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2021-08-31-accounts

Charity number: 1160962

LIFESPRING

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2021

LIFESPRING

CONTENTS

Page
Reference and administrative details of the charity, its Trustees and advisers 1 - 2
Trustees' report 3 - 9
Independent auditors' report on the financial statements 10 - 13
Statement of financial activities 14
Balance sheet 15
Statement of cash flows 16
Notes to the financial statements 17 - 31

LIFESPRING

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2021

Trustees

Mr Philip Brewer (resigned 11 October 2021) Mr Keith Brooks (resigned 12 April 2021) Mr Jonathan Brydon Mrs Joanna McCulloch (resigned 5 October 2020) Mr Sean Potter (resigned 24 November 2020) Mr Andrew Robinson (resigned 21 June 2021) Mrs Michaela Sargeant Mr Matthew Straughton, Treasurer Mr Morne De Jager, Chairman (appointed 24 November 2020) Mrs Alexandra Davis (appointed 24 November 2020) Mrs Janine Scott (appointed 11 October 2021)

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

Page 1

LIFESPRING

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Solicitors

Anthony Collins Solicitors LLP 134 Edmund Street Birmingham B3 2ES

Page 2

LIFESPRING

TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2021

The Trustees present their annual report together with the audited financial statements of the charity for the 1 September 2020 to 31 August 2021.

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.

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.

Page 3

LIFESPRING

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Objectives and activities (continued)

Activities for achieving objectives (continued)

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.

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 2021

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 have been severely restricted by the Coronavirus pandemic restrictions.

Sunday services

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 an average of over 250 views per service. 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 152 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 Kids Connect (mother and toddlers group meeting Monday mornings term-time) – closed during lockdown. 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 15 attend Fridays, with similar numbers attending Sundays) This was all on zoom for this financial year.

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. An early year community was established and run monthly to support families with young ones.

In most cases these activities were suspended during this 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 £7,200 p/a plus additional general hardship fund for specific situations) o Lifespring provides programmes under the CAP organisation providing debt advice, this service has continued throughout lock down with remote sessions. The remaining services, with reference to the Job Club and Life skills was closed.

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)

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 (300 virtual (financial contributions) in 2020, 380 in 2019, 450 in 2018)

o Building relationship with Dayspring Church in Kitwe, Zambia and responding to general and specific

Page 5

LIFESPRING

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Achievements and performance (continued)

needs as part of our support in that relationship. Most notably this has included raising funds to in sponsorship of 25 children providing for their meals, equipment, uniforms and education. 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 24.5 weeks (2020: 14 weeks) expenditure.

The Trustees have set a more realistic budget for 2021/22, recognising COVID restrictions relaxing and normal charitable activities opening up again, therefore releasing some of the excess reserves over and above the 13 weeks expenditure. 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 2021

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 6 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 99% (2020: 95%) of income came from voluntary donations and associated income tax recovery under the “gift aid” scheme. The remaining 1% 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, 17% (2020: 17.6%) of income has been given away to external individuals, organisations with complementary objectives and other charities. The net profit/(loss) for 2020/21 was £13,212 (2020: £(88,121)).

At the balance sheet date the general reserve stood at £268k (2020: £231k).

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 2021

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 2021

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 29 June 2022 and signed on their behalf by:

Mr Morne De Jager

(Chair of Trustees)

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 2021 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

In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

Page 10

LIFESPRING

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

Other information

The other information comprises the information included in the Annual report other than the financial statements and our Auditors' report thereon. The Trustees are responsible for the other information contained within the Annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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 145 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We obtained an understanding of the legal and regulatory frameworks that are applicable to the charity and determined that the most significant are those that relate to the reporting framework in conformity with the requirements of the Charities Act 2011 and the relevant direct and indirect tax compliance regulations in the United Kingdom.

We understood how the charity is complying with those frameworks by making enquiries of management to understand how the charity maintains and communicates its policies and procedures in these areas and corroborated this by reviewing supporting documentation and minutes of meetings of those charged with governance.

We assessed the susceptibility of the charity’s financial statements to material misstatement, including how fraud might occur by considering the risk of management override to be a fraud risk. In addition, we considered the risk of management override by sampling from the entire population of journals, identifying specific transactions which did not meet our expectations based on specific criteria and investigated these to gain an understanding and then agree back to source documentation.

