OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2022-05-31-accounts

Charity registration number 1152260

Company registration number 08407295 (England and Wales)

LIFE CHURCH HOOK

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2022

LIFE CHURCH HOOK

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees David Hill
Thomas Colebrooke
Peter MacPherson
Helen Wickenden
Pastor Ben Martin
Charity number 1152260
Company number 08407295
Principal address Life Church Centre
Elms Road
Hook
Hampshire
RG27 9DX
Registered office Life Church Centre
Elms Road
Hook
Hampshire
RG27 9DX
Independent examiner Richard F Hopper
4 Rhodfa Clawdd Offa
Denbigh
Denbighshire
LL16 4RJ
Bankers CAF Bank Ltd
25 Kings Hill Avenue
Kings Hill
West Malling
Kent
ME19 4JQ

LIFE CHURCH HOOK

CONTENTS

Page
Trustees' report 1 - 2
Statement of trustees' responsibilities 3
Independent examiner's report 4
Statement of financial activities 5
Balance sheet 6
Notes to the financial statements 7 - 17

LIFE CHURCH HOOK

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MAY 2022

The trustees present their report and accounts for the period ended 31 May 2022.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's constitution, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).

Objectives and activities

The charity's objects are to advance the Christian faith and relieve poverty. The policies adopted in furtherance of these objects are to preach and proclaim the Christian gospel and the teaching of Christian doctrines and principles and there has been no change in these during the year.

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

Achievements and performance

Life Church Hook continues to operate as a charitable limited company. We have continued to strengthen existing activities and develop new opportunities to communicate the Christian Faith and serve our local community. As the Covid-19 pandemic restrictions were removed in stages throughout 2020/21 we adapted our restarting them as in-person when restrictions allowed.

The key activities of the church during the year as follows:

Our church attendance levels have remained fairly level throughout the pandemic as have our income levels. Some additional costs were incurred as we re-started our in-person activities.

Financial review

The financial transactions of the charity during the period and the financial position at the end of the period are summarised in the attached accounts. The trustees consider the financial position to be satisfactory.

It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.

The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

Structure, governance and management

The charity is a company limited by guarantee formed on 18 February 2013.

LIFE CHURCH HOOK

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MAY 2022

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

David Hill Thomas Colebrooke Peter MacPherson Nicola Hall (Resigned 15 July 2021) Helen Wickenden

New trustees are appointed from fellow Christians who are members of the church, by recommendation and invitation as appropriate.

None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.

The church is served by trustees who are responsible for the administration of financial affairs and material assets and governance of the charity, and by elders who are responsible for the teaching, pastoral care and other activities of the church. The trustees and elders work closely together in pursuing the objects of the charity. Day by day decisions on expenditure and departmental matters are taken by the staff and volunteers who have been given responsibility for these areas under the direction and oversight of the elders and trustees. In April 2020 David Grant resigned as an elder and pastor of the church and left our employment; Ben Martin has taken his place since May 2020.

The church is a part of the Commission network which itself belongs to Newfrontiers International Network of churches, and is also a member of The Evangelical Alliance.

The trustees' report was approved by the Board of Trustees.

..............................

David Hill Trustee Dated: .........................

LIFE CHURCH HOOK

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 MAY 2022

The trustees, who are also the directors of Life Church Hook for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

LIFE CHURCH HOOK

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF LIFE CHURCH HOOK

I report to the trustees on my examination of the financial statements of Life Church Hook (the charity) for the year ended 31 May 2022.

Responsibilities and basis of report

As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).

Having satisfied myself that the financial statements of the charity 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 the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable 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 that in any material respect:

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 financial statements to be reached.

Richard F Hopper

Chartered Accountant

4 Rhodfa Clawdd Offa Denbigh Denbighshire LL16 4RJ

Dated: .........................

