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2020-08-31-accounts

Charity number: 1160962

LIFESPRING

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

LIFESPRING

CONTENTS

Page
Reference and administrative details of the charity, its Trustees and advisers 1
Trustees' report 2 - 9
Independent auditors' report on the financial statements 10 - 12
Statement of financial activities 13
Balance sheet 14
Notes to the financial statements 15 - 28

LIFESPRING

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2020

Trustees

Mr Philip Brewer Mr Keith Brooks Mr Jonathan Brydon Mrs Joanna McCulloch (resigned 5 October 2020) Mr Sean Potter (resigned 24 November 2020) Mr Andrew Robinson Michaela Sargeant Mr Matthew Straughton

Charity registered number

1160962

Principal office

Jubilee House Worthing Road Southwater West Sussex RH13 9JB

Independent auditors

Baldwin Scofield Ltd Chartered Accountants Statutory auditors 3 Newhouse Business Centre Old Crawley Road Horsham West Sussex RH12 4RU

Bankers

HSBC Plc 6 West Street Horsham West Sussex RH12 1PE

Scottish Widows Bank 67 Morrison Street Edinburgh EH3 8YJ

Solicitors

Anthony Collins Solicitors LLP 134 Edmund Street Birmingham B3 2ES

Page 1

LIFESPRING

TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2020

The Trustees present their annual report together with the audited financial statements of the charity for the 1 September 2019 to 31 August 2020.

Objectives and activities

Policies and objectives

Objects

The Object of the CIO is, for the public benefit, the advancement of the Christian faith in accordance with the Statement of Faith in Horsham, West Sussex and in such other parts of the United Kingdom and the world as the charity trustees may from time to time decide.

In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.

Strategies for achieving objectives

Our Vision

‘Love God, Love People, Love Horsham’ is the updated vision statement for Lifespring launched in January 2019 to reflect that we are a community of people from every walk of life who are shaped by the love and presence of God. Our passion is to see every individual, whatever their age or social standing, knowing their individual identity, living to their full potential and expressing the love, joy and power of God’s kingdom wherever they are.

How our vision delivers value to the public

The Trustees have considered the Charity Commission’s guidance on providing public benefit. For us, the Christian faith is not just about words, but also about action. So, our faith needs an outward expression – most notably in loving other people and caring holistically for their well-being, reflecting a God who loves wholly and unconditionally. The services we provide are of benefit to those who access them, regardless of whether they go on to become Christians themselves. We believe that providing such services are of benefit to the individual and to society.

Page 2

LIFESPRING

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

Objectives and activities (continued)

Activities for achieving objectives

Worship and Teaching

Worshipping God is an integral part of Christianity and a focal point to corporate gatherings. We are passionate about educating our members and visitors in theology and the practical outworking of the Christian faith.

Evangelism

We believe that the gospel of Jesus Christ is good news for our friends, family, neighbours, community, country and our world. As evangelical Christians, we are passionate about sharing that with everyone in an unpressured way. We are keen to see others come into relationship with Christ and so our evangelism plays an integral part in church life.

Pastoral Care

We believe that, as a church family, we are called to live life together, actively promoting each other's well-being and spiritual growth. So, we encourage our members to meet regularly in each other's homes. We know too that Christianity is a continual journey and try to address the life controlling pastoral needs of those in our church community through activities and courses.

As a multi-generational church, we want to ensure that every member or guest – no matter their age or family make-up – is valued and encouraged to grow in their Christian faith. So, we hold a number of events and activities, including:

Lifespring also offer the following activities and courses that are available to members and the local community as required:

Staff and Volunteers

Staff appointments are agreed by the Trustees in consultation with the spiritual leadership of Lifespring. Without a dedicated team of volunteers, we would not be able to meet our objectives so we are dependent on members of the church who give selflessly of their time in our various activities throughout the week.

Page 3

LIFESPRING

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

Achievements and performance

Main achievements of the charity

We have six core values at Lifespring, which help us live out what we believe and become what we're created to be.

