoom; and through pictures, video messages, and other encouraging content shared with families through social media. The youth church met regularly through Zoom, and a new Bible study group was started to cater for older members of the youth church. We are incredibly grateful for the hard work and commitment shown by the children and youth teams in order to continue to serve the rising generation of the church.
Teams
St Luke’s Millwall has a number of teams of volunteers who help to serve the church community. These include children’s church, welcome and hospitality, music, setup and packdown, meals for new parents, and keeping the church clean and tidy, and involve a total of approximately 50 volunteers.
Discipleship and fellowship
Church Weekend Away
St Luke’s was due to hold its annual church weekend in June 2020, but this had to be cancelled due to Covid-19. We hope, God willing, to return to Otford Manor for a church weekend in June 2021.
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Community Groups
Community Groups are the midweek mid-size communities at St Luke’s Millwall. Each Community Group is led by Community Group Leaders, and an evening consists of eating a meal, studying the Bible and praying together. During 2020 the groups moved online, and continued to provide support, pastoral care, and opportunities for Bible study and prayer, for church members.
Men’s & Women’s Ministry
During 2020 our women’s and men’s ministries, like so many other aspects of church life, moved online.
Monday Mums has grown and established itself as a very safe space for vulnerable mums to come and be honest about their life struggles and their thirst for Jesus. We have a couple of Muslim mums, an ex-offender, several people who are dealing with the addictions of their partners or older children, and a few single mums facing adversity. We kept meeting in person whenever we could between lockdowns , as a ‘support group’ but have also been able to get most of the group comfortable on Zoom and have had weekly times of Bible, chat and prayer throughout the year on a Tuesday evening.
Evangelism and work in the community
Alpha
A daytime Alpha group ran on Tuesday mornings during the summer term.
Kids Matter and Babies Matter Groups
We were running a Babies Matter group at the start of 2020 which moved online in March and was a ‘lifeline’ for the five families who felt lost and isolated through the first pandemic. We then ran Kids Matter online in the summer term for several families from foodbank, one of whom has since joined our Monday Mums Bible study, and another of whom has become a volunteer at foodbank and the church cleaner. We then ran Babies Matter in the autumn term for three church couples who had just had/were expecting their first baby and it was lovely to build church fellowship as well as prepare for parenting together.
Partnership with local schools
During 2020 we were able to strengthen our partnership with two local community schools. At Seven Mills Primary School the minister began to lead assemblies on Christian topics at least once a month, and the St Luke’s Foodbank delivered Christmas presents and parcels to each child in the school. At Arnhem Wharf Primary School the foodbank supplied food parcels throughout the first lockdown to vulnerable families.
Lockdown tutoring
The church was deeply concerned about the impact of lockdowns on the more disadvantaged children and young people in our community, and it was able to partner with the Kids Matter parenting charity to link five local young people to tutors who provided online tutoring regularly through the year.
Sunbeams
Our bustling toddler group has not been able to meet in person since March 2020 but the Whatsapp group has been active throughout the year, with community support, sharing ideas for coping with toddlers in lockdown, advertising foodbank, and exchanging toys and clothes. We did a weekly 15 minutes of ‘songtime with Panda’ during the first lockdown.
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Hosting GrowTH night shelter at St Luke’s Church
One of the real achievements of 2019 was the church’s involvement with the GrowTH night shelter, and we continued to provide a venue one night each week through to the end of January 2020. Volunteers were drawn from the church and from the wider community. Hosting a night of the shelter is a big task involving: setting up beds and dinner tables; cooking the evening meal; hosting the guests by befriending and talking with them; serving dinner and washing up; leading the evening Bible study; providing volunteers to oversee the night shift; preparing breakfast for the following morning; and finally clearing up and cleaning in time for the next day’s activities to begin in the building. It was a joy to see the huge commitment shown by so many to ensure that the shelter was a great success at St Luke’s, and special mention should go to Malcolm Woods who coordinated the team of volunteers.
Community events
Our annual Bake Off moved online in 2020, and it is hoped that this will return in its traditional format in autumn 2021.
