Charity registration number: 1168142 ## The Lighthouse Family Church Annual Report and Financial Statements for the Year Ended 31 March 2022 ## **Contents** |**Contents**|| |---|---| |Reference and Administrative Details|1| |Trustees' Report|2 to 5| |Statement of Trustees' Responsibilities|6| |Independent Examiner's Report|7| |Statement of Financial Activities|8| |Balance Sheet|9| |Notes to the Financial Statements|10 to 18| ## **Reference and Administrative Details** ## **Trustees** Philip Edward Read Christopher John Burton David Arthur Lings Ian Lawrence Burton Rachel Rous Benjamin Paul Harden Peter Martin Weir ## **Principal Office** Unit D22, Admiralty Park Station Road Holton Heath Poole BH16 6HX ## **Charity Registration Number** 1168142 ## **Independent Examiner** Kolade Andrew Alli ACMA KARE Financial Management Consultants Ltd 10 Gatcombe Gardens West End Hampshire SO18 3NA Page 1 ## **Trustees' Report** The Trustees have pleasure in presenting their report and the financial statements for the charity for the year ended 31 March 2022. The Trustees have adopted the provisions of 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 the Republic of Ireland (FRS 102) (effective 1 January 2015). ## **OBJECTS** The primary aims of the Trust are to fulfil the role of a Christian Church in the Poole, Dorset area and to provide help to others in promoting the Christian faith in the United Kingdom and overseas ## **THE CHURCH: ITS AIMS AND OBJECTIVES** The Church is not a building, but a gathering of ordinary people of different ages and backgrounds whose lives have been changed by Jesus Christ, the Son of God. The New Testament reveals the Church as a community of people, properly taught and cared for, who by loving and serving Jesus Christ, were also committed to love and care for each other and to bring a blessing to the area in which they lived. The Lighthouse Family Church, its trustees, leaders and members are committed to the restoration of those New Testament principles. It is not alone in this, it is one of many Churches in the area, country and all over the world that is rediscovering the excitement of knowing Jesus Christ. The vision is to see the people of Lytchett Matravers and the surrounding area come into this experience of knowing Jesus Christ as their Lord, Saviour and friend The Lighthouse Family Church has a long-standing relationship with several other local Churches that pursue similar objectives in the UK and overseas and is developing relationships with other churches in planning joint ventures within the area. Directions relating to the charitable trust are made by the Trustees in consultation with the church leaders who are responsible for governing the life and teaching of the church. Day to day decisions on expenditure and activities are decided by the church leaders, staff and volunteers in charge of different areas of the church. The power of appointment or removal of Trustees rests with the Trustees. New Trustees are primarily selected from the members of the church since this means that the Trustee body is whole heartedly involved in seeing the mission of the church worked out in practice. On being appointed, new Trustees spend time with the existing Trustees to ensure they understand their responsibilities and the legal and financial framework in which the church operates. Whilst the church currently employs eight part time staff, it is the work of every member of the church, whether employed or not, that will make the difference in the church achieving its great commission. This is done by being ‘salt and light’ amongst the people they interact with every day; by praying, by visiting the sick and others in need, in being involved in training others, in public teaching and worship, and also in administration. The financial resources of the church, to a very large extent, are given by the members and their private assets and resources are regularly used in the work of the church. Much of this work is done privately, without recognition, and the hours and value of the time cannot be quantified. Page 2 ## **Trustees' Report** ## **THE YEAR: ITS OBJECTIVES, ACHIEVEMENTS & EVENTS** During the year ending 31st March 2022 Covid-19 continued to have a significant impact on the way the church has operated. Whilst the objectives of the church have remained the same, all activity had either been halted or moved online. As restrictions have eased, there has been a return to in person meetings whilst still maintaining an online presence. ## _**General Church Activities**_ The Lighthouse continued with a programme of training, equipping and pastoral care for the Lighthouse Church Family. The pastoral care team continued to provide care and prayer for those in