Each one is rooted in Jesus' teachings. He said he came to bring us life in all its fullness, whether that's in how we relate to one another, how we use our time and money or what we give our lives to pursuing. These values are: -

Key performance indicators

The Elders have established a series of performance indicators to monitor performance ensuring that we are fulfilling our strategies in line with our vision, core values and public benefit. We also undergo periodic review by peer apostolic and prophetic ministries and our relationships reflect this.

There is a regular review of how the church is fulfilling its charitable objectives. The statistics recorded serve to determine the impact of an activity, particularly in delivering public benefit and as a reflection of our core values. The review is centred around how well the church’s activities emphasise our core values and this is also the basis on which the continuance of an activity comes into discussion.

Page 4

LIFESPRING

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

Achievements and performance (continued)

Review of activities

We are confident that each of the activities described below are of particular benefit and match well against our core values of Authentic Followers, Generosity, Kingdom Advance, Mission, Family and Encounter and our overall vision to Love God, Love People, Love Horsham.

For this financial year our activities in the second half have been severely restricted by the Coronavirus pandemic restrictions.

Sunday services

In the pre-Covid period the church continued to meet together weekly on Sundays for worship and teaching. These services taking place at the Capitol Theatre and open to the public. The attendance of Sunday services held at the Capitol Theatre was a monthly average of 198 (12 month rolling average in the previous year was 208). At these services there was an encouragement from the platform to join Sunday evening prayer meetings, sign up to small groups and engage with other areas of church life. There was a ministry team available to pray with people in response to the content of the service or other matters.

With the Covid national lockdown and restrictions on public gatherings, the trustees approved additional unplanned expenditure to enable our services to be ‘live streamed’ from our premises in Southwater across a number of media platforms. This transition has been particularly successful with access through You Tube, Facebook and our website. The approximate average real time participation has been estimated to be 80 live views/connections but the content remains available online with many of the overall views exceeding 200. At the end of the financial year Lifespring hosted the Christ Central international conference through its streaming capability. This event was accessed by 275 churches across 25 nations reaching thousands of people.

Currently a total of 157 people (age 16+) are considered members of the Lifespring family (previous year end was 161).

Evangelism

Lifespring aims to share the Christian faith through our services, personal friendships, courses, being involved with the community and various events. Examples, where permitted, of this are:-

o Youth activities (our youth meet regularly on a Friday evening as well as have their own regular Sunday service and enjoy a trip to an annual camp. Average 28 attend Fridays and average 23 attend Sundays)

o Supply of various courses as the need arises (eg. parenting children, parenting teenagers, recovering from addiction, marriage guidance, recovering from divorce/separation). The range of activities/courses facilitated is based on community need and do not necessarily all take place in one year

In most cases these activities were suspended during the second half of the year due to Covid restrictions.

Community involvement

Lifespring has a commitment to practically serve the wider community locally, nationally and globally. There are a number of ways this is outworked:-

o Financial contributions/gifts are made to community programmes such as Oasis crisis pregnancy, Streetlight human trafficking (total £4,390 p/a plus additional general hardship fund for specific situations) o Lifespring provides programmes under the CAP organisation providing debt advice, help with finding employment through a Job Club, help with addiction and learning basic life skills (The job club is proving popular as the effects of the covid recession begin to be seen)

o Lifespring Pantry - a food bank style setup which uses donations of food/drink items to create hampers for people in need (There has been a significant increase due to the Covid crisis)

Page 5

LIFESPRING

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

Achievements and performance (continued)

o A fund is available to provide extra help with paying for utilities and food o Each year a group of volunteers give their time to work with Horsham Churches Together to provide shelter for the homeless over the Christmas period and colder months

o Christmas shoe boxes for children/families in Romania (380 in 2019, 450 in 2018)

o Building relationship with Dayspring Church in Kitwe, Zambia and responding to general and specific needs as part of our support in that relationship, resourcing teams of people from Lifespring to travel to Zambia on a regular basis. Part of this most notably has included raising funds to build a new nursery and school. During the covid crisis we funded the connection of the school to the internet allowing them to be one of the few schools in Zambia capable of providing online learning.

