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← Lifehouse Church

2023-12-31-accounts

CHARITY REGISTRATION NUMBER 1170211

COMPANY REGISTRATION NUMBER 09971964

LIFEHOUSE CHURCH

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

LIFEHOUSE CHURCH

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mr P Hollingworth - Senior Pastor
Mr J Needham
Mrs J Meakin
Mr M Steele
Mr T Bello
Members Mr P Hollingworth
Mrs S Hollingworth
Mr J Needham
Mr D Woolf
Senior Pastors Mr P Hollingworth
Mrs S Hollingworth
Charity number 1170211
Company number 09971964
Registered office 90 Chatsworth Road
Chesterfield
Derbyshire
S40 2AN
Auditors UHY Hacker Young
6 Broadfield Court
Broadfield Way
Sheffield
S8 0XF
Bankers Royal Bank of Scotland
2 Stephenson Place
Chesterfield
Derbyshire
S40 1XL
Co-op Bank
15 Elder Way
Chesterfield
S40 1UX

LIFEHOUSE CHURCH

LEGAL AND ADMINISTRATIVE INFORMATION

Solicitors

Robinsons 10-11 St James Court Friargate Derby DE1 1BT

LIFEHOUSE CHURCH

CONTENTS

Page
Trustees' report 1 - 5
Statement of trustees' responsibilities 6
Independent auditor's report 7 - 10
Statement of financial activities 11 - 12
Balance sheet 13
Statement of cash flows 14
Notes to the financial statements 15 - 31

LIFEHOUSE CHURCH

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2023

The trustees present their annual report and financial statements for the year ended 31 December 2023.

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

Objectives and activities

The charitable company's objectives are to advance the faith in Jesus Christ in our community, to relieve sickness and financial hardship and to ensure that our services teach and equip people for life.

Our vision

We as a church exist and are intentional in creating access to the life-changing message of Jesus Christ. We understand that we have to be prepared to explore, experiment and expand to make Church accessible.

We are making a stand by raising up a community of people who will demonstrate the extraordinary God we serve everything we do, will point people towards God.

The aim is to influence this generation with this message. Creatively developing ways that will impact people locally, nationally and across the world.

By practical generosity, our aim is to demonstrate the importance of our key mandate, which is to equip, bless and resource others. That all our services teach and equip people for life.

Our aims

We are seeking:

To become a relevant expression of the Church to the community in the 21st Century; To bring expansion of the Christian faith in all that we do;

To remain firm in our beliefs but flexible in our structures;

To provide relevant programmes for all age groups;

To develop and raise up men and women who will lead in all areas of society; To generously support and partner with organisations who will hold similar objectives; To build an influential structure that will be a beacon of hope in this town and country.

We are committed to ensuring that we can generously provide for all those we come into contact with. We believe this is a fundamental key of the Christian faith.

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

Volunteers play a huge part in achieving our objectives. We rely on numerous volunteers to assist us in developing policies, procedures and systems and running the many outreach groups we have. Without the many volunteers who serve the charity we would be unable to carry out the wide variety of community engagement that Lifehouse currently delivers.

We have not put a monetary value on the many hours our volunteers have provided.

Most help is provided by volunteers of the Church, both practically and financially.

LIFEHOUSE CHURCH

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

Achievements and performance

We were thankful for the following:

To reach the community of Chesterfield by –

Continual innovation to provide:

Financial review

Total income increased from £475,945 in 2022 to £612,957 in 2023. Total expenditure increased from £393,353 to £539,157. This resulted in a surplus for the year of £73,800 (2022: £82,592).

At 31 December 2023, total reserves were £1,192,846 (2022: £1,119,046). This was made up of restricted funds of £361,340 (2022: £351,257), designated funds of £161,978 (2022: £161,978) and unrestricted funds of £669,528 (2022: £605,811). The freely available reserves at 31 December 2023 were £234,392 (2022: £166,327).

During the year to 31 December 2023 the charity received donations of £103,837 for the Chesterfield flood appeal. The financial statements have included an expenditure accrual up to the £103,837 for any donations that had not been distributed by the year end. This reflects the commitment that the charity has to distribute these funds by way of gift vouchers to households affected by the flood shortly after the year end.