Until it was stopped by Covid restrictions, 20 older local residents were involved in a monthly Scrabble Club that was run by the church in a community centre.
All the courses, activities and events outlined above could not take place without the much-appreciated help of volunteers from the congregation.
Trustees Finance Review Report
Funding
The principal sources of income for the period were donations from congregation members grant income to support the running of the Foodbank and rental income from renting out the church flat. Funding from congregation members was in the form of gifts, regular collections and donations via Stewardship. The total amount raised in this way was £118,581 (2019: £69,220). We are immensely grateful to God and to all those who gave so generously.
Expenditure in support of the key objectives
All expenditure was in support of the key objectives. It is analysed into different church activities in note 7 of the financial statements. Most of the spending meets more than one of the key objectives. The total expenses for the year were £157,229 (2019:£117,215) which resulted in a deficit for the year of £12,633 (2019:£20,593). The funds held by the charity at the end of the year were £66,408 (2019: £79,041) of which £8,345 (2019: £5,734) relates to restricted funds.
Policy on reserves
During the period of the mission, unrestricted cash reserves of £7,863 have been built up through accumulated gifts from the congregation and grant income received. The Trustees’ policy is to build up, and then maintain, four months’ worth of reserves in order to provide for any future expenditure associated with custodianship of a church building. The trustees are aware that the financial position of the charity at the end of 2020 remains fragile and the reserves policy has not yet been achieved. In response to this, the Trustees agreed a detailed and prudent budget for 2021 based on estimates of all sources of income and expenditure on an item-by-item basis. The Trustees regularly review the financial position of The St Luke’s Mission Initiative against this budget to ensure early identification of any potential financial headwinds. As part of the financial planning process for 2021, a comprehensive review of all expenditure was undertaken and cost-saving opportunities were identified in areas such as internet and phone lines and lift maintenance. The trustees remain committed to improving the position of the charity with the aim of achieving its goal of four months’ unrestricted reserves in hand and have incorporated a “General Reserves Contribution” expense into the 2021 budget for this purpose. Furthermore, the 2021 budget also includes a “Running Costs Reserves” expense for both the church
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building and church flat equal to 10% of the estimated annual expenditure. This is designed to cover unforeseen and exceptional expenses relating to maintenance work during 2021.
Risk assessment and mitigation
The risks which the organisation faces have been considered and measures will be implemented to ensure that appropriate systems, policies and procedures are in place to manage and mitigate the risks. Specifically as an organisation with a low level of reserves, there is a financial risk which is managed by strong financial systems and controls.
Investment policy
As mentioned above, the policy of The St Luke’s Mission Initiative is to minimise reserves and there are no excess funds to invest. It is the Trustees’ policy that any cash not needed in the day to day running of the Mission be placed on deposit for short periods in order to maximise interest income and minimise risk.
Plans for future periods
The short and medium term plan is to continue with the same objectives and activities in support of them.
The Trustees’ responsibilities in relation to the financial statements
Company law requires the Trustees to prepare a statement of financial activities and statement of assets and liabilities for each financial year, which gives a true and fair view of the state of affairs of the church and of its financial activities for that year and adequately distinguishes any material special trust or other restricted fund of the company. In preparing those financial statements the Trustees are required to:
-
select suitable accounting policies and then apply them consistently;
-
make judgments and estimates that are reasonable and prudent;
-
state whether the policies adopted are in accordance with the appropriate SORP on Accounting by Charities and the Accounting Regulations and with applicable accounting standards, subject to any material departures disclosed and explained in the financial statements;
-
prepare the accounts on the going concern basis unless it is inappropriate to presume that the company will continue to operate.
The Trustees are responsible for keeping proper accounting records which disclose, with reasonable accuracy at any time, the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006 and applicable Accounting Standards and Statements of Recommended Practice and the regulations made under the Charities Act 2011. They are also responsible for safeguarding the assets of the church and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by the Trustees of The St Luke’s Mission Initiative on 7 June 2021 and signed on their behalf by:
Ed Dix, Minister in Charge
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INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF
THE ST LUKE'S MISSION INITIATIVE ('the Company')
I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 December 2020 on pages 9 to 18 following, which have been prepared on the basis of the accounting policies set out on pages 11 to 12.