Fundraising activities and income generation

The church raises its funds from members of the church. Income is also derived from the activities of the church attended by members. While all are welcome to the activities of the church it does not raise funds from the general public, As a result the charity does not actively fundraise or engage anyone in that capacity and so does not need to comply with policies aimed at protecting vulnerable members of the public.

Factors relevant to achieve objectives

Restrictions imposed in response to the Covid 19 pandemic have limited the scope of our activities. There is also a dependency upon sufficient financial resources and volunteers.

Investment policy and performance

No investments held.

Financial review

Going concern

After making appropriate enquires, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. As reported below under "Future developments in the light of the Coronavirus pandemic" the Trustees have paid particular attention to its impact in reaching this conclusion. For this reason, they continue to adopt the going concern basis in preparing the financial statements.

Reserves policy

The Trustees consider it prudent to have general cash reserves equivalent to 13 weeks expenditure as an objective. At the balance sheet date, general cash reserves stood at the equivalent of 14 weeks expenditure.

The Trustees have set a more modest budget for 2020/21 recognising the impact of Covid upon activities which places some reliance upon reserves. This budget will be flexed during the year with the expectation that the 13 week cash reserve threshold is not breached. The Trustees are confident that the level of donations and other income will continue to support the activities of the charity.

Page 6

LIFESPRING

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

Principal risks and uncertainties

The Trustees have developed a “risk map” to assess and manage risk which is reviewed periodically, and where appropriate policies and guidance are published. In addition, risk assessments are conducted on a rotational basis on all key areas and activities by a Risk Management Committee constituted to support the trustees in the management of risk. The Trustees are satisfied that appropriate systems are in place to manage, monitor and mitigate the church’s exposure to major risks.

As a result of the Covid pandemic additional risk assessments have been undertaken and specific policy guidance developed to mitigate this additional risk.

In addition, Safeguarding or other incidents are reported to the trustees and appropriate referral made where necessary. For this financial year there were no incidents requiring escalation to the Charity Commissioners.

Asset management

The CIO purchased Jubilee House in 2015 with the intention of increasing the range of community services provided as well as for our administrative centre supporting our 7 staff and additional volunteers. In addition, we rented the Capitol theatre for our public services on a Sunday morning in the first half of the year. Our rented and owned premises are adequate for our needs however significant growth will require larger or additional premises over the medium term.

Financial review and results

During this financial year 95% (2019: 93%) of income came from voluntary donations and associated income tax recovery under the “gift aid” scheme. The remaining 5% of income came from other activities. The principal areas of expenditure were staff costs; premises costs and support for church-based activities in the Horsham area and nationally. In addition, 10% of income has been given away to external individuals, organisations with complementary objectives and other charities. The net profit/(loss) for 2019/20 was £(88,121) (2019: £28,966).

At the balance sheet date the general reserve stood at £231k (2019: £306k).

Structure, governance and management

Constitution

Lifespring is a registered charity, number 1160962, and is constituted under a CIO constitution.

The principal object of the charity is to advance the Christian faith in accordance with the Statement of Faith in Horsham, West Sussex and in such other parts of the United Kingdom and the world as the charity trustees may from time to time think fit.

Methods of appointment or election of Trustees

Trustees are appointed for a term of three years by a resolution passed at a properly convened meeting of the charity trustees.

In selecting individuals for appointment as charity trustees, the charity trustees must have regard to the skills, knowledge and experience needed for the effective administration of the CIO.

All charity trustees must subscribe and adhere to, in belief and lifestyle, the Statement of Faith.

Page 7

LIFESPRING

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

Structure, governance and management (continued)

Organisational structure and decision-making policies

The spiritual government and leadership of the Church for the purposes of which the CIO has been established shall remain with the Spiritual Leadership and to the extent to which the charity trustees are not synonymous with the Spiritual Leadership their powers shall be confined to the proper management and administration of the CIO in accordance with the provisions of this Constitution and in furtherance of the Objects and in so doing they shall have full and proper regard to the Spiritual Leadership provided always that they shall not act outside their powers as conferred by this Constitution and by general law.