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

LIFEHOUSE CHURCH

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

Historically it has been the aim to hold in reserves £35,000 for the Church running. The Trustees will be reviewing this policy in the next financial year to conclude if this level is still appropriate or if a different level is required. The Church Board consider it appropriate to hold reserves above the target level as they have plans for future expansion that will utilise these.

We continue to strive to manage our finances to the best of our ability. We ensure that we fulfil our objectives which are to advance the faith in Jesus Christ, to relieve sickness and financial hardship and to make available our services to all. Our overall aim is the teaching and equipping of people for life. The continued culture of Lifehouse is to breed generosity which then flows down into everything we do as a Church. We continue to invest into introducing key individuals who will help to shape and influence the Church as we move forward.

We stand alongside people and encourage them through current life issues, whilst also ensuring that Lifehouse does everything to the best of its ability.

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

The Church Board have reviewed and considered the major risks affecting Lifehouse Church and have taken steps to mitigate those risks. The Church Board has BrightHR, a specialist company to undertake the Health and Safety and Employment Law concerns of the Church.

The Child Protection/Safeguarding Policy and procedures are maintained/updated annually by the Safeguarding Team and overseen by the Church Board. We take Safeguarding issues very seriously and have put in place a weekly review to ensure any issues are discussed and to provide maximum safety for all. Relevant training for all involved is implemented as necessary in order to stay updated with our Governing Body’s policies and procedures.

Flood - October 2023

On the 20 October 2023 Chesterfield experienced a devastating flash flood that impacted hundreds of homes.

Lifehouse Church was in the heart of the flood area and experienced first hand the destruction of the waters but focussed it's attention on giving help to others.

With the help of other local people and charities we were able to:

The Chesterfield Flood Victims Appeal 'Gofundme' was set up by Lifehouse Church & Toby Perkins MP plus a few local business owners to raise funds for the flood victims.

All the funds have now been utilised in the form of vouchers for the affected people. No costs were used for administrative purposes.

LIFEHOUSE CHURCH

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

Structure, governance and management

The Church was previously a charitable organisation (number 105636) governed by a model deed. On 27 January 2016 the charity incorporated as a limited company by guarantee (company number 09971964 and charity number 1170211) and is governed by its Memorandum and Articles of Association.

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

Mr P Hollingworth - Senior Pastor Mr J Needham Mrs J Meakin Mr M Steele Mr T Bello

New Church Board members are appointed by current Church Board members.

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

Senior Leaders are responsible for the spiritual vision and direction of the Church.

There are 2 Senior Pastors/Leaders: Paul Hollingworth - Senior Pastor Sarah Hollingworth - Senior Pastor

The Church is managed operationally through its Church Board (Trustees) which currently has 5 directors.

To ensure health and accountability we invite an external advisor to attend regularly.

The Trustees meet at least quarterly to decide on current issues and practical matters arising. A finance meeting is held weekly to oversee current financial matters. The Board receives all financial/governance information weekly.

An A.G.M. is held annually with the current Board (Trustees) and invited observers.

The pastoral team has the responsibility for the planning and development of the services and strategies for Lifehouse Church. The Church Board ensure that staff are recruited and supported to provide the skills and expertise needed to run a successful organisation.

The Church Board has the overall responsibility for the church database, constitutional matters and training. The church database is purchased through a recognised company - ChurchSuite. This ensures effective and safe management of data. The office is managed by the Office Manager.

Remuneration was paid to 2 Senior Pastors (Senior Leaders), 1 Finance/Office Manager, 1 Cleaning staff, 1 Operations Team Lead, 1 Part time Pastoral Lead, 1 Part time Youth Pastor.

LIFEHOUSE CHURCH

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

Disclosure of information to auditor

Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

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

Mr J Needham

Trustee Dated: 30 September 2024

Mrs J Meakin

Trustee Dated:30 September 2024

LIFEHOUSE CHURCH

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 DECEMBER 2023

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

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

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

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

6 Broadfield Court Broadfield Way Sheffield S8 0XF

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LIFEHOUSE CHURCH

Opinion

We have audited the financial statements of Lifehouse Church (the ‘charitable company’) for the year ended 31 December 2023 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’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.

