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2021-12-31-accounts

Company registration number: 12373666 Charity registration number: 1187533

First Love Church

(A company limited by guarantee) Annual Report and Financial Statements for the Year Ended 31 December 2021

Moracle Limited Chartered Certified Accountants & Registered Auditors Ashley House Ashley Road London N17 9LZ

First Love Church

Contents
Reference and Administrative Details 1
Trustees' Report 2 to 4
Statement of Trustees' Responsibilities 5
Independent Auditors' Report 6 to 8
Statement of Financial Activities 9
Balance Sheet 10
Statement of Cash Flows 11
Notes to the Financial Statements 12 to 17

First Love Church

Reference and Administrative Details

Trustees

Mr Charles Obuasa Jnr Djabatey Ms Tinashr Chekuwa Ms Natalie Maame Fenimaa Commey

Secretary

Ms Natalie Commey Principal Office

2a Carden Road Nunhead London SE15 3UD

Registered Office

2a Carden Road Nunhead London SE15 3UD

The charity is incorporated in the United Kingdom.

Company Registration Number

12373666

Charity Registration Number

1187533

Solicitors

Keystone Law 48 Chancery Lane London WC2A 1JF

Bankers

Barclays Wandsworth Group 2 Leicester LE87 2BB

Auditors

Moracle Limited Chartered Certified Accountants & Registered Auditors 960 Capability Green, Luton LU1 3PE

Page 4

First Love Church

Trustees' Report for The Year Ended 31 December 2021

The trustees, who are also the directors of the charitable company for the purposes of the Companies Act 2006, present the financial statements for the year ended 31 December 2021. These have been prepared under 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 Republic of Ireland (FRS 102) (effective 1 January 2015) and comply with all statutory requirements and the charity’s governing document.

First Love Church was incorporated on 20 December 2019 as a charitable company limited by guarantee (Company number 12373666). It was registered with the Charity Commission on 20 December 2019.

Objects

The objects of the charity shall be to advance the Christian faith in accordance with the doctrines and beliefs of The Lighthouse Chapel International for the benefit of the public and in particular university students in the United Kingdom in such ways that are exclusively according to English law.

Public Benefit

In setting the charity’s objectives, the trustees have given due consideration to the Charity Commission’s guidance on Public benefit. These follow from the objects of the charity highlighted above.

ACTIVITIES, ACHIEVEMENTS AND PERFORMANCE

Church Services

The church was able to have in-person services for only a month before churches were closed down by government announcement due to the pandemic. During the pandemic, have had two services a week (Sundays and Thursday) using zoom and Facebook Live with watch parties. These services are called F.L.O.W. (First Love Witty Invention) services. During offering time, the bank details are projected, and congregants give their offerings via online banking. This has completely eliminated cash handling and we hope to continue online banking offerings even when in-person services resume. Church attendance has actually increased during the pandemic due to the fact that people are able to join from all over the world. We will be maintaining our on-line services even when in-person resumes and run them alongside.

Outreach

The members have worked very hard, bringing the life changing message of Jesus Christ to the people in the various councils. Gang members and drug users have had their lives changed as a result of hearing the good news of Salvation through Jesus Christ. We have set up WhatsApp groups where group leaders share the word of God and encourage each other. We have also had online outreach concerts and musical festivals throughout the year to preach the gospel and win more souls.

Volunteers

The charity is supported by a substantial pool of volunteers, who put in their resources to ensure the objectives of the charity are met. We would like to thank them for their support and selflessness.

Pastoral Care

Our pastoral care coordinators continue to offer support and counselling for members and non-members of the church. These range from marriage counselling to dealing with bereavement, finding life partners, issues of abandonment and abuse, depression, illnesses, old age, debt, children, spiritual guidance and prayer. The telepastoring team also provides immediate confidential prayer support to both members and non-members. This makes a huge difference in the lives of many of our most vulnerable members.

Page 4

First Love Church

Trustees' Report for the Year Ended 31 December 2021 (continued)

FINANCIAL REVIEW

During the year the main funding came from offerings and direct donations from members of the Church and visitors. Income for the year was £1,806,478 (2020: £1,497,632). Expenditure in the year amounted to £1,281,286 (2020: £1,193,769) which included donations of £1,089,239 (2020: £1,182,919) to a number of Christian projects in Ghana and other charitable projects. The funds carried forward at year end was £829,055 (2020: £303,863).

