## The St Luke's Mission Initiative
Report and Accounts Year ended 31 December 2021
1 Lamb's Passage, London EC1Y 8AB www.stewardship.org.uk
## **THE ST LUKE'S MISSION INITIATIVE**
## **CONTENTS**
## **FOR THE YEAR ENDED 31 DECEMBER 2021**
|**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 - 16|
|Detailed Statement of Financial Activities with Comparatives|17|
The St Luke’s Mission Initiative
Annual Report and Financial Statements of the trustees
For the twelve month period ended 31 December 2021
## **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_
_Joshua Hill (resigned 21 July 2022)_
_Jonathan McMillan (resigned 25 October 2021)_
_Phoebe Hill (resigned 7 May 2021)_
_Dave Nunn_
_Ben Thomson_
_Selwyn Cush-Etter (appointed 9 February 2022)_
_Abraham Dosunmu (appointed 9 February 2022)_
_Ferry Tantono (appointed 21 July 2022)_
Bank:
_Reliance Bank Ltd at Faith House, 23-24 Lovat Lane, London, EC3R 8EB._
1
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_
## **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 vision of The St Luke’s Mission Initiative, in line with its objects, 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 eight 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, strategic planning, and ensuring the church flourished during Ed’s sabbatical
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 met bimonthly, with a standing committee, comprising trustees from the church council, meeting in the intervening months.
## _Church Council_
During 2021 the church council continued to exercise its core function in providing leadership in the areas of Christian discipleship, outreach, worship, and financial management, amongst others. The ongoing challenges of running a church through the Covid-19 pandemic also occupied the time and energies of the council through the year, especially with regard to ensuring that the church was at all times in acting in a responsible way and complying with the changing
2
government regulations. In addition, the church council, under the leadership of Carolynne and Dave as church wardens, led the church through three months in the middle of the year in which Ed stepped back from ministry for extended study leave.
Membership of the church council changed partially during the year, with the resignation of two trustees, and two new trustees were elected in early 2022.
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_
Many churches have found that one of the legacies of the pandemic is that the average Sunday attendance is some way below pre-pandemic levels, and St Luke’s Millwall is no different in this respect. Our in-person attendance, by the end of the year, was beginning to increase once again, to approximately 40 adults and 20 children, and we continued to offer an online experience of Sunday morning worship through livestream, with streams gaining around 45 views on Youtube within a week of posting.
## _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**
## **Worship**
## _Services_
During 2021 services continued to be both live-streamed, and when Covid regulations permitted, held in-person. During the year we had a number of sermon series: on the Fifth Chapter of the Gospel of John, Paul’s letter to the Colossians, the early chapters of Acts, the Sermon on the Mount, and Following the Way of Christ. We also renewed our church’s vision and spent a number of weeks preaching through Isaiah 61 as we unpacked different aspects of our vision.
## _Register of occasional services_
In 2021, one wedding and three baptisms took place at St Luke’s church.
## _Worship Music_
In October we bid a sad farewell to the McMillan family who were moving away from the Isle of Dogs after nine years during which they had given so much to the worship life of the church. We are so grateful to Jonathan and Jennifer for their sacrificial service to the church, especially in going the extra miles that leading worship during the Covid Pandemic involved. The Lord has been gracious to us in helping to meet the need that the McMillans’ departure has created, and we have a small but committed and gifted group of musicians who serve us as we bring our worship to God each Sunday.
## _Children’s church and Youth church_
Through the pandemic we sought to continue 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. During the summer term we innovated further with the introduction of a 11.45am family service following the 10.30am service, enabling us to comply with restrictions on the number of people allowed in the building at any one time. This arrangement was kept in place through to the end of
3
July, and it provided a valuable opportunity for parents to worship and pray and be taught from the Bible alongside their children. The youth church met regularly both through Zoom, and when possible in person in the church building on Sundays and for various youth social evenings through the year. 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. Our staff team during 2021 consisted of the following:
- Ed Dix: Minister-in-charge
- Fuzz Dix: Families Pastor
- Carolynne McGaughey: volunteer administrator
- Soňa Bartosicova: Foodbank coordinator (until October)
- Selwyn Cush-Etter: St Mellitus ordinand, leading on prayer and youth ministry (from September)
Church members serve in our many teams, which 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_
In June we once again returned to Otford Manor for our church weekend away. Following much uncertainty about whether or not the weekend would be able to take place due to Covid restrictions, it was a joy to finally arrive at the weekend with a very encouraging number of church members attending in person, and more joining online. Additional donations from church members made it possible for many people in positions of financial hardship to attend the weekend who otherwise would not have been able to do so. Our visiting speaker was Rev Frog Orr-Ewing, and Simon and Rachel Smith once again led the children’s ministry for the weekend. The weekend provided opportunities for rest, spiritual refreshment and nourishment, worship, prayer and ministry, and fun, laughter and entertainment, and was a great success.