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LIFEHOUSE CHURCH CONTINUED

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report included within the trustees' report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LIFEHOUSE CHURCH CONTINUED

Responsibilities of trustees

As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charitable company for the purpose of company law, 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 charitable company’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 charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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 auditor's 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.

Hackeryoung Chartefed kcountsnts INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LIFEHOUSE CHURCH CONTINUED Based on our understanding of the ¢h8rity and th¢ sector in which it opernte& we identified th¢ principal risks of Don-compliance with laws and r¢8uiatiow related to the acts by the charity. which were contrary to appli¢8bl¢ laws and regulations including frau￿ and we considered the extent to which non-complian¢¢ might hav¢ a material effect on the financial ststements. We also considered those laws and regulalions that hav¢ a direct impact on the preparation of th¢ f￿anCIal ststements such as the Companies Aci 2006. We ¢valuated m8na8ement's incentives and op￿rtunItieS for fTaudul¢nt manipulation of the financial ststements (including the risk of override of controls), and det¢miin¢d that the principal risks were related to infiaied revenue and the charity's net income for the year. Audit procedures perfomied included: review of th¢ fmancial ststement disclosures to undcrlytng suptM)rting documentation. review of cOrreS￿ndenCe with and ffports lo the regulators. including correspondence with the Charity Commission, review of ¢orr¢sp)nd¢nc¢ with legal advisors. enquiries of management and in testing of journais and evaluating whether there was evidenc¢ of bias by the trustees that represented a risk of material misststement due to fraud. There are inh¢T¢nt limitations in the audit proc¢dures d￿ribed above and the further removed non- complia￿¢ with laws and regulations is from th¢ events and transactions reflected in the financial statements. the less likely we would become aware of IL Also. the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error. as frdud may involve deliberate concealm¢nt by. for example, forgery or intentional mIs￿pr￿ntat1On4 or through collusion. A fijrther d¢￿riPtIon of our responsibilities is available on the Financial Reporting Council's website at: https:Ilww.frc.ot8.ukJ•uditorsrryoDsibilities. This description fornls part of our auditovs report. Use of our report This rep)rt is made sol¢ly lo the charitable cornpangs memb¢r& as a iMx4y. in accordance with Chapter 3 of Part 16 of the Compani¢s Act 2006. Our audit WOTk has been und¢rtak¢n so that we might state to the charitable company's members those matters we are required to state lo them in an audito¢s rew)rt and for no other PUT￿Se. To th¢ ￿11¢￿ ¢xt¢nt permitted by law, we do not a¢¢￿t or 8ssum¢ responsibility to anyone other than the charitable company and the charitable company's memkrs as a I￿Y. for our audit work, for this repot( or for the opinions we hav¢ fornied. Mi¢hel Mellllg {SeD￿r Statstory A•ditor) for and bthalf of UHY Hacker YouDg 30 September 2024 Chartered Attountsnts S¢atu¢ory Auditsr 10-

LIFEHOUSE CHURCH

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2023

Unrestricted Unrestricted Restricted Total Unrestricted Unrestricted Restricted Total
funds funds funds 2023 funds funds funds 2022
general designated general designated
Notes £ £ £ £ £ £ £ £
Income and endowments from:
Donations and legacies 3 444,441 - 114,865 559,306 415,466 - 24,348 439,814
Charitable activities 4 9,212 - - 9,212 7,132 - - 7,132
Other trading activities 5 30,682 - 6,791 37,473 25,519 - 2,345 27,864
Investments 6 2,404 - 4,359 6,763 592 - 543 1,135
Other income 7 203 - - 203 - - - -
Total income 486,942 - 126,015 612,957 448,709 - 27,236 475,945
Expenditure on:
Raising funds 8 34,950 35 5,014 39,999 24,048 - 3,423 27,471
Charitable activities 9 356,034 27,989 115,135 499,158 329,600 23,465 12,817 365,882
Total resources expended 390,984 28,024 120,149 539,157 353,648 23,465 16,240 393,353
Net incoming resources before transfers 95,958 (28,024) 5,866 73,800 95,061 (23,465) 10,996 82,592