LIFE CHURCH HOOK

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MAY 2022

Unrestricted
Restricted
funds
funds
Notes
£
£
Income and endowments from:
Donations and legacies
3
95,053
6,366
Lettings income
4
2,621
-
Investments
5
4
-
Other income
6
3,757
1,618
Total income
101,435
7,984
Expenditure on:
Charitable activities
7
87,565
6,629
Other Expenses
12
9,623
-
Total resources expended
97,188
6,629
Net income for the year/
Net movement in funds
4,247
1,355
Fund balances at 1 June 2021
255,057
446,919
Fund balances at 31 May 2022
259,304
448,274
Total
2022
£
101,419
2,621
4
5,375
109,419
94,194
9,623
103,817
5,602
701,976
707,578
Total
2021
£
108,334
394
15
131
108,874
78,149
10,091
88,240
20,634
681,342
701,976

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

LIFE CHURCH HOOK

BALANCE SHEET

AS AT 31 MAY 2022

Notes
Fixed assets
Tangible assets
13
Current assets
Debtors
14
Cash at bank and in hand
Creditors: amounts falling due within
one year
16
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after
more than one year
17
Net assets
Income funds
Restricted funds
19
Unrestricted funds
2022
£
£
938,641
8,806
30,546
39,352
(16,414)
22,938
961,579
(254,001)
707,578
448,274
259,304
707,578
2021
£
£
934,321
13,480
41,282
54,762
(19,605)
35,157
969,478
(267,502)
701,976
446,919
255,057
701,976

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 May 2022.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Trustees on .........................

.............................. .............................. David Hill Thomas Colebrooke Trustee Trustee

Company registration number 08407295

LIFE CHURCH HOOK

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2022

1 Accounting policies

Charity information

Life Church Hook is a private company limited by guarantee incorporated in England and Wales. The registered office is Life Church Centre, Elms Road, Hook, Hampshire, RG27 9DX.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's constitution, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.

The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.4 Incoming resources

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

1.5 Resources expended

Expenditure is charged in the accounts at the time when a liability to make payment is incurred.

LIFE CHURCH HOOK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2022

1 Accounting policies

(Continued)

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Land and buildings Plant and machinery 25% p.a. on net value

No depreciation is provided in respect of freehold land. Freehold buildings are not depreciated because the trustees consider that the market value of the buildings is not less than their cost.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.7 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.8 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

LIFE CHURCH HOOK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2022

1 Accounting policies

(Continued)

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.10 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3 Donations and legacies

Unrestricted
Restricted
funds
funds
2022
2022
£
£
Donations and gifts
94,102
6,116
Grant income
951
250
95,053
6,366
Total
Unrestricted
Restricted
funds
funds
2022
2021
2021
£
£
£
100,218
102,271
5,743
1,201
-
320
101,419
102,271
6,063
Total
2021
£
108,014
320
108,334

LIFE CHURCH HOOK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MAY 2022

4 Lettings income

Unrestricted Unrestricted
funds funds
2022 2021
£ £
Letting and licensing arrangements 2,621 394
Investments
Unrestricted Unrestricted
funds funds
2022 2021
£ £
Interest receivable 4 15
Other income
Unrestricted Restricted Total Restricted
funds funds funds
2022 2022 2022 2021
£ £ £ £
Youth activities income - 829 829 131
Other activities income 3,757 789 4,546 -
3,757 1,618 5,375 131

5 Investments

6 Other income

LIFE CHURCH HOOK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MAY 2022

7 Charitable activities

Church Church
activities activities
2022 2021
£ £
Staff costs 40,031 39,226
Church activities 22,503 13,356
62,534 52,582
Grant funding of activities (see note 8) 10,563 11,309
Share of support costs (see note 9) 20,376 13,537
Share of governance costs (see note 9) 721 721
94,194 78,149
Analysis by fund
Unrestricted funds 87,565 72,209
Restricted funds 6,629 5,940
94,194 78,149
For the year ended 31 May 2021
Unrestricted funds 72,209
Restricted funds 5,940
78,149

8 Grants payable

Church Church
activities activities
2022 2021
£ £
Grants to institutions:
Other 8,944 10,870
Grants to individuals 1,619 439
10,563 11,309

LIFE CHURCH HOOK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MAY 2022

9 Support costs

Support costs
Support
costs
Governance
costs
£
£
Depreciation
3,417
-
Premises and equipment
costs
12,555
-
Administrative expenses
4,404
-
Accountancy
-
708
Other governance costs
-
13
20,376
721
Analysed between
Charitable activities
20,376
721
2022
Support
costs
Governance
costs
£
£
£
3,417
2,187
-
12,555
6,944
-
4,404
4,406
-
708
-
708
13
-
13
21,097
13,537
721
21,097
13,537
721
2021
£
2,187
6,944
4,406
708
13
14,258
14,258

Governance costs includes payments to the independent examiner of £708 (2021: £708) for independent examination and accountancy fees.

10 Trustees

None of the trustees (or any persons connected with them) received any remuneration or reimbursement of expenses during the period.