Responsibilities and basis of report
As the charity’s trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).
Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.
Independent examiner’s statement
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
-
accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or
-
the accounts do not accord with those records; or
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the accounts do not comply with the accounting requirements of section 396 of the 2006 Act 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; or
-
the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)].
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.
Lisa Darby ACA
5 July 2021
Stewardship 1 Lamb's Passage London EC1Y 8AB
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THE ST LUKE'S MISSION INITIATIVE
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2020
| Note INCOME AND ENDOWMENTS FROM: Donations and legacies 3 Charitable activities 4 Other trading activities 5 Investments 6 Total income and endowments EXPENDITURE ON: Charitable activities 7 New Building Costs 7 Total expenditure Net gains/(losses) on investments Net income/(expenditure) Transfers between funds 15 Net movement in funds Reconciliation of funds: Total funds brought forward Total funds carried forward 15 |
Unrestricted Funds £ 109,502 283 25,732 - 135,517 150,719 - 150,719 - (15,202) (42) (15,244) 73,307 58,063 |
Restricted Funds £ 9,079 - - - 9,079 5,676 834 6,510 - 2,569 42 2,611 5,734 8,345 |
Total Funds 2020 £ 118,581 283 25,732 - 144,596 156,395 834 157,229 - (12,633) - (12,633) 79,041 66,408 |
Total Funds 2019 £ 69,220 2,153 25,246 4 |
|---|---|---|---|---|
| 96,622 | ||||
| 108,453 8,762 |
||||
| 117,215 | ||||
| - | ||||
| (20,593) - |
||||
| (20,593) 99,634 |
||||
| 79,041 |
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing operations.
The statement of financial activities also complies with the requirements for an income and expenditure account required by the Companies Act 2006.
The notes on page 11-18 form part of these accounts.
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THE ST LUKE'S MISSION INITIATIVE
BALANCE SHEET
FOR THE YEAR ENDED 31 DECEMBER 2020
| Note FIXED ASSETS Tangible assets 9 CURRENT ASSETS Stock 10 Debtors 11 Cash at bank and in hand 12 CREDITORS: Amounts falling due within one year 13 Net current assets / (liabilities) TOTAL NET ASSETS FUND BALANCES 15 Unrestricted Funds General funds Restricted Funds |
Unrestricted Funds £ 49,205 49,205 2,100 5,776 7,863 15,739 (6,881) 8,858 58,063 58,063 - 58,063 |
Restricted Funds £ - - - - 8,345 8,345 - 8,345 8,345 - 8,345 8,345 |
Total Funds 2020 £ 49,205 49,205 2,100 5,776 16,208 24,084 (6,881) 17,203 66,408 58,063 8,345 66,408 |
Total Funds 2019 £ 69,236 |
|---|---|---|---|---|
| 69,236 | ||||
| - 4,405 12,409 |
||||
| 16,814 (7,008) |
||||
| 9,805 | ||||
| 79,041 | ||||
| 73,307 5,734 |
||||
| 79,041 |
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2020
The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2020 in accordance with Section 476 of the Companies Act 2006 however, in accordance with Section 145 of the Charities Act 2011, the accounts have been examined by an independent examiner and their report has been included in these financial statements.
The directors (who are the charitable company's trustees for the purposes of charity law) acknowledge their responsibilities for:
-
(a) ensuring that the charitable company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and
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(b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its net income or expenditure for each 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 financial statements, so far as applicable to the charitable company.
The financial statements have been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.
The financial statements were approved by the Board of Directors on 7 June 2021 and were signed on its behalf by:
Ed Dix, Minister in Charge
Company number: 8351330
The notes on page 11-18 form part of these accounts.