LIFEHOUSE CHURCH

STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 DECEMBER 2023

Net incoming resources before transfers
Gross transfers between funds
Net income for the year/
Net movement in funds
Fund balances at 1 January 2023
Fund balances at 31 December 2023		 95,958
(32,241)
63,717
605,811
669,528		 (28,024)
28,024
-
161,978
161,978		 5,866
4,217
10,083
351,257
361,340		 73,800
-
73,800
1,119,046
1,192,846		 95,061
(145,887)
(50,826)
656,637
605,811		 (23,465)
140,087
116,622
45,356
161,978		 10,996
5,800
16,796
334,461
351,257		 82,592
-
82,592
1,036,454
1,119,046

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

All income and expenditure derive from continuing activities.

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

LIFEHOUSE CHURCH

BALANCE SHEET

AS AT 31 DECEMBER 2023

2023
Notes
£
£
Fixed assets
Tangible assets
14
435,136
Current assets
Stocks
15
200
Debtors
16
15,856
Cash at bank and in hand
858,371
874,427
Creditors: amounts falling due within
one year
17
(116,717)
Net current assets
757,710
Total assets less current liabilities
1,192,846
Income funds
Restricted funds
19
361,340
Unrestricted funds
Designated funds
20
161,978
General unrestricted funds
669,528
831,506
1,192,846
The financial statements were approved by the Trustees on 30 September 2024
Mr J Needham
Mrs J Meakin
Trustee
Trustee
Company registration number 09971964		 2022
£
£
439,484
200
10,167
687,523
697,890
(18,328)
679,562
1,119,046
351,257
161,978
605,811
767,789
1,119,046		 2022
£
£
439,484
200
10,167
687,523
697,890
(18,328)
679,562
1,119,046
351,257
161,978
605,811
767,789
1,119,046
1,119,046
351,257
767,789
1,119,046

LIFEHOUSE CHURCH

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2023

Notes
Cash flows from operating activities
Cash generated from operations
22
Investing activities
Purchase of tangible fixed assets
Investment income received
Net cash generated from/(used in)
investing activities
Net cash used in financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2023
£
(6,734)
6,763		 £
170,819
29
-
170,848
687,523
858,371		 2022
£
(3,338)
1,135		 £
100,782
(2,203)
-
98,579
588,944
687,523

LIFEHOUSE CHURCH

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

1 Accounting policies

Charity information

Lifehouse Church is a private company limited by guarantee incorporated in England and Wales. The registered office is 90 Chatsworth Road, Chesterfield, Derbyshire, S40 2AN.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charitable company's [governing document], the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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 charitable company is a Public Benefit Entity as defined by FRS 102.

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

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

1.2 Going concern

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

1.3 Charitable funds

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

Designated funds comprise funds which have been set aside at the discretion of the trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements.

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

1.4 Income

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

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

LIFEHOUSE CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

1 Accounting policies

(Continued)

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

Grants are recognised in full in the Statement of Financial Activities in the year in which they are receivable.

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.

1.5 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 are allocated on the portion of the asset’s use.

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.

Costs of raising funds are costs incurred in attracting voluntary income and those incurred in trading activities that raise funds.

All expenditure is inclusive of irrecoverable VAT.

1.6 Tangible fixed assets

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

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

Freehold land and buildings Not depreciated
Fixtures and fittings 25% reducing balance
Computers 33.3% straight line

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

LIFEHOUSE CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

1 Accounting policies

(Continued)

No depreciation is provided on the freehold land and buildings. The trustees consider that the freehold property is maintained in such a state of repair that its residual value is at least equal to the net book value. As a result the corresponding depreciation would not be material, therefore, it is not charged in total resources expended.