The Agenda for each Trustee meeting includes a Governance item drawing attention to relevant items from the Charity Commission’s website, including the wider lessons from Inquiry Reports. These are included to help train, develop and maintain the competence of the Trustees and deliver good governance of the CIO.

Policies adopted for the induction and training of Trustees

The charity trustees will make available to each new charity trustee, on or before his or her first appointment:

Pay policy for key management personnel

.Employment terms and conditions, including remuneration, are considered by a sub-committee of trustees that makes recommendation to the wider trustee for decision which excludes any staff members who are trustees thereby avoiding any conflict of interest. Compensation levels are assessed annually and benchmarked externally from time to time against comparable job roles requiring similar skills and experience.

Related party relationships

We are part of the Newfrontiers family of churches. Underneath the Newfrontiers umbrella, we are a part of ChristCentral, a group of churches connected together through relationship, served by a number of apostolic teams, who aim to equip churches to raise pioneering disciples that see God’s kingdom fill the earth.

Financial risk management

The Trustees have assessed the major risks to which the charity is exposed, in particular those related to the operations and finances of the charity, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks.

Plans for future periods

IIn the opinion of the Trustees the CIO has had a successful year in challenging circumstances brought about by the Covid pandemic. Future plans will need to be considered in the light of government guidance and restrictions.

Members' liability

The Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up.

Page 8

LIFESPRING

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

Statement of Trustees' responsibilities

The Trustees 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).

The law applicable to charities in England & Wales requires the Trustees to prepare financial statements for each financial which give a true and fair view of the state of affairs of the charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and 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 Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the . 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.

Disclosure of information to auditors

Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:

Auditors

The auditors, Baldwin Scofield Ltd, have indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees.

Approved by order of the members of the board of Trustees on 3 June 2021 and signed on their behalf by:

Mr Philip Brewer

Page 9

LIFESPRING

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LIFESPRING

Opinion

We have audited the financial statements of Lifespring (the 'charity') for the year ended 31 August 2020 which comprise the Statement of financial activities, the Balance sheet, the Statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

The financial statements have been prepared in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has been withdrawn.

This has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

Page 10

LIFESPRING

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LIFESPRING (CONTINUED)

Other information

The Trustees are responsible for the other information. The other information comprises the information included in the Annual report, other than the financial statements and our Auditors' report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Trustees' responsibilities statement, the Trustees are responsible for the preparation of the financial statements and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Page 11

LIFESPRING

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LIFESPRING (CONTINUED)

Auditors' responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.

Use of our report

This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and its trustees, as a body, for our audit work, for this report, or for the opinions we have formed.

Baldwin Scofield Ltd

Chartered Accountants Statutory auditors 3 Newhouse Business Centre Old Crawley Road Horsham West Sussex RH12 4RU 3 June 2021

Baldwin Scofield Ltd are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.

Page 12

LIFESPRING

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2020

Note
Income from:
Donations and legacies
3
Charitable activities
4
Investments
5
Total income
Expenditure on:
Charitable activities
7
Total expenditure
Net (expenditure)/income
Transfers between funds
16
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2020
£
408,582
19,678
237
428,497
486,300
486,300
(57,803)
(11,667)
(69,470)
300,686
(69,470)
231,216		 Restricted
funds
2020
£
87,634
100
57
87,791
118,109
118,109
(30,318)
11,667
(18,651)
836,521
(18,651)
817,870		 Total
funds
2020
£
496,216
19,778
294
516,288
604,409
604,409
(88,121)
-
(88,121)
1,137,207
(88,121)
1,049,086		 Total
funds
2019
£
570,032
129,990
604
700,626
671,660
671,660
28,966
-
28,966
1,108,241
28,966
1,137,207

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

The notes on pages 15 to 28 form part of these financial statements.