11 Employees

The average monthly number of employees during the year was:

2022 2021
Number Number
Church activities 1 1
Administration 1 1
Total 2 2
Employment costs 2022 2021
£ £
Wages and salaries 36,991 36,439
Other pension costs 3,040 2,787
40,031 39,226

There were no employees whose annual remuneration was more than £60,000.

LIFE CHURCH HOOK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MAY 2022

12 Other Expenses

Financing costs
13
Tangible fixed assets
Cost
At 1 June 2021
Additions
Disposals
At 31 May 2022
Depreciation and impairment
At 1 June 2021
Depreciation charged in the year
Eliminated in respect of disposals
At 31 May 2022
Carrying amount
At 31 May 2022
At 31 May 2021
14
Debtors
Amounts falling due within one year:
Other debtors
Prepayments and accrued income
Unrestricted
Unrestricted
funds
funds
2022
2021
9,623
10,091
9,623
10,091
Land and
buildings
Equipment
Total
£
£
£
928,387
24,549
952,936
-
7,737
7,737
-
(2,100)
(2,100)
928,387
30,186
958,573
-
18,615
18,615
-
3,417
3,417
-
(2,100)
(2,100)
-
19,932
19,932
928,387
10,254
938,641
928,387
5,934
934,321
2022
2021
£
£
7,114
7,084
1,692
6,396
8,806
13,480

LIFE CHURCH HOOK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MAY 2022

15 Loans and overdrafts

Bank overdrafts
Bank loans
Payable within one year
Payable after one year
2022
£
-
267,516
267,516
13,515
254,001
2021
£
2,304
281,139
283,443
15,941
267,502

The loan is secured by a fixed charge over the Life Church Centre building.

The loan is for a period of 21 years with interest payable at 2.5% above base-rate with a minimum rate of 3.5%. 16 Creditors: amounts falling due within one year

Notes
Bank loans and overdrafts
15
Deferred income
18
Accruals and deferred income
17
Creditors: amounts falling due after more than one year
Notes
Bank loans
15
18
Deferred income
Other deferred income
Deferred income is included in the financial statements as follows:
Deferred income is included within:
Current liabilities
Movements in the year:
2022
£
13,515
-
2,899
16,414
2022
£
254,001
2022
£
-
2022
£
-
2021
£
15,941
2,856
808
19,605
2021
£
267,502
2021
£
2,856
2021
£
2,856

LIFE CHURCH HOOK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MAY 2022

18 Deferred income (Continued)
Deferred income at 1 June 2021 2,856 3,014
Released from previous periods (2,856) (158)
Deferred income at 31 May 2022 - 2,856

LIFE CHURCH HOOK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2022

19 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Balance at
1 June 2020
r
£
Building Fund
441,723
J5 Fund
4,861
Little Seeds Fund
81
Other restricted funds
742
447,407
Movement in funds
Incoming
esources
Resources
expended

£
£
-
-
6,062
(5,939)
131
-
-
-
6,193
(5,939)
Movement in funds
Transfers
Balance at
1 June 2021
Incoming
resources
Resources
expended
Balance at
31 May 2022
£
£
£
£
£
-
441,723
-
-
441,723
-
4,984
6,316
(5,038)
6,262
-
212
628
(551)
289
(742)
-
1,039
(1,039)
-
(742)
446,919
7,983
(6,628)
448,274
Movement in funds
Transfers
Balance at
1 June 2021
Incoming
resources
Resources
expended
Balance at
31 May 2022
£
£
£
£
£
-
441,723
-
-
441,723
-
4,984
6,316
(5,038)
6,262
-
212
628
(551)
289
(742)
-
1,039
(1,039)
-
(742)
446,919
7,983
(6,628)
448,274
448,274

LIFE CHURCH HOOK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MAY 2022

20 Analysis of net assets between funds Analysis of net assets between funds
Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds
2022 2022 2022 2021 2021 2021
£ £ £ £ £ £
Fund balances at 31
May 2022 are
represented by:
Tangible assets 496,594 442,047 938,641 492,238 442,083 934,321
Current assets/(liabilities) 16,711 6,227 22,938 30,321 4,836 35,157
Long term liabilities (254,001) - (254,001) (267,502) - (267,502)
259,304 448,274 707,578 255,057 446,919 701,976

21 Related party transactions

There were no disclosable related party transactions during the year (2021 - none).