1.7 Impairment of fixed assets

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

1.8 Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell after making due allowance for obsolete and slow-moving stocks.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

1.9 Cash and cash equivalents

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

1.10 Financial instruments

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

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

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

Basic financial assets

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

LIFEHOUSE CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

1 Accounting policies

(Continued)

Impairment of financial assets

Financial assets, other than those held at fair value through income and expenditure, are assessed for indicators of impairment at each reporting date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.

If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in net income/(expenditure) for the year.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in net income/(expenditure) for the year.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the charitable company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Basic financial liabilities

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

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

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

Derecognition of financial liabilities

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

1.11 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charitable company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

LIFEHOUSE CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

1 Accounting policies

(Continued)

1.12 Retirement benefits

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

2 Critical accounting estimates and judgements

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

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

Critical judgements

Valuation of freehold land and buildings

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of the assets and liabilities are as follows.

The trustees have decided to show the freehold land and buildings at market value and have decided not to depreciate the asset. They have decided to base the value of the asset on their own judgement, but use recent relevant information that is available to them on which to base their estimate of the market value and make a judgement each year as to whether any evidence exists that the market value is materially different to the values in the financial statements. They take account of the state of the fabric of the building and the conditions in the market for the type of property owned.

3 Donations and legacies

Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds
general general
2023 2023 2023 2022 2022 2022
£ £ £ £ £ £
Donations and gifts 444,441 114,865 559,306 415,466 24,348 439,814

LIFEHOUSE CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

4 Charitable activities

2023 2023 2022 2022
£ £
Sales within charitable activities 9,212 7,132
Other trading activities
Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds
general general
2023 2023 2023 2022 2022 2022
£ £ £ £ £ £
Fundraising events 14,705 6,635 21,340 9,281 2,345 11,626
Letting and licensing
arrangements 9,160 156 9,316 8,950 - 8,950
Trading activity income:
Car park 6,817 - 6,817 7,288 - 7,288
Other trading activities 30,682 6,791 37,473 25,519 2,345 27,864

5 Other trading activities

6 Investments

Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds
general general
2023 2023 2023 2022 2022 2022
£ £ £ £ £ £
Interest receivable 2,404 4,359 6,763 592 543 1,135
Other income
2023 2022
£ £
Other income 203 -

7 Other income

LIFEHOUSE CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

8 Raising funds

Unrestricted Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds 2023 funds funds 2022
general designated general
£ £ £ £ £ £ £
Fundraising and publicity
Staging fundraising events 32,268 35 4,654 36,957 21,341 3,142 24,483
Advertising 2,682 - 360 3,042 2,707 281 2,988
Fundraising and publicity 34,950 35 5,014 39,999 24,048 3,423 27,471
34,950 35 5,014 39,999 24,048 3,423 27,471

LIFEHOUSE CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

9 Charitable activities

2023 2022
£ £
Staff costs 171,410 168,037
Depreciation and impairment 11,085 15,286
Donations - Missionary societies 163,886 62,961
Bank charges 2,980 1,429
Printing and stationery 713 615
Miscellaneous costs 8,159 7,171
Church running expenses 29,495 24,857
Church maintenance 12,821 16,958
Coffee shop expenditure 11,430 7,357
Travel expenses 14,455 5,630
Legal and professional fees 10,240 2,486
Blessings and speakers 34,632 34,400
Hardship funds 2,705 300
Pastoral care and hospitality 10,036 7,410
Training costs 6,976 3,709
Subscriptions 2,375 1,876
493,398 360,482
Share of governance costs (see note 10) 5,760 5,400
499,158 365,882
Analysis by fund
Unrestricted funds - general 356,034 329,600
Unrestricted funds - designated 27,989 23,465
Restricted funds 115,135 12,817
499,158 365,882

LIFEHOUSE CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

10 Support costs

Support costs
Support Governance 2023 Support Governance 2022
costs costs costs costs
£ £ £ £ £ £
Audit fees - 5,760 5,760 - 5,400 5,400
- 5,760 5,760 - 5,400 5,400
Analysed between
Charitable activities - 5,760 5,760 - 5,400 5,400

Governance costs includes payments to the auditors of £5,760 (2022- £5,400) for audit fees.

11 Trustees

The total amount of donations received from trustees without conditions was £147,286 (2022: £155,327).

