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← Lifespring

2023-08-31-accounts

Charity number: 1160962

LIFESPRING

TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

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 - 13
Statement of financial activities 14
Balance sheet 15
Statement of cash flows 16
Notes to the financial statements 17 - 32

LIFESPRING

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2023

Trustees

Mr Morne De Jager (resigned 15 October 2023) Mr Matthew Straughton (resigned 11 October 2023) Mr Jonathan Brydon (resigned 30 September 2023) Mrs Michaela Sargeant, Chair Mrs Alexandra Davis, Secretary Mrs Janine Scott (resigned 30 April 2023) Mrs Hannah Viet (appointed 22 April 2024) Mr Jonathan Wintermeyer Mr Clive Woodman (appointed 17 April 2023) Mr Jonathan Sheldon (appointed 16 October 2023) Mr Daniel Young (appointed 20 March 2024)

Charity registered number

1160962

Registered office

Jubilee House Worthing Road Southwater West Sussex RH13 9JB

Bankers

HSBC UK plc 6 West Street Horsham West Sussex RH12 1PE

Cambridge & Counties Bank 58 New Walk Leicester LE1 6TE

Solicitors

Anthony Collins Solicitors LLP 134 Edmund Street Birmingham B3 2ES

Page 1

LIFESPRING

TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2023

The Trustees present their annual report together with the audited financial statements of the Charity for the 1 September 2022 to 31 August 2023. The Trustees confirm that the Annual report and financial statements of the charitable incorporated organisation comply with the current statutory requirements, the requirements of the charity's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).

Objectives and activities

Policies and objectives

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 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 2023

Objectives and activities (continued)

Activities undertaken to achieve 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. And 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, where possible 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 2023

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 2023

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.

Sunday services

.The church meets together weekly on Sundays for worship and teaching. These services take place at the Capitol Theatre and are open to the public. All are welcomed whatever their belief. Offerings are taken at services for anyone wanting to give financially to the church (or other specific needs e.g. War in the Ukraine) and there are refreshments following the service. The attendance of Sunday services is a 12-month rolling average of 162 (for year Sep 2022 – Aug 2023). At these services there is an encouragement from the platform to join Sunday evening prayer meetings, sign up to small groups and engage with other areas of church life. At the year-end date of 31st Aug 2022, 154 people (age 16+) were considered members of the Lifespring family.

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:-

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, primarily through financial contributions to our partners:

o Supporting Jubilee+ as a church partner. Jubilee + empower churches across the UK to care for the poor in their local communities.

o Partnered with Christcentral to plant churches and advance the gospel across the UK and globally.

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.

Page 5

LIFESPRING

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

Achievements and performance (continued)

Investment policy and performance

No investments held.

Financial review

Going concern

After making appropriate enquiries, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.

Reserves policy

The Trustees consider it prudent to have general cash reserves equivalent to 13 weeks expenditure as an objective.

The 2022/2023 budget was flexed during the year in the expectation that the 13 week cash reserve threshold would not breached and at the year end the cash reserves were in excess of 13 weeks expenditure. The Trustees are confident that the level of donations and other income will continue to support the activities of the charity.

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 rent the Capitol theatre for our public services on a Sunday mornings. Our rented and owned premises are adequate for our needs however significant growth will require larger or additional premises over the medium term.

Page 6

LIFESPRING

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

Financial review and results

During this financial year 71% (2022: 81%) of income came from regular voluntary donations and associated income tax recovery under the “gift aid” scheme. The remaining 29% (2022: 19%) of income came from other activities and one off gift day appeals. The principal areas of expenditure were staff costs; premises costs and support for church-based activities in the Horsham area and nationally. In addition, 13% (2022: 16%) of income has been given away to external individuals, organisations with complementary objectives and other charities.

At the balance sheet date the general reserve stood at £234k (2022: £214k).

Structure, governance and management

Constitution

Lifespring is registered as a charitable company limited by guarantee and was set up by 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.

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.

Any relevant items from the Charity Commission are distributed via email, 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:

Page 7

LIFESPRING

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

Structure, governance and management (continued)

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

In 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 2023

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).