Based on this understanding we designed our audit procedures to identify noncompliance with such laws and regulations. Our procedures involved verifying that material transactions were recorded in compliance with Financial Reporting Standards in conformity with the requirements of the Charities Act 2011.

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.

Page 12

LIFESPRING

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

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 29 June 2022

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

Page 13

LIFESPRING

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2021

Note
Income from:
Donations and legacies
3
Charitable activities
4
Investments
5
Total income
Expenditure on:
Charitable activities
7
Total expenditure
Net income/(expenditure)
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
2021
£
391,867
3,771
14
395,652
355,965
355,965
39,687
(3,189)
36,498
231,216
36,498
267,714		 Restricted
funds
2021
£
27,416
120
1
27,537
54,012
54,012
(26,475)
3,189
(23,286)
817,870
(23,286)
794,584		 Total
funds
2021
£
419,283
3,891
15
423,189
409,977
409,977
13,212
-
13,212
1,049,086
13,212
1,062,298		 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

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

The notes on pages 17 to 31 form part of these financial statements.

Page 14

LIFESPRING

BALANCE SHEET AS AT 31 AUGUST 2021

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		 17,758
211,652
229,410
(19,140)		 2021
£
852,028
210,270
1,062,298
794,584
267,714
1,062,298		 44,360
144,277
188,637
(10,364)		 2020
£
870,813
178,273
1,049,086
817,870
231,216
1,049,086

The financial statements were approved and authorised for issue by the Trustees on 29 June 2022 and signed on their behalf by:

Mr Matthew Straughton

The notes on pages 17 to 31 form part of these financial statements.

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LIFESPRING

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2021

Cash flows from operating activities
Net cash used in operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Net cash used in investing activities
Cash flows from financing activities
Net cash provided by financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
The notes on pages 17 to 31 form part of these financial statements		 2021
£
78,303
(10,928)
(10,928)
-
67,375
144,277
211,652		 2020
£
(72,108)
(33,911)
(33,911)
-
(106,019)
250,296
144,277

Page 16

LIFESPRING

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

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.

Grants are included in the Statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

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.

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LIFESPRING

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

2. Accounting policies (continued)

2.3 Expenditure (continued)

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.

All expenditure is inclusive of irrecoverable VAT.

2.4 Government grants

Government grants relating to tangible fixed assets are treated as deferred income and released to the Statement of financial activities over the expected useful lives of the assets concerned. Other grants are credited to the Statement of financial activities as the related expenditure is incurred.

2.5 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.

2.6 Tangible fixed assets and depreciation

Tangible fixed assets costing £2,000 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:

2.7 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.

2.8 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.

Page 18

LIFESPRING

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

2. Accounting policies (continued)

2.9 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.

2.10 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.

2.11 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.

2.12 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
2021
£
Donations
387,523
Government grants
4,344
391,867		 Restricted
funds
2021
£
27,416
-
27,416		 Total
funds
2021
£
414,939
4,344
419,283

Page 19

LIFESPRING

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

3. Income from donations and legacies (continued)

Unrestricted Restricted Total
funds funds funds
2020 2020 2020
£ £ £
Donations 402,942 93,274 496,216

4. Income from charitable activities

Unrestricted
funds
2021
£
Specific gifts and fee income
3,771
Unrestricted
funds
2020
£
Specific gifts and fee income
19,678		 Restricted
funds
2021
£
120
Restricted
funds
2020
£
100		 Total
funds
2021
£
3,891
Total
funds
2020
£
19,778

5. Investment income

Unrestricted
funds
2021
£
Investment income
14
Unrestricted
funds
2020
£
Investment income
237		 Restricted
funds
2021
£
1
Restricted
funds
2020
£
57		 Total
funds
2021
£
15
Total
funds
2020
£
294

Page 20

LIFESPRING

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

6. Analysis of grants

Grants to Zambia school and feeding project
Grants to Zambia school and feeding project
Grants made from gift day donations		 Grants to
Institutions
2021
£
26,713
Grants to
Institutions
2020
£
26,299
64,612
90,911		 Total
funds
2021
£
26,713
Total
funds
2020
£
26,299
64,612
90,911