need within the church and community. An updated program of Sunday services is now running with the majority also being streamed online. Additional content continues to be made available online. ## _**Church Growth**_ Although the church doesn’t have a formal membership there are some 125 people who consider themselves part of the Lighthouse Family Church. There has been a reduction in the number of people who are part of the Lighthouse Family Church primarily due to the Covid-19 pandemic. The church had been meeting primarily online or small groups have been encouraged to meet face to face within the Covid-19 restrictions in force at the time. Now that restrictions have been eased more face-to-face meetings are now taking place. The online activity has allowed us to reach a far wider group of people geographically and we will continue to stream online content after normal activity is resumed. ## _**Kingdom Life School**_ The Lighthouse Church started Kingdom Life School in September 2017, a programme of training aiming to equip students to boldly share and demonstrate the Kingdom of God. The school has not been able to run since the beginning of the pandemic and time is being taken to review how the school is structured with a view to restarting in the future. September 2022 will see the return of our 5-day school as a way to regroup the team, build momentum, and generate interest in the year long school. We have also designed and are currently producing a series of online short courses which we plan to make available both to our own church family and to other churches/home groups to continue with our mission to train and equip, and to give prospective students/partners a taste of the Kingdom Life School syllabus. ## _**Overseas Mission Support**_ The Lighthouse Church is currently support mission projects in 3 areas: Uganda, Japan (and South East Asia) and the Philippines. The Trustees aim to be giving at least 10% of donations towards mission. Page 3 ## **Trustees' Report** ## _**New Building**_ Having been located in the leased building at Admiralty Park for some 12 years the leaders of the church began to look towards developing a larger church centre to cater for growth that has been happening amongst adults, children and youth. A 5-acre plot of land was identified and purchased January 2018 on a site close to the current building on Station Road. Demolition work has been completed except for one area that needed further planning consents, which have now been granted. An alternative planning application has been made to vary the original design to allow construction to be carried out in a more phased approach as funds allow ## _**Woodland Church**_ During the last year we have held several woodland work-parties which have opened-up the site to some degree for the use of church. The installation of a canopy over one of the clearings provides a sheltered area to gather around a fire pit for fellowship and food. The team also constructed a play area with mud kitchen, log stepping-stones and balance beam, some of which used timber from the two trees that were felled to open up areas of the woodland. In addition to this a container was situated on the edge of the site to provide a secure lock-up. During the last year we have held several gatherings on site including an Easter Celebration and trail, a baby dedication and woodland church. It’s hoped in the coming year that we’ll be able to source a disabled access composting toilet and work closely with the Scouts to clear more of the rhododendrons to make the site more usable by other community groups. We see the upgrading of the fences, an improvement of paths to key areas [toilet & firepit] and the provision of a water tap as important targets going forward. ## **PLANS FOR THE NEW YEAR** The key strategies for the church remain the same but will be reviewed by the Church leadership team on a regular basis. Fundraising will continue for the building project and plans for the next stages of development are in process. The church will continue to explore, in consultation with local churches and Christian agencies, other ways to assist the poorer sections of the community, both in the financial sense of the word but also in others. The church will also review its current support commitments and explore further overseas opportunities, including response to any appeals following emergencies and/or natural disasters around the world. Now that it is well established in its leased premises the church is open to explore opportunities for the building to be used more widely within the community Page 5 ## **Trustees' Report** ## **FINANCIAL REVIEW** The level of donations has fallen slightly over the year but remains good providing steady