Charity number: 1151021
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THE ST LUKE'S MISSION INITIATIVE
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 DECEMBER 2020
1 Statutory Information
The charity is a charitable company limited by guarantee and is incorporated in the United Kingdom. The company's registered number and registered office address can be found on the Company Information page.
2 Accounting Policies
These financial statements are prepared on a going concern basis, under the historical cost convention [as modified by the revaluation of certain assets, which are measured at fair value through the Statement of Financial Activities].
These financial statements have been prepared in accordance with the "Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) ("the Charities SORP"), with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland ("FRS 102"), with the Companies Act 2006 and with the Charities Act 2011. The charity meets the definition of a public benefit entity as set out in FRS 102.
The principles adopted in the preparation of the financial statements are set out below.
a) Going concern
The trustees (who are the charitable company's directors for the purposes of company law) have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions, including the impact of the COVID pandemic, that might cast significant doubt on the ability of the charity to continue as a going concern. The trustees have made this assessment for a period of at least one year from the date of approval of the financial statements. In particular the trustees have considered the charity's forecasts and projections and the possible implications should projected income and / or expenditure vary unexpectedly. The trustees have concluded that there is a reasonable expectation that the charity has adequate resources to continue to operate for the foreseeable future. The charity therefore continues to adopt the going concern basis in preparing its financial statements.
b) Income
Income including investment income is recognised in the period in which the charity becomes entitled to receipt, the amount receivable can be measured with reasonable certainty, and receipt is probable. For the most part, income is generally recognised when it is received. Income is only deferred when the charity has to fulfil conditions before becoming entitled to it or where the donor has specified that the income is to be expended in a future period.
Income from donations and legacies includes:
- i) Recoverable gift aid. This is recognised when the related donation is received. Gift aid that has not been recovered by the balance sheet date is included as a debtor.
Donated goods for distribution to beneficiaries. St Luke’s has also received donations in the form of goods (i.e. food donations) for the purposes of being redistributed via the Foodbank and these are shown as donations in kind. These donations are ii) recognised as income when received at fair value using an estimate of £1.75 per kg.
The charity relies on volunteers to carry out many of its activities. However, in accordance with the SORP, the value of these iii) services has not been included in these financial statements as they cannot be reliably measured.
Income from charitable activities represents income receivable from goods, services and facilities supplied in furtherance of the charity's charitable objects. It includes income from church retreats and other events and courses. St Luke's received financial donations as a result of its decision to establish a Foodbank but these are unrelated to the Foodbank "service" being provided.
Income from other trading activities represents income receivable from activities undertaken to generate funds for the charity. It includes income from properties as detailed in note 5.
Investment income represents income generated by the charity's assets (including bank interest].
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THE ST LUKE'S MISSION INITIATIVE
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 DECEMBER 2020
c) Expenditure
Expenditure, including irrecoverable VAT, is recognised when it is incurred or, if earlier, when a legal or constructive obligation for a payment arises provided that it is probable that settlement will be required and the amount of the obligation can be measured reliably.
The charity makes grants to other institutions and individuals to further its charitable objectives. Grants payable are recognised as constructive obligations arise, which is generally when the charity expresses a commitment to the recipient that can be measured reliably and then only to the extent that any conditions associated with the grant are outside of the control of the charity.
Governance costs, which are included in expenditure on charitable activities but are identified separately in the notes to the accounts, includes costs associated with the independent examination of the financial statements, compliance with constitutional and statutory requirements and any other expenditure incurred on the strategic management of the charity.
d) Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity. Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. Restricted funds are donations which are to be used in accordance with specific restrictions imposed by donors; they include donations received from appeals for specific activities or projects.
e) Tangible fixed assets
Items purchased or donated for the charity's own use are capitalised when the cost of purchased items, or the fair value of donated items, is more than £500 and the item is expected to benefit the charity over more than one accounting period. Depreciation is charged on a straight line basis so as to write down the value of each asset to its estimated residual value (if any) over its expected useful economic life. To achieve this objective the following rates of depreciation are charged:
Freehold land Is not depreciated (because it is not consumed by use) Freehold buildings Over 50 years after taking account of the building's residual value Leasehold improvements Over the lease term or, if shorter, expected useful life Equipment Over 3 to 7 years
The carrying values of tangible fixed assets are reviewed for impairment in periods when events or changes in circumstances indicate that the carrying value may not be recoverable.