P Hollingworth (Member and Trustee) received remuneration of £46,669 (2022: £52,928), employers' NI contributions of £4,747 (2022: £6,428) and employer's pension contributions of £1,551 (2022: £1,182) in respect of his employment with the church.

J Meakin (Trustee) received remuneration of £23,523 (2022: £22,470), employers' NI contributions of £1,824 (2022: £1,953) and employer's pension contributions of £885 (2022: £674) in respect of her employment with the church.

S Hollingworth (Member), who is the wife of P Hollingworth, received remuneration of £33,014 (2022: £37,361), employers' NI contributions of £3,021 (2022: £4,172) and employer's pension contributions of £1,241 (2022: £848) in respect of her employment with the church.

D Woolf (Member) received remuneration of £29,751 (2022: £27,012), employers' NI contributions of £2,603 (2022: £2,614) and employer's pension contributions of £1,122 (2022: £810) in respect of his employment with the church.

The above individuals are the senior management team of the Church.

B Hollingworth, who is the father of P Hollingworth, received remuneration of £6,563 (2022: £5,999), employers' NI contributions of £nil (2022: £nil) in respect of his employment with the church.

These payments are authorised under the terms of the charity's governing document.

LIFEHOUSE CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

12 Employees

The average monthly number of employees during the year was:

2023 2022
Number Number
Trustees 5 5
Employees 5 4
Total 10 9
Employment costs 2023 2022
£ £
Wages and salaries 157,086 153,998
Social security costs 9,018 10,355
Other pension costs 5,306 3,684
171,410 168,037

There were no employees whose annual remuneration was £60,000 or more. 13 Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

LIFEHOUSE CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

14 Tangible fixed assets

Tangible fixed assets
Freehold land Fixtures and Computers Total
and buildings fittings
£ £ £ £
Cost
At 1 January 2023 400,000 218,010 31,864 649,874
Additions - 5,696 1,038 6,734
At 31 December 2023 400,000 223,706 32,902 656,608
Depreciation and impairment
At 1 January 2023 - 180,539 29,848 210,387
Depreciation charged in the year - 9,469 1,616 11,085
At 31 December 2023 - 190,008 31,464 221,472
Carrying amount
At 31 December 2023 400,000 33,698 1,438 435,136
At 31 December 2022 400,000 37,468 2,016 439,484

The freehold land and buildings comprise the church and premises with adjacent car park. These were subject to a professional valuation in 2016 which gave an existing use value of £350,000, however in the view of the trustees a sale with planning permission would value the building at approximately £400,000.

15 Stocks

15 Stocks
2023 2022
£ £
Goods for resale 200 200
16 Debtors
2023 2022
Amounts falling due within one year: £ £
Trade debtors 3,473 2,441
Other debtors 5,144 4,669
Prepayments and accrued income 7,239 3,057
15,856 10,167

LIFEHOUSE CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

17 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
2023 2022
£ £
Other taxation and social security 3,872 3,358
Trade creditors 4,243 4,427
Other creditors 1,425 5,503
Accruals and deferred income 107,177 5,040
116,717 18,328

18 Retirement benefit schemes

Defined contribution schemes

The charitable company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charitable company in an independently administered fund.

The charge to profit or loss in respect of defined contribution schemes was £5,306 (2022 - £3,684).

LIFEHOUSE CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

19 Restricted funds

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

Movement in funds Movement in funds Movement in funds Movement in funds Movement in funds Movement in funds
Balance at Incoming Resources Transfers Balance at Incoming Resources Transfers Balance at
1 January 2022 resources expended 1 January 2023 resources expended 31 December
2023
£ £ £ £ £ £ £ £ £
Lifepoint 4,515 2,846 (4,587) - 2,774 6,018 (4,618) - 4,174
Chapel 2,557 - (83) - 2,474 - - - 2,474
Youth and young adults 1,499 212 (1,284) - 427 - - - 427
Kids church - - (905) 905 - 83 (2,065) 1,982 -
Shine - 2,163 (1,959) - 204 - (25) - 179
Spokes 1,797 - - - 1,797 - - - 1,797
Building fund 323,789 19,454 (166) - 343,077 9,132 (18) - 352,191
Missions 85 2,276 (7,060) 4,699 - 116 (1,170) 1,054 -
Heartbeats - - - - - 98 - - 98
Floods 2023 - - - - - 103,837 (103,837) - -
Youth 219 - - - 219 6,731 (8,416) 1,466 -
Totslife - - (196) 196 - - - - -
Radiator Appeal Ukraine - 285 - - 285 - - (285) -
334,461 27,236 (16,240) 5,800 351,257 126,015 (120,149) 4,217 361,340