Reserves Policy

The policy of the charity is to maintain reserves at three to six months of recurring expenditure which equates to between £350,000 and £500,000. The unrestricted reserves (which are the charity’s free reserves) were £785,852 (2020: £303,863) at the end of the year. The charity has plans to utilise the excess reserves in the near future on building local church networks and supporting capital projects.

Investment Powers, Policy and Performance

The trustees have legal powers to purchase land and buildings required for the purposes of the Charity. Moreover, the Trustees have the power to invest charity monies in investments of any nature and at their absolute discretion as set out in the Companies Act 2006.

The charity’s money is currently held as cash balances in a bank account.

Risk Management

The trustees are in the process of setting up systems to carry out formal risk assessments and will report on this in its next financial statements.

Fundraising

First Love Church understands its duty to protect the public, including vulnerable people, from unreasonably intrusive or persistent fundraising approaches and undue pressure to donate. The charity does not fundraise from the public, and we do not use any internal fundraisers or external fundraising agencies for either telephone or faceto-face campaigns and received no fundraising complaints during the year. Throughout the year First Love Church has continued to be successful in attracting funding in kind. In addition to the salaried staff, members and volunteers assist with administration and with organising events. The Honorary Treasurer reviews the Charity’s accounts.

Page 4

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document

The charitable company is governed by its Memorandum and Articles of Association dated 28 April 2016.

Recruitment and Appointment of Trustees

The trustees at inception were appointed by the leaders of the Church. Subsequent changes in trustees will be implemented by the trustees in office and other leaders within the Church.

PLANS FOR THE FUTURE

The trustees plan to grow the membership from its present level and will continue to focus on refining and developing existing operations to the highest possible standards. The trustees see the online services that have come up as a result of the pandemic, as a new avenue for church growth and these services will be maintained alongside the in-person service even when restrictions are lifted.

APPROVAL

The annual report was approved by the trustees of the charity on 15[th] September 2022 and signed on its behalf by:

Ms Natalie Commey

Trustee

Page 4

First Love Church

Statement of Trustees' Responsibilities

The trustees (who are also the directors of First Love Church for the purposes of company law) 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.

Company law requires the trustees to prepare financial statements for each financial year. Under company 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 charitable company 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 charitable company's transactions and 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.

In so far as the trustees are aware:

Approved by the trustees of the charity on 15[th] September 2022 and signed on its behalf by:

Ms Natalie Commey

Trustee

Page 5

First Love Church

Independent Auditor's Report to the Members of First Love Church

Opinion

We have audited the financial statements of First Love Church (the 'charity') for the year ended 31 December 2021, which comprise the Statement of Financial Activities, Balance Sheet, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is United Kingdom Accounting Standards, comprising Charities SORP - FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and applicable law (United Kingdom Generally Accepted Accounting Practice).

This report is made solely to the charitable company's trustees, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. 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 auditor’s 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 charitable company and its trustees as a body, for our audit work, for this report, or for the opinions we have formed.

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 charity 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

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

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.

Page 6

First Love Church

Independent Auditor's Report to the Members of First Love Church

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

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report.

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

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities (set out on page 5), 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.

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.

As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit.

Page 7

First Love Church

Independent Auditor's Report to the Members of First Love Church

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

...................................... Morlai Kargbo (Senior Statutory Auditor) For and on behalf of Moracle Limited Chartered Certified Accountants & Registered Auditors Statutory Auditor 960 Capability Green Luton LU1 3PE 15[th] September 2022

Page 8

First Love Church

Statement of Financial Activities for the Year Ended 31 December 2021 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)

Note Unrestricted
funds
£
Total
2021
£
Total
2020
£
Income and Endowments from:
Donations and legacies
3
1,806,437
1,806,437
1,497,599
Investments 41
41
33
Total income 1,806,478
1,806,478
1,497,632
Expenditure on:

Raising funds
-
-
-
Charitable activities
4
1,281,286
1,281,286
1,193,769
Total expenditure 1,281,286
1,281,286
1,193,769
Net income
6
525,192
525,192
303,863
Reconciliation of funds
Total funds brought forward 303,863
303,863
-
Total funds carried forward
12
829,055
829,055
303,863

All of the charity's activities derive from continuing operations during the above two periods, and there are no recognised gains or losses other than those shown above in the Statement of Financial Activities.