Charity law requires the Trustees to prepare financial statements for each financial year. Under charity law, the Trustees must not approve the financial statements unless they are satisfied that they 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. 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 20 June 2024 and signed on their behalf by:

Mrs Michaela Sargeant

(Chair of Trustees)

Page 9

LIFESPRING

INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF LIFESPRING

Opinion

We have audited the financial statements of Lifespring (the 'charitable incorporated organisation') for the year ended 31 August 2023 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).

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 charitable company'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.

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.

Page 10

LIFESPRING

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

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 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 being satisfied that they give a true and fair view, 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 TRUSTEES 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 TRUSTEES 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's 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

20 June 2024

Page 13

LIFESPRING

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2023

Note
Income from:
Donations and legacies
3
Charitable activities
4
Investments
5
Total income
Expenditure on:
Charitable activities
7
Total expenditure
Net movement in funds before other
recognised gains/(losses)
Other recognised gains/(losses):
Losses on disposal of fixed assets
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Restricted
funds
2023
£
103,739
8,960
-
112,699
64,004
64,004
48,695
-
48,695
796,869
48,695
845,564		 Unrestricted
funds
2023
£
453,964
55,138
2,205
511,307
492,018
492,018
19,289
-
19,289
214,494
19,289
233,783		 Total
funds
2023
£
557,703
64,098
2,205
624,006
556,022
556,022
67,984
-
67,984
1,011,363
67,984
1,079,347		 Total
funds
2022
£
504,587
5,000
38
509,625
559,203
559,203
(49,578)
(1,357)
(50,935)
1,062,298
(50,935)
1,011,363

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

The notes on pages 17 to 32 form part of these financial statements.

Page 14

LIFESPRING REGISTERED NUMBER:

BALANCE SHEET AS AT 31 AUGUST 2023

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 assets less current liabilities
Total net assets
Charity funds
Restricted funds
16
Unrestricted funds
16
Total funds		 27,455
279,303
306,758
(26,881)		 2023
£
799,470
279,877
1,079,347
1,079,347
845,564
233,783
1,079,347		 14,936
194,415
209,351
(24,105)		 2022
£
826,117
185,246
1,011,363
1,011,363
796,869
214,494
1,011,363

An audit has been conducted in accordance with section 145 of the Charities Act 2011.

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

The financial statements have been prepared in accordance with the provisions of the Charities Act 2011.

The financial statements were approved and authorised for issue by the Trustees on 20 June 2024 and signed on their behalf by:

Mrs Michaela Sargeant

(Chair of Trustees)

The notes on pages 17 to 32 form part of these financial statements.

Page 15

LIFESPRING

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2023

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 32 form part of these financial statements		 2023
£
87,487
(2,599)
(2,599)
-
84,888
194,415
279,303		 2022
£
(12,268)
(4,969)
(4,969)
-
(17,237)
211,652
194,415

Page 16

LIFESPRING

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

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 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

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.

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.

All expenditure is inclusive of irrecoverable VAT.

Page 17

LIFESPRING

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

2. Accounting policies (continued)

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 basis:

Freehold property - 2% straight line
Office equipment - 20% straight line
Computer equipment - 25% straight line
Other fixed assets -

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.

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.

Page 18

LIFESPRING

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

2. Accounting policies (continued)

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

Donations
Donations
Government grants		 Restricted
funds
2023
Unrestricted
funds
2023
£
£
103,739
453,964
Restricted
funds
2022
Unrestricted
funds
2022
£
£
85,762
418,525
-
300
85,762
418,825		 Total
funds
2023
£
557,703
Total
funds
2022
£
504,287
300
504,587

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LIFESPRING

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

4. Income from charitable activities

Conference fees and specific gifts
Conference fees and specific gifts
5.
Investment income
Investment income - local cash
Investment income - local cash
6.
Analysis of grants
Grants for charitable activities		 Restricted
funds
2023
Unrestricted
funds
2023
£
£
8,960
55,138
Unrestricted
funds
2022
£
5,000
Unrestricted
funds
2023
£
2,205
Unrestricted
funds
2022
£
38
Grants to
Institutions
2023
£
41,302		 Total
funds
2023
£
64,098
Total
funds
2022
£
5,000
Total
funds
2023
£
2,205
Total
funds
2022
£
38
Total
funds
2023
£
41,302

Page 20

LIFESPRING

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

6. Analysis of grants (continued)

Grants to Total
Institutions funds
2022 2022
£ £
Grants for charitable activities 47,255 47,255