h) Stocks
Stocks of donated items held for distribution to beneficiaries are measured at an estimate of fair value.
f) Pension scheme arrangements
The charity operates defined contribution pension schemes for its employees. Obligations for contributions to these schemes are recognised as an expense when the liability arises. The assets of these schemes are held separately from those of the charity in independently administered funds.
g) Taxation
The company is a registered charity; it has taken advantage of the various reliefs from taxation available to charities and no tax is payable on the charity's income.
h) Exemption from preparing a cashflow statement
The charity has taken advantage of an exemption conferred by the Charities SORP and has not prepared a cash flow statement.
i) Critical accounting estimates and areas of judgement The trustees do not consider that there are any material sources of estimation or uncertainty at the balance sheet date that could result in a material adjustment to the carrying values of assets and liabilities in the next reporting period.
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THE ST LUKE'S MISSION INITIATIVE
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 DECEMBER 2020
3 Donations and legacies
| Donations of cash and similar Grants receivable Donations in kind (Foodbank) Gift Aid Grants Received from: London Diocesan Fund London Community Foundation One House Group Ltd Others 4 Income from charitable activities Church weekend away Other 5 Income from other trading activities Property letting |
2020 £ 64,534 9,079 42,105 2,864 118,581 2020 £ - 8,079 1,000 9,079 2020 £ - 283 283 2020 £ 25,732 25,732 |
2019 £ 56,187 10,237 - 2,795 |
|---|---|---|
| 69,220 | ||
| 2019 £ 10,000 - - 237 |
||
| 10,237 | ||
| 2019 £ 1,172 981 |
||
| 2,153 | ||
| 2019 £ 25,246 |
||
| 25,246 |
In the prior year accounts, income from property lettings was included under Investment income. This represents rental income from renting out Flat 1, St Cuthbert's House. The flat itself is owned by the Porter's Trust and is leased by St Luke's on a 5 year term at a peppercorn rent. St Luke's then sub-lets the flat at a commercial rent. The value of the gift in kind has not been included in the accounts as the value of this gift is covered by the rental income.
6 Investment income
| Bank interest | 2020 £ - - |
2019 £ 4 |
|---|---|---|
| 4 |
Page 13
THE ST LUKE'S MISSION INITIATIVE
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 DECEMBER 2020
7 Charitable expenditure
| a Costs incurred directly on specific activities Church of England Contribution Premise Expenses Flats Expenses Parsonage costs General expenses Staff training Shelter Running costs Grants payable to individuals (relief of poverty) Services and community Events Depreciation Children's work Ministries Marketing Church Weekend Away Foodbank Foodbank donations in kind expensed b Costs incurred on support & administration Governance costs Independent examiner's fee General Office costs Telephone, Internet and IT Costs Bank fees Bookkeeping services (including payroll) c New Building Costs Utility Costs during build General Expenses Total expenditure |
2020 £ 52,900 20,668 7,381 1,684 (22) 304 - 1,897 203 21,295 - 195 - 3,965 40,005 150,475 1,758 1,758 631 3,519 12 - 5,920 - 834 834 157,229 |
2019 £ 51,400 13,255 4,645 1,620 1,462 80 842 - 2,105 20,869 108 152 3,952 - - |
|---|---|---|
| 100,489 | ||
| 1,920 | ||
| 1,920 - 3,829 - 2,215 |
||
| 7,964 | ||
| 8,762 - |
||
| 8,762 | ||
| 117,215 |
Page 14
THE ST LUKE'S MISSION INITIATIVE
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 DECEMBER 2020
8 Analysis of staff costs, the cost of key management personnel and trustee remuneration and expenses
| Gross wages and salaries Social security Pension costs Other employment benefits |
2020 £ 3,625 - 62 - 3,687 |
2019 £ - - |
|---|---|---|
| - |
The average monthly number of employees during the year was 0.25 (2019: NIL). Most of the charity's activities are carried out by volunteers.