LIFEHOUSE CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

19 Restricted funds

(Continued)

Lifepoint - To provide assistance to and support of the underprivileged in society and other community involvement that accord with the aims and objectives of the charity.

Chapel - To fulfil the aims and objectives of the charity amongst people over the age of 55.

Youth and young adults - To fulfil the aims and objectives of the charity amongst young people associated with and outside the church.

Kids church - To fulfil the aims and objectives of the charity amongst the children of parents involved in the church and children outside the family of the church.

Shine - Women meeting together and discovering all that God has for them. A group where they can bring their friends with confidence. The goals of Shine are to empower women and help them meet with God and reach their potential. At 31 December 2020, this fund was in deficit, but more income will be collected relating to this fund in the future to resolve this.

Spokes - This charity project was established in the winter of 2009. Spokes is an integral project that aims to identify young people between the ages of 10 and 16 who have made incredible progress, despite challenging circumstances. Just for one day a Champion Culture is created to ensure the young people get the encouragement they deserve. Through the support of local businesses, people and agencies we plan to develop this project so that many generations to come will hear the words, 'well done.'

Building fund - The building fund was set up in Autumn 2014. This is part of the vision to build/develop a spacious place, that will be a great resource and influence to this community. It will create many ways for people to access the Christian Faith.

Missions - The purpose of this fund is to support the specific missions set by the church. Previous missions have included, 'Youth to Poland,' and, 'Team to Ghana.'

Transfers between funds are to agree the balance carried forward to bank and cash balances held by each individual restricted fund. Unrestricted bank account monies are often used to fund small group expenditure and the transfers represent a reimbursement of this.

LIFEHOUSE CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

20 Designated funds

The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:

Balance at Resources Transfers Balance at Resources Transfers Balance at
1 January 2022 expended 1 January 2023 expended 31 December
2023
£ £ £ £ £ £ £
Building
fund 41,928 - 120,050 161,978 - - 161,978
Giving 3,428 (23,465) 20,037 - (28,024) 28,024 -
45,356 (23,465) 140,087 161,978 (28,024) 28,024 161,978

Building fund - Monies set aside by the trustees towards the building fund as described in restricted funds.

Giving fund - To fulfil the aims and objectives of the charity by supporting organisations and individuals seeking to promote these aims and objectives in the United Kingdom and other countries.

LIFEHOUSE CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

21 Analysis of net assets between funds

Analysis of net assets between funds
Unrestricted
funds
Designated funds Restricted funds
2023
2023
2023
£
£
£
Fund balances at 31 December 2023 are
represented by:
Tangible assets
435,136
-
-
Current assets/(liabilities)
234,392
161,978
361,340
669,528
161,978
361,340		 Total
Unrestricted
funds
Designated funds Restricted funds
2023
2022
2022
2022
£
£
£
£
435,136
439,484
-
-
757,710
166,327
161,978
351,257
1,192,846
605,811
161,978
351,257		 Total
2022
£
439,484
679,562
1,119,046

LIFEHOUSE CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2023

22 Cash generated from operations 2023 2022 2022
£ £
Surplus for the year 73,800 82,592
Adjustments for:
Investment income recognised in statement of financial activities (6,763) (1,135)
Depreciation and impairment of tangible fixed assets 11,085 15,286
Movements in working capital:
(Increase) in debtors (5,689) (1,046)
Increase in creditors 98,386 5,085
Cash generated from operations 170,819 100,782

23 Analysis of changes in net funds

The charitable company had no debt during the year.