## _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 2021 the groups continued to meet online, providing support, pastoral care, and opportunities for Bible study and prayer, for church members. Towards the end of the year groups began to regather in person, and there is significant potential for multiplication of groups in 2022.
## _Men’s & Women’s Ministry_
During 2021 our women’s and men’s ministries, like so many other aspects of church life, moved online.
## _Giving to those in need and establishing Mission Partners_
An important component of healthy discipleship is learning to live generously, and as St Luke’s Millwall has matured we have been able to think and pray about how we exercise generosity and partnership with others. Following a process of deliberation and prayer the church council chose the following four Christian charities to partner with in future years:
- Operation Mobilisation (international focus)
- Christians Against Poverty (national focus)
- London City Mission (city-wide focus)
- This is GrowTH (Tower Hamlets focus)
In 2022 we gave one-off gifts to each of these ministries, and over the coming years we hope to increase our external giving to ten percent of our income from congregational giving.
The church also has a discretionary fund which enables us to respond to exceptional individual needs as they arise.
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## **Evangelism and work in the community**
## _St Luke’s Foodbank_
The St Luke’s Foodbank continued to operate for ten months of the year, during which time approximately thirty six tonnes of food was distributed to local individuals and families. The foodbank was led by Sona Bartosicova, our foodbank coordinator, and she was supported by a wonderful team of volunteers from the church and the wider community. Most food was distributed from the church building, with deliveries continuing for those who were more vulnerable or unable to leave their homes for various reasons. The Covid response funding for our foodbank coordinator came to an end in September 2021, and the church council felt that the time was right to bring the foodbank to a close at the end of October. The church continues to provide food help for vulnerable people on an individual basis, and we will continue to track the level of need in the community in the months and years to come. It may be that a foodbank will be needed again in future, but our main focus at the moment is on deepening our connections with our community and meeting needs beyond the immediate ones of food in the cupboard. (See further information below on ESOL classes and Community Coffee mornings)
Our main sources of food in 2021 continued to be The Felix Project, LYN (Love Your Neighbour), Asda donations, Co Op donations, and individuals who want to help.
## _Community Coffee Morning and ESOL_
In November 2021 two new ministries began, reaching out to our local community: a weekly Community Coffee Morning, and an ESOL class, run in partnership with London City Mission. Whilst it is still early days for these activities we have seen very encouraging early signs of fruit, with the coffee morning providing a platform to launch an Alpha group in January 2022, and with around 12 people - mostly Bangladeshi women -attending the ESOL classes. We are very grateful to Alice Cooper, an LCM missionary, for facilitating the ESOL classes, and we hope to raise up helpers and leaders from within the church in the months to come.
## _Alpha_
A daytime Alpha group will start in January 2022 on Tuesday mornings.
## _Kids Matter and Babies Matter Groups_
Kids Matter parenting groups were run both online (in the spring) and in-person (in the autumn) during the year, whilst a Babies Matter group was held online in the autumn. Kids Matter continues to provide a fantastic way for us as a church to support local families navigate the challenges of parenting, and we are really excited that one of our church parents, Amirah, who previously attended a Kids Matter group herself, will be trained as a Kids Matter facilitator in early 2022!
## _Partnership with local schools_
During 2021 we were able to continue our strong partnership with Seven Mills Primary School through leading assemblies on Christian topics, giving classes guided tours of the church building and taking RE lessons, and we once again delivered Christmas presents and parcels to each child in the school.
## _Sunbeams_
Our weekly parent and toddler group moved to the outdoor setting of Sir John McDougall Gardens during the Covid restrictions, before being able to restart in the building in October 2021.
## _Community events_
The live nativity in Mudchute Farm returned after a break due to Covid restrictions; it was a joy to celebrate the birth of Christ in the open air and with many visitors joining in. The rain stayed off (just!) and approximately 150 adults plus
5
children participated in different ways, enjoying the procession to the stable whilst singing carols, helping to re-enact the nativity story itself, and enjoying free mulled juice and hot chocolate afterwards. We are very grateful to the staff at the farm for helping to facilitate such a successful event.