Page 13

LIFESPRING

BALANCE SHEET AS AT 31 AUGUST 2020

Note
Fixed assets
Tangible assets
12
Current assets
Debtors
13
Cash at bank and in hand
Creditors: amounts falling due within one
year
14
Net current assets
Total net assets
Charity funds
Restricted funds
16
Unrestricted funds
16
Total funds		 44,360
144,277
188,637
(10,363)		 2020
£
870,812
178,274
1,049,086
817,870
231,216
1,049,086		 47,636
250,296
297,932
(29,112)		 2019
£
868,387
268,820
1,137,207
836,521
300,686
1,137,207

The financial statements were approved and authorised for issue by the Trustees on 03 June 2021 and signed on their behalf by:

Mr Philip Brewer

The notes on pages 15 to 28 form part of these financial statements.

Page 14

LIFESPRING

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

1. General information

Lifespring is a Charitable Incorporated Organisation registered with the Charity Commission in England & Wales. The charity's registered number and registered office address can be found on the Reference and Administrative details page.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - 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 2015), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

The financial statements have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair' view. This departure has involved following the Charities SORP (FRS 102) published on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

Lifespring meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

2.2 Income

All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.

2.3 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the charity's objectives, as well as any associated support costs.

Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.

Page 15

LIFESPRING

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

2. Accounting policies (continued)

2.3 Expenditure (continued)

All expenditure is inclusive of irrecoverable VAT.

2.4 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

2.5 Tangible fixed assets and depreciation

Tangible fixed assets costing £1,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following bases:

2.6 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

2.7 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

2.8 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of financial activities as a finance cost.

Page 16

LIFESPRING

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

2. Accounting policies (continued)

2.9 Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

2.10 Pensions

The charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the charity to the fund in respect of the year.

2.11 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 and which have not been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund.

3. Income from donations and legacies

Unrestricted
funds
2020
£
Donations
408,582
Unrestricted
funds
2019
£
Donations
543,894		 Restricted
funds
2020
£
87,634
Restricted
funds
2019
£
26,138		 Total
funds
2020
£
496,216
Total
funds
2019
£
570,032

Page 17

LIFESPRING

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

4. Income from charitable activities

Unrestricted
funds
2020
£
Specific gifts and fee income
19,678
Unrestricted
funds
2019
£
Specific gifts and fee income
29,042		 Restricted
funds
2020
£
100
Restricted
funds
2019
£
100,948		 Total
funds
2020
£
19,778
Total
funds
2019
£
129,990

5. Investment income

Unrestricted
funds
2020
£
Investment income
237
Unrestricted
funds
2019
£
Investment income - local cash
453		 Restricted
funds
2020
£
57
Restricted
funds
2019
£
151		 Total
funds
2020
£
294
Total
funds
2019
£
604

6. Analysis of grants

Grants to Zambia school project
Grants made from gift day donations		 Grants to
Institutions
2020
£
21,124
64,612
85,736		 Total
funds
2020
£
21,124
64,612
85,736

Page 18

LIFESPRING

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

6. Analysis of grants (continued)

Grants to Total
Institutions funds
2019 2019
£ £
Grants to Zambia school project 119,955 119,955

7. Analysis of expenditure on charitable activities

Summary by fund type

Unrestricted
funds
2020
£
Costs of charitable activities
486,300
Grants
-
486,300
Unrestricted
funds
2019
£
Costs of charitable activities
521,934		 Restricted
funds
2020
£
53,497
64,612
118,109
Restricted
funds
2019
£
149,726		 Total
funds
2020
£
539,797
64,612
604,409
Total
funds
2019
£
671,660

8. Analysis of expenditure by activities

Charitable activities
Grants		 Activities
undertaken
directly
2020
£
408,500
-
408,500		 Grant
funding of
activities
2020
£
21,124
64,612
85,736		 Support
costs
2020
£
110,173
-
110,173		 Total
funds
2020
£
539,797
64,612
604,409