income. The church has made use of various government schemes including the Coronavirus Job Retention Scheme and a Bounce Back Loan. The property that was gifted to the church in a will has now been sold, although at the financial year end the separate garage was still on the market. ## **GRANT MAKING POLICY** Gifts to external organisations and individuals are considered by the Trustees on the basis of need and fulfilment of the charitable objectives. There are no upper or lower limits of support ## **RISK MANAGEMENT** All major insurable risks are subject to normal Churches and employers’ insurance. Contractual risks are reviewed before entering into to assess that they could not significantly impact upon the churches ability to fulfil its objectives. ## **GOVERNANCE** The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Charity and to enable them to ensure that the accounts comply with the Charities Acts. 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. The Trustees confirm that the accounts comply with current statutory requirements and those of the Charity’s trust deed Page 5 ## **Statement of Trustees' Responsibilities** The trustees are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations. The law applicable to charities requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to: - select suitable accounting policies and then apply them consistently; - observe the methods and principles in the Charities SORP; - make judgements and estimates that are reasonable and prudent; - state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business. The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the constitution. The trustees 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. Approved by the trustees of the charity on 6th September 2022 and signed on its behalf by: ......................................... Christopher John Burton Trustee Page 6 ## **Independent Examiner's Report to the trustees of The Lighthouse Family Church** I report to the charity trustees on my examination of the accounts of the charity for the year ended 31 March 2022 which are set out on pages 8 to 18. ## **Respective responsibilities of trustees and examiner** As the charity’s trustees of The Lighthouse Family Church you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’). I report in respect of my examination of The Lighthouse Family Church's accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act. ## **Independent examiner’s statement** Since The Lighthouse Family Church's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of The Chartered Institute of Management Accountants UK, which is one of the listed bodies. I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect: 1. accounting records were not kept in respect of The Lighthouse Family Church as required by section 130 of the Act; or 2. the accounts do not accord with those records; or 3. the accounts do not comply with the accounting requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view' which is not a matter considered as part of an independent examination. I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. ...................................... Kolade Andrew Alli ACMA KARE Financial Management Consultants Ltd 10 Gatcombe Gardens West End Hampshire SO18 3NA - 6[th] September 2022 Page 7 ## **Statement of Financial Activities for the Year Ended 31 March 2022** |**Statement of Financial Activities for the Year Ended 31 March**
**2022**|**Statement of Financial Activities for the Year Ended 31 March**
**2022**| |---|---| |**Unrestricted**
**Restricted**
**Total**
**2022**
**Total**
**2021**|| |**Note**
**£**
**£**
**£**
**£**|| |**Income and Endowments from:**|| |Charitable activities|524,161
22,381
546,542
226,225| |**Expenditure on:**|| |Charitable activities|(308,316)
-
(308,316)
(264,306)| |Total expenditure|| ||(308,316)
-
(308,316)
(264,306)| |Net movement in funds|| ||215,845
22,381
238,226
(38,081)| |**Reconciliation of funds**|| |Total funds brought|| |forward|322,156
356,332
678,488
716,569| |Total funds carried|| |forward
12|538,001
378,713
916,714
678,488| All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2021 is shown in note 12. Page 8 ## **(Registration number: 1168142) Balance Sheet as at 31 March 2022** |**(Registration number: 1168142)**
**Balance Sheet as at 31 March 2022**|**(Registration number: 1168142)**
**Balance Sheet as at 31 March 2022**| |---|---| |**2022**
**2021**|| |**Note**
**£**
**£**|| |**Fixed assets**|| ||| |Tangible assets
6|138,749
496,249| |Investments
7|979,911
771,933| ||1,118,660
1,268,182| |**Current assets**|| ||| |Debtors
8|-
4,721| |Cash at bank and in hand
9|119,823
41,806| ||119,823
46,527| |**Creditors: Amounts falling due within oneyear**
10|| ||(3,583)