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

Direct costs of charitable activities
Direct costs of charitable activities		 Restricted
funds
2023
Unrestricted
funds
2023
£
£
64,004
492,018
Restricted
funds
2022
Unrestricted
funds
2022
£
£
76,741
482,462		 Total
2023
£
556,022
Total
2022
£
559,203

8. Analysis of expenditure by activities

Activities Grant
undertaken funding of Support Total
directly activities costs funds
2023 2023 2023 2023
£ £ £ £
Direct costs of charitable activities 409,855 41,302 104,865 556,022

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LIFESPRING

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

8. Analysis of expenditure by activities (continued)

Activities Grant
undertaken funding of Support Total
directly activities costs funds
2022 2022 2022 2022
£ £ £ £
Direct costs of charitable activities 407,700 47,255 104,248 559,203

Analysis of direct costs

Staff costs
Ministry within Lifespring
UK ministry outside Lifespring
Hire of premises
Youth expenses
Staff costs
Ministry within Lifespring
UK ministry outside Lifespring
Hire of premises
Youth expenses		 Church
activities
2023
£
249,607
28,582
49,062
65,811
16,793
409,855
Church
activities
2022
£
231,957
40,622
52,256
62,326
20,539
407,700		 Total
funds
2023
£
249,607
28,582
49,062
65,811
16,793
409,855
Total
funds
2022
£
231,957
40,622
52,256
62,326
20,539
407,700

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LIFESPRING

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

8. Analysis of expenditure by activities (continued)

Analysis of support costs

Depreciation
Building running costs
Insurance
Bank charges
Office costs
Governance costs
Depreciation
Building running costs
Insurance
Bank charges
Office costs
Governance costs
Auditors' remuneration
Fees payable to the Charity's auditor for the audit of the Charity's annual
accounts		 Support
activities
2023
£
18,736
35,131
3,113
1,750
28,827
17,308
104,865
Support
activities
2022
£
18,736
32,096
3,736
2,129
32,384
15,167
104,248
2023
£
4,800		 Total
funds
2023
£
18,736
35,131
3,113
1,750
28,827
17,308
104,865
Total
funds
2022
£
18,736
32,096
3,736
2,129
32,384
15,167
104,248
2022
£
4,200

9. Auditors' remuneration

Page 23

LIFESPRING

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

10. Staff costs

2023
£
Wages and salaries
210,952
Social security costs
21,901
Contribution to defined contribution pension schemes
16,754
249,607
The average number of persons employed by the Charity during the year was as follows:
2023
No.
Elders and administration
6		 2022
£
201,661
17,268
13,028
231,957
2022
No.
6

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 and/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:

2023 2022
£ £
Mr Morne De Jager Remuneration 44,962 44,529
Pension contributions paid 3,597 3,562
Mr Matthew Straughton Fees paid 2,750 -
Mr Jonathan Wintermeyer Remuneration including spouse 59,524 53,891
Pension contributions paid 4,622 3,902

During the year ended 31 August 2023, expenses totalling £ 8,059 were reimbursed or paid directly to 4 Trustees (2022 - £2,792 to 4 Trustees) . These expenses were paid to trustees as part of their terms of employment and represented amounts paid for telephone costs and other staff expenses.

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LIFESPRING

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

12. Tangible fixed assets

Cost or valuation
At 1 September 2022
Additions
Disposals
At 31 August 2023
Depreciation
At 1 September 2022
Charge for the year
On disposals
At 31 August 2023
Net book value
At 31 August 2023
At 31 August 2022		 Freehold
property
£
936,807
-
-
936,807
128,785
18,736
-
147,521
789,286
808,022		 Office
equipment
£
48,016
-
(4,369)
43,647
36,270
4,561
(4,369)
36,462
7,185
11,746		 Computer
equipment
£
11,351
2,599
(1,879)
12,071
10,252
1,749
(1,879)
10,122
1,949
1,099		 Other fixed
assets
£
21,000
-
-
21,000
15,750
4,200
-
19,950
1,050
5,250		 Total
£
1,017,174
2,599
(6,248)
1,013,525
191,057
29,246
(6,248)
214,055
799,470
826,117

13. Debtors

Due within one year
Other debtors
Prepayments and accrued income		 2023
£
22,306
5,149
27,455		 2022
£
12,536
2,400
14,936

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LIFESPRING

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

14. Creditors: Amounts falling due within one year

Trade creditors
Other taxation and social security
Pension contributions payable
Other creditors
Accruals and deferred income		 2023
£
3,626
5,232
1,682
2,359
13,982
26,881		 2022
£
2,000
4,625
1,110
2,298
14,072
24,105

15. Financial instruments

2023 2022
£ £
Financial assets
Financial assets measured at fair value through income and expenditure 279,303 194,415

Financial assets measured at fair value through income and expenditure comprise balances held in banks.