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LIFESPRING

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

8. Analysis of expenditure by activities (continued)

Activities Grant
undertaken funding of Support Total
directly activities costs funds
2019 2019 2019 2019
£ £ £ £
Charitable activities 455,684 119,955 96,021 671,660

Analysis of direct costs

Staff costs
Ministry within Lifespring
UK ministry outside Lifespring
Hire of premises
Youth expenses
Staff costs
Conference expenses
Ministry within Lifespring
UK ministry outside Lifespring
Hire of premises
Youth expenses
Lifespring project costs		 Church
activities
2020
£
267,637
14,322
65,186
51,958
9,397
408,500
Church
activities
2019
£
263,270
3,731
15,721
72,638
71,968
14,669
13,687
455,684		 Total
funds
2020
£
267,637
14,322
65,186
51,958
9,397
408,500
Total
funds
2019
£
263,270
3,731
15,721
72,638
71,968
14,669
13,687
455,684

Page 20

LIFESPRING

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

8. Analysis of expenditure by activities (continued)

Analysis of support costs

Building running costs
Insurance
Bank charges
Office costs
Governance costs
Building running costs
Insurance
Bank charges
Office costs
Governance costs		 Support
activities
2020
£
30,190
5,603
966
37,928
35,486
110,173
Support
activities
2019
£
28,597
3,077
519
27,593
36,235
96,021		 Total
funds
2020
£
30,190
5,603
966
37,928
35,486
110,173
Total
funds
2019
£
28,597
3,077
519
27,593
36,235
96,021

9. Auditors' remuneration

The auditors' remuneration amounts to an auditor fee of £4,000 ( 2019 - £4,040 ).

10. Staff costs

Wages and salaries
Social security costs
Contribution to defined contribution pension schemes		 2020
£
236,344
16,683
14,610
267,637		 2019
£
230,968
18,897
13,405
263,270

Page 21

LIFESPRING

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

10. Staff costs (continued)

The average number of persons employed by the charity during the year was as follows:

2020 2019
No. No.
Elders and administration 7 8

No employee received remuneration amounting to more than £60,000 in either year.

11. Trustees' remuneration and expenses

During the year, one or more Trustees or their spouses has been paid remuneration or has received other benefits from an employment with the charity. The value of Trustees' remuneration and other benefits was as follows:

2020 2019
£ £
Mr Andrew Robinson Remuneration 48,932 48,449
Pension contributions paid 3,915 3,263
Remuneration for Mrs Tanya
Mr Jonathan Brydon Brydon 22,470 23,522
Pension contributions paid 1,798 1,072
Michaela Sargeant Remuneration 2,526 2,626

During the year ended 31 August 2020, expenses totalling £ 15,727 were reimbursed or paid directly to 1 Trustee (2019 - £18,473 to 1 Trustee) . These expenses were paid in order for A Robinson to exercise his apostolic ministry and related to ministry trips and conferences and covered the costs of others taking part in those trips.

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LIFESPRING

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

12. Tangible fixed assets

Cost or valuation
At 1 September 2019
Additions
At 31 August 2020
Depreciation
At 1 September 2019
Charge for the year
At 31 August 2020
Net book value
At 31 August 2020
At 31 August 2019		 Freehold
property
£
902,881
22,998
925,879
73,019
18,386
91,405
834,474
829,862		 Office
equipment
£
110,286
9,814
120,100
95,011
7,133
102,144
17,956
15,275		 Computer
equipment
£
48,144
1,099
49,243
24,894
5,967
30,861
18,382
23,250		 Total
£
1,061,311
33,911
1,095,222
192,924
31,486
224,410
870,812
868,387

13. Debtors

Due within one year
Trade debtors
Other debtors
Prepayments and accrued income		 2020
£
-
44,360
-
44,360		 2019
£
800
43,709
3,127
47,636

Page 23

LIFESPRING

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

14. Creditors: Amounts falling due within one year

Trade creditors
Other taxation and social security
Pension contributions payable
Other creditors
Accruals and deferred income		 2020
£
-
4,014
1,385
484
4,480
10,363		 2019
£
10,123
5,159
1,116
2,242
10,472
29,112

15. Financial instruments

2020 2019
£ £
Financial assets
Financial assets measured at fair value through income and expenditure 144,277 250,296

Financial assets measured at fair value through income and expenditure comprise bank balances.