No staff received salaries at a rate of more than £60,000 per annum.
Key management responsible for the day-to-day management of the church was Ed Dix, who received £nil payments from the charity for reimbursement of expenses incurred in his management role during the year (2019: £686). Ed receives a stipend from the Diocese of London and received no other payments from the charity in 2020.
No other Trustees received payments in 2020 (2019:0)
9 Tangible fixed assets
| Cost At 1 January 2020 Additions At 31 December 2020 Accumulated depreciation At 1 January 2020 Charge for the year At 31 December 2020 Net book value At 31 December 2020 At 31 December 2019 Stock Donated goods For distribution to beneficiaries of foodbank Debtors Falling due within one year: Trade debtors Tax recoverable Other debtors Total debtors |
Fixtures, fittings and equipment £ 106,266 1,264 107,530 37,030 21,295 58,325 49,205 69,236 2020 £ 2,100 2,100 2020 £ 948 2,851 1,978 5,776 |
Total 2020 £ 106,266 1,264 |
|---|---|---|
| 107,530 | ||
| 37,030 21,295 |
||
| 58,325 | ||
| 49,205 | ||
| 69,236 | ||
| 2019 £ - |
||
| - | ||
| 2019 £ 1,617 2,788 - |
||
| 4,405 |
10 Stock
11 Debtors
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THE ST LUKE'S MISSION INITIATIVE
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 DECEMBER 2020
12 Cash at Bank and in Hand
| 12 Cash at Bank and in Hand |
||
|---|---|---|
| Cash at bank with immediate access 13 Creditors: liabilities falling due within one year Trade creditors Taxation and social security Accruals Other creditors |
2020 £ 16,208 16,208 2020 £ 115 388 3,678 2,700 6,881 |
2019 £ 12,409 |
| 12,409 | ||
| 2019 £ 1,360 - 2,849 2,800 |
||
| 7,008 |
14 Pension commitments
During the year employer’s pension contributions totalling £61.95 (2019: £nil) were payable to defined contribution personal pension schemes. Total employee & employer pension contributions of £96.38 were owing at the balance sheet date (2019: £nil).
15 Funds
During the year the movements in the charity's funds were as follows:
| General Unrestricted Funds Total Unrestricted Funds Restricted Funds Youth Work Building Fund Minister's Discretionary Fund Foodbank Coordinator Fund Foodbank Fund Aggregate of funds |
Opening balance 2020 £ 73,307 73,307 250 3,815 1,669 - - 5,734 79,041 |
Incoming resources 2020 £ 135,517 135,517 - - 8,079 1,000 9,079 144,596 |
Outgoing resources 2020 £ (150,719) (150,719) - (834) (1,711) (3,687) (278) (6,510) (157,229) |
Transfers in the year 2020 £ (42) (42) - - 42 - - 42 - |
Gains and losses 2020 £ - - - |
Closing balance 2020 £ 58,063 |
|---|---|---|---|---|---|---|
| 58,063 | ||||||
| 250 2,981 - 4,392 722 |
||||||
| 8,345 | ||||||
| 66,408 |
The transfers referred to above were made for the following reasons:
a) Discretionary Fund costs incurred were refunded by the General Fund
Page 16
THE ST LUKE'S MISSION INITIATIVE
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 DECEMBER 2020
Analysis of net assets by fund
The assets and liabilities of the various funds were as follows:
| ysis of net assets by fund assets and liabilities of the various funds were as follows: |
||||
|---|---|---|---|---|
| Tangible fixed assets Stock Debtors Cash at bank and in hand Creditors falling due within one year |
General Designated funds funds £ £ 49,205 - 2,100 5,776 - 7,863 - (6,881) - 58,063 - Unrestricted Funds |
Restricted funds £ - - 8,345 - 8,345 |
2020 £ 49,205 2,100 5,776 16,208 (6,881) |
|
| General funds £ 49,205 2,100 5,776 7,863 (6,881) 58,063 |
||||
| 66,408 |