7. Analysis of expenditure on charitable activities Summary by fund type

Unrestricted
funds
2021
£
Costs of charitable activities
355,965
Unrestricted
funds
2020
£
Costs of charitable activities
481,125
Grants made from gift day donations
-
481,125		 Restricted
funds
2021
£
54,012
Restricted
funds
2020
£
58,672
64,612
123,284		 Total
funds
2021
£
409,977
Total
funds
2020
£
539,797
64,612
604,409

Page 21

LIFESPRING

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

8. Analysis of expenditure by activities

Charitable activities
Charitable activities
Grants		 Activities
undertaken
directly
2021
£
289,609
Activities
undertaken
directly
2020
£
403,325
-
403,325		 Grant
funding of
activities
2021
£
26,713
Grant
funding of
activities
2020
£
26,299
64,612
90,911		 Support
costs
2021
£
93,655
Support
costs
2020
£
110,173
-
110,173		 Total
funds
2021
£
409,977
Total
funds
2020
£
539,797
64,612
604,409

Analysis of direct costs

Staff costs
Ministry within Lifespring
UK ministry outside Lifespring
Youth expenses		 Church
activities
2021
£
205,643
23,735
45,016
15,215
289,609		 Total
funds
2021
£
205,643
23,735
45,016
15,215
289,609

Page 22

LIFESPRING

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

8. Analysis of expenditure by activities (continued)

Analysis of direct costs (continued)

Staff costs
Ministry within Lifespring
UK ministry outside Lifespring
Hire of premises
Youth expenses		 Church
activities
2020
£
267,637
14,322
60,011
51,958
9,397
403,325		 Total
funds
2020
£
267,637
14,322
60,011
51,958
9,397
403,325

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
2021
£
19,050
4,088
716
36,068
33,733
93,655
Support
activities
2020
£
30,190
5,603
966
37,928
35,486
110,173		 Total
funds
2021
£
19,050
4,088
716
36,068
33,733
93,655
Total
funds
2020
£
30,190
5,603
966
37,928
35,486
110,173

Page 23

LIFESPRING

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

9. Auditors' remuneration

The auditors' remuneration amounts to an auditor fee of £4,020 ( 2020 - £4,040 ).

10. Staff costs

Wages and salaries
Social security costs
Contribution to defined contribution pension schemes		 2021
£
180,520
12,569
12,554
205,643		 2020
£
236,344
16,683
14,610
267,637

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

2021 2020
No. No.
Elders and administration 6 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 CIO constitution permits the employment of trustees or them entering a contract for services to the charity under clause 7.3 of the constitution. The value of Trustees' remuneration and other benefits was as follows:

2021 2020
£ £
Mr Andrew Robinson Remuneration 50,277 48,932
Pension contributions paid 4,022 3,915
Short-term contract with Tom
Robinson (son) 2,775 -
Remuneration for Mrs Tanya
Mr Jonathan Brydon Brydon 23,088 22,470
Pension contributions paid 1,843 1,798
Mrs Michaela Sargeant Remuneration - 2,526
Short-term contract with Mrs
Mr Matthew Straughton Anna Straughton 3,375 -

During the year ended 31 August 2021, expenses totalling £ 2,572 were reimbursed or paid directly to 1 Trustee (2020 - £15,727 to 1 Trustee) . These expenses were paid in order for A Robinson to exercise his apostolic ministry and related to ministry trips and conferences.

Page 24

LIFESPRING

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

12. Tangible fixed assets

Cost or valuation
At 1 September 2020
Additions
Disposals
At 31 August 2021
Depreciation
At 1 September 2020
Charge for the year
On disposals
At 31 August 2021
Net book value
At 31 August 2021
At 31 August 2020
Debtors
Due within one year
Other debtors		 Freehold
property
£
925,879
10,928
-
936,807
91,405
18,644
-
110,049
826,758
834,474		 Office
equipment
£
120,100
-
(7,363)
112,737
102,144
5,225
(7,363)
100,006
12,731
17,956		 Computer
equipment
£
49,243
-
(10,717)
38,526
30,860
5,844
(10,717)
25,987
12,539
18,383
2021
£
17,758
17,758		 Total
£
1,095,222
10,928
(18,080)
1,088,070
224,409
29,713
(18,080)
236,042
852,028
870,813
2020
£
44,360
44,360