_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 and church building. Funding from congregation members was in the form of gifts, regular collections and donations via Stewardship, which increased compared to the prior year driven primarily by higher giving from new and existing church members. Rental income from the church flat remained stable versus the prior year, whilst rental income from the church building increased due to higher activity following the relaxation of covid restrictions and a return to more frequent in-person events (although still below pre-pandemic levels). The total amount raised across all sources of funding was £194,104. 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 6 of the financial statements. Most of the spending meets more than one of the key objectives. The total expenses for the year were £190,805. During early 2021, given the expected reduction in rental income from the church building, the Trustees agreed with the Diocese of London to reduce the St Luke’s Mission Initiative’s Common Fund contribution by £1,000 per month for an initial period of six months (from March to August) and then a further two months (for September and October) following a mid-year review of the St Luke’s Mission Initiative’s finances. Normal Common Fund contributions were resumed in November 2021. The Trustees are grateful for the financial flexibility provided by the Diocese during 2021 and have seen a return to normalised church building rental activity levels during 2022.
## _Policy on reserves_
The unrestricted net current assets at 31 December 2021 were £36,430 which the trustees believe is adequate to ensure that the charity could continue to operate should income and/or expenditure vary adversely.
In addition, 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 were aware that the financial position of the charity at the end of 2020 was fragile. 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 reviewed the financial position of The St Luke’s Mission Initiative against this budget and we are pleased to say that the financial position of the church was markedly improved by December 2021. We were therefore able to begin assigning a percentage of our funds for this purpose from the end of 2021, and this will continue until we have reached our four month-reserve target. In Q1 2022 we therefore transferred £10,575 to a separate savings account in order to ring fence the funds from the day-to-day operations of the charity.
## _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 build up a reserves target over time to provide for future expenditure associated with custodianship of the church building. A new 35 Day Notice Savings Account was
6
set up during early 2022 in order to ensure an appropriate segregation of the reserves from the day-to-day operations of St Luke’s and to maximize interest income. There are no excess funds to invest..
## _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;
- observe the methods and principles in the Charities SORP
- make judgments and estimates that are reasonable and prudent;
- state whether the applicable accounting standards have been followed, 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 22 September 2022 and signed on their behalf by:
## **Ed Dix**
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 2021 on pages 9 to 17 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:
1. accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or
2. the accounts do not accord with those records; or
3. 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
4. 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
Lisa Darby ACA
26 September 2022
Stewardship 1 Lamb's Passage London EC1Y 8AB
8
## **THE ST LUKE'S MISSION INITIATIVE**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT**
## **FOR THE YEAR ENDED 31 DECEMBER 2021**
|Note
**INCOME AND ENDOWMENTS FROM:**
Donations and legacies
3
Charitable activities
4
Other trading activities
5
**Total income and endowments**
**EXPENDITURE ON:**
Charitable activities
6
New Building Costs
6
**Total expenditure**
**Net income/(expenditure)**
**Transfers between funds**
14
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
**Total funds carried forward**
14|Unrestricted
Funds
£
150,544
4,017
28,499
183,060
175,691
-
175,691
7,369
-
7,369
58,063
65,432|Restricted
Funds
£
11,044
-
-
11,044
15,114
-
15,114
(4,070)
-
(4,070)
8,345
4,275|Total
Funds
2021
£
161,588
4,017
28,499
194,104
190,805
-
190,805
3,299
-
3,299
66,408
69,707|Total
Funds
2020
£
118,581
283
25,732|
|---|---|---|---|---|
|||||144,596|
|||||156,395
834|
|||||157,229|
|||||(12,633)
-|
|||||(12,633)
79,041|
|||||66,408|
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 11-16 form part of these accounts.
9
## **THE ST LUKE'S MISSION INITIATIVE**
## **BALANCE SHEET**
## **FOR THE YEAR ENDED 31 DECEMBER 2021**
|Note
**FIXED ASSETS**
Tangible assets
8
**CURRENT ASSETS**
Stock
9
Debtors
10
Cash at bank and in hand
11
**CREDITORS: Amounts falling**
**due within one year**
12
**Net current assets / (liabilities)**
**TOTAL NET ASSETS**
**FUND BALANCES**
14
Unrestricted Funds
General funds
Restricted Funds|Unrestricted
Funds
£
29,002
29,002
525
8,251
31,063
39,840
(3,410)
36,430
65,432
65,432
-
65,432|Restricted
Funds
£
-
-
-
-
4,275
4,275
-
4,275
4,275
-
4,275
4,275|Total
Funds
2021
£
29,002
29,002
525
8,251
35,338
44,115
(3,410)
40,705
69,707
65,432
4,275
69,707|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|
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2021
The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2021 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
- f(a) ensuring that the charitable company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and
- (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 22 September 2022 and were signed on its behalf by:
## **Ed Dix**
---------------------------------------
Ed Dix, Minister in Charge
Company number: 8351330
Charity number: 1151021
The notes on page 11-16 form part of these accounts.