(3,173)| |**Net current**assets|| ||116,240
43,354| |**Total assets less current liabilities**|| ||1,234,900
1,311,536| |**Creditors: Amounts falling due after more than**|| |
**oneyear**
11|(95,343)
(194,737)| |**Net**assets|| ||1,139,557
1,116,799| |**Funds of the charity:**|| |**Restricted income funds**|| ||| |Restricted funds|601,556
794,643| |**Unrestricted income funds**|| ||| |Unrestricted funds|315,158
322,156| |Revaluation reserve|222,843
-| |Total unrestricted funds|| ||538,001
322,156| |**Total funds**
12|| ||1,139,557
1,116,799| The financial statements on pages 8 to 18 were approved by the trustees, and authorised for issue on 6th September 2022 and signed on their behalf by: ......................................... Christopher John Burton Trustee Page 9 ## **Notes to the Financial Statements for the Year Ended 31 March 2022** ## **1 Accounting policies** ## **Statement of compliance** The financial statements have been prepared in accordance with 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) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011. ## **Basis of preparation** The Lighthouse Family Church 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 notes. ## **Exemption from preparing a cash flow statement** The charity opted to early adopt Bulletin 1 published on 2 February 2016 and have therefore not included a cash flow statement in these financial statements. ## **Going concern** The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern. ## _**Charitable activities**_ Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them. Page 10 ## **Notes to the Financial Statements for the Year Ended 31 March 2022** ## **Taxation** The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes. ## **Tangible fixed assets** Individual fixed assets costing £1,000 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses. ## **Depreciation and amortisation** Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows: 33% straight line depreciation policy for computer equipment 20% straight line depreciation policy on furniture, fittings, plant and machinery ## **Fixed asset investments** Fixed asset investments, other than programme related investments, are included at market value at the balance sheet date. Realised gains and losses on investments are calculated as the difference between sales proceeds and their market value at the start of the year, or their subsequent cost, and are charged or credited to the Statement of Financial Activities in the period of disposal. Unrealised gains and losses represent the movement in market values during the year and are credited or charged to the Statement of Financial Activities based on the market value at the year end. ## **Trade debtors** Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business. Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables. ## **Cash and cash equivalents** Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value. Page 11 ## **Notes to the Financial Statements for the Year Ended 31 March 2022** ## **Fund structure** Unrestricted income funds are general funds that are available for use at the trustees’ discretion in furtherance of the objectives of the charity. Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose. ## **2 Income from charitable activities** ## **Unrestricted** ||||**Total**|**Total**| |---|---|---|---|---| ||**General**|**Restricted**|**2022**|**2021**| ||**£**|**£**|**£**|**£**| ||||204,672|| |General Donations|185,587
19,085
209,750|||| |Legacies|278,468
-
278,468
-|||| |Gift Aid tax reclaimed|33,708
3,052
36,760
-|||| |Charges (Events)|-
-
-
710|||| |Kingdom Life School - Fees|-
-
-
316|||| |Events Income|4,160
244
4,404
6|||| |Other income|22,238
-
22,238
15,442|||| |Bank interest receivable|-
-
-
1|||| ||524,161
22,381
546,542
226,225|||| Page 12 ## **Notes to the Financial Statements for the Year Ended 31 March 2022** ## **3 Expenditure on charitable activities** |**3**
**Expenditure on charitable activities**|| |---|---| ||**Unrestricted**| ||| ||**Total**
**Total**| ||**General**
**2022**
**2021**| |**Note**|**£**
**£**
**£**| |Other fundraising costs|-
-
388| |Wages and salaries|83,295
83,295
92,740| |Event costs & Expenses|192
192
36,365| |Kingdom Life School Costs|-
-
229| |Kids & Youth Expenses|-
-
1,610| |Telephone and Computer charges|3,768
3,768
3,785| |Recruitment expenses|267
267
358| |Subscription|1,673
1,673
-| |Training|100
100
-| |Depreciation of long leasehold|-
-
61,198| |Depreciation of office equipment|-
-
2,599| |(Profit)/loss on disposal of|| |tangible fixed assets|79,032
79,032
-| |Advertising|2,318
2,318
-| |Catering & Refreshments|983
983
-| |Travelling Expenses|177
177
-| |Printing, Postage, and Stationery|2,507
2,507