The accompanying notes form part of these financial statements.

Page 9

First Love Church

(Company Registration number: 12373666) Balance Sheet as at 31 December 2021

Note 2021
2020
£
Fixed assets
Tangible fixed assets
9
43,203
-
Current assets
Debtors
10
-
-
Cash at bank and in hand 793,852
308,663
793,852
308,663
Creditors: Amounts falling due within oneyear
11
(8,000)
(4,800)
Net current assets 785,852
303,863
Net assets 829,055
303,863
Funds of the charity:
Unrestricted income funds
Unrestricted funds 829,055
303,863
Total funds
12
829,055
303,863

The financial statements on pages 9 to 17 were approved by the trustees, and authorised for issue on 15[th] September 2022 and signed on their behalf by:

.

Ms Natalie Commey Trustee

The accompanying notes form part of these financial statements

Page 10

First Love Church

Statement of Cash Flows for the Year Ended 31 December 2021

2021 2020
£ £
------------- ---------------
Cash used provided by operating activities 542,793 308,663
======== ========
=
Cash flows from investing activities
Purchase of tangible fixed assets (57,604) -
---------------- --------------
Cash provided by (used in) investing activities (57,605) -
Increase (decrease) in cash and cash equivalents in the year 485,189 308,663
Cash and cash equivalents at the beginning of the year 308,663 -
---------------- --------------
Total cash and cash equivalents at year end 793,852 308,663
========== ==========
Analysis of Cash and Cash Equivalents
2021 2020
£ £
Cash in hand 793,852 308,663
Notice deposits - -
------------- ------------
793,852 308,663
======== ========
Reconciliation of net movement in funds to net cash inflow from Operating Activities
2021 2020
£ £
Net movement in funds 525,192 303,863
Decrease (increase) in debtors - -
Increase (decrease) in creditors 3,200 4,800
Depreciation 14,401 -
------------ ----------
Net cash provided by operating activities 542,793 308,663
======= =======

All of the cash flows are derived from continuing operations during the above two periods.

Page 11

First Love Church

Notes to the Financial Statements for the Year Ended 31 December 2021

1 Charity status

The charity is limited by guarantee, incorporated in the United Kingdom, and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exceeding £Nil towards the assets of the charity in the event of liquidation.

The principal place of business is: 2a Carden Road Nunhead London SE15 3UD

2 Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

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). They also comply with the Companies Act 2006 and Charities Act 2011.

Basis of preparation

First Love 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.

First Love 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.

First Love Church is registered as a charity with the Charity Commission for England and Wales and operates in London.

The level of rounding for the accounts preparation purpose is £5.

Going concern

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern nor any significant areas of uncertainty that affect the carrying value of assets held by the charity.

Income and endowments

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 the income receivable can be measured reliably.

Page 12

First Love Church

Notes to the Financial Statements for the Year Ended 31 December 2021

Expenditure

All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings, they have been allocated on a basis consistent with the use of resources.

Charitable expenditure consists of all expenditure relating to the objects of the Charity.

Support costs have been allocated between governance costs and other support. Governance costs comprise all costs involving public accountability of the charity and its compliance with regulation and good practice.

Irrecoverable VAT is included with the category of expense to which it relates.

Support costs

Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage.

Governance costs

These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees’s meetings and reimbursed expenses.

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.

Fixed Assets

All assets costing more than £500 are capitalised.

Tangible fixed assets are stated at cost less depreciation. Depreciation on other tangible fixed assets is provided at rates calculated to write off the cost of those assets, less their estimated residual value, over their expected useful lives on the following bases:

 Music & audio-visual equipment

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.

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 13

First Love Church

Notes to the Financial Statements for the Year Ended 31 December 2021

Creditors

Creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the charity does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

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.

Going concern

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

Judgements and key sources of estimation uncertainty

In the application of the charity'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 including expectations of future events that are believed to be reasonable under the circumstances. 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.