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## **THE ST LUKE'S MISSION INITIATIVE**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 DECEMBER 2021**
## **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.
- ii) 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 recognised as income when received at fair value using an estimate of £1.75 per kg.
- iii) The charity relies on volunteers to carry out many of its activities. However, in accordance with the SORP, the value of these 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].
- 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.
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## **THE ST LUKE'S MISSION INITIATIVE**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 DECEMBER 2021**
## 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.
## f) Stocks
Stocks of donated items held for distribution to beneficiaries are measured at an estimate of fair value.
## g) 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.
## h) 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.
## i) 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.
## j) 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.
## **3 Donations and legacies**
|Donations of cash and similar
Grants receivable
Donations in kind (Foodbank)
Gift Aid
Grants Received from:
East End Community Foundation
Canary Wharf Group
London Community Foundation
One House Group Ltd
**Income from charitable activities**
Church weekend away
Other|2021
£
84,100
11,044
61,635
4,809
161,588
2021
£
9,844
1,200
-
-
11,044
2021
£
3,292
725
4,017|2020
£
64,534
9,079
42,105
2,864|
|---|---|---|
|||118,581|
|||2020
£
-
-
8,079
1,000|
|||9,079|
|||2020
£
-
283|
|||283|
- **4 Income from charitable activities**
12
## **THE ST LUKE'S MISSION INITIATIVE**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 DECEMBER 2021**
## **5 Income from other trading activities**
|**me from other trading activities**|||
|---|---|---|
|Property letting|2021
£
28,499
28,499|2020
£
25,732|
|||25,732|
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 Charitable expenditure**
|2021
£
**a**
**Costs incurred directly on specific activities**
Church of England Contribution
44,466
Premise Expenses
22,517
Flats Expenses
8,949
Parsonage costs
1,631
General expenses
324
Staff training
-
Shelter Running costs
-
Grants payable to individuals (relief of poverty)
819
Services and community events
2,049
Depreciation
20,203
Sound & vision
531
Ministries Marketing
-
Church Weekend Away
5,920
Foodbank
15,048
Foodbank donations in kind expensed
63,210
185,667
**b**
**Costs incurred on support & administration**
Governance costs
Independent examiner's fee
1,860
1,860
General Office costs
396
Telephone, Internet and IT Costs
2,768
Bank fees
115
Bookkeeping services (including payroll)
-
5,139
**c**
**New Building Costs**
Utility Costs during build
-
General Expenses
-
-
**Total expenditure**
190,805
**7**
2021
£
Gross wages and salaries
12,199
Social security
-
Pension costs
207
Other employment benefits
-
12,406
**Analysis of staff costs, the cost of key management personnel and trustee remuneration and expenses**|2020
£
52,900
20,668
7,381
1,684
(22)
304
-
1,897
203
21,295
978
195
-
3,965
40,005|
|---|---|
||151,453|
||1,758|
||1,758
631
2,541
12
-|
||4,942|
||-
834|
||834|
||157,229|
||2020
£
3,625
-
62
-|
||3,687|
13
## **THE ST LUKE'S MISSION INITIATIVE**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 DECEMBER 2021**
The average monthly number of employees during the year was 0.8 (2020: 0.25). 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 £215 payments from the charity for reimbursement of expenses incurred in his management role during the year (2020: £nil). Ed receives a stipend from the Diocese of London and received no other payments from the charity in 2021.