2,155| |Professional Fees|-
-
7,216| |Rent|34,960
34,960
32,199| |Utilities, Repairs and Maintenance|10,805
10,805
4,273| |Premises Expenses|-
-
9,578| |Office Equipment Incl Hire|5,254
5,254
1,580| |Ministry costs|65,673
65,673
-| |Accountancy fees|3,360
3,360
-| |Independent examiner's fee|600
600
600| |Legal and professional fees|4,262
4,262
-| |Bank charges|555
555
297| |Loan interest|3,496
3,496
7,136| |Honorariums|5,039
5,039
-| ||| ||308,316
308,316
264,306| Page 13 ## **Notes to the Financial Statements for the Year Ended 31 March 2022** - **4 Trustees remuneration and expenses** During the year the charity made the following transactions with trustees: **Philip Edward Read** Philip Edward Read received remuneration of £24,047 (2021: £24,934) during the year, for duties carried out as minister of the church Page 14 ## **Notes to the Financial Statements for the Year Ended 31 March 2022** ## **5 Taxation** The charity is a registered charity and is therefore exempt from taxation. |**6**
**Tangible fixed assets**|| |---|---| ||**Land and**
**buildings**
**Total**| ||
**£**
**£**| |**Cost**|| |At 1 April 2021|496,249
496,249| |Prior year adjustment|(17,500)
(17,500)| |Disposals|(340,000)
(340,000)| |At 31 March 2022|138,749
138,749| |**Depreciation**|| |At 31 March 2022|-
-| |**Net book value**|| |At 31 March 2022|138,749
138,749| |At 31 March 2021|496,249
496,249| |**7**
**Fixed asset investments**|| ||**2022**
**2021**| ||**£**
**£**| |Other investments|979,911
771,933| Page 15 ## **Notes to the Financial Statements for the Year Ended 31 March 2022** |**Other investments**|**Other investments**| |---|---| |**Unlisted**
**investments**
**Total**|| |**£**
**£**|| |**Cost or Valuation**|| |At 1 April 2021
979,911
979,911|| |At 31 March 2022
979,911
979,911|| |**Net book value**|| |At 31 March 2022
979,911
979,911|| |At 31 March 2021
979,911
979,911|| |**8**
**Debtors**|| |**2022**
**2021**|| |**£**
**£**|| |Prepayments
-
2,455|| |Other debtors
-
2,266|| |-
4,721|| |**9**
**Cash and cash equivalents**|| |**2022**
**2021**|| |**£**
**£**|| |Cash at bank
119,823
41,806|| |**10 Creditors: amounts falling due within one year**|| ||**2022**
**2021**| ||**£**
**£**| |Other creditors|2,983
2,573| |Accruals|600
600| ||3,583
3,173| |**11 Creditors: amounts falling due after one year**|| ||**2022**
**2021**| ||**£**
**£**| |Other loans|95,343
194,737| Page 16 ## **Notes to the Financial Statements for the Year Ended 31 March 2022** ## **12 Funds** |**12 Funds**|||||||| |---|---|---|---|---|---|---|---| ||||||**Other**||| ||**Balance at**||||**recognised**|
**Balance at**|| ||**1 April**|**Incoming**|**Resources**||
**gains/(los**|**31 March**|| ||**2021**
**£**|**resources**
**£**|**expended**
**£**||**ses)**
**£**|**2022**
**£**|| |**Unrestricted**|||||||| |General|322,156|524,161|(308,316)||-|538,001|| |**Restricted**|356,332|22,381||-|222,843|601,556|| |**Total funds**|678,488|546,542|(308,316)||222,843|1,139,557|| |||||||**Other**|| ||**Balance at**|||||**recognised**|| ||**1 April**|**Incoming**|**Resources**|||**gains/(los**|| ||**2020**
**£**|**resources**
**£**|**expended**
**£**||**Transfers**
**£**|**ses)**
**£**|| |**Unrestricted**|||||||| |General|203,976|226,225|(264,306)||156,261|-|| |**Restricted**|512,593|-||-|(156,261)|438,311|| |**Total funds**|716,569|226,225|(264,306)||-|438,311|| ||||||**Balance at**||| ||||||**31 March**||| |||||||**2021**|| |||||||**£**|| |**Unrestricted**|||||||| |General||||||322,156|| |**Restricted**||||||794,643|| |**Total funds**||||||1,116,799|| Page 17 ## **Notes to the Financial Statements for the Year Ended 31 March 2022** ## **13 Analysis of net assets between funds** ||**Unrestricted**||| |---|---|---|---| ||**funds**|**Restricted**|**Total funds**| ||**General**|**funds**|**2022**| ||**£**|**£**|**£**| |Tangible fixed assets|(17,500)|156,249|138,749| |Fixed asset investments|-|979,911|979,911| |Current assets|119,823|-|119,823| |Current liabilities|(3,583)|-|(3,583)| |Creditors over 1year|-|(95,343)|(95,343)| |Total net assets|98,740|1,040,817|1,139,557| ||**Unrestricted**||| ||**funds**|**Restricted**|**Total funds**| ||**General**|**funds**|**2021**| ||**£**|**£**|**£**| |Tangible fixed assets|340,000|156,249|496,249| |Fixed asset investments|-|771,933|771,933| |Current assets|46,527|-|46,527| |Current liabilities|(3,173)|-|(3,173)| |Creditors over 1year|-|(194,737)|(194,737)| |Total net assets|383,354|733,445|1,116,799| ## **14 Related party transactions** The charity made the following related party transactions during the year. ## **Mr Ian Burton** Provided the church with a loan to support the new building project, which is currently been paid back with interest. As at the balance sheet date the amount due was £48,934 (2021 - £64,137) Page 18