3 Income from donations and legacies

Unrestricted Total Total
funds 2021 2020
£ £
£
Donations and legacies; 1,806,437 1,806,437
1,497,599
Investment 41
41

33
Total income 1,806,478 1,806,478 1,497,632

4 Expenditure on charitable activities

Note Unrestricted
funds
£
Total
2021
£
Total
2020
£
Church Services and Activities 1,232,220
1,232,220
1,182,920
Allocated support costs
5
49,066
49,066
10,849
1,281,286
1,281,286
1,193,769

Page 14

First Love Church

Notes to the Financial Statements for the Year Ended 31 December 2021

5 Allocated support costs

Support costs allocated to charitable activities

Unrestricted
Restricted funds
Total Total Total
funds 2021 2020
£
£
£ £
Office costs 13,871
-
13,871 6,049
Depreciation 14,401
-
14,401 -
Other costs 9,180
-
9,180 -
Governance costs 11,614
-
11,614 4,800
49,066
-
49,066 10,849
Governance costs comprise:
Total Total
2021 2020
£ £
Audit fees 6,600 4,800
Business support costs 2,000 -
Legal & professional costs 3,014 -
11,614 4,800
6
Net income
Net income is stated after deducting:
2021 2020
£ £
Audit fees - audit remuneration 6,600 4,800
Depreciation of fixed assets 14,401 -

7 Trustees’ remuneration and expenses

No trustees, nor any persons connected with them, have received any remuneration from the charity during the year. (2020-£Nil)

No trustees have received any reimbursed expenses or any other benefits from the charity during the year. (2020£Nil)

8 Staff costs

The aggregate payroll costs were as follows:

8
Staff costs
The aggregate payroll costs were as follows:
2021
2020
£
£
Staff costs during the year were:
Wages and salaries -
-

Page 15

First Love Church

Notes to the Financial Statements for the Year Ended 31 December 2021

The monthly average number of persons (including senior management team) employed by the charity during the year expressed as full time equivalents was as follows:

year expressed as full time equivalents was as follows:
2021
2020
No
No
Number -
-
No employee received emoluments of more than £60,000 during the year and 2020.
9 Fixed assets
Equipment
TOTAL
£
£
COST
As at 1 January 2020
-
-
Additions
57,604
57,604
As at 31 December 2021
57,604
57,604
DEPRECIATION
As at 1 January 2020
-
-
Charge for the year
14,401
14,401
As at 31 December 2021
14,401
14,401
NET BOOK VALUE
As at 31 December 2021
43,203
43,203
As at 31 December 2020
-
-
57,604
57,604
-
-
14,401
14,401
14,401
14,401
43,203
43,203
-
-
10
Debtors
2021
2020
£
£
Prepayments -
-
Accrued income -
-
-
-
11
Creditors: amounts falling due within one year
2021
2020
£
£
Trade creditors -
-
Other creditors & accruals 8,000
4,800
8,000
4,800

Page 16

First Love Church

Notes to the Financial Statements for the Year Ended 31 December 2021

12 Funds (Current year)

12
Funds (Current year)
Balance at 1 Jan Income
Expenditure
Balance at 31
2021 December 2021
£ £ £ £
Unrestricted funds
General 303,863 1,806,478
(1,281,286)
829,055

13 Analysis of net assets between funds (Current year)

Unrestricted
funds
General Total funds
£ £
Tangible fixed assets 43,203 43,203
Current assets 793,852 793,852
Current liabilities (8,000) (8,000)
Total net assets 829,055 829,055

All funds in the current and previous accounting period were unrestricted, and hence all relevant comparatives are shown on the primary statements

14 Funds (Prior year)

Balance at 1 Jan
Income
Expenditure
Balance at 31
2020
£
£
£
December 2020
£
Un restricted funds
Ge neral
-
1,497,632
(1,193,769)
303,863
£
£
£ £
Unrestricted funds
General -
1,497,632

(1,193,769)
303,863

15 Analysis of net assets between funds (Prior year)

Unrestricted
funds
General Total funds
£ £
Tangible fixed assets - -
Current assets 308,663 308,663
Current liabilities (4,800) (4,800)
Total net assets 303,863 303,863

All funds in the current and previous accounting period were unrestricted, and hence all relevant comparatives are shown on the primary statements

Page 17