No other Trustees received payments in 2021 (2020:0)
- **8 Tangible fixed assets**
|Cost
At 1 January 2021
Additions
At 31 December 2021
Accumulated depreciation
At 1 January 2021
Charge for the year
At 31 December 2021
Net book value
At 31 December 2021
At 31 December 2020
**9**
**Stock**
Donated goods
For distribution to beneficiaries of foodbank
**10**
**Debtors**
**Falling due within one year:**
Trade debtors
Tax recoverable
Amount owed by HMRC
Other debtors
**Total debtors**
**11**
**Cash at Bank and in Hand**
Cash at bank with immediate access
**12**
**Creditors: liabilities falling due within one year**
Trade creditors
Taxation and social security
Accruals
Other creditors|Fixtures,
fittings and
equipment
£
107,530
-
107,530
58,325
20,203
78,528
29,002
49,205
2021
£
525
525
2021
£
600
4,807
866
1,978
8,251
2021
£
35,338
35,338
2021
£
-
-
1,860
1,550
3,410|Total
2021
£
107,530
-|
|---|---|---|
|||107,530|
|||58,325
20,203|
|||78,528|
|||29,002|
|||49,205|
|||2020
£
2,100|
|||2,100|
|||2020
£
948
2,851
-
1,978|
|||5,776|
|||2020
£
16,208|
|||16,208|
|||2020
£
115
388
3,678
2,700|
|||6,881|
14
## **THE ST LUKE'S MISSION INITIATIVE**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 DECEMBER 2021**
## **13 Pension commitments**
During the year employer’s pension contributions totalling £206.50 (2020: £61.95) were payable to defined contribution personal pension schemes. Total employee & employer pension contributions of £nil were owing at the balance sheet date (2020: £96.38).
## **14 Funds**
During the year the movements in the charity's funds were as follows:
|_Designated Funds_
Minister's Discretionary Fund
_General Unrestricted Funds_
Total Unrestricted Funds
_Restricted Funds_
Youth Work
Building Fund
Foodbank Coordinator Fund
Foodbank Fund
Aggregate of funds|Opening
balance
2021
£
-
-
58,063
58,063
250
2,981
4,392
722
8,345
66,408|Incoming
resources
2021
£
-
-
183,060
183,060
-
-
9,844
1,200
11,044
194,104|Outgoing
resources
2021
£
(169)
(169)
(175,522)
(175,691)
(67)
-
(14,236)
(812)
(15,114)
(190,805)|Transfers
in the year
2021
£
169
169
(169)
-
-
-
-
-
-
-|Closing
balance
2021
£
-|
|---|---|---|---|---|---|
||||||-
65,432|
||||||65,432|
||||||183
2,981
-
1,110|
||||||4,275|
||||||69,707|
The transfers referred to above were made for the following reasons: a) Discretionary Fund costs incurred were refunded by the General Fund
## **Analysis of net assets by fund**
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
£
£
29,002
-
525
-
8,251
-
31,063
-
(3,410)
-
65,432
-
Unrestricted Funds|Restricted
funds
£
-
-
-
4,275
-
4,275|2021
£
29,002
525
8,251
35,338
(3,410)|
|---|---|---|---|---|
|||General
funds
£
29,002
525
8,251
31,063
(3,410)
65,432|||
|||||69,707|
15
## **THE ST LUKE'S MISSION INITIATIVE**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 DECEMBER 2021**
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
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
-|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
## **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
£
£
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|
## _Designated Funds_
The Minister's Discretionary Fund was created for the alleviation of hardship of church members
## _Restricted Funds_
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 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.
## **15 Transactions with related parties**
During the year the charity:
- a) received donations totalling £23,826 (2020: £28,693) 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.
## **16 Members**
Each member of the company commits to contribute if the charity is wound up an amount of £1.
16
## **THE ST LUKE'S MISSION INITIATIVE**
## **DETAILED STATEMENT OF FINANCIAL ACTIVITIES WITH COMPARATIVES**
## **FOR THE YEAR ENDED 31 DECEMBER 2021**
|Note
**INCOME AND ENDOWMENTS FROM:**
Donations and legacies
3
Charitable activities
4
Other trading activities
5
**Total income and endowments**
**EXPENDITURE ON:**
Charitable activities
6
New Building Costs
6
**Total Expenditure**
**Net income/(expenditure)**
**Transfers between funds**
14
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
**Total funds carried forward**
14|||General
Designated
2021
2021
£
£
150,544
4,017
28,499
183,060
-
175,522
169
-
175,522
169
7,538
(169)
(169)
169
7,369
-
58,063
-
65,432
-
Unrestricted funds|Restricted
2021
£
11,044
-
-
11,044
15,114
-
15,114
(4,070)
-
(4,070)
8,345
4,275|Total
2021
£
161,588
4,017
28,499
194,104
190,805
-
190,805
3,299
-
3,299
66,408
69,707||||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
2021
£
150,544
4,017
28,499
183,060
175,522
-
175,522
7,538
(169)
7,369
58,063
65,432|||||||||
|||||||||||||
|||||||||||||
|||||||||||||
|||||||||||||
|||||||||||||
|||||||||||||
|||||||||||||
17