Page 24

LIFESPRING

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

16. Statement of funds

have been raised by the charity for particular purposes. The purposes to which restricted funds are used are as fol

Building fund

The church specifically raised funds for the purchase of the building and continues to receive funds for the g running of the premises.

Zambia school fund

in that school.

Specific gifts fund

The church holds from time to time gift days which raise funds for specific gifts and projects that the church wis support within and outwith the church.

Statement of funds - current year

Unrestricted funds
General fund
Restricted funds
Building fund
Zambia school fund
Specific gifts
Total of funds		 Balance at 1
September
2019
£
300,686
827,123
-
9,398
836,521
1,137,207		 Income
£
428,497
7,437
9,457
70,897
87,791
516,288		 Expenditure
£
(486,300)
(32,373)
(21,124)
(64,612)
(118,109)
(604,409)		 Transfers
in/out
£
(11,667)
-
11,667
-
11,667
-		 Balance at
31 August
2020
£
231,216
802,187
-
15,683
817,870
1,049,086

Page 25

LIFESPRING

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

16. Statement of funds (continued)

Statement of funds - prior year

Unrestricted funds
General fund
Restricted funds
Building fund
Zambia school fund
Specific gifts
Stupini
Total of funds		 Balance at
1 September
2018
£
240,715
837,740
28,405
786
595
867,526
1,108,241		 Income
£
583,313
16,365
100,948
-
-
117,313
700,626		 Expenditure
£
(521,934)
(26,982)
(119,955)
(2,194)
(595)
(149,726)
(671,660)		 Transfers
in/out
£
(1,408)
-
-
1,408
-
1,408
-		 Balance at
31 August
2019
£
300,686
827,123
9,398
-
-
836,521
1,137,207

17. Summary of funds

Summary of funds - current year

General funds
Restricted funds		 Balance at 1
September
2019
£
300,686
836,521
1,137,207		 Income
£
428,497
87,791
516,288		 Expenditure
£
(486,300)
(118,109)
(604,409)		 Transfers
in/out
£
(11,667)
11,667
-		 Balance at
31 August
2020
£
231,216
817,870
1,049,086

Page 26

LIFESPRING

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

17. Summary of funds (continued)

Summary of funds - prior year

General funds
Restricted funds		 Balance at
1 September
2018
£
240,715
867,526
1,108,241		 Income
£
583,313
117,313
700,626		 Expenditure
£
(521,934)
(149,726)
(671,660)		 Transfers
in/out
£
(1,408)
1,408
-		 Balance at
31 August
2019
£
300,686
836,521
1,137,207

18. Analysis of net assets between funds

Analysis of net assets between funds - current period

Unrestricted
funds
2020
£
Tangible fixed assets
68,625
Current assets
172,954
Creditors due within one year
(10,363)
Total
231,216		 Restricted
funds
2020
£
802,187
15,683
-
817,870		 Total
funds
2020
£
870,812
188,637
(10,363)
1,049,086

Analysis of net assets between funds - prior period

Tangible fixed assets
Current assets
Creditors due within one year
Total		 Unrestricted
funds
2019
£
41,264
288,534
(29,112)
300,686		 Restricted
funds
2019
£
827,123
9,398
-
836,521		 Total
funds
2019
£
868,387
297,932
(29,112)
1,137,207

19. Pension commitments

The charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the charity in an independently administered fund. The pension cost charge represents contributions payable by the charity to the fund and amounted to £14,610 (2019 - £13,405) £1,385 (2019 - £1,116) was payable to the fund at the balance sheet date and is included in creditors.

Page 27

LIFESPRING

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

20. Related party transactions

Donations to the charity by all trustees 2020
£
79,615
79,615		 2019
£
77,997
77,997

The donations that have been made by the trustees are freely given donations without any conditions.

Page 28