In the previous year the movements in the charity's funds were as follows:
| General Unrestricted Funds Total Unrestricted Funds Restricted Funds Youth Work Building Fund Minister's Discretionary Fund Aggregate of funds |
Opening balance 2019 £ 80,404 80,404 250 17,311 1,669 19,230 99,634 |
Incoming resources 2019 £ 86,372 86,372 - 10,250 - 10,250 96,622 |
Outgoing resources 2019 £ (108,453) (108,453) - (8,762) - (8,762) (117,215) |
Transfers in the year 2019 £ 14,984 14,984 - (14,984) - (14,984) - |
Gains and losses 2019 £ - - - |
Closing balance 2019 £ 73,307 |
|---|---|---|---|---|---|---|
| 73,307 | ||||||
| 250 3,815 1,669 |
||||||
| 5,734 | ||||||
| 79,041 |
Analysis of net assets by fund
In the previous year, the assets and liabilities of the various funds were as follows:
| Tangible fixed assets Stock Debtors Cash at bank and in hand Creditors falling due within one year |
General Designated funds funds £ £ 69,236 - - 4,405 - 6,675 - (7,008) - 73,307 - Unrestricted Funds |
Restricted funds £ - - 5,734 - 5,734 |
2019 £ 69,236 - 4,405 12,409 (7,008) |
|
|---|---|---|---|---|
| General funds £ 69,236 - 4,405 6,675 (7,008) 73,307 |
||||
| 79,041 |
Page 17
THE ST LUKE'S MISSION INITIATIVE
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 DECEMBER 2020
The Youth work Fund relates to a donation received specifically for the Youth work of the church
The Building Fund relates to monies donated for use for the building and equipping of the new church building
The Minister's Discretionary Fund was created by a donation in 2016 for the alleviation of hardship of church members
The Foodbank Coordinator Fund relates to a donation received to cover the cost of a Foodbank coordinator
The Foodbank Fund relates to donations received to cover general costs related to the Foodbank.
16 Transactions with related parties During the year the charity:
- a) received donations totalling £28,693 (2019: £16,930) from related parties (which includes trustees, any other members of key management and anyone closely connected to them).
Except as disclosed in note 7 'Analysis of staff costs', there have been no other transactions with related parties during the year.
17 Members
Each member of the company commits to contribute if the charity is wound up an amount of £1.
Page 18
THE ST LUKE'S MISSION INITIATIVE
DETAILED STATEMENT OF FINANCIAL ACTIVITIES WITH COMPARATIVES
FOR THE YEAR ENDED 31 DECEMBER 2020
| Note INCOME AND ENDOWMENTS FROM: Donations and legacies 3 Charitable activities 4 Other trading activities 5 Investments 6 Total income and endowments EXPENDITURE ON: Charitable activities 7 New Building Costs 7 Total Expenditure Net gains/(losses) on investments Net income/(expenditure) Transfers between funds 15 Net movement in funds Reconciliation of funds: Total funds brought forward Total funds carried forward 15 |
General 2020 £ 109,502 283 25,732 - 135,517 150,719 - 150,719 (15,202) (42) (15,244) 73,307 58,063 Unrestricted funds |
Restricted 2020 £ 9,079 9,079 5,676 834 6,510 2,569 42 2,611 5,734 8,345 |
Total 2020 £ 118,581 283 25,732 - 144,596 156,395 834 157,229 - (12,633) - (12,633) 79,041 66,408 |
General 2019 £ 58,970 2,153 25,246 4 86,372 108,453 - 108,453 (22,081) 14,984 (7,097) 80,404 73,307 Unrestricted funds |
Restricted 2019 £ 10,250 10,250 8,762 8,762 1,488 (14,984) (13,496) 19,230 5,734 |
Total 2019 £ 69,220 2,153 25,246 4 96,622 108,453 8,762 117,215 - (20,593) - (20,593) 99,634 79,041 |
|||||
|---|---|---|---|---|---|---|---|---|---|---|---|
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