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LIFESPRING

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

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 and future building projects.

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
Specific gifts fund
Church conference fund		 Balance at 1
September
2022
£
214,494
793,547
3,322
-
796,869		 Income
£
511,307
103,739
-
8,960
112,699		 Expenditure
£
(492,018)
(55,044)
-
(8,960)
(64,004)		 Balance at
31 August
2023
£
233,783
842,242
3,322
-
845,564

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LIFESPRING

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

16. Statement of funds (continued)

Total of funds

1,011,363 624,006 (556,022) 1,079,347

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LIFESPRING

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

16. Statement of funds (continued)

Statement of funds - prior year

Unrestricted funds
General fund
Restricted funds
Building fund
Zambia school fund
Specific gifts fund fund
Ukraine appeal fund
Total of funds		 Balance at
1 September
2021
£
267,714
778,526
9,398
6,660
-
794,584
1,062,298		 Income
£
423,743
46,816
120
-
38,946
85,882
509,625		 Expenditure
£
(475,606)
(31,795)
(12,856)
-
(38,946)
(83,597)
(559,203)		 Transfers
in/out
£
-
-
3,338
(3,338)
-
-
-		 Gains/
(Losses)
£
(1,357)
-
-
-
-
-
(1,357)		 Balance at
31 August
2022
£
214,494
793,547
-
3,322
-
796,869
1,011,363

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LIFESPRING

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

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
2021
£
267,714
794,584
1,062,298		 Income
£
423,743
85,882
509,625		 Balance at 1
September
2022
£
214,494
796,869
1,011,363
Expenditure
£
(475,606)
(83,597)
(559,203)		 Income
£
511,307
112,699
624,006
Transfers
in/out
£
-
-
-		 Expenditure
£
(492,018)
(64,004)
(556,022)
Gains/
(Losses)
£
(1,357)
-
(1,357)		 Balance at
31 August
2023
£
233,783
845,564
1,079,347
Balance at
31 August
2022
£
214,494
796,869
1,011,363

Page 30

LIFESPRING

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

18. Analysis of net assets between funds

Analysis of net assets between funds - current year

Tangible fixed assets
Current assets
Creditors due within one year
Total		 Restricted
funds
2023
Unrestricted
funds
2023
£
£
789,286
10,184
56,278
250,480
-
(26,881)
845,564
233,783		 Total
funds
2023
£
799,470
306,758
(26,881)
1,079,347

Analysis of net assets between funds - prior year

Tangible fixed assets
Current assets
Creditors due within one year
Total		 Restricted
funds
2022
£
793,547
3,322
-
796,869		 Unrestricted
funds
2022
£
32,570
206,029
(24,105)
214,494		 Total
funds
2022
£
826,117
209,351
(24,105)
1,011,363

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/(increase) in debtors
Increase in creditors
Net cash provided by/(used in) operating activities		 2023
£
67,984
29,246
(12,519)
2,776
87,487		 2022
£
(49,578)
29,523
2,822
4,965
(12,268)

Page 31

LIFESPRING

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

20. Analysis of cash and cash equivalents

Cash in hand
Total cash and cash equivalents		 2023
£
279,303
279,303		 2022
£
194,415
194,415

21. Analysis of changes in net debt

Cash at bank and in hand
Debt due within 1 year		 At 1
September
2022
£
194,415
(1,110)
193,305		 Cash flows
At 31
August 2023
£
£
84,888
279,303
(572)
(1,682)
84,316
277,621		 Cash flows
At 31
August 2023
£
£
84,888
279,303
(572)
(1,682)
84,316
277,621
277,621

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 £16,754 (2022 - £13,028) Contributions amounting to £1,682 (2022 - £1,110) were payable to the fund at the balance sheet date and are included in creditors.

23. Related party transactions

Donations to the charity by trustees 2023
£
96,835
96,835		 2022
£
61,089
61,089

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

Page 32