13. Debtors

Page 25

LIFESPRING

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

14. Creditors: Amounts falling due within one year

Trade creditors
Other taxation and social security
Pension contributions payable
Credit cards
Accruals and deferred income		 2021
£
4,719
4,182
1,167
4,260
4,812
19,140		 2020
£
-
4,014
1,385
484
4,481
10,364

15. Financial instruments

2021 2020
£ £
Financial assets
Financial assets measured at fair value through income and expenditure 211,652 144,277

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

Page 26

LIFESPRING

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

16. Statement of funds

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 purposes to which restricted funds are used are as follows:

Building fund

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

Zambia school fund

The church supports the work of a school in Zambia and raises funds within the church for specific needs, such as their feeding programme, as they arise 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 wishes to support within and outwith the church.

Statement of funds - current year

Unrestricted funds
General fund
Restricted funds
Building fund
Zambia school & feeding fund
Specific gifts
Total of funds		 Balance at 1
September
2020
£
231,216
802,187
-
15,683
817,870
1,049,086		 Income
£
395,652
3,638
23,524
375
27,537
423,189		 Expenditure
£
(355,965)
(27,299)
(26,713)
-
(54,012)
(409,977)		 Transfers
in/out
£
(3,189)
-
3,189
-
3,189
-		 Balance at
31 August
2021
£
267,714
778,526
-
16,058
794,584
1,062,298

Page 27

LIFESPRING

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

16.
Statement of funds (continued)
Statement of funds - prior year
Unrestricted funds
General fund
Restricted funds
Building fund
Zambia school & feeding 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 28

LIFESPRING

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

17. Summary of funds

Summary of funds - current year

General funds
Restricted funds
Summary of funds - prior year
General funds
Restricted funds		 Balance at 1
September
2020
£
231,216
817,870
1,049,086
Balance at
1 September
2019
£
300,686
836,521
1,137,207		 Income
£
395,652
27,537
423,189
Income
£
428,497
87,791
516,288		 Expenditure
£
(355,965)
(54,012)
(409,977)
Expenditure
£
(486,300)
(118,109)
(604,409)		 Transfers
in/out
£
(3,189)
3,189
-
Transfers
in/out
£
(11,667)
11,667
-		 Balance at
31 August
2021
£
267,714
794,584
1,062,298
Balance at
31 August
2020
£
231,216
817,870
1,049,086

Page 29

LIFESPRING

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

18. Analysis of net assets between funds

Analysis of net assets between funds - current year

Unrestricted
funds
2021
£
Tangible fixed assets
73,502
Current assets
213,352
Creditors due within one year
(19,140)
Total
267,714
Analysis of net assets between funds - prior year
Unrestricted
funds
2020
£
Tangible fixed assets
68,626
Current assets
172,954
Creditors due within one year
(10,364)
Total
231,216		 Restricted
funds
2021
£
778,526
16,058
-
794,584
Restricted
funds
2020
£
802,187
15,683
-
817,870		 Total
funds
2021
£
852,028
229,410
(19,140)
1,062,298
Total
funds
2020
£
870,813
188,637
(10,364)
1,049,086

19. Reconciliation of net movement in funds to net cash flow from operating activities

Net income/expenditure for the year (as per Statement of Financial
Activities)
Adjustments for:
Depreciation charges
Decrease in debtors
Increase/(decrease) in creditors
Net cash provided by/(used in) operating activities		 2021
£
13,212
29,713
26,602
8,776
78,303		 2020
£
(88,121)
31,486
3,276
(18,749)
(72,108)

Page 30

LIFESPRING

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

20. Analysis of cash and cash equivalents

Cash in hand
Total cash and cash equivalents		 2021
£
211,652
211,652		 2020
£
144,277
144,277

21. Analysis of changes in net debt

Cash at bank and in hand
Debt due within 1 year		 At 1
September
2020
£
144,277
(1,385)
142,892		 Cash flows
At 31
August 2021
£
£
67,375
211,652
218
(1,167)
67,593
210,485		 Cash flows
At 31
August 2021
£
£
67,375
211,652
218
(1,167)
67,593
210,485
210,485

22. 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 £12,554 (2020 - £14,610) £1,167 (2020 - £1,385) was payable to the fund at the balance sheet date and is included in creditors.

23. Related party transactions

Donations to the charity by all trustees 2021
£
52,125
52,125		 2020
£
79,615
79,615

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

Page 31